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HomeMy WebLinkAbout05/19/2025 City Council Regular Agenda PacketMay 19, 2025 | 6:00 PM Page 1 of 7 City Council Regular Meeting CITY COUNCIL REGULAR MEETING AGENDA CITY CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 MONDAY, MAY 19, 2025 | 6:00 PM MAYOR Greg Bozzo COUNCIL MEMBERS Dion Bracco Tom Cline Terence Fugazzi Zach Hilton Carol Marques Kelly Ramirez 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 COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. **Please limit your comments to 3 minutes.** The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda. Written comments on any agenda item may be emailed to the City Clerk’s Office at publiccomment@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN. In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at least 72 hours prior to the meeting at (408) 846-0204 or cityclerk@cityofgilroy.org to help ensure that reasonable arrangements can be made. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to the Staff’s ability to post the documents before the meeting. Page 1 of 255 May 19, 2025 | 6:00 PM Page 2 of 7 City Council Regular Meeting KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204. If you need assistance with translation and would like to speak during public comment, please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or e-mail the City Clerk’s Office at cityclerk@cityofgilroy.org. Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a cityclerk@cityofgilroy.org. To access written translation during the meeting, please scan the QR Code or click this link: Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace: bit.ly/3FBiGA0 Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir Use a headset on your phone for audio or read the transcript on your device. Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo. The agenda for this regular meeting is 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 Page 2 of 255 May 19, 2025 | 6:00 PM Page 3 of 7 City Council Regular Meeting 1.6.Orders of the Day 1.7.Employee Introductions 2. CEREMONIAL ITEMS - Proclamations and Awards 2.1.Proclamation Declaring May 2025 as National Bike Month 2.2.Proclamation Declaring May 18 to May 24, 2025, as National Public Works Week 3. COUNCIL CORRESPONDENCE (Informational Only) 4. PRESENTATIONS TO THE COUNCIL 4.1.Annual Sister Cities Association Presentation 4.2.PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written comments to address the Council on matters not on this agenda may be e-mailed to the City Clerk’s Office at publiccomment@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00 pm on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1:00pm deadline will be provided to the City Council as soon as practicable. Written material provided by public members under this section of the agenda will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically. 5. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Page 3 of 255 May 19, 2025 | 6:00 PM Page 4 of 7 City Council Regular Meeting Center, VTA Mobility Partnership Committee Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate) Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and Community Development Advisory Committee Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate) Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate) 6. CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the City Council votes to approve. If removed, the item will be discussed in the order in which it appears. 6.1.Approval of Minutes for the May 5, 2025 Strategic Planning Workshop, Special Meeting, and Regular Meeting, as well as the May 12, 2025 City Council Budget Workshop 6.2.Purchase of Irrigation Controllers for a Total of $124,763 Utilizing Sourcewell's Cooperative Purchasing Contract 112624-TTC 6.3.Annual Military Equipment Use Report 2024, per CA Assembly Bill No. 481 6.4.Acceptance of Cash and Investment Report as of March 31, 2025 6.5.Adopt a Resolution Approving the Fiscal Year 2025-26 Road Rehabilitation Projects for Funding by Senate Bill 1, the Road Repair and Accountability Act of 2017 Funds 6.6.Approve the Amended and Restated Funding Agreement Between the City of Page 4 of 255 May 19, 2025 | 6:00 PM Page 5 of 7 City Council Regular Meeting Gilroy and Santa Clara Valley Transportation Authority for the 2016 Measure B Bicycle and Pedestrian Education and Encouragement Program 7. BIDS AND PROPOSALS 8. PUBLIC HEARINGS 8.1.Public Hearing Pursuant to Government Code Section 3502.3 (AB 2561) to Receive a Report on City of Gilroy Vacancies, and Recruitment and Retention Efforts 1.Disclosure of Ex-Parte Communications 2.Staff Report: LeeAnn McPhillips, Assistant City Administrator/HR Director 3.Open Public Hearing 4.Close Public Hearing 5.Possible Action: Receive the informational report on City of Gilroy Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3 (AB 2561). 8.2.Sixth Public Hearing Regarding the City's Transition from an At-Large to a District-Based Elections System for the Purpose of Receiving the Demographer’s Presentation on the Transition Process and Selecting a Final District Elections Map from the Remaining Two Draft Map – Maps D and F; as well as Determining the Order of Elections – that is - Which Three Districts Will Be on the Ballot in the November 2026 Election and Which Three Districts Will Be on the 2028 Ballot; Determining Whether Candidates for City Council Must be Residents and Electors of the District in Which They Seek Election for Any Period of Time Prior to Filing Their Nomination Papers and Declaring Their Intent to Run; and Introduce an Ordinance of the City Council of the City of Gilroy Declaring Henceforth that City Council Elections will be Districted, Adopting a Districting Map, Declaring the Order of Elections, and Potentially Imposing a Residency Requirement on Council Candidates This Public Hearing Item Shall be Heard at 7:00 p.m. or Soon Thereafter 1.Disclosure of Ex-Parte Communications 2.Staff Report: Andy Faber, City Attorney 3.Open Public Hearing 4.Close Public Hearing 5.Possible Action: That the City Council: 1. Select either Draft Map D or Draft Map F as the official district map. 2. Determine which districts will be on the ballot in 2026 and which in Page 5 of 255 May 19, 2025 | 6:00 PM Page 6 of 7 City Council Regular Meeting 2028. 3. If desired by the Council, impose a residency requirement of no greater than 30 days upon candidates prior to filing their nomination papers. 4. Motion to read the ordinance by title only and waive further reading. 5. Introduce an Ordinance of the City Council of the City of Gilroy officially declaring that henceforth, the City Council elections will be districted, including the determinations made regarding items 1-3 above. 9. UNFINISHED BUSINESS 9.1.Strategic Planning Session #4 - Council Legislative Agenda / Public Safety / Unhoused 1.Staff Report: Jimmy Forbis, City Administrator 2.Public Comment 3.Possible Action: Council discussion and direction. 10. INTRODUCTION OF NEW BUSINESS 10.1.Adopt a Resolution Setting the 2025 Fireworks Service Fee 1.Staff Report: Sharon Goei, Community Development Director 2.Public Comment 3.Possible Action: Adopt a Resolution of the City Council of the City of Gilroy setting the 2025 Fireworks Service Fee at $20,519.70 in accordance with Assembly Bill (AB) 1403. 10.2.Consent the Appointment of Ken Binder (CalPERS Retired Annuitant) as the Interim Police Chief Following Successful Completion of all Peace Officer Standards & Training (POST) Hiring Requirements and Adoption of a Resolution Approving the Appointment and Employment Agreement 1.Staff Report: LeeAnn McPhillips, Assistant City Administrator/HR Director 2.Public Comment 3.Possible Action: 1. Consent the City Administrator's recommendation to appoint Ken Binder (CalPERS Retired Annuitant) as Interim Police Chief effective upon successful completion of all Peace Officer Standards & Training (POST) Hiring Requirements. 2. Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Ken Binder (CalPERS Retired Annuitant) as Page 6 of 255 May 19, 2025 | 6:00 PM Page 7 of 7 City Council Regular Meeting Interim Police Chief pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement to include setting the employment start date following successful completion of all POST hiring requirements. 11. FUTURE COUNCIL INITIATED AGENDA ITEMS 12. CITY ADMINISTRATOR'S REPORTS 13. CITY ATTORNEY'S REPORTS 14. CLOSED SESSION 14.1.CONFERENCE WITH LABOR NEGOTIATORS – COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17A.11(4) Collective Bargaining Units: Gilroy Police Officers Association, Inc. Representing Gilroy Police Officers; Gilroy Management Association Representing Mid-Management Employees (GMA); and Unrepresented Exempt Employees (Confidential, Department Heads & Council-Appointed) City Negotiators: Jimmy Forbis, City Administrator; LeeAnn McPhillips, Assistant City Administrator and Administrative Services & Human Resources Director/Risk Manager Anticipated Issue(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions Memorandums of Understanding: City of Gilroy and Gilroy Police Officers Association Inc.; City of Gilroy and Gilroy Management Association (GMA) 15. ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5). 16. ADJOURNMENT FUTURE MEETING DATES June 2025 02 16 Meeting Name - 6:00 p.m. Meeting Name - 6:00 p.m. July 2025 28 City Council Regular Meeting - 6:00 p.m. Meetings are webstreamed on the City of Gilroy’s website at gilroy.city/meetings. Page 7 of 255 Page 8 of 255 Page 9 of 255 DRAFT Page 1 of 1 City of Gilroy City Council Special Meeting Minutes Monday, May 5, 2025 | 12:00 PM 1.OPENING 1.1.Call to Order The meeting was called to order at 12:01 P.M. 1.2.Roll Call Attendance Attendee Name Present Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Council Member Greg Bozzo, Mayor Absent None 2.STRATEGIC PLANNING SESSION #3 Mayor Bozzo opened public comment James Suner - discussed issues relating to development application processing and costs, including but not limited to three needs to start immediately: initiating impact fee nexus studies, making applications better for small project and non-corporate applications, and establishing applicant rights. Michelle Carlen – came before Council and introduced herself as the new President and Chief Executive Officer of the Gilroy Chamber of Commerce. With no additional speakers, Mayor Bozzo closed public comment. 3.ADJOURNMENT With no further business before the Council, the meeting was adjourned at 3:27 P.M. I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy. /s/Bryce Atkins Acting City Clerk Page 10 of 255 DRAFT Page 1 of 2 City of Gilroy City Council Special Meeting Minutes Monday, May 5, 2025 | 5:45 PM 1.OPENING 1.1.Call to Order The meeting was called to order at 5:45 PM. 1.2.Roll Call Attendance Attendee Name Present Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Council Member Greg Bozzo, Mayor Absent None 2.CLOSED SESSION 2.1.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) and Paragraph (3) of Subdivision (e) of Government Code Section 54956.9 and Gilroy City Code Section 17A.11 (3) (b), Based Upon Receipt of a Written Communication from Shenkman & Hughes, PC (Available for Inspection Upon Request at the Office of the City Clerk). One Case as Defendant The City Attorney read the item into the record and provided instructions. Motion: ENTER into Closed Session. RESULT:Pass MOVER: SECONDER: AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 3.ADJOURN TO OPEN SESSION The Council adjourned to open session at 6:12 PM with no reportable actions. 4.ADJOURNMENT With no further business, the meeting was adjourned at 6:12 PM. Page 11 of 255 May 5, 2025 | 5:45 PM Page 2 of 2 City Council Special Meeting Minutes 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/Bryce Atkins Acting City Clerk Page 12 of 255 Page 1 of 7 City of Gilroy City Council Regular Meeting Minutes Monday, May 5, 2025 | 6:00 PM 1.OPENING 1.1.Call to Order The meeting was called to order at 6:12 PM. 1.2.Pledge of Allegiance The Pledge of Allegiance was led by Council Member Fugazzi. 1.3.Invocation None. 1.4 City Clerk's Report on Posting the Agenda The City Clerk reported that the agenda was posted on Friday, May 2, 2025 at 11:11 AM. 1.5.Roll Call Attendance Attendee Name Present Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Council Member Greg Bozzo, Mayor Absent None 1.6.Orders of the Day Mayor Bozzo reminded those in the audience that Public Hearing Item No. 8.2 on the transition to district-based elections would be heard at 7:00 PM. 1.7.Employee Introductions None. 2.CEREMONIAL ITEMS - Proclamations and Awards 2.1.Presentation of Retirement Proclamation to Randy Carpenter 2.2.Presentation of Retirement Proclamation to Jason Smith 2.3.Proclamation Declaring May 2025 as Affordable Housing Month Page 13 of 255 May 5, 2025 | 6:00 PM Page 2 of 7 City Council Regular Meeting Minutes 2.4.Proclamation Declaring May 2025 as Building Safety Month 3.COUNCIL CORRESPONDENCE (Informational Only) None. 4.PRESENTATIONS TO THE COUNCIL 4.1.Youth Commission Annual Presentation Youth Commission Chair Alfred James lead the Gilroy Youth Commission presentation of the annual report to the City Council, assisted by Commissioners Jacob Ortega and Karin Sandoval Rodriguez. 4.2.PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL Mayor Bozzo opened public comment Miguel A. Flaquer II - commented regarding school crosswalk safety and issues with City and School District staff responsiveness, and introduced himself to Council. Alison Cingolani - commented about the SV At Home non-profit organization focused on affordable housing. She thanked Council for recognizing the importance of affordable housing, for the work of the Community Development Department, and that the City has traditionally been a leader in producing low- income housing, but that the work continues. With no further speakers, Mayor Bozzo closed public comment. 5.REPORTS OF COUNCIL MEMBERS Council Member Bracco – reported on the Library District that on the 17th the earthen excursion exhibit for children will be opening on that date, and a book program from the Dolly Parton Foundation grant matched by the State of California. Council Member Fugazzi – No report. Council Member Marques – No report. Council Member Hilton – VTA Policy Advisory Committee: Gilroy Transit Center having a new feature of 18 long-term modern bike parking e-lockers; Silicon Valley Clean Energy: reported on the EV Charging Station Grant for new chargers in the parking lot for the library and the new headquarters building purchased; South County Youth Task Force Policy Team: Violence Prevention Plan was recently presented to the County has approved implementation of the plan into the new County Office of Violence Prevention and the June budget for new workers and engagement with District Attorney for reintegrating a community prosecutor. Council Member Ramirez – No report. Page 14 of 255 May 5, 2025 | 6:00 PM Page 3 of 7 City Council Regular Meeting Minutes Council Member Cline – No report. Mayor Bozzo – reported about Gilroy Gardens marketing and management team provided advanced notice about an upcoming special event called Cherries Jubilee. 6.CONSENT CALENDAR 6.1.Approval of the Action Minutes of the April 21, 2025 City Council Special Meeting and the April 21, 2025 City Council Regular Meeting 6.2.Gilroy Museum's Request for Commission Approval to Transfer $1,985.04 in Interest Income from the Gilroy Museum Endowment Trust to the Museum Donations Fund 6.3.Approval of a Notice of Acceptance of Completion for the Gourmet Alley Improvement Project 24-PW-287 and Approval of a Final Contract Amount of $3,473,203.90 6.4.Second Reading and Adoption of an Ordinance of the City Council of the City of Gilroy Amending Chapter 16.6-1(p) Cardroom, Table Restrictions 6.5.Claim of Roselyn Bowers (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 6.6.Claim of Tony Romero Huerta III (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 6.7.Claim of Miriam Villarial Luna (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Mayor Bozzo opened public comment. With no speakers, Mayor Bozzo closed public comment. Motion: Approve the Consent Calendar RESULT:Pass MOVER:Tom Cline, Council Member SECONDER:Dion Bracco, Council Member AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 7.BIDS AND PROPOSALS 7.1.Award a contract to William Duff Architects, Inc. for Fire Station Renovations Architectural Services in the Amount of $243,076 Mayor Bozzo opened public comment. With no speakers, Mayor Bozzo closed public comment. Motion: Award the contract to William Duff Architects, Inc. Page 15 of 255 May 5, 2025 | 6:00 PM Page 4 of 7 City Council Regular Meeting Minutes RESULT:Pass MOVER:Carol Marques, Council Member SECONDER:Terence Fugazzi, Council Member AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 8.PUBLIC HEARINGS 8.1.Appeal of the Planning Commission's Determination for Architectural and Site Review and Variance Application for Removal of an Existing 35-foot Monopole and Installation of a 65-foot Monopole and Related Equipment Located at 401 First Street, Application No. AS 24-14 and V 24-01 This item was heard after Agenda Item No. 8.2 Representatives of applicants gave a brief statement to the Council regarding their appeal and answered questions from Council. Mayor Bozzo opened the public hearing. With no speakers, Mayor Bozzo closed the public hearing. Motion: Continue the item to the May 19th, 2025 meeting subject to the applicant informing the City no later than five days before that meeting if they need additional time, at which point it would be an open continuance until such time as it can be rescheduled. RESULT:Pass MOVER:Terence Fugazzi, Council Member SECONDER:Kelly Ramirez, Council Member AYES:Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo NAYS:Council Member Bracco, Council Member Cline 8.2.Hold the Fifth Public Hearing Regarding the City's Transition from an At- Large to a District-Based Elections System for the Purpose of Receiving the Demographer’s Presentation on the Transition Process, the Information Received Regarding Communities of Interest in the City, the Possible Contours of Six Districts, the Drawing of Maps by Redistricting Partners, the Review of Maps Submitted on the City’s Website and by Other Means, and the Presentation of Legally Compliant Draft Maps to the City Council for the Six New Districts, as well as the Order of Elections for the 2026 and 2028 Elections This item was heard after Agenda Item No. 11. Mayor Bozzo opened the public hearing Bill O'Connor – Stated his support of Map D to keep the east side together and Page 16 of 255 May 5, 2025 | 6:00 PM Page 5 of 7 City Council Regular Meeting Minutes that if there is no Council Member in the east side, then those districts should be scheduled for 2026. With no additional speakers, Mayor Bozzo closed the public hearing. Motion: Advance Draft Map D and F to the May 19, 2025 Public Hearing for consideration of which map will be selected. RESULT:Pass MOVER:Kelly Ramirez, Council Member SECONDER:Terence Fugazzi, Council Member AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 9.UNFINISHED BUSINESS 9.1.Food Truck Ordinance Update Mayor Bozzo opened public comment. With no speakers, Mayor Bozzo closed public comment. Motion: Direct the City Administrator to enforce the codes and regulations associated with food trucks that are currently in the City’s ordinances. RESULT:Pass MOVER:Carol Marques, Council Member SECONDER:Kelly Ramirez, Council Member AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 10.INTRODUCTION OF NEW BUSINESS 10.1.Receive Draft Community Development Block Grant (CDBG) 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations Mayor Bozzo opened public comment. Oliveria Poblano - commented in support of the Consolidated Plan adoption, and the economic benefits the funding provides, including affordable housing. She encouraged Council to adopt the plans. Larissa Cortez - spoke in support of the plans, that it helps prevent some from becoming homeless, and that it is important to have a place to stay where rent is more affordable Yesenia Ochoa - commented about her personal, family experience that resulted Page 17 of 255 May 5, 2025 | 6:00 PM Page 6 of 7 City Council Regular Meeting Minutes in challenges to cover rent, and that many families are struggling to afford housing and essential expenses. She urged the City to allocate the funds strategically in support of affordable housing. With no further speakers, Mayor Bozzo closed public comment. Motion: Direct staff to allocate CDBG funding as follows: for the public service allocations to be equally distributed at $10,000 each, as recommended, and for the nonpublic service allocation, the full amount of $155,639 is to be applied to the Public Works program on the east side, specifically east of Monterey and south of Leavesley. RESULT:Pass MOVER:Terence Fugazzi, Council Member SECONDER:Dion Bracco, Council Member AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo NAYS:Mayor Bozzo 11.FUTURE COUNCIL INITIATED AGENDA ITEMS This item was heard after Agenda Item No. 13. None. 12.CITY ADMINISTRATOR'S REPORTS 12.1.Santa Teresa Fire Station/Fire Service Update 12.2.Sharks Ice Update This item was heard after Agenda Item No. 7.1. City Administrator Forbis provided a report on both the Santa Teresa Fire Station and Fire Services, as well as an update on the Sharks Ice Project. 13.CITY ATTORNEY'S REPORTS This item was heard after Agenda Item No. 12. City Attorney Faber provided a report about providing copies of the California Environmental Quality Act updated book, and handed them out to the Council. 14.CLOSED SESSION 14.1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC Sec. 54956.8 and GCC Sec. 17A.8 Property: 7257 Monterey Street (APN 799-09-059) Negotiators: Jimmy Forbis, City Administrator; Sharon Goei, Community Development Director Other Party to Negotiations: RIG I LLC Page 18 of 255 May 5, 2025 | 6:00 PM Page 7 of 7 City Council Regular Meeting Minutes Under Negotiation: Price and terms of payment 14.2.PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT: Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2) Name/Title: Police Chief This item followed Agenda Item No. 10.1 Mayor Bozzo opened public comment. With no speakers, Mayor Bozzo closed public comment. Motion: Vote to remain in Closed Session RESULT:Pass MOVER: SECONDER: AYES:Council Member Bracco, Council Member Cline, Council Member Fugazzi, Council Member Hilton, Council Member Marques, Council Member Ramirez, Mayor Bozzo 15.ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5). The Council adjourned to open session at 10:40 PM with no reportable action. 16.ADJOURNMENT With no more business before the Council, the meeting was adjourned at 10:40 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 on May 19, 2025. /s/Bryce Atkins Acting City Clerk Page 19 of 255 DRAFT May 12, 2025 | 6:00 PM Page 1 of 1 City Council Budget Workshop Meeting Minutes City of Gilroy City Council Budget Workshop Meeting Minutes Monday, May 12, 2025 | 6:00 PM 1. OPENING 1. Call to Order The meeting was called to order at 6:00 PM. 2. Roll Call Attendance Attendee Name Present Dion Bracco, Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Council Member Greg Bozzo, Mayor Absent Terence Fugazzi, Council Member 2. BUDGET WORKSHOP 1. Fiscal Year 2026 and 2027 Recommended Budget Presentation Council received a presentation from staff regarding the recommended budget. Mayor Bozzo opened public comment. Luis Ramirez – shared with Council his gratitude for the inclusion of budget amounts for parks in the proposed budget, discussed the importance of investments in parks and recreation and its community benefits, and asked Council to consider investing a small percentage of any surplus to fund recreation. Emily Miller – commented about her role on the Parks and Recreation Commission and stated her support for the full package of investments in parks and recreation projects in the proposed budget. With no additional speakers, Mayor Bozzo closed public comment. 3. ADJOURNMENT With no more business before the Council, the meeting was adjourned at 9:22 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 on Monday, May 19, 2025. Bryce Atkins Acting City Clerk Page 20 of 255 City of Gilroy STAFF REPORT Agenda Item Title: Purchase of Irrigation Controllers for a Total of $124,763 Utilizing Sourcewell's Cooperative Purchasing Contract 112624-TTC Meeting Date: May 19, 2025 From: Jimmy Forbis, City Administrator Department: Public Works Submitted by: Matt Jones, Deputy Public Works Director Prepared by: Matt Jones, Deputy Public Works Director STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION Staff recommends that the City Council authorize the purchase of 11 Rain Master DXI irrigation controllers to replace aging and unsupported Rain Master DX2 controllers at 17 Parks and Landscape locations. The purchase, totaling $124,763, will be made through Sourcewell’s Cooperative Purchasing Contract 112624-TTC. EXECUTIVE SUMMARY The existing Rain Master DX2 irrigation controllers, totaling 56 units, have been in service across various Parks and Landscape sites for over 28 years. The manufacturer has discontinued production of this model and its components, with full support anticipated to end within the next 3–5 years. Staff proposes the purchase of 11 modern Rain Master DXI controllers. These units will replace 17 existing controllers through system consolidation in high-priority parks such as Gilroy Sports Park and Las Animas Park. The DXI controllers provide cloud-based monitoring, cellular connectivity, and greater scalability. Utilizing Sourcewell's competitively bid purchasing contract allows the City to secure favorable pricing without initiating a separate RFP. Page 21 of 255 BACKGROUND The Parks and Landscape Section of the Public Works Department is responsible for the maintenance of irrigation systems throughout City parks and streetscapes. The current Rain Master DX2 irrigation controllers were installed over two decades ago and have exceeded their expected service life. The manufacturer has ceased production of these units, and most parts are no longer available. In addition, repairing faulty controllers requires refurbished or used components. ANALYSIS Current Challenges: • Aging Infrastructure: The existing DX2 controllers are obsolete and no longer supported by the manufacturer. • Delayed Repairs: Failed components must be refurbished off-site, or the use of used parts, leading to service disruptions and staff inefficiency. • Limited Functionality: The DX2 lacks features such as cloud connectivity, remote access, and weather integration, all of which are standard in modern systems. • Labor Impact: Staff spend approximately 8% of their time troubleshooting and repairing outdated controllers, detracting from core maintenance responsibilities. Proposed Solution – Rain Master DXI Controllers: • Modern Connectivity: The DXI offers real-time cloud monitoring and cellular communications, enabling staff to remotely troubleshoot and adjust systems via mobile app. • Consolidation Efficiency: Each DXI unit can manage up to 96 stations, allowing the City to consolidate multiple legacy units into single controllers at large parks. • Reliability & Water Savings: Enhanced features support better scheduling, automated weather-based irrigation, and flow monitoring, reducing water waste and protecting infrastructure. • Scalable Implementation: Staff proposes a total replacement of 56 total controllers. The initial purchase of 11 DXI controllers will replace 17 DX2 units using consolidation strategies. ALTERNATIVES Council may reject the purchase through the Sourcewell contract. This is not recommended as there would be additional staff time for conducting a formal procurement process, and potential further delays in instituting the repairs of the outdated controllers. Page 22 of 255 FISCAL IMPACT/FUNDING SOURCE The proposed investment of $124,763 will fund the purchase of 11-Rain Master DXI controllers, replacing 17-DX2 units at key park locations, utilizing the Sourcewell cooperative purchasing contract 112624-TTC. SiteOne Landscape Supply is the local distributor of Toro Products, which owns Rain Master Irrigation Controllers, and secured the publicly awarded contract through Sourcewell. The price includes installation, training, and 10 years of Cloud-Based Service. After 10 years of Cloud-Based Service, the City will incur $150.00 per controller per year, for a total of $1,650 per year. At this time, staff will budget for these costs. Funding for the purchase is budgeted in the fiscal year 2024-25 Public Works, Parks and Landscape operating budget in the General Fund (100). Additionally, reducing the maintenance burden on existing controllers will return valuable staff time to core operational work. Cloud-based functionality and improved system reliability are expected to reduce long-term operating costs while supporting the City’s water conservation goals. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS • Upon Council approval, staff will initiate procurement of 11 Rain Master DXI controllers through Sourcewell Cooperative Purchasing Contract 112624-TTC. • Installation will begin at 17 high-priority locations where radio communication is limited or frequent mechanical issues occur. • The remaining 39 DX2 controllers will be prioritized, budgeted, and scheduled for replacement, based on performance, consolidation opportunities, and budget availability. Attachments: 1. SiteOne staff report backup Page 23 of 255 Quotation Gilroy CA #153 7110 Alexander St Gilroy, CA 95020-6609 W: (408)847-8793 Bill To: City Of Gilroy-Pks & Rec (#202001) 7351 Rosanna St Gilroy, CA 95020-6141 W: (408)846-0234 Ship To: City Of Gilroy-Pks & Rec (#202001) 7351 Rosanna St Gilroy, CA 95020-6141 W: (408)846-0234 Created Quote#Due Date Expected Award Date Expiration Date 04/29/2025 7674080 06/01/2025 06/01/2025 06/01/2025 Printed Job Name Job Description Job Start Date 04/29/2025 17:13:00 FIRST GROUP DXi Upgrades 2025 Sourcewell Pricing with Labor 06/01/2025 Line #Item #Item Desc Qty UOM Unit Price Extended Price 1 NOTE Note: Item Note: This quote copies 7483319 with Pricing going into effect as of 5.1.2025 EA 0.000 2 NOTE Note: Item Note: This quote meets or exceeds Sourcewell Contract Pricing for Toro: Contract 112624-TTC as of 5.1.2025 EA 0.000 3 C “Tariffs” Prices may change due to the potential tariffs. 4 Gilroy Sports Park A, B 0.000 5 SA01-RM6-48 GT RM DXi-48 Sat PWM Assembly 1 EA 5,412.640 5,412.64 6 SA01X-RM6-40 GT RM DXi Extension-40 PWM Sat Assembly 1 EA 2,949.950 2,949.95 7 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 8 ST Subtotal Line 1 0.000 11,027.59 9 Gilroy Sports Park C, D 0.000 10 SA01-RM6-48 GT RM DXi-48 Sat PWM Assembly 1 EA 5,412.677 5,412.68 11 SA01X-RM6-48 GT RM DXi Extension-48 PWM Sat Assembly 1 EA 3,442.950 3,442.95 12 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 13 ST Subtotal Line 2 0.000 11,520.63 14 LAVP A, B 0.000 15 SA01-RM6-40 GT RM DXi-40 Sat PWM Assy 1 EA 4,919.610 4,919.61 16 SA01X-RM6-40 GT RM DXi Extension-40 PWM Sat Assembly 1 EA 2,949.950 2,949.95 17 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 18 ST Subtotal Line 3 0.000 10,534.56 19 LAVP C, D 0.000 20 SA01-RM6-40 GT RM DXi-40 Sat PWM Assy 1 EA 4,919.612 4,919.61 21 SA01X-RM6-24 GT RM DXi Extension-24 PWM Sat Assembly 1 EA 1,963.870 1,963.87 22 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 23 ST Subtotal Line 4 0.000 9,548.48 24 CHP Amphitheatre 0.000 25 SA01-RM6-24 GT RM DXi-24 PWM Sat Assembly 1 EA 3,933.550 3,933.55 26 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 27 ST Subtotal Line 5 0.000 6,598.55 28 CHP Barn 0.000 29 SA01-RM6-40 GT RM DXi-40 Sat PWM Assy 1 EA 4,919.612 4,919.61 30 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 31 ST Subtotal Line 6 0.000 7,584.61 32 CHP Ranch 0.000 33 SA01-RM6-48 GT RM DXi-48 Sat PWM Assembly 1 EA 5,412.677 5,412.68 34 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 35 ST Subtotal Line 7 0.000 8,077.68 36 N Santa Teresa A, B 0.000 37 SA01-RM6-48 GT RM DXi-48 Sat PWM Assembly 1 EA 5,412.677 5,412.68 38 SA01X-RM6-40 GT RM DXi Extension-40 PWM Sat Assembly 1 EA 2,949.950 2,949.95 39 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 40 ST Subtotal Line 8 0.000 11,027.63 Page 24 of 255 41 N Santa Teresa C 0.000 42 SA01-RM6-48 GT RM DXi-48 Sat PW M Assembly 1 EA 5,412.677 5,412.68 43 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 44 ST Subtotal Line 9 0.000 8,077.68 45 Luchessa Sndwll Rndbout, Thomas 0.000 46 SA01-RM6-24 GT RM DXi-24 PW M Sat Assembly 1 EA 3,933.550 3,933.55 47 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 48 ST Subtotal Line 10 0.000 6,598.55 49 San Ysidro 0.000 50 SA01-RM6-24 GT RM DXi-24 PW M Sat Assembly 1 EA 3,933.550 3,933.55 51 DXICA GT DX3 / DXi Cell Modem & Antenna Assembly 1 EA 2,665.000 2,665.00 52 ST Subtotal Line 11 0.000 6,598.55 53 0.000 0.00 54 NOTE Note: Item Note: This quote meets Department of Industrial Relations Requirements for projects for construction, alteration, installation, demolition or repair. SiteOne Green Tech is registered with the DIR and will provide certified payroll records to the Labor Commissioner using the DIR's Public W orks W ebsite Services. EA 0.000 55 GTINSTALL-AM GT Install - Alfonso Mendez Item Note: New W all Mount Install or Retrofit for up to 24 stations includes new controller assembly, new labels on station wires, ohms check of existing field wires, wiring stations to output terminals, controller grounding test. Standard installation does not include programming or activation 7 EA 1,000.000 7,000.00 56 GTINSTALL-AM GT Install - Alfonso Mendez Item Note: New W all Mount Install or retrofits for up to 48 stations includes new controller assembly, new labels on station wires, ohms check of existing field wires, wiring stations to output terminals, controller grounding test. Standard installation does not include programming or activation 9 EA 1,250.000 11,250.00 57 GTMISCPARTS GT Miscellaneous Parts 16 EA 25.750 412.00 Total Price: $ 115,856.51 Total Tax: $ 8,906.59 Total: $ 124,763.10 SiteOne Landscape Supply is not responsible for the accuracy of the items contained in this quotation. Please review carefully. Please add appropriate sales tax. Prices on this quote are good for 30 days after the entered bid date. Local tax may differ based on locations and local codes. Page 25 of 255 Page 26 of 255 Page 27 of 255 Page 28 of 255 Pricing for the Sourcewell contract offers participating agencies the following discounts**: •Toro Commercial Equipment: 22% off US MSRP •Toro Specialty Vehicles: 7% off US MSRP •Toro Bullseye Equipment: 5% off US MSRP •Toro Autonomous Solutions: 0% off US MSRP •Toro Landscape Contractor Equipment (LCE) (A): 27% off US MSRP •LCE Allied Products (B): 0% off US MSRP •Toro Landscape Contractor SNOW Equipment (LCE SNOW): 20% off US MSRP •Toro Siteworks System (SWS) Equipment: 17% off US MSRP •BOSS Snow Removal Equipment: 25% off US MSRP •BOSS Snow Removal Equipment (Snowrator Units Only): $400 off US MSRP •Ventrac 4520 Series Products: 8% off US MSRP •Ventrac 2120 Products: 3% off US MSRP •Toro Golf Irrigation: 40% off US MSRP •Toro Residential Commercial Equipment (RES COM): 40% off US MSRP •Irritrol Irrigation Products: 0% - 40% off US MSRP •Rain Master Irrigation Products: 0% - 40% off US MSRP •Sentinel Irrigation Products: 35% off US MSRP •Large Rotors: 15% off US MSRP •Third party attachments and used equipment: distributors/dealers will set the price but will not exceed list price. **Pricing is subject to changed based on market conditions, availability, and other factors. A tariff surcharge may be added to orders at the discretion of the distributor -- not to exceed 10% of the total cost of the order. Setup Fees: Toro’s authorized distributors/dealers may include setup fees – not to exceed 5% of the total product cost, plus up to an additional 5% for cab-unit setups. Setup fees must be identified as a separate line-item on the quotation. Delivery: In addition, authorized distributors/dealers may include delivery fees – not to exceed 5% of the total product cost, which must be identified as a separate line-item on the quotation. Installation: Toro’s authorized distributors may include installation fees for autonomous solutions – not to exceed 10% of the total product cost, which must be identified as a separate line-item on the quotation. Docusign Envelope ID: 3C371F18-7A71-4C85-A67B-20FA3D6043AA Page 29 of 255 Page 30 of 255 Page 31 of 255 Page 32 of 255 Page 33 of 255 Page 34 of 255 Page 35 of 255 Page 36 of 255 Page 37 of 255 Page 38 of 255 Page 39 of 255 Page 40 of 255 Page 41 of 255 Page 42 of 255 Page 43 of 255 Page 44 of 255 Page 45 of 255 Page 46 of 255 Page 47 of 255 Page 48 of 255 Page 49 of 255 Page 50 of 255 Page 51 of 255 Page 52 of 255 Page 53 of 255 Page 54 of 255 Page 55 of 255 Page 56 of 255 Page 57 of 255 Page 58 of 255 Page 59 of 255 Page 60 of 255 Page 61 of 255 Page 62 of 255 Page 63 of 255 Sourcewell Contract # 112624-TTC | Amendment #1 Page 1 of 2 AMENDMENT #1 TO CONTRACT # 112624-TTC THIS AMENDMENT is effective upon the date of the last signature below by and between Sourcewell and The Toro Company (Supplier). Sourcewell awarded a contract to Supplier to provide Grounds Maintenance Equipment and Related Attachments to Sourcewell and its Participating Entities, effective January 30, 2025, through January 31, 2029 (Contract). The parties wish to amend the Proposal to ensure compliance with Sourcewell’s Procurement Policy and standard government procurement practices. NOW, THEREFORE, the parties amend the Contract as follows: 1. Line item 64 of “Table 6: Pricing (400 Points)” of the Proposal is deleted in its entirety and replaced with the following: Toro offered discounts will range from 0%-40% off current MSRP. 2. Line item 67 of “Table 6: Pricing (400 Points)” of the Proposal is delete in its entirety and replaced with the following: SETUP When an order involves setup charges, it will be – a) Determined by the delivering distributor/dealer b) Clearly labeled as such unless otherwise requested by the customer. - In the event a quote is a lump-sum total, or other method that does not show line-item details, line-item details will be used to determine the contract price and will be available upon request. c) Calculated using one of the following methods - 1) Manufacturers Setup Time x Distributor/Dealer posted labor rate, or 2) 5% of the total product cost, with an additional 5% for cabbed units Different methods are required due to the wide array of products being offered. Setup charges are consistent with market standards.         Page 64 of 255 Sourcewell Contract # 112624-TTC | Amendment #1 Page 2 of 2 TRAINING Standard training on equipment is included at time of delivery. If a customer requests additional training, either beyond standard operators training or at a time other than delivery, associated costs will be determined with the local dealer. INSTALLATION Many of our products can be installed on customer owned vehicles. While this service is available, due to the variety of factors involved in those type of sales, installation costs for contracted products on customer supplied vehicles will be determined with the local dealer and will be discussed up front and included on any quote. Installation/setup for autonomous solutions can be added at the discretion of the distributor, not to exceed 10% of the total product cost. Except as amended by this Amendment, the Contract remains in full force and effect. Sourcewell The Toro Company By: By: Jeremy Schwartz, Chief Operating Officer Brooke Carey, Federal Contracts Manager Date: Date:                 Page 65 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 1   RFP #112624  REQUEST FOR PROPOSALS   for   Grounds Maintenance Equipment and Related Attachments    Proposal Due Date: November 26, 2024, 4:30 p.m., Central Time       Sourcewell, a State of Minnesota local government unit and service cooperative, is requesting  proposals for Grounds Maintenance Equipment and Related Attachments to result in a  procurement solution for use by its Participating Entities. Sourcewell Participating Entities  include thousands of governmental, higher education, K‐12 education, nonprofit, tribal  government, and other public agencies located in the United States and Canada. A full copy of  the Request for Proposals can be found on the Sourcewell Procurement Portal  [https://proportal.sourcewell‐mn.gov]. Only proposals submitted through the Sourcewell  Procurement Portal will be considered. Proposals are due no later than November 26, 2024, at  4:30 p.m. Central Time, and late proposals will not be considered.    SOLICITATION SCHEDULE    Public Notice of RFP Published: October 8, 2024  Pre‐proposal Conference: November 5, 2024, 10:00 a.m., Central Time  Question Submission Deadline: November 18, 2024, 4:30 p.m., Central Time  Proposal Due Date: November 26, 2024, 4:30 p.m., Central Time  Late responses will not be considered.    Opening: November 26, 2024, 4:30 p.m., Central Time  See RFP Section V.G. “Opening”            Page 66 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 2 I. ABOUT SOURCEWELL    A. SOURCEWELL     Sourcewell is a State of Minnesota local government unit and service cooperative created  under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates  a competitive public solicitation and master agreement award process for the benefit of its  50,000+ participating entities across the United States and Canada. Sourcewell’s solicitation  process complies with State of Minnesota law and policies, conforms to Canadian trade  agreements (including Canadian Free Trade Agreement, Ontario‐Quebec Trade and  Cooperation Agreement, and Canada‐European Union Comprehensive Economic and Trade  Agreement, as applicable), and results in cooperative purchasing solutions from which  Sourcewell’s Participating Entities procure equipment, products, and services.      Cooperative purchasing provides participating entities and suppliers increased administrative  efficiencies and the power of combined purchasing volume that result in overall cost savings. At  times, Sourcewell also partners with other purchasing cooperatives to combine the purchasing  volume of their membership into a single solicitation and master agreement expanding the  reach of awarded suppliers’ potential pool of end users.     Sourcewell uses a website‐based platform, the Sourcewell Procurement Portal, through which  all proposals to this RFP must be submitted.       B. USE OF RESULTING MASTER AGREEMENTS    In the United States, Sourcewell’s master agreements are available for use by:    Federal and state government entities1;    Cities, towns, and counties/parishes;   Education service cooperatives;   K‐12 and higher education entities;   Tribal government entities;   Some nonprofit entities; and    Other public entities.     In Canada, Sourcewell’s master agreements are available for use by current and future members  including:    Federal, provincial, and territorial government departments, ministries, agencies,  boards, councils, committees, commissions, and similar agencies;   Indigenous self‐governing bodies;  1 Pursuant to HAR §3‐128‐2, the State of Hawaii, Department of Accounting and General Services, State Procurement Office, on behalf of the  State of Hawaii and participating jurisdictions, has provided notice of its Intent to Participate in the solicitation as a participating entity.     Page 67 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 3  Regional, local, district, and other forms of municipal government, municipal  organizations, school boards, and publicly funded academic, health, and social service  entities referred to as MASH sector (this should be construed to include but not be  limited to the cities of Calgary, Edmonton, Toronto, Ottawa, and Winnipeg), as well as  any corporation or entity owned or controlled by one or more of the preceding entities;   Crown corporations, government enterprises, and other entities that are owned or  controlled by these entities through ownership interest; and   Canoe procurement group of Canada’s current and future members.  Canoe members  include:  o Federal, provincial and territorial government departments, ministries, agencies,  boards, councils, committees, commissions, and similar agencies;  o Crown corporations, government enterprises, and other entities that are owned  or controlled by these entities through ownership interest;  o Indigenous self‐governing bodies;  o Airport authorities;   o Regional, local, district, and other forms of municipal government, municipal  organizations, school boards, and publicly funded academic, health, and social  service entities referred to as MASH sector (this should be construed to include  but not be limited to the cities of Calgary, Edmonton, Toronto, Ottawa, and  Winnipeg), as well as any corporation or entity owned or controlled by one or  more of the preceding entities; and   o Canoe procurement group of Canada’s current and future partner associations,  including Saskatchewan Association of Rural Municipalities, Association of  Manitoba Municipalities, Local Authorities Services/Association of Municipalities  Ontario, Nova Scotia Federation of Municipalities, Federation of Prince Edward  Island Municipalities, Municipalities Newfoundland Labrador, Union of New  Brunswick Municipalities, Northwest Territories Association of Communities,  Association of Yukon Communities, CivicInfo BC, Association and their current  and future members.   For a listing of current United States and Canadian Participating Entities visit Sourcewell’s  website (note: there is a tab for each country): https://www.sourcewell‐mn.gov/sourcewell‐for‐ vendors/agency‐locator.  Participating Entities typically access master agreements for equipment, products, or services  through a purchase order issued directly to the awarded supplier. A Participating Entity may  request additional terms or conditions related to a purchase. Use of Sourcewell master  agreements is voluntary and Participating Entities retain the right to obtain similar equipment,  products, or services from other sources.    To meet Participating Entities’ needs, Sourcewell broadly publishes public notice of all  solicitation opportunities, including this RFP. In addition, where applicable, other purchasing  cooperatives and procurement officials receive notice and are encouraged to re‐post the  solicitation opportunity.   Page 68 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 4   Proof of publication will be available at the conclusion of the solicitation process.  II. SOLICITATION DETAILS    A. SOLUTIONS‐BASED SOLICITATION     This RFP and master agreement award process is a solutions‐based solicitation; meaning that  Sourcewell is seeking equipment, products, or services that meet the general requirements of  the scope of this RFP and are commonly desired or are required by law or industry standards.      B. REQUESTED EQUIPMENT, PRODUCTS, OR SERVICES    It is expected that proposers will offer a wide array of equipment, products, or services at lower  prices and with better value than what they would ordinarily offer to a single government  entity, school district, or regional cooperative.    1. Sourcewell is seeking proposals for Grounds Maintenance Equipment and Related  Attachments, such as:    a. Lawn and garden equipment for all types of lawn, field and turf care, golf course,  landscape, sidewalk, walking path, and parking lot maintenance, and snow removal;    b. Irrigation and aeration equipment, systems, parts, and installation; and    c. Beach and waterfront maintenance equipment and accessories.    Proposers may include related tools, attachments, parts, accessories, and services related to the  solutions described in subsection 1.a.‐c. above, including but not limited to: repair, maintenance,  installation, and warranty programs to the extent that these solutions are complementary to the  equipment and services being proposed.     2.   This solicitation should NOT be construed to include equipment principally intended or  designed for highway maintenance or construction, road right‐of‐way, tree maintenance,  or sewer maintenance.     3.   The primary focus of this solicitation is on Grounds Maintenance Equipment and Related  Attachments. However, this solicitation should NOT be construed to include  “attachment only,” “service only,” or “installation only” solutions.  This solicitation does not include equipment, products, or services covered under categories  included in master agreements currently maintained by Sourcewell:    a.   Roadway Maintenance Equipment with Related Accessories, Attachments, Materials,  and Supplies (RFP #080521)  Page 69 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 5    b.   Snow and Ice Handling Equipment, Supplies, and Accessories (RFP #062222)     c.   Portable Construction Equipment with Related Accessories and Attachments (RFP  #110421)     d.   Ag Tractors with Related Attachments, Accessories, and Supplies (RFP #082923)    e. Road Right‐of‐Way Maintenance Equipment (RFP #070821)    Generally, the solutions for Participating Entities are turn‐key solutions, providing a  combination of equipment, products and services, delivery, and installation to a properly  operating status. However, equipment‐only or products‐only solutions may be appropriate for  situations where Participating Entities possess the ability, either in‐house or through local third‐ party contractors, to properly install and bring to operation the equipment or products being  proposed.    Sourcewell prefers suppliers that provide a sole source of responsibility for the equipment,  products, and services provided under a resulting master agreement. If proposer is including  the equipment, products, and services of its subsidiary entities, the proposer must also identify  all included subsidiaries in its proposal. If proposer requires the use of distributors, dealers,  resellers, or subcontractors to provide the equipment, products, or services, the proposal must  address how the equipment, products or services will be provided to Participating Entities, and  describe the network of distributors, dealers, resellers, and/or subcontractors that will be  available to serve Participating Entities under a resulting master agreement.     Sourcewell encourages suppliers to offer the broadest possible selection of equipment,  products, and services being proposed over the largest possible geographic area and to the  largest possible cross‐section of Sourcewell current and future Participating Entities.    C. REQUIREMENTS    It is expected that proposers have knowledge of all applicable industry standards, laws, and  regulations and possess an ability to market and distribute the equipment, products, or services  to Participating Entities.     1. Safety Requirements. All items proposed must comply with current applicable safety or  regulatory standards or codes.  2. Deviation from Industry Standard. Deviations from industry standards must be  identified with an explanation of how the equipment, products, and services will provide  equivalent function, coverage, performance, and/or related services.    3. New Equipment and Products. Proposed equipment and products must be for a new,  current model; however, proposer may offer certain close‐out equipment or products if  it is specifically noted in the Pricing proposal.   Page 70 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 6 4. Delivered and operational. Unless clearly noted in the proposal, equipment and  products must be delivered to the Participating Entity as operational.  5. Warranty. All equipment, products, supplies, and services must be covered by a  warranty that is the industry standard or better.      D. PROSPECTIVE MASTER AGREEMENT TERM    The term of any resulting master agreement(s) awarded by Sourcewell under this solicitation  will be four years. Sourcewell and supplier may agree to up to three additional one‐year  extensions based on the best interests of Sourcewell and its Participating Entities. Sourcewell  retains the right to consider additional extensions beyond seven years as required under  exceptional circumstances.     E. ESTIMATED MASTER AGREEMENT VALUE AND USAGE    Based on past volume of similar master agreements, the estimated annual value of all  transactions from master agreements resulting from this RFP are anticipated to be USD 160  Million; therefore, proposers are expected to propose volume pricing. Sourcewell anticipates  considerable activity under the master agreement(s) awarded from this RFP; however, sales  and sales volume from any resulting master agreement are not guaranteed.    F. MARKETING PLAN    Proposer’s sales force will be the primary source of communication with Participating Entities.  The proposer’s Marketing Plan should demonstrate proposer’s ability to deploy a sales force or  dealer network to Participating Entities, as well as proposer’s sales and service capabilities. It is  expected that proposer will promote and market any master agreement award.    G. ADDITIONAL CONSIDERATIONS    1. Master Agreements will be awarded to proposers able to best meet the need of  Participating Entities. Proposers should submit their complete line of equipment,  products, or services that are applicable to the scope of this RFP.   2. A proposer may submit only one proposal. If related, affiliated, or subsidiary entities  elect to submit separate proposals, rather than a single parent‐entity proposal, each  such proposal must be prepared independently and without cooperation, collaboration,  or collusion.  3. If a proposer works with a consultant on its proposal, the consultant (an individual or  company) may not assist any other entity with a proposal for this solicitation.  4. Proposers should include all relevant information in its proposal, since Sourcewell  cannot consider information that is not included in the proposal. Sourcewell reserves  the right to verify proposer’s information and may request clarification from a proposer,  including samples of the proposed equipment or products.  Page 71 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 7 5. Depending upon the responses received in a given category, Sourcewell may need to  organize responses into subcategories in order to provide the broadest coverage of the  requested equipment, products, or services to Participating Entities. Awards may be  based on a subcategory.  6. A proposer’s documented negative past performance with Sourcewell or its  Participating Entities occurring under a previously awarded Sourcewell master  agreement may be considered in the evaluation of a proposal.      III. PRICING  A. REQUIREMENTS    All proposed pricing must be:    1. Either Line‐Item Pricing or Percentage Discount from Catalog Pricing, or a combination of  these:  a. Line‐item Pricing is pricing based on each individual product or service. Each line must  indicate the proposer’s published “List Price,” as well as the “Master Agreement  Price.”   b. Percentage Discount from Catalog or Category is based on a percentage discount from  a catalog or list price, defined as a published Manufacturer’s Suggested Retail Price  (MSRP) for the products or services. Individualized percentage discounts can be  applied to any number of defined product groupings. Proposers will be responsible  for providing and maintaining current published MSRP with Sourcewell, and this  pricing must be included in its proposal and provided throughout the term of any  master agreement resulting from this RFP.   2. The proposer’s not to exceed price. A not to exceed price is the highest price for which  equipment, products, or services may be billed to a Participating Entity. However, it is  permissible for suppliers to sell at a price that is lower than the agreed upon price.   3. Stated in U.S. and Canadian dollars (as applicable).  4. Clearly understandable, complete, and fully describe the total cost of acquisition (e.g., the  cost of the proposed equipment, products, and services delivered and operational for its  intended purpose in the Participating Entity’s location).    Proposers should clearly identify any costs that are NOT included in the proposed product or  service pricing. This may include items such as installation, set up, mandatory training, or initial  inspection. Include identification of any parties that impose such costs and their relationship to  the proposer. Additionally, proposers should clearly describe any unique distribution and/or  delivery methods or options offered in the proposal.     B. ADMINISTRATIVE FEES    Proposers awarded a master agreement are expected to pay to Sourcewell an administrative fee  in exchange for Sourcewell facilitating the resulting master agreements. The administrative fee  is normally calculated as a percentage of the total sales to Participating Entities for all  equipment,  Page 72 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 8 products, or services made during a calendar quarter, and is typically one percent (1%) to two  percent (2%). In some categories, a flat fee may be an acceptable alternative.    IV. MASTER AGREEMENT    Proposers awarded a master agreement will be required to execute a master agreement with  Sourcewell (see attached template). Only those modifications the proposer indicates in its  proposal will be available for discussion. Much of the language in the Master Agreement  reflects Minnesota legal requirements and cannot be altered. Numerous and/or onerous  exceptions that contradict Minnesota law may result in the proposal being disqualified from  further review and evaluation.      To identify any exception, or to request any modification, to Sourcewell’s standard master  agreement terms, conditions, or specifications, a proposer must submit the proposed  exception(s) or requested modification(s) via redline in the Master Agreement Template  provided in the “Documents” section of the “Bid Details” page on the Sourcewell Procurement  Portal and uploaded as part of its response. Only those exceptions noted at the time of the  proposal submission will be considered.  Exceptions must:  1. Clearly identify the affected article and section.  2. Clearly note the requested modification; and as applicable, provide requested  alternative language.  Unclear requests will be automatically denied.      Only those exceptions that have been accepted by Sourcewell will be included in the Master  Agreement document provided to the awarded supplier for signature.    If a proposer receives a master agreement award resulting from this solicitation it will have up  to 30 days to sign and return the master agreement. After that time, at Sourcewell’s sole  discretion, the master agreement award may be revoked.    V. RFP PROCESS    A. PRE‐PROPOSAL CONFERENCE    Sourcewell will hold an optional, non‐mandatory pre‐proposal conference via webcast on the  date and time noted in the Solicitation Schedule for this RFP and on the Sourcewell  Procurement Portal. The purpose of this conference is to allow potential proposers to ask  questions regarding this RFP and Sourcewell’s competitive procurement process. Information  about the webcast will be sent to all entities that have registered for this solicitation  opportunity through their Sourcewell Procurement Portal Vendor Account. Pre‐proposal  conference attendance is optional.      Page 73 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 9 B. QUESTIONS REGARDING THIS RFP AND ORAL COMMUNICATION      All questions regarding this RFP must be submitted through the Sourcewell Procurement Portal.  The deadline for submission of questions is found in the Solicitation Schedule and on the  Sourcewell Procurement Portal. Answers to questions will be issued through an addendum to  this RFP. Repetitive questions will be summarized into a single answer and identifying  information will be removed from the submitted questions.      All questions, whether specific to a proposer or generally related to the RFP, must be submitted  using this process. Do not contact individual Sourcewell staff to ask questions or request  information as this may disqualify the proposer from responding to this RFP. Sourcewell will not  respond to questions submitted after the deadline.     C. ADDENDA     Sourcewell may modify this RFP at any time prior to the proposal due date by issuing an  addendum. Addenda issued by Sourcewell become a part of the RFP and will be delivered to  potential proposers through the Sourcewell Procurement Portal. Sourcewell accepts no liability  in connection with the delivery of any addenda.    Before a proposal will be accepted through the Sourcewell Procurement Portal, all addenda, if  any, must be acknowledged by the proposer by checking the box for each addendum. It is the  responsibility of the proposer to check for any addenda that may have been issued up to the  solicitation due date and time.     If an addendum is issued after a proposer submitted its proposal, the Sourcewell Procurement  Portal will WITHDRAW the submission and change the proposer’s proposal status to  INCOMPLETE. The proposer can view this status change in the “MY BIDS” section of the  Sourcewell Procurement Portal Vendor Account. The proposer is solely responsible to check the  “MY BIDS” section of the Sourcewell Procurement Portal Vendor Account periodically after  submitting its proposal (and up to the Proposal Due Date). If the proposer’s proposal status has  changed to INCOMPLETE, the proposer is solely responsible to:  1. make any required adjustments to its proposal;   2. acknowledge the addenda; and  3. ensure the re‐submitted proposal is received through the Sourcewell Procurement Portal  no later than the Proposal Due Date and time shown in the Solicitation Schedule above.    D. PROPOSAL SUBMISSION    Proposer’s complete proposal must be submitted through the Sourcewell Procurement Portal  no later than the date and time specified in the Solicitation Schedule. Any other form of  proposal submission, whether electronic, paper, or otherwise, will not be considered by  Sourcewell. Late proposals will not be considered. It is the proposer’s sole responsibility to  ensure that the proposal is received on time.   Page 74 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 10   It is recommended that proposers allow sufficient time to upload the proposal and to resolve  any issues that may arise. The time and date that a proposal is received by Sourcewell is solely  determined by the Sourcewell Procurement Portal web clock.    In the event of problems with the Sourcewell Procurement Portal, follow the instructions for  technical support posted in the portal. It may take up to 24 hours to respond to certain issues.      Upon successful submission of a proposal, the Sourcewell Procurement Portal will automatically  generate a confirmation email to the proposer. If the proposer does not receive a confirmation  email, contact Sourcewell’s support provider at support@bidsandtenders.ca.    To ensure receipt of the latest information and updates via email regarding this solicitation, or  if the proposer has obtained this solicitation document from a third party, the onus is on the  proposer to create a Sourcewell Procurement Portal Vendor Account and register for this  solicitation opportunity.    Within the Sourcewell Procurement Portal, all proposals must be digitally acknowledged by an  authorized representative of the proposer attesting that the information contained in the  proposal is true and accurate. By submitting a proposal, proposer warrants that the information  provided is true, correct, and reliable for purposes of evaluation for potential master  agreement award. The submission of inaccurate, misleading, or false information is grounds for  disqualification from a master agreement award and may subject the proposer to remedies  available by law.    E. GENERAL PROPOSAL REQUIREMENTS    Proposals must be:  1. In substantial compliance with the requirements of this RFP or it will be considered  nonresponsive and be rejected.  2. Complete. A proposal will be rejected if it is conditional or incomplete.   3. Submitted in English.   4. Valid and irrevocable for 90 days following the Proposal Due Date.    Any and all costs incurred in responding to this RFP will be borne by the proposer.     F. PROPOSAL WITHDRAWAL    Prior to the proposal deadline, a proposer may withdraw its proposal.     G. OPENING     The Opening of proposals will be conducted in the Sourcewell Procurement Portal immediately  following the proposal due date and time. To view the list of proposers resulting from the  Page 75 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 11 opening, verify that the Sourcewell Procurement Portal opportunities list search is set to “All”  or “Closed.”      Members of the public may attend the Opening at Sourcewell’s office located at 202 12th  Street NE, Staples, MN to hear the results.    VI. EVALUATION AND AWARD    A. EVALUATION    It is the intent of Sourcewell to award one or more master agreements to responsive and  responsible proposers offering the best overall quality, selection of equipment, products, and  services, and price that meet the commonly requested specifications of Sourcewell and its  Participating Entities. The award(s) will be limited to the number of proposers that Sourcewell  determines is necessary to meet the needs of its Participating Entities.    Factors to be considered in determining the number of master agreements to be awarded in  any category may include the following:  1. Total evaluation scores (giving consideration to natural breaks in the scoring of responsive  proposals);  2. The number and geographic location of highest‐scoring proposers that offer:  a. A comprehensive selection of the requested equipment, products, or services;  b. A sales and service network ensuring availability and coverage for Participating  Entities’ use; and  c. Other attributes of the proposer or contents of its proposal that assist Participating  Entities in achieving environmental and social requirements, and goals.    Information submitted as part of a proposal should be as specific as possible when responding  to the RFP. Do not assume Sourcewell has any knowledge about a specific supplier or product.    B. AWARD(S)    Award(s) will be made to the highest‐scoring proposer(s) whose proposal conforms to all  conditions and requirements of the RFP, and consistent with the award criteria defined in this  RFP.    Sourcewell may request written clarification of a proposal at any time during the evaluation  process.    Proposal evaluation will be based on the following scoring criteria and the Sourcewell Evaluator  Scoring Guide (a copy is available in the Sourcewell Procurement Portal):        Page 76 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 12 Conformance to RFP Requirements Pass/Fail  Financial Viability and Marketplace Success 50  Ability to Sell and Deliver Solutions  150  Marketing Plan 100  Value Added Attributes 100  Depth and Breadth of Offered Solutions 200  Pricing 400  TOTAL POINTS 1000  C. PROTESTS OF AWARDS    Any protest made under this RFP by a proposer must be in writing, addressed to Sourcewell’s  Executive Director, and delivered to the Sourcewell office located at 202 12th Street NE, P.O.  Box 219, Staples, MN 56479. All documents that comprise the complete protest package must  be received, and time stamped at the Sourcewell office by 4:30 p.m., Central Time, no later  than 10 calendar days following Sourcewell’s notice of master agreement award(s) or non‐ award. A protest must allege a procedural, technical, or legal defect, with supporting  documentation. A protest that merely requests a re‐evaluation of a proposal’s content will not  be entertained.     A protest must include the following items:   The name, address, and telephone number of the protester;   Identification of the solicitation by RFP number;   A precise statement of the relevant facts;   Identification of the alleged procedural, technical, or legal defect;    Analysis of the basis for the protest;    Any additional supporting documentation;    The original signature of the protester or its representative; and   Protest bond in the amount of $20,000 (except where prohibited by law or treaty).     Protests that do not address these elements will not be reviewed.    D. RIGHTS RESERVED    This RFP does not commit Sourcewell to award any master agreement, and a proposal may be  rejected if it is nonresponsive, conditional, incomplete, conflicting, or misleading. Proposals  that contain false statements or do not support an attribute or condition stated by the  proposer may be rejected.    Sourcewell reserves the right to:   Modify or cancel this RFP at any time;   Reject any and all proposals received;   Reject proposals that do not comply with the provisions of this RFP;  Page 77 of 255 Rev. 6/2024                 Sourcewell RFP #112624   Grounds Maintenance Equipment and Related Attachments    Page 13  Select, for master agreements or for discussion, a proposal other than that with the  lowest cost;   Independently verify any information provided in a proposal;   Disqualify any proposer that does not meet the requirements of this RFP, is debarred or  suspended by the United States or Canada, State of Minnesota, Participating Entity’s  state or province; has an officer, or other key personnel, who have been charged with a  serious crime; or is bankrupt, insolvent, or where bankruptcy or insolvency are a  reasonable prospect;   Waive or modify any informalities, irregularities, or inconsistencies in the proposals  received;   Clarify any part of a proposal and discuss any aspect of the proposal with any proposer;  and negotiate with more than one proposer;   Award a master agreement if only one responsive proposal is received if it is in the best  interest of Participating Entities; and   Award a master agreement to one or more proposers if it is in the best interest of  Participating Entities.     E. DISPOSITION OF PROPOSALS    All materials submitted in response to this RFP will become property of Sourcewell and will  become public record in accordance with Minnesota Statutes Section 13.591, after negotiations  are complete. Sourcewell considers that negotiations are complete upon execution of a  resulting master agreement. It is the proposer’s responsibility to clearly identify any data  submitted that it considers to be protected. Proposer must also include a justification for the  classification citing the applicable Minnesota law. Sourcewell may reject proposals that are  marked confidential or nonpublic, either substantially or in their entirety.    Sourcewell will not consider the prices submitted by the proposer to be confidential,  proprietary, or trade secret materials. Financial information, including financial statements,  provided by a proposer is not considered trade secret under the statutory definition.      Page 78 of 255 10/9/2024 Addendum No. 1 Solicitation Number: RFP 112624 Solicitation Name: Grounds Maintenance Equipment and Related Attachments Consider the following Question(s) and Answer(s) to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: Does this RFP categories include tractors that can be used for landscaping, mowing, moving materials and grounds maintenance? If so, is there a HP range that is to is included? Answer 1: Refer to RFP Section II. B. – Requested Equipment, Products, or Services, for guidance on what we are seeking and what is excluded in this RFP. Question 2: Where should this equipment be delivered? Answer 2: Sourcewell utilizes a competitive, solutions-based solicitation approach that is not based on detailed specifications, finite quantities, or pre-determined locations. Refer to RFP Section I. A. Sourcewell for more information. Sourcewell participating entities include fifty-thousand public agencies located in the United States and Canada. There is no estimate of participating entity use by service type or category. Page 79 of 255 End of Addendum Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell Procurement Portal on 10/9/2024, is required at the time of proposal submittal. Page 80 of 255 10/16/2024 Addendum No. 2 Solicitation Number: RFP 112624 Solicitation Name: Grounds Maintenance Equipment and Related Attachments Consider the following Question(s) and Answer(s) to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: Is the bidder expected to submit a proposal for a wide variety of equipment of [sic] can the bidder submit a proposal for one type of equipment? Answer 1: Please reference Sourcewell’s Frequently Asked Questions document at https://cdn.sourcewell.org/public/procurement/procurement-portal-faq.pdf. Question 2: Do we have to answer the company information questions for each individual RFP or will our answers be saved for future RFPs? Answer 2: In the response submission process, proposers may save their progress and come back to it before the response submission deadline. For future proposals, you will not have to re-register, but the system will not retain or auto-fill company information in future responses. End of Addendum Page 81 of 255 Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell Procurement Portal on 10/16/2024, is required at the time of proposal submittal. Page 82 of 255             10/28/2024  Addendum No. 3  Solicitation Number: RFP 112624  Solicitation Name: Grounds Maintenance Equipment and Related Attachments     Consider the following Question(s) and Answer(s) to be part of the above‐titled  solicitation documents. The remainder of the documents remain unchanged.    Question 1:  Could Sourcewell please clarify the distinction between snow removal equipment  categorized under Grounds Maintenance Equipment and Related Attachments and  the excluded category of Snow and Ice Handling Equipment, Supplies, and  Accessories (RFP #062222)? Specifically, what criteria will Sourcewell use to  determine whether a snow removal product is considered part of this current  solicitation or should be classified under the previously awarded RFP #062222?    Section II.B.3.a of the RFP lists Snow and Ice Handling Equipment, Supplies, and  Accessories as an excluded category. Could Sourcewell confirm if this exclusion  applies only to large‐scale municipal snow handling equipment, or does it also  encompass smaller snow removal trucks and equipment traditionally used for  clearing parking lots, college campuses, or other similar areas?    Given that the current RFP includes Lawn and garden equipment for snow  removal, could you provide specific examples of snow removal equipment or  attachments that are eligible for this RFP? How should proposers categorize  equipment such as plows, or salt spreaders used for clearing parking lots,  Page 83 of 255 college campuses, or other similar areas when there appears to be overlap with  equipment covered under RFP #062222?  Answer 1:  RFP 062222 for Snow and Ice Handling Equipment, Supplies, and Accessories has a  scope of:     Sourcewell is seeking proposals for Snow and Ice Handling Equipment, Supplies  and Accessories, to include equipment and related supplies or accessories  designed or principally intended for moving, removing, and controlling snow and  ice, such as:     a. Plows, blades, wings, blowers, and brooms;   b. Spreader or sprayer systems for the application of de‐icing or anti‐icing  solids or liquids and snow melters;   c. Dump bodies, specialty equipment, and air or hydraulic systems, related  to upfitting or modification primarily for snow and ice handling; and,   d. Proposers may include a complementary offering of parts, supplies, and  accessories, related to the upkeep, repair, or maintenance of their  offering of equipment as described in subsections 1. a. – 1. c. above.     RFP 112624 includes any snow related items to Grounds Maintenance Equipment and  Related Attachments that are not listed in the scope from 062222.      End of Addendum  Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell  Procurement Portal on 10/28/2024, is required at the time of proposal submittal.    Page 84 of 255 11/4/2024 Addendum No. 4 Solicitation Number: RFP 112624 Solicitation Name: Grounds Maintenance Equipment and Related Attachments Consider the following Question(s) and Answer(s) to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: Is there an example or definition of attachment as used in II. Solicitation Details, B.3. Grounds maintenance equipment that is separately manufactured and designed to be attached to a skid-steer or tractor are commonly called attachments. Is that what this RFP is seeking to disallow, or does attachment as used here refer to accessories, add- ons or special items that may or may not come with the primary equipment? Answer 1: Section II. Solicitation Details, B.3 states: “The primary focus of this solicitation is on Grounds Maintenance Equipment and Related Attachments. However, this solicitation should NOT be construed to include ‘attachment only,’ ‘service only,’ or ‘installation only’ solutions.” End of Addendum Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell Procurement Portal on 11/4/2024, is required at the time of proposal submittal. Page 85 of 255             11/8/2024  Addendum No. 5  Solicitation Number: RFP 112624  Solicitation Name: Grounds Maintenance Equipment and Related Attachments     Consider the following Question(s) and Answer(s) to be part of the above‐titled  solicitation documents. The remainder of the documents remain unchanged.    Question 1:  I am completing this proposal and wanting to see who I should contact about getting an  NDA signed so we are able to submit financial data since we are a privately owned  company?  Answer 1:  Section VI. Evaluation and Award, E. states: “All materials submitted in response to this  RFP will become property of Sourcewell and will become public record in accordance  with Minnesota Statutes Section 13.591, after negotiations are complete. Sourcewell  considers that negotiations are complete upon execution of a resulting master  agreement. It is the proposer’s responsibility to clearly identify any data submitted that  it considers to be protected. Proposer must also include a justification for the  classification citing the applicable Minnesota law. Sourcewell may reject proposals that  are marked confidential or nonpublic, either substantially or in their entirety.    Sourcewell will not consider the prices submitted by the proposer to be confidential,  proprietary, or trade secret materials. Financial information, including financial  statements, provided by a proposer is not considered trade secret under the statutory  definition.”      Page 86 of 255     End of Addendum  Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell  Procurement Portal on 11/8/2024, is required at the time of proposal submittal.    Page 87 of 255 11/12/2024 Addendum No. 6 Solicitation Number: RFP 112624 Solicitation Name: Grounds Maintenance Equipment and Related Attachments Consider the following Question(s) and Answer(s) to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: Is there an approximate volume of annual sales for this contract for OPE handheld equipment? Answer 1: Reference the Request for Proposals Document, Section II.E “Estimated Master Agreement Value and Usage” for RFP # 112624 for Grounds Maintenance Equipment and Related Attachments. Sourcewell does not have usage broken down to Outdoor Power Equipment – Handheld Equipment. End of Addendum Acknowledgement of this Addendum to RFP 112624 posted to the Sourcewell Procurement Portal on 11/12/2024, is required at the time of proposal submittal. Page 88 of 255 City of Gilroy STAFF REPORT Agenda Item Title:Annual Military Equipment Use Report 2024, per CA Assembly Bill No. 481 Meeting Date:May 19, 2025 From: Jimmy Forbis, City Administrator Department:Police Submitted by:Luke Powell, Police Captain Prepared by:Luke Powell, Police Captain STRATEGIC PLAN GOALS:Not Applicable RECOMMENDATION Receive report. EXECUTIVE SUMMARY The Military Equipment Use Policy is subject to annual City Council review to determine whether the standards set forth in Assembly Bill 481 have been met, based upon an Annual Military Equipment Use Report. BACKGROUND On September 30, 2021, California Governor Gavin Newsom approved Assembly Bill 481, requiring law enforcement agencies to obtain approval from the applicable governing body (Mayor and City Council) to adopt a military equipment use policy. The Gilroy Police Department presented its Military Use Policy at City Council meetings on April 4, 2022, and May 2nd, 2022, with final approval coming at the May 16, 2022, meeting. Assembly Bill 481 allows the governing body to approve the funding, acquisition, and use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The Military Equipment Use Policy is subject to City Council review to determine whether the standards set forth in Assembly Bill 481 Page 89 of 255 have been met based on an Annual Military Equipment Use Report. Gilroy Police Department’s Annual Military Equipment Use Report is due annually in May. Finally, Assembly Bill 481 requires the Department to publish the Military Equipment Use Policy and the Annual Military Equipment Use Report on its website. Assembly Bill 481 California Government Code section 7072 states the following: (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment: (1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well- publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment. In addition to maintaining the highest levels of public safety, the Gilroy Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the Department has authored the following Annual Military Equipment Use Report in accordance with annual reporting requirements outlined in California Government Code section 7072. ANALYSIS The Gilroy Police Department is committed to using best practices and contemporary law enforcement equipment to enhance our ability to provide our community the highest level of public safety. To accomplish our mission effectively and safely, the Gilroy Police Page 90 of 255 Department possesses and utilizes certain specialized equipment (Military equipment) to safeguard the citizens of Gilroy and protect our first responders. While our inventory of military equipment varies, the mere possession of this equipment does not warrant its use. The merits and the totality of the circumstances of each unique incident are considered before military equipment is utilized in compliance with department policy and law. The term "military equipment," as used in Assembly Bill 481, does not necessarily indicate the equipment is or has been used by the military. Many items defined as "military equipment" by the bill are often used by law enforcement to preserve life and enhance public and officer safety while remaining prepared to handle the various lethal and non-lethal challenges facing our communities. The Gilroy Police Department's use of military equipment is consistent with overall best practices employed by police departments nationwide. Apparatus used by the Gilroy Police Department that are considered military equipment under Assembly Bill 481 include but are not limited to, emergency response equipment such as command vehicles and armored rescue vehicles, less-lethal shotguns, less- lethal 40mm projectile launchers, precision weapons such as rifles, unmanned aircraft systems, and other select items. The continued access to and use of this equipment is vital in ensuring our officers have the appropriate tools to de-escalate situations, preserve life, ensure safety for all people, and protect civil liberties. The Gilroy Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution, in a safe manner. The use of military equipment is restricted to certain instances and, in some cases, only by certain units. The use of the Department’s military equipment is continuously evaluated, and the use of such equipment by department personnel is influenced by the totality of the circumstances, public safety, officer safety, civil rights, State law, and information available at the time of use. It is incumbent upon incident commanders, supervisors, individual officers, and specific units to recognize the circumstances wherein military equipment should be employed to enhance public and officers' safety and bring a critical incident to a safe resolution. This Annual Military Equipment Use Report 2024 summarizes military equipment usage guidelines, inventory, fiscal impact, complaints, and reported concerns from January 1, 2024, through December 31, 2024. ALTERNATIVES There are no reasonable alternatives to the items listed in the Annual Military Equipment Use Report 2024. GPD has not discovered alternative products that can achieve the same objectives of civilian and officer safety. Each item’s necessity is further described in the attached annual report. Page 91 of 255 FISCAL IMPACT/FUNDING SOURCE There are no new financial considerations for existing military equipment and munitions during this reporting period, January 1, 2024, through December 31, 2024. All equipment listed in the attached annual report is owned and used by GPD. On page 22 of the annual use report, two (2) projected acquisitions of non-consumable military equipment are for the reporting period January 1, 2025, through December 31, 2025. Attachments: 1. Gilroy Police Department Annual Military Use Report 2024 Page 92 of 255 1 Annual Military Equipment Use Report 2024 Gilroy Police Department Annual Military Equipment Use Report January 1, 2024 – December 31, 2024 Chief Pedro Espinoza 7301 Hanna Street, Gilroy CA 95020 www.cityofgilroy.org Page 93 of 255 2 Annual Military Equipment Use Report 2024 Contents Executive Summary………………………………………………………………………………………………4 Introduction………………………………………………………………………………………………………...6 Definitions………………………………………………………………………………………………………….7 Summary of Military Equipment Usages……………………………………………………………..............10 Inventory by Equipment Type………………………………………………………………………………….16 Fiscal Impact……………………………………………………………………………………………………..19 Department Transparency……………………………………………………………………………….……..23 Community Complaints/Concerns/Comments…...………………………………………………….23 Response to Procedure Violations…………….…………………………….………….…………….23 Internal Audits…………………………………….………………….……………………………….…24 Summary of Military Equipment…………………………………….………………………………………….25 Unmanned Aircraft Systems (UAS)……………….………….…..…………………………………...26 Brinc Lemur 2……………………………………………………………………………………27 DJI Avata 2………………………………………………………………………………………27 DJI Matrice 30T…………………………………….…………………………………………...28 DJI Mavic 2 Enterprise.…….……….………….………………………………………………28 DJI Mavic Mini 2.…..…………….……………….……………………………………………..29 Robots………………………………….………………………………………………………………...30 Robotex Avatar Tactical Robot..………………………………………………………………31 Transcend Vantage Patrol Robot…..………………………………………………………...31 Recon Robotics Throwbot 2…………………………………………………………………..32 Armored Vehicles…...………………………………….……………………………………………….33 Bearcat G2…..………………………………………………………………………………….34 Mobile Command Vehicle (MCV)……………..………….…………………………………………...35 Hostage Negotiation Team (HNT) Van………………….……………………………………..……..37 40mm Launchers and Munitions………………………….………..………………………………….39 Defense Technology 40mm Single Shot Launcher #1425………………………..……….40 Defense Technology 40mm Tactical 4-Shot Launcher, #1440……..……………………..40 Defense Technology 40mm Exact Impact Sponge Round #6325…..…………………….42 Page 94 of 255 3 Annual Military Equipment Use Report 2024 Less Lethal Shotgun and Munitions…………..……………………………………………………….43 Mossberg Model 590, 12-gauge Shotgun…….……………………………………………..44 Combined Tactical Systems Super-Sock Bean Bag………………………………………..45 Combined Tactical Systems LC5 Launching Cup…………………………………………………...46 Diversionary Devices……………………………………………………………………………………48 Combined Tactical Systems, 7290 Flash-Bang……………………………………………..49 Combined Tactical Systems, 7290M Mini Flash-Bang……………………………………..49 Rifles and Munitions…………………………………………………………………………………….51 Colt M4 Commando……………………………………………………………………………52 Colt M4 Carbine………………………………………………………………………………...52 Remington 700………………………………………………………………………………….53 Colt M16A1……………………………………………………………………………………...53 Springfield M14…………………………………………………………………………………54 Chemical Agent and Smoke Canisters……………………………………………………………….55 Defense Technology, Maximum HC Smoke Large Cannister, #1073……………………56 Combined Tactical Systems, White Smoke Tactical Canister Grenade, #8210…………56 Combined Tactical Systems, Riot CS Smoke Grenade, #8230…………………………...57 Combined Tactical Systems, Riot CS Smoke Grenade, #6230……………………………58 Combined Tactical Systems, Baffled Riot CS Smoke Grenade, #5230B…………………58 Penn Arms, 37mm Single Shot Launcher, #SL1-37………………………………………..59 Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5OC…………………59 Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5CS………………...60 Sage Control Ordinance, 37mm Impact/Chemical, #KO3OC……………………………..60 PepperBall Launchers and Projectiles………………………………………………………………...62 PepperBall FTC Launcher……………………………………………………………………..63 PepperBall Live Projectile……………………………………………………………………...63 PepperBall Inert Projectile……………………………………………………………………..64 Conclusion………………………………………………………………………………………………………..65 Page 95 of 255 4 Annual Military Equipment Use Report 2024 Executive Summary On September 30, 2021, California Governor Gavin Newsom approved Assembly Bill 481, requiring law enforcement agencies to obtain approval from the applicable governing body (Mayor and City Council) by adopting a military equipment use policy. The Gilroy Police Department must seek City Council approval of its Military Equipment Use Policy at a regular open meeting before taking specific actions relating to the funding, acquisition, and use of military equipment. Assembly Bill 481 allows the governing body to approve the funding, acquisition, and use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The Military Equipment Use Policy is subject to City Council review to determine whether the standards outlined in Assembly Bill 481 have been met, based upon an Annual Military Equipment Use Report. Finally, Assembly Bill 481 requires the Department to publish the Military Equipment Use Policy and the Annual Military Equipment Use Report on its website. Assembly Bill 481 California Government Code section 7072 states the following: (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment: (1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. Page 96 of 255 5 Annual Military Equipment Use Report 2024 (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well- publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment. In addition to maintaining the highest levels of public safety, the Gilroy Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the Department has authored the following Annual Military Equipment Use Report in accordance with annual reporting requirements outlined in California Government Code section 7072. Page 97 of 255 6 Annual Military Equipment Use Report 2024 Introduction The Gilroy Police Department is committed to using best practices and contemporary law enforcement equipment to enhance our ability to provide our community with the highest level of public safety. To accomplish our mission effectively and safely, the Gilroy Police Department possesses and utilizes specific specialized equipment (Military equipment) to safeguard the citizens of Gilroy and protect our first responders. While our inventory of military equipment varies, the mere possession of this equipment does not warrant its use. The merits and the totality of the circumstances of each unique incident are considered before military equipment is utilized in compliance with department policy and law. The term "military equipment," as used in Assembly Bill 481, does not necessarily indicate the equipment is or has been used by the military. Many items defined as "military equipment" by the bill are often used by law enforcement to preserve life and enhance public and officer safety while remaining prepared to handle the various lethal and non-lethal challenges facing our communities. The Gilroy Police Department's use of military equipment is consistent with overall best practices police departments employ nationwide. Apparatus used by the Gilroy Police Department that are considered military equipment under Assembly Bill 481 include, but are not limited to, emergency response equipment such as command vehicles and armored rescue vehicles, less-lethal shotguns, less-lethal 40mm projectile launchers, precision weapons such as rifles, unmanned aircraft systems, and other select items. The continued access to and use of this equipment is vital in ensuring our officers have the appropriate tools to de-escalate situations, preserve life, ensure safety for all people, and protect civil liberties. The Gilroy Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. Various equipment options can greatly assist incident commanders, officers, and specific units in safely bringing those incidents to a swift resolution. The use of military equipment is restricted to certain instances and, in some cases, only by specific units. The use of the Department’s military equipment is continuously evaluated, and the use of such equipment by department personnel is influenced by the totality of the circumstances, public safety, officer safety, civil rights, State law, and information available at the time of use. It is incumbent upon incident commanders, supervisors, individual officers, and specific units to recognize the particular circumstances in which military equipment should be employed to enhance the safety of the public and officers and to bring a critical incident to a safe resolution. This Annual Military Equipment Use Report outlines a summary of military equipment usage guidelines, inventory, fiscal impact, complaints, and reported concerns from January 1, 2024, through December 31, 2024. Page 98 of 255 7 Annual Military Equipment Use Report 2024 Definitions Pursuant to California Assembly Bill 481, the following definitions are applicable only to the Gilroy Police Department’s current military equipment inventory and potential military equipment acquisitions for operational needs. For a more detailed list of “military equipment” definitions, refer to California Government Code sections 7070(c)(1) through (16). “Governing body” means the Gilroy City Council and Mayor. “Military equipment” means any wide variety of items as defined by California Government Code section 7070, subsections (c)(1) through (c)(16) to include: 1.Unmanned Aircraft System (UAS): An unmanned aircraft along with the associated equipment to control it remotely. 2.Robots: A remotely controlled unmanned machine that operates on the ground, which is utilized to enhance the safety of the community and officers. 3.Armored Vehicles: Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes. 4.NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK): The ROOK is a custom “armored critical incident vehicle” built on the chassis of a CAT Bulldozer, manufactured by Ring Power. 5.Mobile Command Vehicle (MCV): A vehicle used as a mobile office that provides shelter, access to Department computer systems, and restroom facilities during extended events. 6.Hostage Negotiation Team (HNT) Van: A vehicle used as a mobile office that provides shelter, access to Department computer systems, and restroom facilities on extended events. 7.Long Range Acoustic Device (LRAD): A high intensity directional acoustic array for long- range, crystal-clear hailing and notification. The LRAD is only authorized for use as a communication device. 8.40mm Launchers and Munitions: 40mm Launchers are utilized by department personnel as a less lethal tool to launch impact rounds. 9.Less Lethal Shotguns and Munitions: A shotgun used to deploy the less lethal shotgun munitions. 10.Combined Systems LC5 Launching Cup: A cup that attaches to a less lethal shotgun allowing officers to launch canisters of chemical agent or smoke canisters. Page 99 of 255 8 Annual Military Equipment Use Report 2024 11.Diversionary Devices: A device used to distract dangerous persons. 12.Rifles: Guns that are fired from shoulder level, having a longer, grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance. 13.Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed. 14.Explosive Breaching Tools: Equipment used to provide an explosive charge to safely gain entry into structures during high-risk operations. 15.PepperBall Launchers and Projectiles: A device that discharges PAVA powder projectiles. 16.“Military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. “Military Equipment Use Policy” refers to Gilroy Police Department Policy Manual Section 708 and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all of the following: 1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. 2. The purposes and authorized uses for which the Department proposes to use each type of military equipment. 3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. 4. The legal and procedural rules that govern each authorized use. 5. The training, including any course required by the Commission on Peace Officer Standards and Training (POST), that must be completed before any sworn member is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the Military Equipment Use Policy. 6. The mechanisms to ensure compliance with the Military Equipment Use Policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. Page 100 of 255 9 Annual Military Equipment Use Report 2024 7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner. Page 101 of 255 10 Annual Military Equipment Use Report 2024 Summary of Military Equipment Usages The City of Gilroy provides law enforcement services twenty-four hours a day, seven days a week, serving a city population of over 58,000. The Department is committed to de- escalating situations, and using force is reserved for instances where less intrusive options are not feasible. In 2024, the Gilroy Police Department responded to approximately 65,993 calls for service. Officers used force on only fifty-four (54) occasions of those calls for service, representing 0.0008% of the total calls for service. Of the force options utilized, military equipment in the form of projectiles and/or chemical irritants was only used during four (4) or less than 0.00003% of all contacts. These statistics illustrate the relatively few instances of force used by Gilroy police officers in relation to overall contacts. Moreover, the force used involving military equipment is an even smaller subset of the overall force used during this time. While the Gilroy Police Department’s inventory of military equipment is varied, the mere possession of the equipment does not warrant its use for every incident. The Gilroy Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. Various military equipment options can greatly assist incident commanders, officers, and specific units in swiftly and safely resolving those incidents. The use of military equipment is restricted to certain instances and, in some cases, only by specific units. This section outlines the military equipment usage from January 1, 2024, to December 31, 2024. Certain items of military equipment, particularly consumables (ammunition, diversionary devices, pepper balls, chemical agents, etc.), are regularly used throughout the year for training to maintain proficiency. Training usage is not captured in this section. This section only provides data for the operational use of military equipment listed within this Annual Military Equipment Use Report. Outreach and Community Engagement The Gilroy Police Department is committed to improving the trust and confidence between the Department and the community it serves. As the Department strives to enhance community relationships and continues to be a progressive leader among law enforcement agencies nationwide, we want to ensure the public can access how its Police Department operates and engages with the public. The Gilroy Police Department regularly utilizes select military equipment, including Unmanned Aircraft Systems, Armored Rescue Vehicles, the Mobile Command Vehicle, and Crisis Negotiation Team Vehicles, during outreach and community events for public awareness, transparency, and education. Military equipment may also be displayed during community events to provide a safe environment for the public to enjoy the great amenities the City of Gilroy offers. Page 102 of 255 11 Annual Military Equipment Use Report 2024 The following is the data for Military Equipment Use by category from January 1, 2024, through December 31, 2024: Unmanned Aircraft Systems (UAS) Unmanned Aircraft Systems were utilized for a total of one hundred sixteen (116) hours. Authorized usages: •Collection of evidence in the form of aerial photography/video in support of an investigation (i.e., shooting scenes, homicide scenes). •Support of SWAT and Patrol during high-risk, tactical, or other public safety life- preserving missions (i.e., interior visual assessments of structures or outdoor areas to gain intelligence prior to officers entering a dwelling or contacting a potentially armed or resistive subject that may be hiding). •Delivery of items (i.e., HNT phone) during critical incidents to engage in de- escalation and/or crisis intervention techniques to resolve incidents peacefully. •Conduct aerial searches for missing persons. •Provide aerial observation to assist in managing natural disasters (i.e., fires, floods, storms). Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Robots Robots were utilized a total of zero (0) time. Authorized usages: •Support of SWAT and Patrol during high-risk, tactical, or other public safety life preservation missions to include: •Opening doors to clear buildings for public safety and life preservation missions. •Provide interior visual assessments of structures or outdoor areas to gain intelligence before officers enter a dwelling or contact a potentially armed or resistive subject that may be hiding). •Delivery of items (i.e., HNT phone) during critical incidents to engage in de- escalation and/or crisis intervention techniques to resolve incidents peacefully. Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Armored Vehicle The BearCat was utilized a total of thirteen (13) times. Authorized usages: Page 103 of 255 12 Annual Military Equipment Use Report 2024 •Support SWAT and Patrol during critical incidents by providing greater safety to community members and officers beyond the protection level of a shield and/or personal body armor. •Community engagement events offer transparency and allow the community to better understand what equipment we have and how it is used. Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Mobile Command Vehicle (MCV) The Mobile Command Vehicle was utilized thirteen (13) times. Authorized usages: •Utilized as a command post for critical incidents during complex events. •Natural disasters (i.e., mutual aid for large-scale fires or flooding). •Other large-scale events to provide high visibility and public safety. Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Hostage Negotiation Team (HNT) Van The Hostage Negotiation Team Van was utilized zero (0) times. Authorized usages: •Utilized as a mobile office for critical incidents during complex events. •Provide shelter and an access point for computer systems for negotiation team members. Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. 40mm Launchers and Munitions The 40mm Launcher was utilized during one (1) call for service. •40mm Impact-related rounds – utilized during one (1) call for service •40mm OC-related rounds – utilized during zero (0) calls for service •40mm related CS-related rounds – utilized during zero (0) calls for service •40mm pyrotechnic-related rounds - utilized during zero (0) calls for service •40mm warning/signaling-related rounds – utilized during zero (0) calls for service Authorized usages: Page 104 of 255 13 Annual Military Equipment Use Report 2024 •Safely address an individual who displays self-destructive, dangerous, or combative behavior. •Safely address an armed, potentially armed, or violent individual. •During riot/crowd control and civil unrest incidents where the use of the 40mm is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48). •Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk. (i.e., breaking out a vehicle window to get an unobstructed view of an armed barricaded individual). •Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer). Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Combined Tactical Systems LC5 Launching Cup The Combined Tactical Systems LC5 Launching Cup was utilized zero (0) times. Authorized usages are covered under Chemical Agents and Smoke Canister. Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Less Lethal Shotguns and Munitions Less Lethal Shotguns were utilized during one (1) call for service. Authorized usages: •Safely address an individual who displays self-destructive, dangerous, or combative behavior. •Safely address an armed, potentially armed, or violent individual. •During riot/crowd control and civil unrest incidents where the use of the beanbag shotgun is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48). •Circumstances where a tactical advantage can be obtained (e.g., making high- risk entries, including disabling surveillance cameras). •Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer) Unauthorized usages: Page 105 of 255 14 Annual Military Equipment Use Report 2024 •There have been zero (0) reported violations of the military equipment use policy. Rifles and Munitions Rifles were utilized zero (0) times. Authorized usages: •In accordance with California Penal Code section 835a and GPD Policy Manual Section 300 (Use of Force) Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Diversionary Devices Diversionary Devices were utilized a total of eight (8) times. Authorized usages: •Support SWAT during call-outs and high-risk warrant services •Distract dangerous suspects during assaults •Hostage rescue incidents •High-risk room entries Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Chemical Agents and Smoke Canisters Chemical Agents and Smoke Canisters were utilized zero (0) times. •CS Canister/Grenade – utilized zero (0) times •OC Canister/Grenade - utilized zero (0) times •Smoke Canister/Grenade - utilized zero (0) times •OC Fogger - utilized zero (0) times •OC Stream - utilized zero (0) times Authorized usages: •Safely address an individual who displays self-destructive, dangerous, or combative behavior. •During riot/crowd control and civil unrest incidents where the use of chemical agents is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48). Page 106 of 255 15 Annual Military Equipment Use Report 2024 •Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk. •Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer). Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. PepperBall Launchers and Projectiles PepperBall Launchers were utilized during zero (0) calls for service. Authorized usage: •Safely address an individual who displays self-destructive, dangerous, or combative behavior. •Safely address an armed, potentially armed, or violent individual. •During riot/crowd control and civil unrest incidents where the use of the 40mm is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48). •Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk (i.e., deploying into a structure/vehicle where a barricaded subject is, resulting in a peaceful surrender). •Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer). Unauthorized usages: •There have been zero (0) reported violations of the military equipment use policy. Page 107 of 255 16 Annual Military Equipment Use Report 2024 Inventory by Equipment Type January 1, 2024, through December 31, 2024 Note: The inventory of certain items of consumable military equipment (i.e., ammunition, diversionary devices, chemical agents, etc.) frequently fluctuates throughout the year due to operational usage, training usage, operational wear, and/or manufacturer-recommended replacement guidelines. While the Gilroy Police Department strives to provide accuracy in its inventory reporting, this report reflects approximations of certain consumable items of military equipment during the time period listed above. Unmanned Aircraft System (UAS) Equipment Name and Model / Manufacturer Quantity Lemur 2 / Brinc 1 Avata 2 / DJI 2 Matrice 30T / DJI 1 Mavic 2 Enterprise / DJI 1 Mavic Mini 2 / DJI 4 Robots Equipment Name and Model / Manufacturer Quantity Avatar Tactical Robot / Robotex 1 Vantage Patrol Robot / Transcend 1 Throwbot 2 / Recon Robotics 1 Armored Vehicles Equipment Name and Model / Manufacturer Quantity Bearcat G2 / Lenco 1 Mobile Command Vehicle (MCV) Equipment Name and Model / Manufacturer Quantity M2, Custom Built / Freightliner 1 Hostage Negotiation Team (HNT) Van Equipment Name and Model / Manufacturer Quantity Communication Van, Custom Built / Kodiak 1 40mm Launchers and Munitions Page 108 of 255 17 Annual Military Equipment Use Report 2024 Equipment Name and Model / Manufacturer Quantity 40mm Launchers 40mm Single Shot Launcher #1425 / Defense Technology 7 40mm Tactical 4-Shot Launcher #1440 / Defense Technology 2 40mm Munitions 40mm Exact Impact Sponge Round #6325 / Defense Technology 50 rounds Less Lethal Shotguns and Munitions Equipment Name and Model / Manufacturer Quantity Less Lethal Shotgun Model 590, 12-Gauge Shotgun / Mossberg 10 Less Lethal Munitions 12-Gauge Super-Sock Beanbag Round / Combined Systems, Inc.150 rounds Combined Systems LC5 Launching Cup Equipment Name and Model / Manufacturer Quantity LC5 Launching Cup / Combined Systems, Inc.2 Diversionary Devices Equipment Name and Model / Manufacturer Quantity 7290 Flash-Bang / Combined Systems, Inc.2 7290M Mini Flash-Bang / Combined Systems, Inc.30 Rifles and Munitions Equipment Name and Model / Manufacturer Quantity Rifles M4 Commando / Colt 11 M4 Carbine / Colt 5 700 / Remington 5 M16A1 / Colt 16 M14 / Springfield 1 Chemical Agents and Smoke Canisters Page 109 of 255 18 Annual Military Equipment Use Report 2024 Equipment Name and Model / Manufacturer Quantity Maximum HC Smoke Large-Style Canister, #1073 / Defense Technology 2 canisters White Smoke Tactical Canister Grenade, #8210 / Combined Tactical Systems 6 canisters Riot CS Smoke Grenade, #8230 / Combined Tactical Systems 30 canisters Riot CS Smoke Grenade, #6230 / Combined Tactical Systems 7 Canisters Baffled Riot CS Smoke Grenade, #5230B / Combined Tactical Systems 30 canister 37mm Single Shot Launcher #SL1-37 / Penn Arms 6 37mm Rifled Barricade Penetrating, #BP50C / Sage Control Ordinance 0 canisters 37mm Rifles Barricade Penetrating, #BP5CS / Sage Control Ordinance 0 canisters 37mm Impact/Chemical, #K03OC / Sage Control Ordinance 0 canisters PepperBall Launchers and Projectiles Equipment Name and Model / Manufacturer Quantity FTC Launcher / PepperBall 6 Live Projectile / PepperBall 1000 projectiles Inert Projectile / PepperBall 1000 projectiles Page 110 of 255 19 Annual Military Equipment Use Report 2024 Fiscal Impact January 1, 2024 – December 31, 2024 Currently, the Gilroy Police Department maintains a workforce comprised of over 69 full- time equivalent (FTE) sworn peace officer positions and 39 FTE professional staff positions. The department’s adopted budget for FY 2024 was approximately $32,331,188, 77% of which is allocated for personnel expenses. The portion of the budget allocated for military equipment expenditures represents only a tiny fraction of the Department’s operating costs. However, the funds spent on military equipment are integral to providing the necessary resources and materials to keep the community and officers safe. The significance and enhanced capability of the current military equipment inventory is immense and cannot be understated from a public safety perspective. The following table summarizes equipment-related expenditures for the calendar year 2024 and the projection of expenses for the calendar year 2025. Equipment expenditures include the acquisition of new equipment, the replacement of damaged equipment, and the ongoing maintenance of the controlled equipment. Military Equipment Expenditures by Category and Year Category 2024 Annual Cost/Maintenance (approximate) 2025 Projected Annual Cost/Maintenance (approximate) Unmanned Aircraft System (UAS) Maintenance $12,800 $10,000 Robot Maintenance $0 $1,000 Armored Vehicle Maintenance $0 $360,500 Mobile Command Vehicle (MCV)$0 $12,500 Hostage Negotiation Team (CNT) Van $0 $125,000 40mm Launchers and Munitions $2,800 $250 Less Lethal Shotgun and Munitions Maintenance $0 $250 Combined Systems LC5 Launching Cup $0 $0 Diversionary Devices $0 $250 Rifles and Munitions Maintenance $5,800 $1,250 Chemical Agent and Smoke Canisters $450 $450 Page 111 of 255 20 Annual Military Equipment Use Report 2024 PepperBall Launchers and Projectiles Maintenance $150 $150 TOTAL $22,000 $511,600 Page 112 of 255 21 Annual Military Equipment Use Report 2024 JANUARY 1, 2024- DECEMBER 31, 2024 CONSUMABLE MILITARY EQUIPMENT ACQUISITIONS Projected consumable military equipment acquisitions are anticipated to be consistent with current replenishment schedules and quantities for consumables. A variety of commercial factors (i.e., supply and demand, inflation, supply chain issues, etc.) may influence the fiscal impact of future military equipment acquisitions, and ongoing military equipment consumables can vary according to inventory levels that fluctuate as a result of training, operational usage, or manufacturer recommended replacement guidelines. Categories of consumable military equipment are listed below: •Chemical Agent and Smoke Canisters •Specialty Munitions (40mm Munitions and Less Lethal Munitions) •Diversionary Devices •PepperBall Projectiles Funding for most of the consumable military equipment is anticipated to be sourced from the existing police budget. NON-CONSUMABLE MILITARY EQUIPMENT ACQUISITIONS Projected non-consumable military acquisitions are anticipated to be limited at this time. Any unanticipated replacements of existing non-consumable military equipment will be initiated on a case-by-case basis dependent on operational need, operational wear, or end of serviceable lifespan and will be consistent with the Council-approved policy for acquisitions of military equipment. Categories of non-consumable military equipment are listed below: •Unmanned Aircraft System (UAS) •Robots •Armored Vehicle •Mobile Command Vehicle (MCV) •Hostage Negotiation Team (HNT) Van •40mm Launchers •37mm Launchers •Less Lethal Shotguns •Combined Systems LC5 Launching Cup •Rifles •PepperBall Launchers Page 113 of 255 22 Annual Military Equipment Use Report 2024 Projected Acquisitions The Department has the following projected acquisitions of non-consumable military equipment: 1. The acquisition of a single Lenco BearCat, NIJ Level IV, Armored Rescue Vehicle has been initiated. This Armored Vehicle's procurement is funded from two distinct sources: the Police Department’s Asset Forfeiture Account and Salary Savings from Fiscal Year 2022/23. It is expected to be delivered by June 2025. 2. The Hostage Negotiation Team (HNT) plans to request the acquisition of a Dodge ProMaster Van, or a similar vehicle, to replace the current HNT Van, which was acquired in 1991 and has reached the end of its serviceable lifespan (20 years). The remainder of non-consumable military equipment will consist of ongoing maintenance costs. Funding for the majority of non-consumable military equipment is anticipated to be sourced from the existing police budget. Page 114 of 255 23 Annual Military Equipment Use Report 2024 Department Transparency Community Complaints/Concerns/Comments In some instances, the application and use of military equipment may raise questions and/or concerns among community members. It is vitally important that the Department address these questions. The Gilroy Police Department is committed to full and fair investigations of community member complaints. As such, the Department has sound internal procedures for thorough and impartial investigations. Resolving complaints in a fair, impartial, and expeditious manner will ensure the department's consistently high level of integrity and efficiency. The following is a summary of formal investigations, including officer-involved shootings and the use of military equipment, as investigated by the Gilroy Police Department’s Internal Affairs Division from January 1, 2024, through December 31, 2024. Complaints or Concerns: There were zero (0) complaints or concerns related to the use of military equipment. Officer-Involved Shootings (OIS): There were zero (0) OIS incidents that occurred involving the use of military equipment. Response to Procedure Violations California Assembly Bill 481, enacted California Government Code section 7072(a)(3), requires local law enforcement agencies to provide information regarding military equipment use procedure violations and responses to those violations. In accordance with the new law, the Gilroy Police Department has actively tracked this information. There were zero (0) reported violations of the military equipment use policy. Page 115 of 255 24 Annual Military Equipment Use Report 2024 Internal Audits California Assembly Bill 481 requires local law enforcement agencies to include the results of any internal audits or inspections conducted and any responsive actions in its annual military equipment use report. When an audit is conducted, inspectors shall refer to the department’s military equipment use policy for established guidelines regarding funding, acquisition, or use of military equipment. The Gilroy Police Department’s operations commander has been assigned the duty of auditing its military equipment use. The Commander has developed a tracking and auditing process to ensure compliance, consistency, accountability, and transparency, as outlined in GPD Policy Manual Section 708 (Military Equipment Use). Internal Audit Results The Operations Commander conducted an annual audit on department-approved military equipment use from March 1, 2024, through March 31, 2024. The details and results of each audit are listed below: AUDIT—The Special Operations Commander completed an audit of department military equipment. The audit scope included inspecting equipment type and quantity, verifying serial numbers, and noting discrepancies compared to the approved GPD Military Equipment Use policy. The audit methodology included onsite inspections and statistical sampling, supported by generally accepted government auditing standards. FINDINGS—During the Military Equipment Use Audit, the Special Operations Commander did not find any complaints related to the department’s military equipment use policy. All military equipment was collected, inventoried, and identified, giving the department a 100% compliance rate. Page 116 of 255 25 Annual Military Equipment Use Report 2024 Summary of Military Equipment The inventory of military equipment, particularly consumable material (diversionary devices, various munitions, chemical agent and smoke canisters, etc.) fluctuates regularly. Fluctuation is based on a variety of factors, including but not limited to operational usage, operational deterioration, training, maintenance, and expiration and replenishment guidelines. The Gilroy Police Department is committed to transparency in disclosing its military equipment inventory and related information to our community and elected officials in compliance with the law. The following are the various types, descriptions, and guidelines for usage of military equipment currently employed by the Gilroy Police Department. (NOTE: The manufacturer descriptions and source photos contained within are referenced via publicly accessible website source citations. The website source citations utilized in this report are for equipment descriptive purposes only and are not an endorsement of a particular product or vendor by The City of Gilroy or The Gilroy Police Department. Additionally, the language used by the manufacturer to describe such equipment use is included in this report as required by California Government Code section 7070(d)(1), however, the descriptions may not align with the actual methods of use in accordance with Gilroy Police Department Policy, as well as local, state, and federal law.) Page 117 of 255 26 Annual Military Equipment Use Report 2024 Unmanned Aircraft Systems (UAS) Unmanned Aircraft Systems (UAS): An unmanned aircraft system of any type that can sustain direct flight, whether remotely controlled or via pre-programing, and all the attached systems designed for gathering information via photography, recording, or any other means. Capability: The Gilroy Police Department uses Unmanned Aircraft Systems (UAS) of varying sizes and capabilities to enhance public safety. The UAS can be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to major collision investigations, search for missing persons, natural disaster management, crime scene photography, SWAT, tactical or other public safety and life- preservation missions, and in response to specific requests from local, state, or federal fire authorities for fire response and/or prevention. The UAS are used in compliance with all federal, state, and local laws. Usage: It is the policy of the Gilroy Police Department to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to state and federal law. Additionally, only assigned operators who have completed the required training shall be permitted to operate any UAS during approved missions. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use), FAA Regulation 14 CFR Part 107 Small Unmanned Aircraft Systems, and Penal Code section 13652, initiated by California Assembly Bill 48. More information about the rules for public safety agencies can be found on the FAA website at https://www.faa.gov/uas/public_safety_gov/. The use of UAS is governed by federal, state and local laws and regulations. The Federal Aviation Admiration (FAA) governs all aircraft rules and regulations, including those applicable to UAS, for flight within the US National Airspace. Training Requirements: All department UAS operators are licensed by the Federal Aviation Administration for UAS operation and each UAS operator must attend regular department trainings. Page 118 of 255 27 Annual Military Equipment Use Report 2024 The Department currently possesses the following Unmanned Aircraft Systems: Brinc Lemur 2 QUANTITY 1 LIFESPAN 3-5 years INITIAL COST $24,000/unit Manufacturer: Brinc Manufacturer Description: The Brinc Lemur is a next-generation tactical drone engineered specifically for public safety operations, including law enforcement, search and rescue, and emergency response missions. Designed and manufactured in the United States, the LEMUR 2 integrates advanced hardware and software to enhance situational awareness, facilitate communication, and improve operational safety in high-risk environments. (Description Source: https://brincdrones.com/lemur-2/) DJI Avata 2 QUANTITY 2 LIFESPAN 3-5 years INITIAL COST $1,050/unit Manufacturer: DJI Manufacturer Description: The DJI Avata 2 is DJI's latest FPV (First-Person View) drone, designed to deliver an immersive and intuitive flying experience for both beginners and seasoned pilots. Paired with the new DJI Goggles 3 and RC Motion 3 controller, the Avata 2 offers enhanced imaging, safety features, and extended flight capabilities. (Description Source: https://www.dji.com/avata-2?utm_source=chatgpt.com) Page 119 of 255 28 Annual Military Equipment Use Report 2024 DJI Matrice 30T QUANTITY 1 LIFESPAN 3-5 years INITIAL COST $18,250/unit Manufacturer: DJI Manufacturer Description: The DJI Matrice 30T is a drone that is aimed at professionals and search and rescue teams. It has a 46-minute flight time, a thermal sensor, and a laser range finder. It also has a 48MP 1/2” CMOS zoom camera with 5x-16x optical zoom and 200x digital zoom. It can also be equipped with an optional thermal camera. (Description Source: https://enterprise.dji.com/matrice-30) DJI Mavic 2 Enterprise QUANTITY 1 LIFESPAN 3-5 years INITIAL COST $5,000/unit Manufacturer: DJI Manufacturer Description: Designed to empower a new generation of workers, the Mavic 2 Enterprise is the ultimate expression of a tool that delivers beyond expectation to meet current workplace challenges and future demands. The DJI Mavic 2 Enterprise Dual features visible & thermal imagery, integrated radiometric FLIR thermal sensor, adjustable parameters for emissivity & reflective surfaces, and multiple display modes (FLIR MSX, Infrared & Visibility). This is a remotely operated battery-powered aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator. Page 120 of 255 29 Annual Military Equipment Use Report 2024 (Description source: https://www.dji.com/mavic-2-enterprise) DJI Mavic Mini 2 QUANTITY 4 LIFESPAN 3-5 years INITIAL COST $500/unit Manufacturer: DJI Manufacturer Description: This is a remotely operated battery-powered aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator. (Description Source: https://www.dji.com/mini-2) Page 121 of 255 30 Annual Military Equipment Use Report 2024 Robots Robots: A machine that operates on the ground and can be controlled remotely, as well as all the supporting or attached systems designed for gathering information through photographs, recordings, or other means. Capability: Robots can protect against suspected and known explosive hazards. They are also used in tactical support of special operations and can gather visual/audio data, deliver a Hostage Negotiation Team phone, open doors, and clear buildings. Usage: It is the policy of the Gilroy Police Department to utilize Robots only for official law enforcement purposes, and in a manner that respects the privacy of our community. Additionally, only assigned operators who have completed the required training shall be permitted to operate any Robots. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use). It is the policy of the Gilroy Police Department to utilize a robot only for official law enforcement purposes pursuant to state and federal law, including the provisions of Penal Code section 13652, initiated by California Assembly Bill 48. Training Requirements: Robot operators shall receive department training in the safe handling of the robots and show competence in the operation of the equipment. Page 122 of 255 31 Annual Military Equipment Use Report 2024 The Department currently possesses the following Robots: Robotex Avatar Tactical Robot QUANTITY 1 LIFESPAN 8-10 years INITIAL COST $25,000/unit Manufacturer: Robotex Manufacturer Description: The AVATAR enhances the capabilities of SWAT and tactical response teams by allowing them to quickly and safely inspect dangerous situations, there is no longer a need to send personnel in before you’ve had a chance to assess the situation. The AVATAR Robots are regarded by tactical teams as a standard operational tool, like a firearm, vehicle, or piece of body armor. (Description source: https://www.acornpd.com/robotex-avatar-tactical-robot) Transcend Vantage Patrol Robot QUANTITY 1 LIFESPAN 8-10 years INITIAL COST $25,000/unit Manufacturer: Transcend Manufacturer Description: Transcend’s Vantage robot is the first technological breakthrough in law enforcement robotics in the last 30 years. Its double patented automatic stair and obstacle mobility technology has given officers an unprecedented tool for successful mobile reconnaissance. It’s ability to deploy hot gas in a safe and fully contained enclosure has been a game changer for many situations, especially barricaded subjects. The Vantage can be used by anyone without prior training to climb stairs, overcome clothes and random obstacles. Its Page 123 of 255 32 Annual Military Equipment Use Report 2024 communication signals can penetrate a vast array of wall materials at distance and it’s designed to be affordable for years to come. (Description source: https://www.transcendrobotics.com/vantage) Recon Robotics Throwbot 2 QUANTITY 1 LIFESPAN 8-10 years INITIAL COST $8,500/unit Manufacturer: Recon Robotics Manufacturer Description: The Throwbot® 2 (TB2) robot is a throwable micro-robot platform that enables operators to obtain instantaneous video and audio reconnaissance within indoor or outdoor environments. Designed to withstand repeated drops of up to 30 feet (9 m) onto concrete, the Throwbot® 2 robot can be thrown into hazardous situations in order to allow operators to quickly make informed decisions when seconds count. This micro-robot is designed to be able to crawl over a variety of terrain, clearing obstacles up to 2″ (5 cm) tall. Conversion kits are available which can increase the ability of the Throwbot® 2 robot to cross obstacles up to 4″ (10 cm) tall or to carry and tow a combined 4 lbs (1.8 kg) of payloads using integrated mount points or a Picatinny Rail accessory. (Description source: https://reconrobotics.com/products/throwbot-2-robot/) Page 124 of 255 33 Annual Military Equipment Use Report 2024 Armored Vehicles Armored Vehicle: Commercially-produced, wheeled, armored personnel vehicle utilized for law enforcement purposes. Capability: Armored vehicles are utilized in response to critical incidents to enhance officer and community safety, improve scene contamination and stabilization, and assist in resolving critical incidents. Usage: Armored vehicles shall only be authorized by a watch commander or SWAT commander based on the specific circumstances of a critical incident. Armored vehicles shall only be used by officers trained in their deployment and in a manner consistent with Department policy and training. Legal Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions outlined in GPD Policy Manual Section 706 (Vehicle Use). The Gilroy Police Department utilizes armored vehicles only for official law enforcement purposes and pursuant to state and federal law. Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction. Page 125 of 255 34 Annual Military Equipment Use Report 2024 The Department currently possesses the following Armored Vehicles: Lenco BearCat G2 QUANTITY 1 LIFESPAN 25 years INITIAL COST $360,500/unit Manufacturer: Lenco Manufacturer Description: The Lenco BearCat G2 is the standard tactical armored vehicle for special operations units within the US Law Enforcement community. The G2 has excellent on- road driving characteristics and maneuverability in tight urban settings. The large floor plan seats 10 – 12 fully equipped officers with a long list of tactical features only found on the Lenco BearCat line of armored SWAT vehicles for Police and Government. (Description Source: https://www.lencoarmor.com/model/bearcat-g2-police-government/) Page 126 of 255 35 Annual Military Equipment Use Report 2024 Mobile Command Vehicle (MCV) Mobile Incident Command Vehicle: A completely self-contained command post designed to provide shelter, access to department computers, and restroom facilities for extended events. This vehicle can also be used to facilitate mobile booking for incidents that may involve mass arrests, and other uses include pre-planned or significant events, which require on-site planning and incident command personnel. Capability: As a mobile base of operation, this vehicle contains specialized command, control, and communications equipment which can be used during critical incidents, large events, natural disasters, and community events. Usage: The MCV is to be utilized for planned or unplanned events. Only officers trained in the deployment and operations of the MCV, in a manner consistent with Department policy and training, are authorized to operate it. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use). It is the policy of the Gilroy Police Department to use the MCV only for official law enforcement purposes, and in accordance with California state law regarding the operation of motor vehicles. Training Requirements: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver. Page 127 of 255 36 Annual Military Equipment Use Report 2024 The Department currently possesses the following Mobile Command Vehicles: Mobile Command Vehicle (MCV) QUANTITY 1 LIFESPAN 20 years (Chassis) 6 years (IT System) INITIAL COST $699,186/unit Manufacturer: Freightliner Manufacturer Description: The MCV is a Freightliner MT-55 custom built by LDV Inc. It is a fully functioning Mobile Public Safety Answering Point (PSAP) and is a backup to our existing Dispatch Center. The MCV is a shared asset used by the Morgan Hill Police Department and the Gilroy Police Department during critical incidents, pre-planned large events, searching for missing persons, natural disasters, and community events. (Description Source: https://www.ldvusa.com/category/emergency-response-vehicles/ldv- mobile-command-center/) Page 128 of 255 37 Annual Military Equipment Use Report 2024 Hostage Negotiation Team (HNT) Van Hostage Negotiation Team Vehicle: A completely self-contained command post designed to provide shelter, access to Department computers, and a mobile office for extended events. Capability: As a mobile base of operation, this vehicle contains specialized command and communications equipment which can be used during critical incident callouts where SWAT/HNT have been called. Usage: The HNT van may be used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver’s license. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use) and shall be in accordance with California state law regarding the operation of motor vehicles. Training Requirements: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver. Page 129 of 255 38 Annual Military Equipment Use Report 2024 The Department currently possesses the following Hostage Negotiation Team Van: Hostage Negotiation Team (HNT) Van QUANTITY 1 LIFESPAN 20 years INITIAL COST No Cost/unit Manufacturer: Kodiak Manufacturer Description: The HNT Van was custom-built for the State of California in 1991 from a Kodiak Communication Van and transferred to GPD in 2013. (Description Source unavailable due to customization) Page 130 of 255 39 Annual Military Equipment Use Report 2024 40mm Launchers and Munitions 40mm Launchers: A single-shot or multi-shot impact weapon launcher capable of firing an array of 40mm rounds. Capability: 40mm launchers can fire a variety of ammunition with a maximum effective range of one hundred thirty-one feet (131 feet). Usage: The use of the 40mm may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. This system has additional uses which include but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and in civil unrest incidents, circumstances where a tactical advantage can be obtained, against potentially-vicious animals, and in training exercises or displayed during community events. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize 40mm munitions only for official law enforcement purposes, and pursuant to state and federal law. Training Requirements: Sworn members utilizing 40mm less lethal chemical agent or impact rounds are trained in their use by P.O.S.T.-certified less lethal and chemical agent instructors. Page 131 of 255 40 Annual Military Equipment Use Report 2024 The Department currently possesses the following 40mm launchers: Defense Technology 40mm Single Shot Launcher #1425 QUANTITY 7 LIFESPAN 25 years INITIAL COST $1,000/unit Manufacturer: Defense Technology Manufacturer Description: Manufactured exclusively for Defense Technology®, the 1425 40LMTS is a tactical single shot launcher that features the Rogers Super Stoc™ expandable gun stock and an adjustable Integrated Front Grip (IFG) with light rail. The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single- and two-point sling attachment. Users have the option of customizing the 40LMTS with an array of enhanced optics and sighting systems through the launcher’s Picatinny rail mounting system. The 40LMTS will fire standard 40mm less lethal ammunition, up to 4.8” in cartridge length, but it is NOT designed to fire 40mm high velocity HE ammunition. (Description Source: https://www.defense-technology.com/wp- content/uploads/2020/06/DT_40MM_Single_Launcher_Sell_Sheet.pdf) Defense Technology 40mm Tactical 4-Shot Launcher, #1440 QUANTITY 2 LIFESPAN 25 years INITIAL COST $1,850/unit Manufacturer: Defense Technology Page 132 of 255 41 Annual Military Equipment Use Report 2024 Manufacturer Description: The Defense Technology® #1440 is a Tactical 40mm 4-Shot Launcher that features an expandable ROGERS Super Stoc™ and an adjustable Picatinny mounted front grip. The Tactical 4-Shot will fire standard 40mm Less Lethal ammunition, up to 4.8 inches in cartridge length. Lightweight and tactical, this weapon is NOT designed to fire 40mm High Velocity HE ammunition. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems. (Description Source: https://www.defense-technology.com/wp-content/uploads/2020/06/40mm- Tactical-4-Shot-Launcher.pdf) Page 133 of 255 42 Annual Military Equipment Use Report 2024 The Department currently possesses the following 40mm munitions: Defense Technology 40mm Exact Impact Sponge Round #6325 QUANTITY 50 LIFESPAN 6 years INITIAL COST $18/unit Manufacturer: Defense Technology Manufacturer Description: The Exact Impact 40mm Sponge Round is a point-of-aim, point- of- impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore have velocities that are extremely consistent. (Description Source: https://www.defense-technology.com/product/exact-impact-40-mm- standard-range-sponge-round/) Page 134 of 255 43 Annual Military Equipment Use Report 2024 Less Lethal Shotgun and Munitions Less Lethal Shotgun: The less lethal shotgun is a standard Mossberg Model 590, 12-gauge shotgun that has been outfitted with an orange-colored stock and foregrip to distinguish from lethal weapons. Capability: The less lethal shotgun can fire a 12-gauge Super-Sock Beanbag Round with a maximum effective range of seventy-five (75) feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat, which is a principle of de-escalation. Usage: The use of the less lethal shotgun may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. Situations for use of the less lethal weapon system may include, but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to state and federal law. Training Requirements: All GPD officers are required to complete department training on the Mossberg Model 590 less lethal shotgun system. GPD SWAT operators receive additional department training on the use of less lethal shotgun operations. Page 135 of 255 44 Annual Military Equipment Use Report 2024 The Department currently possesses the following Less Lethal Shotgun(s): Mossberg Model 590, 12-gauge shotgun QUANTITY 10 LIFESPAN 25 years INITIAL COST $620/unit Manufacturer: Mossberg Manufacturer Description: The Mighty 590. With decades of military and law enforcement duty and countless performance and success stories under its belt, it’s no surprise that the 590 chosen for duty around the globe is also the ideal choice for home defense needs. With a range of customized stock and sight features right out of the box, and three gauge offerings, the ruggedly-built 590 lineup offers the variety of capacities, finishes, and configurations that will best fit your needs. (Description source: https://www.mossberg.com/firearms/shotguns/590.html) Page 136 of 255 45 Annual Military Equipment Use Report 2024 The Department currently possesses the following Less Lethal Shotgun ammunition: Combined Tactical Systems Super-Sock Bean Bag QUANTITY 150 LIFESPAN N/A INITIAL COST $7/unit Manufacturer: Combined Tactical Systems, Inc. Manufacturer Description: The Model 2581 Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to “unfold” or “stabilize.” The Super-Sock is an aerodynamic projectile, and its accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Super-Sock is first in its class providing the point control accuracy and consistent energy to momentarily incapacitate violent, non- compliant subjects. Effective range is 75ft. (Description source: https://www.combinedsystems.com/product/2581-12ga-super-sock-bean- bag-priced-individually-per-cartridge-must-order-in-quantities-of-5/) Page 137 of 255 46 Annual Military Equipment Use Report 2024 Combined Tactical Systems LC5 Launching Cup Combined Tactical Systems LC5 Launching Cup: A cup that attaches to the department’s less lethal shotguns, which allows officers to launch canisters of chemical agents or smoke. Capability: The Combined Tactical Systems LC5 Launching Cup is capable of being attached to almost any 12-gauge shotgun, including GPD’s Mossberg 590 12-gauge less lethal shotguns, and firing all Combined Tactical Systems 5 series munitions. Usage: The use of the Combined Tactical Systems LC5 Launching Cup may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. This system has additional uses which include but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize this equipment only for official law enforcement purposes, and pursuant to state and federal law. Training Requirements: Officers utilizing the launching cups are trained by California P.O.S.T.- certified chemical agent instructors. Page 138 of 255 47 Annual Military Equipment Use Report 2024 The Department currently possesses the following Launching Cup(s): Combined Tactical Systems LC5 Launching Cup QUANTITY 2 LIFESPAN 25 years INITIAL COST $275/unit Manufacturer: Combined Tactical Systems, Inc. Manufacturer Description: The LC5 Launching Cups are designed for the 5200 series grenades. The cups can be attached to virtually any 12ga shotgun, and the munition launched with our model 2600 launching cartridge. These can be fired from most 12ga smooth bore shotguns. (Description Source: https://www.combinedsystems.com/product/lc5-and-lc6-launching-cups/) Page 139 of 255 48 Annual Military Equipment Use Report 2024 Diversionary Devices Diversionary Devices: Canisters that emit a loud noise and bright light that is used to distract dangerous persons. Capability: A Diversionary device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. To produce atmospheric over- pressure and brilliant white light and, as a result, a diversionary device can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage. Usage: Diversionary devices are used during training and tactical events when a diversion or distraction are believed to be an effective tool to bring an event to a safe resolution. Diversionary devices shall only be used by officers who have been trained in their proper use, in hostage and barricaded subject situations, in high-risk (search/arrest) warrant services where there may be extreme hazards to officers, during other high-risk situations where their use would enhance officer safety, and during training exercises. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize diversion devices only for official law enforcement purposes, and pursuant to state and federal law. Training Requirements: Prior to using this equipment, officers must attend diversionary device training that is conducted by California POST certified instructors. Page 140 of 255 49 Annual Military Equipment Use Report 2024 The Department currently possesses the following Diversionary Devices: Combined Tactical Systems, 7290-2 Flash-Bang QUANTITY 2 LIFESPAN N/A INITIAL COST $52/unit Manufacturer: Combined Tactical Systems, Inc. Manufacturer Description: This is a non-bursting, non-fragmenting multi-bang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high risk arrest situations. (Description Source: https://www.combinedsystems.com/product/7290-2-flash-bang-aluminum- body-low-roll-doublebang-priced-individually-must-order-in-quantities-of- 12/#:~:text=7290%2D2%20%E2%80%93%20This%20is%20a,other%20high%20risk%20arres t%20situations.) Combined Tactical Systems, 7290M Mini Flash-Bang QUANTITY 30 LIFESPAN N/A INITIAL COST $42/unit Manufacture: Combined Tactical Systems, Inc. Page 141 of 255 50 Annual Military Equipment Use Report 2024 Manufacture Description: The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all the same attributes of its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces the new 7290M is approximately 30% lighter than the 7290 but still has the same 180db output of the 7290 and produces 6-8 million candela of light. The patented design of the 7290M, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output. (Description Source: https://www.combinedsystems.com/product/7290m-mini-bang-steel-body- priced-individually-must-order-in-quantities-of-12/) Page 142 of 255 51 Annual Military Equipment Use Report 2024 Rifles and Munitions Rifles: The rifle is a gun that is fired from shoulder level, having a longer, grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance. Capability: The rifle provides officers the ability to engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor. However, rifles are not appropriate for every situation. Usage: To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize rifles only for official law enforcement purposes, and pursuant to state and federal law regarding the use of force. Training Requirements: Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification annually. Page 143 of 255 52 Annual Military Equipment Use Report 2024 The Department currently possesses the following rifles: Colt M4 Commando QUANTITY 11 LIFESPAN 10 years INITIAL COST $1,222/unit Manufacturer: Colt Manufacturer Description: A rifle that fires an intermediate-power cartridge (5.56mm) which is more powerful than a standard pistol but less powerful than a standard rifle. It is a short- barreled rifle (10.5”) which allows a trained officer better control inside of structures with greater accuracy than a handgun. (Description Source: https://www.colt.com/) Colt M4 Carbine QUANTITY 5 LIFESPAN 10 years INITIAL COST $1,062/unit Manufacturer: Colt Manufacturer Description: A rifle that fires an intermediate-power cartridge (5.56mm) which is more powerful than a standard pistol but less powerful than a standard rifle. It is a short- barreled rifle (14.5”) which allows a trained officer better control inside of structures with greater accuracy than a handgun. Page 144 of 255 53 Annual Military Equipment Use Report 2024 (Description Source: https://www.colt.com/) Remington 700 QUANTITY 5 LIFESPAN 10 years INITIAL COST $2,160/unit Manufacturer: Remington Manufacturer Description: A bolt-action rifle with precision optics that fires a .308 Winchester cartridge. The .308 rifle allows SWAT Snipers to accurately engage hostile suspects at great distances. The .308 rifles are used exclusively by officers assigned to the SWAT Sniper Team. These rifles are typically deployed with the SWAT Sniper Team during high-risk SWAT operations and special events or instances wherein Sniper Over Watch Teams are needed. (Description Source: https://www.remarms.com/rifles/bolt-action/model-700/) Colt M16A1 QUANTITY 16 LIFESPAN 10 years INITIAL COST No Cost/unit Manufacturer: Colt Manufacturer Description: The M16A1 rifle is a lightweight, air cooled, gas operated magazine fed, and shoulder fired weapon that can be fired in semi-automatic. Page 145 of 255 54 Annual Military Equipment Use Report 2024 (Description Source: https://www.colt.com/detail-page/col-crm16a1-556-20-30rd) Springfield M14 QUANTITY 1 LIFESPAN 10 years INITIAL COST No Cost/unit Manufacturer: Springfield Manufacturer Description: The M14 served with distinction as the standard issued rifle of the United States military after the revered M1 Garand. The windage and elevation adjustable rear sight makes zeroing the rifle a pleasure, while the two-stage military trigger, detachable box magazine, op-rod, and roller cam bolt provide functional ease of operation and faithful reliability. (Description Source: https://www.springfield-armory.com/m1a-series-rifles/m1a-standard- issue-rifles) Page 146 of 255 55 Annual Military Equipment Use Report 2024 Chemical Agent and Smoke Canisters Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed Capability: Chemical agent and smoke canisters have a vast variety of individual capabilities and applications. Chemical agent and smoke canisters carry the agent into the environment in a variety of methods, including but not limited to a micro-pulverized solid (powder), a liquid mist (fogger), a liquid or foam stream, burning pellets (smoke), pyrotechnic devices, and vapor aerosols. Exposure to chemical agents normally causes no lasting effects. This equipment has various indoor and outdoor capabilities and uses. Chemical agents shall be used with caution and only by trained personnel. Usage: Chemical agent and smoke canisters are used to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to, self-destructive individuals, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and in training exercises or displayed during community events. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize chemical agents only for official law enforcement purposes, in accordance with the department’s Use of Force Policy, and pursuant to state and federal law. Training Requirements: GPD Officers utilizing chemical agent and smoke canisters are certified by California POST less lethal and chemical agent instructors. Page 147 of 255 56 Annual Military Equipment Use Report 2024 The Department currently possesses the following chemical agent and smoke canisters: Defense Technology, Maximum HC Smoke Large Canister, #1073 QUANTITY 2 LIFESPAN 5 years INITIAL COST $38/unit Manufacturer: Safariland, LLC / Defense Technology Manufacturer Description: The Maximum Smoke Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 1.5 – 2 minutes through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.6 in. and holds approximately 2.9 oz. of active agent. (Description Source: https://www.defense-technology.com/product/maximum-smoke-hc-large- style-canister/) Combined Tactical Systems, White Smoke Canister Grenade, #8210 QUANTITY 6 LIFESPAN 5 years INITIAL COST $24/unit Manufacturer: Combined Tactical Systems Page 148 of 255 57 Annual Military Equipment Use Report 2024 Manufacturer Description: Small diameter pyrotechnic irritant smoke grenade for outdoor use to disperse crowds. Emits smoke for up to 30 seconds and is small enough to carry in a pocket. Can be hand thrown or launched. (Description Source: https://www.combinedsystems.com/product/8210-white-smoke-tactical- canister-grenade/) Combined Tactical Systems, Riot CS Smoke Grenade, #8230 QUANTITY 30 LIFESPAN 5 years INITIAL COST $32/unit Manufacturer: Combined Tactical Systems Manufacturer Description: The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically for outdoor use and it should not be deployed on rooftops, in crawl spaces or indoors due to fire producing capability. Can be hand thrown or launched. (Description Source: https://www.combinedsystems.com/product/8230-outdoor-tactical- grenade-cs/) Combined Tactical Systems, Riot CS Smoke Grenade, #6230 QUANTITY 7 LIFESPAN 5 years INITIAL COST $40/unit Page 149 of 255 58 Annual Military Equipment Use Report 2024 Manufacturer: Combined Tactical Systems Manufacturer Description: Pyrotechnic canister grenade emitting smoke through multiple emission ports for 30 to 40 seconds. May be launched or hand thrown. (Description Source: https://www.combinedsystems.com/product/6230-cs-canister-grenade/) Combined Tactical Systems, Baffled Riot CS Smoke Grenade, #5230B QUANTITY 30 LIFESPAN 5 years INITIAL COST $40/unit Manufacturer: Combined Tactical Systems Manufacturer Description: Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. (Description Source: https://www.combinedsystems.com/product/5230b-cs-baffled-canister- grenade-pyro-low-flame-potential-2/) Penn Arms, 37mm Single Shot Launcher, #SL1-37 QUANTITY 6 LIFESPAN 25 years INITIAL COST $1575/unit Manufacturer: Penn Arms Page 150 of 255 59 Annual Military Equipment Use Report 2024 Manufacturer Description: A single shot break open frame launcher with smooth bore barrel. Features include: double-action trigger, trigger lock push button and hammer lock safeties, 47mm 1:47 twist rifled 12 inch barrel, combination weaver rail with ghost ring and bead sight, overall length of 29 inches (742.95mm) with fixed stock, unloaded wight 5.906 lbs (2.67 kg), utilizes 37mm munitions. (Description Source: https://www.combinedsystems.com/product/l137-1-single-launcher-fixed- stock-w-iron-sights-l1-37/) Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5OC QUANTITY 0 LIFESPAN 5 years INITIAL COST $20/unit Manufacturer: Sage Control Ordinance Manufacturer Description: The BP5 is a non-pyrotechnic barricade penetrating munition capable of delivering micro-pulverized chemical agents through barricades from a rifled 37mm launcher. The BP5 achieves superior accuracy and penetration through a combination of barrel rifling and projectile design. The projectile is made of frangible plastic and is filled with a micro-pulverized powdered chemical agent. The BP5 is designed to penetrate windows, doors, and other barriers. The micro-pulverized powder payload is released upon impact. (Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html) Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5CS QUANTITY 0 LIFESPAN 5 years INITIAL COST $20/unit Page 151 of 255 60 Annual Military Equipment Use Report 2024 Manufacturer: Sage Control Ordinance Manufacturer Description: The BP5 is a non-pyrotechnic barricade penetrating munition capable of delivering micro-pulverized chemical agents through barricades from a rifled 37mm launcher. The BP5 achieves superior accuracy and penetration through a combination of barrel rifling and projectile design. The projectile is made of frangible plastic and is filled with a micro-pulverized powdered chemical agent. The BP5 is designed to penetrate windows, doors, and other barriers. The micro-pulverized powder payload is released upon impact. (Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html) Sage Control Ordinance, 37mm Impact/Chemical, #K03OC QUANTITY 0 LIFESPAN 5 years INITIAL COST $20/unit Manufacturer: Sage Control Ordinance Manufacturer Description: The K03 is a direct-fire crush nose chemical impact baton round that is designed to be used in situations where a combination of kinetic energy and chemical agents is preferred for the incapacitation of hostile and/or non-compliant individuals. Upon impact, the K03 projectile imparts blunt trauma and additionally releases a micro-pulverized CS or OC powder payload as the baton nose is crushed. (Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html) Page 152 of 255 61 Annual Military Equipment Use Report 2024 PepperBall Launchers and Projectiles PepperBall Launcher: A device that discharges PAVA powder projectiles. Capability: A PepperBall Launcher can quickly and accurately deploy small, non-lethal projectiles (“Pepper Balls”) from an effective distance of 150 feet, that produce a chemical that can rapidly produce sensory irritation or disabling physical effects in humans, which disappear within a short time following termination of exposure. Usage: PepperBall equipment is used to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but, are not limited to self-destructive individuals, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and in training exercises or displayed during community events. Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the GPD to utilize PepperBall Launchers only for official law enforcement purposes, and pursuant to state and federal law. Training Requirements: GPD officers utilizing PepperBall launchers and projectiles are trained in their use by California POST certified less lethal and chemical agent instructors. Page 153 of 255 62 Annual Military Equipment Use Report 2024 The Department currently possesses the following PepperBall equipment: PepperBall FTC Launcher QUANTITY 6 LIFESPAN 20 years INITIAL COST $499/unit Manufacturer: PepperBall Manufacturer Description: Compact and lightweight, the PepperBall FTC is the industry gold standard for crowd-control and other applications where accuracy and reliability is a factor. The FTC features a modular design with a rapid feeding loader and firing rate of 10-12 RPS. (Description Source: https://store-c19drjba2a.mybigcommerce.com/content/PEP-21006-FTC- Specs.pdfhttps://shop.pepperball.com/products/pepperball-vks%E2%84%A2- carbine) PepperBall Live Projectile QUANTITY 1000 LIFESPAN 3 years INITIAL COST $2/unit Manufacturer: PepperBall Manufacturer Description: The live PepperBall® round contains 2.0% PAVA. It is effective for direct impact and area saturation when there is no line of sight. PAVA is based on one of the hottest of the six capsaicinoids found in pepper plants. PepperBall products contain only Page 154 of 255 63 Annual Military Equipment Use Report 2024 safe, pure, non-oil based PAVA and are non-flammable. Ingredient consistency ensures each projectile operates with quality and effectiveness. (Description Source: https://pepperball.com/projectiles/pepperball-live/) PepperBall Live Projectile QUANTITY 1000 LIFESPAN 3 years INITIAL COST $0.80/unit Manufacturer: PepperBall Manufacturer Description: The inert PepperBall® round contains harmless, scented powder. This projectile is best suited for training, qualifications, and direct impact when chemical exposure is not desired. (Description Source: https://pepperball.com/projectiles/pepperball-inert/) Page 155 of 255 64 Annual Military Equipment Use Report 2024 Conclusion The acquisition and use of military equipment in our communities may impact the public’s safety and welfare. The public has a right to know about any funding, acquisition, or use of military equipment by local government officials, as well as a right to participate in the local government’s decision to fund, acquire, or use such equipment. When making decisions regarding how military equipment is funded, acquired, or used, the Gilroy Police Department gives strong consideration to the public’s welfare, safety, civil rights, and civil liberties. In a continued effort for greater transparency, the Gilroy Police Department places high regard to meaningful public input in the use of military equipment in our community, in an effort to increase the safety of the public. Any member of the public can submit a question or concern regarding military equipment use by contacting the Gilroy Police Department’s Administrative Division via email at complaintscompliments@cityofgilroy.org. The Department will strive to provide a timely response to the community’s questions and concerns regarding the use of military equipment. Any member of the public can submit a complaint to any member of the Department and in any form (i.e., in person, telephone, email, etc.). Once the complaint is received, it should be routed to the Administrative Division. Page 156 of 255 City of Gilroy STAFF REPORT Agenda Item Title:Acceptance of Cash and Investment Report as of March 31, 2025 Meeting Date:May 19, 2025 From: Jimmy Forbis, City Administrator Department:Finance Submitted by:Harjot Sangha, Finance Director Prepared by:Rosemary Guerrero, Finance Manager STRATEGIC PLAN GOALS:Develop a Financially Resilient Organization RECOMMENDATION Accept and file the cash and investment report as of March 31, 2025. 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 December 31, 2025, the City’s cash and investments totaled $189.5 million, of which primary investments include: $52.4 million in the Local Agency Investment Fund (LAIF), $108.6 million in US Treasury securities, and $27.3 million in the California CLASS PRIME Fund. The fiscal year interest earnings are $6.4 million, which includes accrued interest as well as amortization of the discount on the US Treasury securities. The effective rate of return is 4.5%. In addition, approximately $14.5 million is held by Fiscal Agents in the Trustee capacity for various bond issues such as bond proceeds, debt service reserves, bond payments, and other post-employment benefits (OPEB) and pensions. The majority of this balance ($8.9 million) consists of the City of Gilroy’s share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project, and the remaining portion primarily Page 157 of 255 consists of the Section 115 Trusts for OPEB and pension ($5.4 million). ALTERNATIVES None. FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts to receiving and filing the quarterly cash and investment report. This is an activity included in the Finance Department’s annual workplan. Attachments: 1. Investment Report 3-31-2025- Signed Page 158 of 255 City of Gilroy investment report march 2025 Page 159 of 255 TABLE OF CONTENTS 1.PORTFOLIO SUMMARY REPORT..........................................................................................1 - 3 2.INVESTMENTS BY ISSUER REPORT...................................................................................4 - 5 3 INVESTMENT ACTIVITY……………………………………………………………………………..6 - 7 4.QUARTERLY MOVEMENT OVER THE LAST TWELVE MONTHS........................................8 5.MOVEMENT OVER THE LAST TWO YEARS - GRAPHICAL PRESENTATION....................9 6.INVESTMENT PORTFOLIO - GRAPHICAL PRESENTATION................................................10 - 11 7.INTEREST EARNINGS: FISCAL YEARS 2015 - 2025............................................................ 12 8.MONIES HELD BY FISCAL AGENTS REPORT………….……...............................................13 Page 160 of 255 City of Gilroy Portfolio Management March 31, 2025 City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 (408)846-0294 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. LAIF 52,367,619.00 127.82 4.241152,367,619.0052,367,619.00 4.300 Treasury Notes Securities 108,566,844.50 52757.68 4.573260108,725,516.69110,060,500.00 4.636 Other Banks-Misc.Account-Petty Cash 27,285,683.61 114.50 4.351127,285,683.6127,285,683.61 4.412 188,220,147.11 100.00%Investments 188,378,819.30189,713,802.61 305 150 4.448 4.510 Cash (not included in yield calculations) Passbook/Checking 1,258,021.97 1 0.00011,258,021.971,258,021.97 0.000 189,478,169.08Total Cash and Investments 189,636,841.27190,971,824.58 305 150 4.448 4.510 Current Year March 31 730,501.50 Fiscal Year To Date 6,373,307.26 Average Daily Balance Effective Rate of Return 191,935,543.68 187,843,692.52 4.52%4.48% Total Earnings Month Ending 6 Month T-Bill Benchmark:4.08% NOTES: 1. See "Monies Held by Fiscal Agents" for additional amounts held in the capacity of a trustee. 2. The Maturity Aging Factor of the City's Portfolio = 5.00 months. 3. The unrealized gain resulting from an increase in Market Values obtained from U.S. Bank of all Securities (excluding LAIF) = $158,672 4. The LAIF balance shown includes $5,738,756 in bond proceeds from the Gilroy Library 2010 Bonds that can be used exclusively for the construction of the library. This is to certify that this schedule of investments is in compliance with the City of Gilroy's investment policy and that there are adequate funds available to meet the City's budgeted and actual expenses for the next six months. __________________________________________________ ____________________ Harjot Sangha, Finance Director Reporting period 07/01/2024-03/31/2025 Page 1 of 13 05/02/2025 Page 161 of 255 YTM 365Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2025 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Gilroy Days to Maturity YTM 360CUSIPInvestment # Purchase Date LAIF 4.400LAIF - City of GilroyLAIF01 37,894,654.82 37,894,654.82 4.40037,894,654.82 4.340SYSLAIF01 1 4.400LAIF - Industrial Dev. Auth.LAIF03 8,734,208.55 8,734,208.55 4.4008,734,208.55 4.340SYSLAIF03 1 4.400LAIF LIBRARYLAIF05 5,738,755.63 5,738,755.63 4.4005,738,755.63 4.340LAIF05 1 52,367,619.00 4.34052,367,619.0052,367,619.0052,061,167.39Subtotal and Average 4.400 1 Treasury Notes Securities 4.949USB-11 8,186,000.00 8,179,368.57 04/30/20253.87507/31/2023 8,182,398.16 4.88191282CGX3 29 5.039USB-14 8,915,000.00 8,781,097.09 07/31/20250.25011/07/2023 8,795,449.85 4.97091282CAB7 121 5.129USB-17 646,000.00 644,898.38 04/30/20252.87511/07/2023 645,237.72 5.0599128284M9 29 4.429USB-20 9,294,000.00 9,323,214.14 10/31/20255.00001/31/2024 9,336,380.64 4.36891282CJE2 213 5.122USB-21 9,905,300.00 9,893,416.21 07/31/20254.75004/30/2024 9,919,266.47 5.05291282CHN4 121 5.138USB-22 10,747,600.00 10,708,446.54 04/30/20250.37504/30/2024 10,713,852.54 5.067912828ZL7 29 4.786USB-23 868,700.00 856,092.57 07/31/20250.25007/31/2024 857,050.73 4.72091282CAB7 121 4.670USB-24 10,461,900.00 10,203,101.98 10/31/20250.25007/31/2024 10,227,134.96 4.60691282CAT8 213 4.562USB-25 10,092,000.00 9,755,362.73 01/31/20260.37507/31/2024 9,785,001.36 4.49991282CBH3 305 4.236USB-26 9,694,000.00 9,694,758.18 01/31/20264.25010/31/2024 9,704,081.76 4.17891282CJV4 305 4.216USB-27 20,000,000.00 19,277,088.11 04/30/20260.75001/31/2025 19,308,200.00 4.15891282CBW0 394 4.420 U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES U. S. TREASURY NOTES FEDERAL HOME LOANUSB-28 11,250,000.00 11,250,000.00 02/04/20274.42002/04/2025 11,251,462.50 4.3593130B4XH9 674 108,566,844.50 4.573108,725,516.69110,060,500.00108,462,748.66Subtotal and Average 4.636 260 Other Banks-Misc.Account-Petty Cash 4.412California ClassCLASS 27,285,683.61 27,285,683.61 4.41227,285,683.61 4.351CLASS PRIME 1 27,285,683.61 4.35127,285,683.6127,285,683.6128,067,935.59Subtotal and Average 4.412 1 4.476191,906,109.51 189,713,802.61 4.538 150188,378,819.30 188,220,147.11Total and Average Page 2 of 13 Page 162 of 255 YTM 365Par Value Book Value Stated RateMarket Value March 31, 2025 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of Gilroy Days to Maturity YTM 360CUSIPInvestment # Purchase Date Wells Fargo Checking 0.000WELLS FARGOWELLS FARGO 1,014,373.96 1,014,373.961,014,373.96 0.000SYSWFB 1 Other Banks-Misc.Account-Petty Cash 0.000CHASE BANKUNDERCOV 698.30 698.3007/01/2024 698.30 0.000SYSUNDERCOV 1 0.000MUFG / UNION BANKMUFG 0.00 0.0007/01/2024 0.00 0.000SYS/MUFG 1 0.000PETTY CASHPETTY 2,661.56 2,661.5607/01/2024 2,661.56 0.000SYSPETTY 1 0.000U. S. BANKUSB-CASH 21,347.16 21,347.1607/01/2024 21,347.16 0.000SYS/USBANK 1 0.000WELLS FARGOBAIL 0.00 0.0007/01/2024 0.00 0.000SYSBAIL 1 0.000WELLS FARGODISCOVERY 131,208.54 131,208.5407/01/2024 131,208.54 0.000SYSDISCOVERY 1 0.000WELLS FARGOICS 86,137.45 86,137.4507/01/2024 86,137.45 0.000SYSICS 1 0.000WORKING CASHWORKING 1,595.00 1,595.0007/01/2024 1,595.00 0.000SYSWORKING 1 0.00 4.448191,935,543.68 190,971,824.58 4.510 150 1Average Balance 189,636,841.27 189,478,169.08Total Cash and Investments Page 3 of 13 Page 163 of 255 City of Gilroy Investments by Issuer City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 (408)846-0294 Grouped by Type - Sorted by Issuer Active Investments March 31, 2025 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date CollateralCUSIPInvestment # Investment Class YTM 365Book Value Type: CHECKING ACCOUNTS CHASE BANK 698.30UNDERCOVSYSUNDERCOV 1Other Banks-Misc.Account-Petty Cash Fair 03/31/2025698.30 698.30698.30Subtotal and Average 1 California Class 27,285,683.61CLASSCLASS PRIME 14.412Other Banks-Misc.Account-Petty Cash Fair 03/31/2025 4.41227,285,683.61 27,285,683.61 4.41227,285,683.61Subtotal and Average 1 LAIF - City of Gilroy 37,894,654.82LAIF01SYSLAIF01 14.300LAIFFair 03/31/2025 4.30037,894,654.82 37,894,654.82 4.30037,894,654.82Subtotal and Average 1 LAIF - Industrial Dev. Auth. 8,734,208.55LAIF03SYSLAIF03 14.300LAIFFair 03/31/2025 4.3008,734,208.55 8,734,208.55 4.3008,734,208.55Subtotal and Average 1 LAIF LIBRARY 5,738,755.63LAIF05LAIF05 14.300LAIFFair 03/31/2025 4.3005,738,755.63 5,738,755.63 4.3005,738,755.63Subtotal and Average 1 MUFG / UNION BANK 0.00MUFGSYS/MUFG 1Other Banks-Misc.Account-Petty Cash Fair 0.00 0.000.00Subtotal and Average PETTY CASH 2,661.56PETTYSYSPETTY 1Other Banks-Misc.Account-Petty Cash Fair 03/31/20252,661.56 2,661.562,661.56Subtotal and Average 1 U. S. BANK 21,347.16USB-CASHSYS/USBANK 1Other Banks-Misc.Account-Petty Cash Fair 03/31/202521,347.16 Page 4 of 13 Page 164 of 255 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Collateral Grouped by Type - Sorted by Issuer Investments by Issuer City of Gilroy CUSIP Investment # Investment Class YTM 365Book Value 21,347.1621,347.16Subtotal and Average 1 WELLS FARGO 1,014,373.96WELLS FARGOSYSWFB 1Wells Fargo Checking Fair 03/31/20251,014,373.96 0.00BAILSYSBAIL 1Other Banks-Misc.Account-Petty Cash Fair 0.00 131,208.54DISCOVERYSYSDISCOVERY 1Other Banks-Misc.Account-Petty Cash Fair 03/31/2025131,208.54 86,137.45ICSSYSICS 1Other Banks-Misc.Account-Petty Cash Fair 03/31/202586,137.45 1,231,719.951,231,719.95Subtotal and Average 1 WORKING CASH 1,595.00WORKINGSYSWORKING 1Other Banks-Misc.Account-Petty Cash Fair 03/31/20251,595.00 1,595.001,595.00Subtotal and Average 1 Type: NOT CALLABLE U. S. TREASURY NOTES 8,182,398.16USB-1191282CGX3 293.875Fair 04/30/202503/31/2025 4.9498,179,368.57 8,795,449.85USB-1491282CAB7 1210.250Fair 07/31/202503/31/2025 5.0398,781,097.09 645,237.72USB-179128284M9 292.875Fair 04/30/202503/31/2025 5.129644,898.38 9,336,380.64USB-2091282CJE2 2135.000Fair 10/31/202503/31/2025 4.4299,323,214.14 9,919,266.47USB-2191282CHN4 1214.750Fair 07/31/202503/31/2025 5.1229,893,416.21 10,713,852.54USB-22912828ZL7 290.375Fair 04/30/202503/31/2025 5.13810,708,446.54 857,050.73USB-2391282CAB7 1210.250Fair 07/31/202503/31/2025 4.786856,092.57 10,227,134.96USB-2491282CAT8 2130.250Fair 10/31/202503/31/2025 4.67010,203,101.98 9,785,001.36USB-2591282CBH3 3050.375Fair 01/31/202603/31/2025 4.5629,755,362.73 9,704,081.76USB-2691282CJV4 3054.250Fair 01/31/202603/31/2025 4.2369,694,758.18 19,308,200.00USB-2791282CBW0 3940.750Fair 04/30/202603/31/2025 4.21619,277,088.11 11,251,462.50USB-283130B4XH9 6744.420 Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Treasury Notes Securities Federal Home Loan Fair 02/04/202703/31/2025 4.42011,250,000.00 108,725,516.69 4.636108,566,844.50Subtotal and Average 259 189,636,841.27 4.480189,478,169.08Total and Average 149 Page 5 of 13 Page 165 of 255 City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 (408)846-0294 City of Gilroy Purchases Report Sorted by Type - Type January 1, 2025 - March 31, 2025 Original Par Value Ending Book Value Sec. TypeType Maturity YTM Accrued Interest at PurchasePayment Periods DateCUSIPInvestment #Issuer Purchase Date Principal Purchased Rate at Purchase NOT CALLABLE 20,000,000.00 0.750 04/30/2026 19,277,088.1119,167,000.00 38,121.5501/31/2025 4.21604/30 - 10/31USTNUSB-2791282CBW0 TRCNOT 11,250,000.00 4.420 02/04/2027 11,250,000.0011,250,000.0002/04/2025 4.42008/04 - 02/04USB-283130B4XH9 TRC FHLBNOT Subtotal 30,527,088.1130,417,000.00 38,121.5531,250,000.00 30,417,000.00Total Purchases 31,250,000.00 38,121.55 30,527,088.11 Page 6 of 13 Page 166 of 255 City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 (408)846-0294 City of Gilroy Maturity Report Sorted by Maturity Date Amounts due during January 1, 2025 - March 31, 2025 Rate at MaturityPar Value Sec. TypeType Maturity Date Maturity ProceedsInterest Income Net CUSIP Investment #Issuer Purchase Date Book Value at Maturity 11,000,000.00 4.501 11,000,000.00500,610.0001/25/2024USTBUSB-19912797JR9 ATDNOT 01/23/2025 0.0011,000,000.00 8,419,000.00 1.375 8,476,880.6357,880.6305/01/2023USTNUSB-10912828Z52 TRCNOT 01/31/2025 57,880.638,419,000.00 506,000.00 2.500 512,325.006,325.0011/07/2023USTNUSB-159128283V0 TRCNOT 01/31/2025 6,325.00506,000.00 19,989,205.63Total Maturities 19,925,000.00 564,815.6319,925,000.00 64,205.63 Page 7 of 13 Page 167 of 255 DESCRIPTION JUN SEP Dec Mar % of Total 2024 2024 2024 2025 Dec LAIF: CITY OF GILROY 42,981,586 29,247,773 42,446,881 37,894,655 20.13% GILROY INDUSTRIAL DEV AGENCY 8,340,144 8,532,782 8,633,796 8,734,209 4.64% GILROY LIBRARY 2010 BOND 5,543,745 5,606,295 5,672,780 5,738,756 3.05% SUB TOTAL 56,865,475 43,386,850 56,753,457 52,367,619 27.82% CALIFORNIA CLASS 27,751,932 26,626,920 26,991,063 27,285,684 14.50% US GOVERNMENTAL AGENCIES: TREASURY NOTES SECURITIES 82,669,517 83,773,381 86,486,293 108,566,845 57.68% TREASURY BILL-AMORTIZING 22,757,163 23,040,185 10,969,743 - 0.00% SUB TOTAL 105,426,680 106,813,566 97,456,037 108,566,845 57.68% GRAND TOTAL (Book Value)190,044,087 176,827,336 181,200,557 188,220,147 100.00% Quarterly Movement over the Last 4 Quarters Page 8 of 13 Page 168 of 255 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 March 2023 June 2023 September 2023 December 2023 March 2024 June 2024 September 2024 December 2024 March 2025 City of Gilroy Investments From: March 31, 2023 to March 31, 2025 LAIF CALIFORNIA CLASS US GOVT. AGENCIES Page 9 of 13 Page 169 of 255 LAIF, $52M, 28% California Class, $27M, 14% Treasury Notes Securities, $109M, 57% Cash or Equivalent, $1M, 1% Book Value by Investment Type As of March 31, 2025 Value of Portfolio: $189,478,169 Page 10 of 13 Page 170 of 255 LAIF, CA Class, Bank Checking Accounts, $80M, 43% Short Term (less than 1 year), $78M, 41% Medium Term (1 to 5 years), $31M, 16% Value of Portfolio: $189,478,169 Portfolio By Maturity As Of March 31, 2025 Page 11 of 13 Page 171 of 255 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 est* Interest Earnings Fiscal Years *Estimate of full year interest earnings for FY24/25 City of Gilroy Interest Earnings FY2015 - FY2025 Page 12 of 13 Page 172 of 255 CITY OF GILROY MONIES HELD BY FISCAL AGENTS DESCRIPTION VALUE ** AS OF 3/31/25 HIGHWAY 152 SPECIAL TAX BONDS SERIES 2018 SPECIAL TAX FUND - Bond REVENUE - HELD BY U.S. BANK - GL Acct 810-10435 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 6,722.92 RESERVE FUND - HELD BY U.S. BANK - GL Acct 810-10430 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 291,494.17 SPECIAL TAX FUND - INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10550 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 0.00 SPECIAL TAX FUND - PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10445 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 0.00 GILROY PUBLIC FACILITIES FINANCING AUTHORITY REFUNDING LEASE REV BONDS 2020A REVENUE FUND - HELD BY U.S. BANK - GL Acct 520-10435 GOLDMAN SACHS FINANCIAL SQUARE MMKT #466, CUSIP #38141W265 1,113.06 INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10440 GOLDMAN SACHS FINANCIAL SQUARE MMKT #466, CUSIP #38141W265 2.06 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10445 GOLDMAN SACHS TR FINL SQ GV ADM #466, CUSIP #38141W265 4.50 GILROY PUBLIC FACILITIES FINANCING AUTHORITY REFUNDING LEASE REV BONDS 2022A INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 510-10440 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31 237.97 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 510-10445 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31 1,096.73 GILROY PUBLIC FACILITIES FINANCING AUTHORITY WASTEWATER REV BONDS 2021A BOND PAYMENT FUND - HELD BY U.S. BANK - GL ACCT 700-10428 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31,872.08 ACQUISITION AND CONSTRUCTION FUND - HELD BY U.S. BANK - GL Acct 700-10426 LAIF MONEY MARKET FUND #5399989H9 8,875,497.91 GILROY POST - SECTION 115 TRUST HELD BY PARS OPEB 998,004.72 PENSION 4,362,711.40 TOTAL 14,537,757.52 ** Market Values Page 13 of 13 Page 173 of 255 City of Gilroy STAFF REPORT Agenda Item Title:Adopt a Resolution Approving the Fiscal Year 2025-26 Road Rehabilitation Projects for Funding by Senate Bill 1, the Road Repair and Accountability Act of 2017 Funds Meeting Date:May 19, 2025 From: Jimmy Forbis, City Administrator Department:Public Works Submitted by:John Doughty, Public Works Director Prepared by:Julie Oates, Engineer STRATEGIC PLAN GOALS:Maintain and Improve City Infrastructure RECOMMENDATION Adopt a Resolution of the City Council of the City of Gilroy adopting a list of projects for Fiscal Year 2025-26 to be funded by SB 1: The Road Repair and Accountability Act of 2017. BACKGROUND Senate Bill 1, (SB 1) (Beall, Chapter 5, Statutes of 2017), The Road Repair and Accountability Act of 2017 provides significant, stable, and ongoing state transportation funding. These are funds dedicated to fixing aging roads and bridges, improving goods movement, and reducing traffic congestion. SB 1 is anticipated to generate $54 billion over the ten years following voter approval, split between state and local agencies. SB 1 enables cities and counties to address significant maintenance, rehabilitation, and safety needs on their local streets and roads system. SB 1 provides approximately $1.5 billion per year for local streets and roads. In providing this funding, the Legislature has increased the role of the California Transportation Commission (Commission), including oversight of SB 1 based on the development of guidelines, review of project lists submitted by cities and counties, reporting to the State Controller, and receiving reports on completed projects. Page 174 of 255 In June 2024, Council approved a resolution and a list of projects to be constructed using the FY25 funding. The FY25 program is expected to be completed in the fall of 2025. The updated list of proposed street segments for paving using FY2025-26 SB 1 funding, consistent with the Council-adopted 5-year paving program, is attached. To date, the City has received $6,204,696 from the State Controller of SB 1 funds. ANALYSIS To receive the available SB 1 funds, the City must adopt the list of SB 1 funded pavement maintenance projects through a resolution. “Projects”, in this case, means a list of streets that we anticipate will receive pavement maintenance with SB 1 funds. Pavement maintenance can be done in one project or combined with other planned pavement maintenance projects. A resolution, listing the streets to be included in the annual SB 1 funded project, is due to the Commission by July 1, 2025. The street segments were selected using the City’s StreetSaver pavement management program and using the Council-directed blended system to identify streets for rehabilitation. Street segments are selected to provide the greatest improvement in the average Pavement Condition Index (PCI) for a given funding level. Staff also considers Average Daily Traffic (ADT), Street Functional Classifications (Residential, Collector, or Arterial), current Pavement Condition Index (PCI), types of treatment required, and geographic equity when selecting streets for inclusion on this list. ALTERNATIVES Council may amend the resolution identifying the projects for funding. This is not recommended, as the project list is developed utilizing the methodology outlined above to develop the list, pulling in several different source data to help maximize the effectiveness of the street segment improvements throughout the City's streets and roads network. FISCAL IMPACT/FUNDING SOURCE The FY 2025-26 SB 1 Road Maintenance and Rehabilitation Account (RMRA) projected revenues of $1.6 million are included as a revenue source for Fund 210 (Road Maintenance and Rehab) in the City’s CIP under Annual Citywide Pavement Rehabilitation Project No. 800060 as part of the FY 2025-26 project budget. SB 1 requires that cities maintain a minimum level of General Fund spending on streets and roads, at levels equal to or greater than their annual average expenditures during FY10, FY11, and FY12, which is known as the “maintenance of effort” (MOE) requirement. The bill authorizes the State Controller’s Office to audit local governments for compliance and subject local governments to reimbursing the state for non- compliance. For Gilroy, per the State Controller’s Office, this amounts to approximately Page 175 of 255 $1.2 million annually from the General Fund (which is the average of 3-year expenditures on street maintenance from FY10 - FY12). The City will meet the required MOE for FY26 as it typically expends more than the required $1.2 million within the street maintenance program funded by the General Fund, and in addition, expends Measure B, SB1, and other Gas Tax funds for the annual pavement rehabilitation project. NEXT STEPS The attached resolution, once approved, will be sent to the California Transportation Commission for approval to allow the City of Gilroy to receive its share of the SB 1 local pavement maintenance funding. Attachments: 1. Draft Resolution No. 2025-XX Page 176 of 255 RESOLUTION 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Gilroy will receive an estimated $1,601,310 in RMRA funding in Fiscal Year 2025-26 from SB 1; and WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list, including the implementation of an online service request portal called “Gilroy Connect” which is available on the City’s website and as a standalone mobile application, and allows residents to submit, track, and monitor requests, including requests for street maintenance and rehabilitation; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment by considering pavement condition, traffic volumes, complete streets, and prioritizing streets in critical disrepair; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate approximately 720,000 square feet of pavement on major collectors and arterials and work towards implementing the complete streets ordinance; and WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in good condition, and this revenue will help us increase the overall quality of our road system and keep our streets and roads in good condition; and Page 177 of 255 WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits for those who live, work, and visit the City of Gilroy. NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Gilroy, as follows: 1. The foregoing recitals are true and correct. 2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues: Project Title: FY26 Citywide Pavement Rehabilitation Project Project Description: Milling and placement of asphalt concrete pavement; adjustment of utilities to grade; roadway striping, signage, and markings; traffic signal loop replacement; and other incidental work. Project Location: The following locations identified are subject to change based on priority needs or available funding: Mantelli Dr from Santa Teresa Blvd to Church St, Monterey Road from Eighth St to Tenth St, Murray Ave from I.O.O.F. Ave to Chestnut St, and Sixth St from Wren Ave to Church St. Estimated Project Schedule: Start in May 2026 to Completion in September 2026 based on the component being funded with RMRA funds Estimated Project Useful Life: 5 to 10 years PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held this 19th day of May, 2025, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Bryce Atkins, City Clerk’s Office Page 178 of 255 City of Gilroy STAFF REPORT Agenda Item Title:Approve the Amended and Restated Funding Agreement Between the City of Gilroy and Santa Clara Valley Transportation Authority for the 2016 Measure B Bicycle and Pedestrian Education and Encouragement Program Meeting Date:May 19, 2025 From: Jimmy Forbis, City Administrator Department:Administration Submitted by:Bryce Atkins, Assistant to the City Administrator Prepared by:Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS:Not Applicable RECOMMENDATION Council approve the agreement. BACKGROUND In November 2016, Santa Clara County voters approved 2016 Measure B, a 30-year, half-cent countywide sales tax devoted to enhancing transit, highways, expressways, and active transportation (bicycles, pedestrian, and complete streets) within Santa Clara County. The ballot states that: (A) Santa Clara Valley Transportation Authority (VTA) would be the administrator of the tax; and (B) 2016 Measure B revenues would fund nine defined program categories of transportation projects. The VTA Board of Directors is responsible for 2016 Measure B policy decisions. One of these program categories is Bicycle Pedestrian Education and Encouragement funding ("Bike and Ped EE"). The City has been the recipient of these funds in years past, and has funded such projects as bike helmets, Bike to Wherever Day events, face masks, and most recently the Bicycle Pedestrian GIS Project. This large project consumed the remaining funds in the Measure B Bike and Ped EE and has the next two years' worth of allocations earmarked to complete the reimbursement for the funds expended on this project. Page 179 of 255 Funding was secured through a contract between VTA and participating cities. The agreement currently establishing the City's access to these funds is set to expire at the end of June. ANALYSIS The existing agreement is set to expire at the end of June 2025. There is a need to ensure that the City maintains eligibility to receive the funding, including completion of the reimbursement for funding spent, and a need for VTA to issue out the funds that are collected under Measure B to be allocated to the City. There are no financial contributions required by the City to access these funds, and no drawbacks to entering into the agreement. Furthermore, there are no significant program changes, as the agreement establishes rules and procedures as they are performed and directed by VTA currently. Therefore, staff recommends the City Council approve of entering into the agreement. Funding is provided through a formula, and agreements with the same terms and funding formulas are entered into with other municipalities in the County. Future allocations may become available for another qualified purpose once the reimbursement is completed. ALTERNATIVES Council may choose to reject the agreement. This is not recommended as the City would no longer have access to these funds. FISCAL IMPACT/FUNDING SOURCE The revenue from this program area has historically been approximately $50,000 per fiscal year, varying based on total tax revenue received that is applicable to the program. It is anticipated that allocations would remain generally similar, adjusting with changes in funding generated through the countywide retail transaction and use tax. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS If approved, staff will process the agreement with VTA. Attachments: Page 180 of 255 1. 2016 Measure B Bike and Ped Education and Encouragement Master Agreement - Amended and Restated - Gilroy Page 181 of 255 Rev 1.17.25 Page 1 of 19 AMENDED AND RESTATED FUNDING AGREEMENT BETWEEN CITY OF GILROY AND SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FOR 2016 MEASURE B BICYCLE & PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM THIS AMENDED AND RESTATED FUNDING AGREEMENT (“AGREEMENT”) is entered into as of July 1st, 2025 (“EFFECTIVE DATE”) and is by and between the CITY OF GILROY (“RECIPIENT”) and SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (“VTA”). RECIPIENT and VTA may be individually referred to as “PARTY” or collectively referred to as “PARTIES.” I. RECITALS 1. Whereas, on June 24, 2016, the VTA Board of Directors (“VTA BOARD”) adopted a resolution to place a ballot measure before the voters of Santa Clara County (“SCC”) in November 2016 to authorize a one-half of one percent retail transaction and use tax (“2016 MEASURE B”) for 30 years for nine transportation-related program categories; 2. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE B for 30 years to pay for the nine transportation-related program categories; 3. Whereas, on October 5, 2017, the VTA BOARD established the 2016 Measure B Program (“PROGRAM”) and adopted the 2016 Measure B Program Category Guidelines (“GUIDELINES”). In addition, VTA established a program manual (“PROGRAM MANUAL”). Both the GUIDELINES and the PROGRAM MANUAL are incorporated into this Agreement by this reference and available at www.vta.org or upon request to VTA; 4. Whereas, the PROGRAM includes a Bicycle & Pedestrian program category (“BIKE/PED CATEGORY”) to fund bicycle and pedestrian projects and educational programs; 5. Whereas, the BIKE/PED CATEGORY consists of three sub-categories, including the education & encouragement program (“BIKE/PED E&E PROGRAM”); 6. Whereas, the duration of 2016 MEASURE B will be 30 years from the initial year of collection, beginning April 1, 2017, and continuing through March 31, 2047; 7. Whereas, the PARTIES executed a funding agreement for the BIKE/PED E&E PROGRAM funds on November 20, 2019 which expires on June 30, 2025 (“PRIOR AGREEMENT”); and 8. Whereas, the PARTIES desire to amend and restate the PRIOR AGREEMENT to, among other things, specify the terms and conditions under which VTA will administer BIKE/PED E&E PROGRAM funds allocated to VTA and RECIPIENT through the life of the PROGRAM. NOW, THEREFORE, in consideration of the mutual promises contained in this AGREEMENT, the PARTIES agree as follows: Page 182 of 255 Rev 1.17.25 Page 2 of 19 II. AGREEMENT 1. BIKE/PED E&E PROGRAM DEFINITION The BIKE/PED E&E PROGRAM covers activities and the development and distribution of materials that are designed and intended to satisfy the following goals within RECIPIENT’s jurisdiction: (i) promote, educate, and/or encourage safe walking or bicycling for residents or visitors of every age and ability; (ii) communicate to residents and visitors the benefits of walking and bicycling; and (iii) communicate to school children, residents, and visitors the rights and responsibilities of pedestrians, bicyclists, and motorists. 2. TERM OF AGREEMENT The term of this AGREEMENT will commence on the EFFECTIVE DATE and continue through March 31, 2047, or until BIKE/PED E&E PROGRAM CATEGORY funds allocated to RECIPIENT have been expended entirely, whichever occurs later. Notwithstanding the foregoing, the PARTIES may terminate this AGREEMENT pursuant to Section II, Paragraph 13. 3. ELIGIBLE USE OF FUNDS A. RECIPIENT may use RECIPIENT’s allocated BIKE/PED E&E PROGRAM funds only for activities/projects that (i) are offered/available to individuals who live, work, or attend school in RECIPIENT’S boundaries or school districts, and (ii) VTA has pre-approved in writing (each, an “E&E PROJECT”). Only VTA’s AUTHORIZED REPRESENTATIVE (defined in Section II, Paragraph 15 below), or designee, has authority to approve an E&E PROJECT. B. VTA will consider for approval the following types of activities / projects: i. Organization and implementation of K-12 Safe Routes to Schools programs and activities. ii. Organization and implementation of Vision Zero programs. “Vision Zero” is defined by the Vision Zero Network campaign as the “Strategy to eliminate all traffic fatalities and severe injuries while increasing safe, healthy, equitable mobility for all,” which definition is adopted for purposes of this AGREEMENT. iii. Organization and implementation of open streets events. “Open streets events” are defined by the Open Streets Project (an advocacy project and collaboration between 8 80 Cities and Street Plans) as “Programs that temporarily open streets to people by closing them to cars,” which definition is adopted for purposes of this AGREEMENT. iv. Creation and implementation of marketing to encourage mode shift towards active transportation. v. Development and distribution of maps that promote places to walk or bike. vi. Education of walking and bicycling skills to adults and children. vii. Working with law enforcement officials to ensure common understanding and consistent application among law enforcement officials of traffic laws related to biking and walking. viii. Organization and implementation of broad or targeted safety campaigns to promote safe driving, walking, and bicycling behavior.* Page 183 of 255 Rev 1.17.25 Page 3 of 19 ix. Creation and distribution of marketing materials to encourage safe walking, biking, and driving.* x. Purchase and distribution of bicycle helmets, lights, reflective vests, or other bicycle/pedestrian safety equipment to be used in education/encouragement activities. xi. Purchase and distribution of incentives for education/encouragement activities. xii. Organization and implementation of crosswalk stings or other activities that educate roadway users on traffic laws. Crosswalk stings are activities conducted by law enforcement to educate the public about crosswalk right of way laws that may or may not include citations. xiii. Organization and implementation of special community events focused on achieving the BIKE/PED E&E PROGRAM goals described in Section II, Paragraph 1, such as community rides or walks. xiv. Energizer stations and other Bike to Wherever Day activities. xv. Implementation of valet bicycle parking. xvi. Community-based bicycle/pedestrian surveys of facilities and surrounding areas to learn, observe, and identify bicycle and pedestrian hot spots. xvii. Any other program or activity VTA pre-approves in writing. *Any safety campaign or public service announcement targeted to motorists must focus on safe, responsible, and respectful motorist interactions with pedestrians and bicyclists. C. RECIPIENT is permitted to use BIKE/PED E&E PROGRAM funds allocated for (i) direct costs and staff time costs incurred by RECIPIENT to support E&E PROJECTS, and (ii) costs incurred for evaluation of the E&E PROJECTS (as required under Section II, Paragraph 4). D. Notwithstanding any other provision of this AGREEMENT, RECIPIENT is not permitted to use BIKE/PED E&E PROGRAM funds for capital improvements. E. E&E PROJECTS may be targeted and limited to specific demographics including, but not limited to, school children, seniors, or people with disabilities to the extent not prohibited by applicable law. F. Only BIKE/PED E&E PROGRAM costs incurred by RECIPIENT on or after July 1, 2017, will be eligible for reimbursement. 4. EVALUATION REQUIREMENTS A. RECIPIENT must identify (i) the project reach and scale of each E&E PROJECT and (ii) one or more metric(s) that will be used to evaluate whether the goal was achieved. Examples of acceptable metrics are set forth in Attachment A, attached hereto and incorporated herein. B. RECIPIENT must identify and obtain VTA’s prior written approval of the frequency and schedule of each E&E PROJECT evaluation. Page 184 of 255 Rev 1.17.25 Page 4 of 19 5. MAXIUMUM FUNDING ALLOCATIONS A. RECIPIENT’S maximum funding allocation for each fiscal year (July 1st through June 30th of the following calendar year) will be based upon the VTA BOARD’s Adopted Biennial Budget for the BIKE/PED E&E PROGRAM and the annual fund distribution formula described below. B. Annual Fund Distribution Formula. The BIKE/PED E&E PROGRAM annual fund distribution formula is calculated every two fiscal years (in line with VTA’s budget cycle) and is based on the following: i. First, at the same time that VTA plans and finalizes its budget for the two upcoming fiscal years, the VTA BOARD determines the allocation of 2016 MEASURE B funds for the two upcoming fiscal years. ii. Second, the VTA BOARD determines the amount of 2016 MEASURE B funds to be allocated amongst the PROGRAM categories and subcategories, including the BIKE/PED E&E PROGRAM CATEGORY. iii. Third, an allocation is made to VTA and the County of Santa Clara for countywide (with respect to Santa Clara County) BIKE/PED E&E PROGRAM activities (“COUNTYWIDE ACTIVITIES”). Per the GUIDELINES, COUNTYWIDE ACTIVITIES will receive 25% of available BIKE/PED E&E POGRAM funds. iv. Fourth, the 2016 Measure B funds remaining for the BIKE/PED E&E PROGRAM category allocation are calculated by deducting the amount allocated for COUNTYWIDE ACTIVITIES in subparagraph (iii), immediately above, from the total BIKE/PED E&E PROGRAM category allocation (“REMAINING FUNDS”). v. Fifth, VTA determines the percentage of the total population of SCC (“TOTAL SCC POP”) of each city (“CITY POP”) and of the unincorporated areas of SCC (“SCC UNINCORP POP”) to determine allocations to each city. For purposes of these calculations, the TOTAL SCC POP includes unincorporated areas and is based on the then most current California Department of Finance’s more current annual population estimates at the time of allocation determination, i.e., Report E-1, or any successor report. Each CITY POP is divided by the TOTAL SCC POP, and then the result is multiplied by 100. The result for each city is the “CITY PERCENTAGE SHARE” (for SCC, the ”SCC PERCENTAGE SHARE”). vi. SIXTH, each CITY PERCENTAGE SHARE (including the SCC PERCENTAGE SHARE) is multiplied by the REMAINING FUNDS to determine the dollar amount that would be allocated to each city based on their CITY PERCENTAGE SHARE; however, no allocation is yet made at this step. Cities that would receive less than $10,000 as a result of the calculation described in Subsection (v) will be identified as low population cities (“LOW POP CITIES”). vii. Seventh, each city is allocated $10,000 (“10K ALLOCATIONS”). LOW POP CITIES will not be allocated any additional funds beyond the 10K ALLOCATIONS made to each city as described in this Subsection (vii). The minimum 10k ALLOCATIONS will continue through fiscal year 2025. Following fiscal year 2025, the minimum allocated to LOW POP CITIES will increase by Page 185 of 255 Rev 1.17.25 Page 5 of 19 $2,000 every five years. See the “LOW POP CITES ALLOCATION SCHEDULE” included in this AGREEMENT as Attachment B, attached hereto and incorporated herein. viii. Eighth, the modified REMAINING FUNDS are calculated by subtracting the cumulative total of allocations made to LOW POP CITIES from the REMAINING FUNDS (“MOD REMAINING FUNDS”). ix. Ninth, a modified Santa Clara County population is calculated by deducting the SCC UNINCORP POP and all LOW POP CITIES from the TOTAL SCC POP (“MODIFIED POPULATION”). x. Tenth, a modified population percentage share (“MOD CITY PERCENTAGE SHARE”) is calculated for all cities that are not LOW POP CITIES (“NON-LOW POP CITIES”) by dividing the NON-LOW POP CITY’S total population by the MODIFIED POPULATION and multiplying the result by 100. xi. Eleventh, each NON-LOW POP CITY’S MOD CITY PERCENTAGE SHARE is multiplied by the MOD REMAINING FUNDS to calculate each NON-LOW POP CITY’s additional allocation of 2016 Measure B funds for the BIKE/PED E&E PROGRAM category. This allocation will be made in addition to the 10K ALLOCATION described above. C. RECIPIENT’s allocations are subject to change based on allocations made by the VTA BOARD pursuant to the PROGRAM. D. BIKE/PED E&E PROGRAM allocations may be banked and remain unspent for a maximum of three fiscal years, provided that (i) RECIPIENT provides VTA with a satisfactory explanation for why the allocation is not being spent and (ii) VTA provides RECIPIENT with written approval for such explanation. In this instance, RECIPIENT must begin drawing funds during the fourth fiscal year. Following the third fiscal year of banked allocations and within the fourth fiscal year, RECIPIENT must provide to VTA the required documentation as described in Section II, Paragraph 7. In this fourth fiscal year, RECIPIENT must submit, at minimum, one invoice for funds towards an E&E PROJECT. If RECIPIENT fails to do the above by the end of the fourth fiscal year and no funds have been spent in the past four consecutive fiscal years, then allocations will be returned by VTA to the pool of 2016 MEASURE B funds allocated to the BIKE/PED E&E PROGRAM category for redistribution in the next allocation cycle pursuant to the formula above. E. All funds will be available to RECIPIENT on a reimbursement basis only. Page 186 of 255 Rev 1.17.25 Page 6 of 19 6. VTA’s OBLIGATIONS VTA will: A. Annually report to the public the amount of BIKE/PED E&E PROGRAM revenues allocated and distributed to RECIPIENT. B. Annually report to the public a summary of E&E PROJECT evaluation metrics submitted by RECIPIENT, as required in Section II, Paragraph 4. C. Conduct an assessment regarding the effectiveness of the BIKE/PED E&E PROGRAM using approved metrics and data provided by RECIPIENT (pursuant to Section II, Paragraph 4) related to RECIPIENT’s E&E PROJECT(s). D. Biennially, or however frequently as VTA determines is appropriate based upon the number of ongoing E&E PROJECTs, report to the public the effectiveness of the BIKE/PED E&E PROGRAM based on the assessment described immediately above in Section II, Paragraph 6(C). E. Remit the amount due to the RECIPIENT under an invoice within thirty (30) calendar days of receipt of a complete and proper, fully documented invoice complying with the requirements set forth herein. 7. RECIPIENT’s OBLIGATIONS RECIPIENT must: A. Comply with 2016 Measure B reporting requirements. B. Ensure that all 2016 MEASURE B funds are expended on allowable BIKE/PED E&E PROGRAM expenditures as described above in Section II, Paragraph 3, ELIGIBLE USE OF FUNDS. C. Annually complete and submit to VTA, by October 1st of each year, RECIPIENT’s proposed work program for the BIKE/PED E&E PROGRAM, in which RECIPIENT must set forth proposed E&E PROJECTS and develop all such E&E PROJECTS that are approved by VTA as eligible. RECIPIENT’s proposed metrics and frequency of E&E PROJECT evaluation must be included with the proposed work program (see Section II, Paragraph 4); VTA must provide approval of the proposed metrics and frequency of evaluation. D. Annually submit to VTA, by October 1st of each year, a summary of the prior fiscal year’s completed E&E PROJECTS. E. Submit to VTA, on a frequency as approved by VTA, the evaluation of the completed E&E PROJECTS pursuant to Section II, Paragraph 4. F. If applicable, annually submit to VTA, by October 1st of each year, an explanation of why no BIKE/PED E&E PROGRAM funds are planned for expenditure during the upcoming fiscal year. Page 187 of 255 Rev 1.17.25 Page 7 of 19 G. Annually complete and submit to VTA, by October 1st of each year, any accompanying reporting requirements for the BIKE/PED E&E PROGRAM. H. Submit to VTA all records including contractors’ invoices, miscellaneous invoices, and force account charges as substantiation for invoices submitted to VTA for reimbursement hereunder. I. Maintain financial records, books, documents, papers, accounting records, and other evidence pertaining to costs related to this AGREEMENT for five (5) years. RECIPIENT shall make such records available to VTA upon VTA’s written request for review and audit purposes. Financial audits will be performed at VTA’s sole discretion. J. Submit invoices to VTA, no more frequently than monthly, for reimbursement of eligible E&E PROJECT costs (see Section II, Paragraph 3) RECIPIENT must submit invoices within one year of the date RECIPIENT incurs the cost submitted on the invoice for reimbursement (unless otherwise approved by VTA in writing). K. At all times during this AGREEMENT, RECIPIENT must comply with the insurance requirements and specifications of the attached Attachment C, Insurance Requirements. RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C. 8. INDEMNIFICATION Neither VTA nor any officer or employee thereof will be responsible for any damage or liability arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct under or in connection with any work, authority, or jurisdiction associated with this AGREEMENT. Pursuant to California Government Code §895.4, RECIPIENT must fully defend, indemnify, and hold harmless VTA from all suits or actions of every name, kind, and description arising from an injury (as defined by California Government Code §810.8) arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT. This provision will survive the termination or expiration of this AGREEMENT. 9. INSURANCE At all times during this Agreement, RECIPIENT must comply with the insurance requirements and specifications of Attachment C, Insurance Requirements, attached hereto and incorporated herein. RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C. 10. ADDITIONAL INSURED AND INDEMNITY PROVISION In any agreement executed between the RECIPIENT and a third party for purposes related in any way to the subject matter of this Agreement (“Third Party Contract”), RECIPIENT must require that VTA be named as (i) an additional insured on a primary and non-contributory basis with separation of insureds and waiver of subrogation on all policies of insurance, except when not applicable and (ii) an indemnified party in any indemnity provision contained in the Third Party Contract. Third Party Contracts must contain insurance requirements with coverages at least as broad as, and limits at least as great as, the requirements of Attachment C. Page 188 of 255 Rev 1.17.25 Page 8 of 19 11. COMPLIANCE WITH APPLICABLE LAW In execution of any E&E PROJECT and performance of its responsibilities set forth herein, RECIPIENT must comply with all applicable requirements of local, state, and federal law. 12. COMPLIANCE WITH 2016 MEASURE B REQUIREMENTS A. In its performance under this AGREEMENT, RECIPIENT must comply, and must ensure E&E PROJECT compliance, with all PROGRAM requirements including, but not limited to, the GUIDELINES and PROGRAM MANUAL. B. VTA may, in its sole discretion, make changes to the GUIDELINES and/or the PROGRAM MANUAL at any time. If VTA makes such changes, VTA will notify RECIPIENT within a reasonable time of such changes. 13. TERMINATION A. Either PARTY may at any time terminate this Agreement by giving ten (10) business days written notice of such termination to the other PARTY. Notice must identify the effective date of such cancellation and must be provided in accordance with the terms and conditions of this AGREEMENT. B. In the event of termination under this section, City must submit its final invoice to VTA within thirty (30) calendar days of the effective date of termination, and such invoice will be solely for ELIGIBLE COSTS RECIPIENT incurred prior to termination. 14. AUDITS AND RECORDS A. RECIPIENT must maintain, and must require their contractors to maintain, in accordance with generally accepted accounting principles and practices, complete books, accounts, records, and data pertaining to services performed under this AGREEMENT, including the costs of contract administration. Such documentation must be supported by properly executed payrolls, invoices, contracts, and vouchers evidencing in detail the nature and propriety of any charges and must be sufficient to allow a proper audit of services. All checks, payrolls, invoices, contracts, and other accounting documents pertaining in whole or in part to the services must be clearly identified and readily accessible. B. For the duration of the AGREEMENT, and for a period of five years after final payment, each PARTY and its representatives must have access during normal business hours to any books, accounts, records, data, and other relevant documents (“RECORDS”) of the other PARTY that are pertinent to this AGREEMENT for audits, examinations, excerpts, and transactions. The other PARTY must furnish copies of the RECORDS upon request. 15. NOTICES / AUTHORIZED REPRESENTATIVES A. Notices. Any notice which may be required under this AGREEMENT (i) must be in writing, (ii) will be effective one (1) business day after personal service or delivery by certified mail, and (iii) must be given by personal service or certified mail the other PARTY’S AUTHORIZED REPRESENTATIVE at the addresses set forth below, or to such other address that may be specified in writing by a PARTY. Page 189 of 255 Rev 1.17.25 Page 9 of 19 B. Authorized Representatives. VTA: Marcella Rensi Deputy Director, Programming and Grants Santa Clara Valley Transportation Authority 3331 N First Street San Jose, CA 95134 Email: marcella.rensi@vta.org RECIPIENT: City Administrator City of Gilroy 7351 Rosanna Street Gilroy, CA, 95020 Email: jimmy.forbis@cityofgilroy.org Written notification to the other PARTY must be provided, in advance, for changes in the name or address of the individuals identified above. The individual identified above for RECIPIENT is RECIPIENT’s BIKE/PED E&E PROGRAM Liaison (“LIAISON”). The LIAISON shall be (i) the liaison to VTA pertaining to implementation of this AGREEMENT and (ii) the contact for information about the BIKE/PED E&E PROGRAM and E&E PROJECTS. 16. GENERAL TERMS AND CONDITIONS A. Headings. The subject headings of the articles and paragraphs in this AGREEMENT are included for convenience only and will not affect the construction or interpretation of any of its provisions. B. Incorporation of Exhibits and Attachments. All exhibits and attachments referenced in this AGREEMENT are incorporated into it by this reference. C. Construction and Interpretation of Agreement. This AGREEMENT, and each of its provisions, terms, and conditions, has been reached as a result of negotiations between the PARTIES. Accordingly, each PARTY expressly acknowledges and agrees that (i) this AGREEMENT will not be deemed to have been authored, prepared, or drafted by any particular PARTY and (ii) the rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this AGREEMENT or in the resolution of disputes. D. Amendment. No alteration or variation of the terms of this AGREEMENT will be valid unless made in writing and signed by both of the PARTIES hereto, and no oral understanding or AGREEMENT not incorporated herein will be binding on any of the PARTIES hereto. E. Entire Agreement. This AGREEMENT constitutes the entire agreement between the PARTIES relating to the subject matter and supersedes all prior negotiations, contracts, agreements, or understandings, whether oral or written, of the PARTIES regarding the subject matter. Page 190 of 255 Rev 1.17.25 Page 10 of 19 F. Representation of Authority. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT. G. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms, covenant, and conditions of this AGREEMENT will not be deemed a waiver of any right or remedy that either PARTY may have, and will not be deemed a waiver of either PARTY’s right to require strict performance of all of the terms, covenants, and conditions hereunder. H. Dispute Resolution. a. If a question or allegation arises regarding (i) interpretation of this AGREEMENT or its performance, or (ii) the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the other PARTY. The PARTIES must promptly meet in an effort to resolve the issues raised. If the PARTIES fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the PARTIES to avoid litigation as a method of dispute resolution to the greatest extent possible. b. Notwithstanding the foregoing, nothing in this Paragraph 16 will be deemed to prevent a PARTY from filing suit or an administrative action to preserve its right to assert a claim within any applicable statute of limitations. To the extent practicable, the PARTIES will negotiate in good faith to create a tolling agreement to toll such statute(s) of limitations to allow for the PARTIES to engage in dispute resolution provisions of this AGREEMENT prior to filing of such actions. I. Severability. If any term, covenant, condition or provision of this AGREEMENT, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and provisions of this AGREEMENT, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. J. Governing Law. The laws of the State of California will govern this AGREEMENT, as well as any claim that might arise between RECIPIENT and VTA, without regard to conflict of law provisions. K. Venue. Any lawsuit or legal action arising from this AGREEMENT must be commenced and prosecuted in the courts of Santa Clara County, California. RECIPIENT agrees to submit to the personal jurisdiction of the courts located in Santa Clara County, California for the purpose of litigating all such claims. L. Use of Work. All PARTIES may retain a copy of all material produced under this AGREEMENT for use in their general activities. M. Attribution to VTA. RECIPIENT must include attribution to VTA that indicates part of the work was funded by PROGRAM Funds. This provision applies to any project or publication that was funded in part or in whole by PROGRAM Funds. Acceptable forms of attribution include 2016 MEASURE B’s branding on E&E PROJECT-related documents, public information materials, and any other applicable documents. VTA will provide Program branding to RECIPIENT. Page 191 of 255 Rev 1.17.25 Page 11 of 19 N. Non-discrimination. The PARTIES and any contractors performing services on behalf of the PARTIES (“CONTRACTORS”) will not unlawfully discriminate or permit discrimination, harass, or allow harassment against any person or group of persons because of race, color, religious creed, national origin, ancestry, age (over 40), sex, gender, gender identity, gender expression, sexual orientation, marital status, pregnancy or childbirth (including related conditions), medical condition (including cancer), mental disability, physical disability (including HIV and AIDS), genetic information, or military and veteran’s status, or in any manner prohibited by federal, state, or local laws. In addition, the PARTIES and CONTRACTORS must not unlawfully deny any of their employees family care leave to which they are entitled or discriminate against such employees on the basis of having to use family care leave. The PARTIES and CONTRACTORS must ensure that the evaluation and treatment of their employees and applicants for employment is free of such discrimination and harassment. O. Relationship of the Parties. It is understood that this is an AGREEMENT by and between independent parties and does not create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship other than that of independent contractor. P. Execution in Counterparts / Electronic Signature. This AGREEMENT may be executed in one or more counterparts, each of which will be deemed an original but all of which will constitute one and the same instrument. An electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a copy of an original signed contract that meets the admissibility standards of a writing described in Evidence Code §1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by each of the Parties. Q. Authority to Execute Agreement. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT. R. Third Party Beneficiaries. This AGREEMENT does not, and is not intended to, confer any rights or remedies upon any person or entity other than the PARTIES. S. Survival. All representations, warranties, and covenants contained in this AGREEMENT, or in any instrument, certificate, exhibit, or other writing intended by the PARTIES to survive this AGREEMENT, shall survive the termination or expiration of this AGREEMENT, including but not limited to all terms (1) providing for indemnification; (2) relating to the California Public Records Act; (3) relating to maintenance of data; and (4) relating to PARTIES’ obligations upon and following termination or expiration of this AGREEMENT. Signatures of PARTIES on following page. Page 192 of 255 Rev 1.17.25 Page 12 of 19 IN WITNESS WHEREOF, VTA and RECIPIENT have caused their undersigned, duly authorized signatories to execute this AMENDED AND RESTATED FUNDING AGREEMENT as of the EFFECTIVE DATE. SANTA CLARA VALLEY CITY OF GILROY TRANSPORTATION AUTHORITY Carolyn M. Gonot Jimmy Forbis City Administrator General Manager/CEO Date Date Approved as to Form Approve as to Form Evelynn Tran General Counsel Andrew L. Faber, Esq. City Attorney Date Date Attest: Bryce Atkins Acting City Clerk Date Page 193 of 255 Rev 1.17.25 Page 13 of 19 ATTACHMENT A Example Evaluation Requirement Metrics Evaluation metrics include, but are not limited to, the ones used below. • Project reach - A metric measuring the total number of people or entities that participated in the activity or received a physical item provided by the program. o Hypothetical Example: Online media safety campaign had 10,000 unique views, resulting in 2,000 people taking the “I will drive, walk, and bike safely and responsibly” pledge. • Mode shift - A metric measuring the change in the number or percentage of people who replaced another mode of transportation with walking or biking. o Hypothetical Example: At the end of the school year, 200 bicycles were counted in the bike cage, an increase of 20% over the number of bicycles counted at the beginning of the year. • Behavior change - A metric measuring the change in the number or percentage of people who changed their travel habits, including but not limited to frequency of walking or biking. o Hypothetical Example: Individualized marketing packets were provided to 1,200 households. 200 households requested additional information. Before and after surveys showed that 5% of households that requested additional information switched to biking, walking, or taking transit more. • Safety improvements – A metric measuring the change in risky/safe behavior or the change in crashes. o Hypothetical Example: After the crosswalk sting, motorists were observed yielding to pedestrians 8 out of 10 times, an increase of 10% over the yielding rate before the crosswalk sting. However, these rates decreased over time, suggesting that continued events or infrastructure changes are needed to permanently improve driver behavior. • Community Engagement – A metric measuring the number or percentage of people who become involved in a program on an ongoing basis. o Hypothetical Example: At the end of five Train the Trainer events, of the 25 trainees, ten agree to lead Safe Routes to School activities at their schools. Page 194 of 255 Rev 1.17.25 Page 14 of 19 ATTATCHMENT B LOW POP CITES ALLOCATION SCHEDULE Cities that would receive less than $10,000 as a result of the allocation calculations are instead allocated $10,000 minimum per fiscal year. The minimum $10,000 allocation will continue through fiscal year 2028. Following fiscal year 2028, the minimum allocated to LOW POP CITIES will increase every biennial budget cycle. The allocation schedule starting fiscal year 2028 is as follows: Fiscal Year (FY) Allocation Amount to LOW POP CITIES FY 2028 $12,000 FY 2029 $12,000 FY 2030 $12,000 FY 2031 $12,000 FY 2032 $12,000 FY 2033 $12,000 FY 2034 $14,000 FY 2035 $14,000 FY 2036 $14,000 FY 2037 $14,000 FY 2038 $14,000 FY 2039 $14,000 FY 2040 $16,000 FY 2041 $16,000 FY 2042 $16,000 FY 2043 $16,000 FY 2044 $16,000 FY 2045 $16,000 FY 2046 $18,000 FY 2047 $18,000 Page 195 of 255 Rev 1.17.25 Page 15 of 19 ATTACHMENT C INSURANCE REQUIREMENTS RECIPIENT’S ATTENTION IS DIRECTED TO THE INSURANCE REQUIREMENTS BELOW. IT IS HIGHLY RECOMMENDED THAT RECIPIENT CONFER WITH THEIR INSURANCE CARRIERS OR BROKERS IN ADVANCE OF PROPOSAL SUBMISSION TO DETERMINE THE AVAILABILITY OF INSURANCE CERTIFICATES AND ENDORSEMENTS REQUIRED BY THIS AGREEMENT. INSURANCE Without limiting RECIPIENT’s obligation to indemnify and hold harmless VTA, RECIPIENT must procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by RECIPIENT, its agents, representatives, or employees, or subcontractors. The cost of such insurance must be included in AGREEMENT price. In the event of any material change in the AGREEMENT Scope of Services, VTA reserves the right to change the insurance requirements set forth herein. RECIPIENT must furnish complete copies of all insurance policies, within three (3) business days of any request for such by VTA. A. Liability and Workers’ Compensation Insurance 1. Minimum Scope of Coverage Coverage must be at least as broad as: a. Insurance Services Office General Liability coverage (“occurrence” form CG 0001). General Liability insurance written on a “claims made” basis is not acceptable. b. Insurance Services Office Business Auto Coverage, Insurance Services Office form number CA 0001, covering Automobile Liability, code 1 “any auto.” Auto Liability written on a “claims- made” basis is not acceptable. c. Workers’ Compensation insurance as required by the Labor Code of the State of California, and Employer’s Liability insurance. d. Professional Liability, including limited contractual liability coverage, covering liability arising out of any negligent act, error, mistake or omission in the performance of RECIPIENT’s services under this AGREEMENT. This coverage must be continuously maintained for a minimum of two (2) years following completion of this AGREEMENT. This coverage may be written on a “claims made” basis, if so, please see special provisions in Section B. 2. Minimum Limits of Insurance RECIPIENT must maintain limits no less than: Page 196 of 255 Rev 1.17.25 Page 16 of 19 a. General Liability (including Umbrella/Excess insurance): $2,000,000 limit per occurrence for bodily injury, personal injury, and property damage. If a General Liability or other form with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. This requirement may be satisfied by a combination of General Liability insurance with Excess or Umbrella policies, but in no event may the General Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down”. b. Automobile Liability $1,000,000 limit per accident for bodily injury and property damage. c. Workers’ Compensation and Employer’s Liability: Statutory Workers’ Compensation limits and Employer’s Liability limits of $1,000,000 per accident. d. Professional Liability: $2,000,000 each occurrence/aggregate minimum limit per claim. This requirement may be satisfied by a combination of Professional Liability insurance with Excess or Umbrella policies, but in no event may the Professional Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision. 3. Self-Insured Retention The certificate of insurance must disclose the actual amount of any deductible or self-insured retention, or lack thereof, for all coverages required herein. Any self-insured retention or deductible in excess of $50,000 ($100,000 if RECIPIENT is a publicly-traded company) must be declared to and approved by VTA. If RECIPIENT is a governmental authority such as a state, municipality or special district, self-insurance is permitted. To apply for approval for a level of retention or deductible in excess of $50,000, RECIPIENT must provide a current financial report including balance sheets and income statements for the past three years, so that VTA can assess RECIPIENT’s ability to pay claims falling within the self-insured retention or deductible. Upon review of the financial report, if deemed necessary by VTA in its sole discretion, VTA may elect one of the following options: to accept the existing self-insured retention or deductible; require the insurer to reduce or eliminate the self-insured retention or deductible as respects VTA, its directors, officers, officials, employees and volunteers; or to require RECIPIENT to procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Applicable costs resulting therefrom will be borne solely by RECIPIENT. RECIPIENT may request execution of a nondisclosure agreement prior to submission of financial reports. B. Claims Made Provisions (not applicable to General Liability or Automobile Liability) Claims-made coverage is never acceptable for General Liability or Auto Liability. Claims-made may be considered for Professional, Environmental/Pollution, or Cyber Liability. If coverage is written on a claims-made basis, the Certificate of Insurance must clearly state so. In addition to all other coverage requirements, such policy must provide that: Page 197 of 255 Rev 1.17.25 Page 17 of 19 1. The policy must be in effect as of the date of this AGREEMENT and the retroactive date must be no later than the date of this AGREEMENT. 2. If any policy is not renewed or the retroactive date of such policy is to be changed, RECIPIENT must obtain or cause to be obtained the broadest extended reporting period coverage available in the commercial insurance market. This extended reporting provision must cover at least two (2) years. 3. No prior acts exclusion may be added to the policy during the contract period. 4. The policy allows for reporting of circumstances or incidents that might give rise to future claims. C. Other Provisions The policies must contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability a. VTA, its directors, officers, officials, employees and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of RECIPIENT, including VTA’s general supervision of RECIPIENT; products and completed operations of RECIPIENT and its subcontractors; premises owned, occupied or used by RECIPIENT; or automobiles owned, leased, hired or borrowed by RECIPIENT. The coverage must contain no special limitations on the scope of protection afforded to VTA, its directors, officers, officials, employees, or volunteers. Additional Insured endorsements must provide coverage at least as broad as afforded by the combination of ISO CG 20 10 10 01 and CG 20 37 10 01. b. Any failure to comply with reporting provisions of the policies may not affect coverage provided to VTA, its directors, officers, officials, employees, or volunteers. c. RECIPIENT’s insurance must apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The General Liability General Aggregate limit must apply per project, not per policy. e. The General Liability policy must be endorsed to remove the exclusion for railroad liabilities, with coverage at least as broad as afforded by ISO CG 24 17. 2. All Coverages a. The insurer must agree to waive all rights of subrogation against VTA, its directors, officers, officials, employees, and volunteers for losses arising from work performed by RECIPIENT and its subcontractors for VTA. Page 198 of 255 Rev 1.17.25 Page 18 of 19 b. RECIPIENT’s insurance coverage must be primary insurance as respects VTA, its directors, officers, officials, employees, and volunteers. Self-insurance or insurance that may be maintained by VTA, its directors, officers, officials, employees, or volunteers may apply only as excess to RECIPIENT’s insurance. RECIPIENT’s insurance must not seek contribution from VTA’s insurance program. 3. Other Insurance Provisions a. The Certificate must disclose the actual amount of the Deductible or Self-Insured Retention b. If any coverage forms or endorsements required by this AGREEMENT are updated by their publishers, whether they be the insurance carrier(s), the Insurance Services office, or the American Association of Insurance Services, during the duration of this AGREEMENT, VTA reserves the rights to require RECIPIENT to procure said coverage forms or endorsements using the updated versions upon the next renewal cycle. D. Acceptability of Insurers Insurance and bonds must be placed with insurers with an A.M. Best’s rating of no less than A VII (financial strength rating of no less than A and financial size category of no less than VII), unless specific prior written approval has been granted by VTA. E. Certificates of Insurance RECIPIENT must furnish VTA with a Certificate of Insurance. The certificates for each insurance policy are to be signed by an authorized representative of that insurer. The certificates must be issued on a standard ACORD Form. The RECIPIENT must instruct their insurance broker/agent to submit all insurance certificates and required notices electronically in PDF format to Insurance.certificates@vta.org. All endorsements must be attached to the ACORD certificate in a single PDF document. The certificates must (1) identify the insurers, the types of insurance, the insurance limits, the SIRs/deductibles or lack thereof and the policy term, (2) include copies of all the actual policy endorsements required herewith, and (3) in the “Certificate Holder” box include: Santa Clara Valley Transportation Authority (“VTA”) 3331 North First Street San Jose, CA 95134-1906 In the Description of Operations/Locations/Vehicles/Special Items Box, the VTA Contract number must appear, the list of policies scheduled as underlying on the Umbrella/Excess policy must be listed, Certificate Holder must be named as additional insured, and Waiver of Subrogation must be indicated as endorsed to all policies as stated in the Contract Documents. Page 199 of 255 Rev 1.17.25 Page 19 of 19 It is a condition precedent to award of this AGREEMENT that all insurance certificates and endorsements be received and approved by VTA before AGREEMENT execution. No work may be performed until insurance is in full compliance. VTA reserves the rights to require complete, certified copies of all required insurance policies, at any time. If RECIPIENT receives notice that any of the insurance policies required by this Exhibit may be cancelled or coverage reduced for any reason whatsoever, RECIPIENT must immediately provide written notice to VTA that such insurance policy required by this Exhibit is canceled or coverage is reduced. F. Maintenance of Insurance If RECIPIENT fails to maintain insurance as required herein, VTA, at its option, may suspend payment for work performed and/or may order RECIPIENT to suspend work at RECIPIENT’s expense until a new policy of insurance is in effect. Ed. Rev. 10-1-19 Page 200 of 255 Page 1 of 9 City of Gilroy STAFF REPORT Agenda Item Title:Public Hearing Pursuant to Government Code Section 3502.3 (AB 2561) to Receive a Report on City of Gilroy Vacancies, and Recruitment and Retention Efforts Meeting Date:May 19, 2025 From:Jimmy Forbis, City Administrator Department:Administrative Services Submitted By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager Prepared By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Receive the informational report on City of Gilroy Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3 (AB 2561). EXECUTIVE SUMMARY Assembly Bill ("AB") 2561, codified in Government Code Section 3502.3, passed in 2024 with a January 1, 2025, effective date, and requires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the final budget. During this public hearing, the City must present information on the status of job vacancies and the City's recruitment and retention efforts. If necessary, the City will identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The City's employee bargaining units have been informed of the May 19, 2025, public hearing and shall be entitled to make a presentation at the hearing related to vacancies within their respective bargaining unit. This report is for informational purposes only as the recommended action is for the Council to receive the report as required by law. BACKGROUND Page 201 of 255 x City of Gilroy City Council Page 2 of 9 May 19, 2025 AB 2561 amends the Meyers-Milias-Brown Act ("MMBA") and was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies conduct a public hearing to present the status of vacancies, recruitment, and retention efforts during a public hearing before the agency's governing body prior to the adoption of the agency's final budget and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. In compliance with the new legal obligations, the City is required to present the following information at the public hearing: 1. The status of vacancies at the City of Gilroy. 2. Information on the City of Gilroy's recruitment and retention efforts. 3. Obstacles in the City of Gilroy's policies, procedures, and recruitment activities that create challenges in the hiring process. If the number of vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the staff presentation will also include the following information: 1. The total number of job vacancies within the bargaining unit. 2. The total number of applicants for vacant positions within the bargaining unit. 3. The average number of days to complete the hiring process from when a position is posted. 4. Opportunities to improve compensation and other working conditions. ANALYSIS Vacancy Rate Data: As of May 5, 2025, there are no bargaining units in Gilroy with a vacancy rate exceeding 20%. Below are the full-time position vacancy rates by bargaining unit and overall. Bargaining Unit FT Positions Vacancies Vacancy Rate AFSCME, Local 101 119 13 10.9% Gilroy Police Officers Association (GPOA)70 7 10.0% Gilroy Management Association (GMA)43 8 18.6% IAFF, Gilroy Firefighters, Local 2805 40 0 0.00% Unrepresented Employees 19 1 5.3% TOTAL 291 29 10.0% Gilroy's vacancy rate is similar to other agencies. Other agencies have vacancy rates ranging from 7 - 16% overall. Vacancy rates vary by bargaining unit and agency. As an Page 202 of 255 x City of Gilroy City Council Page 3 of 9 May 19, 2025 example, Gilroy, IAFF, Local 2805 has a 0% vacancy rate. However, another CA agency with similar Fire/EMS positions reported a vacancy rate of 16%. Many agencies are reporting higher vacancy rates in professional-level engineering-related positions. Another CA agency reported a 19.44% vacancy rate in their police bargaining unit as compared to Gilroy's vacancy rate of 10%. However, that same agency's overall vacancy rate is 7.82% compared to Gilroy's 10% overall vacancy rate. It is important to note that some of Gilroy's vacancies are tied to new positions that were approved in the mid-cycle budget process and/or are tied to the newly created Utilities Department. Also, when evaluating vacancy rate data, smaller agencies or smaller bargaining groups can appear to have a higher vacancy rate even with a small number of vacancies due to the small size of the overall headcount in the agency or bargaining unit. While AB 2561 is a new law that went into effect on January 1, 2025, providing publicly available information regarding Gilroy's recruitment efforts is not new to our agency. At each Personnel Commission meeting, staff provides a current Recruitment and Employment Status Report to the Commission. This regular report includes information on all current recruitment processes, the status of each process, and the status of hires and separations. Vacancies by Bargaining Unit and Recruitment Status: The chart below is a summary of current vacancies and the status of the recruitment process. The City's recruitment and selection efforts are dynamic and are being worked on daily, so keep in mind this information is a snapshot in time and can change quickly. AFSCME, Local 101 Gilroy Police Officers Association (GPOA) Gilroy Management Association (GMA) IAFF, Gilroy Firefighters, Local 2805 Unrepresented Employees Code Enforcement Officer - accepting applications; closes 5/27/25 Police Officer (6) - •1 conditional offer •1 position tied to Gilroy CSO in Academy •1 lateral in background •3 trainees in background City Engineer - accepting applications; closes 6/6/25 No vacancies - 3 Trainees in Academy (not deployable yet) Council Services, Records, & Election Manager (City Clerk) - position posted; accepting applications Page 203 of 255 x City of Gilroy City Council Page 4 of 9 May 19, 2025 AFSCME, Local 101 Gilroy Police Officers Association (GPOA) Gilroy Management Association (GMA) IAFF, Gilroy Firefighters, Local 2805 Unrepresented Employees Engineering Technician/Inspector - department interviews 5/14/25 Detention Services Officer - accepting applications; open until filled Deputy Director of Community Development - accepting applications; closes 6/2/25 Fire Captain Promotion Process - one Fire Captain position underfilled by a Firefighter Trainee (Licensed Paramedic) Environmental Engineer - preparing for posting week of 5/19/25 Fire Division Chief - accepting applications; closes 5/27/25 Management Assistant - candidate in background check Management Analyst - evaluating eligibility list for department interviews Maintenance Worker I (2) - completing internal transfer process; preparing position for posting Senior Civil Engineer - reposting position Operations Services Supervisor - Wastewater - department interview Senior Environmental Engineer/Wastew ater - accepting applications; open until filled; using search firm that specializes in Utilities positions Planner I/II - accepting applications; closes 6/2/25 Utilities Business Manager - accepting applications; open until filled; using search firm that specializes in Utilities positions Police Records Technician I (2) - one candidate in background check; one candidate being scheduled for department assessment Utilities Operations Manager - accepting applications; open until filled; using search firm that specializes in Utilities positions Page 204 of 255 x City of Gilroy City Council Page 5 of 9 May 19, 2025 AFSCME, Local 101 Gilroy Police Officers Association (GPOA) Gilroy Management Association (GMA) IAFF, Gilroy Firefighters, Local 2805 Unrepresented Employees Public Safety Communicator/Trainee (2) - two candidates in background phase - reports under review Senior Equipment Mechanic - accepting applications; closes 6/9/25 Turnover Data The chart below summarizes turnover data by bargaining unit for calendar year 2024: Turnover Type/BU AFSCME GPOA GMA Fire Local 2805 Unrep EEs Totals Retirement 1 2 1 3 1 8 Voluntary Resignation 2 1 2 1 1 7 Involuntary Resignation* 4 0 0 0 1 5 Total 7 3 3 4 3 20 *Includes release from probation, termination, or resign in lieu of release/termination Twenty full-time positions turned over in calendar year 2024. Based on the average number of full-time employees in 2024 (265), the City's 2024 employee turnover rate was about 7.5%. However, only 2.6% is attributable to voluntary turnover such as a resignation to take a position with another employer. 3% of the turnover is due to retirements and 1.9% is tied to involuntary separations such as release from probation, termination, or a resignation in lieu of release/termination. Recruitment and Retention Efforts: The Human Resources (HR) Team has implemented various programs and efforts to achieve efficiency, effectiveness, and provide excellent service in the recruitment and selection process. These efforts are summarized below: •Easy Application Process & Improved Candidate Experience: Gilroy utilizes an online platform for the recruitment process - NeoGov Insight. This software allows the team to organize and track the various steps of the hiring process so there is a smooth process for candidates, hiring managers, and the HR team. Further, the system offers an easy-to-navigate online system for applicants to submit an online application. Once a candidate establishes a profile in NeoGov, Page 205 of 255 x City of Gilroy City Council Page 6 of 9 May 19, 2025 the candidate can access it, update it, and use it to apply for additional positions with the City of Gilroy or other agencies using the same system. The system has a built-in communication tool that allows staff to send notifications to candidates at various steps of the process along with reminder notifications. NeoGov is the primary system used by most government agencies so candidates looking for government positions are familiar with the system and can use it with ease. Candidates can set up preferences in their profile to be notified when certain positions are open for recruitment by certain agencies. Further, Gilroy works hard to ensure a positive environment for candidates going through the hiring process steps. We strive to welcome candidates and give them positive encouragement when participating in the hiring process. We make ride-alongs and sit-alongs available for certain positions and encourage candidates to get to know what it would be like to work for the City of Gilroy. At times, an option for a Zoom interview is afforded to candidates when they are unable to take a block of time away from work or when a candidate may have a long distance to travel to Gilroy for an interview. •Reduced Recruitment Timelines: Each recruitment process has a recruitment plan and schedule with deadlines. The HR team really considers how long certain positions need to be posted to achieve a high-quality applicant pool. For some positions, HR has been able to reduce the posting period down to five- seven days while achieving a strong applicant pool. Further, for many positions, written tests have been eliminated in favor of interviews and practical exercises and Gilroy uses various schools and testing centers where candidates can schedule tests to fit their schedule. As an example, the Peace Officer Standards & Training (POST) written exam and agility exam for Police Officers is offered at various community colleges in the region on a variety of dates. Candidates applying for Police Officer can schedule the exams when they best fit their schedule and then upload their test results via the NeoGov Insight portal. The portal is accessible 24/7 so candidates can complete the application process at any time and/or respond to any emails or notifications at any time. By planning out the recruitment schedule in advance, candidates can plan in advance for interview dates and hiring managers can block calendars to ensure we keep the process moving forward. Gilroy has an expedited re-hire process for seasonal/summer recreation employees, many of whom are college students that return to Gilroy for the summer months. Gilroy has also had some employees who left employment to try another job or due to relocation and have returned to City of Gilroy employment via an expedited rehire process. •Review of Job Classifications & Recruitment Request Forms: Prior to commencing a recruitment process, HR works with the hiring manager to review the job description to ensure duties and requirements are current. Having an accurate job description will help match qualified candidates for the position. Further, hiring managers can access an easy-to-fill-out Recruitment Request Form to capture all information needed to start the recruitment process. HR works with the hiring manager to identify the added value/ideal candidate qualifications and skills sets to target in the recruitment. First-year projects are Page 206 of 255 x City of Gilroy City Council Page 7 of 9 May 19, 2025 identified when appropriate to market the job and the cool things the new hire will get to work on if hired to the position. •Advertising & Outreach: HR posts jobs in various locations to attract candidates. The most popular places candidates find out about our jobs is the City of Gilroy website, City of Gilroy social media, GovernmentJobs.com which is a site tied to the NeoGov Insight applicant tracking system, and referral by current and former City of Gilroy employees. In addition, ads are posted on various job boards tied to professional organizations related to the position as well as sites that outreach to underrepresented groups. Gilroy's Communications & Engagement Team also market Gilroy's jobs on various social media sites which seems to really increase our local applicant pool. Lastly, from time-to-time members of the Gilroy team (HR and Departments) attend job fairs and other events to market the City of Gilroy as an employer. •Employee Referral Program: Gilroy recently implemented an Employee Referral Program to encourage our employees to take part in the recruitment process by identifying strong candidates for positions across all city departments. Employees can earn $500 if a referred candidate is hired to a full-time position and another $500 if the candidate passes probation. Starting with July 1, 2023, twelve employees have received referral bonuses. This new program was received positively by employees. •Use of Search Firms: When needed, the City of Gilroy utilizes the assistance of search firms for hard-to-fill positions and/or high-level management positions. For example, a search firm assisted us in finding our new Fire Chief who began work on May 5th as well as our Public Works Director who began work on March 3rd. Currently, a search firm with specific experience in the Utilities industry is assisting with filling three management positions in the Utilities Department. Search firms selected have a strong network of candidates and teams that dedicate themselves to marketing and outreach positions. As you know, our City Engineer recently left for another position and, because he had not worked for the City of Gilroy for one year, the search firm is conducting a new search free of charge as they offer a one-year guarantee. •Competitive Wages & Benefits: Through our collective bargaining process, Gilroy strives to offer competitive salaries and benefits that will attract and retain high-quality employees. •Positive Work Environment/Culture & Quality of Life: Gilroy offers a positive work environment for our employees where we encourage employees to take ownership of their position, provide excellent customer service, have fun doing their job, and continuously learn and grow in their role and prepare for their next role. The positive culture is something that requires continuous care and work by everyone on the Gilroy team. This is a priority in the organization and starts at the top and also starts day one with the onboarding process. The team in all departments works hard to ensure warm welcome and training for new hires. In Page 207 of 255 x City of Gilroy City Council Page 8 of 9 May 19, 2025 addition, ongoing training and development opportunities, stretch assignments, and rotation of work are some of the ways Gilroy works on retaining employees once hired. Efforts are not one size fits all and managers adjust their efforts based on the employee's goals and capabilities. Fun events organized by the Employee Appreciation Committee build camaraderie across all city departments. Lastly, with employees being our most important asset to delivering top-notch services to the community, we recognize that employees are "human" and are looking for ways to balance work-life and home-life so things like alternate work schedules are very valuable to our employees and aid with retention. Offering wellness programs and benefits that allow employees to care for their minds and bodies is another way we improve the quality of life for Gilroy employees. Specialized public safety employee wellness programs, our Annual Health & Wellness Fair, and our employee assistance program offerings all contribute to this effort. A positive and supportive work environment can be just as important as competitive wages. •Building Our Bench: Given the challenges of filling certain jobs and the smaller available workforce, we have implemented programs to build our own bench. A couple of examples are our college summer internship program, which has led to future new hires. A couple of examples include a Communications Summer College Intern who is now one of our 911 Dispatchers and a Youth Task Force Summer College Intern from two years ago who was just hired full-time after completing her bachelor's degree. This former intern began the police academy on May 9th and will be out there serving the community as a Police Officer in about twenty weeks. In addition, we have a part-time Police Cadet Program that recently started, which offers a paid part-time position to students working on a college degree with the goal of them becoming future full-time Gilroy Police Department employees. The skills learned as a part-time Police Cadet will prepare the employee for a wide variety of job opportunities. Lastly, through stretch assignments, training programs, leadership academies, and mentorship, employees have the opportunity to advance to various positions within the organization. Just this week, three employees were promoted to the position of Police Corporal. Earlier this month, an employee was promoted to an Analyst position, and a couple months ago three Firefighters were promoted to the rank of Fire Engineer. There are many additional examples of awesome Gilroy employees who have worked hard to advance and take on new challenges in service to the Gilroy community. Even with all the efforts described above, there is always more to do to recruit and retain great employees. Competition for qualified applicants in certain fields such as engineering, utilities, police, dispatching, paramedicine, planning, and high-level management remains a challenge and can lead to longer vacancies. Many government agencies are experiencing challenges in attracting interest in public sector careers, highlighting an important opportunity to inspire and engage future talent. Human Resources appreciates the strong partnership and collaboration with departments and hiring managers as hiring new employees to serve the community is a very important function and directly correlates to delivery of service. Recruitment and retention are a Page 208 of 255 x City of Gilroy City Council Page 9 of 9 May 19, 2025 continuous effort not only by human resources but by all managers and employees throughout the organization. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact tied to this report other than the staff time to prepare the report. PUBLIC OUTREACH Out of an abundance of caution, a formal public hearing notice was prepared and posted in the local newspaper. However, staff have confirmed with legal counsel that a formal public hearing notice is not required in the future as this is an informational report with no formal action recommended. Page 209 of 255 SHARE THIS: Date Published: 09/23/2024 09:00 PM AB-2561 Local public employees: vacant positions.(2023-2024) Assembly Bill No. 2561 CHAPTER 409 An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ] LEGISLATIVE COUNSEL'S DIGEST AB 2561, McKinnor. Local public employees: vacant positions. Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action. This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Page 210 of 255 (a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations. SEC. 2. Section 3502.3 is added to the Government Code, to read: 3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit. (c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing: (1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (f ) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501. SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings: It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public. SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law. Page 211 of 255 21791321.1 City of Gilroy STAFF REPORT Agenda Item Title:Sixth Public Hearing Regarding the City's Transition from an At-Large to a District-Based Elections System for the Purpose of Receiving the Demographer’s Presentation on the Transition Process and Selecting a Final District Elections Map from the Remaining Two Draft Map – Maps D and F; as well as Determining the Order of Elections – that is - Which Three Districts Will Be on the Ballot in the November 2026 Election and Which Three Districts Will Be on the 2028 Ballot; Determining Whether Candidates for City Council Must be Residents and Electors of the District in Which They Seek Election for Any Period of Time Prior to Filing Their Nomination Papers and Declaring Their Intent to Run; and Introduce Ordinance of the City Council of the City of Gilroy declaring henceforth that City Council elections will be districted, adopting a districting map, declaring the order of elections, and potentially imposing a residency requirement on Council candidates This Public Hearing item shall be heard at 7:00 p.m. or soon thereafter Meeting Date:May 19, 2025 From:Andrew Faber, City Attorney Department:City Attorney Submitted By:Andrew Faber, City Attorney Prepared By:Andrew Faber, City Attorney STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION That the City Council: 1. Select either Draft Map D or Draft Map F as the official district map. 2. Determine which districts will be on the ballot in 2026 and which in 2028. Page 212 of 255 21791321.1 3. If desired by the Council, impose a residency requirement of no greater than 30 days upon candidates prior to filing their nomination papers. 4. Motion to read the ordinance by title only and waive further reading. 5. Introduce an Ordinance of the City Council of the City of Gilroy officially declaring that henceforth, the City Council elections will be districted, including the determinations made regarding items 1-3 above. BACKGROUND The City of Gilroy ("City") currently has an at-large election system, where each of the City's six Councilmembers are elected to staggered four-year terms by voters throughout the City. The mayor is also elected at-large to a four-year term. 1. Letter Alleging Violation of the CVRA and the City’s Resolution of Intent to Transition from At-Large to District-Based Elections. On December 16, 2024, the City received a letter alleging a violation of the California Voting Rights Act (“CVRA”). The letter asserts that the City is in violation of the CVRA because the City's councilmember elections are at-large as opposed to by district and there exists racial polarization and vote dilution. On February 24, 2025, the City Council adopted a resolution declaring its intent to transition to a district-based electoral system commencing with the November 2026 Election. 2. Public Hearings, Public Input, and Community Workshops. On March 3, 2025, and March 17, 2025, the City Council held the first and second of five public hearings required for the City’s transition to by-district elections. Public Hearings Nos. 1 and 2 were held prior to any draft maps being drawn. Redistricting Partners, the City’s retained demographer, made presentations at both public hearings regarding the CVRA, the transition process from at-large to district elections, the potential composition and number of districts, as well as the public input process. Members of the public provided input at both hearings regarding communities of interest in and the various attributes of the City of Gilroy to aid in the districting process. At the close of the March 17th hearing, having considered the public's input and the presentation by Redistricting Partners, the City Council provided direction to the demographer to begin drawing draft maps for a by-district electoral system comprised of six districts and an at-large mayor. In addition, on March 25 and March 29, 2025, the City hosted two workshops—offering childcare and language translation — where Redistricting Partners gave a presentation on districting, facilitated a Q&A session, engaged the public in map-drawing, and gathered additional public input. On April 7, 2025, Public Hearing No. 3 was held to receive public and City Council feedback on the first set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on proposed revisions to the draft maps to be considered and new maps drawn. Page 213 of 255 21791321.1 On April 21, 2025, Public Hearing No. 4 was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on proposed revisions to the draft maps to be considered and new maps drawn. Two weeks later, on May 5, 2025, Public Hearing No. 5 was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on the final two maps for consideration at the final public hearing No. 6. 3. Draft Map Development. Based on public input and City Council feedback at (the prior hearings and) the May 5 Public Hearing No. 5, the City Council selected two draft maps (Draft D and Draft F) for final consideration at the May 19, 2025 Public Hearing. These draft maps were designed to incorporate and address the public’s concerns and the direction provided by the City Council, all the while ensuring that the draft maps comply with both the CVRA and the Federal Voting Rights Act, as well as the sound map drawing/ demographic principles and meeting the requirements of the Fair Maps Act. These draft maps incorporate the underlying Census tract geography to establish the boundaries of individual City Council districts. In drawing these maps, every care was taken to honor neighborhoods and communities of interest as identified through public input. Furthermore, each of the maps complies with the 10% total deviation requirement between the largest to smallest district by population. Further explanation of the public input received and analysis that went in to drafting each of these draft maps will be provided by Redistricting Partners on May 19, 2025, at Public Hearing No. 6. These map drafts have been posted on the City's website since Thursday, May 8, 2025. On May 19, 2025, Public Hearing No. 6, draft Maps D and F will be considered by the City Council.1 One map will be selected for adoption as the six-district electoral map for City Council elections. The public is again invited to provide their input on these draft maps before the City Council selects one of the maps. 4. Other Matters/ Order of Elections & Residency Requirements. In addition to the consideration of maps, the City Council also must determine the order of elections – that is, which three districts will be on the ballot in November of 2026, and which three districts will be on the ballot in November of 2028, as City Council terms are staggered under state law. The City Council will make this decision once it has selected a final map. The decision on the order of elections must be made “in the spirit of the California Voting Rights Act,” which aims to increase public participation in the electoral process as well as the ability of minority voters to elect candidates of their choice. In 1 If the Council makes or directs any changes to the map drafts, that new map may not be selected as the final map on May 19, 2025. Rather, the new map draft with changes must be posted to the City's districting website for 7 days before any action is taken. Page 214 of 255 21791321.1 making this decision, the City Council may consider any number of factors including but not limited to projected turnout in the 2026 and 2028 elections, where the current at- large incumbents live vis a vis the new districts, which of the current at-large City councilmembers' terms are ending, the composition of each district, continuity, and of course the public input that Council receives on these questions. The City Council may also determine whether candidates for City Council must be residents of the district in which they seek election for any period of time prior to filing their nomination papers. Pursuant to Government Code section 34882, a candidate running for a city councilmember position is not eligible to hold that office unless they reside in the geographical area making up the district from which they are elected at the time their nomination papers are issued. There is no requirement related to a minimum residency period, and the City is not required to impose such a requirement. In fact, neighboring cities have taken different positions on this issue – some have imposed a 30-day residency requirement – the legal maximum in California – while others have imposed no minimum residency requirement. The City currently has no minimum residency requirement, and the City Council invites the public to provide their input on this topic. The proposed ordinance for City Council consideration is attached to this staff report. This ordinance may be used for any map and the sequence of elections selected by the City Council. This ordinance will be introduced (the “first reading”) on May 19, 2025, and adoption (“the second reading”) is scheduled for the June 2, 2025 City Council meeting. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact to hold this meeting as the City has already retained the services of outside legal counsel and a demographer to assist in the transition to district-based elections. ENVIRONMENTAL REVIEW None. PUBLIC OUTREACH Throughout the process in this transition to district elections, the City has engaged in a robust effort to encourage participation and inclusivity as a part of the process. The City has also provided multiple ways for the public to submit feedback through in- person and online formats such as map drawing, fillable Communities of Interest forms, and submission of public comment. Members of the public have been encouraged to regularly visit the City’s districting webpage at: https://www.cityofgilroy.org/1069/Transition-to-District-Based-Elections Members of the public can access all meeting materials as well as provide input on the districting process and draft maps via the City’s website. Page 215 of 255 21791321.1 PREVIOUS COUNCIL CONSIDERATION During the regular meeting of February 24, 2025, the City Council adopted a Resolution declaring its Intent to Transition to District-Based Elections pursuant to California Elections Code Section 10010, with the transition taking effect for the November 2026 and 2028 Elections. During the regular meeting of March 3, 2025, the City Council held its first public hearing – Public Hearing No. 1 - related to the transition to district-based elections. There, the City's demographer, Redistricting Partners, made a presentation on the CVRA and the transition process for preparing district boundaries. On March 17, 2025, the City Council held Public Hearing No. 2 at which the City’s demographer, Redistricting Partners, made a second presentation on the transition process for preparing district boundaries and how to use the City’s online map-drawing tool, “Districtr.” The City Council also determined on that date that the City of Gilroy will continue to have six City Council members – now in six distinct districts – and an at- large mayor. On March 25 and March 29, 2025, the City hosted two workshops—offering childcare and language interpretation—where Redistricting Partners gave a presentation on districting, facilitated a Q&A session, engaged the public in map-drawing, and gathered further public input. On April 7, 2025, the City Council held Public Hearing No. 3 to receive public and City Council feedback on this first set of draft maps. The City Council, after considering public input, provided direction to Redistricting Partners on proposed map revisions and new maps to be drawn for Public Hearing No. 4 on April 21, 2025. On April 21, 2025, the City Council held Public Hearing No. 4 to receive public and City Council feedback on the second set of draft maps. The City Council, after considering public input, provided direction to Redistricting Partners on proposed map revisions and new maps to be drawn for Public Hearing No. 5 on May 5, 2025. Two weeks later, on May 5, 2025, Public Hearing No. 5 was held was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on the final two draft maps for consideration – Draft Maps D and F - at the final Public Hearing No. 6. Attachments: 1.Draft Map D 2.Draft Map F 3. Draft Ordinance No. 2025-XXX Page 216 of 255 City of GilroyDraft D: JH05 modified Page 217 of 255 City of Gilroy Draft D: JH05 modified 1 2 3 4 5 6 Population 10,227 10,079 10,058 9,484 10,092 9,752 Deviation 278 130 109 -465 143 -197 Deviation %2.8%1.3%1.1%-4.7%1.4%-2.0% Other 2,304 4,860 3,247 1,218 2,532 4,535 Other %22.5%48.2%32.3%12.8%25.1%46.5% Latino 6,396 3,637 6,078 7,875 6,647 3,126 Latino %62.5%36.1%60.4%83.0%65.9%32.1% Asian 1,260 1,371 546 251 754 1,864 Asian %12.3%13.6%5.4%2.6%7.5%19.1% Black 267 211 187 140 159 227 Black %2.6%2.1%1.9%1.5%1.6%2.3% 2020 Census 1 2 3 4 5 6 Total CVAP 5,922 6,820 6,686 3,618 5,544 7,095 Other CVAP 1,325 3,369 2,183 795 1,925 3,548 Other CVAP %22.4%49.4%32.7%22.0%34.7%50.0% Latino CVAP 3,891 2,438 3,879 2,488 2,808 2,380 Latino CVAP %65.7%35.7%58.0%68.8%50.6%33.5% Asian CVAP 552 989 428 202 648 940 Asian CVAP %9.3%14.5%6.4%5.6%11.7%13.2% Black CVAP 154 24 196 133 163 227 Black CVAP %2.6%0.4%2.9%3.7%2.9%3.2% Citizen Voting Age Population (CVAP) Page 218 of 255 City of Gilroy Draft D: JH05 modified District 1 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,227 278 2.8%2,304 22.5%6,396 62.5%1,260 12.3%267 2.6% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 5,922 1,325 22.4%3,891 65.7%552 9.3%154 2.6% Page 219 of 255 City of Gilroy Draft D: JH05 modified District 2 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,079 130 1.3%4,860 48.2%3,637 36.1%1,371 13.6%211 2.1% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 6,820 3,369 49.4%2,438 35.7%989 14.5%24 0.4% Page 220 of 255 City of Gilroy Draft D: JH05 modified District 3 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,058 109 1.1%3,247 32.3%6,078 60.4%546 5.4%187 1.9% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 6,686 2,183 32.7%3,879 58.0%428 6.4%196 2.9% Page 221 of 255 City of Gilroy Draft D: JH05 modified District 4 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,484 -465 -4.7%1,218 12.8%7,875 83.0%251 2.6%140 1.5% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 3,618 795 22.0%2,488 68.8%202 5.6%133 3.7% Page 222 of 255 City of Gilroy Draft D: JH05 modified District 5 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,092 143 1.4%2,532 25.1%6,647 65.9%754 7.5%159 1.6% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 5,544 1,925 34.7%2,808 50.6%648 11.7%163 2.9% Page 223 of 255 City of Gilroy Draft D: JH05 modified District 6 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,752 -197 -2.0%4,535 46.5%3,126 32.1%1,864 19.1%227 2.3% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 7,095 3,548 50.0%2,380 33.5%940 13.2%227 3.2% Page 224 of 255 City of GilroyDraft F: "Fair-1" modification Page 225 of 255 City of Gilroy Draft F: "Fair-1" modification 1 2 3 4 5 6 Population 9,851 9,847 9,557 10,225 10,543 9,669 Deviation -98 -102 -392 276 594 -280 Deviation %-1.0%-1.0%-3.9%2.8%6.0%-2.8% Other 4,778 2,637 4,496 1,798 3,164 1,823 Other %48.5%26.8%47.0%17.6%30.0%18.9% Latino 3,513 6,098 2,980 7,572 6,790 6,806 Latino %35.7%61.9%31.2%74.1%64.4%70.4% Asian 1,349 907 1,849 650 470 821 Asian %13.7%9.2%19.3%6.4%4.5%8.5% Black 211 205 232 205 119 219 Black %2.1%2.1%2.4%2.0%1.1%2.3% 2020 Census 1 2 3 4 5 6 Total CVAP 6,700 5,968 7,123 4,310 6,281 5,303 Other CVAP 3,316 1,415 3,667 1,208 2,562 977 Other CVAP %49.5%23.7%51.5%28.0%40.8%18.4% Latino CVAP 2,386 3,823 2,307 2,499 3,155 3,714 Latino CVAP %35.6%64.1%32.4%58.0%50.2%70.0% Asian CVAP 974 603 924 426 388 444 Asian CVAP %14.5%10.1%13.0%9.9%6.2%8.4% Black CVAP 24 127 225 177 176 168 Black CVAP %0.4%2.1%3.2%4.1%2.8%3.2% Citizen Voting Age Population (CVAP) Page 226 of 255 City of Gilroy Draft F: "Fair-1" modification District 1 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,851 -98 -1.0%4,778 48.5%3,513 35.7%1,349 13.7%211 2.1% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 6,700 3,316 49.5%2,386 35.6%974 14.5%24 0.4% Page 227 of 255 City of Gilroy Draft F: "Fair-1" modification District 2 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,847 -102 -1.0%2,637 26.8%6,098 61.9%907 9.2%205 2.1% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 5,968 1,415 23.7%3,823 64.1%603 10.1%127 2.1% Page 228 of 255 City of Gilroy Draft F: "Fair-1" modification District 3 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,557 -392 -3.9%4,496 47.0%2,980 31.2%1,849 19.3%232 2.4% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 7,123 3,667 51.5%2,307 32.4%924 13.0%225 3.2% Page 229 of 255 City of Gilroy Draft F: "Fair-1" modification District 4 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,225 276 2.8%1,798 17.6%7,572 74.1%650 6.4%205 2.0% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 4,310 1,208 28.0%2,499 58.0%426 9.9%177 4.1% Page 230 of 255 City of Gilroy Draft F: "Fair-1" modification District 5 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 10,543 594 6.0%3,164 30.0%6,790 64.4%470 4.5%119 1.1% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 6,281 2,562 40.8%3,155 50.2%388 6.2%176 2.8% Page 231 of 255 City of Gilroy Draft F: "Fair-1" modification District 6 Other %Latino %Asian %Black % 2020 Census Other %Latino %Asian %Black % Citizen Voting Age Population Population Deviation Deviation %Other Other %Latino Latino %Asian Asian %Black Black % 9,669 -280 -2.8%1,823 18.9%6,806 70.4%821 8.5%219 2.3% Total CVAP Other CVAP Other CVAP %Latino CVAP Latino CVAP %Asian CVAP Asian CVAP %Black CVAP Black CVAP % 5,303 977 18.4%3,714 70.0%444 8.4%168 3.2% Page 232 of 255 ORDINANCE NO. 2025-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY TO ESTABLISH THE ELECTION OF MEMBERS OF THE CITY COUNCIL BY SIX DISTRICTS, ESTABLISH THE BOUNDARIES, IDENTIFICATION NUMBERS, AND THE ELECTION ORDER OF EACH DISTRICT, ESTABLISH A RESIDENCY REQUIREMENT TO SEEK A COUNCIL SEAT FROM EACH DISTRICT, AND RELATED ACTIONS WHEREAS, the City of Gilroy has historically used an at-large method of election, which is consistent with the guarantees of Section 7 of Article 1 and of Section 2 of Article II of the California Constitution; and WHEREAS, the City's at-large electoral system elects six at-large members to the City Council and an at-large mayor to staggered four-year terms; and WHEREAS, California Government Code Section 34886 permits the City Council to change the method of election by ordinance to a “by-district” system in which each member of the City Council is elected only by the voters in the district in which the candidate resides, in accordance with California Government Code Section 34871; and WHEREAS, a by-district system can also be consistent with the guarantees of Section 7 of Article I and of Section 2 of Article II of the California Constitution; and WHEREAS, on February 24, 2025, the City Council adopted Resolution No. 2025-07 which initiated the process of establishing a by-district election system to replace the current at-large system commencing with the 2026 election; and WHEREAS, under the provisions of California Elections Code Section 10010, a city that changes from an at-large city council method of election to a by-district city council method of election must hold a total of five public hearings, which includes at least two (2) public hearings regarding potential voting district boundaries prior to the release and consideration of any draft voting district maps, and two (2) public hearings following the release of draft voting district maps; and / / / Page 233 of 255 WHEREAS, on March 3, 2025 and March 17, 2025, pursuant to California Elections Code Section 10010(a)(1), the City Council held public hearings where the public was invited to provide input regarding the composition of the City’s voting districts before any draft maps were drawn, and the City Council of the City of Gilroy considered and discussed the same; and WHEREAS, at the public hearing of the City Council on March 17, 2025, the City Council also invited input on whether to have six (6) districts and an at-large directly- elected Mayor, or seven (7) districts with the Mayor selected by the City Council on a rotating basis, and voted to proceed with a six-district system with an at-large directly elected Mayor, directing its demographer to draft maps that divide the City into six (6) districts in preparation for the April 7, 2025 public hearing; and WHEREAS, on April 7, 2025, April 21 2025, and May 5, 2025 pursuant to California Elections Code Section 10010(a)(2), the City Council held public hearings where the public was invited to provide input regarding the content of the draft maps that had been released and published at least seven (7) days before each public hearing and the proposed sequence of the elections, and the City Council of the City of Gilroy considered and discussed the same; and WHEREAS, at its public hearing on April 7, 2025, the City Council reviewed twenty-four draft maps prepared by Redistricting Partners based on public input and direction received at the March 17, 2025, public hearing, and provided direction and proposed revisions regarding the draft maps and new maps; and WHEREAS, at its public hearing on April 21, 2025, the City Council reviewed draft maps that had previously been submitted and created by the public and/ or created by Redistricting Partners, and provided further direction on changes to the boundaries in these draft maps and also drew additional draft maps for consideration; and WHEREAS, at its public hearing on May 5, 2025, the City Council selected Map D and Map F as the final maps – one of which would be selected at the May 19, 2025 Public Hearing – and noted that it would take up the questions on the order of elections Page 234 of 255 (that is, which three new districts would be on the 2026 ballot and which three districts would be on the 2028 ballot) and whether candidates running for City Council must be residents of the district in which they seek election or any period of time prior to filing their nomination paper; and WHEREAS, at its public hearing on May 19, 2025, the City Council selected Map ____ as the final map to serve the purposes and objectives of the California Voting Rights Act to increase participation in the electoral process and to enable minority voters to elect candidates of their choice, determined the identification numbers for the districts [if applicable], identified Districts #, #, and # as those districts that would select City Council candidates in in 2026, and identified Districts #, #, and # as those districts that would select City Council candidates in 2028; and WHEREAS, at its public hearing on May 19, 2025, the City Council determined that candidates running for City Council must be residents of the district in which they seek election for at least thirty (30) days prior to filing their nomination papers; and WHEREAS, these actions by the City Council do not change the schedule or method of selection of the City's at-large mayor; and WHEREAS, throughout the foregoing process, the City engaged in a significant amount of public outreach and engagement above and beyond the public hearings and other procedures required by California Elections Code Section 10010, including hosting a webpage dedicated to districting; inviting the submission of community of interest forms to allow the public to provide input on keeping communities of interest in single districts to the extent possible; hosting workshops on the Districting process; inviting the submission of draft maps by the public using an interactive mapping tool; and providing districting information to local and to good government, civic engagement, and minority groups active within the City; and, WHEREAS, the purposes of this Ordinance are to: enact, pursuant to California Government Code Section 34886, an ordinance providing for the election of members of the City Council of the City of Gilroy by district in six (6) single-member districts as reflected in the voting district map referred to as Map ___ and attached as Exhibit A to Page 235 of 255 this Ordinance, in furtherance of the California Voting Rights Act of 2001 (Chapter 1.5 [commencing with Section 14025] of Division 14 of the Elections Code) to encourage by-district elections as one method to implement the guarantees of Section 7 of Article I and of Section 2 of Article II of the California Constitution; to establish which three districts are on the ballot in 2026 and which three are on the ballot in 2028; and, to establish a thirty-day (30) residency requirement that requires candidates for City Council to live in the district in which they will run for at least 30 days prior to filing their nomination papers. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I INCORPORATION OF RECITALS: The recitals set forth above are true and correct and are hereby incorporated herein by this reference as if fully set forth in their entirety. SECTION II A.SELECTION OF MAP: From this time forward and commencing with the November 2026 election, City elections for City Council will be by-district, with the City divided into the six (6) electoral districts with identification numbers for the districts, as shown on the final map selected by the City Council – Map ___, and there is no change to the method or schedule of electing the City's Mayor, who will continue to be elected at-large. B.ORDER OF ELECTIONS: Districts #, #, and # will be on the ballot in November of 2026, and Districts #, #, and # will be on the ballot in November of 2028, in order to serve the purposes and objectives of the California Voting Rights Act to increase participation in the electoral process and to enable minority voters to elect candidates of their choice. C. THIRTY-DAY (30) RESIDENCY REQUIREMENT: Candidates for City Council must be residents of the district in which they seek election for at least thirty (30) days prior to filing their nomination papers. Page 236 of 255 SECTION III SEVERABILITY If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION IV TIMING OF EFFECT Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force and effect thirty (30) days from and after the date it is adopted. PASSED AND ADOPTED this June 2, 2025, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: APPROVED: ______________________________ Greg Bozzo, Mayor ATTEST: Bryce Atkins, Acting City Clerk Page 237 of 255 CERTIFICATE OF THE CLERK I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-XX is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, June 2, 2025, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date. ____________________________________ Bryce Atkins Acting City Clerk of the City of Gilroy (Seal) Page 238 of 255 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Adopt a Resolution Setting the 2025 Fireworks Service Fee Meeting Date:May 19, 2025 From:Jimmy Forbis, City Administrator Department:Community Development Submitted By:Sharon Goei, Community Development Director Prepared By:Jonathan Crick, Fire Marshal STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services RECOMMENDATION Adopt a Resolution of the City Council of the City of Gilroy setting the 2025 Fireworks Service Fee at $20,519.70 in accordance with Assembly Bill (AB) 1403. EXECUTIVE SUMMARY In accordance with AB 1403, the City of Gilroy may charge fireworks-related fees totaling up to seven percent (7%) of the reported gross sales. The fireworks-related fee is comprised of the fireworks booth permit fees, storage yard permit fee, and the Fireworks Service Fee. For 2024, TNT Fireworks reported $463,610.00 in gross sales, establishing a maximum allowable total fee of $32,452.70. Staff recommends setting the 2025 Fireworks Service Fee at $20,519.70, since the permit fees total $11,933.00 (consisting of $11,466.00 fireworks booth permit fees and $467.00 storage yard permit fee). The Fireworks Service Fee will support public education and awareness campaigns, additional public safety staffing to enforce the provisions of the City Code, and fire suppression efforts that are directly related to safe and sane fireworks. BACKGROUND The City of Gilroy regulates the sale and use of safe and sane fireworks under Gilroy City Code Section 10A. The City Code establishes a limit of up to 16 booth permits for Page 239 of 255 Adopt a Resolution Setting the 2025 Fireworks Service Fee City of Gilroy City Council Page 2 of 3 May 19, 20251 9 5 5 non-profit organizations. The safe and sane wholesale fireworks vendor monitors the existing organizations as well as manages any potential new applicants for a fireworks booth permit that becomes available. There are 14 fireworks booths for 2025 and safe and sane fireworks will be sold to Gilroy residents from July 1-4. The methodology for determining the Fireworks Service Fee changed last year because of AB 1403, which became effective January 1, 2024. AB 1403 provides guidance regarding public safety, fireworks enforcement, and fireworks funding. AB 1403 allows a city to charge a fee to help offset the actual and reasonable costs incurred by the City for processing and issuing permits, inspecting fireworks stands, conducting public education and awareness campaigns on fireworks safety, enforcing the provisions of the City Code, and fire operation and suppression efforts that are directly related to safe and sane fireworks. AB 1403 also states that the pro rata share of the cost may not exceed seven percent (7%) of the gross sales of the fireworks sold in the city during the applicable period. ANALYSIS The safe and sane wholesale fireworks vendor, TNT Fireworks, reported a total 2024 gross sales in Gilroy of $463,610.00. In accordance with AB 1403, the total amount the City may charge for combined fireworks-related fees in 2025 is seven percent (7%) of the gross sales, which is $32,452.70. The City processed and issued 2025 permits for TNT Fireworks as follows: •Fireworks Booth Permit Fee: $819.00 per booth × 14 booths = $11,466.00 •Fireworks Storage Yard Permit Fee: $467.00 for one storage yard •Total permit fees: $11,466.00 + $467.00 = $11,933.00 To comply with the seven percent (7%) cap under AB 1403, the Fireworks Service Fee is calculated as follows: $32,452.70 − $11,933.00 = $20,519.70 Staff recommends setting the 2025 Fireworks Service Fee at $20,519.70. The attached Resolution is to adopt the Fireworks Service Fee for implementing the 2025 fireworks mitigation activities. ALTERNATIVES The City Council could choose not to adopt a resolution setting the Fireworks Service Fee. Without this fee, increased enforcement and mitigation efforts may not occur, or may require General Fund support. Staff does not recommend this option. FISCAL IMPACT/FUNDING SOURCE Adopting the proposed Fireworks Service Fee will help offset City costs associated with additional public safety staffing to enforce the provisions of the City Code, public education and awareness campaigns, and suppression efforts that are directly related to safe and sane fireworks. Page 240 of 255 Adopt a Resolution Setting the 2025 Fireworks Service Fee City of Gilroy City Council Page 3 of 3 May 19, 20251 9 5 5 PUBLIC OUTREACH If and when adopted, community engagement efforts will be undertaken to conduct public education and awareness campaigns in Gilroy through direct mailings, social media publications, and public postings between the adoption and the July 4th holiday. NEXT STEPS If approved, staff would implement the 2025 Fireworks Service Fee and fireworks mitigation activities. Attachments: 1. Draft Resolution for 2025 Fireworks Service Fee Page 241 of 255 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY SETTING THE 2025 FIREWORKS SERVICE FEE IN ACCORDANCE WITH ASSEMBLY BILL 1403 WHEREAS, the City of Gilroy regulates the sale and use of safe and sane fireworks under Chapter 10A of the Gilroy City Code; and WHEREAS, Assembly Bill (AB) 1403, effective January 1, 2024, authorizes cities to require a fee to offset the actual and reasonable costs associated with the regulation and enforcement of fireworks sales and use; and WHEREAS, AB 1403 establishes that the total of all fireworks-related fees charged by a city shall not exceed seven percent (7%) of the gross sales of fireworks sold in the city during the applicable period; and WHEREAS, TNT Fireworks, the wholesale safe and sane fireworks vendor in the City of Gilroy, reported gross sales of $463,610.00 for the 2024 sales period; and WHEREAS, seven percent (7%) of the reported gross sales is $32,452.70, which represents the maximum allowable total of fireworks-related fees under AB 1403; and WHEREAS, the City has assessed and collected $11,933.00 in fireworks-related permit fees, which includes $11,466.00 in booth permit fees and $467.00 in storage yard permit fees; and WHEREAS, the Fireworks Service Fee is the difference between the maximum allowable total fee and the permit fees, totaling $20,519.70; and WHEREAS, the Fireworks Service Fee will be used to support fireworks mitigation activities, such as public education, public safety staffing for enforcement of City Code, and fire suppression efforts directly related to the use of safe and sane fireworks. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy hereby sets the 2025 Fireworks Service Fee at $20,519.70, in accordance with AB 1403 and the reported gross fireworks sales for 2024 from TNT Fireworks, and directs staff to implement the fireworks mitigation activities. Page 242 of 255 Resolution No. 2025-XX 2025 Fireworks Service Fee City Council Regular Meeting | May 19, 2025 Page 2 of 3 PASSED AND ADOPTED this 19th day of May 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: ______________________________ Greg Bozzo, Mayor ATTEST: Bryce Atkins, Acting City Clerk Page 243 of 255 Resolution No. 2025-XX 2025 Fireworks Service Fee City Council Regular Meeting | May 19, 2025 Page 3 of 3 CERTIFICATE OF THE CLERK I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2025-XX is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, May 19, 2025, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date. ____________________________________ Bryce Atkins Acting City Clerk of the City of Gilroy (Seal) Page 244 of 255 City of Gilroy STAFF REPORT Agenda Item Title:Consent the Appointment of Ken Binder (CalPERS Retired Annuitant) as the Interim Police Chief Following Successful Completion of all Peace Officer Standards & Training (POST) Hiring Requirements and Adoption of a Resolution Approving the Appointment and Employment Agreement Meeting Date:May 19, 2025 From: Jimmy Forbis, City Administrator Department:Administrative Services Submitted by:Jimmy Forbis, City Administrator Prepared by:LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS:Not Applicable RECOMMENDATION a) Consent the City Administrator's recommendation to appoint Ken Binder (CalPERS Retired Annuitant) as Interim Police Chief effective upon successful completion of all Peace Officer Standards & Training (POST) Hiring Requirements. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Ken Binder (CalPERS Retired Annuitant) as Interim Police Chief pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement to include setting the employment start date following successful completion of all POST hiring requirements. EXECUTIVE SUMMARY To ensure continuity in the leadership and management of the Police Department, it is recommended that the City Council consent to the appointment of Ken Binder (CalPERS retired annuitant) as Interim Police Chief effective upon successful completion of the Peace Officer Standards & Training (POST) hiring requirements, and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment agreement. Page 245 of 255 BACKGROUND Due to the upcoming retirement (last day of work May 22, 2025) of Police Chief Pedro Espinoza, the City is in the process of working through the steps to fill the Police Chief position. However, this process will not be complete for a few months due to the remaining steps and the required background process required for external candidates. Therefore, the city has a need for an Interim Police Chief during this time period. Retired Santa Clara County Sheriff's Office Undersheriff Ken Binder is available to serve in this leadership position. Mr. Binder is a California Public Employees’ Retirement System (CalPERS) retired annuitant, having retired in December 2024. He has the education, skills, and experience to hit the ground running and serve as Interim Police Chief pending successful completion of all required Peace Officer Standards & Training (POST) hiring requirements for a sworn peace officer/chief. Mr. Binder has twenty-seven years of law enforcement experience, twenty-six of which were with the Santa Clara County Sheriff's Office (SCCSO). Mr. Binder rose through the ranks of the SCCSO and was promoted to the position of Undersheriff in 2020 where he oversaw daily operations of the Sheriff's Office and played a key role in the leadership team. He holds a Bachelor of Science in Business Administration with a concentration in Finance from San Jose State University and a Master of Arts in Criminal Justice from Arizona State University. He is a graduate of the FBI National Academy, Class 248. California Government Code Section 21221(h) allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need for expertise and specialized skills and recruitment is underway for the position. The city has already completed many of the steps of the recruitment process and this interim assignment is expected to last a few months. Further, the retired annuitant may not work more than 960 hours in a fiscal year and cannot receive any compensation other than the hourly rate of pay for the work performed by other employees performing comparable duties. In the Interim Police Chief role for the Police Department and as an officer of the city, Ken Binder agrees to perform the following duties related to the Gilroy Police Department: •Administer and manage comprehensive police services such as the preservation of order, protection of life and property and the enforcement of laws and municipal ordinances, all in a strong partnership with the community, using customer service techniques. •Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline. Page 246 of 255 •Manage the selection and assignment of Police Department employees. •Review and approve departmental personnel actions. •Direct the administration of staff training programs. •Formulate the annual departmental budget, and control budget expenditures. •Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council. •Direct the preparation of internal reports, orders and directives. •Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol. •Administer the communications operations, records, permits and licensing. •Administer the Law Enforcement Branch of the City’s Emergency Operations Center. •Coordinate Police service activities with those of other law enforcement and related organizations. •Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices. •Attend public administration conferences, meetings, and seminars. •Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs and activities. •Perform Police and field duties including but not limited to incident command of major operations. •Perform other related duties as assigned. As the Interim Police Chief, Ken Binder will report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. Mr. Binder will be paid $127.40 per hour with no other benefits or incentives. ALTERNATIVES The alternative would be not to approve the interim appointment. The city would then need to alternatively identify someone else to serve in this role or leave the position vacant. These alternatives are not recommended. FISCAL IMPACT/FUNDING SOURCE This interim appointment provides a cost savings to the city as only the hourly rate for the position is paid to the retired annuitant and not any benefits. It is estimated that this interim appointment will save the city approximately $7,000 per month when filled on a full-time basis. Over a three-four-month period, the savings will total approximately $21,000 – $28,000. Page 247 of 255 NEXT STEPS Upon Council approval, the City Administrator will direct the completion of the POST hiring requirements which are already underway and, upon successful completion of these requirements, will sign the employment agreement and set the employment start date. In addition, staff will continue to complete the remaining steps of the Police Chief recruitment process until an ongoing appointment is made. Attachments: 1. Resolution for Interim Appointment and Employment Agreement 2. Exhibit A – Employment Agreement for Ken Binder Page 248 of 255 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KEN BINDER AS INTERIM POLICE CHIEF TO LEAD AND MANAGE THE POLICE DEPARTMENT AND APPROVING EMPLOYMENT AGREEMENT WHEREAS, Government Code Section 21221(h) permits the City Council to appoint a retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, Ken Binder retired from California Public Employees’ Retirement System employment on December 31, 2024; and WHEREAS, Ken Binder has twenty-seven years of municipal public safety experience and most previously served as the Santa Clara County Sheriff’s Office Undersheriff from 2020 - 2024; and WHEREAS, the position of Police Chief will become vacant on May 23, 2025 following the retirement of Pedro Espinoza; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Ken Binder to lead and manage the Gilroy Police Department in the position of Interim Police Chief for the City of Gilroy under Government Code Section 21221(h), effective upon successful completion of all Peace Officer Standards & Training (POST) hiring requirements; and WHEREAS, Ken Binder has extensive experience leading and managing a public safety department and experience with all administrative aspects of leading and managing a California law enforcement department; and WHEREAS, an appointment under Government Code Section 21221(h) requires that the City has initiated steps to begin the recruitment process for the vacant position; and WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the ongoing regular replacement for the vacant position of Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Ken Binder; and WHEREAS, the entire employment agreement between Ken Binder and the City of Gilroy has been reviewed by this body and is attached hereto as Exhibit A; and WHEREAS, no matters, issues, terms, and/or conditions related to this employment and appointment have been or will be placed on the consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and Page 249 of 255 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KEN BINDER AS INTERIM POLICE CHIEF FOR THE GILROY POLICE DEPARMENT AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | May 19, 2025 Page 2 of 3 WHEREAS, the maximum base monthly salary for this position is $22,745.33 and the hourly equivalent is $131.23 and the minimum base monthly salary for this position is $16,559.50 and the hourly equivalent is $95.54; and WHEREAS, the hourly rate to be paid to Ken Binder will be $127.40; and WHEREAS, Ken Binder has not and will not receive any other benefit, incentive compensation in lieu of benefits or any other form of compensation in addition to this hourly pay rate. NOW, THEREFORE, the City Council of the City of Gilroy hereby finds, determines, and resolves as follows: 1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals s et forth above are found to be true and correct and are incorporated herein by reference. 2. The City Council hereby certifies the nature of the employment of Ken Binder as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Interim Police Chief for the City of Gilroy Police Department to provide the specialized skills necessary to lead and manage the City’s police department functions. 3. The City Council hereby authorizes the appointment of Ken Binder to Interim Police Chief effective a date following successful completion of all POST hiring requirements pursuant to the authority provided under Government Code Sections 21221(h), which shall end on the date immediately preceding the date on which the permanent replacement for the vacant position of Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Ken Binder. 4. The employment agreement with Ken Binder, a copy of which is attached hereto as Exhibit A and will be maintained on file with the Human Resources Department, is approved by the City Council, effective on a date following successful completion of all POST hiring requirements. 5. The City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the City Administrator and City Attorney. PASSED AND ADOPTED this 19th day of May, 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: Page 250 of 255 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KEN BINDER AS INTERIM POLICE CHIEF FOR THE GILROY POLICE DEPARMENT AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | May 19, 2025 Page 3 of 3 ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: __________________________ Bryce Atkins, Acting City Clerk Page 251 of 255 Page 1 of 4 EXHIBIT A RETIRED ANNUITANT EMPLOYMENT AGREEMENT The Retired Annuitant Employment Agreement (“Agreement”) is made by and between the City of Gilroy, a municipal corporation of the State of California (“City”) and Ken Binder, an individual (“Retired Annuitant”) effective upon successful completion of all required Peace Officer Standards & Training (POST) hiring requirements (“Effective Date”). RECITALS A. Retired Annuitant previously was employed by the County of Santa Clara, a California Public Employees’ Retirement System (CalPERS) employer, having previously served as the Santa Clara County Sheriff’s Office Undersheriff from 2020-2024; and B. Retired Annuitant retired from public service effective December 31, 2024 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City will have a vacancy in the position of Police Chief beginning May 23, 2025, a regular position for which the City has already commenced steps to recruit a permanent appointment beginning in February 2025; and D. The City has an immediate need for an employee to temporarily perform the position of Interim Police Chief, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City’s Police Department; and E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Police Department; and F. Retired Annuitant’s employment is authorized by Government Code section 21221(h), which permits the City to appoint a CalPERS retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent replacement; and G. City desires to retain the services of Retired Annuitant in accordance with California Government Code Section 21221(h) and Retired Annuitant agrees to provide certain services to City under the strict terms and conditions set out in this Agreement; and H. The appointment of this retired annuitant prior to 180 days post-retirement is allowable under Government Code 7522.56 as the Interim Police Chief is a public safety position. In consideration of this matter described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties of this Agreement agree as follows: Page 252 of 255 Page 2 of 4 AGREEMENT Section 1. Term of Services The term of this Agreement is from successful completion of all POST hiring requirements until such time as a regular ongoing replacement for the position of Police Chief has been selected and has commenced employment, unless terminated sooner as provided below. Section 2. Scope of Services Retired Annuitant, as an officer of the city, agrees to perform the following duties related to the Gilroy Police Department: • Administer and manage comprehensive police services such as the preservation of order, protection of life and property and the enforcement of laws and municipal ordinances, all in a strong partnership with the community, using customer service techniques. • Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline. • Manage the selection and assignment of Police Department employees. • Review and approve departmental personnel actions. • Direct the administration of staff training programs. • Formulate the annual departmental budget, and control budget expenditures. • Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council. • Direct the preparation of internal reports, orders, and directives. • Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol. • Administer the communications operations, records, permits and licensing. • Administer the Law Enforcement Branch of the City’s Emergency Operations Center. • Coordinate Police service activities with those of other law enforcement and related organizations. • Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices. • Attend public administration conferences, meetings, and seminars. • Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs, and activities. • Perform Police and field duties including but not limited to incident command of major operations. • Perform other related duties as assigned. Page 253 of 255 Page 3 of 4 Retired Annuitant will report directly to the City Administrator. Retired Annuitant shall comply with all City rules, policies, guidelines, regulations, and laws. Section 3. Compensation; Hours City agrees to compensate Retired Annuitant at $127.40 per hour for all services provided under this Agreement. Payments from City to Retired Annuitant shall be made during the normal payroll cycles of other City employees. City has reviewed and compared the hourly rate set forth in this Section with other employees performing comparable duties and the hourly rate set forth in this Section does not exceed such other employee’s compensation. Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement exceeding a total of nine hundred sixty (960) hours during any fiscal year (July 1 to June 30) inclusive of any hours worked during the same period for other CalPERS employers as a retired annuitant. Retired Annuitant shall record his hours on a pre-approved timesheet that shall be submitted to the City every month. The position is a temporary, hourly assignment which is generally not expected to exceed 40 hours per week. The City, through the City Administrator, will assign Retired Annuitant hours to work. Due to the nature of the position, it is understood that the workday and workweek hours may vary, however Retired Annuitant shall not work overtime (i.e. in excess of 40 hours per week) as payment of overtime is prohibited under Government Code Section 21221(h). There are no other benefits, incentives, compensation in lieu of benefits or other forms of compensation in addition to the hourly pay rate set forth in this Section. Section 4. Location The primary locations for services will be at the following addresses: Gilroy Police Department, 7301 Hanna Street, Gilroy, California 95020 Gilroy City Hall, 7351 Rosanna Street, Gilroy, California 95020 Section 5. Compliance with Laws This Agreement will be construed in accordance with and governed by the laws in the State of California. In the event that suit shall be brought by any of the parties, the parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California. Retired Annuitant shall comply with all applicable laws, rules, policies, and guidelines. Retired Annuitant agrees and acknowledges that the State of California and the governing body of the California Public Employees’ Retirement System enact strict laws, regulations and guidelines relating to services provided by “retired annuitants” to public agencies contracting with the California Public Employees’ Retirement System. Retired Annuitant agrees to comply with all applicable laws, regulations and guidelines relating to the services provided under this Agreement. Page 254 of 255 Page 4 of 4 Section 6. Termination This Agreement may be terminated by either party for convenience by providing written notice to the other party. Section 7. Miscellaneous a. Retired Annuitant has read each and every part of this Agreement and Retired Annuitant freely and voluntarily has entered into this Agreement. This Agreement is a negotiated document and shall not be interpreted for or against any party by reason of the fact that such party may have drafted this Agreement or any of its provisions. b. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjusted shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. c. This Agreement represents the entire and integrated agreement between City and Retired Annuitant and supersedes all prior negotiations, representations, or agreements, either written or oral. In witness where of the parties have duly affixed their signatures on this __ day of ______, 2025. Employer: City of Gilroy _______________________ Jimmy Forbis, City Administrator Employment Effective Date Retired Annuitant: Ken Binder Approved as to Form: Andrew L. Faber, City Attorney Attest: Bryce Atkins, Acting City Clerk Page 255 of 255