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HomeMy WebLinkAboutCOMPLETE December 8, 2025 City Council Regular Meeting Agenda PacketDecember 8, 2025 | 6:00 PM Page 1 of 9 City Council Regular Meeting CITY COUNCIL REGULAR MEETING AGENDA CITY CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 MONDAY, DECEMBER 8, 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 Page 1 of 282 December 8, 2025 | 6:00 PM Page 2 of 9 City Council Regular Meeting post the documents before the meeting. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204. If you need assistance with translation and would like to speak during public comment, please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or e-mail the City Clerk’s Office at cityclerk@cityofgilroy.org. Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408- 846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a cityclerk@cityofgilroy.org. To access written translation during the meeting, please scan the QR Code or click this link: Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace: bit.ly/3FBiGA0 Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir Use a headset on your phone for audio or read the transcript on your device. Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo. The agenda for this regular meeting is 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 Page 2 of 282 December 8, 2025 | 6:00 PM Page 3 of 9 City Council Regular Meeting 1.5. Roll Call 1.6. Orders of the Day 1.7. Employee Introductions 2. PRESENTATIONS TO THE COUNCIL 2.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written comments to address the Council on matters not on this agenda may be e-mailed to the City Clerk’s Office at 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. 2.2. Children's Advocacy Center (CAC) For South County Presentation 3. 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 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) Page 3 of 282 December 8, 2025 | 6:00 PM Page 4 of 9 City Council Regular Meeting 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) 4. 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. 4.1. Approve the minutes of the November 17, 2025 City Council Regular Meeting 4.2. Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-01, Town Center Multifamily Tract 10472 4.3. Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-02, Nebbiolo Malvasia The Glen Tract 10520 4.4. Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2024- 2025 as Required under Government Code 66000 4.5. Approval of a Contract Amendment to the Tree Maintenance Contract with West Coast Arborists, Inc in the Amount of $69,319 for Hecker Pass Tree Pruning 4.6. Adopt a FY26 and FY27 Budget Amendment Resolution to the Police Department BSCC Title II Grant Fund and Approve a First Amendment To Agreement for Services of $116,617.50 with Youth Alliance for the South County Restorative Justice Youth Diversion Program from January 1, 2026 through September 30, 2026 Page 4 of 282 December 8, 2025 | 6:00 PM Page 5 of 9 City Council Regular Meeting 4.7. Award a Contract to Youth Alliance for $130,105.14 for South County Youth Task Force (SCYTF) School-Based Youth Services 4.8. Approve the Second Amendment to the Agreement with Cal-West Lighting & Signal Maintenance, Inc. for Streetlight and Traffic Signal Maintenance Services, and Adopt a Resolution Approving a Budget Amendment for the Signal/ Street Light Maintenance Project (Project No. 800340) 4.9. Receive Report Regarding Upcoming 2026 Commission Vacancies per Maddy Act 4.10. Authorization for Council Member Travel to the League of California Cities 2026 Mayors and Council Members Academy 4.11. Adopt an Ordinance to Amend Board and Commission Terms and Appointment Process 4.12. Authorize the Surplus of Sixteen Vehicles/Equipment and Authorize the Disposal of the Surplus by Auction 4.13. Claim of Antonio Garcia (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 4.14. Claim of Stephanie Moretto (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 4.15. Claim of Jeff Scherck (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 5. PUBLIC HEARINGS 5.1. Consider Extending the Urgency Interim Ordinance Prohibiting the Issuance of Tobacco Retailer Permits for a Period of Ten (10) Months and Fifteen (15) Days within the Downtown Specific Plan Area 1. Disclosure of Ex-Parte Communications 2. Staff Report: Sharon Goei, Community Development Director 3. Open Public Hearing 4. Close Public Hearing 5. Possible Action: 1. Determine this action is exempt from environmental review under California Environmental Quality Act (CEQA) pursuant to Section 15262, Section 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the CEQA Guidelines: and 2. Adopt an extension of the Urgency Interim Ordinance established to Page 5 of 282 December 8, 2025 | 6:00 PM Page 6 of 9 City Council Regular Meeting prohibit the issuance or approval of any new Tobacco Retailer Permit for an additional ten (10) months and fifteen (15) days within the Gilroy Downtown Specific Plan Area. 3. Review, approve and issue the 10-day report as required by Government Code Section 65858(d) for the extension of the temporary moratorium. 6. INTRODUCTION OF NEW BUSINESS 6.1. Commemorative Flag Application Review for Calendar Year 2026 1. Staff Report: Bryce Atkins, Assistant to the City Administrator 2. Public Comment 3. Possible Action: Council consideration regarding the Commemorative Flag Flying Application for the Progressive Pride Flag. 6.2. Consideration of options and recommendations for meeting State-mandated stormwater trash capture requirements. 1. Staff Report: John Doughty, Public Works Director 2. Public Comment 3. Possible Action: It is recommended that the City Council authorize staff to immediately: 1. Prepare and advertise a Request for Proposal (RFP) for the fabrication and installation of 73 connector pipe screens (a type of certified full trash capture system) to meet the City's December 2026, 30-percent MS4 trash capture mandate; and 2. In conjunction with the bid award, return to City Council with a budget amendment to add the Connector Pipe Screen Project into the FY 26 Capital Budget with funding from Stormwater Management Fund (422). It is further recommended that the City Council direct staff to: 1. Conduct an engineering study and finance plan to implement hydro- dynamic separators to meet the 65-percent and 100-percent MS4 trash capture requirements; or 2. In alternative, develop a plan for meeting 65-percent and 100-percent MS4 trash capture mandates under the Track 2 compliance option. 6.3. Mayoral Appointments of Council Members to Serve in Regional Representative Page 6 of 282 December 8, 2025 | 6:00 PM Page 7 of 9 City Council Regular Meeting Seats and Seats on Local Boards and Committees 1. Staff Report: Kim Mancera, City Clerk 2. Public Comment 3. Possible Action: Approve representative seat assignments as determined by Mayor Bozzo per California Government Code Section 40605. 6.4. Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026 1. Staff Report: Kim Mancera, City Clerk 2. Public Comment 3. Possible Action: Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026. 6.5. Consent the Appointment of Scot Smithee (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: a) Consent the City Administrator's recommendation to appoint Scot Smithee (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 Scot Smithee (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. 6.6. Consent the Appointment of Karl Bjarke (CalPERS Retired Annuitant) as the Interim Utilities Director Effective December 23, 2025 and Adoption of a Resolution Approving the Appointment and Employment Agreement 1. Staff Report: LeeAnn McPhillips, Assistant City Administrator/HR Director Page 7 of 282 December 8, 2025 | 6:00 PM Page 8 of 9 City Council Regular Meeting 2. Public Comment 3. Possible Action: a) Consent the City Administrator's recommendation to appoint Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025 pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement. 6.7. Consent the Appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as the Interim Administrative Services & Human Resources Director/Risk Manager Effective December 31, 2025 and Adoption of a Resolution Approving the Appointment and Employment Agreement and Waiving the 180-Day Wait Period for Post-Retirement Employment 1. Staff Report: Brad Kilger, City Administrator 2. Public Comment 3. Possible Action: a) Consent the City Administrator's recommendation to appoint LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 and waiving the 180- day wait period for post-retirement employment pursuant to Government Code Section 21221(h) and Section 7522.56 authorizing the City Administrator to execute the employment agreement. 7. CITY ADMINISTRATOR'S REPORTS 8. CITY ATTORNEY'S REPORTS 9. CLOSED SESSION 9.1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 and Gilroy City Code Section 17A.8 Property: APN 808-58-004 Negotiators: Brad Kilger, Interim City Administrator, John Doughty, Director Public Works Other Party to Negotiations: John Filice, Glen Loma Page 8 of 282 December 8, 2025 | 6:00 PM Page 9 of 9 City Council Regular Meeting Negotiations: Price and Term of Payment for Sale and/or Lease 10. ADJOURN TO OPEN SESSION 11. ADJOURNMENT FUTURE MEETING DATES January 2026 05 26 City Council Regular Meeting - 6:00 p.m. City Council Regular Meeting - 6:00 p.m. February 2026 09 23 City Council Regular Meeting - 6:00 p.m. City Council Regular Meeting - 6:00 p.m. March 2026 02 16 City Council Regular Meeting - 6:00 p.m. City Council Regular Meeting - 6:00 p.m. Meetings are webstreamed on the City of Gilroy’s website at gilroy.city/meetings. Page 9 of 282 November 17, 2025 | 6:00 PM Page 1 of 8 City Council Minutes 1. OPENING 1. Call to Order City of Gilroy DRAFT City Council Minutes Monday, November 17, 2025 | 6:00 PM The meeting was called to order by Mayor Bozzo at 6:00 PM. 2. Roll Call Attendance Attendee Name Present Council Member Dion Bracco Council Member Tom Cline Council Member Terence Fugazzi Council Member Carol Marques Council Member Kelly Ramirez Mayor Greg Bozzo Absent Council Member Zach Hilton 3. City Clerk's Report on Posting the Agenda City Clerk Kim Mancera reported on the Posting of the Agenda. 4. Pledge of Allegiance Council Member Cline led the Pledge of Allegiance. 5. Invocation Pastor Trevor Van Laar with Gilroy Presbyterian Church led the Invocation. 6. Orders of the Day None. 7. Employee Introductions Finance Director Harjot Sangha introduced Accounting Assistant Nallely Martinez. 2. CEREMONIAL ITEMS - Proclamations and Awards 1. Open Government Week Proclamation Chair Shane Somavia provided the Open Government Commission year-end report and presentation. 3. PRESENTATIONS TO THE COUNCIL 1. Annual Presentation by the Planning Commission Chair Manny Bhandal provided the Planning Commission year-end report and Page 10 of 282 November 17, 2025 | 6:00 PM Page 2 of 8 City Council Minutes presentation. 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 at 6:20 P.M. Ann Marie McCauley - commented on the unhoused issue in Gilroy and thanked Mayor Bozzo and Council Member Ramirez for being involved. Paul Van Pelt - commented on his RV being towed from in front of his house. Greg Felios - commented on the State of the City address. Ron Kirkish - commented on the information he received regarding the DA rejecting prosecuting referrals in 2025. With no further speakers, Mayor Bozzo closed public comment. 4. REPORTS OF COUNCIL MEMBERS 1. 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 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 Page 11 of 282 November 17, 2025 | 6:00 PM Page 3 of 8 City Council Minutes 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) Council Member Bracco - No report. Council Member Fugazzi - No report. Council Member Marques - Wished Council Member Bracco and Council Member Ramirez a happy belated birthday. Council Member Ramirez - Thanked Miguel Flacker for putting on the Veteran's Day Parade. She shared that she had the opportunity to ride along with the Chestnut St Fire Station. She thanked the Gilroy Fire Department for their professionalism. She encouraged her fellow Council Members to participate in a ride-along. Council Member Cline - Thanked Miguel Flacker for putting on the Veteran's Day parade. Mayor Bozzo - Thanked City Staff and Public Works Director for the great work on the paving program this year. 5. CONSENT CALENDAR Mayor Bozzo opened public comment at 6:33 P.M. With no speakers, Mayor Bozzo closed public comment. Motion Approve the consent calendar. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Kelly Ramirez AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 1. Approve the minutes of the November 3, 2025 City Council Study Session and the November 3, 2025 City Council Regular Meeting 2. Authorization to Deaccession Artifacts from the Collection Managed by the Gilroy Museum 3. Acceptance of the Cash and Investment Report as of September 30, 2025 Page 12 of 282 November 17, 2025 | 6:00 PM Page 4 of 8 City Council Minutes 4. Adoption of an Ordinance of the City Council of the City of Gilroy Amending Chapter 30, Article LIV of the Gilroy City Code Relating to Accessory Dwelling Units (Z 25-02) 5. Claim of Curtis Crackel (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 6. Claims of Yolanda Alanis and Tony Jose Alanis (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claims) 7. Consider the Approval of Santa Clara Valley Habitat Agency to Proceed with a Habitat Plan Amendment 6. BIDS AND PROPOSALS 1. Award Two Opioid Remediation Grants, not-to-exceed $118,675 to Carry the Vision and $118,676 to Youth Alliance, for Opioid Remediation Services; Adopt a Resolution Amending the Fiscal Year 2026 Budget in the Opioid Settlement Fund by $237,352; and Authorize the City Administrator to Negotiate and Execute Final Grant Agreements Deputy Director for Community Development Bryce Atkins provided a report and presentation. Mayor Bozzo opened public comment at 6:41 P.M. Ann Marie McCauley - commented on Carry the Vision and Youth Alliance and the work they do. Mark Ashford - commented on his work with and the programs at Carry the Vision. Mario Guerra - commented on his participation with Carry the Vision and how it has helped him. Charles Good III - commented on the work of Carry the Vision. Mario Castro - commented on his work with Carry the Vision and their programs. Patricia Marquez-Singh - commented on her support of the work that Carry the Vision does. Aubrey Tasby - commented on his participation with Carry the Vision. Sam Brown Jr - commented on how Carry the Vision has helped him. Ron Kirkish - commented on drug issues and thanked Carry the Vision for their comments. With no further speakers, Mayor Bozzo closed public comment. Page 13 of 282 November 17, 2025 | 6:00 PM Page 5 of 8 City Council Minutes Motion Award opioid remediation grant, reimbursement-based and not to exceed $237,352 to Carry the Vision, for opioid remediation services. RESULT: Passed MOVER: Council Member Dion Bracco SECONDER: Council Member Terence Fugazzi AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Adopt a resolution amending the 2026 Fiscal Year Budget in the Opioid Settlement Fund by $237,352 and authorize the City Administrator to negotiate and execute the final grant agreement. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 2. Award the Interim Aquatics Center Operator Contract to Swan Swimming, LLC for an Amount Not to Exceed $266,662 and Authorize the City Administrator to Complete Negotiations and Execute the Agreement Deputy Director of Community Development Bryce Atkins provided a report and presentation. Mayor Bozzo opened public comment at 7:14 P.M. Alicia - commented on supporting the 1-year contract with Swimming Swan and would like to see the City of Gilroy take back the program. With no further speakers, Mayor Bozzo closed public comment. Motion Award the interim aquatics center operator contract to The Swimming Swan, LLC for an amount not to exceed $266,662 and authorize the City Administrator to complete negotiations and execute the agreement. RESULT: Passed MOVER: Council Member Carol Marques Page 14 of 282 November 17, 2025 | 6:00 PM Page 6 of 8 City Council Minutes SECONDER: Council Member Tom Cline AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Hilton 7. INTRODUCTION OF NEW BUSINESS 1. Introduce for First Reading by Title Only An Ordinance to Amend Board and Commission Terms and Appointment Processes City Clerk Kim Mancera provided a report. Mayor Bozzo opened public comment at 7:23 P.M. With no speakers, Mayor Bozzo closed public comment. Motion Read the ordinance by title only and waive further reading of the ordinance. RESULT: Passed MOVER: Council Member Kelly Ramirez SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Introduce the ordinance of the City Council of the City of Gilroy to reflect that all future terms will expire in odd-numbered years. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Kelly Ramirez AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 2. Receive Budget Report for the First Quarter of Fiscal Year 2025-26 (FY26) and Adopt a Budget Amendment Resolution Finance Director Harjot Sangha provided a report and presentation. Mayor Bozzo opened public comment at 7:31 P.M. Page 15 of 282 November 17, 2025 | 6:00 PM Page 7 of 8 City Council Minutes With no speakers, Mayor Bozzo closed public comment. Motion Receive the Budget Report for the First Quarter of Fiscal Year 2025-26 and adopt a budget amendment resolution. RESULT: Passed MOVER: Council Member Dion Bracco SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 8. CITY ADMINISTRATOR'S REPORTS Interim City Administrator Brad Kilger congratulated three employees, Fire Marshall Jonathan Crick, Human Resource Analyst Jason Davalos, and Deputy Public Works Director Matt Jones, who graduated from the Santa Clara County Leadership Academy. 9. CITY ATTORNEY'S REPORTS City Attorney Andy Faber reported on a case with the California Supreme Court. 10. CLOSED SESSION City Attorney Andy Faber announced the closed session items 10.1 and 10.2. City Attorney Andy Faber opened public comment at 7:35 P.M. With no speakers, City Attorney Andy Faber closed public comment. Motion Proceed into closed session. RESULT: Passed MOVER: None SECONDER: None AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 and Gilroy City Code Section 17A.8 Property: 7491 Railroad Street, APN 841-06-001 Negotiators: LeeAnn McPhillips, Assistant City Administrator, Administrative Services & Human Resources Director/Risk Manager; Sharon Goei, Page 16 of 282 November 17, 2025 | 6:00 PM Page 8 of 8 City Council Minutes Community Development Director; Victoria Valencia, Economic Development Manager Under Negotiations: Price and Terms of Payment for Purchase and/or Lease 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Pursuant to Paragraph (4) of Subdivision (d) of Government Code Section 54956.9 and Gilroy City Code Section 17A.11 Subdivision (3): One Case 11. ADJOURN TO OPEN SESSION City Attorney Andy Faber announced that the only reportable action was a vote to remain in closed session. Motion Remain in closed session. RESULT: Passed MOVER: None SECONDER: None AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 12. ADJOURNMENT With no additional business before the Council, the meeting was adjourned at 8:04 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 on XXXXXXX, 20XX. Kim Mancera City Clerk Page 17 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-01, Town Center Multifamily Tract 10472 Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Jorge Duran, Senior Civil Engineer STRATEGIC PLAN GOALS: Promote Economic Development Activities RECOMMENDATION Approve the Notice of Acceptance of completion and reduction of the faithful performance and payment security bonds for property improvement agreement number 2020-01, Town Center Multifamily - Tract 10472. EXECUTIVE SUMMARY On and off-site improvements for the Town Center Multifamily - Tract 10472 have been completed. The Developer is seeking reduction in the performance bonds per City of Gilroy City Code. Staff is requesting that Council approve the Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payement Security Bonds for Property Agreement 2020-01 for the Town Center Multifamily - Tract 10472. BACKGROUND In May 7, 2018, The Glen Loma Corporation (Developer) received Tentative Map approval for the Town Center Multifamily residential project, to create 23 multi-family condominium lots for up to 125 townhouse units located north of Santa Teresa Boulevard between West Tenth Street and Miller Avenue. [Reference: Resolution No. 2018-09, TM 17-01]. The approvals were to construct streets, utilities, landscaping, Page 18 of 282 lighting, fences, walls, and open space areas. On September 21, 2020, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate, received Council approval of Tract 10472 Final Map and the Property Improvement Agreement 2020-01 for the development of the site and related Public Improvements of the Town Center Multifamily subdivision. The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map. ANALYSIS Chapter 21, Article III, Section 21.81 of the City Code allows the City Council to authorize a reduction in the payment and performance bonds that the builder provided prior to the Property Improvement Agreements being accepted by Council. The amount of the bond reduction is consistent with the amount of work completed at the time of request. A maintenance bond in the amount of 10% of the construction cost ensures that defective or damaged improvements will be corrected during the one-year maintenance warranty period. The project’s actual improvement costs have been reviewed to ensure that the Maintenance Security amount covers any anticipated issue with the installed improvements. The developer, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate request a reduction of Tract 10472 Faithful Performance and Payment Bonds to a Maintenance Bond. This Maintenance Bond is 10% of the bonds value for the Tract improvements bond, reducing it for Tract 10472 from the original $6,999,071 to $699,907. The original security provided for 100% of the estimated construction cost and payment for tract improvements, which consist of new streets, grading, curb, gutter, sidewalk, utilities, landscape, and electrical lighting. The project is fully complete, and the Notice of Completion document is ready for acceptance and recordation with Santa Clara County. Attachment 3 contains the Notice of Completion. ALTERNATIVES Deny the request to approve the Notice of Acceptance and reduction of the bonds. Staff does not recommend this option as it will cause costly and unnecessary development delays. FISCAL IMPACT/FUNDING SOURCE The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map. The Faithful Performance and Payment Bonds held as security will be reduced from Page 19 of 282 $6,999,071 to $699,907. PUBLIC OUTREACH N/A NEXT STEPS N/A Attachments: 1. Exhibit A - Vicinity Map GLR TCMF Tract 10472 2. Exhibit B - PIA GLR TCMF Tract 10472 3. Exhibit C - NOC_Town Center Page 20 of 282 Page 21 of 282 Page 22 of 282 Page 23 of 282 Page 24 of 282 Page 25 of 282 Page 26 of 282 Page 27 of 282 Page 28 of 282 Page 29 of 282 Page 30 of 282 Page 31 of 282 Page 32 of 282 Page 33 of 282 Page 34 of 282 Page 35 of 282 Page 36 of 282 Page 37 of 282 Page 38 of 282 Page 39 of 282 Page 40 of 282 Page 41 of 282 Page 42 of 282 Page 43 of 282 Page 44 of 282 Page 45 of 282 Page 46 of 282 Page 47 of 282 Page 48 of 282 SEPARATE PAGE PURSUANT TO GOVT. CODE 27361.6 RECORDING REQUESTED BY: City of Gilroy WHEN RECORDED MAIL TO: Thai Pham City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 NOTICE OF ACCEPTANCE OF COMPLETION NOTICE IS HEREBY GIVEN that work agreed to be performed under the property agreement between the City of Gilroy, a municipal corporation, whose address is 7351 Rosanna Street, Gilroy, CA 95020, and the Contractor mentioned below who developed said project, was accepted as completed by the City of Gilroy on the. Project No.: Property Improvement Agreement No. 2020-01, Project Name Tract 10472 Town Center Multifamily Contractor Name: KB Home South Bay Inc Contractor Address: 6700 Koll Center Pkwy, Ste 200 Pleasanton, CA 94566 Surety on Contract: Liberty Mutual Insurance Company Location of Project: Glen Loma Ranch, Tract 10472 Description of Work: Tract Improvements Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems Owner's Name: City of Gilroy Work Done: Install underground utilities, electrical, landscape, and open space __________________________________________________________ This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned declares: That he is an officer of the City of Gilroy, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters that he believes it to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on December 8, 2026. CITY OF GILROY STATE OF CALIFORNIA COUNTY OF SANTA CLARA BY Jorge Duran TITLE Senior Engineer. This document is for the benefit of the City of Gilroy. Request for Recordation without fee is made in accordance with Section 27383 of the Government Code of the State of California. Page 49 of 282 SEPARATE PAGE PURSUANT TO GOVERNMENT CODE SECTION 27361.6 RECORDING REQUESTED BY: ) ) City of Gilroy ) ) ) ) WHEN RECORDED, MAIL TO: ) Kim Mancera, City Clerk ) City of Gilroy ) 7351 Rosanna Street ) Gilroy, CA 95020 ) RECORDED WITHOUT FEE PER CALIFORNIA GOVERNMENT CODE SECTION 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) NOTICE OF ACCEPTANCE OF COMPLETION PROPERTY IMPROVEMENT AGREEMENT NO. 2020-01 PROJECT NAME - Tract 10472, Town Center Multifamily: DEVELOPER NAME : KB Home South Bay Page 50 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-02, Nebbiolo Malvasia The Glen Tract 10520 Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Jorge Duran, Senior Civil Engineer STRATEGIC PLAN GOALS: Promote Economic Development Activities RECOMMENDATION Approve the Notice of Acceptance of completion and reduction of the faithful performance and payment security bonds for property improvement agreement number 2020-02, Nebbiolo, Malvasia, The Glen - Tract 10520. EXECUTIVE SUMMARY On and off-site improvements for Nebbiolo, Malvasia, The Glen - Tract 10520 have been completed. The Developer is seeking reduction in the performance bonds per City of Gilroy City Code. Staff is requesting that Council approve the Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payement Security Bonds for Property Agreement number 2020-02 for Nebbiolo, Malvasia, The Glen - Tract 10520. BACKGROUND In August 5, 2019, The Glen Loma Corporation (Developer) received Tentative Map approval for the Nebbiolo, Malvasia, The Glen residential project, to create 171 single- family residential lots located north of Santa Teresa Boulevard, between Merlot Drive and Miller Avenue. [Reference: Resolution No. 2019-46, TM 18-02]. The approvals were Page 51 of 282 to construct streets, utilities, landscaping, lighting, fences, walls, and open space areas. On September 21, 2020, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate, received Council approval of Tract 10520 Final Map and the Property Improvement Agreement 2020-02 for the development of the site and related Public Improvements of the Nebbiolo, Malvasia, and The Glen subdivision. The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map. ANALYSIS Chapter 21, Article III, Section 21.81 of the City Code allows the City Council to authorize a reduction in the payment and performance bonds that the builder provided prior to the Property Improvement Agreements being accepted by Council. The amount of the bond reduction is consistent with the amount of work completed at the time of request. A maintenance bond in the amount of 10% of the construction cost ensures that defective or damaged improvements will be corrected during the one-year maintenance warranty period. The project’s actual improvement costs have been reviewed to ensure that the Maintenance Security amount covers any anticipated issue with the installed improvements. The developer, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate request a reduction of Tract 10520 Faithful Performance and Payment Bonds to a Maintenance Bond. This Maintenance Bond is 10% of the bonds value for the Tract improvements bond, reducing it for Tract 10520 from the original $11,646,051 to $1,164,605. The original security provided for 100% of the estimated construction cost and payment for tract improvements, which consist of new streets, grading, curb, gutter, sidewalk, utilities, landscape, and electrical lighting. The project is fully complete, and the Notice of Completion document is ready for acceptance and recordation with Santa Clara County. Attachment 3 contains the Notice of Completion. ALTERNATIVES Deny the request to approve the Notice of Acceptance and reduction of the bonds. Staff does not recommend this option as it will cause costly and unnecessary development delays. FISCAL IMPACT/FUNDING SOURCE The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map. The Faithful Performance and Payment Bonds held as security will be reduced from Page 52 of 282 $11,646,051 to $1,164,605. PUBLIC OUTREACH N/A NEXT STEPS N/A Attachments: 1. Exhibit A - Vicinity Map GLR Neb Mal Glen Tract 10520 2. Exhibit B - PIA GLR Neb Mal Glen Tract 10520 3. Exhibit C - NOC_Neb Malv Glen Page 53 of 282 Page 54 of 282 Page 55 of 282 Page 56 of 282 Page 57 of 282 Page 58 of 282 Page 59 of 282 Page 60 of 282 Page 61 of 282 Page 62 of 282 Page 63 of 282 Page 64 of 282 Page 65 of 282 Page 66 of 282 Page 67 of 282 Page 68 of 282 Page 69 of 282 Page 70 of 282 Page 71 of 282 Page 72 of 282 Page 73 of 282 Page 74 of 282 Page 75 of 282 Page 76 of 282 Page 77 of 282 Page 78 of 282 Page 79 of 282 Page 80 of 282 Page 81 of 282 SEPARATE PAGE PURSUANT TO GOVT. CODE 27361.6 RECORDING REQUESTED BY: City of Gilroy WHEN RECORDED MAIL TO: Thai Pham City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 NOTICE OF ACCEPTANCE OF COMPLETION NOTICE IS HEREBY GIVEN that work agreed to be performed under the property agreement between the City of Gilroy, a municipal corporation, whose address is 7351 Rosanna Street, Gilroy, CA 95020, and the Contractor mentioned below who developed said project, was accepted as completed by the City of Gilroy on the. Project No.: Property Improvement Agreement No. 2020-02, Project Name Tract 10520 Nebbiolo, Malvasia, The Glen Contractor Name: KB Home South Bay Inc Contractor Address: 6700Koll Center Pkwy, Ste 200 Pleasanton, CA 94566 Surety on Contract: Liberty Mutual Insurance Company Location of Project: Glen Loma Ranch, Tract 10520 Description of Work: Tract Improvements Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems Owner's Name: City of Gilroy Work Done: Install underground utilities, electrical, landscape, and open space __________________________________________________________ This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned declares: That he is an officer of the City of Gilroy, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters that he believes it to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on December 8, 2025. CITY OF GILROY STATE OF CALIFORNIA COUNTY OF SANTA CLARA BY Jorge Duran TITLE Senior Engineer. This document is for the benefit of the City of Gilroy. Request for Recordation without fee is made in accordance with Section 27383 of the Government Code of the State of California. Page 82 of 282 SEPARATE PAGE PURSUANT TO GOVERNMENT CODE SECTION 27361.6 RECORDING REQUESTED BY: ) ) City of Gilroy ) ) ) ) WHEN RECORDED, MAIL TO: ) Kim Mancera, City Clerk ) City of Gilroy ) 7351 Rosanna Street ) Gilroy, CA 95020 ) RECORDED WITHOUT FEE PER CALIFORNIA GOVERNMENT CODE SECTION 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) NOTICE OF ACCEPTANCE OF COMPLETION PROPERTY IMPROVEMENT AGREEMENT NO. 2020-02 PROJECT NAME - Tract 10520, Nebbiolo, Malvasia, The Glen DEVELOPER NAME: KB Home South Bay Page 83 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2024-2025 as Required under Government Code 66000 Meeting Date: December 8, 2025 From: Brad Kilger, Interim 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 annual development impact fee report for Fiscal Year 2024-2025 (FY25). EXECUTIVE SUMMARY In accordance with the Mitigation Fee Act (Act), Government Code 66000 et seq., the City must annually review and make a public report on development impact fees. As such, the attached report is prepared and made available in accordance with the required provisions of the State law. BACKGROUND The Mitigation Fee Act, Government Code 66000 et seq., (adopted as AB 1600 and commonly referred to as “AB 1600 requirements”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. Fees must be separately accounted for and used for the specific purpose for which they were established. The City’s development impact fees are listed on page seven of the attachment. Expenditures are authorized by Council through annual capital and operating budgets and committed via the City’s five- year capital improvement program. Page 84 of 282 ANALYSIS This report is for information purposes only. The establishment of fees and expending of fee-generated revenue occurs in separate Council actions. The revenues and expenditures for FY25 (July 1, 2024, through June 30, 2025) are noted on each impact fee fund’s respective statement in the attached report. ALTERNATIVES None. FISCAL IMPACT/FUNDING SOURCE This report has no direct fiscal impacts as this report only provides information describing each development impact fee and a list of revenues, expenditures, and fund balance for each impact fee fund. The preparation of this report is an annual workplan item of the Finance Department. Attachments: 1. FY25 Impact Fee Report Page 85 of 282 Account FY2025 FUND 410 - Storm Drain Development Impact Fee Number AB 1600 Revenues Storm Drain Development Impact Fees 4105500 45150 31,196$ Bank Interest 4105500 46110 74,401$ Transfer from General Fund 4105500 48110 12,268 Total Revenues 117,865$ Expenditures Contractual Services 4105500 51630 1,827 Overhead Expenses 4105500 54150 760 Total Expenditures 2,587$ Revenues Less Expenditures 115,278$ Fund Balance as of June 30, 2024 2,264,727 Fund Balance as of June 30, 2025 2,380,005$ Relationship between and purpose for which fee is charged: Storm Drain Impact Fee charges are as follows: Residential - Low Density $631/acre Residential - High Density $992/acre Commercial $1,712/acre Commercial-Assembly Hall $631/acre Industrial $1,264/acre City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 Fees are to finance the construction of drainage collection and conveyance systems in conformance with the Gilroy Storm Drain Master Plan in order to accommodate development of new residential, commercial, and industrial uses as well as expand system capacity. Projects are identified and undertaken in compliance with updated and approved master plans based on population projections, the General Plan policies, land use needs, and other standards approved by the City Council. Page 86 of 282 Account FY2025 FUND 420 - Street Tree Development Impact Fee Number AB 1600 Revenues Bank Interest 4205500 46110 8,245 Transfer from General Fund 4205500 48110 55 Total Revenues 8,300$ Expenditures Overhead Expenses 248 Total Expenditures 248$ Revenues Less Expenditures 8,052$ Fund Balance as of June 30, 2024 178,974 Fund Balance as of June 30, 2025 187,026$ Relationship between and purpose for which fee is charged: Street Trees Impact Fee charges are as follows: City Planting and Replacement $3.79/ff City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 The Street Tree Development Impact Fund collects a front footage fee to plant trees in new developments. Page 87 of 282 Account FY2025 FUND 425 - Traffic Impact Fee Number AB 1600 Revenues Traffic Impact Fees 4255500 45150 1,988,918$ Bank Interest 4255500 46110 849,406 Transfer from General Fund 4255500 48110 97,538 Total Revenues 2,935,862$ Expenditures Contractual Services 4255500 51630 117,790 CIP - First & Kern 4255500 53142 191,122 CIP - Luchessa/Church Signal 4255500 53142 50,024 CIP - Monterey/IOOF Signal 4255500 53142 42,943 CIP - 10th St HWY 101 Bridge Widening 4255500 53142 600,000 Interfund Transfer Out 4255500 54110 1,046,337 Overhead Charges 4255500 54150 9,898 Total Expenditures 2,058,114$ Revenues Less Expenditures 877,748$ Fund Balance as of June 30, 2024 17,528,110 Fund Balance as of June 30, 2025 18,405,858$ Relationship between and purpose for which fee is charged: Traffic Impact Fee charges are as follows: Residential - Low Density $13,804/unit Residential - High Density $11,190/unit Commercial - Low Traffic $15,274/ksf Commercial - High Traffic $30,853/ksf Industrial - General $6,052/ksf Industrial - Warehouse $4,387/ksf City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 Fees are to finance the construction of streets, bridges, interchanges and traffic signals as identified in the City's General Plan Circulation Element to accommodate development of new residential, commercial, and industrial uses for the purpose of expanding transportation system capacity. Projects are completed in conformance with approved master plans based on the General Plan, population projections, land use, and other standards approved by the City Council. Page 88 of 282 Account FY2025 FUND 430 - Sewer Development Impact Fee Number AB 1600 Revenues Sewer Development Impact Fees 4305500 45150 1,153,573$ Bank Interest 4305500 46110 772,851 Transfer from General Fund 4305500 48110 56,702 Total Revenues 1,983,126$ Expenditures Contractual Services 4305500 51630 3,247$ Interfund Transfer Out 4305500 54110 2,244,400 Total Expenditures 2,247,647$ Revenues Less Expenditures (264,520)$ Fund Balance as of June 30, 2024 17,322,624 Fund Balance as of June 30, 2025 17,058,104$ Relationship between and purpose for which fee is charged: Sewer Development Impact Fee charges are as follows: Residential - Low Density $14,002/unit Residential - High Density $7,576/unit Commercial $4,431/cgpd Industrial $4,431/cgpd City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 Fees are to finance the construction of expanded sewer collection, treatment and conveyance systems as identified in the Sewer Master Plan in order to accommodate development of new residential, commercial, and industrial uses based on standards adopted by the City Council. Page 89 of 282 Account FY2025 FUND 435 - Water Development Impact Fee Number AB 1600 Revenues Water Development Impact Fees 4355500 45150 301,317$ Bank Interest 4355500 46110 339,667 Transfer from General Fund 4355500 48110 11,786 Total Revenues 652,770$ Expenditures Contractual Services 4355500 51630 3,247 CIP - McCarthy Well Project 4355500 53142 24,264 Total Expenditures 27,510$ Revenues Less Expenditures 625,260$ Fund Balance as of June 30, 2024 7,157,919 Fund Balance as of June 30, 2025 7,783,179$ Relationship between and purpose for which fee is charged: Water Development Impact Fee charges are as follows: Residential - Low Density $4,810/unit Residential - High Density $1,945/unit Commercial $7,539/kgpd Industrial $7,539/kgpd City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 Fees are to finance the construction of improvements and expansion of water production, transmission, distribution and storage systems within Pressure Zone 1 as described in the Water Master Plan. This includes costs necessary to accommodate the capacity requirements of new residential, commercial and industrial uses and in accordance with the General Plan, population increase projections and other standards established by the City Council. Page 90 of 282 Account FY2025 FUND 440 - Public Facilities Impact Fee Number AB 1600 Revenues Public Facilities Impact Fees 4405500 45150 1,578,836$ Bank Interest 4405500 46110 93,415 Misc Revenues 4405500 47810 207,265 Interfund Transfer In 4405500 48110 81,526 Total Revenues 1,961,042$ Expenditures Contractual Services 4405500 51630 62,344 CIP - Gilroy Ice Center 4405500 53142 424,946 CIP - Civic Center Master Plan 4405500 53142 432,700 Interfund Transfer Out 4405500 54110 2,978,011 Overhead Charges 4405500 54150 16,187 Interfund Interest Expense 4405500 58125 29,179 Total Expenditures 3,943,366$ Revenues Less Expenditures (1,982,324)$ Fund Balance as of June 30, 2024*(318,629) Fund Balance as of June 30, 2025* (2,300,953)$ Relationship between and purpose for which fee is charged: Public Facility Impact charges are as follows: Residential - Low Density $23,878/unit Residential - High Density $20,089/unit Commercial $3,598/ksf Industrial $1,594/ksf City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2024-2025 Fees are to finance the construction of parks, police, fire, library, and other recreational facilities as identified in the Public Facilities Master Plan based on the need to expand City facility capacity to accommodate new development and pursuant to standards approved by the City Council. *Note that in 2008 the City purchased the Gilroy Gardens Property for $13.7 million, of which there is a remaining balance of approximately $2.5 million at June 30, 2025. The loan is expected to be fully repaid by June 30, 2028. The Fund Balance above includes the remaining loan payable amount. This amount is shown as a liability, resulting in the negative balance stated above. The actual cash balance in the fund at June 30, 2025, is $0.5 million. Page 91 of 282 FUND 410 - Storm Drain Development Impact Fee Residential - Low Density $631/acre Residential - High Density $992/acre Commercial $1,712/acre Commercial-Assembly Hall $631/acre Industrial $1,264/acre ADU - 750 sf or larger $113.87x FUND 420 - Street Tree Development Impact Fee City Planting and Replacement $3.79/ff FUND 425 - Traffic Impact Fee Residential - Low Density $13,804/unit Residential - High Density $11,190/unit Commercial - Low Traffic $15,274/ksf Commercial - High Traffic $30,853/ksf Industrial - General $6,052/ksf Industrial - Warehouse $4,387/ksf ADU - 750 sf or larger $5,204.65x FUND 430 - Sewer Development Impact Fee Residential - Low Density $14,002/unit Residential - High Density $7,576/unit Commercial $4,431/cgpd Industrial $4,431/cgpd ADU - 750 sf or larger $3,523.72x FUND 435 - Water Development Impact Fee Residential - Low Density $4,810/unit Residential - High Density $1,945/unit Commercial $7,539/kgpd Industrial $7,539/kgpd ADU - 750 sf or larger $904.65x FUND 440 - Public Facilities Impact Fee Residential - Low Density $23,878/unit Residential - High Density $20,089/unit Commercial $3,598/ksf Industrial $1,594/ksf ADU - 750 sf or larger $9,343.72x Notes: ksf represents per 1,000 square foot cgpd represents per hundreg gallons per day ff represents per front footage sf represents per square feet ADUs less than 750 sf are exempt from impact fees ADUs larger than 750 sf use the aforementioned rates with the below formula Rate X [total ADU sf/total primary residence sf] City of Gilroy Impact Fee Schedule Summary For Fiscal Year 2024-2025 Page 92 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Approval of a Contract Amendment to the Tree Maintenance Contract with West Coast Arborists, Inc in the Amount of $69,319 for Hecker Pass Tree Pruning. Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Matt Jones, Deputy Public Works Director STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION 1. Approve a Contract Amendment to the current Tree Maintenance Services Agreement with West Coast Arborists, Inc in the amount of $69,319 to fund tree maintenance services along the Hecker Pass Road corridor. 2. Authorize the City Administrator to execute the amendment. EXECUTIVE SUMMARY The City’s existing tree maintenance contractor, West Coast Arborists, Inc. (WCA), provided a cost proposal to perform essential pruning, deadwood removal, and hazard mitigation on approximately 147 trees along the Hecker Pass Road corridor. The total service cost is $69,319. The City Council allocated funds on October 20, 2025 for the project. Although the scope of services is consistent with the City current agreement with WCA, there are insufficient funds available in FY26 to complete other scheduled maintenance, address emergency needs over the winter and complete the Hecker Pass Road corridor tree pruning. Page 93 of 282 BACKGROUND The City maintains an active Tree Maintenance Services Agreement with West Coast Arborists, Inc. (WCA), executed in 2021, to provide ongoing and as-needed tree maintenance services citywide. During the FY 2024–25 year-end financial report, staff identified available budget capacity to continue priority tree maintenance and park improvement activities into FY 2025–26. On October 20, 2025, the City Council adopted a resolution approving a budget amendment which included the following language, "Additionally, the division is recommending $69,000 in appropriations for tree trimming work not already included in the adopted FY26 budget. This additional work is proposed for the clean-up of the City’s gateways, specifically, Hecker Pass Highway from Santa Teresa to Burchell Road." This item implements that Council-approved direction by appropriating the funds necessary to perform targeted risk-reduction pruning along the Hecker Pass corridor consistent with the gateway beautification focus described above. Recent field inspections have identified hazardous limb conditions, excessive end- weight, and roadway clearance conflicts associated with mature cedar and oak trees located adjacent to the Hecker Pass travel lanes. To address these public safety concerns efficiently, staff requested and received a proposal from the current contractor, WCA, totaling $69,319 to perform hazard mitigation pruning, traffic-controlled lane closures, corrective cuts, and deadwood removal. Work performed through this action ensures continued risk mitigation, supports safe travel conditions, and fulfills Council’s previously expressed priority to enhance the visual and safety conditions of one of the community’s primary gateways. ANALYSIS The Hecker Pass Road corridor is a primary arterial route carrying significant daily vehicle traffic at higher speeds. Hecker Pass is also regularly used by bicyclists. The adjacent tree canopy includes mature cedars and oaks with structural conditions that elevate the likelihood of limb failure into the roadway. Proactive pruning and risk mitigation at this location are therefore time-sensitive and directly tied to public safety and liability exposure. The City currently has a Tree Maintenance Services Agreement with West Coast Arborists, Inc. to provide on-call tree maintenance services citywide. Utilizing the current contractor ensures consistency with established maintenance standards, avoids delays associated with a separate procurement process, and enables the work to be scheduled efficiently. Page 94 of 282 While there is adequate remaining contract authority to perform this work under the existing agreement, the current year operating budget does not contain sufficient programmed funds to support this specific corridor effort. Approving the requested contract amendment allows the City to maintain the intended balance of tree maintenance services citywide, without disrupting routine operations, emergency response readiness, or other priority hazard-reduction projects already anticipated for the fiscal year. Completion of this targeted pruning effort now also reduces the likelihood of costlier emergency response work later in the year, when failures may occur during winter weather events or high wind conditions. ALTERNATIVES If Council does not approve the contract amendment, staff would be required to utilize the remaining balance of the current tree maintenance contract to complete this work. Doing so would reduce the funding capacity reserved for other priority locations, including corrective pruning, storm response readiness, risk-mitigation zones, and routine tree care throughout the City. This could result in deferred maintenance, fewer planned tree operations during the fiscal year, and increased exposure to unanticipated emergency costs if conditions deteriorate or failures occur elsewhere. FISCAL IMPACT/FUNDING SOURCE The cost for the hazard mitigation pruning along the Hecker Pass corridor is $69,319 and is funded from the General Fund (100). An agreement amendment is required to add the work and related compensation to the existing agreement. As part of the FY 2024–25 year-end financial report and budget amendment adopted by the City Council on October 20, 2025, funding for this project was identified and prioritized as part of the City’s gateway enhancement and tree trimming efforts along Hecker Pass Highway. This staff report aligns current-year spending authority with that previously approved by the Council direction and approved budget. PUBLIC OUTREACH Public outreach was not required. NEXT STEPS If Council approves the contract amendment, Finance will process the appropriation to ensure funds are available in the current fiscal year, and Public Works will authorize the Page 95 of 282 tree work to be completed by West Coast Arborists, Inc. under the existing Tree Maintenance Services Agreement. Work will commence as soon as WCA can schedule and weather is appropriate. The work may require a temporary encroachment permit from Caltrans which will impact start of the work. Attachments: 1. 2021 Agreement 2. Amendment to Agreement 3. WCA Quote for Hecker Pass Page 96 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 97 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 98 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 99 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 100 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 101 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 102 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 103 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 104 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 105 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 106 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 107 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 108 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 109 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 110 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 111 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 112 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 113 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 114 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 115 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 116 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 117 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 118 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 119 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 120 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 121 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 122 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 123 of 282 DocuSign Envelope ID: 744D36BE-9A3B-4D2B-9B2D-50055F2F0B11 Page 124 of 282 -1- 4845-8215-5540v1 MDOLINGER\04706083 FIFTH AMENDMENT TO AGREEMENT WITH WEST COAST ARBORISTS, INC. TO PROVIDE CITY TREE MAINTENANCE SERVICES This Fifth Amendment to the Agreement for Services (“Fifth Amendment”) is made and entered into as of November 21, 2025 (“Effective Date”), by and between the City of Gilroy, a California municipal corporation (“CITY”), and West Coast Arborists, Inc. (“CONTRACTOR”). WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services, effective on August 18, 2021, hereinafter referred to as “Original Agreement”; and WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. Article 4, Item A. (Consideration) of the Original Agreement shall be amended to read as follows: “In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $395,045 for year 1, $406,897 for year 2, $419,104 for year 3, $431,677 for year 4 and $513,946 for year 5 for services of this Agreement.” 2. This Amendment shall be effective on November 21, 2025. 3. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 4. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CONTRACTOR: West Coast Arborists, Inc. CITY: CITY OF GILROY By: By: [signature] [signature] [employee name] [name] [title/department] [title] Date: Date: Page 125 of 282 -2- 4845-8215-5540v1 MDOLINGER\04706083 Approved as to Form: Attest: City Attorney City Clerk Page 126 of 282 JOB LOCATION Hecker Pass Hwy from Santa Teresa Blvd to Burchell Rd. SCOPE OF WORK Prune 117 Cedars and about 15 Oak trees to raise canopies, end weigh reduction, dead wood removal, and fix old cuts/stubs for safety. CUSTOMER INFORMATION Main Contact Billing Contact MATT JONES SHEILA CASTILLO CITY OF GILROY 7351 ROSANNA STREET GILROY, CA 95020 408.846.0275 Matt.Jones@ci.gilroy.ca.us CITY OF GILROY 7351 ROSANNA STREET GILROY, CA 95020 408.846.0569   Inventory Needed Link Funds to Job #Purchase Order #DIR Project ID # Yes 92979 DESCRIPTIONQTY U/M UNIT PRICE TOTAL 220.00 Crew Rental - per man Man Hour $78.80 $17,336.00 132.00 Tree Prune >40' Tall Each $291.50 $38,478.00 50.00 Specialty Equipment Rental Hour $270.10 $13,505.00 $69,319.00GRAND TOTAL: COMMENTS Heavy traffic area, we will need 2 flag man and heavy traffic control to set up closing one lane. Trees are located on the southside of the road. We will be concentrating on end weigh reduction, too many failure branches. We will need 85 or 90 ft aerial to reach tallest Cedars.  DISCLAIMER: West Coast Arborists, Inc. ensures the quality of work performed, however, we do not ensure the agency's entire tree population from failure. Conditions are often hidden within trees and below ground. Arborists cannot guarantee that a tree will be healthy or safe under all circumstances. The controlling authority must manage trees and accept some degree of risk. Only work identified in the scope of the proposal and in the contract line item is included in our quote or invoice. All work will be completed in accordance with ANSI A300 standards. Price reflects payment under prevailing wage rates under the wage determination: Tree Maintenance Laborer and report of certified payroll to the Department of Industrial Relations as applicable in accordance with state labor laws. PROPOSAL IS VALID FOR 90 DAYS. CA Contractors License 366764 Federal Tax ID: 95-3250682 CA DIR Registration 1000000956 JUAN ORTIZ 09/10/25 ESTIMATED BY TITLE DATE DATETITLEACCEPTED BY AREA MANAGER WEST COAST ARBORISTS, INC. 390 Martin Avenue Santa Clara, CA 95050  408.855.8660 Phone 408.844.8606 Fax WCAINC.COM Proforma # 98972 PROFORMA FOR TREE MAINTENANCE SERVICESPROFORMA FOR TREE MAINTENANCE SERVICES Printed on: 9/11/2025 11:05:29 AM Page 1 of 1 Deputy Director of Public Works 10/27/2025 Page 127 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Award a Contract to Youth Alliance for $130,105.14 for South County Youth Task Force (SCYTF) School-Based Youth Services Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Police Submitted by: Luke Powell, Police Captain Prepared by: Patricia Vigil, Management Analyst STRATEGIC PLAN GOALS: Ensure Neighborhood Equity from City Services RECOMMENDATION 1. Award a contract to Youth Alliance in the amount of $130,105.14 for school- based services, Project No. 25-RFP-PD-523 and, 2. Authorize the City Administrator to execute the contract and associated documents. EXECUTIVE SUMMARY In January 2012, the City of Gilroy, City of Morgan Hill, Gilroy and Morgan Hill Unified School Districts and the Santa Clara County Board of Supervisors met and created the South County Youth Task Force (SCYTF) to address the effects of violence and gangs on youth and in the community. Funding is provided through the SCYTF, Cities of Gilroy and Morgan Hill, Gilroy and Morgan Hill School Districts (GUSD and MHUSD), Santa Clara County Library District, Santa Clara County Juvenile Probation Department, the Santa Clara County Neighborhood Safety Unit and Santa Clara County District Attorney’s Office. As the fiscal agent for the South County Youth Task Force, the Police Department manages the funding for the SCYTF. Funding from the District Attorney’s Office, Santa Clara and the Gilroy Unified School District will be used to cover the total amount of this Page 128 of 282 agreement. The SCYTF funding has sponsored many programs such as the Restorative Community Circles with GPD, Resident Leadership Development, School-based and Community- based Youth Restorative Justice, Case Management, Crisis Response, Street Outreach, National Compadres Network Xinachtli/Joven Noble Circles, Late Night Gyms, a Mentorship Boxing Program, After School Programs in both Morgan Hill and Gilroy and training opportunities for the SCYTF body, made up of over 45 different organizations. BACKGROUND The South County Youth Task Force (SCYTF) is a regional partnership dedicated to serving, supporting, and uplifting our youth in South Santa Clara County (Morgan Hill, Gilroy, and the unincorporated town of San Martin). This collaboration includes local governments, school districts, community and faith-based organizations, and law enforcement agencies. SCYTF’s work is guided by its Mission and Vision: Mission: To promote a safe and nurturing community that creates and ensures sustainable access to opportunities, resources, and services for South County youth and their families, while empowering their voice and supporting their growth and success. Vision: A community that is safe and free of youth violence where young people are strong, thriving and connected to their families, schools, and neighborhoods. ANALYSIS The school-based services are offered throughout the Gilroy Community for youth ages 9-17 and young adults ages 18-20 to prevent violence. Services are prioritized for youth who live in opportunity neighborhood with high disparities (e.g., poverty, food insecurity, gang exposure, violence, drugs); are on probation or impacted by gang involvement; and/or fall within the spectrum from At-Promise (At-Risk) to High-Promise (High-Risk) Youth. SCYTF school-based programs offers alternative options for youth to be able to access services and programs in their schools and that are at free cost. These youth services are part of the South County Project II THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement) Project, in effort to prevent and reduce juvenile delinquent behaviors, prevent/ reduce recruitment of youth into gangs and prevent/ reduce youth violence in South Santa Clara County per the 2023-2026 SCYTF Strategic Plan. On September 3, 2025, Request for Proposals (RFP), 25-RFP-PD-523, was published on the City of Gilroy’s website soliciting proposals from Community-Based Organizations (CBOs) to provide professional consulting services for the SCYTF Page 129 of 282 School-Based Services. A total of three proposals were received. Proposals were received from three vendors: 1. Pacific Clinics 2. Catholic Charities of Santa Clara County 3. Youth Alliance A scoring committee reviewed and ranked the proposals received based on the criteria identified in the RFP. Based on the scoring proposals, Youth Alliance was determined to be the most qualified vendor for this assignment due to their understanding and approach to the project, proposed scope of services, qualifications, capacity to provide qualified personnel, and project cost-effectiveness. ALTERNATIVES Council could reject the award of contract to Youth Alliance. Staff does not recommend this option as it would mean the SCYTF Strategic Plan to deliver school-based youth services and the continuation of the youth programs will be impacted. FISCAL IMPACT/FUNDING SOURCE The proposed agreement with Youth Alliance is for $130,105.14. Funding for this project is provided by the South County Youth Task Force’s contributing agencies, including the District Attorney’s Office, Gilroy Unified School District, and Santa Clara County Library District. PUBLIC OUTREACH NEXT STEPS If approved by Council, the agreement will be executed, and preparations will be made to begin providing services to youth. Attachments: 1. Youth Alliance- City of Gilroy Agreement School-Based Youth Services 11.10.25 Page 130 of 282 -1- 4835-2267-0361v1LAC\04706083 AGREEMENT FOR SERVICES (For contracts over $5,000 - CONSULTANT) This AGREEMENT made this 9th day of December, 2025, between: CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California and CONSULTANT: Youth Alliance, having a principal place of business at 310 4th St. Ste 101 Hollister, CA 95023 . ARTICLE 1. TERM OF AGREEMENT This Agreement will become effective on December 9, 2025 and will continue in effect through December 31, 2026 unless terminated in accordance with the provisions of Article 7 of this Agreement. Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial ARTICLE 2. INDEPENDENT CONTRACTOR STATUS It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes. CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement. ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT A. Specific Services CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”). B. Method of Performing Services CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services. Page 131 of 282 -2- 4835-2267-0361v1LAC\04706083 C. Employment of Assistants CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding. D. Place of Work CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services. ARTICLE 4. COMPENSATION A. Consideration In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $130,105.14. B. Invoices CONSULTANT shall submit invoices for all services rendered. C. Payment Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties. D. Expenses CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANT’S costs of doing business. Page 132 of 282 -3- 4835-2267-0361v1LAC\04706083 ARTICLE 5. OBLIGATIONS OF CONSULTANT A. Tools and Instrumentalities CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY. B. Workers’ Compensation CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees. C. Indemnification of Liability, Duty to Defend 1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. 2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. D. Insurance In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements Page 133 of 282 -4- 4835-2267-0361v1LAC\04706083 set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work. As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms. E. Assignment Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion. F. State and Federal Taxes As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that: ● CITY will not withhold FICA (Social Security) from CONSULTANT’S payments; ● CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf; ● CITY will not withhold state or federal income tax from payment to CONSULTANT; ● CITY will not make disability insurance contributions on behalf of CONSULTANT; ● CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT. Page 134 of 282 -5- 4835-2267-0361v1LAC\04706083 ARTICLE 6. OBLIGATIONS OF CITY A. Cooperation of City CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement. B. Assignment CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement. ARTICLE 7. TERMINATION OF AGREEMENT A. Sale of Consultant’s Business/ Death of Consultant. CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale. If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT. B. Termination by City for Default of Consultant Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following: 1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement. 2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement. CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY Page 135 of 282 -6- 4835-2267-0361v1LAC\04706083 may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement. C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY. D. Transition after Termination Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services. ARTICLE 8. GENERAL PROVISIONS A. Amendment & Modification No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto. B. Americans with Disabilities Act of 1990 Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either. C. Attorneys’ Fees If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable Page 136 of 282 -7- 4835-2267-0361v1LAC\04706083 attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled. D. Captions The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation. E. Compliance with Laws The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor. F. Conflict of Interest CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement. G. Entire Agreement This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY. Page 137 of 282 -8- 4835-2267-0361v1LAC\04706083 H. Governing Law and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California. I. Notices Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph. Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing. J. Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. K. Time of the Essence All dates and times referred to in this Agreement are of the essence. L. Waiver CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Executed at Gilroy, California, on the date and year first above written. CONSULTANT: CITY: Youth Alliance CITY OF GILROY By: By: Name: Eduardo Navarro Name: Brad Kilger Title: Chief Operating Officer Title: Interim Administrator, City of Gilroy Social Security or Taxpayer Identification Number 77-0377245 Page 138 of 282 -9- 4835-2267-0361v1LAC\04706083 Approved as to Form ATTEST: City Attorney City Clerk Page 139 of 282 -1- 4835-2267-0361v1LAC\04706083 EXHIBIT “A” SPECIFIC PROVISIONS I. PROJECT MANAGER CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Eduardo Navarro , who will act in the capacity of Project Manager, and who will personally direct such Services. Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement. II. NOTICE TO PROCEED/COMPLETION OF SERVICE A. NOTICE TO PROCEED CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Sandra Cruz, South County Youth Task Force Coordinator shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”. B. COMPLETION OF SERVICES When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period. III. PROGRESS SCHEDULE The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”. IV. PAYMENT OF FEES AND DIRECT EXPENSES Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement. Page 140 of 282 -2- 4835-2267-0361v1LAC\04706083 Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses. V. OTHER PROVISIONS A. STANDARD OF WORKMANSHIP CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes. B. RESPONSIBILITY OF CONSULTANT CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement. C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request. D. CONFIDENTIALITY OF MATERIAL All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or Page 141 of 282 -3- 4835-2267-0361v1LAC\04706083 other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY. E. NO PLEDGING OF CITY’S CREDIT. Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY. F. OWNERSHIP OF MATERIAL. All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”. CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT. G. NO THIRD PARTY BENEFICIARY. This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. H. NOTICES. Notices are to be sent as follows: CITY: Sandra Cruz, SCYTF Coordinator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Page 142 of 282 -4- 4835-2267-0361v1LAC\04706083 CONSULTANT: Eduardo Navarro, COO Youth Alliance 310 4th. St. Hollister CA 95023       I. FEDERAL FUNDING REQUIREMENTS. ☐ If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply. ☒ If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply. 1. DBE Program CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs. 2. Cost Principles Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items. 3. Covenant against Contingent Fees The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. Page 143 of 282 -1- 4835-2267-0361v1LAC\04706083 EXHIBIT “B” SCOPE OF SERVICES CONSULTANT Youth Alliance (YA) will coordinate and provide services, outlined and specified in reporting data outlined below, necessary for program evaluation: ie. monthly progress and quarterly financial reporting utilizing Program Activity Report (PAR), Units of Service Workbook (OUS) report and invoicing format; as well as ongoing program improvement, to the City of Gilroy in a timely matter. This program is part of the South County Project II THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement) Project, in effort to prevent and reduce juvenile delinquent behaviors, prevent/ reduce recruitment of youth into gangs and prevent/ reduce youth violence in South Santa Clara County. Service delivery time frame: December 9, 2025- December 31, 2026. CONSULTANT Youth Alliance shall complete the following services: 1. Case Management (Life Coaching) and Intervention Support. • A total of 15 unduplicated youth in strategically identified Gilroy Unified District schools, as recommended by GUSD and SCYTF trends. Youth will be referred by GUSD, SCYTF, MDT, and up to 10 youth (duplicated) from Evidence-Based Groups. Total youth to receive Case Management services is 25. • Youth will receive weekly sessions up to 6 months. • Maintain a written and/or electronic individualized client file documenting progress, assessments, and services plans. • Use retrospective surveys to assess effectiveness of services. • Both parties agree to act in good faith to fulfill the intent and obligations of this Agreement. YA’s ability to perform case management services for up to fifteen (15) unduplicated, school-referred youth is expressly contingent upon the timely and appropriate referral of eligible youth by the GUSD, MDT and/or SCYTF. Youth Alliance shall not be held liable or in breach of this Agreement if, SCYTF in partnership with GUSD and MDT fail to identify, refer, or maintain a sufficient number of eligible youth necessary to meet the referral target. YA agrees to notify the SCYTF Coordinator in writing if they are struggling in meeting their CM numbers at least 6 months before the end of this agreement to work on a collective plan to meet this deliverable. If plan does not work, YA’s obligation shall be deemed satisfied upon the successful enrollment and case management of a minimum of ten (10) youth referred through evidence-based groups or other eligible referral sources, as applicable. SCYTF agree to exercise due diligence in identifying and referring youth who meet the established criteria for participation. Failure to make such referrals shall not constitute nonperformance or negligence on the part of YA. Each party agrees to communicate promptly and collaboratively to Page 144 of 282 -2- 4835-2267-0361v1LAC\04706083 address any challenges that may impact referral flow, participant eligibility, or program implementation. 2. Eight (8) Evidence-Based, Culturally Responsive Youth Groups: • Implement eight (8) evidence-based or life skills youth groups throughout the 12-month contract period (e.g., El Joven Noble, Xinachtli Rights of Passage, Cara Y Corazon; Life Skills Programs, such as Why Try, BOTVIN groups, Restorative Justice based groups, or any other pre-approved curricula (curriculum must be submitted for approval). • Groups should be distributed over the year in selected Gilroy Unified District schools, as recommended by GUSD and SCYTF (e.g., 4 in the fall/ winter and 4 in the spring/summer). • Each group will serve a minimum of 7 unduplicated youth, with a total of at least 56 unduplicated individuals served across all groups. 3. Outreach, Community Engagement and Intervention Support Services • Provide outreach and intervention supports at identified key schools. • Facilitate at least one (1) Peace/Community Building Circle series at a identified school site. • Conduct Outreach a minimum of two (2) days per week at assigned locations for at least four (4) hours per day. Locations will vary depending on the need. 4. Secondary Crisis Response • Support identified schools in maintaining a positive, restorative, and safe culture. • Provide crisis response and intervention before, during, or after school, and/or in the community. • Activities may include outreach, restorative circles, one-on-one support, and participation in Multi-Disciplinary Team meetings (MDTs) or youth advocacy sessions. • Crisis Response and Intervention Support can happen before, during or after school, and/ or in the community. 5. Provide Linkage and Referral • Provide referrals and connections to relevant community and county services and resources as needed. • Provide linkage to the Community-Based Gilroy Late Night Gym THRIVE Program as needed for identified youth 6. Collaboration and Participation • Participate in Monthly Technical Team, Multi-Disciplinary Team (MDT) and ad hoc Violence Disruption meetings (as needed). Page 145 of 282 -3- 4835-2267-0361v1LAC\04706083 • Lead or co-chair at least one (1) Tech Team subcommittees. • Collaborate with the City of Gilroy, GUSD, SCYTF South County Technical Team, and other local partners that have an SCYTF MOU, to advance shared goals of violence prevention, neighborhood safety and restorative practices. 7. Program Evaluation and Reporting • Serve 71 unduplicated youth across all services using the City-provided Units of Service Workbook. • Conduct entrance and exit surveys to measure changes in behavior, attitudes, and overall well- being. • Submit the following documentation regularly: • Monthly calendars of programs/ activities • Sign-in sheets • Survey results (pre/ post and/or retrospective) • Narrative and data-driven reports • Monthly updates to SCYTF Administration and Schools • Any other requested measurable deliverables 8. Outreach and Branding Support • Coordinate with the SCYTF Administration Team and Monthly MDTs, for outreach, collaboration, and co-branded activities and materials. • Post all workshops and event flyers pertaining to this work on the SCYTF website. • Work to further the goals and efforts of building a restorative community and preventing and de- escalating youth violence and anti-social behaviors in South County • Conduct entrance and exit surveys at the end of services (as they pertain to the strategy) to measure changes in behavior and well-being. • Submit the following documentation monthly: narrative/reports, calendars, sign-in sheets, City- provided units of service workbook and other measurable metrics to prove expected deliverables are met with SCYTF Administration. 9. Must provide a client list (First Initial and Last Initial) that includes the following: i. Name of youth served; Page 146 of 282 -4- 4835-2267-0361v1LAC\04706083 ii. Include assigned Probation File Numbers for Youth (if applicable); iii. Date of birth of youth served; iv. Start date of when youth started receiving services; v. End date of when youth stopped receiving services; vi. ZIP Code of youth served (if available); vii. Ethnicity of youth served (if available); and viii. Hours of service per youth by activity type. 10. Groups: Maintain and submit sign-in sheets monthly to track participation, Monthly Units of Service Reports, and pre/post surveys on the start and end of groups. 11. Participate in contract monitor meetings every other month and attend other necessary meetings and activities and have the flexibility to attend necessary meetings and activities as they arise, which may occur outside of traditional 8:00 a.m. to 5:00 p.m., Monday through Friday work hours. 12. Population to be served: children and young adults (Youth between the ages of 10-24 (any gender or non-binary), who reside or attend school in Gilroy (zip code areas 95020 and 95021) and can fall in one or more of the following categories: i. At Promise (At-Risk) Youth”: Defined as youth who live in or attend schools in low-socio economic areas, referred to as “Hot Spots” within the first Strategic Plan that exhibit Stability Needs; Potential Harm to Self or Others; Offending Behavior; Trauma History/ Lack of Healthy Coping Abilities and Re-Victimization Risk, ii. High–Promise (High-Risk) Youth: Defined as youth exhibiting high risk behavior(s) related to gang lifestyles, re-offending and/or participating in gang intimidation or behaviors associated with violence. This category distinguishes from “at-risk” population in that it generates additional characteristics demonstrating social-risk factors and level of intensity. iii. “Youth who demonstrate to be severely impacted/gang intentional”: Social circle is integrated into intergenerational gang-membership environment and/or affected by intergenerational drug use youth self-identified, and/or are arrested for gang-related incidents or acts of violence through the justice system. 13. Have the needed level of flexibility to attend necessary meetings, including monthly, Technical Team meetings and impromptu climate and crisis meetings; and have ability to work weekends (with 30 day advanced notice) for important or large events and evenings as deemed necessary to carry out successful coordination of project services. 14. Transport of Youth: Transportation can only occur after all necessary insurance(s) have been completed and insurances and waivers meet all necessary insurance guidelines. One-to-one driving Page 147 of 282 -5- 4835-2267-0361v1LAC\04706083 is not allowed. Consultant and youth in transport must be of the same gender, or there may be another staff member in the car of the opposite gender. This may include City of Gilroy staff. A guardian/parental permission slip must be signed each time a youth enters CONSULTANT'S vehicle. If transportation occurs under life coaching/case management, all intake paperwork must be up to date and the two-to-one ratio must be enforced. Contact of youth and transportation must follow County and City procedures. 15. Locations of services will occur at the identified schools, as deemed appropriate per client need. Contact of client and transportation must follow County and City procedures. Page 148 of 282 -1- 4835-2267-0361v1LAC\04706083 EXHIBIT “C” MILESTONE SCHEDULE Management Plan Youth Alliance (YA) is uniquely positioned to deliver the THRIVE project scope of work with a proven history of supporting vulnerable youth across South County. For over a decade, YA has partnered with Gilroy Unified School District (GUSD), Morgan Hill Unified School District (MHUSD), and the South County Youth Task Force (SCYTF) to implement culturally responsive and evidence-based programming that addresses youth violence prevention, case management, leadership development, and restorative practices. YA currently serves more than 2,300 youth annually through all its programs and has connected with thousands of youth throughout the years with THRIVE-sponsored groups, demonstrating our capacity to replicate and expand this work with measurable outcomes. YA has successfully executed programs with similar scopes of work, including case management (life coaching), mentorship, systems navigation, and re-entry planning. Our staff provide individualized support to youth impacted by poverty, food insecurity, violence, substance abuse, and gang involvement. This includes one-on-one life coaching sessions, youth groups, re-entry planning for justice-involved youth, and warm referrals to educational, mental health, housing, and job training resources. In parallel, YA has facilitated evidence-based youth groups such as El Joven Noble, Xinachtli, Cara y Corazón, BOTVIN LifeSkills, Why Try, and Restorative Justice circles. Each of these initiatives has been fully implemented in collaboration with schools, community centers, and law enforcement partners, reinforcing YA’s ability to manage and deliver complex, multi-layered projects. Timeline of schedule of events is subject to change and may include, but not limited to: Phase I of the project consists of our OLLIN (Organizing Leaders to Learn, Inform and Nurture) and Xinachtli youth leadership development workshops. - Weekly Youth Leadership development workshops (12 week session). Our goal is to have 60 unduplicated high-risk, at-promise 9-24 year old participants. - Develop the positive potential/social capital of youth at-risk of substance use into youth leaders with valuable life skills, strong sense of self-worth, and self-empowerment. Phase II of the project consists of the HEROES (Honorable Educators Respecting, Organizing & Exemplifying Success) youth leadership advocacy group. Page 149 of 282 -2- 4835-2267-0361v1LAC\04706083 - Participants will be youth who have graduated from our Phase I groups as well as fresh referrals of students who are trending towards leadership roles at the outset. - 24-week leadership development program which takes on students from Phase I as well as fresh referrals of students who are trending towards leadership roles at the outset. The result is a dynamic peer group designed to foster peer mentorships and facilitate new perspectives and unlikely relationships. Our goal is to have 20 unduplicated high risk, at-promise 9-24 year old participants. - Research issues of substance abuse, assess the nature of problems within their immediate community. Phase III of the project consists of the LIT (Leaders in Training) and HYPE (Healthy Youth Promoting Education) positive youth development framework. - Drop Zone (Drop-in Center): Ongoing drop in center services at our Gilroy Youth Impact Center, yearly, evening, recreation, art, and positive youth activities aiming to serve a total of 25 unduplicated youth per year. - Leaders in Training (LIT): 12 week session of leadership training and development while also coaching and mentoring OLLIN and Xinachtli groups. LIT will also focus on youth governance models and a community strategy to amplify youth voice. PROJECT SCHEDULE (December 2025/January 2026) ● Program Launch and Onboarding ○ Kickoff meetings with SCYTF, GUSD, and partners. Confirm school sites and finalize referral process. Page 150 of 282 -3- 4835-2267-0361v1LAC\04706083 ○ Staff alignment and refresher trainings (trauma-informed care, RJ, case management). ● Outreach and Engagement ○ Begin 2x weekly school-site outreach (4+ hours each). ○ Relationship-building with students, parents, and staff. ○ Enroll initial case management cohort (8–10 youth). ● Youth Groups (Pilot Launch) ○ Launch 1–2 groups before winter break (smaller scale). ● Deliverables: Activity calendars, enrollment updates, initial survey data, SCYTF updates. Note: Youth availability decreases in mid-December due to family holiday travel. Winter 2026 (January – March) ● Case Management Expansion ○ Weekly one-on-one sessions for active caseload. ○ Increase to 15–20 youth enrolled. ● Youth Groups (Core Delivery Phase) ○ Implement 3 evidence-based/life skills groups (10+ youth each). ○ Strongest window for consistent attendance before spring break. Youth Alliance - SCYTF School-Based Youth Services 25-RFP-PD-523 9 ● Community Building & Crisis Response ○ Facilitate Peace/Community Building Circle series at a selected school site. ○ Provide crisis response as needed, including MDT participation. ● Deliverables: Monthly reports, sign-in sheets, entrance surveys. Spring 2026 (April – June) ● Case Management Continuation ○ Maintain caseload (up to 24 youth). Page 151 of 282 -4- 4835-2267-0361v1LAC\04706083 ○ Begin re-entry planning for graduating or transitioning youth. ● Youth Groups (Completion of School-Year Cohorts) ○ Run final 2 school-year groups before end of semester. ○ Reach cumulative total of at least 60–70 unduplicated youth served through groups. ● Outreach and Linkage ○ Promote and support connections to Late Night Gym THRIVE program. ○ Ensure continuity of support for graduating youth. ● Deliverables: Monthly reports, survey collection, SCYTF updates. Note: After mid-June, school access is limited due to summer break and youth travel. Summer 2026 (July – mid-August) ● Modified Summer Engagement ○ Lighter outreach at parks, libraries, and the Youth Impact Center. ○ Maintain check-ins with active case management youth where possible. ○ Offer 1 flexible summer youth group or workshop (smaller enrollment expected). ● Deliverables: Outreach logs, attendance sheets, survey updates. Note: Expect reduced attendance due to travel to Latin America and family obligations. Fall 2026 (September 2026 – December, 2026) ● Final Engagement and Transition Planning ○ Outreach and engagement as school year resumes. ○ Support transition of new referrals into school-based supports or partner services. ○ Focus on continuity rather than starting a new full cohort. ● Wrap-Up and Reporting ○ Conduct exit surveys and retrospective evaluations. ○ Finalize Units of Service workbook, monthly activity calendars, and comprehensive report. ○ Participate in closing SCYTF meetings and subcommittee debriefs. Page 152 of 282 -5- 4835-2267-0361v1LAC\04706083 ● Peak program activity will take place January through May 2026 , when youth are most consistently available. ● Winter and summer breaks will be used for lighter outreach, continuity check-ins, and targeted activities, but not large group launches. ● The contract end date (October 2026) makes it unrealistic to begin a new full cohort in the fall. Instead, YA will focus on continuity of services, transition planning, and preparing youth for linkage to ongoing programs. Summary of Group Delivery ● Fall 2025: 2 cohort ● Winter 2026: 3 cohorts ● Spring 2026: 3 cohorts ● Summer 2026: 1 cohort (optional/shortened) Total : 8 confirmed cohorts, 9 if summer is included, allowing flexibility to meet the 8 total required (by running 2 groups simultaneously in fall, winter or spring if needed) Page 153 of 282 4835-2267-0361v1LAC\04706083 EXHIBIT “D” PAYMENT SCHEDULE EXHIBIT “D” PAYMENT SCHEDULE A. Compensation to CONSULTANT Youth Alliance shall be contingent upon successful completion of the services outlined in EXHIBIT B, SCOPE OF SERVICES. A statement of all professional services outlined under this AGREEMENT shall be prepared by CONSULTANT atholic Charities of Santa Clara County and submitted to the City of Gilroy on or before the 10th day of the month, following the billing month, following completion of each of the Services identified in EXHIBIT B. If the services have been completed to the satisfaction of the City of Gilroy, the CITY shall make payment to the CONSULTANT within thirty (30) business days after receipt of the statement and approval thereof. B. The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT shall not exceed $130,105.14 CONSULTANT to successfully complete the project within the 12 month period. Reimbursement will be based on work completed, per budget specifications. C. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. All contract deliverables needed for payment are stated in Exhibit B and include the completion of a monthly invoice, with relevent direct expenses back up, monthly narrative and statistical reporting to show measurement for successful targeted youth intervention, groups and pro-social activities in pre-designated areas. Quarterly invoicing will include direct expenses for reimbursement, such as allowable overhead and supervision, direct expenses, i.e. cell phone and mileage reimbursement for positions, wages, supplies, training, costs for pro-social activities and healthy food expenses. Any additional direct expenses will not be reimbursed by the CITY. Quarterly invoices and all back up documentation (monthly calendars, PAR monthly report, staff timesheets, agency invoice, OUS workbook, and Narrative report) will be submitted to the CITY by the 8th day of the next month, as follows or the Friday prior to, if the 8th falls on a weekend, the invoice is due the following Monday, no later than 12:00 PM. An exception will be the last monthly invoice as the City funder requests the final invoice prior to the month's end: Quarters Invoice Deadline December 9-31, 2025 January 8, 2026 January 1, 2026- March 31, 2026 April 8, 2026 April 1, 2026-June 30, 2026 June 20, 2026 July 1, 2026-September 30, 2026 October 8, 2026 October 1, 2026- November 4, 2026 December 8, 2026 Page 154 of 282 4835-2267-0361v1LAC\04706083 December 1- 31, 2026 January 8, 2026 Please allow up to 30 business days between submittal of invoice and confirmed back up verification for the processing of payment. Back up includes but it not limited to any of the following: timecard for program coordinator, sign in sheets for services and programs sponsored by this agreement, fliers and brochures, pictures for program activities, meeting agendas and notes, and any other documentation related to the any of the diversion program activities. Invoices will be returned if necessary back up is not attached and timing of check processing will be paused. D. BUDGET - Youth Alliance Total Program Budget $130,105.14 Youth Alliance Personnel FTE Rate Annual Salary Total Case Manager 1.00 $35.50 $73,840.00 $73,840.00 Outreach Specialist 0.25 $26.50 $55,120.00 $13,780.00 Fringe Fringe Benefits at 27% $23,657.40 Subtotal Personnel $111,277.40 Non Personnel Qty. Unit Price Total Program Supplies/Equipment 1 $3,000.00 $3,000.00 Incentives 1 $2,500.00 $2,500.00 Training 1 $1,000.00 $1,000.00 Travel/Mileage 1 $500.00 $500.00 Subtotal Non-Personnel $7,000.00 Direct Costs $118,277.40 Indirect Costs at 10% $11,827.74 TOTAL $130,105.14 Page 155 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Approve the Second Amendment to the Agreement with Cal- West Lighting & Signal Maintenance, Inc. for Streetlight and Traffic Signal Maintenance Services, and Adopt a Resolution Approving a Budget Amendment for the Signal/ Street Light Maintenance Project (Project No. 800340) Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Nisha Patel, City Engineer STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION 1. Approve the Second Amendment to the Agreement with Cal-West Lighting & Signal Maintenance, Inc. for streetlight and traffic signal maintenance services and authorize the City Administrator to execute related documents; and 2. Adopt a budget amendment resolution to appropriate $215,000 from the VRF Fund (220) for the annual Signal/Streetlight Maintenance Project (Project No. 800340). EXECUTIVE SUMMARY The Public Works Department (Department) oversees the operation and maintenance of the City’s streetlights, traffic signals, USA dig alert markings, on-call repair services, and other related tasks. The Department does not have internal staff with qualifications to handle the technical tasks nor the equipment necessary. As such, the City utilizes Cal-West Lighting & Signal Maintenance, Inc. (Cal-West), a firm with the specialized qualifications and equipment to complete this critical work. Cal-West provides similar services throughout the Bay Area and has been very responsive to the City with technicians residing in the vicinity of Gilroy. The approved Fiscal Year 2026 (FY26) contract amount for Cal-West services is Page 156 of 282 $354,476. Due to an unusually high number of unanticipated equipment failures, traffic accident-related repairs, and unanticipated SeeClickFix-related service requests during the first half of the fiscal year, the contract amount for FY26 is insufficient to cover costs known and anticipated for the remainder of FY26. Staff is seeking approval of a budget amendment in the amount of $215,000.00 to cover anticipated (and some unanticipated) costs during the remainder of the fiscal year. The repairs are critical to maintaining the City's traffic operation and maintenance of the City’s streetlights, traffic signals, USA dig alert markings, on-call repair services, and other related tasks. The approved Fiscal Year 2026 budget for the Signal/ Streetlight Maintenance Project (Project No. 800340) is $355,000. A $215,000 budget amendment is needed to fund the contract amendment with Cal-West. BACKGROUND The City Council awarded a three-year contract to Cal-West on June 17, 2024. The scope of work included routine maintenance and repairs of the City’s streetlights and traffic signals, and responding to calls for USA dig alert markings. The total contract amount for three years was $1,064,272. • FY25: $337,596 • FY26: $354,476 • FY27: $372,200 • Total: $1,064,272 On July 28, 2025, the Fiscal Year 2025 contract budget was amended by $77,196.31 for a total FY25 budget of $414,792.31. The equipment covered with the Cal-West agreement includes thirty-three (33) City-owned traffic signal systems, eleven (11) Caltrans - owned traffic signal systems, eleven (11) Rectangular Rapid Flashing Beacon (RRFB) crosswalks, two (2) pedestrian hybrid beacons, four (4) solar-powered speed limit radar signs, one (1) red flashing beacon, seventeen (17) yellow flashing beacons, and more than 4,847 streetlights. The traffic signal and streetlight systems require regular maintenance to ensure optimal performance and safety. The on-call repair services can include clearing, securing, assessing, repairing, and replacing equipment damaged by vehicle collisions (such as traffic signal poles, foundations, controller cabinets, streetlights, etc.) and replacing stolen wires. This contract also allows the City to utilize the contractor for the Underground Service Alert (USA) program. This program requires the property owner or operator (i.e., the City) to mark all underground utilities such as traffic loops, electrical conduits, and traffic signal and streetlight systems before any third-party excavations. This service is essential and mandatory. Page 157 of 282 While the cost of scheduled maintenance is relatively predictable, the on-call repair services due to traffic collisions, power outages, and theft vary in type and frequency from month to month. The addition of the SeeClickFix module to Gilroy Connect in March also contributed to more on-call service demands. ANALYSIS Due to an unusually high number of incidents from car accidents requiring repairs and failure of equipment nearing its useful life during FY26, and feedback from Cal-West that additional equipment is expected to fail sooner than originally estimated, the contract amount of $354,476 for FY26 is not enough to cover the costs anticipated to be incurred in FY26. An additional $215,000.00 is needed for the contract in FY26 to make repairs and replacements. The proposed amendment to add $215,000.00 to the contract for FY26 will ensure the City can continue to provide critical services for the operation and maintenance of the City’s streetlights, traffic signals, USA dig alert markings, on-call repair services, and other related tasks. The City does seek reimbursement for damages caused by vehicle accidents from drivers and their insurers. With the amendment to the contract, the total cost of the amended three-year contract with Cal-West will increase from $1,141,486.31 to $1,356,486.31. The existing contract with Cal-West is paid for out of the Signal/ Streetlight Maintenance Project, which is funded by the Gas Taxes Fund. A budget amendment of $215,000 is required to fund the second amendment to the contract with Cal-West, and it is recommended to be appropriated from the Vehicle Registration Fee (VRF) Fund (220). ALTERNATIVES Council may choose not to approve the amendment. Staff does not recommend this option. FISCAL IMPACT/FUNDING SOURCE The second amendment to the agreement will increase the total not-to-exceed compensation to Cal-West by $215,000 from $1,141,486 to $1,356,486. The existing agreement for Streetlight and Traffic Signal Maintenance is funded by the Gas Taxes Fund (205). Council adopted the FY26 and FY27 budgets on June 2, 2025. Staff recommends appropriating an additional $215,000.00 from the VRF Fund (220) to the Signal/ Streetlight Maintenance Project (Project No. 800340) for the second amendment to the agreement with Cal-West. Gas Tax Funds in FY26 and FY27 are already committed for other projects and expenditures. There is sufficient fund balance available in Fund 220 to cover the budget amendment. This amendment will not utilize or impact the City's General Fund. Page 158 of 282 PUBLIC OUTREACH N/A NEXT STEPS Upon City Council’s approval, staff will execute the second amendment to the agreement with Cal-West. Attachments: 1. Resolution 2. Second Amendment Cal-West Lighting and Signal Maintenance Page 159 of 282 RESOLUTION 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY TO APPROVE A BUDGET AMENDMENT FOR THE SIGNAL/ STREET LIGHT MAINTENANCE PROJECT (PROJECT NO. 800340) AND APPROVE A SECOND AMENDMENT TO THE AGREEMENT FOR SERVICES WITH CAL-WEST LIGHTING & SIGNAL MAINTENANCE, INC. WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2025-2026 and 2026-2027, and the City Council carefully examined, considered, and adopted the same on June 2, 2025; and WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to said budget for Fiscal Year 2025-2026 for the City of Gilroy in the staff report dated December 8, 2025; and WHEREAS, City Staff has prepared a Second Amendment to the Agreement for Services with Cal-West Lighting & Signal Maintenance, Inc. for Streetlight and Traffic Signal Maintenance Services, City Project No. 800340. NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2025-2026 for the Vehicle Registration Fee Fund 220 shall be increased by $215,000 for Fiscal Year 2025-2026. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 8th day of December 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 160 of 282 -1- 4845-8215-5540v1 MDOLINGER\04706083 SECOND AMENDMENT TO AGREEMENT FOR SERVICES WITH CAL-WEST LIGHTING & SIGNAL MAINTENANCE, INC. FOR STREETLIGHT AND TRAFFIC SIGNAL MAINTENANCE WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Cal-West Lighting & Signal Maintenance, Inc. entered into that certain agreement entitled Agreement for Services for Traffic Signal and Streetlight Maintenance, effective on 7/1/2024, hereinafter referred to as “Original Agreement”; and WHEREAS, City and Cal-West Lighting & Signal Maintenance, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. Article 4, Section A (Consideration) of the Original Agreement shall be amended to read as follows: In consideration for the services to be performed by CONSTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in EXHIBIT “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $1,356,468.31 (three-year contract). 3. This Amendment shall be effective on 1/1/2026 4. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 5. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF GILROY CAL-WEST LIGHTING & SIGNAL MAINTENANCE, INC. By: By: [signature] [signature] Brad Kilger Craig H. Geis, Jr [employee name] [name] Interim City Administrator President [title/department] [title] Date: Date: Approved as to Form ATTEST: City Attorney City Clerk Page 161 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Receive Report Regarding Upcoming 2026 Commission Vacancies per Maddy Act Meeting Date: December 8, 2025 From: Kim Mancera, City Clerk Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: RECOMMENDATION Accept report. EXECUTIVE SUMMARY BACKGROUND California Government Code Section 54972 (Maddy Act) requires that on or before December 31 of each year, each legislative body shall prepare an appointments list of all regular and ongoing boards, commissions, and committees which are appointed by the legislative body of the local agency. This list is compiled by the City Clerk and is posted on the City’s website and outside of City Hall Chambers. ANALYSIS Staff is bringing this forward to highlight the 24 open positions, including current vacant positions, on our Boards, Commissions, and Committees effective December 31, 2025. Recruitment for these positions is in progress and appointments are scheduled to be made on January 26, 2026. Additionally, the 2026 Maddy Act is included for those terms Page 162 of 282 that will end December 31, 2025. Boards, Committees, and Commissions advise City Council on specific policy issues and provide a conduit for community input on issues pertaining to Gilroy. Serving on a Board, Committee, or Commission offers an opportunity for residents to be involved in the Gilroy Community and contribute to the public process. Information pertaining to each Board, Commission, or Committee can be found on the City’s Boards, Commissions, and Committees web page. ALTERNATIVES Not Applicable. FISCAL IMPACT/FUNDING SOURCE None. The task is accommodated within existing resources and is an annual workplan within the City Clerk's office, which is funded by the General Fund. PUBLIC OUTREACH This report serves to inform the public of the upcoming board, commission, and committee vacancies. NEXT STEPS Attachments: 1. Maddy Act Terms Ending 2026 Page 163 of 282 Published per California GC Section 54970 | Updated October 17, 2024 LOCAL APPOINTMENTS LIST OF BOARD / COMMISSION TERMS EXPIRING IN 2026 NECESSARY QUALIFICATIONS FOR ALL BOARDS AND COMMISSIONS: Must be a qualified registered Elector of the City of Gilroy (except Youth Commission) PROPOSED APPOINTMENT DATE FOR TERMS EXPIRING December 31, 2026: January 2026 (except for Youth Commission, June and September 2026) ARTS AND CULTURE COMMISSION | 4-Year Terms Seven (7) Member Body Commission. Regular Meetings are held 2nd Tuesday of each month at 6:30 p.m. Commissioner Term Start Term Expires N/A BUILDING BOARD OF APPEALS | 4-Year Terms Five (5) Member Body Board. Regular Meetings are held when necessary. The Board comprises four persons qualified by experience and training, and one public member. N/A LIBRARY COMMISSION | 4-Year Terms Five (5) Member Commission. Regular Meetings are held on the 2nd Wednesday of each month at 7:00 p.m. Commissioner Term Start Term Expires N/A OPEN GOVERNMENT COMMISSION | 4 -Year Terms Five (5) Member Commission. Regular Meetings are held quarterly on the second Thursday of each year at 6:00 p.m. Commissioner Term Start Term Expires N/A PARKS AND RECREATION COMMISSION | 4-Year Terms Seven (7) Member Commission. Regular Meetings are held on the 3rd Tuesday of each month at 6:00 p.m. Commissioner Term Start Term Expires N/A PERSONNEL COMMISSION | 4-Year Terms Five (5) Member Commission. Regular Meetings are held on the 4th Monday of each month at 5:30 p.m. Commissioner Term Start Term Expires N/A PHYSICALLY CHALLENGED BOARD OF APPEALS | 4-Year Terms Five (5) Member Board. Regular Meetings are held when necessary at 10:00 a.m. Board Member Term Start Term Expires N/A PLANNING COMMISSION | 4-Year Terms Seven (7) Member Commission. Regular Meetings are held on the 1st Thursday of each month at 6:00 p.m. Commissioner Term Start Term Expires N/A YOUTH COMMISSION | 2-Year Terms 11-Member Commission. Regular Meetings are held on the 2nd Monday of each month of the school year at 6:00 p.m. Commissioner Term Start Term Expires Jacob Ortega 08/19/2024 09/30/2026 Anna Nguyen 08/19/2024 09/30/2026 Thanmay Sarath 09/01/2024 06/30/2026 Benedict Pham 08/04/2025 06/30/2026 Maya Sanchez 08/04/2025 06/30/2026 Page 164 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Authorization for Council Member Travel to the League of California Cities 2026 Mayors and Council Members Academy Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Council approve the travel of Council Member Ramirez to attend the 2026 Mayors and Council Members Academy. EXECUTIVE SUMMARY BACKGROUND The League of California Cities provides a training after each election for new mayors and council members to attend to learn critical knowledge about the roles, responsibilities, authorities and limitations of being a member of a city council. In 2026, the academy will be held in Sacramento. ANALYSIS The 2026 Mayors and Council Members Academy sessions run from January 21-23 in Sacramento. Staff has secured registration for Council Member Ramirez in the Sacramento session. Pursuant to the Travel Policy adopted by the City Council, the travel of any member of the City Council must be approved by the Council. Page 165 of 282 Estimated costs for Council Member attendance of the academy include the following: • Event registration- $675 • Hotel reservation – $550 • Travel o Sacramento – Mileage Reimbursement – $205.80 (294 miles at the IRS mileage rate of $0.70 per mile) • Per Diem – $232 (per the U.S. General Services Administration rate for Sacramento) The total estimated cost will be $1,665. ALTERNATIVES Council may approve or reject the travel request. Staff recommends approval, as this training will provide information that will be essential in the performance of City Council duties. FISCAL IMPACT/FUNDING SOURCE The estimated cost for one Councilmember to attend the Academy is $1,665. The Fiscal Year 2026 adopted budget has sufficient General Fund appropriations for professional development to accommodate this expenditure; thus, no budget action by the Council is required. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS If approved, staff will complete any pending reservations and per diem payments for the travel and training. Attachments: None Page 166 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Adopt an Ordinance to Amend Board and Commission Terms and Appointment Process Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: RECOMMENDATION Adopt an ordinance of the City Council of the City of Gilroy amending the terms of service for City Boards and Commissions to align expirations and recruitments with odd- numbered years. EXECUTIVE SUMMARY This adjustment would improve administrative efficiency, simplify scheduling for interviews and appointments, and align future recruitment activities with non-election years, allowing for a more consistent outreach and appointment process. BACKGROUND On November 17, 2025, the City Council approved the introduction of the proposed ordinance by a vote of 6-0-1 (one absent). The City of Gilroy relies on several Boards and Commissions to provide recommendations and community input on a wide range of policy areas. These advisory bodies are essential in supporting the City Council’s decision-making process and fostering public participation in local government. The City of Gilroy conducts annual recruitments to fill vacancies on its Boards and Page 167 of 282 Commissions. Currently, member terms are staggered between even and odd years, resulting in yearly recruitment and appointment cycles. While this structure has provided continuity, it has also created challenges in administering all recruitment cycles in consecutive years, particularly during election years when staff resources are heavily focused on Council transitions, onboarding, and other end-of-year legislative requirements. ANALYSIS The City Council is now being asked to adopt the proposed amendment to the Board and Commission terms and appointment process ordinance previously discussed at the November 17, 2025, City Council meeting. Once adopted, the ordinance will take effect thirty (30) days from the date of adoption, or January 7, 2026. ALTERNATIVES The Council may choose not to adopt the ordinance. This is not recommended as the Council has provided direction to staff. If the Council decides to amend the proposed ordinance, staff will provide a revised version. FISCAL IMPACT/FUNDING SOURCE There is no new fiscal impact to adopting the ordinance, and the effort to prepare this report was accommodated within existing resources and budgetary appropriations. PUBLIC OUTREACH NEXT STEPS The City Clerk will update all records and recruitment materials accordingly. Attachments: 1. Proposed Ordinance Board and Commission Recruitements Page 168 of 282 ORDINANCE NO. 2025-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE TERMS OF SERVICE FOR CITY BOARDS AND COMMISSIONS TO ALIGN EXPIRATIONS AND RECRUITMENTS WITH ODD- NUMBERED YEARS WHEREAS, the City of Gilroy appoints members to various boards and commissions whose terms of service have historically been set to expire on December 31 every year; and WHEREAS, Commission recruitments are currently held annually between October and January; and WHEREAS, City staff has identified that aligning all board and commission term expirations and recruitment cycles to occur in odd-numbered years so as not to coincide with the general municipal elections to promote greater public participation and improve operational efficiencies in the commissioner appointment process; and WHEREAS, adjusting the current terms of office by extending all board and commission terms that expire on December 31 of an even-numbered year by one (1) year will allow for a smooth transition to a consistent schedule where all terms expire on December 31 of odd- numbered years; and WHEREAS, in an effort to stagger the appointments on the Personnel Commission the City Council desires extending terms for the two (2) Personnel Commissioners currently set to expire on December 31, 2025, by two (2) years, to expire December 31, 2027, which will allow the commission to maintain a quorum and even out commissioner expiring terms for two (2) to expire in 2027 and three (3) to expire in 2029; and WHEREAS, to ensure a balanced mix of experienced and newly appointed members, staff recommends extending terms for one (1) Library Commissioner currently set to expire on December 31, 2025, by two (2) years, to expire December 31, 2027; and WHEREAS, this adjustment is administrative in nature and does not affect the rights or responsibilities of any appointed board or commission member, but instead promotes efficiency and consistency in City operations; and WHEREAS, this change provides the following benefits: 1. Administrative Efficiency: Conducting board and commission recruitments in odd- numbered years avoids overlapping with City Council elections, reducing staff workload and scheduling conflicts. Page 169 of 282 Ordinance No. 2025-XX Boards and Commission Terms City Council Regular Meeting | November 3, 2025 Page 2 of 4 2. Improved Recruitment Participation: Community members are more likely to engage in recruitment processes when not coinciding with election season and related civic activities. 3. Consistency and Transparency: A uniform expiration cycle across all boards and commissions simplifies public communication, appointment planning, and recordkeeping. 4. Administrative Efficiency: Conducting board and commission recruitments in odd- numbered years avoids overlapping with City Council elections, reducing staff workload and scheduling conflicts. 5. Improved Recruitment Participation: Community members are more likely to engage in recruitment processes when not coinciding with election season and related civic activities. 6. Consistency and Transparency: A uniform expiration cycle across all boards and commissions simplifies public communication, appointment planning, and recordkeeping. 7. Operational Continuity: Extending current terms by one year and ensuring timely vacancy recruitment prevents service interruptions and preserves institutional knowledge. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS: Section 1. Term Extension. All City of Gilroy board and commission member terms that are currently set to expire on December 31 of an even-numbered year shall be extended by one (1) year, with new expiration dates of December 31 of the following odd-numbered year. Section 2. Alignment of Future Terms. All future board and commission appointments, reappointments, and term expirations shall occur on December 31 of odd-numbered years, beginning with the transition created by Section 1 of this Ordinance. Section 3. Vacancies and Recruitment. Should a board or commission position become vacant at any time prior to the end of the appointed term, City staff shall conduct a recruitment process to fill the vacancy in accordance with established City procedures. Any individual appointed to fill a vacancy shall serve for the remainder of the unexpired term, maintaining alignment with the overall schedule of term expirations on December 31 of odd- numbered years. Section 4. Youth Commission Exception. The Youth Commission shall remain on its existing term cycle. Current Youth Commission member terms, which expire annually in June, shall not be extended and will continue to follow their established schedule. Recruitments for the Youth Commission shall continue to be conducted as scheduled each spring in accordance with current practices. Page 170 of 282 Ordinance No. 2025-XX Boards and Commission Terms City Council Regular Meeting | November 3, 2025 Page 3 of 4 Section 5. Implementation. The City Clerk is hereby directed to update all official records, term lists, and recruitment materials to reflect the adjusted expiration dates, new vacancy procedures, and future odd-year recruitment cycle. Section 6. Severability. If any section, sub-section, clause or phrase in this Ordinance or the application thereof to any person or circumstances is for any reason held invalid, the validity of the remainder of this Ordinance or the application of such provisions to other persons or circumstances shall not be affected. Section 7. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. PASSED AND ADOPTED this __ day of ____, 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: ___________________________ Kim Mancera, City Clerk Page 171 of 282 Ordinance No. 2025-XX Boards and Commission Terms City Council Regular Meeting | November 3, 2025 Page 4 of 4 CERTIFICATE OF THE CLERK I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-XX is an original ordinance, or true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, _____, 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. ____________________________________ Kim Mancera City Clerk of the City of Gilroy (Seal) Page 172 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Authorize the Surplus of Sixteen Vehicles/Equipment and Authorize the Disposal of the Surplus by Auction Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: Walter Dunckel, Fleet and Facilities Superintendent, LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Authorize the surplus of sixteen vehicles and equipment and authorize the disposal of the surplus through auction. EXECUTIVE SUMMARY Through recent vehicle and equipment replacements, the City has built up a surplus of vehicles and some equipment that are well past their useful life. Since they no longer serve a purpose for the City, it is appropriate to dispose of them through auction, which yields a small return to the Fleet Fund. BACKGROUND Under Gilroy City Code Section 2.43(c)(6), the sale of personal property with an estimated value in excess of $10,000 shall require the approval of the City Council prior to sale. The Fleet Division has identified a list of 16 vehicles and equipment (“vehicles”) recommended for disposition. The list is attached to this staff report. The 16 vehicles include a Caterpillar loader, equipment not typically considered a vehicle. The vehicles and equipment have reached the end of their useful life and have either been replaced or deemed unnecessary for current operations. Using the previous auction sales results for similar vehicles, Fleet estimates the total value of these vehicles and equipment to Page 173 of 282 be $48,300. Once approved, as with prior vehicle surpluses, Fleet will coordinate with our contracted auction company to dispose of the vehicles. ANALYSIS n/a ALTERNATIVES Council may: 1. Declare the vehicles as surplus and authorize staff to dispose of them through auction. Recommended. The auction process is the most cost-effective and efficient method available at this time, and the vehicles are outdated and of limited/no usability for City purposes. 2. Chose not to declare the vehicles as surplus. Not recommended. This would cause an accumulation of vehicles to occupy needed space at the Fleet facility or other City storage areas. Additionally, a delay in disposing of these assets will reduce the potential recovery of value as revenue from their sale. 3. Choose to surplus the items, but not authorize disposal through auction. Not recommended. While the City could place the vehicles for sale through direct purchase, the benefit would be limited by the staff time required to manage the sale of each individual vehicle, as well as the cost of advertising each vehicle. FISCAL IMPACT/FUNDING SOURCE Fleet estimates the value of the surplus to be $48,300. An undetermined portion of this amount will return to the City as revenue for the Fleet Fund. Due to the nature of auction dispositions, the amount of revenue will not be known until the assets are sold. PUBLIC OUTREACH n/a NEXT STEPS The next step is to notify our contracted auction company, to transport the vehicles and equipment for auction. All equipment has already been removed from the vehicles. This will clear needed space for other vehicles and equipment, eliminating a stockpile of unsightly vehicles. Attachments: Page 174 of 282 1. Surplus Vehicle List Final 12.8.25 agenda item Page 175 of 282 Surplus Vehicle and Equipment List Vehicle Number Vehicle Type Year Odometer VIN Est Value 4601 Caterpillar Loader 1978 2,829 Hours 62K9473 $3,500 3001 Isuzu Box truck 1989 84,011 J8DB4B1H4H8300343 $2,500 2003 Chevy Silverado 3500 utility 2000 186,703 1GBGC34RXYR230995 $2,900 2006 Chevrolet Silverado 2500 4x4 2000 84,381 1GCHK24U31E261309 $3,000 2010 Pointiac Montana MiniVan 2000 62,158 1GMDX03E2YD279293 $2,400 2104 Chevrolet Silverado 1500 2001 216,843 1GCEK19T01E135695 $2,500 1220 Chevrolet Camaro Z28 2002 84,381 2G1FP22G922144362 $6,000 2205 Chevy Blazer 2002 56,630 1GNDT13W42K200392 $2,400 2302 Chevy Tahoe 2003 114,475 1GNEK13T53J178732 $2,700 2409 GM Van 2003 104,129 1GNDM19X54B102892 $2,500 3208 International Dump Truck 4400 2003 48,764 1HTMKAAR63H597064 $8,000 1505 Toyota Prius 2005 52,347 JTDKB20U853113976 $3,000 2706 Ford Freestar Minivan 2007 72,987 2FMZA51237BA24993 $2,000 2815 Chevrolet Tahoe 2008 119,704 1GNFK03058R252454 $3,000 1901 Nissan Altima (Totaled in accident)2009 163,753 1N4BL21E89C125576 $1,000 2925 Ford Explorer (Totaled in accident, parts salvaged)2019 31,141 1FM5K8AR5KGB23603 $900 Total Estimated Value $48,300 Page 176 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Claim of Antonio Garcia (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the December 8, 2025 meeting: • Claim of Antonio Garcia BACKGROUND n/a ANALYSIS n/a ALTERNATIVES Page 177 of 282 n/a FISCAL IMPACT/FUNDING SOURCE n/a PUBLIC OUTREACH n/a NEXT STEPS n/a Attachments: 1. Claim of Antonio Garcia for 12.8.25 agenda packet Page 178 of 282 Page 179 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Claim of Stephanie Moretto (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the December 8, 2025 meeting: • Claim of Stephanie Moretto BACKGROUND n/a ANALYSIS n/a ALTERNATIVES Page 180 of 282 n/a FISCAL IMPACT/FUNDING SOURCE n/a PUBLIC OUTREACH n/a NEXT STEPS n/a Attachments: 1. Claim of Stephanie Moretto for 12.8.25 agenda packet Page 181 of 282 Page 182 of 282 Page 183 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Claim of Jeff Scherck (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the December 8, 2025 meeting: • Claim of Jeff Scherck BACKGROUND n/a ANALYSIS n/a ALTERNATIVES Page 184 of 282 n/a FISCAL IMPACT/FUNDING SOURCE n/a PUBLIC OUTREACH n/a NEXT STEPS n/a Attachments: 1. Claim of Jeff Scherck for 12.8.25 agenda packet Page 185 of 282 Page 186 of 282 Page 187 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Consider Extending the Urgency Interim Ordinance Prohibiting the Issuance of Tobacco Retailer Permits for a Period of Ten (10) Months and Fifteen (15) Days within the Downtown Specific Plan Area Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Community Development Submitted by: Sharon Goei, Community Development Director Prepared by: Michael Fossati, Planning Manager STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION 1. Determine this action is exempt from environmental review under California Environmental Quality Act (CEQA) pursuant to Section 15262, Section 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the CEQA Guidelines: and 2. Adopt an extension of the Urgency Interim Ordinance established to prohibit the issuance or approval of any new Tobacco Retailer Permit for an additional ten (10) months and fifteen (15) days within the Gilroy Downtown Specific Plan Area. 3. Review, approve and issue the 10-day report as required by Government Code Section 65858(d) for the extension of the temporary moratorium. EXECUTIVE SUMMARY The City Council approved an urgency interim ordinance prohibiting new tobacco retailer permits in the Downtown Specific Plan Area for 45 days. Staff recommends extending the moratorium to allow time to develop additional regulations, such as defining “smoke shop” in the City of Gilroy zoning code and determining suitable locations for such a land use. These changes require further study and public hearings Page 188 of 282 with the Planning Commission and City Council, which cannot be completed before the current ordinance expires on December 17, 2025. This action would extend the expiration date to November 1, 2026. Staff plans to return to the City Council with a comprehensive zoning code update in 2026, allowing time to address the issue and process the necessary code amendments for tobacco retailer operations. BACKGROUND On October 20, 2025, staff was asked to place on the November 3 meeting agenda for City Council consideration an urgency interim ordinance to prohibit new smoke shops in the downtown area. Since the City of Gilroy does not define “smoke shops” within its current zoning code, staff prepared an ordinance prohibiting the issuance of tobacco retailer permits for businesses within the Downtown Specific Plan Area for review. On November 3, 2025, the City Council voted unanimously to adopt Ordinance No. 2025-08, an urgency interim ordinance of the City of Gilroy prohibiting the issuance of tobacco retailer permits for a period not to exceed forty-five (45) days within the Gilroy Downtown Specific Plan area. The current 45-day temporary moratorium expires on December 17, 2025. ANALYSIS California Government Code Section 65858 permits cities to adopt urgency interim ordinances that temporarily prohibit certain uses, such as new tobacco retailer permits, to protect public safety, health, and welfare during the review of proposed general plans, specific plans, or zoning changes. This ability was exercised by the City of Gilroy when Ordinance 2025-08 was adopted in early November 2025. Pursuant to Government Code Section 65858(d), the City must issue a written report (10-day Report) at least 10 days before the original 45-day temporary moratorium expires. The 10-day Report will outline actions taken to address the conditions that prompted the urgency ordinance. Staff has included the required 10-day Report as Attachment 2 of this staff report, and has issued the report on December 5, 2025 on the City’s website, meeting the minimum 10-day requirement prior to December 17, 2025. During the creation of the 10-day Report, staff identified several issues that require attention before drafting a more permanent zoning amendment to limit or prohibit smoke shops in the City. Key actions include addressing licensing enforcement, forming a team to evaluate appropriate locations for the type of use, reviewing best practices from other cities, analyzing police data for crime patterns, and compiling lists of current tobacco retailers in comparison to population density. The report recommends extending the Page 189 of 282 moratorium to allow time to plan for adequate staffing, public outreach, further study of successful practices in monitoring tobacco retailers, and the development of appropriate zoning code and land use amendments. Plans include public hearings and opportunities for community input on the urgency ordinance extension to ensure due process and transparency. Staff recommends that the City Council extend the moratorium to support comprehensive solutions that protect public health and welfare within the downtown area. ALTERNATIVES Allow the urgency interim ordinance for the Downtown Specific Plan Area to expire and resume processing new tobacco retailer permit applications under current City regulations. FISCAL IMPACT/FUNDING SOURCE Implementing new zoning regulations and drafting ordinances require staff time and resources. These activities are usually funded by the City’s General Fund. If the urgency ordinance on tobacco retailers is enacted, it will not affect existing tobacco retailers or the sales tax revenues generated from tobacco sales. PUBLIC OUTREACH The notice for the City Council meeting was published in the Gilroy Dispatch. Public hearing packets with this staff report are available on the City’s website for viewing. NEXT STEPS If approved, the new ordinance will go into effect immediately. It will have the effect of extending Ordinance 2025-08 by 10 months and 15 days, lasting until November 1, 2026. This time extension will provide the Community Development Department and our internal partners with adequate time to incorporate concerns and best practices regarding tobacco retailer uses within the comprehensive zoning update. Attachments: 1. Proposed Extension of Urgency Interim Ordinance 2. 10-day Report Page 190 of 282 Attachment 1 ORDINANCE NO. 2025-XX AN EXTENSION OF AN URGENCY INTERIM ORDINANCE OF THE CITY OF GILROY PROHIBITING THE ISSUANCE OF TOBACCO RETAILER PERMITS FOR A PERIOD NOT TO EXCEED TEN (10) MONTHS AND FIFTEEN (15) DAYS WITHIN THE GILROY DOWNTOWN SPECIFIC PLAN AREA WHEREAS, the City of Gilroy (“City”) is a municipal corporation duly organized as a Charter City under the California Constitution and laws of the State of California; and WHEREAS, the City Council has broad discretion pursuant the California Constitution Article XI, Section 5, and the general laws of the state, including, but not limited to, the California Planning and Zoning Law (Gov. Code section 65000 et seq.) to legislate for public purposes and for the general welfare, including, but not limited to, matters of public health and safety; and WHEREAS, California Government Code Section 65858 sets forth procedures for the adoption of an urgency interim ordinance to prohibit the approval of applications for additional subdivisions, use permits, variances, building permits, and other applicable entitlements for uses that may be in conflict with a contemplated specific plan or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study; and WHEREAS, on November 7, 2005, the City adopted the Gilroy Downtown Specific Plan, which serves as the regulatory and design framework to guide redevelopment and revitalization of downtown Gilroy over a 20-year period, focusing on mixed-use development, economic vitality, walkability, and community cohesion, and are regulated within the Article XIV of the Gilroy Municipal Code titled “Downtown Specific Plan Districts” (Ord. No. 2019-08; Gilroy Code Section 30.14 et seq.); and WHEREAS, Section V of the City of Gilroy Downtown Specific Plan holds a vision to serve as a primary retail and entertainment destination, with youth-oriented entertainment uses and a prohibition of adult stores; and WHEREAS, on November 17, 2014, the City adopted an Ordinance requiring all tobacco retailers to obtain a “Tobacco Retailer Permit” to ensure that retailers comply with tobacco control laws and City business standards (Ord. No. 2014-14; Gilroy Code Section 13.66 et seq.); and WHEREAS, in California, individuals under the age of 21 are prohibited from purchasing or using tobacco or cannabis products. This regulation is based on evidence that smoking is the leading cause of preventable disease and mortality worldwide. Smokeless tobacco is also associated with increased risk for several cancers, including those of the mouth, esophagus, and pancreas. Additionally, marijuana smoke contains Page 191 of 282 Ordinance No. 2025-XX Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 2 of 5 -2- many of the same toxins, irritants, and carcinogens found in tobacco smoke; and WHEREAS, while the majority of tobacco retailers in the City operate in conjunction with another land use activity (i.e., part of a grocery store, liquor store, gas station, convenience store), in the past year-and-a-half, the City has seen a significant increase in the number of stand-alone “Smoke Shop” tobacco retail stores; and WHEREAS, staff has found higher per capita concentration of tobacco retailers in the City, as compared to neighboring cities and county areas, including the City of Morgan Hill, the City of Hollister, the unincorporated area of Santa Clara County and San Benito County; and WHEREAS, the prevalence of tobacco retail establishments within the Downtown Specific Plan Area of the City of Gilroy may contribute to various adverse effects because of the associated health risks and density to walkable areas where minors frequent. In addition, social and economic burdens due to smoking-related illnesses place demands on community health resources and increase healthcare costs. Tobacco retailer businesses can also be a target for theft and vandalism, as well as may be affiliated with the sale of illegal cannabis products and drug paraphernalia that encourage illegal activity. Hemp products have also been found to be sold in tobacco retailer businesses and smoke shops, with marketing aimed towards children featuring colorful packaging designs and sweet candy flavors. Cigarette butts and packaging contribute to litter and environmental degradation and character of the downtown area; and WHEREAS, tobacco retail stores have been a source of unlawful activities in the City, including April 2025, where the California Department of Tax and Fee Administration (CDTFA) and the City of Gilroy confiscated flavored tobacco products and hallucinogenic psilocybin that are illegal to sell from certain local tobacco retail businesses within the city limits; and WHEREAS, considering the foregoing findings and events that have taken place, the City Council finds that there is a current and immediate threat to public health, safety, and welfare, and that approval of additional tobacco retailer permits within the Downtown Specific Plan Districts would result in and exacerbate that threat to public health, safety and welfare; and WHEREAS, on November 3, 2025, the City Council adopted an urgency interim ordinance prohibiting the issuance of Tobacco Retailer Permits within the Gilroy Downtown Specific Plan Area for a period not to exceed 45 days, as permitted per California Government Code Section 65858; and WHEREAS, within the 45-day time frame, City staff drafted a 10-day Report, as required by California Government Code Section 65858(d), identifying key actions the Page 192 of 282 Ordinance No. 2025-XX Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 3 of 5 -3- City must take in order to alleviate the threat to public health, welfare, and safety associated with the adverse effects of tobacco products and retailers, such as addressing licensing enforcement, forming a team to evaluate appropriate locations for the type of use, reviewing best practices from other cities, analyzing police data for crime patterns, and compiling lists of current tobacco retailers in comparison to population density; and WHEREAS, due to the associated findings within the 10-day Report, staff recommends the City Council adopt an extension to the prohibition of issuance of Tobacco Retailer Permits within the Downtown Specific Plan Area; and WHEREAS, on December 8, 2025, in accordance with State law, the City Council provided due consideration of all evidence presented and provided in the entire administrative record and held a duly noticed public hearing and took testimony regarding this extension of an urgency interim ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I. Recitals. The above recitals are true and correct and hereby adopted as the City Council’s findings. SECTION II. Purpose and Authority. In the interest of protecting the health, safety, and welfare of the residents in the City of Gilroy, it is the purpose and intent of this urgency interim Ordinance to place a temporary moratorium on the issuance of any new permit, license, or other entitlement for any tobacco retailer business within the downtown area of the City of Gilroy. This includes any new permit, license, or other entitlement for the relocation or physical expansion of existing business falling under the definition of a tobacco retailer business as defined in Gilroy Municipal Code Section 13.66. The City Council has authority to adopt this Ordinance pursuant to California Government Code Section 65858 as an extension of an urgency measure prohibiting any use that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City is considering or studying. SECTION III. Findings. The City Council hereby finds and determines that potentially future tobacco retailer businesses in the City of Gilroy constitute an immediate threat to public health, safety, and welfare. The approval of additional entitlements for Tobacco Retailer Permits and approval of the relocation or physical expansion of existing tobacco retailer business Page 193 of 282 Ordinance No. 2025-XX Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 4 of 5 -4- within the Downtown Specific Plan Area under the City’s current regulations will further threaten the public health, safety, and welfare. The adoption of the extension of the urgency interim Ordinance is therefore necessary for the immediate protection of public health, safety, and welfare. The above recitals are incorporated herein by reference as true and correct as the Council’s findings. SECTION IV. Extension of Moratorium This Ordinance extends the temporary moratorium on the issuance of any Tobacco Retailer Permit within the Gilroy Downtown Specific Plan Area, as set forth by Chapter 13 Article VIII (Tobacco Retailer Permit) of the Gilroy Municipal Code in the City of Gilroy. This temporary moratorium shall not apply to the renewal of an existing tobacco retailer’s permit previously issued by the City of Gilroy. SECTION V. Violation. Except as otherwise permitted under the extension of the urgency interim Ordinance, the establishment, relocation, or physical expansion of a Tobacco Retailer Business within city limits is declared to be a public nuisance. Violations of this urgency interim Ordinance may be enforced by any applicable laws or ordinances, including, but not limited to, injunctions or administrative or criminal penalties under the Gilroy Municipal Code. SECTION VI. Term of Ordinance. The extension of the urgency interim Ordinance shall be in effect from the date of adoption for a period of ten (10) months and fifteen (15) days, unless it is extended pursuant to California Government Code Section 65858 or other applicable law, as approved by the City Council. SECTION VII. Severability. If any section, subsection, subdivision, sentence, clause or phrase of the extension of the urgency interim Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this urgency interim Ordinance. The City Council hereby declares that it would have passed this urgency interim Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, or phrases may be declared unconstitutional or otherwise invalid by a court of competent jurisdiction. Page 194 of 282 Ordinance No. 2025-XX Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 5 of 5 -5- SECTION VIII. CEQA Determination The extension of the urgency interim Ordinance is exempt from environmental analysis under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15262, 15060(c)(2), 15060(c)(3), and Section 15061(b)(3) as it can be seen with certainty that this Ordinance has no possibility of having a significant environmental effect, as it merely preserves the status quo in accordance with Government Code Section 65858 in the interest of evaluating and preventing potential harms related to tobacco sales. SECTION IX. Effective Date. The extension of the urgency interim Ordinance, passed by at least a four-fifths vote of the City Council, is declared to be an interim urgency Ordinance for preserving the public health, safety, and welfare and shall take effect and be enforced immediately upon adoption pursuant to Government Code Section 36937(b). SECTION X. Publication. The City Clerk shall cause this Ordinance to be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation, such as the Gilroy Dispatch. PASSED AND ADOPTED by the City Council of the City of Gilroy this 8th day of December 2025, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: ___________________________ Kim Mancera, City Clerk Page 195 of 282 10-Day Report on the City of Gilroy 45-day Urgency Interim Ordinance prohibiting the issuance of tobacco retailer permits within the Downtown Specific Plan Area pending the study and development of reasonable regulations pursuant to Government Code Section 65858(d) BACKGROUND On November 3, 2025, pursuant to Government Code Section 65858, the City Council of Gilroy adopted Ordinance No. 2025-08, a 45-day urgency interim ordinance. This ordinance was enacted to address the immediate threat to public health, welfare, and safety posed by the sale of tobacco products to minors. This ordinance established a 45-day moratorium on issuing new tobacco retailer permits within the Gilroy Downtown Specific Plan area, pending completion of a study and the development of appropriate regulations for tobacco retailers. Under Government Code Section 65858(d), the City is to issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the moratorium at least 10 days prior to the expiration of the 45-day ordinance. Issuance of this report satisfies the requirements of Government Code Section 65858(d). The 45-day moratorium is set to expire on December 17, 2025. Measures taken to alleviate the conditions that led to the adoption of the urgency ordinance: 1. The City is forming an internal team to develop new zoning regulations for tobacco retailers. The team will make sure to follow current laws, find illegal activities related to tobacco sales—especially those involving minors and illegal substances—and review police activity to spot crime patterns. Based on what the team finds, the team will suggest ways to strengthen the City’s zoning laws and enforcement. 2. City staff has begun reviewing municipal and zoning code regulations from California cities to identify best practices and develop effective zoning regulations for certain tobacco retailers. The goal is to curb tobacco sales to minors and prevent the spread of illegal substances within the Downtown Specific Plan Area. 3. Planning, Code Enforcement, and Finance staff are compiling a list of existing tobacco retailers in the City. This information will be shared with the Police Department to help identify potential police activity related to these businesses to determine if a moratorium is required for additional areas of the City. The above reflects actions taken during this short period. Conditions still require extending the urgency interim ordinance to give staff time to complete the analysis and research in order to ensure the protection of the public health, safety, and welfare for all residents in the City of Gilroy. Page 196 of 282 CONTINUED NEED FOR THE MORATORIUM Actions addressing the underlying need for the moratorium are ongoing. Specifically, at the direction of Council, staff is studying and will develop reasonable regulations for tobacco retailers, including defining and potentially prohibiting smoke shops in certain zoning districts, requiring use permits for smoke shops in specific downtown zoning districts, and addressing community concerns regarding underage access, public notification of licenses, and proliferation of retailers. The proposed regulatory changes will require further research and public outreach, as well as public hearings before the Planning Commission and City Council. These tasks cannot be completed within the initial 45-day period which ends on December 17, 2025. Therefore, the need for the moratorium remains and staff recommends the City Council adopt an ordinance extending the current moratorium for a period of 10 months and 15 days. Unless extended by Council, the moratorium would automatically expire on December 17, 2025. Staff intends to return to Council with code amendments in concert with the comprehensive zoning update, and the extension would provide staff with sufficient time to develop those code amendments. OPPORTUNITY FOR PUBLIC COMMENT Members of the public will have the opportunity to comment on the extension of the Urgency Interim Ordinance at the City Council hearing to be held on December 8, 2025. The City will publish the required notice for this meeting pursuant to Government Code § 65090. Page 197 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Commemorative Flag Application Review for Calendar Year 2026 Meeting Date: December 8, 2025 From: Brad Kilger, Interim 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 consideration regarding the Commemorative Flag Flying Application for the Progressive Pride Flag. EXECUTIVE SUMMARY BACKGROUND At the February 7, 2022 City Council regular meeting, Council adopted the amended and restated Flying Flags at City Facilities Policy (Policy). The Policy identifies the requirements and application process established to receive approval to fly a commemorative flag at City Hall. ANALYSIS The City received one application during the application window to request a commemorative flag, which is attached to this staff report. The flag application is to fly the Progressive Pride Flag in June. As this is the second year for the applicant after signatures were obtained, per the policy, no signatures are required for this year's Page 198 of 282 application. The applicant submitted the application fee along with the application itself. Staff is submitting the application to the Council for consideration. The flag application also mentions the desire to have an event in the afternoon. Should the Council decide to approve the application, adoption of the attached resolution would be required, as per the adopted policy. If approved, the proposed event will be reviewed by staff to determine if any permits are required to host the event. ALTERNATIVES Council may choose to approve or reject the application. FISCAL IMPACT/FUNDING SOURCE No net cost is expected. The impact is the cost of staff time in raising and lowering the flag by City staff. The applicant provided the required application fee of $27, which captures full cost recovery. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS Staff will reach out to the applicant with the status of their application based on the Council action taken. Attachments: 1. Commerative Flag Flying Application - Progressive Pride Flag 2. Resolution - 2026 Commemorative Flag Flying Approval 3. Amended and Restated City Flag Flying Policy 4. Support for Flag Rasing 2025 5. City of Gilroy Pride Month - Letter of Support BAYMEC 6. City of Gilroy Pride Month - Letter of Support 7. City of Gilroy Pride Month - Letter of Support Rivas Page 199 of 282 Page 200 of 282 Page 201 of 282 Page 202 of 282 Page 203 of 282 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING COMMEMORATIVE FLAG FLYING APPLICATIONS FOR 2026 WHEREAS, on February 7, 2021, the City Council adopted the amended and restated Flying Flags at City Facilities Policy (“Policy”); and WHEREAS, the Policy calls for any interested party that wishes to request a commemorative flag to be flown at City Hall to submit an application to the City on forms and with requirements as outlined and pursuant to the Policy; and WHEREAS, under the Policy, the applications that meet sufficiency for signatures are then submitted to the City Council for consideration, with any applications being approved to be done through a resolution of the City Council; and WHEREAS, the City received one qualifying application for flying the Progressive Pride Flag for June 2026. NOW, THEREFORE, BE IT RESOLVED that the application for the Progressive Pride Flag for June 2026 is hereby approved. PASSED AND ADOPTED this 17th day of November 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: ______________________________ Greg Bozzo, Mayor ATTEST: Kim Mancera, City Clerk Page 204 of 282 Resolution No. 2025-XX Commemorative Flag Flying Application Approval City Council Regular Meeting | November 17, 2025 Page 2 of 2 2 0 0 4 CERTIFICATE OF THE CLERK I, KIM MANCERA, 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, November 17, 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. ____________________________________ Kim Mancera City Clerk of the City of Gilroy (Seal) Page 205 of 282 City of Gilroy Flying Flags at City Facilities Policy Amended and Restated February 7, 2021 Policy Effective February 8, 2022 Page 206 of 282 City of Gilroy Flying Flags at City Facilities Policy Purpose To create a Council policy regarding the flying of flags at City Facilities, inclusive of the flags of the United States, the State of California, Sister Cities, and any Commemorative Flags as may be authorized by the City Council. Policy I. Definitions a. “Applicant” shall mean an individual, business, corporation, organization or other entity residing or based within the City Limits of the City of Gilroy who submits an application to display a Commemorative Flag pursuant to this policy. b. “Application Cycle” shall mean a period of time as outlined in this policy for Applicants to submit an application for a Commemorative Flag to be displayed during the subsequent calendar year. Complete applications compliant with the requirements of this policy submitted during the Application Cycle will be submitted to the City Council for consideration. c. “Commemorative Flag” shall mean a flag that identifies with a specific date, historical event, cause, nation, or group of people, whereby the City honors or commemorates the date, event, cause, nation, or group of people by flying the flag. d. “Sister City Flag” shall mean a flag of another city that is an officially designated Sister City to the City of Gilroy. II. General Policy a. It is the policy of the City of Gilroy that the City’s flag poles are not intended to serve as a forum for free expression by the public, but rather for the display of the Flags of the United States and the State of California. The flag poles located at all City facilities may also be used to display the flags of the City of Gilroy, any Sister City Flag, and any Commemorative Flag as may be authorized by the City Council as an expression of the City’s official sentiments. III. Flags of the United States and the State of California a. The Flag of the United States and the Flag of the State of California shall be displayed in conformance with the requirements as provided in Title 1, Page 207 of 282 City of Gilroy Flying Flags at City Facilities Policy Division 2, Chapter 3 of the California Government Code entitled “Display of Flags” b. The Flag of the United States shall further be displayed and handled in accordance with Title 4, Chapter 1 of the United States Code entitled “The Flag”; sometimes referred to as the United States Flag Code. Where the language of this code is mandatory, the City shall comply with the requirement. Where this code provides advisory language, the City shall follow the advisory language to the extent feasible. IV. Flags of the City of Gilroy and any Sister City Flag a. The Flag of the City of Gilroy, when displayed, shall be displayed in conformance with the requirements as provided in Title 1, Division 2, Chapter 3 of the California Government Code entitled “Display of Flags” b. Any Sister City Flags, when displayed, shall be flown in a manner subordinate to the requirements for the Flags of the United States and the State of California. Additionally, they shall be in the fourth position of honor, after the Flags of the United States, the State of California, and the City of Gilroy. V. Commemorative Flags a. Requirements for Requesting the City to Display a Commemorative Flag i. For an Applicant to request the display of a Commemorative Flag at the Gilroy City Hall, an application must be completed which shall require at a minimum the following: 1. The full name, physical address, phone number, electronic mail address, and other such contact information for the applicant as may be requested by the City. 2. The name and a full color image accurately depicting the Commemorative Flag. 3. A statement of explanation or purpose of the Commemorative Flag, including what the flag stands for; any local, national, or international affiliation; brief history; website address; and any other relevant information to be considered by the City Council. 4. The month in which the Commemorative Flag is requested to be displayed. 5. A minimum of 150 signatures from registered voters in Gilroy, each of whom having reached the age of 18 years or greater and are successfully verified as meeting these requirements by the City through utility billing, property Page 208 of 282 City of Gilroy Flying Flags at City Facilities Policy owner information, or other means that may be available to the City. If the City is unable to verify that one or more signatures meet these requirements through available means of the City, the applicant will be advised of the number of signatures deemed unverifiable and removed from the total count. a. The signatures are required for the initial application when a commemorative flag is first requested. If the applicant re-applies each year for the same flag with the same information, the signature requirement is waived every other year, so long as the applications are continuous. If there is a break in the applications for a year or more and an applicant reapplies, even if the last application required signatures, the signature requirement will apply. 6. Whether the applicant intends to hold a ceremony or event for the flag raising, and verification of the applicant’s understanding regarding the requirement to obtain approvals and permits and pay fees to encroach upon or utilize any public right-of-way or City property for the event. 7. An application fee, the amount of which shall be determined and updated/maintained as part of the Master Fee Schedule. 8. If approved, the applicant must provide the flag to be flown. The flag must be provided to City staff for inspection of the actual flag to be displayed, which must conform with specifications as provided by the City for size, shape, and structure. The flag must be in acceptable condition for display, determined at the sole discretion of the City. ii. The specific format of the application and submittal procedures shall be at the discretion of the City Administrator or their designee, so long as the requirements for Applicants as outlined in this policy are contained on the application. iii. The Application Cycle shall open the first day of September (September 1st) each year and shall close at the end of business on the thirty-first day of October (October 31st) each year. Whenever either of these dates fall on a non-business day for the City, the deadlines shall move to the following business day for the City. b. Commemorative Flag Approval Process i. Applications that are complete and compliant with this policy shall be presented to the City Council for consideration during a City Page 209 of 282 City of Gilroy Flying Flags at City Facilities Policy Council meeting held before the end of December each year, after the close of the Application Cycle. ii. Council, in its sole discretion, shall consider the applications, and render a decision to approve which, if any, Commemorative Flags are approved for display. iii. The following requirements regarding approval of displaying Commemorative Flags shall be considered in determining which Commemorative Flags be approved for display: 1. Only one flag may be displayed at a time. 2. Each flag shall be displayed only for one calendar month, beginning with the first day of the month and ending on the last day of the month. 3. Approval shall only be valid for one calendar year. A new application must be filed for any succeeding years, even for flags that have been approved for prior years. This is to allow open and equal opportunities for competing Commemorative Flags that may typically be displayed during the same month each year. 4. Commemorative flags cannot contain messaging or content of the following nature: (a) promoting or opposing a political party, candidate, campaign, or political organization; (b): religious, commercial, racial or other discriminatory themes/speech, adult or sexually explicit, lewd, or obscene themes or materials; illegal activity; drug or alcohol themes or materials. Flag applications that contain these or reasonably related material shall not be considered. iv. Approval shall be completed via a resolution adopted by the City Council identifying the list of which Commemorative Flags were approved, and for which month. c. Displaying of Commemorative Flags i. The City’s involvement in the displaying of Commemorative Flags shall be limited to only the following: 1. Raising of the Commemorative Flag in the earlier part of the morning of the first day of the month. 2. Lowering of the Commemorative Flag in the late afternoon on the last day of the month. 3. Announce the flag raising on the City’s social media and electronic newsletter(s). 4. Where the first or last day of the month lands on a weekend or observed City holiday, and City staff cannot raise or lower the flag on the exact day of either the beginning and/or end Page 210 of 282 City of Gilroy Flying Flags at City Facilities Policy of the month, the lowering of the previous month’s flag will occur in the morning of the next business day, at the same time as the raising of the next month’s flag. ii. Commemorative Flags may only be displayed on a flag pole located at City Hall. d. Commemorative Flag Events i. Should an Applicant wish to host a ceremonial event, the applicant must file an application requesting an encroachment permit, special event permit, and/or a facility rental to have the event. The specific permits needed will depend upon the nature of the event and shall be at the discretion of the City. The Applicant will be required to pay the full application and permit fees for each permit that is required. ii. The application document shall contain language to advise the Applicant: 1. To contact the Community Development Department to inquire about which permits may be required based on the type of event they would like to host. 2. Information about the required deadlines to submit applications, and lead-times between when a permit application is submitted and when an approval or rejection decision is made. 3. That such events are not approved unless and until an official approval of all required permits is granted. 4. The application fees that must be paid by the applicant. iii. The normal fees, insurance requirements, attestations and permit requirements will be required to host the event, and that approval is not guaranteed because of the flag being raised, lowered, or displayed. iv. All conditions of approval in each permit, as required, must be followed for the event to be held. Page 211 of 282 P.O. Box 23773 San Jose, CA 95153 (408) 892-8986 www.pridesocialsouthcounty.com November 25, 2025 Honorable Mayor & Gilroy City Council Members City of Gilroy 7351 Rosanna St Gilroy, CA 95020 Dear Honorable Mayor & Gilroy City Council Members, I write to express my strong support on your agenda item to recognize June as LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall, which will heighten awareness of LGBTQ+ Pride Month, as well as celebrate diversity, equity, social justice and inclusion. The rainbow flag, also known as the LGBTQ+ pride flag, serves as a symbol of Lesbian, Gay, Bisexual, Transgender, and Queer/Questioning pride and LGBTQ+ social movement. Today, celebrations include pride parades, picnics, parties, workshops, symposia and concerts. The LGBTQ+ Pride Month events attract millions of participants around the world. Memorials are held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had on history locally, nationally and internationally. All children should be able to attend school in a safe and inclusive environment free from discrimination. Civil rights laws and the California Education Code sections 200-220 contribute to such environments. The lack of awareness and understanding of issues facing LGBTQ+ children and youth has contributed to higher rates of school dropout, academic failure, suicide and school disengagement. Education regarding LGBTQ+ issues increases understanding and cultivates respect for LGBTQ+ students and cultivates a culture of allyship. Your actions made history in 2021 by raising the first Pride Flag in Gilroy’s history and Gilroy Unified School District made history by raising the first Pride Flag at their District Offices in 2024. Beginning in 2025, GUSD raised the Pride Flag at all District Facilities and High Schools. Acts of hatred against LGBTQ+ members of our community will not be tolerated; hate and discrimination have no part in our community. According to the Library of Congress the month of June is a time to celebrate our dynamic Lesbian, Gay, Bisexual, Transgender, and Queer/Questioning (LGBTQ+) community, raise awareness of quality services, and foster a dialogue to promote healthy and safe communities for all. I support this Resolution and urge your “Aye” vote. Respectfully, Terry Hernandez and the Pride Social Board of Directors President Pride Social South County Terry@pridesocialsouthcounty.com Page 212 of 282 P.O. Box 112316 Campbell, California 95011 November 25, 2025 Honorable Mayor and Members of the Gilroy City Council City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Re: Support for June LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall Dear Mayor and Councilmembers: On behalf of those of us committed to equality and inclusion in Santa Clara County, I write in strong support of your agenda item recognizing June as LGBTQ+ Pride Month and raising the Pride Flag at City Hall in 2025. This action is more than ceremonial. It is a public affirmation that Gilroy stands for dignity, visibility, and belonging for all residents. The Pride Flag has long been a unifying symbol of the LGBTQ+ community—representing resilience, authenticity, and the ongoing pursuit of justice. Around the globe, Pride Month brings together millions in parades, celebrations, workshops, and remembrance events honoring those we have lost to violence, discrimination, and HIV/AIDS. It is also a time to recognize the countless contributions LGBTQ+ people have made to our shared local, regional, national, and international history. Your city’s leadership on this issue matters deeply—especially to LGBTQ+ youth. Every child deserves to learn in a safe, supportive environment free from discrimination. California’s civil rights laws and Education Code sections 200–220 make that expectation clear, but it takes community leadership to fulfill it. When schools and cities act with intention, we see lower dropout rates, better academic outcomes, and healthier, more connected students. Inclusive education and visible allyship help build understanding and respect, creating schools where all young people can thrive. Gilroy has already made history. In 2021, you raised the Pride Flag at City Hall for the first time where I was honored to be a speaker. In 2024, the Gilroy Unified School District raised the Pride Flag at its District Office, and beginning in 2025, expanded that commitment to all District facilities and high schools. These are the kinds of milestones that change lives and strengthen communities. Hate and discrimination have no place here. By recognizing Pride Month and raising the flag, the City of Gilroy sends a clear message that every resident, no matter who they are or whom they love, is valued and protected. As the Library of Congress affirms, June is a month to uplift the LGBTQ+ community, expand access to inclusive services, and foster dialogue that leads to safer, healthier communities for everyone. For these reasons, I respectfully urge your “Aye” vote on this Resolution. Thank you for your leadership and your continued commitment to equity and equality. Respectfully, ORIGINAL SIGNED BY Drew Lloyd Board President BAYMEC (Bay Area Municipal Elections Committee) Page 213 of 282 CAPITOL OFFICE CHAIR 1021 O STREET s {-t t t TRANSPORTATIONeeCaliforniaStateSenate SACRAMENTO,CA 95814 COMMITTEES TEL (916)651-4015 AGRICULTURE DISTRICT OFFICE SENATOR EDUCATION 1155 MERIDIAN AVENUESUITE100 DAVE CORTESE HOUSING SAN JOSE,CA 95125 LABOR,PUBLIC EMPLOYMENT &TEL (AGB)Foe FIFTEENTH SENATE DISTRICT ETRE MEMT LEGISLATIVE ETHICS November 17,2025 Honorable Mayor &Gilroy City Council Members City of Gilroy 7351 Rosanna St Gilroy,CA 95020 Re:June LGBTQ+Pride Month &Raising of the Pride Flag at City Hall -Support Dear Honorable Mayor &Gilroy City Council Members, I write to express my strong support on your agenda item to recognize June as LGBTQ+Pride Month and to raise the Pride Flag at City Hall,which will heighten awareness of LGBTQ+Pride Month,as well as celebrate diversity,equity, social justice,and inclusion. The rainbow flag,also known as the LGBTQ+pride flag,serves as a symbol of Lesbian,Gay,Bisexual,Transgender, and Questioning pride and LGBTQ+social movement.Today,celebrations include pride parades,picnics,parties, workshops,symposia,and concerts.The LGBTQ Pride Month events attract millions of participants around the world. Memorials are held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS.The purpose of the commemorative month is to recognize the impact that lesbian,gay,bisexual and transgender individuals have had on history locally,nationally and internationally. All children should be able to attend school in a safe and inclusive environment free from discrimination.Civil rights laws and the California Education Code sections 200-220 contribute to such environments.The lack of awareness and understanding of issues facing LGBTQ+children and youth has contributed to higher rates of school dropout,academic failure,suicide and school disengagement.Education regarding LGBTQ+issues increase understanding and cultivates respect for LGBTQ+students and cultivates a culture of allyship.Your actions made history in 2021 by raising the first Pride Flag in the city’s history,and Gilroy Unified School District made history by raising the first Pride Flag at their District Offices in 2024.Beginning in 2025,GUSD raised the Pride Flag at all District Facilities and High Schools. Acts of hatred against LGBTQ+members of our community will not be tolerated;hate and discrimination have no part in our community.According to the Library of Congress the month of June is a time to celebrate our dynamic Lesbian, Gay,Bisexual,Transgender,and Questioning (LGBTQ+)community,raise awareness of quality services,and foster a dialogue to promote healthy and safe communities for all.|support this Resolution and urge your “Aye”vote. Sineerely, Senator Dave Cortese California State Senator,15"District senator.cortese@sen.ca.gov Page 214 of 282 December 1, 2025 Honorable Mayor & Gilroy City Council Members City of Gilroy 7351 Rosanna St Gilroy, CA 95020 RE: Support for June LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall Dear Members of the Gilroy City Council: I write to express my strong support on the agenda item to recognize June as LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall, which will heighten awareness of LGBTQ Pride Month, as well as celebrate diversity, equity, social justice and inclusion. The rainbow flag, also known as the LGBTQ+ pride flag, serves as a symbol of Lesbian, Gay, Bisexual, Transgender, and Questioning pride and LGBTQ+ social movement. Today, celebrations include pride parades, picnics, parties, workshops, symposia and concerts. The LGBTQ Pride Month events attract millions of participants around the world. Memorials are held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had on history locally, nationally and intern ationally. All children should be able to attend school in a safe and inclusive environment free from discrimination. Civil rights laws and the California Education Code contribute to such environments. The lack of awareness and understanding of issues facing LGBTQ+ children and youth has contributed to higher rates of school dropout, academic failure, suicide and school disengagement. Education regarding LGBTQ+ issues increases understanding, cultivates respect for LGBTQ+ students, and cultivates a culture of allyship. Your actions were significant in 2021 by raising the first Pride Flag in the city’s history and Gilroy Unified School District made history by raising the first Pride Flag at their District Offices in 2024. Beginning in 2025, GUSD raised the Pride Flag at all District Facilities and High Schools. Page 215 of 282 Gilroy City Council December 1, 2025 Page 2 Acts of hatred against LGBTQ+ members of our community will not be tolerated; hate and discrimination have no part in our community. According to the Library of Congress the month of June is a time to celebrate our dynamic Lesbian, Gay, Bisexual, Transgender, and Questioning (LGBTQ+) community, raise awareness of quality services, and foster a dialogue to promote healthy and safe communities for all. I support this Resolution and urge your “Aye” vote. If your office has any questions or concerns, please do not hesitate to reach out to our office at (831) 759-8676. Sincerely, R ROBERT RIVAS Speaker of the Assembly Page 216 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Consideration of options and recommendations for meeting State-mandated stormwater trash capture requirements. Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Mark Johnson, Environmental Programs Manager STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION It is recommended that the City Council authorize staff to immediately: 1. Prepare and advertise a Request for Proposal (RFP) for the fabrication and installation of 73 connector pipe screens (a type of certified full trash capture system) to meet the City's December 2026, 30-percent MS4 trash capture mandate; and 2. In conjunction with the bid award, return to City Council with a budget amendment to add the Connector Pipe Screen Project into the FY 26 Capital Budget with funding from Stormwater Management Fund (422). It is further recommended that the City Council direct staff to: 1. Conduct an engineering study and finance plan to implement hydro-dynamic separators to meet the 65-percent and 100-percent MS4 trash capture requirements; or 2. In alternative, develop a plan for meeting 65-percent and 100-percent MS4 trash capture mandates under the Track 2 compliance option. EXECUTIVE SUMMARY The City is a small MS4 permittee regulated under the Phase II Municipal Separate Page 217 of 282 Storm Sewer System (MS4) Permit issued by the State Water Resources Control Board. MS4 permitting is required under the federal Clean Water Act and its National Pollutant Discharge Elimination System program. In California, the NPDES program is implemented through the Porter Cologne Water Quality Control Act. The purpose of this particular mandate is to eliminate the discharge of litter and trash to local streams, wetlands and sloughs. The first compliance milestone under the Informal Draft Phase II Municipal Separate Storm Sewer System (MS4) Permit requires the City to eliminate trash from 30% of Priority Land Use (PLU) areas by December 2, 2026. Compliance is mandatory under these laws, and there is no dedicated state or federal funding for local implementation, so costs are borne by the permittees. In 2017, the then-seated Council authorized staff to proceed with individual trash capture devices under the Track 1 compliance program to meet the initial 30-percent capture requirement (by December 2026). In January 2025, the current City Council directed staff to further evaluate alternative compliance options and to return with a recommendation. The Public Works Department Work Program for Fiscal Years (FY) 26 and 27 included the Council requested evaluation and since July 1st, Public Works staff have been researching and developing its recommendation for Council consideration. The purpose of this item is to provide an update to the City Council and offer a recommended course of action that integrates a hybrid approach to compliance to reach the 100-percent reduction goal by December 2, 2030. BACKGROUND Municipal stormwater management and maintenance long predates the federal Clean Water Act and related permits. Storm drain systems were designed to reduce localized street and property flooding within developed areas. Once the City initiated conveyance of stormwater through a formal fixed storm drain system, the City became committed to maintenance of the storm drain system. Over time, the storm drain system has expanded to include not only “grey” improvements like gutters, pipes, catch basins and drop inlets to convey stormwater runoff to outfall locations but also “green” infrastructure like retention/detention basins and other natural/planted infiltration facilities which slow flows, recharge the groundwater basin and capture sediment/trash before release into the pipe/outfall system. In Gilroy, the outfalls are principally releasing into Uvas Creek, Llagas Creek, Miller Slough and other open channels. Upon establishing a storm drain system, the City tacitly accepted the obligation to clean, repair and manage the system. The City has a total of 4,950 catch basins and drop inlets. Annually, staff is focused on cleaning 147 drop inlets and catch basins which currently represent the bare minimum required by the MS4 Permit. Annual maintenance of the 147 consists of two, 2-person teams hand cleaning the catch basins and drop inlets (prior to the rainy season). The cleaning helps prevent localized flooding and reduces contaminants, which include litter and trash, from reaching waterways. At a minimum, annual maintenance work should include cleaning of more drop inlets and Page 218 of 282 catch basins, and cleaning them at least twice a year. Optimally (industry standard), cleaning crews would utilize a Vactor truck or regenerative street cleaner. The regenerative street cleaner would also exponentially improve fall leaf cleaning from the streets (and the storm water system). Staff requested $400,000 in the FY26-27 budget to purchase a regenerative sweeper. This request was not ultimately recommended. A request will be included in the next biennial budget. Regular street sweeping is a component of the MS4 permit. Street sweeping in Gilroy is provided by Recology South Valley under the City’s solid waste franchise agreement. Commercial areas are swept weekly and residential streets are swept every two weeks. The City does not restrict parking on sweeping days, so parked vehicles can block the curb and gutter and reduce the effectiveness of sweeping. In the future, this issue is likely going to be a policy question for the City Council. The MS4 program did not create the duty to maintain the storm drain system. The MS4 permit adds to statutory obligations and a regulatory framework that includes enforcement and potential fines for non-compliance which did not exist prior to its enactment. The City is a small MS4 permittee regulated under the Phase II MS4 permit issued by the State Water Resources Control Board. MS4 permitting is required under the federal Clean Water Act and its National Pollutant Discharge Elimination System program. In California, the NPDES program is implemented through the Porter Cologne Water Quality Control Act. Compliance is mandatory under these laws, and there is no dedicated state or federal funding for local implementation, so costs are borne by permittees. For violations of MS4 permit requirements, the Board may impose enforcement actions including administrative civil liability under Water Code section 13385 subdivision c of up to ten thousand dollars per day per violation. On June 1, 2017, the State Water Board issued a Water Code section 13383 order to all permittees (which included Gilroy) that did not have existing trash requirements in their permit. The order required permittees to identify their compliance pathway in the Provisions by September 1, 2017. The Provisions contain two possible regulatory compliance pathways, “Track 1” certified full capture systems or “Track 2” full capture equivalency. In August 2017, the City notified the Water Board that it would comply under the Track 1 pathway. In July 2024, the State Water Board released an informal draft update to the Phase II MS4 permit. Attachment H of the informal draft proposes interim milestones of 30 percent PLU area coverage with certified full capture systems or equivalent controls by December 2, 2026, 65 percent by December 2, 2028, and 100 percent by December 2, 2030. Staff anticipates a final draft in February 2026 and there has been no indication that these milestones will change. Page 219 of 282 In September 2024, Gilroy started transitioning from a contract environmental services division to an in-house staff division. During this transition, staff was directed by previous management to proceed with the Track 1 compliance pathway utilizing the StormTeck ST3G connector pipe screens. StormTeck was chosen due to ease of installation, certification by the Water Board and its ability to be removed. Removal is desirable for ease of removal in high stormwater flow, at times for cleaning and ultimately for relocation if trash load is not existent. Staff released the request for proposal for the installation of these connector pipe screens on October 7, 2024, and held a bid opening on December 18, 2024. The City received three bids with Apex Companies LLC being the lowest responsive bidder. On January 27, 2025, the City Council considered awarding a contract to Apex Companies LLC in the amount of $250,000.00 to install 80 StormTek ST3G connector pipe screens in PLU area catch basins. The City Council chose not to award the contract. Once a new permit is adopted and the Statewide Trash Provisions are incorporated, the City will be required to report its compliance with the trash provisions to the Water Board within 180 days. During the January 2025 City Council Meeting, the Council indicated concerns that other options were not evaluated prior to going out to bid. Notably, there was an interest in evaluating the option of outfall collection of trash and litter. The Council also indicated some frustration with the general regulatory framework and obligations of the City. The Council also sought more detail on the funding source for the trash capture construction contract and about the requested construction contingency, which exceeded the normal percentage. Council asked for a clearer path to compliance through 2030 including total cost and schedule. Council also asked about maintenance in leafy areas, overflow function during storms, alternatives such as street sweeping or a Track 2 equivalent approach, and the risk of state enforcement. After deliberation, Council tabled the item pending responses and clarification. This report is intended to answer questions and concerns raised last January. ANALYSIS Overview As noted above, the Statewide Trash Provisions allow municipalities to comply through either Track 1 (installation of certified full capture systems) or Track 2 (a combination of systems, enhanced programs, and institutional controls designed to demonstrate “Full Capture Equivalency”). The following is an overview of Track 1 and Track 2 options along with discussion of general applicability within the City of Gilroy. Attachment B includes three maps showing the approximate locations potential Phase 1 connector pipe screens, outfall locations and location of likely locations for hydrodynamic separators. Track 1 - Full Capture Systems Full capture systems are designed to trap particles 5mm and larger and accommodate flow from the 1 hour 1 year storm to the tributary drainage. These systems are primarily Page 220 of 282 characterized as connector pipe screens (CPS), high-flow capacity systems, and multi- benefit stormwater treatment systems. Catch Basin Inserts. Catch basin inserts consist of connector pipe screens, inlet filters, and drop in filters and can be installed with minimal inlet modifications. These systems are often chosen because of the ease of installation and the lower upfront capital costs. Additionally, the systems would not require regulatory permits from agencies like California Fish and Wildlife, US Fish and Wildlife and/or the US Army Corps of Engineers. These systems are not chosen by all agencies as they tend to have higher ongoing operational costs due to the number of systems needed and the regulatory obligation to inspect and clean/maintain a minimum of two times a year. The systems can also be subject to some clogging by vegetation, debris, and trash where not maintained adequately. These systems are currently certified by the Water Board and require no additional approvals. In 2018, the City informed the Water Board that it would be using connector pipe screens to meet the initial 30-percent trash capture goal. Staff has reached out to a number of cities to better understand if there are emerging best practices. We found that many agencies have implemented connector pipe screens. Morgan Hill, San Jose, Milpitas, Cupertino, Campbell, and Redwood City have been using the screens to meet their 30-percent obligation. Morgan Hill also informed us that they are transitioning their program to a high flow capacity system to meet the 100-percent requirement (see below for more information). Drop in filter Page 221 of 282 Inlet Filer Connector pipe screen (CPS) High-Flow Capacity Systems. High-flow capacity systems are another Water Board certified option under Track 1. These are proprietary stormwater treatment systems that require engineering and hydraulic design to size and install. The systems are intended to function near the outfall locations which reduces the number of systems required. There are three basic types of systems with the vault hydrodynamic separator emerging as the industry standard in California. Each of these types of units require maintenance and regular inspection to ensure the desired performance is met. The systems consist of vault-based systems, gross solid removal systems, and netting systems. Upfront capital costs vary widely based upon the specific location and application. Ongoing operating and maintenance costs also vary widely. Hydrodynamic separators tend to have higher upfront costs but also the lowest ongoing costs. For the purposes of this report, staff will focus on two outfall netting and hydrodynamic separators as they have the most applicability to the Gilroy storm drain system. Page 222 of 282 Netting systems Gross solid removal Vault hydrodynamic separators In January, the Council indicated a desire for staff to consider the outfall netting option. There are currently only two netting system units that have been certified by the Water Board which means that “off-the-shelf" options are very limited. Staff has visited many of the outfalls to assess netting system viability. Based upon this review staff has Page 223 of 282 determined that none of the current certified units would be adaptable to Gilroy. This means that the City would have to contract for design of each outfall net system, seek certification of each design by the Water Board and ultimately fabricate each unit. This would be time consuming with an unknown cost per unit. Beyond design and cost, some of the outfalls are in a condition which cannot accommodate netting. (see Attachment A for photos of outfalls). We also attempted to qualify/quantify maintainability of outfall netting. A significant element of maintenance is access given the need for a crane/boomtruck to empty and maintain. There are significant physical access challenges throughout the system. Netting itself needs regular attention, repair and replacement. There will also be significant regulatory challenges with State and federal environmental agencies given the location of outfalls. Ultimately, staff concluded that the option, while seemingly being the simplest, is not viable for Gilroy. Staff will also note that Morgan Hill evaluated outfall netting options and ultimately chose not to proceed with the netting option. One of the emerging trends is the use of hydrodynamic separators. Morgan Hill is currently preparing to install five hydrodynamic separators at a cost of $2,585,000. Morgan Hill recently purchased a dedicated Vactor Truck for storm drain maintenance operations as part of their program. Hydrodynamic Separators are being selected for trash capture for their relative simplicity of placement, effectiveness and low-cost ongoing maintenance. Council will note that estimates for hydrodynamic separators is significantly higher. The higher costs represent larger units due to larger drainage tributaries. Sizing and costs could be reduced if the City implemented retroactive trash capture for private developed properties. This would not be popular with property owners/business owners and would require significant investment of time and money in a City-run compliance/enforcement program. Multi-Benefit Systems. The State Water Board Executive Director has categorically certified five multi-benefit full capture systems: bioretention; capture and use; detention basins; infiltration trench or basin; and media filters. These systems are being implemented within new development as the State guidance includes transition to “green” infrastructure where possible. Multi-Benefit systems were not considered for meeting the MS4 requirements as the focus is on existing developed commercial areas. These areas utilize existing “grey” infrastructure and lack large pervious areas to construct large basin or sub-basin facilities. Track 2 - Full Capture System Equivalency The Water Board offers an optional pathway to compliance which is referred to as “Track 2”. Track 2 offers the City the ability to develop a plan which demonstrates that implementation of the plan will result in equivalent full trash capture compliance as Track 1. Staff has again researched the Track 2 option. There are a number of cities that have chosen the option. Many of the Bay Area cities have chosen this path. Those cities also have historically funded robust environmental programs and commensurate staffing. Staff looked into the Track 2 programs at the cities of Paso Robles and San Luis Obispo as well. These two cities are located within the Central Coast Regional Page 224 of 282 Water Quality Control Board jurisdiction (same as Gilroy) and share more attributes with Gilroy (than Palo Alto for example). Given their experience we feel that Track 2 is a viable option to pursue to meet the 65-percent and 100-percent requirements with the understanding that there a great deal of unknowns from the Water Board perspective and the effort will require ongoing consultant services and staffing commitments. We can report that San Luis Obispo Track 2 program includes ongoing annual budgeting for 2 full time field staff with a Vactor truck and one full time program manager level position. Below is a more fine-grained look at what the Water Board will require of the City as part of a request for Track 2 compliance. Pursuing Track 2 would require the following steps: • Baseline Assessments: Conduct at least two On Land Visual Trash Assessments (OVTA) at selected high priority locations to establish baseline trash levels using the State Water Board OVTA protocol. • Trash Generation Map: Develop a map classifying areas of the City by trash generation rates (low, moderate, high, & very high). • Implementation Plan: Identify measures to reduce trash loading where standards are not met, such as enhanced street sweeping, targeted enforcement, public education, and installation of certified full capture systems where appropriate. • Assessment Plan: Define OVTA sites, methods, frequency, data management, and QA QC procedures. • Implementation: Begin operational enhancements, including added sweeping routes, new public trash bins, targeted code enforcement, and outreach. • Monitoring: Conduct annual or more frequent visual assessments and document corrective actions. • Annual Reporting: Submit the annual report documenting progress, data, O&M, and corrective actions. Initial costs to develop a Track 2 compliance program is estimated to be at least $175,000 given the City’s limited available data. These costs cover baseline trash assessments, mapping, plan development, and consultant support. Additional, ongoing costs for enhanced sweeping, enforcement, and monitoring would be required. Lifetime costs could conceivably exceed Track 1 options given required consultant support, the likely need to evaluate and re-evaluate efforts and the potential for Water Board shifts in their approach to Track 2 (meaning the Water Board acceptance at a given point does not assure or prevent future Water Board compliance efforts). It is the Water Boards’ expectation that under a Track 2 compliance pathway “full capture systems will be utilized when not cost prohibitive.” The Water Board is sending a strong message Page 225 of 282 that they encourage Track 1 solutions over Track 2. Staff is recommending the City Council evaluate hydrodynamic separators, in part, to potentially support an argument for prohibitive cost under Track 1. The table below summarizes the primary compliance options available to Gilroy to meet the Statewide Trash Provisions, shown for both the initial 30 percent milestone and full 100 percent buildout. For each option, the table describes what implementation would look like locally, along with key advantages and drawbacks identified to date, and rough order of magnitude capital and ongoing operation and maintenance estimates. Cost figures are at a planning level and will be refined as site specific designs and permitting requirements are confirmed. Table 1. Summary assessment of compliance options Conclusions • Track 1 compliance, regardless of the type, is direct and achievable. Installation of certified full trash capture systems is automatically recognized by the State as compliant, eliminating Water Board inconsistencies and unknown costs. • Outfall netting, as outlined in the report, is not a viable option. With up to 47 outfall locations in various locations and conditions, the capital costs and ongoing maintenance costs will be prohibitive. • Existing dedicated stormwater fees are available to complete Phase 1 (30- percent compliance) connector pipe screens recommended by staff. Although the Page 226 of 282 previous bids are no longer valid, indications are that the costs are likely to be within 10-20 percent of the prior bid, somewhere between $200,000 and $250,000. Completing the work will provide better data on trash/litter to be used in future Track 1 or 2 efforts. • Maintenance of the Phase 1 (30-percent compliance) connector pipe screens recommended by staff is manageable by PW Operations. Further, maintenance of Phase 2 and Phase 3 (100-percent compliance) is predictable and within the capabilities of the Maintenance Worker 1/2 classification. New equipment and staffing would be necessary for work beyond 30-percent. • The placement of hydrodynamic separators would be the easiest from a construction perspective and ease of maintenance. The upfront capital costs are significantly higher than the connector pipe screens. Long-term maintenance costs are minimal. • Track 2 compliance is an option for the City to consider. As noted in the report, the Water Board sees Track 2 as a “last resort” option and may not support the City’s request. Staff is recommending that Track 2 only be used to address Phase 2 and Phase 3 (100-percent compliance). Actual costs are difficult to estimate until a Plan is developed. Evaluating Track 2 does not foreclose on implementing via Track 1 options. ALTERNATIVES With regard to the City's initial 30-percent trash capture obligation, consider the following alternatives: 1. Proceed with the installation of fabrication and installation of 73 connector pipe screens (a type of certified full trash capture system) to meet the City's December 2026, 30-percent MS4 trash capture mandate. Staff is recommending this method, given that the units are certified by the Water Board to meet MS4 trash capture obligations. 2. The City Council could direct staff to pursue the study and implementation of hydrodynamic separators in priority land use areas. This option is not recommended to meet the 30-percent MS4 requirement as there is insufficient time to conduct a study, prepare a finance plan, and implement hydrodynamic separators to meet the December 2026 deadline. Further, there is insufficient funding available to implement hydrodynamic separators at present. 3. The City Council could direct staff to pursue a Track 2 compliance method to meet the 30-percent MS4 requirement. Staff evaluated Track 2 and concluded that there is a certified compliance method available (pipe connector screens) and sufficient available funds, and therefore, Track 2 (per Water Board directive) was not a viable option for meeting the 30-percent obligation. Page 227 of 282 With regard to meeting the 65-percent and 100-percent trash capture obligations, consider the following alternatives: 1. Proceed with the installation of fabrication and installation of up to 427 additional trash capture devices to meet subsequent mandates. Staff is not recommending the alternative for meeting the 100-percent MS4 compliance obligation at this time. Staff believes there is value in assessing the viability of hydrodynamic separators and Track 2 compliance methods prior to proceeding with this option. 2. The City Council may direct staff to pursue the study of hydrodynamic separators in priority land use areas. This option is recommended given the relative ease of installation and maintenance. As noted previously, hydrodynamic separators have a substantial upfront capital cost, and the City has no specific funding source available for installation. 3. The City Council may direct staff to pursue the Track 2 compliance method, considered a “last resort” option by the Water Board. Staff remains concerned about the viability of Track 2 given the method is considered a "last resort" option available to jurisdictions lacking the financial capacity to implement a certified Track 1 method. It is also difficult to estimate the costs of Track 2, particularly given that the Water Board can regularly reassess and modify a Plan under Track 2. Costs could well exceed the costs of the certified trash capture devices. FISCAL IMPACT/FUNDING SOURCE The Stormwater Management Fund (422) has sufficient funding to complete Phase 1 (30-percent compliance) connector pipe screens. Fund 422 is derived from developer fees specific to post-construction stormwater treatment systems. The estimated cost of 73 trash capture systems is estimated at $200,000 to $250,000. There will be ongoing operational and maintenance costs, which will be paid from PW Operations' operating budget. Eventually, PW Operations will need to purchase a Regenerative Street Sweeper, which is estimated to cost $450,000. The costs of 100-percent compliance will depend on the direction of the City Council and are subject to detailed review at a later time. PUBLIC OUTREACH Staff will continue presenting trash management practices at community events and outreach campaigns. NEXT STEPS Based on Council direction: Page 228 of 282 • Staff will initiate the RFP process for the installation of the 73 certified trash capture devices. • Staff will develop an integrated program to provide equivalent full trash capture equivalency. This may require the use of consultants due to the complex nature of the program and staff availability. Attachments: 1. Attachment A - Sample Outfalls 2. Attachment B - Locations Page 229 of 282 Attachment A - Sample Outfalls Page 230 of 282 Note: Map is for reference purposes only. City of Gilroy 9,028 City of Gilroy, GIS Services 0.3 1:WGS_1984_Web_Mercator_Auxiliary_Sphere 0.14 Miles0.30 Premium Outlets - 24 Trash Capture Devices Outfall 1st Upstream Manhole Floor & Decor KP Premium Outlets Page 231 of 282 Note: Map is for reference purposes only. 9,028 City of Gilroy, GIS Services 0.3 1:WGS_1984_Web_Mercator_Auxiliary_Sphere 0.14 Miles0.30 City of Gilroy Gilroy Crossings - 43 Trash Capture Devices Outfall 1st Upstream Manhole 1st Upstream Manhole Outfall UNFI Gilroy Crossings Page 232 of 282 Note: Map is for reference purposes only. 4,514 City of Gilroy, GIS Services 0.1 1:WGS_1984_Web_Mercator_Auxiliary_Sphere 0.07 Miles0.10 City of Gilroy Gilroy Gardens - 6 Trash Capture Devices Approximate Outfall Location 1st Upstream Manhole Gilroy Gardens Page 233 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: RECOMMENDATION Approve representative seat assignments as determined by Mayor Bozzo per California Government Code Section 40605. EXECUTIVE SUMMARY BACKGROUND Pursuant to California Government Code Section 40605, Mayor Bozzo has reviewed the Council's appointments to regional and local boards and committees. After a thorough examination, he has recommended changes in appointments for 2026. Below is the list of appointments for 2026. Board or Committee Name Representative(s) Alternate(s) Association of Bay Area Governments (ABAG) Zach Hilton Kelly Ramirez Cal Train Citizen Advisory Page 234 of 282 Committee (CAC) Cal Train Policy Group (LPMG) Tom Cline Zach Hilton Gilroy Gardens Board of Directors Greg Bozzo Kelly Ramirez Sister Cities Carol Marques Tom Cline Gilroy Youth Task Force Tom Cline Kelly Ramirez Santa Clara Expressway Plan 2040 Policy Advisory Board (PAB) Tom Cline Zach Hilton Santa Clara County Library Joint Powers Authority Dion Bracco Carol Marques Santa Clara Habitat Agency Governing Board Carol Marques Kelly Ramirez Santa Clara Valley Agency Implementation Board Carol Marques Kelly Ramirez Santa Clara Water Commission Dion Bracco Terence Fugazzi Valley Water Joint Water Resource Committee Dion Bracco, Greg Bozzo Silicon Valley Clean Energy Authority JPA Board Zach Hilton Tom Cline Silicon Valley Regional Interoperability Authority Board (SVRIA) Tom Cline Terence Fugazzi South County Regional Wastewater Auth. (SCRAW) (3) Dion Bracco, Terence Fugazzi, Kelly Ramirez Carol Marques South County Youth Task Force Policy Team Greg Bozzo Zach Hilton Source Wise Advisory VTA Bike Ped. Advisory Committee Emily Miller VTA Board of Directors Greg Bozzo VTA Mobility Partnership Tom Cline, Terence Fugazzi Page 235 of 282 VTA Policy Advisory Committee Zach Hilton Tom Cline Visit Gilroy, Calif. Welcome Center Terence Fugazzi Tom Cline Santa Clara Housing and Community Development Advisory Commission (HCDAC) Kelly Ramirez Greg Bozzo Cities Association of Santa Clara County Kelly Ramirez Greg Bozzo A red-lined version of the updated roster is attached. The Downtown Committee and Gilroy Economic Development Partnership have been removed from the list. These committees expired following completion of their duties. ANALYSIS ALTERNATIVES FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact. PUBLIC OUTREACH This item was listed on the agenda for tonight and the agenda was posted outside of Council Chambers. NEXT STEPS The City Clerk will update the list to reflect the approved appointments. Attachments: 1. 2026 Proposed Regional Roster Page 236 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 1 of 9 Approved Association of Bay Area Governments (ABAG) Member(s): Carol MarquesZach Hilton Phone Number: (510) 464-7900 Alternate(s): Kelly Ramirez ABAG is the official comprehensive planning agency for the San Francisco Bay area region. ABAG's mission is to strengthen cooperation and coordination among local governments. In doing so, ABAG addresses social, environmental, and economic issues that transcend local borders. Meeting Information: General Assembly meetings are held in the spring and fall each year. CalTrain Citizen Advisory Committee (CAC)* Member(s): Steven Seebart1 Phone Number: (650) 508-6347 Alternate(s): N/A CAC is composed of nine volunteer members who serve in an advisory capacity to the tri-county policy board, providing input on the needs of current and potential rail customers, and reviewing and commenting on staff proposals and actions as requested by the board. Meeting Information: 3rd Wednesday of each month | 5:40 p.m. Edward J. Bacciocco Auditorium SamTrans Administrative Offices, 2nd Floor 250 San Carlos Ave., San Carlos, CA (two blocks west of the San Carlos Caltrain Station) CalTrain Policy Group (LPMG) Member(s): Zach HiltonTom Cline Phone Number: (650) 508-6493 Alternate(s): Tom ClineZach Hilton The Local Policy Maker Group (LPMG) is an advisory group, comprised of officials from the cities and counties along the Caltrain corridor. Meeting Information: Bi-monthly 4th Thursday | 5:30 p.m. Edward J. Bacciocco Auditorium SamTrans Administrative Offices, 2nd Floor 250 San Carlos Ave., San Carlos, CA (two blocks west of the San Carlos Caltrain Station) Downtown Committee Member(s): Terence Fugazzi Kelly Ramirez Phone Number: (408) 846-0204 Carol Marques The Downtown Committee is an Advisory Committee of members from the City Council and stakeholders in downtown Gilroy to provide recommendations and input into the completion of the adopted downtown recommendations, and other downtown-related activities. Meeting Information: Second Tuesday of the month| 8:00 a.m. Council Chambers 7351 Rosanna Street, Gilroy, CA 95020 * Gilroy resident is appointed to this body. 1 Term ends June 30, 20256. Page 237 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 2 of 9 Approved Gilroy Economic Development Partnership Member(s): N/A Phone Number: (408) 842-6436 | (408) 842-6437 Alternate(s): N/A The Gilroy Economic Development Partnership consists of representatives from the Gilroy Chamber of Commerce, Gilroy Downtown Business Association, Visit Gilroy/California Welcome Center, Gilroy Gardens, Gilroy Garlic Festival, Gavilan College, and the City of Gilroy. The group was created to focus on the economic development of three specific recreation/tourism initiatives: Gilroy Sports Park, the city-owned 536 acres at Gilroy Gardens, and Downtown Gourmet Alley. Meeting Information: 4th Wednesday of each month | 8:00 a.m. Cordevalle 1 Cordevalle Club Drive, San Martin, CA 95046 Gilroy Gardens Board of Directors Member(s): Greg Bozzo Phone Number: (408) 840-7100 Alternate(s): Kelly Ramirez Gilroy Gardens Board of Directors is a non-profit educational institution whose mission is to educate and inspire families, especially children, to appreciate horticulture and the importance of trees in our lives by providing fun and memories in a beautiful garden setting. Meeting Information: 2nd Thursday of each month | 3:00 p.m. Gilroy Gardens Operations Office Board Room Gilroy Gardens Family Theme Park 3050 Hecker Pass Hwy, Gilroy, CA 95020 Gilroy Sister Cities Association Member(s): Kelly RamirezCarol Marques Phone Number: (408) 310-8059 Alternate(s): Tom Cline The association furthers positive relations under the umbrella of Sister Cities International, funding and arranging student exchanges and tours of dignitaries from Gilroy’s six sister cities from the countries of Japan, France, Italy, Portugal, Mexico, and Palau to foster deeper cross-cultural understanding and global cooperation towards sustainable economic and community development. Meeting Information: 2nd Tuesday of each month | 6:00 p.m. Brownell School 7701 Hanna St, Gilroy, CA Page 238 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 3 of 9 Approved Gilroy Youth Task Force Member(s): Tom Cline Phone Number: (408) 846-0440 Alternate(s): Kelly Ramirez The specific purpose of this corporation is to eliminate illegal gang activity, graffiti, and illegal alcohol and drug sales, distribution, and use within the Gilroy area and to provide the education, skills, and community activities to promote a drug and gang-free lifestyle, in order to maintain and enhance the quality of life in Gilroy. Meeting Information: January Gilroy Senior Center Meeting Room Gilroy Senior Center 7371 Hanna St, Gilroy, CA South County Youth Task Force Policy Team Member(s): Greg Bozzo Phone Number: (408) 299-5010 Alternate(s): Zach Hilton Formed to address the influences and impacts of gangs on south county youth and their communities to reduce juvenile delinquent behaviors, reduce recruitment of youth into gangs, and reduce gang violence within the boundaries of Gilroy, Morgan Hill, and the unincorporated County areas of San Martin. Meeting Information: 3rd Wednesday of odd-numbered months | 10:00 a.m.-12:00 p.m. Alternates between Gilroy and Morgan Hill Cities Association of Santa Clara County Member(s): Greg BozzoKelly Ramirez Phone Number: (408) 766-9534 Alternate(s): Greg Bozzo The guiding principle remains to promote cooperation among the cities and advocate for positive action and enhance the quality of life for the residents of our county. Meeting Information: Santa Clara County Expressway Plan 2040 Policy Advisory Board (PAB) Member(s): Tom Cline Phone Number: (408) 573-2438 Alternate(s): Zach Hilton The PAB provides an elected officials’ forum for policy input to the Expressway Plan 2040 – a long-range plan for the eight-county expressways and transportation corridor Meeting Information: Meets 5 times per year | 6:30 p.m. SCC Board of Supervisors Chambers 70 W. Hedding St., San Jose, CA 95110 Page 239 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 4 of 9 Approved Santa Clara County Library Joint Powers Authority Member(s): Dion Bracco Phone Number: (408) 293-2326 x3090 Alternate(s): Carol Marques Provides policy direction and governance for the Santa Clara County Library District and oversees the County library budget, services, and programs for the service areas. Meeting Information: 4th Thursday of the months of January, April, October at 12:00 pm 1st Thursday in June at 12:00 pm Santa Clara County Library District Services and Support Center 1370 Dell Avenue Campbell, CA 95008 Santa Clara Valley Habitat Agency Governing Board Member(s): Carol Marques Phone Number: (408) 779-7261 Alternate(s): N/AKelly Ramirez The SC Valley Habitat Agency established a two-tiered governance structure consisting of a Governing Board and an Implementation Board. The four Local Partners (Santa Clara County, Gilroy, Morgan Hill, and San Jose) form the Governing Board for the Implementing Agency. Meeting Information: Min. of twice annually the third Thurs. of March and September | 4:00 p.m. Santa Clara Valley Habitat Agency 535 Alkire Ave., Suite 100 Morgan Hill, CA 95037 Santa Clara Valley Habitat Agency Implementation Board Member(s): Carol Marques Phone Number: (408) 779-7261 Alternate(s): Kelly RamirezN/A The SC Valley Habitat Agency Implementation Board comprises the four Governing Board members, together with two Habitat Plan permittees, the Santa Clara Valley Water District, and VTA. The Board oversees the majority of the operations of the Habitat Agency. Meeting Information: Third Thursday of odd-numbered months | 4:00 p.m. Santa Clara Valley Habitat Agency 535 Alkire Ave., Suite 100 Morgan Hill, CA 95037 Santa Clara Valley Water Commission Member(s): Dion Bracco Phone Number: (408) 630-2883 Alternate(s): Terence Fugazzi The Water Commission assists the Valley Water Board with issues pertaining to water supply and water quality, as well as policy matters that are of interest to the cities and Santa Clara County. Meeting Quarterly Jan, April, July, & October | 12:00 p.m. Page 240 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 5 of 9 Approved Information: Valley Water Board Room 5700 Almaden Expressway, San Jose, CA 95118 Valley Water Joint Water Resources Committee Member(s): Dion Bracco Greg Bozzo Phone Number: (408) 630-2408 Alternate(s): N/A This six-member Committee shall advance common South County water interests and receive input on future needs for groundwater management in the Llagas groundwater sub-basin; facilitate policy discussion and sharing of technical information on water supply planning for South County; identify demand for recycled water and share technical information on its use and implement the South County Recycled Water Master Plan. (Meets quarterly at SCRWA Treatment Plant) Meeting Information: Quarterly | 9:00 a.m. SCRWA Treatment Plant 500 Southside Dr. Gilroy, CA 95020 South County Regional Wastewater Authority (SCRWA) Member(s): Dion Bracco Terence Fugazzi Kelly Ramirez Phone Number: (408) 848-0480 Alternate(s): Carol Marques Serves as the governing body of the Authority, which provides the treatment and disposal of wastewater and recycled water for the cities of Gilroy and Morgan Hill. Meeting Information: Meets Quarterly | 8:00 a.m. SCRWA Treatment Plant 1500 Southside Dr. Gilroy, CA 95020 Santa Clara County Housing and Community Development Advisory Commission (HCDAC) Member(s): Kelly Ramirez Phone Number: (408) 299-5001 Alternate(s): Greg Bozzo The HCDAC advises the County Board of Supervisors regarding Urban County CDBG and HOME Programs Meeting Information: TBD| 6:15 pm Santa Clara County Board of Supervisors Chambers 70 W Hedding St., San Jose, CA 95110 Page 241 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 6 of 9 Approved Silicon Valley Clean Energy Authority JPA Board Member(s): Zach Hilton Phone Number: (408) 721-5301 Alternate(s): Tom Cline Twelve communities in Santa Clara County formed a Joint Powers Agency named the Silicon Valley Clean Energy Authority (SVCE), a local non-profit public agency that will run a Community Choice Energy (CCE) program. Meeting Information: Second Wednesday of each month | 7:00 pm Santa Clara County Board Room 70 W Hedding St., San Jose, CA 95110 Silicon Valley Regional Interoperability Authority Board (SVRIA) Member(s): Tom Cline Phone Number: (408) 630-2408 Alternate(s): Terence Fugazzi The nine-person SVRIA Board of Directors provides strategic guidance to staff, and the Working Committee reviews and approves the annual budget, hires the Executive Director and General Counsel, and oversees SVRIA activities. The Silicon Valley Regional Interoperability Authority (SVRIA) exists to identify, coordinate, and implement communications interoperability solutions to its member agencies to seamlessly integrate voice and data communications between law enforcement, fire, and rescue services, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery. SVRIA also provides strategic planning support for its members. Meeting Information: Quarterly in March, June, September, and November Sourcewise Advisory Council* Member(s): Dyanne Hofstad2 Phone Number: (408) 350-3200 Alternate(s): N/A The purpose of the Council is to advise Sourcewise and its Board of Directors about the needs of older adults and disabled persons in the county, to advocate on behalf of the most vulnerable and those of greatest need within the community, and to inform the community of resources and services available through Sourcewise. Meeting Information: 1st Monday of each month (10 x per year) | 12:00 p.m.-2:00 p.m. Meetings via Zoom until further notice Valley Transportation Authority (VTA) Bicycle Pedestrian Advisory Committee (BPAC) * Member(s): Eugene Bernosky3 Phone Number: (408) 321-5555 Alternate(s) : N/A * Gilroy residents are appointed to these bodies. 2 Term ends July 1, 2026. 3 Term ends June 30, 20246. Page 242 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 7 of 9 Approved The BPAC comprises 16 members representing each of the 15 cities and the county. It also has one ex- officio (non-voting) position for the Silicon Valley Bicycle Coalition. The BPAC advises the Board on funding and planning issues for bicycle and pedestrian projects. It also serves as the countywide bicycle advisory committee for Santa Clara County. Meeting Information: 2nd Wednesday of each month | 6:30 p.m. Teleconference VTA Board of Directors Member(s): Mark Turner (MH) Phone Number: (408) 321-5680 (Gilroy-Morgan Hill Rotation) Alternate(s): Greg Bozzo VTA Board of Directors sets VTA policy, amends the VTA Administrative Code, supports or opposes state or federal legislation, adopts the annual VTA budget, approves collective bargaining agreements and recommends major capital improvement projects to the appropriate regional, state and federal funding authorities. Meeting Information: 1st Thursday of each month | 5:30 p.m. SCC Board of Supervisors Chambers 70 W. Hedding St., San Jose, CA 95110 VTA Mobility Partnership Committee Member(s): Tom Cline Terence Fugazzi Phone Number: (408) 321-5907 Alternate(s): N/A Comprised of San Benito Co. Board Members, Gilroy, Hollister, and Morgan Hill Council Members along with VTA technical staff to jointly look at Highway 152 and 25 corridors. Meeting Information: Bi-monthly Gilroy City Council Chambers 7351 Rosanna St., Gilroy, CA VTA Policy Advisory Committee Member(s): Zach Hilton Phone Number: (408) 321-5680 Alternate(s): Tom Cline The PAC ensures that all jurisdictions within the county have access to the development of VTA's policies. Meeting Information: 2nd Thursday of each month | 4:00 p.m. Conference Room B104 VTA River Oaks Campus 3331 North First Street, San Jose, CA 95134 Visit Gilroy California Welcome Center Board Member(s): Terence Fugazzi Phone Number: (408) 842-6436 (as suggested for Visit Gilroy Board appointment) Alternate(s): Tom Cline The Welcome Center is in place to enhance the image and economy of the City by marketing the city Page 243 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 8 of 9 Approved and assisting to facilitate a viable business community. Meeting Information: 3rd Thursday of each month | 8:00 a.m. Location varies within Gilroy Page 244 of 282 City of Gilroy 2026 City Roster of County, Regional, and Statewide Bodies Page 9 of 9 Approved VTA Policy Advisory Committee Member(s): Zach Hilton Phone Number: (408) 321-5680 Alternate(s): Tom Cline The PAC ensures that all jurisdictions within the county have access to the development of VTA's policies. Meeting Information: 2nd Thursday of each month | 4:00 p.m. Conference Room B104 VTA River Oaks Campus 3331 North First Street, San Jose, CA 95134 Visit Gilroy California Welcome Center Board Member(s): Terence Fugazzi Phone Number: (408) 842-6436 (as suggested for Visit Gilroy Board appointment) Alternate(s): Tom Cline The Welcome Center is in place to enhance the image and economy of the City by marketing the city and assisting to facilitate a viable business community. Meeting Information: 3rd Thursday of each month | 8:00 a.m. Location varies within Gilroy Page 245 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026 Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: RECOMMENDATION Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026. EXECUTIVE SUMMARY BACKGROUND Section 502 of the Charter is entitled "Mayor Pro Tempore," and describes the following: "At the first meeting of the Council following the election or appointment of a member to the Council, the Council shall elect one of its members as Mayor Pro Tempore who shall act as Mayor during the absence or inability of the Mayor to act. In the case of the temporary absence or disability of both the Mayor and the Mayor Pro Tempore, the Council shall elect one of its members to act as Mayor Pro Tempore." The role of the Mayor Pro Tempore is to serve in a leadership role in the absence of the Mayor. For example, if the Mayor were to be ill on the evening of a Council meeting, the Mayor Pro Tempore would lead and run the meeting. Page 246 of 282 In 2018, then Mayor Roland Velasco, with the assistance of the City Attorney's Office, researched the Mayor Pro Tempore selection process. It was determined, and reported in the 2018 staff report, that the Council has authority to elect a Mayor Pro Tempore when it desires to do so, and that the Council can determine the length of time the Mayor Pro Tempore will serve in that capacity. It was also determined, if the Council decides to institute a form of rotation for the position, that is allowable under the Charter. As stated above, the only Charter restriction is the requirement to elect a Mayor Pro Tempore following the election or appointment of a new Council Member. Therefore, at this time, Mayor Bozzo is recommending that Council Member Zach Hilton be selected to serve as the Mayor Pro Tempore for calendar year 2026. ANALYSIS ALTERNATIVES Not Applicable. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact. PUBLIC OUTREACH This item was listed on the agenda for tonight and the agenda was posted outside of Council Chambers. NEXT STEPS Attachments: None Page 247 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Consent the Appointment of Scot Smithee (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: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION a) Consent the City Administrator's recommendation to appoint Scot Smithee (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 Scot Smithee (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 Scot Smithee (CalPERS retired annuitant) as Interim Police Chief effective upon successful completion of the Peace Officer Standards & Training (POST) hiring requirements (estimated to be December 15, 2025), and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment Page 248 of 282 agreement. Mr. Smithee is a California Public Employees’ Retirement System (CalPERS) retired annuitant, having retired as Gilroy's Police Chief in 2020. 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. Scot Smithee will serve as Interim Police Chief until the new Gilroy City Administrator selects a Police Chief. It is estimated that a new City Administrator will be selected on January 5, 2026, with an official start date to follow. One of the first significant decisions for the new City Administrator will be to select and recommend the appointment of the next Police Chief. It is estimated that a selection will be made @ February 2026 with a start date to follow mandatory POST hiring requirements. BACKGROUND Scot Smithee retired from the position of Police Chief effective June 1, 2020. As most know, Chief Smithee retired in 2015 from the position of Police Captain and later came out of retirement in 2017 to serve as Gilroy’s Police Chief. He also served as the Interim Fire Department Director prior to the hiring of Fire Chief Fleeup. Mr. Smithee has agreed to return again to serve as the Interim Police Chief while the City completes the recruitment for a new Police Chief. This appointment is necessary due to the quick departure of Interim Police Chief Ken Binder who was recently appointed as the San Mateo County Sheriff. The Police Chief recruitment process is already underway and a selection will be made by the new City Administrator as noted above. 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 a recruitment is underway for the position. The city has a Police Chief recruitment underway with the assistance of Peckham & McKenney executive search. We expect a new Police Chief will start work in the March 2026 time frame. 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, Scot Smithee agrees to perform the following duties related to the Gilroy Police Department: 1. 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. 2. Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline. 3. Manage the selection and assignment of Police Department employees. 4. Review and approve departmental personnel actions. 5. Direct the administration of staff training programs. Page 249 of 282 6. Formulate the annual departmental budget, and control budget expenditures. 7. Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council. 8. Direct the preparation of internal reports, orders and directives. 9. Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol. 10. Administer the communications operations, records, permits and licensing. 11. Administer the Law Enforcement Branch of the City’s Emergency Operations Center. 12. Coordinate Police service activities with those of other law enforcement and related organizations. 13. Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices. 14. Attend public administration conferences, meetings, and seminars. 15. Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs and activities. 16. Perform Police and field duties including but not limited to incident command of major operations. 17. Perform other related duties as assigned. As Interim Police Chief, Scot Smithee will continue to report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. To ensure continuity in the management of the Police Department during a critical time period, it is recommended that the City Council consent the appointment of Scot Smithee as Interim Police Chief (retired annuitant) and approve the resolution consenting the appointment and authorizing the Interim City Administrator to execute the employment agreement. CalPERS is currently reviewing the resolution and employment agreement associated with this staff report. If any mandatory updates are needed, those attachments will be updated and routed/posted. ANALYSIS n/a ALTERNATIVES The recommended alternative is to consent the appointment of Scot Smithee as the Interim Police Chief (retired annuitant) and adopt the resolution approving his Page 250 of 282 appointment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Police Chief. This alternative is 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 $8,200 per month, which is all general fund savings. Over a four-month period, the savings will total approximately $32,800. PUBLIC OUTREACH n/a NEXT STEPS Upon Council approval, the Interim City Administrator and Scot Smithee will sign the employment agreement. Other than completion of any final POST hiring requirements, the shift to Interim Police Chief will be seamless. Completion of the POST requirements began shortly after Chief Binder announced his departure and should be completed by December 15, 2025. The Police Chief hiring process will remain on track with the new City Administrator selecting a new Police Chief shortly after hire. The interim assignment will end upon the hiring of a regular Police Chief. Attachments: 1. Smithee Scot Council Resolution for Interim Police Chief Appointment 21221h 12.8.25 2. Scot Smithee Employment Agreement Dec 2025 Exhibit A Page 251 of 282 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING SCOT SMITHEE AS INTERIM POLICE CHIEF 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, Scot Smithee retired from California Public Employees’ Retirement System employment in 2020; and WHEREAS, the position of Police Chief is currently vacant with a selection to be made by the new City Administrator within a reasonable time period following the City Administrator starting employment; and WHEREAS, Interim Police Chief Binder resigned from his interim Police Chief assignment rather quickly in mid-November to accept appointment with another agency; and WHEREAS, Scot Smithee has over 30 years of experience in law enforcement and extensive expertise in Police Department management for a local government, including having served as Police Chief for the City of Gilroy for over three years; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Scot Smithee to the vacant position of Interim Police Chief for the City of Gilroy under Government Code Section 21221(h), effective upon completion of Peace Officer Standards and Training (POST) hiring requirements (estimated to be on or about December 15, 2025); 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 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 Scot Smithee; and WHEREAS, the entire employment agreement between Scot Smithee 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 252 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING SCOT SMITHEE AS INTERIM POLICE CHIEF AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 2 of 3 WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and WHEREAS, the hourly rate to be paid to Scot Smithee will be $135.16; and WHEREAS, Scot Smithee 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 Scot Smithee as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Police Chief for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Police Department. 3. The City Council hereby authorizes the appointment of Scot Smithee to Interim Police Chief effective upon completion of all POST hiring requirements (on or about December 15, 2025) 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 Scot Smithee. 4. The employment agreement with Scot Smithee, 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 on December 8, 2025, effective on completion of all POST hiring requirements (on or about December 15, 2025). 5. The Interim City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the Interim City Administrator and City Attorney. PASSED AND ADOPTED this 8th day of December, 2025 by the following roll call vote: Page 253 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING SCOT SMITHEE AS INTERIM POLICE CHIEF AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 3 of 3 AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 254 of 282 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 Scot Smithee, 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 City of Gilroy for over thirty years to include three (3) years as Police Chief; and B. Retired Annuitant retired from the City of Gilroy effective June 1, 2020 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City has a vacancy in the position of Police Chief, a regular position for which the City is conducting a recruitment for a permanent appointment; and D. The City has an immediate need for an employee to temporarily perform the position of 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 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. 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. 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: AGREEMENT Section 1. Term of Services The term of this Agreement is from successful completion of Peace Officer Standards & Training (POST) hiring requirements (estimated to be December 15, 2025) until such time as a permanent replacement for the position of Police Chief has been selected and has commenced employment, unless terminated sooner as provided below. Page 255 of 282 Page 2 of 4 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. 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 $135.16 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. Page 256 of 282 Page 3 of 4 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 employees’ compensation. Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement or as an extra help retired annuitant 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 location 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. 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 Page 257 of 282 Page 4 of 4 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 December, 2025. Employer: City of Gilroy Brad Kilger, Interim City Administrator Employment Effective Date Retired Annuitant Scot Smithee Approved as to Form: Andrew L. Faber, City Attorney Attest: Kim Mancera, City Clerk Page 258 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Consent the Appointment of Karl Bjarke (CalPERS Retired Annuitant) as the Interim Utilities Director Effective December 23, 2025 and Adoption of a Resolution Approving the Appointment and Employment Agreement Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administrative Services Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION a) Consent the City Administrator's recommendation to appoint Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025 pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement. EXECUTIVE SUMMARY To ensure continuity in the leadership and management of the Utilities Department, it is recommended that the City Council consent to the appointment of Karl Bjarke (CalPERS retired annuitant) as Interim Utilities Director effective December 23, 2025 and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment agreement. This date will allow for some overlap transition time with retiring Utilities Director Heath McMahon whose last day of work is December 29, 2025 (retirement effective December 30, 2025). Page 259 of 282 BACKGROUND As noted above, due to the upcoming retirement of Utilities Director Heath McMahon, the City of Gilroy will have a vacancy in the position of Utilities Director. The City plans to commence a recruitment for a Utilities Director prior to December 23, 2025 and hire an Interim Utilities Director to serve while the recruitment is being conducted. Former Morgan Hill Public Works Director Karl Bjarke is available to serve as the Interim Utilities Director. Mr. Bjarke is a California Public Employees’ Retirement System (CalPERS) retired annuitant having retired in 2017. He has the education, skills, and experience to hit the ground running and serve as Gilroy’s Interim Utilities Director beginning December 23, 2025. Mr. Bjarke has over twenty-eight years of related municipal work experience. He served the City of Morgan Hill for over fifteen years most recently in the capacity of Public Works Director (six years). Prior to serving as the Director, Mr. Bjarke was the Deputy Public Works Director for approximately nine years. He has significant experience in the aeras of Water and Wastewater. He also holds a State of California Professional Engineer license. Given his work in Morgan Hill, Mr. Bjarke is well versed with the South County Regional Wastewater Authority (SCRWA), Valley Transportation Authority (VTA), Santa Clara Valley Water District (SCVWD), Caltrans, and other similar agencies important to the work of Utilities. Mr. Bjarke has previously served as Gilroy’s interim Public Works Director on two occasions when the position was vacant and under recruitment. 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 a recruitment is underway for the position. Prior to December 23, 2025, the City will initiate a recruitment for a new Utilities Director and complete the selection process in the next four to six 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 Utilities Director role, and as an officer of the City, Karl Bjarke agrees to perform the following duties related to the Gilroy Utilities Department: • Serve as head of the Utilities Department and technical advisor to the City Administrator and other department heads on utilities related matters. • Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the Utilities Department. • Plan, organize, assign, direct, review, and evaluate utilities and utility-related engineering activities, including project planning, design, construction, and inspection. • Plan, organize, assign, direct, review, and evaluate all maintenance activities, including the, water and wastewater utilities. Page 260 of 282 • Plan, organize, and direct the City utilities program which includes: water supply, treatment, storage, conservation, distribution, facilities, and customer service operations; wastewater collection, treatment, and redistribution. • Implement the City’s Water, Wastewater Master Plans and long-term South County Regional Wastewater Authority (SCRWA) Capital Improvement Plan. • Forecast water usage needs, develop plans for water distribution and recycling accordingly, and allocate funds as necessary. • Coordinate with Valley Water to ensure the City’s long-term sustainability of water supply needs are met and groundwater supplies are properly protected. • Perform preliminary and final engineering review and consultation on public and private utility-related projects with developers, designers, and project engineers; review and sign maps, plans, specifications, and projects for compliance with sound engineering practices and existing laws; review initial studies and environmental impact reports for adequate mitigation of utility infrastructure impacts. • Confer with City officials and community groups on proposed utilities projects. • Prepare and present comprehensive technical reports. • Make presentations before Boards, Commissions, and the City Council. • Direct the departmental budget to include: preparing section budgets, preparing the annual five-year and ten-year capital improvement budgets for utility projects, preparing, and administering the SCRWA budget, and monitoring revenues and expenditures. • Research, develop, and monitor grant funding, programs, and projects. • Research, analyze, and make recommendations for cost effective departmental operations to include: designing, administering, and evaluating departmental programs and services; addressing process issues; and implementing required changes. • Select, train, and evaluate department personnel. • Monitor developments related to municipal utilities matters; evaluate their impact upon City operations and recommend policy and procedural improvements. • Coordinate the activities of the Utilities Department with those of other departments and agencies. Meet with and represents the City in project development and negotiations with regional agencies such as Valley Water and our SCRWA partner, City of Morgan Hill. • Serve as the City’s representative on all local, regional, and state-level boards including those at Valley Water to ensure that the City has representation for all matters impacting Gilroy rate payers. • May be assigned to support the Operations Branch, or other branches, of the city’s Emergency Operations Center. • Perform related work as assigned. As Interim Utilities Director, Karl Bjarke will report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. Mr. Bjarke will be paid $131.22 per hour with no other benefits or incentives. Page 261 of 282 CalPERS is currently reviewing the resolution and employment agreement associated with this staff report. If any mandatory updates are needed, those attachments will be updated and routed/posted. ANALYSIS n/a ALTERNATIVES The recommended alternative is to consent the appointment of Karl Bjarke as the Interim Utilities Director (retired annuitant) and adopt the resolution approving his appointment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Utilities Director. This alternative is 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 enterprise funds (water and wastewater) approximately $6,800 per month. Over a four-month period, the savings will total approximately $27,200 - $40,800. PUBLIC OUTREACH n/a NEXT STEPS Upon Council approval, the Interim City Administrator and Karl Bjarke will sign the employment agreement. Mr. Bjarke will begin work on December 23, 2025 to allow for a smooth transition of leadership in the Utilities Department. Further, a recruitment process for Utilities Director will be initiated prior to December 23, 2025 as required by CalPERS. Attachments: 1. Bjarke Karl Council Resolution for Interim Utilities Director Appointment 21221h 12.8.25 2. Bjarke Karl Employment Agreement Dec 2025 Exhibit A Page 262 of 282 Page 263 of 282 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KARL BJARKE AS INTERIM UTILITIES DIRECTOR 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, Karl Bjarke retired from California Public Employees’ Retirement System employment in December 2017; and WHEREAS, the position of Utilities Director will become vacant later this month due to the retirement of Utilities Director Heath McMahon; and WHEREAS, Karl Bjarke has over 28 years of experience in the area of public works and municipal engineering, to include the areas of water and wastewater and served as the City of Morgan Hill Public Works Director from 2011 - 2017; and WHEREAS, Karl Bjarke has served two times as Gilroy’s Interim Public Works Director when the position was vacant and has familiarity with Gilroy policies, processes, and procedures; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Karl Bjarke to the vacant position of Interim Utilities Director for the City of Gilroy under Government Code Section 21221(h), effective December 23, 2025; 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, a step that will be completed prior to December 23, 2025; 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 permanent re placement for the vacant position of Utilities Director for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Karl Bjarke; and WHEREAS, the entire employment agreement between Karl Bjarke 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, d ivided by 173.333 to equal the hourly rate; and Page 264 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KARL BJARKE AS INTERIM UTILITIES DIRECTOR AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 2 of 3 WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and WHEREAS, the hourly rate to be paid to Karl Bjarke will be $131.22; and WHEREAS, Karl Bjarke 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 Karl Bjarke as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Utilities Director for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Utilities Department. 3. The City Council hereby authorizes the appointment of Karl Bjarke to Interim Utilities Director effective December 23, 2025 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 Utilities Director for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Karl Bjarke. 4. The employment agreement with Karl Bjarke, 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 on December 8, 2025, and is effective December 31, 2025. 5. The Interim City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the Interim City Administrator and City Attorney. PASSED AND ADOPTED this 8th day of December, 2025 by the following roll call vote: Page 265 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KARL BJARKE AS INTERIM UTILITIES DIRECTOR AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 3 of 3 AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 266 of 282 Page 1 of 5 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 Karl Bjarke, an individual (“Retired Annuitant”) effective December 23, 2025 (“Effective Date”). RECITALS A. Retired Annuitant previously was employed by the City of Morgan Hill and other California Public Employees’ Retirement System (CalPERS) employers since 1989, having previously served as Morgan Hill’s Public Works Director from 2011-2017; and B. Retired Annuitant retired from public service effective December 2, 2017 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City has a vacancy in the position of Utilities Director, a regular position for which the City will commence steps to initiate the recruitment for a permanent appointment prior to December 23, 2025; and D. The City has an immediate need for an employee to temporarily perform the position of Utilities Director, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City’s Utilities Department; and E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Utilities 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 pos ition 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 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: AGREEMENT Section 1. Term of Services The term of this Agreement is from December 23, 2025 until such time as a permanent replacement for the position of Utilities Director has been selected and has commenced employment, unless terminated sooner as provided below. Page 267 of 282 Page 2 of 5 Section 2. Scope of Services Retired Annuitant, as an officer of the city, agrees to perform the following duties related to the Gilroy Utilities Department: • Serve as head of the Utilities Department and technical advisor to the City Administrator and other department heads on utilities related matters. • Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the Utilities Department. • Plan, organize, assign, direct, review, and evaluate utilities and utility-related engineering activities, including project planning, design, construction, and inspection. • Plan, organize, assign, direct, review, and evaluate all maintenance activities, including the, water and wastewater utilities. • Plan, organize, and direct the City utilities program which includes: water supply, treatment, storage, conservation, distribution, facilities, and customer service operations; wastewater collection, treatment, and redistribution. • Implement the City’s Water, Wastewater Master Plans and long-term South County Regional Wastewater Authority (SCRWA) Capital Improvement Plan. • Forecast water usage needs, develop plans for water distribution and recycling accordingly, and allocate funds as necessary. • Coordinate with Valley Water to ensure the City’s long-term sustainability of water supply needs are met and groundwater supplies are properly protected. • Perform preliminary and final engineering review and consultation on public and private utility- related projects with developers, designers, and project engineers; review and sign maps, plans, specifications, and projects for compliance with sound engineering practices and existing laws; review initial studies and environmental impact reports for adequate mitigation of utility infrastructure impacts. • Confer with City officials and community groups on proposed utilities projects. • Prepare and present comprehensive technical reports. • Make presentations before Boards, Commissions, and the City Council. • Direct the departmental budget to include: preparing section budgets, preparing the annual five- year and ten-year capital improvement budgets for utility projects, preparing, and administering the SCRWA budget, and monitoring revenues and expenditures. • Research, develop, and monitor grant funding, programs, and projects. • Research, analyze, and make recommendations for cost effective departmental operations to include: designing, administering, and evaluating departmental programs and services; addressing process issues; and implementing required changes. • Select, train, and evaluate department personnel. • Monitor developments related to municipal utilities matters; evaluate their impact upon City operations and recommend policy and procedural improvements. • Coordinate the activities of the Utilities Department with those of other departments and agencies. Meet with and represents the City in project development and negotiations with regional agencies such as Valley Water and our SCRWA partner, City of Morgan Hill. Page 268 of 282 Page 3 of 5 • Serve as the City’s representative on all local, regional, and state-level boards including those at Valley Water to ensure that the City has representation for all matters impacting Gilroy rate payers. • May be assigned to support the Operations Branch, or other branches, of the city’s Emergency Operations Center. • Perform related work as assigned. 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 $131.22 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 employees’ compensation. Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement or as an extra help retired annuitant 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 location for services will be at the following addresses: Gilroy Utilities Department, 250 W. Sixth Street, Gilroy, California 95020 Gilroy Corporation Yard, 613 Old Gilroy 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. Page 269 of 282 Page 4 of 5 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. 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 December, 2025. Employer: City of Gilroy Brad Kilger, Interim City Administrator Post-Retirement Employment [21221(h)] Effective Date December 23, 2025 Retired Annuitant Karl Bjarke Approved as to Form: Andrew L. Faber, City Attorney Attest: Page 270 of 282 Page 5 of 5 Kim Mancera, City Clerk Page 271 of 282 City of Gilroy STAFF REPORT Agenda Item Title: Consent the Appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as the Interim Administrative Services & Human Resources Director/Risk Manager Effective December 31, 2025 and Adoption of a Resolution Approving the Appointment and Employment Agreement and Waiving the 180-Day Wait Period for Post- Retirement Employment Meeting Date: December 8, 2025 From: Brad Kilger, Interim City Administrator Department: Administration Submitted by: Brad Kilger, City Administrator Prepared by: Brad Kilger, City Administrator STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION a) Consent the City Administrator's recommendation to appoint LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 and waiving the 180-day wait period for post-retirement employment pursuant to Government Code Section 21221(h) and Section 7522.56 authorizing the City Administrator to execute the employment agreement. EXECUTIVE SUMMARY To ensure continuity in the leadership and management of the Administrative Services & Human Resources/Risk Management Department, it is recommended that the City Council consent to the appointment of LeeAnn McPhillips (CalPERS retired annuitant Page 272 of 282 effective December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 and approve the resolution consenting to the appointment, waiving the 180-day wait period, and authorizing the City Administrator to execute the employment agreement. This date will ensure continuity for the City and the Department and will ensure that vital work continues until the recruitment process can be completed and a smooth transition can occur. BACKGROUND After over twenty-six years with the City of Gilroy, LeeAnn McPhillips has elected to retire effective December 31, 2025. With this retirement, the City of Gilroy will have a vacancy in the position of Administrative Services & Human Resources Director/Risk Manager. The City plans to commence a recruitment for a new Director prior to December 31, 2025. Ms. McPhillips has agreed to continue in an interim capacity while the recruitment process is being conducted and to ensure a smooth handoff to the next Director. Given that she has been serving in this capacity for many years and has significant institutional knowledge, it will be a great help to the City to have her continue in a part-time basis until the position is filled. Due to some family obligations, Ms. McPhillips will work an average of 30 hours per week – some weeks may be more or less depending on the needs of the City and her family obligations. 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 a recruitment is underway for the position. Prior to December 31, 2025, the City will initiate a recruitment for a new Director and complete the selection process in the next four to six months. Further, the retired annuitant may not work more than 960 hours in a fiscal year (July 1 – June 30) and cannot receive any compensation other than the hourly rate of pay for the work performed by other employees performing comparable duties. In addition, Government Code Section 7522.56 eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and allows the agency to adopt a resolution to waive the 180-day wait period for post-retirement employment when the retiree is older than the normal retirement age contained in any formula which computes the retiree’s retirement allowance. Ms. McPhillips meets this requirement. In the Interim Administrative Services & Human Resources Director/Risk Manager role, and as an officer of the City, LeeAnn McPhillips agrees to perform the following duties related to the Gilroy Administrative Services & Human Resources/Risk Management Department: • Lead, manage, and supervise the functions of Human Resources, Risk Management, Facilities, & Fleet. • Serve as a member of the Senior Executive/Department Head team. Page 273 of 282 • resources programs, including recruitment and selection, classification and pay, labor relations, equal employment, risk management, and training. • Represent the City in contract negotiations with representatives of bargaining units, and work with employee representatives to foster positive employee relations. • Administer the City's risk management/risk avoidance program, including general liability and workers' compensation claims; represent the City at meetings with third party administrator. • Manage the City's benefits, health, and safety programs. • Identify, plan, and coordinate staff development training for City employees. • Supervise and conduct classification and compensation studies. • Assign, review, coordinate and evaluate the work of Human Resources staff members; provide necessary training and guidance; take appropriate disciplinary actions. • Draft, recommend, and implement administrative policies and procedures related to Human Resources, labor relations, and Risk Management. • Administer, interpret, and apply provisions of personnel policies and regulations, memoranda of understanding, and related policy documents. • Advise and assist managers on personnel and labor relations matters, including employment, disciplinary actions, grievances, and performance problems and evaluations. • Serve as staff to City Personnel Commission; prepare agendas and recommendations. • Supervise the preparation and maintenance of records and reports, including personnel files, required statistical reporting, and related documents. • Investigate allegations of sexual harassment, employment discrimination, and other policy violations; monitor the City's equal employment program. • Serve on internal and external committees and represent the City in related professional areas. • Develop and assist in the development and implementation of goals, objectives, policies, priorities, and work standards. • Prepare and present reports, recommendations, and analyses related to assigned areas of work. • Develop specifications, evaluate proposals, and recommend selection of consultants/contractors; monitors and administer consultant/contractor agreements/contracts. • Prepare, or oversee the preparation, and administer budget for Human Resources, Risk Management, Facilities, and Fleet. • Assist City Administrator in the evaluation of the Administrative Services functions for possible reorganization of the Facilities and Fleet functions. • Perform related work as assigned. As Interim Administrative Services & Human Resources Director/Risk Manager, LeeAnn McPhillips will report directly to the City Administrator and shall comply with all City Page 274 of 282 rules, policies, guidelines, regulations, and laws. Ms. McPhillips will be paid $135.16 per hour (her current base salary rate) with no other benefits or incentives. ANALYSIS n/a ALTERNATIVES The recommended alternative is to consent the appointment of LeeAnn McPhillips as the Interim Administrative Services & Human Resources Director/Risk Manager (retired annuitant) and adopt the resolution approving her appointment and waiving the 180-day wait period for post-retirement employment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Administrative Services & Human Resources Director/Risk Manager. This alternative is 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 $6,800 per month (general fund). Over a four-six month period, the savings will total approximately $27,200 - $40,800. PUBLIC OUTREACH n/a NEXT STEPS Upon Council approval, the Interim City Administrator and LeeAnn McPhillips will sign the employment agreement. Ms. McPhillips will begin work in the Interim capacity on December 31, 2025. Further, a recruitment process for a new Director will be initiated prior to December 31, 2025 as required by CalPERS. Attachments: 1. McPhillips LeeAnn Council Resolution for Interim AS & HR Director RIsk Mgr Appointment 21221h and 180 Day Waiver 12.8.25 2. McPhillips LeeAnn Employment Agreement Dec 2025 Exhibit A Page 275 of 282 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING LEEANN MCPHILLIPS AS INTERIM ADMINISTRATIVE SERVICES & HUMAN RESOURCES DIRECTOR/RISK MANAGER, APPROVING EMPLOYMENT AGREEMENT, AND WAIVING THE 180- DAY WAIT PERIOD WHEREAS, in compliance with Government Code section 7522.56 the City of Gilroy must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since his or her retirement date; and WHEREAS, LeeAnn McPhillips, will retire from the City of Gilroy in the position of Administrative Services & Human Resources Director/Risk Manager, effective December 31, 2025; and WHEREAS, section 7522.56 requires that post -retirement employment commence no earlier than 180 days after the retirement date, which is June 30, 2026 (date of 181st day after retirement) without this certification resolution; and WHEREAS, section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the Gilroy City Council, the City of Gilroy, and LeeAnn McPhillips certify that LeeAnn McPhillips has not and will not receive a Golden Handshake or any other retirement- related incentive; and WHEREAS, section 7522.56 provides that if the retiree is older than the normal retirement age based on all the retiree’s retirement formulas, the employer may establish an agreement with the retiree for post-retirement employment in advance of the retiree’s retirement date; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint LeeAnn McPhillips as an interim appointment retired annuitant to the vacant position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy under Government Code section 21221(h), effective December 31, 2025; 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, a step that will be completed prior to December 31, 2025; 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 permanent replacement for the vacant position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or LeeAnn McPhillips; and WHEREAS, the entire employment agreement between LeeAnn McPhillips and the City of Gilroy has been reviewed by this body and is attached hereto as Exhibit A; and WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and Page 276 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING LEEANN MCPHILLIPS AS INTERIM ADMINISTRATIVE SERVICES & HUMAN RESOURCES DIRECTOR/RISK MANAGER AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 2 of 3 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 WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and WHEREAS, the hourly rate to be paid to LeeAnn McPhillips will be $135.16; and WHEREAS, LeeAnn McPhillips 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 LeeAnn McPhillips as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Administrative Services & Human Resources/Risk Management Department. 3. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 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 Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or LeeAnn McPhillips. 4. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 pursuant to the authority provided under Government Code Section 7522.56 which eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and adopting a resolution to waive the 180-day wait period for post-retirement employment as LeeAnn McPhillips is older than the highest normal retirement age contained in any formula which computes her retirement allowance. Page 277 of 282 Resolution No. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING LEEANN MCPHILLIPS AS INTERIM ADMINISTRATIVE SERVICES & HUMAN RESOURCES DIRECTOR/RISK MANAGER AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025 Page 3 of 3 5. The employment agreement with LeeAnn McPhillips, 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 on December 8, 2025, and is effective December 31, 2025. 6. The Interim City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the Interim City Administrator and City Attorney. PASSED AND ADOPTED this 8th day of December, 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 278 of 282 Page 1 of 4 EXHIBIT A RETIRED ANNUITANT EMPLOYMENT AGREEMENT The Retired Annuitant Employment Agreement (“Agreement”) is made by and between LeeAnn McPhillips, an individual (“Retired Annuitant”) effective December 31, 2025 (“Effective Date”). RECITALS A. Retired Annuitant previously was employed by the City of Gilroy and City of Morgan Hill, CalPERS employers since 1990, having served as Gilroy’s Administrative Services & Human Resources Director/Risk Manager from 2020-2025 and Gilroy’s Human Resources Director/Risk Manager from 1999 - 2020; and B. Retired Annuitant will retire from public service effective December 31, 2025 and will begin collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City will have a vacancy in the position of Administrative Services & Human Resources Director/Risk Manager, a regular position for which the City will commence steps to initiate the recruitment for a permanent appointment prior to December 31, 2025; and D. The City has an immediate need for an employee to temporarily perform the position of Administrative Services & Human Resources Director/Risk Manager, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City of Gilroy and the City’s Administrative Services & Human Resources/Risk Management Department; and E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Administrative Services & Human Resources/Risk Management 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. Retired Annuitant’s employment is authorized by Government Code section 7522.56 which eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and allows the agency to adopt a resolution to waive the 180-day wait period for post-retirement employment when the retiree is older than the normal retirement age contained in any formula which computes the retiree’s retirement allowance. Retired Annuitant meets this requirement. Page 279 of 282 Page 2 of 4 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: AGREEMENT Section 1. Term of Services The term of this Agreement is from December 31, 2025 until such time as a permanent replacement for the position of Administrative Services & Human Resources Director/Risk Manager 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 Administrative Services & Human Resources/Risk Management Department: • Lead, manage, and supervise the functions of Human Resources, Risk Management, Facilities, & Fleet. • Serve as a member of the Senior Executive/Department Head team. • Plan, organize, supervise, and participate in the activities of the City's human resources programs, including recruitment and selection, classification and pay, labor relations, equal employment, risk management, and training. • Represent the City in contract negotiations with representatives of bargaining units, and work with employee representatives to foster positive employee relations. • Administer the City's risk management/risk avoidance program, including general liability and workers' compensation claims; represent the City at meetings with third party administrator. • Manage the City's benefits, health, and safety programs. • Identify, plan, and coordinate staff development training for City employees. • Supervise and conduct classification and compensation studies. • Assign, review, coordinate and evaluate the work of Human Resources staff members; provide necessary training and guidance; take appropriate disciplinary actions. • Draft, recommend, and implement administrative policies and procedures related to Human Resources, labor relations, and Risk Management. • Administer, interpret, and apply provisions of personnel policies and regulations, memoranda of understanding, and related policy documents. • Advise and assist managers on personnel and labor relations matters, including employment, disciplinary actions, grievances, and performance problems and evaluations. • Serve as staff to City Personnel Commission; prepare agendas and recommendations. • Supervise the preparation and maintenance of records and reports, including personnel files, required statistical reporting, and related documents. • Investigate allegations of sexual harassment, employment discrimination, and other policy violations; monitor the City's equal employment program. • Serve on internal and external committees and represent the City in related professional areas. • Develop and assist in the development and implementation of goals, objectives, policies, priorities, and work standards. • Prepare and present reports, recommendations, and analyses related to assigned areas of work. Page 280 of 282 Page 3 of 4 • Develop specifications, evaluate proposals, and recommend selection of consultants/contractors; monitors and administer consultant/contractor agreements/contracts. • Prepare, or oversee the preparation, and administer budget for Human Resources, Risk Management, Facilities, and Fleet. • Assist City Administrator in the evaluation of the Administrative Services functions for possible reorganization of the Facilities and Fleet functions. • Perform related work as assigned. 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 $135.16 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 employees’ compensation. Retired Annuitant agrees and acknowledges that she shall not perform any services under this Agreement or as an extra help retired annuitant 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 her 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 location for services will be at the following addresses: 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. Page 281 of 282 Page 4 of 4 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. 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 December, 2025. Employer: City of Gilroy Brad Kilger, Interim City Administrator Post-Retirement Employment [21221(h)] Effective Date December 31, 2025 Retired Annuitant LeeAnn McPhillips Approved as to Form: Andrew L. Faber, City Attorney Attest: Kim Mancera, City Clerk Page 282 of 282