HomeMy WebLinkAbout02/09/2026 City Council Regular Agenda PacketFebruary 9, 2026 | 6:00 PM Page 1 of 7 City Council
Regular Meeting
CITY COUNCIL
REGULAR MEETING
AGENDA
COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, FEBRUARY 9, 2026 | 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
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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. Roll Call
1.3. City Clerk's Report on Posting the Agenda
1.4. Pledge of Allegiance
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1.5. Invocation
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.
3. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – 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 – Gilroy Sister Cities, 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 – ABAG, CalTrain Policy Group (alternate), Santa Clara County
Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA
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Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate),
Cities Association of Santa Clara County, Gilroy Youth Task Force (alternate), Santa Clara
Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation
Board, 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), Cities Association of Santa Clara County (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 January 26, 2026 City Council Regular Meeting
4.2. Authorization for Council Member Travel to the League of California Cities 2026
City Leaders Summit
4.3. Award a Three-year On-call Services Contract to Maggiora Bros Drilling, Inc. for
Water Well and Pump Station Services for $420,000, with an Option to Extend for
Two Additional One-year Terms Subject to City Administrator Review and
Approval for $150,000/Year
4.4. Approve an Amendment to the Land Management Software Agreement with
Tyler Technologies for the Environmental Health Suite and Fire Prevention
Mobile Software and Three Years of Annual Maintenance and License Fees in the
Amount of $130,054
4.5. Adopt a Resolution of the City Council of the City of Gilroy Declaring Weeds a
Nuisance
4.6. Acceptance of the Cash and Investment Report as of December 31, 2025
5. PUBLIC HEARINGS
5.1. Consider Extending the Urgency Interim Ordinance Prohibiting the Issuance of
Tobacco Retailer Permits Citywide for a Period of Ten (10) Months and Fifteen
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(15) Days
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
15061(b)(3) of the CEQA Guidelines;
2. Direct the City Clerk to read the ordinance extending the Urgency
Interim Ordinance by title only and to waive further reading;
3. Review, approve and issue the 10-day report as required by
Government Code Section 65858(d) for the extension of the Urgency
Interim Ordinance; and
4. Adopt an ordinance extending the Urgency Interim Ordinance to
prohibit the issuance or approval of any new Tobacco Retailer Permit
Citywide for an additional ten (10) months and fifteen (15) days, with
the associated findings.
6. UNFINISHED BUSINESS
6.1. Receive an Update and Provide Direction Regarding Transient Occupancy Tax
(TOT) Rate Increase Ballot Measure for the November 2026 Election
1. Staff Report:
Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1. Receive the update;
2. Direct staff to pursue a general-purpose TOT rate ballot measure;
3. Determine whether to conduct a community survey to gauge support;
4. Provide feedback on drafting the “Ballot Question”; and
5. Direct staff to pursue a not-to-exceed tax rate structure and determine
the not-to-exceed tax rate.
6.2. Selection and Appointment of Planning Commissioner to Fill One (1) Remaining
Open Seat
1. Staff Report:
Kim Mancera, City Clerk
2. Public Comment
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3. Possible Action:
Select one of the two remaining candidates for appointment to the Planning
Commission to fill the existing vacancy.
7. INTRODUCTION OF NEW BUSINESS
7.1. Abatement of Sixth Street Temporary Encampment on APN: 841-18-089
1. Staff Report:
Scot Smithee, Interim Police Chief
2. Public Comment
3. Possible Action:
Provide direction to staff regarding how the City should proceed with the
Sixth Street temporary encampment, located on City-owned property (APN:
841-18-089) on the south side of Sixth Street, west of Camino Arroyo Drive,
including one of the following options:
1. Direct staff to proceed with immediate abatement of the encampment,
affirming uniform enforcement of Ordinance No. 2023-07, establishing
Chapter 5 of the Gilroy City Code, banning the use of certain areas of public
right-of-way as sleeping or living accommodations; OR
2. Adopt a resolution suspending enforcement of Gilroy City Code Chapter
5 for a period of time not to exceed ninety (90) days, authorizing the City to
continue to provide sanitation-related services (portable restrooms and solid
waste removal) to the temporary encampment during the suspension and
abating the said encampment after the suspension period.
7.2. Pilot Below Market Rate (BMR) Preservation Program Update and Overall BMR
Housing Program Overview
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Receive a report on the Pilot Below Market Rate (BMR) Preservation
Program and an overview of the BMR Housing Program.
8. FUTURE COUNCIL INITIATED AGENDA ITEMS
8.1. Request to Reopen the Wayland Parking Lot at Las Animas Veterans' Park
1. Staff Report:
Bryce Atkins, Deputy Director of Community Development
2. Public Comment
3. Possible Action:
Council consideration of a future agenda item regarding the potential
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reopening of the Wayland Parking Lot at the Las Animas Veterans' Park.
9. CITY ADMINISTRATOR'S REPORTS
10. CITY ATTORNEY'S REPORTS
11. ADJOURNMENT
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Minutes
City of Gilroy
City Council
Minutes
Monday, January 26, 2026 | 6:00 PM
1. OPENING
1. Call to Order
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 Zach Hilton
Council Member Kelly Ramirez
Mayor Greg Bozzo
Absent Council Member Carol Marques
3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.
4. Pledge of Allegiance
Mayor Bozzo led the Pledge of Allegiance.
5. Invocation
Pastor Trevor Van Laar led the Invocation.
6. Orders of the Day
Mayor Bozzo announced that Item 8.2 will be continued to the February 9, 2026 City
Council Regular Meeting.
7. Employee Introductions
None.
2. PRESENTATIONS TO THE COUNCIL
1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
Mayor Bozzo opened public comment at 6:06 P.M.
Cindy Nunez - commented on the pedestrian/traffic accident near Las Animas
school and asked for enhanced pedestrian safety at all Gilroy schools.
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Brenda Hogue - commented on the pedestrian/traffic accident near Las Animas
school and asked for enhanced pedestrian safety at all Gilroy schools.
Graham Melville - commented on the homeless situation in Gilroy and asked for the
City's support.
Britt Smith - commented on the Gilroy Amazon data center.
Landon Sepulveda - commented on his concerns about the Amazon data center.
Laura Phillips - commented on concerns about the Amazon Data Center.
Jan Berstein Chargin - commented on the "Camp Hope" encampment and how it is
working.
Sally Armendariz - commented on the "Camp Hope" encampment and asked the
Council to extend the cleanup. She is also in favor of the beacon lights at all schools
in Gilroy.
Robert Aguirre - commented on the "Camp Hope" encampment and asked the
Council to listen and understand those who live there.
Miguel Flaquer - commented on the crosswalk striping near Glen View Elementary
and the Veterans Day parade, and thanked the Council and City.
Joe Robinson - commented on the encampment sweeps and the safety of the
community.
Rachael Wong - commented on Troop 711 working on their Eagle Scout badge and
invited the community to their open house.
Shawna Scott - commented on the "Camp Hope" encampment and asked for the
Council's support.
Ron Kirkish - commented on the appointment of Matt Morley and thanked the
Council for bringing him on board. He also commented on "Camp Hope" and agrees
that they should be given a chance.
Aubrey Tasbey - commented on the "Camp Hope" encampment and asked that the
Council consider letting them stay for an additional 3 months.
Vanessa Ashford - commented on the success of the people who live at the "Camp
Hope" encampment and asked for a 3-month extension.
Thomas Molina - commented on the "Camp Hope" encampment and asked the
Council for their support.
Max Deleon - commented on the "Camp Hope" encampment and asked the Council
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Minutes
for their support of the unhoused.
Sam Brown - commented on the "Camp Hope" encampment and asked the Council
for the residents to be able to stay another 3 months.
Rob Torres - commented on the "Camp Hope" encampment and issues regarding a
relocation.
Linda Thomas - commented on the homeless residents in Gilroy and asked the
community and Council to listen to their hearts.
Tom Chargin - commented on the "Camp Hope" encampment and asked for leeway
and an extension.
Tristia Bauman - commented on the "Camp Hope" encampment and the benefit of
having a solution in hand and not throwing it away.
With no futher speakers, Mayor Bozzo closed public comment.
3. REPORTS OF COUNCIL MEMBERS
1. Council Member Bracco – 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 – Gilroy Sister Cities, 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 – ABAG, CalTrain Policy Group (alternate), 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), Cities Association of Santa Clara County, Gilroy Youth
Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board,
Santa Clara Valley Habitat Agency Implementation Board, 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
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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), Cities Association
of Santa Clara County (alternate)
Council Member Bracco - No report.
Council Member Fugazzi - reported from Visit Gilroy, they are preparing for the
Super Bowl and Fifa World Cup by adding two new sports pages to their website.
Wineries of the Santa Clara Valley are sponsoring a new event. Visit Gilroy is
working with the City of Gilroy re: potential TOT increase.
Council Member Hilton - reported from the Valley Transportation Agency (VTA)
Policy Advisory Committee, they are ready for the Super Bowl and are expecting
higher transportation use than the Taylor Swift concert. Silicon Valley Clean Energy
(SVCE) will join a large group of energy providers committing to purchase energy
from the Willow Rock Compressed Air Energy Storage Project. Electric vehicle
programs are evolving as well. He spoke about the heartbreaking Glen Loma
incident and advised that his office is there to provide any support needed and that
his thoughts are with the families involved.
Council Member Ramirez - reported that she shares in the grief of the Glen Loma
tragic accident. She attended the League of Cal Cities Mayor and Council Member
Academy. She was previously selected to serve on the policy committee for
Housing, Community and Economic Development, and spent the day reviewing
policies and creating a work plan for this year. She thanked everyone for the
opportunity to be able to attend.
Council Member Cline - No report. He mentioned that he had an emergency
situation arise and wanted to say thank you to Captain MacPhail and his team, who
showed up and helped. He also thanked his fellow Council Members who have
supported him and all the people who have prayed.
Mayor Bozzo - reported that he attended a ribbon-cutting at Sharetea. He mentioned
that the ownership group there was impressed with all of the staff that they dealt with
throughout the process, and he thanked all staff involved. He reported on his trip to
Sacramento and his meeting with Assembly Member Robert Rivas. He was able to
share some of the accomplishments they made last year. He also shared the
potential of the Civic Center and Santa Theresa extending to 101/125 interchange.
He connected with Senator Laird and Cortese. He reported from Gilroy Gardens that
the Halloween and North Pole nights were very successful this year. He reported
South County Youth Task Force (SCYTF) does a lot of teen diversion, and they do a
late-night gym at Wheeler Center every Thursday night. He was invited to play
basketball with the kids and will report back on that.
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4. BOARD AND COMMISSION INTERVIEWS
1. Continued Interviews and Appointment of Boards, Commissions, and
Committee Members
City Clerk Kim Mancera provided a report.
The following applicants participated in commission interviews.
Library Commission
Janet Lee
Joseph Coughlan
Open Government Commission
Sharpy Sandhu
Parks and Recreation Commission
Greg Felios
Andrew Brinton
Jesse Jimenez
Emily Miller
Personnel Commission
Sharpy Sandhu
Planning Commission
Britt Smith
Payman Khodabandeh
Makhan Gupta
The following appointments were made by the City Council.
Arts and Culture Commission
Makhan Gupta - Full term
Camille McCormack - Full term
Library Commission
Christina Tovar - Partial term
Joseph Coughlan - Partial term
Open Government Commission
Blanca McMurray - Full term
Parks and Recreation Commission
Greg Felios - Partial term
Andrew Brinton - Full term
Jesse Jimenez - Full term
Emily Miller - Full term
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Personnel Commission
Sharpy Sandhu - Full term
Danny Mitchell - Full term
Planning Commission
Martha Martinez - Full term
Final appointments to the Planning Commission will be made on February 9, 2026.
5. CONSENT CALENDAR
Mayor Bozzo opened public comment at 7:33 P.M.
Ron Kirkish - commented on his concern about item 5.3 and the grant received by Silicon
Valley Clean Energy.
With no further speakers, Mayor Bozzo closed public comment.
Motion
Approve
RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Dion Bracco
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council Member
Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
Mayor Bozzo congratulated Raissa de la Rosa, the new Economic Development Director
for the City of Gilroy.
1. Approve the minutes of the December 30, 2025 City Council Special Meeting,
January 5, 2026 Regular Meeting, and the January 10, 2026 Coffee with the
Mayor
2. Award of Contract to Ross Recreation for Playground Retrofits at Rainbow
Park with a 5% contingency of $10,026, not to exceed $210,538
3. Authorize the City Administrator to Execute a Grant Agreement with Silicon
Valley Clean Energy in the Amount of $235,178, and Adopt a Resolution to
Amend the FY2024-2028 Capital Improvement Program to add the EV Fleet
Expansion and Depot Charging Project, and Amend FY2026-27 Budget to
Appropriate the $240,178 for the Project.
4. Consideration of a Resolution Supporting the Establishment of a Farmland
Security Zone (FSZ) for a 570-Acre Agricultural Parcel within the City of
Gilroy’s Sphere of Influence
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5. Consent the City Administrator's Recommendation to Appoint Raissa de la
Rosa to the Department Head Position of Economic Development Director
6. Council Ratification of Mayor Bozzo's Travel Reimbursement For The State of
the State and Meeting with Speaker of the Assembly Robert Rivas
6. BIDS AND PROPOSALS
1. Award the Purchase of a Rosenbauer Type I Fire Engine in the Amount of
$1,058,224.31 Utilizing the Sourcewell Tag-On Contract No. 113021-RSD
Interim Administrative Services & Human Resources Director/Risk Manager LeeAnn
McPhillips provided a report.
Mayor Bozzo opened public comment at 7:45 P.M.
Ron Kirkish - commented on the need for a new fire truck and that he agrees.
With no further speakers, Mayor Bozzo closed public comment.
Motion
Adopt a budget amendment resolution in the amount of $1,058,224.31 to purchase
a Type I Fire Engine.
RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Dion Bracco
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
Motion
Award the purchase of a Rosenbauer Type I Fire Engine in the amount of
$1,058,224.31 utilizing Sourcewell Contract No. 113021-RSD and authorize the
Interim City Administrator to execute the purchase contract documents,.
RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
7. UNFINISHED BUSINESS
1. Mobile Vending Ordinance and Pilot Program Update
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Economic Development Manager Victoria Valencia provided a report and
presentation.
Mayor Bozzo opened public comment at 8:02 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Adopt a resolution extending the Mobile Vending Pilot Program through October 31,
2026, to provide additional time for program evaluation, stakeholder feedback, and
the drafting of an updated ordinance, in addition the resolution shall incorporate
amendments establishing a revocation and suspension process, authorizing the City
to revoke or suspend the ability to operate within the City for any vendor who
repeatedly violates City ordinances or the requirements of the Mobile Vending Pilot
Program.
RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Terence Fugazzi
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
The meeting recessed at 8:04 P.M. and reconvened at 8:16 P.M.
2. Review and Adoption of Capital Infrastructure Reserve Fund and Funding
Policy
Interim City Administrator Harjot Sangha provided a report and presentation.
Mayor Bozzo opened public comment at 8:29 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Review draft policy and adopt a resolution establishing a new Capital Infrastructure
Reserve Fund and funding policy.
RESULT: Passed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
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8. INTRODUCTION OF NEW BUSINESS
1. Review Draft Request for Proposal (RFP), and Adopt a Resolution
Appropriating $310,000 for Preparation of the Parks and Recreational Trails
Master Plan
Public Works Director John Doughty provided a report and presentation.
Mayor Bozzo opened public comment at 8:43 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Adopt a resolution appropriating $310,000 from the newly established Capital
Infrastructure Reserve Fund to Project 900780 to the FY26 Capital Budget,
RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Zach Hilton
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Zach Hilton, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Carol Marques
2. Pilot Below Market Rate (BMR) Preservation Program Update and Overall BMR
Housing Program Overview
This item has been continued to the February 9, 2026 City Council Regular
Meeting.
9. CITY ADMINISTRATOR'S REPORTS
No report.
10. CITY ATTORNEY'S REPORTS
No report.
11. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 8:44 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 16 of 193
4.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Authorization for Council Member Travel to the League of
California Cities 2026 City Leaders Summit
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Administration
Submitted by: Kim Mancera, City Clerk
Prepared by: Kim Mancera, City Clerk
STRATEGIC PLAN GOALS:
RECOMMENDATION
Council approve the travel of Council Member Ramirez to attend the 2026 City Leaders
Summit.
EXECUTIVE SUMMARY
BACKGROUND
The City Leaders Summit offers opportunities for city leaders from across the state to
lobby lawmakers directly on Cal Cities’ member-chosen advocacy priorities, gain top-
notch leadership skills, and connect with peers during in-depth educational sessions.
ANALYSIS
The 2026 City Leaders Summit sessions run from April 22-24 in Sacramento. Staff
solicited City Council members' interest in attending the 2026 City Leaders Summit and
received interest back from one Council member, Councilmember Ramirez. Staff has
secured registration for Council Member Ramirez. Pursuant to the Travel Policy
adopted by the City Council, the travel of any member of the City Council must be
Page 17 of 193
4.2.
approved by the Council.
Estimated costs for attendance at the academy include the following:
• Event registration- $650
• Hotel reservation – $875
• Travel
o Sacramento – Mileage Reimbursement – $213.15 (294 miles at the IRS
mileage rate of $0.725 per mile)
o Per Diem – $181 (per the U.S. General Services Administration rate for
Sacramento)
The total estimated cost will be $1,919.
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 Council Member to attend the Academy is $1,919. The
Fiscal Year 2026 adopted budget has sufficient General Fund appropriations for
professional development within the Administration Department 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 18 of 193
6.3.
City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Three-year On-call Services Contract to Maggiora
Bros Drilling, Inc. for Water Well and Pump Station Services
for $420,000, with an Option to Extend for Two Additional
One-year Terms Subject to City Administrator Review and
Approval for $150,000/Year
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Utilities
Submitted by: Karl Bjarke
Prepared by: Izabela Cirloganu, Management Analyst
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
Develop a Financially Resilient Organization
RECOMMENDATION
1. Award a three-year on-call services contract for an amount not to exceed
$420,000 with the option to extend two additional one-year terms to Maggiora
Bros Drilling, Inc. for water well and pump station services; and
2. Authorize the City Administrator to execute the contract and all associated
documents.
3. Authorize the City Administrator to execute two subsequent one-year contract
amendments, each with a value not to exceed $150,000 per year.
EXECUTIVE SUMMARY
The Utilities Department recommends entering a three-year on-call services contract
with Maggiora Bros. Drilling, Inc. to provide critical water and pump station maintenance
and repair services. The total contract amount is $420,000 with two optional one-year
extensions.
Page 19 of 193
6.3.
The contract will be procured through a cooperative purchase agreement using a
competitively awarded Request for Proposals (RFP) issued by the City of Morgan Hill in
November 2025. Maggiora Bros Drilling, Inc. was selected as the top-ranked company
through the RFP process.
Utilizing a cooperative purchase agreement allows the City to secure a qualified,
experienced contractor in a timely and cost-effective manner while complying with the
City of Gilroy’s Purchasing Policy.
BACKGROUND
Pursuant to Section 4.10.5, Cooperative Purchases, more specifically Piggyback
Contracting, of the City of Gilroy’s Purchasing Policy, the City may procure goods and
services through contracts competitively solicited and awarded by another public
agency if the following requirements are met:
1. The parties to the original contract agree to piggyback.
2. The contract is for identical or nearly identical goods and/or services.
3. The original contract resulted from competitive bidding or proposal procedures
similar to those required by the City.
4. The original contract was awarded within two years of the City’s purchase, or a
written justification is provided to support the use of an older solicitation.
5. The purchase price is comparable to the estimate provided by the requesting
department.
Staff is recommending piggybacking on the City of Morgan Hill’s Request for Proposals
(RFP) for on-call water and well pump station services, which was awarded following a
competitive procurement process in November 2025.
Maggiora Bros. Drilling, Inc. was selected following an evaluation by a review panel that
assessed the submitted proposals based on experience, qualifications, capability,
proposal quality, and fee schedule. Maggiora Bros. Drilling Inc. received the highest
overall score.
Additionally, Gilroy’s staff reviewed the remaining policy requirements and concluded
that the scope of services, contract terms, and pricing meet the City’s operational needs
and fully comply with the City’s purchasing requirements.
The City has utilized Maggiora Bros Drilling for similar on-call services and well-repair
projects in the past. The Utilities Operations staff have been very pleased with Maggiora
Bros. Drilling's responsiveness and services, providing an additional basis for the
recommendation.
Page 20 of 193
6.3.
ANALYSIS
The City of Gilroy operates nine municipal wells and six booster pump stations. Each
station is equipped with three pumps, for a total of 18 pumps system-wide. A tenth well
(McCarthy Well) is in the design phase, with construction anticipated to begin in the
second part of Fiscal Year 2026.
These wells and pumps are critical components of Gilroy’s municipal water supply,
ensuring adequate water delivery to residents and businesses. However, due to the
continuous, demanding nature of their operations, these systems experience frequent
mechanical failures and breakdowns. A dependable service contract ensures that
emergency situations are handled quickly, minimizing downtime and safeguarding the
integrity of the municipal water system.
The City has utilized Maggiora Bros. Drilling Inc. for similar on-call services, well repairs,
and the Utilities Department was preparing to conduct a Request for Proposal (RFP)
process to solicit the next round of on-call services and learned the neighboring City,
City of Morgan Hill, recently completed a similar RFP process which can be utilized as
cooperative purchasing under the City of Gilroy’s purchasing policy. This allows Gilroy
to leverage the Morgan Hill RFP and the award of similar services, saving staff time and
resources while benefiting from the same competitively negotiated pricing available to
Morgan Hill. Morgan Hill's RFP awarded the contract to Maggiora Bros. Drilling, Inc.,
which was selected through a rigorous, transparent competitive process aligned with
Gilroy’s purchasing requirements. Furthermore, the City’s direct working experience
demonstrates the company’s ability to reliably meet Gilroy’s specific needs. Together,
these factors support the City’s decision to piggyback on the Morgan Hill contract. The
company has consistently demonstrated technical expertise, responsiveness, and
reliability in addressing both routine maintenance and emergency repairs. Their overall
performance and institutional knowledge of Gilroy’s water system provide confidence
that Maggiora Bros. Drilling, Inc. will continue to meet the City’s operational needs while
maintaining the reliability of the municipal water system.
Collectively, the City of Gilroy’s positive, established working relationship with Maggiora
Bros. Drilling, Inc., combined with the recently competitively awarded Request for
Proposals issued by the City of Morgan Hill, provides strong justification for this
procurement approach.
ALTERNATIVES
The alternative would be not to award the contract. Staff does not recommend this
option because the City’s water and wastewater systems require the on-call services of
a well-drilling firm like Maggiora Bros. Drilling to handle the heavy maintenance that will
inevitably be required time to time. If this contract is not approved, Gilroy would need to
conduct its own RFP process to select a firm and award the similar on-call services
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6.3.
contract. Given that Morgan Hill recently completed a similar RFP process, negotiated
and awarded the contract, and the same terms and pricing are being extended to Gilroy,
staff believe that Gilroy conducting its own RFP will not result in better competitive
pricing.
FISCAL IMPACT/FUNDING SOURCE
The Utilities Department’s approved budgets for FY 2026 and 2027 each include
$150,000 for on-call contractual services within the Water Fund (705).
For FY26, based on the scope of work identified by the Utilities Engineering and Water
Sections, staff anticipate a total funding requirement of $120,000 to complete the
required services for the remainder of the FY. This funding requirement will be
supported through two separately authorized sources:
• $30,000 will be expended for Water Contractual Services to address additional
as-needed repair activities; and
• $90,000 will be used for the installation of a nitrate analyzer at Well 8 to
continuously monitor nitrate concentrations and automatically shut down the well
if levels exceed a user-adjustable threshold.
For FY 27, which has an approved budget of $150,000, staff plan the following work:
• Well 1 — Execute the removal of the jammed well structure
• Any additional heavy maintenance work, based on annual well and pump
assessments.
There are sufficient budgetary appropriations included in the adopted FY26 and FY27
budgets; thus, no additional budget amendments are necessary at this time. Funding for
FY 2028 will be requested as part of the biennial budget process for FY 2028 and 2029.
NEXT STEPS
Upon Council’s approval, the contract will be executed, and staff will work with the
contractor to begin work.
Attachments:
1. Draft Contract Maggiora Gilroy_US_V1
2. Morgan Hill Maggiora Contract
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AGREEMENT FOR SERVICES
(For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR)
This AGREEMENT made this day of January, 2026, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Maggiora Bros. Drilling, Inc, having a principal place of business at 595
Airport Blvd., Watsonville, CA, 95076.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on February 9, 2026 and will continue in effect through
June 30, 2029 unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and not
an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties
acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S
employees, including, without limitation, disability or unemployment insurance, workers’
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONTRACTOR shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific
Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit
“C” (“Milestone Schedule”).
B. Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above-described
services. CITY shall have no right to, and shall not, control the manner or determine the method
of accomplishing CONTRACTOR’S services.
Draft for Review
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C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as
CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the
performance of those services. CONTRACTOR assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location
and at such times as CONTRACTOR shall determine is necessary to properly and timely perform
CONTRACTOR’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay
CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONTRACTOR exceed $420,000 (four hundred and
twenty thousand dollars) for the duration of the contract.
B. Invoices
CONTRACTOR shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment
will be made unless CONTRACTOR has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in Exhibit “A”,
Section IV) incurred during the preceding period. If CITY objects to all or any portion of any
invoice, CITY shall notify CONTRACTOR of the objection within thirty (30) days from receipt
of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It
shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts
to which it has objected until the objection has been resolved by mutual agreement of the parties.
D. Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against
CONTRACTOR and all other of CONTRACTOR’S costs of doing business. CITY shall not be
Page 24 of 193
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responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except
for those expenses constituting “direct expenses” referenced on Exhibit “A.”
ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services under
this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent
any tools, equipment or services from CITY.
B. Workers’ Compensation
CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or
death of any of CONTRACTOR’S employees.
C. Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through
counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and
hold harmless CITY, its officers, representatives, agents and employees against any and all suits,
damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including
without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or
omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all
claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due
to bodily injury, sickness or disease, or death to any person, and damage to property, including the
loss of use thereof. As a condition precedent to CITY’S obligations under this Agreement,
CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its officers and
employees as additional insureds on the Comprehensive Liability insurance policy referred to in
(a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of
policy lapse or cancellation, or of a material change in policy terms.
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E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by
CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole
and absolute discretion.
F. State and Federal Taxes
As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all
required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges
and agrees that:
• CITY will not withhold FICA (Social Security) from CONTRACTOR’S
payments;
• CITY will not make state or federal unemployment insurance contributions on
CONTRACTOR’S behalf;
• CITY will not withhold state or federal income tax from payment to
CONTRACTOR;
• CITY will not make disability insurance contributions on behalf of
CONTRACTOR;
• CITY will not obtain workers’ compensation insurance on behalf of
CONTRACTOR.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONTRACTOR’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONTRACTOR. Such assignment shall not release
CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination
pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY’ receipt of such notice of sale.
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If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated
upon death of CONTRACTOR.
B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of
its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written
notification to CONTRACTOR. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONTRACTOR’S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
2. CONTRACTOR’S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C” which have been fully, competently and timely rendered by
CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONTRACTOR’S default in the performance of this Agreement or material breach by
CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY
may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and
all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of
work as described in this Agreement, to the extent such costs and expenses exceed the amounts
CITY would have been obligated to pay CONTRACTOR for the performance of that task pursuant
to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments
Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONTRACTOR, at the CONTRACTOR’S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONTRACTOR to CITY.
D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONTRACTOR shall
cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in
connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to facilitate
any the assumption of CONTRACTOR’s duties by any new CONTRACTOR hired by the CITY
to complete such services.
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ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all applicable
provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it
may be amended from time to time. CONTRACTOR shall also require such compliance of all
subcontractors performing work under this Agreement, subject to the prohibition against
assignment and subcontracting contained in Article 5 above. The CONTRACTOR shall defend
with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its
officers, employees, agents and representatives from and against all suits, claims, demands,
damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation
reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONTRACTOR,
its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys’ fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement
are for convenience only and shall not be considered nor referred to for resolving questions of
interpretation.
E. Compliance with Laws
The CONTRACTOR shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed in
the work, or the materials used in the work, or which in any way affect the conduct of the work,
and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over
the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the
Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a
contract or subcontract to the CITY OF GILROY for public works or for goods or services to
refrain from discriminatory employment or subcontracting practices on the basis of the race, color,
sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any
potential subcontractor.
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F. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONTRACTOR and that no person associated with CONTRACTOR has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of this
Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains
all the covenants and agreements between the parties with respect to the rendering of such services
in any manner whatsoever. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone
acting on behalf of any party, which are not embodied herein, and that no other agreement,
statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
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.
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L. Waiver
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance
under this Agreement shall not be construed as waiver(s) of any other condition of performance
under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR: CITY:
Maggiora Bros. Drilling, Inc. CITY OF GILROY
By: By:
Name: Michael F. Maggiora Name: Harjot Sangha
Title: Secretary Title: Interim City Administrator
Social Security or Taxpayer
Identification Number 94-1635647
Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONTRACTOR agrees to assign Michael F. Maggiora, who will act in the
capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the Services
in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written
“Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Jeff Castro
shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been
delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the
Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with
the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance,
and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request
this determination of completion when, in its opinion, it has completed all of the Services as
required by the terms of this Agreement and, if so requested, CITY shall make this determination
within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not
completed all of such Services as required by this Agreement, CITY shall so inform
CONTRACTOR within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay
only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary
to perform the Services, and its duties and obligations, expressed and implied, contained herein,
and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its
skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in
conformance to and consistent with the standards generally recognized as being employed by
professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and
all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any
and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONTRACTOR), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all charges
submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the
CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONTRACTOR and all other written and oral
information developed or received by or for CONTRACTOR and all other written and oral
information submitted to CONTRACTOR in connection with the performance of this Agreement
shall be held confidential by CONTRACTOR and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an
entity not connected with the performance of the such Services. Nothing furnished to
CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known
to the related industry (other than that which becomes generally known as the result of
CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this
Agreement in any magazine, trade paper, newspaper or other medium without the express written
consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of
CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain
and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether
or not associated with the City project for which the Services are performed. However,
CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from,
damages resulting from the use of said material for work other than PROJECT, including, but not
limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Karl Bjarke, Interim Utilities Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Michael F. Maggiora
Maggiora Bros. Drilling, Inc.
595 Airport Blvd
Watsonville, CA, 95076
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost
for individual items.
3. Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONTRACTOR, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement
without liability or, at its discretion, to deduct from the agreement price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or
contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
This agreement consists of providing on-call, routine, and emergency water system repair,
maintenance, and rehabilitation services for the City of Gilroy Utilities Department on an as-
needed, time-and-materials basis. The initial contract term shall be three (3) years, with the City
retaining the option to extend the agreement for two (2) additional one-year periods under the same
terms and conditions.
The scope of work is divided into two major tasks:
1. Well Services
2. Pump (Booster) Station Services
Contractor Responsibilities
On call contract will be contracted on a time and materials basis. The work will generally consist
of repairs, refurbishment, maintenance, shop work and field work. The contractor shall provide all
necessary supervision, labor, materials, tools and equipment to perform the work described.
The City of Gilroy Utilities Department Director or Utilities Water Superintendent will issue a
request for services, including a brief description of the required work. In response, the Contractor
must submit a written scope of work outlining the specific tasks to be performed, materials and
equipment to be procured, estimated costs, and the projected timeline for completion.
Each assignment will be formalized through an individual work request. The Contractor shall not
commence any work until the City and the Contractor have mutually agreed upon the project cost
and schedule, and the Project Manager has issued written authorization to proceed.
The Contractor shall designate a primary representative and an alternate to serve as points of
contact for coordination with the City’s Utilities Department Project Manager. The Contractor
must provide the City with a telephone number and email address for both representatives,
ensuring they are reachable 24 hours a day, seven days a week in the event of an emergency. The
designated representative and the alternate staff shall demonstrate professionalism and effective
communication skills, including proficiency in email and telephone correspondence. Both
individuals must respond to inquiries from the City, within 24 hours of initial contact.
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Any changes to the designated representative must receive prior approval from the City. The City
reserves the right to reject proposed personnel changes and may consider unauthorized changes to
key personnel a breach of contract.
For any work expected to exceed one day, the Contractor’s representative shall submit a detailed
schedule to the Utilities Department Director or Utilities Water Superintendent in advance. The
Contractor shall not commence work without prior authorization from the Utilities Department
Director or Water Superintendent. For non-emergency work, a minimum notice of forty-eight (48)
hours is required to allow the City sufficient time to adjust staffing and ensure availability. All
scheduled work must be completed promptly, unless an extension is approved by the Utilities
Department Director or Utilities Water Superintendent.
Contractor shall only provide brand new parts (i.e. motors, pumps, pipes, etc.) and chemicals.
Refurbished parts or parts that have been stored for long periods of time will not be accepted. Old
parts, materials, chemicals, shall be removed and disposed by contractor. Parts and chemicals shall
be ordered promptly, and every effort shall be given to minimize delay. Contractor shall submit
schedule to Utilities Department Director or Utilities Water Superintendent for any part (s) and or
chemical (s) with long lead times or back orders. Weekly updates shall be provided to Utilities
Director or Water Superintendent for any part (s) or chemical (s) which will take longer than one
week to obtain.
Any damage by the Contractor to the City Facilities, equipment, or vehicles shall be fixed in kind
expediently and without delay at no cost to the City.
The Contractor shall always secure the well’s site and its equipment throughout the duration of the
work. The Contractor is also responsible for discharging of treated water after rehabilitation of
well into an appropriate drainage system in a manner that complies with NPDES regulations and
permits. All water discharged shall be through an NPDES facility approved by the Utilities
Department Director or Water Section Superintendent. It will be the Contractor’s responsibility to
propose a method to discharge water that is NPDES compliant and may include methods such as
water detention through storage tanks or other conforming strategies.
The work to be completed will be both of a routine nature and an emergency nature:
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Routine Maintenance Guidelines
For most part, the work will be of a non-emergency, scheduled nature between normal business
hours of 7:00 AM to 3:00 PM. The work will consist of routine, on-call support to Utilities Division
crews in the repair and maintenance of the City’s wells and pumping stations.
Emergency Response Guidelines
The Contractor’s ability to respond to emergency situations upon request is a mandatory condition
of the contract. Failure or inability to respond as required will be considered a breach of contract.
Emergency response typically involves unscheduled work occurring outside of normal business
hours or instances where City crews are unable to provide the necessary level of effort or
equipment.
The Contractor must be available to respond to emergency service requests from the City 24 hours
a day, 7 days a week. Emergency repairs must be addressed within 24 hours of notification, while
non-emergency repairs must be completed within 48 hours.
To ensure timely communication, the Contractor shall provide a designated emergency contact
person along with a reliable telephone number.
Task 1 – Well Services
The City of Gilroy currently operates nine municipal wells, each with distinct characteristics in
terms of age, capacity, and construction. A tenth well is in the design phase (McCarthy Well), with
construction anticipated to begin in the second part of Fiscal Year 2026.
These wells are critical components of Gilroy’s municipal water supply.
The City’s groundwater wells vary widely in age, construction, and performance characteristics.
Installation dates span nearly a century, with the oldest well (Well 1) constructed in 1932 and the
newest (Well 3-02) installed in 2005. Individual well capacities range from approximately 300 to
2,400 gallons per minute, with Well 8 providing the highest output. Well depths also differ
substantially, ranging from about 302 feet at Well 4 to approximately 920 feet at Well 8, reflecting
varying aquifer access conditions. Screen intervals have been designed to match each well’s
specific geological profile. Sanitary seals are present in all wells except Wells 1 and 2, which were
constructed in 1932 and 1947, respectively, and have unknown seal details.
The overall work includes water well rehabilitations, well casing removal, repairs and installations,
water well video inspections, electric motor repairs, and repair services on various types of pumps
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and motors at various locations throughout the City. The Contractor shall provide all necessary
heavy-duty equipment, such as, but not limited to, drilling rig, pump rig, flatbed truck, boom truck,
tractor trailer to complete the task as requested including transportation to and from the
Contractor’s facility to each City worksite.
Pump Removal/Installation and Servicing
The Contractor shall perform water well pumps removal and installation. At the initial setup for
pulling a well pump, the Contractor shall perform lockout/tagout of the electrical and hydraulic
systems.
Well Video Survey Service
The Contractor shall conduct water well video inspections using color video equipment capable of
side-scan and down-hole survey views. Videos must be recorded in high-definition MP4 format
with a resolution of 1280 × 720, 1920 × 1080, or higher. All video files shall be submitted to the
Utilities Director or Water Section Superintendent within 48 hours of recording, either via a
downloadable online link or on a USB flash drive. If submitted online, the USB flash drive must
still be provided within five (5) working days.
The video survey unit shall simultaneously transpose the City’s name, well name, footage, and the
date of inspection on the monitor screen and the video record. A footage counter/recorder shall
read in feet and be accurate within 2 percent of the actual footage.
The video survey camera shall be capable of both normal downhole and right-angle viewing,
achieved either through interchangeable lenses or mechanical adjustment of the camera. Upon
request by the City, the Contractor must provide right-angle viewing to capture direct elevation
views of any casing section.
Well Rehabilitation and Treatment Services
The Contractor shall be qualified to provide well rehabilitation and treatment services. Furnish all
portable engine driven pumps, necessary to perform well redevelopment and rehabilitation. Costs
for temporary piping, sound proofing, and related equipment require approval by the Utilities
Director or Water Section Superintendent.
To perform these tasks, the Contractor shall have the capability to perform mineral analysis,
chemical treatment, water quality testing, zone testing, well casing patches, and similar casing
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repairs/improvements, and mechanical treatment on well casings. All chemicals used in treating
wells shall be State approved for the purpose intended and must be approved by the National
Sanitation Foundation (NSF) approved.
The Contractor’s estimates shall include the typical type and concentration of chemicals (acids,
inhibitors, polymers, neutralizers) to be used; the appropriate contact time for the chemicals; the
typical procedure for introducing, mixing, and neutralizing chemicals in the wells. In addition, the
name (s) and phone numbers of any company(ies) that will supply the treatment chemicals shall
be provided. Completed Materials Safety Data Sheets (MSDS) for all chemicals used shall include
the methods of mechanical treatment (dual swab, wire/nylon brush, sonar jetting, etc.).
Post rehab, contractor shall submit documentation certifying the rehab has been completed
according to the rehab plan and certify pump depths, sounding tube length, etc.
Task 2 Pump Station Services
The City of Gilroy operates six booster pump stations that supply water to Zones 2A, 2B, and Zone
3. Each station is equipped with three pumps, for a total of 18 pumps systemwide. The pumps
range in size from 15 horsepower to 40 horsepower, and all are vertical turbine pumps. One station,
Booster 5, utilizes a variable frequency drive (VFD) motor system.
The City expects the following types of work to be performed under this task:
1. Repair and/or replacement of pumps and motor
2. Replacement of existing above ground and buried yard valves with new ones
3. Manual and/or electric operated valves including all related piping and parts
4. Replacement of pump and station control valves included all related piping and parts
5. Repair or replacement of auxiliary mechanical or electrical equipment. The City reserves
the right to furnish replacement well or booster pump motors
6. Electrical disconnect and hookup of repaired or replacement equipment
7. Repairs or modifications of well heads as required
8. Testing of parts, equipment, or material
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9. Measure, set, and recheck field pump impeller lateral settings and field
10. Verification of pump and equipment operation
11. Demolition or removal of existing structures
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EXHIBIT “C”
MILESTONE SCHEDULE
This three-year on-call agreement provides routine, on-call, and emergency services for water
system repair, maintenance, and rehabilitation on a time-and-materials basis. The City will perform
annual condition assessments of its water system infrastructure to identify and scope additional
work beyond the projects listed below. While well and pump work is anticipated each year under
this agreement, the specific scope may vary based on the results of those assessments.
Based on current known issues, the City has scheduled the following well and pump work items:
1. FY 26 – For Well 8 the installation of a nitrate analyzer to monitor nitrate levels and
provide an automatic shutdown to the well should levels exceed a user adjustable nitrate level.
This project is linked to a Capital Improvement Plan (CIP # 801060).
2. FY 27 – Well 1
a. Execute the removal of the jammed well structure
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EXHIBIT “D”
PAYMENT SCHEDULE
The Contractor shall be compensated for all labor, materials, equipment, services, and other
reimbursable expenses in accordance with the cost schedule attached hereto to the Exhibit D
(Maggiora Brothers Drilling, Inc. Cost Schedule).
2. Maximum Contract Amount
The total compensation payable under this Agreement for the initial three-year term shall not
exceed Four Hundred Twenty Thousand Dollars ($420,000).
3. Annual Allocation
The maximum annual allocation of the total contract amount shall be as follows:
• Fiscal Year 2026: One Hundred Twenty Thousand Dollars ($120,000)
• Fiscal Year 2027: One Hundred Fifty Thousand Dollars ($150,000)
• Fiscal Year 2028: One Hundred Fifty Thousand Dollars ($150,000)
Below is a detailed breakdown of the pricing:
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MAINTENANCE SERVICE AGREEMENT
MAGGIORA BROS DRILLING, INC.
THIS AGREEMENT is entered into and becomes effective on _______ (Effective
Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Maggiora
Bros Drilling, Inc. a California corporation ("SERVICE PROVIDER") hereinafter referred to collectively
as "Parties." In consideration of the promises and the mutual covenants contained in this Agreement,
the Parties agree as follows:
1.City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City
Council taken on October , 15 , 2025.
2.Term of Agreement. This Agreement shall cover services rendered from the Effective Date of
this Agreement until October 31, 2028 at which time SERVICE PROVIDER'S services shall be
completed. The City Manager is authorized to extend the term of this Agreement for a maximum period
of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.
3.Scope of Service. The services to be performed by SERVICE PROVIDER shall be On-Call
Services for Water Well and Pump Station Repairs, Maintenance, and Rehabilitation as further
described in Exhibit A.
4.Compensation. SERVICE PROVIDER shall be compensated as follows:
4.1. Amount. $750,000.00. Total compensation to SERVICE PROVIDER under this
Agreement during its initial term set forth in Section 2 above shall not exceed Seven
Hundred Fifty Thousand dollars and shall be billed based on the rate and basis set forth
in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the
provisions of Section 2 above, the City Manager shall have the authority to increase the
maximum compensation allowed to be paid to SERVICE PROVIDER during that
extended term period, so long as City Council has appropriated sufficient funds therefor,
the Parties mutually agree to such amount in a writing signed by both Parties to this
Agreement and provided further that in no event shall such maximum compensation
allowed for each subsequent extended one-year term exceed 105% of the maximum
compensation allowed to be paid to SERVICE PROVIDER for one year of service during
the immediately preceding prior year of service.
4.2. Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated,
detailed, and itemized descriptions of all services performed and expenses incurred (if
such expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a
monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the
CITY addressed to the department head or project manager identified below in Section
14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are
interrupted or not provided for any rate period (for example, any monthly rate charge
should be prorated when services were interrupted or provided for only part of the
month). For services billed on an hourly rate, the minimum unit of billed time shall not
exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided
in Exhibit B) up to the limit of compensation set forth above, that in the CITY'S judgment
were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.
Updated'. August 2024
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U:\Legal Forms\CONTRACT ROUTING FORMS Revised 6/13/2023
City of Morgan Hill
Contract Checklist
Contract # ________________________________
Is FPPC Required (completed by CA)?
___________
Date: ___________________
Project Name:________________________________________________________________
Contractor’s Name: ___________________________________________________________
Project Manager: _____________________________________________________________
Department: _________________________________________________________________
STANDARD CITY/AGENCY FORM:
Is this a Standard City/Agency Form without any changes:
YES NO
[If there are changes to the Standard City/Agency Form, describe in attached memo/
email]
Are there funds for this request?
YES NO
Fund/GL Account:__________________________________________________________
CONTRACTOR’S INSURANCE
***To be completed before agreement is routed for signatures.
***Please fill in one of the section below:
Insurance reviewed and approved on date of: __________________
Insurance is not required per email dated: _____________________
Amendment - Insurance not needed:
10/20/2025
Water Well and Booster Station Repair, Maintenance, and Rehab
Maggiora Bros Drilling
Mario Jimenez
Utilities
WA6003 Water Facility Rehabilitation
10/20/2025
4
4
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Certificate Of Completion
Envelope Id: 76FFA2B2-5A9C-48A8-854E-16ACAFD4A654 Status: Completed
Subject: Complete with Docusign: Maggiora Bros Agreement FY26-28
Source Envelope:
Document Pages: 23 Signatures: 4 Envelope Originator:
Certificate Pages: 5 Initials: 0 City Clerk's Office
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
17575 Peak Ave
Morgan Hill, CA 95037
cityclerk@morganhill.ca.gov
IP Address: 35.131.77.142
Record Tracking
Status: Original
10/21/2025 9:04:14 AM
Holder: City Clerk's Office
cityclerk@morganhill.ca.gov
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Morgan Hill Location: Docusign
Signer Events Signature Timestamp
Donald Larkin
donald.larkin@morganhill.ca.gov
City Attorney/Risk Manager
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 71.93.229.68
Sent: 10/21/2025 9:08:18 AM
Viewed: 10/21/2025 9:13:42 AM
Signed: 10/21/2025 9:13:52 AM
Electronic Record and Signature Disclosure:
Accepted: 10/21/2025 9:13:42 AM
ID: 1bc62e58-c9a0-41ec-a62c-b3a1ad979c98
Christina Turner
christina.turner@morganhill.ca.gov
City Manager
City of Morgan Hill
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 2600:387:f:219::7
Sent: 10/21/2025 9:13:55 AM
Viewed: 10/28/2025 4:04:28 AM
Signed: 10/28/2025 4:05:25 AM
Electronic Record and Signature Disclosure:
Accepted: 10/28/2025 4:04:28 AM
ID: d308a5bd-cfbe-4585-8725-33a461eee21f
Michelle Bigelow
michelle.bigelow@morganhill.ca.gov
City Clerk
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 35.131.77.142
Sent: 10/28/2025 4:05:27 AM
Viewed: 10/28/2025 9:28:46 AM
Signed: 10/28/2025 9:28:50 AM
Electronic Record and Signature Disclosure:
Accepted: 10/28/2025 9:28:46 AM
ID: c65c0348-cff7-472f-ab0e-d8166069dd17
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
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Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Chris Ghione
chris.ghione@morganhill.ca.gov
Public Services Director
Security Level: Email, Account Authentication
(None)
Sent: 10/28/2025 9:28:53 AM
Electronic Record and Signature Disclosure:
Accepted: 10/28/2025 6:47:55 AM
ID: 21a1a696-e3c9-4741-9089-f2330c1760d5
Inga Alonzo
inga.alonzo@morganhill.ca.gov
Management Analyst
Security Level: Email, Account Authentication
(None)
Sent: 10/28/2025 9:28:53 AM
Viewed: 10/28/2025 9:37:37 AM
Electronic Record and Signature Disclosure:
Accepted: 3/25/2021 3:45:44 PM
ID: 08f6072e-b61c-4976-8f19-336226528b29
Angel Echavarria
angel.echavarria@morganhill.ca.gov
Security Level: Email, Account Authentication
(None)
Sent: 10/28/2025 9:28:54 AM
Electronic Record and Signature Disclosure:
Accepted: 8/25/2025 11:08:14 AM
ID: db70a0cf-4047-4b09-844d-ae93aab9a2ad
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 10/21/2025 9:08:18 AM
Certified Delivered Security Checked 10/28/2025 9:28:46 AM
Signing Complete Security Checked 10/28/2025 9:28:50 AM
Completed Security Checked 10/28/2025 9:28:54 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
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ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Morgan Hill (we, us or Company) may be required by law to provide
to you certain written notices or disclosures. Described below are the terms and conditions for
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All notices and disclosures will be sent to you electronically
Electronic Record and Signature Disclosure created on: 5/29/2020 4:52:24 PM
Parties agreed to: Donald Larkin, Christina Turner, Michelle Bigelow, Chris Ghione, Inga Alonzo, Angel Echavarria
Page 72 of 193
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Until or unless you notify City of Morgan Hill as described above, you consent to receive
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Page 74 of 193
6.4.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve an Amendment to the Land Management Software
Agreement with Tyler Technologies for the Environmental
Health Suite and Fire Prevention Mobile Software and Three
Years of Annual Maintenance and License Fees in the
Amount of $130,054.
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Monica Sendejas, Management Analyst
STRATEGIC PLAN GOALS: Promote Economic Development Activities
RECOMMENDATION
1. Approve an amendment to the land management software agreement with Tyler
Technologies for the Environmental Health Suite and Fire Prevention Mobile
Software and three years of annual maintenance and license fees in the amount
of $130,054, and authorize the City Administrator to execute the agreement and
associated documents.
2. Adopt a resolution amending the Fiscal Year 2025-2026 (FY26) Budget to
increase expenditure appropriations by $70,000, in the Information Technology
Fund (620 Fund).
EXECUTIVE SUMMARY
Following a Request for Proposals (RFP) process, City Council awarded a seven-year
contract to Tyler Technologies, Inc. (Tyler) in the amount of $1,609,603 for the purchase
and implementation of a new land management software system supporting
development and inspection services in February 2020. The contract terms included a
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6.4.
first-year implementation fee of $584,479, followed by six subsequent years of annual
maintenance and licensing fees (“SaaS” Fees), each costing $170,854 per year.
Following the initial term, Tyler agreed to cap increases to the annual SaaS Fees for
years eight through ten to 5% over the preceding year’s SaaS Fees. Thereafter, the
annual SaaS fee will be at Tyler’s then-current rates.
The land management software, formerly known as EnerGov, is now called Enterprise
Permitting and Licensing (EPL). A module called Digital Health Department (DHD) was
included with the purchase of EPL in 2020 and is utilized by the Fire Prevention,
Hazardous Materials, and Wastewater Pretreatment Division of Community
Development for annual operational permits and inspection management. Tyler has
announced that DHD will be sunsetting on December 31, 2026. New software is needed
to replace DHD. Staff is recommending transitioning to Tyler’s new product, Enterprise
Environmental Health Suite and Fire Prevention Mobile (EH) software.
BACKGROUND
Tyler has been the City’s vendor for the Enterprise Resource Planning (ERP) system
since 2020. An ERP system is a central business software system that integrates and
manages core processes like Finance, Human Resources, and land management into
one unified platform, acting as a “central nervous system” for the entire organization,
streamlining data flow and improving efficiency.
Tyler’s EPL suite (formerly EnerGov), which was awarded over five years ago, is the
City’s land management software used by the Community Development and Public
Works Departments. EPL includes a suite of modules for planning, permitting,
inspections, code enforcement, and compliance and has Geographic Information
System (GIS) integration. EPL also includes 24/7 online access for customers through
the Customer Self Service (CSS) portal, which in Gilroy we named “GO Permit” (Gilroy
Online Permit). Through the “GO Permit” portal, customers can submit applications,
request inspections, and pay fees.
EPL does not support the specific workflows required for annual Fire and Certified
Unified Program Agency (CUPA) operational permits and inspections management
handled by the Fire Prevention, Hazardous Materials, and Wastewater Pretreatment
Division. The CUPA Program consists of six hazardous materials sub-programs
designed to protect natural resources, such as water, and improve public health and
safety. DHD, a module from Tyler acquired in the 2020 purchase of the EPL package, is
the dedicated software used for annual Fire and CUPA operational permits and
inspections management. However, despite being part of the same acquisition, the
DHD module does not integrate with the core EPL system. DHD is the software used to
manage over 1,460 annual CUPA, Fire, and Wastewater Pretreatment operational
inspections and permits in Gilroy and Morgan Hill and over 280 State Fire Marshal
mandated inspections in Gilroy. While DHD can generate invoices, record inspection
data, and produce permits, DHD is not equipped to handle financial transactions, so
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6.4.
payments are manually processed by City staff through Tyler Cashiering. Payment
receipts are manually posted to DHD facility records by City staff. Manual payment
intake, processing, and issuance requiring human intervention at every stage make the
accounting process both costly and labor-intensive. The new software is expected to
significantly reduce the need for human intervention at each stage, streamlining
processes and improving efficiency for both the client and the City of Gilroy.
DHD also integrates with California Environmental Reporting System (CERS), a
statewide web-based system that supports the electronic exchange of required CUPA
information among businesses, local governments, and the U.S. Environmental
Protection Agency (US EPA). Assembly Bill 2286 requires all Unified Program-regulated
businesses and local regulating Unified Program Agencies (UPAs) to report and submit
mandatory Unified Program information electronically, through CERS or a local UPA
portal. This is a non-negotiable requirement for the software. It must integrate
seamlessly with the California Environmental Reporting System (CERS).
DHD joined Tyler in 2017 and over time and with feedback from their clients, Tyler
recognized a need to modernize the ColdFusion DHD software to a cloud-based system
that will provide a more reliable environment because of increased security, automated
backups, and server redundancy. Tyler has released their new product, EH, and has
informed the City that DHD will sunset on December 31, 2026.
Effective January 1, 2027, the City will need to operate on a new platform for the
management of annual Fire and CUPA operational permits and inspections. City staff
anticipates at least an eight-to-ten-month process for new software implementation.
ANALYSIS
DHD will sunset on December 31, 2026. The DHD replacement software system must
support these functionalities:
• Fire Code inspections and permitting;
• State Fire Marshal mandated Fire Inspections;
• CUPA inspections and permitting;
• Integration with next-generation CERS;
• Wastewater pretreatment inspections and permitting.
The replacement software must also support both in-person and online financial
transactions, with its financial component needing seamless integration capabilities with
Tyler ERP and EPL.
Staff investigated six different software systems; however, five of them were not
comprehensive enough to cover all the functionalities listed above. EH is the sixth
software system that staff investigated and is the best choice to replace DHD for the
following reasons:
• EH is a Tyler program that integrates with the ERP.
• EH and EPL work together as a seamlessly integrated, single platform, where EH
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6.4.
functionality is built into the broader EPL system, creating one central hub for managing
all permits, licenses, inspections, and compliance for various public health and safety
programs, improving data flow, automating processes (such as online
payments/permits), and boosting efficiency for the City and the public.
• EH will support the familiar functions of DHD, including annual invoicing, permitting,
and inspection management of Fire and CUPA facilities, State Fire Marshal mandated
fire inspections, and has CERS integration capabilities.
• EH has enhanced GIS integration, will connect to the “GO Permit” portal (CSS online
portal) which will allow for 24/7 customer online payments and access to permits, and a
mobile app for field staff.
• Tyler will migrate data from DHD and into the new EH system.
• EH will also be able to support the City’s Environmental Services Division of Public
Works with their annual invoicing of Post Construction Best Management Practice
(BMP) Administration and Monitoring fee.
Based on staff’s research, the Tyler EH module is the only software package that meets
all requirements.
Because the City already contracts with and has standardized Tyler for EPL and the
DHD module, staff leveraged this relationship to negotiate a much lower price, with the
final negotiated quote yielding over $198,000 decrease from the initial quote, saving the
City significant funds.
The total cost of the proposed three-year amendment to the EPL agreement is
$130,054. This includes one-time setup, configuration, and training services of $70,000.
The data conversion services are at no cost to the City. The annual SaaS Fees will be
$20,018 per year for three years, which is equivalent to the DHD SaaS fees the City is
currently paying and is in the approved FY26 and FY27 budget.
ALTERNATIVES
Council could reject or delay the staff recommendation and not approve the amendment
to the agreement with Tyler for the EH software. A delay and/or rejection is not
recommended because effective January 1, 2027, several critical functions will be
impacted due to the obsolescence of existing software. The primary consequences are
that the Fire and CUPA programs will lack a viable system for invoicing, permitting, and
inspection management. Additionally, the ability to integrate with the state-mandated
CERS software for the CUPA program will cease. Managing these programs without
software would require a significant increase in City staff time and would likely cause
the City to fall out of compliance with health and safety requirements. Further, the City
has evaluated alternative software solutions and determined Tyler EH to be the solution
that serves the City’s needs.
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6.4.
FISCAL IMPACT/FUNDING SOURCE
This amendment to the EPL agreement with Tyler Technologies, Inc. is for an amount of
$130,054. The annual SaaS fees of $20,018 per year were appropriated in the
Information Technology Administration Fund (Fund 620) for FY26 and FY27 and will be
included in the FY28 budget proposal (budgeted as DHD fees and will now be labeled
as EH fees).
There is adequate fund balance available to cover the additional one-time fees of
$70,000 for setup, configuration, and training. A budget amendment resolution has been
included with the staff report.
NEXT STEPS
Should Council approve the acquisition of Tyler EH and Fire Prevention software, staff
will execute the amendment to the EPL agreement and will work with Tyler to begin
implementation of EH.
Attachments:
1. Tyler EH and Fire Prevention Mobile Amendment
2. Budget Amendment Resolution
Page 79 of 193
1
AMENDMENT
This amendment (“Amendment”) is effective as of the date of signature of the last party to sign as
indicated below (“Amendment Effective Date”), by and between Tyler Technologies, Inc. with offices at
One Tyler Drive, Yarmouth, Maine 04096 (“Tyler”) and the City of Gilroy, California, with offices at 7351
Rosanna Street, Gilroy, California 95020 (“Client”).
WHEREAS, Tyler and Client are parties to an agreement dated March 12, 2020 (“Agreement”); and
WHEREAS, Tyler and Client desire to amend the terms of the Agreement as provided herein.
NOW THEREFORE, in consideration of the mutual promises hereinafter contained, Tyler and Client agree
as follows:
1. The items set forth in the Amendment Investment Summary attached as Exhibit 1 to this
Amendment are hereby added to the Agreement as of the first day of the first month following
the Amendment Effective Date and, notwithstanding anything to the contrary in Exhibit 1,
ending coterminous with the SaaS Term as defined in the Agreement. Payment of fees and
costs for such items shall conform to the following terms:
a. The annual SaaS fees payable under the Agreement shall be increased in the amount of
$20,018, for the Tyler Software added herein. The first year’s annual SaaS Fees shall be
invoiced on the first day of the first month following the Amendment Effective Date,
prorated for the time period commencing on such date and ending concurrently with
the Client’s annual SaaS Term under the Agreement. Subsequent SaaS Fees shall be
invoiced in accordance with the terms of the Agreement.
b. Unless otherwise provided herein, services identified at Exhibit 1 and added to the
Agreement pursuant to this Amendment, along with applicable expenses, shall be
invoiced as provided and/or incurred.
c. Credit for Prepaid Maintenance and Support Fees for Migration Modules. Client will
receive a credit for the maintenance and support fees prepaid for the Migration
Modules for the time period commencing on the first day of the initial term, as set forth
in Section 1 of this Amendment. Migration Modules are listed at Exhibit 1, Schedule 1.
2. Support of Migration Modules. Beginning on the commencement of the initial term as set forth
in Section 1 of this Amendment, and contingent upon Client’s timely payment of annual SaaS
Fees for Tyler Evergreen Modules, Client is entitled to receive, at no additional charge,
maintenance and support for the Migration Modules until Tyler makes the Tyler Evergreen
Modules available for use in live production.
3. License Rights Terminate Upon Migration. When Tyler makes Tyler Software identified in the
Investment Summary (the “Evergreen Modules”) and licensed pursuant to this Agreement
available to the Client for use in live production, the license to the Tyler software listed in Exhibit
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2
1, Schedule 1 (hereafter, “Migration Modules”) terminates, as do Tyler’s maintenance, support,
and/or update obligations for such software.
4. Your use of Tyler’s Fire Prevention Mobile solutions is subject to the terms found here:
https://www.tylertech.com/terms/fire-prevention-mobile-third-party-terms. By signing this
Amendment, or accessing, installing, or using the Fire Prevention Mobile solution, you agree
that you have read, understood, and agree to such terms.
5. This Amendment shall be governed by and construed in accordance with the terms and
conditions of the Agreement.
6. Except as expressly indicated in this Amendment, all other terms and conditions of the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the dates set forth
below.
Tyler Technologies, Inc. City of Gilroy, California
By: By:
Name: Name:
Title: Title:
Date: Date:
Page 81 of 193
Exhibit 1
3
Exhibit 1
Amendment Investment Summary
The following Amendment Investment Summary details the additional software, products, and services
to be delivered by us to you under the terms of the Agreement. This Amendment Investment Summary
is effective as of the Amendment Effective Date, despite any expiration date in this Amendment
Investment Summary that may have lapsed as of the Amendment Effective Date.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Page 82 of 193
2024-478408-G5F2B1 Page 1
Quoted By:Chuck Newberry
Quote Expiration:6/30/26
Quote Name:Tyler EH/CUPA and FPM SaaS
Sales Quotation For:
City of Gilroy
7351 Rosanna St
Gilroy CA 95020-6196
Tyler SaaS
Description Term Monthly Fee Users/Units Annual Fee
Enterprise Permitting & Licensing Core Software
Environmental Health Suite $ 595 1 $ 7,146
Enterprise Permitting & Licensing Extensions
Environmental Health - CA CUPA and CERS 1-3 Integration $ 438 1 $ 5,254
Fire Prevention Mobile
Inspector Mobile $ 174 4 $ 8,356
Inspector Mobile Plus - Silver (Invoicing Add-On) $ 51 4 $ 2,424
Onboard Codes - ICC $ 47 1 $ 558
Product Integration - Enterprise Permitting & Licensing $ 0 1 $ 0
Sub-Total: $ 23,738
Less Discount $ 3,720
TOTAL 3.00 $ 20,018
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2024-478408-G5F2B1 Page 2
Professional Services
Description Quantity Unit Price
Extended
Price Maintenance
Professional Services
Custom Reports/Outputs 2 $ 5,000 $ 10,000 $ 0
Data Conversion Services 200 $ 250 $ 50,000 $ 0
Professional Implementation Services - Remote 160 $ 200 $ 32,000 $ 0
Project Management Services - Remote 80 $ 200 $ 16,000 $ 0
Training Services - Remote 24 $ 200 $ 4,800 $ 0
Professional Services
Setup & Configuration Services 20 $ 200 $ 4,000 $ 0
Training Services - Inspector Mobile Plus 16 $ 200 $ 3,200 $ 0
Sub-Total:$ 120,000
Less Discount:$ 50,000
TOTAL:$ 70,000 $ 0
Summary One Time Fees Recurring Fees
Total SaaS $ 20,018
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2024-478408-G5F2B1 Page 3
Total Services $ 70,000 $ 0
Total Third-Party Hardware, Software, Services $ 0 $ 0
Summary Total $ 70,000 $ 20,018
Contract Total $ 130,054
Comments
SaaS Monthly Fees are rounded to the nearest dollar. The Annual Fee value represents the cost to the customer.
Decisions about on-site versus remote planning meetings and training delivery will be decided mutually during the initial kickoff meetings.
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2024-478408-G5F2B1 Page 4
Data loading services include the following: Loading the published fire codes and standards that are in-scope. Loading occupancy data. Assumptions
for loading of occupancy data: While there is no limit to the number of occupancy records to be loaded, the line item for Setup and Configuration
Services assumes certain minimum requirements. The following requirements must be met for us to load occupancy data: The data must be provided
in the form of a spreadsheet or .csv file with each record being a single row in the spreadsheet. A collection of tables from an existing database
cannot be accepted. Different types of data can be provided in separate spreadsheets as long as there is a key field/ID linking the spreadsheets
together. For example, you can provide address and business name information in one spreadsheet and contact information in a second spreadsheet.
But there must be a unique ID that links a contact in the second spreadsheet to the “owning” occupant in the first spreadsheet. Spreadsheets cannot
be linked using address or occupant name. These are not considered "keys". If your occupancy data is coming from more than one source, there
must be no overlap between the records from each source. Time spent trying to blend together two or more overlapping spreadsheets is not included
in this proposal line item. Optional Data Conversion Services: Tyler does not perform any data clean up. This is the responsibility of our client. No
parsing, concatenation, etc. will be completed by Tyler. This will need to be done in the legacy system or in the data export prior to providing the data
to Tyler’s MobileEyes team. Exception: Parsing full street addresses into individual fields for each piece of the address (address, directional prefix,
street name, street type, directional suffix, city, state, zip code). Exception: The client can provide multiple spreadsheets of data with records that are
linked through a record key assuming the number of spreadsheets is six or less. An example of this would be a separate spreadsheet of contact data
with a record key that enables linking of the contacts to the location and occupancy records. No “fuzzy” matching of records – e.g., matching on
address or business name – will be done. Data conversion services included: Data mapping – This includes mapping of each field of the customer
data to a corresponding field in MobileEyes. Where there is no direct match to a client field, the Tyler project manager will meet with the designated
client data decision maker to determine a) whether to load that field, and b) if the decision is to load it, then which MobileEyes field it will be loaded
into. Data loading – This includes loading the client data into the MobileEyes Web database per the approved data map. Examples of services
considered “data clean up” and therefore, not included: Removal of records from the data set that the client does not want loaded. For example,
removing residential records or properties that the Fire Marshal’s Office does not inspect. These must be removed by the client from the data set
prior to providing the file to Tyler for data mapping. Data manipulation/changing of data that is provided in the export. For example, a field that will
become a pick list field in MobileEyes has more unique values than the client wants the pick list to have. (Example, the Section field has 20 unique
values represented in the data and the customer wants to consolidate the number of unique values to 10.) We will do a reasonable amount of data
clean up, organization, and standardization of your data before loading it, but the department or agency is responsible for the accuracy and
completeness of the data. You will have an opportunity to review the data before it is loaded. Optional services not included in the proposal: The
following optional services are available and can be priced separately: Data loading of inspection history. Data loading of invoice history. Data loading
of permit history.
The Fire Prevention Mobile integration with Enterprise Permitting & Licensing is with the Business Licensing module. The integration with Permitting
consists of a joint task list/schedule of fire inspections, plan reviews, and permit inspections.
Custom reports are ground up module level custom report based on client specification. A custom report returns data from multiple records based on
selection criteria.
Environment Health Suite includes Civic Access for Environment Health and Environmental Health Executive Insights
Investment Summary Notes
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2024-478408-G5F2B1 Page 5
Delays in completion, reviews, and/or acceptance of any deliverable by the client which extends the duration of the project are subject to
the change control process for additional costs incurred by the delay, including but not limited to additional service hours for project
management, consulting, and conversion development.
Implementation service hours are scheduled and delivered in four (4) or eight (8) hour increments.
PASC (Public Administration Security Console) is a tool where Support staff are able to access client environments using specified Tyler-
owned accounts with rolling passwords.
The client is responsible for providing and maintaining the GIS services required by Enterprise Permitting & Licensing in accordance with
Tyler’s GIS deployment guidelines.
Implementation Notes
Environmental Health/CUPA Implementation: This will be a shared services implementation where Tyler leads and owns the configuration
of 5 total programs, a single program's violation library content and a single code case type to serve as examples with the remaining
configuration to be completed by the client. Unique case types implemented by Tyler are estimated at 25-30 hours per process for
definition, configuration, and validation. Tyler will enable the standard Geo Rules and standard automation events included in the
application. Configuration elements beyond this are owned by the client.
CUPA Programs included:
CUPA/SERS Programs
•Aboveground Petroleum Storage Act (APSA)
•California Accidental Release Prevention (CalARP)
•Hazardous Waste
•Hazardous Materials Business Plan (HMBP)
•Tiered Permitting
•Underground Storage Tank Program (UST)
Inspection Types
•APSA Conditionally Exempt
•APSA Non-Qualified
•APSA Tier I
•APSA Tier II
•CalARP Level 1
•CalARP Level 2
•CalARP Level 3
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2024-478408-G5F2B1 Page 6
•CalARP Level 4
•Hazardous Waste Generator LQG
•Hazardous Waste Generator SQG
•Hazardous Waste RCRA LQG
•HMBP
•Tiered CA
•Tiered CECL
•Tiered CEL
•Tiered CESQT
•Tiered CESW
•Tiered PBR
•Tiered PHHWCF
•Tiered THHWCF
•UST DW
•UST SW
Fire Prevention Mobile Hours included for configuration, implementation and training.
Tyler’s implementation team is primarily responsible for the following tasks:
•Training Environmental Health/CUPA functionality
•Training, best practice, and guidance in software configuration and maintenance for Environmental Health/CUPA and Civic Access
applications
•Establishing Environmental Health and Civic Access connections to the client-published GIS map services and configuration of
Environmental Health’s Live Link component
•System configuration of Payments for Environmental Health and Civic Access or enablement of electronic payments based on
client-supplied payment gateway information (as applicable, based on contract and client having secured an approved payment
gateway)
•System configuration and validation of Tyler-to-Tyler product integrations (Enterprise ERP, Cashiering, Content Manager,
Enterprise Service Requests, others as applicable based on contract)
The client’s subject matter experts (SMEs) should be available approximately 25-50% (dependent on the number of processes) each week
throughout the project to perform configuration and validation in addition to time scheduled with the Tyler team. The client
configuration team should expect to dedicate 30-45 hours per process following completion of configuration training.
The client’s SMEs are primarily responsible for the following tasks:
•Case Type and Work Class configuration, including all associated module components
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2024-478408-G5F2B1 Page 7
•System Setup configuration (Holidays, Zones, Hold Types, Hearing Types, etc.)
•Report Setup’s dynamic custom fields
•User and User Role configuration
•Workflow component and Workflow Template configuration (Steps, Actions, Submittal Types, Item Reviews, etc.)
•Civic Access customization and administration (allowed Case Types, Application instructions, Geo Rules, Themes, Headers, Menus,
Security Settings, etc.)
•Automation Events (Intelligent Objects, standard Intelligent Queries). This covers automation tasks like emails, Tasks, Geo Rules,
etc.
•Other configuration as desired by client
Civic Access is the online portal for the client's citizens. Tyler will ensure the online portal is operating and is connected to GIS, complete
the payment portal configuration, and provide Civic Access configuration training. The client is responsible for the configuration of making
applications available online as well as any other components that fall outside of what was mentioned prior.
Hub is a platform that allows clients to customize individual user dashboards to visualize tasks and data. Tyler will connect the EPL data
source to Hub and provide training to personalize user dashboards. The client is responsible for all personalization and maintenance of
user dashboards. Any additional data source connections to Hub are subject to the change control process and will incur additional cost.
Integration/Conversion/Reports:
Enterprise Permitting & Licensing API Implementation & Support Services provided by Tyler are limited to delivery of the API and
guidance for the client's integration development resources. Tyler does not provide integration development services for EPL API/SDK
toolkits. The client (or a selected third-party integrator) will perform all development work against the API/SDK.
Full Conversion - The client will provide Tyler with up to 2 legacy data source(s) [Streamline, CUPA DMS] containing the Environmental
Health data of the legacy system. The client is responsible for extracting data from the client’s legacy system(s) and supplying it to Tyler in
an acceptable format. Tyler does not manipulate or correct legacy data on behalf of clients; any data quality concerns must be addressed
by the client before supplying data to Tyler.
Tyler will populate the Data Conversion Template database (DCT-DB) with the legacy data to be converted into EPL. Tyler will use the
completed DCT-DB to produce a mapping document that allows the client to correlate legacy data fields to EPL fields. The client is
responsible for all data mapping decisions and completing the mapping document. The client’s DCT-DB and supplied mapping will be used
to translate the legacy data into the EPL software; this constitutes a “conversion pass.” A total of four (4) conversion passes are included
Page 89 of 193
2024-478408-G5F2B1 Page 8
in the scope of this implementation: two (2) evaluation conversion passes, one (1) simulated go-live pass, and one (1) final go-live
conversion pass.
Custom Reports in Scope: 2
Ground-up module-level custom report based on client specifications. A custom report returns data from multiple records based on
selection criteria.
Custom Forms/Letters in Scope: 0
Ground-up single-record custom letter or form based on client specifications. A form/letter returns data from a single record (permit,
code case, etc.).
Training Notes
Training Engagements – For each training engagement, the client receives and is billed for 8-hour days of direct instruction and up to 8
hours of preparatory and administrative time to allow trainers to familiarize themselves with client needs, develop schedules, prepare
software environments, and complete documentation.
The following training engagements are included in the scope of this implementation:
•Solutions Orientation Training: Introductory training course designed to expose the end user to the software.
•Configuration Training: Advanced training in end user functionality, configuration, and system administration.
•End User Training: Software functionality training for all end users designed to prepare all users for transitioning production
processing to EPL.
Page 90 of 193
Exhibit 1
Schedule 1
4
Exhibit 1
Schedule 1
Migration Module(s)
•Digital Health Department
Page 91 of 193
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING
THE BUDGET FOR THE CITY OF GILROY FOR 2025-2026 IN THE INFORMATION
TECHNOLOGY FUND AND APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 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 reported
dated February 9, 2026, for the Information Technology Fund (620 Fund), appropriating funding
from the Information Technology (620) Fund Balance for the Tyler Technologies, Inc.
Environmental Health Suite and Fire Prevention Mobile Software (EH) one-time setup,
configuration, and training fees; and
WHEREAS, the City Council has carefully examined and considered the same and is
satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT the expenditure appropriations for Fiscal Year
2025-2026 in Fund 620 are hereby increased by $70,000.
PASSED AND ADOPTED this 9th day of February 2026 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 92 of 193
Resolution No. 2026-XX
Budget Amendment FY26 EH Software
City Council Regular Meeting | February 9, 2026
Page 2 of 2
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-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, February 9, 2026, 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 93 of 193
4.5.
City of Gilroy
STAFF REPORT
Agenda Item Title: Adopt a Resolution of the City Council of the City of Gilroy
Declaring Weeds a Nuisance
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Jonathan Crick, Fire Marshal
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Adopt a resolution declaring weeds and accumulated refuse a nuisance in order to
commence the 2026 weed abatement process for the City of Gilroy.
EXECUTIVE SUMMARY
Gilroy City Code, Chapter 12, Article III, establishes a procedure for the abatement of
weeds and refuse. The annual weed and refuse abatement program includes an initial
resolution declaring weeds and refuse a public nuisance. The resolution sets April 20,
2026, for a public hearing of the list of properties subject to abatement. The list created
for the public hearing includes sites identified as having a weed or refuse problem in the
current year as well as during any one of the prior three years. Adoption of the list at the
public hearing provides authority for the City (or its contractor) to perform the abatement
of weeds and/or refuse for the listed sites and provides for cost recovery by adding it to
the property owner’s property tax bill as an assessment.
BACKGROUND
The Santa Clara County Weed Abatement Program began in the mid-1970s to reduce
the spread of wildfire. The Santa Clara County Weed Abatement Program provides
weed abatement services for ten cities in Santa Clara County and the unincorporated
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4.5.
areas of Santa Clara County. Pursuant to an updated agreement signed in 2021
between the City of Gilroy and the Santa Clara County Agriculture Commissioner’s
Office, the County Vegetation Management Program has been implementing the weed
abatement program as a contractor to the City. Under the agreement, all abatement
activities are conducted by the County including the noticing of property owners,
property inspections, and the collection of abatement fees and inspection costs. The
City is responsible for adopting necessary resolutions and conducting public hearings
on the matter.
ANALYSIS
Program Details
The list created for the public hearings includes sites identified as having a weed or
refuse problem in the current year as well as during any one of the prior three years.
County staff will mail the initial abatement notice to identified property owners within
approximately two weeks of the resolution being adopted. Required information in the
weed abatement notice includes the public hearing date, instructions on the proper
abatement of the sites, and the May 15, 2026, deadline for abatement activities. In
addition, the notice also identifies the consequences of not meeting the deadline. All
identified sites will be required to pay the initial inspection fee, currently set at $296.
If a site is abated by the May 15, 2026, abatement deadline then additional fees, such as
re-inspection fees and/or abatement oversight fees, will not be assessed. The property
owner is required to maintain the abated site; failure to do so will result in the
assessment of additional fees. All properties must be free of fire hazards throughout the
year to meet minimum safety standards.
Sites that are identified to have weed and/or refuse problems will remain on the list for at
least three years. However, property owners can have their property removed from the
list. For instance, a site that has achieved three “compliant” years in a row or a vacant
site that has since been developed and is fully landscaped may be removed from the
list.
After the initial outreach, the County will also send all property owners a reminder letter
30 days prior to the May 15, 2026, abatement deadline. After May 15, 2026, the County
will conduct inspections and notify those property owners who have not abated their
properties. For sites not in the Wildland Urban Interface (WUI) Hazardous Fire Area, the
property owner has two weeks to complete the work. If abatement is completed prior to
the next inspection, these properties will not be subject to additional fees.
The two-week extension is not provided to properties in the WUI Hazardous Fire Area
because these areas are considered to have high fire hazards. In addition, the Public
Resources Code requires weed abatement in these areas without any extensions. For
sites in the WUI Hazardous Fire Area, the County will immediately assign the site for
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4.5.
abatement by a private contractor. Any site that is abated by the County will be
assessed the parcel inspection fee ($296), the non-compliant (failed inspection) fee
($953), and the cost incurred by the abatement contractor, which is based primarily on
the square footage of the site, as well as the abatement oversight cost ($1,383). If a
warrant is required, the fee is $3,006.
Since the implementation of this program in 2010, the number of sites on the County’s
list has fluctuated from year to year, but the numbers for Gilroy have decreased since
2017. In Gilroy, there were: 282 sites identified in 2017, 166 sites in 2018, 174 sites in
2019, 146 sites in 2020, 150 in 2021, 147 for 2022,166 for 2023, 154 for 2024, 129 for
2025, and 118 for 2026.
Key dates associated with this year’s program are as follows:
February 9, 2026 City Council Resolution of Public Nuisance
March 17, 2026* County Notification to Listed Property Owners
April 20, 2026 Public hearing to consider List of Properties requiring abatement
May 1, 2026* County Notification of Abatement Deadline
May 15, 2026 Abatement Deadline
May 30, 2026* County conducts initial inspections
June 13, 2026* Extended Deadline for non-WUI properties only
August 3, 2026* Public hearing for City Council to Authorize Assessments
*Dates are approximate at this time and provide an estimate as determined by the
responsible Agency.
ALTERNATIVES
There are no alternatives. Section 12.48 of Chapter 12 of the Gilroy City Code requires
that the City Council pass a resolution declaring weeds and accumulated refuse to be a
public nuisance. Chapter 12 further requires that the City Council order the Fire Chief to
implement the weed abatement process.
FISCAL IMPACT/FUNDING SOURCE
The use of the County as a contract agency to carry out their portions of the program
has been self-funded through cost recovery from property owners that have failed to
abate their sites. The Fire Marshal’s office absorbs the staffing cost for coordination and
communication with the County, the pre-hearing meeting when a property owner
appeals the fees and processing of the Council Resolutions and Public Hearings. If the
County does not collect adequate funds to meet the program budget, they will prorate
the shortfall to the cities based on the percentage of the properties from each City in the
program. We will not know until later in the year if there is a budget shortfall because
abatement activities will continue through October. Historically, up until 2025, the
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4.5.
County has not had a budget shortfall because they have collected adequate fees
directly from the property owners to cover the cost of the program.
PUBLIC OUTREACH
As part of the annual program, property owners receive two Weed and Refuse
Abatement notices from the Santa Clara County Weed Abatement Program that clearly
identify the requirements of the program. Pursuant to the program requirements, the
County also notifies property owners when their properties fail inspections. The City of
Gilroy performs a variety of fire prevention public outreach, including the topic of weed
abatement, in coordination with the Communication and Engagement Office. Such
outreach includes a combination of social media, Gilroy Email Express, and utility bill
insert mailings.
NEXT STEPS
Once Council adopts the resolution, the public hearing of sites needing abatement will
be set for April 20, 2026. In addition, a report of the property assessments will be
presented to the City Council at a public hearing on August 3, 2026. Prior to the
hearing, property owners are invited to contact the Fire Marshal and/or the County
Weed Abatement Program Manager to review any assessments they believe are in
error. A final list will be presented to the City Council for approval of the assessment.
The County Property Tax Assessor will then place the fees on the next property tax bill
as an assessment.
Attachments:
1. Draft Resolution
2. 2026 Gilroy Commencement Report (Property List)
Page 97 of 193
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
DECLARING CERTAIN WEEDS GROWING IN THE CITY OF
GILROY AND ACCUMULATIONS OF REFUSE IN THE CITY OF
GILROY TO BE A PUBLIC NUISANCE, DESCRIBING WEEDS AND
REFUSE WHICH CONSTITUTE SUCH NUISANCE, AND
PROVIDING NOTICE OF THE ADOPTION OF THE RESOLUTION
BY PUBLICATION THEREOF
WHEREAS, certain weeds are growing in the City of Gilroy (“City”) upon the
various streets, alleys, sidewalks and upon private property, which weeds bear seeds
of a wingy or downy nature, or which may attain such growth as to become, when dry, a
fire menace, or which are otherwise noxious and dangerous; and
WHEREAS, certain refuse is accumulating in the City upon public and private
property; and
WHEREAS, said weeds and refuse constitute a public nuisance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy
as follows:
1. That such weeds and refuse do now constitute and will continue to constitute
a public nuisance, and it is ordered that said public nuisance be abated in the manner
provided by Article III of Chapter 12 of the Gilroy City Code.
2. That said nuisance exists upon all of the streets, alleys, sidewalks and private
property within said City as shown, described and delineated on the several maps of
the property in the City which are recorded in the Office of the County Assessor of the
County of Santa Clara, reference in each instance for the description of any particular
street, alley or private property being hereby made to the several maps aforesaid, and
in the event of there being several subdivision maps on which said lots are shown,
reference is hereby made to the latest subdivision map.
3. That it is ordered that Monday, the 20st of April 2026, at the hour of 6:00
o'clock p.m. in the Council Chambers of the City Council of the City, 7351 Rosanna
Street, Gilroy,
Page 98 of 193
Resolution No. 2026-XX
Declaring Weeds a Nuisance
City Council Regular Meeting | February 9, 2026
Page 2 of 2
California, is hereby fixed as the time and place when objections to the proposed
destruction or removal of said weeds and refuse shall be heard and given due
consideration.
4. That the Chief of the Fire Department of the City is hereby ordered and
directed to cause notice of the adoption of this resolution and notice of said hearing to
be given to all of the affected property owners at their stated mailing address on the
latest tax assessor’s roll, and also to be given in the manner and form provided in
Sections 14.29 and 12.53 of the Gilroy City Code, and to cause said notice to be
published in the City, at least ten (10) days prior to said hearing; and
5. That nothing in this Resolution prohibits the issuance of citations for violations
of City Code Section 12.46 or City Fire Code with regards to Section 304.1.2.
PASSED AND ADOPTED this 9th day of February 2026 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 99 of 193
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Situs APNCITY/STATE2026 WEED ABATEMENT PROGRAMCITY OF GILROYCOMMENCEMENT REPORTExhibit AKOLLAREDDY USHARANI ET AL 7948 MCCLELLAN RD APT 1 CUPERTINO CA 950149025MIMOSACT783-72-02725INNEH, EMMANUEL AND JENNIFER 8955 MIMOSA CT GILROY CA 95020-77978955MIMOSACT783-72-03626ROBLES RONALD E AND MARIA R 1225 VIENNA DR #251 SUNNYVALE CA 940892203BANYANCT783-72-04027NGUYEN PHU AND DOAN LILY 3339 VANGORN WAY SAN JOSE CA 95121-25559210MAHOGANYCT783-72-04528PREMNATH, FLEMING J AND 1690 CIVIC CENTER DR UNIT SANTA CLARA CA 95050-41742273BANYANCT783-72-05129LAM, HWAI TAI C 211 ELMWOOD STREET MOUNTAIN VIEW CA 940432283BANYANCT783-72-05230KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-162195FARRELLAVE790-07-08531KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621103FARRELLAVE790-07-08632KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621111FARRELLAVE790-07-08733KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621119FARRELLAVE790-07-08834NGUYEN, THUAN TRONG AND LE ,3295 KLOETZE LN SAN JOSE CA 95148-0000171RONANAVE790-15-00935S A PROPERTIES GROUP LLC 5820 STONERIDGE MALL RD PLEASANTON CA 9458813751STST790-39-019367711 MONTEREY RD LLC 5655 SILVER CREEK VALLEY SAN JOSE CA 951387733MONTEREYRD799-03-054377711 MONTEREY RD LLC 5655 SILVER CREEK VALLEY SAN JOSE CA 951387711MONTEREYRD799-03-05538BAINS, JAGJIT SINGH 3435 HARBOR CT SAN JOSE CA 95127-4311EIGLEBERRYST799-10-04239GOLDEN BRIDGE PROPERTIES LLC 1669 2 HOLLENBECK AVE SUNNYVALE CA 94087CHURCHST799-11-06940JEUNG, MICHAEL A ET AL 7421 HANNA ST GILROY CA 95020-57237421HANNAST799-18-03141MONSEF, CYRUS 6700 CHURCH ST GILROY CA 95020-65086700CHURCHST799-33-00142JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843FILBRODR799-44-09343JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843ROYALWA799-44-09444JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843ROYALWA799-44-09545JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843ROYALWA799-44-09646JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843ROYALWA799-44-09747JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843ROYALWA799-44-09848Page 2Santa Clara County Weed Abatement Program48 records of 118Page 101 of 193
Situs APNCITY/STATE2026 WEED ABATEMENT PROGRAMCITY OF GILROYCOMMENCEMENT REPORTExhibit AJEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843THOMASRD799-44-10949JEN HOLDCO 23 LLC 2603 CAMINO RAMON STE SAN RAMON CA 95843321LUCHESSAWAVE799-44-11050EAGLE LLC 41368 DANZON CT FREMONT CA 9453914101STST808-01-02151EAGLE LLC 41368 DANZON CT FREMONT CA 945397890SANTA TERESABL808-01-02252EAGLE LLC 41368 DANZON CT FREMONT CA 9453914901STST808-01-02353PIROZZOLI, MONICA TRUSTEE & ET 366 5TH ST GILROY CA 95020PONDEROSADR808-01-02454CHRISTOPHER, DONALD C ET AL 305 BLOOMFIELD AVE GILROY CA 95020LUCHESSAAV808-19-03055SUNER CORPORATION 9761 ZUNI LN GILROY CA 95020-00006482GREENFIELDDR808-20-00856YAHYA, NAAIM A TRUSTEE & ET AL 1835 SULLIVAN CT MORGAN HILL CA 9503710LUCHESSAWAVE808-21-00957WARVI JOHN E 6301 BERRYBUSH CT GILROY CA 95020-95046301BERRYBUSHCT808-40-02458YAHYA NAAIM A TRUSTEE & ET AL 1835 SULLIVAN CT MORGAN HILL CA 95037MONTEREYRd808-49-07859CHRISTOPHER, DONALD C ET AL 305 BLOOMFIELD AVE GILROY CA 95020VINTNERST808-58-00560OWENS FINANCIAL GROUP INC PO BOX 2400 WALNUT CREEK CA 94595-04002740HECKER PASSRD810-20-03361HOEY, JAMES W TRUSTEE & ET AL 2480 HECKER PASS HWY GILROY CA 95020-00002480HECKER PASSHW810-20-03762SYNGENTA FLOWERS LLC PO BOX 500 SLATER IA 502442300HECKER PASSHW810-20-03963DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086675EAGLE RIDGECT810-60-01864DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086685EAGLE RIDGECT810-60-01965DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086695EAGLE RIDGECT810-60-02066SHAPELL INDUSTRIES INC 6800 KOLL CENTER PKWY PLEASANTON CA 945666694EAGLE RIDGECT810-60-02167DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086535EAGLE RIDGECT810-72-02168DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086615EAGLE RIDGECT810-72-02969DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086625EAGLE RIDGECT810-72-03070DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086635EAGLE RIDGECT810-72-03171DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086645EAGLE RIDGECT810-72-03272Page 3Santa Clara County Weed Abatement Program72 records of 118Page 102 of 193
Situs APNCITY/STATE2026 WEED ABATEMENT PROGRAMCITY OF GILROYCOMMENCEMENT REPORTExhibit ADO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086651EAGLE RIDGECT810-72-03373DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086655EAGLE RIDGECT810-72-03474DO & PARTNERS LLC 9419 GERANIUM CIR FOUNTAIN VALLEY CA 927086671EAGLE RIDGECT810-72-03575UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179MONTEREYRD835-01-03476UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179MONTEREYRD835-01-03577LEAVESLEY & FOREST LLC 611 S WESTLAKE AVE LOS ANGELES CA 90057FORESTST835-01-05078HIGHLY VISUAL LLC 8840 FOREST ST GILROY CA 95020MURRAYAVE835-01-05979LEAVESLEY & FOREST LLC 611 S WESTLAKE AVE LOS ANGELES CA 90057LEAVESLEYRD835-01-06480UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179MONTEREYRD835-02-01481J FILICE & SONS LTD 751 B FIRST ST GILROY CA 95020SAN YSIDROAVE835-04-06482MONTANO, LYDIA R AND ALFRED JR15191 KARL AVE MONTE SERENO CA 95030-2229LAS ANIMASAV835-04-06783MONTANO, LYDIA R AND ALFRED JR15191 KARL AVE MONTE SERENO CA 95030-2229MURRAYAVE835-04-06884QUALITY CONSTRUCTION 453 RAVENSDALE DR MOUNTAIN VIEW CA 940439096SAN YSIDROAVE835-04-08785QUALITY CONSTRUCTION 453 RAVENSDALE DR MOUNTAIN VIEW CA 940439090SAN YSIDROAVE835-04-08886SENCION CRYSTAL 9120 MURRAY AVE GILROY CA 950209120MURRAYAVE835-05-00487315 LAS ANIMAS LP 445 CENTRAL AVE STE 200 HIGHLAND PARK IL 60035315LAS ANIMASAVE835-05-006888805 FORREST QOZB LLC PO BOX 787 DIABLO CA 94528FORRESTST835-31-03289UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179MONTEREYHW841-02-04690NGUYEN HUNG Q AND LE HONG T ET 11485 NEW AVE GILROY CA 95020395LEWISST841-03-06291Pacific Gas and Electric Co. ATTN:300 LAKESIDE DRIVE OAKLAND CA 94612-3534SOUTHFW841-10-03992LETTERFORMS INC 3843 CONCORD BLVD CONCORD CA 94519430OLD GILROYST841-11-07593UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179SOUTHFW841-14-05894UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179SOUTHFW841-14-05995UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179SOUTHFW841-14-06096Page 4Santa Clara County Weed Abatement Program96 records of 118Page 103 of 193
Situs APNCITY/STATE2026 WEED ABATEMENT PROGRAMCITY OF GILROYCOMMENCEMENT REPORTExhibit AUNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHANE68179MONTEREYRD841-14-07297GARLIC FARM TRUCK CENTER LLC 5000 E 2ND ST UNIT G BENECIA CA 945105870MONTEREYRD841-14-08098MCCARTHY GILROY LLC 210 ALMENDRA AVE LOS GATOS CA 95030-72116900CAMERONBLV841-17-10099UNITED NATURAL FOODS WEST INC P.O. BOX 990 MINNEAPOLIS MN 55406VENTUREWA841-17-121100AMAZON DATA SERVICES INC PO BOX 80416 SEATTLE WA 98108-0416PACHECO PASSHW841-18-082101GILROY LOGISTICS LLC 19700 S VERMONT AVE UNIT TORRANCE CA 90502951RENZLN841-18-095102GILROY LOGISTICS LLC 19700 S VERMONT AVE UNIT TORRANCE CA 90502981RENZLN841-18-096103MARQUEZ, PRISCILLA A 402 HADLEY CT GILROY CA 95020-5839402HADLEYCT841-53-032104NGUYEN, THU TAM 2673 MCLAUGHLIN AVE SAN JOSE CA 95121-2752HOOVERCT841-53-066105PARKS JOHN TRUSTEE 17036 AVALON BLVD CARSON CA 90746HOLLOWAYRD841-70-005106NAZEMI MOHAMMED H AND PO BOX 3249 SANTA CLARA CA 95055SILACCIWY841-70-012107GILROY PARTNERS LLC 67 MOUNTAIN BLVD UNIT 201WARRENNJ07059850HOLLOWAYRD841-70-026108TEMPLE GILROY LLC 527 SIMAS DR MILPITAS CA 95035-47236970CAMINO841-70-049109SIEMPRE SOBRE EL DINERO LLC 190 N MONTGOMERY ST SAN JOSE CA 951105885ROSSILN841-72-0011105885ROSSILN841-72-001111PULMUONE FOODS USA INC 2315 MOORE AVE FULLERTON CA 92833560ROSSICT841-72-008112PULMUONE FOODS USA INC 2315 MOORE AVE FULLERTON CA 928335855ROSSILN841-72-009113PULMUONE FOODS USA INC 2315 MOORE AVE FULLERTON CA 928335835ROSSILN841-72-010114PULMUONE FOODS USA INC 2315 MOORE AVE FULLERTON CA 928335815ROSSILN841-72-011115BERRY JAMIESON LLC PO BOX 1802 GILROY CA 95021LUCHESSAEAVE841-73-005116HOANG, VINCE AN TRI 5240 MONTEVERDE LN LINCOLN CA 956485980TRAVEL PARKCR841-75-011117SEALAKE CORPORATION 20310 ARGONAUT DR SARATOGA CA 95070-4304300OBATACT841-79-006118Page 5Santa Clara County Weed Abatement Program118 records of 118Page 104 of 193
4.6.
City of Gilroy
STAFF REPORT
Agenda Item Title: Acceptance of the Cash and Investment Report as of
December 31, 2025
Meeting Date: February 9, 2026
From: Harjot Sangha, 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 cash and investment report as of December 31, 2025
BACKGROUND
The quarterly investment reports are prepared pursuant to the City's investment policy
to keep the City Council apprised of the City's investment activities.
ANALYSIS
As of December 31, 2025, the City's cash and investments totaled $191.0 million, of
which primary investments include: $36.6 million in the Local Agency Investment Fund
(LAIF), $87.5 million in US Treasury securities, $24.1 million in other Federal Agency
non-amortized, and $28.2 million in the California CLASS PRIME Fund.
In addition, there is approximately $14.6 million in cash, of which $14.3 million is held by
Fiscal Agents in the Trustee capacity for various bond issues, including bond proceeds,
debt service reserves, bond principal and interest payments, and other post-
employment benefits (OPEB) and pensions. The majority of this balance held by fiscal
agents ($6.9 million) consists of the City of Gilroy's share of the Acquisition and
Construction Funds for the SCRWA Plant Expansion Project, and the remaining portion
Page 105 of 193
4.6.
primarily consists of the Section 115 Trusts for OPEB and pension ($7.0 million). The
fiscal year-to-date interest earnings are $3.8 million, which includes accrued interest as
well as amortization of the discount on the securities held, with an effective rate of
return of 4.1%, excluding monies held with fiscal agents.
ALTERNATIVES
None.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the quarterly cash and
investment report. This is an activity included in the Finance Department's annual work
plan.
Attachments:
1. Investment Report 12-31-2025_Draft 1.27.2026-signed
Page 106 of 193
City of Gilroy
investment report
december 2025
Page 107 of 193
TABLE OF CONTENTS
1.PORTFOLIO SUMMARY REPORT..........................................................................................1 - 3
2.INVESTMENTS BY ISSUER REPORT................................................................................... 4 - 6
3 INVESTMENT ACTIVITY…………………………………………………………………………….. 7 - 8
4.QUARTERLY MOVEMENT OVER THE LAST TWELVE MONTHS........................................ 9
5.MOVEMENT OVER THE LAST TWO YEARS - GRAPHICAL PRESENTATION.................... 10
6.INVESTMENT PORTFOLIO - GRAPHICAL PRESENTATION................................................ 11 - 12
7.INTEREST EARNINGS: FISCAL YEARS 2016 - 2026............................................................ 13
Page 108 of 193
City of Gilroy
Portfolio Management
December 31, 2025
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
Portfolio Summary
% of
Portfolio
Book
ValueInvestmentsMarket
Value
Par
Value
Days to
MaturityTerm
YTM
360 Equiv.
YTM
365 Equiv.
LAIF 36,597,171.94 120.75 4.034136,597,171.9436,597,171.94 4.090
Federal Agency Non-Amortized 24,100,000.00 62913.66 4.00944324,099,101.0024,100,000.00 4.065
Treasury Notes Securities 87,519,112.97 44749.62 3.99218887,661,647.5587,639,400.00 4.048
California Class 28,169,197.53 115.97 3.824128,169,197.5328,169,197.53 3.877
176,385,482.44 100.00%Investments 176,527,118.02176,505,769.47 308 154 3.976 4.032
Cash
(not included in yield calculations)
Passbook/Checking 14,600,099.38 1 0.000114,600,099.3814,600,099.38 0.000
190,985,581.82Total Cash and Investments 191,127,217.40191,105,868.85 308 154 3.976 4.032
Current Year
December 31
601,275.20
Fiscal Year To Date
3,782,131.50
Average Daily Balance
Effective Rate of Return
188,461,192.84 195,784,415.08
3.83%3.76%
Total Earnings Month Ending
6 Month T-Bill Benchmark:3.50%
NOTES:
1. Fiscal Year To Date Effective Rate of Return without Monies held with Fiscal Agents = 4.13%
2. The Maturity Aging Factor of the City's Portfolio = 5.13 months.
3. The unrealized gain resulting from an increase in Market Values obtained from U.S. Bank of all Securities (excluding LAIF) = $141,635.58
4. The LAIF balance shown includes $5,929,637 in bond proceeds from the Gilroy Library 2010 Bonds that can be used exclusively for the construction of the library.
This is to certify that this schedule of investments is in compliance with the City of Gilroy's investment policy and that there are adequate funds available to meet the City's budgeted and actual expenses for
the next six months.
__________________________________________________ ____________________
Harjot Sangha, Finance Director
Reporting period 07/01/2025-12/31/2025
Page 1 of 13
02/01/2026
Page 109 of 193
YTM
365Par Value Book Value
Maturity
Date
Stated
RateMarket Value
December 31, 2025
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Gilroy
Days to
Maturity
YTM
360CUSIPInvestment #
Purchase
Date
LAIF
4.090LAIF - City of GilroyLAIF01 21,642,809.96 21,642,809.96 4.09021,642,809.96 4.034SYSLAIF01 1
4.090LAIF - Industrial Dev. Auth.LAIF03 9,024,724.63 9,024,724.63 4.0909,024,724.63 4.034SYSLAIF03 1
4.090LAIF LIBRARYLAIF05 5,929,637.35 5,929,637.35 4.0905,929,637.35 4.034LAIF05 1
36,597,171.94 4.03436,597,171.9436,597,171.9433,197,171.94Subtotal and Average 4.090 1
Federal Agency Non-Amortized
4.420Federal Home Loan Bank BoardUSB-28 11,250,000.00 11,250,000.00 02/04/20274.42002/07/2025 11,250,900.00 4.3593130B4XH9 399
3.755Federal Home Loan Bank BoardUSB-32 12,850,000.00 12,850,000.00 04/27/20273.75510/31/2025 12,848,201.00 3.7033130B8D25 481
24,100,000.00 4.00924,099,101.0024,100,000.0024,100,000.00Subtotal and Average 4.065 443
Treasury Notes Securities
4.562U. S. TREASURY NOTESUSB-25 10,092,000.00 10,058,888.14 01/31/20260.37507/31/2024 10,065,760.80 4.49991282CBH3 30
4.236U. S. TREASURY NOTESUSB-26 9,694,000.00 9,694,074.57 01/31/20264.25010/31/2024 9,697,877.60 4.17891282CJV4 30
4.216U. S. TREASURY NOTESUSB-27 20,000,000.00 19,781,658.59 04/30/20260.75001/31/2025 19,816,600.00 4.15891282CBW0 119
3.833U. S. TREASURY NOTESUSB-30 9,910,000.00 9,939,832.35 07/31/20264.37504/30/2025 9,956,180.60 3.78191282CLB5 211
4.019U. S. TREASURY NOTESUSB-31 20,246,400.00 20,262,844.11 10/31/20264.12507/31/2025 20,332,852.13 3.96491282CLS8 303
3.586U. S. TREASURY NOTESUSB-33 8,328,000.00 8,374,675.59 01/31/20274.12510/31/2025 8,379,716.88 3.53791282CMH1 395
3.650U. S. TREASURY NOTESUSB-34 9,369,000.00 9,407,139.62 07/31/20264.37510/31/2025 9,412,659.54 3.60091282CLB5 211
87,519,112.97 3.99287,661,647.5587,639,400.0087,482,490.98Subtotal and Average 4.048 188
California Class
3.877California ClassCLASS 28,169,197.53 28,169,197.53 3.87728,169,197.53 3.824CLASS PRIME 1
28,169,197.53 3.82428,169,197.5328,169,197.5328,079,733.16Subtotal and Average 3.877 1
3.976188,461,192.84 176,505,769.47 4.032 154176,527,118.02 176,385,482.44Total and Average
Page 2 of 13
Page 110 of 193
YTM
365Par Value Book Value
Stated
RateMarket Value
December 31, 2025
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
City of Gilroy
Days to
Maturity
YTM
360CUSIPInvestment #
Purchase
Date
Monies Held by Fiscal Agents
0.000U. S. BANKCONSTRUCTION 6,931,317.21 6,931,317.2107/01/2025 6,931,317.21 0.000WASTEWATER BOND 1
0.000U. S. BANKINT FUND 126.54 126.5407/01/2025 126.54 0.000LEASE REV 2020A 1
0.000U. S. BANKINTE FUND 156.64 156.6407/01/2025 156.64 0.000LEASE REV 2022A 1
0.000U. S. BANKPRIN FUND 452.44 452.4407/01/2025 452.44 0.000LEASE REV 2020A 1
0.000U. S. BANKPRINC FUND 818.53 818.5307/01/2025 818.53 0.000LEASE REV 2022A 1
0.000U. S. BANKPYMT FUND 1,436.15 1,436.1507/01/2025 1,436.15 0.000WASTEWATER BOND 1
0.000U. S. BANKRESERVE FUND 294,306.54 294,306.5407/01/2025 294,306.54 0.000CFD HWY 152 1
0.000U. S. BANKREVENUE FUND 238.50 238.5007/01/2025 238.50 0.000LEASE REV 2020A 1
0.000U. S. BANKSPECIAL TAX 6,338.12 6,338.1207/01/2025 6,338.12 0.000CFD HWY 152 1
Section 115 Trust Held by PARS
0.000Public Agency Retirement ServiOPEB 1,447,703.77 1,447,703.7707/01/2025 1,447,703.77 0.000OPEB 1
0.000Public Agency Retirement ServiPENSION 5,585,564.88 5,585,564.8807/01/2025 5,585,564.88 0.000PENSION 1
Wells Fargo Checking
0.000WELLS FARGOWELLS FARGO 57,725.08 57,725.0857,725.08 0.000SYSWFB 1
Other Banks-Misc.Account-Petty Cash
0.000CHASE BANKUNDERCOV 698.30 698.3007/01/2025 698.30 0.000SYSUNDERCOV 1
0.000MUFG / UNION BANKMUFG 0.00 0.0007/01/2025 0.00 0.000SYS/MUFG 1
0.000PETTY CASHPETTY 2,661.56 2,661.5607/01/2025 2,661.56 0.000SYSPETTY 1
0.000U. S. BANKUSB-CASH 21,367.33 21,367.3307/01/2025 21,367.33 0.000SYS/USBANK 1
0.000WELLS FARGOBAIL 0.00 0.0007/01/2025 0.00 0.000SYSBAIL 1
0.000WELLS FARGODISCOVERY 147,397.08 147,397.0807/01/2025 147,397.08 0.000SYSDISCOVERY 1
0.000WELLS FARGOICS 100,195.71 100,195.7107/01/2025 100,195.71 0.000SYSICS 1
0.000WORKING CASHWORKING 1,595.00 1,595.0007/01/2025 1,595.00 0.000SYSWORKING 1
0.00
3.976188,461,192.84 191,105,868.85 4.032 154
1Average Balance
191,127,217.40 190,985,581.82Total Cash and Investments
Page 3 of 13
Page 111 of 193
City of Gilroy
Investments by Issuer
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
Sorted by Type
Active Investments
December 31, 2025
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date CollateralCUSIPInvestment #
Investment
Class
YTM
365Book Value
CHASE BANK
698.30UNDERCOVSYSUNDERCOV 1Other Banks-Misc.Account-Petty Cash Fair 12/31/2025698.30
698.30698.30Subtotal and Average 1
California Class
28,169,197.53CLASSCLASS PRIME 13.877California Class Fair 12/31/2025 3.87728,169,197.53
28,169,197.53 3.87728,169,197.53Subtotal and Average 1
Federal Home Loan Bank Board
11,250,900.00USB-283130B4XH9 02/04/20263994.420Federal Agency Non-Amortized Fair 02/04/202712/31/2025 4.42011,250,000.00
12,848,201.00USB-323130B8D25 04/27/20264813.755Federal Agency Non-Amortized Fair 04/27/202712/31/2025 3.75512,850,000.00
24,099,101.00 4.06524,100,000.00Subtotal and Average 442
LAIF - City of Gilroy
21,642,809.96LAIF01SYSLAIF01 14.090LAIFFair 12/31/2025 4.09021,642,809.96
21,642,809.96 4.09021,642,809.96Subtotal and Average 1
LAIF - Industrial Dev. Auth.
9,024,724.63LAIF03SYSLAIF03 14.090LAIFFair 12/31/2025 4.0909,024,724.63
9,024,724.63 4.0909,024,724.63Subtotal and Average 1
LAIF LIBRARY
5,929,637.35LAIF05LAIF05 14.090LAIFFair 12/31/2025 4.0905,929,637.35
5,929,637.35 4.0905,929,637.35Subtotal and Average 1
MUFG / UNION BANK
0.00MUFGSYS/MUFG 1Other Banks-Misc.Account-Petty Cash Fair 0.00
0.000.00Subtotal and Average
Public Agency Retirement Servi
1,447,703.77OPEBOPEB 1Section 115 Trust Held by PARS Fair 12/31/20251,447,703.77
5,585,564.88PENSIONPENSION 1Section 115 Trust Held by PARS Fair 12/31/20255,585,564.88
Page 4 of 13
Page 112 of 193
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date Collateral
Sorted by Type
Investments by Issuer
City of Gilroy
CUSIP Investment #
Investment
Class
YTM
365Book Value
7,033,268.657,033,268.65Subtotal and Average 1
PETTY CASH
2,661.56PETTYSYSPETTY 1Other Banks-Misc.Account-Petty Cash Fair 12/31/20252,661.56
2,661.562,661.56Subtotal and Average 1
U. S. BANK
6,931,317.21CONSTRUCTIONWASTEWATER BOND 1Monies Held by Fiscal Agents Fair 12/31/20256,931,317.21
126.54INT FUNDLEASE REV 2020A 1Monies Held by Fiscal Agents Fair 12/31/2025126.54
156.64INTE FUNDLEASE REV 2022A 1Monies Held by Fiscal Agents Fair 12/31/2025156.64
452.44PRIN FUNDLEASE REV 2020A 1Monies Held by Fiscal Agents Fair 12/31/2025452.44
818.53PRINC FUNDLEASE REV 2022A 1Monies Held by Fiscal Agents Fair 12/31/2025818.53
1,436.15PYMT FUNDWASTEWATER BOND 1Monies Held by Fiscal Agents Fair 12/31/20251,436.15
294,306.54RESERVE FUNDCFD HWY 152 1Monies Held by Fiscal Agents Fair 12/31/2025294,306.54
238.50REVENUE FUNDLEASE REV 2020A 1Monies Held by Fiscal Agents Fair 12/31/2025238.50
6,338.12SPECIAL TAXCFD HWY 152 1Monies Held by Fiscal Agents Fair 12/31/20256,338.12
21,367.33USB-CASHSYS/USBANK 1Other Banks-Misc.Account-Petty Cash Fair 12/31/202521,367.33
7,256,558.007,256,558.00Subtotal and Average 1
U. S. TREASURY NOTES
10,065,760.80USB-2591282CBH3 300.375Treasury Notes Securities Fair 01/31/202612/31/2025 4.56210,058,888.14
9,697,877.60USB-2691282CJV4 304.250Treasury Notes Securities Fair 01/31/202612/31/2025 4.2369,694,074.57
19,816,600.00USB-2791282CBW0 1190.750Treasury Notes Securities Fair 04/30/202612/31/2025 4.21619,781,658.59
9,956,180.60USB-3091282CLB5 2114.375Treasury Notes Securities Fair 07/31/202612/31/2025 3.8339,939,832.35
20,332,852.13USB-3191282CLS8 3034.125Treasury Notes Securities Fair 10/31/202612/31/2025 4.01920,262,844.11
8,379,716.88USB-3391282CMH1 3954.125Treasury Notes Securities Fair 01/31/202712/31/2025 3.5868,374,675.59
9,412,659.54USB-3491282CLB5 2114.375Treasury Notes Securities Fair 07/31/202612/31/2025 3.6509,407,139.62
87,661,647.55 4.04887,519,112.97Subtotal and Average 188
WELLS FARGO
57,725.08WELLS FARGOSYSWFB 1Wells Fargo Checking Fair 12/31/202557,725.08
0.00BAILSYSBAIL 1Other Banks-Misc.Account-Petty Cash Fair 0.00
147,397.08DISCOVERYSYSDISCOVERY 1Other Banks-Misc.Account-Petty Cash Fair 12/31/2025147,397.08
100,195.71ICSSYSICS 1Other Banks-Misc.Account-Petty Cash Fair 12/31/2025100,195.71
305,317.87305,317.87Subtotal and Average 1
WORKING CASH
Page 5 of 13
Page 113 of 193
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date Collateral
Sorted by Type
Investments by Issuer
City of Gilroy
CUSIP Investment #
Investment
Class
YTM
365Book Value
1,595.00WORKINGSYSWORKING 1Other Banks-Misc.Account-Petty Cash Fair 12/31/20251,595.00
1,595.001,595.00Subtotal and Average 1
191,127,217.40 3.723190,985,581.82Total and Average 142
Page 6 of 13
Page 114 of 193
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Purchases Report
Sorted by Type - Type
October 1, 2025 - December 31, 2025
Original
Par Value
Ending
Book Value
Sec.
TypeType
Maturity
YTM
Accrued Interest
at PurchasePayment Periods DateCUSIPInvestment #Issuer
Purchase
Date
Principal
Purchased
Rate at
Purchase
NOT CALLABLE
12,850,000.00 3.755 04/27/2027 12,850,000.0012,850,000.00 5,361.3110/31/2025 3.75504/27 - 10/27FHLBUSB-323130B8D25 FACNOT
8,328,000.00 4.125 01/31/2027 8,374,675.598,382,001.88 85,882.5010/31/2025 3.58601/31 - 07/31USTNUSB-3391282CMH1 TRCNOT
9,369,000.00 4.375 07/31/2026 9,407,139.629,418,346.52 102,473.4410/31/2025 3.65001/31 - 07/31USTNUSB-3491282CLB5 TRCNOT
Subtotal 30,631,815.2130,650,348.40 193,717.2530,547,000.00
30,650,348.40Total Purchases 30,547,000.00 193,717.25 30,631,815.21
Page 7 of 13
Page 115 of 193
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Maturity Report
Sorted by Maturity Date
Amounts due during October 1, 2025 - December 31, 2025
Rate
at MaturityPar Value
Sec.
TypeType
Maturity
Date
Maturity
ProceedsInterest Income
Net
CUSIP Investment #Issuer
Purchase
Date
Book Value
at Maturity
9,294,000.00 5.000 9,526,350.00232,350.0001/31/2024USTNUSB-2091282CJE2 TRCNOT 10/31/2025 232,350.009,294,000.00
10,461,900.00 0.250 10,474,977.3813,077.3807/31/2024USTNUSB-2491282CAT8 TRCNOT 10/31/2025 13,077.3810,461,900.00
20,001,327.38Total Maturities 19,755,900.00 245,427.3819,755,900.00 245,427.38
Page 8 of 13
Page 116 of 193
DESCRIPTION Mar Jun Sep Dec % of Total
2025 2025 2025 2025 Dec
LAIF:
CITY OF GILROY 37,894,655 47,832,701 20,484,576 21,642,810 12.27%
GILROY INDUSTRIAL DEV AGENCY 8,734,209 8,830,459 8,927,205 9,024,725 5.12%
GILROY LIBRARY 2010 BOND 5,738,756 5,801,996 5,865,563 5,929,637 3.36%
SUB TOTAL 52,367,619 62,465,156 35,277,345 36,597,172 20.75%
CALIFORNIA CLASS 27,285,684 27,583,616 27,884,665 28,169,198 15.97%
US GOVERNMENTAL AGENCIES:
FEDERAL AGENCY NON-AMORTIZED - 21,250,000 21,250,000 24,100,000 13.66%
TREASURY NOTES SECURITIES 108,566,845 88,234,366 89,208,746 87,519,113 49.62%
SUB TOTAL 108,566,845 109,484,366 110,458,746 111,619,113 63.28%
GRAND TOTAL (Book Value)188,220,147 199,533,138 173,620,756 176,385,482 100.00%
Quarterly Movement of Investments over the Last 4 Quarters
Page 9 of 13
Page 117 of 193
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
December
2023
March
2024
June
2024
September
2024
December
2024
March
2025
June
2025
September
2025
December
2025
City of Gilroy
Investments From:
December 31, 2023 to December 31, 2025
LAIF CALIFORNIA CLASS US GOVT. AGENCIES
Page 10 of 13
Page 118 of 193
LAIF, $37M, 19%
California Class, $28M, 15%
Federal Agency Non-
Amortized, $24M, 12%
Treasury Notes Securities,
$88M, 46%
Monies Held with Fiscal
Agents, $7M, 4%
OPEB -Sec 115 Trust,
$1M, 1%
Pension -Sec 115 Trust,
$6M, 3%
Cash or Equivalent, $0M, 0%
Book Value by Investment Type
As of December 31, 2025
Value of Portfolio: $190,985,582
Page 11 of 13
Page 119 of 193
LAIF, CA Class, Bank Checking
Accounts, $65M, 34%
Monies Held with Fiscal Agent,
$7M, 4%
Section 115 Trust Held by PARS,
$7M, 4%
Short Term (less than 1 year),
$79M, 41%
Medium Term (1 to 5 years),
$32M, 17%
Value of Portfolio: $190,985,582
Portfolio By Maturity
As of December 31, 2025
Page 12 of 13
Page 120 of 193
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 est*
Interest Earnings
Fiscal Years
*Estimate of full year interest earnings for FY25/26
City of Gilroy
Interest Earnings FY2016 - FY2026
Page 13 of 13
Page 121 of 193
5.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Consider Extending the Urgency Interim Ordinance
Prohibiting the Issuance of Tobacco Retailer Permits
Citywide for a Period of Ten (10) Months and Fifteen (15)
Days
Meeting Date: February 9, 2026
From: Harjot Sangha, 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 15061(b)(3) of the CEQA
Guidelines;
2. Direct the City Clerk to read the ordinance extending the Urgency Interim
Ordinance by title only and to waive further reading;
3. Review, approve and issue the 10-day report as required by Government Code
Section 65858(d) for the extension of the Urgency Interim Ordinance; and
4. Adopt an ordinance extending the Urgency Interim Ordinance to prohibit the
issuance or approval of any new Tobacco Retailer Permit Citywide for an
additional ten (10) months and fifteen (15) days, with the associated findings.
EXECUTIVE SUMMARY
Due to a significant increase in tobacco retail establishments in Gilroy in recent years,
the City Council approved an urgency interim ordinance that prohibits issuing new
tobacco retailer permits citywide. The urgency interim ordinance lasts for 45 days.
Staff recommends extending the urgency interim ordinance to allow time to develop
Page 122 of 193
5.1.
appropriate City regulations, such as defining “smoke shop” either in the City of Gilroy
municipal or zoning code and determining suitable locations for the proposed use.
These changes require further study and public hearings with the Planning Commission
and City Council, which cannot be completed before the urgency interim ordinance
expires on February 19, 2026. This action extends the expiration date to January 3,
2027.
Staff plans to return to 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. The City Council may also direct staff to process a
municipal code amendment addressing tobacco retailer permits.
BACKGROUND
On October 20, 2025, staff was directed to add an urgency interim ordinance to the
November 3 City Council agenda to prohibit new smoke shops in the downtown area.
Because neither the City of Gilroy’s municipal or zoning code defines “smoke shops,”
staff prepared an ordinance prohibiting the issuance of tobacco retailer permits within
the downtown area for Council review.
On November 3, 2025, the City Council voted unanimously to adopt Ordinance No.
2025-08, an urgency interim ordinance prohibiting the issuance of tobacco retailer
permits for a period not to exceed forty-five (45) days within the downtown area.
On December 8, 2025, the City Council unanimously adopted Ordinance No. 2025-11 to
extend the prohibition on new tobacco retailer permits in the downtown area for an
additional 10 months and 15 days, as the urgency interim ordinance was set to expire.
Staff was also directed to draft a second urgency interim ordinance to prohibit issuing
new tobacco retailer permits citywide.
On January 5, 2026, the City Council voted unanimously to adopt Ordinance No. 2026-
01, an urgency interim ordinance of the City of Gilroy prohibiting the issuance of
tobacco retailer permits citywide for a period not to exceed forty-five (45) days. This
ordinance is set to expire on February 19, 2026.
ANALYSIS
California Government Code Section 65858 allows 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 reviews of a proposed general plan,
specific plan, or zoning change. The City of Gilroy exercised this authority by adopting
Ordinance 2025-08 in November 2025 and Ordinance 2026-01 in January 2026.
Pursuant to Government Code Section 65858(d), the City must issue a written report
Page 123 of 193
5.1.
(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 interim ordinance. Staff have included the required 10-day
Report as Attachment 2 of this staff report, and has issued the report on January 30,
2026, on the City's website, meeting the minimum 10-day requirement.
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 urgency interim ordinance to allow time for
adequate staffing, public outreach, further study of effective tobacco retailer monitoring
practices, and the development of appropriate zoning and land use amendments. Plans
include public hearings and creating opportunities for community input to ensure
transparency. Staff recommends that the City Council extend the urgency interim
ordinance to support the opportunity to find comprehensive solutions that protect the
public health and welfare of Gilroy residents. In the interim, the City is actively
addressing tobacco retailers operating without a permit.
ALTERNATIVES
Allow the urgency interim ordinance to expire and resume processing new tobacco
retailer permit applications under current City regulations.
FISCAL IMPACT/FUNDING SOURCE
Implementing new municipal or zoning regulations and drafting ordinances require staff
time and resources. These activities are usually funded by the City’s General Fund. If
the urgency interim ordinance on tobacco retailers is enacted, it will not affect existing
permitted tobacco retailers.
PUBLIC OUTREACH
The notice for the City Council meeting was published in the Gilroy Dispatch on January
23, 2026. Public hearing packets with this staff report are available on the City’s
website for viewing.
NEXT STEPS
If approved, the extended ordinance will go into effect immediately and last until
January 3, 2027. This time extension will provide the Community Development
Page 124 of 193
5.1.
Department and our internal partners with adequate time to determine standards and
best practices to regulate tobacco retailer uses through changes to the general plan,
specific plan, or zoning code and municipal code.
Attachments:
1. Proposed Extension of Urgency Interim Ordinance
2. 10-day Report
Page 125 of 193
Attachment 1
ORDINANCE NO. 2026-XX
AN EXTENSION OF AN URGENCY INTERIM ORDINANCE OF THE CITY OF
GILROY PROHIBITING THE ISSUANCE OF TOBACCO RETAILER PERMITS
CITYWIDE FOR A PERIOD NOT TO EXCEED TEN (10) MONTHS AND FIFTEEN (15)
DAYS
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 and licenses for uses that may be in conflict with a contemplated
general plan, 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 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
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
Page 126 of 193
Ordinance No. 2026-XX
Extension of Prohibition on Issuance of Tobacco Retailer Permits
City Council Regular Meeting | February 9, 2026
Page 2 of 5
-2-
San Benito County; and
WHEREAS, the prevalence of tobacco retail establishments 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 city; and
WHEREAS, tobacco retail stores have been a source of unlawful activities in the
City, including April 2025, when 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 would result
in and exacerbate that threat to public health, safety and welfare; and
WHEREAS, on January 5, 2026, the City Council adopted an urgency interim
ordinance prohibiting the issuance of Tobacco Retailer Permits within the City of Gilroy
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
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; and
WHEREAS, on February 9, 2026, in accordance with State law, the City Council
Page 127 of 193
Ordinance No. 2026-XX
Extension of Prohibition on Issuance of Tobacco Retailer Permits
City Council Regular Meeting | February 9, 2026
Page 3 of 5
-3-
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 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
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 citywide, 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.
Page 128 of 193
Ordinance No. 2026-XX
Extension of Prohibition on Issuance of Tobacco Retailer Permits
City Council Regular Meeting | February 9, 2026
Page 4 of 5
-4-
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.
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 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).
Page 129 of 193
Ordinance No. 2026-XX
Extension of Prohibition on Issuance of Tobacco Retailer Permits
City Council Regular Meeting | February 9, 2026
Page 5 of 5
-5-
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 9th day of
February 2026, 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 130 of 193
10-Day Report
on the City of Gilroy 45-day Urgency Interim Ordinance prohibiting the issuance of
tobacco retailer permits citywide pending the study and development of reasonable
regulations pursuant to Government Code Section 65858(d)
BACKGROUND
On January 5, 2026, pursuant to Government Code Section 65858, the City Council of
Gilroy adopted Ordinance No. 2026-01, 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 citywide moratorium on new tobacco retailer permits while a study is conducted and
new regulations are developed.
Government Code Section 65858(d) requires the City to issue a written report on
measures taken to address the conditions that led to the moratorium at least 10 days
before the 45-day ordinance expires. Issuing this report fulfills the requirements of Section
65858(d). The 45-day moratorium will expire on February 19, 2026.
Measures taken to alleviate the conditions that led to the adoption of the urgency interim
ordinance:
1. The City has established an internal team to develop new general plan, specific
plan, or zoning code and municipal code modifications relating to the location and
land use involved in licensing and use related to tobacco retailers. The team will
ensure compliance with current laws, identify illegal tobacco sales — particularly
those involving minors and illegal substances — and review police activity to detect
crime patterns. Based on its findings, the team will recommend ways to modify the
general plan, specific plan, or zoning code and municipal code to strengthen the
City’s enforcement.
2. City staff are reviewing municipal and zoning codes from California cities to identify
best practices and develop effective regulations for certain tobacco retailers. The
aim is to reduce tobacco sales to minors and limit the spread of illegal substances.
These actions were taken during a brief period. However, current conditions require
extending the urgency interim ordinance to allow staff sufficient time to complete analysis
and research, ensuring the protection of public health, safety, and welfare for all Gilroy
residents.
CONTINUED NEED FOR THE URGENCY INTERIM ORDINANCE
Staff continue to address the need for the urgency interim ordinance. Under Council
direction, staff are developing regulations for tobacco retailers, including defining and
potentially prohibiting smoke shops in certain zoning districts, requiring use permits in
specific areas, addressing underage access, public notification of licenses, and retailer
Page 131 of 193
proliferation. These regulatory changes require further research and public hearings
before the Planning Commission and City Council, which cannot be completed within
the initial 45-day period. Staff therefore recommend that the City Council extend the
current moratorium for 10 months and 15 days. Unless extended, the moratorium will
expire on February 19, 2026. This extension will allow staff sufficient time to return to
Council with proposed municipal code amendments or a zoning code update.
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 February 9, 2026.
The City will publish the required notice for this meeting pursuant to Government Code
§ 65090.
Page 132 of 193
9.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Receive an Update and Provide Direction Regarding a
Potential Transient Occupancy Tax (TOT) Rate Increase
Ballot Measure for the November 2026 Election
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Finance
Submitted by: Harjot Sangha, Finance Director
Prepared by: Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization
RECOMMENDATION
1. Receive the update;
2. Direct staff to pursue a general-purpose TOT rate ballot measure;
3. Determine whether to conduct a community survey to gauge support;
4. Provide feedback on drafting the “Ballot Question”; and
5. Direct staff to pursue a not-to-exceed tax rate structure and determine the not-to-
exceed tax rate.
BACKGROUND
The Transient Occupancy Tax (TOT) is a local tax applied to guests staying in hotels,
motels, and similar lodging facilities for periods of 30 days or less. In Gilroy, the TOT
was established to generate revenue to support general City services and has been a
source of discretionary funding, and is governed by Chapter 25A- Transient Occupancy
Tax, of the Gilroy City Code (Code).
As part of the Fiscal Year 2025-26 (FY26) and 2026-27 (FY27) biennial budget
development and Council strategic planning sessions, Council expressed a desire to
review the City’s existing TOT rate and ordinance, particularly because Gilroy has one
of the lowest TOT rates in the County.
Page 133 of 193
9.1.
On September 15, 2025, staff presented a report (attached) to the City Council outlining
the history of the City’s TOT rates, which are currently 9% and have remained
unchanged since 1983. Staff also provided the City’s historical TOT revenue trends
from FY19 through FY25, and a comparison of TOT rates across other Cities in Santa
Clara County, which confirmed Gilroy has one of the lowest TOT rates in the County.
The average TOT rate in the County is 11.7%, and the median TOT rate is 12.0%,
excluding Tourism Business Improvement District (TBID) assessments.
Staff also provided an update on the City’s TBID renewal efforts which are currently
under way and will come before the City Council for action to renew the TBID for
another ten (10) year term. Visit Gilroy indicated they are currently undergoing the
petition process.
At the same meeting, Council directed staff to pursue a TOT rate increase for the
November 2026 election and to evaluate cities that have recently succeeded in
approving a not-to-exceed cap rate, and whether such ballot measure language should
be pursued by Gilroy. Certain Council members also expressed interest in pursuing it as
a general tax versus a special tax, which has separate voter approval requirements.
ANALYSIS
General Tax versus Special Tax
When pursuing a ballot measure, one of the first determinations is how the funds will be
used, which guides whether to pursue it as a General Tax or a Special Tax, as each has
different features.
The table below outlines the key differences.
Feature General Tax Special Tax
Use of Funds Any lawful purpose Restricted to the stated purpose
Voter Approval Threshold Majority (50% +1) Two-thirds (66.67%)
Budget Flexibility High Limited
Election Viability (success) Higher Lower
Statewide November 2024 Local Revenue Measures
For analysis, staff reviewed statewide November 2024 local revenue measures and
identified 28 Transient (Lodging) Occupancy Tax measures placed before voters. These
measures were pursued by cities and counties seeking to adjust their hotel/lodging tax
rates to address general municipal service needs.
Page 134 of 193
9.1.
Staff have attached Exhibit A to the staff report, which outlines the various agencies in
California that pursued TOT rate changes in November 2024, the rate changes pursued,
the rate structure (set rate increase vs. not-to-exceed), and the results. The list is sorted
from highest to lowest “Yes” passage percentage. Below is a summary snapshot of the
2024 TOT Measures.
Metric Result
Total TOT Measures Statewide 28
Measures Passed 23 (82%)
Measures Failed 5 (18%)
Average “Yes” Vote (Passed
Measures) 68.4%
Typical Rate Adjustment Range 2%–4% increase
All Measures Structured As General Purpose Taxes (Majority Vote
Required)
Rate Structure: Set Rate Increase 23 (82%)
Rate Structure: Not-to-exceed 4 (14%)
Key observations:
• Success rate - 82% success rate among TOT ballot proposals.
• All measures pursued were general-purpose tax - Given the strong success rate of
general-purpose TOT measures in 2024 and the operational flexibility they provide,
the data supports a policy recommendation to pursue any future TOT adjustment
as a general tax measure where revenues may be used for any lawful
governmental purpose.
• Average rate increase of 3% - Most measures involved modest adjustments in the
range of 2%–4%, suggesting that incremental increases are generally more viable
electorally than large jumps.
• The majority of measures, 82%, were structured as set rate increases - This
indicates that set rate measures remain the dominant and more common structure
statewide. However, jurisdictions are increasingly experimenting with maximum
authority models that allow councils future flexibility within a voter-approved cap.
• Voter support levels - Among the 23 measures that passed, the average “Yes” vote
was 68.4%, well above the simple majority threshold required for general taxes.
This demonstrates that increases in lodging taxes, when appropriately designed,
tend to receive strong voter approval, often because the tax is largely borne by
visitors rather than residents.
• Ballot Language (High-Performing Measures)
o Highest Passing Set-Rate Measure – Menlo Park – Passed with 83.7% and
was structured as an increase to a specific new TOT rate.
o Highest Passing Not-to-Exceed Measure – Del Rey Oaks – Passed with
76.4% and was structured as an increase of TOT up to a specified
maximum rate.
Page 135 of 193
9.1.
With respect to the Council’s interest in evaluating other cities within the County that may
have a not-to-exceed TOT rate, staff reviewed and determined that Los Altos is the only
jurisdiction in the County that currently has a not-to-exceed cap structure, with a current
TOT not-to-exceed rate of 14%, approved with the 2018 general municipal elections.
Lodging Operator Survey on Potential TOT Ballot Measure and Partner Input
As part of the public outreach effort, staff conducted a brief survey of local lodging
operators and solicited input from the Chamber of Commerce and Visit Gilroy, with a
response deadline of Friday, January 30, 2026, at 5 pm. The survey sought feedback
from operators regarding the potential changes, including the not-to-exceed rate structure
and specific TOT rates. The summarized results are attached to the staff report. The City
received a total of nine (9) responses.
Key observations:
• 56% of the respondents were aware that the City Council is considering a TOT rate
increase.
• 56% of the respondents oppose the City potentially increasing the TOT rate, and
22%, or 2, remained neutral/needing more information.
• 56% of the respondents supported a TOT rate increase between 10% and 12%,
and 44%, or 4, indicated they would not support an increase.
• The reasons cited for not supporting an increase included: making operators less
competitive compared to neighboring cities, hardship of existing revenue declines,
impacting local residents/harm to local businesses, and having an adverse effect
by driving visitors away to other neighboring cities like Morgan Hill and Hollister.
• Not-to-exceed Rate Structure: 78% of the respondents indicated they would not
support a not-to-exceed rate structure, and 22%, or 2, indicated possibly/needing
more information.
• 44% of respondents indicated an increase in TOT rate will have a significant
impact, followed by 33% indicating a moderate impact, and 22% indicated they
were unsure.
• The reasons cited for significant and moderate impact include: low margins on
existing room rates, driving business away from Gilroy, and making Gilroy less
competitive. It is important for Gilroy to remain in line with or below cities like
Morgan Hill and Hollister.
Chamber of Commerce – Staff received input from the Chamber of Commerce Board via
its Executive Director, summarized below.
• Supportive of a 2% increase, bringing the TOT rate to 11%, aligned with Morgan
Hill’s current TOT rate.
• Recommends the funds be earmarked for a specific purpose, such as public
safety.
• Does not recommend a cap over 2% and believes the general public may not vote
favorably with the presumption City would be inclined to raise it to the maximum
cap immediately even if there is a phased approach.
Page 136 of 193
9.1.
• Overall, it recognizes that Gilroy has the lowest TOT rate in the County, and being
aligned with Morgan Hill and earmarked for public safety would garner support.
Visit Gilroy – Visit Gilroy assisted the City in communicating its survey and conducted
outreach to engage lodging operators. Based on information received from the Executive
Director, the Visit Gilroy Board did not formally take a position but did have informal
discussions and seemed to be split, with certain opposing and while others not being
opposed to the TOT rate increase, as long as it does not surpass neighboring
jurisdictions, such as Morgan Hill.
Community Survey
Staff were unable to easily determine whether each agency conducted a formal
community poll or survey before placing its measures before the voters. Most measures
appeared to have been advanced based on fiscal analyses, revenue forecasts, Council
policy direction, public meetings/hearings, and stakeholder outreach. Menlo Park was the
only jurisdiction determined to cite results from a formal community survey as a rationale
for placing its TOT measure on the ballot. While not required, polling can provide strategic
insights and entails additional time and cost considerations, ranging from $40,000 to
$60,000 for a statistically sound, comprehensive survey. It is believed that jurisdictions
without polling can still achieve strong passage rates, particularly when structured as a
general-purpose tax, with modest rate adjustments and clear messaging that the tax is
paid primarily by visitors. Council is being asked to determine whether a community
survey should be conducted as part of the ballot measure process.
Ballot Measure Questions Examples
Menlo Park
The ballot title for Measure CC was as follows:
“To maintain critical City services, such as: street/ pothole repair; park/
recreation programs; enhance emergency preparedness for storms, flooding,
wildfires; police 911 emergency response/preparedness; storm drain
maintenance; and for general government use; shall the City of Menlo Park
measure be adopted raising the transient occupancy (hotel) tax from 12
percent to 15.5 percent, paid only by hotel/ lodging guests until ended by
voters, providing an estimated $3,600,000 annually, that cannot be taken by
Sacramento, including citizen oversight?”
Del Rey Oaks
The ballot title for Measure R was as follows:
Page 137 of 193
9.1.
“Shall the measure to protect city services including police and fire, parks,
bicycle and pedestrian safety, roadways and storm drains, by increasing the
Transient Occupancy Tax up to 4%, raising up to $60,000 in additional yearly
revenue the State cannot take away, and taxing rent charged to “hotel”
guests, including by online travel and short-term rental companies, for
transient occupancy, with annual independent audits, until ended by voters,
be adopted?”
The City’s ballot questions can be crafted in a similar manner but must adhere to certain
requirements: Must be clear and impartial, cannot exceed 75 words, and must state what
the tax does, who pays it, estimated annual revenue, use of funds (general vs. specific),
and duration (sunset clause).
Recommendation
Staff recommends that the City Council:
1. Direct staff to pursue a general-purpose TOT ballot measure.
2. Determine whether a community survey should be conducted.
3. Direct staff to pursue a “not-to-exceed” rate structure to provide future flexibility,
while still setting a transparent voter-approval ceiling.
4. Target a moderate rate adjustment consistent with statewide norms and as
suggested by partner agencies, with increases in the 2%-4% range. Each 1%
increase in TOT is estimated to generate approximately $0.2 million in additional
General Fund revenue. The current average TOT rate in the County is 12%, and
the average rate pursued at the 2024 statement TOT ballot measures was 13%.
Staff recommends Council not pursue a TOT rate higher than 13%.
ALTERNATIVES
1. The City Council could decide to pursue the ballot as a special-purpose tax with
either a “not-to-exceed’ or “set rate increase” rate structure. This alternative is not
recommended as the special-purpose tax would require the Council to determine
the restricted purpose for which the funds are to be used, carry a higher voter
approval threshold, provide limited budget flexibility, and lower election viability.
FISCAL IMPACT/FUNDING SOURCE
There is no direct fiscal impact of receiving this update. However, the following fiscal
impacts have been identified based on the Council's potential decision-making.
• Community Survey – $40,000 to $60,000. If Council decides to direct staff to
conduct a community survey, staff will solicit proposals from qualified firms and
initiate the community survey as soon as possible to have the results available
Page 138 of 193
9.1.
within the next couple of months to help inform the decision to place the ballot
measure or not at the November 2026 election.
• Ballot Measure – $100,000. This cost estimate is for the County of Santa Clara
Registrar of Voters to place the ballot measure on the November 2026 election.
• Other legal and administrative costs for drafting the resolutions and ballot
materials.
If the ballot measure passes, each 1% increase in the TOT rate is expected to generate
approximately $0.2 million in additional General Fund revenue.
PUBLIC OUTREACH
City staff conducted outreach to key stakeholders, including lodging operators, the
Chamber of Commerce, and Visit Gilroy. If the Council ultimately decides to put the
ballot measure on the November 2026 election, City staff’s role would be limited to only
providing education information regarding the measure, and City staff cannot engage in
promoting or opposing the ballot measure utilizing City resources or while on the ”job”.
Efforts can be led by the City Council or community members, individually or through a
formed advisory group.
NEXT STEPS
Staff will return to Council with the proposed ballot question and the related resolutions
necessary for adoption, formally placing the initiative on the November 2026 ballot. The
last date to submit the measure resolution to the Santa Clara County Registrar of Voters
is Friday, August 7, 2026. Staff will plan to return to Council for formal action by April
2026. Should the Council decide to pursue a community survey, which will likely delay
the timeline by another two months, however, it would still be achievable by June 2026.
Attachments:
Exhibit A – 2024 Statewide Local Revenues Measures – TOT
Exhibit B – Lodging Operator Survey
Exhibit C – Written responses to Lodging Operator Survey
Page 139 of 193
EXHIBIT A
California Local Revenue Measure Results November 2024
Transient (Lodging) Occupancy Taxes
All pursued as general purpose (majority approval)
Reference Agency Name County Measure Rate Increase Rate Changed To Yes % Result Structure (Set Rate Increase vs. Not-to-exceed)
1 Menlo Park San Mateo Measure CC 3.5% 15.5% 83.70% PASS Set rate increase (12% → 15.5% over 2 years)
2 Fort Bragg Mendocino Measure U 2% 14% 81.50% PASS Set rate increase (12% → 14%)
3 Newark Alameda Measure LL 4% 15% 80.40% PASS Set rate increase (10% → 14%)
4 Pacifica San Mateo Measure M 3% 15% 77.10% PASS Set rate increase (12% → 15%)
5 Del Rey Oaks Monterey Measure R 4% 14% 76.40% PASS Not-to-exceed / max authority (increase up to +4%)
6 Monterey Park Los Angeles Measure RG 1% 13% 76.20% PASS Set rate increase (12% → 13%)
7 Hemet Riverside Measure N 2% 15% 75.90% PASS Set rate increase (10% → 12%)
8 Carpinteria Santa Barbara Measure B 3% 15% 75.60% PASS Set rate increase (12% → 15%)
9 Dunsmuir Siskiyou Measure A 2% 12% 72.60% PASS Set rate increase (10% → 12%)
10 Del Mar San Diego Measure QM 71.50% PASS No rate change (collection/modernization)
11 County of Alpine Alpine Measure G 4% 14% 68.80% PASS Set rate increase (10% → 14%)
12 Fairfield Solano Measure M 2% 12% 67.90% PASS Set rate increase (10% → 12%)
13 Santa Rosa Sonoma Measure F 2% 11% 67.60% PASS Set rate increase (9% → 11%)
14 Solvang Santa Barbara Measure E 2% 14% 67.20% PASS Set rate increase (12% → 14%)
15 County of Santa Barbara - Uninc Santa Barbara Measure H 2% 14% 67.10% PASS Set rate increase (12% → 14%)
16 Auburn Placer Measure F 2% 10% 65.50% PASS Set rate increase (8% → 10%)
17 Mammoth Lakes Mono Measure L 2% 15% 63.80% PASS Set rate increase (13% → 15%)
18 County of Mono - Uninc Mono Measure Q 3% 15% 60.60% PASS Set rate increase (12% → 15%)
19 Rancho Cucamonga San Bernardino Measure Q 2% 12% 57.80% PASS Set rate increase (10% → 12%)
20 McFarland Kern Measure D 6% 12% 56.30% PASS Set rate increase (6% → 12%)
21 Buellton Santa Barbara Measure D 2% 14% 54.20% PASS Not-to-exceed / max authority (increase up to 14%)
22 Hollister San Benito Measure Y 4% 12% 52.60% PASS Set rate increase (8% → 12%)
23 Coachella Riverside Measure V 4% 15% 52.10% PASS Not-to-exceed / max authority (voter-approved max 13%)
24 Mission Viejo Orange Measure Y 4% 12% 46.70% FAIL Set rate increase (8% → 12%)
25 Avenal Kings Measure B 44.10% FAIL Set rate (to 15%) as part of multi-tax measure
26 County of San Bernardino - Uninc San Bernardino Measure K 4% 11% 43.40% FAIL Set rate increase (7% → 11%)
27 Ukiah Mendocino Measure W 3% 13% 42.00% FAIL Set rate increase (10% → 13%)
28 Turlock Stanislaus Measure C 5% 14% 37.60% FAIL Not-to-exceed / max authority (up to 14%)
Average of All 3% 13% 63.8%
Average of "Pass" 3% 14% 68.4%
Average of "Fail" 4% 13% 42.8%
Page 1 of 1
Page 140 of 193
City of Gilroy – Lodging Operator Survey on Potential TOT
Ballot Measure
1.Before receiving this survey, were you aware that the City Council is considering
a TOT rate increase?
2.Overall, how would you describe your position on the City potentially increasing
the TOT rate?
9 Responses 11:39 Average time to complete Closed Status
Yes 5
No 4
Support 2
Oppose 5
Neutral/ Need more informati…2
EXHIBIT B
https://forms.cloud.microsoft/Pages/AnalysisPage.aspx?AnalyzerToken=NKijKrolgJSjNUjrTiBo8FwWZYxMOeSh&id=Kqnq2OHgHkG3h9W_LqSF…1/4Page 141 of 193
3.The City’s current TOT rate is 9%, which is the lowest amongst the cities in the
County. What TOT rate increase, if any, would you support? (Select all that apply)
4.If you do not support an increase, please briefly state why:
Increase to 10%2
Increase to 11%2
Increase to 12%1
Increase to 13%0
Increase to 14%0
Increase to 15%0
No Increase 4
Other 0
Latest Responses
"Dear Mayor and Members of the Gilroy City Council, I am …
"Taxes are simply a money grab "
5
Responses
Microsoft Forms
https://forms.cloud.microsoft/Pages/AnalysisPage.aspx?AnalyzerToken=NKijKrolgJSjNUjrTiBo8FwWZYxMOeSh&id=Kqnq2OHgHkG3h9W_LqSF…2/4Page 142 of 193
5.Would you support a ballot measure that sets a maximum TOT rate (e.g., not to
exceed 15%), while allowing the City Council to adjust the rate up or down over
time within that cap?
6.If yes or possibly, what “not-to-exceed” cap should be considered?
Yes 0
No 7
Possibly - Need more informa…2
11%3
12%1
13%0
14%0
15%0
I would not support a cap stru…4
Other 1
Microsoft Forms
https://forms.cloud.microsoft/Pages/AnalysisPage.aspx?AnalyzerToken=NKijKrolgJSjNUjrTiBo8FwWZYxMOeSh&id=Kqnq2OHgHkG3h9W_LqSF…3/4Page 143 of 193
Microsoft Forms | AI-Powered surveys, quizzes
and polls Create my own form
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use (https://go.microsoft.com/fwlink/?linkid=866263)
7.How would an increase in the TOT rate likely impact your lodging business?
8.Please briefly explain the reason for your response above:
9.Do you have any additional comments, concerns, or suggestions regarding the
potential TOT ballot measure?
Minimal to no impact 0
Moderate impact 3
Significant impact 4
Unsure 2
Latest Responses
"As long as Gilroy is in line or slightly below Morgan Hill a…
"Companies that do work in the area set their bids for cont…
"It would drive away business "
9
Responses
Latest Responses
"This increase is just another tax on not just tourist but on t…3
Responses
Microsoft Forms
https://forms.cloud.microsoft/Pages/AnalysisPage.aspx?AnalyzerToken=NKijKrolgJSjNUjrTiBo8FwWZYxMOeSh&id=Kqnq2OHgHkG3h9W_LqSF…4/4Page 144 of 193
Exhibit C
Written Responses to Lodging Operator Survey
• Question 4: If you do not support an increase, please briefly state why:
o "Dear Mayor and Members of the Gilroy City Council,
I am writing as a concerned resident and taxpayer to express my strong
opposition to any proposed increase to the Transient Occupancy Tax (TOT) in
the City of Gilroy. While I understand the city’s desire to increase revenue for
essential services, raising the lodging tax is not the responsible or effective
solution that residents deserve.
Higher lodging taxes can drive visitors — and revenue — away.
A proposed transient lodging tax hike could deter visitors and companies that
work in the area to neighboring areas, harming local tourism and related
jobs. Raising TOT could make the city less competitive compared to nearby
destinations, decreasing occupancy rates for local hotels and motels.
Gilroy is known for its budget friendly accommodations which attract both
leisure and business travel. We compete with cities beyond Morgan Hill and
Hollister. By having a lower tax rate than these cities we can attract stays
away from them and still have the same result in tax revenue via occupancy
and overall volume of guests. These guests also then utilize the businesses
in the city ranging from gas stations, restaurants to the big box stores.
Rather than imposing higher taxes on visitors, Gilroy should focus first on
improving budgeting efficiency and ensuring that existing revenues are spent
with full transparency and accountability.
For all these reasons, I urge the City Council to reject any increase to the TOT
lodging tax and pursue alternative revenue strategies that do not risk harming
our local hospitality industry or deterring visitors to Gilroy.
Thank you for your consideration.”
o “Impacting local residents, harm to local businesses, burden, and overall
generate more revenue.”
o “Makes us less competitive”
o “Our revenues have dropped 50% from last 7 years, from the highest of
$1,500,000 to $780,000 last year 2025. We are not even breaking even
instead loosing money year after year, you all have the quarterly reports at
Page 145 of 193
Exhibit C
the city look at it, also I can come to the city with the reports. Please explain
how this increase in TOT is going to help hotel owners.”
o “Taxes are simply a money grab”
• Question 8: Please briefly explain the reason for your response above:
(Response to how would an increase in TOT rate likely impact your lodging
business)
o “As long as Gilroy is in line or slightly below Morgan Hill and Hollister, we
should no be at a competitive disadvantage.”
o “Companies that do work in the area set their bids for contracts with
expected expenses. We get companies that work in other cities but stay in
gilroy due to the lower overall cost. By increasing the tax rate it hits the
companies bottom line so they would simply find cheaper options. The
effect would be for hotels in Gilroy to lower their rates and take the hit or risk
losing the business which would end up with lower overall tax and ancillary
revenue to the City of Gilroy.”
o “Customers don’t want to pay extra rate if they don’t have to”
o “Hard to say but it makes us less competitive than nearby cities like morgan
hill”
o “It would drive away business”
o “Lower rates inclusive of taxes might actually attract more travelers and
generate more overall revenue.”
o “Our rates are $109 after all the commissions/fees and franchise royalties
are paid out, we are getting $60 on this we are paying utilities, 24 hour front
desk to housekeepers, & maintenance person. We have cut our payroll by
laying off our manger and running the hotel ourself. This is not the time to
increase TOT when all the hotels are at the lowest revenue ever.”
o “Traveling people might see cheaper prices might stay to our city if we have
same price to our souring city they might there not to our city who knows we
have more people staying for that reason.”
• Question 9: Do you have any additional comments, concerns, or suggestions
regarding the potential TOT ballot measure?
o “I know the city is hurting, because of all the outlets closing. We need to
figure out another way to bring revenue to the city.”
o “It’s hard for low budget hotels customers try to save more money wild they
travel or come stay for work related”
Page 146 of 193
Exhibit C
o “This increase is just another tax on not just tourist but on the citizens of
gilroy as well and would continue to increase the cost of living in our city.”
Page 147 of 193
6.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Selection and Appointment of Planning Commissioner to Fill
One (1) Remaining Open Seat
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Administration
Submitted by: Kim Mancera, City Clerk
Prepared by: Kim Mancera, City Clerk
STRATEGIC PLAN GOALS:
RECOMMENDATION
Select one of the two remaining candidates for appointment to the Planning
Commission to fill the existing vacancy.
EXECUTIVE SUMMARY
BACKGROUND
At the January 26, 2026, City Council Regular Meeting, the City Council considered
appointments to the Planning Commission. The Council’s vote resulted in a tie between
two (2) remaining candidates. As no appointment was made, the item has been brought
back to the City Council for further consideration and selection.
At the conclusion of interviews during the January 26, 2026, City Council Regular
Meeting, the City Council proceeded to vote on the appointment. The vote resulted in a
tie between the following two candidates:
• Britt Smith
Page 148 of 193
6.2.
• Payman Khodabandeh
Due to the tie vote, no appointment was finalized, and the vacancy remains unfilled.
ANALYSIS
Both remaining candidates met the qualifications for service on the Planning
Commission and demonstrated an interest in contributing to the City’s planning and
development goals. During the original meeting, Council Members expressed support
for both candidates, which led to the tie vote.
To ensure the Planning Commission can continue to operate with a full commission, the
vacancy must be filled.
ALTERNATIVES
None.
FISCAL IMPACT/FUNDING SOURCE
None.
PUBLIC OUTREACH
NEXT STEPS
Council will make the appointment to the Planning Commission.
Attachments:
1. Smith, Britt - Planning Commission_Redacted
2. Khodabandeh, Payman - Planning Commission_Redacted
Page 149 of 193
Boards/Committees/Commissions Application
01/08/2026 8:00 PM (PST)
Boards/Committees/Commissions Application Form
Planning Commission
Britt
Smith
Gilroy
CA
95020
Yes
Mobile
My background in communications, including brand, social media, SEO, PR, and
events makes me uniquely positioned to ensure that the public is made aware of
city plans for development.
While I have no prior appointments, my service to the community of Gilroy
includes my high school involvement in Gilroy High School ASB and the Gilroy-
Takko Student Exchange Program. More recently I have worked to mobilize and
raise awareness in regards to the Gilroy Data Center project, earning +600
signatures on our petition and +37,000 views across channels in 8 days. Aside
from these more formal activities, on my regular walks along the levee, I pick up
litter left by others.
I will prioritize transparency and community engagement, specifically committing
to bring development projects beyond City Hall and meeting the community where
they are by partnering with local businesses to host Town Hall meetings and
Teach-Ins across districts.
My background in community organizing, extensive marketing/communications
career, and lifelong support of my hometown makes me uniquely qualified for this
appointment. After four years of active engagement with Gilroy High School ASB
and leadership, during my undergraduate career I served as the Chief of Staff to
Submission ID: 0c228355-78e6-489d-9940-0e023a2c4287 Page 1/2Page 150 of 193
the Chair of the Student Union Assembly at UC Santa Cruz and co-chair of the
Women's Caucus within the United States Student Association, while earning my
degree in Sociology. My professional background in marketing, including social
media, PR, and crafting bespoke experiences will ensure the community is
informed about all potential development projects.
I agree.
01/08/2026
*All Commission, Board and Committee applications are a public record.
Submission ID: 0c228355-78e6-489d-9940-0e023a2c4287 Page 2/2Page 151 of 193
Boards/Committees/Commissions Application
01/17/2026 2:36 PM (PST)
Boards/Committees/Commissions Application Form
Planning Commission
Payman
Khodabandeh
Gilroy
CA
95020
Yes
Mobile
Personally, I have spent 13 years working in the tech industry, as a Global
Account Executive. I have an abundance of skills related to relationship building,
presentations, public speaking, and contract negotiations.
My roots are deeply tied to Gilroy and the community as my brother started his
business in Gilroy over 12 years ago. Having to spend plenty of time in Gilroy due
to my brother, I was quickly won over by the charm, community, and purchased
my own home roughly 2 years ago in the heart of Gilroy.
N/A
I want to be a pillar in my community, I firmly believe I can have a great impact in
the area I live and call home. My goal is to serve my community to best of my
capabilities, by ensuring we drive growth that aligns to our community long term
goals.
My interpersonal skills, relationship building, and background will allow me to be
very successful in this role. With my personal roots in Gilroy its in my best interest
to make sure we are able to grow the community and support the current
residents. Especially with my background playing hockey in San Jose, I will be
Submission ID: 3a008c17-def0-4ef3-a9a0-6aa2b1664249 Page 1/2Page 152 of 193
able to support the upcoming hockey rink and planning to ensure we align with
our communities needs, wants, and future growth.
I agree.
01/17/2026
*All Commission, Board and Committee applications are a public record.
Submission ID: 3a008c17-def0-4ef3-a9a0-6aa2b1664249 Page 2/2Page 153 of 193
City of Gilroy
STAFF REPORT
Agenda Item Title: Abatement of Sixth Street Temporary Encampment on
APN: 841-18-089
Meeting Date: February 9, 2026
From: Scot Smithee, Interim Chief of Police
Department: Police Department
Submitted by: Scot Smithee, Interim Chief of Police
Prepared by: Luke Powell, Captain
STRATEGIC PLAN GOALS:
RECOMMENDATION
Provide direction to staff regarding how the City should proceed with the Sixth Street
temporary encampment, located on City-owned property (APN: 841-18-089) on the
south side of Sixth Street, west of Camino Arroyo Drive, including one of the following
options:
1. Direct staff to proceed with immediate abatement of the encampment, affirming
uniform enforcement of Ordinance No. 2023-07, establishing Chapter 5 of the
Gilroy City Code, banning the use of certain areas of public right-of-way as
sleeping or living accommodations; OR
2. Adopt a resolution suspending enforcement of Gilroy City Code Chapter 5 for a
period of time not to exceed ninety (90) days, authorizing the City to continue to
provide sanitation-related services (portable restrooms and solid waste removal)
to the temporary encampment during the suspension and abating the said
encampment after the suspension period.
EXECUTIVE SUMMARY
The City has an existing ordinance, adopted in 2023 (attached), that prohibits the use of
certain public rights-of-way as sleeping or living accommodations. The ordinance was a
result of Council priorities dating back to fiscal year 2022 for the unhoused community,
Page 154 of 193
when the Council formed an Unhoused Ad Hoc Committee to address some of the
challenges. After various discussions from 2022 through 2023, the Council ultimately
adopted the current ordinance in June 2023. Enforcement was originally discretionary
and subject to staffing and budgetary constraints, and has since become active.
The City Council is requested to provide policy direction regarding the future of an
unhoused encampment currently located on a small parcel of City-owned land (APN:
841-18-089) on the south side of Sixth Street, west of Camino Arroyo Drive. The
temporary encampment was established on the City parcel in response to the closure
of a long-term managed camp by Santa Clara Valley Water District (Valley Water) in
late 2025. The temporary camp was considered necessary to respond to immediate
humanitarian needs, notably impending inclement weather and major holidays, and as
a stopgap measure to allow the City to engage with Santa Clara County and Valley
Water on alternative short- and long-term options.
City staff concurrently held multiple discussions with Valley Water and Santa Clara
County to identify alternatives for interim and long-term programs and to assess the
feasibility of sites owned by each agency. The discussions included a site visit to a
Valley Water-owned property near the Sixth Street temporary encampment, where
Santa Clara County has raised several technical infeasibility issues. County staff also
shared prior experience with sanctioned encampments that faced significant
challenges. Those discussions have yet to yield substantive results or commitments, as
any interim or long-term option covering such a broad range of complex topics and
layered challenges will require sufficient time and research. However, interagency
discussions are ongoing to develop solutions and alternatives.
The encampment was permitted to establish with the clear understanding that the
location would be abated soon after January 1, 2026, pursuant to Chapter 5 of the
Gilroy City Code. The temporary allowance was communicated as short-term
humanitarian accommodation and not an endorsement of the location as a lawful or
permanent encampment site. Since opening, the City has incurred ongoing operational
costs to support health and safety needs at the site. The encampment was scheduled
for abatement on February 3, 2026. During City Council public comment on January 26,
2026, a request was made for a ninety (90) day extension of the abatement timeline.
Staff is seeking Council directions to:
1. Direct staff to proceed with immediate abatement of the encampment, affirming
uniform enforcement of Ordinance No. 2023-07, establishing Chapter 5 of the
Gilroy City Code, banning the use of certain areas of public right-of-way as
sleeping or living accommodations; OR
2. Adopt a resolution suspending enforcement of Gilroy City Code Chapter 5 for a
period of time not to exceed ninety (90) days, authorizing the City to continue to
provide sanitation-related services (portable restrooms and solid waste removal)
to the temporary encampment during the suspension and abating the said
encampment after the suspension period.
Page 155 of 193
BACKGROUND
History of Ordinance
The City has an existing ordinance, adopted in 2023 (attached), that prohibits the use of
certain public rights-of-way as sleeping or living accommodations. The ordinance was a
result of Council priorities dating back to fiscal year 2022 for the unhoused community,
when the Council formed an Unhoused Ad Hoc Committee to address related
challenges. After various discussions from 2022 through 2023, the Council ultimately
adopted the current ordinance in June 2023. Enforcement was originally discretionary
and subject to staffing and budgetary constraints, and has since become active. The
staff report from June 2023 has been included as an attachment, which discusses the
ordinance formation.
History of the Encampment
The Sixth Street temporary encampment is the result of successive displacements
across multiple jurisdictions, not a newly formed encampment. The individuals currently
residing at the Sixth Street temporary encampment are part of a long-standing group
that has relocated multiple times over several years following successive abatements
by various public agencies.
• Valley Water Property (Tomkins Court): The group was originally located on
Santa Clara Valley Water District (Valley Water) property near Tomkins Court.
From approximately 2020 through 2025, during the COVID-19 era,
encampments at this location were permitted but regulated by Valley Water.
During this period, the encampment existed adjacent to a food distribution site
operated by the Compassion Center, and over time, a semi-organized
community developed.
While the encampment remained open, Valley Water and partner agencies
dedicated approximately 20 staff hours per week to encampment management,
monitoring, and coordination.
In late 2025, Valley Water decided to close the encampment. In the month
leading up to the closure, approximately 54 hours of staff time were dedicated to
preparatory activities. During the week of the closure (November 3–7, 2025), an
estimated 100 staff hours were required to complete the abatement and
relocation efforts.
• County Property (North of Sixth Street): Following the Valley Water
abatement, the group relocated to County of Santa Clara property located west
of the County Public Health building, on the north side of Sixth Street, and west
of Camino Arroyo Drive.
o November 3, 2025: First call for service related to a single tent on the
property
Page 156 of 193
o November 4, 2025: Community Engagement Team (CET) responded to
multiple tents in the field (approximately 2 hours of staff time)
o November 12, 2025: Assisted County with closure notifications
(approximately 4 hours)
o November 14, 2025: Assisted County with enforcement and outreach
(approximately 6 hours)
o November 15, 2025: Assisted County with final closure activities
(approximately 6 hours)
After several weeks, Santa Clara County abated this encampment.
• Attempted Relocation to State Right-of-Way: Following the County
abatement, the group immediately attempted to relocate beneath the U.S.
Highway 101 and Sixth Street overcrossing. The California Highway Patrol
immediately directed the individuals to vacate the area due to safety concerns
and jurisdictional restrictions within the State right-of-way.
• Temporary Relocation to City Property (Sixth Street): On Saturday,
November 15, 2025, immediately preceding forecasted inclement weather and
major holidays (Thanksgiving, Christmas, and New Year’s), the City made a
discretionary and temporary decision to allow the group, approximately twenty
(20) individuals, to establish an encampment on a small City-owned parcel on
the south side of Sixth Street.
This decision was made with the explicit understanding that the location was
temporary and subject to abatement after the first of the year. City staff
concurrently held multiple discussions with Valley Water and Santa Clara County
to collaborate on interim programs and to explore feasibility of sites owned by
the respective agencies. The discussions included a site visit of a property
owned by Valley Water near the Sixth Street temporary encampment, which has
several technical infeasibilities raised by Santa Clara County (including the
property designated for agriculture use and partially being in a flood zone).
County staff also shared prior experience of sanctioned encampments facing
significant challenges. These discussions involving such a broad range of
complex topics and layered challenges will require adequate time and research.
Interagency discussions are ongoing to develop solutions and alternatives.
Since its establishment, the encampment has generated the following service
demand:
o One initial call for service related to a nearby business concern regarding
rodents and a reported stolen item from a trash bin
Page 157 of 193
o No subsequent calls for service to Police or Fire Departments
Ongoing City involvement has included:
o Approximately 1.5 staff hours per week for routine check-ins and monitoring
o Approximately 1.5 staff hours per week coordinating with community-based
organizations (PitStop, South County Community Services, and Carry the
Vision)
o Public Works Staff is performing solid Waste removal from the site and
general litter pick-up from the periphery every other business day; 5 hrs per
week. Portable restrooms are on site for use at the camp and are managed
by Public Works, at a monthly cost of $420.00, which includes once-a-week
cleaning and stocking. Public Works has ordered fold-down bollards, with an
anticipated installation date by March 13th, at the Camino Arroyo entrance to
preclude unauthorized vehicle access to the encampment. The bollards will
be delivered in the last week of February as the bollards are made to order.
Location Map: South side of Sixth Street, west of Camino Arroyo Drive. Encampment
location indicated in orange
Page 158 of 193
CURRENT CONDITIONS AT THE SITE
Representatives of the encampment assert it has functioned in an orderly manner since
its establishment in November 2025. They report:
• No calls for service to police or fire departments attributed to the encampment;
• Minimal complaints from surrounding businesses or residents;
• Efforts by residents to maintain cleanliness and order at the site.
• City staff can confirm that the City has incurred ongoing costs to support basic
sanitation and health measures at the site, including:
o Rental and servicing of portable restroom facilities; and
o Regular trash collection services multiple times per week.
While conditions may have remained generally stable, the encampment remains
inconsistent with existing municipal code provisions governing camping near City
infrastructure and public rights-of-way. While these conditions are noted, they do not
alter the site’s inconsistency with applicable municipal code provisions or eliminate the
City’s obligation to manage public property in a safe and lawful manner.
The site is directly adjacent to a dedicated bicycle and pedestrian path, which provides
access from Sixth Street to Camino Arroyo and the broader bicycle network. The
camp, at times, results in physical blockage of this path. Security concerns (perceived
or real) are undoubtedly impacting the use of this bicycle/pedestrian link.
ANALYSIS
Legal and Policy Considerations
The Gilroy Municipal Code Chapter 5 prohibits the use of public rights-of-way and City-
owned property as sleeping or living accommodations when such use interferes with
public safety, access, or infrastructure. Specifically, Gilroy Municipal Code Section 5.2
makes it unlawful to sit, lie, sleep, or store personal property in a street, sidewalk, or
other public right-of-way when it reasonably appears the area is being used as a
sleeping or living accommodation.
Section 5.2 further restricts camping or the placement of personal property within 100
feet of critical infrastructure, including but not limited to roadways, bridges, storm
drainage facilities, and similar public facilities, as well as areas necessary for safe
access, maintenance, and emergency response. The current encampment location on
Page 159 of 193
City-owned property directly abutting the Sixth Street Bridge, which falls within a
designated restricted area and is therefore not a lawful location for camping under the
Municipal Code.
Staff is seeking City Council direction on whether to temporarily suspend enforcement
of Gilroy Municipal Code Chapter 5 and continue sanitation efforts or to continue with
abatement in accordance with Chapter 5. The group has requested a 90-day delay in
enforcement. It is within the City Council’s authority to determine how and when
abatement occurs under Chapter 5 and to determine the length of the suspension of
enforcement on APN: 841-18-089.
Enforcement of Chapter 5 has been temporarily deferred to allow the City Council the
opportunity to discuss and provide direction. Absent explicit Council direction, staff will
proceed with scheduled abatement on February 18, 2026, consistent with Municipal
Code provisions governing camping near Sixth Street Bridge (City infrastructure).
Service Coordination and Housing Pathway Efforts
City staff, in coordination with County and nonprofit partners, have conducted ongoing
outreach to individuals residing at the encampment. These efforts have focused on
connecting individuals with available services and long-term housing pathways,
recognizing that housing availability and individual readiness vary.
Service engagement has included coordination with Santa Clara County Behavioral
Health and Office of Supportive Housing, as well as local nonprofit and outreach
organizations that provide case management, behavioral health referrals, and housing
navigation assistance. Outreach teams have offered services related to mental health
support, substance use treatment referrals, and connection to jobs, legal documents,
medical insurance, and shelter or interim housing resources where available.
As of the end of January 2026, Santa Clara County staff provided the following
regarding the residents at the Sixth Street temporary encampment:
o Most of the residents are enrolled in the County’s coordinated entry system.
This system connects individuals experiencing homelessness to housing
resources through an assessment process and a coordinated, prioritized
approach. A few have not made initial contact as service teams are still
attempting to engage.
o One resident moved into the Ochoa shelter. Another is currently in process.
o Six residents are moving into interim housing, while completing the process
and awaiting permanent supportive housing.
While some residents have engaged with service providers, others have declined or
deferred services, which is consistent with outreach efforts observed in similar
encampment settings. City staff will continue to coordinate with County and nonprofit
Page 160 of 193
partners during any Council-directed timeframe to encourage service participation and
transition toward more stable housing solutions.
Council Options and Risk Consideration
Council Option Benefits Risks / Considerations
Immediate Abatement
• Enforces existing
Municipal Code
• Eliminates ongoing
City costs (sanitation,
porta-potties)
• Reduces long-term
infrastructure and
liability risk
• Displacement without
guaranteed housing
options
• Potential public concern or
legal scrutiny
• Requires coordinated
outreach and notice
Postponement for a
period of time not to
exceed ninety (90)
days (Requested)
• Maximizes time for
housing navigation
efforts
• Aligns with service-
provider timelines
• May reduce
immediate
displacement impacts
• Increased City costs and
liability exposure
• Precedent for future
encampments and
selective versus uniform
enforcement
• Requires formal resolution
suspending code
enforcement
• No guarantee of housing
placement within the
timeframe
Conclusion
In conclusion, the staff is seeking Council policy direction on whether to uniformly
enforce Ordinance 2023-07 or to suspend enforcement at the Sixth Street encampment
site, specifically, or for a period not to exceed ninety (90) days.
Page 161 of 193
Each option carries operational, legal, fiscal, and humanitarian considerations that
require Council policy direction. Regardless of the option selected, staff seeks clear
Council direction to ensure actions taken are legally sound, operationally feasible, and
aligned with the City’s adopted policies and community expectations.
ALTERNATIVES
Council could direct staff to proceed with abatement on a specific future date (more
than ninety (90) days), providing additional advance notice to encampment residents
while maintaining a firm enforcement timeline.
FISCAL IMPACT/FUNDING SOURCE
Ongoing City costs associated with the encampment include sanitation services, waste
management, and staff time. Should Council direct a postponement of abatement,
these costs will continue for the duration of the authorized period. Immediate abatement
would reduce ongoing operational expenses but may increase short-term staff and one-
time contractor costs associated with enforcement and cleanup.
PUBLIC OUTREACH
City staff have been coordinating with Santa Clara County departments and nonprofit
service providers regarding individuals residing at the encampment. Outreach efforts
have focused on connecting residents with available services, including behavioral
health support, case management, and housing navigation.
To date, no formal City-led public outreach process has been conducted specific to this
staff report. However, at the January 26, 2026, Council meeting, Council received
public comment from the occupants of the encampment requesting an extension to the
abatement. Further, staff have received limited informal feedback indicating minimal
complaints from surrounding businesses or residents. Should Council direct a
postponement of abatement, staff will continue coordination with service providers and
monitor community impacts during the authorized period.
NEXT STEPS
Following City Council direction, staff will take the following actions, as applicable:
• If Council directs immediate abatement, staff will coordinate notice, outreach,
and enforcement actions in compliance with applicable law and City policy.
• If Council directs a postponement for a period of time not to exceed ninety (90)
days, staff will prepare and implement a resolution temporarily suspending
enforcement of applicable Municipal Code provisions at this specific location for
Page 162 of 193
the authorized period, while continuing outreach and reporting back as
appropriate, and abate the encampment after the suspension period.
Regardless of the option selected, staff will continue to coordinate with the County and
nonprofit partners to support service engagement and mitigate impacts associated with
encampment activity.
Attachments:
1. Ordinance 2023-07
2. June 2023 Ordinance Adoption Staff Report
3. Draft Resolution (If Council Directs Postponement)
Page 163 of 193
ORDINANCE NO. 2023-07
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GILROY ADDING CHAPTER 5 TO THE GILROY CITY
CODE RELATING TO BANNING THE USE OF CERTAIN
PUBLIC RIGHTS-OF-WAY AS SLEEPING OR LIVING
ACCOMMODATIONS
WHEREAS, the City Council of the City of Gilroy ("City") has considered the report
from City staff and all public comment(s), if any, on the need to enact an ordinance in
accordance with prohibiting the use of public rights-of-way as sleeping or living
accommodations; and
WHEREAS, the City finds that it has a legitimate and compelling interest in
protecting the public health, welfare and safety of its residents, as well as preserving the
same within the City, its parks and other public property; and
WHEREAS, the City must appropriately consider various interests and formulate
policy to best protect public health, safety, welfare, property, and the environment, with
limited resources; and
WHEREAS, the City Council acknowledges the lack of nightly shelter beds and
housing currently available regionally and recognizes the systemic lack of state and
federal investment in shelter and public health services for those experiencing
homelessness; and
WHEREAS, the City Council acknowledges that it is currently unavoidable that
some people will live or shelter for survival outdoors until they are able to access
affordable or free shelter or housing. In Gilroy, this has typically meant sheltering,
sometimes for extended periods of time, on City rights-of-way and City property, and at
times on other agencies’ property; and
WHEREAS, public rights-of-way and public property are generally intended for
public use and travel. The City Council is the authority for public rights-of-way within the
City; as such, the City must consider the safety of motorists and pedestrians travelling on
roadways and sidewalks, including to and from neighboring properties, businesses, and
residences. The City has had increasing concerns regarding safety due to camping on or
in rights-of way and public property in or near streets, roads, sidewalks, and public access
points; and
WHEREAS, the safety and protection of the most vulnerable population in Gilroy,
children, is of paramount concern to the City Council; and
WHEREAS, the City Council has heard reports from residents of negative
interactions between those using public rights-of-way as sleeping and living
accommodations and children travelling on paths towards, and locations near, schools
and parks; and
Page 164 of 193
Ordinance No. 2023-07
Banning the Use of Certain Public Rights-Of-Way as Sleeping or Living Accommodations
City Council Regular Meeting | June 19, 2023
Page 2 of 6
WHEREAS, the City has also been made aware of instances where encampment
locations near bridges in creeks have resulted in damaging activities that if had been left
unaddressed could have resulted in eventual infrastructure failure that would negatively
impact public safety; and
WHEREAS, the City Council recognizes the difficult challenge of balancing the
needs of the residents and public at large to access clean and sanitary public areas, as
well as the assurance of safe travel with the needs of individuals who have no alternatives
for living accommodations and the storage of their personal property, but also balancing
those needs with the concerns of residents that using such property as living and sleep
accommodations and storing personal property interferes with the rights of other
members of the public to use public areas for their intended purposes and can create a
public health or safety hazard that adversely affects those who use public areas.
WHEREAS, the City has determined that an ordinance is necessary to protect the
public health, welfare and safety of residents of the City, by enacting regulatory
restrictions on using public rights-of-way for sleeping or living accommodations at
designated locations; and
WHEREAS , the City will maintain a map showing the portions of the City impacted
by this ordinance, included and attached as Attachment A to this resolution; and
WHEREAS, the area affected by this ordinance accounts for 24.4% of the total
area of the City, leaving a large majority of the City’s total area, 75.6% in total, unaffected
by this ordinance; and
WHEREAS, the City now desires to proceed with the process of enacting this
ordinance for the purpose of protection of the public health, welfare and safety of its
residents.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
The foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION II
Chapter 5 of the Gilroy City Code shall be added to read as follows:
Chapter 5
Ban on the use of certain areas of public rights-of-way as sleeping or living
accommodations
Page 165 of 193
Ordinance No. 2023-07
Banning the Use of Certain Public Rights-Of-Way as Sleeping or Living Accommodations
City Council Regular Meeting | June 19, 2023
Page 3 of 6
5.1 Definitions
The definitions contained in this section shall govern the construction, meaning and
application of words and phrases used in this Chapter, and shall not apply to any other
Chapter of the Gilroy City Code.
a) "City Employee" means any full or part-time employee of the City of Gilroy.
b) “Personal Property” means any tangible property, and includes, but is not limited to,
goods, materials, merchandise, tents, tarpaulins, bedding, sleeping bags, hammocks,
sheds, structures, mattresses, couches, chairs, other furniture, appliances, and personal
items such as household items, luggage, backpacks, clothing, documents and
medication.
c) “Public right-of-way” means all property that is owned, managed, or maintained by the
City, or where the City possesses a property interest allowing public use of such property
such as a right-of-way interest), and shall include, but not be limited to, any public street,
space, ground, building or structure.
d) “Sidewalk” means that portion of a street, other than the roadway, set apart by curbs,
barriers, markings or other delineation, for pedestrian travel.
e) “Street” means a way or place of whatever nature, publicly maintained and open to the
use of the public for purposes of vehicular travel or parking, and includes every highway,
avenue, lane, alley, court, place, square, sidewalk, parking lot, parkway, curbs, bikeway
or other public way in this City which has been or may hereafter be dedicated and open
to public use, or such other public property so designated in any law of this state.
f) “Tent” means a collapsible shelter made of fabric or a tarp stretched and sustained by
supports, which is not open on all sides and which hinders an unobstructed view behind
or into the area surrounded by the fabric.
5.2 Prohibition of using public rights-of-way as sleeping or living accommodations.
a) Parks and playgrounds
No person shall obstruct by sitting, lying, or sleeping, or by storing, using, maintaining,
or placing personal property on a street, sidewalk, or other public right-of-way in the
following locations when it reasonably appears, in light of all the circumstances, the
participants in conducting these activities are in fact using the area as a sleeping or living
accommodation regardless of the intent of the participants or the nature of any other
activities in which they may also be engaging:
1. Within five hundred (500) feet of any park or playground. This prohibition applies all year,
overnight, on any weekends and weekdays, even when such facilities may be generally
considered closed.
b) Other public rights-of-way
Page 166 of 193
Ordinance No. 2023-07
Banning the Use of Certain Public Rights-Of-Way as Sleeping or Living Accommodations
City Council Regular Meeting | June 19, 2023
Page 4 of 6
No person shall obstruct by sitting, lying, or sleeping, or by storing, using, maintaining, or
placing personal property on a street, sidewalk, or other public right -of-way in the
following locations:
1. In a manner that impedes passage, as provided by the Americans with Disabilities Act of
1990, Pub. L, No. 101-336, 104 Stat. 328 (1990), as amended from time to time;
2. Within five hundred (500) feet of any school or daycare facility. This prohibition applies all
year, overnight, on any weekends and weekdays, even when such facilities may be
generally considered closed.
3. Within one hundred (100) feet of critical infrastructure, including water wells, storm drain
basins, railways, bridges and under- and over-passes.
4. Within ten (10) feet of any operational or utilizable building entrance, exit, driveway or
loading dock.
5. Within five (5) feet of any fire hydrant, fire plug, or other fire department connection.
6. In a manner that obstructs or unreasonably interfe res with the use of the right-of-way for
any activity for which the City has issued a permit.
7. In a manner that obstructs any portion of any street or other public right -of-way open to
use by motor vehicles, including any portion thereof marked as a bike lane.
8. City creeks and creek embankments within Gilroy City Limits.
5.3 Penalties
A violation of this section involving a person who willfully resists, delays, or obstructs a
City employee from enforcing this section or who willfully refuses to comply after being
requested to do so by a City employee shall be punishable as a misdemeanor. All other
violations of this section shall be enforceable only as infractions pursuant to Gilroy City
Code Section 1.7 or by issuance of an administrative citation pursuant to Gilroy City Code
Section 6A.13.
SECTION III
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason
held to be invalid or unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares
that it would have passed and adopted this ordinance, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases may be declared invalid or unconstitutional .
SECTION IV
This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby
Page 167 of 193
Ordinance No. 2023-07
Banning the Use of Certain Public Rights-Of-Way as Sleeping or Living Accommodations
City Council Regular Meeting | June 19, 2023
Page 5 of 6
directed to publish this Ordinance or a summary thereof pursuant to Government Code
Section 36933.
PASSED AND ADOPTED this 19th day of June 2023 by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, MARQUES, TOVAR,
BLANKLEY
NOES: COUNCIL MEMBERS: ARMENDARIZ
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILTON
APPROVED:
Marie Blankley, Mayor
ATTEST:
Thai Nam Pham, City Clerk
Marie Blankley (Jun 20, 2023 10:19 PDT)
Marie Blankley
Page 168 of 193
Ordinance No. 2023-07
Banning the Use of Certain Public Rights-Of-Way as Sleeping or Living Accommodations
City Council Regular Meeting | June 19, 2023
Page 6 of 6
ATTACHMENT A
Map of Affected Areas within the City Limits of Gilroy
Page 169 of 193
CERTIFICATE OF THE CLERK
I, THAI NAM PHAM, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance No. 2023-07 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 held on Council held Monday, June 19, 2023, at which meeting a quorum was
present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official
Seal of the City of Gilroy this Monday, June 19, 2023.
Thai Nam Pham, CMC, CPMC
City Clerk of the City of Gilroy
Seal)
Page 170 of 193
Page 1 of 8
City of Gilroy
STAFF REPORT
Agenda Item Title:Introduction and First Reading of an Ordinance of the
City Council of the City of Gilroy Adding Chapter 5 to
the Gilroy City Code Relating to Banning the Use of
Certain Public Rights-of-Way as Sleeping or Living
Accommodations
Meeting Date:June 5, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
1. Motion to read the ordinance by title only and waive further reading of the
ordinance; and
2. Introduce an ordinance of the City Council of the City of Gilroy adding Chapter 5
to the Gilroy City Code relating to banning the use of certain public rights-of-way
as sleeping or living accommodations.
BACKGROUND
The issue of the unhoused, both the conditions they face as well as the impacts on
communities, has been in the national spotlight for years and has been an issue that
sees increasing coverage in the media and in resident calls for service. The City Council
has discussed this topic and formed an Unhoused Ad Hoc Committee to help address
some of these challenges. Previous Council discussions on this matter include the
following:
•July 5, 2022 – Discussion was held about the unhoused and efforts to address
no-camping prohibitions. Council authorized the Gilroy Police Department
(“GPD”) to enforce no-camping ordinances on public property if it offers space at
Page 171 of 193
Introduction and First Reading of An Ordinance of the City Council of the City of Gilroy Adding
Chapter 5 to the Gilroy City Code Relating to Banning the Use of Certain Public Rights-of-Way as
Sleeping or Living Accommodations
City of Gilroy City Council Page 2 of 8 June 5, 20231
1
4
1
a homeless shelter to individuals beforehand and ensures that the particular
shelter that it is offering to connect the individual with could accommodate their
needs pursuant to The Americans with Disabilities Act (“ADA”). Additionally,
Council authorized City personnel to clean and clear encampments in public
parks and other public lands in compliance with a written protocol – GPD Police
Policy 411 – that provides a number of safeguards required by the Courts,
including outreach and notice to occupants, provision of social services,
photographic documentation, safeguarding of occupants’ personal property, and
the making available of shelter space for displaced occupants.
•September 12, 2022 – Discussion was held about what other cities have done
and that is consistent with the Boise decision and that an ordinance prohibiting
sitting, lying, or sleeping outside at particular times or in particular locations
would be constitutionally permissible. Staff received directions to bring back key
points for a potential ordinance that would prohibit camping in certain locations.
•March 20, 2023 – Discussion on draft key policy points for a potential ban on
what was referred to as camping in and near parks, schools, daycares, and
critical infrastructure. The Council provided feedback to staff on modifications to
be made and their concerns with the language. The ordinance for introduction
this evening was based on a modified policy outline based on Council’s
comments at this meeting.
•May 15, 2023 – Discussion was held regarding the proposed ordinance to obtain
direction if the ordinance was to proceed with introduction and a public hearing.
Discussion included the impact assessment of the ordinance and approach to
enforcement. The City Council directed no changes to the ordinance at this
meeting.
City Supported Services and Programs for the Unhoused
In addressing this issue overall, the City has and continues to help provide or coordinate
the provision of services and regulations to lessen impacts on the community. Some of
the work that the City has contributed towards this effort includes the following:
Work performed to coordinate and provide services to the unhoused:
•Support Affordable Housing Efforts – This includes the Measure A Housing
Project at the 8th and Alexander location and supporting the efforts alongside
Santa Clara County to bring additional affordable housing programs to Gilroy.
•Safe Parking Program – although the City was unable to identify a suitable
service provider, the project is still a standing recommendation for pursuit by the
City.
•Partner with the City of Morgan Hill – the City has been working with Morgan Hill
on emergency response and unhoused issues, including consistent inclement
weather sheltering policies and programs.
Page 172 of 193
Introduction and First Reading of An Ordinance of the City Council of the City of Gilroy Adding
Chapter 5 to the Gilroy City Code Relating to Banning the Use of Certain Public Rights-of-Way as
Sleeping or Living Accommodations
City of Gilroy City Council Page 3 of 8 June 5, 20231
1
4
1
•Continue supporting unhoused service providers through CDBG grant funding –
The City Council recently approved the most recent CDBG allocations to our
unhoused service providers on May 1, 2023.
•Coordinate monthly check-in meetings with lead unhoused service providers to
address local unhoused issues – Community Development staff has taken a
leadership position to help coordinate these meetings of service providers to help
provide services to the unhoused in the community.
•Endorsement of Destination Home’s Community Plan to End Homeless.
•Researching an agency to provide drug rehabilitation, job training, and job
placement services.
•Partner with the County Office of Supportive Housing – this has helped the City
to gain access to its federal Permanent Local Housing Allocation funding.
•Quality of Life Officers – hired two officers who are trained and tasked to both
help connect the unhoused to service providers and, when necessary, enforce
laws in and around encampments.
Work being performed to mitigate impacts:
•Mobile Garbage Removal Program – the City engaged a contractor to do select
cleanup activities, and now the City has concluded the hiring process to hire two
part-time employees to help with roving cleanup activities.
•Purchase of a garbage removal dump truck – this has assisted Code
Enforcement and other staffing in the garbage and illegal dumping cleanups.
•Organization of community cleanup days – this work continues, with two cleanup
events done, one on May 20th and continuing monthly.
Current Policy Restated
At the July 5, 2022 meeting, Council authorized the Gilroy Police Department (“GPD”) to
enforce no-camping ordinances on public property if it offers space at a homeless
shelter to individuals beforehand and ensures that the shelter that it is offering to
connect the individual with could accommodate their needs pursuant to the Americans
with Disabilities Act (“ADA”). Additionally, Council authorized City personnel to clean
and clear encampments in public parks and other public lands in compliance with a
written protocol – GPD Police Policy 411 – that provides several safeguards required by
the Courts, including outreach and notice to occupants, provision of social services,
photographic documentation, safeguarding of occupants’ personal property, and the
making available of shelter space for displaced occupants.
Initial Council Direction
The City had a meeting on September 12th where a discussion of the Los Angeles
ordinance was conducted. The ordinance, which sought to establish a no-camping ban
surrounding daycares and parks, was adopted by the City of Los Angeles but had not
yet taken force. At the conclusion of this meeting, staff received direction to bring back
key points for a potential ordinance that would prohibit unhoused camping in certain
locations. Generally, this included:
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•500 feet of schools, parks, daycares, playgrounds, and other locations where
children are expected.
•In areas with critical infrastructure.
•Locations that would restrict access to public safety or public infrastructure
locations.
•Creeks.
•Definition of camping.
ANALYSIS
Ordinance Overall
The basis for the ordinance, as discussed at previous meetings, is tied to language that
scaled back the breadth of the Boise decision. Legal challenges presented by the 2019
Boise decision restricted the ability of local agencies to enforce ordinances against
camping on public property. The key issue that was presented is the court decision
explaining that a municipality cannot criminalize sitting, sleeping, or lying in public “when
no sleeping place is practically available in any shelter.” However, there was language
that scaled back the breadth, as well as other courts elaborating on the limits, such as:
Naturally, our holding does not cover individuals who do have access to
adequate temporary shelter, whether because they have the means to pay
for it or because it is realistically available to them for free, but who choose
not to use it. Nor do we suggest that a jurisdiction with insufficient shelter
can never criminalize the act of sleeping outside. Even where shelter is
unavailable, an ordinance prohibiting sitting, lying, or sleeping outside at
particular times or in particular locations might well be constitutionally
permissible [emphasis added]. So, too, might an ordinance barring the
obstruction of public rights of way or the erection of certain structures.
Whether some other ordinance is consistent with the Eighth Amendment
will depend, as here, on whether it punishes a person for lacking the
means to live out the "universal and unavoidable consequences of being
human" in the way the ordinance prescribes. (Id. at 1136.)
Revisions
At the March 20, 2023 Regular Meeting, Council discussed the key policy points,
making changes and asking clarification questions. Topics of adjustments included the
inclusion of creeks, the need to refine language regarding the degree of prohibition in
parks, and a need for simplification when it came to critical infrastructure. At the May
15th meeting, a proposed ordinance was presented, which included these edits. No
further edits were directed.
Ordinance Provisions
The ordinance focuses on the ban on public rights-of-way. As defined in the proposed
ordinance, the public right-of-way is all property that is owned, managed, or maintained
by the City or where the City possesses a property interest allowing public use of such
property (such as a right-of-way interest) and shall include, but not be limited to, any
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public street, space, ground, building or structure. The enforcement provisions only
pertain to these areas. For example, if an individual is attempting to use property that is
not owned by the City, such as a creek owned by Santa Clara Valley Water District, the
City would not enforce against it under this ordinance since it is not a public right-of-
way.
Ordinance Prohibition Areas
Below is a brief description regarding the classifications that drive the prohibition areas
surrounding using public rights-of-way as sleeping or living accommodations. These
areas are described and analyzed in the staff report for the May 15, 2023 agenda item
regarding the proposed ordinance. All these prohibition area categories are contained
within the ordinance under Section 5.2, beginning on the third page of the attached
ordinance.
5.2(a) Parks and playgrounds
Parks and playgrounds are contained in the ordinance but with different language
regarding the ban from the other prohibition areas. The ordinance was modified from
the original language proposed on March 20, 2023. Originally combined into a single
category along with schools and daycares, parks were pulled out separately from the
others as a result of discussion with the City Council, wanting to make allowances for all
residents, housed and unhoused, to use the park in such a manner as is customary for
a park. There was a concern raised that the language of sitting, lying, and sleeping in
the park would limit the unhoused from using the park for its customary types of use. As
such, the language for this section was modified from the original proposal. The
language in the ordinance states:
No person shall obstruct by sitting, lying, or sleeping, or by storing, using,
maintaining, or placing personal property on a street, sidewalk, or other
public right-of-way in the following locations when it reasonably appears,
in light of all the circumstances, the participants in conducting these
activities are in fact using the area as a sleeping or living accommodation
regardless of the intent of the participants or the nature of any other
activities in which they may also be engaging:
1. Within five hundred (500) feet of any park or playground. This
prohibition applies all year, overnight, on any weekends and
weekdays, even when such facilities may be generally considered
closed.
This change allows for the use of the park for normal, non-camping park purposes while
not allowing camping in the park.
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5.2(b) Other public rights-of-way
This section identifies the other public rights-of-way that are prohibited from use as
sleeping or living accommodations. Each of these falls under this prohibition language:
No person shall obstruct by sitting, lying, or sleeping, or by storing, using,
maintaining, or placing personal property on a street, sidewalk, or other public
right-of-way in the following locations:
There are eight categories identified, each provided below. Of these, three are not tied
to any specific, fixed location, and two categories are too small and numerous to map
efficiently and effectively. Therefore, there are three of these categories that were used
to designate the prohibited areas on the map in Attachment A to the ordinance, in
addition to parks as mentioned above. They are identified with an (m) added to the end
of the categories below for mapped prohibition areas. The eight categories in this
section of the ordinance are as follows:
1. In a manner that impedes passage, as provided by the Americans with
Disabilities Act of 1990, Pub. L, No. 101-336, 104 Stat. 328 (1990), as amended
from time to time;
2. Within five hundred (500) feet of any school or daycare facility. This prohibition
applies all year, overnight, on any weekends and weekdays, even when such
facilities may be generally considered closed. (m)
3. Within one hundred (100) feet of critical infrastructure, including water wells,
storm drain basins, railways, bridges and under- and over-passes. (m)
4. Within ten (10) feet of any operational or utilizable building entrance, exit,
driveway or loading dock.
5. Within five (5) feet of any fire hydrant, fire plug, or other fire department
connection.
6. In a manner that obstructs or unreasonably interferes with the use of the right-of-
way for any activity for which the City has issued a permit.
7. In a manner that obstructs any portion of any street or other public right-of-way
open to use by motor vehicles, including any portion thereof marked as a bike
lane.
8. City creeks and creek embankments within Gilroy City limits. (m)
Overall Impact Information
The staff report for the May 15, 2023 City Council Regular Meeting provided an
extensive analysis of each mapped category and should be reviewed for that analysis.
Overall, the only currently known encampments within the prohibition area that are on
public rights-of-way are individuals located on the City-owned portion of Uvas Creek,
roughly estimated at between 75 and 100 individuals.
In totality, 24.4% of the total area contained within the City Limits falls within the
prohibition area under this ordinance, leaving 75.6% of the City’s total area not affected
by this ordinance, which is most of the total area of the City. The original report had
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31.6% of the total City area affected, however further map refinement requires an
adjustment to the percentage. Below is the breakdown from the City’s GIS data of the
total City area, and the total amount of area affected by this ordinance within the City
limits:
Prohibition Areas Acreage
Schools 1,073.43
Preschools and Daycares 526.22
Parks 1,526.28
Water Division Wells 25.20
Gilroy Bridges 31.12
Railroad – Only the portion in City Limits 119.35
Under and Over Passes 20.99
City portion of the Creek 28.25
Subtotal of Prohibition Coverage 3,350.84
Duplicate Area Adjustment within City Limits -762.97
Proposed Area Covered by Prohibition 2,587.87
City Limits 10,586.75
Percent of City Area Affected by Prohibition 24.44%
Percent of City Area Not Affected by Prohibition 75.56%
Enforcement
The ordinance does not criminalize sleeping in the open. It limits the locations,
prohibiting the use of certain public rights-of-way from being used as sleeping or living
accommodations. It provides that the only act subject to a misdemeanor is the refusal to
relocate from a prohibited area when instructed to do so by a City employee.
Once the ordinance is adopted, the Quality of Life Officers and Community
Development staff will engage our Local Service Providers Group to outreach to those
within the prohibited areas during the 30-day waiting period for the ordinance to become
effective. The intent is to allow the maximum time for accessing services from our local
and regional service providers and attempting voluntary compliance. Enforcement is
discretionary and subject to various staffing and budgetary constraints.
ALTERNATIVES
Council may choose to reject or modify the ordinance. Should Council determine to
modify the proposed ordinance, the introduction process would be restarted with a new
introduction and first reading.
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FISCAL IMPACT/FUNDING SOURCE
Adopting the ordinance will not have a financial impact on the City. The costs of
advertising the ordinance, as well as enforcement of such policies, will be carried out
through existing staff resources and financial resources that are already appropriated
each year.
PUBLIC OUTREACH
This subject has been discussed at multiple public meetings. These include the
following:
•July 5, 2022;
•September 12, 2022;
•March 20, 2023;
•May 15, 2023; and
•tonight’s meeting.
These discussions have focused on creating a policy to address unhoused individuals
utilizing parks, creeks, and other public areas as living and sleeping accommodations.
In addition, the City Council created an Unhoused ad hoc committee, which developed
14 recommendations to help both the unhoused and to mitigate the effects of the
unhoused on their neighboring communities.
Additionally, the City advertised this public hearing in the local newspaper and on the
City’s website.
Upon adoption, the City will finalize and release informational materials and maps of the
prohibited areas within City Limits and coordinate across departments to help maximize
the outreach to those affected by the ordinance, as well as the public.
NEXT STEPS
Once introduced, the ordinance will be placed on the June 19, 2023 City Council
Regular Meeting consent calendar for a second reading and adoption.
Attachments:
1. Proposed Ordinance with a map of affected areas as Attachment A.
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RESOLUTION NO. 2026 –
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
TEMPORARILY STAYING THE ENFORCEMENT OF CHAPTER FIVE OF THE
GILROY CITY CODE FOR THE 6TH STREET ENCAMPMENT LOCATED ON
ASSESSOR’S PARCEL NUMBER: 841-180-89
WHEREAS, 959 unhoused individuals in the City of Gilroy were counted in the
2025 Point-in-Time report issued by Santa Clara County, which is an 8% decrease from
the 1,048 individuals counted in 2023, yet continues to reflect a significant unmet need
for shelter and housing resources; and
WHEREAS, the City of Gilroy adopted a resolution endorsing the Santa Clara
County Community Plan to End Homelessness (2020-2025), which has guided the City
and other nonprofits, government entities, and community members as they work to
address the needs of unhoused individuals and is currently being updated; and
WHEREAS, the South County is currently served by two shelters: the Gilroy
Armory Shelter, a year-round shelter with a capacity of 100; and an inclement weather
shelter, also known as the Ochoa Center which operates mid-December through mid-
March, with capacity to accommodate 35 to 40 households with at least one minor
dependent; and
WHEREAS, The City of Gilroy acknowledges the lack of shelter beds and
housing currently available regionally and recognizes the systemic lack of state and
federal investment in shelter and public health services for those experiencing
homelessness; and
WHEREAS, the City of Gilroy has two Quality of Life Officers in the Police
Department who among other duties assist in connecting unhoused individuals with
service providers and resources offered by the County of Santa Clara and nonprofit
organizations and assessing and mitigating health and safety concerns of the
unhoused; and
WHEREAS, after two encampments were cleared on property belonging to the
Santa Clara Valley Water District, and Santa Clara County in November 2025, some
unhoused individuals encamped on City property abutting the 6th Street Bridge, just
north of the Miller Slough; and
WHEREAS, the City of Gilroy and local service providers have supplied needed
services for unhoused individuals at the 6th Street Encampment since formation; and
WHEREAS, the 6th Street Encampment abuts the 6th Street Bridge and Chapter
5 of the Gilroy City Code bans the use of bridges and certain other public rights-of-way
for camping, sleeping or living accommodations: and
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WHEREAS, the City of Gilroy issued a cleanup notice scheduled to occupants of
the 6th Street Encampment for February 3, 2026 (since extended to Feb. 18, 2026) in
alignment with the no camping provisions contained in Gilroy City Code Chapter 5; and
WHEREAS, the City of Gilroy recognizes that the events that cause people to
enter into homelessness are complex, while also acknowledging that the Santa Clara
County is not equipped to provide living or sleeping opportunities for unhoused
individuals in South County that will remain secure, sanitary and safe; and
WHEREAS, Inhabitants of the 6th Street Encampment have attempted to self-
govern so as to minimize adverse impacts on their neighbors and the environment; and
WHEREAS, following issuance of notice of a planned February 3, 2026 clean-up,
several individuals and organizations spoke to the Council during public comment on
January 26, 2026; and
WHEREAS, several individuals and organizations requested the City delay
encampment closure; and
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
GILROY:
SECTION A. Based upon the facts stated in the recitals above, the City Council of the
City of Gilroy agrees that the encampment should be permitted to remain open for a
period not to exceed ninety (90) days from the adoption date of this resolution; and
SECTION B. Based upon the facts stated in the recitals above, the City Council of the
City of Gilroy hereby directs staff to temporarily suspend the abatement of the 6th Street
Encampment for a period of XX days, during which time City staff will continue
outreach, sanitation efforts, and facilitate coordination with County and nonprofit service
providers; and
SECTION C. This temporary delay is made without prejudice and with no guarantee
that the City, County, or any other agency or nonprofit organization will be able to
provide supportive living or safe sleeping opportunities for unhoused individuals in
Gilroy (including those in the 6th Street Encampment) in this time period or thereafter. It
does not constitute a waiver of the City’s right to enforce its ordinances to require
clearance of the 6th Street Encampment or any public property on which an individual or
group may be violating Chapter 5 of the City Code.
ADOPTED this 9th day of February, 2026, by the following vote:
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AYES:
NOES:
ABSENT:
_______________________________
Greg Bozzo, Mayor
ATTEST:
_____________________________
Kim Mancera, City Clerk
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7.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Pilot Below Market Rate (BMR) Preservation Program Update
and Overall BMR Housing Program Overview
Meeting Date: February 9, 2026
From: Harjot Sangha, Interim City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Sharon Goei, Community Development Director, Christie Thomas,
Housing and Community Services Manager
STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All
RECOMMENDATION
Receive a report on the Pilot Below Market Rate (BMR) Preservation Program and an
overview of the BMR Housing Program.
EXECUTIVE SUMMARY
A significant milestone for 2025 was the successful launch of the Pilot BMR
Preservation Program, through which the City purchased and sold a senior BMR unit to
another income-qualified household. The unit closed escrow on January 12, 2026. This
Pilot Program, approved by the City Council in March 2025, demonstrates a viable
model for preserving affordability, and staff believes it will guide future preservation
efforts in partnership with the County of Santa Clara Office of Supportive Housing.
In addition, this report provides an overview of the City’s BMR Housing Program. Over
the past three decades, more than 300 affordable ownership units have been developed
in Gilroy. Some units have been sold out of the program, gradually reducing the number
of active deed-restricted homes. At this time, approximately 250 deed-restricted
ownership units across 12 developments are active in the portfolio. Since assuming the
portfolio in 2016, the City, supported by its Program Administrator, HouseKeys, since
April 2017, has continued to preserve affordable housing units, assist income-qualified
households, and meet Housing Element objectives, through monitoring, preservation
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efforts, and down payment assistance programs.
Over the past year, the program achieved several key accomplishments. With City
collaboration, the Program Administrator maintained daily customer service, processed
resale and refinance transactions, improved portfolio data systems, hosted over 50
informational sessions, and expanded outreach to both homeowners and prospective
buyers. Compliance monitoring was completed for 100% affordable rental
developments. Enhanced outreach was initiated to BMR ownership communities in
2025. This effort has been positive, achieving a 64% compliance rate among
homeowners contacted as of November 2025. The Program Administrator and the City
are continuing to contact the homeowners to complete the compliance process.
Despite substantial progress, the program continues to face challenges, including
complex inherited resale agreements, long-term portfolio attrition, limited local funding
to acquire units, staffing demands, and instances of homeowner non-compliance that
require staff and administrator intervention.
Regionally, the City remains active in collaborative affordable housing efforts, including
participation in the Santa Clara County Planning Collaborative and monthly County-
hosted regional meetings.
Overall, the City’s BMR Program continues to expand its reach and effectiveness,
supporting homeownership opportunities for low- and moderate-income households
while working to preserve long-term affordability within Gilroy’s housing stock.
BACKGROUND
The City of Gilroy’s BMR portfolio currently consists of approximately 250 ownership
single-family housing units within 12 developments. The majority of the portfolio was
acquired by the City in 2016 following the closure of South County Housing and its
successor agency, Neighborhood Housing Services Silicon Valley. Since 2017, the
program has been administered by HouseKeys, serving as the City’s BMR Program
Administrator.
The BMR portfolio includes a mix of senior and single-family homeownership
developments. These homes are deed-restricted for 30 – 40 years, depending on the
development, and are sold to low- and moderate-income households. Due to the
diverse origins of the portfolio, the resale agreements vary across developments;
however, each agreement includes restrictions that provide the City with the opportunity
to preserve long-term affordability upon resale within the deed-restricted period.
Resale values are determined based on formulas outlined in the resale agreement. The
City retains an equity share and, in most cases, the option to purchase the home within
a 90-day window. Most BMR resale agreements also allow the house to be sold at fair
market value after a designated time period.
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In prior years, limited local funding and high resale values have restricted the City’s
ability to purchase BMR homes when resold, thereby losing the option to preserve
affordability. The Pilot Below Market Rate Preservation program, initiated in 2025,
provides a new tool to address this challenge by leveraging loan funds from the Santa
Clara County Office of Supportive Housing to purchase and resell certain BMR homes
to income-qualified buyers.
Down payment assistance loans from various programs support most properties within
the BMR portfolio. Examples are the BEGIN and CalHome programs, which originated
from the State as grants to cities and counties to provide deferred down payment
assistance to first-time low- and moderate-income homebuyers. As these down
payment assistance loans are repaid to the City, the funds are deposited into City
ReUse accounts, allowing continued issuance of down payment assistance to future
low- and moderate-income homebuyers. Loan payoffs are deferred for 30 years or paid
in full upon resale. Because most BMR resale homes have been sold out of the
program, the City ReUse funds have grown, positioning the City to support additional
affordable housing opportunities with down payment assistance.
The Housing Element describes many program goals that can be accomplished through
the City's Below Market Rate program, including providing funding sources to assist
homeownership, monitoring and resale controls on current portfolio owner-occupied
below market rate units, preservation of below market rate units and their affordability,
and the development of an affordable housing policy.
ANALYSIS
Program Accomplishments
Overall Program
Over the past three decades, more than 300 affordable ownership units have been
developed in Gilroy, supported by over $3 million in down payment assistance for low-
and moderate-income families, individuals, and seniors. Some units have been sold out
of the program, gradually reducing the number of active deed-restricted homes. At this
time, approximately 250 ownership units are active in the portfolio. The BMR program
has enabled local households to achieve housing stability, build equity, and contribute
to the local economy while preserving affordability within Gilroy’s neighborhoods.
Accomplishments
Administration of the program allows for the management of the day-to-day portfolio
transactions, including daily customer service to homeowners, calculating loan payoffs,
managing refinance and resale transactions, determining eligibility, updating the annual
Santa Clara County income and rent chart, conducting virtual and in-person orientations
and Q&A sessions (referred to on the administrator's website as FAQ sessions), and
marketing the program to prospective buyers.
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The current Program Administrator continues to develop and manage the HouseKeys
City of Gilroy BMR website, www.housekeys5.com. They have created 20 different
“How To” and “Info” videos related to the program, which are available on the website.
The website enables current homeowners to create accounts and log in to submit
service requests, as well as prospective buyers to create IDs and enter lotteries for
resale home purchases or to express their interest in ownership of and rental of below-
market-rate housing units. Between January and November 2025, 258 new Gilroy
Prospective Home Buyer applicants created user IDs, totaling 3,598 Gilroy Prospective
Home Buyer Program Application IDs. An additional 70 Senior Home Buyer Program
IDs were created to enter the lottery for the Pilot BMR Preservation Program Senior
BMR resale unit. Between March and November of 2025, 203 new Prospective Gilroy
renters created IDs, totaling 1,748 Gilroy Rental Program Applicant IDs.
From January to November 2025, administration of the program allowed for enhanced
data management systems, response to 111 Gilroy-related phone calls, 63
miscellaneous service requests/questions, and provided portfolio management services
to 14 current homeowners. The administrator provided an updated portfolio list and
submitted quarterly reports to the City. Additionally, they collaborated with staff to
update program guidelines and monitored compliance for both ownership units and
100% affordable apartment developments under City agreements.
Administration of the program included communication with existing BMR homeowners
by conducting two in-person community meetings and one virtual meeting with
apartment property managers. From January to November of 2025, there were 41
virtual general Q&A sessions and 8 general BMR Program orientations. Both current
and prospective homeowners and renters are welcome to attend Q&A sessions, where
they can ask questions in either Spanish or English.
Affordable Housing Preservation
Pilot Below Market Rate Preservation Program
Through the 2025 Pilot Below Market Rate Preservation Program, the City successfully
purchased a low-income senior unit in the Village Green Development and resold it to
another low-income senior household. Escrow closed on January 12, 2026. The pilot
program demonstrates a feasible model for preserving a small number of BMR
ownership units as they become available for resale.
Staff desires to continue implementing this model in partnership with the County,
utilizing 12-month bridge loan at 0% interest from the County and the City’s Housing
Trust Fund resources to purchase future BMR units as opportunities arise, and to
provide down payment assistance to keep them affordable for low- and moderate-
income households.
100% Affordable Apartment Development Compliance Efforts
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7.2.
The Program Administrator, in collaboration with City staff, conducts annual compliance
monitoring of 100% affordable housing rental developments in Gilroy, as per their City
agreement. Monitoring ensures that units remain income-restricted and are rented to
qualified tenants at approved rent rates. This process also fosters stronger working
relationships between City staff and property management teams, promoting consistent
communication and facilitating early identification of issues.
In 2025, compliance monitoring packages were sent to all developments under
agreement. Of the 12 developments monitored, eight (8) completed their compliance
submissions, representing a compliance rate of 62% as of November 2025. The
Program Administrator and the City will continue to work with the other four (4)
developments to complete their monitoring process.
Ownership Unit Compliance Efforts
The Program Administrator and staff continued to expand outreach efforts to
homeowners within the City’s 12 BMR ownership developments. They conducted two
community meetings which included four developments. Afterward, compliance
verification packages were mailed to 75 homeowners, with responses tracked for
annual reporting purposes. As of November 2025, 48 (64%) homeowners returned
compliance materials confirming adherence to resale and occupancy requirements. The
Program Administrator and the City are continuing to contact the homeowners to
complete the compliance process.
Program Challenges
Administrative Complexity
The City’s inherited portfolio includes varying restrictions, timelines, down-payment
assistance loans, and affordability formulas across developments, requiring a time-
consuming, detailed review and individualized administrative handling for every
transaction.
Portfolio Management Challenges
While administration of the program has achieved many successes with the Gilroy
portfolio, it wasn’t without challenges. Staff turnover at both the City and Program
Administrator levels has led to delays in completing some long-term project goals within
the BMR program. For example, there is no adequate one-size-fits-all software solution
to manage the BMR housing portfolio. As a result, the Program Administrator embarked
on developing its own customized software to manage its clients' portfolios, but this has
not been without challenges and customer service delays.
As noted above, the portfolio comprises a variety of resale and loan agreements, many
of which require a complex, detailed process to calculate payoffs and equity shares,
making these calculations difficult and prone to errors. This process, therefore, requires
tremendous program administration staff and City oversight and necessitates the
creation of a multi-layer review process. Because the majority of the portfolio is an
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7.2.
acquisition, an additional challenge has been obtaining an accurate portfolio unit and
loan count; many original files were never accounted for, and some records are not
available at the County Assessor level. City staff will continue to work with the Program
Administrator to compile a comprehensive inventory list.
Financial Limitations
Limited funds in the local Housing Trust Fund constrain the City’s ability to exercise
purchase options or expand program capacity. The Housing Trust Fund receives loan
repayment or equity share payment from time to time when the City is notified of
transactions initiated by property owners. Nevertheless, there is no anticipated timing
for these payments, and there is no dedicated ongoing revenue stream for the Housing
Trust Fund.
Program Attrition
Many BMR units have been sold out of the program, gradually reducing the number of
active deed-restricted homes.
Homeowner Non-Compliance
A handful of BMR homeowners do not follow the guidelines outlined in their agreement,
and the Program Administrator and City staff must investigate and work to bring the
homeowners into compliance or demand that the unit be sold to another income-
qualified household.
City Staffing Demands
Despite having a BMR Program Administrator, because this is a City program, City staff
still receive almost daily communication from homeowners and/or their representatives,
realtors, and title companies.
City staff must collaborate with the Program Administrator to update policies, guidelines,
and procedures, discuss agreements and loan documents, and provide support on
resale equity shares and loan payoff calculations, as well as general portfolio
management and compliance matters. Due to the acquisition of the portfolio, ongoing
historical portfolio research is necessary for most transactions. City staff must also
assist with marketing the program via email campaigns and tabling at community
events, among other activities.
Homeowner down payment assistance and 100% affordable apartment loans require
monthly and annual loan portfolio reconciliation and state reporting. These functions are
performed by City staff rather than the Program Administrator.
City staff must also manage the Program Administrator contract and monthly billing,
receive and manage quarterly portfolio reports, attend weekly Administrator portfolio
meetings, and participate in various outreach meetings.
The current Program Administrator contract expires on June 30, 2026, and City staff
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7.2.
has initiated a Request for Proposals (RFP) process for a BMR program administrator,
effective July 1, 2026. In recent years, the City has increased its priority on housing by
creating a focused Housing and Community Services Division that enables the City to
make more concentrated efforts to address housing needs across the community. While
the City did not have such an internal Division in previous years and experienced
prolonged challenges that have resulted in a heavy, accumulated workload to organize
the City’s BMR portfolio, the current Housing and Community Services team members
have been able to achieve incremental progress and will continue to build upon the
successes accomplished to date to organize the City’s BMR program.
ALTERNATIVES
There are no alternative recommendations. This report is provided primarily for
informational purposes.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to receiving this report. Fiscal impact related to the Pilot BMR
Preservation Program was included in the adopted budget. No new appropriations are
necessary at this time.
PUBLIC OUTREACH
The staff report is available through the City’s website, and this item was included on
the publicly posted agenda for this meeting.
NEXT STEPS
For the Pilot BMR Preservation Program, as escrow successfully closed for the
program’s first unit on January 12, 2026, the County loan is being paid off, and staff
plans to purchase and resell another low-income BMR unit as it becomes available.
The current BMR Program Administrator contract expires on June 30, 2026. City staff
initiated an RFP process for a BMR program administrator in December 2025.
Attachments:
None
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8.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Request to Reopen the Wayland Parking Lot at Las Animas
Veterans' Park
Meeting Date: February 9, 2026
From: Matt Morely, City Administrator
Department: Administration
Submitted by: Bryce Atkins, Deputy Director of Community Development
Prepared by: Bryce Atkins, Deputy Director of Community Development
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Council consideration of a future agenda item regarding the potential reopening of the
Wayland Parking Lot at the Las Animas Veterans' Park.
EXECUTIVE SUMMARY
N/A
BACKGROUND
Council Member Carol Marques provided the attached FAIR Memo to Interim City
Administrator Brad Kilger. Staff has reviewed the FAIR Memo, and Interim City
Administrator Harjot Sangha approved its placement on this agenda.
This FAIR Memo requests an item to discuss the reopening of the Wayland Parking Lot
at the Las Animas Veterans' Park. Should Council determine to proceed with this item
for future discussion, staff time will be spent preparing the agenda item to discuss the
following items, though more elements may need research and/or analysis:
• Public Works
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8.1.
o Logistics and costs of opening and closing the gate daily, including who is
responsible (private security or GPD).
o Cost of addressing an ADA-compliant path of travel to and from the
parking lot.
o Cost of lighting the path of travel to and from the parking lot.
o Cost of parking lot infrastructure improvements, including ADA parking
striping and signage, pavement rehabilitation, additional lighting,
surveillance cameras, etc.
• Police
o Potential for increased patrols.
o Record of calls for service to the parking lot.
• Community relations
o Engagement with local community members to garner public input for
Council consideration.
• Council considerations
o Metrics for determining whether and when the parking lot may need to be
re-evaluated for closure, partial reopening, or full reopening.
ANALYSIS
None — this is a first step in the FAIR Memo process on whether the City Council would
like to give direction for the item to be brought back to a future agenda meeting for
discussion and potential action. Per the FAIR Memo, the original Council action involved
closure of both the Wayland and Hanna parking lots. Further analysis will be conducted
if the Council approves the topic for a future agenda and can include discussion
regarding one or both of the closed parking lots.
ALTERNATIVES
Council may approve or deny the request for a future agenda item.
FISCAL IMPACT/FUNDING SOURCE
None — this is a first step in the FAIR Memo process. A detailed fiscal impact analysis
will be conducted by staff if the Council approves the topic for a future agenda.
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8.1.
PUBLIC OUTREACH
This item was included on the publicly posted agenda.
NEXT STEPS
If approved, staff will schedule the future agenda item at a subsequent Council meeting
consistent with the Future Agenda Item Request Policy.
Attachments:
1. FAIR Memo: Las Animas Wayland Parking Lot
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Las Animas Wayland Parking Lot
During covid, homeless were allowed to shelter in place in city parks and parking lots.
Unfortunately, under the leadership of the previous city administrator, police were not directed
to do sweeps of the Wayland and Hanna Street Parking Lots at Las Animas Park when crime
occurred.
Being the Wayland Parking lot is concealed, individuals set up camping in the parking lot and
drug dealing and drug use became a lifestyle. There are neighbors who live right adjacent to
this parking lot that got fed up with the criminal behavior. After enduring gang fights, weapons,
and consistent drug use, a group of neighbors from the neighborhood got together and
convinced the City Council to close both city parking lots permanently.
One neighbor gave the Council at a City Council meeting, a petition with 98 signatures in strong
support of closing down the two parking lots – Hanna Street (because that is where she lived)
and Wayland. Based on her petition and a few neighbors’ arguments that night, the Council
voted to close the two lots. However, when she emailed the petitions to each of the Council
members after the meeting and the petitions were looked over, there were only 20 valid
signatures. The rest of the signatures were from different parts of the city and countryside
which were not valid since the signers had never experienced firsthandwhat the neighbors
were going through.
Since that time, the Gilroy Tennis Club Board members have tried to get the Wayland Parking
lot re-opened. A gate was installed at the entryway to this parking lot which was to be locked at
10:00 every night. Any car refusing to leave, was to be towed at the owner’s expense. After
two nights, our former city administrator suspended this policy because car owners were
refusing to move. The city manager would not have them towed because he said it was too
much work for the city employees—even though, the tow truck company would do all the
paperwork.
So for three years now, this parking lot has been permanently closed. Our club would like to
have it re-opened and policed correctly. My vice-president, Bob Nettleblad, and I have spoken
with the Police Chief, various police officers and the mayor. Police and the police chief have
said there is no problem in policing the lots.
It is important to have the Wayland Parking lot re-opened because of its close proximity to our
tennis courts. At night with it getting dark so early, there are no lights between the handball
courts and the Mantelli Parking Lot. We are walking in darkness and feel unsafe listening to the
various voices in the park that we cannot see. We feel that keeping the lot closed, is a serious
safety issue.
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I have tried to set up a meeting with the home owners’ association to no avail. These people
like the serenity of the closed lot and do not want to see it re -opened. However, it can be
argued that every resident knew what he or she was moving next to when the home was
purchased. This is a city owned park supported by tax payers. Tennis players, Little League
families and people coming to walk their dogs have all been inconvenienced by a few people
who want it kept closed for their own wishes.
It would never be suggested that the parking lot should be returned to its original crime ridden
state. What is being suggested is that we open it on a trial basis and the police patrol the park
regularly. The parking lot could be locked up first when the City’s security team comes on duty.
There are solutions that need to be addressed. Shutting down of city run property is not the
way to deal with criminal activity. We want this activity extinguished not moved around the
City. Opening up these lots on a trial basis to see what needs to be mitigated is the best way to
get a win for all.
**********************************************************
(We are arguing for the Wayland Parking lot but we have no objection to whatever is decided
for the Hanna Street parking lot.)
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