HomeMy WebLinkAbout04/20/2026 City Council Regular Agenda PacketApril 20, 2026 | 6:00 PM Page 1 of 8 City Council
Regular Meeting
CITY COUNCIL
REGULAR MEETING
AGENDA
CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, APRIL 20, 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
Page 1 of 267
April 20, 2026 | 6:00 PM Page 2 of 8 City Council
Regular Meeting
post the documents before the meeting.
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE
Government's duty is to serve the public, reaching its decisions in full view of the public.
Commissions, task forces, councils and other agencies of the City exist to conduct the
people's business. This ordinance assures that deliberations are conducted before the
people and that City operations are open to the people's review.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT
ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A
VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION
STAFF AT (408) 846-0204.
If you need assistance with translation and would like to speak during public comment,
please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or
e-mail the City Clerk’s Office at cityclerk@cityofgilroy.org.
Si necesita un intérprete durante la junta y gustaría dar un comentario público,
comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-
846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad
a cityclerk@cityofgilroy.org.
To access written translation during the meeting, please scan the QR
Code or click this link:
Para acceder a la traducción durante la reunión, por favor escanee el
código QR o haga clic en el enlace:
bit.ly/3FBiGA0
Choose Language and Click Attend | Seleccione su lenguaje y haga clic
en asistir
Use a headset on your phone for audio or read the transcript on your
device.
Use sus auriculares para escuchar el audio o leer la transcripción en el
dispositivo.
The agenda for this regular meeting is outlined as follows:
1. OPENING
1.1. Call to Order
1.2. Roll Call
1.3. City Clerk's Report on Posting the Agenda
1.4. Pledge of Allegiance
Page 2 of 267
April 20, 2026 | 6:00 PM Page 3 of 8 City Council
Regular Meeting
1.5. Invocation
1.6. Orders of the Day
1.7. Employee Introductions
2. CEREMONIAL ITEMS - Proclamations and Awards
2.1. Proclamation for Earth Day and Arbor Day
3. COUNCIL CORRESPONDENCE (Informational Only)
4. PRESENTATIONS TO THE COUNCIL
4.1. Sister Cities Annual Presentation
4.2. Visit Gilroy Annual Presentation
4.3. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
This portion of the meeting is reserved for persons desiring to address the
Council on matters within the Gilroy City Council’s jurisdiction but not on the
agenda. Persons wishing to address the Council are requested to complete a
Speaker’s Card located at the entrances and handed to the City Clerk. Speakers
are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending
on the number of speakers and length of the agenda. The law does not permit
Council action or extended discussion of any item not on the agenda except
under special circumstances. If Council action is requested, the Council may
place the matter on a future agenda.
Written comments to address the Council on matters not on this agenda may be
e-mailed to the City Clerk’s Office at publiccomment@cityofgilroy.org or mailed
to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA
95020. Comments received by the City Clerk’s Office by 1:00 pm on the day of a
Council meeting will be distributed to the City Council prior to or at the meeting
and available for public inspection with the agenda packet located in the lobby
of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any
correspondence received will be incorporated into the meeting record. Items
received after the 1:00pm deadline will be provided to the City Council as soon
as practicable. Written material provided by public members under this section
of the agenda will be limited to 10 pages in hard copy. An unlimited amount of
material may be provided electronically.
5. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers
Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources
Committee, SCRWA
Page 3 of 267
April 20, 2026 | 6:00 PM Page 4 of 8 City Council
Regular Meeting
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley
Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome
Center, VTA Mobility Partnership Committee
Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint
Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa
Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan
2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South
County Youth Task Force Policy Team, VTA Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate),
Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and
Community Development Advisory Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate),
Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon
Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability
Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership
Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water
Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors
(alternate), Santa Clara Housing and Community Development Advisory Committee
(alternate)
6. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine
and will be enacted by one motion. There will be no separate discussion of these items unless
a request is made by a member of the City Council or a member of the public. Any person
desiring to speak on any item on the consent calendar should ask to have that item removed
from the consent calendar prior to the time the City Council votes to approve. If removed, the
item will be discussed in the order in which it appears.
6.1. Approve the minutes of the March 25, 2026 and April 2, 2026 City Council Special
Study Sessions, the April 4, 2026 Coffee with the Mayor, and the April 6, 2026
City Council Regular Meeting
6.2. Approve a School Resource Officer Memorandum of Understanding for Fiscal
Year 2026-2027
6.3. Approve the Second Amendment for HydroScience Design Services Contract for
Water Utility Improvements to increase by $175,395, for a New Total Not-to-
exceed Amount of $1,112,985
6.4. Resolution of Intention to Renew the Gilroy Tourism Business Improvement
District (GTBID)
Page 4 of 267
April 20, 2026 | 6:00 PM Page 5 of 8 City Council
Regular Meeting
6.5. Approval of a Purchasing Contract With RDO Equipment Co. of Hayward in the
Amount of $104,967 for the Purchase of a Vermeer BC1500 Wood Chipper Under
a Cooperative Purchasing Agreement with Sourcewell, Contract# 010925-VRM
6.6. Approval of the Gilroy Tourism Business Improvement District (GTBID) Annual
Reports as Submitted by Visit Gilroy/Gilroy Welcome Center for the Period of
January 1, 2022 Through December 31, 2025
6.7. Approve the Second Amendment to the Agreement with Dewberry Engineers Inc.
to Add $187,766.15 for the Design of the Lions Creek Trail and Santa Teresa
Blvd/Day Rd East Bicycle and Pedestrian Improvements and Adopt a Budget
Amendment Resolution for CIP Project No. 800270
6.8. Approval of a Purchasing Contract With Papé Machinery of Gilroy in the Amount
of $352,595 for the Purchase of a John Deere 320 P-Tier Backhoe Loader, a John
Deere 60 P-Tier Compact Excavator, and a TKT24LP Tilt Trailer Under a
Cooperative Purchasing Agreement with Sourcewell, Contract# 011723-JDC and
092922-TKI
6.9. Consent the City Administrator's Recommendation to Appoint Cindy Murphy to
the Department Head Position of Finance Director
6.10. Claim of Farmers Insurance Exchange a/s/o Armando Flores (The City
Administrator recommends a "yes" vote under the Consent Calendar shall
constitute denial of the claim)
7. BIDS AND PROPOSALS
7.1. Award a Two-Year Contract to Hello Housing to Administer the City's Below
Market Rate Housing Program with Three, One-Year Extension Options in a Total
Amount Not to Exceed $973,689 and Adopt a Resolution Amending the Budget in
the Housing Trust and Los Arroyos Funds
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
1. Award a contract to Hello Housing to administer the Below Market
Rate (BMR) Housing Program from July 1, 2026, to June 30, 2028,
with three, one-year extension options, and authorize the City
Administrator to execute the contract and associated documents; and
2. Adopt the resolution amending the Fiscal Year 2026-27 budget to
increase appropriations in the Housing Trust Fund by $6,240 and the
Los Arroyos Fund by $5,760 for the Fiscal Year 2027 services of this
contract.
7.2. Award a contract to 17 Mile Construction in the amount of $198,900 for tenant
Page 5 of 267
April 20, 2026 | 6:00 PM Page 6 of 8 City Council
Regular Meeting
improvements at 641 Old Gilroy St (Jessup Property); Approve a project
contingency of $19,100, and Approve a total project expenditure of $218,000
1. Staff Report:
Karl Bjarke, Interim Public Utilities Director
2. Public Comment
3. Possible Action:
1. Award a Public Works contract in the amount of $198,900 to 17 Mile
Construction for the tenant improvement project at 641 Old Gilroy St.;
2. Approve a project contingency of $19,100 for a total project
authorization of $218,000; and
3. Authorize the City Administrator to execute the contract documents
and approve any future change orders within the project contingency.
8. PUBLIC HEARINGS
8.1. Public Hearing to Establish a List of Properties Subject to the Weed Abatement
Program and Adoption of a Resolution Authorizing the Fire Chief to Abate the
Nuisance Arising Out of Weeds Growing and Refuse Accumulating Upon
Property in the City of Gilroy Pursuant to Section 12.51 of the Gilroy Code
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:
Adopt a Resolution of the City Council of the City of Gilroy authorizing the
Fire Chief to abate the nuisance arising out of weeds growing and refuse
accumulating upon property in the City of Gilroy, pursuant to Section 12.51
of the Gilroy City Code.
8.2. Amend Chapter 15, Section 15.11 of the Gilroy City Code by Adding Reference to
California Vehicle Code Section 22358 et seq. Allowing the City Council to
Reduce Prima Facie Speed Limits in School Zones from 25 mph to 15 mph or 20
mph per Assembly Bill 382
1. Disclosure of Ex-Parte Communications
2. Staff Report:
John Doughty, Public Works Director
3. Open Public Hearing
4. Close Public Hearing
Page 6 of 267
April 20, 2026 | 6:00 PM Page 7 of 8 City Council
Regular Meeting
5. Possible Action:
1. Conduct a Public Hearing;
2. Introduce and waive the first reading of the Ordinance amending
Chapter 15, Section 15.11 of the Gilroy City Code adding reference to
California Vehicle Code Section 22358 et seq. allowing the City
Council to reduce prima facie speed limits in school zones from 25
mph to 15 mph or 20 mph per Assembly Bill 382;
3. Direct staff to place the Ordinance for adoption at the May 18, 2026
meeting; and
4. Adopt a resolution approving a budget amendment adding $150,000
from Fund 220 (Vehicle Registration Fee) to Capital Project Number
801120 (Citywide Safety Improvements).
9. UNFINISHED BUSINESS
9.1. Receive an Update on Emergency Medical Dispatch (EMD) Services Cost
Escalation and Service Delivery Evaluation, and Approval of a Two-year
Agreement with the Santa Clara County Communications Department for EMD
services, in the Amount of $170,256 for Fiscal Year 2026-27 (FY27) and $329,803
in FY28
1. Staff Report:
Jennifer Fortino, Management Analyst
2. Public Comment
3. Possible Action:
1. Receive an update; and
2. Approve a two-year agreement with Santa Clara County
Communications Department for Emergency Medical Dispatch
services, in the amount of $170,256 in FY 27 and $329,803 in FY 28,
and authorize the City Administrator to execute the contract and
associated documents.
10. INTRODUCTION OF NEW BUSINESS
10.1. Approve the Establishment of a City Council Homelessness Ad Hoc
Subcommittee and Appoint up to Three City Councilmembers to Serve on the
Subcommittee, and Provide Direction on the Homebase Proposal and Option
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
1. Approve the establishment of a City Council Homelessness Ad Hoc
Page 7 of 267
April 20, 2026 | 6:00 PM Page 8 of 8 City Council
Regular Meeting
Subcommittee and appoint up to three City Councilmembers to serve
on the Subcommittee; and
2. Proceed with the Homebase proposal and option of facilitation of six
(6) monthly meetings with four (4) virtual and two (2) in-person
meetings.
11. FUTURE COUNCIL INITIATED AGENDA ITEMS
11.1. Request to Consider Amending City Zoning Code Section 30.41.31 regarding
Performance Standards for Commercial and Industrial Noise Impacting
Residentially Zoned Properties (FAIR Memo - Hilton)
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Council consideration of a future agenda item directing staff to amend
Zoning Code Section 30.14.31 (Specific provisions – Noise).
12. CITY ADMINISTRATOR'S REPORTS
13. CITY ATTORNEY'S REPORTS
14. ADJOURNMENT
Page 8 of 267
Page 9 of 267
March 25, 2026 | 8:30 AM Page 1 of 2 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Wednesday, March 25, 2026 | 8:30 AM
1. OPENING
1. Call to Order
The meeting was called to order by Mayor Bozzo at 8:30 AM.
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 Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.
2. PUBLIC COMMENT
Mayor Bozzo opened public comment at 8:42 A.M.
With no speakers, Mayor Bozzo closed public comment.
3. CITY COUNCIL STUDY SESSION
1. Legislative Agenda and Work Plan
Introductions of facilitator Dave Sykes and City Council.
Review the Goals for the Study Session.
Review Selected Council Norms
Review of Work Plan & Legislative Agenda
Mayor Bozzo opened public comment at 10:38 P.M.
Gary Walton - commented on Downtown Morgan Hill vs. Downtown Gilroy and the
benefit that Gilroy has with a plan from the Council.
David Leal - thanked the Council for what they have done in Downtown Gilroy and
asked that they have a plan moving forward to attract more people to Downtown
Page 10 of 267
March 25, 2026 | 8:30 AM Page 2 of 2 City Council
Minutes
Gilroy.
Amber Atteberry - commented on the Gilroy Downtown Business Association and
provided some statistics.
With no further speakers, Mayor Bozzo closed public comment.
The meeting recessed at 10:56 am and reconvened at 11:07 am.
Continue review of Work Plan & Legislative Agenda
Goal Setting Brainstorm
4. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 12:01 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 11 of 267
April 2, 2026 | 8:30 AM Page 1 of 1 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Thursday, April 2, 2026 | 8:30 AM
1. OPENING
1. Call to Order
The meeting was called to order by Mayor Bozzo at 8:30 AM.
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 Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
3. CITY COUNCIL STUDY SESSION
1. Priorities and Workplan Goal Setting
Facilitator Dave Sykes provided a recap of the first study session.
Review the role of the City Administrator.
Review the purpose of the City Administrator's evaluation and discuss performance
measures.
2. PUBLIC COMMENT
Mayor Bozzo opened public comment at 10:06 P.M.
With no speakers, Mayor Bozzo closed public comment.
4. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 10: 06 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 12 of 267
April 4, 2026 | 9:30 AM Page 1 of 1 City Council
Minutes
City of Gilroy
City Council
Draft Minutes
Saturday, April 4, 2026 | 9:30 AM
1. OPENING
1. Call to Order
The meeting was called to order by Mayor Bozzo at 9:30 AM.
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Kelly Ramirez
Mayor Greg Bozzo
2. COFFEE WITH THE MAYOR
3. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 10:38 A.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 13 of 267
April 6, 2026 | 6:00 PM Page 1 of 8 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Monday, April 6, 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 Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
Absent Council Member Zach Hilton
3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.
4. Pledge of Allegiance
Council Member Fugazzi led the Pledge of Allegiance.
5. Invocation
None.
6. Orders of the Day
None.
7. Employee Introductions
Police Captain Luke Powell introduced Police Officer Logan Lyons, Police Officer
Kevin Figueroa and Community Service Officer Victoria Zepeda.
2. CEREMONIAL ITEMS - Proclamations and Awards
1. Fair Housing Month Proclamation
Mayor Bozzo presented the Fair Housing Month Proclamation to Danitza Roncal
with Project Sentinel.
3. PRESENTATIONS TO THE COUNCIL
1. Presentation of the Annual Report for the Gilroy Elevate the Arts Program by
Page 14 of 267
April 6, 2026 | 6:00 PM Page 2 of 8 City Council
Minutes
Silicon Valley Creates
Alexandra Urbanowski with Silicon Valley Creates provided a report from the Gilroy
Elevate the Arts Program.
2. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
Mayor Bozzo opened public comment at 6:17 P.M.
Landon Sepulveda - Spoke against the Gilroy Amazon Data Center.
Ron Kirkish - Spoke in favor of the Gilroy Amazon Data Center.
With no further speakers, Mayor Bozzo closed public comment.
4. REPORTS OF COUNCIL MEMBERS
1. Council Member Bracco – Downtown Committee, Santa Clara County Library
Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley
Water Joint Water Resources Committee, SCRWA
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon
Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit
Gilroy California Welcome Center, VTA Mobility Partnership Committee
Council Member Marques – ABAG, Downtown Committee, Santa Clara County
Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency
Governing Board, Santa Clara Valley Habitat Agency Implementation Board,
SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group, Santa Clara County
Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy
Authority JPA Board, South County Youth Task Force Policy Team, VTA
Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of
Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate),
SCRWA, Santa Clara Housing and Community Development Advisory
Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities
(alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan
2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board
(alternate), Silicon Valley Regional Interoperability Authority Board, Visit
Gilroy California Welcome Center (alternate), VTA Mobility Partnership
Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water
Page 15 of 267
April 6, 2026 | 6:00 PM Page 3 of 8 City Council
Minutes
Joint Water Resources Committee, South County Youth Task Force Policy
Team, VTA Board of Directors (alternate), Santa Clara Housing and
Community Development Advisory Committee (alternate)
Council Member Bracco - No report.
Council Member Fugazzi - No report.
Council Member Marques - Reported that she and Council Member Ramirez
attended the Santa Clara Valley Habitat Agency meeting and spoke on the
Burrowing Owl Program.
Council Member Hilton - No report.
Council Member Ramirez - Attended Gilroy Appreciation Day at Gilroy Gardens and
recognized Gilroy Gardens for having a great season opener. She shared that she
participated in Solorsano Middle School's Career Day and spoke at a Political
Science class at Gavilan College. She reported from the Santa Clara Housing and
Community Development Advisory Committee and shared that Gilroy will receive
funding for the 8th & Alexander low-income housing project. She also reported from
the Cal Cities Housing Community and Economic Development Policy Committee
meeting in Costa Mesa.
Council Member Cline - No report.
Mayor Bozzo - Reported from the Gilroy Gardens Board of Directors that Gilroy
Gardens has hired a Chief Advancement Officer. He also shared that he attended a
meeting for the Santa Clara Valley Water Joint Water Resources Committee and
reported on developments between Gilroy and Morgan Hill pertaining to recycled
water. Lastly, the Mayor gave praise to Gilroy's Parks teams for keeping the parks
maintained.
5. CONSENT CALENDAR
Mayor Bozzo commented on item 5.7. He announced that the position of Assistant City
Administrator is a new position for Gilroy that has never existed before and congratulated
Harjot Sangha on the position.
Mayor Bozzo opened public comment at 6:29 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Approve the consent calendar.
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 Carol Marques, Council
Page 16 of 267
April 6, 2026 | 6:00 PM Page 4 of 8 City Council
Minutes
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
1. Approve the March 7, 2026 Coffee with the Mayor and the March 16, 2026 City
Council Regular Meeting minutes
2. Approval of the Update to the Gilroy Conflict of Interest Code During Its
Biennial Review
3. Approve Property Improvement Agreement No. 2026-02, for Data Center Phase
1 Offsite Improvements, APN 841-69-044
4. Claim of Christina Johnson (The City Administrator recommends a "yes" vote
under the Consent Calendar shall constitute denial of the claim)
5. Approve budget amendment and contract amendment to cover change orders
on the purchase of a replacement Type III fire engine from BME Fire Trucks,
LLC.
6. Notice of Completion for the FY25 Citywide Pavement Rehabilitation Project
No. 25-PW-295 and Approval of a Final Contract Amount of $6,911,105.66
7. Consent the City Administrator's Recommendation to Appoint Harjot Sangha
to the Department Head Position of Assistant City Administrator
6. BIDS AND PROPOSALS
1. Council Award a Contract to Pros Consulting for the Recreation Division
Assessment in the Amount of $372,690 and Adopt a Resolution Amending the
Fiscal Year 2026 Budget in the Recreation Fund
Deputy Director of Community Development Bryce Atkins provided a report and
presentation.
Mayor Bozzo opened public comment at 6:45 P.M.
Ron Kirkish - Spoke against granting the contract to Pros Consulting
With no further speakers, Mayor Bozzo closed public comment.
Motion
Award a contract to Pros Consulting setting the dollar figure to $225,000 and
allowing City staff and the consultant to negotiate a maximum possible scope of
work within the budget.
RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Carol Marques
AYES: Council Member Tom Cline, Council Member Terence Fugazzi,
Council Member Carol Marques, Council Member Kelly Ramirez,
Page 17 of 267
April 6, 2026 | 6:00 PM Page 5 of 8 City Council
Minutes
Mayor Greg Bozzo
NAYS: Council Member Dion Bracco
ABSENT: Council Member Zach Hilton
Motion
Adopt the attached budget amendment resolution revised to coordinate with the
amount of the project.
RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Carol Marques
AYES: Council Member Tom Cline, Council Member Terence Fugazzi,
Council Member Carol Marques, Council Member Kelly Ramirez,
Mayor Greg Bozzo
NAYS: Council Member Dion Bracco
ABSENT: Council Member Zach Hilton
2. Award Four, Three-Year On-Call Standard and Expedited Building and Fire
Plan Review and Inspection Services Contracts with Two, One-Year Extension
Options and Each Contract with an Amount Not-To-Exceed $2,000,000 to
4LEAF, CSG Consultants, TRB+ Associates, and True North Compliance
Services
Community Development Director Sharon Goei provided a report and presentation.
Mayor Bozzo opened public comment at 7:13 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Award agreements in an amount not-to-exceed $2,000,000 each with 4LEAF, CSG
Consultants, TRB+ Associates and True North Compliance Services to provide
standard and expedited on-call Building and Fire plan review and inspection
services for the initial period of July 1, 2026 to June 30, 2029, with two, one-year
extension options, and authorize the City Administrator to execute these
agreements.
RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Carol Marques, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
7. INTRODUCTION OF NEW BUSINESS
1. Proposed High Speed Rail Tax Increment Financing
Page 18 of 267
April 6, 2026 | 6:00 PM Page 6 of 8 City Council
Minutes
City Administrator Matt Morley provided a report.
Mayor Bozzo opened public comment at 7:19 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Authorize the Mayor to sign a Letter of Opposition to the High-Speed Rail Authority’s
Tax Increment financing proposal.
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 Carol Marques, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
2. Receive Draft Community Development Block Grant Program Year 2026-2027
Annual Action Plan and Draft Citizen Participation Plan and Provide Direction
on CDBG PY 2026-2027 Funding Allocations
Community Development Director Sharon Goei provided a report and presentation.
Mayor Bozzo opened public comment at 7:34 P.M.
Carole Conn - Thanked council for supporting Project Sentinel's efforts within the
community
Liz Murillo - Spoke on the relationship between Gilroy and the team with Rebuilding
Together Silicon Valley
Deanne Everton - Thanked council for their support in Gilroy's housing
developments.
With no further speakers, Mayor Bozzo closed public comment.
Listen to the motion that Mayor Bozzo reads. (there was no mover or second)
Motion
Receive draft Community Development Block Grant (CDBG) Program Year (PY)
2026-2027 Annual Action Plan (AAP) and draft Citizen Participation Plan (CPP) and
direct staff to allow funding for the public service applicants to be equally distributed
and non-public service applicants to be equally distributed between City of Gilroy
Public Works and Rebuilding Together Silicon Valley.
RESULT: Approve
Page 19 of 267
April 6, 2026 | 6:00 PM Page 7 of 8 City Council
Minutes
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Carol Marques, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
3. Acceptance of Fiscal Year 2024-25 Annual Comprehensive Financial Report
(ACFR)
Assistant City Administrator and Finance Director Harjot Sangha provided a report
and presentation.
Mayor Bozzo opened public comment at 7:56 P.M.
With no speakers, Mayor Bozzo closed public comment.
Report received.
4. Council Consideration of Placing a Potential Sales Tax Ballot Measure for the
November 2026 Election Ballot
Assistant City Administrator and Finance Director Harjot Sangha provided a report
and presentation.
Mayor Bozzo opened public comment at 8:26 P.M.
With no speakers, Mayor Bozzo closed public comment.
Council approved 4-2 to pursue the placement of a special sales tax measure on the
ballot and directed staff to come back in June with ballot language and the formal
action.
8. CITY ADMINISTRATOR'S REPORTS
No report.
9. CITY ATTORNEY'S REPORTS
No report.
10. CLOSED SESSION
1. Public Employee Appointment/Employment Pursuant to Government Code
Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Finance Director
City Attorney Andy Faber announced the closed session item.
City Attorney Andy Faber opened public comment at 8:47 P.M.
Page 20 of 267
April 6, 2026 | 6:00 PM Page 8 of 8 City Council
Minutes
With no speakers, City Attorney Andy Faber closed public comment.
Motion
Remain in closed session.
RESULT: Passed
MOVER: None
SECONDER: None
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council
Member Terence Fugazzi, Council Member Carol Marques, Council
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
The meeting adjourned to closed session at 8:47 P.M
11. ADJOURN TO OPEN SESSION
12. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 8:56 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 21 of 267
6.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve a School Resource Officer Memorandum of
Understanding for Fiscal Year 2026-2027
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Police
Submitted by: Scot Smithee, Interim Police Chief
Prepared by: Brian Dutton, Police Captain
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy authorizing the City
Administrator to enter into an agreement between the City of Gilroy and Gilroy Unified
School District for two school resource officers, including cost sharing, for Fiscal Year
2026-2027 (FY27).
EXECUTIVE SUMMARY
The City of Gilroy (City) and the Gilroy Unified School District (GUSD) have an
established School Resource Officer (SRO) Program and partnership dating back to
1985. The SRO’s primary role in schools is to maintain school campus safety, build and
support the well-being of youth, positive student and family engagement, safety training,
and an on-site resource for students and staff in crisis.
Gilroy Unified School District has asked to renew the SRO program for FY27. Staff is
requesting the City Council to authorize the City Administrator to execute a
Memorandum of Understanding (MOU) between the City and GUSD to continue this
partnership.
BACKGROUND
Page 22 of 267
6.2.
The SRO program consists of two police officers dedicated to the function of
maintaining school campus safety. The officers are tenured officers who are specially
trained and carefully selected with the participation of the GUSD Superintendent.
The MOU includes six best primary purposes for having police services on school
campuses and adds to a balanced approach to provide a positive and safe school
environment. The six principles of the SRO Program include:
1. Maintain a safe and secure campus for both students and staff.
2. Preserve life and property in a manner that promotes community.
3. Develop positive relationships with students, staff and community.
4. Support GUSD staff in securing and transporting of prohibited confiscated items that
are illegal to have on campus under California State Law.
5. Divert youth away from the criminal justice system through Restorative Justice
programming.
6. Connect youth with mental health behavior services.
ANALYSIS
GUSD staff presented to the GUSD Board on March 19, 2026, for the renewal of the
FY27 MOU agreement and the GUSD Board approved the agreement. During the
meeting, GUSD staff highlighted the ongoing collaboration between campus personnel
and SROs, emphasizing their commitment to fostering student well-being, building trust,
and ensuring a secure campus community.
Over the past four years, GUSD has conducted an annual survey to assess the
perceptions of students, staff, and families regarding SROs on campus. The most
recent survey findings indicate that 92.3% of respondents feel comfortable with the
presence of an SRO, while 86.6% believe that having an SRO in schools contribute to a
safer environment for students.
ALTERNATIVES
The Council may decide not to continue participating in a Memorandum of
Understanding (MOU), but this is not advisable. If an incident occurs that requires law
enforcement intervention, patrol officers will respond to the call for assistance from the
school or school district. However, they will not be able to offer the additional services
and benefits that a School Resource Officer (SRO) program typically provides as noted
above.
FISCAL IMPACT/FUNDING SOURCE
This MOU would provide cost sharing with GUSD paying 50% of the two SRO’s cost.
The full salary of two SRO’s for FY27 is estimated at $587,939.98. GUSD’s portion of
Page 23 of 267
6.2.
the cost is $293,969.99.
The City’s SRO’s cost is included as part of the FY27 budget process as the SRO
program will be staffed from the current officer workforce, which is funded out of the
Police Department's budget within the General Fund (100). The reimbursement
received as revenue is also deposited back into the General Fund.
PUBLIC OUTREACH
As referenced above, public outreach occurs as part of the GUSD community survey.
NEXT STEPS
Attachments:
1. MOU SRO FY27 -Draft
2. Attachment A FY27 SRO Program
Page 24 of 267
MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE GILROY UNIFIED
SCHOOL DISTRICT AND THE CITY OF GILROY FOR SCHOOL RESOURCE
OFFICERS
This MEMORANDUM OF UNDERSTANDING (MOU) (the “Agreement”) is entered into on
BLANK (the “Effective Date”) by and between the Gilroy Unified School District (the “GUSD”)
and the City of Gilroy (the “City”) (which may be referred to hereinafter individually as a
“Party” and collectively referred to hereinafter as the “Parties”) to provide fiscal support for the
School Resource Officers (the “SROs”) assigned to GUSD.
RECITALS
WHEREAS, the Parties desire to place two (2) SROs in service to the GUSD; and
WHEREAS, the Parties have agreed to enter into this Agreement for the purpose of
sharing the cost of two (2) SRO positions for the GUSD 2026-2027 fiscal year; and
WHEREAS, GUSD agrees to reimburse the City for its share of the cost, and the purpose
of this Agreement is to provide the duties and obligations of both Parties related to these SRO
positions, and the terms and conditions for GUSD’s reimbursement to the City; and
NOW THEREFORE, in consideration of the foregoing recitals, and the covenants and
conditions contained herein, the Parties hereto agree as follows:
PURPOSE
The parties agree that there are six primary purposes for having police services on school
campuses. They are to:
1. Maintain a safe and secure campus for both students and staff;
2. Preserve life and property in a manner which promotes community;
3. Develop positive relationships with students, staff, and the community;
4. Support GUSD staff in securing and transporting of prohibited confiscated items
that are illegal to have on campus under California State law;
5. Divert youth away from the criminal justice system through restorative justice
programming;
6. Connect youth with mental health behavior services.
1. Obligation of the Parties.
a. City: The City shall provide the GUSD with two (2) SROs during the 2026-2027
regular school year and with one (1) SRO during the 2026-2027 summer session. SRO’s shall
attend Restorative Justice and Positive Behavioral Training.
Page 25 of 267
i. During the regular school year, each SRO will be assigned to one of the
two high schools located in Gilroy - Christopher High School or Gilroy High School, and will be
primarily responsible for performing duties and obligations at the high school to which they are
assigned, as well as the “feeder” middle and elementary schools associated with it.
ii. During the regular school year, the SROs will provide coverage for each
other, as needed, including without limitation, performing SRO duties at the school(s) for which
the other officer is primarily responsible if the SRO primarily assigned to the school(s) is absent
from work or preoccupied for an extended or indefinite period of time with a matter or matters
that may require his or her immediate and full attention.
iii. Consistent with their regular schedules when performing their general
Gilroy Police officer duties, the SROs will each work a 4/10 plan. This means that each SRO
will work for ten (10) hours per day, four (4) days per week. During the regular school year,
their SRO schedules will be staggered so that every weekday will have at least one SRO
providing coverage.
iv. The City will provide funding for the two (2) SROs salary throughout the
GUSD 2026-2027 fiscal year, and will send an invoice to GUSD for its 50% share of the cost for
the SROs at the end of the GUSD 2026-2027 fiscal year.
v. Should the employment of either or both of the SROs be terminated during
the 2026-2027 school year, the City will provide substitute officers.
vi. The City shall involve the current GUSD superintendent or designee in the
process of interviewing and selecting SRO candidates.
vii. Any published job description for the SRO shall state bilingual in Spanish
candidates are preferred.
b. GUSD: GUSD shall reimburse the City for 50% of each officer’s full annual
salary for the 2026-2027 GUSD fiscal year (12 months), as calculated by the City, including the
cost of any related benefits. GUSD agrees and understands that SROs are entitled to certain
contractual rights pursuant to their collective bargaining agreement with the City, including,
without limitation, employee breaks and paid time off. GUSD shall not interfere with or prevent
the exercise of these rights. GUSD shall also provide Restorative Justice and Positive Behavioral
training to the SROs.
2. Term. The term (the “Term”) of this Agreement will commence as of the Effective Date
and will continue in effect through the GUSD 2026-2027 fiscal year, unless sooner terminated in
accordance with the termination provisions provided in paragraph 6, below. Should the GUSD
determine that it has sufficient funding to share the cost of the SRO officers for the 2027-2028
school year and desire to renew its commitment to share the cost of such positions, the GUSD
Page 26 of 267
must provide notice to the City by April 30, 2027. The City may at its sole discretion extend this
Agreement through the 2027-2028 fiscal year, after determining that the City has the funds to
cover its share of the cost of such positions.
3. Reimbursement. GUSD’s reimbursement cost is based on the salary and benefits that
each officer assigned to the GUSD would receive for performing their regular patrol duties, as
described in the cost summary in “Attachment A” to this Agreement and prorated for the actual
periods, which an SRO Officer position is assigned to the District. At the end of the Term, the
City will provide the GUSD with an invoice for the GUSD’s share of the annual cost for the two
SROs, to be paid in one lump sum payment or in multiple payments as agreed to in writing by
both Parties. Should the City provide substitute officers per paragraph 1.a. above, the GUSD’s
share of the cost will remain the same and continue to be based on the officer salaries and
benefits as calculated per “Attachment A.”
The full annual salary of the two SROs is $587,939.98. GUSD’s portion of the cost is
$293,969.99. The GUSD’s share of the cost covers the SROs’ on-campus duties and regular
patrol duties, as determined by the Gilroy Police Department, performed during the GUSD 2026-
2027 school year.
4. Relationship. The relationship of the Parties is that of independent contractors. Nothing
contained in this Agreement shall be construed to create any principal or agent relationship,
partnership, joint venture, or participation in a joint or common undertaking, between the Parties.
The SROs are not employees of the GUSD and will at all times during the term of this
Agreement remain under the direct control and command of the Gilroy Police Department. The
City and its Police Department will supply all necessary equipment for the SROs for the
performance of their SRO duties. The SROs may on an emergency basis be called away from
their on-campus duties to perform regular duties during GUSD school operational hours, as
needed.
5. Indemnification. Neither Party nor any officer, employee, official, or agent thereof is
responsible for any injury, damage or liability occurring by reason of anything done or omitted to
be done by the other Party under or in connection with any work, authority or jurisdiction arising
under this Agreement. It is understood and agreed that each Party shall fully defend, indemnify
and hold harmless the other Party and all of its officers, employees, officials, or agents thereof
from all claims, suits or actions of every name, kind and description brought forth under,
including, but not limited to, tortious, contractual, or other theories or assertions of liability
occurring by reason of anything done or omitted to be done by the other Party, under this
Agreement.
In addition, in lieu of and notwithstanding the pro rata risk allocation, which might
otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the
Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but,
instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the parties
hereto shall fully indemnify and hold each of the other Parties, their officers, officials,
Page 27 of 267
employees, and agents, harmless from any claim, expense or cost, damage or liability imposed
for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent
acts or omissions or willful misconduct of the indemnifying Party, its officers, officials,
employees, or agents, under or in connection with or arising out of any work, authority, or
jurisdiction delegated to such Party under this Agreement. The obligations set forth in this
paragraph will survive termination and expiration of this Agreement.
6. Termination. Either Party may terminate this Agreement for cause or convenience at any
time upon giving thirty (30) days written notice to the other Party, in accordance with paragraph
7, below. Either Party’s failure to comply with the terms, conditions, or provisions of this
Agreement may be grounds for termination upon thirty (30) days written notice by the other
Party.
7. Notice. Any notices required or permitted hereunder shall be given to the appropriate
party at the address specified below or at such other address as the Party shall specify in writing.
Such notice shall be deemed given upon personal delivery; or if sent by first class mail, postage
prepaid, three (3) days after the date of mailing; or if sent by nationally recognized overnight
carrier, on the date of receipt or refused receipt by the receiving party.
City:
City of Gilroy
Attn: Matt Morley
7351 Rosanna St.
Gilroy, CA 95020
GUSD:
Gilroy Unified School District
Attn: __________
7810 Arroyo Circle
Gilroy, CA 95020
8. Amendment. This Agreement may be amended only by mutual, written agreement
executed by both Parties.
9. No Assignment. Neither this Agreement nor any portion shall be assigned by either Party,
without prior written consent of the other Party.
10. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless
continue in full force without being impaired or invalidated in any way, except that if any of the
obligations of the parties under paragraph 1, above, should be determined to be invalid, void, or
unenforceable, then this Agreement shall terminate upon such final determination.
Page 28 of 267
11. 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 will have any
claim or right of action hereunder for any cause whatsoever.
12. 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 any and all
actions or disputes arising out of this Agreement shall be in State and Federal courts located in
Santa Clara County, California.
13. Counterparts. This Agreement may be signed in counterparts, each of which shall be
deemed to be an original, but all of which taken together, shall constitute one and the same
agreement.
14. Waiver. No waiver by either Party of any breach, default, or violation of any term,
warranty, representation, agreement, covenant, condition, or provision hereof shall constitute a
waiver of any subsequent breach, default, or violation of the same or any other term, warranty,
representation, agreement, covenant, condition, or provision thereof. All waivers must be in
writing and signed by the Party against whom enforcement of the waiver is sought. All remedies
are cumulative, and the election to pursue less than all remedies shall not be a waiver of the right
to pursue any remedy.
15. Entire Agreement. This Agreement, including any exhibits hereto, constitutes the entire
Agreement between the Parties and supersedes any previous agreement, oral or written.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and
year first written above.
ATTEST: CITY OF GILROY
______________________________ ______________________________
City Clerk City Administrator
APPROVED AS TO FORM: GILROY UNIFIED SCHOOL DISTRICT
______________________________ ______________________________
City Attorney District Superintendent
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________
District Clerk District General Counsel
Page 29 of 267
Gilroy Police Department
School Resource Officer Program
Position:
Year:
EmplID: 873741 EmplID: 488126
Calculation Type Annual Annual
Base Salary 144,184.00
Benefits
169,416.20
155,904.91 118,434.87
Total Employee Cost 325,321.11 262,618.87
Grand Total Employee Cost 587,939.98
Gilroy Unified School District Contribution 293,969.99
REVENUE CODE: 1003010-47810 CHARGE CODE: PDSRO
Police Officer
Fiscal Year 2026-2027
Attachment A
Page 30 of 267
6.3.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve the Second Amendment for HydroScience Design
Services Contract for Water Utility Improvements to increase
by $175,395, for a New Total Not-to-exceed Amount of
$1,112,985
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Utilities
Submitted by: Karl Bjarke, Interim Public Utilities Director
Prepared by: Karl Bjarke, Interim Public Utilities Director
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
1. Approve the reallocation of $136,292 of Fiscal Year 2026 CIP funds from
construction to design for the following project codes relating to Water Utility
Improvements Project No. 24-RFP-PW-497: CIP # 800250; CIP # 800590; CIP #
800600; CIP # 800610; CIP # 800660; and CIP # 800890.
2. Approve a 2nd Amendment to the HydroScience Engineers, Inc. Agreement in
the amount of $173,395 for Water Utility Improvements Project No. 24-RFP-PW-
497 and authorize the City Administrator to execute the amendment and
associated documents.
EXECUTIVE SUMMARY
The Water Utility Improvements Project No. 24-RFP-PW-497 (Project) includes the
design and preparation of bid documents for six individual water utility projects. The
project is also identified as “Bundle 2” because it is composed of a set of smaller,
distinct Capital Improvements Program (CIP) projects. HydroScience Engineers, Inc.
was awarded the project design on February 5, 2024. The project is currently under
design; however, several field issues have come to light, and, with the City's request for
Page 31 of 267
6.3.
more survey and investigative work, additional design services to complete the design
are required. Proposed Amendment #2 adds $173,395 to the base contract. This is
proposed to be paid from two sources: 1. Unused Optional Task work, and 2.
Reallocation of $136,292 of construction funds to design work. Executing Amendment
#2 will exceed the previously approved Council-authorized amount for this Agreement.
It is requested that an additional $136,292 be applied from the Fiscal Year 2026
Construction fund to fully fund the cost of Amendment #2.
BACKGROUND
On February 5, 2024, the City awarded a design services agreement with HydroScience
Engineers, Inc. for the design of Water Utility Improvements Project No. 24-RFP-PW-
497. The City Council approved an original contract amount of $842,790 with a
contingency of $126,419. On February 26, 2024, the City executed Amendment #1 to
add two project locations that require rehabilitation (water lines in Swanston Avenue
and Casey Lane). Amendment #1 consumed $94,800 of contingency funding. All
included after Amendment #1, the project is now set to rehabilitate water lines at six
different locations in the City. All of these water lines have been identified as needing
immediate repair or replacement.
As the field survey work has evolved, HydroScience has brought several matters to the
City's attention that must be resolved to complete the design. These include:
1. Identifying the multiple water meters that will be affected during construction.
Services for customers will invariably be impacted at some point during
construction, and it is vital to have a reliable accounting of meters in the field to
minimize construction impacts. In addition, meters may need to be relocated to
prevent damage.
2. Certain fire hydrants will need to be relocated to better align with the new water
line installations.
3. Service lines to customer meters and fire hydrants will be replaced to meet City
design standards.
4. Surveying work should include existing survey monuments to ensure the
accuracy of horizontal and vertical locations of improvements. This requirement
was not included in the original scope.
5. Certain sections of the construction contract specifications were provided later in
the process, which required HydroScience to devote additional time to
coordinating and integrating the full specifications package.
6. Following the staff's initial review and comments on HydroScience's design
submittals, additional feedback was subsequently provided. This required
HydroScience to pause ongoing work to address and incorporate the updated
input into the design.
Collectively, these field conditions, scope clarifications, and iterative review comments
have increased the effort required to deliver a comprehensive, constructible design
package.
Page 32 of 267
6.3.
As a result, due to the inherent complexities associated with underground utility work
and the potential for construction delays and claims, staff have undertaken a thorough
review of design details to be incorporated into the construction documents. This
enhanced level of review has resulted in additional coordination and design effort by
HydroScience, necessitating the request for approval of Amendment No. 2. The
additional design work is expected to reduce potential issues during construction and
support a more efficient project delivery.
ANALYSIS
The design consulting firm, HydroScience Engineers, in collaboration with Utilities
Department staff, has identified a range of issues that must be resolved before the final
bid documents can be prepared. HydroScience provided a proposal to address these
design needs. Staff has closely reviewed the proposal, negotiated the requested fee
downward, and is now recommending the approval of Amendment #2 to keep the
project moving forward.
ALTERNATIVES
The City Council could reject the proposed Amendment No. 2; however, this action is
not recommended. Without the additional design effort, the project may be delayed or
suspended. As the engineer of record for this project, HydroScience has a professional
responsibility to ensure the adequacy of the design and may be unable to proceed if the
current level of design is deemed inadequate.
FISCAL IMPACT/FUNDING SOURCE
The Utilities Department’s adopted FY 2026 Capital Improvement Program (CIP)
includes $6,332,000 for six projects within the Water Improvements Projects (Bundle 2),
all funded through Water Fund (705). These funds are already appropriated by the
Council and support essential investments in the City’s water infrastructure
To execute the proposed Amendment #2, an additional $136,292 is requested to be
reallocated from the adopted FY 2026 CIP construction funding. Staff recommends
rebalancing project budgets to reflect current project demands. Specifically, staff
recommends reallocating a portion of existing construction funds tied to the six projects
included in Project 24-RFP-PW-497 to design services. There are sufficient funds in
each of the six projects to make the reallocation, and thus, no net impact or budget
adjustment is necessary at this time. This adjustment will strengthen project readiness,
improve cost control, and reduce the risk of construction delays.
Page 33 of 267
6.3.
PUBLIC OUTREACH
N/A
NEXT STEPS
Should the Council approve the actions recommended in this report, HydroScience will
be directed to complete the bid documents for the project, and the City will be in a
position to put the project out to bid.
Attachments:
1. Amend 2 - Water Improvement Project Final 3.21 SIGNED
2. Amendment No. 2 - 032426
Page 34 of 267
-1-
SECOND AMENDMENT TO AGREEMENT WITH HYDROSCIENCE ENGINEERS, INC.
FOR DESIGN OF WATER UTILITY IMPROVEMENTS PROJECT NO. 24-RFP-PW-497
This the Second Amendment to the Agreement for Services (“First Amendment”) is made and
entered into as of April 21, 2026 (“Effective Date”), by and between the City of Gilroy, a municipal
corporation (“City”), and HydroScience Engineers (“Consultant”).
WHEREAS, the City and Consultant entered into that certain agreement entitled “Agreement For
Services” for Project No. 24-RFP-PW-497, effective on February 26, 2024, hereinafter referred to as
“Original Agreement”; and
WHEREAS, the City and Consultant executed a First Amendment to this Agreement on February
26, 2024 in an amount of $94,800 and including an amended term of February 1, 2027; and
WHEREAS, City and Consultant have determined it is in their mutual interest to amend certain
terms of the Original Agreement.
NOW, THEREFORE, for valuable consideration, the parties hereto agree as follows:
1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
This Agreement will become effective on February 26, 2024 and will continue in effect through
June 30, 2028 unless terminated in accordance with the provisions of Article 7 of this
Agreement.
Any lapse in insurance coverage as required under Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any provision stated herein
2. Article 4 Compensation of the Original Agreement shall be further amended to read as follows:
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D”. The total compensation of the original
amount shall increase by $175,395 for a new total amount not to exceed $1,112,985.
3. Exhibit “B” (Scope of Services) of the Original Agreement under Project Understanding shall be
amended as follows
As identified in the March 24, 2026 letter from HydroScience, Subject: Amendment #2
– Water Utility Improvements Project, additional services include modifications to the
plans to account for water meter locations and identification; relocation of certain water
meters; replacement of fire hydrant laterals, revision to customer laterals, complete
coordination of general specifications with technical specifications, extended project
management and adjusted hourly rates for construction support due to extension in design
timeline, and re-work of the preparation of 100% plans and specifications.
Page 35 of 267
-2-
4. Exhibit “D” (Payment Schedule), as previously amended, shall be further amended to include:
Item No. Item Name Amount
1. 100% Draft PS&E $95,000
2. Bid Set PS&E $40,000
3. Extended Project Management $25,716
4. Additional Engineering Services (Bidding/Construction) $14,679
Total Fee Amendment Request $175,395
5. Except as expressly modified herein, all of the provisions of the Original Agreement and
subsequent amendments shall remain in full force and effect. In the case of any inconsistencies
between the Original Agreement, any subsequent amendments, and this Amendment, the terms
of this Amendment shall control.
6. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the
dates set forth besides their signatures below.
CITY OF GILROY HydroScience Engineers, Inc.
By: By:
[signature] [signature]
Matt Morley
[employee name] [name]
City Administrator
[title/department] [title]
Date: Date:
APPROVED AS TO FORM ATTEST:
City Attorney City Clerk
Curtis Lam
President
March 27, 2026
Page 36 of 267
March 24, 2026
Karl Bjarke
Director of Public Works
City of Gilroy
Karl.Bjarke@cityofgilroy.org
Subject: Amendment #2 – Water Utility Improvements Project
Dear Mr. Bjarke:
HydroScience has an existing agreement with the City dated February 26, 2024, in the amount
of $842,790. Amendment No. 1 to this contract increased the compensation for this agreement
to $937,590, and extended the agreement term to February 26, 2027.
Amendment No. 2 is required because of significant changes to the anticipated scope of work in
our existing agreement and Amendment No. 1 with the City. Specifically, the out of scope work
includes:
• Significant modifications and rework due to the type, number, and disposition of potable
water meters connected to the pipeline to be replaced. HydroScience reviewed and edited
meter records provided by the City two separate times, and the City updated its meter list a
third time with the receipt of the 95% PS&E comments.
• City asked for several meters to be relocated to new locations, which is different than the
original direction. Meters will need to be relocated to locations suitable to City staff, and we
expect that a site walk or exact detailing by the City will be required for this update.
• We cannot confirm what address is supplied by each meter. However, we will confirm that
every parcel has a potable water lateral provided to it.
• Certain hydrant laterals will also need to be replaced in total based on pipe material. A new
hydrant schedule and details for full lateral replacement versus replacement up to the
existing valve will need to be prepared.
• Selected customers will require design of the customer lateral downstream of the existing
FCD or backflow preventer.
• The front end specifications were rewritten by the City between when they were originally
provided to HydroScience and the receipt of comments on the 95% PS&E. Thus,
HydroScience will need to update our review of the front ends and coordinate the new front
end specifications with the rest of the contract documents.
• HydroScience was provided standard general notes to use in the contract documents.
Significant updates to these notes were requested by the City. HydroScience will replace
these notes with different notes and then make sure that content is not duplicated or
conflicting with other portions of the Contract Documents.
Page 37 of 267
• Significant delays occurred in the execution of the work prior to the preparation of the 35%
PS&E (during 2024/early 2025), following submittal of the 30% PS&E, and following
submittal of the 95% submittal. The current project schedule now will have design and
construction occurring during 2026 or 2027, and project management and coordination
services extending for a longer period than anticipated in the scope of work in the executed
contract. These delays resulted in higher costs, in the form of higher billing rates, extended
time to provide project management and oversight, and additional time required to
coordinate and manage the project.
The end result of these changes is that the City and HydroScience both expect that completion
of the work has been delayed. Due to the scale of the changes requested, and the timing of
those changes, significant rework of effort that was already performed is required. We expect
that this rework will result in the preparation of a 100% Draft PS&E submittal that incorporates
the final disposition of comments received from the City. The Final comments received from the
City will be adjusted based on discussions during 2026 between the City and HydroScience,
and reconfirmed in a coordination meeting to be held between the City and HydroScience
following approval of Amendment No. 2.
For the 100% Draft PS&E, HydroScience will submit PDFs of all plans, word copies of the
specifications, and an excel copy of the estimate. Comments from the City should be provided
either in one excel file encompassing the plans, specs, and estimate, or preferably as track
changes in word and markups on the PDF. Comments on the estimate can be tracked
separately. There will be no changes to the submittal types or format for the final stamped
PS&E from the scope of the original contract.
Assumptions
• No additional utility locating or topographic surveying will be performed in response to any
City comments. Pipeline materials and sizes for known abandoned pipelines will also not be
identified.
• Laterals for gas, electricity, water, and sanitary sewer laterals will not be located on the
profile. It is unlikely that all laterals are available on any plan, and only laterals that are
shown on existing as-builts, laterals visible from the surface or existing survey, or new
laterals that we will install, will be located.
• No plats or legals will be prepared for any required permanent or temporary construction
easements.
• No anti-vandalism measures will be incorporated into the pipeline overcrossing the creek.
Page 38 of 267
Budget and Schedule
Our proposed budget for this project is as follows:
100% Draft PS&E: $95,000.00
Bid Set PS&E: $40,000.00
Extended Project Management: $25,716.00
Additional Engineering Services – Bidding/Construction Phases: $14,679.12
Overall Amendment No. 2 Budget Request $175,395.12
We also expect that payment of the remaining balance not paid to HydroScience for Invoice
Number 355002017 will be made, regardless of whether Amendment No. 2 is executed. This
amount due is $3,703.
We expect that it will take between 8 to 10 weeks to complete the 100% Draft PS&E, following
execution of Amendment No. 2. We expect one set of consolidated review comments to be
provided by the City that incorporate all comments on the plans, specifications, and estimate,
within four weeks of the receipt of the 100% Draft PS&E. The Bid Set PS&E will be returned to
the City within three weeks of receipt of the 100% Draft PS&E comments, assuming no
fundamental comments requiring a significant change to the design are required.
We are projecting that a project schedule for completion of the remaining work will be as
follows:
Execution of Amendment No. 2 April 23, 2026
Start work on 100% Draft PS&E April 27, 2026
Submit 100% Draft PS&E June 30, 2026
Receive comments on 100% Draft PS&E July 27, 2026
Submit stamped PS&E August 17, 2026
Advertise project and award contract September – November 2026
Construct Project January 2027 – October 2027
Based on this schedule, we would propose that Amendment No. 2 extend the contract
termination date to June 30, 2028. This would give ample time for the City to complete work on
this contract without requiring our contract term to be extended by a subsequent amendment.
We are looking forward to completing this project and successfully putting this project into
service. We thank the City for collaborating with us to resolve Amendment No. 2, and look
forward to a mantra of ongoing collaboration and shared success as we move forward.
Should you have any questions about this amendment request, please feel free to contact me at
(530) 848-3938 or clam@hydroscience.com.
Sincerely,
HYDROSCIENCE ENGINEERS
Curtis Lam, PE
President
Page 39 of 267
6.4.
City of Gilroy
STAFF REPORT
Agenda Item Title: Resolution of Intention to Renew the Gilroy Tourism
Business Improvement District (GTBID)
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director
Prepared by: Victoria Valencia, Economic Development Manager, Raissa de la
Rosa, Economic Development Director
STRATEGIC PLAN GOALS: Promote Economic Development Activities
RECOMMENDATION
Adopt the Resolution of Intention to Renew the Gilroy Tourism Business Improvement
District (GTBID)
EXECUTIVE SUMMARY
The Resolution of Intention is the first step in a proposed renewal of the Gilroy Tourism
Business Improvement District (GTBID), an existing benefit assessment district that
funds targeted sales and marketing services. Specifically, adoption of this Resolution
will trigger a public meeting on May 18, 2026, and a public hearing on June 15, 2026,
on the renewal of the GTBID and the levy of assessments on certain lodging
businesses. If renewed, the GTBID is projected to generate approximately $324,000
annually to support destination marketing, tourism promotion, and sales efforts that
directly benefit the assessed businesses. The 2% GTBID is not a tax, but rather a
"pass-through" fee that is added to a guest's bill as part of the overall room charges
when staying at a qualifying lodging establishment.
BACKGROUND
A Tourism Business Improvement District (TBID) is a collaborative funding mechanism
Page 40 of 267
6.4.
by local lodging establishments to create a dedicated, locally controlled revenue stream
to support programs that increase overnight stays and strengthen the city's tourism
economy. A TBID is not a tax. Assessment districts are voluntarily approved and paid
for by the participating businesses. Per industry standard, Gilroy's 2% TBID rate is
added to a guest's bill in the same way other lodging surcharges appear as part of the
overall room charges. The funds generated through a TBID are dedicated to programs
that increase overnight stays, boost visitor spending, and strengthen the local tourism
economy. After a 2% city administrative fee is deducted from the total funds remitted to
the City, the remaining 98% of the funds are disbursed to Visit Gilroy for management
and program implementation, which is also standard practice. TBID funds cannot be
diverted for other government program use, and the funds are governed by those
paying the assessment.
The City established the Gilroy Tourism Business Improvement District (GTBID) on
September 17, 2012, through Resolution No. 2012-36, pursuant to the California
Property and Business Improvement District Law of 1994 (94 Law), for an initial five-
year term. The GTBID was subsequently renewed on October 17, 2016, by Resolution
No. 2016-54 for an additional ten-year term as allowed by state law, and is set to
conclude on December 31, 2027.
Gilroy's lodging business owners decided to pursue renewal of the GTBID to continue
the revenue source devoted to marketing the City as a tourist, meeting and event
destination. If renewed, the GTBID would generate approximately $324,000 on an
annual basis. The renewed GTBID includes all lodging businesses with ten (10) rooms
or more, existing and in the future, available for public occupancy located within the
boundaries of the City of Gilroy. This ten-room threshold has been added to the new
GTBID Management District Plan (Attachment 2) in addition to the continued exemption
of recreational vehicle parks and vacation rentals. The previous Management Plans
remained silent on room thresholds).
ANALYSIS
The GTBID is a benefit assessment district proposed, starting with the Resolution of
Intention, to continue a revenue source to help fund marketing, promotion, and tourism
development that benefits Gilroy lodging businesses. The assessment district includes
all lodging businesses, existing and in the future, available for public occupancy located
within the boundaries of the City of Gilroy. Not included in the assessment nor featured
in GTBID programs are recreational vehicle parks and vacation rentals, nor loading
establishments with fewer than 10 rooms.
Under the California Property and Business Improvement District Law of 1994, under
which the GTBID is established, the maximum term for establishing or renewing a TBID
is ten years. Gilroy's lodging business owners decided to pursue renewal of the GTBID
in order to continue a revenue source devoted to marketing the City as a tourist,
meeting and event destination. If renewed, the GTBID would generate approximately
Page 41 of 267
6.4.
$324,000 on an annual basis for promotion of travel and tourism specific to the City.
Tourism Business Improvement Districts
Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector
operation in the market-based promotion of tourism. These special assessment districts
allow assessed business owners to organize their efforts to increase tourism. Business
owners within the TBID fund the TBID, and those funds are used to provide services
that are desired by and benefit the assessed businesses within the TBID.
TBID Benefits:
• Funds cannot be diverted for other government programs;
• They are customized to fit the needs of each destination;
• They allow for a wide range of services; including: destination marketing, tourism
promotion, and sales lead generation;
• They are designed, created and governed by those who will pay the assessment;
and
• They provide a stable funding source for tourism promotion.
Management District Plan
The Management District Plan (Attachment 1) includes the proposed district boundary,
the service plan and budget, and the means of governance. The GTBID will include all
lodging businesses with ten rooms or more, existing and in the future, available for
public occupancy located within the boundaries of the City, not including vacation
rentals nor recreational vehicle parks.
The current annual assessment rate is two percent (2%) of gross short-term overnight
room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may
be increased by the Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center’s
(GWC) Board to a maximum rate of five percent (5%) of gross room rental revenue for
assessed lodging businesses. If the assessment rate is increased, it may subsequently
be decreased, but shall not be decreased below a minimum of two percent (2%). The
maximum increase or decrease in any year shall be two percent (2%). Based on the
benefit received, assessments will not be collected on stays of more than thirty (30)
consecutive days; and stays by any officer or employee of a foreign government who is
exempt by reason of express provision of federal law or international treaty.
The renewed GTBID will have a ten (10) year term, beginning January 1, 2028, or as
soon as possible thereafter, and ending ten (10) years from its start date.
The City will be responsible for collecting the assessment on a quarterly basis from
each assessed business. The City shall forward the assessments to GWC, which will
Page 42 of 267
6.4.
have the responsibility of managing GTBID programs as provided in the Management
District Plan. The City shall be paid a fee equal to two percent (2%) of the amount of
assessment collected to cover its costs of collection and administration.
GTBID Renewal Process
April 20,
2026
RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business owners in
the renewed GTBID who will pay more than fifty percent (50%) of the
assessments proposed to be levied, the City Council (Council) may initiate
proceedings to renew the GTBID by the adoption of a resolution expressing
its intention to renew the GTBID.
Petition Status
Petitions in favor of GTBID renewal were submitted by assessed
businesses, which represent more than fifty percent (50%) of the total
GTBID assessment. This majority petition allows the Council to initiate
proceedings for GTBID renewal at the April 20, 2026, meeting.
No later
than
May 1,
2026
NOTICE
The 94 Law requires the City to mail written notice to the owners of all
businesses proposed to be assessed within the GTBID. Mailing the notice
begins a mandatory forty-five (45) day period in which assessed business
owners may protest GTBID renewal.
May 18,
2026
PUBLIC MEETING
Allow public testimony on the renewal of the GTBID and levy of
assessments. No Council action required.
June 15,
2026
FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the
renewed GTBID which will pay fifty percent (50%) or more of the
assessments proposed to be levied, and protests are not withdrawn so as
to reduce the protests to less than fifty percent (50%), no further
proceedings to levy the proposed assessment against such businesses
shall be taken for a period of one (1) year from the date of the finding of a
majority protest by the Council.
If the Council, following the public hearing, decides to establish the
renewed GTBID, the Council shall adopt a Resolution of Formation.
ALTERNATIVES
The Council could choose not to adopt the Resolution of Intention. Staff does not
Page 43 of 267
6.4.
recommend this option.
FISCAL IMPACT/FUNDING SOURCE
None immediately. The City will receive a fee of two percent (2%) of the amount
collected to cover its costs of administration. Because the GTBID programs are
intended to increase visitation to the City, there may be an increase in transient
occupancy tax and sales tax collections.
PUBLIC OUTREACH
Outreach and discussions have been conducted directly with the lodging establishments
subject to this assessment.
NEXT STEPS
If adopted, staff will move forward with the GTBID renewal process.
Attachments:
1. Management District Plan GTBID 10-31-25 Final
2. Item 6.4 Resolution of Intent GTBID
3. Gilroy TBID Signed Petition Packet
Page 44 of 267
2028-2037
GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of
1994, Streets and Highways Code section 36600 et seq.
October 31, 2025
Page 45 of 267
Table of Contents
I. OVERVIEW ................................................................................................................................................. 3
II. BACKGROUND .......................................................................................................................................... 5
III. BOUNDARY ............................................................................................................................................... 6
IV. ASSESSMENT BUDGET AND SERVICES .............................................................................................. 7
A. ANNUAL SERVICE PLAN ................................................................................................................................... 7
B. ANNUAL BUDGET ............................................................................................................................................ 8
C. CALIFORNIA CONSTITUTIONAL COMPLIANCE .................................................................................................. 9
D. ASSESSMENT ................................................................................................................................................... 11
E. INTEREST AND OVERDUE CHARGES ............................................................................................................... 12
F. TIME AND MANNER FOR COLLECTING ASSESSMENTS .................................................................................... 12
V. GOVERNANCE ........................................................................................................................................ 13
A. OWNERS’ ASSOCIATION .................................................................................................................................. 13
B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE.............................................................. 13
C. ANNUAL REPORT ........................................................................................................................................... 13
APPENDIX 1 – LAW .......................................................................................................................................... 14
APPENDIX 2 – ASSESSED BUSINESSES* ..................................................................................................... 26
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
Page 46 of 267
GTBID Management District Plan 3
October 31, 2025
I. OVERVIEW
Developed by Gilroy lodging businesses and Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome
Center (GWC), the Gilroy Tourism Business Improvement District (GTBID) is an assessment district
proposed to continue to provide specific benefits to payors by funding Sales and Marketing promotion
efforts for assessed lodging businesses. This approach has been used successfully in other destination
areas throughout the country to provide the benefit of additional room night sales directly to payors.
The GTBID was initially created in 2012 for a five (5) year term and was subsequently renewed in
2018 for a ten (10) year term. Lodging businesses and the GWC now wish to renew the GTBID for
an additional ten (10) year term.
Location: The renewed GTBID includes all lodging businesses with ten (10) rooms or more,
existing and in the future, available for public occupancy located within the boundaries
of the City of Gilroy (City), as shown on the map in Section III.
Services: The GTBID is designed to provide specific benefits directly to payors by increasing
awareness and demand for room night sales. Sales and Marketing promotions, and
other improvements and activities set forth in this Management District Plan (Plan),
will increase demand for overnight tourism and market payors as tourist, meeting and
event destinations, thereby increasing demand for room night sales.
Budget: The total GTBID annual assessment budget for the initial year of its ten (10) year
operation is anticipated to be approximately $324,000. This assessment budget is
expected to fluctuate as room sales do, as businesses open and close, and if the
assessment rate is increased or decreased pursuant to this Plan.
Cost: The initial annual assessment rate is two percent (2%) of gross short-term sleeping
room rental revenue. During the GTBID’s ten (10) year term, the assessment rate
may be increased by the GWC’s Board to a maximum rate of five percent (5%) of
gross short-term sleeping room rental revenue for assessed lodging businesses. If the
assessment rate is increased, it may subsequently be decreased , but shall not be
decreased below a minimum of two percent (2%) of gross short-term sleeping room
rental revenue. The maximum increase or decrease in any year shall be two percent
(2%). Based on the benefit received, assessments will not be collected on stays of
more than thirty (30) consecutive days; and stays by any officer or employee of a
foreign government who is exempt by reason of express provision of federal law or
international treaty. ………………………………………………………………………………………..
Collection: The City will be responsible for collecting the assessment on a quarterly basis
(including any delinquencies, interest, and overdue charges) from each assessed
lodging business located in the boundaries of the GTBID. The City shall take all
reasonable efforts to collect the assessments from each assessed lodging business.
Duration: The renewed GTBID will have a ten (10) year life, beginning January 1, 2028
through December 31, 2037. After ten (10) years, the GTBID may be renewed
pursuant to the Property and Business Improvement District Law of 1994, Streets
and Highways Code section 36600 et seq. (94 Law) if assessed lodging business
owners support continuing the GTBID programs. Once per year, beginning on the
Page 47 of 267
GTBID Management District Plan 4
October 31, 2025
anniversary of district renewal, there is a 30-day period in which owners paying more
than fifty percent (50%) of the assessment may protest and initiate a City Council
hearing on district termination.
Management: The GWC shall continue to serve as the GTBID’s Owners’ Association. The Owners’
Association is charged with managing funds and implementing programs in
accordance with this Plan and must provide annual reports to the City Council.
Page 48 of 267
GTBID Management District Plan 5
October 31, 2025
II. BACKGROUND
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was
formed in West Hollywood, California in 1989. Since then, over 100 California destinations have
followed suit. In recent years, other states have begun adopting the California model –Illinois,
Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have
adopted TBID laws. Several other states are in the process of adopting their own legislation. The
cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law
to form a TBID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have
utilized their home rule powers to create TBIDs without a state law.
California’s TBIDs collectively raise over
$300 million annually for local destination
marketing. With competitors raising their
budgets, and increasing rivalry for visitor
dollars, it is important that Gilroy lodging
businesses continue to invest in stable,
commerce-specific marketing programs.
TBIDs utilize the efficiencies of private
sector operation in the market-based
promotion of tourism districts. TBIDs allow
tourism business owners to organize their
efforts to increase commerce. Lodging
business owners within the TBID pay an
assessment and those funds are used to
provide services that increase commerce.
In California, most TBIDs are formed pursuant to the Property and Business Improvement District
Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a
specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds
raised are returned to the private non-profit corporation governing the district.
There are many benefits to TBIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those
who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of payors in each destination;
• They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and
• They provide a stable, long-term funding source for tourism promotion.
0
20
40
60
80
100
120
Number of Districts
Operating in California
Page 49 of 267
GTBID Management District Plan 6
October 31, 2025
III. BOUNDARY
The GTBID will include all lodging businesses with ten (10) rooms or more, existing and in the future,
available for public occupancy within the boundaries of the City of Gilroy, as shown in the map below.
Lodging business means: any structure, or any portion of any structure, which is occupied or intended
for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, or
motel. Recreational vehicle parks and vacation rentals will not: be included in the GTBID; pay the
GTBID assessment; or be featured in GTBID programs.
A complete listing of assessed lodging businesses within the renewed GTBID can be found in
Appendix 2.
Page 50 of 267
GTBID Management District Plan 7
October 31, 2025
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to
the payors that are not provided to those not charged, and which do not exceed the reasonable cost
to the City of conferring the benefits or granting the privileges. The privileges and services provided
with the GTBID funds are Sales and Marketing programs, and other improvements and activities set
forth in this Plan, available only to assessed lodging businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed
lodging businesses. A detailed annual assessment budget will be developed and approved by the GWC
Board. The chart below illustrates the initial annual assessment budget allocations. These activities
and allocations will also apply in subsequent years. The total initial assessment budget is estimated to
be $365,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the
budget shall remain the same. However, the GWC Board shall have the authority to adjust budget
allocations between the categories by no more than fifteen percent (15%) of the total budget per year.
A description of the proposed improvements and activities for the initial year of operation is below.
The same activities are proposed for subsequent years. In the event of a legal challenge against the
GTBID, any and all assessment funds may be used for the costs of defending the GTBID.
Each budget category includes all costs related to providing that service . For example, the Sales and
Marketing budget includes the cost of staff time dedicated to overseeing and implementing the Sales
and Marketing program. Staff time dedicated purely to administrative tasks is allocated to the
administrative portion of the budget. The costs of an individual staff member may be allocated to
multiple budget categories. The staffing levels necessary to provide the services below will be
determined by the GWC on an as-needed basis.
Sales &
Marketing,
$259,200
80%
Administration,
$42,120
13%
Contingency/Reserve,
$16,200
5%
City Collection Fee,
$6,480
2%
INITIAL ANNUAL ASSESSMENT BUDGET -
$324,000
Page 51 of 267
GTBID Management District Plan 8
October 31, 2025
Sales and Marketing
A Sales and Marketing program will promote assessed lodging businesses as tourist, meeting, and
event destinations. The Sales and Marketing program will have a central theme of promoting Gilroy
as a desirable place for overnight visits. The program will have the goal of increasing overnight
visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Social media marketing efforts designed to drive overnight visitation and room sales to
assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses;
• Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and
maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed
lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing
costs, office costs, advocacy and other general administrative costs such as insurance, legal, and
accounting fees.
City Collection Fee
The City of Gilroy shall be paid a fee equal to two percent (2%) of the amount of assessment collected
to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there
are contingency funds collected, they may be held in a reserve fund or utilized for other program,
administration, or renewal costs at the discretion of the Owners’ Association. Policies relating to
contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve
fund may be used for the costs of renewing the GTBID.
B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $324,000 annually, or a total
of $7,452,000 through the ten (10) year term of the GTBID if the maximum assessment rate increases
are adopted. This budget is expected to fluctuate as room sales do, as businesses open and close, and
if the assessment rate is increased or decreased pursuant to this Plan.
Page 52 of 267
GTBID Management District Plan 9
October 31, 2025
The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental
revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s
Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for
assessed lodging businesses. If the assessment rate is increase, it may subsequently be decreased, but
shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental
revenue. The maximum increase or decrease in any year shall be two percent (2%).
The table below demonstrates the estimated maximum budget with the assumption that the
assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the
anticipated course of action. Alternate courses of action may be taken in regard to implementing the
assessment rate increase other than what is demonstrated in the chart below, within the parameters of
this Plan.
Estimated Annual Budget if Maximum Assessment Rates Are Adopted
2028-2037
Year
Sales &
Marketing 80%
Administration
13%
Contingency/
Reserve 5%
City Collection
Fee 2%
Total
2028 $259,200 $42,120 $16,200 $6,480 $324,000
2029 $518,400 $84,240 $32,400 $12,960 $648,000
2030 $648,000 $105,300 $40,500 $16,200 $810,000
2031 $648,000 $105,300 $40,500 $16,200 $810,000
2032 $648,000 $105,300 $40,500 $16,200 $810,000
2033 $648,000 $105,300 $40,500 $16,200 $810,000
2034 $648,000 $105,300 $40,500 $16,200 $810,000
2035 $648,000 $105,300 $40,500 $16,200 $810,000
2036 $648,000 $105,300 $40,500 $16,200 $810,000
2037 $648,000 $105,300 $40,500 $16,200 $810,000
Total
$5,961,600
$968,760
$372,600
$149,040
$7,452,000
C. California Constitutional Compliance
The GTBID assessment is not a property-based assessment subject to the requirements of Proposition
218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1
Rather, the GTBID assessment is a business-based assessment, and is subject to Proposition 26.
Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these
exceptions apply to the GTBID a “specific benefit” and a “specific government service.” Both require
that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the
benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or
privilege granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting the
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed
lodging businesses, and are intended only to provide benefits and services directly to those businesses
paying the assessment. These services are tailored not to serve the general public, businesses in general,
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
Page 53 of 267
GTBID Management District Plan 10
October 31, 2025
or parcels of land, but rather to serve the specific businesses within the GTBID. The activities
described in this Plan are specifically targeted to increase demand for room night sales for assessed
lodging businesses within the boundaries of the GTBID, and are narrowly tailored. GTBID funds
will be used exclusively to provide the specific benefit of increased demand for room night sales
directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging
businesses in GTBID programs, or to directly generate sales for non-assessed lodging businesses. The
activities paid for from assessment revenues are business services constituting and providing specific
benefits to the assessed lodging businesses. Nothing in this Plan limits the ability of the Owners’
Association to enter into private contracts with non-assessed lodging businesses for the provision of
services to those businesses.
The assessment imposed by this GTBID is for a specific benefit conferred directly to the payors that
is not provided to those not charged. The specific benefit conferred directly to the payors is an
increase in demand for room night sales. The specific benefit of an increase in demand for room
night sales for assessed lodging businesses will be provided only to lodging businesses paying the
district assessment, with Marketing and Sales programs promoting lodging businesses paying the
GTBID assessment. The Marketing and Sales programs will be designed to increase room night sales
at each assessed lodging businesses. Because they are necessary to provide the Marketing and Sales
programs that specifically benefit the assessed lodging businesses, the administration and contingency
services also provide the specific benefit of increased demand for room night sales to the assessed
lodging businesses.
Although the GTBID, in providing specific benefits to payors, may produce incidental benefits to
non-paying businesses, the incidental benefit does not preclude the services from being considered a
specific benefit. The legislature has found that, “A specific benefit is not excluded from classification
as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without
cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided
directly to the payor that is not provided to those not charged, and which does not exceed the
reasonable costs to the local government of providing the service or product.”4 The legislature has
recognized that marketing and promotions services like those to be provided by the GTBID are
government services within the meaning of Proposition 265. Further, the legislature has determined
that “a specific government service is not excluded from classification as a ‘specific government
service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the
payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
GTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of
such services. The full amount assessed will be used to provide the services described herein. Funds
will be managed by the GWC, and reports submitted on an annual basis to the City. Only assessed
lodging businesses will be featured in marketing materials, receive sales leads generated from GTBID-
funded activities, be featured in advertising campaigns, and benefit from other GTBID-funded
services. The assessed lodging business list was compiled from records provided by the jurisdiction
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
Page 54 of 267
GTBID Management District Plan 11
October 31, 2025
and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section
36615, the City Council’s determination of ownership is final and conclusive, with no obligation to
obtain other information. Non-assessed lodging businesses will not receive these, nor any other,
GTBID-funded services and benefits.
The GTBID-funded programs are targeted directly to benefit assessed lodging businesses. It is,
however, possible that there will be a spill over benefit to non-assessed lodging businesses. If non-
assessed lodging businesses receive incremental room nights, that portion of the promotion or
program generating those room nights shall be paid with non-GTBID funds. GTBID funds shall
only be spent to benefit the assessed lodging businesses, and shall not be spent on that portion of any
program which directly generates incidental room nights for non-assessed lodging businesses.
D. Assessment
The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental
revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s
Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for
assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but
shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental
revenue. The maximum increase or decrease in any year shall be two percent (2%). Based on the
benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days;
and stays by any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
Any assessment increase or decrease authorized by the GWC’s Board pursuant to this Plan shall be
included in the Annual Report described in Section V(C), and approved by the Gilroy City Council
during the fiscal year annual report review. Thereafter, the assessment increase or decrease will be
effective starting the following fiscal year.
The assessment was calculated based on the total cost of the activities to be provided for the benefit
of the businesses within the GTBID, with costs allocated based on the proportional benefit conferred
to each business. Activities funded by the GTBID, are specifically targeted to increase room nights
at assessed lodging businesses. All room night sales do not represent the same benefit to the payors.
For example, a higher priced room night is of greater benefit than a lower priced room night because
the assessee derives greater revenue. To account for this benefit differential and to make sure the
benefits are proportional, an assessment formula based on a percentage of revenue has been selected.
The proposed formula accurately reflects greater benefit to assessed lodging businesses with higher
priced room nights.
The term “gross short-term sleeping room rental revenue” as used herein means: the consideration
charged on the room rate for the occupancy of space in a lodging business valued in money, not
including other charges such as reservation fees, forfeited deposits, cancelation fees, attrition fees, no-
show fees, parking fees, internet fees, roll-a-way beds fees, early and/or late checkout fees, or any
other charges or fees (existing or in the future). Gross sleeping room rental revenue shall not include,
and therefore the assessment shall not be charged upon, any federal, state or local taxes collected,
including but not limited to transient occupancy taxes.
The assessment is levied upon and is a direct obligation of the assessed lodging business. However,
the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount
of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from
the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt
Page 55 of 267
GTBID Management District Plan 12
October 31, 2025
for payment from the business. If the GTBID assessment is identified separately it shall be disclosed
as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of
the assessed lodging business even if it is passed on to transients. The assessment shall not be
considered revenue for calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Interest and Overdue Charges
The GTBID shall reimburse the City for any costs associated with collecting unpaid assessments. If
sums in excess of the delinquent GTBID assessment are sought to be recovered in the same collection
action by the City, the GTBID shall bear its pro rata share of such collection costs. Assessed lodging
businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within
the time required shall pay an overdue charge of ten percent (10%) of the amount of the
assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or
before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the amount
of the assessment in addition to the amount of the assessment and the ten percent (10%)
overdue charge first imposed.
3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, an
overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added
thereto in addition to the overdue charges stated in subsections 1 and 2 of this section E.
4. Interest: In addition to the overdue charges imposed, any lodging business that fails to remit
any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum.
The interest shall be calculated per month or fraction thereof on the amount of the assessment
and overdue charges, from the date on which the remittance first became delinquent until
paid.
5. Overdue Charges Merged with Assessment: Every overdue charge imposed and such interest as
accrues shall become part of the assessment herein required to be paid.
Upon collection of delinquent assessments, overdue charges and interest, the City shall retain the
overdue charges and interest to cover the costs of collection and shall forward the original assessment
amount to the GWC.
F. Time and Manner for Collecting Assessments
The GTBID assessment will be implemented beginning January 1, 2028 through December 31, 2037.
The City will be responsible for collecting the assessment on a quarterly basis (including any
delinquencies, interest and overdue charges) from each assessed lodging business. The City shall take
all reasonable efforts to collect the assessments from each assessed lodging business. The City shall
forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.
Page 56 of 267
GTBID Management District Plan 13
October 31, 2025
V. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code
§36651, to identify the body that shall implement the proposed program, which shall be the Owners’
Association of the GTBID as defined in Streets and Highways Code §36612. The City Council has
determined that GWC will continue to serve as the Owners’ Association for the GTBID.
B. Brown Act and California Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose,
nor may its board members or staff be considered to be public officials for any purpose. The Owners’
Association is, however, subject to government regulations relating to transparency, namely the Ralph
M. Brown Act and the California Public Records Act. These regulations are designed to promote
public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown
Act (Government Code §54950 et seq.). Thus, meetings of the GWC Board and certain committees
must be held in compliance with the public notice and other requirements of the Brown Act.
Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention
on that action of each member present for the action. The Owners’ Association is also subject to the
record keeping and disclosure requirements of the California Public Records Act.
C. Annual Report
The GWC shall present an annual report at the end of each year of operation to the City Council
pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones
or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year.
• An estimate of the cost of providing the improvements and the activities for that fiscal year.
• The method and basis of levying the assessment in sufficient detail to allow each business
owner to estimate the amount of the assessment to be levied against his or her business for
that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
D. Annual Review
The City may review the financial records of the Owners’ Association. A contract shall be entered into
between the City and the Owners’ Association. The contract will document the accounting processes
including collections, allocations, and reporting required to be submitted to the City. The GTBID will
be responsible for reasonable costs associated with the review. In the event of fraudulent activity, the
GTBID will be responsible for all costs associated with the review.
Page 57 of 267
GTBID Management District Plan 14
October 31, 2025
APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are
economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate
facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business
districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts.
(c) It is of particular local benefit to allow business districts to fund business related improvements,
maintenance, and activities through the levy of assessments upon the businesses or real property that
receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific
benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if
property, businesses, or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special
benefits upon properties and businesses within their districts and have made those properties and businesses
more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12 -percent reduction in the
incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the
30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business
improvement districts have become even more important tools with which communities can combat blight,
promote economic opportunities, and create a clean and safe environment.
(g) Since the enactment of this act, the people of California have adopted Proposition 218, which added
Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation
of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the
Constitution provides that property-based districts may only levy assessments for special benefits.
(h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act,
its interaction with the provisions of Article XIII D of the Constitution, and the determination of special
benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this
act, which discourages the use of assessments to fund needed improvements, maintenance, and
activities in property-based districts, contributing to blight and other underutilization of property.
(2) Activities undertaken for the purpose of conferring special benefits upon property to be
assessed inherently produce incidental or collateral effects that benefit property or persons not
assessed. Therefore, for special benefits to exist as a separate and distinct category from general
benefits, the incidental or collateral effects of those special benefits are inherently part of those
Page 58 of 267
GTBID Management District Plan 15
October 31, 2025
special benefits. The mere fact that special benefits produce incidental or collateral effects that
benefit property or persons not assessed does not convert any portion of those special benefits or
their incidental or collateral effects into general benef its.
(3) It is of the utmost importance that property-based districts created under this act have clarity
regarding restrictions on assessments they may levy and the proper determination of special
benefits. Legislative clarity with regard to this act will prov ide districts with clear instructions and
courts with legislative intent regarding restrictions on property-based assessments, and the manner
in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy
assessments within property and business improvement districts, to ensure that those assessments conform to all
constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.
This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of
improvements or activities or the raising of revenue for these pur poses.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a
different method of levying assessments for similar or additional purposes from those set forth in this part. A
property and business improvement district created pursuant to this part is expressly exempt from the provisions of
the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with
Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law,
as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall
remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal
services supplemental to those normally provided by the municipality.
(f) Other services provided for the purpose of conferring special benefit upon assessed real property or
specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and
providing activities that will provide certain benefits to properties or businesses located within a property and
business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.
Page 59 of 267
GTBID Management District Plan 16
October 31, 2025
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which
includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission,
or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as
defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an
estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and property within the district.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement
improvements, maintenance, and activities specified in the management district plan. An owners’ association may
be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and
may not be considered a public entity for any purpose, nor may its board members or staff be considered to be
public officials for any purpose. Notwithstanding this sec tion, an owners’ association shall comply with the Ralph
M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code), at all times when matters within the subject matter of the district are heard, disc ussed, or deliberated, and
with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the
Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.
Page 60 of 267
GTBID Management District Plan 17
October 31, 2025
36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district
established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property -based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise
known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the
owner of the business. “Owner” means either a business owner or a property owner. The city council has no
obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership
shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property
owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the
signature of the business owner, the signature of the authorized agent of the b usiness owner shall be sufficient.
36615.5. “Special benefit”
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over
and above general benefits conferred on real property located in a district or to the public at large. Special
benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities
of property-based districts even if those incidental or collateral effects benefit property or persons not
assessed. Special benefit excludes general enhancement of property value .
(b) “Special benefit” also includes, for purposes of a property -based district, a particular and distinct benefit
provided directly to each assessed parcel within the district. Merely because parcels throughout an
assessment district share the same special benefits does not make the benefits general.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this
part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements
or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the
Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is
valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
Page 61 of 267
GTBID Management District Plan 18
October 31, 2025
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of
that city. A city may not form a district within the unincorporated territory of a county without the consent of the
board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city
without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed
district who will pay more than 50 percent of the assessments proposed to be levied, the city council may
initiate proceedings to form a district by th e adoption of a resolution expressing its intention to form a
district. The amount of assessment attributable to property or a business owned by the same property or
business owner that is in excess of 40 percent of the amount of all assessments proposed t o be levied, shall
not be included in determining whether the petition is signed by property or business owners who will pay
more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of
the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
(3) Information specifying that the complete management district plan shall be furnished upon
request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district, which may be made by reference to any plan or
map that is on file with the clerk. The descriptions and statements do not need to be detailed and
shall be sufficient if they enable an owner to generally identify the nature and extent of the
improvements, maintenance, and activities, and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business
improvement district and the levy of assessments, which shall be consistent with the requirements
of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each
parcel of property and, if businesses are to be assessed, each business within the district. If the assessment
will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a
business owner to reasonably determine whether a business is located within the district boundaries. If the
assessment will be levied on property and businesses, a map of the district i n sufficient detail to locate each
parcel of property and to allow a business owner to reasonably determine whether a business is located
within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for
establishment or extension in a manner sufficient to identify the affected property and businesses included,
which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a
proposed property assessment district shall not overlap with the boundaries of another existing property
assessment district created pursuant to this part. This part does not prohibit the boun daries of a district
created pursuant to this part to overlap with other assessment districts established pursuant to other
provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989
(Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business
assessment district created pursuant to this part to overlap with another business assessment district created
pursuant to this part. This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and
the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of
operation are the same, a description of the first year’s proposed improvements, maintenance, and activities
Page 62 of 267
GTBID Management District Plan 19
October 31, 2025
and a statement that the same improvements, maintenance, and activities are proposed for subsequent years
shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and
debt service in each year of operation of the district. If the assessment is levied on businesses, this amount
may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in
each year of operation of the district is not significantly different, the amount proposed to be expended in
the initial year and a statement that a similar amount applies to subsequent years shall satisfy the
requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the
assessment in sufficient detail to allow each property or business owner to calculate the amount of the
assessment to be levied against their property or business. The plan also shall state whether bonds will be
issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum
number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.
Notwithstanding these limitations, a district created pur suant to this part to finance capital improvements
with bonds may levy assessments until the maximum maturity of the bonds. The management district plan
may set forth specific increases in assessments for each year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers
for properties to be assessed, and a statement of the method or methods by which the expenses of a
district will be imposed upon benefited real property or businesses, in proportion to the benefit
received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel
shall be determined exclusively in relationship to the entirety of the capital cost of a public
improvement, the maintenance and operation expenses of a public improvement, or the cost of the
activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of
the proportional special benefit conferred on that parcel. Only special benefits are assessable, and
a property-based district shall separate the general benefits, if any, from the special benefits
conferred on a parcel. Parcels within a property -based district that are owned or used by any city,
public agency, the State of California, or the United States shall not be exemp t from assessment
unless the governmental entity can demonstrate by clear and convincing evidence that those
publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary,
or collateral effects that arise from the improvements, maintenance, or activities of a property-
based district and that benefit property or persons not assessed shall not be deducted from the
entirety of the cost of any special benefit or affect the proportionate special benefit derived by
each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special
benefits. In a district with boundaries that define which parcels are to receive improvements,
maintenance, or activities over and above those services provided by the city, the improvements,
maintenance, or activities themselves may constitute a special benefit. The city may impose
assessments that are less than the proportional special benefit conferred, but shall not impose
assessments that exceed the reasonable costs of the proportional special benefit conferred. Because
one or more parcels pay less than the special benefit conferred does not necessarily mean that
other parcels are assessed more than the reasonable cost of their special benefit.
(l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer
certified by the State of California supporting all assessments contemplated by the management district
plan.
(m) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and
hearing procedure shall comply with Section 53753 of the Government Code.
(b) If a city council proposes to levy a new or increased business assessment, the notice and protest and
hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be
Page 63 of 267
GTBID Management District Plan 20
October 31, 2025
mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing
by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for
the public hearing. The city council may waive any irregularity in the form or content of any written
protest. A written protest may be withdrawn in writing at any time before the conclusion of the public
hearing. Each written protest shall contain a description of the business in which the per son subscribing the
protest is interested sufficient to identify the business and, if a person subscribing is not shown on the
official records of the city as the owner of the business, the protest shall contain or be accompanied by
written evidence that the person subscribing is the owner of the business or the authorized representative. A
written protest that does not comply with this section shall not be counted in determining a majority protest.
If written protests are received from the owners or author ized representatives of businesses in the proposed
district that will pay 50 percent or more of the assessments proposed to be levied and protests are not
withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the pr oposed
assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of
one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property
assessment and a new or increased business assessment, the notice and protest and hearing procedure for
the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure
for the business assessment shall comply with subdivision (b). If a majority protest is received from either
the property or business owners, that respective portion of the assessment shall not be levied. The
remaining portion of the assessment may be levied unless the improvement or other special benefit was
proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or
modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with
the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the
public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and
business improvement district that will exclude territory that will not benefit from the proposed improvements,
maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district
shall be reflected in the notice and map recorded pursuant to Section 3 6627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business
improvement district, the city council shall adopt a resolution of formation that shall include, but is not
limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property,
businesses, or both within the district, a statement on whether b onds will be issued, and a
description of the exterior boundaries of the proposed district, which may be made by reference to
any plan or map that is on file with the clerk. The descriptions and statements need not be detailed
and shall be sufficient if they enable an owner to generally identify the nature and extent of the
improvements, maintenance, and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of the
district.
(4) A determination regarding any protests received. The city shall not establish the district or levy
assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district
established by the resolution shall be subject to any amendments to this part.
(6) A statement that the improvements, maintenance, and activities to be conferred on businesses
and properties in the district will be funded by the levy of the assessments. The revenue from the
levy of assessments within a district shall not be used to provide improvements, maintenance, or
activities outside the district or for any purpose other than the purposes specified in the resolution
of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the
Page 64 of 267
GTBID Management District Plan 21
October 31, 2025
district boundaries to create a special or specific benefit to the assessed parcels or businesses may
be provided, but shall be limited to marketing or signage pointing to the district.
(7) A finding that the property or businesses within the area of the property and business
improvement district will be benefited by the improvements, maintenance, and activities funded
by the proposed assessments, and, for a property-based district, that property within the district
will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the
properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant
to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the
management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the
clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5
(commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of
benefit derived from the improvements or activities to be provided within the benefit zone and may impose a
different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may
also define categories of businesses based upon the degree of benefit that each will derive from the improvements or
activities to be provided within the district and may impose a different assessment or rate of assessment on each
category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant
to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the
distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property -
based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and
business improvement district apply to the establishment, modification, or disestablishment of benefit zones or
categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of
business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of
Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by
the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the
same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and
penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be
charged interest and penalties.
Page 65 of 267
GTBID Management District Plan 22
October 31, 2025
36632. Assessments to be based on estimated benefit; Classification of real property and businesses;
Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated
benefit to the real property within the property and business improvement district. The city council may
classify properties for purposes of determining the benefit to property of the improvements and activities
provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated
benefit to the businesses within the property and business improvement district. The city council may
classify businesses for purposes of determining the benefit to the businesses of the improvements and
activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively
presumed not to benefit from the improvements and service funded through these assessments, and shall
not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the
action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to
Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after
the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would
continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any
modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management
district plan after conducting one public hearing on the proposed modifications. The city council may
modify the improvements and activities to be funded wi th the revenue derived from the levy of the
assessments by adopting a resolution determining to make the modifications after holding a public hearing
on the proposed modifications. If the modification includes the levy of a new or increased assessment, the
city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section
shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city
once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10
days before the public hearing, to each business owner or property owner affected by the proposed
modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the
public hearing required by this section. The public hearing shall be held not more than 90 days after the
adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant
to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]
Page 66 of 267
GTBID Management District Plan 23
October 31, 2025
(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for
purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code.
(b) This section shall become operative on July 1, 2024.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the
estimated cost of some or all of the proposed improvements described in the resolution of formation
adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides
for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4
(commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either
act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although
proceedings under the Bond Act of 1915 may be modified by the city co uncil as necessary to accommodate
assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements
specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of
those improvements, specify the number of annual installments and the fiscal years during which they are
to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue
estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on
any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with
the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for
which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and
activities described in the report. The owners’ association’s first report shall be due after the first year of
operation of the district. The report may propose changes, including, but not limited to, the boundaries of
the property and business improvement district or any benefit zones within the district, the basis and
method of levying the assessments, and any changes in the classification of property, including any
categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district
by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall
contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or
in any benefit zones or classification of property or businesses within the district.
(2) The improvements, maintenance, and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements, maintenance, and activities for that
fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property
or business owner, as appropriate, to estimate the amount of the assessment to be levied against
his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any
particular contained in the report and approve it as modified. Any modification shall be made pursuant to
Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would
impair an authorized or executed contract to be paid from the revenues derived from the levy of
Page 67 of 267
GTBID Management District Plan 24
October 31, 2025
assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the
district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the
improvements, maintenance, and activities described in the management district plan. If the management district
plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide
services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by
following the procedures for establishment as provided in this chapter.
(b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived
from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the
renewed district includes additional parcels or businesses not included in the prior district, the remaining
revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district
does not include parcels or businesses included in the prior district, the remaini ng revenues attributable to
these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue
bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries,
assessments, improvements, or activities of a r enewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no
indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be
disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation
of law in connection with the management of the district, it shall notice a hearing on
disestablishment.
(2) During the operation of the district, there shall be a 30 -day period each year in which assessees
may request disestablishment of the district. The first such period shall begin one year after the
date of establishment of the district and shall continue for 30 days. The next such 30-day period
shall begin two years after the date of the establishment of the district. Each successive year of
operation of the district shall have such a 30-day period. Upon the written petition of the owners
or authorized representatives of real property or the owners or authorized representatives of
businesses in the district who pay 50 percent or more of the assessments levied, the city council
shall pass a resolution of intention to disestablish the district. The city cou ncil shall notice a
hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public
hearing required by this section. The resolution shall state the reason for the disestablishment, shall state
the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with
the revenues of the assessments levied within the property and business improvement district. The notice of
the hearing on disestablishment required by this section shall be given by m ail to the property owner of
each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city
shall conduct the public hearing not less than 30 days after mailing the notice to the property or business
owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of
intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district;
Calculation of refund; Use of outstanding revenue collected after disestablishment of district
Page 68 of 267
GTBID Management District Plan 25
October 31, 2025
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all
outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired
with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the
property or businesses then located and operating within the district in which assessments were levied by
applying the same method and basis that was used to calculate the assessments levied in the fiscal year in
which the district is disestablished or expires. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis
that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to
calculate the amount of any refund.
Page 69 of 267
GTBID Management District Plan 26
October 31, 2025
APPENDIX 2 – ASSESSED BUSINESSES*
Lodging Business Street Address City, State, ZIP
Best Western Plus / Forest
Park Inn
375 Leavesley Road Gilroy, CA 95020
Budget Motels / Whiterock 8897 Monterey Road Gilroy, CA 95020
Garlic Farm Inn 5920 Travel Park Circle Gilroy, CA 95020
Gilroy Inn 611 Leavesley Road Gilroy, CA 95020
Days Inn 8290 Murray Avenue Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road Gilroy, CA 95020
Motel 6 6110 Monterey Road Gilroy, CA 95020
Oaks Motel 8065 Monterey Road Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street Gilroy, CA 95020
Quality Inn & Suites 8430 Murray Road Gilroy, CA 95020
Econolodge 360 Leavesley Road Gilroy, CA 95020
Comfort Inn 8435 San Ysidro Avenue Gilroy, CA 95020
Travel Inn 5530 Monterey Road Gilroy, CA 95020
Hampton Inn 5975 Travel Park Circle Gilroy, CA 95020
*Jurisdiction list as of October 20, 2025
Page 70 of 267
RESOLUTION NO. 26-XXX
A RESOLUTION OF THE CITY COUNCIL (COUNCIL) OF
THE CITY OF GILROY (CITY) DECLARING ITS INTENTION
TO RENEW THE GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT (GTBID) AND FIXING THE TIME
AND PLACE OF A PUBLIC MEETING AND A PUBLIC
HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City created the GTBID on September 17, 2012 by Resolution No. 2012-36
for an initial five (5) year term; and
WHEREAS, the GTBID was subsequently renewed on October 17, 2016 by Resolution No.
2016-54 for an additional ten (10) year term, which ends on December 31, 2027; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways
Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of
promoting tourism; and
WHEREAS, Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC), lodging
business owners, and representatives from the City have met to consider the renewal of the GTBID;
and
WHEREAS, lodging businesses worked with GWC to develop a Management District Plan
(Plan) which sets forth the proposed boundary of the GTBID, a service plan and budget, and a
proposed means of governance; and
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment
under the GTBID have petitioned the Council to renew the GTBID.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The Council finds that assessed businesses that will pay more than fifty percent (50%) of the
assessment proposed in the Plan have signed and submitted petitions in support of the renewal
of the GTBID. The Council accepts the petitions and adopts this Resolution of Intention to
renew the GTBID and to levy an assessment on certain lodging businesses within the GTBID
boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The Council finds that the Plan satisfies all requirements of Streets and Highways Code
§36622.
4. The Council declares its intention to renew the GTBID and to levy and collect assessments on
assessed businesses within the GTBID boundaries pursuant to the Property and Business
Improvement District Law of 1994.
Page 71 of 267
5. The GTBID shall include all lodging businesses with ten (10) rooms or more, existing and in
the future, available for public occupancy located within the boundaries of the City, as shown
in the map attached as Exhibit A.
6. The name of the district shall continue to be the Gilroy Tourism Business Improvement
District.
7. The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental
revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the
GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental
revenue for assessed lodging businesses. If the assessment rate is increased, it may
subsequently be decreased, but shall not be decreased below a minimum of two percent (2%)
of gross short-term sleeping room rental revenue. The maximum increase or decrease in any
year shall be two percent (2%). Based on the benefit received, assessments will not be
collected on stays of more than thirty (30) consecutive days; and stays by any officer or
employee of a foreign government who is exempt by reason of express provision of federal
law or international treaty.
8. The assessments levied for the GTBID shall be applied toward Sales and Marketing programs
to market assessed businesses in the City as tourist, meeting, and event destinations, as
described in the Plan. Funds remaining at the end of any year may be used in subsequent years
in which GTBID assessments are levied as long as they are used consistent with the
requirements of this Resolution and the Plan.
9. The renewed GTBID will have a ten (10) year term, beginning January 1, 2028, or as soon as
possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to
Streets and Highways Code § 36660.
10. Bonds shall not be issued.
11. The time and place for the public meeting to hear testimony on renewing the GTBID and
levying assessments are set for May 18, 2026 at 6:00 PM, or as soon thereafter as the matter
may be heard, at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA
95020.
12. The time and place for the public hearing to renew the GTBID and the levy of assessments are
set for June 15, 2026 at 6:00 PM, or as soon thereafter as the matter may be heard, at the
Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. The City
Clerk is directed to provide written notice to the lodging businesses subject to assessment of
the date and time of the meeting and hearing, and to provide that notice as required by Streets
and Highways Code § 36623, no later than May 1, 2026.
13. At the public meeting and hearing the testimony of all interested persons for or against the
renewal of the GTBID may be received. If at the conclusion of the public hearing, there are of
record written protests by the owners of the assessed businesses within the renewed GTBID
that will pay fifty percent (50%) or more of the estimated total assessment of the entire GTBID,
no further proceedings to renew the GTBID shall occur for a period of one (1) year.
Page 72 of 267
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
PASSED AND ADOPTED this 20th day of April 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 73 of 267
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, April 20, 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 74 of 267
EXHIBIT A
District Boundaries
Page 75 of 267
Page 76 of 267
Page 77 of 267
PETITION TO THE CITY OF GILROY
TO RENEW THE GILROY TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Gilroy Tourism Business Improvement District (GTBID) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the Management
District Plan attached hereto as Exhibit A.
Business Establishment(s) & Address(es)
Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the
person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Visit Gilroy
Frank Johnson, Executive Director
8155-6 Arroyo Circle
Gilroy, CA 95020
(408) 842-6436
Page 78 of 267
6.5.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of a Purchasing Contract With RDO Equipment Co.
of Hayward in the Amount of $104,967 for the Purchase of a
Vermeer BC1500 Wood Chipper Under a Cooperative
Purchasing Agreement with Sourcewell, Contract# 010925-
VRM
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Walter Dunckel, Fleet and Facilities Superintendent
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
Approve a purchase contract with RDO Equipment Co. of Hayward in the amount of
$104,967 for the purchase of a Vermeer BC1500 Wood Chipper, using the cooperative
purchasing agreement with Sourcewell formerly known as National Joint Powers
Alliance (NJPA), and authorize the City Administrator to execute the contract and
related documents.
EXECUTIVE SUMMARY
The Public Works Department uses a wood chipper in conjunction with emergency and
planned tree tree trimming/removal and other vegetation management operations. The
current wood chipper is 25 years old and has reached the end of its useful life. Fleet
staff worked with Public Works Operations staff to find the best replacement chipper
using the Cooperative Purchasing Agreement with Sourcewell, formerly known as
National Joint Powers Alliance (NJPA). Vermeer was selected as the best option for the
City because of its performance capability, updated safety features, emissions
compliance, parts availability, location of the dealer, and warranty. The local Vermeer
dealer, RDO Equipment Co. of Hayward, California, provided the quote.
Page 79 of 267
6.5.
BACKGROUND
The current wood chipper is 25 years old and is no longer in compliance with California
Air Resources Board (CARB) engine emissions requirements. The unit has reached the
end of its useful life and requires frequent, costly maintenance and repair. Rather than
continuing to invest in an aging, non-compliant piece of equipment, the City Council
approved the chipper for replacement in the Fiscal Year 2025-2026 Operating Budget.
The City has used NJPA/Sourcewell in the past for purchasing vehicles and equipment
including the Sewer Vacuum truck (Vactor), Hydro Excavator, sweeper, and other
smaller equipment.
ANALYSIS
The Fleet Section worked with Operations staff to identify the best replacement option
for the wood chipper based on current and future operational needs. Staff compared
factors such as chipping capacity, ease of operation, controls, ergonomics, safety
features, and overall cost. Additional factors including parts availability, proximity of the
dealer, and warranty terms were also considered. Based on this evaluation, staff
recommends the purchase of the Vermeer BC1500 Wood Chipper.
The BC1500 offers significant improvements over the existing unit, including:
• CARB-compliant engine that meets current emissions standards, eliminating the
City’s regulatory exposure.
• Auto-Feed system that automatically senses and adjusts material feed rate,
improving both operator safety and chipping efficiency.
• HitchHiker™ tongue design that allows the unit to be towed without a separate
hitch receiver, reducing setup time in the field.
• Enclosed disc style chipper drum providing improved chip quality, quieter
operation, and reduced kickback risk compared to the existing unit.
• Updated operator safety features including an infeed control bar, emergency
stop, and compliant guarding throughout, significantly reducing the risk of injury
during operation.
The unit price for the BC1500 is $92,051.82, which is a competitive price available to
public agencies through the NJPA/Sourcewell process, utilizing Sourcewell Contract#
010925-VRM Vermeer Contract 010925
ALTERNATIVES
Council could deny the purchase of the Vermeer BC1500 Wood Chipper.
STAFF DOES NOT RECOMMEND THIS OPTION because the current equipment is far
Page 80 of 267
6.5.
beyond its useful life, requires extensive maintenance and repair, and does not comply
with CARB emissions standards. Continued use of the existing chipper exposes the City
to regulatory penalties and creates unacceptable operator safety risks, due to its
outdated safety features.
FISCAL IMPACT/FUNDING SOURCE
The City’s fleet replacement budget for Fiscal Year 2025-2026 includes $122,266 for
the purchase of the wood chipper. The price of the new Vermeer BC1500 Wood
Chipper is $104,967.00 based on a price quote received from RDO Equipment Co.
located in Hayward, California. Funding for the equipment is budgeted in the FY 2026
Fleet Fund. The quote is for approximately $17,000 less than the budgeted.
PUBLIC OUTREACH
None
NEXT STEPS
With Council’s approval, staff will move forward with the purchase of the Vermeer
BC1500 Wood Chipper. Vermeer requires an approximate six-to-eight-week lead time
for delivery to the City and, once delivered, the equipment will be deployable within one
week
Attachments:
1. Updated BC1500 quote sourcewell
Page 81 of 267
Investment Proposal (Quote)
RDO Equipment Co.
24353 Clawiter Rd.
Hayward (VM) CA, 94545
Phone: (510) 460-3900 - Fax: (510) 723-0271
Proposal for:
CITY OF GILROY
613 OLD GILROY ST
GILROY, CA, 95020
SANTA CLARA
Investment Proposal Date:
Pricing Valid Until:
Deal Number:
Customer Account#:
Account Manager:
Phone:
Fax:
Email:
3/3/2026
5/31/2026
1861741
0307014
Daniel Monarrez
1 (510) 398-7187
dmonarrez@rdoequipment.com
Equipment Information
Quantity Serial Number
Stock Number
Hours
(approx.)
Status / Year / Make / Model
Additional Items
Cash Price
1 TBD
TBD
0 New 2025 VERMEER BC1500 $92,051.82
Freight in $1,895.00
Prep / Reconditioning $905.00
Other “Sourcewell - [Contract # 010925-VRM] Member ID [Account #
102062]"
$0.00
Other 5yr telematics $120.00
Equipment Subtotal:$94,971.82
Purchase Order Totals
Balance:$94,971.82
CA STATE TAX:$5,698.31
CA COUNTY TAX:$237.43
CA SPECIAL TAX:$2,730.44
Sales Tax Total:$8,666.18
PrePaid Tax License:$1,325.00
CA Tire Fee:$3.50
Sub Total:$104,966.50
Cash with Order:$0.00
Balance Due:$104,966.50
Equipment Options
Qty Serial Number Year / Make / Model Description
1 TBD 2025 VERMEER BC1500 BC150051VP BC1500 DOM. VALUE PACKAGE 130HP T4F -
WINCH
BC1500014 BC1500 130HP CUMMINS DIESEL - TIER 4 FINAL
BC1500016 ~MANUAL CHUTE ROTATION RIGHT SIDE
BC1500029 BC1500 WINCH RIGHT SIDE CONTROLS
BC1500040 ~BC1500 DOMESTIC 6-WAY ROUND TRAILER PLUG
BC1500052 BC1500 RT SIDE CONTROLS - (130HP) T4F/STAGE IV
BC1500077 BC1500 STANDARD TIRES - 235/75R17.5H/J
BC1500092 ~BC1500 DOMESTIC OPTION 130HP TIER 4 FINAL
BC1500AM010 TELEMATICS
D1861741 Page 1 of 1
Page 82 of 267
6.6.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Gilroy Tourism Business Improvement
District (GTBID) Annual Reports as Submitted by Visit
Gilroy/Gilroy Welcome Center for the Period of January 1,
2022 Through December 31, 2025
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director
Prepared by: Victoria Valencia, Economic Development Manager, Raissa de la
Rosa, Economic Development Director
STRATEGIC PLAN GOALS: Promote Economic Development Activities
RECOMMENDATION
Approve the Gilroy Tourism Business Improvement District (GTBID) annual reports as
submitted by Visit Gilroy/Gilroy Welcome Center for Calendar Years 2022, 2023, 2024,
and 2025.
EXECUTIVE SUMMARY
Per state law, Visit Gilroy/Gilroy Welcome Center Board of Directors representing the
Gilroy Tourism Business Improvement District (GTBID) are required to submit for
Council's approval annual reports outlining, among other things, the improvements,
activities, and services provided, and the costs related to providing those services.
During an internal review of the GTBID program, staff identified a reporting non-
compliance issue, hence the catch-up submission of four years of formal annual reports
at one time.
BACKGROUND
Visit Gilroy/Gilroy Welcome Center Board of Directors representing the Gilroy Tourism
Page 83 of 267
6.6.
Business Improvement District (GTBID) has submitted the attached annual reports
pursuant to Section 36650 of the Street and Highway Code. Established in September
2012, the GTBID is not a tax; rather, it is a self-assessment voluntarily approved and
paid for by the participating businesses with the revenue providing a steady and
dedicated funding source for tourism and overnight stay sales within Gilroy.
Due to staffing changes within both the City and Visit Gilroy/Gilroy Welcome Center,
several annual reports were not previously submitted for Council consideration; an issue
identified by staff during an internal review. The GTBID has since completed the
outstanding reports, which are now being presented together for Council approval.
ANALYSIS
A Tourism Business Improvement District (TBID) is a collaborative funding mechanism
created by local lodging establishments and potentially, though not in Gilroy, tourism-
related businesses, to support marketing, promotion, and tourism development. As
noted above, it is not a tax. Assessment districts, like a TBID or a Property and
Business Improvement District (PBID), are self-assessments voluntarily approved and
paid for by the participating businesses themselves. Gilroy's TBID rate is 2%, which is
added to a guest's bill in the same way other lodging surcharges appear as part of the
overall room charges (an industry standard). The funds generated through a TBID are
dedicated to programs that increase overnight stays, boost visitor spending, and
strengthen the local tourism economy. In Gilroy, these services are provided by Visit
Gilroy and the Gilroy Welcome Center as seen in the attached annual reports.
The annual reports meet and satisfy the state-mandated reporting requirements, and
the services provided by Visit Gilroy/Gilroy Welcome Center, as outlined in those
reports, meet and satisfy the expectations of the local enabling ordinance and
professional service agreement with the City.
ALTERNATIVES
Alternatives are not applicable as this process is required under Section 36650 of the
Street and Highway Code.
FISCAL IMPACT/FUNDING SOURCE
This item has no fiscal impact.
PUBLIC OUTREACH
Not applicable
Page 84 of 267
6.6.
NEXT STEPS
Not Applicable
Attachments:
1. Annual Report GTBID 2022
2. Annual Report GTBID 2023
3. Annual Report GTBID 2024
4. Annual Report GTBID 2025
Page 85 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 1
GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT
2022 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code
Section 36650 for the period from January 1, 2022-December 31, 2022
Page 86 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 2
CONTENTS
BOUNDARIES ...................................................................................................................................................3
IMPROVEMENTS AND ACTIVITIES .............................................................................................................3
COST ...................................................................................................................................................................5
2023 PROJECTIONS ....................................................................................................................................................5
2022 ACTUAL .............................................................................................................................................................5
ASSESSMENT ....................................................................................................................................................6
ASSESSMENT ..............................................................................................................................................................6
DELINQUENCIES .......................................................................................................................................................6
SURPLUS AND OTHER FUNDING ................................................................................................................8
SURPLUS ....................................................................................................................................................................8
OTHER FUNDING ......................................................................................................................................................8
ATTACHMENT 1 ...............................................................................................................................................9
ATTACHMENT 2 ............................................................................................................................................10
Page 87 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 3
BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID)
boundaries. There have been no new lodging businesses, and no lodging businesses have closed.
The GTBID will continue to include all lodging businesses, existing and in the future, available for
public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map
below.
IMPROVEMENTS AND ACTIVITIES
Page 88 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 4
The improvements and activities to be provided for 2023 are consistent with the Management District
Plan (Plan).
Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist,
meeting, and event destinations. The sales and marketing program will continue to have a central
theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have
the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and
may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Social media marketing efforts designed to drive overnight visitation and room sales to
assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses;
• Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers
and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote
assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism
promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging
businesses.
Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for
administrative staffing costs, office costs, and other general administrative costs such as insurance,
legal, and accounting fees.
City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of
assessment collected to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if
any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other
program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating
to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve
fund may be used for the costs of renewing the District.
Page 89 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 5
COST
2023 Projections
The cost of providing improvements and activities for 2023 is consistent with the Plan. The categorical
breakdown for the assessment budget is below. All budget category allocations are within the
authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.
Category %
CY 2023
Estimated
Collections
Carry Over* Total CY 2023
Budget
Sales & Marketing 78% $253,575.00 $0 $253,575.00
Administration 20% $64,925.00 $0 $64,925.00
City Fee 2% $6,500.00 $0 $6,500.00
Contingency/Reserve 0% $0 $79,419 $79,419.00
Total 100% $325,000.00 $79,419.00 $404,419.00
*Carry over may include unspent funds from multiple years
2022 Actual
The projected 2022 collections were approximately $325,000. Actual collections were more than
expected, totaling $359,063. Budgeted and actual expenses are shown below.
Category CY 2022 Budgeted CY 2022 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 81% $261,800 $295,336 $0
Administration 15% $50,200 $63,458 $0
Contingency/Reserve 2% $6,500 $2,500 $79,419
City Collection Fee 2% $6,500 $7,181 $0
Totals 100% $325,000 $368,475 $79,419
Page 90 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 6
ASSESSMENT
There is no change in the method and basis of levying the assessment.
Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based
on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive
days; and stays by any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the
Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate
may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).
The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent
(2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be
included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual
report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or
not received, for the occupancy of space in a lodging business valued in money, whether to be received
in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of
any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not
include any federal, state or local taxes collected, including but not limited to transient occupancy
taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purposes,
including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10)
years through December 31, 2027. The City will continue to be responsible for collecting the
assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed
lodging business. The City shall continue to take all reasonable efforts to collect the assessments from
each lodging business. The City shall continue to forward the assessments collected to the Owners’
Association within thirty (30) days of receipt.
Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such
Page 91 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 7
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall
continue to be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within
the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in
addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance
on or before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the
assessment in addition to the amount of the assessment and the ten percent (10%) penalty first
imposed.
3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a
penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto
in addition to the penalties stated in subsections 1 and 2 of this section.
4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any
assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The
interest shall be calculated per month or fraction thereof on the amount of the assessment and
penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall
become part of the assessment herein required to be paid.
In the event the City is unable to collect the delinquent assessments, the assessment amount including
penalties and interest will be added to the business license renewal for the lodging business the
following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain
the penalties and interest to cover the costs of collection, and shall forward the original assessment
amount to the GWC Board.
Page 92 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 8
SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $79,419.
Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount
of any contributions to be made from sources other than GTBID assessments for 2023 include TBID
Interest Income in the amount of $996.
Page 93 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 9
ATTACHMENT 1
GTBID ASSESSEE LISTING
Page 94 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 10
ATTACHMENT 2
VISIT GILROY TBID BUDGET PERFORMANCE (P&L)
Page 95 of 267
Gilroy Tourism Business Improvement District
2022 Annual Report Page 11
Page 96 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 1
GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT
2023 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code
Section 36650 for the period from January 1, 2023-December 31, 2023
Page 97 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 2
CONTENTS
BOUNDARIES ...................................................................................................................................................3
IMPROVEMENTS AND ACTIVITIES .............................................................................................................4
COST ...................................................................................................................................................................5
2024 PROJECTIONS ....................................................................................................................................................5
2023 ACTUAL .............................................................................................................................................................6
ASSESSMENT ....................................................................................................................................................7
ASSESSMENT ..............................................................................................................................................................7
DELINQUENCIES .......................................................................................................................................................7
SURPLUS AND OTHER FUNDING ................................................................................................................9
SURPLUS ....................................................................................................................................................................9
OTHER FUNDING ......................................................................................................................................................9
ATTACHMENT 1 .............................................................................................................................................10
ATTACHMENT 2 ............................................................................................................................................11
Page 98 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 3
BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID)
boundaries. There have been no new lodging businesses, and no lodging businesses have closed. One
lodging business changed its name during the past year: Super 8, located at 8435 San Ysidro Avenue
Gilroy CA 95020, is now operating as the “Comfort Inn”.
The GTBID will continue to include all lodging businesses, existing and in the future, available for
public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map
below.
Page 99 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 4
IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2024 are consistent with the Management District
Plan (Plan).
Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist,
meeting, and event destinations. The sales and marketing program will continue to have a central
theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have
the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and
may include the following activities:
Page 100 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 5
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Social media marketing efforts designed to drive overnight visitation and room sales to
assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses;
• Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers
and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote
assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism
promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging
businesses.
Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for
administrative staffing costs, office costs, and other general administrative costs such as insurance,
legal, and accounting fees.
City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of
assessment collected to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if
any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other
program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating
to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve
fund may be used for the costs of renewing the District.
COST
2024 Projections
The cost of providing improvements and activities for 2024 is consistent with the Plan. The categorical
breakdown for the assessment budget is below. All budget category allocations are within the
authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.
Category % CY 2024 Carry Over* Total CY 2024
Budget
Page 101 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 6
Estimated
Collections
Sales & Marketing 77% $237,650.00 $83,753.00 $321,403.00
Administration 21% $64,925.00 $1,813.00 $66,738.00
City Fee 2% $6,175.00 $0 $6,175.00
Contingency/Reserve 0% $0 $114,093.00 $114,093.00
Total 100% $308,750.00 $199,659.00 $508,409.00
*Carry over may include unspent funds from multiple years
2023 Actual
The projected 2023 collections were approximately $325,000. Actual collections were more than
expected, totaling $359,367. Budgeted and actual expenses are shown below.
Category CY 2023 Budgeted CY 2023 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 78% $253,575 $169,823 $83,753
Administration 20% $64,925 $63,112 $1,813
Contingency/Reserve 0% $0 $0 $114,093
City Collection Fee 2% $6,500 $7,187 $0
Totals 100% $325,000 $240,122 $199,659
Page 102 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 7
ASSESSMENT
There is no change in the method and basis of levying the assessment.
Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based
on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive
days; and stays by any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the
Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate
may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).
The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent
(2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be
included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual
report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or
not received, for the occupancy of space in a lodging business valued in money, whether to be received
in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of
any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not
include any federal, state or local taxes collected, including but not limited to transient occupancy
taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purposes,
including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10)
years through December 31, 2027. The City will continue to be responsible for collecting the
assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed
lodging business. The City shall continue to take all reasonable efforts to collect the assessments from
each lodging business. The City shall continue to forward the assessments collected to the Owners’
Association within thirty (30) days of receipt.
Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered
Page 103 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 8
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall
continue to be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within
the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in
addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance
on or before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the
assessment in addition to the amount of the assessment and the ten percent (10%) penalty first
imposed.
3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a
penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto
in addition to the penalties stated in subsections 1 and 2 of this section.
4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any
assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The
interest shall be calculated per month or fraction thereof on the amount of the assessment and
penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall
become part of the assessment herein required to be paid.
In the event the City is unable to collect the delinquent assessments, the assessment amount including
penalties and interest will be added to the business license renewal for the lodging business the
following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain
the penalties and interest to cover the costs of collection, and shall forward the original assessment
amount to the GWC Board.
Page 104 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 9
SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $199,659.
Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount
of any contributions to be made from sources other than GTBID assessments for 2024 include TBID
Interest Income in the amount of $1,950.
Page 105 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 10
ATTACHMENT 1
GTBID ASSESSEE LISTING
Page 106 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 11
ATTACHMENT 2
VISIT GILROY TBID BUDGET PERFORMANCE (P&L)
Page 107 of 267
Gilroy Tourism Business Improvement District
2023 Annual Report Page 12
Page 108 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT
2024 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code
Section 36650 for the period from January 1, 2024-December 31, 2024
Page 109 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID)
boundaries. There have been no new lodging businesses, and no lodging businesses have closed.
The GTBID will continue to include all lodging businesses, existing and in the future, available for
public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map
below.
Page 110 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2025 are consistent with the Management District
Plan (Plan).
Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist,
meeting, and event destinations. The sales and marketing program will continue to have a central
theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have
the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and
may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Social media marketing efforts designed to drive overnight visitation and room sales to
assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses;
• Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers
and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote
assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism
promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging
businesses.
Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for
administrative staffing costs, office costs, and other general administrative costs such as insurance,
legal, and accounting fees.
City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of
assessment collected to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if
any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other
program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating
to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve
fund may be used for the costs of renewing the District.
Page 111 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
COST
2025 Projections
The cost of providing improvements and activities for 2025 is consistent with the Plan. The categorical
breakdown for the assessment budget is below. All budget category allocations are within the
authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.
Category %
CY 2025
Estimated
Collections
Carry Over* Total CY 2025
Budget
Sales & Marketing 81% $303,500.00 $0 $303,500.00
Administration 17% $64,925.00 $0 $64,925.00
City Fee 2% $8,500.00 $0 $8,500.00
Contingency/Reserve 0% $0 $247,594.00 $247,594.00
Total 100% $376,925.00 $247,594.00 $624,519.00
*Carry over may include unspent funds from multiple years
2024 Actual
The projected 2024 collections were approximately $308,750. Actual collections were more than
expected, totaling $328,449. Budgeted and actual expenses are shown below.
Category CY 2024 Budgeted CY 2024 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 77% $237,650 $210,073 $0
Administration 21% $64,925 $65,820 $0
Contingency/Reserve 0% $0 $0 $247,594
City Collection Fee 2% $6,175 $6,569 $0
Totals 100% $308,750 $282,462 $247,594
Page 112 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
ASSESSMENT
There is no change in the method and basis of levying the assessment.
Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based
on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive
days; and stays by any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the
Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate
may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).
The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent
(2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be
included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual
report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or
not received, for the occupancy of space in a lodging business valued in money, whether to be received
in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of
any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not
include any federal, state or local taxes collected, including but not limited to transient occupancy
taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purposes,
including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10)
years through December 31, 2027. The City will continue to be responsible for collecting the
assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed
lodging business. The City shall continue to take all reasonable efforts to collect the assessments from
each lodging business. The City shall continue to forward the assessments collected to the Owners’
Association within thirty (30) days of receipt.
Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such
Page 113 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall
continue to be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within
the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in
addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance
on or before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the
assessment in addition to the amount of the assessment and the ten percent (10%) penalty first
imposed.
3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a
penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto
in addition to the penalties stated in subsections 1 and 2 of this section.
4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any
assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The
interest shall be calculated per month or fraction thereof on the amount of the assessment and
penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall
become part of the assessment herein required to be paid.
In the event the City is unable to collect the delinquent assessments, the assessment amount including
penalties and interest will be added to the business license renewal for the lodging business the
following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain
the penalties and interest to cover the costs of collection, and shall forward the original assessment
amount to the GWC Board.
Page 114 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $247,594. It is expected
these funds will be used to pay for website licensing, branding and visual identity, and website
construction.
Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount
of any contributions to be made from sources other than GTBID assessments for 2025 include TBID
Interest Income in the amount of $1,395.
Page 115 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
ATTACHMENT 1
GTBID ASSESSEE LISTING
Page 116 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
ATTACHMENT 2
VISIT GILROY TBID BUDGET PERFORMANCE (P&L)
Page 117 of 267
Gilroy Tourism Business Improvement District
2024 Annual Report
Page 118 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
GILROY TOURISM BUSINESS
IMPROVEMENT DISTRICT
2025 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code
Section 36650 for the period from January 1, 2025-December 31, 2025
Page 119 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID)
boundaries. There have been no new lodging businesses, and no lodging businesses have closed.
The GTBID will continue to include all lodging businesses, existing and in the future, available for
public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map
below.
Page 120 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2026 are consistent with the Management District
Plan (Plan).
Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist,
meeting, and event destinations. The sales and marketing program will continue to have a central
theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have
the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and
may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Social media marketing efforts designed to drive overnight visitation and room sales to
assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses;
• Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers
and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote
assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism
promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging
businesses.
Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for
administrative staffing costs, office costs, and other general administrative costs such as insurance,
legal, and accounting fees.
City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of
assessment collected to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if
any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other
program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating
to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
Page 121 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve
fund may be used for the costs of renewing the District.
COST
2026 Projections
The cost of providing improvements and activities for 2026 is consistent with the Plan. The categorical
breakdown for the assessment budget is below. All budget category allocations are within the
authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.
Category %
CY 2026
Estimated
Collections
Carry Over* Total CY 2026
Budget
Sales & Marketing 79% $257,400.00 $0 $257,400.00
Administration 19% $59,100.00 $0 $59,100.00
City Fee 2% $8,500.00 $0 $8,500.00
Contingency/Reserve 0% $0 $167,303.00 $167,303.00
Total 100% $325,000.00 $167,303.00 $492,303.00
*Carry over may include unspent funds from multiple years
2025 Actual
The projected 2025 collections were approximately $325,000. Actual collections were more than
expected, totaling $351,749. Budgeted and actual expenses are shown below.
Category CY 2025 Budgeted CY 2025 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 78% $251,575 $326,372 $0
Administration 20% $64,925 $68,828 $0
Contingency/Reserve 0% $0 $31,200 $167,303
City Collection Fee 2% $8,500 $7,035 $0
Totals 100% $325,000 $433,435 $167,303
Page 122 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
ASSESSMENT
There is no change in the method and basis of levying the assessment.
Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based
on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive
days; and stays by any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty.
The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the
Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate
may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).
The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent
(2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be
included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual
report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or
not received, for the occupancy of space in a lodging business valued in money, whether to be received
in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of
any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not
include any federal, state or local taxes collected, including but not limited to transient occupancy
taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purposes,
including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10)
years through December 31, 2027. The City will continue to be responsible for collecting the
assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed
lodging business. The City shall continue to take all reasonable efforts to collect the assessments from
each lodging business. The City shall continue to forward the assessments collected to the Owners’
Association within thirty (30) days of receipt.
Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered
Page 123 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall
continue to be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within
the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in
addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance
on or before a period of thirty (30) days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the
assessment in addition to the amount of the assessment and the ten percent (10%) penalty first
imposed.
3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a
penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto
in addition to the penalties stated in subsections 1 and 2 of this section.
4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any
assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The
interest shall be calculated per month or fraction thereof on the amount of the assessment and
penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall
become part of the assessment herein required to be paid.
In the event the City is unable to collect the delinquent assessments, the assessment amount including
penalties and interest will be added to the business license renewal for the lodging business the
following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain
the penalties and interest to cover the costs of collection, and shall forward the original assessment
amount to the GWC Board.
Page 124 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $167,303. It is expected
these funds will be used to pay for website licensing, branding and visual identity, and website updates.
Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount
of any contributions to be made from sources other than GTBID assessments for 2026 include TBID
Interest Income in the amount of $1,395.
Page 125 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
ATTACHMENT 1
GTBID ASSESSEE LISTING
Days Inn 8292 Murray Avenue
Gilroy, CA 95020
Best Western Plus/Forest Park Inn 375 Leavesley Road
Gilroy, CA 95020
Budget Motel 8897 Monterey Road
Gilroy, CA 95020
Garlic Farm Inn 5920 Travel Park Circle
Gilroy, CA 95020
Hampton Inn & Suites 5975 Travel Park Circle
Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road
Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road
Gilroy, CA 95020
Motel 6 6110 Monterey Road
Gilroy, CA 95020
Travel Inn 5530 Monterey Road
Gilroy, CA 95020
Oaks Motel 8065 Monterey Road
Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street
Gilroy, CA 95020
Quality Inn & Suites 8430 Murray Avenue
Gilroy, CA 95020
Comfort Inn & Suites 8435 San Ysidro Avenue
Gilroy, CA 95020
Gilroy Inn 611 Leavesley Road
Gilroy, CA 95020
Page 126 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
ATTACHMENT 2
VISIT GILROY TBID BUDGET PERFORMANCE (P&L)
Page 127 of 267
Gilroy Tourism Business Improvement District
2025 Annual Report
Page 128 of 267
6.7.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve the Second Amendment to the Agreement with
Dewberry Engineers Inc. to Add $187,766.15 for the Design of
the Lions Creek Trail and Santa Teresa Blvd/Day Rd East
Bicycle and Pedestrian Improvements and Adopt a Budget
Amendment Resolution for CIP Project No. 800270
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Julie Oates, Engineer
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
1. Approve the second amendment to the agreement with Dewberry Engineers Inc.
to add $187,766.15 for the design of the Lions Creek Trail and Santa Teresa
Blvd/Day Rd East Bicycle and Pedestrian Improvements and authorize the City
Administrator to execute the amendment and associated documents.
2. Adopt a budget amendment resolution to appropriate $187,766.15 from Gas Tax
Fund (205) for the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle
and Pedestrian Improvements (Project No. 800270).
EXECUTIVE SUMMARY
The Lions Creek Trail Project (Project) will construct two segments of Class I multi-use
trails along Lions Creek. One segment will extend from Tapestry Drive near Christopher
High School to the Santa Teresa Boulevard/ Day Road East intersection, and the other
segment will extend from the Santa Teresa Boulevard/Day Road East intersection to
Kern Avenue. The project also includes the design of pavement markings, curb ramps,
and traffic signal modifications at the Santa Teresa Blvd/ Day Rd East intersection to
Page 129 of 267
6.7.
provide a bicycle and pedestrian crossing of Santa Teresa Blvd at Day Road East.
BACKGROUND
Design of the Project by Dewberry Engineers Inc. (previously Drake Haglan and
Associates) began in 2015. Due to funding constraints at the time, the Project was put
on hold and the design was not completed.
In 2023, the City was awarded grant funds for the Project which allowed staff to resume
the Project.
In April 2025, the City Council awarded a contract to Dewberry Engineers Inc. in the
amount of $189,652.26 for the design of the Project. Dewberry was chosen in part
because of their previous work and familiarity with the project.
In September 2025, the City Council approved the first amendment to the agreement
with Dewberry Engineers Inc. in the amount of $29,880. The first amendment provided
for an updated topographic survey, which was needed because Valley Water
constructed improvements in the Project area in the years between the initial design
and resumption of the Project.
ANALYSIS
The updated topographic survey and new Valley Water requirements (in effect after
2015) require significant revisions to the vertical and horizontal alignment of both
segments of the trail. The design also requires additional scope for the traffic signal
modifications at the Santa Teresa Blvd/Day Rd East intersection, as well as guardrail
improvements and design of additional curb ramps. Valley Water is also requiring
revisions to the original design for their access needs, including regrading, drainage
updates, and additional space for their maintenance vehicles. The changes in the
Project’s design also require additional coordination with Santa Clara County
Department of Roads and Airports. In addition, there have been unanticipated costs
due to the presence of listed species in the vicinity of the project.
These changes in scope require additional funds for project management; updating the
90% and 100% Plans, Specifications, and Estimates; environmental compliance, and
utility coordination.
ALTERNATIVES
The City Council may choose not to approve the second amendment to the agreement
with Dewberry Engineers Inc. Staff does not recommend this as the the additional
funds are critical for the consultant to finalize the Project plans, specifications, and
estimate (PS&E). The final PS&E are required prior to the City being able to obtain
Page 130 of 267
6.7.
encroachment permits from Valley Water and Santa Clara County.
Once the final PS&E has completed and required encroachment permits have been
obtained, the City can secure Caltrans approval to meet the September 2026 deadline
to obligate grant funds for construction.
FISCAL IMPACT/FUNDING SOURCE
Staff recommends appropriating an additional $187,766.15 from Gas Tax Fund (205) for
the second amendment with Dewberry Engineers Inc. for a total contract amount of
$407,298.41. Dewberry Engineers Inc. will only bill for actual work completed. Any
funds not spent on the Project will be returned to Gas Tax Fund (205).
The recently completed FY25 Citywide Pavement Rehabilitation Project had savings of
$216,657.34 in Gas Tax Fund (205). Therefore, staff recommends a portion of these
savings be appropriated to the Lions Creek Trail and Santa Teresa Blvd/Day Rd East
Bicycle and Pedestrian Improvements (Project No. 800270).
PUBLIC OUTREACH
N/A
NEXT STEPS
If approved by City Council, staff will execute the second amendment and proceed with
completing the design of the Project.
Attachments:
1. Item 6.7 Budget Amendment Resolution
2. Dewberry 2nd Amendment
3. Exhibit B-2 Amended Scope
4. Exhibit D-2 Payment Schedule
Page 131 of 267
RESOLUTION 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY TO APPROVE A BUDGET AMENDMENT FOR
THE LIONS CREEK TRAIL PROJECT (NO. 800270) AND
APPROVE A SECOND AMENDMENT TO THE
AGREEMENT FOR SERVICES WITH DEWBERRY
ENGINEERS, INC.
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2025-2026 and 2026-2027, and the City Council
carefully examined, considered, and adopted the same on June 2, 2025; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to said budget for Fiscal Year 2025-2026 for the City of Gilroy in the staff report dated
April 20, 2026; and
WHEREAS, City Staff has prepared a Second Amendment to the Agreement for Services
with Dewberry Engineers, Inc. for the Lions Creek Trail Project (No. 800270) to increase the
contract amount by $187,766.15 for a total contract amount of $407,298.41.
NOW, THEREFORE, BE IT RESOLVED the appropriations for Fiscal Year 2025-2026
for the Gas Tax Fund 205 to Lions Creek Trail Project (No. 800270) shall be increased by
$187,766.74.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting
duly held on the 20th day of April 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 132 of 267
Resolution No. 2026-XX
Lions Creek Trail Project – Budget Amendment Resolution
City Council Regular Meeting | April 20, 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, April 20, 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 133 of 267
-1- 4845-8215-5540v1
MDOLINGER\04706083
SECOND AMENDMENT TO THE AGREEMENT WITH DEWBERRY ENGINEERS, INC.
FOR DESIGN SERVICES FOR THE LIONS CREEK TRAIL PROJECT
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Dewberry Engineers,
Inc. entered into that certain agreement entitled Agreement for Services – Lions Creek Trail, effective
on April 7, 2025, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Dewberry Engineers, Inc. have determined it is in their mutual interest to
amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS
FOLLOWS:
1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
This Agreement will become effective on April 7, 2025 and will continue in effect through
June 30, 2028 unless terminated in accordance with the provision of Article 7 of the original
agreement.
2. Article 4 (Compensation) of the Original Agreement shall be amended to read as follows:
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONSULTANT exceed $407,298.41.
3. Exhibit “B” of the Original Agreement shall include Exhibit “B-2” in Attachment 1.
4. Exhibit “D” of the Original Agreement shall include Exhibit “D-2” in Attachment 2.
4. This Amendment shall be effective on May 1, 2026.
5. Except as expressly modified herein, all of the provisions of the Original Agreement shall
remain in full force and effect. In the case of any inconsistencies between the Original Agreement and
this Amendment, the terms of this Amendment shall control.
6. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the
dates set forth besides their signatures below.
CITY OF GILROY
By: [signature]
Matt Morley
[employee name]
City Administrator
[title/department]
Date:
Approved as to Form
City Attorney
DEWBERRY ENGINEERS, INC.
By:
[signature]
F. Jose Silva
[name]
Vice President [title]
Date:
ATTEST:
City Clerk
Page 134 of 267
Exhibit B – Scope of Work
3/06/2026
Page 1 of 2
Please note that this scope of services only includes the tasks that are being amended.
This amendment is requested to supplement budget used for additional tasks required
as follows:
Trail Redesign
The original assumption was that the 65% plans were completed in 2016. However, due
to new SCVWD requirements and new topography needed, the original 65% was
redesigned. Since 2016, SCVWD conducted grading adjustments along the creek,
therefore a new topographic survey was needed. Coupled with the new topography,
the SCVWD requirement to grade the trail away from the creek resulted in a complete
redesign of the west and east trails vertical and horizontal alignment along with
drainage system modifications. The west and east trail plans are to be combined into
one plan set.
Santa Teresa Boulevard and Day Road Intersection
CITY requested that CONSULTANT add electrical signal work, add guard railing, and
potentially add two new curb ramp designs.
SCVWD Access
SCVWD access needs require revisions to the original design including regrading,
drainage updates, and additional space.
1.0 PROJECT MANAGEMENT
Task 1.2 - Project Management
Task 1.2 1 – Project Management
CONSULTANT will provide additional project management for the duration of the project. This
includes additional meetings.
3.0 PLANS, SPECIFICATIONS, AND ESTIMATES (PS&E) (60%, 90%, 100% PS&E)
CONSULTANT to revise plans to incorporate new topography, new SCVWD requirements,
additional signal, guard railing, and potentially new curb ramps.
Task 3.2– 90% Plans, Specifications, and Estimate (PS&E)
CONSULTANT to prepare additional plans and details to accommodate the added design elements
originally not included. It is anticipated that additional comment responses will be required to
acquire CITY and SCVWD approval of the plans. This submittal will include a set for the
intersection plans, as well as a set including the West Trail, East Trail, and Access Driveway.
Page 135 of 267
Exhibit B – Scope of Work
3/06/2026
Page 2 of 2
Redesign of trail and regrading longitudinal ditches requires performing additional civil/roadway
quantity updates to accommodate. Revised trail requires corridor remodeling and preparing new
design cross section iterations. This is a significant effort beyond the original budgeted 90%
update.
Task 3.3 – 100% Plans, Specifications, and Estimate
CONSULTANT to prepare additional plans and details to accommodate the added design elements
originally not included.
Task 3.4 – Utility Coordination
CONSULTANT to assist the CITY with utility coordination to verify if relocations are required.
5.0 BIDDING AND CONSTRUCTION SUPPORT
Construction support hours will be billed on a time and materials basis up to the hours estimated
in this scope and fee. Work in this task will need to be revisited if additional support is required.
Task 5.1 – Bidding Support
CONSULTANT will assist CITY during the bidding process by responding to bidder inquiries,
and preparing addenda to bid documents, and assist with bid evaluation.
Task 5.2 – Construction Support
CONSULTANT will support CITY during construction. CONSULATNT will attend one (1) pre-
construction meeting, if required. Support includes engineering and environmental elements.
CONSULTANT will provide consultation and interpretation of contract documents. Written
responses will be provided to requests for information (RFI’s) and supplemental or revised
drawings may be issued to provide clarity to the Resident Engineer and Contractor. In the event
that inquiries result in the need to modify the bid documents, CONSULTANT will be available
to assist in the preparation of Change Orders. CONSULTANT will attend up to three (3) site
visits when requested by the CITY to discuss project challenges, to review field conditions, or to
discuss RFI’s.
Using mark-ups received from the Resident Engineer and supplemental or revised drawings from
RFI’s, CONSULTANT will prepare final record drawings. These drawings will be prepared
electronically in CAD format and provided in CAD and PDF format.
Page 136 of 267
Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee
HOURS COST HOURS COST HOURS COST
1.0
1.1.24 $8,518.46 24 $8,518
1.0 24 $8,518.46 24 $8,518
3.0
3.2
3.2.1 288 $47,221.87 88 $12,189.83 376 $59,412
3.2.3 18 $3,166.50 18 $3,167
3.2.5 50 $8,079.76 50 $8,080
3.3
3.3.1 208 $34,515.16 208 $34,515
3.3.3 6 $1,324.03 6 $1,324
3.4 26 $4,503.66 26 $4,504
3.0 596 $98,811.00 88 $12,189.83 684 $111,001
5.1 40 $7,875.93 36 $5,188.39 76 $13,064
5.2 247 $41,401.90 56 $9,025.63 303 $50,428
5.0 287 $49,277.84 92 $14,214.02 379 $63,492
907 $156,607.30 180 $26,403.85 1087 $183,011.15
Task # Task Name
Project Management
Project Management
Prepare 90% Estimate
Total Task 5
Prepare 90% PS&E
Response to 90% Comments
Prepare 100% PS&E
Prepare 100% Plans
Prepare 100% Estimate
Utility Assistance
Prepare 90% Plans
Prepare PS&E (90%,100%)
Construction Support
Bidding Support
Total Task 1
Dewberry Engineers Inc.W.G. Zimmerman
Engineering TOTAL
3/26/2026
Total Task 3
TOTAL DIRECT LABOR HOURS
$4,755.00
$187,766.15TOTAL PROJECT COST
$2,755.00 $2,000.00TOTAL OTHER DIRECT COST
$159,362.30 $28,403.85
Page 137 of 267
Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee
.
.Project ManagerF. Jose SilvaEngineer IIIJared MayerENGINEER IILuke ErvinDESIGNER VIStephanie MoralesPROFESSIONAL VIIJeff BrayPROFESSIONAL IVChristopher GrahamPROFESSIONAL VIIChrista ReddPROFESSIONAL ITo Be DeterminedPROFESSIONAL IVTo Be Determined TASK HOURSLabor Cost without EscESCALATIONTASK COSTS .Loaded Rate:$350.73 $159.20 $144.24 $165.16 $263.45 $169.28 $258.02 $104.39 $179.61
1.0
1.1.24 24 $8,417.46 $101.01 $8,518.46
1.0 24 24 $8,417.46 $101.01 $8,518.46
3.0
3.2
3.2.1 8 120 80 80
288 $46,661.93 $559.94 $47,221.87
3.2.3 2 8 8
18 $3,128.96 $37.55 $3,166.50
3.2.5 2 24 24
50 $7,983.96 $95.81 $8,079.76
3.3
3.3.1 8 80 60 60
208 $34,105.89 $409.27 $34,515.16
3.3.3 2 2 2
6 $1,308.33 $15.70 $1,324.03
3.4 2 8 8 8
26 $4,450.26 $53.40 $4,503.66
3.0 24 242 182 148 596 $97,639.32 $1,171.67 $98,811.00
5.1 8 8 8 16
40 $7,875.93 $7,875.93
5.2 24 40 40 40 2 16 8 65 12 247 $41,401.90 $41,401.90
5.0 32 48 48 56 2 16 8 65 12 287 $49,277.84 $49,277.84
32 48 48 56 2 16 8 65 12 287 $49,277.84 $49,277.84
.80 290 230 204 2 16 8 65 12 907 $155,334.61 $1,272.68 $156,607.30
$2,755.00
$159,362.30TOTAL PROJECT COST
Dewberry Engineers Inc.
Prime
OTHER DIRECT COSTS BEFORE OPTIONAL TASKS (see attached sheet)
Total Task 5
Construction Support
TOTAL DIRECT LABOR
Prepare 90% PS&E
Prepare 90% Plans
Prepare 100% Estimate
Bidding Support
Total Task 3
Prepare 90% Estimate
Response to 90% Comments
Prepare 100% PS&E
Prepare 100% Plans
Project Management
Prepare PS&E (90%,100%)
Total Task 1
Project Management
Subtotal Task 5
Utility Assistance
3/26/2026
Page 138 of 267
Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
Consultant:X Prime Consultant Subconsultant 2nd Tier Subconsultant
Project No.Date:
DIRECT LABOR
$120 -$120
80.0 $120 - $120 $9,600.00
290.0 $48 - $60 $15,796.30
230.0 $42 - $53 $11,350.50
204.0 $74 - $98 $11,528.04
2.0 $81 - $92 $180.28
16.0 $55 - $68 $926.72
8.0 $81 - $92 $706.24
65.0 $30 - $41 $2,321.62
$30 - $41
12.0 $55 - $68 $737.44
$48 - $61
$117 - $119
$101 - $114
$77 - $90
$64 - $78
$61 - $72
$48 - $60
$42 - $53
$92 - $112
$72 - $93
$66 - $84
$42 - $59
$54 - $62
$40 - $53
$35 - $41
$25 - $39
$34 - $49
$63 - $72
$50 - $67
$39 - $52
907.0 $53,147.14
LABOR COSTS
a) Subtotal Direct Labor Costs $53,147.14
b) Anticipated Salary Increases (Note 3) $435.44
Optional Anticipated Salary
INDIRECT COSTS
d1) Fringe Benefits (OFFICE Rate): 58.82% e) $31,518.79
f1) Overhead (OFFICE Rate): 102.13% g) $54,726.57
i)
d2) Fringe Benefits (FIELD Rate): 58.77% e)
f2) Overhead (FIELD Rate): 78.52% g)
i)
FIXED FEE k)12%
l)CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary)
Unit Cost
$0.725
$200.00
m) SUBCONSULTANT'S COSTS (add additional pages if necessary)
28,403.85$
28,403.85$
NOTES:
January 2020
6. Billing rate = (actual hourly rate)* ((1+ ICR) * (1+ Fee))+(actual hourly rate * FCCM). All costs must comply with the Federal cost principles for reimbursement.
PROFESSIONAL VI
PROFESSIONAL V
$101.77
$82.26
$75.08
$71.02ENGINEER V
ENGINEER IV
ENGINEER III
To Be Determined
To Be Determined
To Be Determined
$57.75
To Be Determined
Total
c) TOTAL DIRECT LABOR COSTS [(a)+(b)]
j) INDIRECT COSTS BEFORE FCCM [(e) +(g) + (i)]
PROFESSIONAL II
To Be Determined
$66.65
$53.87
$47.08To Be DeterminedENGINEER II
$50.19
CADD TECHNICIAN IV
Quantity
Subconsultant 1:W.G. Zimmerman Engineering
Personal Vehicle
Dennis Haglan*
F. Jose Silva*
Jared Mayer*
Luke Ervin*
Jose Villa
Jeff Bray*
Christopher Graham*
Christa Redd*
To Be Determined
To Be Determined
To Be Determined
To Be Determined
PROFESSIONAL VIII
$120.00
$120.00
$54.47
$49.35
$56.51
$90.14
$57.92
$88.28
$35.72
5. Pre-approved actual costs are competitive prices from appropriate vendors in their respective industries, and supported by receipts.
Note: Mark-ups are Not Allowed
Dewberry Engineers Inc.
EXHIBIT 10-H COST PROPOSAL Page 1 of 3
COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS
(DESIGN, ENGINEERING, AND ENVIRONMENTAL STUDIES)
Actual Hourly
Rate TotalHoursNameClassification/Title
h1) General and Administrative (OFFICE Rate):
Description Total
3. Anticipated salary increases calculation (page 2) must accompany.
4. Pre-approved travel and per-diem costs will be reimbursed in conformance with the current Department of Transportation Travel and Expense Guide for
Consultants.
$187,766.15
n) TOTAL OTHER DIRECT COSTS INCLUDING 2nd TIER SUBCONSULTANTS [(l) + (m)]
TOTAL COST [(c) + (j) + (k) + (i) + (n)]
m) TOTAL 2nd TIER SUBCONSULTANT'S COSTS
All costs must comply with the Federal Cost Principles. Subconsultants will provide their own cost proposals.
2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant's annual accounting
period and established by a cognized agency or accepted by Caltrans.
1. Key Personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**).
$118.12
$107.59
$83.67
$35.72
$61.45
$54.39
To Be Determined
To Be Determined
To Be Determined
To Be DeterminedENGINEER VI
ENGINEER II
DESIGNER VI
PROFESSIONAL VII
PROFESSIONAL IV
PROFESSIONAL VII
PROFESSIONAL I
PROFESSIONAL I
Contract No.Lions Creek Trail
To Be Determined
To Be Determined
ENGINEER IX
ENGINEER VIII
PROFESSIONAL IV
PROFESSIONAL III
PRINCIPAL
PRINCIPAL
ENGINEER III
l) TOTAL OTHER DIRECT COSTS $2,755.00
Research Fees
Base Project ODC's Subtotal
Unit
Mile
EA
$53,582.59
$86,245.36
$16,779.35
$31,158.85
$2,755.00
$2,755.00
CADD TECHNICIAN III To Be Determined $46.54
CADD TECHNICIAN II To Be Determined $37.92
CADD TECHNICIAN I To Be Determined $32.36
TECHNICAL II To Be Determined $41.27
ADMIN PROFESSIONAL V To Be Determined $67.62
ADMIN PROFESSIONAL IV To Be Determined $58.62
ADMIN PROFESSIONAL III To Be Determined $45.19
TOTAL FIXED PROFIT [(c) + (j)] × fixed fee
Total Fringe Benefits [(c) × (d)]
Overhead [(c) × (f)]
h2) General and Administrative (FIELD Rate):Gen & Admin [(c) × (h)]
Overhead [(c) × (f)]
Total Fringe Benefits [(c) × (d)]
Gen & Admin [(c) × (h)]
3800
3/26/2026
Range
o)Facilities Capital Cost of Money (Rate):FCCM [(o) × (c)]
Page 139 of 267
Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee
.PIC/PM, Bill ZimmermanQA/QC, Christopher CorderoProject Engineer, Antonio MaganaSenior Design Engineer, Johnny BuiSenior Design Engineer, Eric Choe.$237.60 $207.90 $124.74 $116.69 $120.57
3.0
3.2
3.2.1 8 8 24 40 8
88 $12,189.83
3.0 8 8 24 40 8
88 $12,189.83
5.1 2 8 2 24
36 $5,188.39
5.2 8 16 8 24
56 $9,025.63
18 32 34 88 8 180 $26,403.85
$2,000.00
$28,403.85
TOTAL DIRECT LABOR
HOURS
OTHER DIRECT COSTS (see attached sheet)
TOTAL PROJECT COST
Construction Support
Total Task 3
Bidding Support
Prepare 90% PS&E
Prepare 90% Plans
Prepare PS&E (90%,100%) TASK HOURSTASK COSTSTask Name
W.G. Zimmerman Engineering
Signal Modification
Task #
Page 140 of 267
6.8.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of a Purchasing Contract With Papé Machinery of
Gilroy in the Amount of $352,595 for the Purchase of a John
Deere 320 P-Tier Backhoe Loader, a John Deere 60 P-Tier
Compact Excavator, and a TKT24LP Tilt Trailer Under a
Cooperative Purchasing Agreement with Sourcewell,
Contract# 011723-JDC and 092922-TKI
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Walter Dunckel, Fleet and Facilities Superintendent
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
Approve a purchase contract with Papé Machinery of Gilroy in the amount of $352,595
for the purchase of a John Deere 320 P-Tier Backhoe Loader, a John Deere 60 P-Tier
Compact Excavator, and a TKT24LP Tilt Trailer for the excavator, using the cooperative
purchasing agreement with Sourcewell formerly known as National Joint Powers
Alliance (NJPA), and authorize the City Administrator to execute the contract and
related documents.
EXECUTIVE SUMMARY
The Wastewater Section of the Utilities Department relies on heavy equipment for
trenching, lifting, excavation, and transport operations. Their existing backhoe is aging
and was recently removed from service because it had reached its end of life and
repairs to bring it back into service were too costly for 24-year-old piece of equipment.
Additionally, the Water Section lacks a compact excavator for confined-space and utility
work. In developing the Fleet Vehicle budget, Fleet staff worked with Operations staff to
identify the best replacement and supplemental equipment options using the
Cooperative Purchasing Agreement with Sourcewell, formerly known as National Joint
Page 141 of 267
6.8.
Powers Alliance (NJPA). John Deere was selected as the best option for the City
because of ease of operation, ergonomic cab, parts availability, location of the dealer,
and warranty. Local John Deere dealer, Papé Machinery of Gilroy, California, provided
the quotes.
BACKGROUND
The Wastewater Section's existing backhoe has exceeded its useful service life and
required extensive repairs. Because of this, the backhoe was recently put out of service,
rather than continuing to invest in a 24-year-old machine.
The Water Section identified a need for a compact excavator to efficiently perform work
in confined areas where the full-size backhoe cannot safely or effectively operate, such
as around utilities, in narrow easements, and in tight urban settings. A dedicated tilt
trailer is also required to transport the compact excavator between worksites.
The City Council approved the equipment for replacement in the Fiscal Year 2025-2026
Operating Budget.
ANALYSIS
The Fleet Section worked with Utilities Department staff to identify the best replacement
and supplemental equipment options based on current and future operational needs.
Staff evaluated factors including ease of operation, controls, ergonomics, safety,
emissions compliance, and overall cost. Additional factors such as parts availability,
proximity of the dealer, and warranty terms were also considered. Based on this
evaluation, staff recommends the purchase of the following three items:
John Deere 320 P-Tier Backhoe Loader ($186,338):
• The 320 P-Tier features upgraded cab ergonomics, enhanced visibility, improved
fuel efficiency, and compliance with current emissions standards.
• It includes an integrated hydraulic coupler system for quick, single-operator
bucket changes, and a clamping appendage that securely holds large objects
during transport across the worksite, eliminating the unsafe practice of balancing
material on the bucket lip.
• These features significantly improve both operator safety and overall productivity.
John Deere 60 P-Tier Compact Excavator ($112,890):
• The 60 P-Tier offers a reduced tail swing radius, zero-damage undercarriage,
and advanced hydraulic performance.
• This compact excavator enables crews to perform precise excavation work in
confined spaces, narrow utility corridors, and areas inaccessible to a full-size
Page 142 of 267
6.8.
backhoe.
• This equipment will improve the department’s ability to respond to water main
breaks, sewer repairs, and other utility emergencies in tight urban settings,
reducing both response time and risk of collateral damage.
TKT24LP Tilt Trailer ($53,367):
• This low-profile tilt trailer is purpose-built to transport the 60 P-Tier Compact
Excavator between project sites safely and efficiently.
• The tilt-bed design allows for fast, ramp-free loading and unloading, minimizing
setup time in the field.
• Acquiring the trailer as part of this package ensures the excavator can be
immediately deployable upon delivery.
Equipment Price
John Deere 320 P-Tier
Backhoe Loader
$186,338.00
John Deere 60 P-Tier
Compact Excavator
$112,890.00
TKT24LP Tilt Trailer (for
Compact Excavator)
$ 53,367.00
TOTAL CONTRACT
AMOUNT
$352,595.00
The total price of $352,595.00 is based on a quote received from Papé Machinery of
Gilroy, which is a competitive price available to public agencies through the
NJPA/Sourcewell process, utilizing Sourcwell Contract #011723-JDC and #092922-TKI
ALTERNATIVES
City Council could deny the purchase of one or more of the items.
STAFF DOES NOT RECOMMEND THIS OPTION. The existing backhoe is beyond its
useful life, requiring such extensive repair that it was recently sent to surplus. Delaying
the compact excavator purchase would continue to limit the department’s ability to
respond efficiently in confined work areas, increasing project timelines and making their
workaround of small existing pipes more difficult. Denying the tilt trailer would render the
compact excavator immobile between sites, defeating the purpose of the purchase.
Page 143 of 267
6.8.
FISCAL IMPACT/FUNDING SOURCE
The City’s fleet replacement budget for Fiscal Year 2025-2026 includes $378,000 for
the purchase of this equipment package. Funding is budgeted in the following funds:
FY 2026 Sewer Fund (700) — $186,338 Backhoe Loader
FY 2026 Water Fund (705) — $166,257 Excavator & TKT24LP and Tilt Trailer
PUBLIC OUTREACH
None
NEXT STEPS
With Council’s approval, staff will move forward with the purchase of all three items from
Papé Machinery of Gilroy. John Deere requires an approximate two-month lead time for
delivery of the backhoe and compact excavator. The tilt trailer will be delivered
concurrently. Once delivered, all equipment will be deployable within one week.
Attachments:
1. 60P Excavator SALES ORDER
2. 320P Backhoe SALES ORDER
3. TKT24LP Trailer SALES ORDER
Page 144 of 267
Salesperson : X ___________________Accepted By : X ___________________
Prepared For
CITY OF GILROY
7351 ROSANNA ST
GILROY, CA 950206196
(408) 846-0420
Prepared By
Jake Dutra
Pape Machinery, Inc.
43510 Osgood Ave
FREMONT, CA 94539
jdutra@papemachinery.com
Quote Id 1671704
Creation Date 24-Feb-2026
Expiration Date 30-Apr-2026
Customer Notes
This sale is subject to Papé's Terms and Conditions of Sale effective on the date hereof, which are incorporated in full by this reference.
The Terms and Conditions of Sale are available at www.pape.com/terms, and will also be sent by mail or e-mail to the purchaser upon
request.
Quote Summary
Equipment Summary QTY In Group
60 P-Tier Compact Excavator 1
Equipment Total $103,450.00
Quote Summary
Total Selling Price $103,450.00
Sales - (9.125%)$9,439.81
Sub-total $112,889.81
Balance Due $112,889.81
SOURCEWELL CONTRACT #011723-JDC
Page 145 of 267
Selling Equipment
Quote #1671704
Customer CITY OF GILROY
60 P-Tier Compact Excavator
Equipment Notes
Hours - - -
Serial Number - - -
Stock Number - - -
PUK Parent Serial #
QTY In Group : 1
Equipment Summary
Code Description Qty
0190FF 60 P-Tier Compact Excavator 1
Base / Options
Code Description Qty
0202 Destination Code - United States 1
0259 English Customer Delivery Packet 1
0406 Configuration 6 - Cab, Rubber, Susp, Long Arm + EX C/W 1
Total Base / Options
Dealer Attachments
Code Description Qty
1/4 XLS MANUAL COUPLER 1
12" XLS TOOTH BUCKET 1
18" XLS TOOTH BUCKET 1
INSTALL QUICK DISCONNECTS ON BALL VALVES 1
INSTALL WAINROY COUPLER 1
Total Dealer Attachments
Other Charges: 3" Seatbelt, Setup/PDI, Freight, Delivery Charge
Total Selling Price
List Price: $115,490.00
Discount: 27%
Discount Amount: $31,182.30
$84,307.70
$8,832.24
$10,310.06
Page 146 of 267
Salesperson : X ___________________Accepted By : X ___________________
Prepared For
CITY OF GILROY
7351 ROSANNA ST
GILROY, CA 950206196
(408) 846-0420
Prepared By
Jake Dutra
Pape Machinery, Inc.
43510 Osgood Ave
FREMONT, CA 94539
jdutra@papemachinery.com
Quote Id 1672006
Creation Date 24-Feb-2026
Expiration Date 30-Apr-2026
Customer Notes
This sale is subject to Papé's Terms and Conditions of Sale effective on the date hereof, which are incorporated in full by this reference.
The Terms and Conditions of Sale are available at www.pape.com/terms, and will also be sent by mail or e-mail to the purchaser upon
request.
Quote Summary
Equipment Summary QTY In Group
320 P-Tier Backhoe Loader 1
Equipment Total $170,750.00
Quote Summary
Total Selling Price $170,750.00
Sales - (9.125%)$15,580.94
Sub-total $186,330.94
*TIRE FEE $7.00
Balance Due $186,337.94
SOURCEWELL CONTRACT #011723-JDC
PAPE PLUS SERVICE AGREEMENT FOR 0-2000HRS
-INCLUDED
EXTENDED POWERTRAIN & HYDRAULICS WARRANTY
FOR 24 MONTHS OR 2000HRS
-INCLUDED
Page 147 of 267
Selling Equipment
Quote #1672006
Customer CITY OF GILROY
320 P-Tier Backhoe Loader
Equipment Notes
Hours - - -
Serial Number - - -
Stock Number - - -
PUK Parent Serial #
QTY In Group : 1
Equipment Summary
Code Description Qty
17C1T 320 P-Tier Backhoe Loader 1
Base / Options
Code Description Qty
0202 United States 1
0351 Translated Text Labels 1
0259 English 1
0606 Level 2 Cab 1
0651 Level 1 Performance Package 1
0950 Less Vision System 1
1205 Basic Package Radio 1
183N JDLink™1
3009 Autoshift Transmission - Mechanical Front Wheel Drive (MFWD)
with Limited Slip Differential 1
4006 John Deere 4.5L - FT4/Stage IV 1
5245 Galaxy 19.5L-24 12PR Rear & 12.5/80-18 10PR Front 1
6155 Dual Batteries with Disconnect and Jump Post 1
6752 Extendible Dipperstick 1
6576 1000 lb. (454 kg.) Front Counterweight 1
7001 Auxiliary Hydraulics with One Way Flow (Hammer)1
7028 Pilot Controls, Two Lever, with Pattern Selection 1
7040 Three-Function Loader Hydraulics, Single Lever 1
7800 Less Backhoe Bucket with Bucket Pins 1
7705 Multi-Brand Quick Coupler - Less Thumb 1
List: $232,539.00
Discount: 43%
Discount Amount: $97,896.81
$134,642.19
Page 148 of 267
7861 92 in. (2.35 m.) Multi-Purpose Bucket, 1.31 cu. yd (1.00 cu. m.)1
8030 Fire Extinguisher Bracket 1
8096 Premium Mirrors - Exterior Rear View Mirrors (2) and Front View
Mirror (1)1
8213 Chrome Exhaust Extension 1
8075 Diagnostic Oil Sampling Ports 1
Total Base / Options
Dealer Attachments
Code Description Qty
12" HEAVY DUTY TOOTH BUCKET- AT437338 1
18" HEAVY DUTY TOOTH BUCKET-AT437340 1
24" HEAVY DUTY TOOTH BUCKET- AT437343 1
PURCHASE AND INSTALL QUICK DISCONNECTS ON
BULKHEAD BALL VALVES 1
PURCHASE AND INSTALL D-RING ON FRONT LOADER
BUCKET 1
PURCHASE AND INSTALL HOOK ON BACKHOE COUPLER
/BUCKET 1
Total Dealer Attachments
Other Charges: Set-up/PDI, Fabrication, Freight, Delivery Charge
Total Selling Price
$16,724.32
$19,383.49
Page 149 of 267
092922-TKI Quote #:
City of Gilroy 7351
Rosanna St Gilroy CA 95020
Walter Dunckel Contact:
408-461-0854 Phone:
NA Fax:
Walter.Dunckel@cityofgilroy.org Email:
February 25, 2026 Expires:
11329-Base
Item #Description Weight (lbs)Qty Unit Price Total
11329 **TKT24LP Tilt Trailer; 24,000 lbs. capacity $43,223 $43,223
11329-General - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
14535 102" overall width
17866 Zinc-rich Primer
08024 S7203 Black with white decals
18508 Red & white conspicuity markings
11329-Tongue - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
14482 5' Tongue, pintle eye with adjustable coupler; 18" -
29" Hitch Height (Loaded)
14533 Safety chains with hooks
14515 Lockable tool box
11335 25k Single 2-speed $41 $41
11329-Deck - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
13098 28' Overall deck (4' stationary and 24' tilt deck)
See below option for 22' tilt ILO 24'
O9998 See Custom Option Below.
14490 34" Loaded deck height
15797 10" Manufactured I-beam Mainframe
15800 4" Full width I-beam crossmembers 11" OC on Tilt
Bed
Main Deck
Main Deck
Category
Deck Length
Deck Lock
Main Deck
Category
Hitch
Hitch
Hitch
Landing Gear
Overall Width
Paint
Paint
Paint
Category
Open Deck
**TKT24LP Tilt Trailer; 24,000 lbs. capacity
11329-TKT24LP_New
Category
Phone:510-376-7002
Fax:NA
Email:Jdutra@papemachinery.com
Sourcewell: TK-95011.00
To:
Attn:Jake Dutra
PO #:
Issued:April 30, 2026
www.proquote-solutions.com Page 1 of 1
Page 150 of 267
15785 7" Mill channel outer rail
14471 4" Safety headboard
O9998 See Custom Option Below.
14539 Floor plate on approach plate and fold under
18522 11" fold- down approach plate and underride
protection (16" ground clearance)
11347 1-3/8" Apitong (raised)$2,060 $2,060
13097 9 Pair D-rings (2 stationary deck, 7 tilt deck)$222 $222
202174 202174 - TKT24-50LP: 22' Tilt Deck ILO 24'($612)($612)
200594 200594 - TKT24-TKT60: Dual air locks with single
safety lock handle operated from driver side. May
be used on trailers without a stationary deck.
Requires air supply.
$1,785 $1,785
201729 201729 - TKT24LP: Dual Cushioning Cyl ILO Single $648 $648
11329-Suspension - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
13939 2 Axle, H9700 Spring suspension (TKT24/40)
14521 (2) 12,000 lb. capacity axles
14545 49" Axle spacing
15738 Air Brakes 4S/2M (12 1/4 x 7 1/2), must select
17.5" wheels and tires
($651)($651)
15353 6.75 x 17.5 8-hole steel disc dual wheel, ILO 6 x 16
steel disc dual wheel (per wheel)
4 $6 $24
15353 6.75 x 17.5 8-hole steel disc dual wheel, ILO 6 x 16
steel disc dual wheel (per wheel)
4 $6 $24
10058 No Spare Wheel
16500 215/75R17.5 - 16 ply/ ILO ST235/80R16 10 ply 8 $87 $696
10059 No Spare Tire
14759 Mudflaps
11329-Electrical - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
14648 Grote LED Lights
18726 Grote sealed electrical harness system
15821 One pair oval quad flash amber strobes with switch
(2 pair oval stop/turn/tail, 1 pair amber strobe
furthest inboard, and (3) penny ID lights at the rear)
$449 $449
15754 7 Pole round electrical plug (must select with air
brake option)
11329-Miscellaneous - TKT24LP
Item #Description Weight (lbs)Qty Unit Price Total
14481 Registration holder
Category
Document
Lights /
Lights /
Electrical
Lights /
Electrical
Category
Lights /
Tires
Spare Tires
Flaps, Mud
Axle Spacing
Brakes
Wheels
(inside)
Wheels
(outside)
Spare Wheel
Category
Suspensions /
Suspensions /
Additional
Options
Additional
Options
Main Deck
Main Deck
Decking
Tie Downs
Additional
Options
Main Deck
Main Deck
Main Deck
www.proquote-solutions.com Page 1 of 1
Page 151 of 267
11353 Air operated approach plates (requires air supply)$566 $566
13913 4 wheel chocks with holder $669 $669
14206 Hold valve for tilt bed $641 $641
TOTALS
$49,785.00
($7,467.75)
$42,317.25
$1,012.32
$5,470.43
$48,800.00
$ 114.00
$4,453.00
$53,367.00
Sign Here:Date:
*This order may be subject to tariff related
surcharges.
** Freight charge to be determined at time of
shipment.
Approved change orders will be subject to a change
order fee.
Terms and Conditions
- Prices effective 9/8/2024. Prices and specs
subject to change without notice.
- Order pricing and specifications finalized at 16
week window.
- All orders and terms subject to credit approval.
- Federal Excise Tax calculated on selling price to
non-exempt end user.
- Non-Standard production units require 20% down
payment.
- Fifth-wheel trailers may require 10% down
payment to secure productions slot.
- Promised Date subject to change under following
conditions:
1. Change in customer credit status.
2. Approval drawing not signed promptly.
3. Down payment not received promptly.
4. Customer change order modifying design,
manufacturing or sourcing time.
DMV & Tire Fee:
Sales Tax:
Net Due:
F.E.T:
Factory & Local Freight:
Total Unit Sale Price:
Sourcewell Discount (15%):
Discounted Net:
Pre-delivery Inspection:
Total:
Miscellaneous
Miscellaneous
Miscellaneous
www.proquote-solutions.com Page 1 of 1
Page 152 of 267
www.proquote-solutions.com Page 1 of 1
Page 153 of 267
www.proquote-solutions.com Page 1 of 1
Page 154 of 267
6.9.
City of Gilroy
STAFF REPORT
Agenda Item Title: Consent the City Administrator's Recommendation to
Appoint Cindy Murphy to the Department Head Position of
Finance Director
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Administration
Submitted by: Matt Morley, City Administrator
Prepared by: Matt Morley, City Administrator
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization
RECOMMENDATION
Consent the City Administrator's recommendation to appoint Cindy Murphy to the
department head position of Finance Director.
EXECUTIVE SUMMARY
Consent the appointment of Cindy Murphy to the position of Finance Director
BACKGROUND
With the recent appointment of Harjot Sangha to the position of Assistant City
Administrator, the City has a vacant Finance Director position. Cindy Murhpy has vast
experience in municipal Finance, including a previous role as Finance Director in Gilroy.
The City Administrator has determined that Cindy's expertise and experience will greatly
benefit the City.
ANALYSIS
N/A
Page 155 of 267
6.9.
ALTERNATIVES
The alternative to forego the appointment to Finance Director is not recommended.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact as a result of this appointment. The position is included in the
current operating budget.
PUBLIC OUTREACH
N/A
NEXT STEPS
Following Council consent of this item, Cindy Murphy will assume the necessary duties
and responsibilities of the Finance Director.
Attachments:
None
Page 156 of 267
6.10.
City of Gilroy
STAFF REPORT
Agenda Item Title: Claim of Farmers Insurance Exchange a/s/o Armando Flores
(The City Administrator recommends a "yes" vote under the
Consent Calendar shall constitute denial of the claim)
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Human Resources/Risk Management
Submitted by: LeeAnn McPhillips, Interim Human Resources Director/Risk
Manager.
Prepared by: LeeAnn McPhillips, Interim Human Resources Director/Risk
Manager.
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal
counsel, this claim is recommended for rejection.
EXECUTIVE SUMMARY
Based on the recommendation from the Municipal Pooling Authority (MPA) and/or legal
counsel, the following claim is submitted to the City Council for rejection at the April 20,
2026 meeting:
• Claim of Farmers Insurance Exchange a/s/o Armando Flores
BACKGROUND
n/a
ANALYSIS
n/a
Page 157 of 267
6.10.
ALTERNATIVES
n/a
FISCAL IMPACT/FUNDING SOURCE
n/a
PUBLIC OUTREACH
n/a
NEXT STEPS
n/a
Attachments:
1. Claim of Farmers Insurance Exchange aso Armando Flores claim only for agenda
packet
Page 158 of 267
Page 159 of 267
Page 160 of 267
Page 161 of 267
Page 162 of 267
Page 163 of 267
7.3.
City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Two-Year Contract to Hello Housing to Administer
the City's Below Market Rate Housing Program with Three,
One-Year Extension Options in a Total Amount Not to Exceed
$973,689 and Adopt a Resolution Amending the Budget in
the Housing Trust and Los Arroyos Funds
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Christie Thomas, Housing and Community Services Manager
STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All
RECOMMENDATION
1. Award a contract to Hello Housing to administer the Below Market Rate (BMR)
Housing Program from July 1, 2026, to June 30, 2028, with three, one-year
extension options, and authorize the City Administrator to execute the contract
and associated documents.
2. Adopt the resolution amending the Fiscal Year 2026-27 budget to increase
appropriations in the Housing Trust Fund by $6,240 and the Los Arroyos Fund
by $5,760 for the Fiscal Year 2027 services of this contract.
EXECUTIVE SUMMARY
Since April of 2017, Housekeys Inc. (HouseKeys) has served as the administrator of
the City’s Below Market Rate (BMR) Housing Program. HouseKeys current contract will
expire on June 30, 2026. Due to their contract expiring, a competitive Request for
Proposals (RFP) for the administration of the City’s BMR Housing Program (26-RFP-
CDD-532) was issued on February 3, 2026. In response to this request, the City
received two proposals from HouseKeys and Hello Housing. Staff reviewed and scored
the proposals and found Hello Housing to be the most qualified to administer the City’s
Page 164 of 267
7.3.
BMR Housing Program. Staff proposes that the City enter into a contract with Hello
Housing for the full administration of all components of the BMR Housing Program from
July 1, 2026, to June 30, 2028, with up to three one-year extension options.
BACKGROUND
In late 2013, South County Housing (SCH), a predecessor agency that administered
BMR programs in Gilroy, ceased operations. SCH transferred its multi-family portfolio to
Eden Housing and entered into an agreement with a regional provider, Neighborhood
Housing Services Silicon Valley (NHSSV), to administer SCH’s BMR homeownership
units and down payment assistance loan portfolio. However, in mid-2015, NHSSV also
ceased operations. From mid-2015 to early 2016, City staff worked with NHSSV and
SCH staff to obtain the proper documents to facilitate the transfer of the portfolio to the
City as the City was a party to most of the agreements.
Prior to SCH’s dissolution, the City was responsible for oversight of 138 BMR
properties. The dissolution of SCH added an additional 155 BMR properties for a total
of 293 units for City staff to manage. With the increased number of BMR units and
down payment assistance loans, staff determined that engaging a third-party
administrator was the most effective approach to manage the City’s comprehensive
BMR homeownership portfolio. This approach was consistent with the model adopted
by several other cities in Santa Clara County following the dissolution of NHSSV,
ensuring continued professional administration and long-term program stability.
On March 6, 2017, Council approved a contract with HouseKeys to administer the
City’s BMR Housing Program until June 30, 2020. In July 2020, the contract was
extended, and the scope was increased to include rental units. The current contract
expires on June 30, 2026.
Currently, the City’s BMR Housing Program portfolio includes approximately 250 deed-
restricted BMR homeownership units, most of which are layered with deferred down-
payment assistance loans. In addition, the City’s broader affordable housing inventory
includes 1,927 tax credit-restricted rental apartment units.
Request for Proposals
On February 3, 2026, the City issued RFP No. 26-RFP-CDD-532 seeking proposals
from qualified consultants to administer the three components of the City’s BMR
Housing Program: Homeownership, Rental (100% Affordable Rental Units - Tax Credit
Projects and possible future BMR Rental Units), and Loan Administration. The RFP
was advertised in the Mercury News, posted on the City’s website, and distributed
directly via email to the following prospective consultants with experience in affordable
housing program administration:
• HouseKeys
• Hello Housing
Page 165 of 267
7.3.
• Rise Housing
• Alta Housing
• Heart of SMC
• Housing Inc.
• AmeriNat
At the conclusion of the solicitation period, the City received two proposals in response
to the RFP — HouseKeys and Hello Housing — for comprehensive administration of all
components of the City’s BMR Housing Program.
ANALYSIS
Given current staffing levels and the complex, highly specialized nature of the BMR
Housing Program, staff determined that the program is best administered by a
professional organization with the requisite expertise, resources, and dedicated staffing.
Based on the evaluation process (assembling a cross-departmental city staff review
panel to score the proposal, conducting reference checks, and interviewing applicant
staff), staff concluded that Hello Housing is the most qualified firm and will best serve
the interests of the City and the long-term success of the BMR Housing Program.
Hello Housing Proposal
Hello Housing is an experienced administrator of all aspects of BMR programs and
currently provides BMR program administration services for the cities of Santa Clara,
Newark, and Emeryville. In addition, Hello Housing designs and manages a Down
Payment Assistance Program for the County of Alameda Housing and Community
Development and the City of South San Francisco.
Hello Housing has over 14 years of experience providing specialized expertise in
affordable housing program administration and delivery. The firm’s 9-member
staff includes a multidisciplinary team of experts with backgrounds in affordable housing
program management, program design, finance, development, construction, and
housing services. They have a deep understanding of these different industries, each
with their own terminology, practices, and regulatory frameworks.
Hello Housing’s proposal details their intent to administer all three components of the
program. In addition to overall program administration, within the initial 60-day
onboarding period, they will conduct a comprehensive review of current program
guidelines, application guides, developer agreements and loan documents, etc., and
determine if there might be any recommendations for consideration based on best
practices or trends that may improve the program and help the City achieve its
affordable housing goals and objectives.
The Hello Housing proposal includes a detailed scope of work for administering the
BMR Housing Program. Examples of the scope include the following:
Page 166 of 267
7.3.
• Onboarding, including developing and updating program guidelines, agreements,
marketing materials, and documents, etc.
• Creating and maintaining a City BMR Housing Program webpage and program
database to manage records and interest lists
• Comprehensive customer service, including current and prospective BMR
homeowners, renters, and property managers
• Manage all resale (including Pilot BMR Preservation Program units) and possible
future new unit sale transactions, including transaction coordination, unit rehab
coordination and management, document preparation, marketing and outreach,
and purchaser qualification and selection process
• Comprehensive loan portfolio management, including refinances,
subordinations, and capital requests
• BMR Housing Program reporting, utilizing Homekeeper, a CRM database
platform from Salesforce, to track all service files in the BMR portfolio
• Conduct owner, renter, and community outreach efforts
One of the most important components of the proposal is monitoring and compliance
activities. Compliance monitoring is necessary to ensure continued affordability of BMR
units. The proposal by Hello Housing includes a scope for conducting annual
compliance for both the homeownership and rental components of the BMR Housing
Program. This service is vital to ensuring the integrity of the BMR portfolio for the City
and the residents benefiting from the program.
The City vetted this proposal through a comprehensive evaluation process that included
assembling a cross-departmental staff review panel to score the proposals, conduct
reference checks, and interview the Hello Housing staff. Based on this process, the
City determined that Hello Housing is qualified to perform the services outlined in the
RFP.
Following completion of the evaluation, a Notice of Intent to Award was issued on
March 2, 2026, with the contract scheduled for City Council consideration on April 6,
2026.
ALTERNATIVES
If Council chooses not to approve this contract, the current administration of the BMR
Housing Program will conclude on June 30, 2026. The City does not have the staffing
capacity or specialized expertise required to effectively administer the BMR Housing
Program in-house, which would result in a gap in program administration and oversight.
FISCAL IMPACT/FUNDING SOURCE
Page 167 of 267
7.3.
The total cost of the contract over the initial two-year term, from July 1, 2026, to June 30,
2028, is $376,080. The first-year cost totals $192,000 and includes a one-time
onboarding fee of $15,000, as well as a budget of 40 hours at $225 per hour ($9,000) for
Unit Rehab Coordination and Management (URCM). Costs for the second year, and any
subsequent years if the contract is extended, include a 4% cost-of-living adjustment.
The contract will be funded by the Housing Trust Fund (HTF) (52%) and the Los Arroyos
Fund (48%). The table below summarizes the projected expenditures associated with
this contract over a five-year period.
Period Annual Cost Program Set Up URCM Total
July 1, 2026 – June 30, 2027 $168,000 $15,000 $9,000 $192,000
July 1, 2027 – June 30, 2028 $174,720* $0 $9,360* $184,080
Total for Two-Year Contract $376,080
July 1, 2028 – June 30, 2029 $181,709* $0 $9,734* $191,443
July 1, 2029 – June 30, 2030 $188,977* $0 $10,124* $199,101
July 1, 2030 - June 30, 2031 $196,536* $0 $10,529* $207,065
Total with All Three, One-
Year Extension Options
(Five Years Total)
$973,689
*Includes annual 4% cost-of-living adjustment
Primary sources of revenue for the HTF and the Los Arroyos Fund include repayments
of down-payment assistance loans and equity shares received by the City from BMR
Housing Program resale transactions. Financial assets and ongoing revenue streams
within the HTF and the Los Arroyos Fund are sufficient to support continued BMR
Housing Program administration and fully fund the Hello Housing contract throughout the
initial term of the contract, plus three additional years if approved annually.
The FY 27 adopted budget is $180,000 for these services ($93,600 in the Housing Trust
Fund and $86,400 in the Los Arroyos Fund). An additional $12,000 in appropriations is
requested for FY 27 per the Budget Amendment Resolution ($6,240 from the Housing
Trust Fund and $5,760 from the Los Arroyos Fund). Future years’ appropriations will be
included as part of the future biennial budget development process.
PUBLIC OUTREACH
26-RFP-CDD-532 - Below Market Rate (BMR) Housing Program Administrator was
advertised in the San Jose Mercury, advertised on the City's website, and distributed
directly via email to prospective consultants with experience in affordable housing
program administration.
NEXT STEPS
Upon City Council approval, staff will execute the contract with Hello Housing to initiate
administration of the City’s BMR Housing Program effective July 1, 2026. Following
Page 168 of 267
7.3.
issuance of the contract, Hello Housing will commence program onboarding, including
transition coordination with the current administrator, file review, and administrative
setup. The onboarding process will be completed within 60 days of the start of the
contract, to ensure a seamless transition and continuity of services.
Attachments:
1. Draft Contract for Services – Hello Housing
2. Budget Amendment Resolution – Contract with Hello Housing (FY 27 Additional
Costs)
Page 169 of 267
-1- 4835-2267-0361v1
LAC\04706083
AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 20th day of April, 2026, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONSULTANT: Hello Housing, having a principal place of business at 121 San Anselmo
Avenue, #2440, San Anselmo, CA 94979.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on July 1, 2026 and will continue in effect through June 30,
2028, with three, one-year extension options unless terminated in accordance with the provisions
of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not
an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties
acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S
employees, including, without limitation, disability or unemployment insurance, workers’
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONSULTANT shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific
Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit
“C” (“Milestone Schedule”).
B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described
services. CITY shall have no right to, and shall not, control the manner or determine the method
of accomplishing CONSULTANT’S services.
Page 170 of 267
-2- 4835-2267-0361v1
LAC\04706083
C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as
CONSULTANT deems necessary to perform the services required of CONSULTANT by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the
performance of those services. CONSULTANT assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location
and at such times as CONSULTANT shall determine is necessary to properly and timely perform
CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONSULTANT exceed $973,689.
B. Invoices
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment
will be made unless CONSULTANT has first provided City with a written receipt of invoice
describing the work performed 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 CONSULTANT of the objection within thirty (30) days from receipt
of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It
shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts
to which it has objected until the objection has been resolved by mutual agreement of the parties.
D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against
CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be
responsible for any expenses incurred by CONSULTANT in performing services for CITY, except
for those expenses constituting “direct expenses” referenced on Exhibit “A.”
Page 171 of 267
-3- 4835-2267-0361v1
LAC\04706083
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under
this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent
any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or
death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law, CONSULTANT
shall defend, through counsel approved by CITY (which approval shall not be unreasonably
withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees
against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities
and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly
or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or
CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or
death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall
defend, through counsel approved by CITY (which approval shall not be unreasonably withheld),
indemnify and hold harmless CITY, its officers, representatives, agents and employees against any
and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and
expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly
from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or
agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due
to bodily injury, sickness or disease, or death to any person, and damage to property, including the
loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum
coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however,
Professional Liability Insurance written on a claims made basis must comply with the requirements
Page 172 of 267
-4- 4835-2267-0361v1
LAC\04706083
set forth below. Professional Liability Insurance written on a claims made basis (including without
limitation the initial policy obtained and all subsequent policies purchased as renewals or
replacements) must show the retroactive date, and the retroactive date must be before the earlier
of the effective date of the contract or the beginning of the contract work. Claims made
Professional Liability Insurance must be maintained, and written evidence of insurance must be
provided, for at least five (5) years after the completion of the contract work. If claims made
coverage is canceled or non-renewed, and not replaced with another claims-made policy form with
a retroactive date prior to the earlier of the effective date of the contract or the beginning of the
contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage
for a minimum of five (5) years after completion of work, which must also show a retroactive date
that is before the earlier of the effective date of the contract or the beginning of the contract work.
As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall
furnish written evidence of such coverage (naming CITY, its officers and employees as additional
insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via
a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation,
or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONSULTANT under this Agreement may be assigned or subcontracted by
CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole
and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all
required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges
and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S
payments;
• CITY will not make state or federal unemployment insurance contributions on
CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to
CONSULTANT;
• CITY will not make disability insurance contributions on behalf of
CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of
CONSULTANT.
Page 173 of 267
-5- 4835-2267-0361v1
LAC\04706083
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONSULTANT. Such assignment shall not release
CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination
pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’
receipt of such notice of sale.
If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated
upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of
its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written
notification to CONSULTANT. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
2. CONSULTANT’S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C” which have been fully, competently and timely rendered by
CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONSULTANT’S default in the performance of this Agreement or material breach by
CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY
Page 174 of 267
-6- 4835-2267-0361v1
LAC\04706083
may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and
all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of
work as described in this Agreement, to the extent such costs and expenses exceed the amounts
CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant
to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments
Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4
of this Agreement on the date due, then if and only if such nonpayment constitutes a default under
this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement
if such default is not remedied by CITY within thirty (30) days after demand for such payment is
given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONSULTANT shall
cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in
connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to facilitate
any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to
complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable
provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it
may be amended from time to time. CONSULTANT shall also require such compliance of all
subcontractors performing work under this Agreement, subject to the prohibition against
assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend
with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its
officers, employees, agents and representatives from and against all suits, claims, demands,
damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation
reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT,
its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
Page 175 of 267
-7- 4835-2267-0361v1
LAC\04706083
attorneys’ fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement
are for convenience only and shall not be considered nor referred to for resolving questions of
interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed in
the work, or the materials used in the work, or which in any way affect the conduct of the work,
and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over
the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the
Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a
contract or subcontract to the CITY OF GILROY for public works or for goods or services to
refrain from discriminatory employment or subcontracting practices on the basis of the race, color,
sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any
potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONSULTANT and that no person associated with CONSULTANT has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of this
Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains
all the covenants and agreements between the parties with respect to the rendering of such services
in any manner whatsoever. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone
acting on behalf of any party, which are not embodied herein, and that no other agreement,
statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
Page 176 of 267
-8- 4835-2267-0361v1
LAC\04706083
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section
V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be
deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance
under this Agreement shall not be construed as waiver(s) of any other condition of performance
under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
HELLO HOUSING CITY OF GILROY
By: By:
Name: Jennifer Duffy Name: Matt Morley
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number 14-1870357
Page 177 of 267
-9- 4835-2267-0361v1
LAC\04706083
Approved as to Form ATTEST:
City Attorney City Clerk
Page 178 of 267
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONSULTANT agrees to assign Jennifer Duffy, President, who will act in
the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the Services
in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written
“Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Christie
Thomas, Housing and Community Services Manager, shall be the designated City contact
person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by
CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this
Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance with
the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance,
and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request
this determination of completion when, in its opinion, it has completed all of the Services as
required by the terms of this Agreement and, if so requested, CITY shall make this determination
within two (2) weeks of such request, or if CITY determines that CONSULTANT has not
completed all of such Services as required by this Agreement, CITY shall so inform
CONSULTANT within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit “C”.
Page 179 of 267
-2- 4835-2267-0361v1
LAC\04706083
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.
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.
CONSULTANT 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
CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary
to perform the Services, and its duties and obligations, expressed and implied, contained herein,
and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its
skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in
conformance to and consistent with the standards generally recognized as being employed by
professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and
all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any
and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT
shall maintain for a minimum period of three (3) years (from the date of final payment to
Page 180 of 267
-3- 4835-2267-0361v1
LAC\04706083
CONSULTANT), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all charges
submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s
offices within five (5) business days after CITY’s request.
D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONSULTANT and all other written and oral
information developed or received by or for CONSULTANT and all other written and oral
information submitted to CONSULTANT in connection with the performance of this Agreement
shall be held confidential by CONSULTANT and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an
entity not connected with the performance of the such Services. Nothing furnished to
CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known
to the related industry (other than that which becomes generally known as the result of
CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this
Agreement in any magazine, trade paper, newspaper or other medium without the express written
consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of
CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain
and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether
or not associated with the City project for which the Services are performed. However,
CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from,
damages resulting from the use of said material for work other than PROJECT, including, but not
limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
Page 181 of 267
-4- 4835-2267-0361v1
LAC\04706083
H. NOTICES.
Notices are to be sent as follows:
CITY: Sharon Goei, Community Development Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Jennifer Duffy, President
Hello Housing
121 San Anselmo Avenue, #2440
San Anselmo, CA 94979
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost
for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONSULTANT, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement
without liability or, at its discretion, to deduct from the agreement price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or
contingent fee.
Page 182 of 267
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “B”
SCOPE OF SERVICES
BELOW MARKET RATE (BMR) HOUSING PROGRAM ADMINISTRATOR
1. BMR Program Administration Setup
a. Design and set up a formal BMR interest list in a database administered by the
CONSULTANT and owned by the City.
b. Review and organize Gilroy BMR homeowner files, rental files (possible future), loan
files, and the City’s existing digital inventory, and create a system for ongoing
administration and monitoring, including an easily accessible list of BMR portfolio units
showing their expiration date, and accompanying City down payment assistance loans.
c. Review existing BMR Re-Sale, Deed of Trust, Promissory Notes, and Developer
Affordable Housing Agreement templates and suggest modifications that align with
industry best practices.
d. Establish a point of contact with HOA presidents for all BMR developments, local
Escrow, Appraisal, Real Estate professionals involved in BMR resale transactions, and
Property Managers for 100% affordable developments.
e. Create flow charts and protocols for BMR home transfers, BMR acquisition, residence
owners’ refinances, capital improvement process, loan payoff/subordination, default
remedies, and other processes (noted above in qualifications) associated with the BMR
program.
f. Provide a dedicated webpage for the Gilroy BMR program, separately for current
Residence Owners and applicants. This webpage should include frequently asked
questions, online application forms (e.g., pre-qualification), available properties, upcoming
orientations, etc., and other relevant information.
Deliverables: Updated BMR Agreement and document templates, flow charts, and
protocols; web content
2. BMR Program Administration
a. BMR Inquiries: The CONSULTANT will respond within 24 hours to calls, emails,
and in-person inquiries from current BMR Residence Owners, housing portfolio loan
holders, etc.
b. BMR Eligibility List: The CONSULTANT will maintain a list of qualified buyers.
Page 183 of 267
-2- 4835-2267-0361v1
LAC\04706083
c. BMR Acquisition and Resale Coordination: The CONSULTANT will work with
City and County staff to administer the BMR Preservation Program and with Residence
Owners and their Realtors and escrow teams to manage the complete BMR resale process.
d. BMR Residence Owners Misc. Management: The CONSULTANT will guide current
Residence Owners through the refinance process, capital improvement permitting
process, loan payoff, equity share calculation inquiries, agreement questions, etc.
e. BMR Program Marketing: The CONSULTANT will conduct monthly virtual
program orientations, separately in English and Spanish, and quarterly in-person program
orientations. The CONSULTANT will also create flyers for available units and post them
on the CONSULTANT's Gilroy BMR webpage and the CONSULTANT's social media
accounts. The CONSULTANT will table at local Gilroy events at least twice per year and
outreach to local businesses to promote the program.
f. BMR Program Reports: The CONSULTANT will provide written quarterly reports
to staff and the City Council on the general status of the BMR program administration,
including:
i. General Program Activity
ii. BMR compliance (see item #3)
iii. Loan activity (see item #4)
iv. Current inventory of all affordable units within Gilroy City limits (including
notation of units in default or foreclosure, etc.)
v. Resale value of all BMR homes as requested by the County, annually
vi. Other information as needed for County and State reporting
g. Weekly virtual meeting with the CITY, quarterly in-person meetings with the CITY as
needed, and annual in-person meetings with City Council.
Deliverables: Quarterly BMR Program Reports, weekly customer service requests
tracking, monthly virtual Program Orientations, separately in English and Spanish,
quarterly in-person Program Orientations, weekly city staff meetings, and in-person
marketing as specified above. Resale, etc., documents/agreements drafted and recorded as
necessary
3. Annual BMR Compliance Monitoring
a. BMR Homeowner Certification: The CONSULTANT will coordinate with
homeowners annually via email or U.S. Postal Service mail to certify that the Residence
Owner continues to comply with the signed BMR Re-Sale Agreement, including living in
the BMR home as their principal residence. The CONSULTANT will work with the
City to remedy potential BMR defaults in accordance with the BMR Re-Sale Agreement.
Page 184 of 267
-3- 4835-2267-0361v1
LAC\04706083
b. 100% Affordable Developments annual recertification, including vacancy and rent
information reporting.
Deliverables: Annual Compliance Reports
4. Loan Administration
a. The CONSULTANT will maintain an updated database, to be owned by the City, of
all down payment assistance and other housing loans (borrower name and address, loan
amount, interest rate, loan term, loan distribution date, and due date). This database will
also include the principal and interest received from loan payoffs and any principal written
off due to foreclosure or other default.
b. The CONSULTANT will monitor existing down payment assistance and other
housing loans annually to ensure that the borrower complies with the loan agreement (e.g.,
current homeowner insurance, the Residence Owner continues to reside on the property).
In case of default, the CONSULTANT will contact the owner and work with the City
to see that the loan is repaid, and with the City’s permission, will, in certain circumstances,
process a loan modification.
c. The CONSULTANT will process all reconveyance documents, subordinations, and
legal recordings required when down payment assistance and other housing loans are paid
off or refinanced (on an as-needed basis).
d. The CONSULTANT will process all documents required, income calculations for
qualifications, etc., for new City down payment assistance loans.
Deliverables: The existing loan database and updated list are provided as loans are paid off
and new loans are created. Loan documents drafted and recorded as necessary.
5. BMR Home Sales/Resales/Acquisition (on an as-needed basis)
a. BMR Available Unit Marketing: The CONSULTANT will work with each
Developer, Homeowner, and/or the City to market the availability of new and resale BMR
homes via Multiple Listing Service and flyer distribution to the general public and on the
CONSULTANT's BMR website to eligible households who have expressed interest
in the BMR program. This task will include providing marketing materials, including
flyers in English and Spanish, to City staff for the City’s website, to place on the
CONSULTANT's BMR program website, and CONSULTANT's social media accounts.
b. Sales/Rental Prices: The CONSULTANT will keep current and publish on the
CONSULTANT's Gilroy BMR webpage, updated Santa Clara County income limits, and
other information necessary to set the sales prices of new and existing BMR homes being
offered for resale up to date. The CONSULTANT will provide literature showing rent
amount/income eligibility per income category/occupancy standards/bedroom count
information for rental units (city to provide a sample document), provided in English and
Spanish annually or as updated by HCD.
Page 185 of 267
-4- 4835-2267-0361v1
LAC\04706083
c. Homeowner Eligibility: The CONSULTANT will submit the data on each eligible
applicant to the City for approval before formalizing any Agreement.
d. BMR Homeowner Documents: The CONSULTANT will coordinate with the
Developer, lender, Title Company, and homeowner and review all required documents to
ensure that each BMR Residence Owner household meets the requirements of the BMR
program. The CONSULTANT will prepare and record all legal documents required for
each BMR homebuyer. The CONSULTANT will create both a hard file and an
electronic version of pertinent documents for each Residence Owner transaction. Hard
files, including all original recorded documents, will be kept in Gilroy’s office in the
Housing and Community Services Division storage area.
e. BMR Preservation Program: The CONSULTANT will work with City and County
staff to implement the BMR Preservation Program by coordinating with the CITY to
purchase available resale BMR Residences with County loan or City funds, including
setting up escrow and drafting purchase agreements, etc. The CONSULTANT will
work with a local Realtor to manage the rehab of the property, market to income-qualified
households, conduct a lottery, and set up escrow for resale (see d. for additional resale
requirements), etc.
Deliverables: Marketing materials (English & Spanish); Sales prices & related information
(upon request); HCD/Santa Clara County Rent Limits annual document, homeowner
eligibility data; BMR Homeowner documentation/files, BMR Preservation Program
acquisitions and resale transaction documentation.
6. Housing Fund / BMR Programs: The CONSULTANT will work with City staff to recommend,
develop, and implement programs using the City of Gilroy Housing Trust Fund and Deferred
Down Payment Assistance Loan cash funds. City Council will approve any new programs under
this task.
Page 186 of 267
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “C”
MILESTONE SCHEDULE
ONBOARDING OF THE BELOW MARKET RATE (BMR) HOUSING PROGRAM
CONSULTANT shall conduct onboarding of the comprehensive BMR program beginning
contract effective date, July 1, 2026, and ending within 60 days after issuance. During this on-
boarding process, the CONSULTANT shall generate the following deliverables for the BMR
Housing Program:
• Create and host a custom City of Gilroy webpage linked to City of Gilroy HCS Below
Market Rate webpage for the program, clarifing program information, contact information,
application links, and provide downloadable access to key forms for program participants.
• Conduct a comprehensive review of the current program guidelines, application guides,
developer agreements and loan documents to determine if there might be any
recommendations for consideration based on best practices or trends that they have seen
that may improve the program. This review will also incorporate approved adjustments in
administration processess determined in partnership with the city to ensure public facing
materials align with any new administration practices.
• Within the first 30 days, CONSULTANT will interview key city staff to understand if
there are any policy or programmatic shifts that may need to be memorialzed in existing
documents as part of the onboarding process.
• CONSULTANT team will host portfolio transition meetings and work with the CITY and
the City's Fiscal Year 2026 BMR Program Admistrator, as necessary, to ensure customer
files and applicant information is transitioned effectively and with sensitivity to personal
and financial information.
• A full inventory of current tools and forms utilized in the program will be used to build
out outdated templates, forms, and applications, including building an outline pre-
application and purchase application platform to support ownership and rental eligibility
review practices.
• All draft froms and public access links will be reviewed, approved, and tested before
publishing.
• Index of all BMR units (homeownership and tax credit apartment developments),
including owners/property managers, deed restriction details, and loan terms and amounts.
All pertinant current homeownership and tax credit apartment development files will be
digitized and a Gilroy data storing system will be built out to include data tracking fields
in consultants Homekeeper database.
Page 187 of 267
-2- 4835-2267-0361v1
LAC\04706083
• Draft and send an introduction letter to all BMR homeowners, HOA Board Chairs, Tax
Credit Apartment Developments, property owners, as well as any applicant interest list or
wait list announcing the change in the CONSULTANT.
• Correspondence with existing program partners (SCC Office of Supportive Housing,
Lenders, Appraisers, Escrow Services, Agents) will be conducted to ensure a seamless
transition and minimal disruption in support services.
• Estabilish initial ongoing meetings with key personnel associated with existing program
partners to ensure effective communication and points of contact are established.
BMR PROGRAM ADMINISTRATION
In addition to these milestones, other deliverables by the CONSULTANT are expected to be
delivered during the following timeframes:
1. BMR Program Reports: The CONSULTANT will provide written quarterly reports to staff and
the City Council on the general status of the BMR program administration, including:
a. General BMR Program Activity,
b. Monthly open customer service requests tracking,
c. Monthly virtual Program Orientations, separately in English and Spanish,
d. Quaterly in-person Program Orientations, and
e. In-person marketing as specified in Scope of Services.
Below data will be delivered to staff during weekly meetings (or via email in between meetings as
necessary) as updates to status occurs.
2. BMR compliance as updates occur (see item #3 in Scope of Services - Deliverables)
3. Loan activity as updates occur (see item #4 in Scope of Services - Deliverables)
4. Current inventory of all affordable units within Gilroy City limits (including notation of units
in default or foreclosure, etc.) as updates occur.
5. Miscellaneous Reporting and Meeting Requirments:
a. Resale value of all BMR homes as requested by the County, annually.
b. Other information as needed for County and State reporting.
c. Weekly virtual meeting with Gilroy city staff, quarterly in-person meetings with staff as
needed, and annual in-person meetings with City Council.
Page 188 of 267
4835-2267-0361v1
LAC\04706083
EXHIBIT “D”
PAYMENT SCHEDULE
The CONSULTANT will submit monthly invoices of $14,000 per month for year one and
$14,560 per month for year two. Other fees, such as the Unit Rehab Coordination and Management
will be added services, as requested by the CITY.
The one-time Program Setup Fee of $15,000 shall be paid upon completion of the setup
services and acceptance by the City, following receipt of a valid invoice from the CONSULTANT.
If the CITY executes the three one-year extension options, the monthly fee is $15,142 for year
three, $15,748 for year 4, and $16,378 for year 5. Other fees will be added for services as requested
by the CITY. Years 2-5 rates include the 4% cost-of-living* (COLA) adjustment.
The CONSULTANT will not invoice for cost incurred for basic office functions such as phone
lines, postage, photocopying and other office equipment.
FIVE- YEAR CONTRACT "NOT TO EXCEED" SUMMARY
Year Period Annual Cost Setup Other Total
1 7/1/2026-6/30/2027 $168,000 $15,000 $9,000 $192,000
2 7/1/2027-6/30/2028 $174,720 $0 $9,360 $184,080
[Total for 2-Year Contract $376,080]
3 7/1/2028-6/30/2029 $181,709 $0 $9,734 $191,443
4 7/1/2029-6/30/2030 $188,977 $0 $10,124 $199,101
5 7/1/2030-6/30/2031 $196,536 $0 $10,529 $207,065
Grand Total $973,689
A detailed breakdown of the fees is provided below.
PROGRAM SETUP
Digitization of BMR files, create service files for $4,000 one-time fee
all BMR programs and loan participants,
build out online file directory
Build program specific webpage, online Pre-application $2,500 one-time fee
and Purchase Application
Revise existing Program manuals, forms and $4,500 one-time fee
documents to include current administrative
practices, logos and contact info and
recommendations based on best practices
Page 189 of 267
4835-2267-0361v1
LAC\04706083
Send out introduction communications to all $1,000 one-time fee
BMR Owner's, Property Managers and existing
program partners - coordinate meetings to further
introduce our team and key points of contact.
Build out BMR Program Application Workshop Materials $3,000 one-time fee
TOTAL $ 15,000
PROGRAM ADMINISTRATION
Program Administration Total (Year 1) $14,000 per month / $168,000 per year
Program Administration Total (Year 2) $14, 560 per month / $174,720 per year
In addition to the deliverables in the Scope of Services, the following tasks are included with
the monthly fee:
• Field and track inquiries from the public, triage response and share actions with the City
• General portfolio reporting on status, inquiries, trends and resolutions
• Review and update, as necessary BMR Program Policies, Guidelines, Procedures and
Agreements
• Ownership Monitoring, data collection in CRM database, follow-up tracking and reporting
• BMR Rental Compliance monitoring audits for each development
• Maintain and update web page with updated income eligibility tables, programmatic
information and relevant BMR ownership and rental housing information
• Develop and maintain BMR Interest List
• Develop and disseminate marketing materials for use by the CITY, for the CONSULTANT's
e-newsletter blasts, social media, interest lists and for peer organizations.
• Identify and onboard preferred lenders and HUD approved homebuying counseling agencies
conduct training on the program throughout the year around sale campaigns.
• Provide annual trainings to Property Management teams on annual compliance and
recertification activities.
• Coordinate with Development Sales Teams to facilitate closing process workflow,
communication protocols, marketing collateral and status updates for new BMR pipeline.
• Meetings with City staff to review program status, transaction status and inquiries. Produce
reports as requested.
• Ongoing training and oversite of the CONSULTANT team.
Page 190 of 267
4835-2267-0361v1
LAC\04706083
PROGRAM TRANSACTIONAL FEES
New BMR Ownership Sales (Paid by Owner) 3% of sales price / Max $18,000
Ownership Resales (Paid by Owner) 6% of sales price / Max $36,000
BMR Preservation Activities: City Buyback, 6% per sales price / Max $40,000
New Resale (Built into Resale Price )
3% of Resale Restriction Price & 3% of New Sales Price
Unit Rehab Coordination and Management $225 per hour
(Dependent on Scope of Rehab Activities)
Refinance, Subordination Requests, Loan Payoffs $1,200 per transaction
(Paid by Lender/Owner) Other Fees Rates*
REIMBURSABLE COSTS
Language Translation Services actual cost plus 10%
including ASL interpretation services
(excluding English/Spanish deliverables in the Scope of Services)
HOURLY CONSULTING FEES* (for services outside base scope described above)
President $ 250
Program Manager $ 175
Program Specialist $ 175
Loan Closing Specialist $ 135
Construction Project Manager $ 225
*These fees are subject to an annual COLA of 4%, beginning July 1, 2027.
Page 191 of 267
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING THE BUDGET FOR THE CITY OF GILROY FOR 2026-
2027 IN THE HOUSING TRUST FUND AND THE LOS ARROYOS
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, 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
budget amendment for Fiscal Year 2026-2027 in the staff report dated April 20, 2026, for the
Below Market Rate (BMR) Housing Program Administration, a portion of a one-time
onboarding fee; 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 2026-2027 in the Housing Trust Fund (Fund 250) are hereby increased by $6,240
and in the Los Arroyos Fund (Fund 255) by $5,760.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting
duly held on the 20th day of April 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 192 of 267
Resolution No. 2026-XX
Award the BMR Program Administrator Contract and Budget Amendment
City Council Regular Meeting | April 20, 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 City Council of the City of Gilroy at a Regular Meeting held on April 20,
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 193 of 267
7.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Award a contract to 17 Mile Construction in the amount of
$198,900 for tenant improvements at 641 Old Gilroy St
(Jessup Property); Approve a project contingency of $19,100,
and Approve a total project expenditure of $218,000
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Utilities
Submitted by: Karl Bjarke, Interim Public Utilities Director
Prepared by: Izabela Cirloganu, Management Analyst
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
1. Award a Public Works contract in the amount of $198,900 to 17 Mile
Construction for the tenant improvement project at 641 Old Gilroy St.;
2. Approve a project contingency of $19,100 for a total project authorization of
$218,000; and
3. Authorize the City Administrator to execute the contract documents and approve
any future change orders within the project contingency.
EXECUTIVE SUMMARY
The property at 641 Old Gilroy Street (Jessup Property) was purchased last year by the
City to relocate the Utilities Department Operations team to the building. The Utilities
Department staff conducted a procurement process to solicit bids for tenant
improvements at the Jessup Property. The project will prepare the site for occupancy by
the Water and Wastewater Operations staff by addressing building repairs, code
compliance items, and functional upgrades to the office spaces.
Staff received and evaluated four bid submittals to determine the lowest responsive and
Page 194 of 267
7.2.
responsible bid. 17 Mile Construction submitted the lowest responsive bid and
demonstrated the ability to complete the work within the project scope and timeline.
The proposed contract amount of $198,900 is within the project budget of $220,000.
Approval of this contract will allow the City to proceed with the planned improvements
and support utility operations at the site.
BACKGROUND
This past summer, the City acquired the property at 641 Old Gilroy Street (Jessup
Property). The site, which contains an administrative building and an industrial
warehouse, is adjacent to the existing Corporation Yard, providing an opportunity to
expand and enhance municipal operations on a larger footprint.
The property will serve as dedicated office space for the Utilities Department’s Water
and Wastewater Sections. It includes the two buildings mentioned above, totaling
approximately 8,666 square feet on a nearly one-acre paved parking area. The site was
originally developed in the late 1970s and early 1980s, with subsequent improvements
made by the previous owner's commercial operation.
The front building (1,666 square feet) will house the Water Section operations team and
includes three office rooms, a kitchen, and a restroom. The rear building (approximately
7,000 square feet) includes a hangar/warehouse and approximately 1,680 square feet
of office space, consisting of three office rooms, a kitchen, two restrooms, and a
designated area for a future locker room.
Due to the age and condition of the buildings, renovations are necessary to make the
spaces functional, compliant, and suitable for staff occupancy. Utilities staff, together
with the City Building Official and Facilities staff, conducted walkthroughs and
developed a list of required improvements. The scope of work includes flooring, drywall
repair, interior painting, lighting replacement, new cabinets, backsplash, and countertop
upgrades, minor plumbing, kitchen installation, concrete staining, ADA ramp
reconstruction, and other general improvements to prepare the space for office use.
ANALYSIS
Pursuant to the City's purchasing policy, the Utilities Department conducted an informal
public works project bid solicitation process and received four bids. The contract is to be
awarded to the lowest responsive and responsible bidder.
Received bids were evaluated for completeness, responsiveness to the Scope of Work,
and cost. 17 Mile Construction submitted the lowest responsive and responsible bid at
$198,900 and demonstrated the capacity to perform the work as specified.
Page 195 of 267
7.2.
A summary of the bids received is provided below:
Company Name Type of Proposal Amount Quoted
17MileConstruction Lump Sum $ 198,900
Method Construction Itemized by Area $ 203,376
Manning Development Fully Itemized $ 217,869
Strawn Lump Sum $ 218,922
Based on this evaluation, the staff recommends awarding the contract to 17 Mile
Construction as the lowest responsive and responsible bidder.
ALTERNATIVES
The alternative would be to reject all quotes and not award the contract. Staff does not
recommend this option, as it would delay the project and require restarting the
procurement process. In addition, staff have found it challenging to attract qualified
contractors for projects at or below the $220,000 threshold who are also willing to
comply with prevailing wage requirements. Smaller tenant improvement projects of this
size often generate limited contractor interest, and rebidding may result in fewer
responses, higher costs, or further delays in completing the necessary improvements.
FISCAL IMPACT/FUNDING SOURCE
Staff recommends awarding this project to 17 Mile Construction for $198,900 and
authorizing a contingency amount of $19,100 (approximately 10%). Staff budgeted
funding for this project within the Water Fund (705) and Wastewater Fund (700) under
the Repair and Maintenance approved budget for FY 26. If approved, the total
authorized amount for this project, including the contingency, is $218,000.
Costs will be shared equally between the two funds, with each fund contributing
$109,000 toward the total project amount.
PUBLIC OUTREACH
N/A
NEXT STEPS
Upon Council approval, the contract will be executed. Staff will coordinate with the
contractor to complete the following next steps: obtain and submit a payment bond in
the amount of 100 percent of the contract value; verify the contractor's registration with
the Department of Industrial Relations (DIR) and register the project; and finalize the
selection and approval of finishes and colors.
Page 196 of 267
7.2.
Attachments:
1. 17 Mile Construction Services Inc. -Signed Agreement
Page 197 of 267
-1- 4835-2267-0361v1
LAC\04706083
AGREEMENT FOR SERVICES
(For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR)
This AGREEMENT made this day of April, 2026, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONTRACTOR: 17 Mile Construction Services, Inc., having a principal place of business at
26600 Pancho Way, Carmel CA 93923.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 1, 2026 and will continue in effect through July 31,
2026 unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that 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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 198 of 267
-2- 4835-2267-0361v1
LAC\04706083
C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as
CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the
performance of those services. CONTRACTOR assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at 641 Old Gilroy St
Gilroy California 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 $198,900 (one hundred
ninety-eight thousand nine hundred and 00/100) for the entire 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
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 199 of 267
-3- 4835-2267-0361v1
LAC\04706083
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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 200 of 267
-4- 4835-2267-0361v1
LAC\04706083
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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 201 of 267
-5- 4835-2267-0361v1
LAC\04706083
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 materi al 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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 202 of 267
-6- 4835-2267-0361v1
LAC\04706083
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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 203 of 267
-7- 4835-2267-0361v1
LAC\04706083
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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 204 of 267
-8- 4835-2267-0361v1
LAC\04706083
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:
17 Mile Construction Services Inc. CITY OF GILROY
By: By:
Name: Matt Carley Name: Matt Morley
Title: Managing Partner Title: City Administrator
Social Security or Taxpayer
Identification Number 85-1012823
Approved as to Form ATTEST:
City Attorney City Clerk
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 205 of 267
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONTRACTOR agrees to assign Matt Carley, 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, Izabela
Cirloganu 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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 206 of 267
-2- 4835-2267-0361v1
LAC\04706083
Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay
only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary
to perform the Services, and its duties and obligations, expressed and implied, contained herein,
and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its
skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in
conformance to and consistent with the standards generally recognized as being employed by
professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and
all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any
and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONTRACTOR), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all charges
submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the
CITY’s offices within five (5) business days after CITY’s request.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 207 of 267
-3- 4835-2267-0361v1
LAC\04706083
D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONTRACTOR and all other written and oral
information developed or received by or for CONTRACTOR and all other written and oral
information submitted to CONTRACTOR in connection with the performance of this Agreement
shall be held confidential by CONTRACTOR and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an
entity not connected with the performance of the such Services. Nothing furnished to
CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known
to the related industry (other than that which becomes generally known as the result of
CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this
Agreement in any magazine, trade paper, newspaper or other medium without the express written
consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of
CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain
and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether
or not associated with the City project for which the Services are performed. However,
CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from,
damages resulting from the use of said material for work other than PROJECT, including, but not
limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 208 of 267
-4- 4835-2267-0361v1
LAC\04706083
H. NOTICES.
Notices are to be sent as follows:
CITY: Izabela Cirloganu
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Matt Carley
17 Mile Construction Services, Inc.
26600 Pancho Way
Carmel, CA 93923
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.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 209 of 267
4835-2267-0361v1
LAC\04706083 -5-
J.PREVAILING WAGE
CONTRACTOR agrees and acknowledges that it is its obligation to determine whether, and to
what extent, any work performed is or any workers employed relative to any construction to be
performed under this Agreement are subject to any Codes, Ordinances, Resolutions, Rules and
other Regulations and established policies of CITY and the laws of the State of California and the
United States, including, without limitation, the California Labor Code and Public Contract Code
relating to public contracting and prevailing wage requirements ("Prevailing Wage Laws ). To the
extent Prevailing Wage Laws apply to work performed or workers employed for the purpose of
performing work under this Agreement, CONTRACTOR shall fully comply with and ensure that
all workers and/or subcontractors are informed of and comply with all Prevailing Wage Laws and
specifically any applicable requirement of California Labor Code Sections 1720 et seq. and 1770
et seq. and the regulations thereunder, which require the payment of prevailing wage rates based
on labor classification, as determined by the State of California, and the performance of other
requirements on certain "public works" or "maintenance" projects. It is the duty of
CONTRACTOR to post a copy of applicable prevailing wages at the job site. Prevailing wage
information may be obtained at www.dir.ca.gov.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 210 of 267
4835-2267-0361v1
LAC\04706083 -1-
EXHIBIT “B”
Scope of Work for Tenant Improvement at 641 Old Gilroy St.
The City of Gilroy Utilities Department is undertaking a tenant improvement project at the
property located at 641 Old Gilroy Street to renovate and prepare two adjacent buildings for
office use. The project will not structurally alter any of the existing buildings; instead, it will repair
and enhance the current layout to better accommodate the daily administrative and operational
activities for Utilities staff.
The property consists of two adjacent buildings. The front building, which faces Old Gilroy Street,
will be renovated and configured to serve as office space for the City’s Water Section team. The
building is approximately 1,664 sf.
The second building, adjacent to the front one, is a 7,000 sf metal warehouse that includes
approximately 2,000 sf of office space. This area will be improved to accommodate the City’s
Wastewater Section team.
A. Water Section Office Area
The Water Section office area will include the following improvements: framing and drywall
repair to the exposed areas, updated flooring, patching and painting of the entire space, recessed
light installation. The following are specific scope items:
1)Provide wall and floor framing where the drywall and flooring are currently exposed (area next
to the entrance, area next to the second door)
2)Remove one door and its frame, then patch and finish the drywall so it matches the existing
interior wall texture.
3)Provide drywall repair where needed.
4)Create the same finish texture for the ceiling and walls.
5)Prime all surfaces. Paint should be two coats with the color and sheen provided by the Contract
Manager. Walls and Ceiling will be painted one color.
a)The paint brand should be Dunne Edwards or Sherwin Williams, as approved by the
Contract Manager.
6)Prime and paint all interior doors and windows sills. Color and sheen choices will be provided
by the Contract Manager.
7)Furnish and install 60 4” LED Downlight with Selectable CCT Can Lights. Install dimmers;
one per room.
a)If the number of lights need to be reduced, details on the lighting plan should be discussed
with the Contract Manager.
8)Furnish and install emergency ballasts (for night lighting).
9)Install commercial vinyl flooring per the specs provided by the City.
a)Commercial sheet vinyl Visionary Collection by Mohawk or commercial grade vinyl
plank. Colors choices will be selected by the Contract Manager.
b)Finish with 4” baseboard in all rooms. Color choice will be selected by the Contract
Manager.
10)Install a new sink, all appurtenant plumbing, laminate kitchen counter, kitchen fronts, and
backsplash. Items will be provided by the City.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 211 of 267
4835-2267-0361v1
LAC\04706083 -2-
B.Wastewater Section Office Area
The Wastewater Section office area will include improvements such as framing and drywall repair,
install flooring, patching, painting, minor plumbing area and recess cans installation. The
following are specific scope items:
1)Provide and install sheetrock 8 ft in height in the locker room. Tape and finish at the top to
transition to the existing wall area. Leave the beams of the ceiling exposed. Beams and the
plywood ceiling will be primed and painted.
2)Polish and provide a concrete stain floor coating with rubber base only for the locker room.
3)Frame and infill two door openings and match the existing drywall texture.
4)Frame and install a new door and install one new building standard door, install frame and
hardware. Hardware will be provided by the City.
5)Install commercial vinyl flooring per the specs provided by the City in 3 rooms (two offices
and a conference room). Hallway, kitchen and bathroom are not included.
a.Commercial sheet vinyl Visionary Collection by Mohawk or commercial plank vinyl.
If the brand is changed, the decision must be approved by the Contract Manager.
b.Install 4” baseboard in all rooms.
6)Provide water and sewer connections for the breakroom and sink.
7)Install the kitchen cabinets, counter, sink and backsplash. Remove the existing sink in the
hangar area, by the entrance and install a new one. Items will be provided by the City.
8)Furnish and install 6 4-foot LED light fixtures and 1 standard switch for the locker area
9)Furnish and install 55 4-inch LED Downlights with selectable CCT Can Lights recessed light
fixtures and dimmable switches.
a.If the number of lights needs to be reduced, details on the lighting plan should be
discussed with the Contract Manager.
10)Prime all surfaces (minus the two-bathrooms existing plastic baseboards which are in good
condition). Paint should be two coats with the color and sheen provided by the Contract
Manager. Walls and Ceiling will be painted one color. Missing ceiling tiles will be provided
by the Contract Manager.
a.The paint brand should be Dunne Edwards or Sherwin Williams, as approved by the
Contract Manager.
11)Prime and paint all interior doors and windows sills. Color and sheen choices will be provided
by the Contract Manager.
C. Front Office ADA Ramp (ramp specs are attached to the Scope of Work)
1)Demolish the existing ramp and remove the concrete from the site.
2)Provide plan for new ramp and landing showing dimensions and slopes for City’s review and
approval.
3) Construct new ramp and landing expansions, including handrails per approved plan.
4)Landing shall be 5’X5’ and the ramp shall be 4’ wide with a 6” curb
5)Remove and reconstruct the current step at the kitchen entry to ensure compliance with state
requirements.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 212 of 267
4835-2267-0361v1
LAC\04706083 -3-
Additional:
1)Provide all required progressive clean up and dump fees (this includes mopping all hard surface
flooring, haul off all remaining waste and construction debris)
2)A permit with the City is required for the ADA ramp. Utilities Department will pay for the
permit application fees; however, the drawings and the permit submittal are the contractor’s
responsibility.
3)Some landscaping adjacent to the new concrete ramp will need to be removed. No repairs or
re-planting is included.
4)A City inspector will visit the site and provide the notice to proceed before pouring the concrete
for the ramp. Any additional fees for the inspection will be supported by the Utilities
Department.
Supplemental Conditions:
A.The Contractor must provide an experienced, competent Superintendent who is responsible
for effectively supervising all work in progress. In addition to supervision or work in
progress, the Superintendent must be capable of instructing his subordinates in correct and
proper installation techniques.
B.The Contractor shall be solely and completely responsible for conditions of the jobsite,
including safety of all persons and property during performance of the work. This
requirement shall apply continuously and not be limited to normal working hours. Safety
provisions shall conform to U.S. Department of Labor, the California Occupational Safety
and Health Act (OSHA), and all other applicable Federal, State, County, and local laws,
ordinances, codes, the requirements set forth below, and any regulations that may be
detailed in other parts of these Contract Documents. Where any of these are in conflict, the
more stringent requirement shall be followed.
C.The Contractor is responsible for its and its subcontractor’s compliance with the provisions
of Section 1776 of the Labor Code.
D.Work Hours: Normal working hours shall be limited to eight (8) hours per day, typically
between 7:00 a.m. or 8:00 a.m. and 4:00 p.m. or 5:00 p.m., depending on the start time,
and forty (40) hours per week. No overtime is allowed.
E.Upon contract award and prior to issuance of the Notice to Proceed, the Contractor shall
furnish a Payment Bond in the amount of 100% of the total contract value.
F.Contractor must be registered with the Department of Industrial Relationships (DIR). The
City Facilities Manager will register the Project once the City Council approves the
contract.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 213 of 267
4835-2267-0361v1
LAC\04706083 -1-
EXHIBIT “C”
MILESTONE SCHEDULE
The project is scheduled to begin mobilization on May 1, 2026, with the City providing site access.
The anticipated project completion date is July 31, 2026; however, this timeline is dependent on
the issuance of the permit for the ADA ramp.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 214 of 267
4835-2267-0361v1
LAC\04706083 -1-
EXHIBIT “D”
PAYMENT SCHEDULE
The total contract amount is $198,900 (one hundred ninety-eight thousand nine hundred dollars).
The Contractor shall submit invoices bi-weekly for work completed. The City will review and
process each invoice and issue payment within two weeks of receipt, or sooner when feasible.
Docusign Envelope ID: 5FC79DF0-9C41-4274-AA09-6A63D1D56B02
Page 215 of 267
8.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Public Hearing to Establish a List of Properties Subject to the
Weed Abatement Program and Adoption of a Resolution
Authorizing the Fire Chief to Abate the Nuisance Arising Out
of Weeds Growing and Refuse Accumulating Upon Property
in the City of Gilroy Pursuant to Section 12.51 of the Gilroy
Code
Meeting Date: April 20, 2026
From: Matt Morley, 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 of the City Council of the City of Gilroy authorizing the Fire Chief to
abate the nuisance arising out of weeds growing and refuse accumulating upon
property in the City of Gilroy, pursuant to Section 12.51 of the Gilroy City Code.
EXECUTIVE SUMMARY
The Weed Abatement Program is an annual process required under the Gilroy
Municipal Code and State Health and Safety Code to mitigate fire hazards caused by
unmanaged vegetation and refuse on private property. This report presents the 2026
commencement list of 118 properties with a history of non-abatement, outlines the
notification steps taken by the County and City, and requests Council approval to
authorize the Fire Chief to abate nuisance conditions where compliance is not achieved
by the May 15, 2026, deadline. Adoption of the resolution will allow the County, under
its existing agreement with the City, to conduct inspections, issue notices, perform
abatement where necessary, and recover associated costs through administrative fees
and future tax assessments.
Page 216 of 267
8.1.
BACKGROUND
On February 9, 2026, the City Council adopted Weed Abatement Resolution 2026-06
declaring weeds and refuse as a public nuisance. This annual process complies with
both the City Code and State Health and Safety Code, which require that, prior to
authorizing the abatement of a lot, the City hold a public hearing of the subject
properties. The City of Gilroy, via the annual resolution, identifies those properties and
owners with a history of non-abatement, and this list serves as the commencement list
for the County’s inspection and abatement program. The abatement program continues
to be implemented under an agreement with the Santa Clara County Agricultural
Commissioner’s Office for the Vegetation Management Program.
ANALYSIS
All subject property owners identified on the commencement list have been mailed a
public hearing notice, as well as the abatement instructions and the fee costs. The
abatement notice is sent to property owners after City Council adoption of the Weed
Declaration Resolution. As part of the notification, property owners receive notice that
the annual Abatement Deadline is May 15, 2026. A second notice was sent out
approximately 30 days prior to the May 15th deadline. If the property owner fails to
complete abatement of their lot by May 15, 2026, the owner will be assessed fees for
the failed inspection, in addition to the initial inspection fee, and will receive a notice
requiring that the abatement be completed within two weeks.
Lots in the Wildland Urban Interface Hazardous Fire Areas, primarily homes on the
hillside, pose an immediate concern with potential wildfires. Therefore, these owners
will not receive the additional 2-week grace period. If these lots are not abated by the
May 15th deadline, the County will complete a work order to have the lot abated by their
contractor. The County will then assess an abatement administrative fee, in addition to
the cost of the abatement. The abatement administrative fee and cost of abatement will
be in addition to the inspection fee and the failed inspection fee.
At the conclusion of the abatement period, a public hearing (tax lien hearing) will be
held on August 3, 2026, to add the fees as a tax assessment for the following year’s
property taxes. Prior to the City Council tax lien assessment hearing, property owners
with an assessment will be notified of the pending action. They can request an
administrative meeting/review with the County’s Program Manager and the City’s Fire
Marshal, should they disagree with the assessment. The administrative meeting/review
can be held in person, virtually, or by phone. The purpose is to eliminate assessments
that were incorrectly made through an error or incorrectly applied to the wrong property
owner.
A listing of the properties and owners that have been noticed is attached and on file
with the City Clerk. It is also posted at the City’s Fire Stations. Lots in which weeds
Page 217 of 267
8.1.
and/or rubbish have been abated by the May 15th deadline and are maintained in an
abated condition through the fire season, will only be assessed the $296 inspection fee.
Following the adoption of the Weed Declaration Resolution by the City Council, this
year’s weed abatement notices went out to property owners in March 2026. This year’s
commencement listing consists of 118 properties, identified by assessor parcel number
(APN). As part of the inspection process, which will occur shortly after May 15, 2026,
the County will maintain current photos and documentation of their inspections.
Property owners who missed the deadline will receive subsequent notices and
associated fees. Lots that need immediate abatement (e.g., those located in Wildland
Urban Interface Hazardous Fire Areas) will be abated by the County. A comprehensive
report of abated lots and associated fees will be presented to the City Council at the tax
lien assessment hearing on August 3, 2026.
The agreement with the County requires properties that have failed inspections within
the past three years to remain on the commencement list. A property with no violations
within a consecutive three-year period will be removed from the commencement list.
However, the County does provide for some lots to be removed from the
commencement list if the property has been completely redeveloped and there is no
unmanaged weed hazard. The commencement list length fluctuates from year to
year. The commencement list changed from 174 lots for 2019 to 146 lots for 2020, 150
for 2021, 146 for 2022, 166 lots for 2023,154 lots for 2024, 129 for 2025 and 118 lots
for 2026.
Any owner that objects to their property being on the commencement list can object as
part of this public hearing. Such lots can be removed from the commencement list if
there is adequate reason (i.e., the lot has been redeveloped and there is no weed
hazard). Any objections will be evaluated for conformance to the agreement and an
adjustment will be made if appropriate. Otherwise, the commencement list should be
approved by the City Council so the program can proceed. Owners with concerns that
cannot meet the deadline due to site conditions can contact the County and/or City Fire
Marshal’s office.
The County also provides a website for the public to notify them of weed complaints
(https://weedabatement.santaclaracounty.gov/home). Lots that are reported or identified
to be out of compliance with weed and refuse requirements that are not on the
commencement list will also be sent a warning notice to comply. Administrative citations
can be issued by the Fire Marshal’s office, and lots can be added to the abatement
program for the following year. If an unlisted lot has unmitigated weeds and refuse, that
lot can be scheduled for a separate public hearing to allow the County to abate the lot
this year and assess fees for cost recovery. Voluntary compliance is encouraged.
The information provided above demonstrates that the Weed Abatement Program
continues to serve as an effective partnership between the City and Santa Clara County
in reducing hazardous fire conditions and ensuring consistent compliance across the
community. The commencement list reflects the County’s criteria for identifying
Page 218 of 267
8.1.
properties with prior non-compliance, while the established inspection and notification
process offers property owners multiple opportunities to achieve voluntary abatement.
Approval of the resolution will affirm the City Council’s authorization for the Fire Chief to
proceed with enforcement actions as needed and will enable the County to implement
inspections, documentation, and abatement in accordance with the program’s
established standards, ensuring continuity, cost recovery, and timely mitigation of fire
hazards.
ALTERNATIVES
The Council could choose not to approve the resolution to establish the commencement
list. The burden of both managing this program and abating the properties would revert
back to the City of Gilroy, requiring additional resources to be needed and no funding
available. This alternative is not recommended.
FISCAL IMPACT/FUNDING SOURCE
As long as the County recovers its expenses for the program using the fees assessed,
the County bears the entire cost of the program. If there is a shortfall in cost recovery,
the City would be requested to provide its proportionate share of the shortfall.
Historically, the process has generally operated through full cost recovery handled by
the County.
PUBLIC OUTREACH
In March of 2026, the County of Santa Clara mailed abatement notices and instructions
to property owners identified on the commencement list. In coordination with Gilroy Fire
Operations and Gilroy Fire Prevention staff, the City’s Communication and Engagement
Manager provides public education and outreach using the Gilroy Email Express, the
City’s website, and various social media platforms.
NEXT STEPS
The property owners on the commence report (list of properties), will have received at
least two written notifications from the County Weed Abatement Program (one in March
2026 and another in May 2026). May 15, 2026, is the date set for the weed abatement
deadline. After this date, City and County staff will report non-compliant conditions for
weed abatement. Lots reported or identified as out of compliance with weed and refuse
requirements that are not on the commencement list will also be sent a notice to
comply. If an unlisted lot has unmitigated weeds and refuse, that lot can be scheduled
for a separate public hearing to allow the County to abate the lot this year and assess
fees for cost recovery. The third and final step in the process will occur on August 3,
2026, with the Public Hearing for a list of properties to be sent to the County Property
Tax Assessor who will then place any fees on the next property tax bill as an
assessment.
Page 219 of 267
8.1.
Attachments:
1. Resolution
2. 2026 Commencement Report
Page 220 of 267
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY ORDERING THE FIRE CHIEF TO ABATE THE
NUISANCE ARISING OUT OF WEEDS GROWING AND REFUSE
ACCUMULATING UPON PROPERTY IN THE CITY OF
GILROY, PURSUANT TO SECTION 12.51 OF THE GILROY
CITY CODE
WHEREAS, pursuant to Article III of Chapter 12 of the Gilroy City Code, on February
9, 2026, the City Council adopted Resolution No. 2026-06 declaring that weeds growing and
refuse accumulating in the City of Gilroy constitute public nuisances; and
WHEREAS, the Chief of the Fire Department of the City of Gilroy has caused notice of
the adoption of Resolution No. 2026-06 and notice of a public hearing on the proposed order to
abate said nuisances to be given to all of the affected property owners at their stated mailing
addresses on the latest tax assessor’s roll, and has also caused notice to be given by posting and
publication in the manner and form provided in Sections 12.48, 12.49 and 12.53 of the Gilroy
City Code; and
WHEREAS, said public hearing was duly held on April 20, 2026, pursuant to said
resolution in the time and manner required by law, and any objections raised to the proposed
destruction or removal of said weeds and refuse were duly considered by the City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS
FOLLOWS:
1. That the Chief of the Fire Department is hereby ordered to abate the nuisances on
the properties described in Exhibit “A” attached hereto, or cause the sameto be abated, by having
refuse removed and weeds destroyed and/or removed by cutting, discing, chemical spraying or any other
method as may be determined by the Chief of the Fire Department or his authorized Contractor. Such
abatement shall be performed before May 15, 2026.
2. That any property owner shall have the right to destroy and/or remove weeds
growing and refuse accumulating on his property or have the same destroyed or removed at their
expense prior to the arrival of the Chief of the Fire Department or his authorized representatives
or contractors to remove them. Any property found with weeds after May 15, 2026, shall be
subject to the costs of further inspection and /or abatement by the City or the County and its
authorized contractor. Sites found after such date that constitute a fire hazard shall also be
subject to administrative citation.
3. That the Chief of the Fire Department or his authorized contractors (County) shall
keep an account of the costs of destroying and/or removing said weeds and refuse and embody
such account in a report and assessment list to be presented to the City Council and filed with the
City Clerk. Such report shall refer to and sufficiently describe each separate lot or parcel of land
Page 221 of 267
Resolution No. 2026-XX
Weed Abatement Resolution
City Council Regular Meeting | April 20, 2026
Page 2 of 3
and, for each, shall state the costs of destroying or removing weeds, removing refuse, or both, and the
costs which are proposed to be assessed against the lot or parcel.
PASSED AND ADOPTED this 20th day of April 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 222 of 267
Resolution No. 2026-XX
Weed Abatement Resolution
City Council Regular Meeting | April 20, 2026
Page 3 of 3
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, April 20, 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 223 of 267
Situs APNCITY/STATE2026 WEED ABATEMENT PROGRAMCITY OF GILROYCOMMENCEMENT REPORTExhibit AGOLDEN OAKS INVESTMENT P.O. BOX 616 AROMAS CA 95004VERBENADR783-03-0701SUNSET HILLS DEVELOPMENT LLC 575 SOUTHSIDE DR STE C GILROY CA 950208351WINTERCT783-03-0772CLAYTON JOHNSON ENTERPRISES 650 B FREMONT AVENUE #344LOS ALTOS CA 940248341WINTERCT783-03-0813HOEY RANCH COMPANY 2485 HECKER PASS HWY GILROY CA 95020-8802HECKER PASS783-04-0324YANG, DI P 2478 N STEVENS AVE ROSEMEAD CA 91770-2947820SUNRISEDR783-20-0495ROSS, RICHARD JOHN III 1885 HOLLYHOCK LN GILROY CA 95020-00001885HOLLYHOCKLN783-45-0146SEVILLA, JERRY M AND CUNANAN , PO BOX 5175 ARAMCO MC DHAHRAN SAUDI 313111920MANTELLIDR783-45-0167ENTERPRISE REI 8 LLC 10440 S DE ANZA BLVD STE CUPERTINO CA 95014HOLLYHOCKLN783-45-0448BHAGAVAN,l KISHEN TRUSTEE 1240 MONTE VERDE CT LOS ALTOS CA 940242280CORAL BELLCT783-46-0269LE, ANH 682 KAWEAH AVE CLOVIS CA 93619STRAWBERRYLN783-46-07910ENTERPRISE REI 8 LLC 24168 BIG BASIN WY SARATOGA CA 95070SUNFLOWERCL783-47-00311PALMER, MARY L 1463 PHEASANT DR GILROY CA 95020-82191463PHEASANTDR783-50-05812VARGAS, ANABEL AND GOMEZ , 1355 ST FRANCIS ST REDWOOD CITY CA 940618745WILD IRISDR783-52-03213TORRES, ALICIA S 1350 PEREGRINE DR GILROY CA 95020-00001350PEREGRINEDR783-55-02114AYALA, DANIEL J AND ELIZABETH L 9246 DOVE CT GILROY CA 95020-00009246DOVECT783-57-00415CODIGA, RICHARD AND SCOTT- 9231 N EGRET CT GILROY CA 95020-00009231EGRETNCT783-58-04416ISSAKHANI, MEDIKO AND ROBERT 606 ALTINO BLVD SAN JOSE CA 951362363BANYANST783-64-02917GHARIBADEH, RAMSIN 3344 MEADOWLANDS LN SAN JOSE CA 95135-16242333BANYANST783-64-03218KARBALAEINEMATMOEINI, 2121 CRUDEN BAY WAY GILROY CA 95020-00002354BANYANST783-65-02219HU KAI AND CEN YINGYING 9141 GUNNERA LN GILROY CA 950209141GUNNERALN783-65-02320NGUYEN, HENRY H ET AL6971 SPUMANTE WAY GILROY CA 95020-00001820CAROBCT783-72-01721OPINSKI, ROSE 2626 FALLBROOK DR MERCED CA 953401810CAROBCT783-72-01822SANDHU, SUKHWINDER 39463 GALLAUDET DR UNIT FREMONT CA 945389145TEA TREEWY783-72-02023ATLLURI, SASI K AND SURAPANENI , 1923 Saint Andrews Circle Gilroy CA 95020-30089035TEA TREEWY783-72-02524Page 1Santa Clara County Weed Abatement Program24 records of 118Page 224 of 267
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 225 of 267
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 226 of 267
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 227 of 267
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 228 of 267
8.2.
City of Gilroy
STAFF REPORT
Agenda Item Title: Amend Chapter 15, Section 15.11 of the Gilroy City Code by
Adding Reference to California Vehicle Code Section 22358 et
seq. Allowing the City Council to Reduce Prima Facie Speed
Limits in School Zones from 25 mph to 15 mph or 20 mph per
Assembly Bill 382
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: John Doughty, Public Works Director
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
1. Conduct a Public Hearing;
2. Introduce and waive the first reading of the Ordinance amending Chapter 15,
Section 15.11 of the Gilroy City Code adding reference to California Vehicle
Code Section 22358 et seq. allowing the City Council to reduce prima facie
speed limits in school zones from 25 mph to 15 mph or 20 mph per Assembly Bill
382;
3. Direct staff to place the Ordinance for adoption at the May 18, 2026 meeting; and
4. Adopt a resolution approving a budget amendment adding $150,000 from Fund
220 (Vehicle Registration Fee) to Capital Project Number 801120 (Citywide
Safety Improvements).
EXECUTIVE SUMMARY
Assembly Bill 382 was adopted by the California Legislature and signed into law by
Governor Newsom in late 2025 and became effective on January 1, 2026. AB 382
provides the City Council the opportunity to reduce speed limits in school zones from 25
Page 229 of 267
8.2.
miles per hour to 15 or 20 miles per hour in advance of a January 1, 2031 mandate. In
light of the recent tragedy near Las Animas Elementary School and consistent with the
City Council's commitment to the community, staff is seeking approval of a minor City
Code amendment to facilitate the potential lowering of school zone speed limits.
BACKGROUND
Until recently, California law established a prima facie speed limit of 25 miles per hour
(mph) when approaching or passing a school building or school grounds that are
contiguous to or not separated from a highway. The City was permitted to reduce this
limit only when supported by an engineering and traffic survey.
Assembly Bill (AB) 382, signed into law on October 10, 2025, and effective as of
January 1, 2026 significantly revises these rules. The bill authorizes local agencies, by
ordinance or resolution, to establish reduced school zone speed limits without requiring
an engineering and traffic survey. AB 382 standardizes and lowers the default statewide
school-zone speed limit (to 20 mph), expands flexibility for localities (15 mph or 25 mph
buffer zones), and clarifies “school zone” boundaries and “children present” rules –
simplifying and strengthening pedestrian safety protections around schools.
A "school zone," was formerly defined as “an area of roadway within 500 feet of school
grounds in any direction, unless otherwise posted, marked with appropriate signs giving
notice of the area” has been simplified by AB382. A “school zone” is now defined as any
area within 500 feet of school grounds in any direction, unless otherwise posted.
Assembly Bill 382 amended section 22358.4 of the California Vehicle Code as of
January 1, 2026, to allow local governments to establish a 15 miles per hour (mph)
prima facie speed limit by local resolution in: qualifying school zones in a residence
district; on a two-lane roadway; and with a posted speed limit of 30 mph or slower.
Assembly Bill 382 also amended section 22352.5 of the California Vehicle Code as of
January 1, 2026, to allow local governments to reduce speed limits in school zones to
20 miles per hour (mph). AB 382 defines “school zone” as any segment of highway
within 500 feet of a school’s grounds (unless otherwise posted), giving clearer and
uniform spatial boundaries.
Effective January 1, 2031, or when approved by resolution or ordinance by a local
government before that date, the standard prima facie speed limit of 25 mph when
school children are present, should now be posted at 20 mph when accompanied by
one of the following signs: (1) when school children are present, (2) when beacons are
flashing, or (3) during designated hours around school times.
ANALYSIS
Page 230 of 267
8.2.
Section 15.11 of the Gilroy Municipal Code describes City Council procedures for
establishing speed limits on City streets. Notably, except as provided specifically by the
California Vehicle Code, speed limits can only be changed by Council resolution based
upon an engineering and traffic survey. Assembly Bill 382 created a new vehicle code
section 22358.4 which is not specifically referenced in Section 15.11. The purpose of
this Municipal Code Amendment is to add specific reference to Vehicle Code Section
22358 et seq., which in turn provides the City Council authority to set lower prima facie
speed limits in school zones.
ALTERNATIVES
The City Council could choose not to amend the City Code. This alternative is not
recommended as it would delay consideration of reducing speed limits. This action,
combined with new signage and parent, driver, and student education, could reduce the
potential for future accidents near schools.
FISCAL IMPACT/FUNDING SOURCE
Staff is seeking $150,000 from Fund 220 (Vehicle Registration Fee) to fund consultant
assistance, signage, and associated yet-to-be-determined school safety improvements.
PUBLIC OUTREACH
N/A
NEXT STEPS
The Public Works Department is planning to return to the City Council on June 15,
2026, with a resolution that, if approved, would begin the process of reducing speed
limits in public school zones from 25 mph to 20 mph and/or 15 mph. Public Works is in
the process of soliciting consultants to evaluate all Gilroy public school sites to
determine appropriate prima facie speed limits for those schools per Assembly Bill 382.
Staff will also be assessing signage needs to implement. Speed limit changes only
become effective upon the placement of new signs reflecting revised speed limits. Staff
is committed to completing sign replacements prior to the first day of school (August
19).
Following the public school assessment and implementation, staff will initiate evaluation
of private school sites.
Attachments:
1. Ordinance For School Speed Limit Reductions
Page 231 of 267
8.2.
2. Resolution Budget Amendment--School Safety Traffic
Page 232 of 267
ORDINANCE 2026-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GILROY AMENDING CHAPTER 15, SECTION 15.11 OF THE
GILROY CITY CODE BY ADDING REFERENCE TO NEW
VEHICLE CODE SECTION 22358.4 WHICH PERMITS THE
LOWERING OF SPEED LIMITS UNDER CERTAIN
CIRCUMSTANCES IN SCHOOL ZONES
WHEREAS, when approaching or passing a school building or school grounds
that are contiguous to or not separated from a highway. Local authorities were permitted to
reduce this limit only when supported by an engineering and traffic survey; and
WHEREAS, Assembly Bill (AB) 382, signed into law on October 10, 2025, and
effective as of January 1, 2026 significantly revises these rules. The bill authorizes local
agencies, by ordinance or resolution, to establish reduced school zone speed limits without
requiring an engineering and traffic survey, and
WHEREAS, Assembly Bill 382 standardizes and lowers the default statewide
school-zone speed limit (to 20 mph), expands flexibility for localities (15 mph or 25 mph
buffer zones), and clarifies “school zone” boundaries and “children present” rules –
simplifying and strengthening pedestrian safety protections around schools; and
WHEREAS, Assembly Bill 382 amended section 22358.4 of the California
Vehicle Code as of January 1, 2026, to allow local governments to establish a 15 miles
per hour (mph) prima facie speed limit by local resolution in: qualifying school zones in a
residence district; on a two-lane roadway; and with a posted speed limit of 30 mph or
slower; and
WHEREAS, Section 15.11 of the Gilroy City Code describes City Council
procedures for establishing speed limits on City streets. Notably, except as provided
specifically by the California Vehicle Code, speed limits can only be changed by Council
resolution based upon an engineering and traffic analysis.
WHEREAS, Section 15.11 of the Gilroy City Code does not include specific
reference to vehicle code section 22358 et. seq.; and
WHEREAS, absent the specific reference, the City Council cannot apply new vehicle
code section 22358.4 and set lower prima facie speed limit of 15 mph under Assembly
Bill 382.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL HEREBY
AMENDS THE GILROY CITY CODE AS FOLLOWS:
“15.11 Speed limits—on designated streets.
Upon recommendation of the city engineer or chief of police, and when based on an engineering
and traffic survey, the city council may by resolution determine and declare speed limits for
designated streets different from those otherwise applicable under Vehicle Code sections 22349,
Page 233 of 267
Ordinance No. 2026-XX
Ordinance Amending GCC Section 15.11
City Council Regular Meeting | April 20, 2026
Page 2 of 3
22352 and 22358 et seq. Each special speed limit shall be effective, and no person shall operate a
vehicle in excess thereof, when appropriate signs designating the applicable speed are erected and
maintained upon each street or portion thereof where each special speed limit is applicable.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting
duly held on the 20th day of April 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 234 of 267
Ordinance No. 2026-XX
Ordinance Amending GCC Section 15.11
City Council Regular Meeting | April 20, 2026
Page 3 of 3
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance 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 Council held on Monday, Date, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this Tuesday, XXXXX
Kim Mancera
City Clerk of the City of Gilroy
Page 235 of 267
RESOLUTION 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY AMENDING THE FY 26 CAPITAL BUDGET TO
FUND TRAFFIC SAFETY IMPROVEMENTS AT ALL
GILROY PUBLIC SCHOOLS
WHEREAS, City Staff prepared and submitted to the City Council the FY 2024-2028
Capital Improvement Program (CIP); and
WHEREAS, the CIP was subsequently amended to include Project No. 801120 which
provides for installation of traffic safety improvements citywide; and
WHEREAS, the City Administrator prepared and submitted to the City Council a capital
budget for the City of Gilroy for FY2025-26 and FY2026-27, 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
ordinance to implement Assembly Bill (AB) 382 permitting prima facie reductions in speed limits
in school zones; and
WHEREAS, staff is seeking a budget amendment to cover costs associated with
implementing speed limit reductions under AB 382.
NOW, THEREFORE, BE IT RESOLVED THAT the expenditure appropriations for
Fiscal Year 2025-2026 in Fund 220 (Vehicle Registration Fee) shall be increased by
$150,000 for school traffic safety improvements.
PASSED AND ADOPTED This 20th day of April 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 236 of 267
9.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Receive an Update on Emergency Medical Dispatch (EMD)
Services Cost Escalation and Service Delivery Evaluation,
and Approval of a Two-year Agreement with the Santa Clara
County Communications Department for EMD services, in the
Amount of $170,256 for Fiscal Year 2026-27 (FY27) and
$329,803 in FY28
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Fire
Submitted by: Jennifer Fortino, Management Analyst
Prepared by: Rob Fleeup, Fire Chief
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
1. Receive an update; and
2. Approve a two-year agreement with Santa Clara County Communications
Department for Emergency Medical Dispatch services, in the amount of
$170,256 in FY 27 and $329,803 in FY 28, and authorize the City Administrator
to execute the contract and associated documents.
EXECUTIVE SUMMARY
This report is to update the City Council on recent developments related to Emergency
Medical Dispatch (EMD) services for the City of Gilroy. EMD is currently provided
through a contractual agreement with the Santa Clara County Communications
Department (County Comm). Recent changes to the County’s cost allocation
methodology have resulted in a significant increase in cost for these services.
In March 2025, staff informed the City Council that the County planned to significantly
Page 237 of 267
9.1.
increase the cost of EMD services. Through discussions, the County agreed to a
phased implementation approach to transition toward full cost recovery based on the
new cost allocation model. Through this revision to the cost analysis, the estimated full
cost of providing EMD services to Gilroy is approximately $329,802 annually, subject to
adjustments based on call volume and operational costs.
Under this approach, the City’s EMD costs increased from $100,878 in FY 2026 to
$170,256 in FY 2027. Beginning in FY 2028, the County anticipates implementing a full
cost increase based on their estimated operational cost of providing EMD services to
the City.
Staff continues to evaluate potential alternatives, including the feasibility of providing
EMD services through the City’s Emergency Communications Center (ECC). This
evaluation is ongoing and requires coordination between the Fire Department, Police
Department, and ECC staff.
BACKGROUND
Emergency Medical Dispatch (EMD) is a structured system used by trained dispatchers
to process medical emergency calls. Dispatchers use protocols to determine the nature
and priority of medical emergencies, dispatch the appropriate emergency resources,
and provide life-saving pre-arrival medical instructions to callers until responders arrive
on scene.
Examples of these instructions include CPR guidance, bleeding control, and childbirth
assistance.
EMD is widely recognized as an industry standard and is a key component of modern
emergency medical service systems.
Since 2003, the City of Gilroy has contracted with County Comm to provide EMD
services. Under this model, Gilroy’s ECC receives 911 calls and transfers medical calls
to County Comm for medical triage and dispatch protocol processing.
Historically, this arrangement has provided a reliable and cost-effective solution for the
City.
ANALYSIS
The projected increase in EMD service costs represents a significant change in the
City’s long-standing dispatch service model. As a result, the Fire and Police
Departments have begun evaluating whether to continue contracting with County Comm
or transition EMD services to the City’s ECC, and which would be the most sustainable
long-term solution.
Page 238 of 267
9.1.
Providing EMD services internally would require several operational changes, including:
• Dispatcher certification and training for EMD accreditation
• Ongoing certification maintenance and quality assurance programs
• Implementation of approved dispatch protocols and software systems
• Potential staffing adjustments to maintain operational coverage
• Integration with existing dispatch technology and CAD systems
Fire Department staff have been coordinating with the City’s ECC to determine what
infrastructure, staffing levels, and training timelines would be necessary to implement
EMD operations internally.
Staff believe it is important to complete this analysis carefully to ensure that any
potential operational changes maintain the high level of service expected by the
community. Therefore, staff recommends contracting with County Comm for two (2)
additional fiscal years to allow more time to fully evaluate EMD operations.
ALTERNATIVES
The Council can choose not to approve the agreement with the County and bring the
EMD services in-house. This is not recommended due to the significant investment
required to be ready by July 1, 2026.
FISCAL IMPACT/FUNDING SOURCE
The FY 2027 EMD cost is estimated to be $170,256, and the FY 2028 EMD cost is
projected to increase to approximately $329,802. These increases represent a phased
increase towards the County’s full cost recovery model. These estimated costs are
subject to adjustments based on dispatch activity and operational costs. County Comm
reviews total calls at the end of each fiscal year and sends the City a true-up invoice if
actuals exceed the initial budget.
The FY 2027 Fire Department 1003500 general fund budget includes $88,410 for EMD
services, which leaves the Fire Department short $82,000 for EMD services in FY 2027.
The Finance Department will bring forward a comprehensive budget amendment related
to the County services impact as part of the upcoming quarterly budget update. This
amendment will include the increase to the EMD services agreement.
Fire Department staff will include the FY 2028 EMD service cost in the upcoming
biannual budget process.
PUBLIC OUTREACH
This agenda item was included on the publicly posted agenda for this meeting.
Page 239 of 267
9.1.
Coordination and discussions have occurred between the Gilroy Fire Department, Gilroy
Police Department, the City’s Emergency Communications Center, and the Santa Clara
County Communications Department regarding service delivery options and cost
impacts.
NEXT STEPS
Staff will continue to evaluate service delivery alternatives in coordination with the
Police Department and the ECC.
Upon completion of the operational feasibility review, staff will return to City Council with
additional analysis and recommendations.
Attachments:
1. SCC County and City of Gilroy EMD and Tech Services Agreement DRAFT
03.25.26
Page 240 of 267
Agreement between the County of Santa Clara Page 1 of 7
and City of Gilroy for EMD and Technical Services
AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA AND
THE CITY OF GILROY FOR EMERGENCY MEDICAL DISPATCH
AND COMMUNICATIONS TECHNICAL SERVICES
This AGREEMENT (“Agreement”) is entered into by and between the County of Santa Clara
(“COUNTY”) and the City of Gilroy (“CITY”), collectively referred to herein as the “Parties” and
individually as a “Party.”
RECITALS
The following recitals constitute a substantive portion of the Agreement.
WHEREAS, the CITY wishes to contract with a provider of public safety communications
services for the provision of emergency medical dispatch (EMD) and communications technical
services on its behalf that are critical to the protection of the lives and property of the residents and
employees of the CITY; and,
WHEREAS, the COUNTY is qualified and prepared to provide effective, timely, and
efficient EMD and communications technical services for the CITY.
NOW, THEREFORE, the Parties hereto agree as follows:
Article 1. Nature of Services
1.1 Scope of Services
The service obligations of the Parties are described in Exhibit A “Emergency Medical
Dispatch Process & Procedural Requirements” and Exhibit B “Communications Technical
Services Scope of Work”, which are attached and incorporated herein by this reference.
Article 2. Compensation
2.1 Amount of Payment
The CITY shall compensate the COUNTY for the services provided under this Agreement in
accordance with the cost methodology set forth in Exhibit C “EMD Compensation for
Services, and Exhibit D “Communications Technical Services Compensation,” which are
attached and incorporated into this Agreement.
2.2 Payment Terms
The CITY shall pay the COUNTY within thirty (30) calendar days of receipt of billing for
services.
Article 3. Term and Termination
Page 241 of 267
Agreement between the County of Santa Clara Page 2 of 7
and City of Gilroy for EMD and Technical Services
3.1 Term of Agreement
(a) This Agreement is effective from July 1, 2026, through June 30, 2028, unless terminated
earlier in accordance with Section 3.2.
3.2 Termination
(a) Termination for Cause
Either Party may terminate this Agreement for cause upon written notice to the other in
accordance with Section 6.1 of this Agreement. For purposes of this Agreement, cause
includes, but is not limited to, an uncured material breach of this Agreement or a violation
of any applicable laws. Such notice will specify the reason for termination and will
indicate the effective date of the termination.
(b) Opportunity to Cure
(1) The non-breaching Party will give written notice of a material breach to the breaching
Party, specifying the breach.
(2) The breaching Party will not be deemed in default of this Agreement and the
nonbreaching Party will not institute proceedings or exercise any remedies against the
breaching Party unless the breach has not been cured, corrected, or remedied within:
(A) 15 business days after notice of the breach is provided; or
(B) Upon mutual agreement of the Parties, within a longer period as may be
reasonably required to cure, correct, or remedy the breach, provided the breaching
Party has commenced to cure, correct, or remedy the breach within 15 business
days after notice is provided and diligently and continuously pursues such cure,
correction, or remedy.
(c) Termination for Convenience
Either Party may terminate this Agreement without cause by giving the other Party ninety
(90) calendar days written notice.
(d) Compensation in the Event of Termination
In the event of termination, the COUNTY shall be entitled to compensation due for
services performed prior to the effective date of the termination as provided herein.
Article 4. Liabilities and Indemnification
4.1 Mutual Indemnification
In lieu of and notwithstanding the pro-rata risk allocation that might otherwise be imposed
Page 242 of 267
Agreement between the County of Santa Clara Page 3 of 7
and City of Gilroy for EMD and Technical Services
between the Parties pursuant to Government Code Section 895.6, the Parties agree that all
losses or liabilities incurred by a Party shall not be shared pro-rata, but instead the COUNTY
and the CITY agree that pursuant to Government Code Section 895.4, each of the Parties
hereto shall fully indemnify, defend with counsel acceptable to the non-indemnifying Party,
whose approval shall not be unreasonably withheld, and hold each of the other Parties, their
officers, board members, employees and agents, harmless from any claim, expense or cost,
damage or liability imposed for injury (as defined by Government Code Section 810.8)
occurring by reason of the negligent acts or omissions or willful misconduct of the
indemnifying Party, its officers, board members, employees or agents, under or in connection
with or arising out of any work, authority or jurisdiction delegated to such Party under this
Agreement. No Party, nor any officer, board member, employee or agent thereof shall be
responsible for any damage or liability occurring wholly by reason of the negligent acts or
omissions or willful misconduct of the other Party hereto, its officers, board members,
employees, or agents, under or in connection with or arising out of any work, authority or
jurisdiction delegated to such other Party under this Agreement.
Article 5. Dispute Resolution
In the event of any dispute between the Parties arising from or relating to this Agreement, the
Parties will attempt to resolve the dispute initially by informal means. Upon the request of
either Party, the contract administrators of each Party will meet to discuss the dispute, will
exchange any information that they mutually agree is relevant to the issues in dispute and will
use all reasonable efforts to resolve the dispute without the need for further proceedings.
Article 6. Miscellaneous
6.1 Notice
All notices required by this Agreement will be deemed given when in writing and delivered
personally, electronically via email, or deposited in the United States mail, postage prepaid,
return receipt requested, addressed to the other Party at the address set forth below or at such
other address as the Party may designate in writing:
To the CITY:
Attn: Fire Chief
City of Gilroy
7070 Chestnut Street
Gilroy, CA 95020
To the COUNTY:
Attn: Communications Director
County of Santa Clara
Communications Department
2700 Carol Drive
San Jose, CA 95125
Page 243 of 267
Agreement between the County of Santa Clara Page 4 of 7
and City of Gilroy for EMD and Technical Services
6.2 Compliance and Nondiscrimination
The Parties will comply with all applicable Federal, State, and local laws and regulations.
Such laws include but are not limited to the following: Title VII of the Civil Rights Act of
1964 as amended, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973
(Sections 503 and 504), the California Fair Employment and Housing Act (Government Code
sections 12900 et seq.), and California Labor Code sections 1101 and 1102. The Parties will
not discriminate against any subcontractor, employee, or applicant for employment because of
age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental
disability, physical disability, medical condition, political beliefs, organizational affiliations,
or marital status in the recruitment, selection for training including apprenticeship, hiring,
employment, utilization, promotion, layoff, rates of pay or other forms of compensation. Nor
will the Parties discriminate in the provision of services provided under this Agreement
because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation,
mental disability, physical disability, medical condition, political beliefs, organizational
affiliations, or marital status.
6.3 Relationship of Parties; Independent Contractor
COUNTY will perform all work and services described in this Agreement as an independent
contractor and not as an officer, agent, servant, or employee of the CITY. None of the
provisions of this Agreement is intended to create, nor shall be deemed or construed to create
any relationship between the Parties other than that of independent Parties contracting with
each other for purpose of effecting the provisions of this Agreement. The Parties are not and
will not be construed to be in a relationship of a joint venture, partnership, or employer-
employee. Neither Party has the authority to make any statements, representations, or
commitments of any kind on behalf of the other Party or to use the name of the other Party in
any publications or advertisements, except with the written consent of the other Party or as is
explicitly provided in this Agreement.
6.4 Governing Law, Jurisdiction and Venue
This Agreement shall be construed and interpreted according to the laws of the State of
California, excluding its conflict of law principles. Proper venue for legal actions shall be
exclusively vested in state court in Santa Clara County. The Parties agree that subject matter
and personal jurisdiction are proper in state court in Santa Clara County and waive all venue
objections.
6.5 Assignment
No assignment of this Agreement or of the rights and obligations hereunder shall be valid
without the prior written consent of the other Party.
6.6 Entire Agreement
This Agreement and its Appendices (if any) constitute the final, complete and exclusive
statement of the terms of the agreement between the parties. It incorporates and supersedes all
Page 244 of 267
Agreement between the County of Santa Clara Page 5 of 7
and City of Gilroy for EMD and Technical Services
the agreements, covenants and understandings between the parties concerning the subject
matter hereof, and all such agreements, covenants and understandings have been merged into
this Agreement. No prior or contemporaneous agreement or understanding, verbal or
otherwise, of the parties or their agents shall be valid or enforceable unless embodied in this
Agreement.
6.7 Amendments
This Agreement may only be amended by a written instrument signed by the Parties.
6.8 Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be deemed
to be an original, but all of which together shall constitute one and the same instrument.
6.9 Severability
If any provision of this Agreement is found by a court of competent jurisdiction to be void,
invalid or unenforceable, the same will either be reformed to comply with applicable law or
stricken if not so conformable, so as not to affect the validity or enforceability of this
Agreement.
6.10 Waiver
No delay or failure to require performance of any provision of this Agreement shall constitute
a waiver of that provision as to that or any other instance. Any waiver granted by a Party shall
be in writing and shall apply to the specific instance expressly stated.
6.11 Survival
All provisions of this Agreement allocating liability between the CITY and the COUNTY,
payment obligations, and the duty to defend, indemnify and hold harmless shall survive the
termination of this Agreement.
6.12 Integration and Order of Precedence
This Agreement, including all Exhibits, represents the entire and integrated contract between
the CITY and the COUNTY and supersedes all prior negotiations, representations, or
agreements, either written or oral. In the event of a conflict between the provisions of the main
body of the Agreement and its Exhibits, the provisions of the main body shall control. In the
event of a conflict between Exhibits A through D, the provisions of Exhibits A and C shall
control.
6.13 Time of the Essence
The Parties acknowledge that time is of the essence for this Agreement. Either Party’s failure
to complete any of the obligations outlined herein during the term of the Agreement shall be
Page 245 of 267
Agreement between the County of Santa Clara Page 6 of 7
and City of Gilroy for EMD and Technical Services
deemed a breach of the Agreement.
6.14 Contract Execution
Unless otherwise prohibited by law or COUNTY policy, the Parties agree that an electronic
copy of a signed contract, or an electronically signed contract, has the same force and legal
effect as a contract executed with an original ink signature. The term “electronic copy of a
signed contract” refers to a transmission by facsimile, electronic mail, or other electronic
means of a copy of an original signed contract in a portable document format. The term
“electronically signed contract” means a contract that is executed by applying an electronic
signature using technology approved by the COUNTY.
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
Page 246 of 267
Agreement between the County of Santa Clara Page 7 of 7
and City of Gilroy for EMD and Technical Services
IN WITNESS WHEREOF, the COUNTY and the CITY have caused this Agreement to be executed
by their duly authorized representatives effective July 1, 2026.
SIGNATURES:
COUNTY OF SANTA CLARA CITY OF GILROY
__________________________ ________ __________________________ ________
OTTO LEE, PRESIDENT Date MATT MORLEY Date
Board of Supervisors City Administrator
Signed and certified that a copy of this
document has been delivered by electronic
or other means to the President, Board of
Supervisors.
ATTEST: ATTEST:
__________________________ _________________________
CURTIS BOONE KIM MANCERA
Clerk of the Board of Supervisors City Clerk
APPROVED AS TO FORM AND LEGALITY: APPROVED AS TO FORM:
__________________________ __________________________
STEPHANIE M. JACKSON ANDY FABER
Deputy County Counsel City Attorney
Exhibits to this Agreement:
Exhibit A - Emergency Medical Dispatch Process & Procedural Requirements
Exhibit B - Communications Technical Services Scope of Work
Exhibit C - EMD Compensation for Services
Exhibit D - Communications Technical Services Compensation
Page 247 of 267
Exhibit A of Agreement between the County of Santa Clara Page 1 of 2
and City of Gilroy for EMD and Technical Services
EXHIBIT A
EMERGENCY MEDICAL DISPATCH PROCESS & PROCEDURAL REQUIREMENTS
To ensure the safe and efficient transfer of callers requiring Emergency Medical Dispatch (EMD)
services from Gilroy Communications to County Communications, Gilroy Communications and
County Communications agree to process 9-1-1 and seven-digit calls using the following process and
procedural requirements:
1. Gilroy Communications will use a “3-way” telephone call transfer process to route callers to
County Communications for EMD services. This process will:
o Use a “one-button” method to minimize transfer time.
o Result in Gilroy Communications Dispatchers:
• Using a scripted transfer statement prior to caller transfer; and
• Remaining on the line silently until the provision of a Medical Priority Dispatch
System (MPDS) “Determinant” or until call demand requires them to disconnect the
call.
2. County Communications will provide Gilroy Communications with continuous (24 hours per
day, 7 days per week) EMD services using International Academy of Emergency Dispatch
(IAED) certified Emergency Medical Dispatchers. All dispatchers providing EMD services
will use the most current version of the MPDS as determined by the IAED.
3. County Communications will use IAED certified Emergency Medical Dispatch Quality
(EMD-Q) reviewers to score and calculate protocol compliance reports. The number and
method of cases for review will be in accordance with IAED Accreditation requirements.
4. County Communications agrees to participate in periodic “special case” reviews, in the event
they are requested by Gilroy Communications.
5. County Communications and Gilroy Communications agree that the determination “EMD Is
Unavailable” will occur following a “three-ring” wait time for EMD call transfers to County
Communications for 9-1-1 or designated seven-digit numbers.
6. County Communications and Gilroy Communications agree to work together to develop or
revise policies and procedures for the receipt and management of callers requiring EMD
services following written request by either agency.
7. County Communications will include Gilroy Communications and Gilroy Fire Department
personnel in quality improvement feedback processes and the Medical Dispatch Review
Committee used to maintain and improve EMD compliance to protocol.
County Communications will also provide quarterly protocol compliance reports reporting:
• Percentage of cases that are High Compliance
• Percentage of cases that are Compliant
Page 248 of 267
Exhibit A of Agreement between the County of Santa Clara Page 2 of 2
and City of Gilroy for EMD and Technical Services
• Percentage of cases that are Partial Compliance
• Percentage of cases that are Low Compliance
• Percentage of cases that are Non-Compliant
8. County Communication will maintain IAED Accredited Center of Excellence (ACE)
compliance levels, which are currently:
• Partial Compliance – 10% or less of cases
• Low Compliance – 10% or less of cases
• Non-Compliant – 7% or less of cases
9. County Communications will provide eight updated Field Responder Guides (FRG) license
access codes for the “MobileFRG” to Gilroy Fire Department when software revisions occur.
Page 249 of 267
Exhibit B of Agreement between the County of Santa Clara Page 1 of 3
and City of Gilroy for EMD and Technical Services
EXHIBIT B
COMMUNICATIONS TECHNICAL SERVICES SCOPE OF WORK
The City of Gilroy (CITY) two-way radio communications system (hereinafter “Radio System”) is
currently comprised of: A single multiple site simulcast transmitter that is combined with a voted
receiver system and commonly referred to and identifiable as the South County TAC channel
(hereinafter “Simulcast System”), two single radio transmitter site radio systems, that are also using
utilize multiple site voted receiver technology, supporting mobile and portable communications for
public safety radio channels PD-1 and FD-1, a single site repeated radio channel PD-2,
communications support for simplex radio channels PD-3 and FD-2, and three fire station ringdown
alerting systems all in operation within the CITY.
The CITY has requested the County of Santa Clara Communications Department (COUNTY) to
provide professional engineering and technical support services as required to assist in the design,
licensing, procurement, implementation, maintenance, repair, and future upgrades to the Radio
System, based on the Communications Department’s proven performance, experience, specially
trained and competent workforce that will perform the special services as required by this Agreement.
Under this Agreement, the COUNTY shall provide the CITY the following services upon the CITY’S
request:
1. Design and Procurement:
COUNTY will assist CITY with future Radio System design, upgrades and procurement of
equipment and services compatible with other similar radio systems currently maintained and
operated by the COUNTY.
Quotations for design, engineering, initial implementation, and future upgrade services will
be presented to the CITY in writing for approval prior to initiation of work. Cost estimates
for COUNTY services, including any sub-contractor work if required, will be included in
each quotation for the CITY’s approval prior to initiation of work.
The CITY is responsible for the cost of and contracting for system procurement.
Examples of major components of the Radio System to be purchased under this agreement
include but are not limited to:
a. Digital-capable Simulcast VHF Radio Transmitters and Receivers
b. Antennas, Cables, Racks, Combining Equipment, and Grounding systems.
c. DC Power Supply System
NOTE: Due to the age of the CITY’s communications infrastructure, the COUNTY will
repair and maintain the equipment until parts are no longer available or supported by
the manufacturer. Services for all legacy equipment will be performed upon request
only.
Page 250 of 267
Exhibit B of Agreement between the County of Santa Clara Page 2 of 3
and City of Gilroy for EMD and Technical Services
2. FCC Licensing:
The COUNTY will assist the CITY with FCC licensing requirements.
3. Installation, Programming and System Optimization:
COUNTY will provide the CITY installation, programming, and system optimization services
necessary to implement upgrades and/or enhancements to CITY’s Radio System. County will
provide annually required preventative maintenance, firmware upgrades, and programming to
ensure the radios are operating within FCC requirement and manufacturer specifications. The
estimated annual hours for this work are 236 hours.
4. Maintenance, Repair, Enhancements and Modifications to Radio System:
COUNTY will provide maintenance, repairs, modifications, and enhancements to CITY
owned Radio System infrastructure equipment charged on a time and material (T&M) cost
recovery basis as defined in Exhibit D. Radio System modifications and enhancements will be
provided by the COUNTY upon written request and quotation approval from CITY.
5. Annual System-wide Maintenance:
COUNTY will perform system-wide performance maintenance (PM) of the CITY’s pre-
existing (legacy) and Radio Systems infrastructure equipment on an annual (approximate 12-
month interval) basis. PM work will include, but not be limited to, alignment of the two-way
radio, microwave, and power plant infrastructure equipment. Fees for PM Service will be
charged on a time and material cost recovery basis as defined in Exhibit D and shall include a
maximum not-to-exceed cost recovery cap of 80 hours annually. Any identified repair work
will be additional and billed separately.
6. Technical Support Services:
COUNTY will provide CITY full-time (24 hours a day, 7 days a week) technical support
services for emergency repairs charged on a time and material cost recovery basis as defined
in Exhibit D.
CITY may also request repairs or service during the COUNTY’S normal business hours from
7:00 am to 3:30 pm by calling the COUNTY Technical Services Division at (408) 977-3222.
Repair or service requests made after normal business hours, on weekends and on holidays
shall be submitted to the COUNTY Watch Commander in Dispatch Operations by calling
(408) 294-4424. Depending on the nature and location of the requested repair or service,
COUNTY technical support staff shall acknowledge receipt of the service request within 30
minutes, and initial field response will occur within 60 minutes of notification. Actual arrival
times on scene will vary based on the location and required travel time.
Current COUNTY performance standards require that public safety radio systems operate 99%
of the time without major system problems and 95% of the time without minor systems
problems. This standard shall be applied to CITY’s Radio System.
7. Subscribers:
COUNTY will provide programing, optimization, and repair of CITY’s 218 Portable, 110
Mobile, and 1 control station radios. These services will be performed during normal
Page 251 of 267
Exhibit B of Agreement between the County of Santa Clara Page 3 of 3
and City of Gilroy for EMD and Technical Services
operating hours to ensure the radios are operating within FCC and manufacturer
specifications.
8. Inspection of Work:
COUNTY shall provide opportunities for CITY, or CITY’s designee to inspect work
performed to ensure quality assurance, and quality control are maintained to CITY’s standards
and to the COUNTY performance standards set out in this Agreement.
Page 252 of 267
Exhibit C of Agreement between the County of Santa Clara Page 1 of 2
and City of Gilroy for EMD and Technical Services
EXHIBIT C
EMD COMPENSATION FOR SERVICES
Emergency Medical Dispatch (EMD) Cost and Billing Methodology
1. The total COUNTY costs for providing dispatching services are allocated to four service areas
(law enforcement, medical, fire, and local government), based on the most recent three-year
average number of events. In the month of March, the annual cost for the upcoming fiscal year
(FY) will be estimated using the process described in this cost methodology.
2. The following is the computation for estimated costs for dispatching services to be provided by the
COUNTY to the CITY in FY 2026-2027:
a. COUNTY will classify costs as follows:
i. Direct Costs: salaries, benefits, and supplies related to Dispatch line staff.
ii. Operations Indirect Costs: costs associated with Dispatch management staff.
iii. Department Indirect Costs: costs associated with executive management and
administrative support staff.
iv. County Indirect Costs: costs associated with County Administration.
b. COUNTY allocates salaries and benefits, other operating expenses, and indirect County
overhead as follows:
i. Salaries & Benefits
Direct $ 23,487,392
Operations Indirect $ 2,898,110
Department Indirect $ 2,601,709
ii. Other Operating Expenses (Supplies, county radio infrastructure maintenance, etc.)
Direct $ 7,142,864
Operations Indirect $ 611,040
Department Indirect $ 948,082
Indirect County Overhead $ 5,491,713
iii. Total Dispatch Cost $ 43,180,910
c. COUNTY allocates all costs to four service areas based on the number of events, averaged
over the most recent three fiscal years, for services provided in each service area.
Service Area # of Events % of Total Support Total Cost
Law Enforcement 150,351 41.2% $ 17,809,158
Medical 181,451 49.8% $ 21,471,212
Fire 24,951 6.9% $ 2,984,450
Local Government 7,618 2.1% $ 916,090
Total Dispatch 364,371 100.0% $ 43,180,910
Page 253 of 267
Exhibit C of Agreement between the County of Santa Clara Page 2 of 2
and City of Gilroy for EMD and Technical Services
d. COUNTY allocates EMD medical costs to agencies/departments based on the number of
events, averaged over the most recent three fiscal years (FY2023-FY2025) for services
provided. Remove County Overhead and General Admin for cities covered by Government
Code 51350.
Medical Agency
# of
Events
% of Medical
Support
Operating Cost County
Overhead
Total Area Cost
Gilroy EMD 3,520 1.94% $364,096 $52,427 $416,523
Cost Adjustment/
Reduction
(34,293) ($52,427) ($86,720)
Gilroy Cost $329,803 $329,803
Contract
reduction
(159,547)
Gilroy
Adjusted Cost
$170,256
All Other
Agencies 177,931 98.06% $18,438,839 $2,650,143 $21,054,689
Total Medical 181,451 100.0% $18,768,642 $2,702,570 $21,471,212
e. FY 2026-2027 the CITY’s adjusted estimate of $170,256 is based on medical cost
7.5% of total using the CITY’s 3 years average EMD events. A contract cost reduction is
added to this cost compensation. The COUNTY will phase in cost increases until year 2 of the
agreement as follows:
3. During the fiscal year, COUNTY shall bill the CITY for EMD dispatching services quarterly based
on the estimated cost. The COUNTY shall notify the CITY of any adjustment prior to billing the
CITY’s final fourth quarterly installment. Billing questions may be directed by email to Accounts
Payable at Accounts.Payable@911.sccgov.org.
4. In the first quarter of the following fiscal year, actual costs will be computed using the
methodology used for cost estimates and update using the previous year’s event count. Any
difference in an increase or decrease cost adjustment will not exceed 5% above or below the
previously billed amount.
Fiscal Year Cost Estimate Percent
2026-27 $ 170,256 7.5%
2027-28 $ 329,803 Estimate will be based on actual cost
Page 254 of 267
Exhibit D of Agreement between the County of Santa Clara Page 1 of 2
and City of Gilroy for EMD and Technical Services
EXHIBIT D
COMMUNICATIONS TECHNICAL SERVICES COMPENSATION
The City of Gilroy (CITY) shall compensate the County of Santa Clara Communications
Department (COUNTY) for goods and services provided in accordance with the payment terms,
conditions and rates set forth in this Exhibit D.
County Communications’ Technical services are billed on a T&M basis as follows:
1. Quotations and Approval:
The COUNTY shall prepare quotations and shall only perform major system installation
work and any future system enhancements following the CITY’s written approval.
Quotations will be based on a not-to-exceed estimated amount, with final charges being
billed at actual costs. Any increase to the original not-to-exceed estimated amount
caused by unforeseen issues must be agreed to in writing by both Parties.
2. System-wide Maintenance:
COUNTY will perform system-wide performance maintenance (PM) of the CITY’s
existing (legacy) radio communication infrastructure system equipment and Microwave
Network on an annual (approximate 12-month interval) basis. PM work will include,
but not be limited to, alignment of the Simulcast (two-way radio) System, Microwave
Network, and 48-volt DC power plant infrastructure equipment. Fees for PM Service
will be charged on a time and material cost recovery basis with a maximum not-to-
exceed cost recovery cap of 80 hours annually. Any repair work identified during the
PM will be additional and billed separately.
3. Engineering and Technical Support:
COUNTY shall provide CITY engineering and technician support as required to
maintain and repair CITY owned equipment as identified through this Agreement based
on fiscal year published rates.
All non-regular business hour work will be billed at overtime (1.5 x regular hours) rates
with a 4-hour minimum charge of $1,098.00 ($274.50 hourly x 4) for Technician
support, if not contiguous with normal business hours. If contiguous with normal
business hours (i.e., work begins less than four hours prior to normal business hours or
work is initiated before the close of normal business hours), then the 4-hour minimum
charge does not apply, and only actual hours worked (regular/overtime) will be billed to
the CITY based on when the work is performed.
4. Communications Technical Services Rates:
The rates for engineering and technical support are updated each fiscal year. Effective July
1, 2026, rates for *Communications Technical Services for Fiscal Year 2026-27 are set as
follows:
Regular Hours After-hours Rate
o Technician Rate $183.00 / hr. $274.50 / hr.
o Engineering Services $217.00 / hr. $325.50 / hr.
Page 255 of 267
Exhibit D of Agreement between the County of Santa Clara Page 2 of 2
and City of Gilroy for EMD and Technical Services
*Technical rates for subsequent fiscal years will be published annually in June and
effective July 1.
5. Billing for Services
The CITY will be billed by the COUNTY on a monthly basis for work performed. All
invoices will be submitted to Fire, Police and Public Works Departments:
To the CITY:
Gilroy Fire Department
7070 Chestnut Street
Gilroy, CA 95020
Gilroy Police
Department 7301 Hanna
Street
Gilroy, CA 95020
Gilroy Public Works Department
7351 Rosanna Street
Gilroy, CA 9502
Unless otherwise agreed to by both parties, all payments will be made to the COUNTY
within 30 calendar days of date invoiced to:
To the COUNTY:
Attn: Accounts Payable
County of Santa Clara
Communications Department
2700 Carol Drive
San Jose, CA 95125
Monthly billing will include the total amount billed for the month and documentation
will provide all invoices for work requested and performed during the billing period,
including at minimum an itemized description of services provided by the COUNTY
(e.g., breakdown of all services rendered, hours worked and travel time by service
location, labor type, and a breakdown of all goods provided/billed by the County).
Billing questions may be directed to Accounts Payable at
accounts.payable@911.sccgov.org.
6. Documentation:
The COUNTY shall maintain documentation of all services requested by the CITY and
work performed by the COUNTY under this Agreement as detailed in Exhibit B.
Documentation will include, but not be limited to, Radio System related engineering
designs, quotations, FCC licensing, installation, preventative maintenance, and repair
services.
The CITY has the right to inspect COUNTY documentation upon request.
Page 256 of 267
10.1.
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve the Establishment of a City Council Homelessness
Ad Hoc Subcommittee and Appoint up to Three City
Councilmembers to Serve on the Subcommittee, and Provide
Direction on the Homebase Proposal and Option
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Sharon Goei, Community Development Director
STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All
RECOMMENDATION
1. Approve the establishment of a City Council Homelessness Ad Hoc Subcommittee
and appoint up to three City Councilmembers to serve on the Subcommittee.
2. Proceed with the Homebase proposal and option of facilitation of six (6) monthly
meetings with four (4) virtual and two (2) in-person meetings.
EXECUTIVE SUMMARY
The City received a proposal from Homebase, funded by Destination: Home, to support
facilitation of a City Council Ad Hoc Subcommittee to set priorities to address
homelessness. Homebase proposes several options for their scope of work and
meeting format. Staff recommends that Council create a Homelessness Ad Hoc
Subcommittee. Staff also seeks Council direction on the desired Homebase proposal
and option.
BACKGROUND
In March 2026, the City received a proposal from Homebase, a national nonprofit
focused on responding to homelessness. Homebase has over 35 years of experience
Page 257 of 267
10.1.
supporting communities in the design and implementation of programs and best
practices toward a comprehensive, coordinated response to address homelessness and
reduce poverty.
ANALYSIS
Homebase proposes to support facilitation of a City Council Ad Hoc Subcommittee to set
priorities to address homelessness. Homebase proposes assisting in the facilitation of
six (6) monthly meetings, with tasks to include development of agenda and meeting
materials, facilitation of meetings, note-taking during meetings, and meeting follow-up.
After six meetings conclude, Homebase will document the priorities and any
implementation steps outlined by the Ad Hoc Subcommittee. Homebase proposes the
above scope of work as Option 1 at $40,469.
As an additional option, indicated as Option 2 in the proposal, Homebase proposes to
assist in the facilitation of six (6) meetings over a three-month period, along with three
months of implementation support. In comparison to Option 1, in essence, Option 2
includes the same facilitation of meetings except in half of the time, with some additional
research and implementation support. Homebase proposes Option 2 at $42,678.
Homebase proposes all meetings in either option to be virtual. Homebase indicated that
they can commit to a maximum of two (2) in-person meetings at an additional cost of
$7,044 per meeting.
The following summarizes the options, scope of work, meeting format alternatives, and
proposed cost by Homebase.
Scope of Work Option Meeting Format Proposed Cost
1 Six (6) virtual $40,469
1A Five (5) virtual and
one (1) in-person $47,513 Facilitation of six (6) monthly meetings
1B Four (4) virtual and
two (2) in-person $54,557
2 Six (6) virtual $42,678
2A Five (5) virtual and
one (1) in-person $49,722 Facilitation of six (6) meetings over
three months with three months of
implementation support
2B Four (4) virtual and
two (2) in-person $56,766
Page 258 of 267
10.1.
Through the facilitation of Subcommittee meetings, the goal is to identify strategies and
programs that reduce and prevent homelessness in our community.
Staff recommends that Council create a Homelessness Ad Hoc Subcommittee and
appoint up to three City Councilmembers to serve on the Subcommittee.
Staff also seeks Council direction on the desired Homebase proposal and option. Staff
recommends the monthly meeting option with two (2) in-person meetings, noted as
Option 1B above. Based on past experience, a monthly meeting pattern allows
adequate time to perform research and collaborate on the development of meeting
materials for more productive meetings. For the meeting format, in-person meetings
foster deeper engagement and collaboration, while virtual meetings offer accessibility
and time efficiency. As homelessness is a multi-faceted issue, staff believes robust
discussions would prioritize over meeting accessibility and recommends the maximum
of two (2) in-person meetings based on Homebase’s commitment.
ALTERNATIVES
Council may decide not to form an Ad Hoc Subcommittee. Council may also modify or
reject the Homebase proposal.
FISCAL IMPACT/FUNDING SOURCE
The proposal by Homebase will be funded by Destination: Home. A nonprofit
organization established in 2008, Destination: Home partners with stakeholders across
the community to advance strategies that address the root causes of homelessness and
advance solutions to end homelessness in Silicon Valley.
Staffing resources for the Ad Hoc Subcommittee, if created, will be necessary to
collaborate with and work alongside Homebase.
PUBLIC OUTREACH
This item is included on the publicly posted agenda for this meeting.
NEXT STEPS
If approved, staff will coordinate with Homebase and Destination: Home, then
commence the Ad Hoc Subcommittee and begin to schedule meetings.
Attachments:
Homebase Proposal
Page 259 of 267
homebaseccc.org 1
Homebase Proposal for City of
Gilroy
About Homebase
Homebase is a mission-driven nonprofit organization dedicated to building
community capacity to end homelessness, reduce poverty, and foster thriving
communities. For over thirty years, we have worked at the national, state, and local
levels supporting the design and implementation of programs and systems needed
to help people experiencing or at risk of homelessness achieve housing stability,
improve health and wellness, and maximize economic self-sufficiency. We provide
customized assistance grounded in the needs of each community and develop
responsive solutions for lasting impact.
Scope of Work
Homebase proposes to undertake the following work to support facilitation of a City
of Gilroy City Council ad hoc committee to set priorities to address homelessness.
Ad Hoc Committee Facilitation
To support the City of Gilroy’s goal in setting priorities to address homelessness,
Homebase proposes assisting in the facilitation of 6 meetings over an eight-month
contract period. Homebase has developed the following options:
Option1: Facilitation of 6 Monthly Meetings
Homebase will assist in the facilitation of 6 monthly two-hour meetings. Tasks
for each meeting to include the following:
• Development of agenda and materials for each meeting in
consultation with Mayor Bozzo.
• Communication with ad hoc committee members
• Facilitation of ad hoc committee based on consultation with Mayor
Bozzo
• Note-taking during ad hoc committee meetings.
• Meeting follow up and next steps.
Page 260 of 267
Homebase Proposal for City of Gilroy
homebaseccc.org 2
After the 6th meeting, Homebase will document the priorities and any
implementation steps outlined by the ad hoc committee for the City of Gilroy.
All meetings will be conducted virtually, with the option to hold up to two
meetings in person (see budget section).
Option 2: Facilitation of 6 Meetings over 3 months with 3 months of
implementation support
Homebase will assist in the facilitation of 6 two-hour meetings. Meetings will
take place within a three-month span, allowing for some time for planning
before meetings begin. Tasks for each meeting to include the following:
• Development of agenda and materials for each meeting in
consultation with Mayor Bozzo.
• Communication with ad hoc committee members
• Facilitation of ad hoc committee based on consultation with Mayor
Bozzo
• Note-taking during ad hoc committee meetings.
• Meeting follow up and next steps.
After the 6th meeting, Homebase will document the priorities and any
implementation steps outlined by the ad hoc committee for the City of Gilroy.
Homebase will provide up to 4 hours per month of implementation coaching
with the City of Gilroy for the remaining 3 months of the contract period. This
could include regular weekly or bi-weekly check ins, research support, and
discussions with community partners on implementation.
All meetings will be conducted virtually, with the option to hold up to two
meetings in person (see budget section).
Proposed Budget
Homebase proposes the following budget based on the options above to fulfill this
scope of work. We are happy to adjust the scope and budget to align with City of
Gilroy’s needs and goals.
Option1: Facilitation of 6 Monthly Meetings
Homebase proposes a budget of $40,469 to fulfill this scope of work.
Option 2: Facilitation of 6 Meetings over 3 months with 3 months of
implementation support
Homebase proposes a budget of $42,678 to fulfill this scope of work.
Page 261 of 267
Homebase Proposal for City of Gilroy
homebaseccc.org 3
As mentioned above all meetings in either option would be virtual. If the City of
Gilroy would like to convert a virtual option to an in-person option, Homebase
recommends a 3-hour meeting at an additional cost of $7,044 per meeting.
Homebase can only commit to a maximum of 2 in-person meetings for this contract.
Contact
Thank you for your consideration of this proposal. We look forward to continuing to
work with City of Gilroy. If you have any questions, please contact Karen Kowal,
Senior Directing Analyst – Contract Lead at karen@homebaseccc.org or
415.788.7961 ext. 372.
The information provided in this proposal does not constitute legal advice or advertise legal
services. Homebase does not enter into attorney-client relationships.
Page 262 of 267
City of Gilroy
STAFF REPORT
Agenda Item Title: Request to Consider Amending City Zoning Code Section
30.41.31 regarding Performance Standards for Commercial
and Industrial Noise Impacting Residentially Zoned
Properties (FAIR Memo – Hilton)
Meeting Date: April 6, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director
Prepared by: Michael Fossati, Planning Manager
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Council consideration of a future agenda item directing staff to amend Zoning Code
Section 30.14.31 (Specific provisions – Noise).
EXECUTIVE SUMMARY
The intent of the staff report is to provide City Council with the current performance
standards associated with “Commercial and Industrial Noise Impacting Residentially
Zoned Properties” within the Gilroy Zoning Code and for Council to consider whether to
direct staff to amend the Zoning Code.
BACKGROUND
Councilmember Zach Hilton provided a FAIR Memo to City Administrator Matt Morley.
See Attachment 1.
ANALYSIS
Under the current Gilroy Zoning Code within Section 30.41.31 (b)(2), “noise emanating
from properties that are zoned for uses other than residential is limited to a maximum of
70 dBA (L10) measured at the residential property line. Such noise is limited to the
Page 263 of 267
hours of 7:00 a.m. to 10:00 p.m., and prohibited between the hours of 10:00 p.m. and
7:00 a.m. This requirement is associated with “Commercial and Industrial Noise
Impacting Residentially Zoned Properties” zoning regulation.
Per Gilroy Zoning Code Section 30.41.31(a), “L10” means the maximum noise level to
be exceeded no more than ten percent (10%) of the time.
In summary, the code section means that if a business (also known as a use) is located
within a Commercial or Industrial Zoning District next to a Residential Zoning District,
noise from the commercial or industrial property cannot exceed 70 dBA between 7:00
a.m. and 10:00 p.m. Uses within those commercial and industrial areas are also
prohibited from creating noise above 70 dBA between 10:00 p.m. and 7:00 a.m., unless
the noise occurs less than ten percent (10%) of the time.
According to the current zoning code, noise exceeding 70 dBA between 10:00 p.m. and
7:00 a.m. is not permitted to be continuous. For example, an air conditioner operating
above 70 dBA during these hours complies with city regulations if it runs for no more
than 10% of the time.
The FAIR Memo (Attachment 1) proposes changes to the current zoning regulation.
If directed by the City Council as a future agenda item, staff will move forward with an
analysis for potential code adjustments for Council consideration. Staff would aim to
combine any future discussion of this item with other potential code modifications to
ensure efficient use of staff time.
ALTERNATIVES
City Council may approve, modify, or disapprove the request for a future agenda item.
FISCAL IMPACT/FUNDING SOURCE
None at this time. If the City Council approves the topic for a future agenda, the fiscal
impact will include staff time for drafting the proposed amendment.
PUBLIC OUTREACH
This item was included on the publicly posted agenda for this meeting.
NEXT STEPS
If the City Council approves proceeding with the item, staff will place it on a future
agenda.
Attachments:
1. FAIR Memo
2. Gilroy Zoning Code Section 30.41.31 (Specific Provisions - Noise) within Article
30.41 (Performance Standards)
Page 264 of 267
Page 265 of 267
Contact: Zach Hilton
Zachary.Hilton@cityofgilroy.org
669-270-6232
February 10, 2026
Future City Council Initiated Agenda Item
City Code Chapter 30 Zoning Ordinance- I am requesting to place “City Code
Chapter 30 Zoning Ordinance-Section 41 Performance Standards-Noise” on a future
agenda with possible action to amend the code by ordinance with the goal of providing
clear objective standards, when it comes to Commercial and Industrial Noise Impacting
Residentially Zoned Properties. I am proposing two separate changes to the code.
Supporting Documentation:
We will continue to develop more residential units that are mixed use and near existing
commercial and industrial developments. There are objective standards that we can put
in place to make it clear what noises are allowed and what noises are limited in
“Commercial and Industrial Noise Impacting Residentially Zoned Properties”.
Amend the code by ordinance to add under section 30.41.31 the following
changes.
• Commercial and Industrial Noise Impacting Residentially Zoned Properties.
Noise emanating from properties that are zoned for uses other than residential is limited
to a maximum of 70 60 dBA (L10) or less measured at the residential property line.
Such noise is limited to the hours of 7:00 a.m. to 10:00 p.m., and prohibited between the
hours of 10:00 p.m. and 7:00 a.m. the maximum noise level to be exceeded no more
than ten percent (10%) of the time.
• Commercial and Industrial Noise Impacting Residentially Zoned Properties. The
outside use of power tools, yard, landscaping and similar equipment is prohibited (not
subject to the L10) between the hours of 10pm-7am Monday through Friday and
10pm-9am Saturday and Sunday.
The word prohibited is misleading because of the L10 exception that is allowed from
10pm-7am. This happened in 2013 and 2019 when Chapter 30 Zoning code
amendments took place and changes were made to Section 41. In 2013 they did a code
adoption, and the yard equipment was in it, but just related to residential. The noise for
commercial near residential hasn't changed. Then in Oct 2019 the wording for yard
equipment in residential areas was removed, but the commercial and industrial
impacting residential zones properties stayed the same. Changes are referenced in the
current 30.41.31 (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13; Ord. No. 2019-08, § 23,
10-7-19)
Sources Used:
https://www.codepublishing.com/CA/Gilroy/#!/Gilroy30/Gilroy3041.html#30.41.10
1
Page 266 of 267
30.41.31 Specific provisions—Noise.
It shall be unlawful to generate noise within the city limits that exceeds the limits established in this section.
(a)Definitions.
“Decibel (dBA)” means a unit measuring the amplitude of sound or noise, weighted to the range of human hearing
(A-weighting scale on a sound level meter).
“L10” means the maximum noise level to be exceeded no more than ten percent (10%) of the time.
“Noise level” means measurement of sound in decibels (dBA) obtained by using a sound level meter at slow
response.
“Sound level meter” means an instrument comprised of a microphone, an amplifier, an output meter and frequency
weighing networks, used for measuring sound levels in decibel (dBA) units.
(b)Maximum Outdoor Noise Levels.
(1)Residential Noise Impacting Residential Properties. Fixed-source outdoor mechanical equipment installed after
July 1, 2007 (e.g., pool, spa, air conditioning or similar equipment) is limited to a maximum of sixty (60) dBA Ldn
measured at the property line or seventy (70) dBA (L10) measured at the property line.
(2)Commercial and Industrial Noise Impacting Residentially Zoned Properties. Noise emanating from properties
that are zoned for uses other than residential is limited to a maximum of 70 dBA (L10) measured at the residential
property line. Such noise is limited to the hours of 7:00 a.m. to 10:00 p.m., and prohibited between the hours of
10:00 p.m. and 7:00 a.m.
(c)Exceptions to the Exterior Noise Limits Listed in Subsection (b) of This Section.
(1)Persons, equipment, vehicles, alarms or sirens utilized in essential activities necessary to preserve, protect or
save lives or property from danger, loss or harm;
(2)Refuse and recycling collection vehicles when operating between the hours of 5:00 a.m. and 6:00 p.m.;
(3)Special events operating in compliance with an approved special events permit; and
(4)City-approved activities on public properties. (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13; Ord. No. 2019-08, § 23,
10-7-19)
Zoning 30.41 PERFORMANCE STANDARDS
1/1Page 267 of 267