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Home My WebLink AboutAMENDED July 27, 2026 City Council Regular Meeting Agenda PacketJuly 27, 2026 | 6:00 PM Page 1 of 7 City Council Regular Meeting CITY COUNCIL REGULAR MEETING AGENDA CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 AMENDED AGENDA Removed the Administrative Hearing Item, and included staff report for Item 10.1 5:00 PM CLOSED SESSION 6:00 PM REGULAR SESSION MONDAY, JULY 27, 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 FRIDAY PRIOR TO THE MEETING Remote Participation Gilroy City Council meetings are held in person. The community may attend in person or via Zoom (video/teleconference). The meetings are also live-streamed on the City's website and YouTube. Those wishing to participate in the meetings remotely may join using the following link: https://bit.ly/GilroyCityCouncilMeetings. Additionally, Zoom participants must be running the latest version or will be required to update to it before joining the meeting remotely. Remote participation is also available by calling (669) 900-6833 and entering webinar ID: 930 2066 6240#. Dial *9 to raise your hand, and be called upon to speak for up to 3 minutes. Dial *6 to unmute. Public Comment 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. Public comment will be heard first from those attending in person, with the submission of a speaker card. Once that is complete, we will move to those on Zoom who have their virtual hand raised. Following public comment from Zoom, we will close the public comment period for that item. Please note: Once the third speaker has provided comment on an item, there will be no further speaker cards or virtual raised hands taken for that item. Page 1 of 309 July 27, 2026 | 6:00 PM Page 2 of 7 City Council Regular Meeting Written comments on any agenda item may be emailed to the City Clerk’s Office at publiccomment@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN. In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at least 72 hours prior to the meeting at (408) 846-0204 or cityclerk@cityofgilroy.org to help ensure that reasonable arrangements can be made. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to the Staff’s ability to post the documents before the meeting. 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. Page 2 of 309 July 27, 2026 | 6:00 PM Page 3 of 7 City Council Regular Meeting 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: www.cityofgilroy.org/translate 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. 1. CLOSED SESSION - 5:00 PM 1.1. Call to Order 1.2. Roll Call 1.3. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17 A.11 (4) Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Firefighters City Negotiators: Matt Morley, City Administrator; LeeAnn McPhillips, Human Resources Director/Risk Manager Anticipated lssues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805 2. OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION 3. ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5). The agenda for this regular meeting is outlined as follows: 4. REGULAR SESSION - 6:00 PM 4.1. Call to Order 4.2. Roll Call 4.3. City Clerk's Report on Posting the Agenda Page 3 of 309 July 27, 2026 | 6:00 PM Page 4 of 7 City Council Regular Meeting 4.4. Pledge of Allegiance 4.5. Invocation 4.6. Orders of the Day 4.7. Employee Introductions 5. CEREMONIAL ITEMS - Proclamations and Awards 5.1. Retirement Proclamation for LeeAnn McPhillips 6. PRESENTATIONS TO THE COUNCIL 6.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council in person are requested to complete a Speaker’s Card located near the City Clerk and handed to the City Clerk. Persons wishing to address the Council virtually are requested to raise their virtual hand. 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. 7. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Page 4 of 309 July 27, 2026 | 6:00 PM Page 5 of 7 City Council Regular Meeting 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) 8. 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. 8.1. Approve the Meeting Minutes of the June 15, 2026 City Council Regular Meeting and the June 29, 2026 City Council Special Meeting 8.2. Approval of Amendment to Axon Fleet 3 Agreement to Procure Six Additional In- car Camera Systems and Maintain Patrol Operations During Fleet Replacement 8.3. Adopt a Resolution Authorizing Recordation of Affordable Housing Covenants on Four City-Owned Parcels 8.4. Appointment of Harjot Sangha as City Administrator Pro Tempore Pursuant to Gilroy City Charter Section 705 8.5. Claim of Jaime Perez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Page 5 of 309 July 27, 2026 | 6:00 PM Page 6 of 7 City Council Regular Meeting 8.6. Approve the Second Amendment to the 17-Mile Construction Services Inc Contract for Improvements at 641 Old Gilroy Street (Jessup Property), Increasing the Contract Amount by $8,358 for a Total Contract Value of $226,058 8.7. Acceptance of a $120,766 Grant from the Department of California Highway Patrol Cannabis Tax Fund Grant Program for Driving Under the Influence Enforcement Activities and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2027 Budget Amendment 8.8. Approval of a Partnership with KABOOM! for the Replacement of the Hanna Playground at Las Animas Veterans Park 8.9. Adoption of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts 8.10. Approve the Fourth Amendment to the Agreement with Chrisp Company for On- Call Striping and Pavement Marking Services 8.11. Reduced Prima Facie Speed Limits on Specific Designated Streets Approaching School Zones to 25 Miles Per Hour 8.12. Approval of Policy on Public Comment and Meeting Decorum During City Council Meetings 9. BIDS AND PROPOSALS 9.1. Award a Three-Year Contract to Advanced Integration & Controls (AIC), with the Option to Extend for Two Additional One-Year Periods, for a Total Contract Amount of $450,000 for Water and Wastewater SCADA Controls System Integration and Support Request Services 1. Staff Report: Tyson Enzweiler, Utilities Operations Manager 2. Public Comment 3. Recommended Action: 1. Award a three-year contract to Advanced Integration & Controls (AIC) for a total amount not to exceed $450,000 with the option to extend two additional one-year terms for water and wastewater SCADA controls system integration and support request services; 2. Authorize the City Administrator to execute the contract and all associated documents; and 3. Authorize the City Administrator to execute up to two subsequent one-year contract amendments, subject to review and recommendation by the Utilities Director. 10. INTRODUCTION OF NEW BUSINESS Page 6 of 309 July 27, 2026 | 6:00 PM Page 7 of 7 City Council Regular Meeting 10.1. Approval of AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit Memoranda of Understanding and Related Salary Schedules for the Period of July 1, 2026 - June 30, 2029; and the Unrepresented Confidential, Full-Time, Non-Exempt, and Hourly, Part- Time/Temporary/Seasonal Employees Salary Schedules for the Same Period. 1. Staff Report: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager. 2. Public Comment 3. Recommended Action: 1. Approve the Memoranda of Understanding with AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit for the period July 1, 2026–June 30, 2029. 2. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 General Unit. 3. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 Supervisory Unit. 4. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Confidential, Full-Time, Non- Exempt employees. 5. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Hourly, Part- Time/Temporary/Seasonal employees. 11. CITY ADMINISTRATOR'S REPORTS 12. CITY ATTORNEY'S REPORTS 13. ADJOURNMENT Page 7 of 309 Page 8 of 309 June 15, 2026 | 5:00 PM Page 1 of 14 City Council Minutes City of Gilroy City Council DRAFT Minutes Monday, June 15, 2026 | 5:00 PM 1. STUDY SESSION - 5:00 PM 1. Call to Order The Study Session was called to order by Mayor Bozzo at 5:00 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 Administrator Performance Metrics City Administrator Matt Morley provided a report. Mayor Bozzo opened public comment at 5:12 P.M. With no speakers, Mayor Bozzo closed public comment. 2. REGULAR MEETING - 6:00 PM 1. Call to Order The regular 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 Page 9 of 309 June 15, 2026 | 5:00 PM Page 2 of 14 City Council Minutes 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 Ramirez led the Pledge of Allegiance. 5. Invocation Pastor Trevor Van Laar with Gilroy Presbyterian Church led the Invocation. 6. Orders of the Day Mayor Bozzo announced that item 9.4 will be moved up to follow Item 6. 7. Employee Introductions Police Chief Brandon Sanchez introduced Police Records Technician I Stefanie Tilley. 3. PRESENTATIONS TO THE COUNCIL 1. Caltrain Presentation Michelle Bouchard and Jason Baker with Caltrain provided a Presentation and report. Mayor Bozzo opened public comment at 6:32 P.M. With no speakers, Mayor Bozzo closed public comment. Report received. 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 6:40 P.M. Jan Guffey - Thanked Council for listening to the community and for taking action against the ICE Detention Center. Perla Garcia - Spoke against the ICE Detention Center. Georgine Scott-Codiga - Shared information pertaining to the planned Amazon Data Center. Ellen Marden - Brought awareness to the usage of the City's groundwater. Rebecca Armendariz - Spoke against the ICE Detention Center. Sana - Spoke against the ICE Detention Center. Page 10 of 309 June 15, 2026 | 5:00 PM Page 3 of 14 City Council Minutes Kelly Larsen - Spoke against the ICE Detention Center. Clarita Cupa - Spoke against the ICE Detention Center. Perla Flores - Spoke against the ICE Detention Center. Sally Armendariz - Spoke against the ICE Detention Center. Julee Klein - Spoke against the ICE Detention Center. Erin O'Brien - Spoke against the ICE Detention Center. Ruby - Expressed concerns on the new hours for the 7th st public parking lot and raised safety concerns. Yuli Abundis - Spoke against the ICE Detention Center. Diane Ortiz - Spoke against the ICE Detention Center. Gretchen Y - Spoke against the ICE Detention Center. Reymundo Armendariz - Requested Council's continued support of immigrant labor as well as the Latino Community. Angelique Montes - Spoke against the ICE Detention Center. Tatiana Villasenor - Spoke against the ICE Detention Center. Lauren H - Spoke against the planned 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 Page 11 of 309 June 15, 2026 | 5:00 PM Page 4 of 14 City Council Minutes 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) Council Member Bracco - No report. Council Member Fugazzi - No report. Council Member Marques - No report. Council Member Ramirez - Reported that she participated in a League of California Cities Housing Community Economic Development Policy meeting and that she also attended the Unhoused Ad Hoc Committee meeting. She also shared that she participated in a Focus Agriculture Session through Agriculture Santa Clara. Lastly, she expressed her support of city staff and shared her disappointment with the community for their recent treatment of city staff. Council Member Cline - Expressed his gratitude for the work City staff does and asked the community to refrain from personal attacks on City staff. Mayor Bozzo - Reported on scholarships that were given to students in Gilroy. 5. BOARD AND COMMISSION APPOINTMENTS 1. Appointment of Members to the Youth Commission City Clerk Kim Mancera provided a report. The following appointments were made by the City Council. Youth Commission Abigail Nguyen - Full term ending 06/30/2028 Jaxson Liu - Full term ending 06/30/2028 Jeremy Vu - Full term ending 06/30/2028 Page 12 of 309 June 15, 2026 | 5:00 PM Page 5 of 14 City Council Minutes Kacie Walker - Full term ending 06/30/2028 William Purdy - Full term ending 06/30/2028 6. CONSENT CALENDAR Mayor Bozzo opened public comment at 7:10 P.M. With no speakers, Mayor Bozzo closed public comment. Motion Approve the consent calendar items 6.1 through 6.4 and items 6.6 through 6.12. RESULT: Passed MOVER: Council Member Kelly Ramirez SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Approve the consent calendar item 6.5. RESULT: Passed MOVER: Council Member Kelly Ramirez SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo ABSENT: Council Member Zach Hilton NAYS: None ABSTAIN: Council Member Tom Cline 1. Approve the June 1, 2026 City Council Regular Meeting and the June 6, 2026 Coffee with the Mayor Meeting Minutes 2. Adopt a Resolution Setting the 2026 Fireworks Service Fee 3. Claim of John Ganzel (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 4. Reduced Speed Limits on Specific Designated Streets in School Zones and Approaching School Zones to 15 Miles Per Hour and 20 Miles Per Hour 5. Approve an Amendment to the Professional Services Agreement with Gilroy Chamber of Commerce for Programs Supporting Workforce Development and Business Retention, Expansion, and Attraction, and Adopt a Budget Amendment Resolution Page 13 of 309 June 15, 2026 | 5:00 PM Page 6 of 14 City Council Minutes 6. Authorize the City Administrator to enter into a one-year service agreement with the County of Santa Clara for Animal Sheltering Services for the period of July 1, 2026 through June 30, 2027. 7. Adopt a Resolution of the City Council of the City of Gilroy Setting the Appropriation Limit for Fiscal Year 2026-27 (FY27) 8. Consent to the Appointment of Michael Horta as Human Resources Director/Risk Manager 9. Adoption of Resolution Denying Appeal and Modifying Administrative Hearing Officer's Decision Regarding Business License No. 16606725 and Tobacco Retailer's Permit issued to The Rock Zone 10. Adopt a Resolution of the City Council of the City of Gilroy Setting the Tax Rate for Fiscal Year 2026-27 (FY27) for the Gilroy Community Library Project Bonds 11. Approval of a Memorandum of Understanding with the County of Santa Clara for Crime Laboratory Services and Authorize the City Administrator to Execute the Agreement 12. Consent to the Appointment of Derek Cray as Utilities Director 9. INTRODUCTION OF NEW BUSINESS 4. Consideration of Options for Amending the Architectural and Site Review Permit Process (FAIR Memo - Marques and Ramirez) Planning Manager Michael Fossati provided a presentation and report. Mayor Bozzo opened public comment at 7:28 P.M. Noah Hayes - Spoke opposing the planned Amazon Data Center. Ariana Casey - Raised questions about Environmental Impact Report tied to the planned Amazon Data Center. Rachael Chambers - Spoke opposing the planned Amazon Data Center. John Bobst - Spoke opposing the planned Amazon Data Center. Kyle - Spoke opposing the planned Amazon Data Center. Jan Guffey - Spoke opposing the planned Amazon Data Center. Michelle Nelson - Raised concerns tied to the planned Amazon Data Center. Cammie Brown - Spoke opposing the planned Amazon Data Center. Page 14 of 309 June 15, 2026 | 5:00 PM Page 7 of 14 City Council Minutes Heidi Mayer - Spoke opposing the planned Amazon Data Center. Charleene Puder - Spoke opposing the planned Amazon Data Center. Steve Domingues - Spoke opposing the planned Amazon Data Center. Pat McBride - Spoke opposing the planned Amazon Data Center. Perla Garcia - Spoke opposing the planned Amazon Data Center. Mak Gupta - Urged Council Members to do what is right for the community. Georgine Scott-Codiga - Spoke opposing the planned Amazon Data Center. Debi Kerrick - Spoke opposing the planned Amazon Data Center. Landon Sepulveda - Spoke opposing the planned Amazon Data Center. Daphne Barker - Spoke opposing the planned Amazon Data Center. Ron Kirkish - Spoke in favor of the planned Amazon Data Center. Armando Benavides - Spoke opposing the planned Amazon Data Center. Annedore Kushner - Spoke opposing the planned Amazon Data Center. Dianne Eidson - Raised concerns tied to the planned Amazon Data Center. Britt Smith - Spoke opposing the planned Amazon Data Center. Coleen Crew - Spoke opposing the planned Amazon Data Center. Connie Ludewig - Expressed concerns pertaining to the City's water supply. Deepak W. - Spoke opposing the planned Amazon Data Center. Joshua T. - Spoke opposing the planned Amazon Data Center. Jennifer Volz - Spoke opposing the planned Amazon Data Center. Connie Rogers - Spoke opposing the planned Amazon Data Center. With no further speakers, Mayor Bozzo closed public comment. City Council directed staff to enhance public outreach and initiate the process to amend the Gilroy Zoning Code to require Planning Commission review and approval for development projects that require an Environmental Impact Report and have significant and unavoidable impact(s). Page 15 of 309 June 15, 2026 | 5:00 PM Page 8 of 14 City Council Minutes The meeting recessed at 8:25 P.M. and reconvened at 8:44 P.M. 7. BIDS AND PROPOSALS 1. Award a Professional Services Agreement to Kimley-Horn for a Not-to-exceed Amount of $237,117 for the Development of the City of Gilroy Comprehensive Roadway Safety Action Plan, Add the Project to the Capital Improvement Program, and Adopt a Budget Amendment Resolution to appropriate Grant and Gas Tax Funds to the Project City Engineer Nisha Patel provided a presentation and report. Mayor Bozzo opened public comment at 8:54 P.M. With no speakers, Mayor Bozzo closed public comment. Motion Award a Professional Services Agreement to Kimley-Horn for an amount not to exceed $237,117.25 for the development of the City of Gilroy Comprehensive Roadway Safety Action Plan (Project) No. 26-RFP-PW-529, and authorize the City Administrator to execute the contract and associated documents. RESULT: Failed MOVER: Council Member Tom Cline SECONDER: Council Member Kelly Ramirez AYES: Council Member Tom Cline, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: Council Member Dion Bracco, Council Member Terence Fugazzi, Council Member Carol Marques ABSENT: Council Member Zach Hilton 2. Adopt a Resolution Approving the Plans and Specifications for the Las Animas Park Pickleball Courts Project, Appropriating $499,190 to the Project, and Awarding a Construction Contract to Monterey Peninsula Engineering for an Amount Not to Exceed $1,226,401 with a Total Project Construction Cost Including Contingency of $1,288,000 City Engineer Nisha Patel provided a presentation and report. Mayor Bozzo opened public comment at 9:12 P.M. Wendy - Spoke in support of the Pickleball courts and urged Council to push this project forward. Emily - Spoke in support of the Pickleball courts. With no further speakers, Mayor Bozzo closed public comment. Motion Adopt a resolution approving the plans and specifications for the Las Animas Park Page 16 of 309 June 15, 2026 | 5:00 PM Page 9 of 14 City Council Minutes Pickleball Courts Project No. 26-PW-305, appropriating $155,000 from the Facilities Fund (615) and $344,190 from the Recreation Fund (290) to the project budget, awarding a construction contract to Monterey Peninsula Engineering for an amount not to exceed $1,226,401, establishing a 5% contingency for a total construction contract amount not to exceed $1,288,000, authorizing the City Administrator to execute the construction contract, and authorizing staff to approve any amendments, extensions, and change orders until completion of the project in accordance with the plans and specifications up to the project construction amount. RESULT: Passed MOVER: Council Member Carol Marques SECONDER: Council Member Dion Bracco AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 8. PUBLIC HEARINGS 1. Public Hearing and Adoption Pursuant to California Water Code Section 10642 for the 2025 Urban Water Management Plan and the 2025 Water Shortage Contingency Plan Utilities Sr. Management Analyst Izabela Cirloganu introduced Tony Akel with Akel Engineering Group, Inc. Mr. Akel provided a presentation and report. Mayor Bozzo opened the public hearing at 9:41 P.M. Michelle Nelson - Expressed concerns over how much water the planned Amazon Data Center will utilize. Georgine Scott-Codiga - Spoke opposing the Adoption of this Water Shortage Contingency Plan Armando Benavides - Urged Council to update the City code surrounding water. Connie Rogers - Expressed concerns over how much water the planned Amazon Data Center will utilize. Rose Barry - Expressed concerns over how much water the planned Amazon Data Center will utilize. Pat McBride - Expressed concerns over how much water the planned Amazon Data Center will utilize. With no further speakers, Mayor Bozzo closed the public hearing. Report received. Page 17 of 309 June 15, 2026 | 5:00 PM Page 10 of 14 City Council Minutes Motion Adopt a resolution approving the 2025 Urban Water Management Plan. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Kelly Ramirez AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 2. Introduction of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts Deputy Director of Community Development Bryce Atkins provided a report and presentation. Mayor Bozzo opened the public hearing at 9:53 P.M. With no speakers, Mayor Bozzo closed the public hearing. Motion Motion to read the ordinance by title only and waive further reading. RESULT: Passed MOVER: Council Member Carol Marques SECONDER: Council Member Terence Fugazzi AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Introduce an ordinance of the City Council of the City of Gilroy amending Gilroy City Code Chapter 5D, vacant commercial space in Downtown Historic and Downtown Expansion District. RESULT: Passed MOVER: Council Member Carol Marques SECONDER: Council Member Terence Fugazzi AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Page 18 of 309 June 15, 2026 | 5:00 PM Page 11 of 14 City Council Minutes 3. Resolution Declaring Results of Majority Protest Proceedings to Renew the Gilroy Tourism Business Improvement District Economic Development Director Raissa de la Rosa provided a report and a presentation. Mayor Bozzo opened the public hearing at 9:57 P.M. With no speakers, Mayor Bozzo closed the public hearing. City Clerk Kim Mancera declared the results of the majority protest proceedings. Motion Adopt a resolution to renew the Gilroy Tourism Business Improvement District. 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 Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 9. INTRODUCTION OF NEW BUSINESS 1. Charles Lux Drive and Lopez Way All Way Stop Control Analysis and Las Animas Elementary School Area Study City Engineer Nisha Patel introduced Jen Schreiber with Parametrix. Ms. Schreiber provided a presentation and report. Mayor Bozzo opened public comment at 10:15 P.M. With no speakers, Mayor Bozzo closed public comment. Report received. 2. Fiscal Year (FY) 2026 Third Quarter Budget and General Fund Forecast Update and Adoption of Resolutions Amending the Budget and Updating the Position Control List Finance Director Cindy Murphy provided a report and presentation. Mayor Bozzo opened public comment at 10:30 P.M. With no speakers, Mayor Bozzo closed public comment. Report received. Page 19 of 309 June 15, 2026 | 5:00 PM Page 12 of 14 City Council Minutes Motion Adopt a resolution approving the updated Position Control List for FY26 and FY27. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Carol Marques AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Adopt a budget amendment resolution for FY26 and FY27. RESULT: Passed MOVER: Council Member Carol Marques SECONDER: Council Member Dion Bracco AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Authorize the City Administrator to submit a bid for a Reserve Fire Engine from the Mountain View Fire Department for an amount not to exceed $150,000 and execute all related documents necessary to procure the Reserve Fire Engine if Gilroy's bid is accepted. RESULT: Passed MOVER: Council Member Tom Cline SECONDER: Council Member Kelly Ramirez AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 3. Introduction and Adoption of an Urgency Ordinance Amending Chapter 8B of the Gilroy City Code Relating to Voluntary Campaign Expenditure Ceilings Assistant City Administrator Harjot Sangha provided a presentation and report. Mayor Bozzo opened public comment at 10:34 P.M. With no speakers, Mayor Bozzo closed public comment. Motion Introduce the ordinance by title only and waive any further reading. Page 20 of 309 June 15, 2026 | 5:00 PM Page 13 of 14 City Council Minutes RESULT: Passed MOVER: Council Member Dion Bracco SECONDER: Council Member Terence Fugazzi AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton Motion Adopt an urgency ordinance amending Chapter 8B of the Gilroy City Code relating to the voluntary campaign expenditure ceiling and making the finding that immediate implementation of the amendments is necessary to provide certainty to candidates and committees participating in the upcoming 2026 election cycle and to promote orderly election administration. 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 Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council Member Zach Hilton 10. FUTURE COUNCIL INITIATED AGENDA ITEMS None. 11. CITY ADMINISTRATOR'S REPORTS City Administrator Matt Morley reported that he attended the Cities Association Summer meeting focused on Emergency Preparedness. 12. CITY ATTORNEY'S REPORTS No report. 13. CLOSED SESSION City Attorney Andy Faber announced the closed session item. City Attorney Andy Faber opened public comment at 10:37 P.M. With no speakers, City Attorney Andy Faber closed public comment. Adjourn to closed session 10:38 P.M. Motion Remain in closed session. Page 21 of 309 June 15, 2026 | 5:00 PM Page 14 of 14 City Council Minutes RESULT: Passed MOVER: None SECONDER: None AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None ABSENT: Council member Zach Hilton 1. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17 A.11 (4) Collective Bargaining Units: AFSCME Local 101 (General & Supervisory Units) Representing Employees Affiliated with AFSCME, Local 101; Local 2805, IAFF Fire Unit Representing Gilroy Firefighters City Negotiators: Matt Morley, City Administrator; LeeAnn McPhillips, Human Resources Director/Risk Manager Anticipated lssues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805, City of Gilroy and AFSCME, Local 101 General & Supervisory Units 14. ADJOURN TO OPEN SESSION There was no reportable action from the closed session. 15. ADJOURNMENT With no additional business before the Council, the meeting was adjourned at 11:04 P.M. I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX. Kim Mancera City Clerk Page 22 of 309 July 27, 2026 | 6:00 PM Page 1 of 7 City Council Regular Meeting CITY COUNCIL REGULAR MEETING AGENDA CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 5:00 PM CLOSED SESSION 6:00 PM REGULAR SESSION MONDAY, JULY 27, 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 FRIDAY PRIOR TO THE MEETING Remote Participation Gilroy City Council meetings are held in person. The community may attend in person or via Zoom (video/teleconference). The meetings are also live-streamed on the City's website and YouTube. Those wishing to participate in the meetings remotely may join using the following link: https://bit.ly/GilroyCityCouncilMeetings. Additionally, Zoom participants must be running the latest version or will be required to update to it before joining the meeting remotely. Remote participation is also available by calling (669) 900-6833 and entering webinar ID: 930 2066 6240#. Dial *9 to raise your hand, and be called upon to speak for up to 3 minutes. Dial *6 to unmute. Public Comment 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. Public comment will be heard first from those attending in person, with the submission of a speaker card. Once that is complete, we will move to those on Zoom who have their virtual hand raised. Following public comment from Zoom, we will close the public comment period for that item. Please note: Once the third speaker has provided comment on an item, there will be no further speaker cards or virtual raised hands taken for that item. 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 Page 23 of 309 July 27, 2026 | 6:00 PM Page 2 of 7 City Council Regular Meeting will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN. In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at least 72 hours prior to the meeting at (408) 846-0204 or cityclerk@cityofgilroy.org to help ensure that reasonable arrangements can be made. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to the Staff’s ability to post the documents before the meeting. 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: www.cityofgilroy.org/translate Choose Language and Click Attend | Seleccione su lenguaje y haga clic en Page 24 of 309 July 27, 2026 | 6:00 PM Page 3 of 7 City Council Regular Meeting 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. 1. CLOSED SESSION - 5:00 PM 1.1. Call to Order 1.2. Roll Call 1.3. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17 A.11 (4) Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Firefighters City Negotiators: Matt Morley, City Administrator; LeeAnn McPhillips, Human Resources Director/Risk Manager Anticipated lssues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805 2. OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION 3. ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5). The agenda for this regular meeting is outlined as follows: 4. REGULAR SESSION - 6:00 PM 4.1. Call to Order 4.2. Roll Call 4.3. City Clerk's Report on Posting the Agenda 4.4. Pledge of Allegiance 4.5. Invocation 4.6. Orders of the Day 4.7. Employee Introductions 5. PRESENTATIONS TO THE COUNCIL Page 25 of 309 July 27, 2026 | 6:00 PM Page 4 of 7 City Council Regular Meeting 5.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council in person are requested to complete a Speaker’s Card located near the City Clerk and handed to the City Clerk. Persons wishing to address the Council virtually are requested to raise their virtual hand. 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. 6. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate) 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 Page 26 of 309 July 27, 2026 | 6:00 PM Page 5 of 7 City Council Regular Meeting 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) 7. APPEAL HEARING 7.1. Appeal Hearing of the Final Decision in the Matter of the Administrative Hearing regarding Business License and Tobacco Retailer's Permit Issued to Account No. 16623337 - Tony's Smoke and Gift Shop, located at 231 1st Street, Gilroy, California 8. 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. 8.1. Approve the Meeting Minutes of the June 15, 2026 City Council Regular Meeting and the June 29, 2026 City Council Special Meeting 8.2. Approval of Amendment to Axon Fleet 3 Agreement to Procure Six Additional In- car Camera Systems and Maintain Patrol Operations During Fleet Replacement 8.3. Adopt a Resolution Authorizing Recordation of Affordable Housing Covenants on Four City-Owned Parcels 8.4. Appointment of Harjot Sangha as City Administrator Pro Tempore Pursuant to Gilroy City Charter Section 705 8.5. Claim of Jaime Perez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) 8.6. Approve the Second Amendment to the 17-Mile Construction Services Inc Contract for Improvements at 641 Old Gilroy Street (Jessup Property), Increasing the Contract Amount by $8,358 for a Total Contract Value of $226,058 8.7. Acceptance of a $120,766 Grant from the Department of California Highway Patrol Cannabis Tax Fund Grant Program for Driving Under the Influence Enforcement Activities and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2027 Budget Amendment Page 27 of 309 July 27, 2026 | 6:00 PM Page 6 of 7 City Council Regular Meeting 8.8. Approval of a Partnership with KABOOM! for the Replacement of the Hanna Playground at Las Animas Veterans Park 8.9. Adoption of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts 8.10. Approve the Fourth Amendment to the Agreement with Chrisp Company for On- Call Striping and Pavement Marking Services 8.11. Reduced Prima Facie Speed Limits on Specific Designated Streets Approaching School Zones to 25 Miles Per Hour 8.12. Approval of Policy on Public Comment and Meeting Decorum During City Council Meetings 9. BIDS AND PROPOSALS 9.1. Award a Three-Year Contract to Advanced Integration & Controls (AIC), with the Option to Extend for Two Additional One-Year Periods, for a Total Contract Amount of $450,000 for Water and Wastewater SCADA Controls System Integration and Support Request Services 1. Staff Report: Tyson Enzweiler, Utilities Operations Manager 2. Public Comment 3. Recommended Action: 1. Award a three-year contract to Advanced Integration & Controls (AIC) for a total amount not to exceed $450,000 with the option to extend two additional one-year terms for water and wastewater SCADA controls system integration and support request services; 2. Authorize the City Administrator to execute the contract and all associated documents; and 3. Authorize the City Administrator to execute up to two subsequent one- year contract amendments, subject to review and recommendation by the Utilities Director. 10. INTRODUCTION OF NEW BUSINESS 10.1. Approval of AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit Memoranda of Understanding and Related Salary Schedules for the Period of July 1, 2026 - June 30, 2029 1. Staff Report: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager. 2. Public Comment Page 28 of 309 July 27, 2026 | 6:00 PM Page 7 of 7 City Council Regular Meeting 3. Recommended Action: 1. Approve the Memoranda of Understanding with AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit for the period July 1, 2026–June 30, 2029. 2. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 General Unit. 3. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 Supervisory Unit. 4. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Confidential, Full-Time, Non- Exempt employees and Unrepresented, Hourly, Part- Time/Temporary/Seasonal employees. 11. CITY ADMINISTRATOR'S REPORTS 12. CITY ATTORNEY'S REPORTS 13. ADJOURNMENT Page 29 of 309 8.2. City of Gilroy STAFF REPORT Agenda Item Title: Approval of Amendment to Axon Fleet 3 Agreement to Procure Six Additional In-car Camera Systems and Maintain Patrol Operations During Fleet Replacement Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Police Submitted by: Brandon Sanchez, Police Chief Prepared by: Luke Powell, Police Captain STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION Authorize the City Administrator to execute an amendment to the existing Axon Enterprise, Inc. agreement for the purchase of six (6) additional Fleet 3 in-car camera systems at a total cost not to exceed $139,116.56 over a 94-month term and authorize annual expenditures of approximately $17,389.59 from the Police Department's operating budget. EXECUTIVE SUMMARY The Police Department is requesting approval to purchase six additional Axon Fleet 3 in-car camera systems to support the deployment of six replacement patrol vehicles while maintaining the Department's current patrol fleet in service. The original Axon agreement approved by the City Council in 2023 was based on the patrol fleet inventory known at that time and did not include contingency Fleet 3 systems for future vehicle replacement cycles, fleet expansion, or prolonged vehicle upfitting delays. As a result, the Department currently lacks sufficient Fleet 3 systems to simultaneously maintain existing patrol vehicles in service while outfitting newly purchased patrol vehicles. Approval of this request will ensure uninterrupted patrol operations, continued video Page 30 of 309 8.2. evidence collection, officer accountability, and public transparency while replacement patrol vehicles are prepared for deployment. BACKGROUND In June 2023, the City Council approved a comprehensive ten-year agreement with Axon Enterprise, Inc. for body-worn cameras, Fleet 3 in-car camera systems, conducted energy weapons (Tasers), and digital evidence management services. The number of Fleet 3 camera systems included in the original agreement was based on the Department's active patrol fleet and anticipated replacement schedule at that time. The agreement did not include contingency camera systems to accommodate future fleet growth, overlapping vehicle replacement cycles, extended vehicle upfitting timelines, or simultaneous operation of both outgoing and incoming patrol vehicles. Over the past several years, patrol vehicle procurement and emergency equipment installation timelines have increased significantly. Vehicle upfitting delays can now exceed six months from delivery to deployment. Additionally, delays associated with the upfitting of three new patrol vehicles created a temporary mismatch between available Fleet 3 camera systems and vehicles ready for deployment. Those vehicles are currently undergoing final upfitting and have not yet been placed into service. This experience highlighted an operational gap within the original agreement and demonstrated the need for additional Fleet 3 capacity to accommodate future vehicle replacement cycles and unforeseen deployment delays. ANALYSIS The Police Department is currently preparing six replacement patrol vehicles for deployment. Six additional Fleet 3 systems are being requested because each replacement patrol vehicle requires its own dedicated in-car camera system. The original Axon agreement did not include contingency Fleet 3 systems to support overlapping vehicle replacement cycles or extended upfitting delays. Under the current Axon agreement, all Fleet 3 camera systems are assigned to active patrol vehicles. Without additional Fleet 3 systems, the Department would be required to remove camera equipment from existing patrol vehicles and place those vehicles out of service while the equipment is transferred and installed into replacement vehicles. Given current upfitting timelines, this process could remove patrol vehicles from service for several months while replacement vehicles are equipped and prepared for deployment. Reducing the number of available patrol vehicles would impact operational readiness, limit deployment flexibility, and reduce the Department's ability to respond to Page 31 of 309 8.2. calls for service and special events. The purchase of six additional Fleet 3 systems will allow the Department to maintain all existing patrol vehicles in service while simultaneously outfitting six replacement patrol vehicles. Once deployed, the Department will have the flexibility necessary to manage future vehicle replacement cycles without impacting patrol operations or reducing fleet availability. The proposed purchase is not intended to expand the Department's in-car camera program beyond its current scope. Rather, it addresses an unforeseen operational need that was not contemplated in the original agreement and ensures continuity of patrol operations and evidence collection. ALTERNATIVES 1. Approve the proposed amendment and purchase six additional Fleet 3 systems. 2. Do not approve the amendment. If this option is selected, the Police Department will be required to remove Fleet 3 systems from existing patrol vehicles and place those vehicles out of service while equipment is transferred to replacement vehicles. This would reduce fleet availability and impact operational readiness. FISCAL IMPACT/FUNDING SOURCE The total cost of the proposed amendment is $139,116.56 over a 94-month term, including applicable taxes. Annual payments are approximately $17,389.59; Funding for this purchase is available within the Police Department's existing operating budget's anticipated savings and does not require an additional General Fund appropriation for the current fiscal year. Future fiscal years will be appropriated through budget development cycles over the term of the agreement. The agreement includes six Fleet 3 camera systems, installation services, software licensing, unlimited evidence storage, warranties, and future technology refreshes. PUBLIC OUTREACH This item relates to the administration of existing Police Department technology systems and does not require additional public outreach. NEXT STEPS Upon Council approval, the City Administrator will execute the agreement amendment Page 32 of 309 8.2. with Axon Enterprise, Inc. The Police Department will coordinate installation of the Fleet 3 systems into six replacement patrol vehicles and incorporate the equipment into existing operations. Attachments: 1. Axon Fleet 3 Quote Page 33 of 309 Page 1 Q-778968-46042KP Program Length 94 Months TOTAL COST $134,468.88 ESTIMATED TOTAL W/ TAX $139,116.56 Average Savings Per Year $7,813.18 TOTAL SAVINGS $61,203.24 Axon Enterprise, Inc. 17800 N 85th St Scottsdale, Arizona 85255 United States VAT: 86-0741227 Domestic:(800) 978-2737 International: +1.800.978.2737 Q-778968-46042KP Account Number: 112140 Payment Terms: N30 Mode of Delivery: UPS-GND Credit/Debit Amount: $0.00 Quote Summary Discount Summary Quote Expiration: 02/28/2026 Estimated Contract Start Date: 04/01/2026 Issued: 01/20/2026 SHIP TO BILL TO Gilroy Police Department - CA 7301 Hanna St Gilroy, CA 95020-6129 USA Gilroy Police Department - CA 7301 Hanna St Gilroy CA 95020-6129 USA Email: SALES REPRESENTATIVE PRIMARY CONTACT Kyle Panasewicz Bobby Griffith Phone: +1 4803294734 Phone: Email: kpanasewicz@axon.com Email: bgriffith@cityofgilroy.org Fax: (480) 905-2071 Fax: Page 34 of 309 Page 2 Q-778968-46042KP Payment Summary Date Subtotal Tax Total Mar 2026 $16,808.61 $580.98 $17,389.59 Jan 2027 $16,808.61 $580.98 $17,389.59 Jan 2028 $16,808.61 $580.98 $17,389.59 Jan 2029 $16,808.61 $580.98 $17,389.59 Jan 2030 $16,808.61 $580.98 $17,389.59 Jan 2031 $16,808.61 $580.98 $17,389.59 Jan 2032 $16,808.61 $580.98 $17,389.59 Jan 2033 $16,808.61 $580.82 $17,389.43 Total $134,468.88 $4,647.68 $139,116.56 Page 35 of 309 Page 3 Q-778968-46042KP Quote Unbundled Price: $195,664.20 Quote List Price: $151,316.88 Quote Subtotal: $134,468.88 Pricing All deliverables are detailed in Delivery Schedules section lower in proposal Delivery Schedule Hardware Bundle Item Description QTY Shipping Location Estimated Delivery Date Fleet 3 Advanced 10 Year 101675 AXON FLEET - ERICSSON CRADLEPOINT R980-5GD-A+5YR NETCLOUD 6 1 03/01/2026 Fleet 3 Advanced 10 Year 101924 AXON FLEET - TAOGLAS ANT - 7-IN-1 4CELL 2WIFI 1GNSS INT 6 1 03/01/2026 Fleet 3 Advanced 10 Year 70112 AXON SIGNAL - VEHICLE 6 1 03/01/2026 Fleet 3 Advanced 10 Year 72036 AXON FLEET 3 - STANDARD 2 CAMERA KIT 6 1 03/01/2026 Fleet 3 Advanced 10 Year 72040 AXON FLEET - TAP REFRESH 1 - 2 CAMERA KIT 6 1 01/01/2029 Fleet 3 Advanced 10 Year 100092 AXON FLEET - TAP REFRESH 2 - 2 CAMERA KIT 6 1 01/01/2034 Software Bundle Item Description QTY Estimated Start Date Estimated End Date Fleet 3 Advanced 10 Year 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 6 04/01/2026 01/31/2034 Fleet 3 Advanced 10 Year 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 6 04/01/2026 01/31/2034 Fleet 3 Advanced 10 Year 80402 AXON FLEET - LICENSE - REAL-TIME LOCATION, ALERTS, & LIVESTREAM 6 04/01/2026 01/31/2034 Fleet 3 Advanced 10 Year 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 12 04/01/2026 01/31/2034 Services Bundle Item Description QTY Fleet 3 Advanced 10 Year 100738 AXON FLEET 3 - SIM INSERTION - VZW 4FF 6 Fleet 3 Advanced 10 Year 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 6 Fleet 3 Advanced 10 Year 73392 AXON FLEET 3 - INSTALLATION - UPGRADE (PER VEHICLE) 6 Warranties Bundle Item Description QTY Estimated Start Date Estimated End Date Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 1 $108.00 $0.00 $0.00 $0.00 $0.00 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 94 $317.05 $238.42 $238.42 $134,468.88 $4,647.68 $139,116.56 Total $134,468.88 $4,647.68 $139,116.56 Page 36 of 309 Page 4 Q-778968-46042KP Warranties Bundle Item Description QTY Estimated Start Date Estimated End Date Fleet 3 Advanced 10 Year 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 6 03/01/2027 01/31/2034 Fleet 3 Advanced 10 Year 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 6 03/01/2027 01/31/2034 Page 37 of 309 Page 5 Q-778968-46042KP Shipping Locations Location Number Street City State Zip Country 1 7301 Hanna St Gilroy CA 95020-6129 USA Payment Details Mar 2026 Invoice Plan Item Description Qty Subtotal Tax Total Year 1 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 1 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2027 Invoice Plan Item Description Qty Subtotal Tax Total Year 2 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 2 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2028 Invoice Plan Item Description Qty Subtotal Tax Total Year 3 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 3 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2029 Invoice Plan Item Description Qty Subtotal Tax Total Year 4 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 4 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2030 Invoice Plan Item Description Qty Subtotal Tax Total Year 5 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 5 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2031 Invoice Plan Item Description Qty Subtotal Tax Total Year 6 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 6 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Page 38 of 309 Page 6 Q-778968-46042KP Jan 2032 Invoice Plan Item Description Qty Subtotal Tax Total Year 7 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 7 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.98 $17,389.59 Total $16,808.61 $580.98 $17,389.59 Jan 2033 Invoice Plan Item Description Qty Subtotal Tax Total Year 8 80462 TRUE UP - FLEET 3 ADVANCED WITH TAP 156 $0.00 $0.00 $0.00 Year 8 Fleet3A10Yr Fleet 3 Advanced 10 Year 6 $16,808.61 $580.82 $17,389.43 Total $16,808.61 $580.82 $17,389.43 Page 39 of 309 Page 7 Q-778968-46042KP Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing. Standard Terms and Conditions Axon Enterprise Inc. Sales Terms and Conditions Axon Master Services and Purchasing Agreement: This Quote is governed by the Master Services and Purchasing Agreement between Gilroy Police Department and Axon Enterprise, Inc. dated June 21, 2023, as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below. ACEIP: The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program. Acceptance of Terms: Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. Page 40 of 309 Page 8 Q-778968-46042KP Signature Date Signed 1/20/2026 Page 41 of 309 1 FLEET STATEMENT OF WORK BETWEEN AXON ENTERPRISE AND AGENCY Introduction This Statement of Work (“SOW”) has been made and entered into by and between Axon Enterprise, Inc. (“AXON”), and Gilroy Police Department - CA the (“AGENCY”) for the purchase of the Axon Fleet in-car video solution (“FLEET”) and its supporting information, services and training. (AXON Technical Project Manager/The AXON installer) Purpose and Intent AGENCY states, and AXON understands and agrees, that Agency’s purpose and intent for entering into this SOW is for the AGENCY to obtain from AXON deliverables, which used solely in conjunction with AGENCY’s existing systems and equipment, which AGENCY specifically agrees to purchase or provide pursuant to the terms of this SOW. This SOW contains the entire agreement between the parties. There are no promises, agreements, conditions, inducements, warranties or understandings, written or oral, expressed or implied, between the parties, other than as set forth or referenced in the SOW. Acceptance Upon completion of the services outlined in this SOW, AGENCY will be provided a professional services acceptance form (“Acceptance Form”). AGENCY will sign the Acceptance Form acknowledging that services have been completed in substantial conformance with this SOW and the Agreement. If AGENCY reasonably believes AXON did not complete the professional services in conformance with this SOW, AGENCY must notify AXON in writing of the specific reasons within seven (7) calendar days from delivery of the Acceptance Form. AXON will remedy the issues to conform with this SOW and re-present the Acceptance Form for signature. If AXON does not receive the signed Acceptance Form or written notification of the reasons for rejection within 7 calendar days of the delivery of the Acceptance Form, AGENCY will be deemed to have accepted the services in accordance to this SOW. Force Majeure Page 42 of 309 2 Neither party hereto shall be liable for delays or failure to perform with respect to this SOW due to causes beyond the party’s reasonable control and not avoidable by diligence. Schedule Change Each party shall notify the other as soon as possible regarding any changes to agreed upon dates and times of Axon Fleet in-car Solution installation to be performed pursuant of this Statement of Work. Axon Fleet Deliverables Typically, within (30) days of receiving this fully executed SOW, an AXON Technical Project Manager will deliver to AGENCY’s primary point of contact via electronic media, controlled documentation, guides, instructions and videos followed by available dates for the initial project review and customer readiness validation. Unless otherwise agreed upon by AXON, AGENCY may print and reproduce said documents for use by its employees only. Security Clearance and Access Upon AGENCY’s request, AXON will provide the AGENCY a list of AXON employees, agents, installers or representatives which require access to the AGENCY’s facilities in order to perform Work pursuant of this Statement of Work. AXON will ensure that each employee, agent or representative has been informed or and consented to a criminal background investigation by AGENCY for the purposes of being allowed access to AGENCY‘s facilities. AGENCY is responsible for providing AXON with all required instructions and documentation accompanying the security background check’s requirements. Training AXON will provide training applicable to Axon Evidence, Cradlepoint NetCloud Manager and Axon Fleet application in a train-the-trainer style method unless otherwise agreed upon between the AGENCY and AXON. Local Computer Page 43 of 309 3 AGNECY is responsible for providing a mobile data computer (MDC) with the same software, hardware, and configuration that AGENCY personnel will use with the AXON system being installed. AGENCY is responsible for making certain that any and all security settings (port openings, firewall settings, antivirus software, virtual private network, routing, etc.) are made prior to the installation, configuration and testing of the aforementioned deliverables. Network AGENCY is responsible for making certain that any and all network(s) route traffic to appropriate endpoints and AXON is not liable for network breach, data interception, or loss of data due to misconfigured firewall settings or virus infection, except to the extent that such virus or infection is caused, in whole or in part, by defects in the deliverables. Cradlepoint Router When applicable, AGENCY must provide AXON Installers with temporary administrative access to Cradlepoint’s NetCloud Manager to the extent necessary to perform Work pursuant of this Statement of Work. Evidence.com AGENCY must provide AXON Installers with temporary administrative access to Axon Evidence.com to the extent necessary to perform Work pursuant of this SOW. Wireless Upload System If purchased by the AGENCY, on such dates and times mutually agreed upon by the parties, AXON will install and configure into AGENCY’s existing network a wireless network infrastructure as identified in the AGENCY’s binding quote based on conditions of the sale. VEHICLE INSTALLATION Preparedness Page 44 of 309 4 On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer less weapons and items of evidence. Vehicle(s) will be deemed ‘out of service’ to the extent necessary to perform Work pursuant of this SOW. Existing Mobile Video Camera System Removal On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer which will remove from said vehicles all components of the existing mobile video camera system unless otherwise agreed upon by the AGENCY. Major components will be salvaged by the AXON Installer for auction by the AGENCY. Wires and cables are not considered expendable and will not be salvaged. Salvaged components will be placed in a designated area by the AGENCY within close proximity of the vehicle in an accessible work space. Prior to removing the existing mobile video camera systems, it is both the responsibility of the AGENCY and the AXON Installer to test the vehicle’s systems’ operation to identify and operate, documenting any existing component or system failures and in detail, identify which components of the existing mobile video camera system will be removed by the AXON Installer. In-Car Hardware/Software Delivery and Installation On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer, who will install and configure in each vehicle in accordance with the specifications detailed in the system’s installation manual and its relevant addendum(s). Applicable in-car hardware will be installed and configured as defined and validated by the AGENCY during the pre-deployment discovery process. If a specified vehicle is unavailable on the date and time agreed upon by the parties, AGENCY will provide a similar vehicle for the installation process. Delays due to a vehicle, or substitute vehicle, not being available at agreed upon dates and times may results in additional fees to the AGENCY. If the AXON Installer determines that a vehicle is not properly prepared for installation (“Not Fleet Ready”), such as a battery not being properly charged or properly up-fit for in-service, field operations, the issue shall be reported immediately to the AGENCY for resolution and a date and time for the future installation shall be agreed upon by the parties. Page 45 of 309 5 Upon completion of installation and configuration, AXON will systematically test all installed and configured in-car hardware and software to ensure that ALL functions of the hardware and software are fully operational and that any deficiencies are corrected unless otherwise agreed upon by the AGENCY, installation, configuration, test and the correct of any deficiencies will be completed in each vehicle accepted for installation. Prior to installing the Axon Fleet camera systems, it is both the responsibility of the AGENCY and the AXON Installer to test the vehicle’s existing systems’ operation to identify, document any existing component or vehicle systems’ failures. Prior to any vehicle up-fitting the AXON Installer will introduce the system’s components, basic functions, integrations and systems overview along with reference to AXON approved, AGENCY manuals, guides, portals and videos. It is both the responsibility of the AGENCY and the AXON Installer to agree on placement of each components, the antenna(s), integration recording trigger sources and customer preferred power, ground and ignition sources prior to permanent or temporary installation of an Axon Fleet camera solution in each vehicle type. Agreed placement will be documented by the AXON Installer. AXON welcomes up to 5 persons per system operation training session per day, and unless otherwise agreed upon by the AGENCY, the first vehicle will be used for an installation training demonstration. The second vehicle will be used for an assisted installation training demonstration. The installation training session is customary to any AXON Fleet installation service regardless of who performs the continued Axon Fleet system installations. Page 46 of 309 6 The customary training session does not ‘certify’ a non-AXON Installer, customer-employed Installer or customer 3rd party Installer, since the AXON Fleet products does not offer an Installer certification program. Any work performed by non-AXON Installer, customer-employed Installer or customer 3rd party Installer is not warrantied by AXON, and AXON is not liable for any damage to the vehicle and its existing systems and AXON Fleet hardware. Page 47 of 309 8.3. City of Gilroy STAFF REPORT Agenda Item Title: Adopt a Resolution Authorizing Recordation of Affordable Housing Covenants on Four City-Owned Parcels Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Economic Development Submitted by: Raissa de la Rosa, Economic Development Director Prepared by: Raissa de la Rosa, Economic Development Director STRATEGIC PLAN GOALS: Promote Economic Development Activities RECOMMENDATION Adopt a resolution authorizing the recordation of affordable housing covenants or restrictions on four City-owned parcels previously declared surplus through the California Surplus Land Act process. EXECUTIVE SUMMARY Under the California Surplus Land Act (SLA), cities must record affordable housing covenants or restrictions on declared surplus properties after completing the required Notice of Availability and good-faith negotiation process with eligible affordable housing entities. Gilroy issued its Notice of Availability on December 1, 2025, and engaged in the statutory 90-day negotiation period. Consistent with Council direction to seek fair market value and uphold fiscal responsibilities, the parties did not reach agreement on price or terms within that timeframe. With the negotiation period now concluded, and no agreement executed, the SLA requires the recording of affordable housing covenants or restrictions to finalize compliance and allow the City to proceed with any future disposition actions. BACKGROUND Page 48 of 309 8.3. In accordance with the California Surplus Land Act (SLA), the City of Gilroy initiated the required procedures for the disposition of four City-owned properties previously declared surplus. The subject parcels are APN 841-06-001 (7491 Railroad Street), APN 841-04-020 (7780 Monterey Road), APN 799-15-027 (7289 Rosanna Street), and APN 799-15-026 (7351 Rosanna Street). The SLA establishes specific steps that local agencies must follow before disposing of surplus property, including issuing a Notice of Availability (NOA) to eligible affordable housing developers, public agencies, and other qualifying entities; engaging in good-faith negotiations for a minimum 90-day period; and, when applicable, recording affordability covenants or restrictions to ensure compliance with State housing requirements. On December 1, 2025, the City issued the required NOA for the four parcels and subsequently engaged in good-faith negotiations with eligible respondents, consistent with Government Code Section 54223. Per prior City Council direction, staff was required to negotiate towards a sale at fair market value to ensure compliance with State law and uphold the City’s fiscal responsibilities. During the statutory 90-day negotiation window, the parties were unable to reach agreement on price or terms. As a result, the negotiation period concluded without an executed agreement, thereby completing the SLA negotiation process for these properties. With the statutory process finalized, and no qualifying transaction executed, the SLA requires the City to record affordable housing covenants or restrictions on the properties prior to taking any future disposition actions. Recording these restrictions ensures compliance with State law and maintains the required affordability obligations associated with the prior surplus property process. ANALYSIS The California Surplus Land Act (SLA) requires local agencies to record affordability covenants or restrictions when the negotiation period with eligible affordable-housing entities concludes without an executed agreement. Because Gilroy completed the SLA dictated steps and processes and did not reach agreement on price or terms, recording these covenants is now the next mandatory step to finalize SLA compliance. The required covenant establishes baseline affordability obligations for any future development on the surplus parcels. Specifically, if ten or more residential units are developed, at least 15 percent must be affordable to lower-income households, with affordability maintained for 55 years for rental units and 45 years for ownership units. Ownership units must be initially occupied by lower-income households and include an equity-sharing agreement consistent with Government Code Section 65915(c)(2). These requirements run with the land and are enforceable against current and future Page 49 of 309 8.3. property owners as specified in Government Code Section 54222.5. Recording the covenants ensures the City meets its obligations under State law, provides clear expectations for any future developer or purchaser, and positions the City to proceed with subsequent disposition actions while maintaining compliance with the SLA. ALTERNATIVES Under the Surplus Land Act, there are no alternatives to concluding the process when no agreement with qualifying developers were reached. FISCAL IMPACT/FUNDING SOURCE There are no direct or immediate fiscal impacts associated with this action. PUBLIC OUTREACH A Notice of Availability was issued on December 1, 2025, to eligible affordable housing developers, public agencies, and other qualifying entities. This was the extent of the public outreach as required under the Surplus Land Act. NEXT STEPS None. Attachments: 1. 26-0727 - SLA Affordability Covenants - Resolution 2. Exh A - SLA - Covenant for Affordable Housing - 7491 Railroad St 3. Exh B - SLA - Covenant for Affordable Housing - 7780 Monterey Road 4. Exh C - SLA - Covenant for Affordable Housing - 7289 Rosanna Street 5. Exh D - SLA - Covenant for Affordable Housing - 7351 Rosanna St Page 50 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING THE RECORDATION OF AFFORDABLE HOUSING COVENANTS OR RESTRICTIONS ON FOUR CITY-OWNED PARCELS PREVIOUSLY DECLARED SURPLUS PURSUANT TO THE CALIFORNIA SURPLUS LAND ACT WHEREAS, the City of Gilroy previously declared four City-owned parcels as surplus land in compliance with the California Surplus Land Act (SLA), including APN 841-06-001 located at 7491 Railroad Street, APN 841-04-020 located at 7780 Monterey Road, APN 799-15-027 located at 7289 Rosanna Street, and APN 799-15-026 located at 7351 Rosanna Street (collectively, “the Properties”); and WHEREAS, the SLA establishes mandatory procedures that local agencies must follow prior to disposing of surplus property, including issuing a Notice of Availability (NOA) to eligible entities, conducting good faith negotiations for not less than 90 days with qualified respondents, and, when applicable, recording affordable housing covenants or restrictions to satisfy State housing requirements; and WHEREAS, on December 1, 2025, the City issued the required NOA for the Properties and subsequently engaged in good faith negotiations with eligible affordable housing developers and public agencies as required by Government Code Section 54223; and WHEREAS, consistent with prior City Council direction, staff negotiated toward a sale at fair market value to ensure compliance with State law and uphold the City’s fiscal responsibilities, but the parties were unable to reach agreement on price or terms during the statutory 90-day negotiation period; and WHEREAS, the required negotiation period concluded without an executed agreement, thereby completing the SLA negotiation process for the Properties; and WHEREAS, pursuant to Government Code Section 54222.5, when the SLA negotiation process concludes without a qualifying transaction, the City is required to record affordable housing covenants or restrictions on the surplus property prior to taking any future disposition action; and WHEREAS, the required covenant establishes baseline affordability obligations for any future development of ten or more residential units on the Properties, including the requirement that at least 15 percent of such units be affordable to lower income households, with affordability maintained for 55 years for rental units and 45 years for ownership units, and requiring ownership units to be initially occupied by lower income households and to include an equity sharing agreement consistent with Government Code Section 65915(c)(2); and WHEREAS, these affordability requirements run with the land and are enforceable against current and future property owners pursuant to Government Code Section 54222.5; and Page 51 of 309 Resolution No. 2026-XX Short Title City Council Regular Meeting | Date Page 2 of 3 WHEREAS, the recordation of these covenants ensures the City’s continued compliance with State law and provides clear expectations for any future purchaser or developer regarding the affordability obligations applicable to the Properties. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy hereby authorizes and directs the City Administrator, or designee, to record affordable housing covenants or restrictions on the following City-owned surplus parcels: • APN 841-06-001 (7491 Railroad Street) • APN 841-04-020 (7780 Monterey Road) • APN 799-15-027 (7289 Rosanna Street) • APN 799-15-026 (7351 Rosanna Street) BE IT FURTHER RESOLVED that the covenants or restrictions, attached hereto as Exhibits A through D, shall include the affordability obligations required under the California Surplus Land Act, including but not limited to the requirement that any future residential development of ten or more units reserve at least 15 percent of units for lower income households, that rental units remain affordable for a minimum of 55 years, that ownership units remain affordable for a minimum of 45 years, and that ownership units include an equity sharing agreement consistent with State law. BE IT FURTHER RESOLVED that upon recordation of said covenants or restrictions, City staff is authorized to proceed with any subsequent disposition actions for the Properties in full compliance with the Surplus Land Act and all other applicable laws. PASSED AND ADOPTED this 27th day of July 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: ___________________ Greg Bozzo, Mayor ATTEST: _______________________ Page 52 of 309 Resolution No. 2026-XX Short Title City Council Regular Meeting | Date Page 3 of 3 Kim Mancera, City Clerk 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 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 53 of 309 City of Gilroy 7351 Rosanna Street Gilroy, California 95020-6197 Telephone (408) 846-0219 http://www.cityofgilroy.org Matt Morley City Administrator Covenant or Restriction to be Recorded (per Government Code Section 54233) 7491 Railroad Street, Gilroy, CA 95020 If ten (10) or more residential units are developed on 7491 Railroad Street, Gilroy, CA 95020, a Cannery/Downtown District zoned commercial site (Parcel ID 7843; APN 841-06-001), not less than 15 percent (15%) of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. These units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all such ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in- interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code. By: ____________________________ Matt Morley, City Administrator City of Gilroy Date: July 27, 2026 Page 54 of 309 City of Gilroy 7351 Rosanna Street Gilroy, California 95020-6197 Telephone (408) 846-0219 http://www.cityofgilroy.org Matt Morley City Administrator Covenant or Restriction to be Recorded (per Government Code Section 54233) 7780 Monterey Street, Gilroy, CA 95020 If ten (10) or more residential units are developed on 7780 Monterey Street, Gilroy, CA 95020, a Downtown Extension District zoned commercial and public facility well site property (Parcel ID 6317; APN 841-04-020), not less than 15 percent (15%) of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. These units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all such ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in- interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code. By: ____________________________ Matt Morley, City Administrator City of Gilroy Date: July 27, 2026 Page 55 of 309 City of Gilroy 7351 Rosanna Street Gilroy, California 95020-6197 Telephone (408) 846-0219 http://www.cityofgilroy.org Matt Morley City Administrator Covenant or Restriction to be Recorded (per Government Code Section 54233) 7289 Rosanna Street, Gilroy, CA 95020 If ten (10) or more residential units are developed on the public facility parcel identified as APN 799-15-027 at 7289 Rosanna Street, Gilroy, CA 95020 (Parcel ID 9459), not less than 15 percent (15%) of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. These units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all such ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in- interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code. By: ____________________________ Matt Morley, City Administrator City of Gilroy Date: July 27, 2026 Page 56 of 309 City of Gilroy 7351 Rosanna Street Gilroy, California 95020-6197 Telephone (408) 846-0219 http://www.cityofgilroy.org Matt Morley City Administrator Covenant or Restriction to be Recorded (per Government Code Section 54233) 7 351 Rosanna Street, Gilroy, CA 95020 If ten (10) or more residential units are developed on the public facility parcel identified as APN 799-15-026 at 7351 Rosanna Street, Gilroy, CA 95020 (Parcel ID 8807), not less than 15 percent (15%) of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. These units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all such ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in- interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code. By: ____________________________ Matt Morley, City Administrator City of Gilroy Date: July 27, 2026 Page 57 of 309 8.4. City of Gilroy STAFF REPORT Agenda Item Title: Appointment of Harjot Sangha as City Administrator Pro Tempore Pursuant to Gilroy City Charter Section 705 Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Human Resources/Risk Management Submitted by: Matt Morley, City Administrator Prepared by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager. STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Appoint Harjot Sangha as City Administrator Pro Tempore. EXECUTIVE SUMMARY Gilroy City Charter Section 705 indicates that the City Administrator shall recommend a department head to serve as City Administrator Pro Tempore during the temporary absence or disability of the City Administrator. BACKGROUND Consistent with the Gilroy City Charter, the City Administrator shall recommend one of the other officers or department heads of the City to serve as City Administrator Pro Tempore during the temporary absence or disability of the City Administrator. City Administrator Matt Morley is recommending that Assistant City Administrator Harjot Sangha be appointed to serve as City Administrator Pro Tempore when needed. Gilroy City Charter Section 705 is noted below: Section 705. City Administrator Pro Tempore. Page 58 of 309 8.4. The City Administrator shall appoint, subject to the approval of the Council, one of the other officers or department heads of the City to serve as City Administrator Pro Tempore during the temporary absence or disability of the City Administrator. If the City Administrator fails to make such an appointment, the Council shall designate an officer of the City to serve as City Administrator Pro Tempore during the absence or disability of the City Administrator. ANALYSIS n/a ALTERNATIVES No other alternative is recommended. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact associated with this recommendation. PUBLIC OUTREACH n/a NEXT STEPS n/a Attachments: None Page 59 of 309 8.5. City of Gilroy STAFF REPORT Agenda Item Title: Claim of Jaime Perez (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) Meeting Date: July 27, 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 the 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 July 27, 2026 meeting: • Claim of Jaime Perez BACKGROUND n/a Page 60 of 309 8.5. ANALYSIS n/a ALTERNATIVES n/a FISCAL IMPACT/FUNDING SOURCE n/a PUBLIC OUTREACH n/a NEXT STEPS n/a Attachments: 1. Claim of Jaime Perez Page 61 of 309 Page 62 of 309 Page 63 of 309 Page 64 of 309 Page 65 of 309 8.6. City of Gilroy STAFF REPORT Agenda Item Title: Approve the Second Amendment to the 17-Mile Construction Services Inc Contract for Improvements at 641 Old Gilroy Street (Jessup Property), Increasing the Contract Amount by $8,358 for a Total Contract Value of $226,058 Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Public Utilities Submitted by: Izabela Cirloganu, Sr. Management Analyst Prepared by: Izabela Cirloganu, Sr. Management Analyst STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION 1. Approve the Second Amendment to the 17-Mile Construction Services, Inc. Contract for Tenant Improvements at 641 Old Gilroy St (Jessup Property), authorizing a total contract amount of up to $226,058. 2. Authorize the City Administrator to execute the amendment. EXECUTIVE SUMMARY The City purchased the property at 641 Old Gilroy St (Jessup Property) to relocate the Utilities Department Operations team. Following a competitive procurement process, the City awarded the construction contract for tenant improvement to 17 Mile Construction on April 20, 2026. The original project budget included a construction contract of $198,900 and a contingency of up to $19,100, for a total authorized budget of $218,000. Total projects costs to date are $217,700. Staff is requesting approval of a contract amendment in the amount of $8,358 to complete the work, resulting in a total contract amount of $226,058. Page 66 of 309 8.6. BACKGROUND Shortly after construction began, previously concealed conditions required modifications to the original contract. Extensive dry rot was identified in the exterior siding adjacent to the building entrance, requiring additional repair and replacement beyond what was anticipated during project planning. In addition, several improvements not included in the original scope of work, were incorporated into the project. These improvements included constructing a partition to create a dedicated water sample storage room, improving the functionality and organization of the facility. The total cost of the additional work was $18,800, which was fully funded using the project contingency previously authorized by the City Council. As the project approaches completion, staff identified several additional items that are necessary to complete the project. The total cost of this work is $8,358. The additional work includes: 1. Resurface and apply an additional coat of high-performance epoxy flooring in the locker room to improve durability and the long-term performance of the flooring system. 2. Install an outdoor utility sink, including new plumbing connections, and clean the existing drain lines to provide a dedicated location for a future water station. 3. Replace damaged ceiling tiles and perform caulking, sanding, and painting to complete the interior finishes. ANALYSIS N/A ALTERNATIVES The City Council could determine not to approve the amendment. Staff does not recommend this option as the contractor is already mobilized on site, the additional work is directly related to the existing project, and the amendment represents a relatively minor increase to the original contract amount. The tenant improvement project is expected to be complete upon completion of the work included in this amendment, and no additional work is anticipated. FISCAL IMPACT/FUNDING SOURCE Staff recommends increasing the contract by $8,358, resulting in a total contract amount of $226,058. This cost will be funded utilizing the existing previously approved Page 67 of 309 8.6. contingency balance of $300 ($19,100-$18,800), with the remaining balance of $8,058 as requested in the staff report being shared equally between Water and Wastewater Operations budgets. There is no increase in appropriations being requested as part of this staff report, as the minor additional amounts can be absorbed within existing appropriations. PUBLIC OUTREACH N/A NEXT STEPS Route the Second Amendment for the required internal signatures. Attachments: 1. Second Amendment_ContractorSigned Page 68 of 309 -1- 4845-8215-5540v1 MDOLINGER\04706083 SECOND AMENDMENT TO CONTRACT WITH 17 MILE CONSTRUCTION SERVICES, INC. WHEREAS, the City of Gilroy, a municipal corporation (“City”), and 17 Mile Construction Services, Inc. entered into that certain agreement entitled “Agreement for Services”, effective on May 1st, 2026, hereinafter referred to as “Original Agreement”; and WHEREAS, City and 17 Mile Construction Services Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. Article 4. Compensation of the Original Agreement shall be amended to read as follows: “In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (Payment Schedule). In no event, however, shall the total compensation paid to the CONTRACTOR exceed $226,058 (two hundred twenty-six thousand and fifty-eight dollars) for the entire duration of the contract. 2. Exhibit “B” Scope of Work for the Tenant Improvement at 641 Old Gilroy St, should be amended to include additional tasks, as follows: i. Resurface and apply an additional coat of high-performance epoxy flooring in the locker room to improve durability, and the long-term performance of the flooring system. ii. Install an outdoor utility sink, including new plumbing connections, and clean the existing drain lines to provide a dedicated location for a future water station iii. Replace damaged ceiling tiles and perform caulking, sanding, and painting to complete the interior finishes and address deficiencies. 3. This Amendment shall be effective on July 6, 2026. 4. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 5. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF GILROY By: By: Matt Morley Matt Carley Docusign Envelope ID: 8C111B2A-3D30-8113-827B-C825E4ADF037 Page 69 of 309 -2- 4845-8215-5540v1 MDOLINGER\04706083 City Administrator Vice President, Managing Partner Date: Date: Approved as to Form ATTEST: City Attorney City Clerk Docusign Envelope ID: 8C111B2A-3D30-8113-827B-C825E4ADF037 7/13/2026 Page 70 of 309 8.7. City of Gilroy STAFF REPORT Agenda Item Title: Acceptance of a $120,766 Grant from the Department of California Highway Patrol Cannabis Tax Fund Grant Program for Driving Under the Influence Enforcement Activities and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2027 Budget Amendment Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Police Submitted by: Brandon Sanchez, Police Chief Prepared by: Patricia Vigil, Management Analyst STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization RECOMMENDATION 1. Accept the Department of California Highway Patrol Cannabis Tax Fund Grant Program award for $120,766; and 2. Adopt a resolution amending the Fiscal Year 2027 budget to appropriate the grant funds into the Police Department Special Grants Fund. EXECUTIVE SUMMARY The Gilroy Police Department (GPD) has been awarded a $120,766 grant through the Department of California Highway Patrol Cannabis Tax Fund Grant Program (CTFGP), made possible by Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act. This grant supports education, prevention, and enforcement related to impaired driving. The funding will be used for DUI-specific enforcement equipment, officer training, saturation patrol operations, and public outreach. City Council approval is required to formally accept the grant and amend the Fiscal Year 2027 budget to appropriate the funds. Page 71 of 309 8.7. BACKGROUND Proposition 64, passed by California voters in 2016, mandates that a portion of cannabis tax revenues be used to mitigate the impacts of marijuana legalization, including impaired driving. The California Highway Patrol administers the Cannabis Tax Fund Grant Program (CTFGP) to support local governments in achieving this goal. The CTFGP aims to reduce impaired driving crashes, enhance public education regarding the dangers of drug and alcohol impaired driving, and improve roadway safety across California. In June 2026, GPD was notified of its successful grant award in the amount of $120,766. The grant term runs from July 1, 2026, through June 30, 2027, and operates on a reimbursement basis. ANALYSIS The Gilroy Police Department (GPD) maintains a dedicated Traffic Unit comprised of three full-time motorcycle officers and one supervising sergeant. This team works to reduce fatal and injury collisions through enforcement, education, and collaboration with the City’s Engineering Division to address hazardous roadway conditions. From January 2021 through December 2024, alcohol-involved injury collisions have continued to rise, underscoring the need for sustained and focused enforcement efforts. In response, the Department remains committed to enhancing DUI enforcement by training officers as Drug Recognition Experts (DREs), ensuring they are equipped to identify and address drug-impaired driving more effectively. Grant funding from the CTFGP provides an opportunity to expand DUI enforcement efforts through equipment purchases, training, and community outreach. The funding will support: • A DUI police motorcycle and upfitting to replace aging equipment and allow deployment of up to five motorcycle officers with prior Traffic Unit experience. Motorcycles are critical to saturation patrols due to their agility in traffic, ability to operate in areas inaccessible to patrol vehicles, and value in covert enforcement scenarios. • Funding for officer overtime during DUI saturation patrols, Drug Recognition Expert (DRE) training, travel, and community outreach initiatives aimed at educating the public about the risks and consequences of impaired driving. These resources are not just enhancements; they are essential to ensuring that DUI operations are conducted safely, efficiently, and in a manner that reflects best practices in traffic enforcement. DUI checkpoints are inherently high-risk operations involving traffic congestion, impaired drivers, and the need for rapid situational response. This equipment and training will enhance officer safety, improve detection and deterrence, and ultimately reduce impaired driving-related injuries and fatalities in Gilroy. Page 72 of 309 8.7. ALTERNATIVES The City Council may choose not to approve the acceptance or appropriation of the CHP grant funds. Staff does not recommend this option, as it would require identifying alternative funding sources or reducing the scope and frequency of DUI saturation patrols and public education efforts. This would limit the Department’s ability to proactively address impaired driving risks in the community. FISCAL IMPACT/FUNDING SOURCE $120,766 in expenditures are proposed with offsetting revenue. The expenditures and grant revenue will be appropriated in a separately established Police Department California Highway Patrol Cannabis Grant Fund. PUBLIC OUTREACH The Police Department will implement a public engagement campaign via social media and community channels prior to each DUI saturation event. This outreach will include educational messaging about impaired driving risks, event transparency, and grant program funding acknowledgment, reinforcing community trust and awareness. NEXT STEPS N/A Attachments: 1. 07.27.26 CHP Cannabis Resolution 2. FY26-27 CTFGP Grant Agreement 30916 - Gilroy PD 3. FY26-27 CTFGP Intent to Award - Gilroy PD Page 73 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE BUDGET FOR THE CITY OF GILROY FOR FISCAL YEAR 2026-2027 IN THE POLICE DEPARTMENT GRANTS FUND AND APPROPRIATING PROPOSED EXPENDITURE AMENDEMENTS. 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 2026-2027 for the City of Gilroy in the staff report dated July 27, 2026, for the Police Departments Grants Fund, appropriating funding received from the Department of California Highway Patrol, Cannabis Tax Fund Grant Program; 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 revenue and expenditure appropriations in the Police Department Grants Fund, Fund 225, is hereby increased by $120,766 for Fiscal Year 2026-2027. PASSED AND ADOPTED this 27th day of July 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Page 74 of 309 Resolution No. 2026-XX Approve CHP Grant $120,766 City Council Regular Meeting | July 27, 2026 Page 2 of 2 ___________________ Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk 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 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 75 of 309 State of California DEPARTMENT OF CALIFORNIA HIGHWAY PATROL GRANT AGREEMENT - Page 1 Award Number 30916 ________________________________________________________________ 1. GRANT TITLE FY26/27 CTFGP Law Enforcement - Gilroy Police Department 2. NAME OF ORGANIZATION/AGENCY Gilroy Police Department 3. ORGANIZATION/AGENCY SECTION TO ADMINISTER GRANT City of Gilroy 4. PROJECT PERFORMANCE PERIOD From: 07/01/2026 To: 06/30/2027 5. PURCHASE ORDER NUMBER 6. GRANT OPPORTUNITY INFORMATION DESCRIPTION Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products. The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency’s effectiveness through training and development of new strategies. 7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $120,766.00 8. TERMS AND CONDITIONS The Grantee agrees to complete the Project, as described in the Project Description. The Grantee’s Grant Application, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00-1890.27, are hereby incorporated into this Grant Agreement by reference. The parties hereto agree to comply with the Terms and Conditions of the following attachments: • Schedule A – Project Description, Problem Statement, Goals and Objectives, and Method of Procedure • Schedule B – Detailed Budget Estimate • Schedule B-1 – Budget Narrative We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above-described Grant Terms and Conditions. IN WITNESS WHEREOF, this Grant Agreement is executed by the parties hereto. 9. APPROVAL SIGNATURES A. AUTHORIZED OFFICIAL OF ORGANIZATION/AGENCY Name: Brandon Sanchez Title: Police Chief Phone: (408) 846-0300 Address: 7301 Hanna Street Gilroy, CA 95020 E-Mail: brandon.sanchez@cityofgilroy.org ___________________________ _______________ (Signature) (Date) B. AUTHORIZED OFFICIAL OF CHP Name: Elliotte Johnson Phone: (916) 843-4360 Title: Captain Fax: (916) 322-3169 Address: 601 North 7th Street Sacramento, CA 95811 E-Mail: ElJohnson@chp.ca.gov ___________________________ _______________ (Signature) (Date) C. ACCOUNTING OFFICER OF CHP Name: M. V. Fojas Phone: (916) 843-3531 Title: Commander Fax: (916) 322-3159 Address: 601 North 7th Street Sacramento, CA 95811 E-Mail: Michelle.Fojas@chp.ca.gov ___________________________ _______________ (Signature) (Date) 10. AUTHORIZED FINANCIAL CONTACT TO RECEIVE REIMBURSEMENT PAYMENTS Name: Cindy Murphy Title: Finance Director Phone: (408)846-0300 Address: 7351 Rosanna Street Gilroy, CA 95020 Page 76 of 309 TERMS AND CONDITIONS Grantee shall comply with the California Code of Regulations, Title 13, Division 2, Chapter 13 Section 1890, et seq. and all other Terms and Conditions noted in this Grant Agreement. Failure by the Grantee to comply may result in the termination of this Grant Agreement by the California Highway Patrol (hereafter referred to as State). The State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated. A. EXECUTION 1. The State (the California Highway Patrol) hereby awards, to the Grantee, the sum of money stated on page one of this Grant Agreement. This funding is awarded to the Grantee to carry out the Project set forth in the Project Description and the terms and conditions set forth in this Grant Agreement. 2. The funding for this Grant Agreement is allocated pursuant to California Revenue and Taxation Code Section 34019(f)(3)(B). The Grantee agrees that the State’s obligation to pay any sum under this Grant Agreement is contingent upon availability of funds disbursed from the California Cannabis Tax Fund to the State. If there is insufficient funding, the State shall have the option to either: 1) terminate this Grant Agreement; whereby, no party shall have any further obligations or liabilities under this Grant Agreement, or 2) negotiate a Grant Agreement Amendment to reduce the grant award and scope of work to be provided under this Grant Agreement. 3. The Grantee is not to commence or proceed with any work in advance of receiving notice that the Grant Agreement is approved. Any work performed by the Grantee in advance of the date of approval by the State shall be deemed volunteer work and will not be reimbursed by the State. 4. The Grantee agrees to provide any additional funding, beyond what the State has agreed to provide, pursuant to this Grant Agreement, and necessary to complete or carry out the Project, as described in this Grant Agreement. Any modification or alteration of this Grant Agreement, as set forth in the Grant Application submitted by the Grantee and on file with the State, must be submitted in writing thirty (30) calendar days in advance to the State for approval. 5. The Grantee agrees to complete the Project within the timeframe indicated in the Project Performance Period, which is on page one of this Grant Agreement. B. PROJECT ADMINISTRATION 1. The Grantee shall submit all reimbursements, progress, performance, and/or other required reports concerning the status of work performed in furtherance of this Grant Agreement on a quarterly basis, or as requested by the State. 2. The Grantee shall provide the State with a final report showing all Project expenditures, which includes all State and any other Project funding expended, within sixty (60) calendar days after completion of this Grant Agreement. 3. The Grantee shall ensure all equipment which is purchased, maintained, operated, and/or developed is available for inspection by the State. 4. Equipment purchased through this Grant Agreement shall be used for the education, prevention, and enforcement of impaired driving laws, unless the Grantee is funding a portion of the purchased price not dedicated to impaired driving and that portion is not part of the Project costs. Equipment purchased under this Grant Agreement must only be used for approved Project- related purposes, unless otherwise approved by the State in writing. 5. Prior to disposition of equipment acquired under this Grant Agreement, the Grantee shall notify the State via e-mail, and by telephone, by calling the California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit at (916) 843-4360. Page 77 of 309 TERMS AND CONDITIONS C. PROJECT TERMINATION 1. Grantee or the State may terminate this Grant Agreement at any time prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw. a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term “force majeure” shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee’s control which would excuse the Grantee’s performance as a matter of law. b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure. 2. Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated. 3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein provided. Furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination. 4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities. D. FINANCIAL RECORDS 1. The Grantee agrees the State, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement. E. HOLD HARMLESS 1. The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee’s staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, and from any and all claims and losses accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement. Page 78 of 309 TERMS AND CONDITIONS F. NONDISCRIMINATION 1. The Grantee agrees to comply with State and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment- related leave. (GC 12990 [a-f] and CCR, Title 2, Section 8103.) G. AMERICANS WITH DISABILITIES ACT 1. The Grantee assures the State it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) H. DRUG-FREE WORKPLACE 1. The Grantee shall comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions: a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. b. Establish a Drug-Free Awareness Program to inform employees about: i. The dangers of drug abuse in the workplace. ii. The person's or Organization/Agency's policy of maintaining a drug-free workplace. iii. Any available counseling, rehabilitation, and employee assistance programs. iv. Penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the Project will: i. Receive a copy of the company's drug-free workplace policy statement. ii. Agree to abide by the terms of the company's statement as a condition of employment on the Grant Agreement. 2. Failure to comply with these requirements may result in suspension of payments under this Grant Agreement, or termination of this Grant Agreement, or both, and Grantee may be ineligible for award of any future Grant Agreements if the department determines that any of the following has occurred: a. The Grantee has made false certification or violated the certification by failing to carry out the requirements, as noted above. (GC 8350 et seq.) I. LAW ENFORCEMENT AGENCIES 1. All law enforcement Organization/Agency Grantees shall comply with California law regarding racial profiling. Specifically, law enforcement Organization/Agency Grantees shall not engage in the act of racial profiling, as defined in California Penal Code Section 13519.4. Page 79 of 309 TERMS AND CONDITIONS J. LABOR CODE/WORKERS' COMPENSATION 1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Grant Agreement, (refer to Labor Code Section 3700). K. GRANT APPLICATION INCORPORATION 1. The Grantee agrees the Grant Application and any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement. L. STATE LOBBYING 1. The Grantee is advised that none of the funds provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice. M. REPRESENTATION AND WARRANTIES 1. The Grantee represents and warrants that: a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses, permits, and the like necessary to carry on its business as it is now being conducted and as contemplated in this Grant Agreement, and will, at all times, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations, and rules. b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein. c. If the Grantee is a Nonprofit Organization/Agency, it will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax- exempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax-exempt status. d. All of the information in its Grant Application and all materials submitted are true and accurate. N. AIR OR WATER POLLUTION VIOLATION 1. Under the state laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. Page 80 of 309 TERMS AND CONDITIONS O. GRANTEE NAME CHANGE 1. Grantee agrees to immediately inform the State, in writing, of any changes to the name of the person within the Organization/Agency with delegated signing authority. 2. An Amendment is required to change the Grantee's name, as listed on this Grant Agreement. Upon receipt of legal documentation of the name change, the State will process the Amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said Amendment. P. RESOLUTION 1. A county, city, district, or other local public body shall provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body, which by law, has authority to enter into a Grant Agreement, authorizing execution of the Grant Agreement. Q. PAYEE DATA RECORD FORM STD. 204 1. This form shall be completed by all non-governmental Grantees. R. FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA GOVERNMENT AGENCY TAXPAYER ID FORM 1. This form shall be completed by all Grantees. S. CONFLICT OF INTEREST 1. This section serves to make the Grantee aware of specific provisions related to current or former state employees. If Grantee has any questions regarding the status of any person rendering services or involved with the Grant Agreement, the Grantee shall contact the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) immediately for clarification. 2. Current State Employees: a. No officer or employee shall engage in any employment, activity, or enterprise, from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required, as a condition of regular state employment. b. No officer or employee shall contract on their own behalf, as an independent Grantee, with any state agency to provide goods or services. 3. Former State Employees: a. For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to this Grant Agreement while employed in any capacity by any state agency. b. For the 12-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed Grant Agreement within the 12-month period prior to their leaving state service. 4. The authorized representative of the Grantee Organization/Agency, named within this Grant Agreement, warrants their Organization/Agency and its employees have no personal or financial interest and no present or past employment or activity, which would be incompatible with Page 81 of 309 TERMS AND CONDITIONS participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement. 5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media-related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall immediately advise the State of any person(s) who has access to confidential Project information and intends to disclose that information in violation of this Grant Agreement. 6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party has a Grant Agreement with the State, similar in nature to this one. 7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them. 8. If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void. T. EQUIPMENT-USE TERMS 1. The Grantee agrees any equipment purchased under this Grant Agreement shall be used for impaired driving efforts. 2. Law Enforcement Projects: a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road-side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment. At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain permission from their local prosecutor’s office, establish a policy ensuring appropriate use, and require the staff using these devices to receive appropriate training, which may include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) of any legal challenges or other items of significance that may affect the use or legal acceptance of these devices. Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices. b. Law Enforcement Vehicles – The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall comply with all California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement. Page 82 of 309 Schedule A Gilroy Police Department The Grantor determined awards and adjustments based on the Project’s merit, operational scale, compliance with the Request for Application (RFA), and program regulations. Certain activities or budget items proposed in Schedule A may have been deemed ineligible for funding. The final, binding list of authorized activities and expenses is set forth in Schedule B - Detailed Budget Estimate. Project Description The Gilroy Police Department proposes a Cannabis-Impaired Driving Enforcement and Education Project designed to reduce collisions and injuries caused by drivers under the influence of alcohol, cannabis and other drugs. Through funding from the California Highway Patrol Cannabis Tax Fund Grant Program, the department will conduct ten (10) data-driven DUI/DUID Saturation Patrols and two (2) Community Engagement Events focused on cannabis-impaired driving awareness. The project also includes the acquisition of one fully equipped 2026 Ford Police Responder DUI Vehicle and one fully equipped 2026 BMW R1300RT Police DUI Motorcycle to enhance enforcement mobility, officer safety, and operational effectiveness. This combined enforcement and education approach will increase the identification of cannabis-impaired drivers, deter impaired driving behavior, and improve roadway safety within the City of Gilroy. Problem Statement The Gilroy Police Department serves the City of Gilroy, located in southern Santa Clara County at the intersection of US-101, CA-152, and CA-156. Gilroy functions as a residential community for commuters traveling to Silicon Valley and experiences significant daily commuter and pass-through traffic. Continued residential and commercial development has further increased roadway congestion and traffic volume. Impaired driving remains a significant public safety concern within the City of Gilroy. Collision and arrest data demonstrate that DUI-related collisions represent a disproportionate percentage of injury crashes within the city. While alcohol-impaired driving continues to be prevalent, internal arrest data indicates that drug- impaired driving (DUID) arrests account for 16% of overall DUI arrests. This suggests that drug-impairment, particularly drug related impairment may be under-identified. Since the legalization and commercial availability of cannabis products in California, law enforcement agencies have faced increased challenges in detecting and prosecuting cannabis-impaired drivers. Cannabis impairment presents unique detection challenges compared to alcohol impairment, requiring specialized training, proactive enforcement, and targeted deployment strategies. The Gilroy Police Department Traffic Unit consists of three (3) full-time Motor Officers and one (1) Traffic Sergeant. The Department also maintains a group of previously trained Motor Officers who have rotated back to patrol assignments but remain qualified to assist with traffic and DUI related enforcement. Due to staffing constraints, high call volumes, and competing public safety demands, patrol officers have limited discretionary time to conduct proactive DUI/DUID enforcement during routine patrol operations. Without dedicated grant funding, the department lacks sufficient equipment and funding to conduct sustained, data-driven cannabis-impaired and alcohol impaired driving enforcement operations. Page 83 of 309 Schedule A Performance Measures/Scope of Work (Proposed Solution) 10 DUI Saturation Patrols (Q1 = 2, Q2 = 2, Q3 = 3, Q4 = 3): Aim to reduce DUI/DUID collisions, injuries and deaths by 10% which will improve roadway safety in the community. 2 Community Engagement Events (Q2 = 1, Q3 = 1): Aim to contact at least 300 community members each quarter to increase awareness of driving under the influence. The Engagement Events will coincide with Community hosted festivals, and activities. 1 DUI Enforcement Saturation Vehicle and Upfitting (Q1 = Purchase, Q3 = Receive, Q3-Q4 = Use to complete DUI Saturation Patrols and Community Engagement). We will utilize the vehicle to conduct enforcement operations and during Community Engagement Events. 1 DUI Enforcement Saturation Motorcycle and Upfitting (Q1 = Purchase, Q3 = Receive, Q3-Q4 = Use to complete DUI Saturation Patrols and Community Engagement) We will utilize the motorcycle to conduct enforcement operations and during Community Engagement Events. Project Performance Evaluation The success of the project will be evaluated using measurable outcomes, including: • Number of Saturation Patrols conducted • Number of DUI and DUID arrests made • Number of cannabis-impaired driving arrests • Number of citations issued during operations • Number of community members reached during engagement events • Comparison of DUI-related collision data pre- and post-grant period Arrests and collision data will be analyzed to determine whether targeted enforcement correlates with increased identification of cannabis-impaired drivers and reductions in DUI-related collisions. Program Sustainability The equipment purchased through this grant will remain in service beyond the grant period and will continue to support impaired driving enforcement efforts. The department is committed to maintaining trained personnel capable of conducting DUI/DUID enforcement and continuing cannabis-impaired driving education efforts as resources allow. Administrative Support The City of Gilroy does not request reimbursement for grant administration costs. Administrative support is provided by Cit-funded personnel, and employee benefits are not charged to grant funds. The department has demonstrated responsible stewardship of prior grant funding and remains committed to transparency and data-driven enforcement strategies. Page 84 of 309 Schedule B Detailed Budget Estimate Award Number Organization/Agency Total Amount 30916 Gilroy Police Department $120,766.00 Cost Category Line Item Name Total Cost to Grant Personnel DUI Saturation $56,462.00 Education/Outreach $3,304.00 Category Sub-Total $59,766.00 Equipment DUI Motorcycle (Includes Outfitting & Decals) $61,000.00 Category Sub-Total $61,000.00 Grant Total $120,766.00 Page 85 of 309 Schedule B-1 Budget Narrative Gilroy Police Department Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction. Personnel Education/Outreach $3,304.00 2 Community Engagement Events (4 HRS EACH) 2 events @ $1,652 each. Total = $3,304. Officer OT Rate $131.00. Sergeant OT Rate $151.60 per hour. DUI Saturation $56,462.00 10 DUI Saturation Patrols (7 HRS EACH). 420 total hours x $131.00 per hour for 5 officers and $151.60 for 1 Sergeant. Total cost, $56,462.00. Sergeant OT Rate $151.60 per hour, Officer OT Rate $131.00 per hour Equipment DUI Motorcycle (Includes Outfitting & Decals) $61,000.00 DUI Enforcement Saturation Motorcycle 1 @ $26,000 DUI Enforcement Motorcycle Upfitting 1 @ $35,000 NOTE: CGU WILL ONLY COVER 1 YEAR WARRANTY- AGENCY IS RESPONSIBLE FOR REMAINING WARRANTY COSTS Page 86 of 309 State of California-Transportation Agency GAVIN NEWSOM, Governor DEPARTMENT OF CALIFORNIA HIGHWAY PATROL Safety, Service, and Security An Internationally Accredited Agency 601 North 7th Street Sacramento, CA 95811 (916) 843-4360 (800) 735-2929 (TT/TDD) (800) 735-2922 (Voice) June 30, 2026 File No.: 060.17344.19741 Sergeant Raul Razo Gilroy Police Department 7301 Hanna Street Gilroy, CA 95020 Dear Sergeant Razo: On behalf of the California Highway Patrol (CHP), it is my pleasure to inform you, the Gilroy Police Department, is conditionally approved for Cannabis Tax Fund Grant Program (CTFGP) funding in the amount of $120,766.00. The purpose of this grant funding is to help your agency reduce and mitigate the impacts of impaired driving in your community. All grant awards, including any adjustments to requested funding, were made by the Department based on the merits of the Grant Application, scale of operation, and in accordance with the Request for Application (RFA) requirements and associated regulations. The official Grant Agreement for signature is forthcoming. In order to execute your Grant Agreement, please provide documentation from a local governing body, authorizing your organization to receive this grant funding, to the Cannabis Grants Unit, by email at CGUGrants@chp.ca.gov, as soon as possible. Refer to California Code of Regulations Title 13, Division 2, Chapter 13, Section 1890.13(g) for additional information. The CHP looks forward to partnering with you and your agency on this project in an effort to make California’s roadways a safer place to travel. If you have any questions, please feel free to contact the Cannabis Grants Unit at (916) 843-4360. Sincerely, For/ M. W. HEADRICK, Chief Enforcement and Planning Division Page 87 of 309 8.8. City of Gilroy STAFF REPORT Agenda Item Title: Approval of a Partnership with KABOOM! for the Replacement of the Hanna Playground at Las Animas Veterans Park Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Public Works Submitted by: John Doughty, Public Works Director Prepared by: Matt Jones, Deputy Public Works Director STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION Staff recommends that the City Council approve the City’s participation in the KABOOM! playground partnership for the replacement of the Hanna Playground at Las Animas Veterans Park and authorize the City Administrator, or designee, to execute all documents necessary to complete the project. EXECUTIVE SUMMARY The City has an opportunity to enter into a partnership with KABOOM! for the replacement of the Hanna Playground at Las Animas Veterans Park. KABOOM! is a national nonprofit organization that works with communities to build kid-designed playspaces. Under the proposed partnership, KABOOM! would work with the City, a Bay Area-based business that would fund the project and community volunteers, who would contribute to the project construction, in order to replace the existing Hanna Playground. The Bay Area-based business/funder is anticipated to fund the playground equipment and installation crew, while community members would assist with the design and installation through KABOOM!’s community-build model. The City’s Capital Improvement Program includes $30,000 for project incidentals and Page 88 of 309 8.8. City-related support costs. Approval of the partnership would allow staff to move forward with project coordination, community engagement, site preparation, and construction planning for the playground replacement. Link to KABOOM! Website for additional information: KABOOM! BACKGROUND Las Animas Veterans Park is one of the City’s primary community parks and serves residents, families, sports users, and visitors throughout the year. The Hanna Playground is an important park amenity that provides a dedicated play area for children and families. The existing playground is approximately 30-years old and is in need of replacement/modernization to improve the overall condition, function, safety, and long- term usability of the play area. As part of the City’s Capital Improvement Program, $30,000 has been set aside to support the project for incidentals and related City costs. KABOOM! partners with communities to build and improve playspaces. According to KABOOM!, its community-built playground model includes working with the community, receiving guidance from KABOOM! Community Engagement and Build Managers, and building support around the project. KABOOM! also states that its playgrounds are community-built, with residents involved throughout the process, from selecting the playground design through build day. The proposed partnership would establish the roles and responsibilities necessary to move the Hanna Playground replacement forward, including coordination between KABOOM!, the City, and the local funding partner. The partnership is necessary to secure final commitment of the funder. ANALYSIS The proposed partnership would allow the City to participate in KABOOM!’s community- build playground process for the replacement of the Hanna Playground. The partnership is expected to define the responsibilities of each party, including project coordination, funding, site preparation, community engagement, volunteer participation, installation support, and long-term ownership and maintenance of the completed playground. The local business/funder is anticipated to fund the primary playground improvements, including the playground equipment and installation crew. Community members would assist with installation as part of the KABOOM! model, providing an opportunity for residents and stakeholders to take part in delivering a meaningful improvement at Las Page 89 of 309 8.8. Animas Veterans Park. The City’s role would include entering into the partnership, coordinating with KABOOM! and the funding partner, providing access to the project site, completing City-related preparation and support work, assisting with permitting and utility coordination, supporting volunteer and build-day logistics, and accepting the completed playground as a City park amenity. The $30,000 currently included in the Capital Improvement Program would be used for project incidentals and City-related costs. These costs may include site preparation, removal or disposal of existing playground materials, utility checks, minor grading or surface preparation, temporary facilities, construction support, signage, inspections, and other project needs not funded by the local business/funder. Approval of the partnership would allow KABOOM! to formalize commitment with the funder and allow staff to move forward with the project and coordinate the necessary steps to complete the playground replacement. The project supports the City’s ongoing efforts to maintain and improve park infrastructure, leverage outside funding, and involve the community in public improvement projects. ALTERNATIVES The City Council may choose not to approve the partnership with KABOOM!. This alternative is not recommended, as it would result in the City losing the opportunity to replace the Hanna Playground with significant outside funding and community support. The City Council may also direct staff to defer the project and pursue a City-funded replacement at a later date. This alternative is not recommended, as it would require a larger City funding commitment and delay replacement of the playground. FISCAL IMPACT/FUNDING SOURCE The City has included $30,000 in the Capital Improvement Program for project incidentals and City-related support costs associated with the Hanna Playground replacement. The local business/funder is anticipated to fund the primary playground improvements, including the playground equipment and installation crew. Community members would assist with installation through the KABOOM! community-build process. No additional appropriation is requested or anticipated at this time. If additional City funding is required, staff will return to the City Council for further direction or budget Page 90 of 309 8.8. authority. PUBLIC OUTREACH Public outreach and community involvement are key components of the KABOOM! process. KABOOM! states that residents are active throughout the playground process, from selecting the design through build day, and that volunteer opportunities are available for everyone. Staff will work with KABOOM!, the local business/funder, and community volunteers to support project communication, planning meetings, volunteer coordination, and build- day logistics. This will provide residents and community members with an opportunity to participate in the replacement of the Hanna Playground and contribute to a lasting improvement at Las Animas Veterans Park. NEXT STEPS If approved, staff will finalize the partnership with KABOOM!, subject to review and approval by the City Attorney. Staff will then coordinate with KABOOM! and the local business partner/funder to confirm any agreements and contracts, project schedule, roles and responsibilities, site preparation needs, utility checks, permitting requirements, community outreach, volunteer recruitment, and build-day logistics. Staff will also coordinate internally with other City Departments as needed, to support successful outreach and project delivery. Attachments: 1. 2025 KABOOM! Project Summary Page 91 of 309 Page 92 of 309 Page 93 of 309 Page 94 of 309 • • • • • • • • • • • • • • • Page 95 of 309 • • • • • • • • • • • • • • • • • • • • • • • • • • Page 96 of 309 Page 97 of 309 Page 98 of 309 •• • • • • • • • • • • • • Page 99 of 309 Page 100 of 309 Page 101 of 309 Page 102 of 309 Page 103 of 309 • • • • • • • • Page 104 of 309 City of Gilroy STAFF REPORT Agenda Item Title: Adoption of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Community Development Submitted by: Sharon Goei, Community Development Director Prepared by: Bryce Atkins, Deputy Director of Community Development STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Council adopt an ordinance of the City Council of the City of Gilroy amending Gilroy City Code Chapter 5D, “Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts”. BACKGROUND At the June 15, 2026, regular meeting of the Gilroy City Council, the Council held a public hearing and introduced an ordinance to restore Chapter 5D, which relates to vacant commercial space and plywood use in the downtown area. The introduction was approved by a vote of 6-0-1 (one absent). ANALYSIS Attached to this staff report are the introduced ordinance and the previous staff report, which contains the analysis and discussion of the proposed ordinance. The proposed ordinance repeals and replaces Chapter 5D in order to restore the City’s Page 105 of 309 vacant commercial space regulations for the Downtown Historic and Downtown Expansion Districts. The ordinance removes the prior sunset language, updates the chapter structure, and adds new provisions intended to address prolonged vacancies, unfinished storefront conditions, and the temporary use of plywood. The ordinance includes the following major components: 1. Restoration of Chapter 5D The ordinance removes the prior sunset provision and restores the City’s authority to regulate vacant commercial spaces in the Downtown Historic and Downtown Expansion Districts. Going forward, Chapter 5D will remain in effect unless later amended or repealed by the City Council. 2. Vacant Commercial Space Registration Responsible persons must register vacant commercial spaces within ten consecutive days after a space becomes subject to the chapter. Registration must be renewed annually by January 1 of each year the space remains vacant and must also be renewed within ninety days of a change in ownership. 3. Building Report Card Requirement Upon registration, the City will produce a building report card sign to be posted on the building or structure so it is visible from the public right-of-way. The sign will include responsible party contact information, the date the structure became vacant, and any building or City code compliance violations requiring correction. 4. Window Display Standards Commercial spaces that have been unoccupied for more than ninety consecutive days must install appropriate window displays or coverings on ground-floor windows facing sidewalks, streets, alleys, or public open spaces. Acceptable treatments include faux window dressings, works of art, cultural, historical, or educational displays, window paintings, or other measures approved by the Community Development Director or designee. Raw coverings such as drywall, sheeting, plastic, butcher paper, plain paper, or similar unfinished materials are prohibited. 5. Plywood Regulations The ordinance allows plywood only as a temporary measure when needed to secure exposed entry points or when a building façade must be removed. Plywood must be decorated in compliance with the chapter within ninety days of installation and must be removed within one year, unless a one-year extension is approved due to extenuating circumstances. 6. Updated Fees and Fines The ordinance establishes an initial vacant commercial space registration fee of Page 106 of 309 $750 and an annual renewal fee of $1,500. It also establishes fines of $150 per week for failure to register or renew registration, $500 per month for plywood that remains undecorated after ninety days, and $250 per month for plywood that remains beyond one year after installation. 7. Collection and Enforcement Remedies The ordinance authorizes the City to pursue available legal and equitable remedies to collect delinquent fees, fines, interest, and penalties. Delinquent amounts may be recorded as a lien or special assessment against the property on which the violation occurred, subject to applicable procedural requirements. The ordinance also confirms that enforcement remedies are cumulative and that responsible persons are jointly and severally responsible for compliance and payment obligations. Adoption of the ordinance will complete the legislative process and allow staff to begin implementation and outreach to affected downtown property and business owners. ALTERNATIVES The City Council may choose not to adopt the ordinance. If the ordinance is not adopted, Chapter 5D will remain inactive, and the City will not have the restored regulatory tools proposed to address downtown vacant commercial spaces and plywood conditions. The City Council may also direct modifications to the ordinance. However, substantive modifications at this stage would likely require reintroduction of the ordinance and a subsequent return to Council for adoption. FISCAL IMPACT/FUNDING SOURCE Implementation will require staff time for administration, outreach, inspections, registration processing, enforcement, and collection activities. Registration fees are intended to offset a portion of the cost of administering the program. Based on an estimate of twenty-five vacant commercial spaces at the time of implementation, the initial registration fee could generate approximately $18,750 in revenue. Actual revenue will vary based on the number of vacant commercial spaces, compliance levels, enforcement activity, and the number of annual renewals. No additional appropriation is requested with this action. Page 107 of 309 PUBLIC OUTREACH This item has been discussed through the City Council’s strategic planning process and at prior public City Council meetings, including the November 3, 2025, and May 18, 2026, meetings. Staff also conducted two input meetings with downtown business and property owners and advertised a survey by mail to downtown business and property owners. The ordinance was introduced at the June 15, 2026, regular City Council meeting and has been placed on the July 27, 2026, consent calendar for adoption. Following adoption, staff will conduct additional outreach to affected property and business owners regarding implementation of the restored Chapter 5D requirements. NEXT STEPS If adopted, the ordinance will take effect thirty days after adoption pursuant to the City Charter. Staff will then prepare registration forms, outreach materials, implementation procedures, and enforcement guidance for affected properties in the Downtown Historic and Downtown Expansion Districts. Attachments: 1. Draft Chapter 5D Ordinance 2. Staff Report - June 15, 2026, Downtown Plywood and Vacancy Ordinance Introduction Page 108 of 309 ORDINANCE NO. 2026-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY REPEALING AND REPLACING GILROY CITY CODE CHAPTER 5D, VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND DOWNTOWN EXPANSION DISTRICTS WHEREAS, pursuant to California Constitution Article XI, Section 7, and the City Charter, Section 600, the City Council has the authority to enact ordinances which promote the public health, safety, and general welfare of its residents; and WHEREAS, the City Council adopted Ordinance No. 2012-02 on February 6, 2012, creating Chapter 5D entitled “Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts”, for the purpose of reducing the adverse effects of vacant commercial buildings in the Downtown Historic and Expansion Districts, by requiring ground floor windows to be maintained with interesting and/or artistic visual displays, registration of vacant commercial spaces, and monitoring for substandard and/or unkempt commercial buildings and the appearance of long-term vacancies in commercial buildings; and City Code, Chapter 5D, pertaining to downtown vacancies; and WHEREAS, Chapter 5D contained a sunsetting provision (Section 5D.13) whereby the entire chapter was to terminate and be of no further force and effect upon the termination date of the Seismic Safety Ordinance (Ordinance No. 2011-07); and WHEREAS, the Seismic Safety Ordinance’s final extension period, effectuated by Resolution No. 2015-56, ended on December 16, 2016, at which time Chapter 5D’s sunset provision took effect, and the requirements and enforcement provisions to address vacant commercial spaces in the downtown districts expired; and WHEREAS, In 2023, the City Council of the City of Gilroy created the Downtown Ad Hoc Committee to review identified issues to be addressed in the downtown districts. Two of these issues were vacant commercial buildings and the use of plywood in the downtown districts; and WHEREAS, the Downtown Ad Hoc Committee issued recommendations to the Gilroy City Council to re-activate Chapter 5D of the Gilroy City Code and modifications to the same to enhance its effectiveness at addressing the above-mentioned issues; and WHEREAS, commercial buildings that remain vacant for extended periods may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and contribute to blighted conditions that negatively impact the community; and WHEREAS, the City Council desires to strengthen the City’s vacant commercial space regulations by requiring a building report card for registered vacant commercial spaces, prohibiting unfinished window and facade coverings, regulating temporary plywood installations, updating registration fees and fines, expanding collection remedies, and removing the sunset provision; and Page 109 of 309 WHEREAS, the City Council finds that these amendments will further the public health, safety, and welfare by promoting the maintenance, appearance, and accountability of vacant commercial spaces in the downtown area. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Chapter 5D of the Gilroy City Code is hereby repealed and replaced to read as follows: CHAPTER 5D VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND DOWNTOWN EXPANSION DISTRICTS 5D.1 Purpose. Commercial buildings that are vacant for an extended period of time may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and may contribute to blighted conditions that negatively impact the entire community. The purpose of this chapter is to minimize these adverse effects by preserving and improving the appearance of downtown Gilroy by requiring ground-floor windows of vacant commercial buildings in the Downtown Historic and Downtown Expansion Districts to be aesthetically pleasing when viewed from the street and sidewalk. 5D.2 Scope. The provisions of this chapter shall apply to all structures in the Downtown Historic District and the Downtown Expansion District, unless otherwise stated, including, but not limited to, properties that have been the subject of a foreclosure sale wherein title has been transferred to the beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under a deed in lieu of foreclosure or sale. All responsible persons shall comply with the requirements of this chapter. 5D.3 Administration. This chapter will be administered by, and may be enforced by, the community development director or his or her designee, who may adopt administrative rules and regulations consistent with its terms. 5D.4 Definitions. For the purposes of this chapter: “City” means the City of Gilroy. “Commercial space” means any portion of a structure in the Downtown Historic District or Downtown Expansion District that is not intended for residential use. “Downtown Historic District” and “Downtown Expansion District” mean the respective zoning districts of the city, as defined in the Gilroy Zoning Ordinance. Page 110 of 309 “Occupied”. A commercial space is deemed to be “occupied” when a permitted, nonresidential tenant or user resides in or is physically located in, and is lawfully and actively operating in, the space for at least thirty (30) days and meets the proof of physical occupancy criteria as set forth in Section 5D.6(g). “Responsible person” means any person, firm, association, corporation, business entity, trustee, or receiver, or agent thereof, which owns, leases, rents or has lawful possession of a structure in the Downtown Historic District or in the Downtown Expansion District. “Vacant commercial space” means any portion of a street-level commercial space that is not occupied and has not been occupied for a period of ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter. 5D.5 General minimum maintenance requirements. Responsible persons shall at all times maintain all structures they own, lease, rent or lawfully possess in the Downtown Historic District and Downtown Expansion District pursuant to the Gilroy City Code, the Gilroy Zoning Ordinance and the current construction codes contained in Chapter 6, as amended by the city council. 5D.6 Vacant commercial space registration. (a) At least one (1) responsible person for each vacant commercial space must register that space with the city in accordance with this chapter within ten (10) consecutive days of the date the space becomes vacant commercial space. (b) In order to register a vacant commercial space, as required by this chapter, a responsible person must submit to the community development director, or his or her designee, all of the following information in writing: (1) The street address and assessor’s parcel number of the vacant commercial space; (2) The name, address, and daytime and evening telephone numbers of each responsible person for the vacant commercial space, including any owner or tenant; (3) The period of time the vacant commercial space is estimated to remain vacant; and (4) Any other information requested by the community development director or his or her designee for the administration of this chapter. (c) The registration of a vacant commercial space subject to this chapter must be renewed annually no later than January 1st of each year that the space was vacant. (d) The registration of a vacant commercial space subject to this chapter must be renewed within ninety (90) consecutive days of its change of ownership. Page 111 of 309 (e) Initial and renewal registrations must be submitted on forms to be provided by the community development director, which forms shall be filled out completely and signed by at least one (1) responsible person. (f) Building Report Card. Upon completion of registration, the department shall produce a sign no less than eighteen inches by twenty-four inches (18" x 24") posted on the front of the exterior building or structure so it is legible from the public-right-of-way with the following information: (i) name, address, and twenty-four-hour contact telephone number of the owner, responsible party, or property management company; and (ii) the statement "THIS PROPERTY MANAGED BY" with the appropriate name inserted and "TO REPORT PROBLEMS OR CONCERNS CALL" with the twenty-four hour telephone number listed. The sign shall also identify the date the structure became vacant and identify any building or city code compliance violations requiring correction. (g) Upon satisfactory proof to the community development director, or his or her designee, that a vacant commercial space is and has been occupied for at least thirty (30) consecutive days, the vacant commercial space will be unregistered. Proof of physical occupation may include, but is not limited to, proof of the presence of usable furniture, office equipment, retail inventory or other equipment and inventory in the street-level commercial space that is consistent with the structure’s intended use, and the regular presence of persons using the street-level commercial space for its intended use. Proof of physical occupancy must also include documentation of occupancy, which may include, but is not limited to, an executed lease agreement, or valid state and local business licenses indicating the subject space is the official business address of the person or business claiming occupancy. (h) The determination of the number of vacant commercial spaces a structure contains for purposes of registration will be made by the community development director or his or her designee. The number of vacant commercial spaces will be determined by the physical areas that have separate entrances to the commercial space from a public entry or a joint tenant corridor and/or entry to the commercial space. (i) The provisions of this chapter shall not apply to a vacant commercial space if the following apply: (1) The window display area space is the subject of a current, valid building permit for repair or rehabilitation and the responsible person provides proof, such as receipts, invoices or executed contracts, that the repair or rehabilitation is proceeding without significant delay. 5D.7 Window displays for commercial spaces not occupied for (90) ninety days. Whether or not a vacant commercial space is registered pursuant to this chapter, if any commercial space in the Downtown Historic District or Expansion District has been unoccupied for more than ninety (90) consecutive days at the time this chapter becomes effective or any time thereafter, then responsible persons shall immediately construct and/or install at least one (1) of the following types of displays on or inside all ground-floor windows that face sidewalks, streets, alleys, or public open spaces: Page 112 of 309 (a) Faux window dressings containing goods or services with the visual characteristics of a vibrant business using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas; (b) Works of art or other displays of cultural, historical, or educational value, using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas; (c) Window paintings featuring visually appealing scenes depicting or suggesting business or cultural activities; (d) Drywall, sheeting, plastic, butcher paper, plain paper or other raw coverings are strictly prohibited. All windows, openings, doors, facades, awnings, must be finished in appearance or in compliance with at least one of the above methods; or (e) Other measures consistent with these examples, if approved in writing by the community development director or his or her designee, in his/her discretion. (f) Any decorative artwork and mural designs proposed for use must be appropriate for all ages in the community. The community development department will provide examples of appropriate designs to interested responsible persons. 5D.8 Regulations on the use of plywood. (a) Plywood may be utilized if the building façade needs to be removed, or as a temporary measure to restrict unpermitted entry when doors, windows, or other potential entry points are exposed and need to be secured. (b) Plywood must be decorated in compliance with the requirements provided in Section 5D.7. Such decoration shall be completed within ninety (90) days of installation. (c) Plywood must be removed one (1) year after installation. (1) No additional permits will be approved until any active permit is completed, the temporary front is removed, and all applicable fines are paid. (2) Properties may request a one-year extension if there are extenuating circumstances. The community development director or their designee may approve such extensions in writing at their discretion. 5D.9 Fees and fines. (a) Commercial space registration. At least one (1) responsible person shall pay an annual registration fee for each registered vacant commercial space that is separately owned or leased. In the case of a newly constructed or remodeled building in which individual spaces are not separately owned or leased, a single initial and annual registration fee shall be paid to cover all commercial spaces within the building. At least one responsible person must pay an initial registration fee to the city at the time the space is registered, and must pay an annual renewal registration fee by January 1st each following year that the space or spaces remain vacant. Registration fees will not Page 113 of 309 be prorated. These registration and fee requirements are applicable to any vacant commercial space in the Downtown Historic District or Expansion District that at the time the ordinance codified in this chapter becomes effective or any time thereafter. The fees will be as follows: (1) Initial registration: seven hundred fifty dollars ($750.00). (2) Annual renewal registration: one thousand five hundred dollars ($1,500.00). (3) The fees are intended to defray the costs of administering this chapter and may be changed by the city council to meet these costs. (b) Failure to register, or renew the registration of, vacant commercial space in violation of Section 5D.6 shall incur a fine of one hundred fifty dollars ($150.00) per week, or portion thereof, until compliance with the registration requirements is complete. (c) Plywood, or any portion thereof, that remains undecorated after ninety (90) days in violation of Section 5D.8 (b) shall incur a fine of five hundred dollars ($500.00) per month or portion thereof. (d) Plywood that remains beyond one (1) year after installation in violation of Section 5D.8 (c) shall incur a fine of two hundred fifty dollars ($250.00) per month, or portion thereof, until all plywood is removed. (e) Any other violation of this Chapter shall incur a fine as detailed in Chapter 1.7 of the Gilroy City Code. 5D.10 Delinquent fees, fines, interest and penalties—collection. (a) If a responsible person fails to pay the registration fee by the due date, the city is authorized to take action to collect the registration fee including a ten percent (10%) per month late payment penalty and its costs of collection, including attorneys’ fees, by use of any and all available legal means; in which case such penalties and costs incurred by the city as a result of the collection process will be assessed to the responsible person or responsible persons in addition to the registration fee. (b) The city may pursue any and all legal and equitable remedies for the collection of fees and fines, including interest and penalties. (c) Delinquent fees, fines, interest, and penalties may be recorded as a lien or special assessment against the property on which the code violation occurred. Prior to recording a lien or special assessment, the city shall prepare a cost report itemizing the amount owed by the responsible person. The city shall comply with the State Board of Equalization or any other state or county law pertaining to the recording of any delinquent fines, interest, and penalties as a lien on the property, or as a special assessment. (d) The administrative citation process described in this chapter does not preclude the city from recovering any code violation abatement cost incurred by the city in performing its code enforcement efforts. Page 114 of 309 5D.11 Duty to amend registration statement. Responsible persons for any registered vacant commercial space shall advise the community development director or his or her designee, in writing, of any changes to the information on the registration form within thirty (30) consecutive days of the occurrence of the change. 5D.12 Inspections. The community development director or his or her designee, or code enforcement officers, or both are authorized to conduct inspections to enforce the provisions of this chapter. 5D.13 Enforcement. (a) The city may enforce the provisions of this chapter by any of the provisions of the Gilroy City Code, which are in addition to any other remedies provided for by law. Said remedies shall be cumulative and not exclusive. (b) It shall be unlawful for any responsible person to violate or fail to comply with any provisions of this chapter. Each responsible person commits a separate offense for each and every day they commit, continue or permit a violation of any provision of this chapter. (c) Any responsible person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction, shall be punished as set forth in Government Code Section 36900, as it now exists or may hereafter be amended. (d) All responsible persons are jointly and severally responsible with respect to compliance with all provisions of this chapter and for any payments required to be made to the city under this chapter, including but not limited to registration fees, late penalties, and costs of collection and enforcement, including attorneys’ fees and costs. If the commercial space is subject to a lease, the city shall have discretion to determine whether to enforce this chapter against the commercial space owner, the tenant, or both of them. SECTION II If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. SECTION III Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force and effect thirty (30) days from and after the date it is adopted. Page 115 of 309 PASSED AND ADOPTED this 27th day of July, 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: APPROVED: ______________________________ Greg Bozzo, Mayor ATTEST: Kim Mancera, City Clerk Page 116 of 309 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 ordinance, or a true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, July 27, 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 Page 117 of 309 City of Gilroy STAFF REPORT Agenda Item Title: Introduction of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts Meeting Date: June 15, 2026 From: Matt Morley, City Administrator Department: Community Development Submitted by: Sharon Goei, Community Development Director Prepared by: Bryce Atkins, Deputy Director of Community Development STRATEGIC PLAN GOALS: Promote Economic Development Activities RECOMMENDATION Council: 1. Motion to read the ordinance by title only and waive further reading. 2. Introduce an Ordinance of the City Council of the City of Gilroy amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts. BACKGROUND In 2023, the City Council established the Downtown Committee to focus on economic enhancement and revitalization of Downtown Gilroy. From its inception, the Committee identified plywood coverings on vacant storefronts and long-term vacant buildings as major visual and economic deterrents. These elements harm the downtown's image, economic activity, and community safety. To address these challenges, the Downtown Committee formed two specialized subcommittees: Page 118 of 309 • Plywood Removal Subcommittee (PRS): Tasked with developing strategies and regulations to minimize or eliminate unsightly plywood coverings on vacant storefronts, while promoting aesthetically pleasing and transparent alternatives. • Vacancy Ordinance Subcommittee (VOS): Focused on addressing prolonged vacancies in downtown buildings through new regulations and incentives to promote occupancy. In 2024, the PRS and VOS presented their joint report and recommendations to the City Council, who directed staff to add the two items to the Community Development Department’s work plan. In subsequent updates to the City Council, staff noted that these items fell under the discretionary category – City initiatives for the public good that are typically Council- or community-driven but not mandated or core services. Staff also estimated completion by June 2025 (FY 2025 Q4), balancing priorities, daily operations, and mandated and core items against limited resources. In spring 2025, during budget and workplan development, a long-term Code Enforcement Officer retired – just as the GilroyConnect (SeeClickFix) platform launched – requiring staff to defer these items to FY 2026. On November 3, 2025, staff returned to Council to provide an update on the initiative and to receive Council direction to revive and strengthen Chapter 5D. The Council provided direction to pursue updating Chapter 5D, consider the Downtown Committee's recommendations, seek input from property and business owners, and return with a discussion of a possible vacancy tax. At the May 18, 2026 regular meeting of the City Council, staff presented a report on the property and business owner input received and on draft code language incorporating the Downtown Committee's recommendations, with a few modifications. The Council provided direction to accept the modifications, proceed with the ordinance process, and not pursue the vacancy tax at this time. ANALYSIS Based on the direction received from Council, staff has prepared the attached ordinance for introduction, incorporating the Downtown Committee's recommendations as modified and directed by the City Council. In summary, it incorporates the following changes to Chapter 5D of the Gilroy City Code: 1. Removes the sunset section of Chapter 5D. Upon the effective date of the proposed ordinance, Chapter 5D will become active again as a result of this removal. There will be no sunset provision going forward, allowing for active enforcement until the Council approves a change to this chapter. 2. Includes the registration fee. The initial and annual renewal registration fee language is already included in Chapter 5D and will become active again once the sunset section is removed. The registration fee has been increased to $750 Page 119 of 309 for initial registration, with an annual renewal fee of $1,500. The 10% per month interest provision for late payments is proposed to remain. 3. Amends the chapter language regarding the collection of delinquent fees, fines, interest, and penalties to allow for all legal remedies and specifically identifies the ability to assess the amounts owed to the City as a special assessment to the property tax bill of the property where the violations occurred. 4. Adds the requirement of a building report card that would be placed on the property with required information, including name, telephone number, address, date the building became vacant, and any identified code violations for the building. 5. Adds a section focused on the use of plywood and the regulations surrounding it. These provisions include the following: a. Prohibited materials b. Appropriate decorative artwork required c. 90-day and one-year limitations for decoration and removal, respectively, as well as fine amounts proposed 6. Identifies that delinquent fees, fines, interest, and penalties may be collected via special assessments on annual property tax rolls or via liens on the property when sold. The ordinance in Attachment 1, for introduction and eventual adoption, repeals the entirety of Chapter 5D and replaces it with the revised Chapter 5D due to the sunset language of the original Chapter 5D. A document containing the redline edits showing the changes from the current version of Chapter 5D is also attached for review as Attachment 2. ALTERNATIVES Council may choose to amend or reject the proposed ordinance. Amending the ordinance would require holding a new public hearing, incurring a minor additional cost for a second advertisement, and requiring staff time to make the modifications. FISCAL IMPACT/FUNDING SOURCE Staff time will be used to implement the identified programs and any additional regulations that Council may direct. Revenue will be generated from program fees to help offset the impact on staff time and associated costs of managing and enforcing the program. The amounts will vary based on vacancy rates and compliance levels with the proposed code provisions. Page 120 of 309 An estimate, assuming 25 vacancies exist at the effective date, would be $18,750 in initial registration fee revenue. An estimate of expenditures at this time is unavailable due to significant variability in the factors that affect program costs. PUBLIC OUTREACH This item has been discussed as part of the City Council’s strategic planning process, at the November 3, 2025, and May 18, 2026, regular meetings, and was included on the publicly posted agenda for this meeting. Additionally, there have been two input meetings with business and property owners, and a survey was advertised by mail to all business and property owners in the City’s downtown. For a description of the input received, please reference the staff report entitled “Consideration of Downtown Plywood and Vacancy Regulations” in the May 18, 2026, agenda packet. If adopted, staff will conduct outreach to property and business owners regarding the implementation of the revised City Code chapter. NEXT STEPS If introduced, the ordinance will return to the City Council at the July 27, 2026, regular meeting on the consent calendar for adoption. Staff will then develop and distribute outreach materials to affected property and business owners. Attachments: 1. Draft Chapter 5D Ordinance 2. Gilroy City Code Chapter 5D with Edits Page 121 of 309 8.10. City of Gilroy STAFF REPORT Agenda Item Title: Approve the Fourth Amendment to the Agreement with Chrisp Company for On-Call Striping and Pavement Marking Services Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Public Works Submitted by: Nisha Patel, City Engineer Prepared by: Nisha Patel, City Engineer STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Staff Recommends the City Council: 1. Approve the fourth amendment to the agreement with Chrisp Company to add $275,493.68 to the contract for a total amount not to exceed $785,493.68. 2. Extend the term of the agreement to June 30, 2027. 3. Authorize the City Administrator to execute the amendment and related documents. EXECUTIVE SUMMARY Due to recent updates to the California Vehicle Code, local authorities can consider reduced speed limits in school zones to enhance safety. Staff hired a consultant, Parametrix, to evaluate and make recommendations for reducing speed limits in school zones. In June, the City Council approved reduction of speed limits in school zones and further directed that staff implement, to the extent practicable, prior to the beginning of the school year (August 19). Staff is proposing to amend the current agreement with Chrisp Company (Chrisp) to add $275,493.68 to the contract amount and direct Chrisp to implement the recommended reductions in speed limits in school zones. Page 122 of 309 8.10. BACKGROUND In November 2020, the City Council awarded a three-year contract to Chrisp Company (Chrisp) in an amount not-to-exceed $510,000 for On-Call Striping and Pavement Marking Services. The original not-to-exceed contract amount was not fully expended within three years. This resulted in the term of the agreement being extended from December 31, 2023, to December 31, 2026, via Amendments #1, #2, and #3. The current contract balance is $82,637.69. Chrisp’s on-call striping and pavement marking services are carried out under CIP Project 800330 (Pavement Markings). The contract’s scope of work includes, but is not limited to, routine and emergency pavement striping, markings, and markers; striping removal; curb painting; School Zone delineations and markings; planning and implementation of temporary traffic control measures (including pedestrian detour plans), installation of construction area signs, and additional related services as requested. In response to recent updates to the California Vehicle Code (CVC), which outlines provisions for local authorities to consider reduced school zone speed limits if certain conditions are met, the City hired Parametrix, Inc. (Parametrix) to conduct an evaluation of the areas around 17 schools and prepare a report identifying locations to be considered for reduced speed limit zones. On June 15, 2026, the City Council adopted a resolution reducing speed Limits on specific designated streets in school zones to 15 mph or 20 mph, depending on certain criteria. On July 27, 2026, the City Council is expected to adopt a resolution reducing speed limits on specific designated streets approaching school zones to 25 mph. The study prepared by Parametrix will be used to implement the speed limit reductions authorized by the City Council on June 15, 2026. ANALYSIS Staff is proposing to amend the agreement with Chrisp Company to fund the implementation of the reduced speed limits in school zones. The work is estimated to include the replacement and/or installation of approximately 250 signs in seventeen (17) school zones. Completing this work under the existing agreement with Chrisp Company will allow staff to expedite the improvements and meet the commitment for completion by beginning of school year. ALTERNATIVES The City Council could choose to not amend the agreement with Chrisp Company and could direct staff to implement the speed limit reductions in school zones by issuing an Invitation to Bid on the improvements. This is not recommended because it would delay the implementation of the proposed improvements and would not be expected to result Page 123 of 309 8.10. in a lower cost. FISCAL IMPACT/FUNDING SOURCE The account for CIP Project 800330 (Pavement Markings) is funded by Vehicle Registration Fees (Fund 220). This account ended FY26 with a balance of $31,493.68. The FY27 budget for the same account is $244,000. During the upcoming CIP budget process, the FY26 balance of $31,493.68 will be rolled over and added to the FY27 budget. This will result in a FY27 budget of $275,493.68 for CIP Project 800330 (Pavement Markings). The fourth amendment to the Chrisp Company agreement, which will add $275,493.68 to the contract, will be funded by CIP Project 800330 (Pavement Markings). This will result in a total not-to-exceed contract amount of $785,493.68. The Chrisp contract balance after the proposed Amendment #4 will be $358,131.37 and shown in the table below. Project Account 800330 FY26 Account Balance (rollover to FY27) $31,493.68 FY27 Account Budget $244,000.00 Total Account Balance $275,493.68 Original Chrisp Contract $510,000.00 Amendment #4 $275,493.68 Total Chrisp Contract Amount after Amendment #4 $785,493.68 Current Chrisp Contract Balance as of 7/1/2026 $82,637.69 Amendment #4 $275,493.68 Chrisp Contract Balance after Proposed Amendment $358,131.37 PUBLIC OUTREACH N/A NEXT STEPS If the fourth amendment to the agreement with Chrisp is approved, staff will execute the amendment and authorize Chrisp to implement the reduced speed limits in school zones with the goal of completing prior to August 19. Attachments: Page 124 of 309 8.10. 1. ADDENDUM 4 to Agreement for Services Page 125 of 309 -1- 4845-8215-5540v1 MDOLINGER\04706083 FOURTH AMENDMENT TO AGREEMENT FOR SERVICES WITH CHRISP COMPANY FOR ON-CALL STRIPING AND MARKING MAINTENANCE SERVICES WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Chrisp Company entered into that certain agreement entitled On-Call Striping and Marking Maintenance Services Project No. 20-RFP-PW-451, effective on 11/16/2020, hereinafter referred to as “Original Agreement”; and WHEREAS, City and Chrisp Company 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 11/16/2020 and will continue in effect through 6/30/2027 unless terminated in accordance with the provision of Article 7 of the original 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. 2. Article 4 (Compensation) of the Original Agreement shall be amended to read as follows: In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $785,493.68. 3. The unit prices shown in the Payment Schedule of the Original Agreement shall be replaced with the updated Payment Schedule in Attachment A. 4. This Amendment shall be effective on July 27, 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. 5. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Page 126 of 309 -2- 4845-8215-5540v1 MDOLINGER\04706083 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 CHRISP COMPANY By: By: [signature] [signature] Matt Morley Mark Chrisp [employee name] [name] City Administrator Executive Vice President [title/department] [title] Date: Date: Approved as to Form ATTEST: City Attorney City Clerk Page 127 of 309 8.11. City of Gilroy STAFF REPORT Agenda Item Title: Reduced Prima Facie Speed Limits on Specific Designated Streets Approaching School Zones to 25 Miles Per Hour Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Public Works Submitted by: Nisha Patel, City Engineer Prepared by: Nisha Patel, City Engineer STRATEGIC PLAN GOALS: Not Applicable RECOMMENDATION Adopt a Resolution Determining and Declaring Prima Facie Speed Limits on Specific Designated Streets Approaching School Zones to 25 mph. 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 miles per hour (mph) to 15 or 20 miles per hour and to 25 mph approaching school zones in advance of a January 1, 2031 mandate. On May 18, 2026, the City Council approved an ordinance amending the City municipal code allowing to reduce prima facie speed limits in school zones from 25 mph to 15 mph or 20 mph per the assembly bill. The City’s consultant traffic engineer performed a traffic study for the fourteen public school sites and the two major private school sites. They determined the speed limits for many street segments can be reduced to 15 mph or 20 mph. On June 15, 2026, the City Council approved a resolution approving the lowering speed limits in school zones on selected street segments. Staff did not include lowering of speeds approaching school zones at that time due to the need for additional study and Page 128 of 309 8.11. analysis. Staff is now seeking City Council approval of the lowering of speeds approaching school zones by establishing prima facie speed limits of 25 mph in those areas. In some areas (notably Santa Teresa Boulevard), the speed limit is otherwise transitioning relatively abruptly from 45 mph to 25 mph 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 (AKA street or roadway). 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. School area speed limits formerly applied to roadways “when approaching or passing a school building or the grounds thereof, contiguous to a highway and posted with a standard “SCHOOL” warning sign” and 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. An approach to a school zone is a distance of 500 to 1,000 feet from a school zone. On May 18, 2026, the City Council approved an ordinance amending the City's municipal code to allow the setting of prima facie speed limits in school zones from 25 mph to 15 mph or 20 mph, per the Assembly Bill. On June 15, 2026, the City Council approved a resolution lowering speeds in school zones to 15 mph or 20 mph on selected street segments. The lowering of speeds approaching school zones was not included. ANALYSIS Assembly Bill 382 amended section 22358.4 of the California Vehicle Code as of January 1, 2026, to allow local governments to establish a a 25 mph prima facie limit on a highway when approaching, at a distance of 500 to 1,000 feet from, a school zone. The City’s consultant Traffic Engineer has identified 14 street segments that qualify for the 25-mph prima facie speed limit approaching school zones under section 22358.4 of the California Vehicle Code. Page 129 of 309 8.11. The final recommended street segments and speed limits are included in the Resolution attached to this report. The segments are grouped by the applicable school zone. The list of segments can be amended or added to by resolution of the City Council as may be necessary in the future. Staff plans to prioritize the implementation of the signs with focus on locations involving arterial roadways and major collectors where there is the most significant speed transitions. ALTERNATIVES The City Council could choose not to approve the resolution determining and declaring prima facie speed limits of 25 mph approaching school zones on specific designated streets. This alternative is not recommended, as the community has actively sought, and the City Council previously committed to implementing improvements which are likely to result in reduction of accidents near schools involving pedestrian, bicyclist, and motorist. FISCAL IMPACT/FUNDING SOURCE On April 20, 2026, the City Council approved to amend the budget of the Citywide Safety Improvements Project (No. 801120) to provide for additional funding for the installation or replacement of signs for lowering of speed limits around schools. However, there are adequate funds in the account for CIP Project 800330 (Pavement Markings) to pay for the installation of new signage to lower speeds in and approaching school zones. PUBLIC OUTREACH The City has initiated a public information campaign to let community members know of the proposal to reduce speed limits near school sites. Staff has conveyed the information to Gilroy Unified School District (GUSD) staff as well. NEXT STEPS If Council adopts the resolution establishing reduced prima facie speed limits approaching school zones, the City will work with our on-call traffic signage and striping contractor, Chrisp, to have the new signage installed prior to the first day of the upcoming GUSD school year, August 19th. The City Streets crew may supplement the work of Chrisp to help the deadline to be met. Attachments: 1. Resolution Page 130 of 309 8.11. Page 131 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING REDUCED PRIMA FACIE SPEED LIMITS APPROACHING SCHOOL ZONES PURSUANT TO VEHICLE CODE SECTIONS 22358.4 AND SECTION 22352.2 WHEREAS, Assembly Bill (AB) 382, signed into law on October 10, 2025, and effective as of January 1, 2026 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, 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), where “school zone” is defined as any segment of highway within 500 feet of a school’s grounds (unless otherwise posted); and WHEREAS, 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; 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; and WHEREAS, on May 18, 2026, the City Council adopted an Ordinance amending Section 15.11 of the Gilroy City Code to include vehicle code section 22358 et. seq.; and WHEREAS, on June 15, 2026, the City Council adopted a resolution establishing lower prima facie speed limits of 15 mph and 20 mph on specific designated streets; and WHEREAS, the Ordinance amendment also allows the City Council to set lower speed limits of 25 mph approaching at a distance of 500 to 1,000 feet from, a school zone, under Assembly Bill 382 by Resolution. Page 132 of 309 Resolution No. 2026-XX Reduced Prima Facie Speed Limits Approaching School Zones City Council Regular Meeting | July 27, 2026 Page 2 of 6 NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Gilroy hereby adopt lower Prima Facie speed limits as follows: 1. Christopher High School Site a. Santa Theresa Boulevard (500’ north of Day Road to Day Road) – Speed Limit 25 mph b. Santa Theresa Boulevard (Day Road East to 500’ south of Day Road East – Speed Limit 25 mph c. Day Road (500’ west of Puma Way to Puma Way) – Speed Limit 25 mph 2. Gilroy High School Site a. West 10th Street (Glenview Drive to 500’ west of Glenview Drive) – Speed Limit 25 mph b. Uvas Parkway (500’ north of West 10th Street to West 10th Street) – Speed Limit 25 mph 3. Mount Madonna Continuation High School/ Antonio del Buono Preschool Site a. Wren Avenue (Cohansey Avenue to 120’ north of Vickery Lane) – Speed Limit 25 mph b. Wren Avenue (400’ south of Farrell Avenue to Tatum Avenue) – Speed Limit 25 mph c. Farrell Avenue (200’ east of Church Street to 200’ east of Severance Street) - Speed Limit 20 mph d. Church Street (Chickadee Lane to 200’ north of Trimble Court) – Speed Limit 25 mph e. Church Street (Bennett Street to West Las Animas Avenue) – Speed Limit 25 mph 4. Brownell Middle School Site a. Hanna Street (El Cerrito Way to Broadway) – Speed Limit 25 mph b. Hanna Street (400’south of 3rd Street to 200’ south of 4th Street) – Speed Limit 25 mph Page 133 of 309 Resolution No. 2026-XX Reduced Prima Facie Speed Limits Approaching School Zones City Council Regular Meeting | July 27, 2026 Page 3 of 6 c. 3rd Street (Rea Street to Princevalle Street) – Speed Limit 25 mph d. 3rd Street (Rosanna Street to Church Street) – Speed Limit 25 mph 5. South Valley Middle School/ Gilroy Prep School Site a. Murray Avenue (1000’ north of Adams Court to 500’ north of Adams Court) – Speed Limit 25 mph b. Murray Avenue (450’ south of IOOF Avenue to 950’ south of IOOF Avenue) – Speed Limit 25 mph c. Forest Street (Walnut Lane to Fortunata Place) – Speed Limit 25 mph 6. Eliot Elementary School Site a. Chestnut Street (200’ north of East 6th Street to 500’ north of East 7th Street) - Speed Limit 25 mph b. Chestnut Street (500’ south of Old Gilroy Street to East 9th Street) – Speed Limit 25 mph 7. El Roble Elementary School Site a. Third Street (100’ west of Santa Paula Drive to 400’ west of Wren Avenue) – Speed Limit 25 mph b. Third Street (Filice Drive to 200’ east of Miller Avenue) – Speed Limit 25 mph c. Wren Avenue (Montebello Drive to 400’ north of 3rd Street) – Speed Limit 25 mph d. Wren Avenue (Byers Street to Clark Way) - Speed Limit 25 mph 8. Glen View Elementary School Site a. Princevalle (200’ north of West 7th Street to Lexington Place) – Speed Limit 25 mph 9. Las Animas Elementary School Site a. Luchessa Avenue (200’ west of Godani Street to 400’ west of Cimino Street) – Speed Limit 25 mph Page 134 of 309 Resolution No. 2026-XX Reduced Prima Facie Speed Limits Approaching School Zones City Council Regular Meeting | July 27, 2026 Page 4 of 6 b. Luchessa Avenue (400’ east of Greenfield Drive to Village Place) – Speed Limit 25 mph 10. Rod Kelly Elementary School/ Gilroy Adult Education Center Site a. Kern Avenue (Creekside Court to Mantelli Drive) – Speed Limit 25 mph b. Kern Avenue (Birch Place to Welburn Avenue) – Speed Limit 25 mph 11. Pacific Point Christian Elementary School (Private) a. Mantelli Drive (Leanard Way to 400’ west of Calle del Rey) – Speed Limit 25 mph b. Mantelli Drive (300’ east of Cally del Rey to Lions Creek Drive) – Speed Limit 25 mph 12. Saint Mary School (Private) a. Church Street (500’ north of Howson Street to Howson Street) – Speed Limit 25 mph b. Church Street (400’ south of First Street to 300’ south of 2nd Street) – Speed Limit 25 mph c. Monterey Street (500’ north of Howson Street to Howson Street) – Speed Limit 25 mph (subject to approval by Caltrans) d. Monterey Street (400’ south of First Street to IOOF Avenue) – Speed Limit 25 mph NOW, THEREFORE, BE IT RESOLVED that the City Council Hereby establishes reduced prima facie speed limits approaching school zones pursuant to vehicle code sections 22358.4 and 22352.2. PASSED AND ADOPTED this 27th day of July 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Page 135 of 309 Resolution No. 2026-XX Reduced Prima Facie Speed Limits Approaching School Zones City Council Regular Meeting | July 27, 2026 Page 5 of 6 APPROVED: ___________________ Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 136 of 309 Resolution No. 2026-XX Reduced Prima Facie Speed Limits Approaching School Zones City Council Regular Meeting | July 27, 2026 Page 6 of 6 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 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 137 of 309 8.12. City of Gilroy STAFF REPORT Agenda Item Title: Approval of Policy on Public Comment and Meeting Decorum During City Council Meetings Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Administration Submitted by: Kim Mancera, City Clerk Prepared by: Kim Mancera, City Clerk STRATEGIC PLAN GOALS: RECOMMENDATION Adopt a City Council Policy on Public Comment and Meeting Decorum during City Council meetings. EXECUTIVE SUMMARY The purpose of this policy is to establish clear procedures and expectations for public comment and decorum at Gilroy City Council meetings. The City Council recognizes the importance of public participation in local government and is committed to providing members of the public with a meaningful opportunity to address the Council in accordance with the Ralph M. Brown Act. This Policy establishes procedures governing public comment and standards of decorum intended to promote respectful participation, protect the rights of all attendees, and ensure the orderly and efficient conduct of City Council meetings. BACKGROUND Senate Bill 707 (2025) amended the Brown Act to require public participation via two- way telephonic service and/or two-way audiovisual platform effective July 1, 2026. On March 2, 2026, the Gilroy City Council adopted a policy on Disruptions of Telephonic or Internet Service During Public Meetings. The City of Gilroy has implemented Zoom as Page 138 of 309 8.12. the City’s designated platform for remote public participation. Zoom provides both means, two-way telephonic and audiovisual. This policy is to ensure that public comments during Gilroy City Council meetings are conducted in an orderly, respectful, and productive manner. ANALYSIS The proposed Public Comment and Meeting Decorum Policy establishes procedures consistent with state law and incorporates best practices commonly used by public agencies. Key components include: • Clear rules for when public comment may be provided. • Speaker time limits, typically three minutes, with flexibility for adjustment by the Mayor. • Requirements for speaker conduct, including directing comments to the full Council and avoiding personal attacks or disruptive behavior. • Meeting decorum standards for all attendees, including prohibitions on disruptive actions, intimidation, and noise. • Enforcement authority for the Mayor or presiding officer to maintain order, including warnings, removal of individuals, and brief recesses when necessary. • Commitment to ADA accessibility and reasonable accommodations for public participation. • Confirmation that meetings are recorded and broadcast publicly. The policy is intended to provide clear expectations that support an inclusive and respectful environment while allowing the Council to manage meetings effectively. ALTERNATIVES None. FISCAL IMPACT/FUNDING SOURCE None. PUBLIC OUTREACH This item has been properly noticed on the City Council agenda in accordance with applicable open meeting requirements. Adoption of the policy occurs during a public meeting, providing members of the public an opportunity to review and comment on the proposed policy. Page 139 of 309 8.12. NEXT STEPS Upon City Council adoption, staff will implement the policy for all City Council meetings. The policy will be incorporated into the City’s administrative procedures and shared with relevant staff responsible for meeting management and technology support. Staff will also monitor implementation and update procedures as needed to ensure continued compliance with state law and best practices through the duration of Senate Bill 707. Attachments: 1. City Council Policy on Public Comment and Meeting Decorum Page 140 of 309 City of Gilroy City Council Policy on Public Comment and Meeting Decorum Adopted: July 27, 2026 Page 141 of 309 1. Background Senate Bill 707 (2025) amended the Brown Act to require public participation via two- way telephonic service and/or two-way audiovisual platform effective July 1, 2026. On March 2, 2026, the Gilroy City Council adopted a policy on Disruptions of Telephonic or Internet Service During Public Meetings. The City of Gilroy has implemented Zoom as the City’s designated platform for remote public participation. Zoom provides both means, two-way telephonic and audiovisual. This policy is adopted to ensure that public comments during Gilroy City Council meetings are conducted in an orderly, respectful, and productive manner. 2. Purpose The purpose of this policy is to establish clear procedures and expectations for public comment and decorum at Gilroy City Council meetings. The City Council recognizes the importance of public participation in local government and is committed to providing members of the public with a meaningful opportunity to address the Council in accordance with the Ralph M. Brown Act. This Policy establishes procedures governing public comment and standards of decorum intended to promote respectful participation, protect the rights of all attendees, and ensure the orderly and efficient conduct of City Council meetings. 3. Public Participation 3.1 The City Council welcomes and encourages public participation during meetings. 3.2 Members of the public may address the City Council during: (a) Public comment periods for individual agenda items; and (b) The general public comment period for non-agendized items within the jurisdiction of the City of Gilroy. 3.3 Individuals wishing to speak in person shall complete a speaker card and follow any instructions provided by the City Clerk’s Office to facilitate orderly participation. 3.4 Individuals wishing to speak virtually shall raise their virtual hand during the item that they would like to speak on. 3.5 When participating in the meeting via two-way telephonic means, dial #9 to raise your virtual hand. 3.6 Public comment will be heard first from those attending in person, with the submission of a speaker card. Once that is complete, City Clerk will move to those on Zoom who have their virtual hand raised. Following public comments from Zoom, City Clerk will close the public comment period for that item. 3.7 Once the third speaker has provided comment on an item, there will be no further Page 142 of 309 speaker cards or virtual raised hands taken for that item. 4. Time Limits 4.1 Speakers will generally be allotted up to three minutes to comment. 4.2 The Mayor may adjust time limits when necessary to ensure the efficient conduct of the meeting, accommodate a large number of speakers, or address time constraints. 4.3 Speakers may not transfer or combine their allotted time with another individual. 5. Speaker Conduct 5.1 Comments shall be directed to the City Council as a whole, not to individual Council Members, staff, or members of the public. 5.2 Speakers must limit their remarks to matters relevant to the agenda item being discussed. General public comment must relate to matters within the jurisdiction of the City of Gilroy. 5.3 Speakers shall not engage in conduct that actually disrupts the orderly conduct of the meeting, including refusing to yield the podium after expiration of allotted time, physically interfering with the meeting, threatening violence, or otherwise preventing the Council from conducting business. 6. Meeting Decorum 6.1 All persons attending a City Council meeting, in person or via remote participation, must conduct themselves in a respectful manner. 6.2 Members of the audience shall refrain from behavior that disrupts the meeting, including applause, booing, chanting, shouting, or other demonstrations that materially interfere with the ability of the Council to conduct its business. 6.3 Visual displays such as signs may be permitted, provided they do not block the view of others or interfere with the meeting. 6.4 Demonstrations or noise (chanting, clapping, shouting, or loud collective responses) that disrupt the meeting are prohibited in the Council Chamber. 6.5 The Mayor or presiding officer may call any person to order who violates this policy. Page 143 of 309 7. Enforcement of Decorum 7.1 The Mayor or presiding officer has the authority to: (a) Issue verbal warnings; (b) Request that a speaker conclude their remarks; (c) Order removal of individuals who continue disruptive behavior; (d) Direct a recess to restore order; (e) In the event that the meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of the meeting unfeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the mayor may order the meeting room cleared and the meeting may continue in session, in accordance with Government Code Section 54957.9. Representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend. 7.2 Before directing the removal of any individual, the Mayor should provide a warning unless the conduct presents an immediate threat to public safety or substantially disrupts the meeting. 7.3 Removal shall be based upon disruptive conduct rather than the viewpoint expressed. 7.4 The Gilroy Police Department may assist in enforcing decorum and removing individuals when necessary. 7.5 Individuals removed for disruptive behavior may be excluded for the remainder of the meeting, consistent with applicable law. 8. Accessibility and Accommodations 8.1 The City of Gilroy is committed to ensuring equal access to public meetings. 8.2 Reasonable accommodations will be provided upon request for individuals with disabilities, in accordance with the Americans with Disabilities Act 9. Meeting Recording 9.1 City Council meetings are recorded and may be broadcast publicly. 9.2 Speakers and attendees should be aware that their comments and behavior become part of the public record. 9.3 Written materials submitted to the City Council during a meeting may become public records subject to disclosure under the California Public Records Act. 10. Authority Page 144 of 309 This Policy is adopted pursuant to the Ralph M. Brown Act (Government Code sections 54950 et seq.), applicable provisions of the California Constitution, and the City's authority to regulate the orderly conduct of public meetings. 11. Applicability This policy applies to all open and public meetings of the City Council under the Brown Act. 12. Review and Updates This policy may be amended by the City Council at a noticed public meeting in open session. Page 145 of 309 9.1. City of Gilroy STAFF REPORT Agenda Item Title: Award a Three-Year Contract to Advanced Integration & Controls (AIC), with the Option to Extend for Two Additional One-Year Periods, for a Total Contract Amount of $450,000 for Water and Wastewater SCADA Controls System Integration and Support Request Services Meeting Date: July 27, 2026 From: Matt Morley, City Administrator Department: Public Utilities Submitted by: Tyson Enzweiler, Utilities Operations Manager Prepared by: Tyson Enzweiler, Utilities Operations Manager STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure RECOMMENDATION 1. Award a three-year contract to Advanced Integration & Controls (AIC) for a total amount not to exceed $450,000 with the option to extend two additional one-year terms for water and wastewater SCADA controls system integration and support request services; 2. Authorize the City Administrator to execute the contract and all associated documents; and 3. Authorize the City Administrator to execute up to two subsequent one-year contract amendments, subject to review and recommendation by the Utilities Director. EXECUTIVE SUMMARY SCADA is the City’s primary control system for monitoring and managing water production, storage levels, distribution pressures, pumping operations, and wastewater collection. In a period when cybersecurity risks and threats are increasing, maintaining a Page 146 of 309 9.1. secure, reliable, and resilient SCADA system is essential to protecting critical infrastructure and ensuring uninterrupted utility operations. The Utilities Department recommends entering a three-year services contract with Advanced Integration & Controls (AIC) to provide Supervisory Control and Data Acquisition (SCADA) system supporting water and wastewater collection system operations. The total contract amount is $450,000 with two optional one-year extensions. BACKGROUND The current contract with Mission Controls Co. officially expired on June 30, 2026, which necessitated initiating a new Request for Proposal to secure continued services. ANALYSIS The City issued Request for Proposals No. 26-RFP-UT-539 in May 2026 and received five proposals on June 11, 2026 from the following firms: Telstar Instruments (Telstar), Industrial Control Systems Online Inc. (ICS), ACT Solutions, Advanced Integration & Controls (AIC), and Schrader Mechanical Inc. (SMI). A scoring committee reviewed and ranked all submissions (see attached Exhibit A) based on the evaluation criteria outlined in the RFP. After assessing each proposal’s technical approach, project understanding, qualifications, experience on comparable projects, staffing capacity, and overall cost-effectiveness, AIC was identified as the most qualified proposer. Their methodology demonstrated a clear, comprehensive understanding of the City’s operational needs and included a well-defined plan for conducting a full conditions assessment of the City’s existing control systems. This assessment will form the foundation of a three-year implementation strategy focused on modernizing and upgrading the City’s telemetry, instrumentation, and control infrastructure. The strategy includes prioritizing system deficiencies, sequencing improvements, and integrating updated technologies to enhance reliability, operational efficiency, and long-term resiliency. AIC’s proposed approach provides the City with a structured path forward—from assessment through phased implementation—to ensure that upgrades are completed systematically and in alignment with operational and budgetary goals. ALTERNATIVES The alternative is to not award the contract. Staff does not recommend this option since the Ctiy does not have the internal resources to perform this work and it would (vulnerability) delay the project. Page 147 of 309 9.1. Currently, the Utilities Department does not have personnel with the specialized training, certifications, or experience necessary to perform SCADA system integration, programming, troubleshooting, or maintenance at the level required to support the City’s critical infrastructure. The City’s SCADA system is the primary platform used to monitor and control water production, distribution pressures, storage levels, pumping operations, and wastewater collection. These functions are essential to maintaining safe and reliable water service. Without qualified professional SCADA support, the City would face significant operational risk, including delayed detection of system faults, unplanned outages, and reduced ability to respond effectively to emergencies. Any of these conditions could compromise the City’s ability to provide continuous potable water service to residents and businesses. For these reasons, performing SCADA work in-house is not a feasible alternative. FISCAL IMPACT/FUNDING SOURCE The proposed agreement with Advanced Integration & Controls (AIC) is for a total contract amount of $450,000 to allow for comprehensive project planning, efficient scheduling, and effective execution of the multi-year SCADA assessment and implementation strategy. While the FY27 adopted budget included limited funding of $49,500 in the Water Fund (Fund 705) for SCADA-related work, this allocation did not anticipate a full systemwide conditions assessment or the development of a three-year modernization plan. In addition, the Wastewater Fund (Fund 700) will contribute $30,000 from the FY27 adopted appropriations. This contribution is due to the Gavilan Lift Station—previously operated and maintained under contract with Jacobs Solutions—relies heavily on SCADA functionality for monitoring, control, and emergency response. As the City has transitioned those responsibilities in-house, the need for reliable, upgraded SCADA systems directly affects wastewater operations, making the Wastewater Fund’s participation appropriate and necessary. To fully fund the project, staff recommends increasing FY27 appropriations in the Water Fund (Fund 705) by the remaining $370,500. Partial funding for this effort was already included in the FY27 budget under Fund 705 (Water), Utilities Water Operations (Org 7058020), but additional resources are required to support the full scope of the conditions assessment and subsequent phased upgrades. PUBLIC OUTREACH Page 148 of 309 9.1. NEXT STEPS If approved by Council, the agreement will be executed, and staff will work with the contractor to develop a schedule to begin activities in August 2026. Attachments: 1. Resolution_SCADA 2. Final_Summary Rating RFP 26-RFP-UT-539 3. Gilroy - SCADA Integration Services 2026 4. City of Gilroy PowerPoint - SCADA RFP Page 149 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY TO APPROVE A BUDGET AMENDMENT FOR AWARDING A CONTRACT TO ADVANCED INTEGRATION & CONTROLS (AIC), WITH THE POSSIBILITY TO EXTEND FOR TWO ADDITIONAL ONE-YEAR TERMS, FOR A TOTAL CONTRACT AMOUNT OF $450,000 FOR WATER AND WASTEWATER SCADA CONTROLS SYSTEM INTEGRATION AND SUPPORT REQUEST SERVICES 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 2026-2027 for the City of Gilroy in the staff report dated July 27, 2026 ; and WHEREAS, on May 18, 2026, the City issued Request for Proposals No. 26-RFP-UT-539, and five proposals were received from Telstar Instruments (Telstar), Industrial Control Systems Online Inc. (ICS), ACT Solutions, Advanced Integration & Controls (AIC), Schrader Mechanical Inc. (SMI); and WHEREAS, Advanced Integration & Controls (AIC) was determined to be the most qualified due to their understanding and approach to the project, proposed scope of services, qualifications, experience with similar projects, capacity to provide qualified personnel, and project cost- effectiveness in the amount of $450,000; and WHEREAS, there are not sufficient funds appropriated in the project account to fully fund the remaining needed amount of $370,500; and WHEREAS, sufficient funds are available within Water Fund (Fund 705) to provide the necessary additional appropriations for the project; and NOW, THEREFORE, BE IT RESOLVED the appropriations for Fiscal Year 2026-2027 for the Water Fund (Fund 705) to award a three-year contract to Advanced Integration & Controls (AIC) with the possibility to extend for two additional one-year terms for Water and Wastewater SCADA Controls System Integration and Support Request Services shall be increased by $370,500. PASSED AND ADOPTED this 27th day of July 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Page 150 of 309 Resolution No. 2026-XX Short Title City Council Regular Meeting | Date Page 2 of 2 APPROVED: ___________________ Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk 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 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 151 of 309 WATER AND WASTEWATER SCADA CONTROLS SYSTEM INTEGRATION AND SUPPORT RFP No. 26-RFP-UT-539 Selection Criteria (Total Possible Points - 100) Date: Criteria Maximum Points Telstar Advanced Intergration & Controls Schrader Mechanical Inc. Industrial Control Systems Online Inc. ACET Solutions Fee Structure (0-15 pts)15 14 15 6 12 13 Include a work plan of staff distribution. Capability (0-25 pts)25 22 24 10 24 19 Quality, feasibility, and innovation of the proposed solution. Project management and scheduling robustness. Expertise and Qualifications (0-20 pts)20 18 20 8 19 17 Provide resumés listing qualifications and past experience. Key staff person(s) participating in the contractor facility visit and/or contract finalist interview. Key staff members typically include a combination of, but not limited to SCADA Engineers, SCADA Technicians, Network/IT Specialists, and/or Electricians/Installers. Proximity of contract resources to contract sites (0-10 pts)10 8 9 7 10 6 Provide a comprehensive description of the resources, plan and methodology that will be used to provide resource for the different elements of the requested on-call and emergency repair services. Project Approach and Team (0-20 pts)20 18 20 9 18 18 Identify the key contract team leader(s) who will direct all on-site contract services and who will interface routinely with the designated City staff. Provide a minimum of one- page résumé listing qualifications and past experience. Key staff person(s) shall participate in the contractor facility visit and/or contract finalist interview. Key staff members typically include a combination of, but not limited to SCADA Engineers, SCADA Technicians, IT Specialists, and/or Electricians/Installers. References (0-10 pts)10 10 10 8 10 6 Provide three references (name, address and phone number) for the project team for recent similar work that the City may contact and inquire about your work. Total Point Score - 100 Total 100 90 98 48 93 79 NOTES: AVERAGE SCORE Exhibit A Page 152 of 309 Page 153 of 309 Page 154 of 309 Page 155 of 309 Page 156 of 309 Page 157 of 309 Page 158 of 309 Page 159 of 309 Page 160 of 309 Page 161 of 309 Page 162 of 309 Page 163 of 309 Page 164 of 309 Page 165 of 309 Page 166 of 309 Page 167 of 309 Page 168 of 309 Page 169 of 309 Page 170 of 309 Page 171 of 309 Page 172 of 309 Page 173 of 309 Page 174 of 309 Page 175 of 309 Page 176 of 309 Page 177 of 309 Page 178 of 309 Page 179 of 309 Page 180 of 309 Page 181 of 309 UTILITIES DEPARTMENT • RFP No. 26-RFP-UT-539 Water & Wastewater SCADA Controls System Integration & Support Services Recommendation to award a three-year contract to Advanced Integration & Controls (AIC) PRESENTED BY Tyson Enzweiler, Utilities Operations Manager DATE July 27, 2026 Page 182 of 309 What We'll Cover Three things to know about this request The Situation Contract with Mission Controls expired SCADA needs specialized, ongoing support The Process AIC was competitively selected through an RFP The Ask Award a three-year, $450,000 contract Page 183 of 309 Recommended Council Actions Three actions requested today 1. Award the Contract $450,000 to AIC, three-year term 2. Authorize Execution City Administrator executes the agreement 3. Authorize Amendments Two future one-year extensions Page 184 of 309 Background How we got here 2016 Original SCADA support contract awarded to Mission Controls Co. Current Status City issued a competitive RFP to secure continued service and reliability June 2026 Contract expired Page 185 of 309 Competitive Selection RFP No. 26-RFP-UT-539 5 Proposals Received from qualified SCADA firms Scored on Evaluation Criteria Approach, qualifications, and cost-effectiveness and proximity AIC Selected Ranked most qualified by the scoring committee Page 186 of 309 What is SCADA? SCADA (Supervisory Control and Data Acquisition) SCADA A control system that lets operators remotely monitor and control field equipment – pumps, valves, well sites, lift stations. How it Works 1.Sensors and PLC’s collect real time data. 2.Data flows over a communication network 3.Operators view system status and issue commands Page 187 of 309 Recommended Council Actions Three actions requested today 1. Award the Contract $450,000 to AIC, three-year term 2. Authorize Execution City Administrator executes the agreement 3. Authorize Amendments Two future one-year extensions Page 188 of 309 Thank you! 9Page 189 of 309 10.1. City of Gilroy STAFF REPORT Agenda Item Title: Approval of AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit Memoranda of Understanding and Related Salary Schedules for the Period of July 1, 2026 - June 30, 2029; and the Unrepresented Confidential, Full-Time, Non- Exempt, and Hourly, Part-Time/Temporary/Seasonal Employees Salary Schedules for the Same Period. Meeting Date: July 27, 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 1. Approve the Memoranda of Understanding with AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit for the period July 1, 2026–June 30, 2029. 2. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 General Unit. 3. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with AFSCME, Local 101 Supervisory Unit. 4. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Unrepresented, Confidential, Full-Time, Non-Exempt employees. 5. Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2026, July 1, 2027, and July 1, 2028 salary schedules associated with the Page 190 of 309 10.1. Unrepresented, Hourly, Part-Time/Temporary/Seasonal employees. EXECUTIVE SUMMARY The City of Gilroy is a public employer. As such, and consistent with the Meyers-Milias- Brown Act (MMBA), the City engages in a collective bargaining process with represented employees through bargaining units. The process usually occurs over a three to four month period before the expiration of the existing labor contract. City employees (except executives and certain others) are organized into five different bargaining units and are represented by unions. The product of the collective bargaining process is a Memorandum of Understanding (MOU). MOUs specify the terms and conditions of employment. AFSCME Local 101 has two bargaining initis with the City of Gilroy; a General Employee Unit and a Supervisory Employee Unit. The City also has Unrepresented, Confidential, Full-Time, Non-Exempt employees. These full-time employees have confidential duties and are not represented by a union and historically have received the same salary and benefit increases as the AFSCME group. In addition, the City has Unrepresented, Hourly, Part-Time/Temporary/Seasonal employees. These part-time/temporary/seasonal employees are at-will and unbenefitted and historically have received the same salary increase as the AFSCME group. BACKGROUND Staff recently concluded negotiations with AFL-CIO, AFSCME, Local 101 General and Supervisory groups (approximately 125 covered positions) for successor Memoranda of Understanding (MOUs) including salary schedules for the period of July 1, 2026 - June 30, 2029, in conformance with City Council direction. Final copies of the MOUs and the corresponding salary schedules are attached for Council's review and approval. Staff worked with bargaining team members to prepare the changes to the MOU documents. The final drafts of the MOUs have been reviewed by representatives of the bargaining team and designated representatives have signed-off on the final documents. The City negotiating team will sign the documents following City Council approval. The main focus of the negotiations was to increase the salary schedules and health benefit contributions for purposes of recruitment and retention of employees. As the Council is aware, the cost-of-living continues to increase and the higher price of gasoline, housing, and groceries are challenges for City of Gilroy employees. The April 2025-2026 Consumer Price Index for Urban Wage Earners & Clerical Works (CPI-W) in our region is 3.8%. Maintaining a competitive compensation package is a priority for the organization and allows the City to hire and retain employees who provide high-quality services to the community. The three-year term will provide stability for the employees and the organization overall, and allows staff to plan and budget for the approved salary Page 191 of 309 10.1. and benefit increases. ANALYSIS The main areas of change to the AFSCME, Local 101 General and Supervisory Unit MOUs are summarized below: • Three-year contract terms: July 1, 2026 - June 30, 2029 • Salary increases as follows: o 3.8% salary increase effective July 1, 2026 o 3.7% salary increase effective July 1, 2027 o 3.0% salary increase effective July 1, 2028 • Completion of a total compensation study for AFSCME classifications by December 31, 2028 to inform successor negotiations for the period beginning July 1, 2029 • Increase the City contribution to medical and dental insurance premiums by 5% each calendar year (January 1, 2027, January 1, 2028, and January 1, 2029) • Established cap on the amount of medical-in-lieu pay for those employees who waive medical insurance • Increased meal allowance from $10 per meal to $15 per meal for those required to work more than two hours beyond their normal shift time • Incorporated holiday side letter for the March 31st holiday • Realignment of the certificate pay program for Public Works Operations and Utilities Operations employees to reflect the reorganization and establishment of Sections within the new Utilities Department. • Four-hour increase to personal leave hours for non-sworn police department employees (PSC and PRT) and clarify the use of personal leave time for all employees • Update bereavement leave language to align with CA state law • Developed revised job descriptions for the following job classifications: o Public Works Maintenance Worker I o Public Works Maintenance Worker II o Utilities Maintenance Worker I o Utilities Maintenance Worker II o Associate Engineer (new) o Assistant Engineer (formerly Engineer II) o Junior Engineer (formerly Engineer I) • Other minor language clean-up/clarification The same salary and benefit increases noted above are applicable to the Unrepresented/Confidential/Non-Exempt employees. The same pay rate increases noted above are applicable to the Unrepresented/Part- Page 192 of 309 10.1. Time/Temporary/Seasonal/At-Will employees. ALTERNATIVES The City and AFSMCE, Local 101 have proceeded forward with good faith negotiations. The final MOUs for approval are consistent with the authority granted by the Council. Therefore, it is recommended that the City Council proceed with final approval of the MOUs and salary tables. There is no other recommended alternative. FISCAL IMPACT/FUNDING SOURCE The FY 27 cost for the MOU and salary resolution changes are estimated to be approximately $655,000 with approximately 62% of the cost borne by the general fund and 38% of the cost borne by other funds. The FY 28 cost for the MOU and salary resolution changes are estimated to be approximately $712,000 with approximately 62% of the cost borne by the general fund and 38% of the cost borne by other funds. The FY 29 cost for the MOU and salary resolution changes are estimated to be approximately $690,000 with approximately 62% of the cost borne by the general fund and 38% of the cost borne by other funds. The above cost estimates include costs for AFSCME, Local 101 (General and Supervisory Units), Unrepresented/Full-Time/Confidential/Non-Exempt employees, and Unrepresented/Part-Time/Temporary/Seasonal/At-Will/Hourly employees. For FY 27, the cost breakdown by employee group is: • AFSCME (General & Supervisory Units) - $592,537 • Unrepresented/Full-Time/Confidential/Non-Exempt - $19,713 • Unrepresented/Part-Time/Temporary/Seasonal/At-Will/Hourly - $42,750 The FY 27 costs will be absorbed within the current FY 27 budget and the FY 28 and FY 29 costs will be incorporated into the FY 28 & 29 biennial budget process. PUBLIC OUTREACH The draft MOUs (tentative agreements) were posted on the City of Gilroy website for ten days prior to City Council consideration as required by the City of Gilroy Open Govenrment Ordinance. NEXT STEPS Page 193 of 309 10.1. Following City Council approval of the new MOUs and salary schedules, the final MOUs will be signed by the City representatives and implemented per the terms and timing indicated within the MOUs and salary schedule resolutions. Attachments: 1. AFSCME General Unit MOU Packet July 1, 2026 - June 30, 2029 for agenda packet 2. AFSCME Supervisory Unit MOU Packet July 1, 2026 - June 30, 2029 for Agenda Packet 3. AFSCME Local 101 General Unit Salary Resolution and Schedules July 1, 2026 - June 30, 2029 for agenda packet 4. AFSCME Local 101 Supervisory Unit Salary Resolution and Schedules July 1, 2026 - June 30, 2029 for agenda packet 5. Unrep Confidential Non Exempt Resolution and Salary Schedules July 1 2026 - June 30, 2029 for agenda packet 6. Part-Time Temporary Seasonal Resolution and Salary Schedules July 1 2026 - June 30, 2029 for agenda packet Page 194 of 309 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF GILROY AND AFSCME, AFL-CIO, LOCAL 101 GILROY CHAPTER GENERAL UNIT JULY 1, 2026 – JUNE 30, 2029 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 195 of 309 TABLE OF CONTENTS AFSCME, LOCAL 101 GENERAL UNIT MOU ARTICLE/SECTION DESCRIPTION PAGE NUMBER ARTICLE I PARTIES TO THE AGREEMENT 1 ARTICLE II RECOGNITION AND SCOPE 1 ARTICLE III CITY RIGHTS 1 Section A In General 1 Section B Rights Enumerated 1 Section C Employee Grievances Not Impaired 2 Section D Consultations with Union 2 ARTICLE IV UNION RIGHTS 2 Section A Union Security 2 Section B Information 3 Section C Employee Orientation 3 ARTICLE V SALARIES AND OTHER COMPENSATION 3 Section A Salaries 3 Section B Training 5 Section C Retention/Recognition Incentive/Health Reimbursement Arrangement 6 Section D Retirement Plan and Contributions 7 Section E Shift Differential 7 Section F Tuition Reimbursement 8 Section G Overtime 8 Section H Stand-By Pay 9 Section I Call Back Pay 10 Section J Temporary Upgrade Pay 10 Section L Certificate/License Pay 11 Section M Bi-Lingual Pay 13 Section N Deferred Compensation 14 ARTICLE VI INSURANCE PROGRAMS 14 Section A Medical and Dental Insurance 14 Section B Life Insurance 15 Section C Long Term Disability Insurance 16 ARTICLE VII LEAVES 16 Section A Vacation Leave 16 Section B Sick Leave 16 Section C Personal Leave 17 Section D Bereavement Leave 17 Section E Holidays 18 Section F Christmas Eve Mandatory Closure 19 Section G No Use of Leave to Extend Retirement or Separation Date 19 1 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 196 of 309 TABLE OF CONTENTS AFSCME, LOCAL 101 GENERAL UNIT MOU ARTICLE/SECTION DESCRIPTION PAGE NUMBER ARTICLE VIII MISCELLANEOUS 19 Section A Uniforms 19 Section B Safe Work Place Commitment 21 Section C Safety Committee 21 Section D Tool Allowance 21 Section E Contracting Out 22 Section F Union Leave 22 Section G City-Paid Meal 23 Section H Employee Commitment 23 Section I Probationary Period 24 Section J Residency Requirements 24 Section K Eyeglass Replacement 24 Section L Layoff Policy 24 Section M Employee Assistance Program 25 Section N Grievance and Disciplinary Action 25 Section O Bulletin Boards, Mail, and E-mail 27 Section P Donation of Vested Time 27 Section Q Human Resources File 27 Section R Labor Management Committee 27 Section S Employee Performance Appraisal 27 Section T Equal Employment Opportunity 28 Section U Alternate Work Schedules 28 Section V DMV Pull Notice Program 28 Section W Payroll Date and Direct Deposit 29 Section X Change of Work Schedule (Public Safety Communicators)29 ARTICLE IX PEACEFUL PERFORMANCE 29 ARTICLE X REINSTATEMENT 29 ARTICLE XI REOPENERS 30 ARTICLE XII FULL UNDERSTANDING 30 ARTICLE XIII SAVINGS PROVISION 30 ARTICLE XIV TERM 31 EXHIBITS Exhibit A (1-3)Salary Tables - General Unit 9 pages Exhibit B Certificate/License Pay Chart - General Unit 3 pages Exhibit C Mechanic's Tool Policy 5 pages 2 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 197 of 309 Page 1 of 31 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF GILROY AND AFSCME, AFL, CIO, LOCAL 101 GILROY CHAPTER GENERAL UNIT JULY 1, 2026 - JUNE 30, 2029 ARTICLE I. PARTIES TO THE AGREEMENT This Memorandum of Understanding is jointly prepared and executed by representatives of the City of Gilroy (hereinafter CITY) and the Gilroy Employee Association affiliated with the American Federation of State, County, and Municipal Employees (AFSCME), Local 101, AFL-CIO (hereinafter UNION) for presentation to, and consideration by, the City Council of CITY. It shall not be binding until ratified by the UNION and adopted by the City Council. ARTICLE II. RECOGNITION AND SCOPE CITY hereby recognizes UNION as the recognized employee organization for purpo ses of Government Code 3500 et seq. and the Employer-Employee Relations Policy of CITY (City Council Resolution 85-25). Such recognition shall extend only to the representation of employees holding permanent positions in the General Unit. ARTICLE III. CITY RIGHTS Section A. In General: All CITY rights and functions, except those which are expressly abridged by this Agreement, shall remain vested with CITY. Section B. Rights Enumerated: Nothing in this Agreement shall be construed to restrict any legal or inherent exclusive CITY rights with respect to matters of general legislative or managerial policy which include but are not limited to: Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 198 of 309 Page 2 of 31 the exclusive right to determine the mission of its constituent sections; set standards of select ion for employment and promotion; train, direct and assign its employees; require overtime work; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of CITY operations; determine the methods, means and personnel by which CITY operations are to be conducted; determine the content of job classifications; take all necessary actions to prepare for and carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. CITY has the right to make reasonable rules and regulations pertaining to employees consistent with this Agreement. Section C. Employee Grievances Not Impaired: 1. The exercise of CITY management rights shall not preclude a grievant from presenting a grievance in accordance with the Human Resources Rules and Regulations, concerning an adverse effect of the exercise of such rights upon employee; provided, however, the basic rig ht of management to act hereunder or make decisions is unimpaired. 2. Notwithstanding paragraph 1, above, bargaining unit members must utilize the Grievance Procedure contained in Article VIII (P) of the MOU rather than the Human Resources Rules and Regulations for any grievances involving the interpretation, application, or alleged violation of this memorandum of understanding. Section D. Consultations with UNION: This Agreement is not intended to restrict the right of CITY to consult with UNION regarding matters within the right of CITY to determine. However, the parties understand that such consultation shall not create any obligation to meet and confer over issues not within the scope of representation. Pursuant to MMBA Section 3504, the scope of representation shall include all matters relating to employment conditions and employer-employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment, except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order. ARTICLE IV. UNION RIGHTS Section A. Union Security: 1. An employee in one of the classes included in the Unit may at any time execute a payroll deduction authorization form (“Deduction Authorization Form”) as furnished by AFSCME. 2. AFSCME will be custodian of records for such Deduction Authorization Form and will provide the City with a certification that it has and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. AFSCME shall not be required to provide the City a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization. However, AFSCME will provide the City with a certification document for each employee with sufficient information to allow the City to identify the appropriate level of deductions. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 199 of 309 Page 3 of 31 3. The City shall begin deductions in the amount prescribed by AFSCME in the first full payroll period after receipt of written certification of employee authorization from AFSCME if received on or before the 20th of the month. Otherwise, the deduction will begin the following month. 4. The City shall direct employee requests to cancel or change deductions to AFSCME and shall rely on information provided by AFSCME regarding whether deductions for an employee organization were properly canceled or changed. 5. Consistent with state law, AFSCME shall indemnify and save harmless the City, its officers and employees, for (1) any claims made by an employee for deductions made in reliance on AFSCME’s certification regarding a Deduction Authorization Form and (2) any claims made by an employee for deductions made in reliance on information provided by AFSCME regarding changes or cancellations to the deduction authorization. 6. The Union shall have the right to use City conference rooms and meeting facilities on the same basis as other governmental organizations. Use of non-public areas shall require prior authorization by the Department Head or designee. All requests for use of facilities shall be made through the Human Resources Director. Section B. Information: The City agrees to provide the Union with names of new hires within the bargaining unit on a timely basis. The City will continue to provide the Union with a monthly report, including Employee Name, Department, Wages, and Deduction Amount. Section C. Employee Orientation: City and AFSCME have agreed to maintain the current process for AFSCME involvement in the orientation of new bargaining unit employees. ARTICLE V. SALARIES AND OTHER COMPENSATION Section A. Salaries: 1. Cost of Living Adjustments a. Salaries in effect on June 30, 2026 shall be increased by three point eight percent (3.8%) effective July 1, 2026. b. Salaries in effect on June 30, 2027 shall be increased by three point seven percent (3.7%) effective July 1, 2027. c. Salaries in effect on June 30, 2028 shall be increased by three percent (3.0%) effective July 1, 2028. d. The above referenced salary increases have been calculated and are included on the attached salary schedules (Exhibits A 1-3). Due to rounding, the percentage increases are approximate, not exact. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 200 of 309 Page 4 of 31 e. The City will retain a consultant to complete a benchmark Total Compensation Survey with a target completion date of December 31, 2028. In or around October of 2028, the parties will meet with the City’s retained survey consultant and review the consultant’s recommended survey jurisdictions, benchmark classifications, and survey matches for the revised Total Compensation Survey. The Parties intend the Total Compensation Survey to provide data to inform successor MOU negotiations. 2. Step Advancement: Unless additional criteria are specified (e.g., longevity steps), advancement between each step in the salary range will require twelve (12) months of actual service at t he employee’s current salary step, plus a “meets standards” or better performance evaluation. 3. Retention Steps Step F (5 Years) Effective the first full pay period following the later of July 1, 2022 or adoption of the MOU by the City Council, the City will add a new Step F to the salary schedule for each bargaining unit classification. Step F will be set approximately 5.0% higher than the existing Step E. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step E), an employee must have completed five (5) years of service in the bargaining unit. Employees who qualify for Step F as of July 1, 2022 (i.e., have both 5 years of service and 12 months at Step E) will be eligible to advance to Step F on July 1, 2022. For these employees, July 1 will become their new evaluation date. All other employees will be eligible to advance to Step F on their regularly scheduled evaluation date. b. Step G (10 Years) Effective the first full pay period following July 1, 2023, the City will add a new Step G to the salary schedule for each bargaining unit classification. Step G will be set approximately 5.0% higher than the existing Step F. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step F), an employee must have completed ten (10) years of service in the bargaining unit. Employees will be eligible to advance to Step G on their regularly scheduled evaluation date. c. Step H (15 Years) Effective the first full pay period following July 1, 2024, the City will add a new Step H to the salary schedule for each bargaining unit classification. Step H will be set approximately 5.0% higher than the existing Step G. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step G), an employee must have completed fifteen (15) years of service in the bargaining unit. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 201 of 309 Page 5 of 31 Employees will be eligible to advance to Step H on their regularly scheduled evaluation date. Section B. Training: 1. Training: The parties agree that all employees have a responsibility to provide orientation and informal training to new and existing employees. 2. PSC, PRT, CSO Training Pay: Employees in the classification of Public Safety Communicator (PSC), Police Records Technician (PRT), or Community Service Officer (CSO) who are formally assigned by the Department as a Trainer shall receive training pay of five (5%) percent of base pay during the hours they are actually assigned a trainee. Employees who work overtime while receiving training pay shall be paid out for overtime hours worked and will not bank the training overtime hours as compensatory time off. The training pay will be included in the regular rate of pay for purposes of calculating overtime pay. The training of employees is done in focused “segment blocks” of 40-120 hours. The PSC, PRT, or CSO assigned as a Trainer and tasked to provide a “segment” of training (minimum of 40 hours) will be paid five (5%) percent of the trainer’s base pay for all of the pay periods where the majority of training hours takes place. If a PSC, PRT, or CSO serving in the role of a Trainer exceeds 120 hours of training time in a pay period, that Trainer will receive five (5%) percent of base for the following pay period. 3. Formal Training Programs: Employees, except Lead/Senior or Supervisory employees, who are formally assigned by a Department Head as a Trainer for other employees shall receive training pay of five (5%) percent during the hours they are actually assigned a trainee if the Department implements a formal training program equal or comparable to that developed for the PSC, PRT and CSO Trainers. The Department Head retains discretion to assign Trainers. To be comparable to the PSC, PRT, and CSO training program, training must be done in focused “segment blocks” of 40-120 hours and must meet similar requirements to those programs, including trainer signoff that the trainee has met specific standards. Trainers tasked to provide a “segment” of training (minimum of 40 hours) will be paid five (5%) percent of the base pay for all the pay periods where the majority of training hours takes place. The parties specifically agree that this section shall not apply to informal or ad hoc training programs utilized by departments. Nothing in this section shall be deemed to require a Department to establish a formal training program or to designate Trainers if such a program is established. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 202 of 309 Page 6 of 31 Section C. Retention/Recognition Incentive/Health Reimbursement Arrangement: 1. Retiree Allowance – Eligibility, Amount and Timing An Eligible Retiree, as defined below, shall be eligible to receive a Monthly Allowance, also defined below, from the City until reaching the age of sixty-five (65). An “Eligible Retiree” is a Unit employee that satisfies all the following requirements: • Is at least fifty-five years old. • Begins collecting a CalPERS pension within ninety (90) days after separation from City of Gilroy service • Allowance Amount as follows: Effective Date Years of Service Amount of Monthly Payment to Age 65 Hired Prior to 11/1/2005 At least 15 years of FT service $15 per year of service to cap of $200 Hired on or After 11/1/2005 At least 20 years of FT service $15 per year of service to cap of $200 Effective 6/30/2007 At least 25 years of FT service $15 per year of service to cap of $300 • A Unit employee retiring on or after November 1, 2015, must elect to participate in the City’s retiree health reimbursement arrangement. • Benefits under this section begin the first day of the month following the cessation of City-paid medical benefits. For example, if an employee retires on May 1st and City-paid medical benefits continue through May 31st, the employee will receive his or her first payment under this provision in the month of June. If medical benefits extend to June 30th, then the benefits under this section will begin in the month of July. 2. Eligible Retirees On or After November 1, 2015 The Monthly Allowance for any Unit employee that qualifies as an Eligible Retiree on or after November 1, 2015, including City employees hired or rehired on or after January 1, 2013, shall be made available to the Eligible Retiree under the City’s retiree only health reimbursement arrangement (“Plan”) for the purpose of receiving nontaxable reimbursements of qualifying health care expenses under Sections 1 05(b) and 213(d) of the Internal Revenue Code. A condition to receiving the Monthly Allowance and participating in the Plan is the submission of an election form to participate in the Plan. Any monthly administrative fees for the health reimbursement arrangement plan shall be borne by the retiree. An Eligible Retiree retiring on or after November 1, 2015, that does not elect to participate in the Plan will forfeit the Monthly Allowance. Reimbursements from the Plan shall be subject to substantiation that the Eligible Retiree incurred eligible expenses. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 203 of 309 Page 7 of 31 Section D. Retirement Plans and Contributions: The city of Gilroy shall comply with the Public Employee Pension Reform Act (PEPRA)/Assembly Bill 340 (2012) that went into effect on January 1, 2013. PEPRA is a state law that supersedes any conflicting wording that may be contained in this MOU. Miscellaneous CalPERS Group: ▪ Tier One – Miscellaneous Employees Hired Prior to January 1, 2013 and Classic Members of CalPERS Hired on or After January 1, 2013 The City shall provide the 2.5% at 55 PERS retirement plan for AFSCME employees in the Miscellaneous CalPERS category that qualify as a “classic” member of CalPERS. This applies to employees hired to a full-time position with the city of Gilroy prior to January 1, 2013 or an employee hired to a full-time position with the city of Gilroy on or after January 1, 2013 who qualifies as a “classic” member of CalPERS. Employees in this category shall have a pre-tax payroll deduction of eight (8%) percent consistent with IRC 414(h)(2). One (1) year final compensation (pursuant to CA Government Code Section 20042) is used for employees who retire under this formula. The City pays the employer contribution. ▪ Tier Two – Miscellaneous Employees Categorized as “New” CalPERS Members Hired On or After January 1, 2013 New full-time AFSCME employees in the Miscellaneous CalPERS category hired on or after January 1, 2013 who are classified as a “new” member of CalPERS shall receive the 2% at 62 CalPERS retirement plan. Employees in this category shall have a pre-tax payroll deduction for 50% of the total normal cost of the plan as identified annually by CalPERS. This employee payroll deduction amount may change from year to year as required by PEPRA. Three y ear final compensation is used for employees who retire under this formula. The following items are included in the PERS Miscellaneous retirement contract: ▪ Credit for Unused Sick Leave – pursuant to CA Government Code Section 20965 ▪ 3rd Level 1959 Survivor Benefit – pursuant to CA Government Code Section 21573 ▪ Military Service Credit – pursuant to CA Government Code Section 21024 ▪ Death Benefit – pursuant to CA Government Code Section 21620 Section E. Shift Differential: Shift differential shall be paid as follows: 1. Shift differential shall be paid only for those shifts which have a majority of their regular hours occurring between 3 PM. and 7 AM. a. If the majority of hours occur between 3 PM and 11 PM (swing shift), the City shall pay an hourly premium of two and one half (2.5%) percent of base pay. b. If the majority of hours occur between 11 PM and 7 AM (graveyard shift), the City shall pay an hourly premium of five (5%) percent of base pay. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 204 of 309 Page 8 of 31 2. Employees shall receive overtime compensation for overtime hours worked, not including shift differential. However, shift differential pay shall be included in the pay rate for employees regularly assigned to the swing or graveyard shift for purpose of computing pay for overtime, sick leave, vacation, and other leave benefits. 3. Maintenance Worker I/II/Sr. employees in the Parks & Landscape Section of Public Works Operations shall receive shift differential as follows: a. $75.00 per month if regularly assigned to and work one weekend (Saturday or Sunday) shift each week of the month. b. $150.00 per month if regularly assigned to and work two weekend (Saturday and Sunday) shifts each week of the month. Section F. Tuition Reimbursement: Effective July 1, 2001, AFSCME members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees, or other student expenses for pre-approved job–related and career development courses. In addition, employees attending city-approved, job related continuing education courses, certification programs, or training conferences may also receive tuition reimbursement for the cost of registration, tuition, books, testing, and/or certifications (including certification renewals). Course work shall be completed on the employee’s own time at the employee’s own expense. Upon successful completion of the pre-approved class or training program, the employee shall provide all written documentation on allowable costs and completion/grade/certification/score, etc. to their department head and human resources for review and processing. The maximum tuition reimbursement for employees is $1,000.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "B" or better for undergraduate and graduate courses, full attendance and completion of the training program, and a passing score for non-graded programs that involve certification or testing. All claims for tuition reimbursement require the pre-approval of the employee’s department head and the Human Resources Director. Tuition Reimbursement Request Forms are available in the Human Resources Department. Section G. Overtime: 1. FLSA Workweek – The FLSA workweeks for Unit employees are as follows unless an alternate workweek is designated and approved by the Human Resources Director: a. 5-8 Work Schedule: 12:00 a.m. Monday to 11:59 p.m. Sunday b. 4-10 Work Schedule: 12:00 a.m. Monday to 11:59 p.m. Sunday c. 9/80 Work Schedule: Midpoint of 8-hour workday to one minute prior to midpoint of the following same day of week off (for example, 12:00 p.m. on Friday (working 8 a.m. to 5 p.m. with a one-hour unpaid lunch break on the Friday) to 11:59 a.m. on the following Friday). d. Other workweek designated in writing and approved by the Human Resources Director. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 205 of 309 Page 9 of 31 2. Overtime shall be defined as time worked in excess of forty (40) hours per week. All paid time shall be considered hours worked for overtime calculation purposes. Overtime shall be paid at the rate of time and one-half (1.5) in either pay or compensatory time (CTO). 3. In addition, overtime shall be paid for all hours worked in excess of the number of hours in an employee’s regular workday. However, an employee and his or her supervisor may agree to “flex” his or her schedule. In this case, an employee may work additional hours on one day and fewer than normal hours on one or more additional days. Any flex time shall be taken in the same workweek as the additional hours. Flex time shall not create a split shift. The employee shall not earn overtime unless the employee’s total hours worked exceed forty (40) in that workweek. In the absence of an employee’s agreement to flex time, a supervisor may require the employee to flex his or her schedule to accommodate the City’s legitimate operational needs. 4. Each employee shall have the yearly option of accumulating compensatory time off or being paid monthly for overtime accrued during the immediately preceding month. However, employees may not accrue more than eighty (80) hours of CTO in their CTO bank at one time. The Department Heads shall retain the authority of reasonably determining within the best interests of the operation of their respective departments, when accrued CTO may be used by each employee. 5. To address issues related the Doctrine of Constructive Receipt, no later than December 15 of each calendar year, each employee may irrevocably elect the number of overtime hours for which he or she wishes to receive CTO in lieu of pay for the following calendar year. Employees shall earn CTO for all overtime hours worked up to the number of hours elected. All overtime hours worked above the elected number of hours will be paid as overtime, regardless of whether an employee utilizes some or all the accrued CTO as paid leave. 6. This election will be made on a form provided by the City and must be completed and submitted in conformance with the instructions set forth on the form. Failure to make an election prior to the date set forth in this section will result in the employee being paid for all overtime hours worked and the employee will not be eligible for CTO for the calendar year. CTO may not be cashed out except upon separation from employment. Section H. Stand-by Pay: Stand-by duty shall be rotated among employees on a seven (7) day basis . Employees on seven (7) day stand-by shall receive ten (10) hours pay at straight time. If an actual (not observed) holiday falls within the seven (7) day stand-by period, the employee shall receive eight (8) hours pay at straight time for being on stand-by on the actual (not observed) City of Gilroy recognized holiday. The parties understand that stand-by compensation includes pay for incidental work performed while on standby. Examples of incidental work include periodic phone calls, e-mails, and remote monitoring of systems. An employee receiving standby pay is expected to remain available to return to work and will return to work when called in. However, with approval of the supervisor at least 48 hours in advance, an Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 206 of 309 Page 10 of 31 employee may substitute for the employee on standby. Such substitution will be treated like a “shift trade” and the employees will be paid as though they worked their scheduled work and standby shifts. Employees will be responsible for any repayment “shift trades.” Substitutions with less than 48 hours’ notice may be approved in emergency circumstances or other situations which could not reasonably have been foreseen (e.g., illness). Employees on standby duty will be paid at time and one half for work performed after they have returned to the worksite. Section I. Call Back Pay: Call back is defined as any unscheduled event occurring after the employee has physically left work that does not continue into or continue after regular duty time. [For example, an employee called back to work one (1) hour prior to his or her regular start time will be paid overtime for the additional hour but will not qualify for callback pay. Similarly, an employee held over at the end of his or her shift will not qualify for callback pay.] 1. Call back shall be paid at a minimum of three (3) hours at time and one-half (1.5). Any time worked beyond the standby minimums will be paid at time and one-half (1.5). Employees called back on an actual (not observed) City of Gilroy recognized holiday will be compensated on the above schedule, but at a double time rate. 2. This provision shall not apply to prescheduled overtime (such as scheduled staff meetings) except that: a. Members of the Communications and Records Units shall be allowed call back pay when called back for scheduled staff meetings; and b. Employees called back to work for pre-scheduled events where a third party reimburses the City for the call back pay shall be paid a minimum of two (2) hours at time and one half. However, if the City does not post the voluntary overtime signup at least fourteen (14) calendar days prior to a pre-scheduled event, employees called back to work for that event shall be paid a minimum of three (3) hours at time and one half. Any scheduled event/meeting occurring within thirty (30) minutes of the start or end of an employee’s shift will be assumed to be a continuation of regular duty time. 3. The City has the option of holding over employees in lieu of call back for any length of time upon notification to the employee prior to the event/meeting. Section J. Temporary Upgrade Pay: 1. To qualify for Temporary Upgrade Pay, an employee must be assigned to perform all the duties of a higher classification for ten (10) full working days. 2. Employees who have qualified for Temporary Upgrade Pay in a specific classification shall be paid for each successive day at the rate assigned to the higher classification which represents Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 207 of 309 Page 11 of 31 the lowest step in the higher classification representing a minimum of five (5%) percent increase over the regular pay. 3. In order to be eligible for Temporary Upgrade Pay, an employee must be assigned by his/her supervisor and approved by his/her Department Head to perform such work. Temporary Upgrade assignments shall be assigned in full day increments. 4. In accordance with Government Code 20480, an employee assigned to work in a Temporary Upgrade assignment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section K. Certificate/License Pay: Class A Driver’s License Pay: Employees in Public Works Operations, Utilities Operations, and Fleet who are required to obtain and maintain a current CA Class A driver's license shall be paid $20.00 per month. Education Incentive Certificate Pay for Employees in Parks & Landscape and Streets/Trees/Stormwater & Drainage Sections of Public Works Operations and Water and Wastewater Sections of Utilities Operations: For individuals employed on July 1, 2017, the City shall pay the following monthly amounts to individuals holding the following certifications, regardless of Public Works or Utilities Operations work location (Parks & Landscape, Streets//Trees/Stormwater & Drainage, Water, or Wastewater), so long as the individual holds the certification on July 1, 2017 and continues to hold the certification without interruption: • State of California Water Distribution Operator and CWEA Collection System Maintenance Certifications: Grade I $20.00 Grade II $75.00 Grade III $125.00 Grade IV $150.00 The above pays are not cumulative (e.g., employees holding a Grade IV receive $150 in license pay) • Pesticide Advisor - $20.00 • Qualified Applicator Certificate - $20.00 • State of CA Water Treatment Operator (any one level) - $20.00 • AWWA Backflow Prevention Tester - $20.00 • AWWA Cross Connection Specialist - $20.00 • Playground Inspection Certification- $20.00 Effective July 1, 2017, the City shall pay the following monthly amounts to individuals holding the following certifications, when they are assigned to the listed Section: Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 208 of 309 Page 12 of 31 Parks & Landscape Section: • Pesticide Advisor Certificate - $50.00 • Qualified Applicator’s Certificate - $20.00 • Playground Inspection Certificate - $20.00 • ISA Certified Arborist Certificate - $250.00 Streets/Trees/Stormwater & Drainage Section: • CWEA Collection System Maintenance Certifications (this certificate in this Section only applies to those employees hired prior to July 1, 2026, and who hold the certification continuously with no lapse): Grade I $50.00 Grade II $150.00 Grade III $250.00 Grade IV $300.00 • Qualified Applicator’s Certificate - $20.00 • Pesticide Advisor Certificate - $50.00 • ISA Certified Arborist Certificate - $250.00 Water Section: • State of California Water Distribution Operator Certifications: Grade I $50.00 Grade II $150.00 Grade III $250.00 Grade IV $300.00 Grade V $400.00 • State of California Water Treatment Operator Certifications: Grade I $20.00 Grade II $40.00 Grade III $60.00 Grade IV $80.00 • AWWA Backflow Prevention Tester - $20.00 • AWWA Cross Connection Specialist - $20.00 • Qualified Applicator’s Certificate - $20.00 Wastewater Section: • CWEA Collection System Maintenance Certifications: Grade I $50.00 Grade II $150.00 Grade III $250.00 Grade IV $300.00 • Qualified Applicator’s Certificate - $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 209 of 309 Page 13 of 31 Examples: 1. Employee A holds a Grade III WDO Certification on July 1, 2017 and works in Streets. Employee A continues to receive $125 for the certification. 2. Employee B earns a Grade III WDO Certification on August 1, 2017 and works in Streets. Employee B does not receive any license pay for the certification. 3. Employee B transfers to the Water Section on September 1, 2017. Employee B will receive $250/month for the Grade III while working in the Water Section. It is the responsibility of the employee to obtain and maintain certifications for which they wish to receive, and wish to continue to receive, certification pay. It is the responsibility of the employee to provide their supervisor AND the human resources department a current written certification documenting valid certifications. It is the responsibility of the employee to monitor expiration dates of certifications, as certification pay will terminate if updated valid certification documentation is not provided prior to the expiration of the certification. If certification pay is terminated due to an expired certification, the employee can reapply at a later time to receive the certification pay. Certification pay will begin the first of the month following human resources receipt of valid, documented certification. The above referenced certificate pay program is further documented on the attached Certificate Pay Chart for Certain Public Works Operations and Utilities Operations Employees – General Unit (Exhibit B). Section L. Bi-lingual Pay: 1. Employees in the classification/job series of Police Records Technician, Public Safety Communicator, Community Services Officer, and other law enforcement Technician positions who demonstrate the ability to communicate (as a result of a verbal skills test) effectively in both Spanish and English shall receive an additional five (5%) percent of their respective base salaries. 2. Other unit employees are eligible for five (5%) percent bi-lingual pay as follows: a. The City shall determine which employees are needed to serve as interpreters and possess necessary verbal competency in Spanish (via a verbal skills test). The City shall use the following criteria in determining whether or not it is necessary for an employee to serve as an interpreter: i. Very frequent public contact in person and over the phone. ii. The City uses the employee as an interpreter on a daily basis. iii. The employee works in a department with numerous interpretations with Spanish speaking citizens. b. Examples of employee who will qualify for bi-lingual/interpreter status include those encountering the public at the counters in the finance, recreation, and community development departments. c. Employees receiving bilingual pay must provide interpreter services upon request of their supervisor or when contacted by a citizen requiring assistance in Spanish. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 210 of 309 Page 14 of 31 3. The City may require any employee receiving bi-lingual pay to re-certify (test) based on observed skill level or lack of use. However, such re-certification shall occur no more than once every two (2) years. This test shall be a verbal skills test. Section M. Deferred Compensation: Effective with the pay period beginning July 1, 2020, City will contribute $30/month to a City deferred compensation plan on behalf of each bargaining unit member. In order to receive the City contribution, each bargaining unit member must be enrolled in one of the City’s deferred compensation plans. ARTICLE VI. INSURANCE PROGRAMS Section A. Medical and Dental Insurance: 1. City Contributions The City shall provide a cafeteria program dollar contribution for each bargaining unit employee. The cafeteria plan contribution amount is established as of January 1, 2026 as the plan year for health plan coverage is the calendar year. The City cafeteria contribution amount shall increase by 5% each January 1of the MOU using the January 1, 2026 amount as the baseline starting point. Any health plan rate increases in excess of the annual City contribution amount each year shall be paid by the employee. The baseline monthly city cafeteria plan contribution amounts effective as of January 1, 2026 are: Employee Only $939.36 Employee + 1 $1,859.09 Employee + 2 or more $2,480.68 The above contribution amounts include any mandatory PERS PEMHCA contribution and the mandatory Dental Contribution. 2. The contribution amount that the employee qualifies to receive is based upon the number of individuals that the employee enrolls in a medical plan. 3. The employee may purchase other insurance benefits with any remaining contribution amount or through payroll deduction. Some of these benefits may be eligible for a pre-tax deduction. The employee may not waive dental insurance. The employee must enroll himself or herself, along with qualifying dependents, in the Dental plan. 4. Employees waiving medical insurance, or whose medical insurance is less than the City contribution are entitled to the following: a) Hired prior to July 1, 2026 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 211 of 309 Page 15 of 31 o Bargaining unit members hired by the City on or before June 30, 2026 who waive medical coverage are entitled to $939.36 in taxable cash less the medical contribution required by CalPERS and less the dental premium. o If a bargaining unit member hired by the City on or before June 30, 2026 spends less than the following amounts on medical and dental premiums, the balance will be paid to the employee as taxable cash. Employee Only $939.36 Employee +1 dependent $1,859.09 Employee +2 or more $2,480.68 b) Hired on or after July 1, 2026 Bargaining unit members who are newly hired by the City on or after July 1, 2026 who waive medical coverage are entitled to $939.36 in taxable cash less the medical contribution required by CalPERS and less the dental premium. However, the taxable cash paid to an employee in this group after the CalPERS and dental deductions may not exceed $500. 5. The employee may waive medical coverage under this program and enroll in dental insurance provided they show proof of other medical insurance coverage. If the employee waives medical insurance, then the employee is eligible to receive the employee only contribution in cash less the medical contribution required by CalPERS and less the dental premium subject to the caps listed in a) and b) above. Any cash payments received under this program are taxable. 6. Medical In Lieu: Pursuant to the Flores v. City of San Gabriel case, the City includes the medical in lieu amounts as part of the regular rate of pay for calculating FLSA overtime premiums. The City will cease including medical in lieu as part of the regular rate in the event that it is no longer legally required to do so. Section B. Life Insurance: The CITY shall contribute up to $15.00 per employee per month toward the cost of a one-hundred thousand ($100,000) dollar life insurance and accidental death & dismemberment insurance policy for unit members. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 212 of 309 Page 16 of 31 Section C. Long Term Disability Insurance: For the term of this Agreement the CITY shall maintain in effect the Long Term Disability Program providing for a maximum ninety (90) day elimination period and payment of sixty (60%) percent of salary to a benefit maximum of no less than five thousand ($5,000) per month. Employees shall have the option of using accrued paid time to supplement LTD to bring gross wages to 100%. ARTICLE VII. LEAVES Leaves shall be as provided for in Section VI, Leaves of Absence, Vacation and Sick Leave, of the Human Resources Rules and Regulations. Vacation and Sick Leave accumulation shall be as follows: Section A. Vacation Leave: Every full-time employee who shall have been in the service of the CITY shall accrue vacation as follows: Completed Years of Service Mo. Hours Accrued Yearly Accrual 1 – 5 6.67 Hours 80 hours 6 – 15 10.00 Hours 120 hours 15 + 13.33 Hours 160 hours Employees will be allowed to maintain a vacation leave balance not to exceed two years' vacation leave. Employees at or above the maximum balance will no longer accrue vacation time until such time that the employee’s vacation balance drops below the maximum balance allowed. New employees will be allowed to take earned vacation in the first year subject to the normal approval process. Section B. Sick Leave: Employees shall accrue sick leave at the r ate of one (1) 8-hour day per month. Sick leave may be used as it accrues. Employees shall accrue sick leave while on paid vacation. A physician's verification of illness may be required. 1. Family Sick Leave Employees may use sick leave for any leave covered by the Family and Medical Leave Act or the California Family Rights Act, including covered absences to care for a family member. For absences not covered by the Family and Medical Leave Act or the California Family Rights Act, employees shall be allowed up to six months’ accrual of sick leave (six days or 50% of the annual accrual) to attend to an illness of a child, parent, spouse, or domestic partner of the employee in accordance with the California Labor Code Section 233 regarding kin care. 2. Sick Leave for Job-Connected Injuries Employees shall discuss the timing of pre-planned absences with their supervisor. Whenever possible, employees shall schedule partial day absences to minimize Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 213 of 309 Page 17 of 31 disruption in the workplace. This includes, but is not limited to scheduling appointments after hours, during lunch, or as close to the beginning or end of the workday as possible. Section C. Personal Leave: Personal Leave may be used for pre-planned absences in the same manner as vacation. In addition, Personal Leave time may also be used for unforeseen emergencies occurring at the last minute for which the employee could not have planned ahead. Personal leave hours are not a vested benefit and do not carry over from one fiscal year to the next. Unit members shall receive personal leave hours on July 1 of each fiscal year as follows: Public Safety Communicators, Police Records Technicians, and any unit member receiving hourly holiday pay All Other Unit Members 20 hours of personal leave 16 hours of personal leave 0 hours floating holiday 16 hours of floating holiday converted to personal leave (Lincoln’s Birthday and Admissions Day) 4 hours of personal leave in recognition of the Christmas Eve Closure 4 hours in recognition of the Christmas Eve Closure Total Personal Leave Hours per fiscal year = 24 hours Total Personal Leave Hours per Fiscal Year = 36 hours Employees hired or terminating during the year shall receive prorated personal leave credit on a quarterly basis. Employee is required to work at least one of half of the quarter to receive the quarterly allocation of personal leave time. Since the bank of personal leave hours is fronted to the employee at the start of the fiscal year, if an employee uses more personal leave hours than would be allocated for the fiscal year based on the date of separation, the employee will change the non-eligible excess hours utilized to another available leave bank other than sick leave. Section D. Bereavement Leave: Employees make take up to three (3) days of paid Bereavement Leave within the state and five (5) days of paid Bereavement Leave outside of California for the death of immediate family members, per occurrence. Immediate family members are defined as: Grandmother, Grandfather, Mother, Father, Step-Mother, Step-Father, Mother-in-Law, Father-in-Law, Brother, Sister, Step-Brother, Step-Sister, Husband, Wife, Domestic Partner, Natural Born Child, Adopted Child, and/or Step-Child. Employees may take up to two (2) additional days off using eligible leave banks for the death of an immediate family member within the state. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 214 of 309 Page 18 of 31 For family members not covered in immediate family and people who have a significant relationship with the employee, an unpaid leave of absence can be taken with the approval of the C ity Administrator. The City Administrator’s decision is final and not subject to appeal. This section supersedes the language concerning Bereavement Leave in the HR Rules and Regulations. Section E. Holidays: 1. The legal holidays observed by the City shall include: • New Year’s Day • Martin Luther King Day • Washington’s Birthday • March 31st • Memorial Day • Independence Day • Labor Day • Veteran’s Day • Thanksgiving Day • The day following Thanksgiving and • Christmas Day When a regular holiday falls on Sunday, the following Monday shall be granted as a day off; and when a regular holiday falls on Saturday, the preceding Friday shall be granted as a day off. Additional paid holidays to those provided in the Human Resources Rules and Regulations and this agreement may be granted if declared by the Gilroy City Council. 2. Holiday Pay: a. Any employee, other than employees in the classifications of Police Records Technician, and Public Safety Communicator required to work on any holiday shall receive eight (8) hours of straight time pay for the holiday and time and one-half (1.5) for any hours actually worked on the holiday. b. If a City observed holiday falls on the regular day off for an employee in any job classification other than the classifications of Police Records Technician and Public Safety Communicator, that employee shall arrange with their supervisor to take an alternate day off during the same pay period in which the observed holiday occurred. c. Employees in the classifications of Police Records Technician and Public Safety Communicator assigned to work holidays shall receive holiday pay at the rate of 6% of the employee’s base monthly salary. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 215 of 309 Page 19 of 31 Section F. Christmas Eve Mandatory Closure: City offices and all non-essential operations shall be closed on the workday immediately preceding the Christmas Day Holiday. However, this is not a holiday and employees will be required to use either paid or unpaid leave to cover their absence on this day. Employees shall designate, at least two weeks prior to the mandatory closure, what leave time the employee will use to cover this day by following the normal time off request process established in the department. Employees called back to work on the mandatory closure day shall receive call back pay per Article V, Section J contained in this MOU. Employees assigned to stand by duty shall receive stand by pay per Article V, Section I contained in this MOU. Department Heads retain the discretion to determine if there are department staffing needs for the mandatory closure and shall announce this to the affected employees by no later than the last working day in November. Ideally, staffing will be achieved by employees who request to work on this day and then based on seniority. The schedule shall be posted as soon as possible following the end of November announcement and by no later than the end of the first full week in December. Employees who work on the mandatory closure day shall log their time as regular hours worked at straight time. Schedule flexing shall not be permitted on this day. All City Hall employees shall participate in the mandatory closure as the City Hall bui lding will be closed on this date. This mandatory closure does not apply to Police Department Records and Communication Unit employees. Community Services Officers normally sch eduled to work on this day shall follow their normal work schedule and may request time off per the normal time off procedures. All other Police Department administrative support staff shall participate in the mandatory closure. Section G. No Use of Leave to Extend Retirement or Separation Date: Employees are required to be present at work during the entire two workweeks preceding their retirement or other planned separation from City employment (e.g. resignation to accept new position). Employees may not use accrued leave time to extend their employment. ARTICLE VIII. MISCELLANEOUS Section A. Uniforms: 1. Unit members in the Police Department shall receive uniform allowance paid monthly in the amount of $41.67 per month payable to the classifications of Police Records Technicians I & II, Property & Evidence Technician, Community Services Officer, and Public Safety Communicator. Newly hired employees in these classifications shall receive an initial uniform allowance of two hundred and fifty ($250) dollars. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 216 of 309 Page 20 of 31 2. The City will provide a voucher or reimburse field employees who are required to wear safety shoes in the normal course of his or her duties for one (1) pair of safety shoes per year up to a maximum of $200 per pair. For those employees required to wear safety shoes who are not working in the field on a regular (daily/weekly) basis, the City will provide a voucher or reimbursement for one (1) pair of safety shoes every two years up to a maximum of $200 per pair. The employee is required to wear the shoes at all times when applicable duties are performed. 3. The City will provide a voucher or reimburse employees in the Code Enforcement Officer classification and employees in the Public Works and Utilities Operations Divisions for a second pair of safety shoes each year up to a maximum of $200 per pair. In addition, employees in the Engineering Technician/Inspector classification may request reimbursement for a second pair of safety shoes each year on an as needed basis. Upon request, the Engineering Technician/Inspector’s Department Head or designee will evaluate the condition of the safety shoes to determine whether they need to be replaced. At the discretion of the Department Head/designee, the City will reimburse the Engineering Technician/Inspector for up to a maximum of $200 for the purchase of a second pair of safety shoes. 4. Public Works and Utilities field employees and Facilities employees shall be supplied, by the City, with an allocation sufficient to purchase five (5) shirts and patches, five (5) pants, and three (3) work hats per year. These shall be of a quality similar to a Ben Davis brand. The annual per employee fiscal year maximum Uniform allotment for Public Works and Utilities Operations is $375.00. a. If an employee can physical show their manager that they have five (5) shirts, five (5) pants, and three (3) hats in good condition, once approved by the manager, the employee can use their uniform allocation for other, non-core uniform items on the approved list. If an employee only needs two (2) pants, two (2) shirts, and one (1) hat to achieve the core allocation noted above, once approve, the employee can use the remaining uniform allotment amount to purchase other, non-core uniform items on the approved list. Absent the manager’s approval to purchase alternate uniform items, the employee shall be required to select the core uniform items (five (5) shirts, five (5) pants, and three (3) hats. b. Substitutions and modifications may be made by the Uniform Committee made up of Public Works and Utilities field employees. Newly hired employees in these classifications shall receive an initial allocation sufficient to purchase five (5) shirts and patches, five (5) pants, three (3) work hats, one (1) all-weather jacket, one (1) sweatshirt, one (1) belt, and five (5) short-sleeved shirts. c. This first fiscal year annual maximum uniform allotment for each newly hired Public Works and Utilities Operations employee is $620.00. d. The goal of standardized uniforms for field operations personnel is to present a consistent and neat image to the public we serve. 5. The City shall annually (fiscal year) supply Public Works Engineering and Community Development field employees (Building Inspectors, Code Enforcement Officers, Hazardous Materials Inspectors, and Engineering Technician/Inspectors) with five (5) polo style shirts bearing an approved city logo in a brand and color approved by the City (brand and color to be approved only after taking input on the style and color from the affected employees). The Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 217 of 309 Page 21 of 31 designated employees shall wear the supplied shirts each day at work with pants (khakis or jeans appropriate for work being performed) consistent with the negotiated dress code. The annual allotment for the 5 shirts provided to each employee in specified classifications in Community Development and Engineering in Community Development is $200. If an employee can demonstrate to the they have 5 Polo Shirts in very good condition City is willing to permit employees to use the residual uniform allowance for other approved City-branded apparel (e.g., a jacket, vest, hat, etc.). Pants are excluded from the uniform reimbursement and may not be purchased with the employee’s allotment. 6. The City will report the above referenced uniform allotment to CalPERS on a monthly basis. The initial fiscal year allotment for newly hired employees shall be determined by the number of remaining payroll periods in the fiscal year and will then shift to the regular allotment method in the next fiscal year. 7. Fleet employees shall be provided, by the City through a laundry rental service, five shirts and five pants per week. Section B. Safe Workplace Commitment: The CITY shall furnish employment and a place of employment which is safe and healthful for the worker therein and shall conform to and comply with all health, safety, and sanitation requirements imposed by State or Federal law or regulations adopted under State or Federal law. Section C. Safety Committee: The UNION shall be entitled to appoint two members to the CITY's Safety Committee. Section D. Tool Allowance: The CITY agrees to provide all workers with the tools and equipment necessary to perform their jobs and shall maintain same in a safe and healthful condition. This shall not apply to the Equipment Mechanic classes. (See Exhibit C, Mechanic's Tool Policy). An annual "tool allowance" shall be distributed in July to reimburse the affected employee for wear, adjustment, and other consumable expenses to be used at the discretion of the individual employee. The tool allowance schedule is as follows: Senior Equipment Mechanic $600.00 annually Equipment Mechanic $600.00 annually Pursuant to CalPERS regulations, tool allowance is non-PERSable compensation. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 218 of 309 Page 22 of 31 Section E. Contracting Out: (1) Except for temporary contracts (less than one year) or contracts to fill an immediate need (such as a vacant full-time position), the CITY will notify the UNION if it intends to contract out the functions currently performed by employees within the unit. Upon request, at the initiation of the contract and whenever the contract is up for renewal, the CITY will meet with the UNION (including employees with knowledge of the work to be contracted) to explain the reason for the decision to contract out and to solicit UNION views on the proposal , including possibilities for cost savings. Nothing in this section shall be construed to limit the rights of the City Council to contract out work in its sole discretion. Nor shall any meeting under this section meetings delay the City Council’s adoption of any contract. (2) Nothing in this section shall be construed to limit the rights of the City Council, in its sole discretion, to enter into temporary contracts (less than one year) or contracts to fill an immediate need (such as a vacant full-time position). Such contracts shall not be subject to the provisions of Paragraph (1), above. (3) This section shall not apply to part-time hiring or to temporary or provisional appointments, which shall continue to occur at the City’s sole discretion. Section F. Union Leave: 1. UNION Officers (maximum of 7) shall be allowed to utilize a cumulative total of one hundred and twenty (120) hours per fiscal year of release time for UNION business and attendance of UNION related functions including, but not limited to meetings, seminars, and schools. Release time shall be granted subject to minimum staffing requirements of the Department and is subject to Department Head and/or City Administrator approval. UNION officers shall be provided with a reasonable amount of release time to meet with CITY management personnel on: a) Grievances i. One (1) designated UNION representative is allowed time off without loss of compensation for purposes ofrepresenting an employee in a meeting with City representatives relative to an employee grievance. ii. One (1) designated UNION representative is allowed time off without loss of compensation for the purpose of discussing or investigating a grievance with an employee. b) Issues raised by City Management involving CITY/UNION business. The UNION President and/or a designee will have release time without loss of compensation for the purpose of conducting formal meetings with City Management personnel. Release time must be scheduled in advance with the President's or designee's supervisor. c) Other mutually acceptable reasons. 2. Designated employee representatives shall be provided with release time to participate in formal meet and confer sessions with the CITY. When the meeting is a formal meet and confer Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 219 of 309 Page 23 of 31 session regarding the negotiation of an MOU, such release time shall not be charged to the one hundred and twenty (120) hours time bank described in paragraph 1 above. 3. UNION Representatives who are scheduled to work between the hours of 5:00 pm and 7:40 am shall be released from duty at least 8 hours prior to any scheduled meetings with the City/Department representatives concerning matters within the scope of representation. 4. UNION representatives shall request permission to use release time as far in advance as reasonably possible. Supervisors will not unreasonably deny requests for release. 5. UNION will provide the CITY a list of all officers, stewards, and representatives. Section G. City-Paid Meal: Employees shall be provided a meal at CITY expense if the employee is required to work two or more hours over their normal work shift in a single working day. Subject work must also conform to the overtime approval requirement. If the City does not provide a meal, employees shall be reimbursed fifteen dollars ($15.00) for the cost of a meal. No receipt will be required. Overtime meal reimbursements shall be documented on the employee’s time sheet/time report and shall be paid with the following payroll as a taxable reimbursement consistent with IRS Regulations (see IRS regulation 15-B, 2013). Section H. Employee Commitment: In consideration of the fair and reasonable provisions of this Memorandum of Understanding, employees represented by the Gilroy Employee's Association, through their elected representatives, do hereby make the following pledges to the City of Gilroy: 1. Employee shall make every effort to minimize CITY costs on an on-going basis by encouraging optimum amount of work production from each of its members. 2. Employees shall cooperate in every reasonable way to properly maintain and protect CITY property, equipment, and facilities. 3. Employees shall adhere to all Human Resources Rules and Regulations. Specific attention shall be given to those regulations dealing with sick leave, time off, breaks and punctuality. Every effort shall be made to maintain a good public image for each and all CITY employees. This is to be accomplished by maintaining good work habits and keeping busy at productive work during regular working hours. 4. Employees shall use and follow safe working procedures in their day-to-day work routines. Each employee shall point out to his/her fellow workers any observed unsafe condition or work procedure. Any observed unsafe condition or situation shall be immediately reported by employees to their supervisor. The intent here is to protect fellow workers from any unnecessary injury and the CITY from any potential liability. 5. Employees shall make a special and continuing effort to maintain good and constructive relations with the general public, fellow employees, and CITY officials. Every effort will be Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 220 of 309 Page 24 of 31 made to be considerate and understanding of the other person's point of view, misunderstanding or problem. 6. The Gilroy Employee's Association shall assume a leadership role in carrying out the above pledges. Section I. Probationary Period: With the exception of classifications of Public Safety Communicator and Senior Public Safety Communicator, newly hired employees will serve a twelve (12) month probationary period. The classifications of Public Safety Communicator and Senior Public Safety Communicator shall serve an eighteen (18) month probationary period. The probationary period for promotions of permanent employees shall be six (6) months. Section J. Residency Requirements: Employees in the Public Works and Utilities Operations Sections of Water, Wastewater, Parks & Landscape, and Streets/Trees/Stormwater & Drainage required to participate in on-call/stand-by work shall be subject to the following requirements: 1. Employees hired on or after July 1, 1989 shall be required to live, within one (1) year from date of hire, within sixty (60) minutes normal driving time from City Hall. Normal driving time shall be defined as driving the most direct route at the posted speed limit. 2. Employees hired prior to July 1, 1989 living within the sixty (60) minute limit shall be subject to this rule. Current employees living outside the sixty (60) minute limit shall not move outside their present driving radius but may move within it. Section K. Eyeglass Replacement: Once per year (per employee), the CITY shall repair or replace eyeglasses damaged due to the employee's work provided that: 1. The damage was not due to negligence on the employee's part; and 2. The damage was not due to a defect(s) or wear on the glasses. City-paid repair or replacement shall be limited to a maximum of one-hundred and fifty dollars ($150) per incident, per year. Section L. Layoff Policy: The CITY and UNION have agreed to a layoff policy as contained in the Human Resources Rules and Regulations. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 221 of 309 Page 25 of 31 Section M. Employee Assistance Program: The Employee Assistance Program shall provide for at least ten (10) visits per calendar plan year. Section N. Grievance and Disciplinary Action: Bargaining unit members must utilize the Grievance Procedure contained in this article rather than the Human resources Rules and Regulations for any grievances involving the interpretation, application, or alleged violation of this memorandum of understanding. However, any appeal of disciplinary action shall be made pursuant to Section V of the Human Resources Rules and Regulations and not pursuant to this grievance procedure. Grievance Procedure: An employee shall have the right to present a grievance pursuant to this procedure. The employee may be represented by the Association or an individual of the employee’s choice at the formal steps of this grievance procedure (excluding Step 1). If the representative is a fellow employee, that employee will receive time off from his or her work assignment for the time of the grievance meeting or hearing plus reasonable travel time. Forty-eight hours prior to the grievance meeting, the employee shall inform the Human Resources Department whether he or she will be represented at the grievance meeting and identify the representative. Grievances are defined as an alleged violation, misinterpretation, or misapplication of this Memorandum of Understanding. The procedure is not to be used for the following purposes: 1. Resolving complaints, requests or changes in wages, hours and working conditions. 2. To challenge the content of employee evaluations or performance reviews. 3. To challenge a reclassification, layoff, transfer, denial of reinstatement, or denial of a step or merit increase. a. EXCEPTION: Pursuant to the Miscellaneous and Supervisory Units MOU’s, employees in these units may appeal the denial of a merit step increases to the City Administrator. 4. In cases of oral reprimand, written reprimand, reduction in pay, demotion, suspensions, or termination. 5. To challenge violation of law or past practice. 6. To challenge examinations or appointment to positions. Grievances shall be in writing, dated and signed by the employee and presented to his/her supervisor. Grievances must be submitted within ten (10) calendar days of the occurrence, or the employee’s knowledge of the occurrence, which gives rise to the grievance. All grievances must clearly state the section of the Memorandum of Understanding that the employee alleges was violated, misinterpreted or misapplied; the specific act or omission which gave rise to this alleged violation, misinterpretation or misapplication; the date or dates on which the violation, misinterpretation or misapplication occurred; what documents, witnesses or other evidence support the employee’s position; and the remedy requested. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 222 of 309 Page 26 of 31 Step1. Initially, all employee grievances should be directed to the immediate supervisor for solution. Step 2. In the event the immediate supervisor meeting does not resolve the grievance within ten (10) calendar days, the supervisor, at the employee's request, shall present the matter to the next level of supervision within the department concerned. That supervisor and any higher-level supervisor(s) in the department's normal chain of command shall attempt to resolve the grievance. Each level of supervisor shall respond in writing to the grievant within ten (10) calendar days of receipt of the grievance. If the grievance is not resolved at a level below Department Head, the supervisor immediately subordinate to the Department Head, at the employee's request, shall present the matter to the Department Head. This presentation shall be made in the presence of the employee. The employee shall be allowed adequate time to present his/her side of the matter. Step 3. In the event the grievance is not adequately resolved within ten (10) calendar days at the Department Head level, the employee may submit the grievance to the City Administrator which submission shall, include the responses received from the supervisors and the Department Head. Step 4. If the grievance is not resolved within ten (10) calendar days at the City Administrator level, the employee or the City Administrator shall notify the Human Resources Director who shall gather the written facts and present them to the Personnel Commission at its next regular meeting. The Personnel Commission (in accordance with Section 907, of the City Charter) shall hear this matter and report its findings within ten (10) calendar days, to the City Council for review. The action of the City Council shall be final. The hearing before the Personnel Commission may be conducted informally and the rules of evidence need not apply. The hearing shall be conducted in an orderly manner with a presentation of all material facts so that a fair and impartial decision may be made. The Commission Chairperson shall have full authority at all times to maintain orderly procedure and to restrict the hearing to facts relevant to the complaint. In hearing the appeal, the Commission may require the employee (appellant) to first present his/her grievance; followed by the immediate supervisor for presentation of his/her attempts to resolve the grievance; followed by the Department Head for presentation of his/her attempts to resolve the grievance; followed by the City Administrator for presentation of his/her attempts to resolve the grievance. All involved parties may be entitled to counsel if they so desire. The appellant will bear the expense of his/her own counsel. The Human Resources Department will provide a checklist to be used in order to ensure that each grievance is dealt with in timely and proper manner. The checklist will be initiated by a supervisor when he/she is first presented with a grievance and will be forwarded along with the grievance and all responses thereto to each succeeding step in the process until a final resolution is obtained. Each succeeding level of authority in this procedure shall refuse to hear the matter unless the preceding step of the procedure has been observed. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 223 of 309 Page 27 of 31 Section O. Bulletin Boards, Mail, and E-mail: 1. The UNION may install at its own expense bulletin boards of reasonable size and construction as approved by the CITY. Bulletin boards shall be placed in locations approved by the CITY; they may be used for official Union bulletins but may not be used to post inflammatory or defamatory material. Pre-approval by the City may be required of any material proposed to be posted by the Union. 2. Subject to pre-approval by the Director of Human Resources, the UNION may utilize interoffice mail and electronic mail for the distribution of information. The UNION understands that information sent through the CITY’S servers will be subject to review under applicable CITY policies and may be subject to disclosure to the public. Section P. Donation of Vested Time: Employees may donate vacation hours, personal leave hours, or compensatory time off hours under the Catastrophic Leave Donation Program outlined in the Gilroy Human Resources Rules and Regulations. Employees may not donate sick leave. Section Q. Human Resources Files: At any time during normal working hours, an employee may make an appointment to review their Human Resources file. Employees will be allowed to see their Human Resources file in the presence of a Human Resources representative. An employee’s representative may review an employee’s personnel file in the presence of a Human resources representative upon presentation of a writt en release from the employee. Section R. Labor Management Committee: The City and Union have formed a Labor Management Committee to address issues of importance in labor management relations between the parties. Either party may request that the Committee meet by submitting a written request identifying the specific issue(s) to be discussed. Typically, two representatives shall be appointed by each party. The Committee will not have the authority to add to, amend, or modify this MOU. However, mutually acceptable recommendations of the Committee may be implemented, after any required meet and confer process. Section S. Employee Performance Appraisal: 1. Additional Review If comments are added to an Appraisal by any manager above the level of the supervisor who signs the Appraisal, a copy of the Appraisal (including any additional comments) shall be routed to the employee prior to the EPA being delivered to the Human Resources Department. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 224 of 309 Page 28 of 31 2. Appeal Unit employees shall be allowed to appeal any Employee Performance Appraisal with an overall rating of less than satisfactory to the City Administrator. There shall be no other form of appeal. Section T. Equal Employment Opportunity: The CITY and AFSCME are committed to providing equal employment opportunities for all employees and applicants. Further, the CITY and AFSCME are committed to the elimination of any barriers which restrict women, minorities and the disabled from receiving equal treatment in any aspect of employment. The parties understand that the City may have a legal imperative to act in a manner inconsistent with this agreement or the Human Resources Rules and Regulations. For example, the City may have to accommodate a disabled employee by placing that employee in a particular position without performing a recruitment. Section U. Alternate Work Schedules: The City departments may, in the department heads discretion, establish alternative work schedules. If established: 1. Overtime shall be payable for hours worked in excess of the regular workday. 2. Time off shall be earned as if the employee was working a regular work schedule (i.e. eight (8) hours for one (1) day). Time off shall be charged based on the number of hours in the workday missed (i.e. an employee on a 4/10 schedule will be charged ten (10) hours for each day missed on vacation, sick leave, etc.) Employees on alternate work schedules of more than eight (8) hours taking a holiday off shall be required to supplement their eight (8) hours of holiday pay in order to receive payment for the full day. Section V. DMV Pull Notice Program: Employees who have the opportunity to operate motorized vehicles on city business are required to be safe drivers and operate vehicles in a safe manner. Employees, who have the opportunity to operate vehicles on city business, must possess and maintain a valid California driver’s license appropriate for the job and vehicle(s) to be operated. Employees who have the opportunity to operate motorized vehicles while on duty must also either: (1) enroll in the City's department of motor vehicles employer pull-notice program, or (2) provide the city with periodic updates of his or her driving record. 1. If an employee enrolls in the DMV employer pull notice program, the employee must fill out a City-specified enrollment form directing the DMV to provide the City with periodic updates of the employee’s driving record. 2. If an employee elects not to enroll in the DMV employer pull notice program, the employee is responsible for providing the City with periodic updates of the employee’s driving Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 225 of 309 Page 29 of 31 record. These updates shall be provided annually during the month of January and every time the employee receives a citation or other entry on his or her driving record which impacts his or her ability to operate a motor vehicle while on duty, including but not limited to the revocation or temporary suspension of the employee’s drivers’ license. Section W. Payroll Date and Direct Deposit: Employees are paid monthly on the first City Hall working day of the month unless an earlier date is designated by the City for a particular month. The City will notify the Association prior to implementing the bi-weekly payroll calendar as part of the implementation of the new ERP. All unit employees shall enroll in direct deposit within sixty (60) days of employment. Employees shall maintain direct deposit. Employees needing an exception to direct deposit shall submit a request stating the reasons for the exception in writing to the Human Resources Director for consideration. The decision of the Human Resources Director shall be final. Section X. Change of Work Schedule (Public Safety Communicators): In the event of a long-term vacancy (i.e., longer than one full work week), the employee who selected the swing shift (“bump shift”) will be assigned to the vacant shift to ensure adequate coverage. Except in cases of emergency or unforeseen circumstances that may require immediate staffing adjustments, employees shall be provided no less than seven (7) calendar days’ notice prior to the reassignment. It is recognized that schedules may be altered to facilitate shift changes, changes in assigned days off between shift changes, training requirements, special operations, or emergency situations, including the long-term illness or disability on the part of department members. ARTICLE IX. PEACEFUL PERFORMANCE During the life of this Agreement, no work stoppages, strikes, slowdowns, or picketing shall be caused or sanctioned by the UNION, and no lockouts shall be made by the City of Gilroy. In the event that any employees covered by this Agreement, individually or collectively, violate the provisions of this article and the UNION fails to exercise good faith in halting the work interruption, the UNION and the employees involved shall be deemed in violation of this article and the CITY shall be entitled to seek all remedies available to it under applicable law. ARTICLE X. REINSTATEMENT The City shall have the option of reinstating employees who resigned in good standing and to reinstate accrued sick leave and seniority for salary step and leave accrual purposes. This Article can also apply when an employee is laid off and within two years of the employee’s layoff date is hired back to a new job classification. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 226 of 309 Page 30 of 31 ARTICLE XI. REOPENERS 1. Upon request by the City, the City and Union will reopen the MOU to negotiate implementation of a bi-weekly payroll system and to address other changes related to payroll system implementation. The parties’ intention is to develop a bi-weekly pay calendar that will result in employees receiving a portion of their pay earlier in the month. 2. In the event the Employer contribution required by CalPERS for any year cover by the MOU exceeds the estimates in CalPERS’ 2016 actuarial valuation, the City and Union will reopen the contract to negotiate changes to address the rate increases. 3. Upon request by the City, the City and Union will reopen negotiations on revised Human Resources Rules and Regulations to address any substantive changes to the Human Resources Rules and Regulations. 4. Upon request by the City, the City and Union will reopen negotiations on revised Drug and Alcohol Testing Policy to address any changes within the scope of representation. 5. The City will continue the practice of including the Union in the review cycle for the issuance of new procedures or for making changes to existing procedures that impact terms and conditions of employment. 6. Upon request by the City, the City and Union will reopen negotiations on a revised Employer-Employee Relations Resolution to address any substantive changes to the Employer-Employee Relations Resolution. ARTICLE XII. FULL UNDERSTANDING This Memorandum of Understanding is the result of the parties’ good faith meeting and conferring pursuant to the MMBA and sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its rights to negotiate and agrees that the other party shall not be required to negotiate wit h respect to any matter covered herein during the term of this Memorandum of Understanding. Nothing in this paragraph shall preclude the parties from jointly agreeing to meet and confer on any issue(s) within the scope of representation during the term of this agreement. Where this MOU conflicts with the Human Resources Rules and Regulations, the terms of this MOU shall control. ARTICLE XIII. SAVINGS PROVISION If any provisions of this Memorandum of Understanding are held to be contrary to law by a court of competent jurisdiction or invalidated by state or federal law, such provisions will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. Should the State of California adopt legislation forbidding or economically penalizing the CITY for granting any compensation increases called for in t his agreement, the compensation increase shall be suspended. The CITY and Association shall meet and confer regarding any suspended compensation increases. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 227 of 309 Page 31 of 31 ARTICLE XIV. TERM This Memorandum of Understanding represents the entire Agreement between the CITY and UNION on subjects contained herein and shall become in full force and effect on July 1, 2026 unless otherwise noted and shall continue in full force and effect until Midnight June 30, 2029. The UNION shall provide the CITY with its proposals for the period beginning July 1, 2029 no later than February 1, 2029. The parties agree to begin the meet and confer process by February 28, 2029. For the City of Gilroy: For Gilroy, AFSCME, Local 101 Signature/Date Signature/Date Matt Morley, City Administrator Carol McEwan, AFSCME Business Agent Charles Sakai, Labor Negotiations Legal Counsel Jon Shouse, President LeeAnn McPhillips, Special Assistant - Human Resources & Risk Management John Sousa, Vice-President John Doughty, Public Works Director Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB 7/22/2026 7/22/2026 7/22/2026 Page 228 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,035.58 11,587.50 12,166.75 12,775.17 13,413.75 14,084.58 14,788.75 15,528.17 132,427 139,050 146,001 153,302 160,965 169,015 177,465 186,338 Assistant Engineer 8536 10,032.33 10,534.08 11,060.67 11,613.75 12,194.33 12,804.17 13,444.33 14,116.50 Environmental Engineer 8538 120,388 126,409 132,728 139,365 146,332 153,650 161,332 169,398 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,082.25 9,536.33 10,013.08 10,513.75 11,039.42 11,591.42 12,171.00 12,779.50 Planner II 8513 108,987 114,436 120,157 126,165 132,473 139,097 146,052 153,354 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 8,727.83 9,164.17 9,622.42 10,103.33 10,608.67 11,139.00 11,696.00 12,280.75 Communicator 104,734 109,970 115,469 121,240 127,304 133,668 140,352 147,369 Building Inspector II 8521 8,641.42 9,073.50 9,527.17 10,003.58 10,503.67 11,028.83 11,580.25 12,159.33 103,697 108,882 114,326 120,043 126,044 132,346 138,963 145,912 Public Safety 8634 8,471.08 8,894.58 9,339.42 9,806.33 10,296.75 10,811.58 11,352.08 11,919.67 Communicator 101,653 106,735 112,073 117,676 123,561 129,739 136,225 143,036 Engineering 8532 8,304.33 8,719.33 9,155.33 9,613.17 10,093.75 10,598.58 11,128.50 11,684.92 Technician/Inspector III 99,652 104,632 109,864 115,358 121,125 127,183 133,542 140,219 Accountant 8552 8,222.00 8,633.08 9,064.75 9,517.92 9,993.92 10,493.58 11,018.25 11,569.17 Building Inspector I 8520 98,664 103,597 108,777 114,215 119,927 125,923 132,219 138,830 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 7,517.58 7,893.67 8,288.33 8,702.67 9,137.83 9,594.75 10,074.50 10,578.25 90,211 94,724 99,460 104,432 109,654 115,137 120,894 126,939 Accounting Technician II 8554 7,296.58 7,661.50 8,044.50 8,446.75 8,869.08 9,312.50 9,778.17 10,267.00 Senior Facilities Maintenance 8507 87,559 91,938 96,534 101,361 106,429 111,750 117,338 123,204 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,152.83 7,510.42 7,885.92 8,280.33 8,694.25 9,129.08 9,585.58 10,064.92 Technician/Inspector II 85,834 90,125 94,631 99,364 104,331 109,549 115,027 120,779 Information Technology 8561 6,942.58 7,289.50 7,654.00 8,036.75 8,438.58 8,860.50 9,303.58 9,768.75 Technician II 83,311 87,474 91,848 96,441 101,263 106,326 111,643 117,225 Job Class Number Rev 8/24 Page 1 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 229 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 6,805.75 7,145.92 7,503.25 7,878.50 8,272.42 8,686.00 9,120.33 9,576.33 Sr. Maintenance Worker -8504 81,669 85,751 90,039 94,542 99,269 104,232 109,444 114,916 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 6,671.58 7,005.00 7,355.33 7,723.25 8,109.25 8,514.83 8,940.50 9,387.50 80,059 84,060 88,264 92,679 97,311 102,178 107,286 112,650 Accounting Technician I 8553 6,605.50 6,935.83 7,282.58 7,646.67 8,029.00 8,430.50 8,852.00 9,294.58 Facilities Maintenance 8505 79,266 83,230 87,391 91,760 96,348 101,166 106,224 111,535 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,475.42 6,799.17 7,139.00 7,496.00 7,870.83 8,264.33 8,677.50 9,111.42 Technician/Inspector I 77,705 81,590 85,668 89,952 94,450 99,172 104,130 109,337 Water Operator 8544 Community Coordinator 8547 6,411.17 6,731.75 7,068.42 7,421.75 7,792.83 8,182.58 8,591.58 9,021.25 Community Engagement 8549 76,934 80,781 84,821 89,061 93,514 98,191 103,099 108,255 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,284.83 6,599.17 6,929.08 7,275.58 7,639.42 8,021.33 8,422.42 8,843.50 Information Technology 8560 75,418 79,190 83,149 87,307 91,673 96,256 101,069 106,122 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,039.67 6,341.67 6,658.75 6,991.58 7,341.17 7,708.25 8,093.75 8,498.33 72,476 76,100 79,905 83,899 88,094 92,499 97,125 101,980 Accounting Assistant II 8605 5,979.92 6,278.83 6,592.83 6,922.42 7,268.58 7,632.00 8,013.50 8,414.17 71,759 75,346 79,114 83,069 87,223 91,584 96,162 100,970 PW Maintenance Worker II 8564 5,861.92 6,155.17 6,462.92 6,785.92 7,125.33 7,481.67 7,855.75 8,248.58 Utilities Maintenance Wrkr II 8565 70,343 73,862 77,555 81,431 85,504 89,780 94,269 98,983 Senior Custodian 8509 5,804.08 6,094.25 6,398.83 6,718.92 7,054.83 7,407.67 7,778.08 8,167.00 69,649 73,131 76,786 80,627 84,658 88,892 93,337 98,004 Rev 8/24 Page 2 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 230 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 5,689.75 5,974.25 6,272.75 6,586.58 6,915.75 7,261.50 7,624.67 8,005.83 68,277 71,691 75,273 79,039 82,989 87,138 91,496 96,070 Community Services Officer 8632 5,633.33 5,915.08 6,210.75 6,521.25 6,847.33 7,189.58 7,549.08 7,926.50 67,600 70,981 74,529 78,255 82,168 86,275 90,589 95,118 Accounting Assistant I 8604 5,413.50 5,684.17 5,968.42 6,266.67 6,580.25 6,909.08 7,254.58 7,617.25 64,962 68,210 71,621 75,200 78,963 82,909 87,055 91,407 PW Maintenance Worker I 8562 5,306.83 5,572.25 5,850.92 6,143.33 6,450.42 6,772.83 7,111.50 7,467.08 Utilities Maintenance Worker I 8563 63,682 66,867 70,211 73,720 77,405 81,274 85,338 89,605 Recreation Specialist 8548 Office Assistant II 8601 5,150.83 5,408.42 5,678.75 5,962.67 6,260.67 6,573.83 6,902.50 7,247.67 Police Records Technician I 8608 61,810 64,901 68,145 71,552 75,128 78,886 82,830 86,972 Custodian 8506 4,999.25 5,249.25 5,511.75 5,787.17 6,076.75 6,380.42 6,699.42 7,034.42 59,991 62,991 66,141 69,446 72,921 76,565 80,393 84,413 Office Assistant I 8600 4,662.92 4,896.08 5,140.83 5,397.92 5,667.92 5,951.17 6,248.75 6,561.17 55,955 58,753 61,690 64,775 68,015 71,414 74,985 78,734 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 231 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,443.92 12,016.25 12,616.92 13,247.83 13,910.08 14,605.75 15,335.92 16,102.75 137,327 144,195 151,403 158,974 166,921 175,269 184,031 193,233 Assistant Engineer 8536 10,403.50 10,923.83 11,469.92 12,043.50 12,645.50 13,277.92 13,941.75 14,638.83 Environmental Engineer 8538 124,842 131,086 137,639 144,522 151,746 159,335 167,301 175,666 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,418.33 9,889.17 10,383.58 10,902.75 11,447.92 12,020.33 12,621.33 13,252.33 Planner II 8513 113,020 118,670 124,603 130,833 137,375 144,244 151,456 159,028 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 9,050.75 9,503.25 9,978.42 10,477.17 11,001.17 11,551.17 12,128.75 12,735.17 Communicator 108,609 114,039 119,741 125,726 132,014 138,614 145,545 152,822 Building Inspector II 8521 8,961.17 9,409.25 9,879.67 10,373.75 10,892.33 11,436.92 12,008.75 12,609.25 107,534 112,911 118,556 124,485 130,708 137,243 144,105 151,311 Public Safety 8634 8,784.50 9,223.67 9,685.00 10,169.17 10,677.75 11,211.58 11,772.08 12,360.67 Communicator 105,414 110,684 116,220 122,030 128,133 134,539 141,265 148,328 Engineering 8532 8,611.58 9,041.92 9,494.08 9,968.83 10,467.25 10,990.75 11,540.25 12,117.25 Technician/Inspector III 103,339 108,503 113,929 119,626 125,607 131,889 138,483 145,407 Accountant 8552 8,526.25 8,952.50 9,400.17 9,870.08 10,363.67 10,881.83 11,425.92 11,997.25 Building Inspector I 8520 102,315 107,430 112,802 118,441 124,364 130,582 137,111 143,967 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 7,795.75 8,185.75 8,595.00 9,024.67 9,475.92 9,949.75 10,447.25 10,969.67 93,549 98,229 103,140 108,296 113,711 119,397 125,367 131,636 Accounting Technician II 8554 7,566.58 7,945.00 8,342.17 8,759.25 9,197.25 9,657.08 10,140.00 10,646.92 Senior Facilities Maintenance 8507 90,799 95,340 100,106 105,111 110,367 115,885 121,680 127,763 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,417.50 7,788.33 8,177.67 8,586.67 9,015.92 9,466.83 9,940.25 10,437.33 Technician/Inspector II 89,010 93,460 98,132 103,040 108,191 113,602 119,283 125,248 Information Technology 8561 7,199.50 7,559.25 7,937.17 8,334.08 8,750.83 9,188.33 9,647.83 10,130.17 Technician II 86,394 90,711 95,246 100,009 105,010 110,260 115,774 121,562 Job Class Number Rev 8/24 Page 1 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 232 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 7,057.58 7,410.33 7,780.83 8,170.00 8,578.50 9,007.42 9,457.75 9,930.67 Sr. Maintenance Worker -8504 84,691 88,924 93,370 98,040 102,942 108,089 113,493 119,168 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 6,918.42 7,264.17 7,627.50 8,009.00 8,409.33 8,829.92 9,271.33 9,734.83 83,021 87,170 91,530 96,108 100,912 105,959 111,256 116,818 Accounting Technician I 8553 6,849.92 7,192.50 7,552.00 7,929.58 8,326.08 8,742.42 9,179.50 9,638.50 Facilities Maintenance 8505 82,199 86,310 90,624 95,155 99,913 104,909 110,154 115,662 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,715.00 7,050.75 7,403.17 7,773.33 8,162.08 8,570.08 8,998.58 9,448.50 Technician/Inspector I 80,580 84,609 88,838 93,280 97,945 102,841 107,983 113,382 Water Operator 8544 Community Coordinator 8547 6,648.42 6,980.83 7,329.92 7,696.33 8,081.17 8,485.33 8,909.50 9,355.00 Community Engagement 8549 79,781 83,770 87,959 92,356 96,974 101,824 106,914 112,260 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,517.33 6,843.33 7,185.50 7,544.75 7,922.08 8,318.08 8,734.08 9,170.75 Information Technology 8560 78,208 82,120 86,226 90,537 95,065 99,817 104,809 110,049 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,263.17 6,576.33 6,905.08 7,250.25 7,612.75 7,993.42 8,393.25 8,812.75 75,158 78,916 82,861 87,003 91,353 95,921 100,719 105,753 Accounting Assistant II 8605 6,201.17 6,511.17 6,836.75 7,178.58 7,537.50 7,914.42 8,310.00 8,725.50 74,414 78,134 82,041 86,143 90,450 94,973 99,720 104,706 PW Maintenance Worker II 8564 6,078.83 6,382.92 6,702.08 7,037.00 7,389.00 7,758.50 8,146.42 8,553.75 Utilities Maintenance Wrkr II 8565 72,946 76,595 80,425 84,444 88,668 93,102 97,757 102,645 Senior Custodian 8509 6,018.83 6,319.75 6,635.58 6,967.50 7,315.83 7,681.75 8,065.83 8,469.17 72,226 75,837 79,627 83,610 87,790 92,181 96,790 101,630 Rev 8/24 Page 2 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 233 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 5,900.25 6,195.33 6,504.83 6,830.25 7,171.67 7,530.17 7,906.75 8,302.08 70,803 74,344 78,058 81,963 86,060 90,362 94,881 99,625 Community Services Officer 8632 5,841.75 6,133.92 6,440.58 6,762.50 7,100.67 7,455.58 7,828.42 8,219.75 70,101 73,607 77,287 81,150 85,208 89,467 93,941 98,637 Accounting Assistant I 8604 5,613.83 5,894.50 6,189.25 6,498.50 6,823.75 7,164.75 7,523.00 7,899.08 67,366 70,734 74,271 77,982 81,885 85,977 90,276 94,789 PW Maintenance Worker I 8562 5,503.17 5,778.42 6,067.42 6,370.67 6,689.08 7,023.42 7,374.67 7,743.33 Utilities Maintenance Worker I 8563 66,038 69,341 72,809 76,448 80,269 84,281 88,496 92,920 Recreation Specialist 8548 Office Assistant II 8601 5,341.42 5,608.50 5,888.83 6,183.25 6,492.33 6,817.08 7,157.92 7,515.83 Police Records Technician I 8608 64,097 67,302 70,666 74,199 77,908 81,805 85,895 90,190 Custodian 8506 5,184.25 5,443.50 5,715.67 6,001.33 6,301.58 6,616.50 6,947.33 7,294.67 62,211 65,322 68,588 72,016 75,619 79,398 83,368 87,536 Office Assistant I 8600 4,835.42 5,077.25 5,331.08 5,597.67 5,877.67 6,171.33 6,479.92 6,803.92 58,025 60,927 63,973 67,172 70,532 74,056 77,759 81,647 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 234 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,787.25 12,376.75 12,995.42 13,645.25 14,327.42 15,043.92 15,796.00 16,585.83 141,447 148,521 155,945 163,743 171,929 180,527 189,552 199,030 Assistant Engineer 8536 10,715.58 11,251.58 11,814.00 12,404.83 13,024.83 13,676.25 14,360.00 15,078.00 Environmental Engineer 8538 128,587 135,019 141,768 148,858 156,298 164,115 172,320 180,936 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,700.92 10,185.83 10,695.08 11,229.83 11,791.33 12,380.92 13,000.00 13,649.92 Planner II 8513 116,411 122,230 128,341 134,758 141,496 148,571 156,000 163,799 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 9,322.25 9,788.33 10,277.75 10,791.50 11,331.17 11,897.67 12,492.58 13,117.25 Communicator 111,867 117,460 123,333 129,498 135,974 142,772 149,911 157,407 Building Inspector II 8521 9,230.00 9,691.50 10,176.08 10,685.00 11,219.08 11,780.00 12,369.00 12,987.50 110,760 116,298 122,113 128,220 134,629 141,360 148,428 155,850 Public Safety 8634 9,048.00 9,500.42 9,975.58 10,474.25 10,998.08 11,547.92 12,125.25 12,731.50 Communicator 108,576 114,005 119,707 125,691 131,977 138,575 145,503 152,778 Engineering 8532 8,869.92 9,313.17 9,778.92 10,267.92 10,781.25 11,320.50 11,886.42 12,480.75 Technician/Inspector III 106,439 111,758 117,347 123,215 129,375 135,846 142,637 149,769 Accountant 8552 8,782.00 9,221.08 9,682.17 10,166.17 10,674.58 11,208.25 11,768.67 12,357.17 Building Inspector I 8520 105,384 110,653 116,186 121,994 128,095 134,499 141,224 148,286 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 8,029.58 8,431.33 8,852.83 9,295.42 9,760.17 10,248.25 10,760.67 11,298.75 96,355 101,176 106,234 111,545 117,122 122,979 129,128 135,585 Accounting Technician II 8554 7,793.58 8,183.33 8,592.42 9,022.00 9,473.17 9,946.83 10,444.17 10,966.33 Senior Facilities Maintenance 8507 93,523 98,200 103,109 108,264 113,678 119,362 125,330 131,596 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,640.00 8,022.00 8,423.00 8,844.25 9,286.42 9,750.83 10,238.42 10,750.42 Technician/Inspector II 91,680 96,264 101,076 106,131 111,437 117,010 122,861 129,005 Information Technology 8561 7,415.50 7,786.00 8,175.25 8,584.08 9,013.33 9,464.00 9,937.25 10,434.08 Technician II 88,986 93,432 98,103 103,009 108,160 113,568 119,247 125,209 Job Class Number Rev 8/24 Page 1 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 235 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 7,269.33 7,632.67 8,014.25 8,415.08 8,835.83 9,277.67 9,741.50 10,228.58 Sr. Maintenance Worker -8504 87,232 91,592 96,171 100,981 106,030 111,332 116,898 122,743 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 7,126.00 7,482.08 7,856.33 8,249.25 8,661.58 9,094.83 9,549.50 10,026.92 85,512 89,785 94,276 98,991 103,939 109,138 114,594 120,323 Accounting Technician I 8553 7,055.42 7,408.25 7,778.58 8,167.50 8,575.83 9,004.67 9,454.92 9,927.67 Facilities Maintenance 8505 84,665 88,899 93,343 98,010 102,910 108,056 113,459 119,132 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,916.42 7,262.25 7,625.25 8,006.50 8,406.92 8,827.17 9,268.50 9,731.92 Technician/Inspector I 82,997 87,147 91,503 96,078 100,883 105,926 111,222 116,783 Water Operator 8544 Community Coordinator 8547 6,847.83 7,190.25 7,549.83 7,927.25 8,323.58 8,739.92 9,176.75 9,635.67 Community Engagement 8549 82,174 86,283 90,598 95,127 99,883 104,879 110,121 115,628 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,712.83 7,048.67 7,401.08 7,771.08 8,159.75 8,567.67 8,996.08 9,445.83 Information Technology 8560 80,554 84,584 88,813 93,253 97,917 102,812 107,953 113,350 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,451.08 6,773.58 7,112.25 7,467.75 7,841.17 8,233.25 8,645.08 9,077.17 77,413 81,283 85,347 89,613 94,094 98,799 103,741 108,926 Accounting Assistant II 8605 6,387.17 6,706.50 7,041.83 7,393.92 7,763.67 8,151.83 8,559.33 8,987.25 76,646 80,478 84,502 88,727 93,164 97,822 102,712 107,847 PW Maintenance Worker II 8564 6,261.17 6,574.42 6,903.17 7,248.08 7,610.67 7,991.25 8,390.83 8,810.33 Utilities Maintenance Wrkr II 8565 75,134 78,893 82,838 86,977 91,328 95,895 100,690 105,724 Senior Custodian 8509 6,199.42 6,509.33 6,834.67 7,176.50 7,535.33 7,912.17 8,307.83 8,723.25 74,393 78,112 82,016 86,118 90,424 94,946 99,694 104,679 Rev 8/24 Page 2 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 236 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 6,077.25 6,381.17 6,700.00 7,035.17 7,386.83 7,756.08 8,143.92 8,551.17 72,927 76,574 80,400 84,422 88,642 93,073 97,727 102,614 Community Services Officer 8632 6,017.00 6,317.92 6,633.83 6,965.42 7,313.67 7,679.25 8,063.25 8,466.33 72,204 75,815 79,606 83,585 87,764 92,151 96,759 101,596 Accounting Assistant I 8604 5,782.25 6,071.33 6,374.92 6,693.42 7,028.50 7,379.67 7,748.67 8,136.08 69,387 72,856 76,499 80,321 84,342 88,556 92,984 97,633 PW Maintenance Worker I 8562 5,668.25 5,951.75 6,249.42 6,561.75 6,889.75 7,234.08 7,595.92 7,975.67 Utilities Maintenance Worker I 8563 68,019 71,421 74,993 78,741 82,677 86,809 91,151 95,708 Recreation Specialist 8548 Office Assistant II 8601 5,501.67 5,776.75 6,065.50 6,368.75 6,687.08 7,021.58 7,372.67 7,741.33 Police Records Technician I 8608 66,020 69,321 72,786 76,425 80,245 84,259 88,472 92,896 Custodian 8506 5,339.75 5,606.83 5,887.17 6,181.33 6,490.67 6,815.00 7,155.75 7,513.50 64,077 67,282 70,646 74,176 77,888 81,780 85,869 90,162 Office Assistant I 8600 4,980.50 5,229.58 5,491.00 5,765.58 6,054.00 6,356.50 6,674.33 7,008.00 59,766 62,755 65,892 69,187 72,648 76,278 80,092 84,096 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 237 of 309 AFSCME, LOCAL 101, GENERAL UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 1 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 General Unit MOU Parks & Landscape Section – Public Works Streets/Trees/Stormwater & Drainage Section – Public Works If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Class A License $20.00 Class A License $20.00 Class A License $20.00 Class A License $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 Qualified Applicator’s Certificate $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 (ONLY APPLIABLE TO EMPLOYEES HIRED PRIOR TO 7/1/2026 WITH NO LAPSE-SEE MOU) 1 = $50.00 2 = $150.00 3 = $250.00 4 = $300.00 AWWA Backflow Prevention Tester $20.00 Playground Inspection Certification $20.00 AWWA Backflow Prevention Tester $20.00 Qualified Applicator’s Certificate $20.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 Pesticide Advisor Certification $50.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 Pesticide Advisor Certification $50.00 State of CA Water Treatment Operator (any level) $20.00 ISA Certified Arborist $250.00 State of CA Water Treatment Operator (any level) $20.00 ISA Certified Arborist $250.00 AWWA Cross Connection Specialist $20.00 AWWA Cross Connection Specialist $20.00 Qualified Applicator’s Certificate $20.00 Qualified Applicator’s Certificate $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 238 of 309 AFSCME, LOCAL 101, GENERAL UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 2 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 General Unit MOU Parks & Landscape Section – Public Works Streets/Trees/Stormwater & Drainage Section – Public Works If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Playground Inspection Certification $20.00 Playground Inspection Certification $20.00 Pesticide Advisor Certification $20.00 Pesticide Advisor Certification $20.00 Water – Utilities Wastewater - Utilities If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Class A License $20.00 Class A License $20.00 Class A License $20.00 Class A License $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Distribution Operator Grade 1, 2, 3, 4, or 5 1 = $50.00 2 = $150.00 3 = $250.00 4 = $300.00 5 = $400.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $50.00 2 = $150.00 3 = $250.00 4 = $300.00 AWWA Backflow Prevention Tester $20.00 AWWA Backflow Prevention Tester $20.00 AWWA Backflow Prevention Tester $20.00 Qualified Applicator’s Certificate $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 239 of 309 AFSCME, LOCAL 101, GENERAL UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 3 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 General Unit MOU Water – Utilities Wastewater - Utilities If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Treatment Operator 1, 2, 3, or 4 1 = $20.00 2 = $40.00 3 = $60.00 4 = $80.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Treatment Operator (any level) $20.00 AWWA Cross Connection Specialist $20.00 State of CA Water Treatment Operator (any level) $20.00 AWWA Cross Connection Specialist $20.00 Qualified Applicator’s Certificate $20.00 AWWA Cross Connection Specialist $20.00 Qualified Applicator’s Certificate $20.00 Qualified Applicator’s Certificate $20.00 Playground Inspection Certification $20.00 Playground Inspection Certification $20.00 Pesticide Advisor Certification $20.00 Pesticide Advisor Certification $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 240 of 309 C Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 241 of 309 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 242 of 309 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 243 of 309 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 244 of 309 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 245 of 309 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF GILROY AND AFSCME, AFL-CIO, LOCAL 101 GILROY CHAPTER SUPERVISORY UNIT JULY 1, 2026 – JUNE 30, 2029 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 246 of 309 TABLE OF CONTENTS AFSCME, LOCAL 101 SUPERVISORY UNIT MOU ARTICLE/SECTION DESCRIPTION PAGE NUMBER ARTICLE I PARTIES TO THE AGREEMENT 1 ARTICLE II RECOGNITION AND SCOPE 1 ARTICLE III CITY RIGHTS 1 Section A In General 1 Section B Rights Enumerated 1 Section C Employee Grievances Not Impaired 2 Section D Consultations with Union 2 ARTICLE IV UNION RIGHTS 2 Section A Union Security 2 Section B Information 3 Section C Employee Orientation 3 ARTICLE V SALARIES AND OTHER COMPENSATION 3 Section A Salaries 3 Section B Retention/Recognition Incentive/Health Reimbursement Arrangement 5 Section C Retirement Plans and Contributions 5 Section D Shift Differential 6 Section E Tuition Reimbursement 7 Section F Overtime 7 Section G Stand-By Pay 8 Section H Call Back Pay 9 Section I Temporary Upgrade Pay 9 Section K Certificate/License Pay 10 Section L Bi-Lingual Pay 12 Section M Deferred Compensation 13 ARTICLE VI INSURANCE PROGRAMS 13 Section A Medical and Dental Insurance 13 Section B Life Insurance 14 Section C Long Term Disability Insurance 14 ARTICLE VII LEAVES 15 Section A Vacation Leave 15 Section B Sick Leave 15 Section C Personal Leave 15 Section D Bereavement Leave 16 Section E Holidays 16 Section F Christmas Eve Mandatory Closure 17 ARTICLE/SECTION DESCRIPTION PAGE NUMBER 1 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 247 of 309 TABLE OF CONTENTS AFSCME, LOCAL 101 SUPERVISORY UNIT MOU Section G No Use of Leave to Extend Retirement or Separation Date 18 ARTICLE VIII MISCELLANEOUS 18 Section A Uniforms 18 Section B Safe Work Place Commitment 19 Section C Safety Committee 19 Section D Contracting Out 19 Section E Union Leave 20 Section F City-Paid Meal 21 Section G Employee Commitment 21 Section H Probationary Period 22 Section I Residency Requirements 22 Section J Eyeglass Replacement 22 Section K Layoff Policy 22 Section L Employee Assistance Program 22 Section M Grievance and Disciplinary Action 23 Section N Bulletin Boards, Mail, and E-mail 24 Section O Donation of Vested Time 25 Section P Human Resources File 25 Section Q Labor Management Committee 25 Section R Employee Performance Appraisal 25 Section S Equal Employment Opportunity 26 Section T Alternate Work Schedules 26 Section U DMV Pull Notice Program 26 Section V Payroll Date and Direct Deposit 27 26 PEACEFUL PERFORMANCE 27 ARTICLE X REINSTATEMENT 27 ARTICLE XI REOPENERS 27 ARTICLE XII FULL UNDERSTANDING 28 ARTICLE XIII SAVINGS PROVISION 28 ARTICLE XIV TERM 29 EXHIBITS Exhibit A (1-3)Salary Tables - Supervisory Unit 3 pages Exhibit B Certificate/License Pay Chart - Supervisory Unit 3 pages 2 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 248 of 309 Page 1 of 29 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF GILROY AND AFSCME, AFL, CIO, LOCAL 101 GILROY CHAPTER SUPERVISORY UNIT JULY 1, 2026 - JUNE 30, 2029 ARTICLE I. PARTIES TO THE AGREEMENT This Memorandum of Understanding is jointly prepared and executed by representatives of the City of Gilroy (hereinafter CITY) and the Gilroy Employee Association affiliated with the American Federation of State, County, and Municipal Employees (AFSCME), Local 101, AFL-CIO (hereinafter UNION) for presentation to, and consideration by, the City Council of CITY. It shall not be binding until ratified by the UNION and adopted by the City Council. ARTICLE II. RECOGNITION AND SCOPE CITY hereby recognizes UNION as the recognized employee organization for purposes of Government Code 3500 et seq. and the Employer-Employee Relations Policy of CITY (City Council Resolution 85-25). Such recognition shall extend only to the representation of employees holding permanent positions in the Supervisory Unit. ARTICLE III. CITY RIGHTS Section A. In General: All CITY rights and functions, except those which are expressly abridged by this Agreement, shall remain vested with CITY. Section B. Rights Enumerated: Nothing in this Agreement shall be construed to restrict any legal or inherent exclusive CITY rights with respect to matters of general legislative or managerial policy which include but are not limited to: the exclusive right to determine the mission of its constituent sections; set standards of selection for Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 249 of 309 Page 2 of 29 employment and promotion; train, direct and assign its employees; require overtime work; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of CITY operations; determine the methods, means and personnel by which CITY operations are to be conducted; determine the content of job classifications; take all necessary actions to prepare for and carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. CITY has the right to make reasonable rules and regulations pertaining to employees consistent with this Agreement. Section C. Employee Grievances Not Impaired: 1. The exercise of CITY management rights shall not preclude a grievant from presenting a grievance in accordance with the Human Resources Rules and Regulations, concerning an adverse effect of the exercise of such rights upon employee; provided, however, the b asic right of management to act hereunder or make decisions is unimpaired. 2. Notwithstanding paragraph 1, above, bargaining unit members must utilize the Grievance Procedure contained in Article VIII (P) of the MOU rather than the Human Resources Rules and Regulations for any grievances involving the interpretation, application, or alleged violation of this memorandum of understanding. Section D. Consultations with Union: This Agreement is not intended to restrict the right of CITY to consult with UNION regarding matters within the right of CITY to determine. However, the parties understand that such consultation shall not create any obligation to meet and confer over issues not within the scope of representation. Pursuant to MMBA Section 3504, the scope of representation shall include all matters relating to employment conditions and employer-employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment, except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order. ARTICLE IV. UNION RIGHTS Section. A Union Security: 1. An employee in one of the classes included in the Unit may at any time execute a payroll deduction authorization form (“Deduction Authorization Form”) as furnished by AFSCME. 2. AFSCME will be custodian of records for such Deduction Authorization Form and will provide the City with a certification that it has and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. AFSCME shall not be required to provide the City a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization. However, AFSCME will provide the City with a certification document for each employee with sufficient information to allow the City to identify the appropriate level of deductions. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 250 of 309 Page 3 of 29 3. The City shall begin deductions in the amount prescribed by AFSCME in the first full payroll period after receipt of written certification of employee authorization from AFSCME if received on or before the 20th of the month. Otherwise, the deduction will begin the following month. 4. The City shall direct employee requests to cancel or change deductions to AFSCME and shall rely on information provided by AFSCME regarding whether deductions for an employee organization were properly canceled or changed. 5. Consistent with state law, AFSCME shall indemnify and save harmless the City, its officers and employees, for (1) any claims made by an employee for deductions made in reliance on AFSCME’s certification regarding a Deduction Authorization Form and (2) any claims made by an employee for deductions made in reliance on information provided by AFSCME regarding changes or cancellations to the deduction authorization. 6. The Union shall have the right to use City conference rooms and meeting facilities on the same basis as other governmental organizations. Use of non-public areas shall require prior authorization by the Department Head or designee. All requests for use of facilities shall be made through the Human Resources Director. Section. B Information: The City agrees to provide the Union with names of new hires within the bargaining unit on a timely basis. The City will continue to provide the Union with a monthly report, including Employee Name, Department, Wages, and Deduction Amount. Section. C Employee Orientation: City and AFSCME have agreed to maintain the current process for AFSCME involvement in the orientation of new bargaining unit employees. ARTICLE V. SALARIES AND OTHER COMPENSATION Section A. Salaries: 1. Cost of Living Adjustments a. Salaries in effect on June 30, 2026 shall be increased by three point eight percent (3.8%) effective July 1, 2026. b. Salaries in effect on June 30, 2027 shall be increased by three point seven percent (3.7%) effective July 1, 2027. c. Salaries in effect on June 30, 2028 shall be increased by three percent (3.0%) effective July 1, 2028. d. The above referenced salary increases have been calculated and are included on the attached salary schedules (Exhibit A-3). Due to rounding, the percentage increases are approximate, not exact. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 251 of 309 Page 4 of 29 e. The City will retain a consultant to complete a benchmark Total Compensation Survey with a target completion date of December 31, 2028. In or around October of 2028, the parties will meet with the City’s retained survey consultant and review the consultant’s recommended survey jurisdictions, benchmark classifications, and survey matches for the revised Total Compensation Survey. The Parties intend the Total Compensation Survey to provide data to inform successor MOU negotiations. 2. Step Advancement: Unless additional criteria are specified (e.g., longevity steps), advancement between each step in the salary range will require twelve (12) months of actual service at the employee’s current salary step, plus a “meets standards” or better performance evaluation. 3. Retention Steps Step F (5 Years) Effective the first full pay period following the later of July 1, 2022 or adoption of the MOU by the City Council, the City will add a new Step F to the salary schedule for each bargaining unit classification. Step F will be set approximately 5.0% higher than the existing Step E. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step E), an employee must have completed five (5) years of service in the bargaining unit. Employees who qualify for Step F as of July 1, 2022 (i.e., have both 5 years of service and 12 months at Step E) will be eligible to advance to Step F on July 1, 2022. For these employees, July 1 will become their new evaluation date. All other employees will be eligible to advance to Step F on their regularly scheduled evaluation date. b. Step G (10 Years) Effective the first full pay period following July 1, 2023, the City will add a new Step G to the salary schedule for each bargaining unit classification. Step G will be set approximately 5.0% higher than the existing Step F. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step F), an employee must have completed ten (10) years of service in the bargaining unit. Employees will be eligible to advance to Step G on their regularly scheduled evaluation date. c. Step H (15 Years) Effective the first full pay period following July 1, 2024, the City will add a new Step H to the salary schedule for each bargaining unit classification. Step H will be set approximately 5.0% higher than the existing Step G. In addition to the normal requirements for Step Advancement (12 months of “meets standards” or better performance at Step G), an employee must have completed fifteen (15) years of service in the bargaining unit. Employees will be eligible to advance to Step H on their regularly scheduled evaluation date. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 252 of 309 Page 5 of 29 Section B. Retention/Recognition Incentive/Health Reimbursement Arrangement 1. Retiree Allowance – Eligibility, Amount and Timing An Eligible Retiree, as defined below, shall be eligible to receive a Monthly Allowance, also defined below, from the City until reaching the age of sixty-five (65). An “Eligible Retiree” is a Unit employee that satisfies all the following requirements: • Is at least fifty-five years old. • Begins collecting a CalPERS pension within ninety (90) days after separation from City of Gilroy service • Allowance Amount as follows: Effective Date Years of Service Amount of Monthly Payment to Age 65 Hired Prior to 11/1/2005 At least 15 years of FT service $15 per year of service to cap of $200 Hired on or After 11/1/2005 At least 20 years of FT service $15 per year of service to cap of $200 Effective 6/30/2007 At least 25 years of FT service $15 per year of service to cap of $300 • A Unit employee retiring on or after November 1, 2015, must elect to participate in the City’s retiree health reimbursement arrangement. • Benefits under this section begin the first day of the month following the cessation of City-paid medical benefits. For example, if an employee retires on May 1st and City-paid medical benefits continue through May 31st, the employee will receive his or her first payment under this provision in the month of June. If medical benefits extend to June 30th, then the benefits under this section will begin in the month of July. 2. Eligible Retirees On or After November 1, 2015 The Monthly Allowance for any Unit employee that qualifies as an Eligible Retiree on or after November 1, 2015, including City employees hired or rehired on or after January 1, 2013, shall be made available to the Eligible Retiree under the City’s retiree only health reimbursement arrangement (“Plan”) for the purpose of receiving nontaxable reimbursements of qualifying health care expenses under Sections 105(b) and 213(d) of the Internal Revenue Code. A condition to receiving the Monthly Allowance and participating in the Plan is the submission of an election form to participate in the Plan. Any monthly administrative fees for the health reimbursement arrangement plan shall be borne by the retiree. An Eligible Retiree retiring o n or after November 1, 2015, that does not elect to participate in the Plan will forfeit the Monthly Allowance. Reimbursements from the Plan shall be subject to substantiation that the Eligible Retiree incurred eligible expenses. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 253 of 309 Page 6 of 29 Section C. Retirement Plans and Contributions: The city of Gilroy shall comply with the Public Employee Pension Reform Act (PEPRA)/Assembly Bill 340 (2012) that went into effect on January 1, 2013. PEPRA is a state law that supersedes any conflicting wording that may be contained in this MOU. Miscellaneous CalPERS Group: ▪ Tier One – Miscellaneous Employees Hired Prior to January 1, 2013 and Classic Members of CalPERS Hired on or After January 1, 2013 The City shall provide the 2.5% at 55 PERS retirement plan for AFSCME employees in the Miscellaneous CalPERS category that qualify as a “classic” member of CalPERS. This applies to employees hired to a full-time position with the city of Gilroy prior to January 1, 2013 or an employee hired to a full-time position with the city of Gilroy on or after January 1, 2013 who qualifies as a “classic” member of CalPERS. Employees in this category shall have a pre-tax payroll deduction of eight (8%) percent consistent with IRC 414(h)(2). One (1) year final compensation (pursuant to CA Government Code Section 20042) is used for employees who retire under this formula. The City pays the employer contribution. ▪ Tier Two – Miscellaneous Employees Categorized as “New” CalPERS Members Hired On or After January 1, 2013 New full-time AFSCME employees in the Miscellaneous CalPERS category hired on or after January 1, 2013 who are classified as a “new” member of CalPERS shall receive the 2% at 62 CalPERS retirement plan. Employees in this category shall have a pre-tax payroll deduction for 50% of the total normal cost of the plan as identified annually by CalPERS. This employee payroll deduction amount may change from year to year as required by PEPRA. Three year final compensation is used for employees who retire under this formula. The following items are included in the PERS Miscellaneous retirement contract: ▪ Credit for Unused Sick Leave – pursuant to CA Government Code Section 20965 ▪ 3rd Level 1959 Survivor Benefit – pursuant to CA Government Code Section 21573 ▪ Military Service Credit – pursuant to CA Government Code Section 21024 ▪ Death Benefit – pursuant to CA Government Code Section 21620 Section D. Shift Differential: Shift differential shall be paid as follows: 1. Shift differential shall be paid only for those shifts which have a majority of their hours occurring between 3 PM and 7 AM. a. If the majority of hours occur between 3 PM and 11 PM (swing shift), the City shall pay an hourly premium of two and one half (2.5%) percent of base pay. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 254 of 309 Page 7 of 29 b. If the majority of hours occur between 11 PM and 7 AM (graveyard shift), the City shall pay an hourly premium of five (5%) percent of base pay. 2. Employees shall receive overtime compensation for overtime hours worked, not including shift differential. However, shift differential pay shall be included in the pay rate for employees regularly assigned to the swing or graveyard shift for purpose of computing pay for overtime, sick leave, vacation, and other leave benefits. Section E. Tuition Reimbursement: Effective July 1, 2001, AFSCME members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees, or other student expenses for pre-approved job–related and career development courses. In addition, employees attending city-approved, job related continuing education courses, certification programs, or training conferences may also receive tuition reimbursement for the cost of registration, tuition, books, testing, and/or certifications (including certification renewals). Course work shall be completed on the employee’s own time at the employee’s own expense. Upon successful completion of the pre-approved class or training program, the employee shall provide all written documentation on allowable costs and completion/grade/certification/score, etc. to their department head and human resources for review and processing. The maximum tuition reimbursement for employees is $1,000.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "B" or better for undergraduate and graduate courses, full attendance and completion of the training program, and a passing score for non-graded programs that involve certification or testing. All claims for tuition reimbursement require the pre-approval of the employee’s department head and the Human Resources Director. Tuition Reimbursement Request Forms are available in the Human Resources Department. Section F. Overtime: 1. FLSA Workweek – The FLSA workweeks for Unit employees are as follows unless an alternate workweek is designated and approved by the Human Resources Director: a. 5-8 Work Schedule: 12:00 a.m. Monday to 11:59 p.m. Sunday b. 4-10 Work Schedule: 12:00 a.m. Monday to 11:59 p.m. Sunday c. 9/80 Work Schedule: Midpoint of 8-hour workday to one minute prior to midpoint of the following same day of week off (for example, 12:00 p.m. on Friday (working 8 a.m. to 5 p.m. with a one-hour unpaid lunch break on the Friday) to 11:59 a.m. on the following Friday). d. Other workweek designated in writing and approved by the Human Resources Director. 2. Overtime shall be defined as time worked in excess forty (40) hours per week. All paid time shall be considered hours worked for overtime calculation purposes. Overtime shall be paid at the rate of time and one-half (1.5) in either pay or compensatory time (CTO). 3. In addition, overtime shall be paid for all hours worked in excess of the number of hours in an employee’s regular workday. However, an employee and his or her supervisor may agree to “flex” his or her schedule. In this case, an employee may work additional hours on one day and Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 255 of 309 Page 8 of 29 fewer than normal hours on one or more additional days. Any flex time shall be taken in the same workweek as the additional hours. Flex time shall not create a split shift. The employee shall not earn overtime unless the employee’s total hours worked exceed forty (40) in that workweek. In the absence of an employee’s agreement to flex time, a supervisor may require the employee to flex his or her schedule to accommodate the City’s legitimate operational needs. 4. Each employee shall have the yearly option of accumulating compensatory time off or being paid monthly for overtime accrued during the immediately preceding month. However, employees may not accrue more than eighty (80) hours of CTO in their CTO bank at one time. The Department Heads shall retain the authority of reasonably determining within the best interests of the operation of their respective departments, when accrued CTO may be used by each employee. 5. Employees required to attend mandatory courses, training sessions, or drills during off-duty times, shall be compensated for fifty (50) percent of such time on a straight time basis with a minimum of one (1) hour guarantee. 6. To address issues related the Doctrine of Constructive Receipt, no later than Decemb er 15 of each calendar year, each employee may irrevocably elect the number of overtime hours for which he or she wishes to receive CTO in lieu of pay for the following calendar year. Employees shall earn CTO for all overtime hours worked up to the number of hours elected. All overtime hours worked above the elected number of hours will be paid as overtime, regardless of whether an employee utilizes some or all the accrued CTO as paid leave. 7. This election will be made on a form provided by the City and must be completed and submitted in conformance with the instructions set forth on the form. Failure to make an election prior to the date set forth in this section will result in the employee being paid for all overtime hours worked and the employee will not be eligible for CTO for the calendar year. CTO may not be cashed out except upon separation from employment. Section G. Stand-by Pay: Stand-by duty shall be rotated among employees on a seven (7) day basis. Employees on seven (7) day stand-by shall receive ten (10) hours pay at straight time. If an actual (not observed) holiday falls within the seven (7) day stand-by period, the employee shall receive eight (8) hours pay at straight time for being on stand-by on the actual (not observed) City of Gilroy recognized holiday. The parties understand that stand-by compensation includes pay for incidental work performed while on standby. Examples of incidental work include periodic phone calls, e-mails, and remote monitoring of systems. An employee receiving standby pay is expected to remain available to return to work and will return to work when called in. However, with approval of the supervisor at least 48 hours in advance, an employee may substitute for the employee on standby. Such substitution will be treated like a “shift trade” and the employees will be paid as though they worked their scheduled work and standby shifts. Employees will be responsible for any repayment “shift trades.” Substitutions with less than 48 hours’ Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 256 of 309 Page 9 of 29 notice may be approved in emergency circumstances or other situations which could not reasonably have been foreseen (e.g., illness). Employees on standby duty will be paid at time and one half for work performed after they have returned to the worksite. Section H. Call Back Pay: Call back is defined as any unscheduled event occurring after the employee has physically left work that does not continue into or continue after regular duty time. [For example, an employee called back to work one (1) hour prior to his or her regular start time will be paid overtime for the additional hour but will not qualify for callback pay. Similarly, an employee held over at the end of his or her shift will not qualify for callback pay.] 1. Call back shall be paid at a minimum of three (3) hours at time and one–half (1.5). Employees called on an actual (not observed) City of Gilroy recognized holiday will be compensated on the above schedule, but at a double time rate. 2. This provision shall not apply to prescheduled overtime (such as scheduled staff meetings) except that: a. Members of the Communications and Records Units shall be allowed call back pay when called back for scheduled staff meetings; and b. Employees called back to work for pre-scheduled events where a third party reimburses the City for the call back pay shall be paid a minimum of two (2) hours at time and one half (1.5). However, if the City does not post the voluntary overtime signup at least fourteen (14) calendar days prior to a pre-scheduled event, employees called back to work for that event shall be paid a minimum of three (3) hours at time and one half. Any scheduled event/meeting occurring within thirty (30) minutes of the start or end of an employee’s shift will be assumed to be a continuation of regular duty time. 3. The City has the option of holding over employees in lieu of call back for any length of time upon notification to the employee prior to the event/meeting. Section I. Temporary Upgrade Pay: 1. To qualify for Temporary Upgrade Pay, an employee must be assigned to perform all the duties of a higher classification for ten (10) full working days. 2. Employees who have qualified for Temporary Upgrade Pay in a specific classification shall be paid for each successive day at the rate assigned to the higher classification which represents the lowest step in the higher classification representing a minimum of five (5%) percent increase over the regular pay. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 257 of 309 Page 10 of 29 3. In order to be eligible for Temporary Upgrade Pay, an employee must be assigned by his/her supervisor and approved by his/her Department Head to perform such work. Temporary Upgrade assignments shall be assigned in full day increments. 4. In accordance with Government Code 20480, an employee assigned to work in a Temporary Upgrade assignment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section J. Certificate/License Pay: Class A Driver’s License Pay: Employees in Public Works and Utilities Operations (Operations Services Supervisor and Supervising Water Quality Specialist) who are required to obtain and maintain a current CA Class A driver's license shall be paid $20.00 per month. Certificate Pay for Operations Services Supervisors in Parks & Landscape and Streets/Trees/Stormwater & Drainage Sections of Public Works Operations, and Operations Services Supervisor and Supervising Water Quality Specialist in the Water Section and Wastewater Section of Utilities Operations: For individuals employed on July 1, 2017, the City shall pay the following monthly amounts to individuals holding the following certifications, regardless of Public Works or Utilities Operations work location (Parks & Landscape, Streets/Trees/Stormwater & Drainage, Water, or Wastewater), so long as the individual holds the certification on July 1, 2017 and continues to hold the certification without interruption: • State of California Water Distribution Operator and CWEA Collection System Maintenance Certifications: Grade I $20.00 Grade II $75.00 Grade III $125.00 Grade IV $150.00 The above pays are not cumulative (e.g., employees holding a Grade IV receive $150 in license pay) • Pesticide Advisor - $20.00 • Qualified Applicator Certificate - $20.00 • State of CA Water Treatment Operator (any one level) - $20.00 • AWWA Backflow Prevention Tester - $20.00 • AWWA Cross Connection Specialist - $20.00 • Playground Inspection Certification - $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 258 of 309 Page 11 of 29 Effective July 1, 2017, the City shall pay the following monthly amounts to individuals holding the following certifications, when they are assigned to the listed Section: Parks & Landscape Section: • Pesticide Advisor Certificate - $50.00 • Playground Inspection Certificate - $20.00 • ISA Certified Arborist Certificate - $250.00 Streets/Trees/Stormwater & Drainage Section: • CWEA Collection System Maintenance Certifications (this certificate in this Section only applies to those employees hired prior to July 1, 2026, and who hold the certification continuously with no lapse): Grade III $250.00 Grade IV $300.00 • Pesticide Advisor Certificate - $50.00 • ISA Certified Arborist Certificate - $250.00 Water Section: • State of California Water Distribution Operator Certifications: Grade III $250.00 Grade IV $300.00 Grade V $400.00 • State of California Water Treatment Operator Certifications: Grade II $40.00 Grade III $60.00 Grade IV $80.00 • Cross Connection Control Program Specialist Certificate - $20.00 • Backflow Prevention Assembly General Tester Certificate - $20.00 Wastewater Section: • CWEA Collection System Maintenance Certifications: Grade III $250.00 Grade IV $300.00 Examples: 1. Employee A holds a Grade III WDO Certification on July 1, 2017 and works in Streets. Employee A continues to receive $125 per month for the certification. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 259 of 309 Page 12 of 29 2. Employee B earns a Grade III WDO Certification on August 1, 2017 and works in Streets. Employee B does not receive any license pay for the certification. 3. Employee C earns a Grade V WDO Certification on August 1, 2017 and works in Water. Employee C will begin to receive $400 per month for the certification. It is the responsibility of the employee to obtai n and maintain certifications for which they wish to receive, and wish to continue to receive, certification pay. It is the responsibility of the employee to provide their supervisor AND the human resources department a current written certification documenting valid certifications. It is the responsibility of the employee to monitor expiration dates of certifications, as certification pay will terminate if updated valid certification documentation is not provided prior to the expiration of the certification. If certification pay is terminated due to an expired certification, the employee can reapply at a later time to receive the certification pay. Certification pay will begin the first of the month following human resources receipt of valid, documented certification. The above referenced certificate pay program is further documented on the attached Certificate Pay Chart for Certain Public Works Operations Employees – Supervisory Unit (Exhibit D). Section K. Bi-lingual Pay: 1. Employees in the classification of Public Safety Communications Supervisor who demonstrate the ability to communicate (as a result of a verbal skills test) effectively in both Spanish and English shall receive an additional five (5%) percent of their respective base salaries. 2. Other unit employees are eligible for five (5%) percent bi-lingual pay as follows: a. The City shall determine which employees are needed to serve as interpreters and possess necessary verbal competency in Spanish. The City shall use the following criteria in determining whether it is necessary for an employee to serve as an interpreter: i. Very frequent public contact in person and over the phone. ii. The City uses the employee as an interpreter on a daily basis. iii. The employee works in a department with numerous interpretations with Spanish speaking citizens. b. Examples of employee who will qualify for bi-lingual/interpreter status include those encountering the public at the counters in the finance, recreation, and community development departments. c. Employees receiving bilingual pay must provide interpreter translation services upon request of their supervisor or when contacted by a citizen requiring assistance in Spanish. 3. The City may require any employee receiving bi-lingual pay to recertify (test) based on observed skill or lack of use. However, such re-certification shall occur no more than once every two. This test shall be a verbal skills test. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 260 of 309 Page 13 of 29 Section L. Deferred Compensation: Effective with the pay period beginning 7/1/20, City will contribute $30/month to a City deferred compensation plan on behalf of each bargaining unit member. In order to receive the City contribution, each bargaining unit member must be enrolled in one of the City’s deferred compensation plans. ARTICLE VI. INSURANCE PROGRAMS Section A. Medical and Dental Insurance: 1. City Contributions The City shall provide a cafeteria program dollar contribution for each bargaining unit employee. The cafeteria plan contribution amount is established as of January 1, 2026 as the plan year for health plan coverage is the calendar year. The City cafeteria contribution amount shall increase by 5% each January 1of the MOU using the January 1, 2026 amount as the baseline starting point. Any health plan rate increases in excess of the annual City contribution amount each year shall be paid by the employee. The baseline monthly city cafeteria plan contribution amounts effective as of January 1, 2026 are: Employee Only $939.36 Employee + 1 $1,859.09 Employee + 2 or more $2,480.68 The above contribution amounts include any mandatory PERS PEMHCA contribution and the mandatory Dental Contribution. 2. The contribution amount that the employee qualifies to receive is based upon the number of individuals that the employee enrolls in a medical plan. 3. The employee may purchase other insurance benefits with any remaining contribution amount or through payroll deduction. Some of these benefits may be eligible for a pre-tax deduction. The employee may not waive dental insurance . The employee must enroll himself or herself, along with qualifying dependents, in the Dental plan. Employees waiving medical insurance, or whose medical insurance is less than the City contribution are entitled to the following: a) Hired prior to July 1, 2026 o Bargaining unit members hired by the City on or before June 30, 2026 who waive medical coverage are entitled to $939.36 in taxable cash less the medical contribution required by CalPERS and less the dental premium. o If a bargaining unit member hired by the City on or before June 30, 2026 spends less than the following amounts on medical and dental premiums, the balance will be paid to the employee as taxable cash. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 261 of 309 Page 14 of 29 Employee Only $939.36 Employee +1 dependent $1,859.09 Employee +2 or more $2,480.68 b) Hired on or after July 1, 2026 Bargaining unit members who are newly hired by the City on or after July 1, 2026 who waive medical coverage are entitled to $939.36 in taxable cash less the medical contribution required by CalPERS and less the dental premium. However, the taxable cash paid to an employee in this group after the CalPERS and dental deductions may not exceed $500. 4. The employee may waive medical coverage under this program and enroll in dental insurance provided they show proof of other medical insurance coverage. If the employee waives medical insurance, then the employee is eligible to receive the employee only contribution in cash less than medical contribution required by CalPERS and less the dental premium subject to the caps listed in a) and b) above. Any cash payments received under this program are taxable. 5. Medical In Lieu: Pursuant to the Flores v. City of San Gabriel case, the City includes the medical in lieu amounts as part of the regular rate of pay for calculating FLSA overtime premiums. The City will cease including medical in lieu as part of the regular rate in the event that it is no longer legally required to do so. Section B. Life Insurance: The CITY shall contribute up to $15.00 per employee per month toward the cost of a one-hundred thousand ($100,000) dollar life insurance and accidental death & dismemberment insurance policy for unit members. Section C. Long Term Disability Insurance: For the term of this Agreement the CITY shall maintain in effect the Long Term Disability Program providing for a maximum ninety (90) day elimination period and payment of sixty (60%) percent of salary to a benefit maximum of no less than five thousand ($5,000) per month. Employees shall have the option of using accrued paid time to supplement LTD to bring gross wages to 100%. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 262 of 309 Page 15 of 29 ARTICLE VII. LEAVES Leaves shall be as provided for in Section VI, Leaves of Absence, Vacation and Sick Leave, of the Human Resources Rules and Regulations. Vacation and Sick Leave accumulation shall be as follows: Section A. Vacation Leave: 1. Every full-time employee who shall have been in the service of the CITY shall accrue vacation as follows: Completed Years of Service Mo. Hours Accrued Yearly Accrual 1 - 5 6.67 Hours 80 hours 6 - 15 10.00 Hours 120 hours 15 + 13.33 Hours 160 hours Employees will be allowed to maintain a vacation leave balance not to exceed two years' vacation leave. Employees at or above the maximum balance will no longer accrue vacation time until such time that the employee’s vacation balance drops below the maximum balance allowed. New employees will be allowed to take earned vacation in the first year subject to the normal approval process. Section B. Sick Leave: Employees shall accrue sick leave at the rate of one (1) 8 -hour day per month. Sick leave may be used as it accrues. Employees shall accrue sick leave while on paid vacation. A physician's verification of illness may be required. 1. Family Sick Leave Employees may use sick leave for any leave covered by the Family and Medical Leave Act or the California Family Rights Act, including covered absences to care for a family member. For absences not covered by the Family and Medical Leave Act or the California Family Rights Act, employees shall be allowed up to six months’ accrual of sick leave (six days or 50% of the annual accrual) to attend to an illness of a child, parent, spouse, or domestic partner of the employee in accordance with the California Labor Code Section 233 regarding kin care. 2. Sick Leave for Job-Connected Injuries Employees shall discuss the timing of pre-planned absences with their supervisor. Whenever possible, employees shall schedule partial day absences to minimize disruption in the workplace. This includes, but is not limited to scheduling appointments after hours, during lunch, or as close to the beginning or end of the workday as possible. Section C. Personal Leave: Personal Leave may be used for pre-planned absences in the same manner as vacation. In addition, Personal Leave time may also be used for unforeseen emergencies occurring at the last minute for which the employee could not have planned ahead. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 263 of 309 Page 16 of 29 Personal leave hours are not a vested benefit and do not carry over from one fiscal year to the next. Unit members shall receive personal leave hours on July 1 of each fiscal year as follows: Police Records Supervisor and Public Safety Communications Supervisor All other non-safety Supervisors that do not receive holiday pay 28 hours of personal leave 24 hours of personal leave 0 hours floating holiday 16 hours floating holiday (in observance of Lincoln’s birthday and Admissions Day) 4 hours in observance of the Christmas Eve closure 4 hours in observance of the Christmas Eve closure Total = 32 hours per fiscal year Total = 44 hours per fiscal year Employees hired or terminating during the year shall receive prorated personal leave credit on a quarterly basis. Employee is required to work at least one half of the quarter to receive the quarterly allocation of personal leave time. Since the bank of personal leave hours is fronted to the employee at the start of the fiscal year, if an employee uses more personal leave hours than would be allocated for the fiscal year based on the date of separation, the employee will change the non -eligible excess hours utilized to another available leave bank other than sick leave. Section D. Bereavement Leave: Employees make take up to three (3) days of paid Bereavement Leave within the state and five (5) days of paid Bereavement Leave outside of California for the death of immediate family members, per occurrence. Immediate family members are defined as: Grandmother, Grandfather, Mother, Father, Step-Mother, Step-Father, Mother-in-Law, Father-in-Law, Brother, Sister, Step-Brother, Step-Sister, Husband, Wife, Domestic Partner, Natural Born Child, Adopted Child, and/or Step-Child. Employees may take up to two (2) additional days off using eligible leave banks for the death of an immediate family member within the state. For family members not covered in immediate family and people who have a significant relationship with the employee, an unpaid leave of absence can be taken with the approval of the City Administrator. The City Administrator’s decision is final and not subject to appeal. This section supersedes the language concerning Bereavement Leave in the HR Rules and Regulations. Section E. Holidays: 1. The legal holidays observed by the City shall include: • New Year’s Day • Martin Luther King Day • Washington’s Birthday • March 31st Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 264 of 309 Page 17 of 29 • Memorial Day • Independence Day • Labor Day, Veteran’s Day • Thanksgiving Day • The day following Thanksgiving • Christmas Day When a regular holiday falls on Sunday, the following Monday shall be granted as a day off, and when a regular holiday falls on Saturday, the preceding Friday shall be granted as a day off. Additional paid holidays to those provided in the Human Resources Rules and Regulations and this Agreement may be granted if declared by the Gilroy City Council. 2. Holiday Pay: a. Any employee, other than employees in the classification of Public Safety Communications Supervisor, required to work on any holiday shall receive eight (8) hours of straight time pay for the holiday and time and one-half (1.5) for any hours actually worked on the holiday. b. If a City observed holiday falls on the regular day off for an employee in any job classification other than the classifications of Police Records Technician and Public Safety Communicator, that employee shall arrange with their supervisor to take an alternate day off during the same pay period in which the observed holiday occurred. c. Employees in the classification of Public Safety Communications Supervisor assigned to work holidays shall receive holiday pay at the rate of 6% of the employee’s base monthly salary. Section F. Christmas Eve Mandatory Closure: City offices and all non-essential operations shall be closed on the workday immediately preceding the Christmas Day Holiday. However, this is not a holiday and employees will be required to use either paid or unpaid leave to cover their absence on this day. Employees shall designate, at least two weeks prior to the mandatory closure, what leave time the employee will use to cover this day by following the normal time off request process established in the department. Employees called back to work on the mandatory closure day shall receive call back pay per Article V, Section J contained in this MOU. Employees assigned to stand by duty shall receive stand by pay per Article V, Section I contained in this MOU. Department Heads retain the discretion to determine if there are department staffing needs for the mandatory closure and shall announce this to the affected employees by no later than the last working day in November. Ideally, staffing will be achieved by employees who request to work on this day and then based on seniority. The schedule shall be posted as soon as possible following the end of November announcement and by no later than the end of the first full week in December. Employees who work on the mandatory closure day shall log their time as regular hours worked at straight time. Schedule flexing shall not be permitted on this day. All City Hall employees shall participate in the mandatory closure as the City Hall building will be closed on this date. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 265 of 309 Page 18 of 29 This mandatory closure does not apply to Police Department Records and Communication Unit employees. Community Services Officers normally scheduled to work on this day shall follow their normal work schedule and may request time off per the normal time off procedures. All other Police Department administrative support staff shall participate in the mandatory closure. Section G. No Use of Leave to Extend Retirement or Separation Date: Employees are required to be present at work during the entire two workweeks preceding their retirement or other planned separation from City employment (e.g. resignation to accept new position). Employees may not use accrued leave time to extend their employment. ARTICLE VIII. MISCELLANEOUS Section A. Uniforms: 1. The Public Safety Communications Supervisor (Police Department) and Deputy Fire Marshal/Hazardous Materials Supervisor (Community Development Department) shall receive uniform allowance in the amount of $41.67 per month. Newly hired employees in this classification shall receive an initial uniform allowance of two hundred and fifty ($250) dollars. 2. The City will provide a voucher or reimburse field employees who are required to wear safety shoes in the normal course of his or her duties for one (1) pair of safety shoes per year up to a maximum of $200 per pair. For those employees required to wear safety shoes who are not working in the field on a regular (daily/weekly) basis, the City will provide a voucher or reimbursement for one (1) pair of safety shoes every two years up to a maximum of $200 per pair. The employee is required to wear the shoes at all times when applicable duties are performed. 3. The City will provide a voucher or reimburse employees in the Supervising Code Enforcement Officer position and supervisors in the Public Works and Utilities Operations Divisions for a second pair of safety shoes each year up to a maximum of $200 per pair. 4. Public Works and Utilities Operations field employees shall be supplied, by the City, with an allocation sufficient to purchase five (5) shirts and patches, five (5) pants, and three (3) work hats per year. These shall be of a quality similar to a Ben Davis brand. The annual per employee fiscal year maximum Uniform allotment for Public Works and Utilities Operations is $375.00. a. If an employee can physical show their manager that they have five (5) shirts, five (5) pants, and three (3) hats in good condition, once approved by the manager, the employee can use their uniform allocation for other, non-core uniform items on the approved list. If an employee only needs two (2) pants, two (2) shirts, and one (1) hat to achieve the core allocation noted above, once approve, the employee can use the remaining uniform allotment amount to purchase other, non-core uniform items on the approved list. Absent the manager’s approval to purchase alternate uniform items, the Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 266 of 309 Page 19 of 29 employee shall be required to select the core uniform items (five (5) shirts, five (5) pants, and three (3) hats. Substitutions and modifications may be made by the Uniform Committee made up of Public Works and Utilities Field employees. b. Newly hired employees in these classifications shall receive an initial allocation sufficient to purchase five (5) shirts and patches, five (5) pants, three (3) work hats, one (1) all-weather jacket, one (1) sweatshirt, one (1) belt, and five (5) short-sleeved shirts. c. The first fiscal year annual maximum uniform allotment for each newly hired Public Works and Utilities Operations employee is $620.00. d. The goal of standardized uniforms for field operations personnel is to present a consistent and neat image to the public we serve. 5. The City shall annually (fiscal year) supply supervisory unit positions in Public Works Engineering and Community Development field employees (i.e. Supervising Code Enforcement Officer) with five (5) polo style shirts bearing an approved city logo in a brand and color approved by the City (brand and color to be approved only after taking input on the style and color from the affected employees). The designated employees shall wear the supplied shirts each day at work with pants (khakis or jeans appropriate for work being performed) consistent with the negotiated dress code. The annual allotment for the 5 shirts provided to each employee in specified classifications in Community Development and Engineering in Community Development is $200. If an employee can demonstrate to the they have 5 Polo Shirts in very good condition City is willing to permit employees to use the residual uniform allowance for other approved City-branded apparel (e.g., a jacket, vest, hat, etc.). Pants are excluded from the uniform reimbursement and may not be purchased with the employee’s allotment. 6. The City will report the above referenced uniform allotment to CalPERS on a monthly basis. The initial fiscal year allotment for newly hired employees shall be determined by the number of remaining payroll periods in the fiscal year and will then shift to the regular allotment method in the next fiscal year. Section B. Safe Workplace Commitment: The CITY shall furnish employment and a place of employment which is safe and healthful for the worker therein and shall conform to and comply with all health, safety, and sanitation requirements imposed by State or Federal law or regulations adopted under State or Federal law. Section C. Safety Committee: The UNION shall be entitled to appoint two members to the CITY's Safety Committee. Section D. Contracting Out: (1) Except for temporary contracts (less than one year) or contracts to fill an immediate need (such as a vacant full-time position) the CITY will notify the UNION if it intends to contract out the functions currently performed by employees within the unit. Upon request, at the initiation of the contract and whenever the contract is up for renewal, the CITY will meet with the UNION Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 267 of 309 Page 20 of 29 (including employees with knowledge of the work to be contracted) to explain the reason for the decision to contract out and to solicit UNION views on the proposal, including possibilities for cost savings. Nothing in this section shall be construed to limit the rights of the City Council to contract out work in its sole discretion. Nor shall any meetings under this section meetings delay the City Council’s adoption of any contract. (2) Nothing in this section shall be construed to limit the rights of the City Council, in its sole discretion, to enter into temporary contracts (less than one year) or contracts to fill an immediate need (such as a vacant full-time position). Such contracts shall not be subject to the provisions of Paragraph (1), above. (3) This section shall not apply to part-time hiring or to temporary or provisional appointments, which shall continue to occur at the City’s sole discretion. Section E. Union Leave: 1. UNION Officers (maximum of 7) shall be allowed to utilize a cumulative total of one hundred and twenty (120) hours per fiscal year of release time for UNION business and attendance of UNION related functions including, but not limited to meetings, seminars, and schools. Release time shall be granted subject to minimum staffing requirements of the Department and is subject to Department Head and/or City Administrator approval. UNION officers shall be provided with a reasonable amount of release time to meet with CITY management personnel on: a) Grievances. i. One (1) designated UNION representative is allowed time off without loss of compensation for purposes ofrepresenting an employee in a meeting with City representatives relative to an employee grievance. ii. One (1) designated UNION representative is allowed time off without loss of compensation for the purpose of discussing or investigating a grievance with an employee. b) Issues raised by City Management involving CITY/UNION business. The UNION President and/or a designee will have release time without loss of compensation for the purpose of conducting formal meetings with City Management personnel. Release time must be scheduled in advance with the President's or designee's supervisor. c) Other mutually acceptable reasons. 2. Designated employee representatives shall be provided with release time to participate in formal meet and confer sessions with the CITY. When the meeting is a formal meet and confer session regarding the negotiation of an MOU, such release time shall not be charged to the one hundred and twenty (120) hours time bank described in paragraph 1 above. 3. UNION Representatives who are scheduled to work between the hours of 5:00 pm and 7:40 am shall be released from duty at least 8 hours prior to any scheduled meetings with the City/Department representatives concerning matters within the scope of representation. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 268 of 309 Page 21 of 29 4. UNION representatives shall request permission to use release time as far in advance as reasonably possible. Supervisors will not unreasonably deny requests for release. 5. UNION will provide the CITY a list of all officers, stewards, and representatives. Section F. City-Paid Meal: Employees shall be provided a meal at CITY expense if the employee is required to work two or more hours over their normal work shift in a single working day. Subject work must also conform to the overtime approval requirement. If the City does not provide a meal, employees shall be reimbursed fifteen dollars ($15.00) for the cost of a meal. No receipt will be required. Overtime meal reimbursements shall be documented on the employee’s time sheet/time report and shall be paid with the following payroll as a taxable reimbursement consistent with IRS Regulations (see IRS regulation 15-B, 2013). Section G. Employee Commitment: In consideration of the fair and reasonable provisions of this Memorandum of Understanding, employees represented by the Gilroy Employee’s Association, through their elected representatives, do hereby make the following pledges to the City of Gilroy: 1. Employee shall make every effort to minimize CITY costs on an on-going basis by encouraging optimum amount of work production from each of its members. 2. Employees shall cooperate in every reasonable way to properly maintain and protect CITY property, equipment, and facilities. 3. Employees shall adhere to all Human Resources Rules and Regulations. Specific attention shall be given to those regulations dealing with sick leave, time off, coffee breaks and punctuality. Every effort shall be made to maintai n a good public image for each and all CITY employees. This is to be accomplished by maintaining good work habits and keeping busy at productive work during regular working hours. 4. Employees shall use and follow safe working procedures in their day-to-day work routines. Each employee shall point out to his/her fellow workers any observed unsafe condition or work procedure. Any observed unsafe condition or situation shall be immediately reported by employees to their supervisor. The intent here is to protect fellow workers from any unnecessary injury and the CITY from any potential liability. 5. Employees shall make a special and continuing effort to maintain good and constructive relations with the general public, fellow employees, and CITY officials. Every effort will be made to be considerate and understanding of the other person's point of view, misunderstanding or problem. 6. The Gilroy Employee's Association shall assume a leadership role in carrying out the above pledges. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 269 of 309 Page 22 of 29 Section H. Probationary Period: With the exception of classifications of Public Safety Communication Supervisor, newly hired employees will serve a twelve (12) month probationary period. The classifications of Public Safety Communications Supervisor shall serve an eighteen (18) month probationary period. The probationary period for promotions of permanent employees shall be six (6) months. Section I. Residency Requirements: Employees in the Public Works and Utilities Operations Sections of Water, Wastewater, Parks & Landscape, and Streets/Trees/Stormwater & Drainage required to participate in on-call/stand-by work shall be subject to the following requirements: 1. Employees hired on or after July 1, 1989 shall be required to live, within one (1) year from date of hire, within sixty (60) minutes normal driving time from City Hall. Normal driving time shall be defined as driving the most direct route at the posted speed limit. 2. Employees hired prior to July 1, 1989 living within the sixty (60) minute limit shall be subject to this rule. Current employees living outside the sixty (60) minute limit shall not move outside their present driving radius but may move within it. Section J. Eyeglass Replacement: Once per year (per employee), the CITY shall repair or replace eyeglasses damaged due to the employee's work provided that: 1. The damage was not due to negligence on the employee's part; and 2. The damage was not due to a defect(s) or wear on the glasses. City-paid repair or replacement shall be limited to a maximum of one-hundred and fifty dollars ($150) per incident, per year. Section K. Layoff Policy: The CITY and UNION have agreed to a layoff policy as contained in the Human Resources Rules and Regulations. Section L. Employee Assistance Program: The Employee Assistance Program shall provide for at least ten (10) visits per calendar plan year. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 270 of 309 Page 23 of 29 Section M. Grievance and Disciplinary Action: Bargaining unit members must utilize the Grievance Procedure contained in this article rather than the Human resources Rules and Regulations for any grievances involving the interpretation, application, or alleged violation of this memorandum of understanding. However, any appeal of disciplinary action shall be made pursuant to Section V of the Human Resources Rules and Regulations and not pursuant to this grievance procedure. Grievance Procedure: An employee shall have the right to present a grievance pursuant to this procedure. The employee may be represented by the Association or an individual of the employee’s choice at the formal steps of this grievance procedure (excluding Step 1). If the representative is a fellow employee, that employee will receive time off from his or her work assignment for the time of the grievance meeting or hearing plus reasonable travel time. Forty-eight hours prior to the grievance meeting, the employee shall inform the Human Resources Department whether he or she will be represented at the grievance meeting and identify the representative. Grievances are defined as an alleged violation, misinterpretation, or misapplication of this Memorandum of Understanding. The procedure is not to be used for the following purposes: 1. Resolving complaints, requests or changes in wages, hours and working conditions. 2. To challenge the content of employee evaluations or performance reviews. 3. To challenge a reclassification, layoff, transfer, denial of reinstatement, or denial of a step or merit increase. a. EXCEPTION: Pursuant to the Miscellaneous and Supervisory Units MOU’s, employees in these units may appeal the denial of a merit step increases to the City Administrator. 4. In cases of oral reprimand, written reprimand, reduction in pay, demot ion, suspensions, or termination. 5. To challenge violation of law or past practice. 6. To challenge examinations or appointment to positions. Grievances shall be in writing, dated and signed by the employee and presented to his/her supervisor. Grievances must be submitted within ten (10) calendar days of the occurrence, or the employee’s knowledge of the occurrence, which gives rise to the grievance. All grievances must clearly state the section of the Memorandum of Understanding that the employee alleges was violated, misinterpreted or misapplied; the specific act or omission which gave rise to this alleged violation, misinterpretation or misapplication; the date or dates on which the violation, misinterpretation or misapplication occurred; what documents, witnesses or other evidence support the employee’s position; and the remedy requested. Step1. Initially, all employee grievances should be directed to the immediate supervisor for solution. Step 2. In the event the immediate supervisor meeting does not resolve the grievance within ten (10) calendar days, the supervisor, at the employee's request, shall present the matter to the next level of supervision within the department concerned. That supervisor and any higher-level supervisor(s) in the department's normal chain of command shall attempt to Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 271 of 309 Page 24 of 29 resolve the grievance. Each level of supervisor shall respond in writing to the grievant within ten (10) calendar days of receipt of the grievance. If the grievance is not resolved at a level below Department Head, the supervisor immediately subordinate to the Department Head, at the employee's request, shall present the matter to the Department Head. This presentation shall be made in the presence of the employee. The employee shall be allowed adequate time to present his/her side of the matter. Step 3. In the event the grievance is not adequately resolved within ten (10) calendar days at the Department Head level, the employee may submit the grievance to the City Administrator which submission shall, include the responses received from the supervisors and the Department Head. Step 4. If the grievance is not resolved within ten (10) calendar days at the City Administrator level, the employee or the City Administrator shall notify the Human Resources Director who shall gather the written facts and present them to the Personnel Commission at its next regular meeting. The Personnel Commission (in accordance with Section 907, of the City Charter) shall hear this matter and report its findings within ten (10) calendar days, to the City Council for review. The action of the City Council shall be final. The hearing before the Personnel Commission may be conducted informally and the rules of evidence need not apply. The hearing shall be conducted in an orderly manner with a presentation of all material facts so that a fair and impartial decision may be made. The Commission Chairperson shall have full authority at all times to maintain orderly procedure and to restrict the hearing to facts relevant to the complaint. In hearing the appeal, the Commission may require the employee (appellant) to first present his/her grievance; followed by the immediate supervisor for presentation of his/her attempts to resolve the grievance; followed by the Department Head for presentation of his/her attempts to resolve the grievance; followed by the City Administrator for presentation of his/her attempts to resolve the grievance. All involved parties may be entitled to counsel if they so desire. The appellant will bear the expense of his/her own counsel. The Human Resources Department will provide a checklist to be used in order to ensure that each grievance is dealt with in timely and proper manner. The checklist will be initiated by a supervisor when he/she is first presented with a grievance and will be forwarded along with the grievance and all responses thereto to each succeeding step in the process until a final resolution is obtained. Each succeeding level of authority in this procedure shall refuse to hear the matter unless the preceding step of the procedure has been observed. Section N. Bulletin Boards, Mail, and E-mail: 1. The UNION may install at its own expense bulletin boards of reasonable size and construction as approved by the CITY. Bulletin boards shall be placed in locations approved by the CITY; they may be used for official Union bulletins but may not be used to post inflammatory or defamatory material. Pre-approval by the City may be required of any material proposed to be posted by the Union. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 272 of 309 Page 25 of 29 2. Subject to pre-approval by the Director of Human Resources, the UNION may utilize interoffice mail and electronic mail for the distribution of information. The UNION understands that information sent through the CITY’S servers will be subject to review under appl icable CITY policies and may be subject to disclosure to the public. Section O. Donation of Vested Time: Employees may donate vacation hours, personal leave hours, or compensatory time off hours under the Catastrophic Leave Donation Program outlined in the Gilroy Human Resources Rules and Regulations. Employees may not donate sick leave. Section P. Human Resources Files: At any time during normal working hours, an employee may make an appointment to review their Human Resources file. Employees will be allowed to see their Human Resources file in the presence of a Human Resources representative. An employee’s representative may review an employee’s personnel file in the presence of a Human Resources representative upon presentation of a written release from the employee. Section Q. Labor Management Committee: The City and Union have formed a Labor Management Committee to address issues of importance in labor management relations between the parties. Either party may request that the Committee meet by submitting a written request identifying the specific issue(s) to be discussed. Typically, two representatives shall be appointed by each party. The Committee will not have the authority to add to, amend, or modify this MOU. However, m utually acceptable recommendations of the Committee may be implemented, after any required meet and confer process. Section R. Employee Performance Appraisal: 1. Additional Review If comments are added to an Appraisal by any manager above the level of the supervisor who signs the Appraisal, a copy of the Appraisal (including any additional comments) shall be routed to the employee prior to the EPA being delivered to the Human Resources Department. 2. Appeal Unit employees shall be allowed to appeal any Employee Performance Appraisal with an overall rating of less than satisfactory to the City Administrator. There shall be no other form of appeal. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 273 of 309 Page 26 of 29 Section S. Equal Employment Opportunity: The CITY and AFSCME are committed to providing equal employment opportunit ies for all employees and applicants. Further, the CITY and AFSCME are committed to the elimination of any barriers which restrict women, minorities and the disabled from receiving equal treatment in any aspect of employment. The parties understand that the City may have a legal imperative to act in a manner inconsistent with this agreement or the Human Resources Rules and Regulations. For example, the City may have to accommodate a disabled employee by placing that employee in a particular position without performing a recruitment. Section T. Alternate Work Schedules: The City departments may, in the department heads discretion, establish alternative work schedules. If established: 1) Overtime shall be payable for hours worked in excess of the regular workday. 2) Time off shall be earned as if the employee was working a regular work schedule (i.e. eight (8) hours for one (1) day). Time off shall be charged based on the number of hours in the workday missed (i.e. an employee on a 4/10 schedule will be charged ten (10) hours for each day missed on vacation, sick leave, etc.) Employees on alternate work schedules of more than eight (8) hours taking a holiday off shall be required to supplement their eight (8) hours of holiday pay in order to receive payment for the full day. Section U. DMV Pull Notice Program: Employees who have the opportunity to operate motorized vehicles on city business are required to be safe drivers and operate vehicles in a safe manner. Employees, who have the opportunity to o perate vehicles on city business, must possess and maintain a valid California driver’s license appropriate for the job and vehicle(s) to be operated. Employees who have the opportunity to operate motorized vehicles while on duty must also either: (1) enroll in the City's department of motor vehicles employer pull-notice program, or (2) provide the city with periodic updates of his or her driving record. 1. If an employee enrolls in the DMV employer pull notice program, the employee must fill out a City-specified enrollment form directing the DMV to provide the City with periodic updates of the employee’s driving record. 2. If an employee elects not to enroll in the DMV employer pull notice program, the employee is responsible for providing the City with periodic updates of the employee’s driving record. These updates shall be provided annually during the month of January and every time the employee receives a citation or other entry on his or her driving record which impacts his or her ability to operate a motor vehicle while on duty, including but not limited to the revocation or temporary suspension of the employee’s drivers’ license. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 274 of 309 Page 27 of 29 Section V. Payroll Date and Direct Deposit: Employees are paid monthly on the first City Hall working day of the month unless an earlier date is designated by the City for a particular month. The City will notify the Association prior to implementing the bi-weekly payroll calendar as part of the implementation of the new ERP. All unit employees shall enroll in direct deposit within sixty (60) days of employment. Employees shall maintain direct deposit. Employees needing an exception to direct deposit shall submit a request stating the reasons for the exception in writing to the Human Resources Director for consideration. The decision of the Human Resources Director shall be final. ARTICLE IX. PEACEFUL PERFORMANCE During the life of this Agreement, no work stoppages, strikes, slowdowns, or picketing shall be caused or sanctioned by the UNION, and no lockouts shall be made by the City of Gilroy. In the event that any employees covered by this Agreement, individually or collectively, violate the provisions of this article and the UNION fails to exercise good faith in halting the work interruption, the UNION and the employees involved shall be deemed in violation of this article and the CITY shall be entitled to seek all remedies available to it under applicable law. ARTICLE X. REINSTATEMENT The City shall have the option, upon reinstating employees who resigned in good standing, to reinstate accrued sick leave and reinstate seniority for salary step and leave accrual purposes. This Article can also apply when an employee is laid off and within two years of the employee’s layoff date is hired back to a new job classification. ARTICLE XI. REOPENERS 1. Upon request by the City, the City and Union will reopen the MOU to negotiate implementation of a bi-weekly payroll system and to address other changes related to payroll system implementation. The parties’ intention is to develop a bi-weekly pay calendar that will result in employees receiving a portion of their pay earlier in the month. 2. In the event the Employer contribution required by CalPERS for any year cover by the MOU exceeds the estimates in CalPERS’ 2016 actuarial valuation, the City and Union will reopen the contract to negotiate changes to address the rate increases. 3. Upon request by the City, the City and Union will reopen negotiations on revised Human Resources Rules and Regulations to address any substantive changes to the Human resources Rules and Regulations. 4. Upon request by the City, the City and Union will reopen negotiations on revised Drug and Alcohol Testing Policy to address any changes within the scope of representation. 5. The City will continue the practice of including the Union in the review cycle for the issuance of new procedures or for making changes to existing procedures that impact terms and conditions of employment. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 275 of 309 Page 28 of 29 6. Upon request by the City, the City and Union will reopen negotiations on a revised Employer-Employee Relations Resolution to address any substantive changes to the Employer-Employee Relations Resolution. ARTICLE XII. FULL UNDERSTANDING This Memorandum of Understanding is the result of the parties’ good faith meeting and conferring pursuant to the MMBA and sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. Where this MOU conflicts with the Human Resources Rules and Regulations, the terms of this MOU shall control. It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its rights to negotiate and agrees that the other party shall not be required to negotiate with respect to any matte r covered herein during the term of this Memorandum of Understanding. Nothing in this paragraph shall preclude the parties from jointly agreeing to meet and confer on any issue(s) within the scope of representation during the term of this agreement. ARTICLE XIII. SAVINGS PROVISION If any provisions of this Memorandum of Understanding are held to be contrary to law by a court of competent jurisdiction or invalidated by state or federal law, such provisions will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. Should the State of California adopt legislation forbidding or economically penalizing the CITY for granting any compensation increases called for in this agreement, the compensation increase shall be suspended. The CITY and Association shall meet and confer regarding any suspended compensation increases. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 276 of 309 Page 29 of 29 ARTICLE XIV. TERM This Memorandum of Understanding represents the entire Agreement between the CITY and UNION on subjects contained herein and shall become in full force and effect on July 1, 2026 unless otherwise noted and shall continue in full force and effect until Midnight June 30, 2029. The UNION shall provide the CITY with its proposals for the period beginning July 1, 2029 no later than February 1, 2029. The parties agree to begin the meet and confer process by February 28, 2029. For the City of Gilroy: For Gilroy, AFSCME, Local 101 Signature/Date Signature/Date Matt Morley, City Administrator Carol McEwan, AFSCME Business Agent Charles Sakai, Labor Negotiations Legal Counsel Jon Shouse, President LeeAnn McPhillips, Special Assistant - Human Resources & /Risk Management John Sousa, Vice-President John Doughty, Public Works Director Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB 7/22/2026 7/22/2026 7/22/2026 Page 277 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) Exhibit A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,132.67 10,639.33 11,171.33 11,729.92 12,316.33 12,932.08 13,578.67 14,257.58 Communications 121,592 127,672 134,056 140,759 147,796 155,185 162,944 171,091 Supervisor Supervising Code 8403 9,455.33 9,928.00 10,424.33 10,945.75 11,493.08 12,067.58 12,671.00 13,304.58 Enforcement Officer 113,464 119,136 125,092 131,349 137,917 144,811 152,052 159,655 Operations Services 8402 8,304.33 8,719.33 9,155.33 9,613.17 10,093.75 10,598.42 11,128.33 11,684.75 Supervisor 99,652 104,632 109,864 115,358 121,125 127,181 133,540 140,217 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 7,980.17 8,379.08 8,798.17 9,238.00 9,699.92 10,185.00 10,694.25 11,229.00 95,762 100,549 105,578 110,856 116,399 122,220 128,331 134,748 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 278 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) Exhibit A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,507.58 11,033.00 11,584.67 12,163.92 12,772.00 13,410.58 14,081.08 14,785.08 Communications 126,091 132,396 139,016 145,967 153,264 160,927 168,973 177,421 Supervisor Supervising Code 8403 9,805.17 10,295.33 10,810.00 11,350.75 11,918.33 12,514.08 13,139.83 13,796.83 Enforcement Officer 117,662 123,544 129,720 136,209 143,020 150,169 157,678 165,562 Operations Services 8402 8,611.58 9,041.92 9,494.08 9,968.83 10,467.25 10,990.58 11,540.08 12,117.08 Supervisor 103,339 108,503 113,929 119,626 125,607 131,887 138,481 145,405 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 8,275.42 8,689.08 9,123.67 9,579.83 10,058.83 10,561.83 11,089.92 11,644.50 99,305 104,269 109,484 114,958 120,706 126,742 133,079 139,734 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 279 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0% Cost of Living Increase) Exhibit A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,822.83 11,364.00 11,932.17 12,528.83 13,155.17 13,812.92 14,503.50 15,228.67 Communications 129,874 136,368 143,186 150,346 157,862 165,755 174,042 182,744 Supervisor Supervising Code 8403 10,099.33 10,604.17 11,134.33 11,691.25 12,275.92 12,889.50 13,534.00 14,210.75 Enforcement Officer 121,192 127,250 133,612 140,295 147,311 154,674 162,408 170,529 Operations Services 8402 8,869.92 9,313.17 9,778.92 10,267.92 10,781.25 11,320.33 11,886.25 12,480.58 Supervisor 106,439 111,758 117,347 123,215 129,375 135,844 142,635 149,767 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 8,523.67 8,949.75 9,397.42 9,867.25 10,360.58 10,878.67 11,422.58 11,993.83 102,284 107,397 112,769 118,407 124,327 130,544 137,071 143,926 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 280 of 309 AFSCME, LOCAL 101, SUPERVISORY UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 1 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 Supervisory Unit MOU Parks & Landscape Section – Public Works Streets/Trees/Stormwater & Drainage Section – Public Works If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Class A License $20.00 Class A License $20.00 Class A License $20.00 Class A License $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 Playground Inspection Certification $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 CWEA Collection System Maintenance Grade 3 or 4 (ONLY APPLIABLE TO EMPLOYEES HIRED PRIOR TO 7/1/2026 WITH NO LAPSE-SEE MOU) 3 = $250.00 4 = $300.00 AWWA Backflow Prevention Tester $20.00 Pesticide Advisor Certification $50.00 AWWA Backflow Prevention Tester $20.00 Pesticide Advisor Certification $50.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 ISA Certified Arborist $250.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 ISA Certified Arborist $250.00 State of CA Water Treatment Operator (any level) $20.00 State of CA Water Treatment Operator (any level) $20.00 AWWA Cross Connection Specialist $20.00 AWWA Cross Connection Specialist $20.00 Qualified Applicator’s Certificate $20.00 Qualified Applicator’s Certificate $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 281 of 309 AFSCME, LOCAL 101, SUPERVISORY UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 2 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 Supervisory Unit MOU Parks & Landscape Section – Public Works Streets/Trees/Stormwater & Drainage Section – Public Works If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Playground Inspection Certification $20.00 Playground Inspection Certification $20.00 Pesticide Advisor Certification $20.00 Pesticide Advisor Certification $20.00 Water – Utilities Wastewater - Utilities If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Class A License $20.00 Class A License $20.00 Class A License $20.00 Class A License $20.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Distribution Operator Grade 3, 4, or 5 3 = $250.00 4 = $300.00 5 = $400.00 CWEA Collection System Maintenance Grade I, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 CWEA Collection System Maintenance Grade 3 or 4 3 = $250.00 4 = $300.00 AWWA Backflow Prevention Tester $20.00 AWWA Backflow Prevention Tester $20.00 AWWA Backflow Prevention Tester $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 282 of 309 AFSCME, LOCAL 101, SUPERVISORY UNIT CERTIFICATE PAY CHART – EXHIBIT B JULY 1, 2026 – JUNE 30, 2029 – MOU EXHIBIT Page 3 of 3 The amounts noted for each certification are not additive and employee shall receive amount tied to highest level attained for each type of certification. Exhibit B to AFSCME, Local 101 Supervisory Unit MOU Water – Utilities Wastewater - Utilities If Obtained Prior to 7/1/2017 7/1/17 and going forward If Obtained Prior to 7/1/2017 7/1/2017 and going forward Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount Certificate Monthly $ Amount State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Treatment Operator 2, 3, or 4 2 = $40.00 3 = $60.00 4 = $80.00 State of CA Water Distribution Operator Grade 1, 2, 3, or 4 1 = $20.00 2 = $75.00 3 = $125.00 4 = $150.00 State of CA Water Treatment Operator (any level) $20.00 AWWA Cross Connection Specialist $20.00 State of CA Water Treatment Operator (any level) $20.00 AWWA Cross Connection Specialist $20.00 AWWA Cross Connection Specialist $20.00 Qualified Applicator’s Certificate $20.00 Qualified Applicator’s Certificate $20.00 Playground Inspection Certification $20.00 Playground Inspection Certification $20.00 Pesticide Advisor Certification $20.00 Pesticide Advisor Certification $20.00 Docusign Envelope ID: E2503950-1E45-8200-80C9-E034601CB4EB Page 283 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING THE JULY 1, 2026, JULY 1, 2027, AND JULY 1, 2028 SALARY SCHEDULES FOR EMPLOYEES REPRESENTED BY THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES (AFSCME, LOCAL 101, GILROY CHAPTER), GENERAL UNIT WHEREAS, the City Council does establish salaries for city officers and employees by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS: 1. The salaries effective July 1, 2026 for AFSCME, Local 101, General Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three point eight percent (3.8%) cost of living increase. 2. The salaries effective July 1, 2027 for AFSCME Local 101, General Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three point seven percent (3.7%) cost of living increase. 3. The salaries effective July 1, 2028 for AFSCME, Local 101, General Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three percent (3%) cost of living increase. PASSED AND ADOPTED this 27th day of July, 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Page 284 of 309 Resolution No. 2026-XX AFSCME, Local 101, General Unit Employee Salary Schedules July 1, 2026 – June 30, 2029 City Council Regular Meeting | July 27, 2026 Page 2 of 2 APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 285 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,035.58 11,587.50 12,166.75 12,775.17 13,413.75 14,084.58 14,788.75 15,528.17 132,427 139,050 146,001 153,302 160,965 169,015 177,465 186,338 Assistant Engineer 8536 10,032.33 10,534.08 11,060.67 11,613.75 12,194.33 12,804.17 13,444.33 14,116.50 Environmental Engineer 8538 120,388 126,409 132,728 139,365 146,332 153,650 161,332 169,398 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,082.25 9,536.33 10,013.08 10,513.75 11,039.42 11,591.42 12,171.00 12,779.50 Planner II 8513 108,987 114,436 120,157 126,165 132,473 139,097 146,052 153,354 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 8,727.83 9,164.17 9,622.42 10,103.33 10,608.67 11,139.00 11,696.00 12,280.75 Communicator 104,734 109,970 115,469 121,240 127,304 133,668 140,352 147,369 Building Inspector II 8521 8,641.42 9,073.50 9,527.17 10,003.58 10,503.67 11,028.83 11,580.25 12,159.33 103,697 108,882 114,326 120,043 126,044 132,346 138,963 145,912 Public Safety 8634 8,471.08 8,894.58 9,339.42 9,806.33 10,296.75 10,811.58 11,352.08 11,919.67 Communicator 101,653 106,735 112,073 117,676 123,561 129,739 136,225 143,036 Engineering 8532 8,304.33 8,719.33 9,155.33 9,613.17 10,093.75 10,598.58 11,128.50 11,684.92 Technician/Inspector III 99,652 104,632 109,864 115,358 121,125 127,183 133,542 140,219 Accountant 8552 8,222.00 8,633.08 9,064.75 9,517.92 9,993.92 10,493.58 11,018.25 11,569.17 Building Inspector I 8520 98,664 103,597 108,777 114,215 119,927 125,923 132,219 138,830 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 7,517.58 7,893.67 8,288.33 8,702.67 9,137.83 9,594.75 10,074.50 10,578.25 90,211 94,724 99,460 104,432 109,654 115,137 120,894 126,939 Accounting Technician II 8554 7,296.58 7,661.50 8,044.50 8,446.75 8,869.08 9,312.50 9,778.17 10,267.00 Senior Facilities Maintenance 8507 87,559 91,938 96,534 101,361 106,429 111,750 117,338 123,204 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,152.83 7,510.42 7,885.92 8,280.33 8,694.25 9,129.08 9,585.58 10,064.92 Technician/Inspector II 85,834 90,125 94,631 99,364 104,331 109,549 115,027 120,779 Information Technology 8561 6,942.58 7,289.50 7,654.00 8,036.75 8,438.58 8,860.50 9,303.58 9,768.75 Technician II 83,311 87,474 91,848 96,441 101,263 106,326 111,643 117,225 Job Class Number Rev 8/24 Page 1 of 3 Page 286 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 6,805.75 7,145.92 7,503.25 7,878.50 8,272.42 8,686.00 9,120.33 9,576.33 Sr. Maintenance Worker -8504 81,669 85,751 90,039 94,542 99,269 104,232 109,444 114,916 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 6,671.58 7,005.00 7,355.33 7,723.25 8,109.25 8,514.83 8,940.50 9,387.50 80,059 84,060 88,264 92,679 97,311 102,178 107,286 112,650 Accounting Technician I 8553 6,605.50 6,935.83 7,282.58 7,646.67 8,029.00 8,430.50 8,852.00 9,294.58 Facilities Maintenance 8505 79,266 83,230 87,391 91,760 96,348 101,166 106,224 111,535 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,475.42 6,799.17 7,139.00 7,496.00 7,870.83 8,264.33 8,677.50 9,111.42 Technician/Inspector I 77,705 81,590 85,668 89,952 94,450 99,172 104,130 109,337 Water Operator 8544 Community Coordinator 8547 6,411.17 6,731.75 7,068.42 7,421.75 7,792.83 8,182.58 8,591.58 9,021.25 Community Engagement 8549 76,934 80,781 84,821 89,061 93,514 98,191 103,099 108,255 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,284.83 6,599.17 6,929.08 7,275.58 7,639.42 8,021.33 8,422.42 8,843.50 Information Technology 8560 75,418 79,190 83,149 87,307 91,673 96,256 101,069 106,122 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,039.67 6,341.67 6,658.75 6,991.58 7,341.17 7,708.25 8,093.75 8,498.33 72,476 76,100 79,905 83,899 88,094 92,499 97,125 101,980 Accounting Assistant II 8605 5,979.92 6,278.83 6,592.83 6,922.42 7,268.58 7,632.00 8,013.50 8,414.17 71,759 75,346 79,114 83,069 87,223 91,584 96,162 100,970 PW Maintenance Worker II 8564 5,861.92 6,155.17 6,462.92 6,785.92 7,125.33 7,481.67 7,855.75 8,248.58 Utilities Maintenance Wrkr II 8565 70,343 73,862 77,555 81,431 85,504 89,780 94,269 98,983 Senior Custodian 8509 5,804.08 6,094.25 6,398.83 6,718.92 7,054.83 7,407.67 7,778.08 8,167.00 69,649 73,131 76,786 80,627 84,658 88,892 93,337 98,004 Rev 8/24 Page 2 of 3 Page 287 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) EXHIBIT A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 5,689.75 5,974.25 6,272.75 6,586.58 6,915.75 7,261.50 7,624.67 8,005.83 68,277 71,691 75,273 79,039 82,989 87,138 91,496 96,070 Community Services Officer 8632 5,633.33 5,915.08 6,210.75 6,521.25 6,847.33 7,189.58 7,549.08 7,926.50 67,600 70,981 74,529 78,255 82,168 86,275 90,589 95,118 Accounting Assistant I 8604 5,413.50 5,684.17 5,968.42 6,266.67 6,580.25 6,909.08 7,254.58 7,617.25 64,962 68,210 71,621 75,200 78,963 82,909 87,055 91,407 PW Maintenance Worker I 8562 5,306.83 5,572.25 5,850.92 6,143.33 6,450.42 6,772.83 7,111.50 7,467.08 Utilities Maintenance Worker I 8563 63,682 66,867 70,211 73,720 77,405 81,274 85,338 89,605 Recreation Specialist 8548 Office Assistant II 8601 5,150.83 5,408.42 5,678.75 5,962.67 6,260.67 6,573.83 6,902.50 7,247.67 Police Records Technician I 8608 61,810 64,901 68,145 71,552 75,128 78,886 82,830 86,972 Custodian 8506 4,999.25 5,249.25 5,511.75 5,787.17 6,076.75 6,380.42 6,699.42 7,034.42 59,991 62,991 66,141 69,446 72,921 76,565 80,393 84,413 Office Assistant I 8600 4,662.92 4,896.08 5,140.83 5,397.92 5,667.92 5,951.17 6,248.75 6,561.17 55,955 58,753 61,690 64,775 68,015 71,414 74,985 78,734 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Page 288 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,443.92 12,016.25 12,616.92 13,247.83 13,910.08 14,605.75 15,335.92 16,102.75 137,327 144,195 151,403 158,974 166,921 175,269 184,031 193,233 Assistant Engineer 8536 10,403.50 10,923.83 11,469.92 12,043.50 12,645.50 13,277.92 13,941.75 14,638.83 Environmental Engineer 8538 124,842 131,086 137,639 144,522 151,746 159,335 167,301 175,666 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,418.33 9,889.17 10,383.58 10,902.75 11,447.92 12,020.33 12,621.33 13,252.33 Planner II 8513 113,020 118,670 124,603 130,833 137,375 144,244 151,456 159,028 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 9,050.75 9,503.25 9,978.42 10,477.17 11,001.17 11,551.17 12,128.75 12,735.17 Communicator 108,609 114,039 119,741 125,726 132,014 138,614 145,545 152,822 Building Inspector II 8521 8,961.17 9,409.25 9,879.67 10,373.75 10,892.33 11,436.92 12,008.75 12,609.25 107,534 112,911 118,556 124,485 130,708 137,243 144,105 151,311 Public Safety 8634 8,784.50 9,223.67 9,685.00 10,169.17 10,677.75 11,211.58 11,772.08 12,360.67 Communicator 105,414 110,684 116,220 122,030 128,133 134,539 141,265 148,328 Engineering 8532 8,611.58 9,041.92 9,494.08 9,968.83 10,467.25 10,990.75 11,540.25 12,117.25 Technician/Inspector III 103,339 108,503 113,929 119,626 125,607 131,889 138,483 145,407 Accountant 8552 8,526.25 8,952.50 9,400.17 9,870.08 10,363.67 10,881.83 11,425.92 11,997.25 Building Inspector I 8520 102,315 107,430 112,802 118,441 124,364 130,582 137,111 143,967 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 7,795.75 8,185.75 8,595.00 9,024.67 9,475.92 9,949.75 10,447.25 10,969.67 93,549 98,229 103,140 108,296 113,711 119,397 125,367 131,636 Accounting Technician II 8554 7,566.58 7,945.00 8,342.17 8,759.25 9,197.25 9,657.08 10,140.00 10,646.92 Senior Facilities Maintenance 8507 90,799 95,340 100,106 105,111 110,367 115,885 121,680 127,763 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,417.50 7,788.33 8,177.67 8,586.67 9,015.92 9,466.83 9,940.25 10,437.33 Technician/Inspector II 89,010 93,460 98,132 103,040 108,191 113,602 119,283 125,248 Information Technology 8561 7,199.50 7,559.25 7,937.17 8,334.08 8,750.83 9,188.33 9,647.83 10,130.17 Technician II 86,394 90,711 95,246 100,009 105,010 110,260 115,774 121,562 Job Class Number Rev 8/24 Page 1 of 3 Page 289 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 7,057.58 7,410.33 7,780.83 8,170.00 8,578.50 9,007.42 9,457.75 9,930.67 Sr. Maintenance Worker -8504 84,691 88,924 93,370 98,040 102,942 108,089 113,493 119,168 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 6,918.42 7,264.17 7,627.50 8,009.00 8,409.33 8,829.92 9,271.33 9,734.83 83,021 87,170 91,530 96,108 100,912 105,959 111,256 116,818 Accounting Technician I 8553 6,849.92 7,192.50 7,552.00 7,929.58 8,326.08 8,742.42 9,179.50 9,638.50 Facilities Maintenance 8505 82,199 86,310 90,624 95,155 99,913 104,909 110,154 115,662 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,715.00 7,050.75 7,403.17 7,773.33 8,162.08 8,570.08 8,998.58 9,448.50 Technician/Inspector I 80,580 84,609 88,838 93,280 97,945 102,841 107,983 113,382 Water Operator 8544 Community Coordinator 8547 6,648.42 6,980.83 7,329.92 7,696.33 8,081.17 8,485.33 8,909.50 9,355.00 Community Engagement 8549 79,781 83,770 87,959 92,356 96,974 101,824 106,914 112,260 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,517.33 6,843.33 7,185.50 7,544.75 7,922.08 8,318.08 8,734.08 9,170.75 Information Technology 8560 78,208 82,120 86,226 90,537 95,065 99,817 104,809 110,049 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,263.17 6,576.33 6,905.08 7,250.25 7,612.75 7,993.42 8,393.25 8,812.75 75,158 78,916 82,861 87,003 91,353 95,921 100,719 105,753 Accounting Assistant II 8605 6,201.17 6,511.17 6,836.75 7,178.58 7,537.50 7,914.42 8,310.00 8,725.50 74,414 78,134 82,041 86,143 90,450 94,973 99,720 104,706 PW Maintenance Worker II 8564 6,078.83 6,382.92 6,702.08 7,037.00 7,389.00 7,758.50 8,146.42 8,553.75 Utilities Maintenance Wrkr II 8565 72,946 76,595 80,425 84,444 88,668 93,102 97,757 102,645 Senior Custodian 8509 6,018.83 6,319.75 6,635.58 6,967.50 7,315.83 7,681.75 8,065.83 8,469.17 72,226 75,837 79,627 83,610 87,790 92,181 96,790 101,630 Rev 8/24 Page 2 of 3 Page 290 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) EXHIBIT A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 5,900.25 6,195.33 6,504.83 6,830.25 7,171.67 7,530.17 7,906.75 8,302.08 70,803 74,344 78,058 81,963 86,060 90,362 94,881 99,625 Community Services Officer 8632 5,841.75 6,133.92 6,440.58 6,762.50 7,100.67 7,455.58 7,828.42 8,219.75 70,101 73,607 77,287 81,150 85,208 89,467 93,941 98,637 Accounting Assistant I 8604 5,613.83 5,894.50 6,189.25 6,498.50 6,823.75 7,164.75 7,523.00 7,899.08 67,366 70,734 74,271 77,982 81,885 85,977 90,276 94,789 PW Maintenance Worker I 8562 5,503.17 5,778.42 6,067.42 6,370.67 6,689.08 7,023.42 7,374.67 7,743.33 Utilities Maintenance Worker I 8563 66,038 69,341 72,809 76,448 80,269 84,281 88,496 92,920 Recreation Specialist 8548 Office Assistant II 8601 5,341.42 5,608.50 5,888.83 6,183.25 6,492.33 6,817.08 7,157.92 7,515.83 Police Records Technician I 8608 64,097 67,302 70,666 74,199 77,908 81,805 85,895 90,190 Custodian 8506 5,184.25 5,443.50 5,715.67 6,001.33 6,301.58 6,616.50 6,947.33 7,294.67 62,211 65,322 68,588 72,016 75,619 79,398 83,368 87,536 Office Assistant I 8600 4,835.42 5,077.25 5,331.08 5,597.67 5,877.67 6,171.33 6,479.92 6,803.92 58,025 60,927 63,973 67,172 70,532 74,056 77,759 81,647 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Page 291 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Associate Engineer 8537 11,787.25 12,376.75 12,995.42 13,645.25 14,327.42 15,043.92 15,796.00 16,585.83 141,447 148,521 155,945 163,743 171,929 180,527 189,552 199,030 Assistant Engineer 8536 10,715.58 11,251.58 11,814.00 12,404.83 13,024.83 13,676.25 14,360.00 15,078.00 Environmental Engineer 8538 128,587 135,019 141,768 148,858 156,298 164,115 172,320 180,936 Senior Hazardous Materials 8522 Inspector Junior Engineer 8533 9,700.92 10,185.83 10,695.08 11,229.83 11,791.33 12,380.92 13,000.00 13,649.92 Planner II 8513 116,411 122,230 128,341 134,758 141,496 148,571 156,000 163,799 Hazardous Materials 8529 Inspector II Senior Public Safety 8635 9,322.25 9,788.33 10,277.75 10,791.50 11,331.17 11,897.67 12,492.58 13,117.25 Communicator 111,867 117,460 123,333 129,498 135,974 142,772 149,911 157,407 Building Inspector II 8521 9,230.00 9,691.50 10,176.08 10,685.00 11,219.08 11,780.00 12,369.00 12,987.50 110,760 116,298 122,113 128,220 134,629 141,360 148,428 155,850 Public Safety 8634 9,048.00 9,500.42 9,975.58 10,474.25 10,998.08 11,547.92 12,125.25 12,731.50 Communicator 108,576 114,005 119,707 125,691 131,977 138,575 145,503 152,778 Engineering 8532 8,869.92 9,313.17 9,778.92 10,267.92 10,781.25 11,320.50 11,886.42 12,480.75 Technician/Inspector III 106,439 111,758 117,347 123,215 129,375 135,846 142,637 149,769 Accountant 8552 8,782.00 9,221.08 9,682.17 10,166.17 10,674.58 11,208.25 11,768.67 12,357.17 Building Inspector I 8520 105,384 110,653 116,186 121,994 128,095 134,499 141,224 148,286 Code Enforcement 8526 Officer Hazardous Materials 8517 Inspector I Housing & Community 8524 Services Coordinator Planner I 8512 Senior Equipment Mechanic 8510 8,029.58 8,431.33 8,852.83 9,295.42 9,760.17 10,248.25 10,760.67 11,298.75 96,355 101,176 106,234 111,545 117,122 122,979 129,128 135,585 Accounting Technician II 8554 7,793.58 8,183.33 8,592.42 9,022.00 9,473.17 9,946.83 10,444.17 10,966.33 Senior Facilities Maintenance 8507 93,523 98,200 103,109 108,264 113,678 119,362 125,330 131,596 Specialist Public Safety 8633 Communicator Trainee Engineering 8531 7,640.00 8,022.00 8,423.00 8,844.25 9,286.42 9,750.83 10,238.42 10,750.42 Technician/Inspector II 91,680 96,264 101,076 106,131 111,437 117,010 122,861 129,005 Information Technology 8561 7,415.50 7,786.00 8,175.25 8,584.08 9,013.33 9,464.00 9,937.25 10,434.08 Technician II 88,986 93,432 98,103 103,009 108,160 113,568 119,247 125,209 Job Class Number Rev 8/24 Page 1 of 3 Page 292 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Equipment Mechanic 8508 7,269.33 7,632.67 8,014.25 8,415.08 8,835.83 9,277.67 9,741.50 10,228.58 Sr. Maintenance Worker -8504 87,232 91,592 96,171 100,981 106,030 111,332 116,898 122,743 Parks & Landscape Sr. Maintenance Worker -8566 STSWD Sr. Maintenance Worker -8567 Wastewater Sr. Maintenance Worker -8542 Water HCD Technician II 8619 7,126.00 7,482.08 7,856.33 8,249.25 8,661.58 9,094.83 9,549.50 10,026.92 85,512 89,785 94,276 98,991 103,939 109,138 114,594 120,323 Accounting Technician I 8553 7,055.42 7,408.25 7,778.58 8,167.50 8,575.83 9,004.67 9,454.92 9,927.67 Facilities Maintenance 8505 84,665 88,899 93,343 98,010 102,910 108,056 113,459 119,132 Specialist Fire Administration 8516 Technician Management Assistant 8519 Permit Technician 8523 Planning Technician 8514 Engineering 8530 6,916.42 7,262.25 7,625.25 8,006.50 8,406.92 8,827.17 9,268.50 9,731.92 Technician/Inspector I 82,997 87,147 91,503 96,078 100,883 105,926 111,222 116,783 Water Operator 8544 Community Coordinator 8547 6,847.83 7,190.25 7,549.83 7,927.25 8,323.58 8,739.92 9,176.75 9,635.67 Community Engagement 8549 82,174 86,283 90,598 95,127 99,883 104,879 110,121 115,628 Coordinator Recreation Coordinator 8546 Deputy City Clerk 8555 6,712.83 7,048.67 7,401.08 7,771.08 8,159.75 8,567.67 8,996.08 9,445.83 Information Technology 8560 80,554 84,584 88,813 93,253 97,917 102,812 107,953 113,350 Technician I Property & Evidence 8570 Technician Senior Police Records 8610 Technician HCD Technician I 8618 6,451.08 6,773.58 7,112.25 7,467.75 7,841.17 8,233.25 8,645.08 9,077.17 77,413 81,283 85,347 89,613 94,094 98,799 103,741 108,926 Accounting Assistant II 8605 6,387.17 6,706.50 7,041.83 7,393.92 7,763.67 8,151.83 8,559.33 8,987.25 76,646 80,478 84,502 88,727 93,164 97,822 102,712 107,847 PW Maintenance Worker II 8564 6,261.17 6,574.42 6,903.17 7,248.08 7,610.67 7,991.25 8,390.83 8,810.33 Utilities Maintenance Wrkr II 8565 75,134 78,893 82,838 86,977 91,328 95,895 100,690 105,724 Senior Custodian 8509 6,199.42 6,509.33 6,834.67 7,176.50 7,535.33 7,912.17 8,307.83 8,723.25 74,393 78,112 82,016 86,118 90,424 94,946 99,694 104,679 Rev 8/24 Page 2 of 3 Page 293 of 309 AFSCME GENERAL UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0 Cost of Living Increase) EXHIBIT A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Job Class Number Police Records Technician II 8609 6,077.25 6,381.17 6,700.00 7,035.17 7,386.83 7,756.08 8,143.92 8,551.17 72,927 76,574 80,400 84,422 88,642 93,073 97,727 102,614 Community Services Officer 8632 6,017.00 6,317.92 6,633.83 6,965.42 7,313.67 7,679.25 8,063.25 8,466.33 72,204 75,815 79,606 83,585 87,764 92,151 96,759 101,596 Accounting Assistant I 8604 5,782.25 6,071.33 6,374.92 6,693.42 7,028.50 7,379.67 7,748.67 8,136.08 69,387 72,856 76,499 80,321 84,342 88,556 92,984 97,633 PW Maintenance Worker I 8562 5,668.25 5,951.75 6,249.42 6,561.75 6,889.75 7,234.08 7,595.92 7,975.67 Utilities Maintenance Worker I 8563 68,019 71,421 74,993 78,741 82,677 86,809 91,151 95,708 Recreation Specialist 8548 Office Assistant II 8601 5,501.67 5,776.75 6,065.50 6,368.75 6,687.08 7,021.58 7,372.67 7,741.33 Police Records Technician I 8608 66,020 69,321 72,786 76,425 80,245 84,259 88,472 92,896 Custodian 8506 5,339.75 5,606.83 5,887.17 6,181.33 6,490.67 6,815.00 7,155.75 7,513.50 64,077 67,282 70,646 74,176 77,888 81,780 85,869 90,162 Office Assistant I 8600 4,980.50 5,229.58 5,491.00 5,765.58 6,054.00 6,356.50 6,674.33 7,008.00 59,766 62,755 65,892 69,187 72,648 76,278 80,092 84,096 *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME General Unit employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Rev 8/24 Page 3 of 3 Page 294 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING THE JULY 1, 2026, JULY 1, 2027, AND JULY 1, 2028 SALARY SCHEDULES FOR EMPLOYEES REPRESENTED BY THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES (AFSCME, LOCAL 101, GILROY CHAPTER), SUPERVISORY UNIT WHEREAS, the City Council does establish salaries for city officers and employees by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS: 1. The salaries effective July 1, 2026 for AFSCME, Local 101, Supervisory Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three point eight percent (3.8%) cost of living increase. 2. The salaries effective July 1, 2027 for AFSCME Local 101, Supervisory Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three point seven percent (3.7%) cost of living increase. 3. The salaries effective July 1, 2028 for AFSCME, Local 101, Supervisory Unit employees as set forth in the attached salary schedule consisting of three (3) pages is hereby approved and established adding a three percent (3%) cost of living increase. PASSED AND ADOPTED this 27th day of July, 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Page 295 of 309 Resolution No. 2026-XX AFSCME, Local 101, Supervisory Unit Employee Salary Schedules July 1, 2026 – June 30, 2029 City Council Regular Meeting | July 27, 2026 Page 2 of 2 APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 296 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2026 (3.8% Cost of Living Increase) Exhibit A-1 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,132.67 10,639.33 11,171.33 11,729.92 12,316.33 12,932.08 13,578.67 14,257.58 Communications 121,592 127,672 134,056 140,759 147,796 155,185 162,944 171,091 Supervisor Supervising Code 8403 9,455.33 9,928.00 10,424.33 10,945.75 11,493.08 12,067.58 12,671.00 13,304.58 Enforcement Officer 113,464 119,136 125,092 131,349 137,917 144,811 152,052 159,655 Operations Services 8402 8,304.33 8,719.33 9,155.33 9,613.17 10,093.75 10,598.42 11,128.33 11,684.75 Supervisor 99,652 104,632 109,864 115,358 121,125 127,181 133,540 140,217 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 7,980.17 8,379.08 8,798.17 9,238.00 9,699.92 10,185.00 10,694.25 11,229.00 95,762 100,549 105,578 110,856 116,399 122,220 128,331 134,748 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Page 297 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2027 (3.7% Cost of Living Increase) Exhibit A-2 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,507.58 11,033.00 11,584.67 12,163.92 12,772.00 13,410.58 14,081.08 14,785.08 Communications 126,091 132,396 139,016 145,967 153,264 160,927 168,973 177,421 Supervisor Supervising Code 8403 9,805.17 10,295.33 10,810.00 11,350.75 11,918.33 12,514.08 13,139.83 13,796.83 Enforcement Officer 117,662 123,544 129,720 136,209 143,020 150,169 157,678 165,562 Operations Services 8402 8,611.58 9,041.92 9,494.08 9,968.83 10,467.25 10,990.58 11,540.08 12,117.08 Supervisor 103,339 108,503 113,929 119,626 125,607 131,887 138,481 145,405 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 8,275.42 8,689.08 9,123.67 9,579.83 10,058.83 10,561.83 11,089.92 11,644.50 99,305 104,269 109,484 114,958 120,706 126,742 133,079 139,734 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Page 298 of 309 AFSCME SUPERVISORY UNIT SALARY SCHEDULE Effective July 1, 2028 (3.0% Cost of Living Increase) Exhibit A-3 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Public Safety 8410 10,822.83 11,364.00 11,932.17 12,528.83 13,155.17 13,812.92 14,503.50 15,228.67 Communications 129,874 136,368 143,186 150,346 157,862 165,755 174,042 182,744 Supervisor Supervising Code 8403 10,099.33 10,604.17 11,134.33 11,691.25 12,275.92 12,889.50 13,534.00 14,210.75 Enforcement Officer 121,192 127,250 133,612 140,295 147,311 154,674 162,408 170,529 Operations Services 8402 8,869.92 9,313.17 9,778.92 10,267.92 10,781.25 11,320.33 11,886.25 12,480.58 Supervisor 106,439 111,758 117,347 123,215 129,375 135,844 142,635 149,767 Police Records Supervisor 8407 Supervising Accounting Technician 8408 Supervising Water Quality 8401 Specialist Recreation Supervisor 8406 8,523.67 8,949.75 9,397.42 9,867.25 10,360.58 10,878.67 11,422.58 11,993.83 102,284 107,397 112,769 118,407 124,327 130,544 137,071 143,926 rev. 7/26 Job Class Number *7/1/22 salary schedule adds Step F (merit step, one year at Step E, and completion of 5 years service requirement per MOU). *7/1/23 salary schedule adds Step G (merit step, one year at Step F, and completion of 10 years service requirement per MOU). *7/1/24 salary schedule adds Step H (merit step, one year at Step G, and completion of 15 years service requirement per MOU). Annual salary amounts are rounded to the dollar based on Excel formula and are not exact. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “classic members” of the CalPERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. AFSCME Supervisory employees that are designated by CalPERS and the City of Gilroy as “new members” of the CalPERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Page 299 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING THE JULY 1, 2026, JULY 1, 2027, AND JULY 1, 2028 SALARY SCHEDULES FOR FULL- TIME, UNREPRESENTED, CONFIDENTIAL, NON- EXEMPT EMPLOYEES WHEREAS, the City Council does establish salaries for city officers and employees by resolution; and WHEREAS, the Full-Time, Unrepresented, Confidential, Non-Exempt employees generally receive the same cost of living salary increase and benefits as the AFSCME, Local 101 General Unit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS: 1. The salaries effective July 1, 2026 for Full-Time, Unrepresented, Confidential, Non- Exempt employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three point eight percent (3.8%) cost of living increase. 2. The salaries effective July 1, 2027 for Full-Time, Unrepresented, Confidential, Non- Exempt employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three point seven percent (3.7%) cost of living increase. 3. The salaries effective July 1, 2028 for Full-Time, Unrepresented, Confidential, Non- Exempt employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three percent (3%) cost of living increase. 4. The employee benefits for Full-Time, Unrepresented, Confidential, Non-Exempt employees shall be the same as those provided for AFSCME, Local 101 employees except for personal leave hours which are set at 52 hours per fiscal year for Full-Time, Unrepresented, Confidential, Non-Exempt employees. PASSED AND ADOPTED this 27th day of July, 2026 by the following roll call vote: Page 300 of 309 Resolution No. 2026-XX FT Unrepresented Confidential NE Salary Schedules/Benefits July 1, 2026 – June 30, 2029 City Council Regular Meeting | July 27, 2026 Page 2 of 2 AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 301 of 309 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Human Resources & Risk 7620 7,296.58 7,661.50 8,044.50 8,446.75 8,869.08 9,312.50 9,778.08 10,266.92 ManagementTechnician II 87,559 91,938 96,534 101,361 106,429 111,750 117,337 123,203 Accounting Technician II -7554 Payroll Human Resources & Risk 7614 6,605.50 6,935.83 7,282.58 7,646.67 8,029.00 8,430.50 8,851.92 9,294.50 Management Technician I 79,266 83,230 87,391 91,760 96,348 101,166 106,223 111,534 Management Assistant 7615 Accounting Technician I -7553 Payroll Human Resources 7603 5,150.83 5,408.42 5,678.75 5,962.67 6,260.67 6,573.83 6,902.50 7,247.67 Assistant II 61,810 64,901 68,145 71,552 75,128 78,886 82,830 86,972 Human Resources 7602 4,662.92 4,896.08 5,140.83 5,397.92 5,667.92 5,951.17 6,248.75 6,561.17 Assistant I 55,955 58,753 61,690 64,775 68,015 71,414 74,985 78,734 rev. 7/26 FULL-TIME UNREPRESENTED CONFIDENTIAL NON-EXEMPT EMPLOYEES SALARY SCHEDULE EFFECTIVE: JULY 1, 2026 (3.8% Increase) Job Class Number TM-HCM *7/1/22 salary schedule added Step F (merit step - meets standards or better performance evaluation, one year at Step E, and completion of 5 years FT service requirement) *7/1/23 salary schedule added Step G (merit step - meets standards or better performance evaluation, one year at Step F, and completion of 10 years FT service requirement) *7/1/24 salary schedule added Step H (merit step - meets standards or better performance evaluation, one year at Step G, and completion of 15 years FT service requirement) Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “classic members” of the PERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “new members” of the PERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Annual salary amounts are rounded to the dollar based on Excel formula. Page 302 of 309 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Human Resources & Risk 7620 7,566.58 7,945.00 8,342.17 8,759.25 9,197.25 9,657.08 10,139.83 10,646.83 ManagementTechnician II 90,799 95,340 100,106 105,111 110,367 115,885 121,678 127,762 Accounting Technician II -7554 Payroll Human Resources & Risk 7614 6,849.92 7,192.50 7,552.00 7,929.58 8,326.08 8,742.42 9,179.42 9,638.42 Management Technician I 82,199 86,310 90,624 95,155 99,913 104,909 110,153 115,661 Management Assistant 7615 Accounting Technician I -7553 Payroll Human Resources 7603 5,341.42 5,608.50 5,888.83 6,183.25 6,492.33 6,817.08 7,157.92 7,515.83 Assistant II 64,097 67,302 70,666 74,199 77,908 81,805 85,895 90,190 Human Resources 7602 4,835.42 5,077.25 5,331.08 5,597.67 5,877.67 6,171.33 6,479.92 6,803.92 Assistant I 58,025 60,927 63,973 67,172 70,532 74,056 77,759 81,647 rev. 7/26 Job Class Number TM-HCM *7/1/22 salary schedule added Step F (merit step - meets standards or better performance evaluation, one year at Step E, and completion of 5 years FT service requirement) *7/1/23 salary schedule added Step G (merit step - meets standards or better performance evaluation, one year at Step F, and completion of 10 years FT service requirement) *7/1/24 salary schedule added Step H (merit step - meets standards or better performance evaluation, one year at Step G, and completion of 15 years FT service requirement) Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “classic members” of the PERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “new members” of the PERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Annual salary amounts are rounded to the dollar based on Excel formula. FULL-TIME UNREPRESENTED CONFIDENTIAL NON-EXEMPT EMPLOYEES SALARY SCHEDULE EFFECTIVE: JULY 1, 2027 (3.7% Increase) Page 303 of 309 Job Classification Title Step A Step B Step C Step D Step E Step F*Step G*Step H* Human Resources & Risk 7620 7,793.58 8,183.33 8,592.42 9,022.00 9,473.17 9,946.83 10,444.00 10,966.25 ManagementTechnician II 93,523 98,200 103,109 108,264 113,678 119,362 125,328 131,595 Accounting Technician II -7554 Payroll Human Resources & Risk 7614 7,055.42 7,408.25 7,778.58 8,167.50 8,575.83 9,004.67 9,454.83 9,927.58 Management Technician I 84,665 88,899 93,343 98,010 102,910 108,056 113,458 119,131 Management Assistant 7615 Accounting Technician I -7553 Payroll Human Resources 7603 5,501.67 5,776.75 6,065.50 6,368.75 6,687.08 7,021.58 7,372.67 7,741.33 Assistant II 66,020 69,321 72,786 76,425 80,245 84,259 88,472 92,896 Human Resources 7602 4,980.50 5,229.58 5,491.00 5,765.58 6,054.00 6,356.50 6,674.33 7,008.00 Assistant I 59,766 62,755 65,892 69,187 72,648 76,278 80,092 84,096 rev. 7/26 Job Class Number TM-HCM *7/1/22 salary schedule added Step F (merit step - meets standards or better performance evaluation, one year at Step E, and completion of 5 years FT service requirement) *7/1/23 salary schedule added Step G (merit step - meets standards or better performance evaluation, one year at Step F, and completion of 10 years FT service requirement) *7/1/24 salary schedule added Step H (merit step - meets standards or better performance evaluation, one year at Step G, and completion of 15 years FT service requirement) Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “classic members” of the PERS Miscellaneous group have an 8% deduction under IRC 414(h)(2) for the employee contribution to the CalPERS 2.5% @ 55 retirement plan. Unrepresented non-exempt confidential employees that are designated by CalPERS and the city of Gilroy as “new members” of the PERS Miscellaneous group shall pay 50% of the normal cost as established by CalPERS. The normal cost may vary from year to year and this amount shall be a pre-tax payroll deduction under IRC 414(h) (2) for the CalPERS 2% at 62 retirement plan. Annual salary amounts are rounded to the dollar based on Excel formula. FULL-TIME UNREPRESENTED CONFIDENTIAL NON-EXEMPT EMPLOYEES SALARY SCHEDULE EFFECTIVE: JULY 1, 2028 (3.0% Increase) Page 304 of 309 RESOLUTION NO. 2026-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING THE JULY 1, 2026, JULY 1, 2027, AND JULY 1, 2028 SALARY SCHEDULES FOR UNREPRESENTED, PART-TIME/TEMPORARY/ SEASONAL, HOURLY EMPLOYEES WHEREAS, the City Council does establish salaries for city officers and employees by resolution; and WHEREAS, the Unrepresented, Part-Time/Temporary/Seasonal, Hourly employees generally receive the same cost of living salary increase as the AFSCME, Local 101 General Unit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS: 1. The salaries effective July 1, 2026 for unrepresented, part-time/temporary/seasonal, hourly employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three point eight percent (3.8%) cost of living increase. 2. The salaries effective July 1, 2027 for unrepresented, part-time/temporary/seasonal, hourly employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three point seven percent (3.7%) cost of living increase. 3. The salaries effective July 1, 2028 for unrepresented, part-time/temporary/seasonal, hourly employees as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding a three percent (3%) cost of living increase. PASSED AND ADOPTED this 27th day of July, 2026 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Page 305 of 309 Resolution No. 2026-XX Unrepresented PT/Temporary/Seasonal Hourly Salary Schedules July 1, 2026 – June 30, 2029 City Council Regular Meeting | July 27, 2026 Page 2 of 2 APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Page 306 of 309 RECREATION POSITIONS: Class Code Classification Title 9902 Recreation Leader I $17.54 $17.54 9903 Recreation Leader II $18.32 $18.32 9916 Recreation Leader III $19.48 $22.94 9921 Recreation Specialist $26.03 $32.73 OTHER POSITIONS*: Class Code Classification Title 9803 Firefighter Trainee (Licensed Paramedic) 90% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 95% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 9928 Student Worker $17.54 $17.54 9930 Accounting Assistant I $28.11 $34.44 9932 Office Assistant I $24.21 $29.66 9933 Custodian $25.96 $31.79 9934 Maintenance Worker Assistant $22.41 $28.20 9939 Assistant Fleet Technician $27.56 $33.76 9943 Intern - Fellowship $34.04 $36.45 9946 Code Enforcement Technician $33.09 $40.51 9948 Property & Evidence Technician $32.63 $39.97 9951 Reserve Officer – Level II (flat rate) 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9952 Reserve Officer – Level III (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9953 Police Officer Trainee (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 9955 Intern – Master’s $20.30 $22.57 9956 Intern – Bachelor’s $17.54 $19.56 9957 Police Cadet (High School Student)$17.54 $18.36 9958 Police Cadet (Junior/Community College)$19.44 $21.60 9959 Police Cadet (4 Year College/University > 60 semester units)$21.60 $27.00 9980 Water Conservation Officer $40.33 $50.72 9983 Communication Assistant $25.82 $31.93 9950/B Reserve Officer – Level I (flat rate) Step A of Range SP32 from Police Salary Schedule = hourly rate Step A of Range SP32 from Police Salary Schedule = hourly rate 9985 Extra Help CalPERS Retired Annuitant TBD based on job duties TBD based on job duties 9986 Interim CalPERS Retired Annuitant TBD based on job duties TBD based on job duties Hourly Rate Range *Consistent with some of the ranges noted above, if the city hires a part-time/temporary/seasonal hourly employee to a job classification typically filled by a full-time employee, then the hourly rate range for the part-time/temporary/seasonal hourly position will be 90% of Step A to a maximum of Step C. The only exception is if a full-time employee who was paid higher than Step C reduces to part-time status then that employee will retain the hourly rate equivalent of the salary step they were at when they reduced to part-time status. HOURLY PART-TIME, TEMPORARY, AND SEASONAL EMPLOYEE SALARY SCHEDULE 7/1/2026 (3.8%) Hourly Rate Range Page 1 of 1 Page 307 of 309 RECREATION POSITIONS: Class Code Classification Title 9902 Recreation Leader I $18.19 $18.19 9903 Recreation Leader II $19.00 $19.00 9916 Recreation Leader III $20.20 $23.79 9921 Recreation Specialist $26.99 $33.94 OTHER POSITIONS*: Class Code Classification Title 9803 Firefighter Trainee (Licensed Paramedic) 90% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 95% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 9928 Student Worker $18.19 $18.19 9930 Accounting Assistant I $29.15 $35.71 9932 Office Assistant I $25.11 $30.76 9933 Custodian $26.92 $32.97 9934 Maintenance Worker Assistant $23.24 $29.24 9939 Assistant Fleet Technician $28.58 $35.01 9943 Intern - Fellowship $35.30 $37.80 9946 Code Enforcement Technician $34.31 $42.01 9948 Property & Evidence Technician $33.84 $41.45 9951 Reserve Officer – Level II (flat rate) 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9952 Reserve Officer – Level III (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9953 Police Officer Trainee (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 9955 Intern – Master’s $21.05 $23.41 9956 Intern – Bachelor’s $18.19 $20.28 9957 Police Cadet (High School Student)$18.19 $19.04 9958 Police Cadet (Junior/Community College)$20.16 $22.40 9959 Police Cadet (4 Year College/University > 60 semester units)$22.40 $28.00 9980 Water Conservation Officer $41.82 $52.60 9983 Communication Assistant $26.78 $33.11 9950/B Reserve Officer – Level I (flat rate) Step A of Range SP32 from Police Salary Schedule = hourly rate Step A of Range SP32 from Police Salary Schedule = hourly rate 9985 Extra Help CalPERS Retired Annuitant TBD based on job duties TBD based on job duties 9986 Interim CalPERS Retired Annuitant TBD based on job duties TBD based on job duties Hourly Rate Range *Consistent with some of the ranges noted above, if the city hires a part-time/temporary/seasonal hourly employee to a job classification typically filled by a full-time employee, then the hourly rate range for the part-time/temporary/seasonal hourly position will be 90% of Step A to a maximum of Step C. The only exception is if a full-time employee who was paid higher than Step C reduces to part-time status then that employee will retain the hourly rate equivalent of the salary step they were at when they reduced to part-time status. HOURLY PART-TIME, TEMPORARY, AND SEASONAL EMPLOYEE SALARY SCHEDULE 7/1/2027 (3.7%) Hourly Rate Range Page 1 of 1 Page 308 of 309 RECREATION POSITIONS: Class Code Classification Title 9902 Recreation Leader I $18.74 $18.74 9903 Recreation Leader II $19.57 $19.57 9916 Recreation Leader III $20.81 $24.50 9921 Recreation Specialist $27.80 $34.96 OTHER POSITIONS*: Class Code Classification Title 9803 Firefighter Trainee (Licensed Paramedic) 90% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 95% of Step A of Range F30 from the IAFF, Local 2805 salary schedule = hourly rate 9928 Student Worker $18.74 $18.74 9930 Accounting Assistant I $30.02 $36.78 9932 Office Assistant I $25.86 $31.68 9933 Custodian $27.73 $33.96 9934 Maintenance Worker Assistant $23.94 $30.12 9939 Assistant Fleet Technician $29.44 $36.06 9943 Intern - Fellowship $36.36 $38.93 9946 Code Enforcement Technician $35.34 $43.27 9948 Property & Evidence Technician $34.86 $42.69 9951 Reserve Officer – Level II (flat rate) 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 95% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9952 Reserve Officer – Level III (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 90% of Step A of Range SP32 from Police Salary Schedule = hourly rate 9953 Police Officer Trainee (flat rate) 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 90% of Step A of Range SP32 from Police Salary Schedule = monthly pay rate while attending police academy. 9955 Intern – Master’s $21.68 $24.11 9956 Intern – Bachelor’s $18.74 $20.89 9957 Police Cadet (High School Student)$18.74 $19.61 9958 Police Cadet (Junior/Community College)$20.76 $23.07 9959 Police Cadet (4 Year College/University > 60 semester units)$23.07 $28.84 9980 Water Conservation Officer $43.07 $54.18 9983 Communication Assistant $27.58 $34.10 9950/B Reserve Officer – Level I (flat rate) Step A of Range SP32 from Police Salary Schedule = hourly rate Step A of Range SP32 from Police Salary Schedule = hourly rate 9985 Extra Help CalPERS Retired Annuitant TBD based on job duties TBD based on job duties 9986 Interim CalPERS Retired Annuitant TBD based on job duties TBD based on job duties Hourly Rate Range *Consistent with some of the ranges noted above, if the city hires a part-time/temporary/seasonal hourly employee to a job classification typically filled by a full-time employee, then the hourly rate range for the part-time/temporary/seasonal hourly position will be 90% of Step A to a maximum of Step C. The only exception is if a full-time employee who was paid higher than Step C reduces to part-time status then that employee will retain the hourly rate equivalent of the salary step they were at when they reduced to part-time status. HOURLY PART-TIME, TEMPORARY, AND SEASONAL EMPLOYEE SALARY SCHEDULE 7/1/2028 (3.0%) Hourly Rate Range Page 1 of 1 Page 309 of 309