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HomeMy WebLinkAbout12 09 2024 Council Meeting PacketDecember 9, 2024 | 6:00 PM Page 1 of 6 City Council Regular Meeting Agenda CITY COUNCIL REGULAR MEETING AGENDA CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 MONDAY, DECEMBER 9, 2024 | 6:00 PM MAYOR Marie Blankley COUNCIL MEMBERS Rebeca Armendariz Dion Bracco Tom Cline Zach Hilton Carol Marques Fred Tovar CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING PUBLIC COMMENTS ON AGENDA ITEMS ARE TAKEN BEFORE THE CITY COUNCIL TAKES ACTION. Please keep your comments to 3 minutes. Time restrictions may vary based on the Mayor's discretion. Send written comments on any agenda item to publiccomments@cityofgilroy.org or City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by 1 p.m. on the meeting day will be distributed to the City Council before the meeting. Comments are also available 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 dispute any planning or land use decision from this meeting in court, you may only raise issues you or someone else presented at this meeting's public hearing or in written letters to the City Council before the hearing. Be aware that the time to seek a judicial review of any final decision made at this meeting is defined by Section 1094.6 of the California Code of Civil Procedure. During this meeting, a Closed Session may be called under Government Code Section 54956.9 (d)(2). This will happen if, in the City's legislative body's opinion (based on current facts, circumstances, and legal advice), there's a significant risk of a lawsuit against the City. Additional materials submitted after agenda distribution are available on www.cityofgilroy.org as soon as possible. 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. December 9, 2024 | 6:00 PM Page 2 of 6 City Council Regular Meeting Agenda 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 translation assistance, contact the City Clerk 72 hours before the meeting at 408-846-0204 or cityclerk@cityofgilroy.org. Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a cityclerk@cityofgilroy.org. To access written translation during the meeting, please scan the QR Code or click this link: Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace: bit.ly/3FBiGA0 Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir Use a headset on your phone for audio or read the transcript on your device. Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo. The agenda for this meeting is outlined as follows: 1. OPENING 1.1. Call to Order 1.2. Pledge of Allegiance 1.3. Invocation 1.4. City Clerk's Report on Posting the Agenda 1.5. Roll Call 1.6. Orders of the Day 1.7. Employee Introductions 2. COUNCIL CORRESPONDENCE (Informational Only) 3. PRESENTATIONS TO THE COUNCIL 3.1. Presentation of the 2024 City of Gilroy Highlights Video 3.2. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL December 9, 2024 | 6:00 PM Page 3 of 6 City Council Regular Meeting Agenda This part of the meeting allows public address on non-agenda topics within the Council's jurisdiction. To speak, complete a Speaker's Card from the entrances and give it to the City Clerk. Speaking time ranges from 1-3 minutes based on the Mayor's discretion. Extended discussions or actions on non-agenda items are restricted by law. For Council action, the topic may be listed on a future agenda. Email written comments on non-agenda topics to publiccomments@cityofgilroy.org or mail them to City Hall, 7351 Rosanna Street, Gilroy, CA 95020, by 1:00 p.m. on the meeting day. These comments, available at City Hall, will be shared with the Council and included in the meeting record. Late submissions will be shared as soon as possible. A 10-page limit applies to hard-copy materials, but electronic submissions are unlimited. 4. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Armendariz – Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority JPA Board (alternate) Council Member Marques – ABAG, Downtown Committee, Gilroy Gardens Board of Directors, Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate) Council Member Hilton – CalTrain Policy Group (alternate), Silicon Valley Clean Energy Authority JPA Board, VTA Policy Advisory Committee Council Member Cline – Gilroy Economic Development Partnership (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities Association, Gilroy Youth Task Force, Silicon Valley Regional Interoperability Authority Board, VTA Policy Advisory Committee (alternate), Visit Gilroy California Welcome Center Board, VTA Mobility Partnership Committee Council Member Tovar – Downtown Committee, Gilroy Youth Task Force (alternate), Santa Clara County Expressway Plan 2040 Advisory Board, Santa Clara Valley Water Commission, SCRWA, South County Youth Task Force Policy Team Mayor Blankley – ABAG (alternate), CalTrain Policy Group, Downtown Committee, Gilroy Economic Development Partnership, Gilroy Sister Cities Association (alternate), Gilroy Youth Task Force, Santa Clara Valley Water Joint Water Resources Committee, SCRWA, South County Youth Task Force Policy Team, VTA Board of Directors, VTA Mobility Partnership Committee 5. CONSENT CALENDAR Items under the Consent Calendar are deemed routine and approved with one motion. If a Council member or a member of the public wishes for a separate discussion on an item, it must be requested for removal before the Council's approval vote. If removed, the item will be discussed in its original order. December 9, 2024 | 6:00 PM Page 4 of 6 City Council Regular Meeting Agenda 5.1. Approval of the Action Minutes of the November 18, 2024 City Council Regular Meeting 5.2. Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) 5.3. Adopt a Resolution Approving a Third Time Extension for Tentative Map TM 16-02 Creating 14 Single-Family Residential Lots, Two Common Parcels, and One Public Park Parcel, Located at the Northerly Terminus of Greenfield Drive and South of Uvas Creek, APN 808-20-008 5.4. Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 5.5. Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2023-2024 as Required under Government Code 66000 5.6. Approval of a Notice of Acceptance of Completion for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288 and Approval of a Final Contract with McKim Corporation in the Amount of $4,361,339.19 5.7. Approval of Memorandum of Understanding Side Letter with Gilroy AFSCME, Local 101 (General and Supervisory Units) Regarding Removal of the Cap on Playground Inspection Certifications as Required by CalPERS 5.8. Purchase of Two 2025 Chevrolet Silverado 2500HD 4WD Crew Cab Vehicles in the Total Amount of $115,941.48 to Replace Two Fire Division Chief Vehicles in the Gilroy Fire Department 6. UNFINISHED BUSINESS 6.1. Acceptance of the Grant Deed for the Future Fire Station Parcel (Parcel Q, Tract 10472, APN 808-58-004) 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: 1. Authorize the City Administrator to accept the Grant Deed for the future Fire Station Parcel (Parcel Q, Tract 10472, APN#:808-58-004), and execute all necessary documents as appropriate. 7. CEREMONIAL ITEMS - Proclamations and Awards 7.1. Acceptance of the Official Canvass of 2024 Municipal Election Results 7.2. Presentation of Plaques to Outgoing Mayor Blankley and Council Members Armendariz and Tovar 7.3. Outgoing Mayor and Council Member Farewell Remarks 7.4. Adjourn Sine Die 7.5. Recess for Refreshments for Outgoing and Incoming Mayor and Council Members (15 minutes) December 9, 2024 | 6:00 PM Page 5 of 6 City Council Regular Meeting Agenda 7.6. Swearing in of Mayor and Council Members Elect 7.7. Roll Call 7.8. Incoming Mayor and Council Member’s Remarks 8. BIDS AND PROPOSALS 9. PUBLIC HEARINGS 10. INTRODUCTION OF NEW BUSINESS 10.1. Selection of Mayor Pro Tempore Following the November 5, 2024 General Election 1. Staff Report: Beth Minor, Interim City Clerk 2. Public Comment 3. Possible Action: Elect a Mayor Pro Tempore for calendar year 2025. 10.2. Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees 1. Staff Report: Bryce Atkins, Assistant to the City Administrator 2. Public Comment 3. Possible Action: Approve representative seat assignments as determined by Mayor Bozzo per California Government Code Section 40605. 10.3. Commemorative Flag Application Review for Calendar Year 2025 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: Council consideration regarding the Commemorative Flag Flying Application for the Progressive Pride Flag. 11. FUTURE COUNCIL INITIATED AGENDA ITEMS 12. CITY ADMINISTRATOR'S REPORTS 13. CITY ATTORNEY'S REPORTS 14. CLOSED SESSION 15. ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5). December 9, 2024 | 6:00 PM Page 6 of 6 City Council Regular Meeting Agenda 16. ADJOURNMENT FUTURE MEETING DATES January 2025 6 Regular Meeting - 6:00 p.m 27 Regular Meeting - 6:00 p.m 31 Strategic Planning Study Session – 8:30 AM February 2025 3 Regular Meeting - 6:00 p.m 24 Regular Meeting/Joint Meeting with GUSD - 6:00 p.m March 2025 3 Regular Meeting - 6:00 p.m 17 Regular Meeting - 6:00 p.m Meetings are live streamed on the City of Gilroy’s website at gilroy.city/meetings and on YouTube at https://bit.ly/45jor03. Access the 2024 City Council Meeting Calendar at https://bit.ly/3LLzY1n. City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 1 of 6 CITY COUNCIL ACTION MINUTES MONDAY, NOVEMBER 18, 2024 | 6:00 PM The agenda for this meeting is outlined as follows: 1. OPENING 1.1. Call to Order 1.2. Pledge of Allegiance The Pledge of Allegiance was led by Council Member Cline. 1.3. Invocation Pastor Malcolm McPhail led the invocation. 1.4. City Clerk's Report on Posting the Agenda Interim City Clerk, Beth Minor, advised the agenda was posted on Friday, November 15, 2024 at 10:55 A.M. 1.5. Roll Call Attendance Attendee Name Dion Bracco, Council Member Rebeca Armendariz, Council Member Carol Marques, Council Member Zach Hilton, Council Member Tom Cline, Council Member Fred Tovar, Council Member Marie Blankley, Mayor Absent None 1.6. Orders of the Day None 1.7. Employee Introductions Arlen Summers, Fire Division Chief, introduced the following new firefighters: Jared Cook, Jordan Daniels, and Dawson Wisler. 2. CEREMONIAL ITEMS - Proclamations and Awards 3. COUNCIL CORRESPONDENCE (Informational Only) 4. PRESENTATIONS TO THE COUNCIL 4.1. Annual Presentation by the Personnel Commission Anita Edde-Mitchell, Personnel Commission Chair, provided the presentation. 4.2. Annual Presentation by the Planning Commission Manny Bhandal, Planning Commission Chair, provided the presentation. 5.1 p. 7 of 194 City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 2 of 6 4.3. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL Mayor Blankley opened Public Comment. Zachariah Delarosa spoke of the need to help those less fortunate this holiday season. There being no further speakers, Mayor Blankley closed Public Comment. 5. REPORTS OF COUNCIL MEMBERS Council Member Bracco read a letter from the Fair Political Practices Commission regarding a complaint filed against him for a political donation he made; it was determined that the complaint failed to establish a violation. Council Member Armendariz No Report Council Member Marques No Report Council Member Hilton noted he attended the VTA Policy Advisory Committee, and the City is receiving grant funds for the Gilroy Transit Center. Council Member Cline No Report Council Member Tovar No Report Mayor Blankley No Report 6. CONSENT CALENDAR 6.1. Approval of the Action Minutes of the November 4, 2024 City Council Regular Meeting. 6.2. Acceptance of Cash and Investment Report as of September 30, 2024. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: To approve Agenda Item Nos. 6.1 and 6.2. RESULTS:PASS: 7-0 MOVER: Rebeca Armendariz, Council Member SECONDER: Fred Tovar, Council Member AYES: BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: ABSENT: ABSTAIN: 5.1 p. 8 of 194 City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 3 of 6 7. BIDS AND PROPOSALS 7.1. Award a Contract to Villalobos and Associates for the FY25 Annual CDBG Sidewalk/Curb Ramp Project No. 25-PW-291 in the amount of $141,755, Approve a Project Contingency of $38,188.33, and Approve a Total Project Expenditure of $179,943.33 for Construction. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: 1) To award a contract to Villalobos and Associates in the amount of $147,755, 2) approve a project contingency of $38,183.33, 3) approve a total project expenditure of $179,943.33 for the construction of the FY25 Annual CDBG Sidewalk/Curb Ramp Project (No.25-PW-291), and 4) authorize the City Administrator to execute the contract and associated documents. RESULTS:PASS: MOVER: Fred Tovar, Council Member SECONDER: Rebeca Armendariz, Council Member AYES:BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: ABSENT: ABSTAIN: 7.2. Award a Contract to Villalobos and Associates for the FY25 Annual Citywide Curb Ramp Project No. 25-PW-290 in the amount of $356,100, Approve a Project Contingency of $53,415, Approve a Total Project Expenditure of $409,515 for Construction, and Adopt a Resolution to Amend the Adopted Budget by $169,515. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: 1) Award a contract to Villalobos and Associates in the amount of $356,100, 2) approve a project contingency of $53,415, 3) approve a total project expenditure of $409,515 for the construction of the FY25 Annual Citywide Curb Ramp Project (No.25-PW-290), 4) authorize the City Administrator to execute the contract and associated documents; and 5) adopt a resolution amending the budget. RESULTS:PASS: 7-0 ROLL CALL VOTE MOVER: Fred Tovar, Council Member SECONDER: Rebeca Armendariz, Council Member AYES:BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: 5.1 p. 9 of 194 City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 4 of 6 ABSENT: ABSTAIN: Enactment No.: Resolution No. 2024-54 7.3. Award a contract to ELS Architecture and Urban Design for Civic Center Master Plan Consultant Services in the amount of $749,899. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: 1) To award a contract to ELS Architecture and Urban Design in the amount of $749,899; and 2) authorize the City Administrator to execute the agreement and all other related documents. RESULTS:PASS: MOVER:Dion Bracco, Council Member SECONDER:Rebeca Armendariz, Council Member AYES:BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: ABSENT: ABSTAIN: 8. PUBLIC HEARINGS 9. UNFINISHED BUSINESS 10. INTRODUCTION OF NEW BUSINESS 10.1.Receive Preliminary Fiscal Year 2023-24 (FY24) Year-End Financial Report and Adopt a Resolution Amending Fiscal Year 2024-25 (FY25) Budget to Appropriate Mid-cycle Budgetary Adjustments. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: 1) To Adopt a resolution amending the FY25 budget to appropriate mid-cycle budget adjustments, and 2) approve the Pension and Other Post-Employment Benefits (OPEB) Section 115 Trust contributions pursuant to the Council adopted policies. RESULTS:PASS: 7-0 ROLL CALL VOTE MOVER: Rebeca Armendariz, Council Member SECONDER: Fred Tovar, Council Member AYES:BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: ABSENT: 5.1 p. 10 of 194 City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 5 of 6 ABSTAIN: Enactment No.: Resolution No. 2024-55 10.2. Adoption of a Resolution Approving and Authorizing the City Administrator to Enter into an Agreement with Applicant Gilroy Logistics LLC for 951-981 Renz Lane Agricultural Mitigation. Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment. MOTION: Adopt a Resolution to approve an Agreement with Gilroy Logistics LLC to utilize 12.8 acres of the conservation easement that the City caused to be purchased on the Van Dyke property to satisfy compliance with the City of Gilroy’s Agricultural Mitigation Policy and authorize the City Administrator to execute the Agreement. RESULTS:PASS: 7-0 ROLL CALL VOTE MOVER: Tom Cline, Council Member SECONDER: Dion Bracco, Council Member AYES:BRACCO, ARMENDARIZ, MARQUES, HILTON, CLINE, TOVAR, BLANKLEY NOES: ABSENT: ABSTAIN: Enactment No.: Resolution No. 2024-56 11. FUTURE COUNCIL INITIATED AGENDA ITEMS 12. CITY ADMINISTRATOR'S REPORTS 12.1. Santa Teresa Fire Station Update Jimmy Forbis, City Administrator noted that he and City Engineer, Daniel Padilla, toured Morgan Hill’s new fire station; it is a good model for Gilroy due to the size and cost. The City is looking to finalize the design in early 2025. 13. CITY ATTORNEY'S REPORTS No Report 14. CLOSED SESSION 15. ADJOURN TO OPEN SESSION 16. ADJOURNMENT The meeting was adjourned at 7:05 P.M. 5.1 p. 11 of 194 City Council Regular Meeting AgendaNovember 18, 2024 | 6:00 PM Page 6 of 6 I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy. /s/Beth Minor Interim City Clerk 5.1 p. 12 of 194 Page 1 of 5 City of Gilroy STAFF REPORT Agenda Item Title:Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Public Works Submitted By:Matt Jones, Deputy Public Works Director Prepared By:Matt Jones, Deputy Public Works Director STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure RECOMMENDATION Approve the Utility Easement Agreement granting the City of Morgan Hill a non- exclusive, perpetual easement over certain portions of City-owned property, the City Corporation Yard (APN 841-10-009 & 841-10-032), for the installation, maintenance, and operation of a sanitary sewer trunk line and authorize the City Administrator to execute the agreement. EXECUTIVE SUMMARY The City of Gilroy, as the property owner, seeks to grant a utility easement to the City of Morgan Hill for a sanitary sewer trunk line. This easement is essential for Morgan Hill to extend its sanitary sewer service through a portion of Gilroy’s property the City Corporation Yard, facilitating the infrastructure across the property and connecting to the existing jointly owned trunk line near Renz Lane. The easement includes provisions for construction, emergency access, maintenance responsibilities, and restoration obligations. BACKGROUND The Cities of Morgan Hill and Gilroy share joint responsibility for maintaining the South County wastewater infrastructure, including the wastewater trunk line that extends from 5.2 p. 13 of 194 Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) City of Gilroy City Council Page 2 of 5 December 9, 2024 Morgan Hill through Gilroy to the regional wastewater treatment plant in Gilroy. This critical infrastructure is managed under the South County Regional Wastewater Authority (SCRWA), a Joint Powers Authority (JPA) formed in 1967. The JPA agreement, updated in 1992, outlines the collaborative framework for operating and maintaining shared wastewater facilities. A comprehensive condition assessment conducted in 2021 by Water Works Engineers revealed several immediate repair needs along the joint trunk line. These findings included five sanitary sewer pipeline segments requiring structural repairs, spray coating of approximately 25,000 linear feet of pipe to prevent corrosion, and the rehabilitation of 40 manholes to maintain the line’s integrity. Addressing these deficiencies is essential to ensure the trunk line continues to function safely and efficiently, preventing potential service disruptions or environmental impacts. To address these urgent needs, the City of Gilroy incorporated the Joint Morgan Hill- Gilroy Trunk Line Repairs Project into its Fiscal Years 2024-2028 Capital Improvement Program (CIP). This project includes the design, construction, and construction management for the necessary repairs, with an estimated total cost of $3.9 million. The project’s costs are shared equally between the two cities under a cost-sharing agreement approved by Morgan Hill's City Council on September 4, 2024, and recommended for approval by Gilroy's City Council. Separate from the joint trunk line, the City of Morgan Hill has a need to increase capacity for its continued growth. The new trunk line through the City Corporation Yard, APN 841-10-009 and 841-10-032, is a component of the new Morgan Hill Trunk line that will extend from Morgan Hill to Renz Lane in Gilroy. The City of Gilroy and Morgan Hill previously shared in the cost of constructing a shared trunk line from the treatment plant to Renz Lane. This new trunk line will connect with this previously constructed segment and relieve the existing jointly owned wastewater trunk line, providing benefit to Morgan Hill and Gilroy. To facilitate repairs to the new trunk line and ensure ongoing maintenance access, the City of Morgan Hill requires a perpetual, non-exclusive utility easement over this property. Additionally, a Temporary Construction Easement (TCE) is necessary for the installation phase, providing space for staging and construction activities. The proposed easement agreement formalizes these access rights while protecting the interests of the City of Gilroy. It ensures that all work performed by Morgan Hill will meet restoration and safety standards and that Gilroy retains the ability to use the property without unreasonable interference. The agreement also includes provisions for liability, environmental protections, and long-term operational needs. By establishing clear terms and responsibilities, the easement agreement facilitates efficient project execution while safeguarding Gilroy’s property and operational priorities. 5.2 p. 14 of 194 Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) City of Gilroy City Council Page 3 of 5 December 9, 2024 This project reflects the continued commitment of both cities to maintaining critical shared infrastructure, preserving public health, and supporting regional wastewater management goals. ANALYSIS The proposed easement agreement is a critical step in facilitating the long-term partnership with Morgan Hill at the South County Regional Wastewater Authority. The Cities recently partnered to expand the wastewater treatment plant providing additional capacity for flow to be received from Morgan Hill. By granting a perpetual, non-exclusive utility easement to the City of Morgan Hill, the agreement ensures that Morgan Hill has the legal right to access, install, maintain, and repair the sanitary sewer trunk line infrastructure on portions of City of Gilroy-owned property; the City of Gilroy Corporation Yard (APN 841-10-009 & 841-10-032). This access is essential for the successful implementation and long-term maintenance of this infrastructure. Key Provisions of the Easement Agreement: 1.Scope of Easement: The easement allows Morgan Hill to perform all necessary work related to the trunk line, including installation, operation, maintenance, repair, and emergency access. The agreement also ensures that the City of Morgan Hill’s activities will be conducted in a manner that minimizes disruption to Gilroy's property and operations. No operational impacts are anticipated from this easement. 2.Temporary Construction Easement (TCE): In addition to the permanent easement, the agreement includes a TCE that provides Morgan Hill with additional space (20 feet adjacent to the permanent easement) for staging, equipment storage, and other construction-related activities. The TCE is valid for 18 months and will terminate upon project completion. 3.Restoration Obligations: Morgan Hill is responsible for restoring any disturbed areas to substantially the same condition as prior to the work. This includes regrading, replacing landscaping, and repairing any damage to improvements within the easement area. Restoration must be completed within 30 days of the work’s conclusion. 4.Non-Interference with Gilroy’s Use: The agreement specifies that Morgan Hill’s use of the easement area must not interfere unreasonably with Gilroy’s use of the property. Gilroy retains the right to approve any additional utility installations within the easement area to ensure compatibility with the sewer trunk line. 5.Insurance and Liability: Morgan Hill will maintain general liability insurance and indemnify the City of Gilroy for any claims arising from its activities within the easement area, except for damages caused by Gilroy’s negligence. Environmental liability insurance is also included to address potential hazards encountered during the work. 5.2 p. 15 of 194 Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) City of Gilroy City Council Page 4 of 5 December 9, 2024 6.Perpetual Nature: The easement is perpetual to ensure the long-term operation and maintenance of the shared trunk line infrastructure, critical for both cities. Termination of the easement is only permitted if the trunk line is no longer in use and is fully removed or rerouted. ALTERNATIVES Approving the proposed easement agreement allows the City of Morgan Hill to proceed with the Morgan Hill Relief Trunk Line Project. Declining to approve the agreement would delay the project, potentially increasing costs and risking environmental and public health impacts due to system degradation or failure. Such a decision would also contradict previous Council actions supporting the project and the long-standing partnership established under the South County Regional Wastewater Authority (SCRWA). FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact associated with the approval of the easement agreement. All maintenance, installation, and repair costs for the Sanitary Sewer Facilities are to be borne by Morgan Hill, except in cases where damage is caused by Gilroy’s actions. Morgan Hill will maintain liability insurance as is typical and will indemnify Gilroy for any claims from this easement. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS Upon Council approval, the City Administrator will execute the easement agreement with the City of Morgan Hill. Following execution, the agreement will be recorded with the Santa Clara County Recorder’s Office to formalize the easement rights. The City of Gilroy Public Works Department will coordinate with Morgan Hill on the project timeline and ensure compliance with notice and restoration requirements as stipulated in the agreement. During installation and subsequent maintenance, Gilroy staff will monitor activities within the easement area to ensure restoration standards are met and to address any potential impacts on Gilroy property. Additionally, all documentation related to this easement, including permits, project records, and maintenance plans, will be retained for future reference and ongoing property management. Attachments: 1. Utility Easement Agreement (Sanitary Sewer Trunk Line) 2. Exhibits A, B, C, and D detailing the easement area and benefitted property 5.2 p. 16 of 194 Approval of Utility Easement Agreement for the Sanitary Sewer Trunk Line Between the City of Gilroy (Grantor) and the City of Morgan Hill (Grantee) City of Gilroy City Council Page 5 of 5 December 9, 2024 5.2 p. 17 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) A. RECITALS A. The CITY OF GILROY (the "CITY" or "GRANTOR") is the owner of that certain real property located in the City of Gilroy, California, more particularly described on the attached Exhibit C, APN 841-10-009 & 841-10-032 (the "GRANTOR Property"). B. The CITY OF MORGAN HILL ("CITY" or "GRANTEE") is the owner of that certain real property located in the vicinity of the GRANTOR Property, more particularly described on the attached Exhibit D (the "Benefitted Property"). The Benefitted Property shall also include any other real property acquired by the GRANTEE that is adjacent to the property described in Exhibit D, and upon such acquisition, all references to the "Benefitted Property" shall mean and include such additional real property. C. The GRANTEE requires a sanitary sewer trunk line (the “Sanitary Sewer Trunk Line”) to service the Benefitted Property and related infrastructure. D. Portions of the sewer trunk line and related facilities necessary to service the Benefitted Property (collectively, the "Sanitary Sewer Facilities") are located on a portion of the GRANTOR Property consisting of a strip of land (the "Easement Area"), which is identified as the "Sewer Trunk Line Easement" on the legal description attached hereto as Exhibit A and on the plat attached hereto as Exhibit B, APN 841-10-009 & 841-10-032. E. The CITY OF GILROY wishes to grant to the CITY OF MORGAN HILL a utility easement over and across the GRANTOR Property to and for the benefit of the Benefitted Property and to establish the GRANTEE's rights in and to the Sanitary Sewer Facilities, in accordance with the terms and conditions set forth below. GRANT OF EASEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 1. DEFINITIONS 1.1 For all purposes of this Agreement, the following terms shall have the meanings ascribed to them below: (a) "Agreement" shall mean this Utility Easement Agreement. (b) "GRANTOR" shall mean the CITY OF GILROY or its successor or assign or any successor- in-interest in ownership of the GRANTOR Property, APN 841-10-009 & 841-10-032. (c) "GRANTOR Parties" shall mean GRANTOR or any of its agents, employees, affiliates, contractors, subcontractors, or other representatives. (d) "Utility Easement Owner" shall mean the CITY OF MORGAN HILL or its successor or assign or any successor-in-interest in ownership of the Benefitted Property. 5.2 p. 18 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) (e) "Utility Easement Owner Parties" shall mean the Utility Easement Owner or any of its agents, employees, affiliates, contractors, subcontractors, or other representatives. 2. GRANT OF UTILITY EASEMENT 2.1 Scope of Utility Easement. GRANTOR hereby grants and conveys to Utility Easement Owner a perpetual, non-exclusive easement over, upon, under, and through the GRANTOR Property, APN 841-10-009 & 841-10-032 (the "Utility Easement"), for the benefit of the Benefitted Property for the right to: (a) Install, use, maintain, repair, improve, reconstruct, upgrade, and/or operate the Sanitary Sewer Facilities within the Easement Area, which Sanitary Sewer Facilities shall be owned solely by the Utility Easement Owner. However, the Utility Easement Owner agrees that any such installation, use, maintenance, repair, improvement, reconstruction, upgrade, and/or operation shall be conducted in a good and workmanlike manner and in accordance with good engineering practices. (b) Emergency Access. In the case of emergencies, the Utility Easement Owner is permitted to conduct emergency repairs immediately and notify the GRANTOR within 24 hours after the start of such work. For non-emergency work, the Utility Easement Owner shall provide at least five (5) business days written notice before commencing work within the Easement Area. Routine maintenance inspections do not require prior notice. (c) Access, ingress, and egress to and from the Sanitary Sewer Facilities for any of the purposes described above. 2.2 Maintenance, Repair, and Replacement of Sanitary Sewer Facilities. The Utility Easement Owner shall be responsible, at its sole cost and expense, for the maintenance, repair, and replacement, if necessary, of the Sanitary Sewer Facilities. However, the GRANTOR shall be obligated to pay or reimburse the Utility Easement Owner for any and all damage (other than due to ordinary wear and tear) to the Sanitary Sewer Facilities caused by the negligence or wrongful acts of the GRANTOR Parties. 2.3 Restoration of GRANTOR Property. If any Utility Easement Owner Parties enter upon the GRANTOR Property, APN 841-10-009 & 841-10-032, for the installation, maintenance, repair, or replacement of the Sanitary Sewer Facilities, the Utility Easement Owner agrees to restore the GRANTOR Property affected by such work to substantially the same condition as existed prior to such work within thirty (30) days of completing the repair or work. Restoration obligations cover both original installation and any future maintenance or upgrades to the Sanitary Sewer Facilities. The Utility Easement Owner shall use reasonable efforts to avoid causing any damage to, or interference with, any other improvements or landscaping on or around the Easement Area. 2.4 Covenant by Utility Easement Owner. The Utility Easement Owner covenants not to materially interfere with the use of the GRANTOR Property by the GRANTOR Parties, subject to the Utility Easement Owner's rights under the Utility Easement granted herein. 2.5 Reservation of Rights by GRANTOR. The Utility Easement is subject to the following reservations by the GRANTOR: 5.2 p. 19 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) (a) The GRANTOR reserves the right to use the surface area of the Easement Area for any use that does not unreasonably interfere with the use of the Sanitary Sewer Facilities by the Utility Easement Owner, provided no structure shall be installed or maintained that materially affects the Utility Easement Owner's right to access and use the Sanitary Sewer Facilities. (b) The GRANTOR specifically reserves the right to allow other utility lines to be installed within the Easement Area, provided those utility lines do not materially interfere with the use or operation of the Sanitary Sewer Facilities by the Utility Easement Owner. (c) The use of any Temporary Construction Easement granted herein shall be limited to installation purposes only and will not unreasonably interfere with ongoing operations or access required by the GRANTOR for its activities 2.6 Temporary Construction Easement. GRANTOR grants to the Utility Easement Owner a Temporary Construction Easement (TCE) for purposes of installing the Sanitary Sewer Facilities within the Easement Area. The TCE will cover an area an additional Twenty (20) feet adjacent to the Utility Easement only in areas not impacting vehicular travel routes. The TCE is valid for a period of Eighteen (18) months, beginning on the date of commencement of the original installation. During this period, the Utility Easement Owner shall have the right to use this area for staging, equipment storage, materials, and other activities required to complete the installation. Upon completion of the installation, the Utility Easement Owner agrees to restore the TCE area to substantially the same condition as existed prior to use, at no cost to the GRANTOR. This TCE is granted solely for the installation phase and shall terminate upon completion of the installation or at the end of the stated period, whichever occurs first. 3. INSURANCE During any period that any Utility Easement Owner Parties are maintaining or repairing the Sanitary Sewer Facilities under the GRANTOR Property, APN 841-10-009 & 841-10-032, the Utility Easement Owner shall obtain and maintain a commercial general liability insurance policy insuring both the Utility Easement Owner and the GRANTOR against claims arising from the activities of the Utility Easement Owner Parties. Such insurance shall be in an amount of not less than $2,000,000 per occurrence for bodily injury, death, and property damage. Environmental liability insurance or pollution liability may also be required if hazardous materials are encountered during the work. 4. INDEMNIFICATION The Utility Easement Owner shall indemnify, defend, protect, and hold the GRANTOR and the GRANTOR Parties harmless from and against all claims, liabilities, damages, and expenses (including reasonable attorneys’ fees) arising from the Utility Easement Owner’s use of the Easement Area, except to the extent caused by the negligence or wrongful acts of the GRANTOR Parties. 5.2 p. 20 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) 5. MECHANIC'S LIENS The Utility Easement Owner shall keep the GRANTOR Property, APN 841-10-009 & 841-10- 032, and Easement Area free of any mechanics’ or materialmen’s liens arising from work performed by the Utility Easement Owner Parties. If such liens arise, the Utility Easement Owner shall remove or bond against such liens within twenty (20) calendar days of notification. 6. COVENANTS TO RUN WITH THE LAND The Utility Easement shall run with the land and bind the successors and assigns of the GRANTOR and the Utility Easement Owner. 7. DISPUTE RESOLUTION In the event of any dispute or disagreement between the Parties regarding this Agreement, the Parties shall first attempt to resolve the matter through good faith negotiations. If the dispute remains unresolved, either Party may refer the dispute to mediation before pursuing litigation or other legal remedies. If mediation is unsuccessful, the Parties may proceed to litigation. 8. TERMINATION AND MODIFICATION This Easement shall remain in effect in perpetuity unless the Sanitary Sewer Facilities are no longer in use or are permanently rerouted. In such cases, the Parties may terminate or modify the easement through mutual written agreement. If the easement is terminated, the GRANTEE shall remove any above-ground structures and restore the GRANTOR Property, APN 841-10- 009 & 841-10-032, to its original condition unless otherwise agreed upon. 9. ENVIRONMENTAL HAZARDS In the event that hazardous materials, contaminated soil, or any environmental issues are encountered during the installation, maintenance, or repair of the Sanitary Sewer Facilities, the Utility Easement Owner shall immediately notify the GRANTOR and take appropriate steps to mitigate the hazard. Any necessary environmental cleanup shall be the responsibility of the Utility Easement Owner, and environmental liability insurance coverage shall be maintained to cover any such occurrences. 10. MISCELLANEOUS 10.1 Notices. Any notice required hereunder shall be deemed delivered if sent by registered or certified mail to the following addresses: CITY OF GILROY 5.2 p. 21 of 194 7351 Rosanna Street, Gilroy, CA 95020 Attn: Director of Public Works/City Engineer CITY OF MORGAN HILL 17575 Peak Avenue, Morgan Hill, CA 95037 Attn: Legal Department 5.2 p. 22 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) 11. IN WITNESS WHEREOF IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first written herein below. CITY: CITY OF MORGAN HILL A Municipal Corporation BY: Christina Turner Title: City Manager Date: GRANTOR: CITY OF GILROY A Municipal Corporation BY: Jimmy Forbis Title: City Administrator Date: APPROVED AS TO FORM: BY: Donald Larkin Title: City Attorney Date: BY: Andy Faber Title: City Attorney Date: 5.2 p. 23 of 194 EXHIBIT “A” SANITARY SEWER EASEMENT February 5, 2024 HMH 4897.00.272 Page 1 of 1 REAL PROPERTY in the City of Gilroy, County of Santa Clara, State of California, being a portion of Parcel One as shown on that certain Parcel Map filed for record on December 8, 2004, in Book 778 of Maps, page 35, Santa Clara County Records, described as follows: COMMENCING at southerly terminus of that certain course shown as “South 19°34'17" East, 65.96 feet, on the westerly line of said Parcel One as shown on said Map; Thence along said westerly line, North 19°35'08" West, 18.00 feet, to the TRUE POINT OF BEGINNING; Thence continuing along said westerly line, North 19°35'08" West, 15.00 feet; Thence North 70°40'36" East, 150.59 feet, to the westerly line of Highway 101; Thence along said westerly line, South 19°15'25" East, 15.00 feet; Thence South 70°40'36" West, 150.50 feet, to the TRUE POINT OF BEGINNING. Containing 2,258 square feet or 0.05 acres, more or less. As shown on Exhibit “B" attached hereto and made a part hereof. This legal description was prepared by me or under my direction in accordance with the Professional Land Surveyors Act. Date: 2-5-24 489700LD06 - SSE.docx 1570 Oakland Road | San Jose, California 95131 | (408) 487-2200 | (408) 487-2222 Fax | www.HMHca.com Tracy L. Giorgetti, LS 8720 5.2 p. 24 of 194 2-5-245.2 p. 25 of 194 GRANTOR: CITY OF GILROY APN: 841-10-009/032 PROJECT NAME: SEWER RELIEF TRUNK LINE EXHIBIT C Grant of Sanitary Sewer Easement Page 9 of 9 PEasement Purchase Agreement for Gilroy - 1.25.23 -Draft.clh.doc 5.2 p. 26 of 194 RECORDING REQUESTED BY: CITY OF MORGAN HILL WHEN RECORDED MAIL DOCUMENT TO: CITY CLERK CITY OF MORGAN HILL 17575 PEAK AVENUE MORGAN HILL, CA 95037 RECORD AT NO FEE PER GOVERNMENT CODE SECTIONS 6103 & 27383 APN 841-10-009 & 841-10-032 SPACE ABOVE THIS LINE FOR RECORDER’S USE GRANT OF SANITARY SEWER EASEMENT City of Gilroy, as owners of the property APN 841-10-009 and 841-10-032 (Grantor), hereby grants to the City of Morgan Hill, a municipal corporation of the State of California (Grantee), a non-exclusive easement for sanitary sewer purposes over, under, and upon those certain areas of land, with the right to enter upon the easement at any time for inspection, installation, construction, repair and maintenance thereof, located within the easement area as described in Exhibit A and Exhibit B. These easements shall be kept open and free from buildings, and structures of any kind except public service structures, irrigation systems, and appurtenances thereto, and lawful fences. Executed the day and year first above written. GRANTOR: By: Name: Jimmy Forbis, City Administrator Date: 5.2 p. 27 of 194 EXHIBIT D Benefitted Property 5.2 p. 28 of 194 -I IIVII I-June 21, 2021 HMH 4897.00.272 Page 1 of 1 SANITARY SEWER EASEMENT LEGAL DESCRIPTION REAL PROPERTY in the City of Gilroy, County of Santa Clara, State of California, being a portion of that parcel of land described in the Trust Transfer Deed recorded February 25, 2021, in Document No. 24846770 of Official Records, Santa Clara County Records, described as follows: COMMENCING at the southerly corner of said parcel of land, being on the easterly line of East Street; Thence along said easterly line, North 19°19'24" West, 17.50 feet, to the TRUE POINT OF BEGINNING; Thence continuing along said easterly line, North 19°19'24" West, 15.00 feet; Thence North 70°40'36" East, 269.69 feet, to the easterly line of said parcel of land; Thence along said easterly line, South 19°35'08" East, 15.00 feet; Thence South 70°40'36" West, 269.76 feet, to the TRUE POINT OF BEGINNING. Containing 4,046 square feet or 0.09 acres, more or less. As shown on Exhibit "B" attached hereto and made a part hereof. This legal description was prepared by me or under my direction in accordance with the Professional Land Surveyors Act. Date: --�6_'2._1 _2_, __ _ No. 8720 489700LD01 - SSE.docx Page 9 of 17 Property Purchase Agreement for Tsai -Final. doc 5.2 p. 29 of 194 EAST 7TH STREET --, 37.5' Oat"' 2021-06-21 D ood, Checked: TG "" 489700PL01 I­I-LlJ(/) LlJ<{ Cl:'.LlJ I- 37.5' 1570 Oakland Road (408) 487-2200 San Jose, CA 95131 HMHca.com DOC 24846770 N70"40'36"E 269.69' S70"40'36"W 269.76' in LEGEND I 0 30 60 1 IN.= 60 FT. S19'35'08"E 15.00' POC POINT OF COMMENCEMENT TPOB lRUE POINT OF BEGINNING SHEET 1 OF 1 PLAT TO ACCOMPANY DESCRIPTION: SANITARY SEWER EASEMENT CITY OF GILROY CALIFORNIA 5.2 p. 30 of 194 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the deed or grant dated _ from the City of Gilroy to the City of Morgan Hill, a governmental agency, is hereby accepted by order of the City Council by the undersigned officer or agent on behalf of the Council pursuant to authority conferred by Resolution No. of the Morgan Hill City Council adopted on , 2024, and the grantee consents to the recordation thereof by its duly authorized officer. Recommended for Approval Scott C. Creer, City Engineer City of Morgan Hill Christina J. Turner, City Manager Date: 2 January 2024 5.2 p. 31 of 194 State of California County of Santa Clara On 20 , before me, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SIGNATURE OF NOTARY PUBLIC (ABOVE AREA FOR NOTARY SEAL) State of California County of Santa Clara On 20 , before me, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SIGNATURE OF NOTARY PUBLIC (ABOVE AREA FOR NOTARY SEAL) 5 January 2024 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 5.2 p. 32 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) A. RECITALS A. The CITY OF GILROY (the "CITY" or "GRANTOR") is the owner of that certain real property located in the City of Gilroy, California, more particularly described on the attached Exhibit C, APN 841-10-009 & 841-10-032 (the "GRANTOR Property"). B. The CITY OF MORGAN HILL ("CITY" or "GRANTEE") is the owner of that certain real property located in the vicinity of the GRANTOR Property, more particularly described on the attached Exhibit D (the "Benefitted Property"). The Benefitted Property shall also include any other real property acquired by the GRANTEE that is adjacent to the property described in Exhibit D, and upon such acquisition, all references to the "Benefitted Property" shall mean and include such additional real property. C. The GRANTEE requires a sanitary sewer trunk line (the “Sanitary Sewer Trunk Line”) to service the Benefitted Property and related infrastructure. D. Portions of the sewer trunk line and related facilities necessary to service the Benefitted Property (collectively, the "Sanitary Sewer Facilities") are located on a portion of the GRANTOR Property consisting of a strip of land (the "Easement Area"), which is identified as the "Sewer Trunk Line Easement" on the legal description attached hereto as Exhibit A and on the plat attached hereto as Exhibit B, APN 841-10-009 & 841-10-032. E. The CITY OF GILROY wishes to grant to the CITY OF MORGAN HILL a utility easement over and across the GRANTOR Property to and for the benefit of the Benefitted Property and to establish the GRANTEE's rights in and to the Sanitary Sewer Facilities, in accordance with the terms and conditions set forth below. GRANT OF EASEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 1. DEFINITIONS 1.1 For all purposes of this Agreement, the following terms shall have the meanings ascribed to them below: (a)"Agreement" shall mean this Utility Easement Agreement. (b)"GRANTOR" shall mean the CITY OF GILROY or its successor or assign or any successor- in-interest in ownership of the GRANTOR Property, APN 841-10-009 & 841-10-032. (c)"GRANTOR Parties" shall mean GRANTOR or any of its agents, employees, affiliates, contractors, subcontractors, or other representatives. (d)"Utility Easement Owner" shall mean the CITY OF MORGAN HILL or its successor or assign or any successor-in-interest in ownership of the Benefitted Property. 5.2 p. 33 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) (e)"Utility Easement Owner Parties" shall mean the Utility Easement Owner or any of its agents, employees, affiliates, contractors, subcontractors, or other representatives. 2. GRANT OF UTILITY EASEMENT 2.1 Scope of Utility Easement. GRANTOR hereby grants and conveys to Utility Easement Owner a perpetual, non-exclusive easement over, upon, under, and through the GRANTOR Property, APN 841-10-009 & 841-10-032 (the "Utility Easement"), for the benefit of the Benefitted Property for the right to: (a) Install, use, maintain, repair, improve, reconstruct, upgrade, and/or operate the Sanitary Sewer Facilities within the Easement Area, which Sanitary Sewer Facilities shall be owned solely by the Utility Easement Owner. However, the Utility Easement Owner agrees that any such installation, use, maintenance, repair, improvement, reconstruction, upgrade, and/or operation shall be conducted in a good and workmanlike manner and in accordance with good engineering practices. (b)Emergency Access. In the case of emergencies, the Utility Easement Owner is permitted to conduct emergency repairs immediately and notify the GRANTOR within 24 hours after the start of such work. For non-emergency work, the Utility Easement Owner shall provide at least five (5) business days written notice before commencing work within the Easement Area. Routine maintenance inspections do not require prior notice. (c) Access, ingress, and egress to and from the Sanitary Sewer Facilities for any of the purposes described above. 2.2 Maintenance, Repair, and Replacement of Sanitary Sewer Facilities. The Utility Easement Owner shall be responsible, at its sole cost and expense, for the maintenance, repair, and replacement, if necessary, of the Sanitary Sewer Facilities. However, the GRANTOR shall be obligated to pay or reimburse the Utility Easement Owner for any and all damage (other than due to ordinary wear and tear) to the Sanitary Sewer Facilities caused by the negligence or wrongful acts of the GRANTOR Parties. 2.3 Restoration of GRANTOR Property. If any Utility Easement Owner Parties enter upon the GRANTOR Property, APN 841-10-009 & 841-10-032, for the installation, maintenance, repair, or replacement of the Sanitary Sewer Facilities, the Utility Easement Owner agrees to restore the GRANTOR Property affected by such work to substantially the same condition as existed prior to such work within thirty (30) days of completing the repair or work. Restoration obligations cover both original installation and any future maintenance or upgrades to the Sanitary Sewer Facilities. The Utility Easement Owner shall use reasonable efforts to avoid causing any damage to, or interference with, any other improvements or landscaping on or around the Easement Area. 2.4 Covenant by Utility Easement Owner. The Utility Easement Owner covenants not to materially interfere with the use of the GRANTOR Property by the GRANTOR Parties, subject to the Utility Easement Owner's rights under the Utility Easement granted herein. 2.5 Reservation of Rights by GRANTOR. The Utility Easement is subject to the following reservations by the GRANTOR: 5.2 p. 34 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) (a) The GRANTOR reserves the right to use the surface area of the Easement Area for any use that does not unreasonably interfere with the use of the Sanitary Sewer Facilities by the Utility Easement Owner, provided no structure shall be installed or maintained that materially affects the Utility Easement Owner's right to access and use the Sanitary Sewer Facilities. (b) The GRANTOR specifically reserves the right to allow other utility lines to be installed within the Easement Area, provided those utility lines do not materially interfere with the use or operation of the Sanitary Sewer Facilities by the Utility Easement Owner. (c) The use of any Temporary Construction Easement granted herein shall be limited to installation purposes only and will not unreasonably interfere with ongoing operations or access required by the GRANTOR for its activities 2.6 Temporary Construction Easement. GRANTOR grants to the Utility Easement Owner a Temporary Construction Easement (TCE) for purposes of installing the Sanitary Sewer Facilities within the Easement Area. The TCE will cover an area an additional Twenty (20) feet adjacent to the Utility Easement only in areas not impacting vehicular travel routes. The TCE is valid for a period of Eighteen (18) months, beginning on the date of commencement of the original installation. During this period, the Utility Easement Owner shall have the right to use this area for staging, equipment storage, materials, and other activities required to complete the installation. Upon completion of the installation, the Utility Easement Owner agrees to restore the TCE area to substantially the same condition as existed prior to use, at no cost to the GRANTOR. This TCE is granted solely for the installation phase and shall terminate upon completion of the installation or at the end of the stated period, whichever occurs first. 3. INSURANCE During any period that any Utility Easement Owner Parties are maintaining or repairing the Sanitary Sewer Facilities under the GRANTOR Property, APN 841-10-009 & 841-10-032, the Utility Easement Owner shall obtain and maintain a commercial general liability insurance policy insuring both the Utility Easement Owner and the GRANTOR against claims arising from the activities of the Utility Easement Owner Parties. Such insurance shall be in an amount of not less than $2,000,000 per occurrence for bodily injury, death, and property damage. Environmental liability insurance or pollution liability may also be required if hazardous materials are encountered during the work. 4. INDEMNIFICATION The Utility Easement Owner shall indemnify, defend, protect, and hold the GRANTOR and the GRANTOR Parties harmless from and against all claims, liabilities, damages, and expenses (including reasonable attorneys’ fees) arising from the Utility Easement Owner’s use of the Easement Area, except to the extent caused by the negligence or wrongful acts of the GRANTOR Parties. 5.2 p. 35 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) 5. MECHANIC'S LIENS The Utility Easement Owner shall keep the GRANTOR Property, APN 841-10-009 & 841-10- 032, and Easement Area free of any mechanics’ or materialmen’s liens arising from work performed by the Utility Easement Owner Parties. If such liens arise, the Utility Easement Owner shall remove or bond against such liens within twenty (20) calendar days of notification. 6. COVENANTS TO RUN WITH THE LAND The Utility Easement shall run with the land and bind the successors and assigns of the GRANTOR and the Utility Easement Owner. 7. DISPUTE RESOLUTION In the event of any dispute or disagreement between the Parties regarding this Agreement, the Parties shall first attempt to resolve the matter through good faith negotiations. If the dispute remains unresolved, either Party may refer the dispute to mediation before pursuing litigation or other legal remedies. If mediation is unsuccessful, the Parties may proceed to litigation. 8. TERMINATION AND MODIFICATION This Easement shall remain in effect in perpetuity unless the Sanitary Sewer Facilities are no longer in use or are permanently rerouted. In such cases, the Parties may terminate or modify the easement through mutual written agreement. If the easement is terminated, the GRANTEE shall remove any above-ground structures and restore the GRANTOR Property, APN 841-10- 009 & 841-10-032, to its original condition unless otherwise agreed upon. 9. ENVIRONMENTAL HAZARDS In the event that hazardous materials, contaminated soil, or any environmental issues are encountered during the installation, maintenance, or repair of the Sanitary Sewer Facilities, the Utility Easement Owner shall immediately notify the GRANTOR and take appropriate steps to mitigate the hazard. Any necessary environmental cleanup shall be the responsibility of the Utility Easement Owner, and environmental liability insurance coverage shall be maintained to cover any such occurrences. 10. MISCELLANEOUS 10.1 Notices. Any notice required hereunder shall be deemed delivered if sent by registered or certified mail to the following addresses: CITY OF GILROY 5.2 p. 36 of 194 7351 Rosanna Street, Gilroy, CA 95020 Attn: Director of Public Works/City Engineer CITY OF MORGAN HILL 17575 Peak Avenue, Morgan Hill, CA 95037 Attn: Legal Department 5.2 p. 37 of 194 Utility Easement Agreement (Sanitary Sewer Trunk Line) 11. IN WITNESS WHEREOF IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first written herein below. CITY: CITY OF MORGAN HILL A Municipal Corporation BY: Christina Turner Title: City Manager Date: GRANTOR: CITY OF GILROY A Municipal Corporation BY: Jimmy Forbis Title: City Administrator Date: APPROVED AS TO FORM: BY: Donald Larkin Title: City Attorney Date: BY: Andy Faber Title: City Attorney Date: 5.2 p. 38 of 194 EXHIBIT “A” SANITARY SEWER EASEMENT February 5, 2024 HMH 4897.00.272 Page 1 of 1 REAL PROPERTY in the City of Gilroy, County of Santa Clara, State of California, being a portion of Parcel One as shown on that certain Parcel Map filed for record on December 8, 2004, in Book 778 of Maps, page 35, Santa Clara County Records, described as follows: COMMENCING at southerly terminus of that certain course shown as “South 19°34'17" East, 65.96 feet, on the westerly line of said Parcel One as shown on said Map; Thence along said westerly line, North 19°35'08" West, 18.00 feet, to the TRUE POINT OF BEGINNING; Thence continuing along said westerly line, North 19°35'08" West, 15.00 feet; Thence North 70°40'36" East, 150.59 feet, to the westerly line of Highway 101; Thence along said westerly line, South 19°15'25" East, 15.00 feet; Thence South 70°40'36" West, 150.50 feet, to the TRUE POINT OF BEGINNING. Containing 2,258 square feet or 0.05 acres, more or less. As shown on Exhibit “B" attached hereto and made a part hereof. This legal description was prepared by me or under my direction in accordance with the Professional Land Surveyors Act. Date: 2-5-24 489700LD06 - SSE.docx 1570 Oakland Road | San Jose, California 95131 | (408) 487-2200 | (408) 487-2222 Fax | www.HMHca.com Tracy L. Giorgetti, LS 8720 5.2 p. 39 of 194 EAST 7TH STREET (S19°34' N19·35'S19°15'25"E 17"E 6 ----,5.oo· T""0T"" 37.5' I 37.5'><( - r-swIwAP(90::Ir-(f)r-(f)<(w 0 40 80 LEGEND POC POINT OF COMMENCEMENT 1 IN.=80 FT.TPOB TRUE POINT OF BEGINNING SHEET 1 OF 1 Date: 2024-02-05 Designed: Drown:RF Checked:TG Proi Engr.: 489700PL06 ._ _. 1570 Oakland Road (408) 487-2200 San Jose, CA 95131 HMHca.com EXHIBIT "B" PLAT TO ACCOMPANY DESCRIPTION: SANITARY SEWER EASEMENT CITY OF GILROY CALIFORNIA 5.2 p. 40 of 194 GRANTOR: CITY OF GILROY APN: 841-10-009/032 PROJECT NAME: SEWER RELIEF TRUNK LINE EXHIBIT C Grant of Sanitary Sewer Easement Page 9 of 9 PEasement Purchase Agreement for Gilroy - 1.25.23 -Draft.clh.doc 5.2 p. 41 of 194 RECORDING REQUESTED BY: CITY OF MORGAN HILL WHEN RECORDED MAIL DOCUMENT TO: CITY CLERK CITY OF MORGAN HILL 17575 PEAK AVENUE MORGAN HILL, CA 95037 RECORD AT NO FEE PER GOVERNMENT CODE SECTIONS 6103 & 27383 APN 841-10-009 & 841-10-032 SPACE ABOVE THIS LINE FOR RECORDER’S USE GRANT OF SANITARY SEWER EASEMENT City of Gilroy, as owners of the property APN 841-10-009 and 841-10-032 (Grantor), hereby grants to the City of Morgan Hill, a municipal corporation of the State of California (Grantee), a non-exclusive easement for sanitary sewer purposes over, under, and upon those certain areas of land, with the right to enter upon the easement at any time for inspection, installation, construction, repair and maintenance thereof, located within the easement area as described in Exhibit A and Exhibit B. These easements shall be kept open and free from buildings, and structures of any kind except public service structures, irrigation systems, and appurtenances thereto, and lawful fences. Executed the day and year first above written. GRANTOR: By: Name: Jimmy Forbis, City Administer Date: 5.2 p. 42 of 194 EXHIBIT D Benefitted Property 5.2 p. 43 of 194 June 21, 2021 HMH 4897.00.272 Page 1 of 1 SANITARY SEWER EASEMENT LEGAL DESCRIPTION REAL PROPERTY in the City of Gilroy, County of Santa Clara, State of California, being a portion of that parcel of land described in the Trust Transfer Deed recorded February 25, 2021, in Document No. 24846770 of Official Records, Santa Clara County Records, described as follows: COMMENCING at the southerly corner of said parcel of land, being on the easterly line of East Street; Thence along said easterly line, North 19° 19'24" West, 17.50 feet, to the TRUE POINT OF BEGINNING; Thence continuing along said easterly line, North 19°19'24" West, 15.00 feet; Thence North 70°40'36" East, 269.69 feet, to the easterly line of said parcel of land; Thence along said easterly line, South 19°35'08" East, 15.00 feet; Thence South 70°40'36" West, 269.76 feet, to the TRUE POINT OF BEGINNING. Containing 4,046 square feet or 0.09 acres, more or less. As shown on Exhibit "B" attached hereto and made a part hereof. This legal description was prepared by me or under my direction in accordance with the Professional Land Surveyors Act. Date: --￿6_'2._1 _2_, No. 8720 489700LD01 - SSE.docx Page 9 of 17 Property Purchase Agreement for Tsai -Final. doc -I IIVII I- 5.2 p. 44 of 194 I --, I- 0 30 60 DOC 24846770 1 IN.= 60 FT. EAST 7TH STREET I-I- LlJ N70"40'36"E 269.69' in S70"40'36"W 269.76' S19'35'08"E 15.00' (/) LlJ<{ Cl:'.LlJ 37.5'37.5' LEGEND POC POINT OF COMMENCEMENT TPOB lRUE POINT OF BEGINNING Oat"' 2021-06-21 D ood, ""Checked:TG 489700PL01 1570 Oakland Road (408) 487-2200 San Jose, CA 95131 HMHca.com SHEET 1 OF 1 PLAT TO ACCOMPANY DESCRIPTION: SANITARY SEWER EASEMENT CITY OF GILROY CALIFORNIA 5.2 p. 45 of 194 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the deed or grant dated _ from the City of Gilroy to the City of Morgan Hill, a governmental agency, is hereby accepted by order of the City Council by the undersigned officer or agent on behalf of the Council pursuant to authority conferred by Resolution No. of the Morgan Hill City Council adopted on , 2024, and the grantee consents to the recordation thereof by its duly authorized officer. Recommended for Approval Scott C. Creer, City Engineer City of Morgan Hill Christina J. Turner, City Manager Date: 2 January 2024 5.2 p. 46 of 194 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Santa Clara On 20 , before me, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SIGNATURE OF NOTARY PUBLIC (ABOVE AREA FOR NOTARY SEAL) State of California County of Santa Clara On 20 , before me, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SIGNATURE OF NOTARY PUBLIC (ABOVE AREA FOR NOTARY SEAL) 5 January 2024 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 5.2 p. 47 of 194 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Adopt a Resolution Approving a Third Time Extension for Tentative Map TM 16-02 Creating 14 Single-Family Residential Lots, Two Common Parcels, and One Public Park Parcel, Located at the Northerly Terminus of Greenfield Drive and South of Uvas Creek, APN 808-20-008 Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Community Development Submitted By:Sharon Goei, Community Development Director Prepared By:Cindy McCormick, Planning Manager STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Adopt a resolution approving a 12-month time extension of Tentative Map TM 16-02, without any changes to project approval, to subdivide 8.36 acres, creating 14 single- family residential lots, two common parcels, and one public park parcel, located at the northerly terminus of Greenfield Drive and south of Uvas Creek, APN 808-20-008. EXECUTIVE SUMMARY On November 5, 2018, the City Council approved the Greenfield 14-lot subdivision for an initial period of two years, through November 5, 2020. Legislative actions taken by the State and City further extended project approval through November 30, 2022. On February 27, 2023, the City Council approved a request for 12-month time extension of the approval, through November 30, 2023. On February 5, 2024, the City Council approved a request for an additional 12-month time extension of the approval, through November 30, 2024. The applicant has filed a third extension request in compliance with the State Subdivision Map Act. Pursuant to the provisions of State law, a project qualifies for an 5.3 p. 48 of 194 Adopt a Resolution Approving a Third Time Extension for Tentative Map TM 16-02 City of Gilroy City Council Page 2 of 4 December 9, 20241 8 1 3 extension of time under the same conditions and circumstances under which it was originally approved. No changes to conditions can be required except if necessary to comply with a provision of state or federal law. Approval of this request would extend the permit expiration date for TM 16-02 through to November 30, 2025. BACKGROUND The City Council approved TM 16-02 on November 5, 2018, for 14 single-family residential lots on 8.36 acres, via Resolution 2018-44. The approval included dedication of 3.7 acres as public park space, resulting in a net density of 3 units per acre, in compliance with the site’s low density residential land use designation. A mitigated negative declaration was also prepared and adopted for the project, with the mitigations incorporated into the project conditions of approval. The approval was granted for an initial period of two (2) years, through November 5, 2020. On June 1, 2020, the City Council extended the expiration periods for all active entitlements through May 31, 2021. This was in response to County and State Orders requiring business closures during the COVID-19 pandemic. On September 30, 2020, the state legislature enacted AB 1561 which granted an additional extension of 18 months to housing entitlements that were issued before March 4, 2020 and that would expire before December 31, 2021. This effectively extended the project approval through November 30, 2022. On November 30, 2022, the applicant filed a request for a 12-month extension of the tentative map and associated improvement plans. On February 27, 2023, the City Council approved the 12-month time extension, through November 30. 2023. On November 30, 2023, the applicant filed a request for another 12-month extension of the tentative map and associated improvement plans. On February 5, 2024, the City Council approved the 12-month time extension, through November 30, 2024. ANALYSIS On November 6, 2024, the applicant completed the submittal process for a third extension request in compliance with the State Subdivision Map Act. Staff has determined that approval of the extension is warranted based on the following: Municipal Code and Subdivision Map Act: The Subdivision Map Act, Government Code §66452.6(a), mandates an initial two-year life for a tentative map, which may be extended by local ordinance for an additional 12 months. Gilroy City Code Section 21.41(i) provides that the City Council, at its discretion, may extend approval of a tentative map for an additional 12 months. Moreover, Government Code §66452.6(e) provides that a local agency may extend a Tentative Map for an additional period or periods not to exceed six years. This provision preempts City regulations that limit the number of extensions to three years. Although granting an extension of the tentative map is discretionary, under Government Code §66452.6(e), the courts have held that the local agency’s discretion is limited to the length of the extension and that the local agency cannot add new conditions to the tentative map. Under Government Code 5.3 p. 49 of 194 Adopt a Resolution Approving a Third Time Extension for Tentative Map TM 16-02 City of Gilroy City Council Page 3 of 4 December 9, 20241 8 1 3 §66498.1, a local agency may condition or deny a permit, approval, extension, or entitlement only if it determines any of the following: (1) A failure to do so would place the residents of the subdivision or the immediate community, or both, in a condition dangerous to their health or safety, or both. (2) The condition or denial is required in order to comply with state or federal law. There are no known specific health or safety concerns at this time or identified with the original approval. No new or modified conditions are proposed, and staff is recommending approval of the requested extension. Furthermore, the Housing Accountability Act limits the ability of local government to deny a housing development. Government Code Section 65589.5(j) states that a “proposed housing development project cannot be denied if it complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the housing development project’s application is determined to be complete.” The request would extend approval through November 30, 2025. During this time, the applicant would need to pursue the process for recordation of a final map. ALTERNATIVES The City Council may deny the time extension. In this case, the City Council would need to make the necessary findings to deny a tentative map. Staff does not recommend this option. FISCAL IMPACT/FUNDING SOURCE No fiscal impacts are associated with this request for a tentative map approval extension. Collection of fees (as established by the City Council) is intended to cover the staff resources necessary to review the final map and improvement plans. PUBLIC OUTREACH Extensions are legislative actions that do not require notice and hearing. NEXT STEPS Upon grant of the extension request, the applicant may proceed with initiation of the final map process. Attachments: 5.3 p. 50 of 194 Adopt a Resolution Approving a Third Time Extension for Tentative Map TM 16-02 City of Gilroy City Council Page 4 of 4 December 9, 20241 8 1 3 1. Vicinity Map 2. Time Extension Request 3. City Council Resolution of Approval No. 2018-44 (TM16-02) 4. Approved Tentative Parcel Map Plans (TM 16-02) 5. Draft Resolution to Extend TM 16-02 5.3 p. 51 of 194 AERIAL PHOTOGRAPH AND SURROUNDING LAND USES FIGURE3AltaOakWayV il l ag e P la ceBrookWayBlackberry Court Berrybush Court Snowberry Ct WestLuchessaAvenueGreenfield Drive Cimino StreetAltaOakWayVillagePlace BrookWayBlackberry Court Berrybush Court Snowberry Ct WestLuchessaAvenueGreenfield Drive Cimino Street Thomas RoadThomas Road ResidentialGilroy High SchoolResidentialResidentialUvas CreekUvas CreekProject BoundaryAerial Source: Google Earth Pro, May 2, 2017. Photo Date: Apr. 20160 50 200 400 600 Feet 5.3 p. 52 of 194 City of Gilroy Planning Department October 30th, 2024 7351 Hanna Street Gilroy CA, 95020 RE: Request for second extension of Tentative Map # 16-02 To whom it may concern: We are formally requesting an extension of TM #16-02 for 12 months to allow processing of the final map and improvement plans. Please contact me directly if you need additional information and notify me when it is agendized for the City Council. Thank you, James Suner Owner/Developer Jamessuner@gmail.com 408-607-0777 5.3 p. 53 of 194 5.3 p. 54 of 194 5.3 p. 55 of 194 5.3 p. 56 of 194 5.3 p. 57 of 194 5.3 p. 58 of 194 5.3 p. 59 of 194 5.3 p. 60 of 194 5.3 p. 61 of 194 5.3 p. 62 of 194 5.3 p. 63 of 194 5.3 p. 64 of 194 5.3 p. 65 of 194 5.3 p. 66 of 194 5.3 p. 67 of 194 5.3 p. 68 of 194 5.3 p. 69 of 194 5.3 p. 70 of 194 5.3 p. 71 of 194 5.3 p. 72 of 194 5.3 p. 73 of 194 5.3 p. 74 of 194 5.3 p. 75 of 194 5.3 p. 76 of 194 5.3 p. 77 of 194 5.3 p. 78 of 194 5.3 p. 79 of 194 5.3 p. 80 of 194 5.3 p. 81 of 194 5.3 p. 82 of 194 5.3 p. 83 of 194 5.3 p. 84 of 194 5.3 p. 85 of 194 5.3 p. 86 of 194 5.3 p. 87 of 194 5.3 p. 88 of 194 5.3 p. 89 of 194 5.3 p. 90 of 194 5.3 p. 91 of 194 5.3 p. 92 of 194 5.3 p. 93 of 194 5.3 p. 94 of 194 2 1 4 4 RESOLUTION 2024-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING A THIRD TIME EXTENSION FOR TENTATIVE MAP (TM 16-02) CREATING 14 SINGLE- FAMILY RESIDENTIAL LOTS, TWO COMMON PARCELS, AND ONE PUBLIC PARK PARCEL, LOCATED AT THE NORTHERLY TERMINUS OF GREENFIELD DRIVE AND SOUTH OF UVAS CREEK, APN 808-20-008 WHEREAS, in 2016, James Suner submitted an application requesting tentative map approval to subdivide an 8.36 acre site into 14 single-family lots, two common lots containing private roadways and stormwater detention, a 3.7 acre public park parcel to be dedicated as an extension of Uvas Creek Park Preserve open space, and associated public and private improvements within the R1 single-family zone district; and WHEREAS, the subject property (Assessor’s Parcel Number 808-20-008) is located at the northern end of Greenfield Drive, south of Uvas Creek and adjacent to the Glen Loma Ranch Specific Plan Area development; and WHEREAS, on November 5, 2018, the City Council of the City of Gilroy by Resolution No 2018-44 adopted a mitigated negative declaration and approved Tentative Map Application TM 16-02 for an initial period of two years, subject to 131 conditions (inclusive of CEQA mitigation measures); and WHEREAS, on June 1, 2020, the City Council adopted Resolution No. 2020-33 extending the expiration date through May 31, 2021, of all tentative maps, architectural and site permits, and planned unit development approvals that were active during the COVID 19 shelter in place order; and WHEREAS, on September 29, 2020 Assembly Bill No. 1561 Chapter 195 was enacted to amend Section 65583 and to add Section 65914.5 to the Government Code relating to land use, to extend by 18 months the period for the expiration of a housing entitlement that was issued before, and was in effect on, March 4, 2020, and that will expire before December 31, 2021; and WHEREAS, legislative extensions granted by the State and City Council extended approval of TM 16-02 through November 30, 2022; and WHEREAS, On November 30, 2022, James Suner submitted a request to further extend the expiration date of Tentative Map TM 16-02; and WHEREAS, On February 27, 2023, the City Council extended the approval of TM 16-02 for another 12-months, through November 30, 2023, subject to the approved plans and all conditions of approval and mitigation measures in City Council Resolution 2018-44; and 5.3 p. 95 of 194 2 1 4 4 WHEREAS, On February 5, 2024, the City Council extended the approval of TM 16-02 for another 12-months, through November 30, 2024, subject to the approved plans and all conditions of approval and mitigation measures in City Council Resolution 2018-44; and WHEREAS, On November 6, 2024, James Suner completed the submittal process for a third request to extend the expiration date of Tentative Map TM 16-02; and WHEREAS, On December 9, 2024, the City Council considered the third request to extend the expiration date of Tentative Map TM 16-02 through November 30, 2025, subject to the approved plans and all conditions of approval and mitigation measures in City Council Resolution 2018-44; and WHEREAS the location and custodian of the documents or other materials that constitute the record of proceedings of TM 16-02 and all associated plans, CEQA documents, approved entitlements, and time extension requests is the office of the City Clerk. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF GILROY HEREBY APPROVES A 12-MONTH TIME EXTENSION OF TIME FOR TM 16-02, THROUGH NOVEMBER 30, 2025. APPROVAL OF THE TM 16-02 TIME EXTENSION SHALL BE SUBJECT TO THE APPROVED PLANS AND ALL CONDITIONS OF APPROVAL AND MITIGATION MEASURES APPLIED TO THE PROJECT BY CITY COUNCIL RESOLUTION 2018-44, WHICH ARE INCORPORATED BY REFERENCE HEREIN. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 9th day of December 2024 by the following roll call vote: AYES:COUNCIL MEMBERS: NOES:COUNCIL MEMBERS: ABSTAIN:COUNCIL MEMBERS: ABSENT:COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: _______________________ Beth Minor, Interim City Clerk 5.3 p. 96 of 194 Page 1 of 8 City of Gilroy STAFF REPORT Agenda Item Title:Receive Budget Report for the First Quarter of Fiscal Year 2024-2025 (FY25) Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Finance Submitted By:Harjot Sangha, Finance Director Prepared By:Carina Baksa, Finance Manager STRATEGIC PLAN GOALS Develop a Financially Resilient Organization RECOMMENDATION Receive Budget Report for the First Quarter of Fiscal Year 2024-2025 (FY25) EXECUTIVE SUMMARY This report provides the City Council with an update on FY25 as of the end of the First Quarter on September 30, 2024. BACKGROUND The FY25 budget was adopted on June 5, 2023 as part of the City’s Biennial Budget process. Activity for FY25 began on July 1, 2024. The City has completed the first quarter of operations for FY25, and this report provides a financial summary of such activity for the period of July 1, 2024 through September 30, 2024. ANALYSIS General Fund Revenues 5.4 p. 97 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 2 of 8 December 9, 2024 General Fund revenues received for the first quarter of FY25 total $6.9 million. This is approximately 10% of the amended budget of $69.7 million. Revenues received up to this point are typically under the 25% fiscal-year mark, especially tax revenues, due to the lag between when the economic transaction occurs and when the City’s revenues are received. The table below provides a breakdown of General Fund Revenues by category and a comparison of the actual revenues to the amended budget. Sales Tax - The City receives its sales tax revenue approximately two months after funds are collected by the California Department of Tax and Fee Administration. The FY25 budget for sales tax revenue is $22.4 million of which $1.6 million (7%) has been received as of September 30, 2024. Receipts reflect collections for the month of July 2024. Based on the latest quarterly sales tax report, the City’s sales tax revenue for FY25 is expected to come in under budget by approximately $0.7 million. Staff included this downward adjustment to the Sales Tax budget for FY25 as part of the comprehensive mid-cycle adjustments approved by the City Council on November 18, 2024, and will be reflected in future quarterly reports. Property Tax - The City’s property tax revenues are received in various intervals from Santa Clara County and are not distributed in even amounts. Property tax installments are typically due in November and April of each fiscal year. The FY25 budget for property tax revenue is $21.3 million of which $0.1 million (1%) has been received as of September 30, 2024. Much of the annual property tax revenue is received in the second half of the fiscal year, including the annual ERAF payment. Based on the September update from the County Assessor’s Office, property tax revenue is currently trending to come in at budgeted levels. Utility Users Tax (UUT) - Utility taxes are assessed against the value of energy and telecommunications, such as gas, electricity, steam, cable, and phone charges. The current tax rates are 4.5% for telecommunications and 5% for gas and electricity. The City’s UUT revenues are received one month after the revenues are earned. The FY25 budget for utility user tax is $6.7 million of which $1.4 million (21%) has been received as of September 30, 2024. Receipts to date represent revenue through the month of General Fund Revenues by Category FY25 Amended Budget FY25 Q1 Actuals % of Budget Sales Tax 22.4$ 1.6$ 7% Property Tax 21.3 0.1 1% Utility User Tax 6.7 1.4 21% Franchise Tax 2.4 0.2 8% Transient Occupancy Tax 2.0 0.0 0% Business License 0.7 0.2 33% Other Revenues 14.1 3.3 23% Total 69.7$ 6.9$ 10% (In Millions) 5.4 p. 98 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 3 of 8 December 9, 2024 August. Franchise Tax - The City receives franchise tax revenue from three franchise types, including gas and electric, cable tv, and garbage/refuse. The FY25 budget for franchise tax is $2.4 million of which $0.2 million (8%) has been received as of September 30, 2024, which primarily reflects quarterly cable franchise payments only. The larger portion of franchise tax comes from PG&E, which remits payments once a year and is typically received in the fourth quarter of the fiscal year. Transient Occupancy Tax (TOT) - The City’s TOT revenue comes from a 9% tax on hotel room rentals under 30 days, as well as from some of the RV parks in the City. The hotels pay within one month after their quarter ends; thus no TOT revenue is reported as of September 30, 2024. Payments for the first quarter were received subsequently and will be reported in future quarterly reports. Business License - The FY25 budget for Business License fees is $0.7 million of which $0.2 million (33%) has been received as of September 30, 2024. The business license revenue is tied to the timing of the annual renewal of the license and any new business licenses issued. The City is currently engaged in an outreach campaign to businesses that are out of compliance with the Business License requirements to bring them into compliance. As a result of this outreach campaign, it is anticipated that Business License revenue will come in higher than budget. A related adjustment was included in the mid-cycle adjustments approved on November 18, 2024, and will be reflected in the budget in future quarterly reports. Other General Fund revenues - This category comprises departmental service charges, general administration charges, fines and forfeitures, and other intergovernmental revenues. The FY25 budget for this aggregate revenue category is $14.1 million of which $3.3 million (23%) has been received as of September 30, 2024. At this time, this revenue is expected to come in as budgeted. Expenditures General Fund expenditures for the first quarter of FY25 total $17.1 million. This is approximately 23% of the amended budget of $75.6 million. The table below provides a breakdown by department and function comparing the actual expenditures for the first quarter to the amended budget. Generally, departments are within or below their expenditure target for the first quarter of the fiscal year. 5.4 p. 99 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 4 of 8 December 9, 2024 Non-General Fund Revenues The City has approximately 60 non-general funds. The information (revenues and expenditures) for these funds is presented in the table below in aggregate, by fund type, along with a brief description of what is included in these categories. Non-General Fund revenues received as of September 30, 2024, total $18.3 million or 16% of the amended budget of $115.7 million. Revenues received up to this point are usually under the 25% fiscal-year mark due to the timing of receipts, especially for special revenue and capital/development funds. General Fund Expenditures by Department/Function FY25 Amended Budget FY25 Q1 Actuals % of Budget Administration 4.5$ 0.8$ 17% Recreation Transfer 1.5 0.4 25% Other Transfers 1.0 0.2 25% Human Resources 1.8 0.3 19% Community Development 6.1 1.3 21% Finance 1.3 0.3 22% Fire 14.7 4.0 27% Other General Government 2.5 0.6 23% Police 32.6 8.0 25% Public Works 9.7 1.2 13% Total 75.6$ 17.1$ 23% (In Millions) Non-General Fund Revenues by Fund Type FY25 Amended Budget FY25 Q1 Actuals % of Budget Special Revenue 13.0$ 1.0$ 8% Recreation 2.3 0.7 28% Capital/Development 44.7 3.0 7% Debt Service 5.0 0.8 15% Internal Service 19.5 3.7 19% Sewer 16.4 4.5 27% Water 14.8 4.7 32% Total 115.7$ 18.3$ 16% (In Millions) 5.4 p. 100 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 5 of 8 December 9, 2024 Special Revenues – The primary source of this fund type is intergovernmental funds in the manner of tax sharing or grants from Federal, State, County, and other regional governments. For the City of Gilroy, these Special Revenues provide funding for transportation (Gas Taxes, Vehicle Registration, and Measure B), public safety (Proposition 172 sales tax, Gang Prevention, and regional task forces), and community development (CDBG and housing) among others. The FY25 budget for Special Revenues is $13.0 million of which $1.0 million (8%) has been received as of September 30, 2024. Recreation – The Recreation Fund receives an annual allocation of $1.5 million from the General Fund in addition to the revenues it acquires from charges for services or grants related to recreation programs. The services provided by Recreation are seasonal, typically most active during spring and summer. The FY25 budget for Recreation revenue is $2.3 million of which $0.7 million (28%) has been received as of September 30, 2024. Capital/Development Impact Funds – Revenues in the Capital and Development Impact Funds are primarily generated by new development approvals and the required contributions to offset infrastructure impacts. Revenue depends on the size and impact of the development and the timing of the project; therefore, revenue is not evenly distributed throughout the fiscal year. The FY25 budget for Capital/Development Funds revenue is $44.7 million of which $3.0 million (7%) has been received as of September 30, 2024. In discussion with the Public Works Department, large development projects anticipated in FY25 have not commenced yet. Staff will reevaluate these projects and timelines and report any updates in future quarterly reports as needed. Debt Service - Debt Service funds receive their revenue from annual property tax levies and/or via interfund transfers from other funds and are typically aligned with the timing of the debt service payment. The FY25 Q1 amounts primarily reflect the interfund transfers. The property tax levies for the Library Bond debt service are received similar to the General Fund property tax distribution, majority of it in Q2 through Q4. Internal Service – Internal Service Funds (Information Technology (IT), Fleet, Facilities, Worker’s Compensation, and Liability Funds) primarily receive their revenue from charges to other departments and funds in the City. These charges are assessed based on the budget and it is expected that the full budgeted amount will be received. Sewer – The FY25 budget for Sewer revenue is $16.4 million of which $4.5 million (27%) has been received as of September 30, 2024. The Sewer Fund is tracking slightly above for the period. The Sewer Enterprise Fund generates its revenue from utility user charges. At this time, it is expected the revenue will come in at budget. Water – The FY25 budget for Water revenue is $14.8 million of which $4.7 million (32%) has been received as of September 30, 2024. The Water Fund is tracking above for the period. Like the Sewer Fund, the Water Fund generates its revenues from utility user charges. 5.4 p. 101 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 6 of 8 December 9, 2024 Expenditures Non-General Funds expenditures as of September 30, 2024 total $17.8 million, or 13% of the amended budget of $136.8 million. The table below presents the Non-General Fund expenditures by Fund Type. Special Revenues – The primary expenditures in this fund type are for roads and sidewalk infrastructure, followed by grant related expenditures for the Police Department. As of September 30, 2024, expenditures are at $0.8 million (6%) of the budgeted amount of $14.0 million. Road and infrastructure capital projects typically begin after the winter/rainy season. Therefore, staff expects funds to be encumbered and expenditures to occur in the third and fourth quarter of the fiscal year. Recreation – As of September 30, 2024, expenditures are at $0.5 million (22%) of the budgeted amount of $2.2 million. The services provided by Recreation are seasonal, typically most active during spring and the summer. Capital/Development – As of September 30, 2024, expenditures are at $2.8 million (7%) of the budgeted amount of $37.7 million. The below target spending is primarily in the capital outlay. Several capital projects are currently in their design phases and the subsequent construction phase, the larger expenditure category, typically begins after the winter/rainy season, therefore staff expects funds to be encumbered and expended in the third and fourth quarters of the fiscal year. Debt Service – As of September 30, 2024, expenditures are at $0.4 million (7%) of the budgeted amount of $4.9 million. The debt service payments typically include semiannual interest payments, and one annual principal payment. Internal Services - As of September 30, 2024, expenditures are at $5.1 million (25%) of the budgeted amount of $20.2 million. The City’s internal services funds are IT, Fleet, Non-General Fund Expenditures by Fund Type FY25 Amended Budget FY25 Q1 Actuals % of Budget Special Revenue 14.0$ 0.8$ 6% Recreation 2.2 0.5 22% Capital/Development 37.7 2.8 7% Debt Service 4.9 0.4 7% Internal Service 20.2 5.1 25% Sewer 22.7 4.7 21% Water 35.0 3.5 10% Total 136.8$ 17.8$ 13% (In Millions) 5.4 p. 102 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 7 of 8 December 9, 2024 Facilities, Equipment Outlay, Worker’s Compensation, and Liability Funds. Sewer – As of September 30, 2024, expenditures are at $4.7 million (21%) of the budgeted amount of $22.7 million. Approximately $9.6 million of this budget is related to the operations of the South County Regional Wastewater Authority and the Plant’s Expansion project which is currently under construction. Water – As of September 30, 2024, expenditures are at $3.5 million (10%) of the budgeted amount of $35.0 million. Approximately $17.5 million of this budget is related to capital outlay projects, several of which are currently in their design phases. Upcoming Budget Development Cycle In January 2025, the City will commence its biennial budget development process for FY26 and FY27. The City’s fiscal year is from July 1 through June 30. The City prepares and adopts a budget for two fiscal years at a time. Below is an infographic that outlines the City’s budget development cycle. The budget development process commences in January of the calendar year with the City Council’s Strategic Planning workshop. During the workshop, the City Council will receive a comprehensive update on the City’s fiscal health, forecast of the major revenue sources, and review the existing priorities, and make adjustments as deemed necessary. Based on the Council and community’s identified priorities, the City Administrator tasks the Departments to prepare budgets that align with the identified strategic priorities. The recommended budget is developed and made available by April, followed by several workshops with the City Council and the community. The budget adoption public hearing is held at the first meeting of June. 5.4 p. 103 of 194 Receive Fiscal Year 2024-25 Quarterly Budget Update as of September 30, 2024 City of Gilroy City Council Page 8 of 8 December 9, 2024 ALTERNATIVES There are no recommended alternatives to the First Quarter Budget Report for FY25. FISCAL IMPACT/FUNDING SOURCE There are no fiscal impacts as this is a report and no budgetary action is proposed. Preparation of the quarterly budget update reports are an annual workplan item for the Finance Department. 5.4 p. 104 of 194 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2023-2024 as Required under Government Code 66000 Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Finance Submitted By:Harjot Sangha, Finance Director Prepared By:Rosemary Guerrero, Finance Manager STRATEGIC PLAN GOALS Develop a Financially Resilient Organization RECOMMENDATION Accept and file the annual development impact fee report for Fiscal Year 2023-2024 (FY24). EXECUTIVE SUMMARY In accordance with the Mitigation Fee Act (Act), Government Code 66000 et seq., the City must annually review and make a public report on development impact fees. As such, the attached report is prepared and made available in accordance with the required provisions of the State law. BACKGROUND The Mitigation Fee Act, Government Code 66000 et seq., (adopted as AB 1600 and commonly referred to as “AB 1600 requirements”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. Fees must be separately accounted for and used for the specific purpose for which the fee was established and imposed. The City’s adopted development impact fees are 5.5 p. 105 of 194 Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2023-2024 as Required under Government Code 66000 City of Gilroy City Council Page 2 of 2 December 9, 2024 listed on page 7 of the attachment. Expenditures are authorized by Council through annual capital and operating budgets and committed via the City’s five-year capital improvement program. ANALYSIS This report is for information purposes only. The establishment of fees and expending of fee-generated revenue occurs in separate Council actions. The revenues and expenditures for FY24 (July 1, 2023, through June 30, 2024) are noted on each impact fee fund’s respective statement in the attached report. FISCAL IMPACT/FUNDING SOURCE This report has no direct fiscal impacts as this report only provides information describing each development impact fee and a list of revenues, expenditures, and fund balance for each impact fee fund. The preparation of this report is an annual workplan item of the Finance Department. Attachments: 1. Gilroy Impact Fee Report Fiscal Year 2023-2024 5.5 p. 106 of 194 Account FY2024 FUND 410 - Storm Drain Development Impact Fee Number AB 1600 Revenues Storm Drain Development Impact Fees 4105500 45150 35,053$ Bank Interest 4105500 46110 66,713$ Transfer from General Fund 4105500 48110 13,174 Total Revenues 114,939$ Expenditures Contractual Services 4105500 51630 4,867 CIP - Monterey/Luchessa Storm Drain 4105500 53142 1,375 CIP - Cohansey Ave/Terri Court Storm Drain.4105500 53142 67 Overhead Expenses 4105500 54150 730 Total Expenditures 7,038$ Revenues Less Expenditures 107,901$ Fund Balance as of June 30, 2023 2,156,826 Fund Balance as of June 30, 2024 2,264,727$ Relationship between and purpose for which fee is charged: Storm Drain Impact Fee charges are as follows: Residential - Low Density $616/acre Residential - High Density $968/acre Commercial $1,670/acre Commercial-Assembly Hall $616/acre Industrial $1,233/acre City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 Fees are to finance the construction of drainage collection and conveyance systems in conformance with the Gilroy Storm Drain Master Plan in order to accommodate development of new residential, commercial, and industrial uses as well as expand system capacity. Projects are identified and undertaken in compliance with updated and approved master plans based on population projections, the General Plan policies, land use needs, and other standards approved by the City Council. 5.5 p. 107 of 194 Account FY2024 FUND 420 - Street Tree Development Impact Fee Number AB 1600 Revenues Street Tree Development Impact Fees 4205500 45150 21,031$ Bank Interest 4205500 46110 7,674 Transfer from General Fund 4205500 48110 54 Total Revenues 28,760$ Expenditures Overhead Expenses 238 Total Expenditures 238$ Revenues Less Expenditures 28,522$ Fund Balance as of June 30, 2023 150,453 Fund Balance as of June 30, 2024 178,974$ Relationship between and purpose for which fee is charged: Street Trees Impact Fee charges are as follows: City Planting and Replacement $3.79/ff City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 The Street Tree Development Impact Fund collects a front footage fee to plant trees in new developments. 5.5 p. 108 of 194 Account FY2024 FUND 425 - Traffic Impact Fee Number AB 1600 Revenues Traffic Impact Fees 4255500 45150 2,242,914$ Bank Interest 4255500 46110 770,550 Transfer from General Fund 4255500 48110 97,538 Total Revenues 3,111,002$ Expenditures Contractual Services 4255500 51630 179,897 CIP - Tenth at Uvas Creek Bridge 4255500 53142 68,511 CIP - First & Kern 4255500 53142 111,138 CIP - Luchessa/Church Signal 4255500 53142 29,549 CIP - Monterey/IOOF Signal 4255500 53142 29,695 CIP - Mantelli/Kern Traffic Signal 4255500 53142 3,546 CIP - Automall/Luchessa Signal 4255500 53142 3,026 CIP - Gilroy Ice Center 4255500 53142 19,300 CIP - Girloy Signals 4255500 53142 56,866 CIP - Roundabout @ Santa Teresa Blvd/Ballybunion 4255500 53135 2,336,800 Overhead Charges 4255500 54150 9,497 Total Expenditures 2,847,825$ Revenues Less Expenditures 263,176$ Fund Balance as of June 30, 2023 17,264,934 Fund Balance as of June 30, 2024 17,528,110$ Relationship between and purpose for which fee is charged: Traffic Impact Fee charges are as follows: Residential - Low Density $13,402/unit Residential - High Density $10,548/unit Commercial - Low Traffic $14,829/ksf Commercial - High Traffic $29,954/ksf Industrial - General $5,876/ksf Industrial - Warehouse $4,259/ksf City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 Fees are to finance the construction of streets, bridges, interchanges and traffic signals as identified in the City's General Plan Circulation Element to accommodate development of new residential, commercial, and industrial uses for the purpose of expanding transportation system capacity. Projects are completed in conformance with approved master plans based on the General Plan, population projections, land use, and other standards approved by the City Council. 5.5 p. 109 of 194 Account FY2024 FUND 430 - Sewer Development Impact Fee Number AB 1600 Revenues Sewer Development Impact Fees 4305500 45150 2,178,317$ Bank Interest 4305500 46110 704,397 Transfer from General Fund 4305500 48110 61,809 Total Revenues 2,944,523$ Expenditures Contractual Services 4305500 51630 4,867$ CIP - Carmel-Dowdy Alley Sewer Line 4305500 53142 2,578$ CIP - Seventh St Sewer Line 4305500 53142 2,195$ Interfund Transfer Out 4305500 54110 2,244,000 Overhead Expenses 4305500 54150 801 Total Expenditures 2,254,441$ Revenues Less Expenditures 690,082$ Fund Balance as of June 30, 2023 15,895,458 Fund Balance as of June 30, 2024 16,585,540$ Relationship between and purpose for which fee is charged: Sewer Development Impact Fee charges are as follows: Residential - Low Density $13,660/unit Residential - High Density $7,391/unit Commercial $4,323/cgpd Industrial $4,323/cgpd City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 Fees are to finance the construction of expanded sewer collection, treatment and conveyance systems as identified in the Sewer Master Plan in order to accommodate development of new residential, commercial, and industrial uses based on standards adopted by the City Council. 5.5 p. 110 of 194 Account FY2024 FUND 435 - Water Development Impact Fee Number AB 1600 Revenues Water Development Impact Fees 4355500 45150 697,174$ Bank Interest 4355500 46110 296,672 Transfer from General Fund 4355500 48110 11,786 Total Revenues 1,005,632$ Expenditures Contractual Services 4355500 51630 4,867 CIP - McCarthy Well Project 4355500 53142 10,679 Overhead Expenses 4355500 54150 945 Total Expenditures 16,491$ Revenues Less Expenditures 989,141$ Fund Balance as of June 30, 2023 6,168,777 Fund Balance as of June 30, 2024 7,157,919$ Relationship between and purpose for which fee is charged: Water Development Impact Fee charges are as follows: Residential - Low Density $4,693/unit Residential - High Density $1,898/unit Commercial $7,355/kgpd Industrial $7,355/kgpd City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 Fees are to finance the construction of improvements and expansion of water production, transmission, distribution and storage systems within Pressure Zone 1 as described in the Water Master Plan. This includes costs necessary to accommodate the capacity requirements of new residential, commercial and industrial uses and in accordance with the General Plan, population increase projections and other standards established by the City Council. 5.5 p. 111 of 194 Account FY2024 FUND 440 - Public Facilities Impact Fee Number AB 1600 Revenues Public Facilities Impact Fees 4405500 45150 3,937,764$ Bank Interest 4405500 46110 100,175 Misc Revenues 4405500 47810 112,500 Interfund Transfer In 4405500 48110 81,526 Total Revenues 4,231,964$ Expenditures Contractual Services 4405500 51630 40,264 CIP - Gilroy Ice Center 4405500 53142 431,569 Interfund Transfer Out 4405500 54110 3,012,813 Overhead Charges 4405500 54150 15,532 Total Expenditures 3,500,178$ Revenues Less Expenditures 731,786$ Fund Balance as of June 30, 2023*(1,050,415) Fund Balance as of June 30, 2024* (318,629)$ Relationship between and purpose for which fee is charged: Public Facility Impact charges are as follows: Residential - Low Density $23,296/unit Residential - High Density $19,599/unit Commercial $3,510/ksf Industrial $1,555/ksf City of Gilroy Impact Fee Revenues and Expenditures For Fiscal Year 2023-2024 Fees are to finance the construction of parks, police, fire, library, and other recreational facilities as identified in the Public Facilities Master Plan based on the need to expand City facility capacity to accommodate new development and pursuant to standards approved by the City Council. *Note that in 2008 the City purchased the Gilroy Gardens Property for $13.7 million, of which there is a remaining balance of approximately $3.3 million at June 30, 2024. The loan is expected to be fully repaid by June 30, 2028. The Fund Balance above includes the remaining loan payable amount. This amount is shown as a liability, resulting in the negative balance stated above. The actual cash balance in the fund at June 30, 2024, is $3.0 million. 5.5 p. 112 of 194 FUND 410 - Storm Drain Development Impact Fee Residential - Low Density $616/acre Residential - High Density $968/acre Commercial $1,670/acre Commercial-Assembly Hall $616/acre Industrial $1,233/acre FUND 420 - Street Tree Development Impact Fee City Planting and Replacement $3.79/ff FUND 425 - Traffic Impact Fee Residential - Low Density $13,402/unit Residential - High Density $10,548/unit Commercial - Low Traffic $14,829/ksf Commercial - High Traffic $29,954/ksf Industrial - General $5,876/ksf Industrial - Warehouse $4,259/ksf FUND 430 - Sewer Development Impact Fee Residential - Low Density $13,660/unit Residential - High Density $7,391/unit Commercial $4,323/cgpd Industrial $4,323/cgpd FUND 435 - Water Development Impact Fee Residential - Low Density $4,693/unit Residential - High Density $1,898/unit Commercial $7,355/kgpd Industrial $7,355/kgpd FUND 440 - Public Facilities Impact Fee Residential - Low Density $23,296/unit Residential - High Density $19,599/unit Commercial $3,510/ksf Industrial $1,555/ksf City of Gilroy Impact Fee Schedule Summary For Fiscal Year 2023-2024 5.5 p. 113 of 194 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Approval of a Notice of Acceptance of Completion for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288 and Approval of a Final Contract with McKim Corporation in the Amount of $4,361,339.19 Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Public Works Submitted By:Daniel Padilla, City Engineer Prepared By:Julie Oates, Engineer II STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure RECOMMENDATION a) Approve a Notice of Acceptance of Completion for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288. b) Approve a final contract in the amount of $4,361,339.19 with McKim Corporation for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288. EXECUTIVE SUMMARY The Public Works Department has completed construction of the FY24 Citywide Pavement Rehabilitation Project (Project) and has reviewed and approved all Project documentation. The Project scope of work included preventive maintenance and rehabilitation of 60 street segments and four alleys, pavement striping and markings, and associated work. The street segments were selected based on the City’s Pavement Management Program, StreetSaver, which evaluates and prioritizes maintenance of the City’s overall road network. Staff recommends the City Council approve the Notice of Acceptance of Completion and approve a final contract in the amount of $4,361,339.19 with McKim Corporation for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288. 5.6 p. 114 of 194 Approval of a Notice of Acceptance of Completion for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288 and Approval of a Final Contract with McKim Corporation in the Amount of $4,361,339.19 City of Gilroy City Council Page 2 of 3 December 9, 2024 BACKGROUND The City of Gilroy Fiscal Year 2024 to Fiscal Year 2028 Capital Improvement Program (FY24-FY28 CIP) was adopted by the City Council on June 5, 2023. The FY24 Citywide Pavement Rehabilitation Project is included in the FY24-FY28 CIP as Project #800060. On April 15, 2024, the City Council awarded a construction contract for the Project to McKim Corporation in the amount of $3,899,534.55 with a project contingency of $583,061.45 (15%) for a total allocation of $4,482,596.00 and authorized the City Administrator to execute the contract and associated documents. ANALYSIS The Project scope of work included preventive maintenance and rehabilitation of 60 street segments and four alleys, pavement striping and markings, and associated work. Construction change orders resulted in a net increase of $461,804.64 to the contract amount. The pavement treatments included grind and overlay, cape seal, slurry seal, and microsurfacing. Contract work was performed between May 1 and September 23, 2024. Following completion of change order work, the Project was deemed Substantially Complete on November 22, 2024. Project documentation has been completed and all punch list items have been addressed by the contractor. Staff recommends the City Council approve the Notice of Acceptance of Completion and the final contract in the amount of $4,361,339.19 with McKim Corporation for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288. FISCAL IMPACT/FUNDING SOURCE The Project’s final construction cost was $4,361,339.19 ($121,256.81 less than the total allocation of $4,482,596.00). The Project’s final funding sources are summarized below. Funding Source Amount Gas Taxes (205)$500,000.00 Road Funds SB1 (210)$1,482,596.00 Measure B (212)$900,000.00 General Fund (100)$1,478,743.19 Total $4,361,339.19 Attachments: 1. 24-PW-288 NOC 5.6 p. 115 of 194 Approval of a Notice of Acceptance of Completion for the FY24 Citywide Pavement Rehabilitation Project No. 24-PW-288 and Approval of a Final Contract with McKim Corporation in the Amount of $4,361,339.19 City of Gilroy City Council Page 3 of 3 December 9, 2024 5.6 p. 116 of 194 RECORDING REQUESTED BY: City of Gilroy WHEN RECORDED, MAIL TO: City Clerk’s Office City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) RECORD WITHOUT FEE UNDER SECTION 27383 GOVERNMENT CODE OF STATE OF CALIFORNIA Notice of Acceptance of Completion FY24 Citywide Pavement Rehabilitation Project Project No. 24-PW-288 McKim Corporation SEPARATE PAGE PURSUANT TO GOVT. CODE 27361.6 5.6 p. 117 of 194 NOTICE OF ACCEPTANCE OF COMPLETION NOTICE IS HEREBY GIVEN that, as of the 9th day of December, 2024, the City of Gilroy, California (“City”) has accepted as completed the work required to be performed under the following agreement (“Agreement”) by and between McKim Corporation (“Contractor”) and City: FY24 Citywide Pavement Rehabilitation Project Project No. 24-PW-288 McKim Corporation Project No.: 24-PW-288 Contractor Name: McKim Corporation Contractor Address: 8505 Church Street, Unit 1, Gilroy, CA 95020 Surety on Contract: Great Midwest Insurance Company Location of Project: Gilroy, California Description of Work: The work includes furnishing of all labor, materials, incidentals, and equipment necessary to perform pavement rehabilitation of various roads with pavement milling, asphalt overlay, slurry seal, microsurfacing, and rubberized cape seal; associated concrete flatwork; adjustment of utilities to grade; pavement striping and markings; installation of roadside signs; replacement of traffic signal loops; and other Work as indicated in the Plans and Specifications. Interest of City: Owner in Fee Vendee under Agreement to Purchase Lessee Owner of Easements Holder of License X Owner of Streets Owner of Utilities, Water, Sewer, Storm Systems Owner's Name/Address: City of Gilroy, 7351 Rosanna Street, Gilroy, CA 95020 Work Done: See above, Description of Work This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned, being duly sworn, deposes and say: That I am an officer of the City of Gilroy, that I have read the foregoing Notice of Acceptance of Completion and know the contents thereof; and that the same is true of my own knowledge, except as to those matters that I believe to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California, on . CITY OF GILROY BY: Daniel Padilla TITLE: City Engineer 5.6 p. 118 of 194 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Approval of Memorandum of Understanding Side Letter with Gilroy AFSCME, Local 101 (General and Supervisory Units) Regarding Removal of the Cap on Playground Inspection Certifications as Required by CalPERS Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Administrative Services Submitted By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager Prepared By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Approve Memorandum of Understanding Side Letter with Gilroy AFSCME, Local 101 (General and Supervisory Units) Regarding Removal of the Cap on Playground Inspection Certifications as Required by CalPERS. EXECUTIVE SUMMARY At the end of 2023, the City was one of a group of agencies randomly selected to participate in a California Public Employees’ Retirement System (CalPERS) Office of Audit Services (OFAS) audit for FY 24. The specific audit topic to be reviewed was education incentive pay, and the goal was to determine whether public agencies reported education incentive pay in compliance with the Government Code for the period July 1, 2021 – June 30, 2023. BACKGROUND 5.7 p. 119 of 194 Approval of Memorandum of Understanding Side Letter with Gilroy AFSCME, Local 101 (General and Supervisory Units) Regarding a Cap on Playground Inspection Certifications as Required by CalPERS City of Gilroy City Council Page 2 of 3 December 9, 2024 Staff in Human Resources and Finance completed the audit process as required by CalPERS. CalPERS identified some corrections to be made in reporting. While all dollar amounts being reported to CalPERS qualified to be reported, the code under which some of the pays were reported needed to be updated. In addition, the cap on the group or class of employees eligible to receive education incentive pay for holding the Playground Inspection Certification needed to be removed in order to comply with CalPERS regulations. The AFSCME MOUs limited the number of employees who could receive certificate pay for holding the Playground Inspection Certification (maximum of three employees) and this cap is not allowable under the Government Code. At this time, Gilroy has one employee receiving education incentive pay for holding the Playground Inspection Certification. The maximum number of employees who received this pay at any one time was two employees in the General Unit and one employee in the Supervisory Unit. The education incentive pay amount for holding this certification is $20.00 per month per the AFSCME MOUs. Staff does not expect that removal of the limitation of the number of employees who can receive education incentive pay for this particular certification will change the overall amount of education incentive pay paid out for this certification in any substantive way. Back in August 2024, the City and AFSCME agreed upon on a side letter to the Memoranda of Understanding for the General and Supervisory Units to remove the cap on the number of employees who can receive the $20 per month education incentive pay for holding the Playground Inspection Certification (see attached). Given that the cap removal did not have any fiscal impact, it was approved at the City Administrator level and the CalPERS Analyst staff was communicating with at the time accepted the side letter for audit compliance. Recently, however, a different CalPERS Analyst indicated that the side letter also needed City Council approval in open session in order to meet the audit requirements. As a result, staff is bringing the side letter to City Council for review and approval to close out this audit item. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact associated with this side letter approval as removing the cap has not increased the number of employees receiving education incentive pay above the prior cap of three (3) for holding a Playground Inspection Certification. As noted above, only one employee in the Parks & Landscape Section is receiving education incentive pay for holding the Playground Inspection Certification. NEXT STEPS Upon City Council approval of the side letter in an open session meeting, staff will provide the staff report and meeting minutes to CalPERS to close out this final audit item. Attachments: 5.7 p. 120 of 194 Approval of Memorandum of Understanding Side Letter with Gilroy AFSCME, Local 101 (General and Supervisory Units) Regarding a Cap on Playground Inspection Certifications as Required by CalPERS City of Gilroy City Council Page 3 of 3 December 9, 2024 1. Side Letter with AFSCME, Local 101 Regarding Removal of Cap on Playground Certifications 5.7 p. 121 of 194 1 AFSCME, LOCAL 101, GILROY CHAPTER GENERAL & SUPERVISORY UNIT MOUS SIDE LETTER AGREEMENT August 2024 Playground Inspection Certification Pay: The City of Gilroy recently completed a CalPERS audit process related to Educational Incentive Pay covering the period July 1, 2021 – June 30, 2023. A finding from the audit stated that there cannot be a limitation on the number of employees in the Parks & Landscape Section that can receive the Playground Inspection Certification Pay. The AFSCME General and Supervisory Unit MOUs covering the audit period limit this certification pay to up to three Parks & Landscape employees. Since all Maintenance Workers and Operations Services Supervisors assigned to the Parks & Landscape Section are in a group or class of employees, this pay needs to be equally available to all Maintenance Workers/Operations Services Supervisors assigned to the Parks & Landscape Section. Although there have never been more than three employees eligible to receive this pay and no employee has ever been denied this pay, the wording in the MOU needs to be in compliance with CalPERS regulations. Therefore, the wording limiting the pay to three employees must be removed going back to July 1, 2021. Therefore, the Parties agree as follows: This side letter is an amendment to the AFSCME General Unit MOU and AFSCME Supervisory Unit MOU dated July 1, 2021 – June 30, 2022 and July 1, 2022 – June 30, 2026. The parties have agreed to amend the below sections of the MOUs as follows effective immediately. The amendment is shown in yellow highlight and strikethrough font. This is the only change to the MOU authorized by this side letter. General Unit MOU (July 1, 2021 – June 30, 2022): ARTICLE V. SALARIES AND OTHER COMPENSATION Section M. Certificate/License Pay: Class A Driver's License Pay: Employees in Public Works 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. Certificate Pay for Employees in Parks & Landscape, Streets/Waste Water/Trees, or Water Section of Public Works Operations: For individuals employed on July 1, 2017, the City shall pay the following monthly amounts to individuals holding the following cet1ifications, regardless of Public Works Operations work location (Parks & Landscape, Streets/Waste Water/Trees, or Water), so long as the individual holds the certification on July 1, 2017 and continues to hold the certification without intem1ption: Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 122 of 194 2 • 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 N 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 (up to three (3) Parks & Landscape Maintenance Workers only) - $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: Parks & Landscape Section: • Pesticide Advisor $50.00 • AWWA Backflow Prevention Tester - $20.00 • Qualified Applicator's Certificate - $20.00 • Playground Inspection Certificate - $20.00 Streets/Waste Water/Trees 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 Water Section: • State of California Water Distribution Operator Ce11ifications: Grade I $50.00 Grade II $150.00 Grade III $250.00 Grade IV $300.00 Grade V $400.00 Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 123 of 194 3 • 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 Examples: 1. Employee A holds a Grade III WDO Ce11ification on July 1, 2017 and works in Streets. Employee A continues to receive $125 for the ce11ification. 2. Employee B earns a Grade III WDO Ce11ification 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 Employees - General Unit (Exhibit D). General Unit MOU (July 1, 2022 – June 30, 2026): ARTICLE V. SALARIES AND OTHER COMPENSATION Section L. Certificate/License Pay: Class A Driver’s License Pay: Employees in Public Works 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. Certificate Pay for Employees in Parks & Landscape, Streets/Wastewater/Trees, or Water Section of Public Works Operations: Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 124 of 194 4 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 Operations work location (Parks & Landscape, Streets/Waste Water/Trees, or Water), 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 (up to three (3) Parks & Landscape Maintenance Workers only) - $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: Parks & Landscape Section: • Pesticide Advisor $50.00 • AWWA Backflow Prevention Tester - $20.00 • Qualified Applicator’s Certificate - $20.00 • Playground Inspection Certificate - $20.00 Streets/Wastewater/Trees 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 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 Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 125 of 194 5 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 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 Employees – General Unit (Exhibit D). Supervisory Unit MOU (July 1, 2021 – June 30, 2022): ARTICLE V. SALARIES AND OTHER COMPENSATION Section K. Certificate/License Pay: Class A Driver’s License Pay: Employees in Public Works Operations (Operations Services Supervisors) 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, Streets/Waste Water/Trees, or Water Section of Public Works 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 Operations work location Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 126 of 194 6 (Parks & Landscape, Streets/Waste Water/Trees, or Water), 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 (up to three (3) Parks & Landscape employees only) - $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: Parks & Landscape Section: • Pesticide Advisor $50.00 • Playground Inspection Certificate - $20.00 Streets/Waste Water/Trees Section: • CWEA Collection System Maintenance Certifications: Grade III $250.00 Grade IV $300.00 Water Section: • State of California Water Distribution Operator Certifications: Grade V $400.00 • State of California Water Treatment Operator Certifications: Grade III $60.00 Grade IV $80.00 Examples: 4. 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. 5. 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. Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 127 of 194 7 6. 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 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 Employees – Supervisory Unit (Exhibit D). Supervisory Unit MOU (July 1, 2022 – June 30, 2026): ARTICLE V. SALARIES AND OTHER COMPENSATION Section K. Certificate/License Pay: Class A Driver’s License Pay: Employees in Public Works Operations (Operations Services Supervisors) 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, Streets/Wastewater/Trees, or Water Section of Public Works 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 Operations work location (Parks & Landscape, Streets/Waste Water/Trees, or Water), 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 Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 128 of 194 8 • Playground Inspection Certification (up to three (3) Parks & Landscape employees only) - $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: Parks & Landscape Section: • Pesticide Advisor $50.00 • Playground Inspection Certificate - $20.00 Streets/Wastewater/Trees Section: • CWEA Collection System Maintenance Certifications: Grade III $250.00 Grade IV $300.00 Water Section: • State of California Water Distribution Operator Certifications: Grade V $400.00 • State of California Water Treatment Operator Certifications: Grade III $60.00 Grade IV $80.00 Examples: 7. 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. 8. 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. 9. 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 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 Employees – Supervisory Unit (Exhibit D). Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 5.7 p. 129 of 194 9 For the City of Gilroy: Signature/Date For AFSCME, Local 101, Gilroy Chapter: Signature/Date ______________________________ Jimmy Forbis, City Administrator _______________________________ Susana Ramirez, AFSCME President ______________________________ LeeAnn McPhillips, Assistant City Administrator and Administrative Services & Human Resources Director/Risk Manager _______________________________ Carol McEwan, AFSCME Business Agent Docusign Envelope ID: 8B045B91-8C00-4260-8822-4AE2D77203CE 8/29/2024 8/30/20248/30/2024 8/30/2024 5.7 p. 130 of 194 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Purchase of Two 2025 Chevrolet Silverado 2500HD 4WD Crew Cab Vehicles in the Total Amount of $115,941.48 to Replace Two Fire Division Chief Vehicles in the Gilroy Fire Department Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Administrative Services Submitted By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager Prepared By:LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION 1. Award the purchase of two 2025 Chevrolet Silverado 2500HD 4WD Crew Cab Trucks for the total cost of $115,942 to My Jeep-Chrysler-Dodge-Ram located in Salinas, CA; and 2. Authorize the City Administrator to execute purchase documents. BACKGROUND The City Council approved the replacement of two vehicles for the Fire Department in the FY24 - FY25 budget. After meeting with fire management personnel to determine their work needs, the Department and Fleet identified the 2025 Chevrolet Silverado 2500HD 4WD Crew-Cab as the replacement for Fire Division Chief vehicles. This vehicle is built to meet the needs of the Division Chiefs when responding to calls for service in the field. ANALYSIS 5.8 p. 131 of 194 Purchase of Two 2025 Chevrolet Silverado 2500HD 4WD Crew Cab Vehicles in the Total Amount of $115,941.48 to Replace Two Fire Division Chief Vehicles in the Gilroy Fire Department City of Gilroy City Council Page 2 of 3 December 9, 2024 These new vehicles will replace a 2008 Chevrolet Tahoe 4WD, and a 2003 Chevrolet Tahoe 4WD. Both of these vehicles have reached the end of their useful life based on mileage (over 110,000 miles on each vehicle) as well as mechanical and physical part failures. In addition, due to the age of the vehicles, replacement parts are difficult to obtain. Staff obtained three quotes for these replacement vehicles from area dealers as follows: Dealer Location Total Cost Per Vehicle (includes taxes and fees) MY Jeep-Chrysler-Dodge-Ram Salinas, CA $57,970.74 Gilroy Chevrolet Gilroy, CA $61,224.58 Chevrolet of Watsonville Watsonville, CA $62,779.61 Due to long lead times, and the need for these vehicles to be placed in service, orders for these two vehicles were placed in order to “hold” the vehicles pending Council approval. Consistent with the City of Gilroy Purchasing Policy, staff is recommending the purchase of these two vehicles from My Jeep-Chrysler-Dodge-Ram, as this vendor offered the lowest price, and the price beat the 5% local preference for the local Gilroy dealer. ALTERNATIVES Given the limited availability of vehicles and the Fire Department’s need for these vehicle replacements, staff recommends moving forward with this purchase. There are no other good alternatives. FISCAL IMPACT/FUNDING SOURCE The FY 25 Fleet Fund (Fund 600) budget includes funds for these replacement vehicles in a combined total amount of $115,941.48. NEXT STEPS With Council approval, staff will proceed with finalizing the existing order with My Jeep- Chrysler-Dodge-Ram. Once the vehicles are received and inspected, the City Administrator will execute the final sales contracts. Attachments: 1. Specifications and Quote for Chevrolet Silverado 2500HD 4WD Crew Cab from MY Jeep-Chrysler-Dodge-Ram 5.8 p. 132 of 194 Purchase of Two 2025 Chevrolet Silverado 2500HD 4WD Crew Cab Vehicles in the Total Amount of $115,941.48 to Replace Two Fire Division Chief Vehicles in the Gilroy Fire Department City of Gilroy City Council Page 3 of 3 December 9, 2024 5.8 p. 133 of 194 City of Gilroy: October 4, 2024 Attn: Walter Dunckel, Facilities Superintendent Quote for 2025 Chevrolet Silverado 2500HD Crew Cab 4WD WT: Drivetrain: 6.6L V-8 gas engine, 10-speed Allison automatic and 4WD Colors: White exterior, jet black vinyl seats, 40/20/40 front bench, black carpet flooring Options: WT convenience package, power and heated vertical trailering mirrors, 120- volt interior outlet, WT/CX safety package, Z71 off-road package, auxiliary 700 cc amp battery, LED cargo area lighting, trailer wiring provisions, 17” machined aluminum wheels, snowplow prep/camper package, and two extra keys $52,945.00 – sale price, before sales tax and fees $85.00 – doc fee $4,838.99 – 9.125% City of Gilroy sales tax $33.00 – electronic filing fee $8.75 – tire tax $60.00 – delivery to Gilroy, CA --------------- $57,970.74 – total cost This vehicle will be ordered upon receipt of a purchase order from the City of Gilroy. Thank you for the opportunity to provide this quote for your consideration. Please let me know if you have any questions or if you need any additional information. Denis Greathead, Government Fleet Sales Manager MY Jeep-Chrysler-Dodge-Ram / MY Chevrolet / MY Nissan-Kia 600 Auto Center Circle Salinas, CA 93907 831-320-6519 5.8 p. 134 of 194 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Acceptance of the Grant Deed for the Future Fire Station Parcel (Parcel Q, Tract 10472, APN 808-58- 004) Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Administration Submitted By:Jimmy Forbis, City Administrator Prepared By:Harjot Sangha, Finance Director STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure RECOMMENDATION 1. Authorize the City Administrator to accept the Grant Deed, subject to review and approval by the City Attorney of any final modifications, for the future Fire Station Parcel (Parcel Q, Tract 10472, APN#:808-58-004), and execute all necessary documents as appropriate. EXECUTIVE SUMMARY In November 2005, the City of Gilroy and Glen Loma Ranch entered into a Development Agreement for the Glen Loma Ranch project, which involved developing approximately 359 acres of property on the west side of Gilroy. On October 7, 2024, the City Council approved the Fourth Operating Memorandum to the Glen Loma Ranch Development Agreement, which primarily addresses Glen Loma Ranch’s obligation to dedicate land and construct the fire station pursuant to the Development Agreement. This Council action is related to the first funding obligation outlined in the Fourth Operating Memorandum, which requires Glen Loma Ranch to dedicate the fire station parcel. In addition, the first funding obligation requires Glen Loma to deposit a cash payment of $542,906 and assign $1,046,337 of Traffic Impact Fee (TIF) reimbursements to the City at the close of escrow. 6.1 p. 135 of 194 Adopt a Resolution for the Acceptance of the Grant Deed for the Future Fire Station Parcel (Parcel Q, Tract 10472), APN 808-58-004 City of Gilroy City Council Page 2 of 4 December 9, 20241 8 1 9 The City Council is recommended to authorize the City Administrator to accept the Grant Deed for the future fire station parcel and execute all necessary documents as appropriate. The escrow is expected to close on or about December 18, 2024. BACKGROUND In November 2005, the City of Gilroy and Glen Loma Ranch entered into a Development Agreement for the Glen Loma Ranch project, which consisted of approximately 359-acre property on Gilroy's western foothills. The Development Agreement obligated Glen Loma Ranch to construct and dedicate various public improvements, including a fire station and two parks. The Cydney Casper Park has been built, and McCutchin Creek Park and the fire station have not been constructed. The City and Glen Loma Ranch have executed four operating memorandums to make additional refinements and clarifications to be incorporated into the Glen Loma Ranch Development Agreement. •The First Operating Memorandum modified the originally contemplated City Park requirements with two small parks (Cydney Casper and McCutchin Creek Parks). •The Second Operating Memorandum modified the requirement to design and construct the fire station before issuing the building permit for the 1,100th residential unit rather than the 1,000th residential unit of the development. •In the Third Operating Memorandum further modified the requirements, to forgo the construction of the McCutchin Creek Park and in lieu, Glen Loma Ranch committed to paying the City $2.3 million. The City has received the funds and allows the City to utilize the funds for the fire station. •At the recent October 7, 2024, City Council meeting, the City Council approved the Fourth Operating Memorandum which requires Glen Loma Ranch to convey the fire station parcel to the City and pay $7.2 million in lieu of constructing the fire station subject to certain City approvals and recordation of remaining development documents. This staff report is related to the first funding obligation outlined in the Fourth Operating Memorandum which requires Glen Loma Ranch to dedicate the fire station parcel. In addition, the first funding obligation requires Glen Loma to deposit a cash payment of $542,906 and assign $1,046,337 of TIF reimbursements to the City, at the close of escrow, subject to certain City confirmations and Right-to-Entry for the purposes of boundary conform grading and related activities. The Fourth Operating Memorandum is attached to this staff report. ANALYSIS 6.1 p. 136 of 194 Adopt a Resolution for the Acceptance of the Grant Deed for the Future Fire Station Parcel (Parcel Q, Tract 10472), APN 808-58-004 City of Gilroy City Council Page 3 of 4 December 9, 20241 8 1 9 The terms of the Fourth Operating Memorandum obligate Glen Loma Ranch to convey the fire station parcel to the City and pay the City $7.2 million in lieu of constructing the fire station over four funding obligations. This staff report pertains to the first funding obligation, which requires both parties to do the following: Glen Loma Ranch is to: 1. Execute an assignment of the TIF reimbursements in the amount of $1,046,337 to the City. 2. Deposit $542,906 in cash payment to the escrow. 3. Dedicate the fire station parcel to the City via a Grant Deed in a recordable form. The City is to: 1. Provide certain written confirmations for Uvas Park Drive and Miller Avenue intersection, Zone 2 Water Tank Requirements, Commercial Use Exemption in the Town Center Flex Area, and Consistency with Glen Loma Ranch Specific Plan. 2. Right-of-Entry to the parcel, after the parcel has been dedicated, for Glen Loma Ranch to construct certain improvements for boundary conforms grading and related activities. The City has provided the written confirmations, and the forms of TIF assignment and the Right-to-Entry documents. The cash payment is expected to be remitted with the closing of the escrow. Concerning the dedication of the fire station parcel, attached to the staff report is the form of the Grant Deed and the estimated escrow settlement. There is no financial consideration from the City to Glen Loma Ranch for the dedication of the fire station parcel; however, the parcel was appraised to determine its fair market value for the Title Policy and the gift tax forms necessary for Glen Loma Ranch. The appraisal was conducted by an independent appraiser, Valbridge Property Advisors, and the fair market value is determined to be $1,315,000. Pursuant to the California Government Code section 27281, deeds or grants conveying any interest in or easement upon real estate to a political corporation or governmental agency for public purposes shall not be accepted for recordation without the consent of the grantee evidenced by its certificate or resolution of acceptance attached to or printed on the deed or grant. The City Council is recommended to authorize the City Administrator to accept the Grant Deed for the future Fire Station Parcel and execute all necessary documents as appropriate. The certificate of acceptance is attached to the staff report. 6.1 p. 137 of 194 Adopt a Resolution for the Acceptance of the Grant Deed for the Future Fire Station Parcel (Parcel Q, Tract 10472), APN 808-58-004 City of Gilroy City Council Page 4 of 4 December 9, 20241 8 1 9 ALTERNATIVES The City Council could decide not to accept the Grant Deed of the fire station parcel. This is not recommended, as the City Council approved the Fourth Operating Memorandum to receive the dedication of the land so that the City can commence construction of the needed fire station. FISCAL IMPACT/FUNDING SOURCE At the close of the first escrow, the City will receive the fire station parcel conveyance, a cash payment of $542,906, and an assignment of the TIF reimbursements valued at $1,046,337, from the City’s Traffic Impact Fund (425). The cash payment as well as the amount assigned under the TIF reimbursement will be deposited to the City’s Capital Projects Fund (400) to fund the construction of the future fire station. NEXT STEPS Upon close of escrow, on or about December 18, 2024, the City will gain access to the parcel and will be able to complete the design and commence the construction of the fire station. Attachments: 1. Grant Deed 2. Estimated Settlement Statement 3. Certificate of Acceptance of Conveyance 6.1 p. 138 of 194 Mail Tax Statements To: SAME AS ABOVE ------------------------------------------------------------------------------------------------------------------------------------- RECORDING REQUESTED BY: First American Title Company MAIL TAX STATEMENT AND WHEN RECORDED MAIL DOCUMENT TO: The City of Gilroy (TBD) Space Above This Line for Recorder’s Use Only A.P.N.: 808-58-004 File No.: 0131-627786ala (tb) GRANT DEED The Undersigned Grantor(s) Declare(s): DOCUMENTARY TRANSFER TAX $0.00 - R&T 11922 Governmental agency acquiring title; CITY TRANSFER TAX $; SURVEY MONUMENT FEE $ [ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, [ ] unincorporated area; [ X ] City of Gilroy, and EXEMPT FROM BUILDING HOMES AND JOBS ACTS FEE PER GOVERNMENT CODE 27388.1(a)(2) [ ] __________________________________ Signature of Declarant FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The Christopher Family Partnership, a California limited partnership and Christopher Ranch LLC, a (TBD)________ limited liability company and D. Christopher & Sons, LLC, a (TBD)_________ limited liability company and Filice Family Estate, a California limited partnership hereby GRANTS to The City of Gilroy, a municipal corporation of the State of California the following described property in the City of Gilroy, County of Santa Clara, State of California: Parcel Q as shown on the map entitled "TRACT 10472 TOWN CENTER", recorded September 24, 2020, in Book 932 of Maps at Pages 55-61, Santa Clara County records. 6.1 p. 139 of 194 Grant Deed - continued File No.: 0131-627786ala (tb) Page 2 Dated: December 04, 2024 The Christopher Family Partnership, a California limited partnership \s1001\ By:___________________________ Name: _____________________ Title: ______________________ Christopher Ranch LLC, a (TBD) limited liability company \s1002\ By:___________________________ Name: ____________________ Title: _____________________ D. Christopher & Sons, LLC, a (TBD) limited liability company \s1003\ By:___________________________ Name: _____________________ Title: ______________________ Filice Family Estate, a California limited partnership \s1004\ By:___________________________ Name: _____________________ Title: ______________________ 6.1 p. 140 of 194 Grant Deed - continued File No.: 0131-627786ala (tb) Page 3 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF )SS COUNTY OF ) On before me, , Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. This area for official notarial seal. Notary Signature 6.1 p. 141 of 194 This is a summary of the closing transaction prepared by First American Title Company. This document is not intended to replace the Closing Disclosure form. Copyright 2015 American Land Title Association. All rights reserved Page 1 of 3 File # 0131-627786ala Printed on 12/04/2024 at 10:23 AM American Land Title Association ALTA Settlement Statement - Combined Adopted 05-01-2015 File No: 0131-627786ala First American Title Company 4750 Willow Road, Suite 275 • Pleasanton, CA 94588 Phone: (925)738-4050 Fax: (866)648-7806 Estimated Settlement Statement Amended: Wednesday Dec 4, 2024 10:23 AM Printed: 12/04/2024, 10:23 AM Officer/Escrow Officer: Tammi Buna/BC Settlement Location: 4750 Willow Road, Suite 275, Pleasanton, CA 94588 Property Address: Parcel Q Tract 10472, Gilroy, CA Buyer: The City of Gilroy Seller: The Christopher Family Partnership; Christopher Ranch LLC; D. Christopher & Sons, LLC; Filice Family Estate Lender: Estimated Settlement Date: 12/19/2024 Disbursement Date: Seller Description Buyer Debit Credit Debit Credit Prorations/Adjustments 542,906.00 SCVWD Reimbursement (Cash Payment) 542,906.00 1,046,337.00 TIF Reimbursements (by Assignment) 1,046,337.00 Title Charges & Escrow / Settlement Charges 2,568.00 Title - Owner's Title Insurance ALTA Owner's Policy ($1,315,000.00) to First American Title Company 31.00 Title - Recording Service Recording Services to First American Title Company 2,375.00 Title - Escrow Fee Escrow Fee to First American Title Company Government Recording and Transfer Charges Record Deed (EST.) to Santa Clara County Clerk - Recorder 100.00 1,446.50 County Documentary Transfer Tax (TBD) to Santa Clara County Clerk - Recorder 1,595,663.50 0.00 Subtotals 100.00 1,589,243.00 Due To Buyer 1,589,143.00 1,595,663.50 Due From Seller 1,595,663.50 1,595,663.50 Totals 1,589,243.00 1,589,243.00 No Tax Prorations through Escrow Escrow related fees including separate fees for overnight mail- courier or notary services that are not included as part of First American's filed escrow fee may include a markup over the direct cost to First American for such services. Our wire instructions do not change. Our banking institution is First American Trust. If you receive an email or other communication that appears to be from us or another party involved in your transaction instructing you to wire funds to a 6.1 p. 142 of 194 This is a summary of the closing transaction prepared by First American Title Company. This document is not intended to replace the Closing Disclosure form. Copyright 2015 American Land Title Association. All rights reserved Page 2 of 3 File # 0131-627786ala Printed on 12/04/2024 at 10:23 AM bank other than First American Trust, you should consider it suspect and you must call our office at an independently verified phone number. Do not inquire with the sender. Acknowledgement We/I have carefully reviewed the Estimated ALTA Settlement Statement and find it to be a true and accurate statement of all receipts and disbursements to be made on my account or by me in this transaction and further certify that I have received a copy of the Estimated ALTA Settlement Statement. This Estimated Settlement Statement is subject to changes, corrections or additions at the time of final computation of Escrow Settlement Statement. We/I authorize First American Title Company to cause the funds to be disbursed in accordance with the Final ALTA Settlement Statement to be provided to me/us at closing. 6.1 p. 143 of 194 This is a summary of the closing transaction prepared by First American Title Company. This document is not intended to replace the Closing Disclosure form. Copyright 2015 American Land Title Association. All rights reserved Page 3 of 3 File # 0131-627786ala Printed on 12/04/2024 at 10:23 AM Seller(s) The Christopher Family Partnership, a California limited partnership \s1001\ By:___________________________ Name: _____________________ Title: ______________________ Christopher Ranch LLC, a (TBD) limited liability company \s1002\ By:___________________________ Name: ____________________ Title: _____________________ D. Christopher & Sons, LLC, a (TBD) limited liability company \s1003\ By:___________________________ Name: _____________________ Title: ______________________ Filice Family Estate, a California limited partnership \s1004\ By:___________________________ Name: _____________________ Title: ______________________ Buyer(s) The City of Gilroy, a municipal corporation of the State of California \s1\ By:___________________________ Name: ____________________ Title: _____________________ 6.1 p. 144 of 194 CERTIFICATE OF ACCEPTANCE (Government Code Section 27281) Certificate of Acceptance of Conveyance to the City of Gilroy by ___________________________________________________ This is to certify that the interest in real property conveyed by the Grant Deed from ________________________________________, dated _____________________, 2024 to the City of Gilroy, a municipal corporation of the State of California, is hereby accepted by the undersigned officer or agent on behalf of the City of Gilroy pursuant to authority conferred by Resolution No. 2015-55 of the City of Gilroy adopted October 26, 2015, a certified copy of which resolution is on record in the office of the County Recorder of the County of Santa Clara, State of California, document #23133758, dated November 3, 2015 and the grantee consents to recordation thereof by its duly authorized officer. In witness whereof, I have hereunto set my hand on _______________________, 2024. By: ________________________________ Jimmy Forbis City Administrator City of Gilroy 6.1 p. 145 of 194 City of Gilroy City Council Page 1 of 2 December 9, 2024 City of Gilroy STAFF REPORT Agenda Item Title:Acceptance of the Official Canvass of 2024 Municipal Election Results Meeting Date: December 9, 2024 From: Jimmy Forbis, City Administrator Department: City Clerk Submitted By: Beth Minor, Interim City Clerk Prepared By: Beth Minor, Interim City Clerk STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION 1.Adopt the Resolution accepting the certification of the November 5, 2024 election results; and 2.Declare elected Zach Hilton, Terence Fugazzi, Kelly Ramirez, to the Gilroy City Council for a full term of four (4) years each; and 3.Declare elected Greg Bozzo, to the position of Mayor of the Gilroy City Council for a full term of four (4) years; and 4.Declare Public Safety Special Transactions and Use Tax Measure C not ratified. EXECUTIVE SUMMARY Pursuant to City Council Resolution No. 2024-21, a general municipal election was held and conducted in the City of Gilroy on Tuesday, November 5, 2024 for the election of three members to the City Council, one Mayor, all full four-year, as required by law and the Charter of the City. Additionally, a Public Safety Special Transactions and use Tax (Sales Tax) measure, Measure C was on the ballot. The election was consolidated with the County and the results of the election have been canvassed by the Registrar of Voters and certified by the City Clerk. The Council has before it a Resolution to accept these elections results. BACKGROUND Three seats on the City Council and one Mayoral seat expire in December of 2024. The City consolidated election services with the Santa Clara County Registrar of Voters in accordance with 7.1 p. 146 of 194 City of Gilroy City Council Page 2 of 2 December 9, 2024 City Charter Sections 1400 and 1402, and following all provisions of the California Elections Code with regards to the election of candidates and municipal initiative measures. The three City Council members whose terms were expiring, thereby making their seats eligible for the election, were Rebeca Armendariz, Zach Hilton, and Fred Tovar. Incumbents Rebeca Armendariz, Zach Hilton, and Fred Tovar sought re-election. Three additional candidates, Stefanie Elle, Terence Fugazzi, and Kelly Ramirez, filed nomination papers and qualified to run in the election. The Mayor’s term, held by Marie Blankley, was expiring, thereby making her seat eligible for the election. Marie Blankley filed nomination papers and was qualified to run in the election. Additionally, Greg Bozzo filed nomination papers and was qualified to run in the election for the mayor term. The Registrar of Voters has canvassed the returns of the election and has submitted them to the City Clerk. As elections official the City Clerk has certified the canvass of the results of the November 5, 2024 election. The City Council is now required to adopt a resolution reciting the fact of the election and declaring elected the persons for whom the highest number of votes was cast for each office. The following Mayoral candidate had the highest number of votes cast in the canvass of returns for a full four-year term: GREG BOZZO The following three candidates had the highest number of votes cast in the canvass of returns for the office of City Council for full four-year terms: ZACHARY HILTON TERENCE FUGAZZI KELLY RAMIREZ With regards to the Public Safety Tax Measure, Measure C, the ROV’s Certificate of Results and Official Canvass, attached to the accompanying resolution, shows the measure failed. The Public Safety Tax measure failed as it did not receive the required 66 2/3 votes. Elections Code Section 10263 (b) requires the governing body to meet at its usual place of meeting no later than the next regularly scheduled meeting following presentation of the 30-day canvass of the returns, or at a special meeting called for this purpose, to declare the results and to install the newly elected officers. CONCLUSION Staff recommends the Council adopt the Resolution accepting the certification of the November 5, 2024 election results. 7.1 p. 147 of 194 RESOLUTION NO. 2024-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING AND ADOPTING THE CERTIFICATION OF THE CANVASS OF THE GENERAL MUNICIPAL ELECTION AND DECLARING RESULTS OF SAID ELECTION HELD IN THE CITY OF GILROY ON NOVEMBER 5, 2024 WHEREAS, a consolidated General Municipal Election was held and conducted in the City of Gilroy on Tuesday, November 5, 2024, as required by law and the Charter of said City, for the purpose of electing to office three City Council Members for full four-year terms, and one Mayor for full four-year term; and WHEREAS, a consolidated General Municipal Election was held and conducted in the City of Gilroy on Tuesday, November 5, 2024, for the purpose of electing for and against Measure C; and WHEREAS, notice of said election was duly and legally given, voting precincts were properly established, election officers were appointed and election supplies furnished and in all respects said election was held and conducted by the County of Santa Clara, and the votes cast were received and canvassed and the returns thereof made and declared in the time, form and manner as required by the provisions of the Elections Code of the State of California governing Municipal Elections; and WHEREAS, the Registrar of Voters of Santa Clara County, having canvassed the returns of said election, certified on December 5, 2024, a full, true, and correct Statement of the Results of all votes cast at the said election for each candidate, and for the outcome of the election on Measure C, the result of which the Gilroy City Council accepts, and finds that the number of votes cast, the names of the persons voted for and other matters required to be as hereinafter stated; and WHEREAS, said canvass was duly completed and the results thereof were certified by the City Clerk and submitted to this Council. NOW, THEREFORE, BE IT HEREBY RESOLVED, DECLARED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF GILROY AS FOLLOWS: SECTION 1. That said consolidated General Municipal Election was held and conducted in the City of Gilroy, County of Santa Clara, State of California, in the form, time, and manner as required by law; the canvass of the returns of the votes cast and the counting of vote-by-mail ballots cast in said City for the Office City Council Member and the Office of Mayor, and Measure C was duly held by the Registrar of Voters in accordance with the order of the 7.1 p. 148 of 194 Council and in accordance with law, and the Registrar of Voters has executed a certificate of the results of such canvass, which certificate is hereto attached, as Exhibit "A". SECTION 2. That the names of persons voted for at the general municipal election for Member of the City Council are as follows: Rebeca Armendariz, Stefanie Elle, Terence Fugazzi, Zach Hilton, Kellie Ramirez, and Fred Tovar. SECTION 3. That the names of persons voted for at the general municipal election for Mayor of the City of Gilroy are as follows: Marie Blankley and Greg Bozzo. SECTION 4. That the Ballot Measure voted upon at the special municipal election is as follows: Measure C – Public Safety Special Transactions and Use Tax YES To generate funding that cannot be seized by the State, but stays in Gilroy and is dedicated to public safety (police, fire and ambulance) services and public safety infrastructure projects, shall Gilroy enact a 0.25 percent (one-quarter of one percent) transactions and use tax; and include a citizen oversight committee and annual audits for the tax? NO SECTION 5. Per Elections Code Section 10262 (b), said certificate of results has been examined by the City Clerk and has been certified by her to be complete, which certification is hereto attached, as Exhibit "B" and by this reference is made a part hereof. SECTION 6. Said certificate has been examined and is hereby approved and adopted by this City Council as the official canvass of said municipal election as required by Elections Code Section 10263. SECTION 7. The number of votes given at each precinct and the number of votes given in the City to each persons above named for respective offices for which the persons were candidates, and for and against the measure were listed as Exhibit “A”, attached hereto. SECTION 8. The names of the persons voted for, the offices for which they were voted, the number of votes received by each of said persons in each of said precincts and by vote by mail votes are shown on said Exhibit "A", attached hereto. SECTION 9. The City Council does declare and determine: At said general municipal election held in the City of Gilroy held on November 5, 2024, the following persons were elected to the following offices: Greg Bozzo having was elected as Mayor to hold office for a term of four years, from and after Monday, December 9, 2024, and continuing until his respective 7.1 p. 149 of 194 successor shall qualify. Zach Hilton received was elected as member of the City Council to hold office for a term of four years, from and after Monday, December 9, 2024, and continuing until his respective successor shall qualify. Terence Fugazzi was elected as member of the City Council to hold office for a term of four years, from and after Monday, December 9, 2024, and continuing until his respective successor shall qualify. Kelly Ramirez was elected as member of the City Council to hold office for a term of four years, from and after Monday, December 9, 2024, and continuing until her respective successor shall qualify. SECTION 10. The City Clerk shall make out and deliver to each of the persons elected a certificate of election, witnessed by her hand and duly authenticated. She shall also provide the constitutional oath of office to each elected official and ask them to subscribe thereto. SECTION 11. Measure C- Public Safety Special Transactions and Use Tax having not received the required 66 2/3 vote is not ratified. SECTION 12. The City Clerk shall enter this resolution in full in the minutes of this City Council as a statement of the result of said general municipal election. PASSED AND ADOPTED this 9th day of December 2024 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: Beth Minor, Interim City Clerk 7.1 p. 150 of 194 7.1 p. 151 of 194 7.1 p. 152 of 194 7.1 p. 153 of 194 7.1 p. 154 of 194 7.1 p. 155 of 194 7.1 p. 156 of 194 7.1 p. 157 of 194 7.1 p. 158 of 194 7.1 p. 159 of 194 7.1 p. 160 of 194 7.1 p. 161 of 194 7.1 p. 162 of 194 Exhibit B 7.1 p. 163 of 194 7.1 p. 164 of 194 1 Measure C - City of Gilroy, Public Safety Special Transactions & Use Tax Registered VotersVoters CastTurnout (%)YesNo0004918 In-Person 2272 343 15.10 %230 88 0004918 Mail Voting 2272 979 43.09 %560 354 0004918 Total 2272 1322 58.19 %790 442 0004919 In-Person 2619 266 10.16 %145 98 0004919 Mail Voting 2619 1836 70.10 %975 722 0004919 Total 2619 2102 80.26 %1120 820 0004920 In-Person 388 53 13.66 %33 14 0004920 Mail Voting 388 193 49.74 %110 73 0004920 Total 388 246 63.40 %143 87 0004921 In-Person 1819 137 7.53 %67 58 0004921 Mail Voting 1819 1278 70.26 %729 456 0004921 Total 1819 1415 77.79 %796 514 0004922 In-Person 976 90 9.22 %41 36 0004922 Mail Voting 976 667 68.34 %341 274 0004922 Total 976 757 77.56 %382 310 0004923 In-Person 2195 257 11.71 %151 82 0004923 Mail Voting 2195 1196 54.49 %683 420 0004923 Total 2195 1453 66.20 %834 502 0004925 In-Person 2905 289 9.95 %151 114 0004925 Mail Voting 2905 1971 67.85 %1066 773 0004925 Total 2905 2260 77.80 %1217 887 0004926 In-Person 1540 151 9.81 %80 55 0004926 Mail Voting 1540 1070 69.48 %638 352 0004926 Total 1540 1221 79.29 %718 407 0004928 In-Person 2757 298 10.81 %164 106 0004928 Mail Voting 2757 1931 70.04 %1067 729 0004928 Total 2757 2229 80.85 %1231 835 0004930 In-Person 1589 201 12.65 %108 70 0004930 Mail Voting 1589 1457 91.69 %827 543 0004930 Total 1589 1658 104.34 %935 613 0004933 In-Person 2483 285 11.48 %171 96 0004933 Mail Voting 2483 1415 56.99 %807 529 0004933 Total 2483 1700 68.47 %978 625 0004937 In-Person 1457 182 12.49 %100 62 0004937 Mail Voting 1457 708 48.59 %433 230 0004937 Total 1457 890 61.08 %533 292 0004939 In-Person 3463 326 9.41 %203 95 0004939 Mail Voting 3463 1865 53.86 %1030 710 0004939 Total 3463 2191 63.27 %1233 805 0004940 In-Person 1223 124 10.14 %70 44 0004940 Mail Voting 1223 830 67.87 %456 322 0004940 Total 1223 954 78.00 %526 366 0004941 In-Person 3112 373 11.99 %226 120 0004941 Mail Voting 3112 1487 47.78 %807 588 0004941 Total 3112 1860 59.77 %1033 708 0004945 In-Person 2611 298 11.41 %184 84 0004945 Mail Voting 2611 1351 51.74 %785 475 0004945 Total 2611 1649 63.16 %969 559 Total - In-Person 33409 3673 10.99 %2124 1222 Total - Mail Voting 33409 20234 60.56 %11314 7550 Printed: Tuesday, December 3, 2024 11:22 AM Page 996 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 165 of 194 1 Measure C - City of Gilroy, Public Safety Special Transactions & Use Tax Registered VotersVoters CastTurnout (%)YesNoContest Total 33409 23907 71.56 %13438 8772 Printed: Tuesday, December 3, 2024 11:22 AM Page 997 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 166 of 194 1 Measure C - City of Gilroy, Public Safety Special Transactions & Use Tax Registered VotersVoters CastTurnout (%)YesNo18th Congressional District In-Person 33409 3673 10.99 %2124 1222 18th Congressional District Mail Voting 33409 20234 60.56 %11314 7550 18th Congressional District Total 33409 23907 71.56 %13438 8772 15th Senatorial District In-Person 33409 3673 10.99 %2124 1222 15th Senatorial District Mail Voting 33409 20234 60.56 %11314 7550 15th Senatorial District Total 33409 23907 71.56 %13438 8772 29th Assembly District In-Person 33409 3673 10.99 %2124 1222 29th Assembly District Mail Voting 33409 20234 60.56 %11314 7550 29th Assembly District Total 33409 23907 71.56 %13438 8772 State Board of Equalization #2 In-Person 33409 3673 10.99 %2124 1222 State Board of Equalization #2 Mail Voting 33409 20234 60.56 %11314 7550 State Board of Equalization #2 Total 33409 23907 71.56 %13438 8772 County of Santa Clara In-Person 33409 3673 10.99 %2124 1222 County of Santa Clara Mail Voting 33409 20234 60.56 %11314 7550 County of Santa Clara Total 33409 23907 71.56 %13438 8772 1st Supervisorial District In-Person 33409 3673 10.99 %2124 1222 1st Supervisorial District Mail Voting 33409 20234 60.56 %11314 7550 1st Supervisorial District Total 33409 23907 71.56 %13438 8772 City of Gilroy In-Person 33409 3673 10.99 %2124 1222 City of Gilroy Mail Voting 33409 20234 60.56 %11314 7550 City of Gilroy Total 33409 23907 71.56 %13438 8772 Total - In-Person 33409 3673 10.99 %2124 1222 Total - Mail Voting 33409 20234 60.56 %11314 7550 Contest Total 33409 23907 71.56 %13438 8772 Printed: Tuesday, December 3, 2024 2:42 PM Page 218 of 227Data Refreshed: Tuesday, December 3, 2024 2:41 PM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by District November 5, 2024 7.1 p. 167 of 194 1 City of Gilroy Mayor Registered VotersVoters CastTurnout (%)Marie BlankleyGreg Bozzo18th Congressional District In-Person 33409 3696 11.06 %1485 1896 18th Congressional District Mail Voting 33409 20325 60.84 %9578 9378 18th Congressional District Total 33409 24021 71.90 %11063 11274 15th Senatorial District In-Person 33409 3696 11.06 %1485 1896 15th Senatorial District Mail Voting 33409 20325 60.84 %9578 9378 15th Senatorial District Total 33409 24021 71.90 %11063 11274 29th Assembly District In-Person 33409 3696 11.06 %1485 1896 29th Assembly District Mail Voting 33409 20325 60.84 %9578 9378 29th Assembly District Total 33409 24021 71.90 %11063 11274 State Board of Equalization #2 In-Person 33409 3696 11.06 %1485 1896 State Board of Equalization #2 Mail Voting 33409 20325 60.84 %9578 9378 State Board of Equalization #2 Total 33409 24021 71.90 %11063 11274 County of Santa Clara In-Person 33409 3696 11.06 %1485 1896 County of Santa Clara Mail Voting 33409 20325 60.84 %9578 9378 County of Santa Clara Total 33409 24021 71.90 %11063 11274 1st Supervisorial District In-Person 33409 3696 11.06 %1485 1896 1st Supervisorial District Mail Voting 33409 20325 60.84 %9578 9378 1st Supervisorial District Total 33409 24021 71.90 %11063 11274 City of Gilroy In-Person 33409 3696 11.06 %1485 1896 City of Gilroy Mail Voting 33409 20325 60.84 %9578 9378 City of Gilroy Total 33409 24021 71.90 %11063 11274 Total - In-Person 33409 3696 11.06 %1485 1896 Total - Mail Voting 33409 20325 60.84 %9578 9378 Contest Total 33409 24021 71.90 %11063 11274 Printed: Tuesday, December 3, 2024 2:42 PM Page 216 of 227Data Refreshed: Tuesday, December 3, 2024 2:41 PM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by District November 5, 2024 7.1 p. 168 of 194 1 City of Gilroy Mayor Registered VotersVoters CastTurnout (%)Marie BlankleyGreg Bozzo0004918 In-Person 2272 343 15.10 %142 176 0004918 Mail Voting 2272 981 43.18 %413 488 0004918 Total 2272 1324 58.27 %555 664 0004919 In-Person 2619 267 10.19 %108 138 0004919 Mail Voting 2619 1843 70.37 %1009 682 0004919 Total 2619 2110 80.57 %1117 820 0004920 In-Person 388 54 13.92 %25 23 0004920 Mail Voting 388 193 49.74 %83 95 0004920 Total 388 247 63.66 %108 118 0004921 In-Person 1819 137 7.53 %42 80 0004921 Mail Voting 1819 1281 70.42 %648 556 0004921 Total 1819 1418 77.95 %690 636 0004922 In-Person 976 90 9.22 %27 52 0004922 Mail Voting 976 677 69.36 %355 290 0004922 Total 976 767 78.59 %382 342 0004923 In-Person 2195 260 11.85 %95 140 0004923 Mail Voting 2195 1203 54.81 %606 511 0004923 Total 2195 1463 66.65 %701 651 0004925 In-Person 2905 289 9.95 %128 146 0004925 Mail Voting 2905 1980 68.16 %1007 849 0004925 Total 2905 2269 78.11 %1135 995 0004926 In-Person 1540 152 9.87 %64 77 0004926 Mail Voting 1540 1074 69.74 %528 461 0004926 Total 1540 1226 79.61 %592 538 0004928 In-Person 2757 297 10.77 %126 147 0004928 Mail Voting 2757 1932 70.08 %949 844 0004928 Total 2757 2229 80.85 %1075 991 0004930 In-Person 1589 203 12.78 %87 97 0004930 Mail Voting 1589 1470 92.51 %668 716 0004930 Total 1589 1673 105.29 %755 813 0004933 In-Person 2483 285 11.48 %119 146 0004933 Mail Voting 2483 1418 57.11 %612 730 0004933 Total 2483 1703 68.59 %731 876 0004937 In-Person 1457 182 12.49 %83 84 0004937 Mail Voting 1457 715 49.07 %373 305 0004937 Total 1457 897 61.56 %456 389 0004939 In-Person 3463 331 9.56 %135 175 0004939 Mail Voting 3463 1879 54.26 %831 934 0004939 Total 3463 2210 63.82 %966 1109 0004940 In-Person 1223 123 10.06 %48 66 0004940 Mail Voting 1223 831 67.95 %348 424 0004940 Total 1223 954 78.00 %396 490 0004941 In-Person 3112 385 12.37 %149 187 0004941 Mail Voting 3112 1491 47.91 %625 744 0004941 Total 3112 1876 60.28 %774 931 0004945 In-Person 2611 298 11.41 %107 162 0004945 Mail Voting 2611 1357 51.97 %523 749 0004945 Total 2611 1655 63.39 %630 911 Total - In-Person 33409 3696 11.06 %1485 1896 Total - Mail Voting 33409 20325 60.84 %9578 9378 Printed: Tuesday, December 3, 2024 11:22 AM Page 451 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 169 of 194 1 City of Gilroy Mayor Registered VotersVoters CastTurnout (%)Marie BlankleyGreg BozzoContest Total 33409 24021 71.90 %11063 11274 Printed: Tuesday, December 3, 2024 11:22 AM Page 452 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 170 of 194 1 City of Gilroy Council Member Registered VotersVoters CastTurnout (%)Terence FugazziFred TovarStefanie ElleZach HiltonRebeca ArmendarizKelly Ramirez18th Congressional District In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 18th Congressional District Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 18th Congressional District Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 15th Senatorial District In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 15th Senatorial District Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 15th Senatorial District Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 29th Assembly District In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 29th Assembly District Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 29th Assembly District Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 State Board of Equalization #2 In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 State Board of Equalization #2 Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 State Board of Equalization #2 Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 County of Santa Clara In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 County of Santa Clara Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 County of Santa Clara Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 1st Supervisorial District In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 1st Supervisorial District Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 1st Supervisorial District Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 City of Gilroy In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 City of Gilroy Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 City of Gilroy Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 Total - In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 Total - Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 Contest Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 Printed: Tuesday, December 3, 2024 2:42 PM Page 217 of 227Data Refreshed: Tuesday, December 3, 2024 2:41 PM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by District November 5, 2024 7.1 p. 171 of 194 1 City of Gilroy Council Member Registered VotersVoters CastTurnout (%)Terence FugazziFred TovarStefanie ElleZach HiltonRebeca ArmendarizKelly Ramirez0004918 In-Person 2272 343 15.10 %145 109 76 135 115 85 0004918 Mail Voting 2272 981 43.18 %277 366 229 455 398 328 0004918 Total 2272 1324 58.27 %422 475 305 590 513 413 0004919 In-Person 2619 267 10.19 %141 64 81 110 46 79 0004919 Mail Voting 2619 1843 70.37 %781 636 627 876 374 806 0004919 Total 2619 2110 80.57 %922 700 708 986 420 885 0004920 In-Person 388 54 13.92 %22 24 9 24 21 11 0004920 Mail Voting 388 193 49.74 %65 81 44 89 84 63 0004920 Total 388 247 63.66 %87 105 53 113 105 74 0004921 In-Person 1819 137 7.53 %73 46 41 56 15 31 0004921 Mail Voting 1819 1281 70.42 %537 481 507 638 268 516 0004921 Total 1819 1418 77.95 %610 527 548 694 283 547 0004922 In-Person 976 90 9.22 %45 22 23 33 13 23 0004922 Mail Voting 976 677 69.36 %319 250 234 272 136 329 0004922 Total 976 767 78.59 %364 272 257 305 149 352 0004923 In-Person 2195 260 11.85 %118 85 64 101 65 61 0004923 Mail Voting 2195 1203 54.81 %427 491 356 580 308 381 0004923 Total 2195 1463 66.65 %545 576 420 681 373 442 0004925 In-Person 2905 289 9.95 %149 72 97 107 39 93 0004925 Mail Voting 2905 1980 68.16 %939 704 727 879 379 885 0004925 Total 2905 2269 78.11 %1088 776 824 986 418 978 0004926 In-Person 1540 152 9.87 %82 41 60 61 27 42 0004926 Mail Voting 1540 1074 69.74 %463 359 421 478 206 466 0004926 Total 1540 1226 79.61 %545 400 481 539 233 508 0004928 In-Person 2757 297 10.77 %174 84 101 103 37 95 0004928 Mail Voting 2757 1932 70.08 %846 680 717 935 387 752 0004928 Total 2757 2229 80.85 %1020 764 818 1038 424 847 0004930 In-Person 1589 203 12.78 %82 63 47 83 55 55 0004930 Mail Voting 1589 1470 92.51 %571 545 467 678 395 525 0004930 Total 1589 1673 105.29 %653 608 514 761 450 580 0004933 In-Person 2483 285 11.48 %147 102 78 123 68 77 0004933 Mail Voting 2483 1418 57.11 %568 579 434 645 379 527 0004933 Total 2483 1703 68.59 %715 681 512 768 447 604 0004937 In-Person 1457 182 12.49 %82 61 51 73 39 48 0004937 Mail Voting 1457 715 49.07 %292 241 223 349 180 256 0004937 Total 1457 897 61.56 %374 302 274 422 219 304 0004939 In-Person 3463 331 9.56 %158 107 68 143 78 109 0004939 Mail Voting 3463 1879 54.26 %762 682 599 862 513 725 0004939 Total 3463 2210 63.82 %920 789 667 1005 591 834 0004940 In-Person 1223 123 10.06 %64 42 44 42 22 35 0004940 Mail Voting 1223 831 67.95 %378 305 303 373 146 377 0004940 Total 1223 954 78.00 %442 347 347 415 168 412 0004941 In-Person 3112 385 12.37 %166 126 80 161 100 113 0004941 Mail Voting 3112 1491 47.91 %584 552 433 718 385 535 0004941 Total 3112 1876 60.28 %750 678 513 879 485 648 0004945 In-Person 2611 298 11.41 %115 104 71 110 70 76 0004945 Mail Voting 2611 1357 51.97 %500 521 406 603 341 508 0004945 Total 2611 1655 63.39 %615 625 477 713 411 584 Total - In-Person 33409 3696 11.06 %1763 1152 991 1465 810 1033 Total - Mail Voting 33409 20325 60.84 %8309 7473 6727 9430 4879 7979 Printed: Tuesday, December 3, 2024 11:22 AM Page 453 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 172 of 194 1 City of Gilroy Council Member Registered VotersVoters CastTurnout (%)Terence FugazziFred TovarStefanie ElleZach HiltonRebeca ArmendarizKelly RamirezContest Total 33409 24021 71.90 %10072 8625 7718 10895 5689 9012 Printed: Tuesday, December 3, 2024 11:22 AM Page 454 of 1073Data Refreshed: Tuesday, December 3, 2024 11:22 AM Santa Clara Santa Clara November 5 2024 General Election November 5, 2024 General Election SOV by Precinct November 5, 2024 7.1 p. 173 of 194 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Selection of Mayor Pro Tempore Following the November 5, 2024 General Election Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:City Clerk Submitted By:Beth Minor, Interim City Clerk Prepared By:Beth Minor, Interim City Clerk STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Elect a Mayor Pro Tempore for calendar year 2025. EXECUTIVE SUMMARY The City Charter contains the requirement to elect a Mayor Pro Tempore following the “election or appointment of a member to the Council.” Following the election of November 5, 2024, it is appropriate that the Council elect a new Mayor Pro Tempore for the calendar year 2025. BACKGROUND Section 502 of the Charter is entitled “Mayor Pro Tempore” and describes the following: “At the first meeting of the Council following the election or appointment of a member to the Council, the Council shall elect one of its members as Mayor Pro Tempore who shall act as Mayor during the absence or inability of the Mayor to act. In the case of the temporary absence or disability of both the Mayor and the Mayor Pro Tempore, the Council shall elect one of its members to act as Mayor Pro Tempore.” As new Council Members have started their terms on December 9, 2024, it is now appropriate that the Council elect a new Mayor Pro Tempore to serve during the calendar year 2025. 10.1 p. 174 of 194 Selection of Mayor Pro Tempore Following the November 5, 2024 General Election City of Gilroy City Council Page 2 of 2 December 9, 2024 FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact. PUBLIC OUTREACH This item was listed on the agenda for tonight and the agenda was posted outside of Council Chambers. 10.1 p. 175 of 194 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Administration Submitted By:Bryce Atkins, Assistant to the City Administrator Prepared By:Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Approve representative seat assignments as determined by Mayor Bozzo per California Government Code Section 40605. BACKGROUND Pursuant to California Government Code Section 40605, Mayor Bozzo has reviewed the Council's appointments to regional and local boards and committees. After a thorough examination, he has recommended changes in appointments for 2025, including required adjustments to reflect changes in elected council members since the November 5, 2024 election. Below is the list of appointments for 2025 Board or Committee Name Representative(s)Alternate(s) Association of Bay Area Governments (ABAG) Marques Ramirez Cal Train Citizen Advisory Committee CAC Steven Seebart N/A Cal Train Policy Group Hilton Cline Downtown Committee (5)N/A N/A Gilroy Economic Dev. Partnership (2) (Inactive) N/A N/A 10.2 p. 176 of 194 Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees City of Gilroy City Council Page 2 of 2 December 9, 2024 Board or Committee Name Representative(s)Alternate(s) Gil. Gardens Board of Directors Bozzo Ramirez Sister Cities Ramirez Cline Gilroy Youth Task Force Cline Ramirez Santa Clara Expressway Plan 2040 Policy Advisory Board (PAB) Cline Hilton Santa Clara County Library Joint Powers Authority Bracco Marques Santa Clara Habitat Agency Board Marques N/A Santa Clara Valley Agency Implementation Board Marques N/A Santa Clara Water Commission Bracco Fugazzi Valley Water Joint Water Resource Committee Bracco, Bozzo N/A Silicon Valley Clean Energy Authority JPA Board Hilton Cline Silicon Valley Regional Interoperability Authority Board (SVRIA) Cline Fugazzi South County Regional Wastewater Auth. (SCRAW) (3) Bracco, Fugazzi, Ramirez Marques South County Youth Task Force Policy Team Bozzo Hilton Source Wise Advisory Dyanne Hofstad N/A VTA Bike Ped. Advisory Com.Eugene Bernosky N/A VTA Board of Directors Mayor Mark Turner Bozzo VTA Mobility Partnership Cline, Fugazzi N/A VTA Policy Advisory Committee Hilton Cline Visit Gilroy Calif. Welcome Center Fugazzi Cline Santa Clara Housing and Community Development Advisory Com. (HCDAC) Ramirez Bozzo Cities Association of Santa Clara County N/A N/A 10.2 p. 177 of 194 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Commemorative Flag Application Review for Calendar Year 2025 Meeting Date:December 9, 2024 From:Jimmy Forbis, City Administrator Department:Administration Submitted By:Jimmy Forbis, City Administrator Prepared By:Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Council consideration regarding the Commemorative Flag Flying Application for the Progressive Pride Flag. BACKGROUND At the February 7, 2022 City Council regular meeting, Council adopted the amended and restated Flying Flags at City Facilities Policy (Policy). The Policy identifies the requirements and application process established to receive approval to fly a commemorative flag at City Hall. ANALYSIS The City received one application during the application window for requesting a commemorative flag attached to this staff report. The flag application is to fly the Progressive Pride Flag in June. As this is the third year for the flag, signatures were required. The applicant submitted over the 150 signatures required as this is the second year of application. The applicant submitted the application fee along with the application itself. The flag application does not feature any deviations from the prior year’s application, which was approved. Staff is submitting the application to the Council for consideration. 10.3 p. 178 of 194 Commemorative Flag Application Review and Approval for Calendar Year 2025 City of Gilroy City Council Page 2 of 2 December 9, 20241 8 0 4 Should the Council determine to approve the application, adoption of the attached resolution would be required per the adopted policy. ALTERNATIVES Council may choose to approve or reject the application. FISCAL IMPACT/FUNDING SOURCE No net cost is expected. The purchase of registered voter data was $152. The largest fiscal impact is the cost of staff time in comparing voter registration records to those who signed onto the application, and the raising and lowering of the flag by City staff. The applicant provided the required application fee of $552 which captures full cost recovery. PUBLIC OUTREACH This item was included on the publicly posted agenda for this meeting. NEXT STEPS Staff will reach out to the applicant with the status of their application based on the Council action taken. Attachments: 1. Commemorative Flag Application - Progressive Pride Flag 2. Flying Flags at City Facilities Policy 3. Letter of Support from State Senator John Laird 4. Letter of Support from Santa Clara County Supervisor Sylvia Arenas 5. Letter of Support from BAYMEC 6. Letter of Support from Congressional Representative Zoe Lofgren 10.3 p. 179 of 194 10.3 p. 180 of 194 10.3 p. 181 of 194 10.3 p. 182 of 194 10.3 p. 183 of 194 City of Gilroy Flying Flags at City Facilities Policy Amended and Restated February 7, 2021 Policy Effective February 8, 2022 10.3 p. 184 of 194 City of Gilroy Flying Flags at City Facilities Policy Purpose To create a Council policy regarding the flying of flags at City Facilities, inclusive of the flags of the United States, the State of California, Sister Cities, and any Commemorative Flags as may be authorized by the City Council. Policy I. Definitions a. “Applicant” shall mean an individual, business, corporation, organization or other entity residing or based within the City Limits of the City of Gilroy who submits an application to display a Commemorative Flag pursuant to this policy. b. “Application Cycle” shall mean a period of time as outlined in this policy for Applicants to submit an application for a Commemorative Flag to be displayed during the subsequent calendar year. Complete applications compliant with the requirements of this policy submitted during the Application Cycle will be submitted to the City Council for consideration. c. “Commemorative Flag” shall mean a flag that identifies with a specific date, historical event, cause, nation, or group of people, whereby the City honors or commemorates the date, event, cause, nation, or group of people by flying the flag. d. “Sister City Flag” shall mean a flag of another city that is an officially designated Sister City to the City of Gilroy. II. General Policy a. It is the policy of the City of Gilroy that the City’s flag poles are not intended to serve as a forum for free expression by the public, but rather for the display of the Flags of the United States and the State of California. The flag poles located at all City facilities may also be used to display the flags of the City of Gilroy, any Sister City Flag, and any Commemorative Flag as may be authorized by the City Council as an expression of the City’s official sentiments. III. Flags of the United States and the State of California a. The Flag of the United States and the Flag of the State of California shall be displayed in conformance with the requirements as provided in Title 1, 10.3 p. 185 of 194 City of Gilroy Flying Flags at City Facilities Policy Division 2, Chapter 3 of the California Government Code entitled “Display of Flags” b. The Flag of the United States shall further be displayed and handled in accordance with Title 4, Chapter 1 of the United States Code entitled “The Flag”; sometimes referred to as the United States Flag Code. Where the language of this code is mandatory, the City shall comply with the requirement. Where this code provides advisory language, the City shall follow the advisory language to the extent feasible. IV. Flags of the City of Gilroy and any Sister City Flag a. The Flag of the City of Gilroy, when displayed, shall be displayed in conformance with the requirements as provided in Title 1, Division 2, Chapter 3 of the California Government Code entitled “Display of Flags” b. Any Sister City Flags, when displayed, shall be flown in a manner subordinate to the requirements for the Flags of the United States and the State of California. Additionally, they shall be in the fourth position of honor, after the Flags of the United States, the State of California, and the City of Gilroy. V. Commemorative Flags a. Requirements for Requesting the City to Display a Commemorative Flag i. For an Applicant to request the display of a Commemorative Flag at the Gilroy City Hall, an application must be completed which shall require at a minimum the following: 1. The full name, physical address, phone number, electronic mail address, and other such contact information for the applicant as may be requested by the City. 2. The name and a full color image accurately depicting the Commemorative Flag. 3. A statement of explanation or purpose of the Commemorative Flag, including what the flag stands for; any local, national, or international affiliation; brief history; website address; and any other relevant information to be considered by the City Council. 4. The month in which the Commemorative Flag is requested to be displayed. 5. A minimum of 150 signatures from registered voters in Gilroy, each of whom having reached the age of 18 years or greater and are successfully verified as meeting these requirements by the City through utility billing, property 10.3 p. 186 of 194 City of Gilroy Flying Flags at City Facilities Policy owner information, or other means that may be available to the City. If the City is unable to verify that one or more signatures meet these requirements through available means of the City, the applicant will be advised of the number of signatures deemed unverifiable and removed from the total count. a. The signatures are required for the initial application when a commemorative flag is first requested. If the applicant re-applies each year for the same flag with the same information, the signature requirement is waived every other year, so long as the applications are continuous. If there is a break in the applications for a year or more and an applicant reapplies, even if the last application required signatures, the signature requirement will apply. 6. Whether the applicant intends to hold a ceremony or event for the flag raising, and verification of the applicant’s understanding regarding the requirement to obtain approvals and permits and pay fees to encroach upon or utilize any public right-of-way or City property for the event. 7. An application fee, the amount of which shall be determined and updated/maintained as part of the Master Fee Schedule. 8. If approved, the applicant must provide the flag to be flown. The flag must be provided to City staff for inspection of the actual flag to be displayed, which must conform with specifications as provided by the City for size, shape, and structure. The flag must be in acceptable condition for display, determined at the sole discretion of the City. ii. The specific format of the application and submittal procedures shall be at the discretion of the City Administrator or their designee, so long as the requirements for Applicants as outlined in this policy are contained on the application. iii. The Application Cycle shall open the first day of September (September 1st) each year and shall close at the end of business on the thirty-first day of October (October 31st) each year. Whenever either of these dates fall on a non-business day for the City, the deadlines shall move to the following business day for the City. b. Commemorative Flag Approval Process i. Applications that are complete and compliant with this policy shall be presented to the City Council for consideration during a City 10.3 p. 187 of 194 City of Gilroy Flying Flags at City Facilities Policy Council meeting held before the end of December each year, after the close of the Application Cycle. ii. Council, in its sole discretion, shall consider the applications, and render a decision to approve which, if any, Commemorative Flags are approved for display. iii. The following requirements regarding approval of displaying Commemorative Flags shall be considered in determining which Commemorative Flags be approved for display: 1. Only one flag may be displayed at a time. 2. Each flag shall be displayed only for one calendar month, beginning with the first day of the month and ending on the last day of the month. 3. Approval shall only be valid for one calendar year. A new application must be filed for any succeeding years, even for flags that have been approved for prior years. This is to allow open and equal opportunities for competing Commemorative Flags that may typically be displayed during the same month each year. 4. Commemorative flags cannot contain messaging or content of the following nature: (a) promoting or opposing a political party, candidate, campaign, or political organization; (b): religious, commercial, racial or other discriminatory themes/speech, adult or sexually explicit, lewd, or obscene themes or materials; illegal activity; drug or alcohol themes or materials. Flag applications that contain these or reasonably related material shall not be considered. iv. Approval shall be completed via a resolution adopted by the City Council identifying the list of which Commemorative Flags were approved, and for which month. c. Displaying of Commemorative Flags i. The City’s involvement in the displaying of Commemorative Flags shall be limited to only the following: 1. Raising of the Commemorative Flag in the earlier part of the morning of the first day of the month. 2. Lowering of the Commemorative Flag in the late afternoon on the last day of the month. 3. Announce the flag raising on the City’s social media and electronic newsletter(s). 4. Where the first or last day of the month lands on a weekend or observed City holiday, and City staff cannot raise or lower the flag on the exact day of either the beginning and/or end 10.3 p. 188 of 194 City of Gilroy Flying Flags at City Facilities Policy of the month, the lowering of the previous month’s flag will occur in the morning of the next business day, at the same time as the raising of the next month’s flag. ii. Commemorative Flags may only be displayed on a flag pole located at City Hall. d. Commemorative Flag Events i. Should an Applicant wish to host a ceremonial event, the applicant must file an application requesting an encroachment permit, special event permit, and/or a facility rental to have the event. The specific permits needed will depend upon the nature of the event and shall be at the discretion of the City. The Applicant will be required to pay the full application and permit fees for each permit that is required. ii. The application document shall contain language to advise the Applicant: 1. To contact the Community Development Department to inquire about which permits may be required based on the type of event they would like to host. 2. Information about the required deadlines to submit applications, and lead-times between when a permit application is submitted and when an approval or rejection decision is made. 3. That such events are not approved unless and until an official approval of all required permits is granted. 4. The application fees that must be paid by the applicant. iii. The normal fees, insurance requirements, attestations and permit requirements will be required to host the event, and that approval is not guaranteed because of the flag being raised, lowered, or displayed. iv. All conditions of approval in each permit, as required, must be followed for the event to be held. 10.3 p. 189 of 194 December 2, 2024 Honorable Mayor & Gilroy City Council Members City of Gilroy 7351 Rosanna St Gilroy, CA 95020 Re: June LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall -- SUPPORT I write to express my strong support regarding your agenda item to recognize June as LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall, which will heighten awareness of LGBTQ+ Pride Month, as well as celebrate diversity, equity, social justice and inclusion. It has been my distinct privilege to represent the City of Gilroy in the CA State Senate over the past four years, and although I lose this portion of my district in the next couple of weeks, I want to strongly implore you to continue your support for the LGBTQ+ community. LGBTQ+ Pride Month events attract millions of participants around the world. Memorials are held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had in our history locally, nationally and internationally. The lack of awareness and understanding of issues facing LGBTQ+ children and youth has contributed to increased rates of school dropouts, academic failure, suicide, and school disengagement. Education regarding LGBTQ+ issues increases understanding and cultivates respect for LGBTQ+ students and cultivates a culture of allyship. Your actions made history in 2021 by raising the first Pride Flag in the city’s history, and Gilroy Unified School District made history by raising the first Pride Flag at their District Offices in 2024. Beginning in 2025, GUSD will raise the Pride Flag at all District Facilities and High Schools. Acts of hatred against LGBTQ+ members of our community will not be tolerated; hate and discrimination have no part in our community. As one of the first openly gay Mayors in the United States, I have seen firsthand the positive impact visibility can have in our community. I support this Resolution and urge your “Aye” vote. Sincerely, John Laird State Senator, 17th District 10.3 p. 190 of 194 Svlvra Aneru¡s SANTA CLARA CouNTy SUPERVISoR, DISTRICT ONE COUNTY GOVERNMENT CENTER, EAST WING 70 WEST HEDDING STREET, ,IOIH FLOOR SAN JOSE, CALIFORNIA 95110 TEL: (408) 299-50'10 . FAX: (669) 255-2200 Districtl @bos.sccgov.org . www.supervisorarenas.org December 03,2024 The Honorable Mayor and Gilroy City Council Members The City of Gilroy 7351 Rosanna St Gilroy, CA RE: SUPPORT FOR JUNE LGBTQ+ PRIDE MONTH & RAISING OF. THE PRIDE FLAG AT CITY HALL Dear Honorable Mayor and City Councilmembers, As Santa Clara County Supervisor for District 1,I write to express my strong support to recognize June as LGBTQ+ Pride Month and for a Flag Raising Ceremony to be held at City Hall, which will heighten awareness of ouTLGBTQ+ community, as well as celebrate diversity, equity, social justice, and inclusion in the City of Gilroy. The rainbow flag, also known as the LGBTQ+ Pride Flag, serves a symbol of pride, diversity, and unity for our lesbian, gay, bisexual, transgender, and queer communities during Pride Month. The rainbow flag is a staple at most celebrations that praise and commend the LGBTQ+ community, such as pride parades, picnics, workshops, symposi4 and concerts. All of these celebrations highlight and recogni ze The progress made towards equality, acceptance, and respect, while also raising awareness of the issues facing the LGBTQ+ community, educating the public about LGBTQ+ history, and to acknowledge the impact that our LGBTQ* communities have had on history at the local, state, and national level. Our communities benefit when there is inclusiveness, understanding, and acknowledgement. Youractions to include and highlight the LGBTQ* community by raising the first Pride Flag in the Ciry of Gilroy's history this past year created a sense of unity in South County while also cultivating a culture of allyship between the City of Gilroy and the LGBTQ+ community. We need to keep the momentum going and continue to support our LGBTQ+ community. As a County Supervisor,I remain committed to supporting our LGBTQ+ community by ensuring that Santa Clara County has no room for hate or discrimination based on sexual orientation. Acts of hatred against members of the LGBTQ+ community will not be tolerated in our county - including in Gilroy and South County. This resolution is a powerful statement of our shared values and is a vital step towards fostering a community where everyone feels safe and supported. This is why I urge you to support this resolution and vote "yes" to commemorate Pride Month in Gilroy. In Community, ia Arenas Clara County Board of Supervisors, District I .@" 10.3 p. 191 of 194 P.O. Box 112316 Campbell, California 95011 December 2, 2024 Honorable Mayor & Gilroy City Council Members City of Gilroy 7351 Rosanna St. Gilroy, CA 95020 Subject: Support for June LGBTQ+ Pride Month and the Pride Flag Raising at City Hall Dear Mayor and City Council Members, On behalf of BAYMEC, California’s oldest nonpartisan LGBTQ+ Political Action Committee, I am writing to express our enthusiastic support for recognizing June as LGBTQ+ Pride Month and for raising the Pride Flag at Gilroy City Hall. These actions stand as powerful symbols of inclusion, diversity, and community solidarity, demonstrating Gilroy’s commitment to equity and social justice. The rainbow Pride Flag is more than a banner; it represents the resilience, pride, and contributions of the Lesbian, Gay, Bisexual, and Transgender community. Around the globe, Pride Month brings together millions through parades, concerts, workshops, and memorials, which honor lives lost to hate crimes and HIV/AIDS. These celebrations and remembrances amplify the critical work still needed to achieve full equality. In our local community and across the country, LGBTQ+ youth face unique challenges, including bullying, discrimination, and higher risks of mental health struggles. California’s Education Code and civil rights laws establish a vital framework to combat these issues, yet the work of fostering safe, inclusive spaces is ongoing. Acknowledging Pride Month and raising the Pride Flag is a profound step in creating a supportive environment where all students and families feel seen and valued. Your leadership in raising the Pride Flag for the first time in 2021 was a landmark moment, demonstrating Gilroy’s dedication to inclusion. The Gilroy Unified School District’s commitment to displaying the Pride Flag at its offices and facilities is another inspiring testament to our community’s progress. Continuing this tradition sends a clear message: hatred and discrimination have no place in Gilroy. It reaffirms that this city celebrates diversity, values equality, and upholds the dignity of all its residents. We strongly urge you to support this resolution, ensuring Gilroy remains a beacon of inclusivity and pride for generations to come. Sincerely, ORIGINAL SIGNED BY Drew Lloyd President, BAYMEC 10.3 p. 192 of 194 NOT PRINTED AT GOVERNMENT EXPENSE Zoe Lofgren Member of Congress December 3, 2024 Honorable Mayor & Gilroy City Council Members City of Gilroy 7351 Rosanna St Gilroy, CA 95020 Re: June LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall- Support As the Member of the U.S. House of Representatives proudly representing the City of Gilroy, I support your agenda item to recognize June as LGBTQ+ Pride Month & Raising of the Pride Flag at City Hall. This will heighten awareness of LGBTQ Pride Month, as well as celebrate diversity, equity, social justice and inclusion. According to the Library of Congress the month of June is a time to celebrate our dynamic Lesbian, Gay, Bisexual, Transgender, and Questioning (LGBTQ+) community, raise awareness of quality services, and foster a dialogue to promote healthy and safe communities for all. The rainbow flag, also known as the LGBTQ+ pride flag, serves as a symbol of the LGBTQ+ social movement. LGBTQ Pride Month celebrations include parades, picnics, parties, workshops, symposia and concerts. These events attract millions of participants around the world. Memorials are also held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had on history locally, nationally, and internationally. All children should be able to attend school in a safe and inclusive environment free from discrimination. Civil rights laws and the California Education Code sections 200-2201 contribute to such environments. The lack of awareness and understanding of issues facing LGBTQ+ children and youth can contribute to higher rates of school dropout, academic failure, suicide and school disengagement. Education regarding LGBTQ+ issues can increase understanding and cultivate respect for LGBTQ+ students and cultivates a culture of allyship. Your actions made history in 2021 by raising the first Pride Flag in the city’s history and Gilroy Unified School District made history by raising the first Pride Flag at their District Offices in 2024. Beginning in 2025, GUSD will raise the Pride Flag at all District Facilities 1 California Education Code, Section 220. (Amended by Stats. 2017, Ch. 493, Sec. 3, AB 699, effective January 1, 2018). The California Education Code, Section 220, prohibits discrimination in educational programs or activities based on various characteristics. Specifically, it prohibits discrimination on the basis of disability, gender, gender identity, gender expression, nationality, race or ethnicity, religion, sexual orientation, or any characteristic included in the definition of hate crimes under Penal Code Section 422.55, including immigration status. This provision applies to any educational institution that receives state financial assistance or enrolls students who receive state financial aid. 10.3 p. 193 of 194 NOT PRINTED AT GOVERNMENT EXPENSE and High Schools. Hate and discrimination, including against LGBTQ+ members of our community, have no part in our community. I support this Resolution and wanted you to know my views. Sincerely, Zoe Lofgren Member of Congress 10.3 p. 194 of 194