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Home My WebLink About03/18/2019 City Council - Regular Meeting Packet March 14, 2019 2:44 PM City Council Regular Meeting Agenda Page1 MAYOR Mayor Roland Velasco COUNCIL MEMBERS Marie Blankley Dion Bracco Peter Leroe-Muñoz Carol Marques Fred Tovar Cat Tucker CITY COUNCIL AGENDA CITY OF GILROY CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET GILROY, CA 95020 SPECIAL MEETING 5:30 P.M. REGULAR MEETING 6:00 P.M. MONDAY, MARCH 18, 2019 CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Persons wishing to address the Council are requested, but not required, to complete a Speaker’s Card located at the entrances. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. A minimu m of 12 copies of materials should be provided to the City Clerk for distribution to the Council and Staff. Please limit your comments to 3 minutes. 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 a minimum of 72 hours prior to the meeting at (408) 846-0204. A sound enhancement system is also available for use in the City Council Chambers. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existin g facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agend a packet in the lobby of Administration at City Hall, 7351 Rosanna Street during normal business hours. These materials are also available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. The City Council meets regularly on the first and third Monday of each month, at 6:00 p.m. If a holiday, the meeting will be rescheduled to the following Monday, with the exception of the si ngle meeting in July which lands on the first day of the month not a holiday, Friday, Saturday or Sunday. City Council Regular Meeting Agenda 03/18/2019 Page2 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 pu blic. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or shawna.freels@cityofgilroy.org SPECIAL MEETING - INTERVIEWS 5:30 P.M. Call to Order and Roll Call Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Housing Advisory Committee and Parks and Recreation Commission 1. Staff Report: 2. Public Comment 3. Possible Action: Adjournment REGULAR MEETING 6:00 P.M. I. OPENING A. Call to Order 1. Pledge of Allegiance 2. Invocation 3. City Clerk's Report on Posting the Agenda 4. Roll Call B. Orders of the Day C. Employee Introductions II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations III. PRESENTATIONS TO THE COUNCIL City Council Regular Meeting Agenda 03/18/2019 Page3 PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL (This portion of the meeting is reserved for persons desiring to address the Council on matters not on this agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written material provided by public members for Council agenda item “public comment by Members of the Public on items not on the agenda” will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically.) A. Presentation to Council by Silicon Valley Clean Energy City Council Regular Meeting Agenda 03/18/2019 Page4 IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Gilroy Downtown Business Association Board (alternate), Gilroy Sister Cities Association (alternate), Santa Clara Co. Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Planning Advisory Committee (alternate), South County Regional Wastewater Authority, South County Youth Task Force Policy Team (alternate), Street Naming Committee Council Member Tucker –CalTrain Policy Group, General Plan Advisory Committee, Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Street Naming Committee, Visit Gilroy Board Council Member Blankley - ABAG, Cities Association of Santa Clara Co. Board of Directors (alternate), Economic Development Corporation Board, Gilroy Sister Cities Association, Gilroy Youth Task Force (alternate), SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Regional Wastewater Authority, VTA Board of Directors Alternate, VTA Policy Advisory Committee, VTA South County City Group Council Member Marques - Gilroy Downtown Business Association Board, Santa Clara Valley Habitat Agency Governing Board (alternate), Santa Clara Valley Habitat Agency Implementation Board (alternate), Silicon Valley Clean Energy JPA Board (alternate), URM Task Force Sub-Committee, VTA Committee for Transit Accessibility (alternate) Council Member Tovar –Santa Clara Co. Expressway Plan 2040 Policy Advisory Board, Santa Clara Co. Library JPA (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCVWD Water Committee (alternate), Silicon Valley Clean Energy JPA Board, South County Regional Wastewater Authority, South County United for Health, Street Naming Committee, VTA Committee for Transit Accessibility, VTA Policy Advisory Committee (alternate) Council Member Leroe-Muñoz - ABAG (alternate), CalTrain Policy Group (alternate), Gilroy Youth Task Force, Historic Heritage Committee, SCVWD Water Committee, Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force Policy Team, VTA Mobility Partnership Mayor Velasco - Cities Association of Santa Clara Co. Board of Directors, Economic Development Corporation Board, General Plan Advisory Committee, Gilroy Gardens Board of Directors, Historic Heritage Committee (alternate), South County Joint Planning Advisory Committee, South County Regional Wastewater Authority (alternate), URM Task Force Sub-Committee, VTA Mobility Partnership, VTA South County City Group (alternate) V. FUTURE COUNCIL INITIATED AGENDA ITEMS VI. CONSENT CALENDAR (ROLL CALL VOTE) All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears. City Council Regular Meeting Agenda 03/18/2019 Page5 A. Minutes of the March 4, 2019 Regular Meeting B. Acceptance of the Fiscal Year 2018 Federal Single Audit C. Claim of Jesus Martinez (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) VII. BIDS AND PROPOSALS A. Award of an Agreement to 4LEAF, Inc. in the Amount of $375,000 for Construction Management and Inspection Services for the First Street Water Line Replacement Project, 16-PW-217 1. Staff Report: Girum Awoke, Public Works Director 2. Public Comment 3. Possible Action: Award agreement to 4LEAF, Inc. in the amount of $375,000 for construction management and inspection services for the First Street water line replacement project 16-PW -217, and authorize the City Administrator to execute the agreement and related documents. VIII. PUBLIC HEARINGS A. Zoning Amendment Request From Open Space (OS) to Commercial Industrial (CM) for a 103+/- Acre Site Located Northeast of Bolsa Road, APN 841-31-003, 841-31-019 and 841-31-022, Commonly Known as the Barberi and Denice/Filice Properties. Applicant George Renz of Renz & Renz. (Z 18- 08) 1. Staff Report: Kristi Abrams, Community Development Director 2. Disclosure of Ex-Parte Communications 3. Open Public Hearing 4. Close Public Hearing 5. Possible Action: Motion to read the ordinance by title only and waive further reading; and Motion to introduce an ordinance of the City Council of the City of Gilroy rezoning a 103+/- acre site located northeast of Bolsa Road, APN 841-31-003, 841-31-019 and 841-31-022 from Open Space (OS) to Commercial Industrial (CM) (Z 18-08) IX. UNFINISHED BUSINESS A. Report and Update on the Request by Meritage Homes to Modify Property Improvement Agreement 2015-06 for the Harvest Park II Development City Council Regular Meeting Agenda 03/18/2019 Page6 1. Staff Report: Girum Awoke, Public Works Director 2. Public Comment 3. Possible Action: a) Receive report, and; b) Deny the request by Meritage Homes to modify Property Improvement Agreement 2015-06 for the Harvest Park II development, and; c) Direct staff to conduct an analysis for projects within the traffic circulation master plan, identify options to update the traffic impact fee (TIF) for different reimbursement alternatives and develop a clear policy document and reimbursement procedure for the TIF program. B. Appointments to the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Housing Advisory Committee and Parks and Recreation Commission 1. Staff Report: Shawna Freels, City Clerk 2. Public Comment 3. Possible Action: Appoint Members to the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Housing Advisory Committee and Parks and Recreation Commission. X. INTRODUCTION OF NEW BUSINESS A. Report on Quality of Life and Homelessness Plan 1. Staff Report: Scot Smithee, Police Chief 2. Public Comment 3. Possible Action: Receive report. XI. CITY ADMINISTRATOR'S REPORTS XII. CITY ATTORNEY'S REPORTS XIII. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION; Paragraph (1) of Subdivision (d) of 54956.9 and Gilroy City Code Section 17A.11(3)(a); Case Name: Patricia Harrell v. City of Gilroy, et al.; Santa Clara Co. Superior Court, Case No. 17VC314125, Filed August 7, 2017 B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Government Code Section 54956.9, and Gilroy City Code Section 17A.11 (3) (b) One (1) Case as Defendant 1. Public Comment on Closed Session Items 2. City Attorney’s Advice Re: Entering into Closed Session Items 3. Adjourn to Closed Session City Council Regular Meeting Agenda 03/18/2019 Page7 ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Councilmember if required by Government Code Section 54957.1 and Gilroy Code Section 17A.13 (a); Public Report of the vote to continue in closed session if required under Gilroy Code Section 17A.11 (5) ADJOURNMENT MEETING DATES MEETING DATES* meeting is webstreamed and televised MARCH, 2019 18* Regular Meeting - 6:00 p.m., City Council Chambers 19 Special Meeting/Closed Session - 6:00 p.m., City Council Chambers 25 Special Joint Meeting with GUSD - 6:00 p.m., 7810 Arroyo Circle APRIL, 2019 1* Regular Meeting - 6:00 p.m., City Council Chambers 8* Special Meeting/Study Session - 6:00 p.m., City Council Chambers 15* Regular Meeting - 6:00 p.m., City Council Chambers MAY, 2019 6* Regular Meeting - 6:00 p.m., City Council Chambers 7* Special Meeting/Study Session - 6:00 p.m., City Council Chambers 20* Regular Meeting - 6:00 p.m., City Council Chambers Packet Pg. 8 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 9 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 10 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 11 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 12 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 13 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 14 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 15 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Packet Pg. 16 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, 12/4/2018 16:22 City of Gilroy Application for Board, Committee and Commission Appointment Board/Committee/Commission of Interest Name: Robert Miller Phone number(s): Parks & Recreation Commission email address*: Are you a registered voter within the City limits? Yes Physical Address*: List your qualifications for this appointment: I have lived in Gilroy for more than 26 years and, along with my daughter who grew up and went through the public school system here, have extensively used City parks and taken part in recreation programs. My background includes extensive participation in individual and group sports and physical fitness activities, including as a basketball and tennis player on high school and college teams, a long-distance runner (completed 20 marathons), and a hiker. I was a tennis instructor for three years in the County Parks and Recreation program where I grew up in Maryland and also worked as a basketball referee in a CYO program. I am a professor of geology at San Jose State University where I teach field classes and have been a department chair, which has given me experience in dealing with a diverse group of students, faculty, and administrators, and in managing budgets. I am currently a board member for a local running club (South Valley Running Club) and volunteer for the Mt. Madonna Challenge and other local races. List any service to the community including any prior appointments: Santa Teresa Soundwall Committee Jordan Elementary School Parent Advisory Committee (1997-1998) 2020 General Plan Update Committee Hecker Pass Corridor Specific Plan Garlic Festival South Valley Running Club - Board member What are your goals while serving on this Board/Commission/Committee?: I have a strong interest in promoting City Parks and Recreation classes. From my perspective, the City does a good job in these areas, but it is important that we increase participation by residents of all ages and parts of our community, and make residents more aware of recreational opportunities. In addition to encouraging youth after -school activities, a significant goal is to increase physical activity of adults, which is important for public health. We should also be aware of changing recreational interests of our residents, and have the flexibility to react to these changes. My hope is that I can help the commission meet these goals. Why are you the most qualified to serve on this Board/Commission/Committee? I believe that my broad background and perspective, collegiality, and sincere desire to promote the mission of the Parks and Recreation Commission make me well qualified for this position. All Commission, Board and Committee applications are a public record Packet Pg. 17 Communication: Interviews for Open Seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, 1 City Council Meeting Minutes 03/4/2019 City of Gilroy City Council Meeting Minutes March 4, 2019 I. OPENING A. Call to Order The meeting was called to order at 6:00 PM by Mayor Mayor Roland Velasco 1. Pledge of Allegiance Mayor Pro Tempore Blankley led the pledge of allegiance. 2. Invocation 3. City Clerk's Report on Posting the Agenda City Clerk Shawna Freels announced that the agenda had been posted on February 27, 2019 at 5:05 p.m. Attendee Name Title Status Arrived Mayor Roland Velasco Mayor Present 6:00 PM Marie Blankley Council Member Present 5:56 PM Dion Bracco Council Member Present 5:48 PM Peter Leroe-Muñoz Council Member Present 5:59 PM Carol Marques Council Member Present 5:56 PM Fred Tovar Council Member Present 5:53 PM Cat Tucker Council Member Present 5:53 PM B. Orders of the Day There were no agenda changes. C. Employee Introductions There were none. II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations 1. Proclamation Naming the Month of March Red Cross Month Mayor Velasco presented the proclamation. 2. Proclamation Naming the Month of March Youth Arts Month Mayor Velasco presented the proclamation. III. PRESENTATIONS TO THE COUNCIL Gary Arnold spoke on community TV and communist activity describing the various elected officials in the party suggesting that the city break contacts with regional partners who supported the efforts. Victorius Alexander spoke on Brown Act and 1st amendment rights and issues at the Santa Clara County Board of Supervisor's meetings. 6.A Packet Pg. 18 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 2 City Council Meeting Minutes 03/4/2019 Public comment was then closed. IV. REPORTS OF COUNCIL MEMBERS Council Member Tucker reported on the grand opening of the Gilroy California Welcome Center. Mayor Pro Tempore Blankley reported on her first VTA meeting. Council Member Marques reported on the URM meeting announcing that 5 buildings were left to go through construction retrofit. Council Member Tovar reported on his tour of downtown with the City Administrator. Council Member Leroe-Muñoz congratulated the Gilroy California Welcome Center and reported on the Historic Heritage Meeting describing a narrative of the history of Gilroy that was being created. Mayor Velasco announced that the General Plan Advisory Committee would be meeting on March 28th. V. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Tucker requested a letter from the Council to support extra train service to Gilroy. The full Council supported sending the letter. VI. CONSENT CALENDAR (ROLL CALL VOTE) There were no items. VII. BIDS AND PROPOSALS A. Amendment to the Agreement With 4LEAF Inc. in the Amount of $375,000 for Construction Management and Inspection Services for First Street Water Line Replacement Project The staff report was presented by Public Works Director Awoke. Public comment was opened. Bill O'Connor spoke on determining how the changes occurred suggesting a requirement to identify the way the item had gotten to where it was. Public comment was then closed. 6.A Packet Pg. 19 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 3 City Council Meeting Minutes 03/4/2019 Possible Action: Approve an amendment to the agreement with 4LEAF, Inc. in the amount of $375,000 for construction management and construction inspection services for the First Street Water Line Replacement Project, with extending the term through December 30, 2019, and authorize the City Administrator to execute the amendment and related documents. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker VIII. PUBLIC HEARINGS There were none. IX. UNFINISHED BUSINESS A. Gilroy Housing Trust Fund Update and Funding Priorities for FY 2019-2020 and FY 2020-2021 The staff report was presented by Planner Carney. Public comment was opened. Jan Bernstein Chargin spoke on the programs that were funded through the Trust Fund describing in detail the monitoring of funding. Public comment was then closed. Direction was given to accept the recommendations as presented by staff with a reduction of the administrative costs to not exceed 50%. Possible Action: Review the Housing Trust Fund update and establish funding priorities for Fiscal Years 2019-2020 and 2020-2021. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker X. INTRODUCTION OF NEW BUSINESS A. Temporary Use Permit for Alpine Landscapes for a Temporary Office Trailer at 8585 Murray Avenue (TUP 18-19) The staff report was presented by Senior Planner Tambornini. The applicant spoke on the proposal describing the use and lease of the property. There were no public comments. 6.A Packet Pg. 20 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 4 City Council Meeting Minutes 03/4/2019 Possible Action: Approval of a temporary use permit for a temporary office trailer for Alpine Landscapes at 8585 Murray Avenue. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Marie Blankley, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker B. Consideration of Design for Gilroy Welcome Sign at the Southwest Corner of Santa Teresa Boulevard and Hecker Pass Highway The staff report was presented by Planner II Durkin. Public comment was opened. Jane Howard of the Visit Gilroy California Welcome Center suggested using the same terminology and involving the tourism sector in the creation of the signing. Tom Fischer described the direction of the sign suggesting that more public input be provided on design and terminology on the sign. Direction was given to work with the Wine Association and Visit Gilroy to create the design. Possible Action: Receive report and provide direction to staff. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Cat Tucker, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker C. Request by Meritage Homes to Modify Public Improvement Agreement 2015-06 for the Harvest Park II Development The staff report was introduced by City Administrator Gonzalez and further presented by Public Works Director Awoke. Public comment was opened. Bill O'Connor explained that the developer had signed an agreement with an estimate which they had participated in creating. Applicant James Suner spoke on impact fees, his consultant's estimate and an inadequate bridge that had to be re-built causing the costs of the development to rise. He concluded by asking the Council to continue the item to the next meeting. Jon Caukus of Meritage Homes provided background of the property improvement agreement, explaining that the City didn't know how much money was in the transportation impact fees. 6.A Packet Pg. 21 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 5 City Council Meeting Minutes 03/4/2019 Public comment was then closed. Direction was given to continue the item to the March 18, 2019 meeting for a report from City Attorney on the legality of off-site improvements, and additional information on how off-site improvements at 100%.have been dealt with in the past. RESULT: APPROVE [4 TO 3] MOVER: Dion Bracco, Council Member SECONDER: Fred Tovar, Council Member AYES: Dion Bracco, Peter Leroe-Muñoz, Carol Marques, Fred Tovar NAYS: Mayor Roland Velasco, Marie Blankley, Cat Tucker D. City Historian Volunteer Position Description The staff report was presented by City Clerk Freels. City Historian Echelberry further spoke on the item. There were no public comments. Possible Action: Adoption of a Resolution 2019-04 of the City Council of the City of Gilroy establishing a position description for the City Historian. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Marie Blankley, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker E. Proposed Ordinance Promoting the Right to do Business in Downtown and Promulgating Deed Notifications as a Condition of Discretionary Development Permits and Transfers of Property The item was introduced by City Administrator Gonzalez and the staff report was further presented by Senior Management Analyst Barber. Public comment was opened. Gary Walton spoke in support of the proposal and offered a suggestion to address the issue of getting existing rental tenants to sign an acknowledgment that they are in a business zone. Public comment was then closed. 6.A Packet Pg. 22 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 6 City Council Meeting Minutes 03/4/2019 Possible Action: Receive report and provide direction to staff. Direction was given to return to Council with the ordinance. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Dion Bracco, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker XI. CITY ADMINISTRATOR'S REPORTS There was none. XII. CITY ATTORNEY'S REPORTS There was none. XIII. CLOSED SESSION A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 and Gilroy City Code Section 17A.8 (a) (2) Property:7070 Chestnut Street, Gilroy (Gilroy Fire Station), APN 841 66 012; Negotiators: Gabriel Gonzalez, City Administrator; Other Party to Negotiations: Rogg Collins of Evergreen; Under Negotiations: Price and Terms of Payment B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2); Employee Name/Title: Shawna Freels, City Clerk C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11 (2) Name/Title: Gabriel Gonzalez, City Administrator There were no public comments. ADJOURNMENT The Council adjourned to closed session at 9:42 p.m. /s/ Shawna Freels, MMC City Clerk 6.A Packet Pg. 23 Communication: Minutes of the March 4, 2019 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) City of Gilroy STAFF REPORT Agenda Item Title: Acceptance of the Fiscal Year 2018 Federal Single Audit Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Finance Department Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Rosemary Guerrero Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Customer Service ☐ Enhanced Public Safety RECOMMENDATION Receive the fiscal year 2018 Federal single audit. RECOMMENDATION Staff recommends that City Council receive the FY18 Single Audit. EXECUTIVE SUMMARY Council is requested to accept and file the Fiscal Year 2018 (FY 18) Federal Single Audit for the City for the reporting period July 1, 2017 to June 30, 2018. BACKGROUND The City’s financial records are audited annually by the City’s external auditors, White Nelson Diehl Evans LLP. All non-Federal entities that expend $750,000 or more of Federal awards in a year are required to obtain an annual audit to comply with both the Single Audit Act Requirements and Office of Management and Budget (OMB) standards. The Single Audit has been completed and the independent auditors have 6.B Packet Pg. 24 indicated that the City of Gilroy has complied in all the material respects, with the types of compliance requirements that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. ANALYSIS The results of auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with Uniform Guidance and described in the schedule of findings and questioned costs 2018-001 and 2018-002. The opinion on each major federal fund is not modified with respect to these findings. The Recommendation 2018-001: The City charge salaries and wages to the Community Development Block Grant (CDBG) Federal program based on actual hours worked instead of budgeted. Response - The City will direct Housing and Community Development (HCD) staff and consultants for the current FY19 and thereafter to charge actual hours worked on the CDBG activities. Compliance of submitting actual hours will fulfill the requirement with the Uniform Guidance Subpart E, Cost Principles, Section 200.430. Recommendation 2018-002: The City submit the Federal Financial Reports (SF-425) within 30 days at the end of the quarter for the CDBG program. Response - the City will direct staff to prepare and submit the SF-425 Federal Financial Reports each quarter on a timely basis to comply with the reporting requirements. FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts to receiving and filing the FY 18 Single Audit. The audit provides Council with the assurance that the City is meeting its obligation for producing fairly and accurate financial reports. CONCLUSION The preparation of this document is a collaborative effort and hard work between the Finance Department and the Housing and Community Development Division. Under the Uniform Guidance Subpart E, Cost Principles, Section 200.430 the CDBG Division has implemented the following recommendations from City’s auditors, White Nelson Diehl Evans LLP. Attachments: 1. Federal Audit Clearinghouse Reporting Package Single Audit for Council 6.B Packet Pg. 25 CITY OF GILROY, CALIFORNIA SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS JUNE 30, 2018 6.B.a Packet Pg. 26 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) CITY OF GILROY TABLE OF CONTENTS June 30, 2018 Page Number Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance and on the Schedule of Expenditures of Federal Awards 3 - 5 Schedule of Expenditures of Federal Awards and Schedule of Findings and Questioned Costs: Schedule of Expenditures of Federal Awards 6 - 7 Notes to Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9 - 12 Summary Schedule of Prior Year Audit Findings 13 6.B.a Packet Pg. 27 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties - 1 - INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable City Council of the City of Gilroy Gilroy, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Gilroy (the City) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 18, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 6.B.a Packet Pg. 28 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 2 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, California December 18, 2018 6.B.a Packet Pg. 29 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties - 3 - INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Honorable City Council of the City of Gilroy Gilroy, California Report on Compliance for Each Major Federal Program We have audited the City of Gilroy’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2018. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the federal statues, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. 6.B.a Packet Pg. 30 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 4 - Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as Finding Numbers 2018-001 and 2018-002. Our opinion on each major federal program is not modified with respect to these matters. The City’s response to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The City’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of compliance requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 6.B.a Packet Pg. 31 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 5 - Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Gilroy, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 18, 2018, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Irvine, California February 6, 2019, except for the schedule of expenditures of federal awards to which the date is December 18, 2018 6.B.a Packet Pg. 32 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND SCHEDULE OF FINDINGS AND QUESTIONED COSTS 6.B.a Packet Pg. 33 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) Catalog of Federal Domestic Grant Assistance Identification Federal Payments to Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development Direct Assistance: Community Development Block Grant 14.218 B-17-MC-06-0048 413,017$ 143,500$ B-16-MC-06-0048 469,943 - B-15-MC-06-0048 55,009 - Program Income 47,347 - Total U.S. Department of Housing and Urban Development 985,316 143,500 U.S. Department of Justice Direct Assistance: Bulletproof Vest Partnership Program 16.607 Vest Grant #18 8,327 - Vest Grant #17 1,412 - Total U.S. Department of Justice 9,739 - U.S. Department of Transportation Passed-through the California Department of Transportation - Highway Planning and Construction: Ronan Channel Trail 20.205 CML-5034 (023) 216,023 - Passed-through the California High Speed Rail Authority: ARRA - High-Speed Rail Corridors and Intercity Passenger Rail Service – Capital Assistance Grants 20.319 HSR 13-47 2,143 - Total U.S. Department of Transportation 218,166 - National Highway Traffic Safety Administration (NHTSA) Passed-through the California Office of Traffic and Safety: Selective Traffic Enforcement Program 20.600/20.608 PT18051 48,922 - Selective Traffic Enforcement Program 20.600/20.608 PT1747 28,064 - Total National Highway Traffic Safety Administration 76,986 - See accompanying notes to schedule of expenditures of federal awards. (Continued) Federal Grantor/Pass - Through - 6 - CITY OF GILROY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended June 30, 2018 Grantor/Program Title 6.B.a Packet Pg. 34 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) Catalog of Federal Domestic Grant Assistance Identification Federal Payments to Number Number Expenditures Subrecipients U.S. Department of Health and Human Services Passed-through the County of Santa Clara: Partnerships to Improve Community Health 93.331 N/A 7,000$ -$ Total U.S. Department of Health and Human Services 7,000 - TOTAL EXPENDITURES OF FEDERAL AWARDS 1,297,207$ 143,500$ See accompanying notes to schedule of expenditures of federal awards. Federal Grantor/Pass - Through CITY OF GILROY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) For the year ended June 30, 2018 - 7 - Grantor/Program Title 6.B.a Packet Pg. 35 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 8 - CITY OF GILROY NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended June 30, 2018 1. GENERAL: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Gilroy (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements. 2. BASIS OF ACCOUNTING: Expenditures reported on the Schedule are reported using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 3. INDIRECT COST RATE: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 4. RELATIONSHIP TO COMPREHENSIVE ANNUAL FINANCIAL REPORT: Amounts reported in the accompanying Schedule agree to amounts reported within the City’s Comprehensive Annual Financial Report. 5. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS: Amounts reported in the accompanying Schedule agree with amounts reported in federal financial reports. 6. CONTINGENCIES: Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies. 6.B.a Packet Pg. 36 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 9 - CITY OF GILROY SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended June 30, 2018 Summary of Auditors’ Results: Financial Statements Type of auditors’ report issued:  Unmodified Internal control over financial reporting:  Material weakness identified? yes x no  Significant deficiency identified? yes x none reported Noncompliance material to financial statements noted: yes x no Federal Awards: Internal control over major programs:  Material weakness identified? yes x no  Significant deficiency identified? yes x none reported Type of auditors’ report issued on compliance for major programs:  Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? x yes no See Finding Numbers 2018-001 and 2018-002 Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants - Entitlement Grant Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as low-risk auditee? yes x no 6.B.a Packet Pg. 37 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 10 - CITY OF GILROY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the year ended June 30, 2018 Findings Relating to Financial Statements: None noted. Findings and Questioned Costs Relating to Major Federal Awards: Finding Number 2018-001 Major Program United States Department of Housing and Urban Development, Community Development Block Grants - Entitlement Grant (CFDA 14.218), Grant Identification Number: B-17-MC-06-0048. Criteria Under Uniform Guidance Subpart E, Cost Principles, Section 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards. Condition During our audit of salaries and wages charged to the grant, we noted that administrative charges for employee’s salaries and wages were based on a budgeted percentage instead of actual hours. This issue was noted for one salaried administrative employee’s time. Questioned Costs The amount of administrative salaries and wages, including benefits, charged to the federal program for this one employee for the period from July 1 to June 30 is approximately $61,000. The amount of questioned costs cannot be determined since there are no records that accurately reflect the actual work performed. Context There is one employee that charges administrative salaries and wages to the federal program. Cause This one employee noted does not track and document actual administrative hours worked on the federal program. 6.B.a Packet Pg. 38 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 11 - CITY OF GILROY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the year ended June 30, 2018 Findings and Questioned Costs Relating to Major Federal Awards (Continued): Finding Number 2018-001 (Continued) Effect The City is not in compliance with the Uniform Guidance. Recommendation We recommend the City charge salaries and wages to Federal programs based on actual hours worked by employees on each Federal program and maintain proper documentation of actual hours worked. Management’s Response The City is aware of the requirement that all salaries and wages for Federal awards are to be recorded in the general ledger based on the actual hours worked in the CDBG program. Charging actual hours instead of budgeted hours will reflect the work actually performed for this program. The City will direct Housing and Community Development (HCD) staff and consultants for the current FY 2018-2019 fiscal year, to charge actual hours worked on federal Community Development Block Grant (CDBG) activities. Adjustments to the budgeted salaries and wages for the period July 1, 2018 to June 30, 2019 will be made to reflect federal regulations under Uniform Guidance Subpart E, Cost Principles, Section 200.430, and thereafter for the current fiscal year and future CDBG grant fiscal years. Finding Number 2018-002 Major Program United States Department of Housing and Urban Development, Community Development Block Grants - Entitlement Grant (CFDA 14.218), Grant Identification Number: B-17-MC-06-0048. Criteria Federal Financial Reports (SF-425) should be submitted within 30 days of the end of each quarter. Condition Each of the four reports for the fiscal year ended June 30, 2018 were not submitted timely. Questioned Costs None noted. 6.B.a Packet Pg. 39 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 12 - CITY OF GILROY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the year ended June 30, 2018 Findings and Questioned Costs Relating to Major Federal Awards (Continued): Finding Number 2018-002 (Continued) Context All four reports required during the fiscal year were not submitted timely. Cause The City was not aware of the reporting requirements. Effect The City was not in compliance with reporting requirements. Recommendation We recommend that the City review its processes to allow for reporting to take place in timely manner. Management’s Response The City is aware of the requirement that the Federal Financial Reports (SF-425) should be submitted within 30 days of the end of each quarter for the CDBG program and will comply for the current FY 2018-2019 fiscal CDBG program year, and direct HCD staff to prepare and submit the SF-425 Federal Financial Report each quarter in a timely manner. 6.B.a Packet Pg. 40 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) - 13 - CITY OF GILROY SUMMARY OF PRIOR YEAR FINDINGS For the year ended June 30, 2018 There was no single audit required for the year ended June 30, 2017. 6.B.a Packet Pg. 41 Attachment: Federal Audit Clearinghouse Reporting Package Single Audit for Council (2062 : Fiscal Year 2018 Federal Single Audit) City of Gilroy STAFF REPORT Agenda Item Title: Claim of Jesus Martinez (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Customer Service ☐ Enhanced Public Safety RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the March 18, 2019 meeting: Claim of Jesus Martinez Attachments: 1. Claim of Jesus Martinez 6.C Packet Pg. 42 6.C.a Packet Pg. 43 Attachment: Claim of Jesus Martinez (2091 : Claim of Jesus Martinez) 6.C.a Packet Pg. 44 Attachment: Claim of Jesus Martinez (2091 : Claim of Jesus Martinez) 6.C.a Packet Pg. 45 Attachment: Claim of Jesus Martinez (2091 : Claim of Jesus Martinez) City of Gilroy STAFF REPORT Agenda Item Title: Award of an Agreement to 4LEAF, Inc. in the Amount of $375,000 for Construction Management and Inspection Services for the First Street Water Line Replacement Project, 16-PW -217 Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Julie Behzad Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development  Customer Service ☐ Enhanced Public Safety RECOMMENDATION Award agreement to 4LEAF, Inc. in the amount of $375,000 for construction management and inspection services for the First Street water line replacement project 16-PW -217, and authorize the City Administrator to execute the agreement and related documents. BACKGROUND 4LEAF, Inc. (4Leaf) was one of six consultants selected to provide construction management services through a Request for Qualifications process approved by Council on August 4, 2014, which is good through August 2019. In summer 2015, a request for proposals (RFP) for Construction Management (CM) services was sent to three firms on the pre-qualified list. All three firms submitted proposals, which were evaluated by staff to determine the best qualified firm to provide construction management services for this particularly high profile waterline project. 4LEAF, Inc. was selected as the best qualified firm to provide these services. 7.A Packet Pg. 46 The original CM contract with 4LEAF, Inc. was approved by the City Council in September 2015 with anticipation of the First Street project starting construction sometime in spring 2016. The expiration date for the 4L EAF, Inc. contract was set at December 2017 with the construction phase estimated to be four and one-half months, the pre-construction phase estimated to be two months, and the post construction closeout phase estimated to be one month. The contract amount was $324,208. When the construction contract was first advertised in spring 2016, 4Leaf pro vided pre- construction phase services including constructability review of the plans and specifications, verified the engineer’s cost estimates, and prepared reasonable project duration estimate based on the final design plans at the time. This effort cost approximately $17,000 as demonstrated by the following invoices: Invoice Date Invoice # Service Period Payment Amount 11/19/2015 J1969A Period Oct. 1 - Oct. 31, 2015 $925.00 3/16/2016 J1969B Period Feb 1 - Feb 29, 2016 $15,430.00 4/22/2016 J1969C Period Mar 1 - Mar 31, 2016 $555.00 6/16/2016 J1969D Period May 1 - May 31, 2016 $185.00 Because the Caltrans encroachment permit was not issued during the time of bidding, city staff postponed the bid opening date indefinitely. In June 2016, the city sent 100% plans to Caltrans and applied for a Caltrans encroachment permit. A response was received from Caltrans with various requirements, including, but not limited to, a requirement to encase the entire pipe in concrete. When city staff realized that encasement of the main pipe and laterals could double the cost of the project (adding another $5M to the cost), but more importantly, would not be practical making future maintenance and repair efforts more costly and time consuming, staff sent a response letter summarizing concerns and asking for design exception. When it was evident that the permitting process with Caltrans was going to take an extended amount of time and effort, bids were cancelled and 4Leaf’s service was interrupted. City staff continued working with Caltrans making several submissions and resubmissions through the rest of 2016 and 2017 until the design exception was approved and an encroachment permit was granted in March 2018. The construction project was advertised immediately and bids were opened on April 19, 2018. If it were not for the Caltrans caused delays, the project would have been completed in the summer of 2017 at the latest. The First Street W ater Line project construction started in August 2018 with construction duration of approximately 11 months (320 calendar days) not including the pre and post construction phases. The original September 2015 proposal from 4LEAF assumed construction duration of four and one-half months and did not account for the extended level of effort and construction oversight that is required for a longer duration project ; a 7.A Packet Pg. 47 more reasonable project duration was determined at the final design and constructability review stage based on more detailed information regarding the Caltrans permit requirements, work hour restrictions, and average daily production. In the fall of 2018, it was discovered that the original contract from September 2015 with 4LEAF had expired on December 30, 2017 and could not be renewed. Therefore, in order to ensure continuity of coverage for inspection and construction oversight (and given that the short list of qualified CM firms was still active) for this time sensitive and high profile project, staff requested a limited scope proposal from 4LEAF, Inc. and created a new contract with the intent of amending the contract (or creating a new contract) once a full proposal was received. This “bridging” contract was executed in December 2018 and was intended to cover construction activities through March 2019. The following invoices were paid under the expired contract (not including the ones listed in above): Invoice Date Invoice # Service Period Payment Amount 4/17/2018 J1969E Period Mar 1 - Mar 31, 2018 $2,158.00 5/18/2018 J1969F Period Apr 1 - Apr 30, 2018 $740.00 7/9/2018 J1969G Period June 1 - June 30, 2018 $2,558.00 8/16/2015 J1969H Period Jul 1 - Jul 31, 2018 $4,024.00 9/25/2018 J1969I Period Aug 1 - Aug 31, 2018 $17,197.00 10/23/2018 J1969J Period Sept 1 - Sept 30, 2018 $25,688.00 11/9/2018 J1969K Period Oct. 1 - Oct. 31, 2018 $44,755.00 12/13/2015 J1969L Period Nov 1 - Nov 30, 2018 $37,445.00 2/5/2019 1969M-Rev Period Dec 1 - Dec 20, 2018 $27,964.00 Total $162,529.00 The following paragraphs will discuss the justification for a new contract with 4Leaf and the additional changes in the project that triggered the need for additional funding for the Construction Management and Quality Assurance services for the Frist street water line project. ANALYSIS First Street (SR 152) W ater Line construction project is intended to upgrade more than 8,000 linear feet of existing 16” water main from West of Santa Teresa Boulevard to the Monterey Street intersection. Construction started in August 2018 and is expected to be completed in July 2019. There is a potential construction scope increase as staff has identified capital projects that need to be completed prior to Caltrans’ paving project which is slated to begin in summer 2019. 7.A Packet Pg. 48 Staff is currently working with the construction contractor (Monterey Peninsula Engineering, MPE) to receive a price proposal to include water main repairs along Monterey Road including abandoning a 6” line from south of Leavesley Road to Howson Street, and upgrading a 4” lateral to a 10” lateral main along Casey Lane. The construction schedule will therefore be revised to account for additional project scoping, unforeseen conditions, and storm events that have impacted the project schedule. The construction area for the forgoing work is within the Caltrans roadway slated t o be reconstructed as part of the Caltrans First Street Pavement Rehabilitation Project. To avoid damaging the newly paved roadway after its completion, staff is proposing to have the work performed prior to Caltrans repaving this portion of Monterrey Road. As the selected CM firm, 4Leaf will perform the day to day construction management of the project, including field inspections, traffic control oversight, public outreach, and address other construction issues as they arise. 4LEAF’s services are expected to last through September 2019. It is important to note that the City of Gilroy experienced significant staff turnover starting in the fall of 2016, which included the departure of a Senior Engineer in charge of traffic and transportation projects, the Public Works Director in December 2016, the Capital Improvement Program (CIP) Senior Engineer in December 2017, and the CIP Project Engineer in June 2018. This turnover created critical gaps in the completion and follow-up of important project milestones and deliverables. As a result, in order to ensure the continuity of coverage for inspection and construction oversight for the First Street W ater Line project, staff requested and received a full proposal from 4Leaf, Inc. to complete the project. The department has instituted a project tracking system to ensure that issues like this do not occur in the future. Due to limited resources and the specialized nature of this inspection work, the City needs assistance with Construction Management and Quality Assurance Services for the First Street W ater Line project. ALTERNATIVES Council has the following options regarding this contract: 1. Approve this contract: approve awarding the construction management services contract to 4LEAF, Inc. so as to continue their inspection and oversight of the First Street W ater Line construction project. STAFF RECOMMENDS THIS OPTION. 2. Not approve this contract and direct staff to put out a new solicitation for this work: This would require putting together a new RFP, sending the RFP to the firms on the short list, reviewing proposals and negotiating pricing. STAFF DOES NOT RECOMMEND THIS OPTION as this would require stoppage of construction activity, which will in turn cause significant delays to the project, and cause additional costs due to construction claims from MPE. Completing the 7.A Packet Pg. 49 selection of a new consultant would take at least four months and, due to high - profile nature of the project, the City would need to conduct additional public outreach efforts resulting in additional financial impacts to the City (e.g., re- advertising for services, additional cost for canvassing and publications etc.). A delay in the First Street Water Line Project will also cause a delay to the start of the Caltrans First Street Pavement Rehabilitation Project which would push it out at least one additional year, and cause the City additional expense in maintaining any project related deficient paving along the corridor, FISCAL IMPACT/ FUNDING SOURCE This project is funded with the Water Enterprise Fund. There is sufficient fund balance to cover the completion of construction management and inspection services for this project. The total 4Leaf, Inc. costs will be as follows: Line Item Item Amount 1 Contract #1 Dated September 2015 $324,208 2 Expenditure from Contract #1 ($179,624) 3 Remaining Balance in Contract #1 (line 1- line 2) : Note - this Purchase Order will be closed $144,584 4 Contract #2 Dated December 2018 (expired on March 4, 2019): $95,000 5 Current Expenditure in Contract #2through end of January ($46,310) 6 Anticipated Expenditure in Contract #2 (line 4 - line 5) : ($48,690) 7 Remaining Balance in Contract #2 (line 4 -(5+6)) $0.00 8 This New Contract #3 (Effective ASAP thru December 2019) $375,000 Total anticipated CM Contract expenses (line 2+ line 4+ line 8) $649,624 11 Awarded First Street Water Line Construction Contract Amount (without Change Orders) $ 5,451,990 12 Current Change order amounts $260,000 Total estimated construction cost (Line 11+ Line 12) $5,711,990 CM services as percentage of Construction contract 11% CONCLUSION This contract will allow 4LEAF, Inc. to continue to provide construction management services through December 31, 2019 with minimal disruption to the construction of the 7.A Packet Pg. 50 First Street W ater Line project and ahead of Caltrans’ Hwy 152 Improvement project. Staff requests approval of this contract with 4Leaf, Inc. in the amount of $375,000. Attachments: 1. 4LEAF Service Agreement 2. 4Leaf 2015 contract 7.A Packet Pg. 51 7.A.a Packet Pg. 52 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 53 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 54 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 55 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 56 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 57 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 58 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 59 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 60 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 61 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 62 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 63 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 64 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 65 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 66 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 67 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 68 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 69 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 70 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 71 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 72 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 73 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 74 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 75 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 76 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 77 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 78 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 79 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 80 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.a Packet Pg. 81 Attachment: 4LEAF Service Agreement (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line 7.A.b Packet Pg. 82 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 83 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 84 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 85 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 86 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 87 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 88 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 89 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 90 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 91 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 92 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 93 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 94 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 95 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 96 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 97 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 98 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 99 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 100 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 101 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 102 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 103 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 104 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 105 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 106 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 107 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 108 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 109 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 110 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 111 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 112 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 113 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 114 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 115 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 116 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 117 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 118 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 119 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 120 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) 7.A.b Packet Pg. 121 Attachment: 4Leaf 2015 contract (2092 : Award of contract to 4LEAF for Construction Management services for First St. Water Line project) City of Gilroy STAFF REPORT Agenda Item Title: Zoning Amendment Request From Open Space (OS) to Commercial Industrial (CM) for a 103+/- Acre Site Located Northeast of Bolsa Road, APN 841-31-003, 841-31-019 and 841- 31-022, Commonly Known as the Barberi and Denice/Filice Properties. Applicant George Renz of Renz & Renz. (Z 18 -08) Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Community Development Department Submitted By: Kristi Abrams Prepared By: Kristi Abrams Melissa Durkin Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization  Economic Development ☐ Customer Service ☐ Enhanced Public Safety RECOMMENDATION a) Motion to read the ordinance by title only and waive further reading; and b) Motion to introduce an ordinance of the City Council of the City of Gilroy rezoning a 103+/- acre site located northeast of Bolsa Road, APN 841-31-003, 841-31-019 and 841-31-022 from Open Space (OS) to Commercial Industrial (CM) (Z 18-08) POLICY DISCUSSION The City Council is asked to consider whether the subject property should be rezoned from Open Space (OS) to Commercial Industrial (CM). BACKGROUND Project Description 8.A Packet Pg. 122 The requested zone change application (Z 18-08) proposes to rezone approximately 103 acres from Open Space (OS) to Commercial Industrial (CM) so that the site’s zoning designation conforms to the adopted Gilroy 2020 General Plan land use category. At this time, no development is proposed as part of this request. Annexation, General plan and Zoning Background The subject site was annexed into Gilroy city limits in 1992 [S. Monterey Reorganization 91-2, Resolution 92-35]. Upon annexation, the City gave the site a zoning designation of Open Space, which was consistent with the site’s General Plan land use designation of Open Space. The City Council applies the Open Space general plan designation to areas where urban development is either inappropriate or undesirable, due to the land being environmentally unfit for development. The subject site is vacant and prone to flooding, which is appropriate for a general plan designation of Open Space. As part of the 2020 General Plan Update, the City, in 2002, revised this site’s General Plan land use designation to General Services Commercial. The City Council presumably made this change because it determined that the site had development potential, despite its exposure to flooding. The site’s zoning designation was not revised at that time, and this is discussed further in the “Analysis” section of this report. Environmental Background When the Gilroy City Council adopted the Gilroy 2020 General Plan and the corresponding environmental impact report (EIR), the Council adopted a number of policies, actions and mitigation measures, which would lessen most of the identified environmental impacts to less-than-significant levels. However, the following impacts could not be reduced to less-than-significant levels: agricultural resources, transportation/traffic, air quality, noise, and biological resources. The City Council determined that these impacts were significant and unavoidable and adopted a Statement of Overriding Considerations prior to EIR certification. The 2020 General Plan and EIR addressed the future development of agricultural lands by incorporating several policies and mitigation measures intended to preserve agricultural lands or mitigate impacts to those lands as a result of development. Those policies and mitigation measures will apply to this site when entitlement applications are pr ocessed. The proposed rezoning presented in this report is consistent with the provisions of the adopted General Plan and certified EIR. Because this request does not include a proposal to develop the site or change the land use, the project is not subject to any mitigation measures or further review under the California Environmental Quality Act (CEQA). However, future development or a change in land use will require preparation of an environmental evaluation in compliance with CEQA as part of City approvals for land development. On February 7, 2019, the Planning Commission voted unanimously to recommend City Council approval of this zone change request (see attached report). 8.A Packet Pg. 123 ANALYSIS The proposed rezoning to Commercial Industrial (CM) would better align the subject property’s General Plan land use designation of General Services Commercial. The Gilroy 2020 General Plan sets forth an implementation action that calls for rezoning sites for consistency with the General Plan land use map. Specifically, Action 1.A. “Zoning Ordinance” states, “Update the Gilroy Zoning Ordinance and Zoning Map to be consistent with the Land Use Plan Map and related policies of the updated General Plan. Rezone areas inconsistent with the Land Use Plan Map, as appropriate, and update the zoning district descriptions to reflect the updated land use designation descriptions” (2020 General Plan, Page 4-42). The proposed zoning map amendment will bring this property into compliance with the site’s General Plan designation, as directed by this implementation action. The 2020 General Plan indicates three zoning districts would be consistent with the General Services Commercial land use designation: C3, HC, and CM; and two other zoning districts would potentially be consistent: PO and C1. The applicant’s proposed rezoning to CM would allow the site to develop consistent with the Zoning Ordinance “Statement of Intent” for the CM zone, which states, “[the] intent of the CM commercial industrial district is to provide areas in the city suitable for low intensity commercial uses that exist in combination with light manufacturing or light industrial uses” (GCC section 30.17.10). Of all the potential zoning districts for this property, staff believes the CM zoning district is the best choice. The reason is that this area has limited freeway visibility and access, limiting its potential for high-intensity commercial development. In contrast, this site is located adjacent to other sites that have a mixture of light industrial, light manufa cturing and low-intensity commercial uses. Potential uses that could be developed on this site after its rezoning to CM would be consistent with the other uses in this area. In addition, the site’s adjacency to the SCRWA plant limits its suitability for high-intensity commercial uses. ALTERNATIVES 8.A Packet Pg. 124 1. The City Council could adopt an ordinance approving rezoning of the subject site from Open Space (OS) to Commercial Industrial (CM). This action is recommended 2. The City Council could adopt an ordinance approving rezoning of the subject site from Open Space (OS) to a commercial zoning district other than Commercial Industrial (CM). This action is not recommended. 3. The City Council could deny this zone change request, leaving this property with a zoning designation of Open Space. This action is not recommended. FISCAL IMPACT/FUNDING SOURCE The applicant paid all costs associated with processing this zone change request. The future costs of processing an environmental document and developing this site will be paid by the applicant. CONCLUSION Staff recommends that the City Council accept Alternative 1 and adopt the attached ordinance. NEXT STEPS Based on City Council direction, Staff will prepare an ordinance for signature and revise the zoning map, as necessary. PUBLIC OUTREACH Property owner information (i.e. list, labels, and map) within 500 feet of the subject site were generated by Chicago Title Company using current ownership data. On March 1, 2019, notices of this City Council meeting were mailed to the property owners along with other interested parties. In addition, the property has been posted with on -site signage notifying passers-by of pending development, and the City Council public hearing packets are available through the City's webpage. Attachments: 1. Vicinity Map 2. Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) 3. Ordinance (Z 18-08) 8.A Packet Pg. 125 BARBERI (APN: 841-31-019) FILICE (APN: 841-31-022) FORTINO (APN: 841-31-014) PERFORMANCE FOOD GROUP, LLC. (APN: 841-14-026 & 841-14-027) SOUTH COUNTY REGIONAL WASTE WATER AUTHORITY (APN: 841-30-012)UNION PAC IF IC RA ILROADHIGHWAY 101FILICE (APN: 841-31-003) FORTINO (APN: 841-31-021) AYON (APN: 841-31-002) HEADSTART NURSERY, INC. (APN: 841-32-001)UNION PAC IF IC RA ILROADBOLSA ROADCARNA D E R O A V E N U E VICINITY MAP - ZONE CHANGE LANDS OF DENICE/FILICE/BARBERI GILROY, CALIFORNIA OCTOBER 2018 JOB NUMBER:182019 W:\Jobs 18\182019\Drawings\Prelim\Exhibits\EXH-Projects Map.dwg8.A.a Packet Pg. 126 Attachment: Vicinity Map (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) Community Development Department 7351 Rosanna Street, Gilroy, California 95020-61197 Telephone: (408) 846-0451 Fax (408) 846-0429 http://www.cityofgilroy.org DATE: February 7, 2019 TO: Planning Commission FROM: Melissa Durkin, Planner II SUBJECT: Z 18-08 (18110002) 1) Request: Z 18-08 (zone change) requests approval of a zoning map amendment from Open Space (OS) to Commercial Industrial (CM) for a 103+/- acre site commonly known as the Barberi and Denice/Filice properties. The property is located northeast of Bolsa Road (APN 841-31-003, 019 and 022). No development is proposed at this time. The City Council certified an EIR for this site as part of the Gilroy 2020 General Plan on June 13, 2002 via application GPA 99-01 [State Clearinghouse number 99052046]. Application filed by George Renz of Renz & Renz on behalf of the property owners, 7500 Arroyo Circle, Suite 170, Gilroy, CA 95020. 2) Recommendation: Staff has analyzed the proposed project, and recommends that the Planning Commission: a) Adopt a resolution recommending that the City Council approve Zone Change application Z 18-08 as requested, subject to certain findings. 3) Subject Property and Surrounding Land Uses: The subject site presently contains agriculture-related structures and productive agricultural land. LOCATION EXISTING LAND USE GENERAL PLAN ZONING Project Site Agriculture General Services Commercial Open Space North Retail and Industrial Uses General Services Commercial Commercial Industrial (CM) South Nursery/Agricultural Uses Open Space/ Outside General Plan area Outside of City Limits Kristi A. Abrams DIRECTOR 8.A.b Packet Pg. 127 Attachment: Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 2 LOCATION EXISTING LAND USE GENERAL PLAN ZONING East South County Regional Wastewater Authority Plant (SCRWA) Public/Quasi-Public Facility Public Facility (PF) West Agriculture Open Space/ Outside General Plan area Outside of City Limits 4) Environmental Assessment: On June 13, 2002, the Gilroy City Council certified the Gilroy 2020 General Plan environmental impact report (EIR) [see GPA 99 -01]. The City Council found that the General Plan and Final EIR contained many policies, actions and mitigation measures, which when implemented, would lessen most identified environmental impacts to less-than-significant levels. However, the following impacts could not be reduced to less-than-significant levels: agricultural resources, transportation/traffic, air quality, noise, and biological resources. The City Council determined that these impacts were significant and unavoidable and adopted a Statement of Overriding Considerations prior to EIR certification. The proposed rezoning presented in this report is consistent with the provisions of the adopted General Plan for which the 2002 EIR was certified. In accordance with the California Environmental Quality Act (CEQA), under Public Resources Code section 21083.3 (b), “Application of Division to Approval of Subdivision Map or Other Project” provides that development projects consistent with a general plan, and for which an EIR has been certified, shall limit additional CEQA review “to effects on the environment which are peculiar to the parcel or to the project and which were not addressed as significant effects in the prior environmental impact report, or which substantial new information shows will be more significant than described in the prior environmental impact report.” Because this project does not include a proposal to develop the site or change the land use, the project is not subject to any mitigation measures or further review under CEQA section 21083.3 (b). This relief from additional environmental review is restated by CEQA Guidelines section 15183. Therefore, no additional CEQA analysis is required for this zone change request. 5) Background Information: The subject site was annexed into Gilroy city limits in 1992 [S. Monterey Reorganization 91-2, Resolution 92-35]. Upon annexation, the city gave the site a zoning designation of Open Space, which was consistent with the site’s General Plan land use designation of Open Space. As part of the 2020 General Plan update, the City, in 2002, revised this site’s General Plan land use designation to General Services Commercial. The 2020 General Plan states that the following zoning districts are consistent with the General Services Commercial designation: Shopping Center Commercial (C3); Highway Commercial (HC); and Commercial Industrial (CM). The General Plan lists the following zoning districts as potentially consistent with the General Services Commercial designation: Professional Office (PO) and Neighborhood Commercial (C1). 8.A.b Packet Pg. 128 Attachment: Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 3 The requested zone change application (Z 18-08) proposes to rezone approximately 103 acres from Open Space (OS) to Commercial Industrial (CM) so that the site zoning designation conforms to the adopted Gilroy 2020 General Plan land use category. At this time, no development is proposed as part of this request. 6) General Plan Consistency: The City's General Plan designates the subject site for General Services Commercial uses, which supports the proposed project request. As such, the proposal conforms to the goals and policies of the General Plan. Key goals and policies, which pertain to the proposed project are discussed below: POLICY # TITLE AND SUMMARY ANALYSIS 1.01 Pattern of Development. Ensure an orderly, contiguous pattern of Development, prioritizing infill, phasing new development, encouraging compactness and efficiency, preserving surrounding open space and agricultural resources, and avoiding land use incompatibilities Rezoning this site would continue the pattern of commercial and industrial development established in this area. Because this property is at the southern boundary of city limits, surrounding County land uses will be preserved as agricultural resources in accordance with County ordinances and policies. Determination: the proposed rezoning is consistent with this General Plan policy. 1.02 Mix of Uses. Create a diverse mix of land uses to achieve a balance between jobs and housing and to ensure the community’s long- term viability. Rezoning this site to CM would allow commercial and industrial businesses to develop. These businesses would produce jobs and potentially generate taxes benefitting the city and contributing toward long-term community viability. Determination: the proposed rezoning is consistent with this General Plan policy. 2.01 Location of Growth. Maximize existing infrastructure and service Investments and avoid premature investment for facility and service extensions by directing new growth to vacant and underutilized lands within the Urban Service Area. Utilities have recently been extended to the Performance Food Group development north of the subject site. Rezoning the subject site, and its subsequent development, would extend these utilities, maximizing the use of this infrastructure. Determination: the proposed rezoning is consistent with this General Plan policy. 2.13 Urban Growth Boundary. The subject site is within Gilroy’s Urban 8.A.b Packet Pg. 129 Attachment: Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 4 POLICY # TITLE AND SUMMARY ANALYSIS The City’s Urban Growth Boundary (UGB) protects the health, safety, welfare, and quality of life of the residents of Gilroy by concentrating future residential, commercial, and industrial growth in areas already served by urban services. The policies implementing the UGB allow sufficient flexibility within its limits to respond to the City's changing needs over time. Growth Boundary, as well as within City limits, and has urban services in close proximity. Rezoning this site to CM will allow the property to develop in accordance with the General Plan land use designation. Determination: the proposed rezoning is consistent with this General Plan policy. 3.01 Jobs and Revenue. Attract industrial, high-tech, and commercial office employers to provide a diversity of well- paid job opportunities for local residents and to broaden the City’s revenue base, ensuring adequate resources over time to support the provision of quality city services. Rezoning this site to CM would allow development of commercial and industrial businesses. These businesses would produce jobs and potentially generate taxes supporting the provision of quality city services. Determination: the proposed rezoning is consistent with this General Plan policy. 3.04 Industrial Growth. Encourage new industrial uses to locate in Gilroy that can provide jobs for Gilroy residents. Rezoning this site to CM would increase the available supply of commercial and industrial land, providing additional opportunities for job development with8in the city. 7) Staff Analysis for Zone Change (Z 18-08): The proposed project would rezone an approximate 103-acre site from Open Space (OS) to Commercial Industrial (CM) to be consistent with the City’s General Plan land use designation of General Services Commercial. The Gilroy 2020 General Plan sets forth an implementation action that calls for rezoning sites for consistency with the General Plan land use map. Specifically, Action 1.A. “Zoning Ordinance” states, “Update the Gilroy Zoning Ordinance and Zoning Map to be consistent with the Land Use Plan Map and related policies of the updated General Plan. Rezone areas inconsistent with the Land Use Plan Map, as appropriate, and update the zoning district descriptions to reflect the updated land use designation descriptions” (2020 General Plan, Page 4-42). The proposed zoning map amendment will bring this property into compliance with the site’s General Plan designation, as directed by this implementation action. 8.A.b Packet Pg. 130 Attachment: Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 5 The General Plan indicates three zoning districts would be consistent with the General Services Commercial land use designation: C3, HC, and CM; and two other zoning districts would potentially be consistent: PO and C1. The applicant’s proposed rezoning to CM would allow the site to develop consistent with the Zoning Ordinance “Statement of Intent” for the CM zone, which states, “[the] intent of the CM commercial industrial district is to provide areas in the city suitable for low intensity commercial uses that exist in combination with light manufacturing or light industrial uses” (GCC section 30.17.10). Of all the potential zoning districts for this property, staff believes the CM zoning district is the best choice. The reason is that this area has limited freeway visibility and access, limiting its potential for high-intensity commercial development. In contrast, this site is located adjacent to other sites that have a mixture of light industrial, light manufacturing and low-intensity commercial uses. Potential uses that could be developed on this site after its rezoning to CM would be consistent with the other uses in this area. In addition, the site’s adjacency to the SCRWA plant limits its suitability for high-intensity commercial uses. Neither development of this site nor changing the site’s land use is contemplated as part of this application. Future development or a change in land use will require preparation of an environmental evaluation in compliance with the California Environmental Quality Act and City approval of discretionary applications. 8) Technical Advisory Committee (TAC): Project plans were routed to Engineering, Building, Police, and Fire representatives for internal review and comment. The TAC considered the project on August 30, 2018. Recommendations of the TAC members have been incorporated into the project plans. 9) Noticing: Property owner information (i.e. list, labels, and map) within 500 feet of the subject site were generated by Chicago Title Company using current ownership data. On January 23, 2019, notices of this Planning Commission meeting were mailed to the property owners along with other interested parties. In addition, the property has been posted with on-site signage notifying passers-by of pending development, and the Planning Commission public hearing packets are available through the City's webpage. 10) Appeal Procedure: The Planning Commission's action is not final, but rather a recommendation. As such, the matter will be considered by the City Council at a later date. Attachments: 1. Vicinity Map 2. Recommended Resolution 8.A.b Packet Pg. 131 Attachment: Planning Commission Staff Report Dated 2/7/2019 (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 4834-6874-2536v1 JH\04706089 ORDINANCE NO. 2019-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING APPLICATION Z 18-08 CHANGING THE ZONING DESIGNATION FROM OPEN SPACE (OS) TO COMMERCIAL INDUSTRIAL (CM) FOR A PROPERTY LOCATED NORTHEAST OF BOLSA ROAD, APN’s 841-31-003, 019 and 022 WHEREAS, on November 1, 2018, applicant George Renz of Renz & Renz submitted an application to change the zoning designation on property located northeast of Bolsa Road (APN 841-31-003, 019 and 022) from Open Space (OS) to Commercial Industrial (CM) (“Z 18-08”) and WHEREAS, On June 13, 2002, the Gilroy City Council certified the Gilroy 2020 General Plan environmental impact report (“EIR”) and adopted a Statement of Overriding Considerations prior to EIR certification; and WHEREAS, Public Resources Code section 21083.3 (b), “Application of Division to Approval of Subdivision Map or Other Project” provides that development projects consistent with a general plan, and for which an EIR has been certified, shall limit additional CEQA review “to effects on the environment which are peculiar to the parcel or to the project and which were not addressed as significant effects in the prior environmental impact report, or which substantial new information shows will be more significant than described in the prior environmental impact report.” This relief from additional environmental review is restated by CEQA Guidelines section 15183; and WHEREAS, Z 18-08 does not include a proposal to develop the site or change the land use, the project is not subject to any mitigation measures or further review under CEQA section 21083.3 (b) or CEQA Guidelines section 15183. Therefore, no additional CEQA analysis is required for this zone change request; and WHEREAS, the Planning Commission held a duly noticed public hearing on February 7, 2019, at which time the Planning Commission considered the public testimony, the staff report 8.A.c Packet Pg. 132 Attachment: Ordinance (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 4834-6874-2536v1 JH\04706089 February 7, 2019 (“Staff Report”), and all documentation related to Z 18-08 and recommended that the City Council approve Z 18-08; and WHEREAS, the City Council held a duly noticed public hearing on March 18, 2019, at which time the City Council considered the Staff Report, a supplemental staff report dated March 18, 2019, the public testimony and all documentation related to Z 18-08; and WHEREAS, the City Council finds that Z 18-08 is consistent with the Gilroy General Plan and the Zoning Ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I 1. The proposed rezoning is consistent with the intent of the goals and policies of the City’s General Plan, and with the intent of the land use designation on the General Plan Land Use Map. 2. There is no substantial evidence in the entire record that the Project will have any significant effects on the environment not analyzed and reviewed and considered in the EIR. 3. The approval of Z 18-08 will not be detrimental to the public welfare or injurious to persons or property in the vicinity. SECTION II Based on the above findings, zoning application Z 18-08 is hereby approved. SECTION II If any section, subsection, sentence, clause or phrase of this Interim Urgency Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby decla res that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. SECTION III 8.A.c Packet Pg. 133 Attachment: Ordinance (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) 4834-6874-2536v1 JH\04706089 Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force and effect thirty (30) days from and after the date it is adopted. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this ___ day of April 2019, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ________________________ Roland Velasco, Mayor ATTEST: ___________________________ Shawna Freels, City Clerk 8.A.c Packet Pg. 134 Attachment: Ordinance (Z 18-08) (2057 : Bolsa Road Zone Change from OS to CM (Z 18-08)) City of Gilroy STAFF REPORT Agenda Item Title: Report and Update on the Request by Meritage Homes to Modify Property Improvement Agreement 2015-06 for the Harvest Park II Development Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Gary Heap Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development  Customer Service ☐ Enhanced Public Safety RECOMMENDATION a) Receive report, and; b) Deny the request by Meritage Homes to modify Property Improvement Agreement 2015-06 for the Harvest Park II development, and; c) Direct staff to conduct an analysis for projects within the traffic circulation master plan, identify options to update the traffic impact fee (TIF) for different reimbursement alternatives and develop a clear policy document and reimbursement procedure for the TIF program. BACKGROUND The City Council reviewed a report on March 4, 2019 regarding a Property Improvement Agreement (PIA) amendment request from Meritage Homes (Meritage). The outstanding request from Meritage is to modify the reimbursement amount identified in 9.A Packet Pg. 135 the Harvest Park II PIA to better represent the actual construction costs of the following improvements:  Cohansey Segment  Cohansey Bridge  Cohansey/Monterey Intersection Improvements Following deliberation, the City Council requested staff to return on March 18, 2019 to provide more information on: 1. the current practice of Traffic Impact Fee (TIF) reimbursements, 2. the history of reimbursements over the past few years, and 3. staff’s approach to updating the TIF program. ANALYSIS The Traffic Circulation Master Plan establishes transportation system design and planning criteria, and determines the necessary improvements required by evaluating the existing transportation system and performing a system wide analysis of future needs. The City’s Master Plan also includes projects intended to accommodate the projected demand for the transportation system and meet General Plan build-out conditions. The process of project identification, valuation and process of implementation has been widely discussed in the previous staff report. This report will discuss in more detail the current TIF reimbursement practice and recent TIF projects: Current PIA Reimbursement Practice Public Works staff currently provides reimbursement of construction cost for public infrastructure improvements based on the guidelines identified in the City’s 2004 Traffic Circulation Master Plan. The following is a typical process followed by staff:  Developer obtains entitlements and planning approval for a development project  A Property Improvement Agreement (PIA) is required prior to the issuance of a construction permit; typically processed with approval of the project Final Map  Public Works staff develops the Property Improvement Agreement (PIA) in collaboration with the developer to identify the requirement for public infrastructure improvements which may include storm, wate r, sewer or traffic  The PIA identifies the public improvements required based on the improvement plans, Project CEQA Document (traffic study) and Conditions of Approval  The amount of the TIF reimbursement is identified in the PIA, and is based on the City’s estimated construction costs using the TIF worksheet format from the Traffic Circulation Master Plan  The project estimate worksheet and PIA language is reviewed and approved by the developer 9.A Packet Pg. 136  The TIF worksheet identifies the construction costs which are supported by the current Transportation Improvement Fee funding level  The PIA is reviewed, agreed upon, and executed by the City and Developer, and taken to City Council for approval with the project final map, if any  The PIA is recorded with the County of Santa Clara  The developer schedules a pre-construction meeting to discuss project responsibilities, inspection and acceptance procedures  Any changes to approved plans, agreements and/or conditions of approval are brought to the attention of the City and addressed as necessary  Upon project completion, City performs final inspection and takes Notice of Completion to City Council approval  Developer submits documentation for reimbursement to Public Works based on the TIF worksheet format approved with the PIA  Public Works reviews and approves reimbursement submittal to confirm eligible reimbursement up to the value identified in the PIA  Finance approves and issues reimbursement. Recent Reimbursements At the March 4, 2019 council meeting, staff was directed to bring back information from the most recent TIF reimbursements. The following table presents eight reimbursement cases in the past three years based on best available data: TIF ID# Description Reimb. Date Reimb. Amount Reimb. Amount shown in PIA Reimb. Amount in TIF Table Reimb. More or Less than TIF Comments Seg. 19C Luchessa: Ciminto to Greenfield 2016 $240,271 $0 $700,203 LESS PIA did not show dollar amount, but instead refers to TIF for amount to be paid Int. #26B1 Thomas / Luchessa Roundabout 2016 $1,516,759 $0 $1,518,897 LESS PIA did not show dollar amount, but instead refers to TIF for amount to be paid Int. #4 Luchessa / 2017 $458,486 $576,624 $576,624 LESS Construction 9.A Packet Pg. 137 Princevalle costs less than TIF estimate Seg. #19E Luchessa: Thomas to Monterey 2017 $2,672,352 $0 $3,175,060 LESS City Engineer approved additional scope before work began. Int. #22 Monterey / Luchessa – SW Quadrant 2017 $453,352 $1,867,7 96 $1,867,796 for full intersection LESS City Engineer approved additional scope before work began. Int. #53 Santa Teresa / 3rd St. Roundabout 2018 $416,303 $300,000 $300,000 MORE City Engineer approved additional scope before work began Int. #52 Las Animas/Monte rey 2019 $1,474,306 $0 $1,477,280 LESS Construction costs less than TIF estimate Int. #45 Miller / Santa Teresa / 10th St. Roundabout 2019 $1,581,230 $0 $1,604,870 LESS PIA did not show dollar amount, but instead refers to TIF for amount to be paid As can be seen above, of the eight cases, there are no projects where full reimbursement was provided to the developer following completion of the improvements. In fact, five of the eight reimbursements were below the TIF reimbursement value identified in the PIA. Of the reimbursements that were over the PIA or TIF amount, all were processed only after confirmation of approval of the change by the City Engineer (which occurred before the work began). There was no evidence of any developer being reimbursed the actual construction costs after construction was complete. It should also be noted that for developments within the Glen Loma Ranch Subdivision, there is no reimbursement amount identified in the PIA. In fact, the developer understands that the reimbursement amount is the amount that is identified in the City’s TIF spreadsheet, and has been satisfied with that practice over their several reimbursements. 9.A Packet Pg. 138 Discussion on State Law on traffic mitigation fee programs “Impact” or “Mitigation” fees in California are governed by the Mitigation Fee Act, Govt. Code Section 66000 et seq., originally enacted by AB 1600 in 1987. Such fees can be imposed on development projects provided there is a reasonable relationship between the type of development project and the use to which the fee is to be put and the need for the public facilities to be built with the fee. A City Council can impose such fees by legislative action based upon a report analyzing these factors (often called “AB 1600 Reports”). Gilroy has several such fees; the one at issue here is the Traffic Impact Fee (“TIF”). In enacting this fee, the City based the fee upon the City’s Circulation Master Plan. Typically, an AB 1600 Report will analyze necessary public improvements, calculate the share of such improvements that should be borne by new development, and calculate a fee per residential unit or per square foot of commercial construction in order to raise the appropriate funds. Moneys collected as TIF fees must be put in a designated fund and accounted for periodically under the Mitigation Fee Act. That Act also allows for fees to be paid under protest following strict procedures and timelines, in case a developer believes that a fee has been wrongly imposed. In addition to paying TIF fees, a developer may also be required to install certain traffic improvements necessitated by his or her particular project. These commonly include frontage improvements, for example. In addition, if the project causes significant traffic impacts away from the frontage, the developer can be required to install mitigating improvements, without compensation. An example could be signalizing a nearby existing intersection, for which a developer could be required to pay all or a portion of the total cost. Under certain circumstances, a developer can be entitled to credit against impact fees and/or reimbursement from an impact fee fund to defray all or part of the cost of installing improvements that properly should be paid for by the public. A classic example would be oversizing improvements. Thus, if a developer needs to install a 6 - inch water line to service the project, but oversizes it to 12 inches at the City’s request to allow further development by others, the developer would normally be reimbursed for the oversizing costs. In the traffic context, a developer may be asked, or may volunteer, to put in certain public traffic improvements that are not required to mitigate impacts of his or her project. This is fairly common, and the rules of reimbursement are generally laid out in the appropriate approval documents for the project (such as a Property Improvement Agreement) and in the Engineering Division Policy on Reimbursement Requests, last revised April 29, 2008. 9.A Packet Pg. 139 That Policy outlines the process for claiming reimbursements. As to the amount to be reimbursed, it provides that “reimbursements shall be limited to the lesser of the amount of the budgeted costs or actual costs of the specific impact fee improvement.” The term “budgeted costs” refers to the cost estimate in the TIF budget document upon which the determination of the TIF fee rate is based. The budgeted costs are normally not based on complete designs, but are used as estimates by the City to determine the TIF fee rate. A developer agreeing to undertake such public improvements typically takes the risk that the actual cost may exceed the budgeted cost. Staffs approach to TIF Update As reported earlier, staff has already begun an effort to conduct an interim update to the Traffic Impact Fee. A full update to the TIF Program, including an update to the Nexus Study, will be completed after the 2040 General Plan Update is complete and the City’s traffic model is updated. The information that staff intends to bring back to City Council in June will include:  Updated TIF Project List – minus projects already completed and projects removed due to Urban Growth Boundary  Updated TIF Project Cost  Comparison of TIF Costs – Current TIF Costs vs. Updated TIF Costs  TIF funding scenarios to support reimbursements o Full reimbursement option o 75% reimbursement option o Half reimbursement option o 25% reimbursement option o No reimbursement option  Review of surrounding cities TIF reimbursement practices  TIF Reimbursement Policy and Procedures  Recommended PIA update language for the Harvest Park II PIA, if any ALTERNATIVES As before, Council has the following options with respect to this request by Meritage to update their Property Improvement Agreement: 9.A Packet Pg. 140 1. Council may approve this request with no changes to the TIF or reimbursement schedule. STAFF DOES NOT RECOMMEND THIS OPTION. 2. Deny request with no changes to the TIF Program or this particular PIA. STAFF DOES NOT RECOMMEND THIS OPTION. 3. Deny request and direct staff to perform comprehensive analysis of the current TIF program, the cost of projects as well as the Traffic Impact fee schedule. STAFF RECOMMENDS THIS OPTION. FISCAL IMPACT/FUNDING SOURCE The following table summarizes the current fund balance, projected TIF revenue as well as anticipated reimbursements through Fiscal Year 2020 (June 2020): Traffic Impact Fee (TIF) Item Amount (in millions) Current TIF Fund balance $11.7 Anticipated revenue thru FY19 (June 2019) $3.0 Cash Balance end of FY19 $14.7 Projected Reimbursement Request thru FY19 $(7.8) Ending TIF Balance FY19 (June 2019) $6.9 Anticipated TIF revenue in FY20 (thru June 2020) $3.4 Projected Reimbursement Request in FY20 (thru June 2020) $(2.9) Ending TIF Balance FY20 (thru June 2020) $7.4 The funding for the TIF program comes directly from impact fees collected from land development projects. A modification to the Harvest Park II PIA by the amount of their request of $6.1 million will significantly reduce the projected FY20 TIF fund balance to $1.3 million. CONCLUSION A modification to the Harvest Park II, or any other PIA, without a provision to increase the amount of TIF fees collected would put the long-term sustainability of the TIF program in jeopardy as the fees currently being collected are based on a lesser reimbursement value. 9.A Packet Pg. 141 Staff recommends a comprehensive analysis of current Traffic Circulation Master Plan projects and a revision to their construction costs given current market values. These updated estimates will be used to identify various reimbursement options which, in turn, will drive the need for a corresponding value of TIF needed to be collected from developers. These options could be presented to Council for consideration in determination of the City’s TIF reimbursement policy. Attachments: 1. Staff report 03-04-19 re Harvest Park 2 PIA Amendment request 9.A Packet Pg. 142 STAFF REPORT Agenda Item Title: Request by Meritage Homes to Modify Public Improvement Agreement 2015-06 for the Harvest Park II Development Meeting Date: March 4, 2019 From: Gabriel Gonzalez, City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Gary Heap Strategic Plan Goals Fiscal Stability Downtown Revitalization Economic Development Customer Service Enhanced Public Safety RECOMMENDATION a) Deny the request by Meritage Homes to modify Public Improvement Agreement (PIA) for Harvest Park 2 development, and; b) Direct staff to conduct analysis for projects within the Traffic Circulation Master Plan, identify options to update the Traffic Impact Fee (TIF) for different reimbursement alternatives, and develop a clear policy document and reimbursement procedure for the TIF program. BACKGROUND The City has a received a request from Meritage Homes (Meritage) to modify their Public Improvement Agreement (PIA) #2015-06 for the Harvest Park II development. The Harvest Park II development, a residential subdivision project intended to create 57 single family residential lots, one multi- family lot, one commercial lot, and 3 +/- acres of common area, on a property located within the harvest park development, west of Monterey street and north and south of Cohansey avenue, received a Tentative Map 10.C Packet Pg. 70 9.A.a Packet Pg. 143 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) approval in December 2013. The Tentative Map approval was obtained by the James Group who had transferred the project to Meritage sometime in spring 2016. The following is a list of Engineering Division conditions of approval (applicable to this staff report) included in the Tentative Map approval granted by Resolution No. 2014-02: Developer shall design and construct a four lane, free span bridge on Cohansey Avenue over Llagas Creek consistent with the City of Gilroy TIF [Traffic Impact Fee/Fund] dimensions for that bridge. The design shall be approved by the Santa Clara Valley Water District. Prior to construction, developer shall obtain an encroachment permit from the Santa Clara Valley Water District (SCVWD). The design shall be complete and approved by the City Engineer, prior to the issuance of the first building Certificate of Occupancy for single family residences for production homes. The construction of the bridge shall be completed prior to the issuance of the 57th building Certificate of Occupancy for single family residences. The bridge shall be configured with striped Class II bicycle lanes and a minimum of 6-foot wide to a maximum of 10-foot wide sidewalks along both sides of the travel way, consistent with Gilroy Public Works Standards for that street classification. Developer shall design and construct the ultimate intersection improvements, as required per the General Plan, including the installation of a traffic signal at the intersection of Cohansey Avenue and Monterey Road. Said improvements must be complete and to the satisfaction of the City Engineer. The design and construction of the intersection improvements shall be completed prior to the 20th building Certificate of Occupancy. Developer shall construct frontage improvements on Monterey Road, including but not limited to, sidewalk, curb & gutter, VTA bus stop amenities which may include but not be limited to passenger shelter and sitting area, night lighting, and trash receptacle, landscaping, irrigation, and street lights. Developer shall provide a bike trail access from Cohansey to the future bike trail below the Cohansey bridge, consistent with SCVWD guidelines for access to bicycle trails along waterways. Public Improvement Agreement (PIA) #2015-06, executed between Meritage and the City in December 2016, further clarified the above mentioned improvements, applicable cost obligations and/or reimbursement arrangements with Meritage. The following is an excerpt from the PIA, regarding reimbursable activities and amounts: i. Cohansey at Llagas Creek Bridge is estimated to cost $3,665,199.00. The current reimbursement amount for this bridge is $1,606,448.00 per the current TIF budget. Trail improvements, retaining walls and associated improvements (with an estimated cost of 180,000) may be included for reimbursement as allowable under the TIF and according to city policy. 10.C Packet Pg. 71 9.A.a Packet Pg. 144 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) ii. Cohansey/Church to Monterey segment has an estimated reimbursement cost of $341,424.00 per the current TIF budget. Additional costs for the Cohansey median construction (with an estimated cost of$260,000) may be included for reimbursement as allowable under the TIF and according to city policy. iii. Cobansey/Monterey intersection has an estimated reimbursement cost of$773,188.00 per the current TIF budget. The pole relocation to accommodate intersection improvements (with an estimated cost of$120,000) may be included for reimbursement as allowable under the TIF and according to city policy. iv. Miscellaneous design, permit and review fees (with an estimated cost of$150.000) may be included for reimbursement as allowable under the TIF and according to city policy. Currently, the improvements on the road segment have been completed and accepted by the City, the bridge is in final construction stage, and the intersection improvements at Cohansey Avenue and Monterey Road have not yet begun. PIA amendment request seeks full reimbursement of construction cost for the construction of the Cohansey Bridge, segment of Cohansey Avenue within the development, and the intersection improvements at Cohansey/Monterey Road. In September 2015, prior to the PIA approval, the cost of the bridge was estimated at $3,665,199. The current approved PIA indicates a reimbursement value of $1,606,448 (plus $180,000 for trail improvements, retaining walls and associated improvements) for the bridge, $601,424 for the Cohansey segment, and $773,188 (plus $120,000 for pole relocation to accommodate intersection improvements) for the intersection improvements. The total eligible reimbursement amount identified in the PIA is $3,281,060. The developer has requested a modification to the PIA to increase the reimbursement amount to $9,384,830 which will cover the cost of all offsite improvements. is $6,103,770. ANALYSIS The ter Plan dated April 2004. The Master Plan establishes transportation system design and planning criteria, and determines the necessary improvements required by evaluating the existing transportation system and performing a system wide analysis of future General Plan build-out needs. While the projects in the Traffic Impact Fees (TIF) fund are funded through the collection of fees on new developments, and often constructed by developers as part of 10.C Packet Pg. 72 9.A.a Packet Pg. 145 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) their project conditions of approval, it must be noted that the type and amount of reimbursement of costs to construct these improvements is largely dependent on several factors. Master Plan are required to accommodate the projected demand for the transportation system and meet General Plan build-out conditions. To that end, the master plan also includes conceptual material quantities and cost estimates for the identified improvements. In total, more than 150 projects with a total value of $277,000,000 are identified to be Plan. Below is a table showing the project types identified in the plan: Projects Quantities Estimated Improvement Cost Street Segments 50 $98,900,000 Intersections 67 $98,400,000 Bridges 32 $62,560,000 Miscellaneous $17,140,000 Total $277,000,000 The cost estimates for projects within the Traffic Circulation Plan were originally calculated in 2004 in coordination with the master plan development. The sum total of the value of these projects was used to determine the TIF collection amounts needed to fund projects and provide for reimbursement in accordance with those cost estimates. Project costs have generally increased over the past fifteen years. In order to account for changes in planning, design and construction cost of transportation projects, the Department of Public Works has updated the project cost estimates in one of two ways: 1. Computed the actual material quantities and use most recent historical unit more readily available information with respect to design scope and timing of construction. 2. Adjusted project cost estimates by a reasonable escalation factor (on average 3%) Cost responsibility for proposed improvements depends on several factors including proximity of a development project to a given transportation element, trips generated from the development and the specific impacts the project imposes on the transportation network. Taking the timing of the project and objectives of the transportation master plan into consideration, the city typically conditions a developer to build transportation improvements above and beyond what directly benefits the project; 10.C Packet Pg. 73 9.A.a Packet Pg. 146 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) to that end, reimbursement of TIF improvement costs will vary based on the following factors: The impacts of the proposed development to the traffic circulation adjacent to the project as well as the network in general Any frontage improvements associated with the project The ability of the city to design and/or construct the remaining transportation elements Available funding in the TIF fund If a developer is conditioned to build transportation improvements to benefit the larger community and/or traveling public, the city reimburses the developer those costs above The Engineering Division keeps a spreadsheet that tracks and updates cost estimates for the various transportation elements. This PIA was drafted consistent with reimbursement policy (attached) which was approved by council in 2008. For the Cohansey at Llagas Bridge (Bridge #21), the 2004 Traffic Circulation master plan included a cost estimate of $1,425,600. This estimate was later updated in 2006 to $1,186,843, in 2009 to $1,309, 440 and in 2016 to $1,606,448 (accounting for approximately 7 years of inflation from 2009). Please note that, since the execution of the PIA in December 2016 (which followed the letters sent to Mr. Suner in August 2015, and Meritage before September 2016), there have been no updates to the TIF worksheet. It is also important to note that, either during or since the execution of the PIA in December 2016, Meritage has not indicated any concerns with the TIF reimbursement amounts or made any requests to amend the PIA to increase the reimbursable amounts. As far as adjustment to the reimbursement amount through an amendment of the PIA, Meritage has not provided sufficient justification or benefits to the city (other than the fact that actual costs have come in over the PIA estimates). In cases where project level cost estimates are not available, Traffic Impact fees have been adjusted since 2004 accounting for an average escalation factor of 3%. While an assumption can be made that this would pay for construction/reimbursement at a higher project value, staff cannot confirm this as there has not been a comprehensive reevaluation of the projects since 2004. Without a complete update to the individual project costs and an evaluation of the TIF program, Staff believes that the current fund balance or projected income from TIF payments may not be able to support reimbursement at full value. RECOMMENDATION There is a need for a policy decision by the City Council regarding the current state of the Traffic Impact Fees (TIF) fund and whether or not the request by Meritage is warranted. If there is an interest to reimburse full project values based on construction costs, there may be a need to increase the TIF amount collected from developers. 10.C Packet Pg. 74 9.A.a Packet Pg. 147 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) Staff recommends that an update analysis be completed for the projects within the Traffic Circulation Master Plan before modifying current PIAs for increased reimbursement to developers. Once the project costs are updated, staff can determine if the current and projected TIF revenue can fund current and future projects. If not, staff will determine the value of adequate Traffic Impact Fees needed for reimbursements to developers without burdening other city funds or future projects. Staff has already begun this effort which is expected to be completed in three months and will be followed by a presentation to council. Staff also recommends an interim update to the Transportation Master Plan and recalculation of the TIF fees if necessary. If the Council decides to amend the PIA, then it should make findings establishing the public benefit and/or the reasons why the City is amending it. The basis for findings is that a PIA is a contract, and under basic contract principles consideration is necessary for the contract to be binding and enforceable. If there is no consideration, then the contract (or amendment) may not be enforceable or it could be seen as a gift. ALTERNATIVES Council has the following options with respect to this request: 1. Council may approve this request with no changes to the TIF or reimbursement schedule. STAFF DOES NOT RECOMMEND THIS OPTION. 2. Deny request with no changes to the TIF Program or this particular PIA. STAFF DOES NOT RECOMMEND THIS OPTION. 3. Deny request and direct staff to perform comprehensive analysis of the current TIF program, the cost of projects as well as the Traffic Impact fee schedule. STAFF RECOMMENDS THIS OPTION. For the reasons stated in the foregoing recommendation section. FISCAL IMPACT/FUNDING SOURCE A modification to the Harvest Park 2, or any other PIA, without a provision to increase the amount of TIF fees collected would put the long-term sustainability of the TIF program in jeopardy as the fees currently being collected are based on a lesser reimbursement value. Staff recommends a comprehensive analysis of current Traffic Circulation Master Plan projects and a revision to their construction costs given current market values. These updated estimates will be used to identify various reimbursement options which, in turn, will drive the need for a corresponding value of TIF needed to be collected from developers. These options will be presented to Council for consideration in determination of the Cit TIF Fund Balance 10.C Packet Pg. 75 9.A.a Packet Pg. 148 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) The following table summarizes the current fund balance, projected TIF revenue as well as anticipated reimbursements thru Fiscal Year 2020 (June 2020): Traffic Impact Fee (TIF) Item Amount Current TIF Fund balance $13,000,000 Anticipated revenue thru FY 19 (June 2019) $ 3,000,000 Cash Balance end of FY 19 $16,000,000 Projected Reimbursement Request thru FY 19 $(7,800,000) Ending TIF Balance FY 19 (June 2019) $ 8,200,000 Anticipated TIF revenue in FY 20 (thru June 2020) $ 3,400,000 Projected Reimbursement Request in FY 20 (thru June 2020) $(2,900,000) Ending TIF Balance FY 20 (thru June 2020) $ 8,700,000 A modification to the Harvest Park 2 by the amount of their request of $6,103,770 will significantly reduce the projected FY 20 TIF fund balance to $2,596,230. Attachments: 1. Harvest Park II PIA Amendment Request 2. Recorded Harvest Park II PIA 3. Reimbursement Requests Policy 2008 10.C Packet Pg. 76 9.A.a Packet Pg. 149 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.a Packet Pg. 77 Attachment: Harvest Park II PIA Amendment Request (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 150 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.a Packet Pg. 78 Attachment: Harvest Park II PIA Amendment Request (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 151 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 79 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 152 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 80 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 153 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 81 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 154 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 82 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 155 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 83 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 156 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 84 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 157 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 85 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 158 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 86 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 159 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 87 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 160 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 88 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 161 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 89 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 162 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 90 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 163 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 91 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 164 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 92 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 165 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 93 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 166 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 94 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 167 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 95 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 168 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 96 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 169 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 97 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 170 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 98 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 171 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 99 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 172 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 100 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 173 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 101 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 174 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 102 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 175 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.b Packet Pg. 103 Attachment: Recorded Harvest Park II PIA (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 176 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.c Packet Pg. 104 Attachment: Reimbursement Requests Policy 2008 (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 177 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.c Packet Pg. 105 Attachment: Reimbursement Requests Policy 2008 (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 178 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.c Packet Pg. 106 Attachment: Reimbursement Requests Policy 2008 (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 179 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.c Packet Pg. 107 Attachment: Reimbursement Requests Policy 2008 (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 180 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) 10.C.c Packet Pg. 108 Attachment: Reimbursement Requests Policy 2008 (2079 : Harvest Park 2 PIA Amendment and TIF Update)9.A.a Packet Pg. 181 Attachment: Staff report 03-04-19 re Harvest Park 2 PIA Amendment request (2093 : Update on Harvest Park 2 PIA Amendment and TIF Update) City of Gilroy STAFF REPORT Agenda Item Title: Appointments to the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Housing Advisory Committee and Parks and Recreation Commission Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: City Clerk Submitted By: Shawna Freels Prepared By: Shawna Freels Suzanne Guzzetta Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Customer Service ☐ Enhanced Public Safety RECOMMENDATION Appoint Members to the Arts and Culture Commission, Community and Neighborhood Revitalization Committee, Housing Advisory Committee and Parks and Recreation Commission. BACKGROUND A continued recruitment effort has been on going to fill vacant seats on the Arts and Culture Commission, Community and Neighborhood Revitalization Committee Housing Advisory Committee and the Parks and Recreation Commission. Applications have been received for each of these groups and the Council is interviewing candidates at the opening of the meeting. Applications and the 2018 attendance log are included with this staff report. The Council is now asked to consider the appointment of members to the following open seats. Applicants are: 9.B Packet Pg. 182  Arts and Culture Commission – 3 seats (1 4-year term ending 12/31/2022, 1 3-year term ending 12/31/2021, and 1 1-year term ending 12/31/2019) Applicant(s): Sally Armendariz* and Karla Sward  Community and Neighborhood Revitalization Committee – 2 seats (1 4- year term ending 12/31/2022, 1 2-year term ending 12/31/2020) Applicant(s): Greg Bozzo  Housing Advisory Committee – 3 seats (1 2-year term ending 9/30/2020, 1 1-year term ending 9/30/2019, and 1 1-year term ending 12/31/2019); One (1) renter; One (1) resident; and One (1) Local Property Owner seat Applicant(s): Paulina Baeza, Danny Van  Parks and Recreation Commission – 1 seat (1 3 –year term ending 2/31/21) Applicant(s): Marcos Gonzalez and Robert Miller *incumbent Attachments: 1. Applications 2. 2018 Board-Commission Attendance 9.B Packet Pg. 183 9.B.a Packet Pg. 184 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 185 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 186 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 187 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 188 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 189 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 190 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 191 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 9.B.a Packet Pg. 192 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) 12/4/2018 16:22 City of Gilroy Application for Board, Committee and Commission Appointment Board/Committee/Commission of Interest Name: Robert Miller Phone number(s): Parks & Recreation Commission email address*: Are you a registered voter within the City limits? Yes Physical Address*: List your qualifications for this appointment: I have lived in Gilroy for more than 26 years and, along with my daughter who grew up and went through the public school system here, have extensively used City parks and taken part in recreation programs. My background includes extensive participation in individual and group sports and physical fitness activities, including as a basketball and tennis player on high school and college teams, a long-distance runner (completed 20 marathons), and a hiker. I was a tennis instructor for three years in the County Parks and Recreation program where I grew up in Maryland and also worked as a basketball referee in a CYO program. I am a professor of geology at San Jose State University where I teach field classes and have been a department chair, which has given me experience in dealing with a diverse group of students, faculty, and administrators, and in managing budgets. I am currently a board member for a local running club (South Valley Running Club) and volunteer for the Mt. Madonna Challenge and other local races. List any service to the community including any prior appointments: Santa Teresa Soundwall Committee Jordan Elementary School Parent Advisory Committee (1997-1998) 2020 General Plan Update Committee Hecker Pass Corridor Specific Plan Garlic Festival South Valley Running Club - Board member What are your goals while serving on this Board/Commission/Committee?: I have a strong interest in promoting City Parks and Recreation classes. From my perspective, the City does a good job in these areas, but it is important that we increase participation by residents of all ages and parts of our community, and make residents more aware of recreational opportunities. In addition to encouraging youth after -school activities, a significant goal is to increase physical activity of adults, which is important for public health. We should also be aware of changing recreational interests of our residents, and have the flexibility to react to these changes. My hope is that I can help the commission meet these goals. Why are you the most qualified to serve on this Board/Commission/Committee? I believe that my broad background and perspective, collegiality, and sincere desire to promote the mission of the Parks and Recreation Commission make me well qualified for this position. All Commission, Board and Committee applications are a public record 9.B.a Packet Pg. 193 Attachment: Applications [Revision 2] (2115 : Appointments to City Boards, Commissions and Committees) MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sally Armendariz P P A P P C C -A A A - Barbara Bottini P P P P P C C -P E P - Bruce Morasca P P P E P C C -P p P - Amanda Rudeen N/A P P P P C C -P P P - Maricela Andrade N/A N/A N/A N/A N/A N/A N/A N/A P P P - Nancy Fierro N/A N/A N/A N/A N/A N/A N/A N/A P P P - Marika Somorjai N/A N/A N/A N/A N/A N/A N/A N/A P P P - MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Chad Reeder P P P P P P C P E P P C Sean Reedy P P P P P P C P P P P C Leonardo Gonzalez P P P A P P C P E E P C Lionel Gonzalez P P P E P E C E P P P C Zachary Hilton P P P E P P C P P P P C MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec John Almash - - - - - - - - - - - - Neil Beman - - - - - - - - - - - - Patricia Giordano - - - - - - - - - - - - Moe McHenry - - - - - - - - - - - - Metra Valle - - - - - - - - - - - - MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sally Armendariz P C P A P C C C C P C - Marisela Castro P C P E A C C C C E C - Jesiah Dueñas P C P P P C C C C P C - Kris Schlenker P C E P P C C C C P C - Dr. George Vanecek P C P P P C C C C P C - William "Joey" Weitz E C P P P C C C C P C - Linda Williams P C P P P C C C C P C - MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Steve Ashford (Planning Comm. Rep)C P C C P C C P C P C C Mayor Roland Velasco (City Council Rep)N/A N/A C C P C C P C A C C Fabian Morales Medina C P C C P C C E C P C C Almendra Perez C P C C P C C A C P C C Steve Seebart C P C C P C C P C P C C MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rebeca Armendariz C C C A P P E E C C C C Elizabeth Bertolone C C C E P E P P C N/A N/A N/A Jerrod Coddington C C C P P P P P C N/A N/A N/A Toby Echelberry C C C P P P P P C E C C David Fissel C C C P P A P P C E C C Reid Lerner C C C P P P A P C C C C Lucille Reyes C C C E P P E E C C C C Jaime Rosso C C C P A P P P C C C C VACANT MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rashmi Beman A P C C P A c P P P E c Michaela Gonzalez P P C C P P c A P A P c Sumana Reddy P P C C P A c P P A P c Kathy Souza N/A P C C P P c P P P P c Candice Whitney P P C C E P c P E P P c MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Alison Beach -A --E --P P Robert Esposito -P --P --P P Jon Paul Newland -A --P --P P Amanda Rudeen N/A N/A N/A -P --P P James Weaver -A --A --P A MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec John Almash P E P E E P P -A P E - Terrie Berry P P P P P P P -P P P - Julie Garcia P E E P P E P -P E P - Ermelindo Puente P P E E P P P -P P P - Troy Trede P P E P E P N/A N/A N/A N/A N/A N/A Patricia Bentson P P P P P P E -P P P - Carol Marques P E P E P P P -P P P - MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct 8 RM/Oct 15 Special Mtg Nov Dec Thomas Brewer P P E C P P E P C C/P P C Nita Edde-Mitchell E P P C P P P E C C/P P C Annie Tomasello P P E C E P P E C C/P P C Catherine Cummins P P P C P P P P C C/P A C Linda Weick P P P C E E P P C C/P A C MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct. Nov Dec Martha Johanson -P C P Stephanie Okada-McCabe -A C P Domingo Chavez -P C P Marco Machado -P C P Mercy Mollinedo Goold -P C A MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rebeca Armendariz P E P A P P C C P P P P Steve Ashford P P P P P P C C P P P E Casey Estorga P P P P P P C C P P P P Tom Fischer P P P P P P C C P P P P Sam Kim N/A N/A P E E P C C P P P P Susan Rodriguez P P P P P E C C P P P P Rebecca Scheel P P P P P P C C P P E P MEMBER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bruce Morasca (A&C rep)E P P P P E P -P P P - Sam Bozzo P E P P E P P -P P A - Armando Franco P P P E P P E -P P A - Melanie Reynisson P P P P P p E -P A P - Sally Armendariz P A A A A A P -A A P - Judy Bozzo P P P P P p P -P P P - Camille McCormack N/A P P E P p P -P P P - P = Present E= Excused C = Meeting was cancelled - = No meeting was scheduled PLANNING COMMISSION (7 members meets 1st Thurs/6:30) PUBLIC ART COMMITTEE (7 members meets 4th Wed/5:30) COMMUNITY & NEIGHBORHOOD REVITALIZATION COMMITTEE (7 members meets 3rd Wed/6:45) HISTORIC HERITAGE COMMITTEE (5 members meets monthly) HOUSING ADVISORY COMMITTEE (9 members meets 2nd Wed/6:00) LIBRARY COMMISSION (5 members meets 2nd Wed/7:00) OPEN GOVERNMENT COMMISSION (5 members meets quarterly) N/A = Not a member (Resignation, Term expired, Not yet appointed) A = Absent (Unexcused) PARKS & RECREATION COMMISSION (7 members meets 3rd Tues/6:00) BOARD/COMMISSION/COMMITTEE ATTENDANCE 2018 ARTS AND CULTURE COMMISSION (7 members meets 2nd Tues/5:30) BICYCLE/PEDESTRIAN COMMISSION (5 members meets 4th Tues/6:00) BUILDING BOARD OF APPEALS (5 members meet as needed) PERSONNEL COMMISSION (5 members meets 2nd Mon/5:30) PHYSICALLY CHALLENGED BOARD OF APPEALS (5 members meets 2nd Tues/10:00am-Jan/April/July/Oct) 9.B.b Packet Pg. 194 Attachment: 2018 Board-Commission Attendance (2115 : Appointments to City Boards, Commissions City of Gilroy STAFF REPORT Agenda Item Title: Report on Quality of Life and Homelessness Plan Meeting Date: March 18, 2019 From: Gabriel Gonzalez, City Administrator Department: Police Department Submitted By: Scot Smithee Prepared By: Scot Smithee Patricia Vigil Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Customer Service  Enhanced Public Safety RECOMMENDATION Receive report. EXECUTIVE SUMMARY The purpose of this report is to provide an update on the efforts of the Gilroy Police Department following Councils approval of a budget amendment to fund a pilot Quality of Life enforcement effort to address Quality of Life issues. The additional funding was split between: 1. The Police Department, 2. City Attorney’s Office, and 3. Public Works Department. The three (3) objectives of the funding were: 1. enhanced enforcement of quality of life issues; 10.A Packet Pg. 195 2. prosecution of quality of life crimes; and, 3. support from Public Works Department to pick up rubbish and debris . Since the implementation of the pilot program, the number of quality of life crime activities for the Police Department has increased as discussed in more detail below. This increase in activity is despite recent changes to the law pursuant to a Ninth Circuit Court of Appeals ruling that prohibits the enforcement of illegal camping laws. Our City Attorney’s Office implemented a change in our prosecution stance which has created additional challenges for the courts in the form of increased workload. The Police Department, the City Attorney’s Office and the District Attorney’s Office have met with the court to address these challenges by working cooperatively to decrease the number of times a particular defendant appears in court on new charges. The Public Works support has been working well and the expense has been less than anticipated. BACKGROUND On January 17, 2018 the Police Department presented a report to Council on homelessness issues, calls for service trends; patrol beat deployment, and legislation negatively impacting law enforcement's efforts to address crime problems. On February 26, 2018 Council was presented with a plan to more proactively address quality of life issues in the City. This plan included a one-time budget amendment for $137,000 to support this directed effort. The Police Department was designated $50,000 to fund two officers on overtime working a minimum of one 5-hour shift per week dedicated solely to quality of life issues. The City Attorney’s Office was designated $50,000 to prosecute quality of life crimes for repeat offenders. The Public Works Department was designated $37,000 to provide for two part time employees to work in conjunction with the designated overtime shifts worked by officers enforcing quali ty of life issues. The purpose was to provide for a truck and staff to collect rubbish and debris associated with the increased enforcement. The Public Works funding also included additional dump fees associated to garbage collected during these efforts. The Police Department committed to report back to Council on the effects of these efforts. This report will provide information and statistical data on the efforts to combat homelessness and the criminal behavior affecting the community’s quality of life. ANALYSIS The homeless population of Gilroy has been growing at a significant rate. According to the Elected Officials Briefing on the 2017 Santa Clara County Homeless Census and Survey, there were 7,394 homeless individuals in Santa Clara County. Gilroy a ccounted for approximately 722 homeless individuals and ranked second in the County behind San Jose. The homeless population survey of Gilroy conducted in 2015 reported 439 homeless individuals in Gilroy. This represents a 64% increase over a two year per iod. 10.A Packet Pg. 196 A new homeless survey was conducted in January, 2019; however, the results of that survey have not been published. One reason for such a large number of homeless individuals in Gilroy is the cold weather shelter operated at the Armory building during the winter months (November - April). In previous years, the occupancy at the cold weather shelter was 130 which could increase to 180 during declarations of inclement weather. In the 18/19 season a new occupancy load analysis was completed resulting in the total allowable occupancy being reduced to 100 persons, which can increase to a maximum of 130 individuals during declarations of inclement weather. The armory operates on a referral basis and once a bed is granted to a homeless individual, they have t hat bed for the duration of the cold weather season. Figure 1: Year-Over-Year Comparison of Armory Calls for Service from 2015 to 2018 An immediate short-term measure to address increasing quality of life crimes was to increase the enforcement of criminal activity. Additional funding was approved by 10.A Packet Pg. 197 Council to provide two officers, at least one time per week, for a 5-hour shift dedicated to quality of life issues. During these quality of life interactions, police personnel distributed information to homeless individuals on various programs and services available to assist them. Aside from providing social services information, the main emphasis of the pilot program was addressing criminal behavior. Common complaints from residents and business operators include theft, individuals consuming alcoholic beverages in public, loitering, fighting, aggressive panhandling, obstructing sidewalks, disturbing the peace by loud and unreasonable noises, and behaving in a threatening manner. Statistical Data Quality of life calls for service and arrests have increased significantly between 2015 and 2018. The following statistical charts represent efforts for the last four years by the Police Department on quality of life enforcements. Figure 2: Year-Over-Year Comparison of Police Quality of Life Calls In 2015, the total Officer-initiated activities (proactive) accounted for 36% of all quality of life calls. Since the pilot program began in 2018 the Officer-initiated activities related to all quality of life calls have increased to 44%. Both proactive and reactive quality of life calls for service have increased between 2015 and 2018. 10.A Packet Pg. 198 Figure 3: Year-Over-Year Comparison of Community Generated (Reactive) Calls for Service from 2015 to 2018 Figure 4: Year-Over-Year Comparison of Police Officer Initiated (Proactive) Calls for Service from 2015 to 2018 10.A Packet Pg. 199 The proactive quality of life enforcement teams also work with businesses and residents to provide information that helps them address and prevent crime. These efforts are likely associated to the increase in community generated calls for service in 2018. As an example, trespassing forms (Penal Code Section 602) have been made available on the City’s website which authorizes the Police Departmen t to act on their behalf for trespassing related issues. The form authorizes the Police Department to enter private property to investigate suspicious activity and to arrest people who are trespassing or committing a crime. The majority of these are for commercial and industrial type properties. Since providing more information to businesses and residents on the legal processes available to them, we have seen an increase in authorizations on file to act on behalf of owners. Figure 5: Year-Over-Year Comparison of Trespassing Enforcement (602(o) PC) from 2015 to 2018 10.A Packet Pg. 200 A substantial increase in quality of life arrests has also been realized in 2018 as compared to the previous three years. In analyzing the following graph the arrest rate jumped considerably in February, 2018 which was the same month the dedicated quality of life deployments were initiated. Figure 6: Year-Over-Year Comparison of Police Quality of Life Arrests by Month from 2015 to 2018 10.A Packet Pg. 201 Dedicated Quality of Life Enforcement Detail In response to quality of life issues and to increase enforcements in Gilroy, on February 26, 2018, City Council approved a mid-year budget amendment request of $137,000. This approval was part of the short term measures to provide immediate response and increased enforcement of criminal issues. The Police Department received a $50,000 increase to the patrol overtime budget. Since being implemented (February, 2018) 50 quality of life enforcements consisting of two officers, for 5-hour intervals have been conducted. These special deployments resulted in 445 persons being proactively contacted. The below graph represents the activity of those 50 quality of life enforcements. Figure 7: 2018 Police Quality of Life Directed Enforcement Activity Community Engagement Project 10.A Packet Pg. 202 A new strategy included in the August, 2018 “Quality of Life Crime and Homelessness Plan” was implementation of a community engagement project plan. A project plan was implemented with a 12 month projected role out period. The engagement objec tives of the plan include: 1. Educate the Latino Spanish Speaking Community on the role of the Gilroy Police Department 2. Educate the community on what crimes to report 3. Educate the community on how to report crimes 4. Provide updates to the community on increased reporting Flyers were prepared in both English and Spanish. The plan is now in the outreach phase. In January, meetings with key business stakeholders occurred and the City website was updated with a business guide and Community guide. In February, 2018 an article was produced for publication in the “GMH Today” magazine providing information on the plan. Social media outreach is scheduled to commence in March, 2019 with key stakeholder follow up meetings scheduled between February and July, 2019. Partnerships City Attorney’s Office The City Attorney’s Office is responsible for prosecuting all Gilroy Municipal Code violations in addition to the many that are quality of life violations. To this end, the City Attorney’s Office received $50,000 specifically for the prosecution of repeat offenders of the Gilroy Municipal Code. All quality of life crimes are scheduled to appear in Superior Court. This typically occurs on the first Tuesday of the month at the South County courthouse when the Community Resources Court is held. The Community Resources Court is a homeless court program adopted by Santa Clara County Superior Courts to provide indigent individuals access to services and resources in an effort to address the underlying causes for the violations and reduce recidivism. The City Attorney typically dismisses Municipal Code violations if the defendant speaks to a service provider present at Community Resources Court, and agrees to seek the supportive services; however, there is no monitoring mechanism to ensure that the defendants actually seek such services. As a result, for repeat offenders, this option has proven to be ineffective. Consequently, the City Attorney has been working with the Police Department on moving forward with prosecution of cases involving repeat offenders, rather than continuing to dismiss these cases. The Community Resources Court process has faced a number of obstacles; however, due in large part to the City’s more lenient approach to prosecuting quality of life crimes 10.A Packet Pg. 203 in the past, repeat offenders often do not appear for their hearings. The City Attorney is currently working with the Police Department to ensure that cases are appropriate for further prosecution, and the defendants are present in court for their arraignment hearing. The City Attorney’s office has also researched and determined the type of evidentiary support it needs to successfully try cases. The City Attorney plans to work with the Police Department to evaluate current citation reporting practices and to provide guidance in establishing evidence-gathering best practices that will support efficient and effective prosecution. Furthermore, in light of the limitations on enforcement caused by recent judicial decisions, discussed in further detail in a later section below, the City Attorney is working with the Police Department to make sure that such enforcement complies with the evolving landscape of laws related to the prosecution of quality of life crimes. Finally, the City Attorney, the Chief of Police, and the District Attorney’s Office have recently engaged the court in an ongoing discussion about how we can more effectively prosecute quality of life crimes. The South County court has expressed concern about the ineffectiveness of current prosecution practices in reducing recidivism and the strain that repeat offenders are putting on court resources. The City Attorney, the Chief of Police and the District Attorney’s Office will continue to work with the court to ensure that as we go forward with taking cases to trial, those cases will be deemed appropriate for such measures in the eyes of the court. Public Works Department The Public Works department received $25,000 to hire two part -time employees assigned to respond to the Police Departments calls for service to rem ove rubbish and debris from Gilroy’s right of way during quality of life deployments. An additional $12,000 was provided for an anticipated increase in dump fees associated to these cleanups. The City crew has provided this service, to include the picking up of shopping carts during deployments. The materials collected thus far have been disposed of via the refuse bins at the City Yard rather than transporting it directly to a landfill. By disposing of refuse in this manner the amount requested for dump fe es was not needed. This additional effort by public works diverts garbage from the City right of ways to the landfill. Santa Clara Valley Water District The Police Department partners with the Santa Clara Valley Water District to provide creek cleanups throughout the City’s watershed areas which are used by many of our homeless population to setup illegal encampments. The watershed areas have been adversely affected due to the contamination of creeks with biohazards, including hypodermic needs and other hazardous waste. The Water District has historically 10.A Packet Pg. 204 provided one to two creek cleanups per month. The Police Department posts legal notices in advance of the cleanups and provides security during the cleanup events. The total number of clean ups and the tonnage of garbage removed for the past three years: Year Clean-Up Days Tons of garbage collected 2016 9 60 2017 18 121 2018 15 145 Of concern to the creek cleanup efforts is the budget shortfall identified this last year for the Water District. Despite the amount of garbage increasing annually, towards the end of 2018 the Water District had to reduce the number of cleanups by 50% of their previous number of cleanups. This will undoubtedly have a negative impact on the quality of our creeks and watershed areas in 2019. County of Santa Clara – Mental Health The Behavioral Health Department of Santa Clara County intended to create two teams of licensed mental health clinicians to provide mental health evaluation of individuals encountered during officers’ quality of life calls for service. This effort was delayed due to the hiring of qualified individuals to fill these positions. Currently the South County area has one team of clinicians available to respond to mental health issues when requested by the Police Department. This team was assigned to the South County area beginning in May, 2018. When Police Officers come across individuals who may be viable candidates for alternative mental health services (other than a 5150 committal to Emergency Psychiatric Services) this team is called. As of the end of 2018 these clinicians were able to respond when requested by Gilroy Police Officers in 13 cases. Evaluations were completed and alternative service delivery models for their mental health needs were evaluated. Statistics for Gilroy specific cases are not available, but we do have information concerning the number of referrals County wide. On average in the County of Santa Clara 9.6% of individuals evaluated were committed for a 5150 hold, 42% were already connected with mental health services and 12.5% of those evaluated were linked with new services. 10.A Packet Pg. 205 Figure 8: Year-Over-Year Comparison of Police Mental Health Calls for Service from From 2015 through 2018 Gilroy Fire Department In 2018, the Fire Department responded to 699 calls for service which involved homeless individuals. This translates to an average of 1.915 homeless calls for service per day. The following graph captures the total number of homeless related calls for 2018 by the responding fire station. 10.A Packet Pg. 206 Figure 9: 2018 Fire Department Quality of Life Calls for Service by Fire Station The Fire Department has responded to an increase in calls for service involving quality of life issues, specifically, mental health instability, substance abuse and inebriation. In an effort to be better equipped to assist individuals with mental health instability, the Fire Department partnered with Dr. Kenneth Miller, the Santa Clara County Emergency Medical Services Agency Medical Director, to embark on a paramedicine pilot program to steer certain patients away from local emergency rooms and into alternative destinations that would better serve them. Gilroy Fire is the only fire-based agency in the State of California to participate in such a program. Due to the success of the program, the State of California Emergency Medical Services Authority has approved extending the pilot until November 2019. The following graph captures the total number of behavioral health related calls for service in 2018 and the number related to the homeless population. 10.A Packet Pg. 207 Figure 10: 2018 Fire Department Behavioral Health Calls for Service New Court Rulings (2018) On September 4, 2018, the Ninth Circuit Court of Appeals held that ordinances prohibiting “camping” were a violation of a person’s Eighth Amendment rights (Cruel and Unusual Punishment). These ordinances imposed criminal sanctions against homeless persons for sleeping outdoors, on public property, when they had no alternative shelter access available. In order for the City to criminalize such conduct, enough shelter space would need to be available to accommodate any and all homeless individuals who sought shelter. Essentially, the court concluded that the Eighth Amendment prohibits the imposition of criminal penalties for sitting, sleeping, or lying outside on public property for homeless individuals who cannot obtain shelter. However, it does not mean that a homeless individual can set up camp anywhere they want at any time. Laws restricting the blocking of public right of ways, certain time restrictions, and the building of structures can be enforced as long as they do not punish the individual for the, “universal and unavoidable consequences of being human”. Jones, 444 F.3d at 1136. Immediately following this ruling the Santa Clara County District Attorney’s Office dismissed all pending cases involving illegal lodging and camping. As a result of this action by the District Attorney’s office to cease prosecuting these type of cases, the GPD subsequently stopped citing individuals for these type of offenses. 10.A Packet Pg. 208 Figure 11: 2018 Police Issued Illegal Lodging Citations Oversized Recreational Vehicles Individuals living out of oversized recreational vehicles have been problematic when those vehicles become unserviceable and are left on City Streets. In 2017, 16 oversized vehicles were towed in the city. In 2018, 15 oversized vehicles were towed. Oversized vehicles are manufactured with materials other than metal and contain hazardous waste tanks, propane tanks and refrigerants which all require special handling. As fewer dismantlers accept oversized vehicles, the cost to our tow service providers increased significantly. These increasing costs created reluctance on the part of our tow service providers to tow and ultimately dispose of these vehicles. In response to the rising costs of disposal fees, on October 15, 2018, City Council approved an increase to the per vehicle fee paid to the rotational tow service providers from $500 to $1,000 per oversized vehicle towed. CONCLUSIONS The statistics reveal quality of life crimes continue to increase. The pilot project has resulted in more officer initiated activity surrounding quality of life crime and has provided additional police resources to address community generated calls for service related to quality of life issues. New laws and court rulings continue to hinder efforts to address quality of life crimes, 10.A Packet Pg. 209 but education and community engagement activities help members of the community understand how best to protect themselves. The Gilroy Police Department will continue its enforcement efforts on quality of life crimes, working cooperatively with other City Departments and outside entities. The Gilroy Police Department will also continue to work cooperatively with service providers, providing information and endeavoring to connect homeless individuals with services available as described in the “City of Gilroy Homelessness Plan” (attached) which was presented to Council at the August 6, 2018 Council Meeting. NEXT STEPS The Gilroy Police Department will continue to exercise diligence while implementing the multifaceted Homeless Plan, including:  Completing the community engagement project plan;  Continuing support for cleanup efforts by the Santa Cla ra Valley Water District and City of Gilroy staff;  Exploring the possibility of creating a permanent two-officer team to address quality of life crime issues on a full-time basis;  Continuing to work with the Santa Clara County Superior Court to address the ir concerns about prosecution of quality of life crimes; and  Continuing to work in partnership with outside agencies and service providers as outlined in the City of Gilroy Homeless Plan. Attachments: 1. Ninth Circuit Ruling on Illegal Camping 2. Homeless Plan - 6-2018 10.A Packet Pg. 210 10.A.a Packet Pg. 211 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) 10.A.a Packet Pg. 212 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) 10.A.a Packet Pg. 213 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) 10.A.a Packet Pg. 214 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) 10.A.a Packet Pg. 215 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) 10.A.a Packet Pg. 216 Attachment: Ninth Circuit Ruling on Illegal Camping (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Activities by Agency 1 | P a g e Agency Activities Gilroy Police Department 1. Continue distributing Homeless Outreach Resource Guides to homeless individuals and encourage participation in these programs. 2. Patrol personnel will take a proactive no tolerance approach to those committing quality of life crimes. 3. The Department will deploy a 2 Officer team a minimum of once per week for 5 hour time periods with the sole purpose of addressing quality of life crimes. 4. The Department will provide prior posting of illegal encampments as required by law for any scheduled cleanup of waste and environmental hazards. Advanced notice will be provided to community service providers of upcoming clean up days. 5. The Department will deploy 2 Officers to support the Homeless encampment clean up 1-2 days per month in partnership with the Santa Clara Valley Water District. Encampments not covered by the Water District will be handled in conjunction with part time Gilroy Public Works staff. 6. Implement a community engagement project plan. This plan includes specific components related to homelessness and quality of life crimes. A guide for dealing with homeless issues is being developed for distribution. The guide includes information on what conduct should be reported to the police, and how to avoid problems associated with homeless individuals. This form can be handed out by City staff, mailed out in water bills, posted on the City web site, and distributed via our social media platforms. These guides will also be translated and disseminated to our Spanish-Speaking Community. 7. A business community engagement plan will provide information on steps they can take to mitigate quality of life crime impacts. Information will include prevention techniques for discouraging homeless related problems around their business. By educating business owners on trespassing laws the police department can act as their agent when their businesses are closed. Once a business installs appropriate signage in compliance with the law, the business can sign authorization forms giving the police department authority to enforce trespassing violations without the need for a citizen’s arrest. Essentially, an officer can make an arrest for trespassing without the business owner or employee present. 8. Enforce laws preventing camping in City parks. 9. Continue locking public restrooms in all City parks from 10:00 pm (park closing time) until dawn. 10. Continue to enforce alcohol violations in City parks. 11. Proactively support and enforce laws related to shopping cart abatement. 12. Continue enforcement of Gilroy Municipal Code (GMC) 15.67 (no parking for more than 72 hours) and GMC 15.62 (no parking of oversized vehicles) to address recreational vehicles and trailers on public property. Gilroy Public Works Department Supported by funding authorized by Council, the Public Works Department will deploy a 2 person truck in coordination with the Police Departments quality of life enforcement team a minimum of once per week for 5 hour time periods. This team will support the quality of life crimes enforcement and provide cleanup services and transportation of materials collected as a result of enforcement efforts. Gilroy Fire Department Homelessness comes from a variety of causes. Recognizing that mental health instability and inebriation are two of the causes for 911 to be called for homeless individuals, the Fire Department joined with the State of California Emergency Medical Services Agency and the Santa Clara County Emergency Services Agency to embark on a pilot program to see if we could steer certain patients away from emergency rooms and into an alternative destination that would better serve them. Fire Department paramedics were each given 50 hours of specializ ed behavioral health training to be able to properly evaluate if a patient was qualified to be transported to an alternative destination or sobering center. Although the pilot program is slated to run through the end of 2018 the initial findings are indicating the program is succeeding. City of Gilroy Attorney The City Attorney is responsible for prosecuting all Gilroy Municipal Code violations. Most of these violations are quality o f life crimes. All quality of life crimes are scheduled to appear in superior court on the same day. Supportive services are coordinated and scheduled to be at the court house on these dates to offer services to these defendants. The City Attorney typically dismisses Municipal Code vi olations if the defendant agrees to seek services from these providers. Some individuals are repeat offenders and this option has proved to be ineffective. The City Council appropriated additional funding for the City Attorney to prosecute these repeat offenders rather than continuing to dismiss 10.A.b Packet Pg. 217 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Activities by Agency 2 | P a g e these cases. This is a pilot program and will be monitored to ensure the cost versus benefit is appropriate. County of Santa Clara Behavioral Health Department The Behavioral Health Department will be deploying 2 Mental Health Crisis Response Teams consisting of 2 mental health clinic ians on each team serving Morgan Hill, San Martin and Gilroy. The teams will provide support 7 days a week from 11:00 am to midnight. These teams will be assigned to an office in Gilroy and will respond with the Police to evaluate mental health cases. There are a number of mental health cases involving homeless individuals. These clinicians will have the ability to re-direct these mental health patients, when appropriate, from the emergency psychiatric department to other mental health services in the County to include longer term direct care and supportive services. The goal is to stabilize patients, provide support and increase the likelihood they will successfully manage their mental health issues. County of Santa Clara Office of Supportive Housing Cold Weather Shelter - The Office of Supportive Housing funds the cold weather shelter run by Home First at the Gilroy Armory. The shelter is not open year round, and has an operational period from November through April 15th. The hours of operation are 6:00 pm until 6:00 am during the operating season. The Gilroy Armory Cold Weather Shelter was previously a drop in service. Anyone who came to the Armory could request a bed for the evening. This process has been changed to a referral basis. Once a referral has been made and accepted that person has a re served bed every night for the period of time needed. The only way to get a bed at the Armory under the current system is to have a referral from one of the participating agencies. Participating agencies capable of providing referrals include:  St. Joseph’s Family Center  Community Solutions  Gilroy Compassion Center  City of Gilroy Housing Department  Gilroy Police Department  City of Morgan Hill Housing Department  Saint Louise Hospital Social Service Department  Sourcewise – A County Wide Non-Profit Group  Lifted Spirits – A Women’s Support Group Although the majority of the agencies providing referrals are local to Gilroy, there are circumstances where clients are referred to the Gilroy cold weather shelter. For example, social workers from Valley Medical Center who needed shelter options for patients leaving the hospital and in a few circumstances when the cold weather shelter in Sunnyvale was at capacity. There is a process by which persons arriving at the cold weather shelter can apply for a referral with Home First and be approved. County of Santa Clara Coordinated Assessment for Supportive Housing Coordinated assessment is a consistent, community-wide intake process to match people experiencing homelessness to existing community resources that are best fit for their situation. Santa Clara County has been using coordinated assessment for permanent supportive housing and rapid rehousing programs. They have expanded coordinated assessment to shelter and transitional housing programs as well. In Santa Clara County’s coordinated assessment system, all homeless people complete a standard assessment tool (the Vulnerability Index- Service Prioritization Decision Assessment Tool or VI-SPDAT) that considers the household’s situation and identifies the best type of housing intervention to address their situation. A community queue of eligible households is generated from the standard assessment. The community queue is used to fill spaces in the permanent housing programs, including permanent supportive housing and rapid rehousing, in the County. This coordinated process reduces the need for people to traverse the county seeking assistance at every service provider 10.A.b Packet Pg. 218 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Activities by Agency 3 | P a g e separately. County of Santa Clara Measure A Funding In November 2016, Santa Clara County voters approved Measure A – the $950 million affordable housing bond. The housing bond provides the County with an opportunity to partner with cities, residents, and the affordable and supportive housing community to addr ess the housing needs of the poorest and most vulnerable residents. It will provide affordable housing for vulnerable populations including veterans, seniors, the disabled, low and moderate income individuals or families, foster youth, victims of abuse, the homeless and individuals suffering from mental health or substance abuse illnesses. The bond proceeds should contribute to the creation and/or preservation of approximately 5,100 affordable housing units in the County. The Housing Bond will enhance the County’s ability to achieve its housing priorities which include:  Increasing the scope and breadth of supportive housing for special needs populations, including homeless and chronically homeless persons;  Increasing the supply of housing that is affordable to extremely low income (ELI) households; and,  Improving coordination and collaboration among the County, the cities, other governmental agencies, and the affordable housing community. County of Santa Clara Re- Entry Center In 2011 Assembly Bill 109 was passed to reduce overcrowding in California prisons. This bill was commonly referred to as “Realignment” because it shifted the burden for incarcerating and supervising lower level, non-violent offenders from the State to the Counties. The re-entry center program provides post release re-entry services with the goal of reducing recidivism. The Counties strategy was to create a collaborative Adult re-entry network so their clients would have streamlined access to a network of resources. The first re-entry services center was opened in 2012. The County published a report on the re-entry services program in 2017 providing data for a 5 year period. The data provided in the report supports that re-entry services has had a positive effect on recidivism. For example, felons eligible for the AB 109 programs saw a reduction in recidivism from 56% in 2010 to 45% in 2016. The Gilroy re-entry center recently moved from the San Martin County Government Center to Murray Avenue in March 2018. Support Services provided by our re-entry center include:  Employment referrals  Faith-based services  Probation support  Mental health assessments  Substance abuse assessments  Healthcare services  Record expungement assistance Santa Clara Valley Water District The Santa Clara Valley Water District provides creek clean up services 1-2 times per month. These clean ups are done in partnership with the Police Department. The Police Department takes care of the legal notice postings in compliance with the law. The Police also provide security and enforcement when necessary during the actual clean up events. Compassion Center The Compassion Center provides homeless services to include essentials, clothing, and snacks. They also coordinate mobile shower, medical and dental services. They run a camping program where homeless individuals are provided a camping space to stay as an alternative to living on the street. Services offered through the Compassion Center include: 1. Day Center 10.A.b Packet Pg. 219 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Activities by Agency 4 | P a g e  Drop in center with basic needs including food, clothing, bathrooms, personal hygiene supplies.  Weekly shower and laundry van service  Weekly medical van  Women’s support group  Case management 2. Almost Home Camping Program  Safe and legal campsites with showers  Food  Transportation  Case Management 3. Project Homeless Connect  Biannual event that includes multiple service providers from around the County  Includes hot meals, clothing distribution and haircuts 4. Saturday Suppers  Weekly potluck on Saturday afternoons 5. Winter Shelter Support  Provide transportation from the Cold Weather Shelter to the Compassion Center for day service and case management assistance Saint Joseph’s Center Saint Joseph’s Center provides meals, clothing, and essentials. They also manage various transitional housing programs to include:  Homeless Prevention/Housing Specialist - Helping families/individuals maintain their current housing, those at-risk of homelessness due to unforeseen circumstances, such as loss of employment or illness. Emergency financial aid is provided to alleviate the acute crisis, not a chronic need. A Housing specialist (starting in July 2018) will assist clients with applications, financial literacy, credit repair, and interface with landlords and property owners in an attempt to help family’s secure safe, clean a ffordable housing.  Ochoa Winter Shelter - A short-term shelter for up to 35 homeless families. This program utilizes the vacant units at the Ochoa Migrant Center during the off-season (December – March.) Supported and funded through the Office of Supportive Housing. Case management, workshops, childcare, youth recreation and other services are offered during the program.  Gilroy Armory Referrals and Case Management - During the recently expanded winter season (November – April), SJFC coordinates community partners to provide the referrals for access in the Gilroy Armory’s short term winter shelter (predominantly individuals). The referral process is focused on identifying South County’s homeless, who are the priority clients for the Gilroy Armory. SJFC helps identify a percentage of the individuals for case management and other, more intensive services.  Gilroy Place- A permanent housing program that serves 12 chronically homeless individuals with disabling conditions. This “housing first” model provides permanent housing, case management, employment support and counseling services to help stabilize the lives of those who have been living on the streets for years. Referrals to openings in Gilroy Place come through the County of Santa Clara’s Coordinated Assessment, with an emphasis to identify those from South County.  Our New Place - A permanent housing program for 11 families coming from a situation of domestic violence. This “housing first” model provides permanent housing, intensive case management, employment support and counseling services to help stabilize the lives of those who have been victims of domestic violence and move them towards better health, self-sufficiency and overall well- being. Referrals to openings in Our New Place come through the County of Santa Clara’s Coordinated Assessment, with an 10.A.b Packet Pg. 220 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Activities by Agency 5 | P a g e emphasis to identify those from South County.  Sobrato Family Apartments - Provides an on-site case manager who works closely with the families living at the Sobrato Family Apartments, a development run by Eden Housing. The program is now under a permanent housing banner, not transitional; serves up to 60 families.  Gilroy Street Team - The Gilroy Street Team empowers homeless, and formerly homeless, individuals to assist with beautification projects around the city. Participation is rewarded with small stipends, and access to our employment services. The participants receive soft-skills training and coaching to better prepare them for employment opportunities. Faith Based Community Faith Based Organizations (FBOs) have historically been an invaluable resource for the homeless. Besides meeting spiritual needs, they are often able to provide essential items and services too. The City of Gilroy has partnerships with faith and inter-faith based coalitions. These partnerships can be an instrument through which a safe parking program can be developed. Provides essentials, clothing, blankets, etc. Potentially situated to support a safe parking program in the future. 10.A.b Packet Pg. 221 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update) City of Gilroy Homeless Plan: Potential Opportunities and Strategies 6 | P a g e Short Term Intermediate Term Long Term 1. Explore a potential cost sharing agreement to provide for 1-2 full time case management services counselors through the Office of Supportive Housing focused solely on Gilroy clientele. 2. Explore implementation of a system to track oversized vehicles parked in violation of 15.62 of the Gilroy Municipal Code. The code allows such vehicles to be parked on City streets or public property up to 48 hours for certain authorized activities, but only one 48 hour exception is allowed per 14 day period of time. Currently there is no mechanism to track the 14 day intervals. 1. Create a homeless community response team. A team of individuals supported through community based organizations with the ability to respond to homeless type calls for service. Whenever possible they would provide support and assistance to address complaints. In other communities these team pick up the homeless individual and transport them to a center offering support services. This would reduce the need for law enforcement response and intervention. 2. Explore feasibility to apply for and be awarded a Solid Waste Cleanup grant through Explore a safe parking program with support from community based organizations, the faith based community and volunteers. 3. California Recycle Illegal Disposal Site Abatement Grant Program. 4. Provide a restroom solution that is available 24 hours a day. 1. Explore funding opportunities to keep the Compassion Center open from 6:00 am through 6:00 pm in coordination with the cold weather shelter hours. 2. Hire a City of Gilroy Housing Specialist tasked with coordinating all available homeless services to include transitional housing, extremely low income housing, potential camping sites, and safe parking programs. 3. Provide a space homeless people could legally stay. For example, explore possible locations to develop a free camping program. Provide restrooms, garbage service, lighting, fencing, etc. 4. Explore and evaluate the Tiny Homes Village concept. Initial plans provide for tiny homes, bunkhouse accommodations for homeless and safe parking areas. 10.A.b Packet Pg. 222 Attachment: Homeless Plan - 6-2018 (2025 : Quality of Life and Homelessness Plan Update)