HomeMy WebLinkAbout2021-11-01 City Council Regular Meeting Agenda Packet
October 28, 2021 1:20 PM City Council Regular Meeting Agenda Page1 MAYOR
Marie Blankley
COUNCIL MEMBERS
Rebeca Armendariz
Dion Bracco
Zach Hilton
Peter Leroe-Muñoz
Carol Marques
Fred Tovar
CITY COUNCIL
AGENDA
CITY OF GILROY
CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET
GILROY, CA 95020
REGULAR MEETING 6:00 P.M.
MONDAY, NOVEMBER 1, 2021
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
Due to COVID-19, it is possible that the planned in-person meeting may have to change to a virtual
meeting at any time and possibly on short notice. Please check the City of Gilroy website at
http://gilroyca.iqm2.com/Citizens/default.aspx for any updates to meeting information.
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 minimum
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. The amount of time allowed per speaker may va ry
at the Mayor’s discretion depending on the number of speakers and length of the agenda.
Written comments on any agenda item may be emailed to the City Clerk’s Office at
cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna
Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a
Council meeting will be distributed to the City Council prior to or at the meeting and availa ble for
public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351
Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the
meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as
soon as practicable.
In compliance with the Americans with Disabilities Act, and Governors Order N -29-20, 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.
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 an y 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
City Council Regular Meeting Agenda
11/1/2021 Page2 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City
on the advice of its legal counsel, based on existing facts and circumstances, there is a
significant exposure to litigation against the City.
Materials related to an item on this agenda submitted to the City Council after distribution of the
agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org
subject to Staff’s ability to post the documents before the meeting.
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE
Government's duty is to serve the public, reaching its decisions in full view of the public.
Commissions, task forces, councils and other agencies of the City exist to conduct the
people's business. This ordinance assures that deliberations are conducted before the
people and that City operations are open to the people's review.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN
GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE
OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN
GOVERNMENT COMMISSION STAFF AT (408) 846-0204
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. Board and Commission Interviews
1. Interviews for Open Seats on Boards, Commissions and Committees
Vacant as of September 2021 for Future Appointment on November 15,
2021
1. Staff Report: LeeAnn McPhillips, Administrative Services/HR Director/Risk
Manager
2. Public Comment
3. Possible Action:
Interview candidates for open seats on Boards, Commissions and
Committees vacant as of September 2021.
D. Employee Introductions
II. CEREMONIAL ITEMS
A. Proclamations, Awards, and Presentations
III. PRESENTATIONS TO THE COUNCIL
City Council Regular Meeting Agenda
11/1/2021 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 within the Gilroy City Council’s jurisdiction but not on the agenda. Persons
wishing to address the Council are requested to complete a Speaker’s Card located at the
entrances and handed to the City Clerk. Speakers are limited to 1 minute each. The
amount of time allowed per speaker may vary at the Mayor’s discretion depending on the
number of speakers and length of the agenda. The law does not permit Council action or
extended discussion of any item not on the agenda except under special circumstances. If
Council action is requested, the Council may place the matter on a future agenda.
Written comments to address the Council on matters not on this agenda may be e -mailed
to the City Clerk’s Office at cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s
Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City
Clerk’s Office by 1:00pm on the day of a Council meeting will be distributed to the City
Council prior to or at the meeting and available for public inspection with the agenda
packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the
meeting. Any correspondence received will be incorporated into the meeting record. Items
received after the 1:00pm deadline will be provided to the City Council as soon as
practicable. Written material provided by public members under this section of the agenda
will be limited to 10 pages in hard copy. An unlimited amount of material may be provided
electronically.
City Council Regular Meeting Agenda
11/1/2021 Page4 IV. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Gilroy Sister Cities Association (alternate), Santa Clara Co.
Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South
County Regional Wastewater Authority Board, South County Youth Task Force Policy
Team, Street Naming Committee, URM Task Force Sub-committee
Council Member Armendariz – ABAG (Alternate), CalTrain Policy Group, Gilroy
Downtown Business Association Board (alternate), Historic Heritage Committee, Santa
Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy
Authority JPA Board (Alternate), Street Naming Committee, VTA Committee for Transit
Accessibility (Alternate)
Council Member Marques - Gilroy Downtown Business Association Board, Gilroy
Gardens Board of Directors, Historic Heritage Committee (Alternate), Santa Clara
Valley Habitat Agency Governing Board (alternate), Santa Clara Valley Habitat Agency
Implementation Board (alternate), South County Regional Wastewater Authority
(Alternate), URM Task Force Sub-Committee
Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley
Clean Energy Authority JPA Board, South County United for Health, Visit Gilroy
California Welcome Center Board
Council Member Tovar – Economic Development Corporation Board, Recycling and
Waste Reduction Commission, Santa Clara Co. Expressway Plan 2040 Policy Advisory
Board, Recycling and Waste Reduction Commission, Santa Clara Co. Library JPA
(alternate), SCVWD Water Commission (alternate), South County Regional Wastewater
Authority Board, Street Naming Committee, VTA Committee for Transit Accessibility
Council Member Leroe-Muñoz - ABAG, CalTrain Policy Group (alternate), Cities
Association of Santa Clara County Board of Directors (alternate), Economic
Development Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission,
Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force
Policy Team (alternate), VTA Mobility Partnership, VTA South County City Group, VTA
Policy Advisory Committee
Mayor Blankley - Cities Association of Santa Clara Co. Board of Directors, Gilroy
Economic Development Partnership, Gilroy Sister Cities Association, Gilroy Youth Task
Force (alternate), Santa Clara Valley Habitat Agency Governing Board, SCVWD Joint
Council-SCRWA-Board Water Resources Committee, South County Regional
Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility
Partnership, VTA Policy Advisory Committee, VTA South County City Group
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 t he 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
11/1/2021 Page5 A. Tech Electric 2nd Amendment Approval and Ratification
B. Adoption of a Resolution of the City Council of Gilroy Approving a Fiscal
Year 2021-2022 Budget Amendment to Appropriate Funding from the
Federal Asset Seizure Fund for the Gilroy Police Department
C. City Council Appointment Thai Pham to the Position of City Clerk
D. Open Annual Recruitment to Fill Vacancies on Various City Boards &
Commissions
E. Accept and File Quarterly Cash and Investment Reports as of June 30, 2021
and September 30, 2021
VII. BIDS AND PROPOSALS
VIII. PUBLIC HEARINGS
IX. UNFINISHED BUSINESS
X. INTRODUCTION OF NEW BUSINESS
A. Annual Re-Adoption of City's Investment Policy and Approval of Section
115 Investment Guidelines and Contribution
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1. Adopt the City’s updated Investment Policy; and
2. Approve the City’s Investment Guidelines Document (IGD) for the Post-
Employee Benefits Trust for Pension established with PARS.
3. Authorize $242,000, realized savings from pre-payment option of the FY22
unfunded accrued liability (UAL), as contribution to the Section 115 Trust.
B. Receive Preliminary FY21 Year-End Financial Report
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
Receive preliminary Fiscal Year 2021 (FY21) Year-End Report.
C. Authorization to Hire and Implement the Quality of Life Peace Officers
Program
1. Staff Report: Bryce Atkins, Senior Management Analyst
2. Public Comment
3. Possible Action:
Council authorize the two-year Quality of Life Officers Pilot Program, and adopt a
resolution amending the adopted budgets for Fiscal Years Ending June 2022 and
2023.
D. Permanent Local Housing Allocation (PLHA) Plan Consortium Agreement
with the County of Santa Clara County
City Council Regular Meeting Agenda
11/1/2021 Page6 1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
1. Adopt a resolution approving the City of Gilroy's 5-year participation in a
County consortium to receive and allocate funds totaling $623,913 ($244,259
from 2019 and $379,654 in 2020) by the State of California from the Permanent
Local Housing Allocation (PLHA) program; and
2. Authorize the City Administrator to execute the final Santa Clara County
Consortium Agreement following an "Approved as to Form and Content"
determination by the City Attorney.
E. Gourmet Alley Ad Hoc Committee Formation
1. Staff Report: Karine Decker, Management Analyst - Economic Development
2. Public Comment
3. Possible Action:
Council approval to establish a Gourmet Alley Ad Hoc Committee and appoint up
to three Council Members to serve on the committee.
XI. CITY ADMINISTRATOR'S REPORTS
A. State Wildland Fire Support from GFD
XII. CITY ATTORNEY'S REPORTS
XIII. CLOSED SESSION
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC
Sec. 54956.8 and GCC Sec.17A.8 (a) (2) Property: Gilroy Gardens Hillside
Property (approximately 342 acres) Assessor Parcel Numbers (APNs) 810 -
19-005, 810-18-002, and a portion of 810-18-013 Negotiators: Jimmy Forbis,
City Administrator; Other Party to Negotiations; Santa Clara County Parks
and Recreation Department; Under Negotiations: Price and Terms of
Payment
1. Public Comment on Closed Session Items
2. City Attorney's Advice Regarding Entering Into Closed Session
3. Adjourn to Closed Session
ADJOURNMENT
MEETING DATES
FUTURE MEETING DATES
NOVEMBER 2021
15* Regular Meeting - 6:00 p.m.
DECEMBER 2021
6* Regular Meeting - 6:00 p.m.
13* Special Meeting - 6:00 p.m.
* meeting is webstreamed and televised
City of Gilroy
STAFF REPORT
Agenda Item Title: Interviews for Open Seats on Boards, Commissions and
Committees Vacant as of September 2021 for Future Appointment
on November 15, 2021
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Interview candidates for open seats on Boards, Commissions and Committees vacant
as of September 2021.
BACKGROUND
The City Council opened a recruitment for vacancies on various boards and
commissions with applications due on October 15, 2021.
At the close of the application period, the following applications have been received:
Board/Committee/Commission Name of Applicants # of Seats Open
Housing & Neighborhood 1. Alicia Costa 1 seat open with a
1.C.1
Packet Pg. 7
Revitalization Committee 2. Laura One
Feather
3. Jan Guffey
4. Michael
Sanchez
term ending 12/31/22
Open Government Commission 1. Kenneth
Christopher
2. Tia Enriquez
1 seat open with a
term ending 12/31/24
Physically Challenged Board of
Appeals
None 1 seat open with a
term ending 12/31/23
RECOMMENDATIONS
Staff recommends that the Council interview these applicants on November 1, 2021
with potential appointments scheduled for November 15, 2021. The applications
submitted by the above referenced applicants are attached to this report.
Applicants not selected to fill a current vacancy will be encouraged to apply for openings
that will be posted beginning November 2, 2021 as part of the annual recruitment for
Board/Committee/Commission members.
The vacancy on the Physically Challenged Board of Appeals for which there are no
applicants will be rolled into the annual recruitment process.
Attachments:
1. HNRC and OGC Applications October 2021 Redacted
1.C.1
Packet Pg. 8
1.C.1.a
Packet Pg. 9 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:50 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2502
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2502 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
Registered voter
College Graduate
Concerned Gilroy Resident
Tax Payer
To bring a voice to community members in the east side of Gilroy.
I can bring a new perspective to the committee.
1.C.1.a
Packet Pg. 10 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
1.C.1.a
Packet Pg. 11 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:48 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2528
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2528 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
I am a concerned citizen, and a recent resident of Gilroy, having moved here within the past two years. I am appalled at
seeing the un-housed here in Gilroy, as I am wherever I travel in our state. I understand that homelessness is a problem of
many factors, and also that it is not just a problem here in Gilroy, but in our whole region. I wish to contribute to our good city,
to ensure that we are doing everything we can to keep people in their homes, and to promote very low income affordable
housing in whatever future plans we have. I know that most people who are un-housed are actually members of the
community in which they are trying to live. I also understand that homelessness costs our City and region in police and fire
department costs, and in hospital emergency room visits as well.
Since we've just moved here within the past two years, I haven't served in any other capacity.
I wish to learn about how the Housing and Neighborhood Revitalization Committee works, how it can impact the quality of life
for all of the citizens of Gilroy, and how I can contribute to the work of the Committee.
I am only a concerned citizen, wishing to help make Gilroy better, and especially to improve the quality of life for all of us
Gilroyans.
1.C.1.a
Packet Pg. 12 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
1.C.1.a
Packet Pg. 13 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:52 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2416
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2416 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
I was born here in 1971. I have had the pleasure to watch the city grow throughout the years. I have been part of the
revitalization of the San Antonio community in Oakland through the East Bay Asian Youth Center. I have volunteered for
different aspects of community building for over 20 years.
Helping to create community gardens in Oakland CA, Lower Brule and Rapid City SD.
I have been a part of different community clean up programs along with advocating for affordable housing in Oakland.
I hope to help other committee members continue to develop Gilroy into a beautiful inclusive town for all of our community
members.
I truly enjoy community building and helping to make improvements where needed. I have also volunteered with in my
communities for over 20 years.
1.C.1.a
Packet Pg. 14 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
1.C.1.a
Packet Pg. 15 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:52 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2227
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2227 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
20 years construction experience, 6 years real estate experience, 12 years insurance experience, 30 plus years volunteer
experience in various local organizations and non-profit causes, business owner, I have worked with start-ups, managed
employees, performed all phases of construction from design and planning, permit and inspection process, interacting with
local building and planning departments on variances, zoning and related issues. I have performed all admin functions for
several businesses. I am a proficient communicator, problem solver and collaborative thinker. I have studied and am a
continuing student of all things leadership.
30 plus years of volunteer service; Gilroy Garlic Festival, ACS Gilroy Relay for Life, Gilroy Foundation, Dreampower
Horsemanship, Johnathan's Dreams: Fight to Cure Niemann Pick Type C, South County Youth Task Force, One Giving Tree,
RCSKids, Gilroy Rotary, and others.
I endeavor to bring leadership, an open mind, and a collaborative, solutions-based skill set to the committee. I plan to help the
committee do more of the good work they are doing, and offer my experience and perspectives in areas where improvement
or efficiencies are needed.
1. I am applying.
2. There is at least one open seat.
3. employees are hard to find these days... volunteers with experience and the right attitude even more so.
1.C.1.a
Packet Pg. 16 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
1.C.1.a
Packet Pg. 17 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:51 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2496
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2496 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
2007 BA International Relations, University of San Diego
2009 MBA Finance, University of San Francisco
2009-2021 Executive Vice President, Christopher Ranch LLC
>$250,000 in Scholarships through the Gilroy Foundation for local youth
>$$500,000 to the Gilroy Garlic Festival
Philanthropic work through St. Josephs, Community Solutions, Rebekah Children's Services
Cleared Student lunch debt at both Gilroy High and Christopher High
Partnered with the Monterey Zoo for elephant conservation
Donation of original children's story books for GUSD
Provide a voice that offers a philanthropic and education focused lens to enact good in our community.
Large Business background offers a unique and insightful focus on how to enact change for the benefit our community
Beyond having a BA and an MBA, I have 11+ years of executive experience.
1.C.1.a
Packet Pg. 18 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
1.C.1.a
Packet Pg. 19 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
10/21/21, 11:51 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2426
https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2426 2/2
List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee?
Why are you the most qualified to serve on this Board/Commission/Committee?
I am a natural born advocate. I have a keen sense of systemic approaches. I have a broad sense of knowledge in a variety of
governmental agencies. I have strong leadership ability. I am driven by a passion to contribute to the community and finding a
place that allows me to be apart of improving information quality as well as being a voice for others in the community.
I have not had any prior appointments. I have serviced the community in personal projects such as: feeding the homeless
during the holidays, volunteered to cater events for local police associations, volunteered at my children's school's,
volunteered at nursing homes, wrote to soldiers away on active duty, put together care packages, assisted with fundraising,
and various other projects for the community.
My goal while serving on this board/commission/committee is to ensure effective public oversight, upholding the highest level
of integrity. Making connections with other actively involved members of the community. Honorable proving to be a strong
asset to the community as a whole, and gaining the experience that will qualify me for future service positions.
I am the most qualified to serve on this board because I am passion driven to expand my horizons, integrate with the larger
community, and am determined to influence local government and policies, connect with others who have a similar
appreciation for directly impacting positive changes in the community. I am a fearless, stand up woman who is has a burning
desire to find outside the box approaches that still cater to customarily "systemic approaches" but that will balance equality as
a whole in our community. Gilroy is definitely in need of some new faces and I will put my best foot forward every step of the
way.
1.C.1.a
Packet Pg. 20 Attachment: HNRC and OGC Applications October 2021 Redacted (3528 : Board & Commission Interviews)
City of Gilroy
STAFF REPORT
Agenda Item Title: Tech Electric 2nd Amendment Approval and Ratification
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Fire Department
Submitted By: Jim Wyatt
Prepared By: Jennifer Fortino
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
Maintain and Improve
City Infrastructure
RECOMMENDATION
Ratify the second amendment to the agreement with Tech Electric for the Phoenix G2
Station Alerting project, for a not to exceed amount of $17,850.
EXECUTIVE SUMMARY
The Phoenix G2 Station Alerting project was initiated on March 15, 2021 and the cost of
the project was adopted in the FY21 budget.
US Digital Designs (USDD) manufactures the G2 Station Alerting System; however,
they do not install the station alerting equipment. Instead, they certify electrical
contractors throughout the country to install the station alerting equipment on behalf of
USDD. Only Phoenix G2 certified electricians are authorized to install the equipment
that USDD manufactures.
6.A
Packet Pg. 21
Tech Electric is the sole local electrical contractor that is certified by USDD to install
Phoenix G2 Station Alerting equipment.
BACKGROUND
The original agreement with Tech Electric was signed pursuant to City Administrator
authority for a not to exceed amount of $83,971. A first amendment was approved to
extend the term of the contract. During the installation of the project’s equipment, it was
determined that additional work would be required to install a safety shut-off system at
each station to successfully complete the project. The cost of the additional work is
$17,850. Combined with the original agreement, the total cost of this agreement now
exceeds $100,000 and requires City Council approval.
Due to the emergency nature of this project, it was critical to issue an immediate change
order to proceed with the additional work so that the contractor could complete the
project on time without impacting public safety. Halting the project to wait until the next
Council meeting to seek Council approval, would have had a negative impact to the
City’s public safety operations.
Emergency authorization was obtained from the City Administrator, and staff is
subsequently bringing the second amendment to the agreement for Council approval
and ratification pursuant to the City’s purchasing policy.
ANALYSIS
The current station alerting system includes an automatic oven and stove safety shut-off
at each of Gilroy’s three fire stations. When an emergency call for service is received,
the fire stations are “rung down”, or dispatched, by 911 dispatchers. When a station is
“rung down” by 911 dispatchers, the stations safety shut-off system turns off the ovens
and stoves at the responding station(s). Emergency calls for service are often received
during times when the responding crews are preparing their meals. The shut-off feature
prevents food from continuing to cook in the oven or on the stove while the crew is
responding to the emergency. Emergency responses can last for several hours, and
without this feature, a fire can occur at the stations from food accidently being left on the
stove or in the oven while the crews are preparing to respond to the emergency.
It was discovered during the installation of the Phoenix G2 Station Alerting equipment
that the existing automatic safety shut-off for the ovens and stoves cannot be connected
to the Phoenix G2 Station Alerting system. As a result, we need to replace the current
shut-off system with a shut-off system that is compatible with the Phoenix G2 Station
Alerting System. We cannot go live with the new station alerting system until we have
the new automatic shut-off system installed at all three Gilroy fire stations.
ALTERNATIVES
The additional work was approved by the City Administrator on an emergency basis
pursuant to the City’s purchasing policy.
6.A
Packet Pg. 22
FISCAL IMPACT/FUNDING SOURCE
The additional cost of this amendment will be absorbed in the current budget.
NEXT STEPS
1. The additional electrical work by Tech Electric will be completed in 1.5 weeks.
2. The remaining project tasks will be finalized by USDD.
3. The station alerting system will go live within 4-6 weeks.
PUBLIC OUTREACH
None.
6.A
Packet Pg. 23
City of Gilroy
STAFF REPORT
Agenda Item Title: Adoption of a Resolution of the City Council of Gilroy Approving a
Fiscal Year 2021-2022 Budget Amendment to Appropriate Funding
from the Federal Asset Seizure Fund for the Gilroy Police
Department
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Police Department
Submitted By: Pedro Espinoza
Prepared By: Patricia Vigil
Patricia Vigil
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy approving a Fiscal Year 2021-
2022 budget amendment for $20,000 in the Federal Asset Seizure Fund, Fund 239, to
purchase the CordicoShield employee wellness and resiliency program.
EXECUTIVE SUMMARY
The City of Gilroy Police Department has been a participant in the Department of
Justice Asset Forfeiture and Equitable Sharing Program (Program). The purpose of the
Program is to remove the tools of crime from criminal organizations, deprive
6.B
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wrongdoers of the proceeds of their crimes, recover property that may be used to
compensate victims, and deter crimes.
The Asset Seizure Fund, Fund 239, has a fund balance of $223,000. The Police
Department is requesting a budget amendment of $20,000 to the FY22 operating
budget to expend funds in support of law enforcement equipment and operations.
BACKGROUND
The Police Department assigned an officer to the Drug Enforcement Agency (DEA) task
force, a regional task force of the Department of Justice from 2012 to 2019. The
mission of the DEA is enforcing the controlled substances laws and regulations of the
United States. In carrying out that mission, the DEA partners with local law enforcement
agencies to assign a police officer to the task force to contribute their talents and
knowledge of the local community, drug crime trends, businesses, and geography. A
benefit of participating in the Program is the potential to share in federal forfeiture
proceeds through the equitable sharing program.
Due to retirements and overall staff attrition, a Gilroy Police Department representative
has not been assigned to the task force since 2019. However, the fund has
accumulated over $223,000 through participation in past investigations which resulted in
federal forfeitures.
ANALYSIS
Equitable sharing funds received from federal forfeitures can be expended on various
law enforcement operations, programs, and equipment, including law enforcement
software, education, and awareness programs.
In 2015, the President’s Task Force on 21st Century Policing was created to identify
best practices and offer recommendations on how policing practices could promote
effective crime reductions while building public trust. One of the six recommendations,
pillar six which is officer wellness and safety, emphasizes the support and
implementation of officer wellness and safety as a multi-partner effort. In line with the
President’s Task Force recommendations, the Police Department’s workplan includes
the implementation of an employee wellness and resiliency program. “CordicoShield” is
a customizable and confidential wellness application designed specifically for first
responders that provides best practices for protecting the mind and body following a
critical incident. Often, first responders such as police officers and public safety
communicators experience traumatic incidents at a rate higher than other members of
the public. This critical tool will afford the opportunity to utilize the available resources
confidentially, without time constraints, and ultimately aid in our goal to maintain a
healthy workforce.
To expend funds in FY22, it is necessary to amend the operations budget to include
appropriations for Fund 239, the Asset Seizure Fund. The FY22 proposed budget
amendments are as follows:
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Asset Seizure Fund
Org Code – 2253000
Object Codes – 51630 and 52110
Object Code Title Amount
51630 Contractual Services $15,000
52110 Supplies $5,000
TOTAL $20,000
By authorizing the use of the Asset Seizure Fund, this saves the cost from purchasing
this program using the General Fund.
ALTERNATIVES
1. Adopt a resolution approving the proposed amendment to Fund 239, allowing
for the expenditure of funds to procure CordicoShield for employee wellness
and resiliency. STAFF RECOMMENDS THIS OPTION.
2. Reject the proposed amendment to Fund 239. STAFF DOES NOT
RECOMMEND THIS OPTION. The rejection of this amendment removes the
Asset Seizure funds as an option to pay for this beneficial program.
FISCAL IMPACT/FUNDING SOURCE
$20,000 from the Federal Asset Seizure Fund.
Attachments:
1. Fund 239 Resolution FY22
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RESOLUTION NO. 2021-XX
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY
OF GILROY FOR FISCAL YEAR 2021-2022 IN THE
FEDERAL ASSET SEIZURE FUND AND
APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully
examined, considered and adopted the same on June 7, 2021; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to said budget for Fiscal Year 2021-2022 for the City of Gilroy in the staff report
dated November 1, 2021 for the Federal Asset Seizure Fund; and
WHEREAS, the City Council has carefully examined and considered the same and is
satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT appropriations in the Federal Asset
Seizure Fund, fund 239, is hereby increased by $20,000 for Fiscal Year 2021-2022.
PASSED AND ADOPTED this 1st day of November 2021 by the following roll call
vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
___________________________
ATTEST: Marie Blankley, Mayor
_________________________
LeeAnn McPhillips, Interim City Clerk
6.B.a
Packet Pg. 27 Attachment: Fund 239 Resolution FY22 (3507 : $20,000 Budget Amendment, Fund 239)
City of Gilroy
STAFF REPORT
Agenda Item Title: City Council Appointment Thai Pham to the Position of City Clerk
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Human Resources Department
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Appoint Thai Pham to the position of City Clerk.
BACKGROUND
Over the last few months, staff, working with the Council Sub-Committee (Blankley,
Hilton, and Leroe-Munoz) have completed the recruitment process for the position of
City Clerk. The recruitment schedule has been as follows:
Timeline Step
By August 6, 2021 Post position for applications and advertise
with City Clerk professional organizations
September 17, 2021 Closing date for applications
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By September 20, 2021 Complete initial screening of applications
September 21, 2021 Sub-Committee review of applications and
recommendations
October 4, 2021 First round interviews with subject matter
expert panel and Senior Executive Team
panel
October 15, 2021 Top candidate interview with Council Sub-
Committee
October 18, 221 Finalist interview with full Council
By October 26, 2021 Background check of finalist
October 27 – 31, 2021 Conditional Offer and final pre-hire steps
November 1, 2021 Council Appointment
By November 5, 2021 Final Offer
December 1, 2021 Start Date
Mr. Pham has many years of local government experience with the majority of his time
spent supporting the City Clerk’s Office function. Mr. Pham holds a Bachelor’s degree in
Political Science and Government from University of California, Irvine. He is also a
Certified Municipal Clerk and a Licensed Notary of the State of California. Mr. Pham is
currently serving as a Deputy City Clerk for the City of Emeryville, CA where he has
worked for over three years. He has also worked for the California cities of Westminster,
Cerritos, and Rancho Cucamonga. Mr. Pham is excited to continue his local
government career and serve as Gilroy’s next City Clerk.
RECOMMENDATION
At this time, based on the outcome of the above process, it is recommended that Thai
Pham be appointed to the position of City Clerk.
NEXT STEPS
As of the writing of this report, Mr. Pham has been issued a conditional job offer and is
completing the final pre-hire steps. Provided all final steps are successfully completed
and Council appoints Mr. Pham to the position on November 1st, a final job offer will be
issued by no later than November 5, 2021. Staff is planning for a potential start date of
December 1, 2021.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Open Annual Recruitment to Fill Vacancies on Various City Boards
& Commissions
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Open the annual recruitment process for vacant seats on City of Gilroy Boards &
Commissions.
BACKGROUND
There are seven Boards/Commissions/Committees with full term seats that will be
vacant as of December 31, 2021. Annually, the City Council opens a city-wide
recruitment to solicit applications to fill upcoming vacancies.
• Arts & Culture Commission – 3 seats
• Historic Heritage Committee – 2 seats (two-year terms)
• Library Commission – 1 seat
• Parks & Recreation Commission – 2 seats
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• Personnel Commission – 2 seats
• Physically Challenged Board of Appeals – 1 seat
• Planning Commission – 2 seats
In addition, we still have an existing vacancy on the Physically Challenged Board of
Appeals (term ending 12/31/23) for which no applications have been submitted as of the
writing of this report. Therefore, there are a total of 2 openings to fill on this Board. In
addition, recently, an additional seat on the Arts & Culture Commission became vacant
due to Commissioner absences. Therefore, Arts & Culture has a 4th opening to fill with a
term ending 12/31/24. These additional vacancies have been added to the attached
recruitment flyer.
Included is a recruitment flyer with a full listing of these pending vacancies, including the
functions and meeting schedules of each of these policy bodies.
CONCLUSION
Staff recommends opening a seven-week recruitment period from November 2, 2021
through December 17, 2021, to compile applications for these pending vacancies.
Interviews with all applicants are scheduled for the January 3, 2021 regular meeting,
and appointments will take place at the January 24, 2021 regular meeting.
PUBLIC OUTREACH
A thorough public outreach campaign to fill these pending vacancies is planned wit h
flyers being distributed through social media, electronic newsletters and the City website
as well as to all partner organizations of the City.
Attachments:
1. 2022 Annual Recruitment Flyer
6.D
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AArrttss && CCuullttuurree CCoommmmiissssiioonn –– 44 sseeaattss
HHiissttoorriicc HHeerriittaaggee CCoommmmiitttteeee –– 22 sseeaattss
LLiibbrraarryy CCoommmmiissssiioonn –– 11 sseeaatt
PPaarrkkss && RReeccrreeaattiioonn CCoommmmiissssiioonn –– 22 sseeaattss
PPeerrssoonnnneell CCoommmmiissssiioonn –– 22 sseeaattss
PPhhyyssiiccaallllyy CChhaalllleennggeedd BBooaarrdd ooff AAppppeeaallss –– 22 sseeaattss
PPllaannnniinngg CCoommmmiissssiioonn –– 22 sseeaattss
BBooaarrdd aanndd CCoommmmiissssiioonn OOppeenn SSeeaattss
AAPPPPLLYY NNOOWW ffoorr 22002222 OOppeenniinnggss!!
Apply online at – https://www.cityofgilroy.org/FormCenter/City-Clerk-4/City-of-Gilroy-Application-for-
Board-Com-85
City Council will interview applicants the evening of Monday, January 3, 2022 during the City Council
Meeting. Applicants will be provided meeting details following the close of the recruitment period.
Applications can be submitted online or emailed to cityclerk@cityofgilroy.org and must be received by Friday,
December 17, 2021 at 5:00 p.m.
The City Council will make appointment decisions the evening of Monday, January 24, 2021.
Please call (408) 846-0204 with questions.
6.D.a
Packet Pg. 32 Attachment: 2022 Annual Recruitment Flyer (3523 : Annual Board & Commission Recruitment Process)
AArrttss && CCuullttuurree CCoommmmiissssiioonn –– 44 sseeaattss ((33 tteerrmmss eennddiinngg
1122//3311//22002255 aanndd 11 tteerrmm eennddiinngg 1122//3311//2244))
This seven (7) member body advises Recreation Staff and the City Council on matters pertaining to cultural
and artistic activities to encourage, promote and stimulate the growth of broad -based arts in the
community, and meets the 2nd Tuesday of each month at 5:30 p.m.
HHiissttoorriicc HHeerriittaaggee CCoommmmiitttteeee –– 22 sseeaattss ((22 tteerrmmss eennddiinngg
1122//3311//2233))
This five (5) member body acts as an advisory board to the City Council and Planning Commission on issues
relating to the identification, protection, retention and preservation of historic sites and neighborhoods of
the City, and meets the 3rd Wednesday of each month at 5:30 p.m.
LLiibbrraarryy CCoommmmiissssiioonn –– 11 sseeaatt ((tteerrmm eennddiinngg 1122//3311//22002255))
Comprised of five (5) members, this Commission serves as an advisory and liaison body to the City Council,
staff and the City Librarian on matters concerning the Library, and meets the 2nd Wednesday of the month
at 7:00 p.m.
PPaarrkkss && RReeccrreeaattiioonn CCoommmmiissssiioonn –– 22 sseeaattss ((tteerrmmss eennddiinngg
1122//3311//2255))
This seven (7) member body advises the City Council, the Planning Commission and staff on matters
pertaining to public parks, urban forestry and recreation in the advancement of park and recreation
planning and programming. Meetings are held the 3rd Tuesday of each month at 6:00 p.m.
PPeerrssoonnnneell CCoommmmiissssiioonn –– 22 sseeaattss ((tteerrmmss eennddiinngg 1122//3311//22002255))
The Personnel Commission is a five (5) member body that advises on and reviews job descriptions and
classification recommendations for job positions, and serves as a neutral body to hear appeals of
disciplinary matters. Regular meetings are held the 2nd Monday of each month at 5:30 p.m.
PPhhyyssiiccaallllyy CChhaalllleennggeedd BBooaarrdd ooff AAppppeeaallss –– 22 sseeaattss ((11 tteerrmm eennddiinngg
1122//3311//22002255 aanndd 11 tteerrmm eennddiinngg 1122//3311//2233))
Comprised of five (5) members, this body conducts hearings regarding enforcement of public
accommodations for the physically challenged, and discusses items of interest to the physically challenged.
Meetings are held at 10:00 a.m. on the 2nd Tuesday of the months of January/April/July/October.
PPllaannnniinngg CCoommmmiissssiioonn –– 22 sseeaattss ((tteerrmmss eennddiinngg 1122//3311//22002255))
This seven (7) member body acts as an advisory body to the Council in the review of planning applications
for land use entitlements including subdivisions, planned unit developments, zone changes, conditional
use permits and variances, and participates in comprehensive planning studies. Meetings are held the 1st
Thursday of each month at 6:30 p.m.
GGEETT IINNVVOOLLVVEEDD!!
SSHHAARREE YYOOUURR IIDDEEAASS AANNDD KKNNOOWWLLEEDDGGEE!!
SSUUPPPPOORRTT YYOOUURR CCOOMMMMUUNNIITTYY!!
AAPPPPLLYY NNOOWW!!
6.D.a
Packet Pg. 33 Attachment: 2022 Annual Recruitment Flyer (3523 : Annual Board & Commission Recruitment Process)
City of Gilroy
STAFF REPORT
Agenda Item Title: Accept and File Quarterly Cash and Investment Reports as of June
30, 2021 and September 30, 2021
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Strategic Plan Goals
Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Accept and file the quarterly cash and investment reports as of June 30, 2021 and
September 30, 2021.
EXECUTIVE SUMMARY
Council is requested to accept and file the quarterly investment reports as of June 30,
2021 and September 30, 2021.
BACKGROUND
The quarterly investment reports are prepared pursuant to the City’s investment policy
to keep the City Council apprised of City’s investment activities.
ANALYSIS
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At June 30, 2021 – the City’s cash and investments totaled $150 million, of which
$149.2 million was invested in the Local Agency Investment Fund (LAIF). For the fiscal
year 2021, the interest earnings were $710,693. In addition, approximately $58.3 million
was held by Fiscal Agents in the Trustee capacity for various bond issues as bond
proceeds, debt service reserves, or bond payments. Majority of the balance ($50
million) consists of Acquisition and Construction Funds for the SCRWA Plant Expansion
Project.
At September 30, 2021 – The City’s cash and investments totaled $140.7 million, of
which $138.4 million is invested with the LAIF. The fiscal year-to-date earnings are
$84,260. In addition, approximately $58.2 million is held by Fiscal Agents in the Trustee
capacity for various bond issues as bond proceeds, debt service reserves, or bond
payments. Majority of the balance ($50 million) consists of Acquisition and Construction
Funds for the SCRWA Plant Expansion Project.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing cash and investment reports.
This is an activity included in Finance Department’s annual workplan.
Attachments:
1. Cash and Investment Report as of June 30, 2021
2. Cash and Investment Report as of September 30, 2021
6.E
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6.E.a
Packet Pg. 36 Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30, 2021)
6.E.a
Packet Pg. 37 Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30, 2021)
6.E.aPacket Pg. 38Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 39Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 40Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 41Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 42Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 43Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 44Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.aPacket Pg. 45Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of
6.E.a
Packet Pg. 46 Attachment: Cash and Investment Report as of June 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30, 2021)
6.E.b
Packet Pg. 47 Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30,
6.E.b
Packet Pg. 48 Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30,
6.E.bPacket Pg. 49Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 50Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 51Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 52Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 53Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 54Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 55Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 56Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports
6.E.bPacket Pg. 57Attachment: Cash and Investment Report as of September 30, 2021 (3535 : Cash and Investment Reports as of June 30 and September 30,
City of Gilroy
STAFF REPORT
Agenda Item Title: Annual Re-Adoption of City's Investment Policy and Approval of
Section 115 Investment Guidelines and Contribution
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Strategic Plan Goals
Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
1. Adopt the City’s updated Investment Policy; and
2. Approve the City’s Investment Guidelines Document (IGD) for the Post-
Employee Benefits Trust for Pension established with PARS.
3. Authorize $242,000, realized savings from pre-payment option of the FY22
unfunded accrued liability (UAL), as contribution to the Section 115 Trust.
BACKGROUND
City Investment Policy
Per California Code Section 53646(a), the City Administrator shall annually render to
the City Council a statement of investment policy (Attachment 2), which shall be
considered by the Council at a public meeting to ensure its consistency with respect to
10.A
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the overall objectives of safety, liquidity, and yield. Council last reviewed the policy in
May 2020.
Per the City’s Investment Policy, temporarily idle or surplus funds of the City shall be
invested in accordance with principles of sound treasury management. The three basic
objectives of Gilroy's Investment Program are, in order of priority, (1) safety of invested
funds, (2) maintenance of sufficient liquidity to meet cash flow needs of the City; and (3)
attainment of the maximum yield possible consistent with the first two objectives.
Currently, staff recommends minor changes to the current investment policy as follows:
• Applicability of policy – This section has been amended to reference that the
policy does not apply to the monies held in Section 115 Trust for Pension and/or
Other Post-Employment Benefits (OPEB), as the investments for such trusts are
directed by separate investment guidelines and objectives, as allowed by
California Government Code 53216.1 and 53216.6.
• Responsibilities of the Investment Committee – This section has been updated to
reflect the current position titles.
The City's investment portfolio is structured to provide that sufficient funds from
investments are available every month to meet the City's anticipated cash needs.
Subject to the safety provisions outlined above, the c hoice in investment instruments
and maturities is based upon an analysis of anticipated cash needs, existing and
anticipated revenues, interest rate trends, and specific market opportunities. The
maximum maturity for investment instruments is five years from the date of purchase.
The City’s current investment strategy is conservative and passive as the City Treasurer
(Finance Director) primarily invests the City’s idle cash in the Local Agency Investment
Fund (LAIF) which is a program offered to local agencies to participate in a major
portfolio managed by the California State Controller with 2,393 participants and $35.5
billion in assets at the end of September 2021. All securities purchased by the pool
follow Government Code Section 16430 and 14680.4.
Section 115 Trust
In November 2019, the City Council authorized the establishment of an IRS Section 115
Trust with Public Agency Retirement Services (PARS) to partially address the City’s
unfunded pension liability. The City of Gilroy is the Plan Sponsor, PARS is the Trust
Administrator, and HighMark Capital Management is the Investment Manager . The City
Council also approved an initial $2 million contribution.
In February 2020, City Council, during a study session , received a report on the
investment strategies offered by PARS and endorsed the “moderate” strategy.
Subsequently, the COVID-19 pandemic hit shifting focus on priorities in response to the
pandemic and addressing the negative economic impacts. Staff is formally bringing
back the related action items from the direction received.
ANALYSIS
10.A
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City General Investment Policy
On September 30, 2021, the City’s portfolio market value was $138,412,627, of which
the total amount is held in the Local Agency Investment Fund (LAIF).
Section 115 Trust – Investment Guidelines/Strategy
PARS and HighMark offer five different investment strategies based on their increasing
level of risk and potential return: conservative, moderately conservative, moderate,
balanced, and capital appreciation. The basic difference be tween these strategies is
the level that each plan invests in fixed income assets (government/corporate bonds)
versus investments in equities (stocks) (Figure 1). The City’s current investment policy
does not permit investment in the equities market and under the City’s current
investment policy, only the conservative strategy would be permitted . Based on
Council’s previous direction from February 2020, staff re-evaluated the “moderate”
strategy and confirmed it still aligns with the City’s goals. Staff has worked with PARS
and HighMark to develop a Trust Investment Guidelines document (Attachment 3) for
the City’s Section 115 Trust to aligns with the “moderate” strategy with the purpose to
facilitate the process of ongoing communication between the City and the fiduciaries,
confirms the Plan’s investment goals and objectives; provides a framework to construct
a diversified asset mix to meet short and long term needs, restrict and limit the
investment discretion, and help maintain a long-term perspective.
Figure 1. Investment Allocation/Volatility
As with any investment strategy, the portfolio rate of return is dependent on the amount
of risk that the investor is willing to assume.
It should be noted than any investment is risky and the City could experience financial
losses due to participation in financial markets, however in order to outperform the
current assumed rate of return for the California Public Employees Retirement system
10.A
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(7%), the City would need to designate a strategy at moderate, balanced, or capital
appreciation.
Figure 2 illustrates the historical returns for each level of strategy for the previous 10
years. Historical returns are not an indicator of future performance; however, an investor
can make a reasonable assumption that a 10-year sample size is adequate to develop
an opinion on how an investment strategy might perform.
Figure 2. Historical Investment Returns
Given the risk level and rate of return, Finance staff believe the “moderate” investment
strategy still best aligns with the City’s objectives primarily due to the historical
performance of the approach and as currently comprised is a good balance between
investing in equities and fixed income assets.
As HighMark is the investment manager for over 1,400 plans, over a third of their clients
have selected the “moderate” strategy. Figure 3 below shows the investment strategy
allocation amongst their clients. As is illustrated, over 85% of HighMark clients select
plans within the middle band - either the balanced, moderate, or moderately
conservative strategy.
Figure 3. Client Strategy Distribution
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Section 115 Trust - Funding
In February of 2020, the City Council also directed staff to implement several measures
to fund the section 115 trust, including utilizing the interest savings from pre-payment of
unfunded accrued liability (UAL) at the beginning of fiscal year, and up to 25%
budgetary savings at fiscal year-end. Subsequent to that direction, the COVID-19
pandemic hit, significantly impacting the economy and the City’s General Fund in a
negative manner, requiring budgetary adjustments and utilization of the reserves. As a
result, neither of the two funding actions could be implemented.
Fast forward 18-months, the economy and the City’s fiscal health are showing signs of
recovery; as evident by the preliminary FY21 year-end financials (separate report on
agenda). Staff is cautiously optimistic, and as such, recommend implementing one of
the two action at this time. For FY22, the City took advantage of the pre -payment of
UAL option, realizing $242,000 in savings, therefore staff recommends City Council
approve a contribution to the Section 115 trust in the amount of $242,000 as part of this
report.
Separate but related, the City Council, as part of the adopted strategic plan, is
considering alternative pension cost management strategies, including refinancing the
pension obligations in its entirety. Based on the outcome of those discussions, staff may
return to Council with additional funding recommendations and or adjustment s to the
investment guidelines.
ALTERNATIVES
Section 115 Trust
10.A
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The City Council could consider another one of the five different investment strategies
offered by HighMark. However, this is not recommended at this time, as the “moderate”
strategy’s historical performance demonstrates that at 1, 3, 5, and 10 years outperforms
the current CalPERS assumed rate of return, and carries a lesser risk than balanced
and or capital appreciation strategies.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to adopting the City’s General Investment Policy.
There is a fiscal impact to selecting an investment strategy, such as managed fund fees
and investment management fees, which are deducted from the investment portfolio
and its returns. The weighted expense ratio for HighMark’s five investment strategies
range from 0.42% to 0.46%, inclusive of fund and investment management fee. The
Moderate Strategy’s weighted expense ratio is 0.45%.
The fiscal impact of a contribution to the section 115 trust is $242,000, realized savings
from pre-payment of the UAL, to be funded as follows: 85% General Fund, and 15%
Enterprise Funds (50% - Water/ 50% - Sewer). No budgetary appropriations are needed
at this time.
Attachments:
1. Investment Policy Adoption Resolution
2. Exhibit A: Investment Policy 2021
3. Section 115 Trust Investment Guidelines
10.A
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RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY ADOPTING THE CITY’S INVESTMENT
POLICY
WHEREAS, the City has a responsibility to ensure it handles public funds appropriately;
and
WHEREAS, Section 53646 of the Government Code allows local agencies to annually
approve a Statement of Investment Policy which has been prepared by the chief fiscal officer of
such local agency; and
WHEREAS, the Investment Policy describes the investments the City can utilize in
compliance with California Government Code Section 53646 and good practice dictate that local
agencies prepare a written investment policy; and
WHEREAS, the auditing firm for the City has recommended that the City Council formally
adopt the investment policy via a resolution that promotes sound financial management practices
designed to meet the City Council’s goals and objective; and
WHEREAS, the City Council has been presented with a statement of Investment Policy
annually which is designed to conform with the requirements of the Investment Act; and
WHEREAS, the primary objective of the Investment Policy is to establish a conservative
set of investment criteria that will prudently protect the City’s assets, provide liquidity to meet the
City’s cash needs, and enable the City to generate a market rate of return from its investment
activities; and
WHEREAS, the City Council has reviewed the investment policy and delegates investment
authority to the City Treasurer pursuant to California Government Code Section 53607;
NOW, THEREFORE, the City Council of the City of Gilroy hereby adopts the amended
Investment Policy attached here to as Exhibit A, a copy of which is on file at the City offices and is
available for inspection by the public.
.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Gilroy at its
meeting held on this 1st day of November 2021 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
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Packet Pg. 64 Attachment: Investment Policy Adoption Resolution (3492 : Investment policy update, section 115 investment guidelines)
Marie Blankley, Mayor
ATTEST:
LeeAnn McPhillips, Interim City Clerk
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Packet Pg. 65 Attachment: Investment Policy Adoption Resolution (3492 : Investment policy update, section 115 investment guidelines)
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INVESTMENT POLICY
fOr
CITY Of GILrOY
Revised: May 2020November 2021
I. STATEMENT OF OBJECTIVES
Temporarily idle or surplus funds of the City of Gilroy shall be invested in accordance with
principles of sound treasury management and in accordance with the provisions of
California Government Code Sections 53600, et seq., the Municipal Code, guidelines
established by the California Municipal Treasurer's Association and the California Society
of Municipal Finance Officers, and this Investment Policy ("Policy").
A. Overall Risk Profile
The three basic objectives of Gilroy's Investment Program are, in order of priority:
1. Safety of invested funds;
2. Maintenance of sufficient liquidity to meet cash flow needs of the City; and
3. Attainment of the maximum yield possible consistent with the first two objectives.
The achievement of these objectives shall be accomplished in the manner described
below:
1. Safety of Invested Funds
The City shall ensure the safety of its invested idle funds by limiting credit and
interest rate risks. Credit risk is the risk of loss due to the failure of the security
issuer or backer. Interest rate risk is the risk that the market value portfolio
securities will fall due to an increase in general interest rates.
a. Credit risk will be mitigated by:
i. Limiting investments to the safest types of securities as outlined in this
policy;
ii. By prequalifying the financial institutions with which it will do business; and
iii. By diversifying the investment portfolio so that the failure of any one issuer
or backer will not place an undue financial burden on the City.
b. Interest rate risk will be mitigated by:
i. Maintaining adequate sums in 30 day or less funds.
ii. Structuring the City's portfolio so that securities mature to meet the City's
cash requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to their maturation to meet those specific
needs; and
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iii. Investing primarily in shorter term securities (five years or less).
c. The physical security or safekeeping of the City's investments is also an
important element of safety. Detailed safekeeping requirements are defined in
Section III of this Policy.
2. Liquidity
The City’s investment portfolio shall be structured in a manner which strives to
achieve that securities mature at the same time as cash is needed to meet anticipated
demands (static liquidity). Additionally, since all possible cash demands cannot be
anticipated, the portfolio should consist largely of securities with active secondary or
resale markets (dynamic liquidity). Funds equal to 20% of the total annual
expenditure budget less any capital expenditures for which bond proceeds are
available, less internal service fund charges and less Trust and Agency fund
expenditures, as first adopted for each fiscal year, shall be invested in the California
State LAIF or other 30 day or less securities for call requirements. However, this
provision shall not require the sale of any investment due solely to the adoption of a
new budget, or amendment to a budget, which would have the effect of increasing
the dollar amount needed to maintain this 20% requirement in 30 day or less funds.
At such time that the 30 day or less funds falls below 20% of the annual expenditure
budget, the City Treasurer, within 30 days, will notify the Investment Committee
with a proposed action plan. The City Council will be subsequently notified of the
action taken. The specific percentage mix of different investment instruments and
maturities is described in Section II of this Policy.
3. Yield
Yield on the City's investment portfolio is of secondary importance compared to the
safety and liquidity objectives described above. Investments are limited to relatively
low risk securities in anticipation of earning a fair return relative to the risk being
assumed. While it may occasionally be necessary or strategically prudent of the City
to sell a security prior to maturity to either meet unanticipated cash needs or to
restructure the portfolio, this Policy specifically prohibits trading securities for the
sole purpose of speculating on the future direction of interest rates.
B. Time Frame for Investment Decisions
The City's investment portfolio shall be structured to provide that sufficient funds from
investments are available every month to meet the City's anticipated cash needs. Subject
to the safety provisions outlined above, the choice in investment instruments and
maturities shall be based upon an analysis of anticipated cash needs, existing and
anticipated revenues, interest rate trends, and specific market opportunities. No
investment should have a maturity of more than five (5) years from its date of purchase
without receiving City Council approval within the prior 90 days.
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C. Definition of Idle or Surplus Funds
Idle or surplus funds for the purpose of this Policy are all City funds which are available
for investment at any one time, including the estimated checking account float,
excepting those minimum balances required by the City's banks to compensate them for
the cost of banking services. This Policy also applies to the idle or surplus funds
included in the general fund, special revenue funds, debt service funds, capital projects
funds, enterprise funds, internal service funds, trust/agency funds and of other entities
for which the City of Gilroy personnel provide financial management services.
D. Applicability of Policy
This policy does not apply to:
1. The City's Deferred Compensation Plan, the investments in which are directed by the
participating employees through a Deferred Compensation Committee; and
2. Monies held by a trustee or fiscal agent and pledged to the payment or security of
bonds or other indebtedness, or obligations under agreements, of a local agency, or
certificates of participation in such bonds, indebtedness or agreements, the
investment of which may be in accordance with the statutory provisions governing
the issuance of those bonds, indebtedness or agreements, or to the extent not
inconsistent therewith, or if there are no specific statutory provisions, in accordance
with the ordinance, resolution, indenture or agreement of the local agency providing
for the issuance.
2.3. Monies held in a Section 115 trust for Post-Employment Benefits Trust (the
“Program”) for the purpose of pre-funding pension obligations and/or OPEB
obligations. Investment of such section 115 trust/s are directed by the separate
Investment Guidelines Document (IGD) as approved by the Plan Sponsor.
E. Benchmark and Performance Standards
1. The City's investment strategy is passive. Given this strategy, the portfolio is
expected to meet or exceed the six (6) month treasury bill.
2. The investment portfolio shall be designed with the objective of obtaining a rate of
return commensurate with risk constraints and cash flow needs.
Formatted: Font: 12 pt
Formatted: Indent: Left: 0.65", Hanging: 0.25", Right:
0", No bullets or numbering, Tab stops: Not at 0.9"
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II. INVESTMENTS
This section of the Investment Policy identifies policies, types of investments, and related
matters pertaining to instruments in which the City will invest its idle funds.
A. Investment Standards
The City of Gilroy operates its temporary pooled idle cash investments under the
Prudent Man Rule, California Probate Code Section 16040(b) 1, the Prudent Investor
Standard, California Government Code, Section 53600.3 2, and with additional guidance
from the provisions of the Uniform Prudent Investor Act, California Probate Code
Section 16045, et seq 3. This affords the City a broad spectrum of investment
opportunities as long as the investment is deemed prudent and is allowable under current
legislation of the State of California (Government Code Section 53600, et seq).
B. Eligible Securities
Subject to the Prudent Man Rule, the Prudent Investor Standard and other applicable
laws and regulations, this policy permits investment in the following:
• Insured Certificates of Deposit (CD's) of California banks and/or savings and loan
associations, and/or savings with a Superior or Excellent ranking of 165 or more as
provided by IDC Financial Publishing Inc. or similar rating publication) which mature in
five (5) years or less, provided that the City's investments shall not exceed Two Hundred
Fifty Thousand Dollars ($250,000.00) per institution. If the investment exceeds the
insured $250,000.00, the funds are to be collateralized at 110% of the deposit in
government securities or 150% in mortgages. (limited to 15% of the portfolio)
1The Prudent Man Rule states, in essence, that "in investing . . . property for the benefit of another, a trustee
shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion,
and intelligence exercise in the management of their own affairs . . ."
2Governing bodies of local agencies (e.g., a City Council) or persons authorized to make investment
decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore
fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging,
selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated
needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in
the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity
needs of the agency. Within the limitations of this section and considering individual investments as part to an
overall strategy, a trustee is authorized to acquire investments as authorized by law.
3The standard of care for trustees investing and managing trust assets is the Prudent Investor Standard and
takes into consideration the purposes, terms, distribution requirements and other circumstances of the trust, and in
satisfying this standard, the trustee is required to exercise reasonable care, skill, and caution in light of the facts and
circumstances existing at the time of a trustee's decision or action.
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□ Local Agency Investment Fund (State Pool) Demand Deposits
□ Securities of the U.S. Government, or its agencies
□ Negotiable Certificates of Deposit placed with federal and state savings and loan
associations and federal and state chartered banks with an office in the State of
California. (limited to 15% of the portfolio)
□ Bankers Acceptances (limited to 15% of the portfolio)
□ Commercial paper (limited to 10% of the portfolio)
□ Passbook Savings or Money Market Demand Deposits
□ Securities or bonds purchased under a prior investment policy, which may or may
not meet the standards of this policy. (Such securities or bonds may be held or sold
under this Policy but additional purchases shall not be made.)
□ Money Market Mutual Fund (with $1.00 net asset value and which invests only in
instruments allowed under Government Code Section 53600, et seq.) - (limited to
5% of the portfolio)
C. Investments Deemed Not Appropriate at this Time
The City of Gilroy Investment Policy does not permit investment in the following
instruments or securities:
□ Corporate bonds or stocks
□ Repurchase agreements or reverse repurchase agreements
□ Interest only or principal only strips
□ Certificates of Deposit issued by institutions not operating within California
□ Inverse floaters and range notes
□ Financial futures or financial option contracts
□ Securities lending or leveraging any portion of the portfolio
D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized in the
manner prescribed by law for depositories accepting municipal investment funds.
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E. Preformatted Wire Transfers
Wherever possible, the City will use preformatted wire transfers to restrict the transfer of
funds to preauthorized accounts only. When transferring funds to an account not
previously approved, the bank is required to call back a second employee for
confirmation that the transfer is authorized.
F. Qualification of Brokers, Dealers and Financial Institutions
The City Treasurer shall investigate brokers and dealers who wish to do business with
the City to determine if they are adequately capitalized, have any pending legal actions
against the firm or the individual broker, and that they market securities appropriate to
the City's needs.
The City shall annually send a copy of the current edition of the Policy to all institutions
and broker/dealers which are approved to handle City of Gilroy investments. Receipt of
the Policy, including confirmation that it has been received by persons handling the
City's accounts, shall be acknowledged in writing within thirty (30) days.
G. Diversification
The portfolio should consist of a prudent mix of various types of securities, issues and
maturities.
H. Confirmation
Receipts for confirmation of purchase or sale of authorized securities should be received
by the City Treasurer within five (5) days and include the following information: trade
date, par value, rate, price, yield, settlement date, description of securities purchased,
agency's name, net amount due, third party custodial information. These are minimum
information requirements.
I. Internal Controls
Investment duties shall be separated by having at least three persons perform the
following functions for any particular investment: the recordation of investments and
disbursements, confirmation receipts, the preparation of Treasurer's reports, wire
transfers, bank reconciliations and treasury reconciliations. An independent analysis by
the external auditor shall be conducted annually to screen internal control, account
activity, including verification of all securities, and compliance with policies and
procedures.
J. Interest Earnings
All interest earned on investments authorized by this Policy shall be allocated quarterly
to all City funds based on the positive cash balances in each fund as a percentage of the
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entire pooled portfolio. The interest allocated to those funds not legally required to have
interest allocated shall be transferred to Fund 400, Capital Projects Fund.
III. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The City shall contract with a bank or banks with federally insured deposits for the
safekeeping services through a third party custodial agreement, (California Government
Code Section 53601)4 which includes delivery versus payment provisions, for securities
which are owned by the City as part of its investment portfolio.
B. Handling of City-Owned Securities and Time Deposit Collateral
All securities owned by the City shall be held by the City or by its third party custodian,
except the collateral for time deposits in banks, savings banks, and savings and loan
associations. The collateral for time deposits in banks and savings and loans shall be
held in a trust account in the City of Gilroy's name. Dealers or brokers shall not hold
any securities for the City. A broker is not an approved depository under California
Government Code Section 53630 5 and Section 53608 6
C. Security Transfers
The authorization to release City's securities will be telephoned to the appropriate
depository or custodian by a Finance Department member other than the person who
initiated the transaction. A written confirmation outlining the details for the transaction
and confirming the telephone instructions will be sent to the bank within five (5)
working days. A confirming notice documenting the transaction will be sent by the
bank to the City within five (5) working days of the transaction.
4Section 53601. Authorized Investments, circumstances. A local agency purchasing or obtaining any
security . . . shall require delivery of the securities to the local agency . . . by book entry, physical delivery or by
third party custodial agreement.
5Section 53630(c) allows state or national banks, state or federal savings banks or savings and loan
associations, state or federal credit unions and federally insured industrial loan companies as approved depositories.
6Section 53608. Deposit of securities; delegation of authority. The legislative body of a local agency may
deposit for safekeeping with a federal or state association, a trust company or a state or national bank located within
this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any
Federal Reserve Bank or with any state or national bank located in any city designated as a reserve city by the Board
of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates or
indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested
pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial
institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may
be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for
securities delivered to and receipted for by a financial institution until they are withdrawn from the financial
institution by the treasurer.
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D. Verification of Security
Securities held by an agent of depository as collateral securing time deposits will be
verified in writing during the year by the City's independent auditors as part of the City's
annual independent audit. The City's independent auditors confirm the collateral
directly with the bank holding that collateral. Those securities held by that depository or
custodian as collateral are subject to audit by the bank's auditors.
IV. STRUCTURE AND RESPONSIBILITY
This section of the Policy defines the overall structure of the investment management
program.
A. Responsibilities of the Finance Department
The Finance Department, through its officers and representatives, charged with
responsibility for maintaining custody of all public funds and securities belonging to or
under the control of the City and for the deposit and investment of those funds in
accordance with principles of sound treasury management and in accordance with
applicable laws and ordinances.
B. Responsibilities and Ethics of the City Treasurer
1. Delegation of Authority
The authority of the City Council to invest or to reinvest funds, or to sell or
exchange securities so purchased, may be delegated for a one-year period to the City
Treasurer, who shall thereafter assume full responsibility for those transactions until
the delegation is revoked or expires and shall make quarterly reports of those
transactions to the City Council. (California Government Code Section 53607).
Subject to review, the City Council may renew the delegation of authority each year.
2. Responsibilities
The City Treasurer is appointed by the City Administrator and is subject to his
direction and supervision. The City Treasurer is charged with the responsibility for
the purchase, sale, custody and investment of City funds, and the development of
procedures to implement this Investment Policy. In fulfilling his responsibilities, the
City Treasurer is subject to the Prudent Investor Standard and shall render reports
regarding compliance with the Investment Policy. The City Treasurer is further
responsible for the duties and subject to the powers imposed by and applicable to
City Treasurers under the general laws of the State of California.
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3. Ethical Conduct
The City Treasurer will demonstrate integrity in all public and personal
relationships, protect the public trust, and seek no favor or accept any personal gain
which would influence or appear to influence the conduct of the office of Treasurer.
C. Responsibilities of the City Administrator
The City Administrator is responsible for directing and supervising the City Treasurer.
He is responsible further to keep the City Council fully advised as to the financial
condition of the City and its compliance with this Policy.
D. Responsibilities of the City Council
The City Council shall consider and annually adopt a written investment policy. As
provided in that policy, the Council shall receive and review quarterly investment
reports and may annually delegate investment authority to the City Treasurer pursuant to
California Government Code Section 53607.
E. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the City Administrator, City
Treasurer/Finance Director, and Assistant Finance Director the Finance Manager. The
committee shall meet quarterly to discuss cash flow requirements, monthly and
quarterly investment reports, investment strategy, investment and banking procedures,
significant investment related work projects being undertaken in each department which
will affect the cash flow management of the City Treasurer and to review compliance
with the investment policies adopted by the City Council. This will require timely
reports from the department heads to the City Treasurer concerning significant future
cash flow requirements.
V. REPORTING
The City Treasurer shall prepare a quarterly investment report, including a succinct
management summary that provides a clear picture of the status of the current investment
portfolio and transactions made over the past quarter by month. This management summary
will be prepared in a manner which will allow the City Administrator and City Council to
ascertain whether investment activities during the reporting period are in conformance with
the City's Investment Policy.
The quarterly investment report will include the following:
A. A listing of individual securities held at the end of the reporting quarter showing the:
1. type of investment
2. institution
3. date of maturity
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4. amount of deposit or cost of the security
5. rate of return
B. Unrealized gain or loss resulting from appreciation or depreciation by listing the cost
and market value of securities over one year in duration.
C. Average yield of return on the City's investments.
D. Maturity aging for the investments.
E. Compliance of the investment portfolio with the Investment Policy.
F. A statement denoting the ability of the City to meet expenditure requirements for the
next six months.
VI. REVIEW OF INVESTMENT MANAGEMENT
A. Statement of Policy
As set forth in California Code Section 53646(a), the City Administrator shall annually
render to the City Council a statement of investment policy, which shall be considered
by the Council at a public meeting.
B. Policy Review
This Investment Policy shall be reviewed annually by the City Council at a public
meeting in accordance with state law to ensure its consistency with respect to the overall
objectives of safety, liquidity, and yield. Proposed amendments to the Policy shall be
prepared by the City Treasurer and after review by the Investment Committee shall be
forwarded to the City Council for consideration at a public meeting.
VII. AUTHORITY
This Policy was duly adopted by authority of the City Council of the City of Gilroy on the
1st day of July , 2015 and was most recently re-adopted on May 18, 2020November 1,
2021.
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Investment Guidelines Document
City of Gilroy
Employee Benefit Fund Pension Plan
September 2021
DRAFT
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Packet Pg. 76 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 2
Investment Guidelines Document
Scope and Purpose
The purpose of this Investment Guidelines Document is to:
• Facilitate the process of ongoing communication between the Plan Sponsor and its plan
fiduciaries;
• Confirm the Plan’s investment goals and objectives and management policies applicable
to the investment portfolio identified below and obtained from the Plan Sponsor;
• Provide a framework to construct a well-diversified asset mix that can potentially be
expected to meet the account’s short- and long-term needs that is consistent with the
account’s investment objectives, liquidity considerations and risk tolerance;
• Identify any unique considerations that may restrict or limit the investment discretion of its
designated investment managers;
• Help maintain a long-term perspective when market volatility is caused by short-term
market movements.
Key Plan Sponsor Account Information as of September 2021
Plan Sponsor: City of Gilroy
Governance: City Council for the City of Gilroy
Plan Name (“Plan”): City of Gilroy Employee Benefit Fund Pension Plan
Trustee: US Bank
Contact: Susan Hughes, 949-224-7209
susan.hughes@usbank.com
Type of Account: Pension Plan
ERISA Status: Not subject to ERISA
Investment Manager: US Bank, as discretionary trustee, has delegated investment
management responsibilities to HighMark Capital Management,
Inc. (“Investment Manager”), an SEC-registered investment
adviser
Contact: Randall Yurchak, CFA, 415-705-7579
Randall.Yurchak@highmarkcapital.com
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Packet Pg. 77 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 3
Investment Authority: Except as otherwise noted, the Trustee, US Bank, has delegated
investment authority to HighMark Capital Management, an SEC-registered investment adviser.
Investment Manager has full investment discretion over the managed assets in the account.
Investment Manager is authorized to purchase, sell, exchange, invest, reinvest and manage the
designated assets held in the account, all in accordance with account’s investment objectives,
without prior approval or subsequent approval of any other party(ies).
Investment Objectives and Constraints
The goal of the Plan’s investment program is to provide a reasonable level of growth which, will
result in sufficient assets to pay the present and future obligations of the Plan. The following
objectives are intended to assist in achieving this goal:
• The Plan should seek to earn a return in excess of its policy benchmark over the life of
the Plan.
• The Plan’s assets will be managed on a total return basis which takes into consideration
both investment income and capital appreciation. While the Plan Sponsor recognizes the
importance of preservation of capital, it also adheres to the principle that varying degrees
of investment risk are generally rewarded with compensating returns. To achieve these
objectives, the Plan Sponsor allocates its assets (asset allocation) with a strategic
perspective of the capital markets.
Investment Time Horizon: Long-Term (5-7 years)
Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate
increases from CalPERS. Typically increases in rates come with
a one-year advance warning, however this Plan may transfer
assets to CalPERS at any time.
Investment Objective: The primary objective is to generate a reasonable level of
growth. The assets in this Plan will eventually be used to fund
Pension Plan obligations for assets managed in the CalPERS
Trust.
Risk Tolerance: Moderate
The account’s risk tolerance has been rated moderate, which
demonstrates that the account can accept price fluctuations to
pursue its investment objectives.
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Packet Pg. 78 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 4
Strategic Asset Allocation: The asset allocation ranges for this objective are listed below:
Strategic Asset Allocation Ranges
Cash Fixed Income Equity
0-20% 40%-60% 40%-60%
Policy: 5% Policy: 45% Policy: 50%
Market conditions may cause the account’s asset allocation to vary from the stated range from
time to time. The Investment Manager will rebalance t he portfolio no less than quarterly and/or
when the actual weighting differs substantially from the strategic range, if appropriate and
consistent with your objectives.
Security Guidelines:
Equities
With the exception of limitations and constraints descri bed above, Investment Manager may
allocate assets of the equity portion of the account among various market capitalizations (large,
mid, small) and investment styles (value, growth). Further, Investment Manager may allocate
assets among domestic, international developed and emerging market equity securities.
Total Equities 40%-60%
Equity Style Range
Domestic Large Cap Equity 15%-45%
Domestic Mid Cap Equity 0%-10%
Domestic Small Cap Equity 0%-15%
International Equity (incl. Emerging Markets) 0%-15%
Real Estate Investment Trust (REIT) 0%-15%
Fixed Income
In the fixed income portion of the account, Investment Manager may allocate assets among
various sectors and industries, as well as varying maturities and credit quality that are consistent
with the overall goals and objectives of the portfolio.
Total Fixed Income 40%-60%
Fixed Income Style Range
Long-term bonds (maturities >7 years) 0%-25%
Intermediate-term bonds (maturities 3-7 years) 25%-60%
Short-Term bonds (maturities <3 years) 0%-25%
High Yield bonds 0%-10%
10.A.c
Packet Pg. 79 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 5
Performance Benchmarks:
The performance of the total Plan shall be measured over a three and five-year periods. These
periods are considered sufficient to accommodate the market c ycles experienced with
investments. The performance shall be compared to the return of the total portfolio blended
benchmark shown below.
Total Portfolio Blended Benchmark
26.50% S&P 500 Index
5.00% Russell Mid Cap Index
7.50% Russell 2000 Index
3.25% MSCI Emerging Market Index
6.00% MSCI EAFE Index
1.75% Wilshire REIT Index
33.50% Bloomberg US Aggregate Bond Index
10.00% ML 1-3 Year US Corp/Gov’t Index
1.50% US High Yield Master II Index
5.00% Citi 1Mth T-Bill Index
Asset Class/Style Benchmarks
Over a market cycle, the long-term objective for each investment strategy is to add value to a
market benchmark. The following are the benchmarks used to monitor each investment strategy:
Large Cap Equity S&P 500 Index
Growth S&P 500 Growth Index
Value S&P 500 Value Index
Mid Cap Equity Russell Mid Cap Index
Growth Russell Mid Cap Growth Index
Value Russell Mid Cap Value Index
Small Cap Equity Russell 2000 Index
Growth Russell 2000 Growth Index
Value Russell 2000 Value Index
REITs Wilshire REIT Index
International Equity MSCI EAFE Index
Investment Grade Bonds Bloomberg US Aggregate Index
High Yield US High Yield Master II Index
Security Selection
Investment Manager may utilize a full range of investment vehicles when constructing the
investment portfolio, including but not limited to individual securities, mutual funds, and exchange-
traded funds. In addition, to the extent permissible, Investment Manager is authorized to invest in
shares of mutual funds in which the Investment Manager serves as advisor or sub-adviser.
10.A.c
Packet Pg. 80 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 6
Investment Limitations:
The following investment transactions are prohibited:
• Direct investments in precious metals (precious metals mutual funds and exchange-traded
funds are permissible).
• Venture Capital
• Short sales*
• Purchases of Letter Stock, Private Placements, or direct payments
• Leveraged Transactions*
• Commodities Transactions Puts, calls, straddles, or other optio n strategies*
• Purchases of real estate, with the exception of REITs
• Derivatives, with exception of ETFs*
*Permissible in diversified mutual funds and exchange-traded funds
Duties and Responsibilities
Responsibilities of Plan Sponsor
The Plan Administrator and Investment Committee for the City of Gilroy is responsible for:
▪ Confirming the accuracy of this Investment Guidelines Document, in writing.
▪ Advising Trustee and Investment Manager of any change in the plan/account’s financial
situation, funding status, or cash flows, which could possibly necessitate a change to the
account’s overall risk tolerance, time horizon or liquidity requirements; and thus would
dictate a change to the overall investment objective and goals for the account.
▪ Monitoring and supervising all service vendors and investment options, including
investment managers.
▪ Avoiding prohibited transactions and conflicts of interest.
Responsibilities of Trustee
The plan Trustee is responsible for:
▪ Valuing the holdings.
▪ Collecting all income and dividends owed to the Plan.
▪ Settling all transactions (buy-sell orders).
Responsibilities of Investment Manager
The Investment Manager is responsible for:
▪ Assisting the Plan Administrator and Investment Committee for the City of Gilroy with the
development and maintenance of this Investment Policy Guideline document.
▪ Meeting with Plan Administrator and Investment Committee for the City of Gilroy to
review portfolio structure, holdings, and performance.
▪ Designing, recommending and implementing an appropriate asset allocation consistent
with the investment objectives, time horizon, risk profile, guidelines and constraints
outlined in this statement.
▪ Researching and monitoring investment advisers and investment vehicles.
▪ Purchasing, selling, and reinvesting in securities held in the account.
▪ Monitoring the performance of all selected assets.
▪ Voting proxies, if applicable.
▪ Recommending changes to any of the above.
10.A.c
Packet Pg. 81 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy Employee Benefit Fund Pension Plan
Investment Guidelines Document – HighMark Capital Management, Inc.
(v. 9/24/2021 - RY) 7
▪ Periodically reviewing the suitability of the investments, being available to meet with the
committee at least once each year, and being available at such other times within reason
at your request.
▪ Preparing and presenting appropriate reports.
▪ Informing the committee if changes occur in personnel that are responsible for portfolio
management or research.
Acknowledgement and Acceptance
I/We being the Plan Sponsor with responsibility for the account(s) held on behalf of the Plan
Sponsor specified below, designate Investment Manager as having the investment discretion and
management responsibility indicated in relation to all assets of the Plan or specified Account. If
such designation is set forth in the Plan/trust, I/We hereby confirm such designation as
Investment Manager.
I have read the Investment Guidelines Document, and confirm the accuracy of it, including the
terms and conditions under which the assets in this account are to be held, managed, and
disposed of by Investment Manager. This Investment Guidelines Document supersedes all
previous versions of an Investment Guidelines Document or investment objective instructions that
may have been executed for this account.
__________________________________________________ Date: ________________
Plan Sponsor: City of Gilroy
__________________________________________________ Date: ________________
Investment Manager: Randall Yurchak, CFA, Portfolio Manager, (415) 705-7579
10.A.c
Packet Pg. 82 Attachment: Section 115 Trust Investment Guidelines (3492 : Investment policy update, section 115 investment guidelines)
City of Gilroy
STAFF REPORT
Agenda Item Title: Receive Preliminary FY21 Year-End Financial Report
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Strategic Plan Goals
Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Receive preliminary Fiscal Year 2021 (FY21) Year-End Report.
EXECUTIVE SUMMARY
This report serves to inform the City Council and the community about the City’s Fiscal
Year 2021 (FY21) preliminary year-end financial performance. The General Fund is the
primary focus of this report, as it is the primary funding source for essential City
services. All the non-general funds information is presented in aggregate in the latter
part of the report.
BACKGROUND
The City of Gilroy adopts a biennial operational budget. The FY20 and FY21 Biennial
Budget was adopted on June 3, 2019. During calendar year 2020, staff presented
various reports detailing the negative economic impacts of the COVID-19 pandemic as
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well as a series of adjustments to the expenditures to resolve the negative impacts.
More recently, on June 7, 2021, the City Council adopted the FY22 and FY23 Biennial
Budget which included the last update to the City’s General Fund forecast and projected
the FY21 year-end revenues to be $57.6 million, and expenditures to be $51.0 million.
ANALYSIS
General Fund
Revenues
For FY21, the General Fund received $60.9 million in revenues, approximately $3.3
million better than the amended budget due to the first-half payment ($5.5 million)
received from the American Rescue Plan Act (ARPA). Excluding the one-time ARPA
monies, the General Fund revenues came in 3% less than budget, primarily due to the
sales and transient occupancy tax categories, which were significantly impacted by the
COVID-19 pandemic. The table below compares the budgeted General Fund revenues
by category to the year-end projection (June 2021) and unaudited actuals.
General Fund Revenues
by Category
FY21
Amended
Budget
FY21
Year-End
Projection
(June 2021)
FY21
Actuals
(Unaudited)% of Budget
Sales Tax 21.4$ 16.2$ 18.3$ 86%
Property Tax 15.4 17.1 17.7 115%
Utility User Tax 4.6 4.2 4.4 96%
Franchise Tax 1.7 1.8 1.7 100%
Transient Occupancy Tax 2.0 1.0 1.1 55%
Business License 0.7 0.6 0.9 129%
Other Revenues 11.1 16.7 16.8 151%
Total 56.9$ 57.6$ 60.9$ 107%
(In Millions)
• Sales Tax – Sales tax is the General Fund’s primary source of revenue. For
FY21, the City received $18.3 million in sales tax revenue. Although this was
14% less than the amended budget, sales tax revenue at the year-end came in
higher than projected in June 2021, by $2.1 million. This was due to significant
economic recovery experienced in Q2 of 2021 (Q4 of FY21), when vaccines
were readily available, and the shelter-in-place (SIP) orders were relaxed. While
all sectors saw modest increase, the most notable increases were in the general
retail and transportation sector, and the county pool. In addition, the American
Rescue Plan Act (ARPA), an economic relief package, was passed in March
2021 which provided direct stimulus payments and extended unemployment
benefits, amongst various other things, contributing to the economic recovery
across the nation.
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• Property Tax – For FY21, the City received $17.7 million in property tax revenue,
$2.3 million better than budget. The majority of this increase, or $1.6 million, is
attributable to the excess Educational Revenue Augmentation Fund (ERAF)
funds received by the City. A portion of annual property tax revenue collected by
the County goes to the ERAF to support local school districts. When the amount
contributed to ERAF is more than the minimum cost of funding local schools, the
excess funds are returned to the county, cities, and special districts.
• Utility Users Tax (UUT) – For FY21, the City received $4.4 million in utility users
tax revenue, approximately $0.2 million less than budget, but better than
projected year-end in June 2021. UUT, a relatively stable revenue source at one-
time, has changed dramatically over the last several years and the redefining of
telephone and media have brought significant changes and challenges to what
the City can and cannot collect.
• Transient Occupancy Tax (TOT) – For FY21, the City received $1.1 million in
TOT, approximately $0.9 million less than budget, but better than projected year -
end in June 2021. TOT was the most impacted revenue category due to the
shelter-in-place orders being extended for majority of the fiscal year.
• Franchise Tax – For FY21, the City received $1.7 million in franchise tax
revenue, which is consistent with what was budgeted, and only slightly less that
the year-end projection.
• Business License – For FY21, the City received $0.9 million in business license
tax revenue, approximately $0.2 million better than budget, and $0.3 million
better than projected at year-end for June 2021.
• Other Revenues –This revenue category consists of departmental charges for
services, general administration charges, fines and forfeitures, and
intergovernmental revenues. For FY21, the City received $16.8 million in other
revenues, primarily consisting of $5.5 million as the first half-payment of the
ARPA funding for the City, $6.3 million in development related revenues from
public works and community development, $2.5 million in general overhead
charges, and the remainder from other departmental charges for services and
intergovernmental grants.
Expenditures
For FY21, the General Fund expenditures were $50.5 million, approximately $2.7
million, or 5%, under budget, primarily due to salary savings. The table below compares
the budgeted General Fund expenditures by Departments to the year -end projection
(June 2021) and unaudited actuals.
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General Fund Expenditures
by Department/Function
FY21
Amended
Budget
FY21
Year-End
Projection
(June 2021)
FY21
Actuals
(Unaudited)% of Budget
Administration 2.1$ 2.0$ 2.1$ 100%
Recreation Transfer 1.5 1.5 1.5 100%
Finance 0.7 0.8 0.6 86%
Human Resources 1.1 1.0 0.9 82%
Police 24.2 23.1 22.6 93%
Fire 12.4 11.7 12.2 98%
Public Works 5.5 5.8 5.2 95%
Community Development 3.2 2.9 3.0 94%
Central Services 1.5 1.5 1.6 107%
Other General Government 0.9 0.7 0.7 78%
Total 53.1$ 51.0$ 50.4$ 95%
(In Millions)
General Fund Forecast
The chart below is an updated General Fund Forecast, which incorporates FY21
preliminary year-end actuals for revenues and expenditures and includes year-to-date
budget amendments for FY22. The City Council last received the General Fund
Forecast update at the biennial budget adoption in June 2021. Overall, the General
Fund ended FY21 with a net operating margin of $4.9 million, vs. $1.1 million projected
at the budget adoption. This was primarily the result of better than expected Q2 sales
tax, and property tax revenues. This experience was not unique to Gilroy but held true
across the state. For Gilroy, a full economic recovery was previously expected to be by
FY23, but there are strong indications the recovery will be a year ahead. The General
Fund reserve levels, excluding the ARPA, now exceed the minimum required (30%)
through FY26.
Actual YEP Adopted Adopted Forecast Forecast Forecast Forecast
General Fund Forecast (In Millions)FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Beginning Fund Balance 21.3$ 13.9$ 18.8$ 19.6$ 20.1$ 20.0$ 19.5$ 18.8$
Add: Revenues 50.7 55.4 55.7 56.3 57.4 58.9 60.5 62.1
Less: Expenditures (58.1) (50.5) (54.9) (55.8) (57.5) (59.4) (61.2) (63.0)
Operating Margin (7.4) 4.9 0.8 0.5 (0.1) (0.5) (0.7) (0.9)
Ending Fund Balance 13.9$ 18.8$ 19.6$ 20.1$ 20.0$ 19.5$ 18.8$ 17.9$
One-time Contribution (ARPA)5.5 5.5
One-time Expenditures (ARPA)(1.6) (1.6) - - - -
Ending Fund Balance (with ARPA)*13.9$ 24.3$ 29.0$ 27.9$ 27.8$ 27.3$ 26.6$ 25.7$
Minimum Fund Balance Required 30%30%30%30%30%30%30%30%
Fund Balance as a % 24%37%36%36%35%33%31%28%
Fund Balance as a % (with ARPA)24%48%51%49%48%46%43%41%
*Please note the positions added back beginning FY22 utilizing the ARPA funds are an ongoing operational expenditure thus are not reflected in the one-time expenditure line item for ARPA above.
Non-General Funds
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Revenues
The City has approximately 90 non-general funds. Instead of presenting on each fund
separately, the information (revenues and expenditures) for these funds is presented in
aggregate by fund type. For FY21, in aggregate, the City generated $66.9 million in
Non-General Fund revenues, approximately $2.4 million less than budget. The table
below compares the budgeted Non-General Fund revenues by Fund Type to the year-
end projection (June 2021), and the unaudited actuals.
Non-General Fund
Revenues by Fund Type
FY21
Amended
Budget
FY21
Year-End
Projection
(June 2021)
FY21
Actuals
(Unaudited)% of Budget
Special Revenues 6.3$ 8.4$ 8.0$ 127%
Recreation 2.7 1.7 1.7 63%
Capital/Development 14.6 9.7 10.2 70%
Debt Service*5.9 6.0 6.0 102%
Internal Service 10.7 12.0 11.4 107%
Sewer 14.3 13.6 13.8 97%
Water 13.9 14.3 14.9 107%
Agency 0.9 0.9 0.9 100%
Total 69.3$ 66.6$ 66.9$ 97%
*Excludes Bond Proceeds
(In Millions)
• Special Revenues – The primary source in this fund type is intergovernmental
funds in the manner of tax sharing or grants from Federal, State, County, and
other regional governments.
For the City of Gilroy, these Special Revenues primarily provide funding for
transportation (Gas Taxes, Vehicle Registration, and Measure B), public safety
(Proposition 172 sales tax, Gang Prevention, and regional task forces) and
community development (CDBG and Housing).
For FY21, The City received $8.0 million in special revenues, approximately $1.7
million, or 27% more than budget most notably due to increased Measure B ($0.8
million) funds, mobility grant ($0.4 million) funds, and housing trust funds ($0.2
million).
• Recreation – Historically the Recreation Fund has been supported 70% by the
General Fund, and the remainder by user fees. As part of the General Fund
Financial Recovery Plan adopted in 2020, the Recreation Division service levels
were reduced due to the stay-at-home orders, and the General Fund contribution
to the fund was reduced to $1.5 million annually. For FY21, the Recreation Fund
generated approximately $0.2 million in user fees, and the General Fund
contributed $1.5 million as planned.
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• Capital/Development Impact Funds – The revenues in these funds are collected
as a result of new development approval and the required contributions to
various impact funds (public facilities, water, sewer, traffic, trees, and storm
drain) to offset infrastructure impacts.
For FY21, the City received $10.2 million in capital/development impact funds,
approximately $4.4 million, or 30%, less than budget. The lower amounts of fees
are a result of development projects that haven’t yet pulled permits or finalized
plans.
• Internal Service Funds (ISFs) – The City’s internal services funds (IT, Fleet,
Facilities, Fringe Benefits, Worker’s Compensation, and Liability Funds) primarily
receive their revenue from charges to other departments and funds in the City.
For FY21, the internal services received $11.4 million in revenues,
approximately, $0.7 million, or 7%, more than budget. This increase is primarily
due to one-time insurance proceeds received in the Liability Fund from the City’s
insurance carrier plan JPA. The ISFs are trued-up annually at year-end and staff
expects the user charges to be adjusted slightly lower for some of the funds
during the final audit.
• Debt Service – The revenues in these funds are from various sources, including
special tax assessments as well as special revenue funds of the City. These
funds are utilized to account for the annual debt service of the City’s outstanding
general obligation debt. During FY21, the City took advantage of the low interest
rate environment and refinanced its existing Lease Revenue Bonds to generate
annual debt service savings.
• Sewer – For FY21, the City generated $13.8 million in the Sewer Fund revenues,
approximately $0.5 million, or 3%, less than budget.
• Water – For FY21, the City generated $14.9 million in Water Fund revenues,
approximately $1.0 million, or 7%, more than budget.
Expenditures
The table below compares the Non-General Fund Expenditures by Fund Type for FY21
amended budget, year-end projection, and actuals as of June 2021. For FY21, in
aggregate, the non-general fund expenditures were $65.0, approximately $18.0 million,
or 22%, less than appropriated budget.
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Non-General Fund
Expenditures by Fund Type
FY21
Amended
Budget
FY21
Year-End
Projection
(June 2021)
FY21
Actuals
(Unaudited)% of Budget
Special Revenues 13.2$ 8.6$ 8.0$ 61%
Recreation 2.8 1.7 1.9 68%
Capital/Development 14.4 9.9 8.1 56%
Debt Service*5.8 5.7 5.7 98%
Internal Service 13.4 13.3 10.9 81%
Sewer 16.1 14.6 13.9 86%
Water 16.4 13.0 15.6 95%
Agency 0.9 0.9 0.9 100%
Total 83.0$ 67.7$ 65.0$ 78%
*Excludes Debt Redemption due to Refinancing
(In Millions)
• Special Revenues – For FY21, the City expended $8.0 million, or 61%, of the
$13.2 million in special revenue appropriations. The primary category of
expenditures for special revenue funds is capital outlay (Gas Taxes, Measure B,
Vehicle Registration, and SB1). The City Council adopted the current Capital
Improvement Program (FY21 through FY25) in November 2020. Due to the
complex nature of capital projects, the lead time to develop, design, bid and
subsequently award can take many months and can span over fiscal years.
• Recreation – As mentioned earlier, the Recreation Division’s service levels were
reduced due to the pandemic related stay-at-home orders and the General Fund
Financial Recovery Plan instituted in 2020. For FY21, the Recreation Fund
expended $1.9 million, approximately $0.9 million, or 32%, less than the
appropriated budget.
• Capital/Development Impact Funds – For FY21, the City expended $8.1 million,
or 56%, of the $14.4 million appropriations in the Capital/Development Impact
Funds. The underspending was primarily in the areas of contractual services and
capital outlay.
• Internal Service Funds (ISFs) – For FY21, the City expended $10.9 million, or
81%, of the $13.4 million appropriations in the Internal Service Funds. The
underspending was primarily in the areas of materials and services.
• Debt Service – For FY21, debt service payments made were $0.1 million less
than budget. Similar to the revenues, the expenditures exclude the debt
redemption due to refinance of the lease revenue bonds to demonstrate a better
comparison to budget.
• Sewer – For FY21, the Sewer Fund expended $13.9 million, or 86%, of the $16.1
million appropriations. The underspending was primarily in the areas of capital
outlay and materials and services.
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• Water – For FY21, the Water Fund expended $15.6 million, or 95%, of the $16.4
million appropriations. The underspending was primarily in the areas of
contractual payments to the Water District for water extraction fees, and other
materials and services.
Requested Budget Amendments
There are two items for City Council to consider utilizing the FY21 savings. The first is
the use of savings from FY21 to fund a two-year, two police officer team pilot program
to address quality of life issues for the unhoused, as well as impacts of the unhoused on
the community. This budget amendment will seek to appropriate $890,800 over both
FY22 and FY23 and will be presented to Council on the same agenda as this report.
The second amendment pertains to appropriating funding to assist in the development
of the temporary Glen Loma Fire Station. Again, a separate staff report will be brought
before Council to formally appropriate the funds (estimated at $500,000) once the plans
are refined.
FISCAL IMPACT/FUNDING SOURCE
The Fiscal Impact of the preliminary FY21 Year-End Financial activity has been outlined
above in the report. As noted, the General Fund ended the year with better than
expected revenues and expenditures due to acceleration of the economic recovery.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Authorization to Hire and Implement the Quality of Life Peace
Officers Program
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Bryce Atkins
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Council authorize the two-year Quality of Life Officers Pilot Program, and adopt a
resolution amending the adopted budgets for Fiscal Years Ending June 2022 and 2023.
BACKGROUND
Previous Quality of Life Officers (QOL Officers) Part-Time Trial Programs
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. It was at this
meeting when the discussion regarding a team of Gilroy Police Officers proactively
patrolling to address quality of life crimes and concerns in the community was
introduced to the City Council.
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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. Of this amount, the Police Department was
designated $50,000 to fund two officers on overtime working a minimum of one five-
hour shift per week dedicated solely to quality of life issues. This was the precursor to
the adopted recommendation of the Unhoused Ad Hoc Committee (UAHC) to hire a
Quality of Life Officer(s).
On March 18, 2019 Council was presented with the results of enforcement efforts from
the additional funding to the Police Department for this overtime-only team. In the 250
hours (50 enforcements of five hours each) of patrolling performed in 2018 by the two-
officer team, the team was able to proactively make contact with 445 persons. In 2019
there were 64 quality of life directed enforcements consisting of two-officer teams
utilizing dual sport motorcycles, bicycles, and the mounted patrol. These dedicated
deployments resulted in 568 persons being proactively contacted, a 28% increase over
2018.
During the 2019 budget process, Council approved adding two additional sworn officers
for the purpose of creating a team assigned to address quality of lif e issues full time.
Since that approval for the QOL Officers, the Police Department had struggled to
maintain staffing levels due to sworn officer vacancies and long-term injuries, resulting
in delays in deploying the program. Once in a better position operationally to hire the
QOL officers, the fiscal challenges due to the pandemic resulted in these two officer
positions being frozen throughout the rest of the budget year.
Interest in Restarting and Enhancing the Program
In September, three months after the 2019 results were reported, Council formed the
Unhoused Ad Hoc Committee (UAHC) to seek input from stakeholders and develop an
action plan to address the needs of the unhoused, as well as the impacts on the
community. As the plan of action was completed, a list of 14 recommendations were
ultimately approved by the City Council. Recommendation #12 that was approved by
Council was to hire a QOL Officer(s). This item had been placed in a holding pattern
until the funding plan could be finalized and included with this report. As the projection
for Fiscal Year 2021 is now finalized the funding plan is now able to be presented, the
request for authorization of the program may proceed.
ANALYSIS
The pilot program is essentially the same as was authorized by Counc il in 2019, but
never deployed due to the challenges over the past two years. The program will involve
assigning two experienced officers on a full-time special assignment as QOL Officers.
The two will operate as a team, addressing the unhoused, connecting those willing to
resources for assistance, addressing related criminal acts, assisting in the prevention of
crimes against the unhoused or against residents and businesses from unhoused
individuals, and being additional “eyes and ears” to help inform the City of the conditions
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and happenings of the unhoused. They will also be additional “feet and hands” of the
City to share resources and aid the unhoused as part of the team efforts to connect
them with other agencies and organizations to assist them in improving their
circumstances.
A full-time employee is considered to serve 2080 hours each year. Deducting vacations,
holidays, sick leave, significant training requirements, etc. of police officers, the
remaining time is called the productive hours. For police officers, the latest productive
hours calculated by the City is 1,757 hours in the year. Since the team is working
together, the productive hours for the team are the same as an individual officer, not in
addition for the second officer. The average number of persons being proactively
contacted per hour, based on the average of the 2018 and 2019 figures reported above,
is 1.78.
FIGURE 1: PROJECTION OF PROACTIVE CONTACTS
Year 2 Officer Team Hours
for the Year
Number of
Proactive
Contacts
Proactive
Contacts per
Hour
2018 250 445 1.78
2019 320 568 1.78
Projected
Year 2 Officer Team Hours
for the Year
Potential
Number of
Proactive
Contacts
Proactive
Contacts per
Hour
2022 1,757 3,127 1.78
The potential number of proactive contacts that the QOL Officers could make in a year
as a full-time team, based on the average over the two years of the overtime teams, is
3,127. To put this into context the 2019 Santa Clara County Homeless Census and
Survey, the latest count of the homeless in Gilroy, had a total of 704 total homeless
individuals in Gilroy. While the proactive contacts may not all be unique individuals,
there is a likelihood that a large portion of the homeless in Gilroy will have interaction
with the QOL Officers, as well as the businesses and residents needing service from the
team.
Operations of the QOL Officer Team
The allocation of these two positions will increase the Police Department’s efficiency by
utilizing a comprehensive, multi-faceted and multi-disciplinary approach to addressing
quality of life and unhoused issues and concerns. This delivery model requires
partnering and collaborating with community, faith -based and government organizations
to be able to deliver this service demand. The two-officer response team will cultivate
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new partnerships and build on the existing. They will be the Department’s primary point
of contact with efforts relating to coordination of resources, referrals, and criminal act(s)
enforcement. They will be liaisons to the District and City Attorney’s office in matters
relating to repeat offenders.
The proposed functions of the Quality of Life Officers assigned are not limited to
proactive enforcement. The functions will also include:
• Attend and coordinate resource meetings with community stakeholders,
• Partner with local, county and state organizations to engage in forward-thinking
contemporary approaches,
• Coordinate proactive problem-oriented/ hot-spot policing,
• Be responsive to reported concerns, gather data to identify potential concerns
and respond accordingly,
• Be the liaisons to the Santa Clara Valley Water District (Valley Water) and assist
with the coordination of encampment clean ups,
• Enforce local and state crimes statues associated with quality of life crimes, and,
• Be flexible to schedule adjustments as needed to address issues and respond to
community needs.
Experienced officers will comprise the quality of life response team. These officers will
participate in a selection process, consistent with the Department’s specialty selection
process. This process consists of a memorandum of interest, interview, and supervisor
recommendation and feedback. This assignment will be on a rotation basis. Should the
pilot program become an ongoing service provided, the rotation may occur every four
years.
Staffing these positions will be a priority for the Police Department as new personnel are
hired and trained. Recruitment and hiring in law enforcement continues to be a
challenge nationwide. Locally, our recruitment efforts have been constant to fill
positions vacated through attrition. Staffing the quality of life positions will be a priority
for the Police Department as new personnel are hired and trained. Newly hired officers
will backfill the void left by the selected officers.
Performance Metrics:
• Most of the Teams’ success will be qualitative data recorded quarterly from calls
for service, arrests, and field interviews or referrals. Other successes will be
anecdotal and hopefully captured via personal stories of those helped and
homed with the assistance of the Quality of Life Officers and Community
Partnerships.
Funding Plan
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Staff is proposing to Council to fund the two QOL Officers from the surplus experienced
in Fiscal Year 2021. There are no dedicated funding sources, outside of the General
Fund, currently available to pay for this type of service and staffing. As reported to
Council previously, the costs for the two officers total approximately $445,400 per year.
For two years, the use of the surplus would use $890,800 in total for both years. As a
portion of Fiscal Year 2022 has already passed, the first fiscal year’s costs will be less
than $445,400, though the exact amount cannot be calculated until the specific date of
the QOL Officer Team is first deployed. If deployment is possible on January 1 , 2022,
the personnel cost would be close to $222,700.
As will be reported in another staff report scheduled for this Council Meeting, for FY21
the General Fund’s ending fund balance is $3.7 million better than projected at budget
adoption in June 2021. It is from this amount that the $890,800 is proposed to be
funded if approved by the City Council.
During the biennial budget process for Fiscal Years 2024 and 2025, staff will return to
Council to report on the accomplishments and status of the QOL Officer Pilot Program
over the two year period for further consideration if the program should continue, and
how it would be funded for the long-term should Council approve it to continue.
ALTERNATIVES
Council may:
1. Not approve the creation of the pilot program. This is not recommended as the
pilot program was a recommendation of the Unhoused Ad Hoc Committee, and
approved by the City Council.
2. Approve only one officer for the pilot program. This is not recommended by staff,
due to the potential officer safety risk in having only one officer address potential
criminal matters. Having an additional officer is prudent to increase the level of
safety for each officer providing the service.
3. Approve the pilot program, but not the budget amendment. Not recommended.
The adopted budget was based on the authorized position list already approved
by Council. If the two new officers are to be compensated from the existing
budget, it would reduce the number of available officer positions for general
patrol. The QOL Officers would have to be paid out of any vacant officer
positions, restricting them from being filled in future years.
FISCAL IMPACT/FUNDING SOURCE
For the two-year pilot program, the total fiscal impact is $890,800 ($445,400 each fiscal
year) paid for from the General Fund. The funding plan for the two-year pilot program is
drawn from the General Fund savings from Fiscal Year 2021. A budget amendment is
required to appropriate the program costs. The budget amendment resolution amends
both the FY22 and the FY23 adopted annual budget. It is not anticipated that the full
cost will be experienced in the first year, but the budget amendment is still
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recommended at the full amount, in case additional supplies and costs are experienced
in initiating this program that are currently unforeseen.
CONCLUSION
The deployment of a QOL Officer team is a recommendation of the Unhoused Ad Hoc
Committee, one adopted by the City Council as part of the action plan to help address
conditions surrounding the unhoused in the community. This two -year pilot program is
being funded from the General Fund savings experienced during FY21, currently in the
City’s reserves. The budget amendment allows for that funding to be appropriated, and
the positions to be filled.
NEXT STEPS
With approval and adoption of the budget amendment resolution, the Police Department
and Human Resources will proceed to implement the program, and hire the police
officers needed to carry out this program.
PUBLIC OUTREACH
If the program is approved, staff will prepare and co mmence a communication and
engagement effort to spread information about the program to the unhoused
community, the local service providers, and the community as a whole.
Attachments:
1. Budget Amendment Resolution - Quality of Life Officer Program
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RESOLUTION NO. 2021-XX
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY
OF GILROY FOR FISCAL YEARS 2021-2022 AND 2022-
2023 IN THE GENERAL FUND AND APROPRIATING
PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully
examined, considered and adopted the same on June 7, 20219; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to said budget for Fiscal Years 2021-2022 and 2022-2023 for the City of Gilroy in
the staff report dated November 1, 2021 for the Quality of Life Officer Program, appropriating
funding for hiring two police officers and associated costs; and
WHEREAS, the City Council has carefully examined and considered the same and is
satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT appropriations for Fiscal Years 2021-
2022 and 2022-2023 are hereby increased in the General Fund, Fund 100, by $445,400 in each
fiscal year.
PASSED AND ADOPTED this 1st day of November, 2021 by the following roll call
vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
10.C.a
Packet Pg. 97 Attachment: Budget Amendment Resolution - Quality of Life Officer Program (3521 : Quality of Life Police Officers)
RESOLUTION NO. 2021-XX
___________________________
ATTEST: Marie Blankley, Mayor
_________________________
LeeAnn McPhillips, City Clerk
10.C.a
Packet Pg. 98 Attachment: Budget Amendment Resolution - Quality of Life Officer Program (3521 : Quality of Life Police Officers)
City of Gilroy
STAFF REPORT
Agenda Item Title: Permanent Local Housing Allocation (PLHA) Plan Consortium
Agreement with the County of Santa Clara County
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
1. Adopt a resolution approving the City of Gilroy's 5-year participation in a County
consortium to receive and allocate funds totaling $623,913 ($244,259 from 2019 and
$379,654 in 2020) by the State of California from the Permanent Local Housing
Allocation (PLHA) program; and
2. Authorize the City Administrator to execute the final Santa Clara County Consortium
Agreement following an "Approved as to Form and Content" determination by the City
Attorney.
BACKGROUND
Chapter 364, Statutes of 2017 (SB2) as authorized by Health and Safety Code Section
50470, was part of a 15-bill housing package aimed at addressing the state’s housing
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shortage and high housing costs. SB2 created the Building Homes and Jobs Trust Fund
and the Permanent Local Housing Allocation (PLHA) Program. Specifically, it
established a permanent source of funding intended to increase the affordable housing
stock in California.
The legislation directs the California Department of Housing and Community
Development (HCD) to use 70% of the revenue collected, beginning in calendar year
2019, to provide financial assistance to local governments for eligible housing -related
projects and programs to assist in addressing the unmet housing needs of their local
communities. The legislation allows for the formation of consortiums to administer these
funds.
ANALYSIS
The revenue from SB2 varies from year to year, as revenue is dependent on real estate
transactions with fluctuating activity. The PLHA formula allocations are based on the
formula used to award federal Community Development Block Grant (CDBG) funds to
eligible communities in Federal Fiscal Year (FFY) 2017. The chart below shows the
estimated 2019 and 2020 PLHA allocations by eligible jurisdiction in the County. The
City will receive annual allocations of PLHA funds.
PHLA Entitlement
Jurisdictions
2019
Allocation
2020
Allocation
Combined
2019 & 2020
Allocation
City of Gilroy $244,259 $379,654 $623,913
The County is proposing to submit a noncompetitive application for the PLHA funds
allocated to the County and on behalf of participating cities which will include the
following:
1. A resolution stating that the County will enter into a Consortium Agreement with
the participating cities (Cities) and submit a joint application to the HCD for the
additive PLHA allocation for each entitlement jurisdiction.
2. A Consortium Agreement between the County and the Cities for a term of five
years, which will auto renew until a city notifies County of its intent to withdraw,
and that authorizes the County to act as the Lead Entity for the PLHA Program
and shall assume overall responsibility for ensuring that the PLHA Program is
carried out in compliance with Title 24, Part 92 of the Code of Federal
Regulations.
To meet the objectives set forth by the PLHA program, the County and Cities will agree
that PLHA funds received will be allocated toward the following eligible activities
selected based on the most pressing needs of the community:
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1. Predevelopment, development, acquisition, rehabilitation, and preservation of
multifamily, residential live-work, rental housing that is affordable to extremely
low, very low, low-, and moderate-income households, including necessary
operating subsidies.
2. Predevelopment, development, acquisition, rehabilitation, and preservation of
affordable rental and ownership housing, including Accessory Dwelling Units,
that meets the needs of a growing workforce earning up to 120% of AMI, or
150% of AMI in high cost areas.
3. Assisting persons who are experiencing, or at risk of, homelessness, including,
but not limited to, providing rapid rehousing, rental assistance, supportive/case
management services that allow people to obtain and retain housing, operating
and capital costs for navigation centers and emergency shelters, and the new
construction, rehabilitation, and preservation of permanent and transitional
housing.
4. Homeownership opportunities, including, but not limited to, down payment
assistance.
Consortium Agreement
The County has sent us a sample consortium agreement used in another jurisdiction,
attached to this staff report. The final consortium agreement for Santa Clara County is
not yet ready. The County sent out this sample to give an understanding of the nature of
such agreements and consortium structure for consideration regarding this item.
Performance Measures
Annual Reports will be provided by the County to HCD on behalf of the partnership with
the Cities pursuant to Health and Safety Code subdivision 50470(b)(2)(B)(ii)(III). The
reports will be filed annually by July 31 for the term of the Standard Agreement with
HCD. The Cities shall review and ultimately sign in agreement with the representations
made in the report. The Annual Report shall document the uses and expenditures of all
awarded allocations. The report must be signed by both the jurisdiction’s PLHA
administrator and the jurisdiction’s Chief Financial Officer. The Annual Report must
describe any proposed amendment(s) to the approved Activity and schedule.
Contract Renewals and Performance Outcomes
The term of the Consortium Agreement between the County and Cities shall be initiated
from the date the County makes the initial PLHA application. The Consortium
Agreement will include an initial five-year qualification period, which is Federal Fiscal
Year 2019, 2020, 2021 2022, and 2023. The Consortium Agreement would be
automatically renewed until or unless one or more Cities or County provides a Notice of
Termination, which must be received 30 days prior to the date when the Notice of
Funding Availability is released by the State for the next fiscal year.
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ALTERNATIVES
Council may choose not to adopt the resolution authorizing the City Administrator to
execute an agreement with the County to participate in the LHAF Consortium. This
option is not recommended, as participation in the consortium allows for administration
of the application for funding and the reporting requirements to be conducted by the
County, preserving staff time and ensuring compliance with state requirements and best
practices relating to permanent local housing efforts.
Another option would be to have City staff submit for and manage the City’s allocation
of LHAF funding. This too is not recommended, as the program would consume staff
time from other activities.
FISCAL IMPACT/FUNDING SOURCE
Additional funding in the amount of $623,913, with additional ongoing revenue of
undeterminable amounts. This funding has not been a source of revenue for the City
before and serves to further the efforts of addressing the housing challenges facing the
City. There will be a portion of the funds that will be retained by the County to administer
the program. The final amount will be determined by the final LHAF Consortium
Agreement.
CONCLUSION
By entering into the LHAF Consortium with the County and other participating cities, the
City will commence receiving LHAF funding, and have the program administered
through the County, reducing the need to allocate City staff time on administering the
program.
NEXT STEPS
With adoption of the resolution, the City Administrator and County Office of Supportive
Housing will finalize a LHAF Consortium Agreement and commence implementation of
the program. A future City Council agenda item will include recommendations for how
the LHAF funds are to be utilized.
PUBLIC OUTREACH
As activities are undertaken relating to the program, staff will communicate these efforts
to the community through social media and other methods at its service.
Attachments:
1. Resolution - PLHA Consortium Participation
2. Sample Consortium Agreement
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RESOLUTION NO. 2021-XX
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY APPROVING THE CITY’S PARTICIPATION
IN A COUNTY CONSORTIUM TO RECEIVE AND
ALLOCATE FUNDS BY THE STATE OF CALIFORNIA
PURSUANT TO THE PERMANENT LOCAL HOUSING
ALLOCATION (PLHA) PROGRAM
WHEREAS, the State of California, Department of Housing and Community
Development (Department) is authorized to provide up to $195 million to Cities and Counties for
assistance under the SB 2 Permanent Local Housing Allocation (PLHA) Program Entitlement
Jurisdiction Component from the Building Homes and Jobs Trust Fund (as described in Health
and Safety Code section 50470 et seq. (Chapter 364, Statutes of 201 7 (SB 2))); and
WHEREAS, the Department issued Permanent Local Housing Allocation Final
Guidelines (PLHA Program Guidelines) in October 2019; and WHEREAS, the State of
California, Department of Housing and Community Development (HCD) issued a Notice of
Funding Availability (NOFA) dated February 26, 2020, under the Permanent Local Housing
Allocation Program; and
WHEREAS, the Department may approve funding allocations for the PLHA Program,
subject to the terms and conditions of the PLHA Program Guidelines, NOFA, Program
requirements, the Standard Agreement, and other contracts between the Department and PLHA
grant recipients; and
WHEREAS, the City of Gilroy is an eligible local government to receive annual
allocations of PLHA funds and may apply to the Department for the City's allocation of PLHA
funds, or the City of Gilroy may participate in a local consortium and delegate another entity to
apply for and administer the City's allocation of PLHA funds in accordance with Article III
Section 300 (c) of the Program Guidelines; and
WHEREAS, the City of Gilroy agrees to participate in a County of Santa Clara PLHA
Consortium and will enter into a PLHA Consortium Agreement to authorize the County of Santa
10.D.a
Packet Pg. 103 Attachment: Resolution - PLHA Consortium Participation (3529 : Permanent Local Housing Allocation Plan Consortium)
RESOLUTION NO. 2021-XX
Clara, as the Administering Jurisdiction, to apply for and administer PLHA funds on the City’s
behalf pursuant to the terms of the PLHA Consortium Agreement; and
WHEREAS, the County, as the Administering Jurisdiction, will be responsible for all
PLHA program requirements.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Gilroy as follows:
1. The City of Gilroy certifies that it has delegated the County of Santa Clara to submit
an application on its behalf and administer the PLHA grant award for the formula
allocation of PLHA funds; and
2. The City of Gilroy certifies that its selection process of the County of Santa Clara was
accessible to the public and involved no conflicts of interest; and
3. The City of Gilroy will enter into a legally binding agreement with the County of
Santa Clara as the delegated Administering Jurisdiction; and
4. The City Administrator is authorized to execute such agreement with the County of
Santa Clara; and
5. Notwithstanding the City of Gilroy’s delegation, the City remains the administering
local government and is hereby responsible for all program requirements.
PASSED AND ADOPTED this 1st day of November, 2021 by the following roll call
vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
___________________________
ATTEST: Marie Blankley, Mayor
10.D.a
Packet Pg. 104 Attachment: Resolution - PLHA Consortium Participation (3529 : Permanent Local Housing Allocation Plan Consortium)
RESOLUTION NO. 2021-XX
_________________________
LeeAnn McPhillips, City Clerk
10.D.a
Packet Pg. 105 Attachment: Resolution - PLHA Consortium Participation (3529 : Permanent Local Housing Allocation Plan Consortium)
COOPERATION AGREEMENT (AGREEMENT) FOR THE
SANTA BARBARA COUNTY PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
PROGRAM CONSORTIUM
This Agreement is entered into by and between the City of Lompoc (hereinafter referred to as
CITY ) and the County of Santa Barbara (COUNTY), acting as the “Lead Entity” of the PLHA
Consortium for the Santa Barbara County.
WITNESSETH:
WHEREAS, In 2017, Governor Brown signed a 15-bill housing package aimed at
addressing the state’s housing shortage and high housing costs, which included the Building
Homes and Jobs Act (SB 2), which established a $75 recording fee on real estate documents to
increase the supply of affordable homes in California; and
WHEREAS, Because the number of real estate transactions recorded in each county will
vary from year to year, the revenues collected will fluctuate; and
WHEREAS, SB 2 directs the California Department of Housing and Community
Development (State HCD) to use seventy percent (70%) of the annual revenue collected for locally
administered affordable housing programs beginning in calendar year 2019, which establishes the
Permanent Local Housing Allocation program (PLHA); and
WHEREAS, one or more local governments may designate another Local government to
administer on its behalf its formula allocation of PLHA funds provided that the local governments
enter into a legally binding agreement and the funds are expended for eligible activities and consistent
with program requirements; and
WHEREAS, COUNTY has formed a Santa Barbara County PLHA Consortium
(Consortium), whereas Cities within the jurisdictional boundaries of Santa Barbara County may elect
to join the Consortium; and
WHEREAS, COUNTY has agreed to be designated as the Lead Entity of the Consortium;
and
WHEREAS, the CITY has elected to join the Consortium pursuant to Resolution # ____
passed by the City Council on _________ , and included as Exhibit B to this Agreement; and
WHEREAS, it is the desire of COUNTY and CITY that this Agreement be automatically
renewed at the end of the Term, as defined herein, unless, within sixty (60) days prior to the end of
the Term, COUNTY or CITY elects not to renew the Agreement.
10.D.b
Packet Pg. 106 Attachment: Sample Consortium Agreement (3529 : Permanent Local Housing Allocation Plan Consortium)
2
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. TRUE AND CORRECT. The above recitals are true and correct.
2. BENEFICIARY. A beneficiary is a member of the low-income public that will reside in an
affordable housing unit, shelter, or other housing developed with Consortium Funds or will utilize
one or more services provided by Recipients of Consortium Funds.
3. CITY FUNDS. CITY funds are the portion of the Consortium Funds that were identified by
State HCD as the amount of PLHA funds that would have been allocated to CITY. By execution
of this Agreement, CITY authorizes that its PLHA funds be allocated to the Consortium and
restricted for use by the eligible uses contained in the Plan. CITY may exercise control over the
eligible uses of its own funds as provided for in Section 21(b) of this Agreement.
4. CONSORTIUM. The Consortium consists of COUNTY, CITY and the cities of Goleta, and
Santa Maria (individually “Consortium Member” and together “Consortium Members”), during
the term of this Agreement.
5. CONSORTIUM FUNDS. Consortium funds include the annual allocations of PLHA funds
allocated by State HCD to the COUNTY on behalf of the Consortium.
6. COMPLIANCE WITH LAW. COUNTY and CITY agree to comply with the State of
California PLHA program and any guidelines, rules, policies, or standards of general application
as may be revised from time-to-time by the State Department of Housing and Community
Development.
7. ELIGIBLE APPLICANT. Eligible Applicant is a jurisdiction identified in the PLHA
Guidelines as Eligible Applicant, is in the County of Santa Barbara, and receives an annual
allocation of PLHA funds from the State.
8. FISCAL YEAR. The fiscal year is the period July 1 through June 30.
9. GEOGRAPHIC BOUNDARIES. The geographic areas where Consortium Funds may be used
or from which beneficiaries are located, include the jurisdictional boundaries of Consortium
members and the cities of Carpinteria, Buellton, Solvang, and Guadalupe.
10. GUIDELINES. Guidelines are the Permanent Local Housing Allocation Final Guidelines,
dated October 2019 and attached hereto as Exhibit A, as amended from time to time by State
HCD.
11. HCD. HCD is the County of Santa Barbara Division of Housing and Community Development
under the County Department of Community Services.
10.D.b
Packet Pg. 107 Attachment: Sample Consortium Agreement (3529 : Permanent Local Housing Allocation Plan Consortium)
3
12. LEAD ENTITY. COUNTY will serve as Lead Entity of the Consortium and by CITY’s
signature to this Agreement, CITY consents to COUNTY applying for, receiving, committing,
and managing Consortium Funds as authorized by this Agreement and Guidelines.
13. PLHA PROGRAM. PLHA is the Permanent Local Housing Allocation program established by
the State of California pursuant to Senate Bill 2 (2017) and administered by State HCD.
14. PLAN. The Plan is the document submitted by the Consortium to the State HCD as part of a
complete application in which the Consortium proposes to use allocated funds for at least one
eligible Activity. The Plan shall have a term of five years. In succeeding years, the Consortium
is required to obtain the approval of State HCD for any amendments made to the Plan, as set
forth in Section 302(c)(5) of the Guidelines. Attached hereto as Exhibit C is a list of Eligible
Activities selected by the Consortium to be included in the initial five (5) year Plan submitted
to State HCD. Reallocations of more than 10% of funds among activities require amendment
of the Plan, with approval granted by the governing body of the Lead Entity at a publicly
noticed public meeting. Amendments to the Plan for the succeeding five (5) years must be
approved by State HCD.
15. PROGRAM INCOME. Program Income includes funds returned by a Recipient of
Consortium Funds due to non-use of the funds for an eligible use as described in the
Guidelines, or recaptured by COUNTY for ineligible uses, or funds paid by a Recipient
pursuant to the terms and conditions of a loan agreement executed by the Recipient and
COUNTY to use Consortium Funds for an eligible use. COUNTY reserves the right to
administer and service such loans, collect payments, and reuse the funds for other eligible uses
as described in the Plan without consideration of the origin of the funds, whether from
COUNTY or Consortium members’ allocations. Such funds shall be considered Consortium
Funds and be utilized for eligible uses countywide. This provision will survive the termination
of this Agreement pursuant to Section 16 of this Agreement and, if the PLHA Program ceases
to exist and State HCD does not otherwise restrict the uses of Program Income, COUNTY
may, at COUNTY’S discretion, use Program Income for any other community benefit that
serves low-income persons, defined as household income that does not exceed eighty-percent
(80%) of the area median income as published annually by the U.S. Department of Housing
and Urban Development for the Santa Maria/Santa Barbara Metropolitan Statistical Area.
16. STATE HCD. State HCD is the State of California Department of Housing and Community
Development.
17. RECIPIENT. Recipient is a non-profit 501 (c)(3) charitable organizations or for-profit entity
authorized by written agreement (Recipient Agreement) entered into with COUNTY to expend
funds eligible uses of Consortium Funds as authorized by the Recipient Agreement.
18. TERM OF AGREEMENT. The term of this Agreement shall begin on the date signed by
COUNTY and will terminate on the earlier of a) the end of the fiscal year in which the
COUNTY or CITY no longer is an Eligible Applicant as defined in the Guidelines, or b) the
10.D.b
Packet Pg. 108 Attachment: Sample Consortium Agreement (3529 : Permanent Local Housing Allocation Plan Consortium)
4
end of the Fiscal Year in which CITY elects to terminate its participation in the Consortium
and CITY has given COUNTY notice of its intent to terminate at least sixty (60) days’ prior to
the end of the Fiscal Year, or c) State HCD has terminated its agreement with COUNTY or
Consortium, or d) the end of the fifth year of the five (5) year Plan currently in effect and
submitted to State HCD by COUNTY on behalf of the Consortium as required by the
Guidelines, subject to the Automatic Renewal provisions as described in Section 12, or e) the
State of California discontinues the PLHA program. Notwithstanding the above, if CITY
terminates this Agreement pursuant to b) above, then COUNTY reserves the right to retain
CITY Funds that had been allocated to CITY, or to the Consortium on CITY’s behalf, and that
have not been committed to one or more eligible uses during the term of this Agreement.
19. AUTOMATIC RENEWAL. This Agreement shall automatically renew for the next five Fiscal
Years of the Plan. COUNTY will submit to the State of California a new five-year Plan as
required by the State HCD outlining the planned uses of Consortium Funds allocated by State
HCD unless CITY provides COUNTY with notice of termination at least sixty (60) days prior to
the end of the fifth (5th) Fiscal Year of the Plan period.
20. AMENDMENTS. Any amendments to this Agreement must be in writing. In the event that
amendments to this Agreement are required by State HCD to meet the requirements of the
Guidelines, COUNTY and CITY will not unreasonably withhold their consent to amend the
Agreement. Notwithstanding, if an amendment is necessary to comply with the Guidelines and
no other substantial changes reallocating funds by more than 10% amongst eligible activities are
made, such changes may be made administratively by COUNTY upon notifying CITY.
21. PROGRAM ADMINISTRATION.
a. The Lead Entity assumes overall responsibility for the Consortium and Consortium
Funds, and will ensure that funds are used in accordance with the Guidelines and Plan.
The Lead Entity will perform the following activities:
i. Ensure that Consortium activities are carried out in compliance with the
Guidelines and the Plan;
ii. Prepare applications to State HCD on behalf of the Consortium to apply for PLHA
funds on behalf of Consortium members
iii. Prepare the five (5) year plan in consultation with Consortium members and
submit to State HCD;
iv. Award and distribute Consortium Funds in accordance with the Guidelines and
Section 21(a)(vii) of this Agreement, and prepare and execute Recipient
agreements;
v. Prepare and submit to State HCD required reports pursuant to the Guidelines and
provide copies to Consortium Members;
vi. Monitor Recipients’ uses of Consortium Funds, including long-term monitoring
of affordable housing developments;
vii. Publish an annual Notice of Funding Availability (NOFA) to solicit applications
from potential Recipients to use Consortium Funds for eligible activities in
10.D.b
Packet Pg. 109 Attachment: Sample Consortium Agreement (3529 : Permanent Local Housing Allocation Plan Consortium)
5
accordance with the Guidelines and Plan. The NOFA will show PLHA
allocations by Consortium Member. The NOFA may accept full applications for
any eligible use as included in the Plan and, for housing development projects,
may accept a notice of intent to apply for funds, in lieu of a full application, for
projects that will be ready to commence within the next Fiscal Year and that have
all other funding commitments in place necessary to complete the project with the
exception of Consortium Funds or State program funds, such as the low-income
housing tax credit program; provided that the applicant otherwise meets the
requirements of and is ready to submit the application to the State;
viii. Process applications through HCD’s established application review procedures
and:
1. A review team may be convened by COUNTY and may include one or
more Consortium Members;
2. COUNTY will distribute to Consortium Members a list of applicants and,
upon request by a Consortium Member, a copy of the full applications by
a potential Recipient that proposes an eligible use in the Consortium
Member’s jurisdiction;
3. Consult with a Consortium Member on any proposed use of CITY Funds.
b. Consortium Members agree to the following:
i. Cities may direct that all or a portion of their annual PLHA allocation be used
for specific use(s) to benefit their respective city or pool their funds with other
Consortium Funds to fund eligible uses countywide, provided that no one
eligible use will utilize less than the lesser of the city’s total allocation for that
Fiscal Year, or $100,000. Cities that will administer the eligible use directly
will be required to enter into an agreement with COUNTY;
ii. Cities may save or “bank” their annual allocation(s) for use in a future year for
an eligible use within their city, up to a total of three years’ allocations, except
that COUNTY as the Lead Entity preserves the right to award CITY Funds to
eligible uses without CITY’s consent, if necessary to meet certain
commitment and expenditure deadlines provided in the Guidelines. If, after
three years of banking its funds, CITY has not identified eligible use(s) for the
CITY Funds; COUNTY will include the funds in the next annual NOFA or
award the funds pursuant to Section 18 (b) ii of this Agreement;
iii. COUNTY may, at COUNTY’s discretion, set a minimum amount of funds for
a particular eligible activity for example, for a public service type activity, the
minimum amount may be set at $50,000 and for a housing development
project, the minimum amount may be set at $300,000. These amounts may be
revised by COUNTY as COUNTY’s discretion;
iv. COUNTY will keep a pipeline of proposed housing development projects that
includes projects identified from any notices of intent to apply received in
response to the annual NOFA as described in Section 21(b)(vii) of this
Agreement. Development projects will be prioritized based on project
10.D.b
Packet Pg. 110 Attachment: Sample Consortium Agreement (3529 : Permanent Local Housing Allocation Plan Consortium)
6
readiness, including zoning and planning approvals, commitment of funding
sources, and other considerations as outlined in the annual NOFA. Full
applications will be required from the applicant or Recipient in order to be
considered for an award of Consortium Funds.
v. Consortium Funds for affordable housing new construction, rehabilitation, and
preservation, unless otherwise restricted by the PLHA program, will mirror
federal HOME Investment Partnerships (HOME) program’s requirements for
income limits, rent limits, occupancy requirements, and monitoring
requirements, and PLHA funds use on projects that meet the HOME
requirements may be used by the COUNTY as HOME Match as required by
the HOME program. Income and rent limits for projects will be determined
by COUNTY for each project funded with Consortium Funds in consideration
of population served and other factors. Such restrictions will be memorialized
by the execution and recordation of a County Regulatory Agreement with
terms of not less than twenty (20) years for new construction and fifteen (15)
years for acquisition only, or rehabilitation. Income eligibility will be
established using the requirements at 24 CFR 5.609 – 612. Ongoing
monitoring of the affordable developments will utilize the federal Housing
Quality Standards or other required by the HOME program;
vi. All uses of Consortium Funds are subject to approval by the County Board of
Supervisors;
vii. COUNTY will retain the percentage of the total annual Consortium Funds for
administrative purposes as permitted by the PLHA program, currently set at
five-percent (5%).
22. RESPONSIBILITIES OF CITY. CITY authorizes COUNTY to act as Lead Entity of the
Consortium and authorizes COUNTY to administer CITY Funds pursuant to this Agreement, the
Plan, and Guidelines. CITY shall, as required by the Guidelines or when otherwise requested by
State HCD, provide written confirmation of CITY’s participation in the Consortium and
authorizes COUNTY to administer its CITY Funds. Such written authorization will be provided
by the method described in the Guidelines, which may require a resolution passed CITY’s
governing body. CITY will not reasonably withhold executing this Agreement or passing a
required resolution and will ensure that this Agreement and resolution are executed and provided
by CITY to COUNTY in a timely manner to meet any deadlines imposed by State HCD as
described in the Guidelines and/or PLHA Notices of Funding Availability.
23. INDEMNIFICATION AND INSURANCE.
A. INDEMNIFICATION
In lieu of and notwithstanding the pro rata risk allocation which might otherwise be imposed
between the parties pursuant to California Government Code Section 895.6, the parties agree
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that all losses or liabilities incurred by a party shall not be shared pro rata but instead all parties
agree that pursuant to California Government Code Section 895.4, each of the parties hereto
shall fully indemnify and hold each of the other parties, their officers, board members,
employees and agents, harmless from any claim, expense or cost, damage or liability imposed
for injury (as defined by California Government Code Section 810.8) occurring by reason of
the negligent acts or omissions or willful misconduct of the indemnifying party, its officers,
board members, employees or agents, under or in connection with or arising out of any work,
authority or jurisdiction delegated to such party under this Agreement. No party, nor any
officer, board member, employee or agent thereof shall be responsible for any damage or
liability occurring by reason of the negligent acts or omissions or willful misconduct of other
parties hereto, their officers, board members, employees or agents, under or in connection
with or arising out of any work, authority or jurisdiction delegated to such other parties under
this Agreement.
B. INSURANCE
Each party to this Agreement shall maintain its own insurance coverage, through commercial
insurance, self-insurance or a combination thereof, against any claim, expense, cost, damage,
or liability arising out of the performance of its responsibilities pursuant to this Agreement.
24. NOTICE. Any notice or notices required or permitted to be given pursuant to this agreement
must be provided either by certified mail or personal service.
25. EXCLUSION OF FUNDS. This Agreement applies only to those funds received under the
PLHA Program and Program income generated by the uses of Consortium Funds and any
matching contributions. This Agreement does not apply to or control funds other than those
described herein.
26. COUNTY’S OBLIGATION TO DISTRIBUTE FUNDS. If PLHA Funds are not awarded to
the Consortium by State HCD or if the State HCD agreement with the COUNTY or Consortium
is terminated or suspended, then this Agreement shall also terminate and COUNTY as Lead Entity
has no obligation under this Agreement or to State HCD to distribute PLHA Funds to Consortium
Members or otherwise administer the PLHA Program.
27. PLAN IMPLEMENTATION. In the event that there are insufficient responses to the NOFA
requesting funds for an eligible activity in a given Fiscal Year, COUNTY has authority to deviate
from eligible uses in the Plan and fund other eligible activities as permitted by State HCD and
contemplated in Section 20 of this Agreement. Reallocation of PLHA funds by more than 10%
among eligible activities in the Plan shall require County Board of Supervisors approval.
28. NEW CONSORTIUM MEMBERS. COUNTY may add new Consortium members to this
Consortium Agreement as permitted by the Guidelines. COUNTY and the new member city will
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mutually determine the administration of PLHA funds previously allocated to the new member
city that have not been awarded to eligible uses: the new member city may continue to utilize
allocated PLHA Funds on hand, or may remit these PLHA Funds to COUNTY to be allocated
pursuant to this Agreement. COUNTY and the new member city will mutually determine the
appropriate time to enter the Consortium and execute an agreement whether it be at the start of a
Fiscal Year or other point in time. Each new member city must:
a) Pass a resolution by its governing body as prescribed in the Guidelines;
b) Execute an agreement with COUNTY, in a form substantially similar to this Agreement;
c) Meet threshold requirements detailed in Section 302 of the Guidelines.
29. AUTHORITY TO JOIN CONSORTIUM. Each Consortium Member hereby certifies that it
is authorized to enter into this Agreement. Authorizing Resolutions from the governing body of
each local government joining the Consortium are incorporated into this Agreement as Exhibit B
and made part of this Agreement.
30. RECORDS AND REPORTS. The Lead Entity shall maintain records as required by State HCD
for a minimum of three (3) years, including and not limited to records identified in Sections 500
and 501 of the Guidelines and each participating jurisdiction respecting individual projects and
programs shall be open and available for inspection by auditors assigned by State HCD and/or the
CITY or Consortium during normal business hours of COUNTY. Each city shall submit such
reports and information as may be necessary for the Lead Entity to fulfill its obligations as
administrator of the Consortium.
31. COOPERATION IN UNDERTAKING ELIGIBLE USES UNDER PLHA. Each member
of the Consortium agrees to cooperate to undertake or to assist in the undertaking of eligible
activities specified in the Plan.
32. SEVERABILITY. Every provision of this Agreement is intended to be severable. If any provision of
this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or
impaired.
33. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of
which shall be considered an original for all purposes; provided, however, that all such
counterparts shall together constitute one and the same instrument.
Remainder of page is intentionally blank
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IN WITNESS WHEREOF, the parties have executed this agreement on the day and year
first above written. This agreement may be executed in counterparts, each of which shall be an
original and all of which together constitute one and the same agreement.
ATTEST: COUNTY:
County of Santa Barbara,
MONA MIYASATO a political subdivision of the State of California
Clerk of the Board
By:__________________________ By: _________________________________
Deputy Clerk of the Board Gregg Hart, Chair
Board of Supervisors
APPROVED AS TO ACCOUNTING By: ________________________________
FORM: Director, Community Services Dept.
BETSY SCHAEFFER, CPA
AUDITOR-CONTROLLER
By:______________________________
Deputy
APPROVED AS TO FORM
MICHAEL GHIZZONI
COUNTY COUNSEL
By: ______________________________
Deputy County Counsel
APPROVED AS TO FORM:
RISK MANAGEMENT
By: ____________________________
Ray Aromatorio, ARM, AIC
Risk Manager
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CITY OF LOMPOC:
By: ________________________
James Throop
ATTEST:
By: ________________________
Stacey Haddon, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By:________________________
Jeff Malawy
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Exhibit A
PLHA Guidelines
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Exhibit B
Consortium Member City Authorizing Resolutions
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Exhibit C
Plan
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City of Gilroy
STAFF REPORT
Agenda Item Title: Gourmet Alley Ad Hoc Committee Formation
Meeting Date: November 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Karine Decker
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Council approval to establish a Gourmet Alley Ad Hoc Committee and appoint up to
three Council Members to serve on the committee.
BACKGROUND
In September of 2020, the City Council adopted a resolution supporting the vision of
Gilroy becoming a recreation destination. The vision included the development of three
key initiatives. One of those initiatives was Gourmet Alley. In January of 2021, the City
Council held a special meeting and received a presentation from the Gilroy Downtown
Business Association concerning the Gourmet Alley Project.
An ad hoc committee is a temporary committee formed for a specific task or objective
and for a limited term which is then dissolved after the completion of the task or
achievement of the committee’s objective.
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In pursuit of the Gourmet Alley Project, an ad hoc committee is recommended to
provide an extra level of focus on the planning of the Gourmet Alley Project, leading to
successful implementation.
ANALYSIS
The purpose of the Gourmet Alley Ad Hoc Committee will be to assist with strategic
planning and implementation efforts for the Gourmet Alley Project. Committee
members will clearly identify priority action items that can be implemented in a
reasonable, defined timeline including but not limited to: identifying project challenges
and opportunities, developing an initial and sustainable financial plan, and obtaining
stakeholder/community input.
By the nature of ad hoc committees in the State of California, the Committee would
have one year to complete the tasks before it. The Committee is proposed to be
comprised from up to three Council Members, joined by City staff. The Committee
would then engage local stakeholders, such as the Gilroy Chamber of Commerce,
Downtown Business Association, Visit Gilroy, and others as may be invited by the
Committee.
ALTERNATIVES
Alternatives to the formation of a Gourmet Alley Ad Hoc Committee this evening
includes:
1. Postpone such formation to a later date and time .
2. Cancel the formation of the Committee.
3. Form an alternative ad hoc committee with a different focus.
FISCAL IMPACT/FUNDING SOURCE
None. The formation of the Gourmet Alley Ad Hoc Committee has no fiscal impact and
requires no funding source. Staff time spent in support of the Committee would be from
existing staff resources. Any future recommendations to the City Council that would
have fiscal impacts would be analyzed and presented to Council as a separate agenda
item.
CONCLUSION
Forming a Gourmet Alley Ad Hoc Committee would assist in the development of the
project plan to take the concept to a reality. With Council approval f or the formation of a
Gourmet Alley Ad Hoc Committee, and the City Council appointing the Council
committee members, the Committee will be formed and the first meeting can be
scheduled to plan out the next phases in the project .
NEXT STEPS
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If the City Council approves the formation of a Gourmet Alley Ad Hoc Committee and
appoints up to three City Council Members to serve on the committee, staff will then
work with the appointed members to schedule the initial meeting, where the Committee
would determine the path forward to identify priority action items, establish the timeline
for completion of tasks and complete the goals identified for the Committee.
PUBLIC OUTREACH
If approved, the Committee would engage stakeholder groups in order to obtain input
from the community and ensure public outreach is made. The action would also be
reported through social media and other communication methods as part of the City’s
public engagement processes.
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