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HomeMy WebLinkAbout2021-09-13 City Council Regular Meeting Agenda Packet September 13, 2021 12:20 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, SEPTEMBER 13, 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. Comments on any agenda item may be 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 Offic e by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. In compliance with the Americans with Disabilities Act, and Governor s 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 2 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 C ouncil at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City City Council Regular Meeting Agenda 09/13/2021 Page2 on the advice of its legal counsel, based on existing facts and circ umstances, 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. Employee Introductions II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations 1. Parks and Recreation Commission Annual Presentation 2. Arts and Culture Commission Presentation of Lifetime Community Service Award for Donald “Elvis” Prieto 3. Unveiling of Gilroy Sesquicentennial Time Capsule III. PRESENTATIONS TO THE COUNCIL City Council Regular Meeting Agenda 09/13/2021 Page3 PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL PUBLIC COMMENTS MAY BE SUBMITTED BY EMAIL TO: cityclerk@cityofgilroy.org, (This portion of the meeting is reserved for persons desiring to address the Council on matters not on this agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Comments on any agenda item may be 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 1:00 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in th e lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written material provided by public members for Council agenda item “public comment by Members of the Public on items not on the agenda” will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically.) A. Planning Commission Interviews 1. Staff Report: LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager 2. Public Comment 3. Possible Action: Interview candidate for an open seat on the Gilroy Planning Commission. City Council Regular Meeting Agenda 09/13/2021 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 the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears. City Council Regular Meeting Agenda 09/13/2021 Page5 A. Boards and Commission Recruitments B. 8-16-2021 City Council Meeting Minutes C. 2022 City Council Meeting Schedule D. Adoption of an Ordinance of the City Council of the City of Gilroy Approving Zone Change Application Z 20-06, a Planned Unit Development Zoning Amendment to Approve the Planned Unit Development Permit for Construction of "The Cottages at Kern" Residential Project Filed by D. R. Horton VII. BIDS AND PROPOSALS A. Award of a Contract to Rosenbauer America in the Amount Not to Exceed $684,899.18 for a Type I Fire Engine and Adoption of a Resolution of the City Council of the City of Gilroy to Enter into a Lease-Purchase Agreement with Leasing 2, Inc. to Finance the Type I Fire Engine Purchase for Seven Years at the Interest Rate of 2.03% for a Financing Cost Not to Exceed $56,857.36 1. Staff Report: LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager 2. Public Comment 3. Possible Action: a) Award contract not to exceed $684,899.18 (Base price of $628,676 plus $56,223.18 sales tax) to Rosenbauer America for a Type I Fire Engine, Project No. 21-PW-262. b) Adopt a resolution of the City Council of the City of Gilroy authorizing the City Administrator to enter into a seven-year lease-purchase Agreement with Leasing 2, Inc. to finance the purchase of the Type I Fire Engine in the total amount of $684,899.18 purchased from Rosenbauer America for a financing cost not to exceed a rate of 2.03% or $56,857.36. VIII. PUBLIC HEARINGS IX. UNFINISHED BUSINESS A. Approval of the City of Gilroy's 5-Year Street Repair Program 1. Staff Report: Gary Heap, City Engineer/Transportation Engineer 2. Public Comment 3. Possible Action: Approval of the 5-Year Street Repair Program. B. Selection of Alternate Voting Delegate for the League of California Cities 2021 Annual Conference City Council Regular Meeting Agenda 09/13/2021 Page6 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: Appointment of a Council Member to serve as the alternate voting delegate for the City of Gilroy at the League of California Cities 2021 Conference. X. INTRODUCTION OF NEW BUSINESS A. Presentation of Information on Reach Codes Pertaining to Building Codes Adopted by the City of Gilroy 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: None – this is an informational item. B. HouseKeys Quarterly Report 1. Staff Report: Karen Garner, Community Development Director 2. Public Comment 3. Possible Action: Receive report. XI. CITY ADMINISTRATOR'S REPORTS 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); Properties:10th Street Bridge: APNs 808 - 19-007, 799-30-006, 799-30-007, 808-19-020, 808-50-999, Thomas Luchessa Bridge: APNs 808-21-025, 808-21-023, 808-21-021, 808-21-018, New Fire Station: APNs 808-18-003, 808-19-029 Negotiators: Jimmy Forbis, City Administrator; Other Party to Negotiations: Glen Loma Corporation, John M. Filice, Jr.; Negotiating Price and terms of payment regarding purchase, sale B. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION; Paragraph (1) of Subdivision (d) of 54956.9 and GCC Section 17A.11(3)(a); Case: Law Foundation of Silicon Valley v. City of Gilroy, Superior Court, County of Santa Clara, Case No. 20CV362347, filed: January 22, 2020 ADJOURNMENT MEETING DATES FUTURE MEETING DATES SEPTEMBER 2021 14* Transit and the Gilroy Transit Center – 6:00 p.m. 20* Regular Meeting - 6:00 p.m. OCTOBER 2021 4* Regular Meeting - 6:00 p.m. 18* Regular Meeting - 6:00 p.m. City Council Regular Meeting Agenda 09/13/2021 Page7 NOVEMBER 2021 1* Regular Meeting - 6:00 p.m. 15* Regular Meeting - 6:00 p.m. DECEMBER 2021 6* Regular Meeting - 6:00 p.m. * meeting is webstreamed and televised City of Gilroy STAFF REPORT Agenda Item Title: Interview for an Open Seat on the Gilroy Planning Commission for Possible Future Appointment on September 20, 2021 Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Anne Bybee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability  Public Engagement RECOMMENDATION Interview candidate for an open seat on the Gilroy Planning Commission. BACKGROUND The City Council opened a recruitment for a vacancy on the Planning Commission with applications due on August 27, 2021. At the close of the four week application period, the following application was received (copy attached): Board/Commission # of seats open # of applications 3.A Packet Pg. 8 Planning Commission 1) Stefanie Elle 1 seat with a term ending 12/31/2023 1 CONCLUSION The interview process has been scheduled with the City Council at this evening’s meeting, and potential appointment is scheduled to take place at the September 20, 2021 regular meeting. Attachments: 1. Elle Stefanie Planning Commission Applicant 9.13.2 1 3.A Packet Pg. 9 3.A.a Packet Pg. 10 Attachment: Elle Stefanie Planning Commission Applicant 9.13.21 (3441 : Planning Commission Interviews) 9/7/21, 9:10 AM https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2210 https://www.cityofgilroy.org/Admin/FormCenter/Submissions/Print/2210 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? *** Please note I got an error when submitting, so I am submitting again *** hank you for considering my application, I have put together a list of qualifications that I feel are important for this position and how I meet those requirements: 1. I am highly skilled in listening to what others have to say. It's important to listen to ideas, compare it with my past experience and then formulate my own opinion while keeping Gilroy's development standards in mind. It's important to listen and understand different perspectives so as to put forth viable ideas. 2. I have good research skills to understand community ordinances. While not having been on a planning commission before, I have done a lot of research in local ordinances and laws. It's important to have knowledge or understanding of issues facing the community and of local laws to make educated suggestions - including failures and successes of the past. This includes those successes and failures of other communities. 3. I believe that I am fair and open minded. It's critical to have the ability to listen to both sides of testimony and make a fair decision. It's important to have sensitivity to both community members and applicants (developers) while maintaining standards. 4. As an engineer, I am very organized and prepared. I am willing to read and learn details for the meetings and visit the sites to be discussed whenever possible. 5. Having the ability to communicate publicly is also very important. I have had to work with the BBC, the NY Stock Exchange as well as other companies at an executive level and at an engineering level. Additionally, the ability to communicate to large groups of people succinctly is also important, of which I have experience in. 6. My job and education has instilled in me the ability to think analytically. I am new to this community. We have purchased our home here and plan to retire here in Gilroy. We are very excited to get involved in our new home and are dedicated to the growth of Gilroy while keeping that small town community. I am very excited to get involved in our new city and I am dedicated to the growth and revitalization of Gilroy while keeping that small town community feeling. The passion of the people around me, the longevity of their involvement and the welcoming attitude inspires me. While I have not been in a position like this in the past, I have had some legal battles that I have won (successfully researched and have removed an illegal lien on a home). I stopped an unfair law in California proving with evidence from other cities' research that the ordinance would not stop crime, but instead put an unfair burden on hard working citizens. Finally, I researched tenant rights during a harassment situation and won. I hold my Masters from Pepperdine and my bachelor's degree from Berkeley for Psychology. I am self-taught as a network engineer for wired, wireless, security and storage. I bring a fresh perspective to Gilroy while embracing the community here! 3.A.a Packet Pg. 11 Attachment: Elle Stefanie Planning Commission Applicant 9.13.21 (3441 : Planning Commission Interviews) City of Gilroy STAFF REPORT Agenda Item Title: Boards and Commission Recruitments Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: City Clerk Submitted By: LeeAnn McPhillips Prepared By: Anne Bybee Anne Bybee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability  Public Engagement RECOMMENDATION Opening of Recruitment for Current Vacancies on Various Boards, Committees and Commissions RECOMMENDATION Open a four-week recruitment period for openings on the following Boards, Committees and Commissions: • Housing and Neighborhood Revitalization Committees – one term expiring 12/31/2022 • Open Government Commission – one term expiring 12/31/2024 BACKGROUND 6.A Packet Pg. 12 The City has received resignations from a seated member of the Housing and Neighborhood Revitalization Committee who is unable to fulfill his appointed term which expires 12/31/2022 and a seated member of the Open Government Commission who is unable to fulfill his appointed term which expires 12/31/2024. CONCLUSION Staff recommends opening a four-week recruitment period closing on October 15, 2021 and scheduling Council interviews to fill the vacant seats at the November 1, 2021 Council meeting with anticipated appointments at the November 15, 2021 Council meeting. PUBLIC OUTREACH Recruitment material will be distributed through all City social media outlets and on the City website. 6.A Packet Pg. 13 1 City Council Meeting Minutes 08/16/2021 City of Gilroy City Council Meeting Minutes August 16, 2021 I. OPENING A. Call to Order The meeting was called to order at 6:00 PM by Mayor Marie Blankley. 1. Pledge of Allegiance Council Member Leroe-Muñoz led the pledge of allegiance. 2. Invocation There was no invocation. 3. City Clerk's Report on Posting the Agenda Management Assistant Ruiz reported the agenda was posted on Friday, August 13th at 3:55 p.m. Attendee Name Title Status Arrived Marie Blankley Mayor Remote Rebeca Armendariz Council Member Remote Dion Bracco Council Member Remote Zach Hilton Council Member Absent Peter Leroe-Muñoz Council Member Remote Carol Marques Council Member Remote Fred Tovar Council Member Remote B. Orders of the Day Mayor Blankley announced that the Council was participating remotely under the Governor's order and she then provided details on the process of public participation. C. Employee Introductions Police Captain Smith introduced two new employees: Public Safety Communicator, Samantha Schuck and Police Officer, Angel Velasquez. II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations 1. Bicycle Pedestrian Commission Annual Presentation to Council Chairperson Patrick Flautt presented the report. III. PRESENTATIONS TO THE COUNCIL - NONE IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco - The Gilroy Youth Task Force received $20,000 dollars in grant money; and will be able to apply for additional grants and host 6.B Packet Pg. 14 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 2 City Council Meeting Minutes 08/16/2021 fundraiser's for the program. If anyone wishes to contribute and donate to the GYTF, contact Dion Bracco, Peter Leroe-Muñoz, or Carol Marques. Council Member Armendariz - Historic Heritage Committee meeting will report back at the next Council meeting. Attended the Silicon Valley Clean Energy Authority JPA Board on behalf of Council Member Hilton - the board adopted a resolution that will help save two-million dollars annually; prepaying for 30 years worth of transactions. The investment will help with resources for financial assistance in paying energy bills. Electrical vehicle adoption CV2030; goal is to 100% zero emission 2030. Council Member Marques - Reported on the upcoming downtown events; Downtown Live - August 19th, Gourmet Alley - August 28th, and Porchfest - September 25th. Council Member Tovar - No report. Council Member Leroe-Muñoz - Reported on the unveiling of Brownell Middle School. Valley Water District communicated on the water shortage emergency and conservation; for more information visit the City's website. Mayor Blankley - Reported the next Gilroy Economic Partnership meeting will be on August 25th; discuss and publicize regarding the Sharks. VTA voted in favor of the Gilroy City Council to delay (2 months) progress of the 150 unit authorizing an RFO for this development. V. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Armendariz asked if the Police Department could provide focus and resources to the Gilroy community with the influx of the Fentanyl drug and deaths. Council asked City Administrator to bring a report back to City Council with further information on this topic and what the Police Department is doing to address this issue. VI. CONSENT CALENDAR (ROLL CALL VOTE) Council Member Marques asked to remove item B from the consent agenda; additional information needed from City Staff. Motion was made by Council Member Marques, seconded by Council Member Armendariz to remove item B from consent agenda. RESULT: APPROVE [UNANIMOUS] MOVER: Carol Marques, Council Member SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton A. Approval of a Notice of Acceptance of Completion for the Fuel Station Secondary Containment Components Repair Project No. 21-PW-264 and Approval of a Final Contract with Balch Petroleum Contractors & Builders, Inc in the Amount of $171,783.46 6.B Packet Pg. 15 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 3 City Council Meeting Minutes 08/16/2021 B. Hecker Pass Apartments, Quitclaim of Relinquishment of Vehicular Access Rights (Abutters Rights) (Removed from Consent Calendar) C. 8-2-21 City Council Meeting Minutes (Councilmember Leroe-Munoz abstained) ITEMS CONSIDERED SEPARATE FROM CONSENT CALENDAR: B. Hecker Pass Apartments, Quitclaim of Relinquishment of Vehicular Access Rights (Abutters Rights) Staff responded to Council Member Marques’ questions about ingress/egress. Motion was made by Council Member Marques, seconded by Council Member Armendariz, to adopt Resolution 2021-43 approving Quitclaim of Relinquishment of Vehicular Access Rights (Abutters Rights) for Hecker Pass Apartments, and passed 6-0-0-1, Council Member Hilton absent. VII. BIDS AND PROPOSALS A. Approval of Single Source Contract in the Amount of $196,007 with Stryker Emergency Care for the Purchase of Seven (7) LifePack 15 Monitor/Defibrillators, Including a Discounted 4-year Maintenance Agreement. Chief Wyatt presented the report. Public Comment was opened. No public comment. Public Comment was closed. Motion was made by Council Member Marques, seconded by Council Member Tovar to award a single source contract to Stryker Emergency Care in the amount of $196,0007 for the purchase of seven (7) LifePack 15 Monitors/Defibrillators, including a discounted 4-year maintenance agreement, and authorized the City Administrator to execute the contract and associated documents. Motion Passes: 6-0-0-1 (Absent Hilton) 6.B Packet Pg. 16 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 4 City Council Meeting Minutes 08/16/2021 Possible Action: Award a single source contract to Stryker Emergency Care in the amount of $196,007 for the purchase of seven (7) LifePack 15 Monitors/Defibrillators, including a discounted 4-year maintenance agreement, and authorize the City Administrator to execute the contract and associated documents. RESULT: APPROVE [UNANIMOUS] MOVER: Carol Marques, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton VIII. PUBLIC HEARINGS A. Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing and Approval of the Issuance of Multi-family Housing Revenue Bonds by the California Municipal Finance Authority for an Affordable Housing Project Located at 1520 Hecker Pass Highway Senior Planner Tambornini presented the report. Disclosure of Ex-Parte Communications - None. Public Hearing was opened. No public comments. Public Hearing was closed. Motion was made by Council Member Leroe-Muñoz, seconded by Council Member Bracco to adopt resolution 2021-44 of the City Council of the City of Gilroy approving the issuance of multifamily housing revenue bonds in an aggregate principal amount not to exceed $40,000,000 for the purpose of financing or refinancing the acquisition and construction of Hecker Pass Apartments project. Motion Passes: 6-0-0-1 (Absent Hilton) 6.B Packet Pg. 17 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 5 City Council Meeting Minutes 08/16/2021 Possible Action: Adopt a Resolution of the City Council of the City of Gilroy approving the issuance of multifamily housing revenue bonds in an aggregate principal amount not to exceed $40,000,000 for the purpose of financing or refinancing the acquisition and construction of Hecker Pass Apartments project. (Roll Call Vote) RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Dion Bracco, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton B. Adoption of Mitigated Negative Declaration; Approval of Planned Unit Development, the Tentative Map, and Architectural and Site Review Permit for the Cottages at Kern Planned Unit Development Residential Subdivision Project. Planner I Contreras presented the report. Disclosure of Ex-Parte Communication - None. Public Hearing was opened. Public member Carolyn Schimandle spoke. Public Hearing was closed. Possible Action: a) Motion was made by Council Member Tovar, seconded by Council Member Leroe-Muñoz to review and approve Resolution 2021-45 adopting the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA). Motion Passes: 6-0-0-1 (Absent Hilton) 6.B Packet Pg. 18 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 6 City Council Meeting Minutes 08/16/2021 Possible Action: a) Review and adopt the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA); and b) Introduce an ordinance to approve Planned Unit Development Z 20- 06 as requested, subject to certain findings; and c) Introduce a resolution to approve Tentative Map TM 20-06, as requested, subject to certain findings; and d) Introduce a resolution to approve Architectural and Site Review Permit AS 20-20 as requested, subject to certain findings and conditions. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton x Adoption of Mitigated Negative Declaration; Approval of Planned Unit Development, the Tentative Map, and Architectural and Site Review Permit for the Cottages at Kern Planned Unit Development Residential Subdivision Project. Possible Action: b) Motion was made by Council Member Bracco, seconded by Council Member Leroe-Muñoz to introduce Ordinance 2021-03 to approve Planned Unit Development Z 20-06 as requested, subject to certain findings. Motion Passes: 6-0-0-1 (Absent Hilton) Possible Action: a) Review and adopt the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA); and b) Introduce an ordinance to approve Planned Unit Development Z 20- 06 as requested, subject to certain findings; and c) Introduce a resolution to approve Tentative Map TM 20-06, as requested, subject to certain findings; and d) Introduce a resolution to approve Architectural and Site Review Permit AS 20-20 as requested, subject to certain findings and conditions. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton x Adoption of Mitigated Negative Declaration; Approval of Planned Unit Development, the Tentative Map, and Architectural and Site Review Permit for the Cottages at Kern Planned Unit Development Residential Subdivision Project. 6.B Packet Pg. 19 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 7 City Council Meeting Minutes 08/16/2021 Possible Action: c) Motion was made by Council Member Tovar, seconded by Council Member Leroe-Muñoz to adopt Resolution 2021-46 approving Tentative Map TM 20-06, as requested, subject to certain findings. Motion Passes: 6-0-0-1 (Absent Hilton) Possible Action: a) Review and adopt the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA); and b) Introduce an ordinance to approve Planned Unit Development Z 20- 06 as requested, subject to certain findings; and c) Introduce a resolution to approve Tentative Map TM 20-06, as requested, subject to certain findings; and d) Introduce a resolution to approve Architectural and Site Review Permit AS 20-20 as requested, subject to certain findings and conditions. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton x Adoption of Mitigated Negative Declaration; Approval of Planned Unit Development, the Tentative Map, and Architectural and Site Review Permit for the Cottages at Kern Planned Unit Development Residential Subdivision Project. Possible Action: c) Motion was made by Council Member Tovar, seconded by Council Member Leroe-Muñoz to adopt Resolution 2021-47 to approve Architectural and Site Review Permit AS 20-20 as requested, subject to certain findings and conditions. Motion Passes: 6-0-0-1 (Absent Hilton) 6.B Packet Pg. 20 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 8 City Council Meeting Minutes 08/16/2021 Possible Action: a) Review and adopt the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA); and b) Introduce an ordinance to approve Planned Unit Development Z 20- 06 as requested, subject to certain findings; and c) Introduce a resolution to approve Tentative Map TM 20-06, as requested, subject to certain findings; and d) Introduce a resolution to approve Architectural and Site Review Permit AS 20-20 as requested, subject to certain findings and conditions. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton IX. UNFINISHED BUSINESS A. Appointments to Fill Vacancies on Boards & Commissions City Administrator presented the report. Public comment was opened. No public comment. Public comment was closed. Possible Action: Motion was made by Council Member Armendariz, seconded by Council Member Marques to appoint members to the vacant seats as follows: Arts & Culture Commission (term expires 12/31/2022) – Lisa Carter; Housing & Neighborhood Revitalization Committee (term expires 12/31/2024) – Carissa Purnell; Library Commission (term expires 12/31/2024) – Gabriela Kim; and Physically Challenged Board of Appeals (term expires 12/31/2024) – Tracy Stephens. Possible Action: Appoint members to the vacant seats on the Arts & Culture Commission, Housing & Neighborhood Revitalization Committee, Library Commission, and Physically Challenged Board of Appeals RESULT: APPROVE [UNANIMOUS] MOVER: Rebeca Armendariz, Council Member SECONDER: Carol Marques, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton X. INTRODUCTION OF NEW BUSINESS A. Customer Service Strategy Metrics, Implementation Measures, and Timelines Customer Service Manager Wyrick presented the report. 6.B Packet Pg. 21 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 9 City Council Meeting Minutes 08/16/2021 Public comment was opened. No public comments. Public comment was closed. Feedback was provided to staff to focus on the time aspect, time is money. Possible Action: Receive Report and provide feedback. B. Selection of Voting Delegate for the League of California Cities 2021 Annual Conference Mayor Blankley presented the report. Public Comment was opened. No public comment. Public Comment was closed. Council Member Marques asked if the appointee could provide a full report after the conference. Possible Action: Motion was made by Council Member Leroe-Muñoz, seconded by Council Member Marques to the appointment of Council Member Tovar to serve as voting delegate for the City of Gilroy at the League of California Cities 2021 Conference. Possible Action: Appointment of a Council Member to serve as voting delegate for the City of Gilroy at the League of California Cities 2021 Conference. RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Carol Marques, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton C. Authorize Funding for Improvements at the Gilroy Golf Course Finance Director Sangha presented the report. Public comment was opened. No public comments. Public comment was closed. Possible Action: 6.B Packet Pg. 22 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 10 City Council Meeting Minutes 08/16/2021 1. Motion was made by Council Member Bracco, seconded by Council Member Armendariz to authorize funding for capital improvements at the Gilroy Golf Course in the amount of $113,900. Motion Passes: 6-0-0-1 (Absent Hilton) Possible Action: 1. Authorize funding for capital improvements at the Gilroy Golf Course in the amount of $113,900. 2. Adopt a resolution appropriating the $113,900 form Capital Projects Fund (400) for the related improvements. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton x Authorize Funding for Improvements at the Gilroy Golf Course Possible Action: 2. Motion was made by Council Member Tovar, seconded by Council Member Marques to adopt Resolution 2021-47 appropriating the $113,900 form Capital Projects Fund (400) for the related improvements. Motion Passes: 6-0-0-1 (Absent Hilton) Possible Action: 1. Authorize funding for capital improvements at the Gilroy Golf Course in the amount of $113,900. 2. Adopt a resolution appropriating the $113,900 form Capital Projects Fund (400) for the related improvements. RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Carol Marques, Council Member AYES: Blankley, Armendariz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton XI. CITY ADMINISTRATOR'S REPORTS City Administrator reported on two items: 1) Reminded the Community of the upcoming Local Agency Formation Commission meeting being held via Zoom on Tuesday, August 17 from 6:00 p.m. - 7:00 p.m. 2) City Council first in-person meeting is scheduled for September 13, 2021. Masks will be required indoors. XII. CITY ATTORNEY'S REPORTS No report. 6.B Packet Pg. 23 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) 11 City Council Meeting Minutes 08/16/2021 XIII. CLOSED SESSION City Attorney led into closed session. Public comment was opened. No public comment. Public comment was closed. A. Conference with Legal Counsel – Existing Litigation; Paragraph (1) of Subdivision (d) of 54956.9 and Gilroy City Code Section 17A.11(3)(a); Case Name: Miriam Smith vs. City of Gilroy, et al.; United States Northern District Court of California San Jose Division; Case No. 5:21-cv-00313-VKD, Filed January 13, 2021. City Attorney Faber led Council into the closed session at 7:22 p.m. Public comment was opened. No public comment. Public comment was closed. ADJOURNMENT Mayor Blankley adjourned the regular City Council meeting to closed session at 7:22 p.m. MEETING DATES AUGUST 2021 23* Special Joint Meeting with Santa Clara Valley Water District and City of Morgan Hill via Zoom - 6:00 p.m. SEPTEMBER 2021 13* Regular Meeting - 6:00 p.m. 20* Regular Meeting - 6:00 p.m. OCTOBER 2021 4* Regular Meeting - 6:00 p.m. 18* Regular Meeting - 6:00 p.m. * meeting is webstreamed and televised /s/ LeeAnn McPhillips Interim City Clerk 6.B Packet Pg. 24 Communication: 8-16-2021 City Council Meeting Minutes (CONSENT CALENDAR (ROLL CALL VOTE)) City of Gilroy STAFF REPORT Agenda Item Title: 2022 City Council Meeting Schedule Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: City Clerk Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Anne Bybee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve the 2022 City Council Meeting Schedule. EXECUTIVE SUMMARY Staff has prepared the attached draft 2022 City Council Meeting Schedule following the scheduling pattern approved by Council in prior years. The Council Meeting schedule is included in various city publications as well as posted on the City of Gilroy website. Therefore, advance approval is requested given upcoming publication deadlines such as the Recreation Activity Guide. Staff is requesting review and approval of the 2022 City Council Meeting Schedule as attached. 6.C Packet Pg. 25 Attachments: 1. DRAFT 2022 City Council Meeting Schedule 6.C Packet Pg. 26 2022 GILROY CITY COUNCIL MEETING SCHEDULE - DRAFT Gilroy City Council Chambers 7351 Rosanna Street, Gilroy, CA 6:00 p.m. Monday, January 3, 2022 Monday, January 17, 2022 (City Holiday, MOVED to January 24, 2022)* Monday, January 24, 2022* Monday, February 7, 2022 Monday, February 21, 2022 (City Holiday, MOVED to February 28, 2022)* Monday, February 28, 2022* Monday, March 7, 2022 Monday, March 21, 2022 Monday, April 4, 2022 Monday, April 18, 2022 Monday, May 2, 2022 Monday, May 16, 2022 Monday, June 6, 2022 Monday, June 20, 2022 Tuesday, July 5, 2022 Single Meeting in July - first day of the month not a holiday, or a Friday, Saturday or Sunday* Monday, August 1, 2022 Monday, August 15, 2022 Monday, September 5, 2022 (City Holiday, MOVED to September 12, 2022)* Monday, September 12, 2022* Monday, September 19, 2022 Monday, October 3, 2022 Monday, October 17, 2022 Monday, November 7, 2022 Monday, November 21, 2022 Monday, December 5, 2022 * If a regular meeting falls on a holiday, it is rescheduled to the following Monday, with the exception of the single regular meeting in July, which will fall on the first day of the month not a holiday, or a Friday, Saturday or Sunday Adopted: 9/ /2021 6.C.a Packet Pg. 27 Attachment: DRAFT 2022 City Council Meeting Schedule (3443 : 2022 City Council Meeting Schedule) City of Gilroy STAFF REPORT Agenda Item Title: Adoption of an Ordinance of the City Council of the City of Gilroy Approving Zone Change Application Z 20-06, a Planned Unit Development Zoning Amendment to Approve the Planned Unit Development Permit for Construction of "The Cottages at Kern" Residential Project Filed by D. R. Horton Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Miguel Contreras Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt an ordinance of the City Council of the City of Gilroy approving zone change application Z 20-06, a planned unit development zoning amendment to approve the planned unit development permit for construction of “The Cottages at Kern” residential project filed by D.R. Horton. Executive Summary: The ordinance of the City Council of the City of Gilroy approving zoning application Z 20-06, a planned unit development zoning amendment filed by D.R. Horton for a residential development of a 3.74-acre site on Kern Ave., was introduced by Council at 6.D Packet Pg. 28 its August 16, 2021 meeting by a unanimous vote of 6 -0, with one Council Member absent. Council is requested to adopt the attached ordinance consistent with its August 16th, 2021 action to approve the project and related entitlements (AS 20-20 and TM 20-06). The ordinance will be in effect thirty (30) days from the date of Council action to adopt the ordinance amendment. Attachments: 1. Location Map 2. City Council Staff Report 3. CC Ordinance Z 20-06 6.D Packet Pg. 29 City of Gilroy Kern Cottages AS 20-20, TM 20-06 and ZPUD 20-06 Location Map Date:July 15, 2021Drawn By:4,000 Miguel Contreras Checked By:Miguel Contreras1:Sheet:1:1Scale: 6.D.a Packet Pg. 30 Attachment: Location Map (3433 : Ordinance Adoption for The Cottages at Kern) City of Gilroy STAFF REPORT Agenda Item Title: Adoption of Mitigated Negative Declaration; Approval of Planned Unit Development, the Tentative Map, and Architectural and Site Review Permit for the Cottages at Kern Planned Unit Development Residential Subdivision Project. Meeting Date: August 16, 2021 From: Jimmy Forbis, City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Miguel Contreras Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION a) Review and adopt the Mitigated Negative Declaration prepared for the project, based on findings required by the California Environmental Quality Act (CEQA); and b) Introduce an ordinance to approve Planned Unit Development Z 20 -06 as requested, subject to certain findings; and c) Introduce a resolution to approve Tentative Map TM 20-06, as requested, subject to certain findings; and d) Introduce a resolution to approve Architectural and Site Review Permit AS 20 -20 as requested, subject to certain findings and conditions. 6.D.b Packet Pg. 31 Attachment: City Council Staff Report (3433 : Ordinance Adoption for The Cottages at Kern) BACKGROUND Project Summary: D.R. Horton requests approval of zone change application (Z 20-06) for a planned unit development requesting reductions to lot size and setback standards, a tentative map (TM 20-06) to subdivide a vacant 3.74-acre site into 29 single-family residential lots, 0.12 acres of private open space and 0.82 acres of private streets, and an architectural and site review permit (AS 20-20) for development of 29 single-family homes consisting of three (3) architectural styles and three (3) floor plans. The vacant 3.74-acre site located at 9130/9160 Kern Ave. (APN 790-17-002/002), between Mantelli Dr. and Tatum Ave. This application was accepted as complete prior to adoption of the 2040 General Plan (November 4, 2020). Because the proposal was complete under the 2020 General Pla n, development may proceed and has been processed under the land use policies. Environmental Review: In accordance with the California Environmental Quality Act (CEQA), an initial study was prepared to evaluate any potentially significant adverse effects of the proposed project on the environment. CEQA allows use for tiering where a project specific impact has been adequately evaluated by a prior environmental document. Therefore, this project is being “tiered” from the Environmental Impact Report (EIR) (SCH#2015082014) prepared for the recently adopted 2040 General Plan. The initial study resulted in preparation of a Negative Declaration (SCH# 2021060179) which concluded the project will not have any unique environmental effects that were not adequately evaluated in the 2040 General Plan EIR. The Negative Declaration has been circulated for public review in compliance with state law, by publication of a notice in the Gilroy Dispatch, transmittal of the documents to the state for publication on CEQAnet, posting of a notice at the Gilroy Public Library and the Santa Clara County Recorder’s Office, and publication on the Planning Division webpage for a 30-day minimum review period. The review period for this project was from April 30, 2021 through June 3, 2021. Planning Commission Review: On August 5, 2021, the Planning Commission held a public hearing on the project entitlements, and environmental review document prepared for the project. The Planning Commission recommended adoption of a CEQA Negative Declaration and approval of the project entitlements with specific findings and conditions. Additionally, the Planning Commission included two additional conditions to the Architectural and Site Review approval and requested clarification to a Tentative Map condition. The two conditions added would require: (1) the applicant to provide a pre-loaded Clipper transit card to new owners and (2) limit street trees on Kern Ave. to any species except Crape Myrtle. The Tentative Map condition that clarification relates to what drainage system the project will drain on to. The City Council must consider approval of the tentative map, rezoning and architectural and site review permit requests. ANALYSIS 6.D.b Packet Pg. 32 Attachment: City Council Staff Report (3433 : Ordinance Adoption for The Cottages at Kern) The requested land use entitlements (Z 20-06, TM 20-06 and AS 20-20) are proposed to create a residential community within the Neighborhood District High land use area (formerly Medium Density). Approval of a Planned Unit Development zoning overlay is required for the single-family detached, small lot development project. The p roject compliance with applicable policies and requirements are summarized as follows: 2020 General Plan Consistency: The project application was submitted and deemed complete under the 2020 General Plan. Therefore, the project can proceed subject to compliance with the 2020 General Plan land use policies. Page 4-6 and 4-7 of the 2020 General Plan identify the density anticipated for the Medium Density Residential/MDR designation (attached). The project density of 8.3 dwelling units per acre conforms to the minimum requirements of the 2020 General Plan Medium Density’s designation of 8 to 16 dwelling units per acre. Staff notes that the City uses net acreage to calculate density, which is the area minus roads, right of way, open space areas and/or drainageways. Additional information can be found on the attached Planning Commission Staff report (pg 5). 2040 General Plan Information: Although the project is not covered by the 2040 General Plan, the following information is provided to inform the Council that the project would not constitute a “down zone”. Under the 2040 General Plan, the project is within the Neighborhood High land use designation. This designation applies the following mix of densities to the entire “Neighborhood District High” land use area : Density Ranges 0-7 du/ac 7-9 du/ac 9-16 du/ac 16-30 du/ac Neighborhood District High 60% max. 5% min. 25% min. 10% min. Note: Neighborhood District Percentages are based on land area. The subject parcel falls into the 7-9 dwelling units/acre category. The lowest category (0-7 du/ac) is the only density category that has a maximum percentage. Thus, projects that fall into the higher density categories are encouraged and supported. Due to this, the project would be in compliance with Senate Bill 330 as no loss of density would be occurring. PUD Rezoning: The intent of the PUD Planned Unit Development combining district (sec. 30.26.10) is to provide diversity to development standards (exceptions from base zoning standards) and promote unified planning and development, economical and efficient land use, a higher standard of amenities, appropriate and harmonious variety in physical development, creative design, and an upgrading of the urban environment . While ensuring adequate standards related to the public health, safety, and general welfare of the community. 6.D.b Packet Pg. 33 Attachment: City Council Staff Report (3433 : Ordinance Adoption for The Cottages at Kern) PUD Development Standards. The project proposes exceptions to the minimum R3 site development standards. The lots would have reduced front setbacks of 13 to 25.5 feet (instead of 26 feet) and reduced side setbacks are proposed to be a minimum 5’ (instead of 12 feet). Additionally, the project proposes reduced lot sizes from 3,038 to 7,389 sf, instead of the 8,880 sf standard R3 minimum. The development would include private roads and common lot, which would be maintained by a homeowner association. PUD Amenities. The project proposes the following amenities as required for PUD approval, pursuant to Section 30.50.50: • Enhanced project entry feature with precast masonry walls and decorative pavement. • Area to incorporate public art, adjacent to the entry walls, which would be subject to separate submittal for review and approval by the City. • Higher quality of building design with variation in architecture styles, elevations and exterior materials are included. • Higher quality of landscaping design with specific landscaping palettes designed for each respective architectural building styles (e.g. an Architectural “style - specific” plant palette). • Increased open space with a 0.12-acre common/open space including “tot-lot” and two benches. The PUD rezoning may be supported with the exceptions requested, and subject to provision of the higher quality design and amenities proposed. Vesting Tentative Map: The proposed Tentative Map has been evaluated and was found to comply with all applicable City and Subdivision Map Act standards, more details can be found in the attached Planning Commission Staff report (pg. 9). Per City Code Section 21.41.(i), initial approval of a tentative map is valid for twenty-four (24) months. Such approval may only be extended at the Council’s discretion. Additionally, Per Chapter 4.5 of the California Subdivision Map Act, the rights conferred by a vesting map shall be valid for 12 months beyond final recordation of the map. Architectural and Site Review: The architectural design and site design/layout has been evaluated pursuant to City code Section 30.50.30. The proposed architectural design, site layout, parking, landscaping, and phasing are found to be in compliance with all applicable standards. A more detailed discussion can be found in the attached Planning Commission Staff Report (pg. 11). ALTERNATIVES 6.D.b Packet Pg. 34 Attachment: City Council Staff Report (3433 : Ordinance Adoption for The Cottages at Kern) The City Council may, modify or deny the requested applications. Staff does not recommend this action, without the requisite findings as may be required by the Government Code. FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts associated with this action. The developer is responsible for all fees and improvements required to develop the property. NEXT STEPS Upon approval of the recommended actions, the PUD ordinance shall be scheduled for second reading at the next City Council meeting and shall become effective 30 days from adoption. The developer may proceed with submitting a final map within two years of project approval. The City Council must review and approve the subsequent final map prior to its recordation. Upon completion of the final map, the developer may proceed with processing building permits. PUBLIC OUTREACH In accordance with Gilroy City Code, this item was properly notified in the Gilroy Dispatch on August 06, 2021. In addition, notification was mailed to property owners within 500 feet of the subject site and other interested parties, as requested. Also, the property has been posted with on-site signage informing passerby of pending development, and the City Council public hearing packets are available through the City’s webpage. Attachments: 1. Location Map 2. Planning Commission Staff Report, August 5, 2021 3. Cottages At Kern Arhitectural Plans 4. The Cottages at Kern Civil Plans 5. The Cottages at Kern Landscape Plans 6. The Cottages at Kern Tentative Map 7. The Cottages at Kern Individual Lot Data 8. The Cottages at Kern - Phasing Map 9. Final Negative Declaration 10. Response to Negative Declaration Comments 11. CC Resolution Adopting Negative Declaration 12. CC Ordinance Z 20-06 13. CC Resolution TM 20-06 14. CC Resolution AS 20-20 6.D.b Packet Pg. 35 Attachment: City Council Staff Report (3433 : Ordinance Adoption for The Cottages at Kern) REV 7/31/2018 -1- ORDINANCE NO. 2021-XX ORDINANCE NO. 2021-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING A PLANNED UNIT DEVELOPMENT ZONING AMENDMENT (Z 20-06) LOCATED AT 9130 & 9160 KERN AVE, APN 790-17-002 & -003. FILED BY D.R HORTON, 6683 OWENS DRIVE, PLEASANTON, CA 94588. WHEREAS, on October 29, 2020, an application submitted by D.R. Horton requesting a Planned Unit Development zoning amendment (Z 20-06), and related AS 20-20 and TM 20-06 were accepted as complete, to allow a Planned Unit Development on the subject property; and WHEREAS, the Planned Unit Development requests deviations to the base Medium Density (R3) zone districts building setback and lot size standards; and WHEREAS, the developer proposes to provide a 0.12-acre private common area with two benches and a play structure, picnic area consisting of “turf”, public art, currently anticipated to be located adjacent to the development’s entry road landscaped front yards, private interior streets and sidewalks, public art near the new proposed public sidewalk along Kern Avenue, and common-area landscaping as Planned Unit Development amenities; and WHEREAS, an Initial Study/Negative Declaration (SCH #2021060179) was prepared for the project in full accordance with the procedural and substantive requirements of the California Environmental Quality Act (CEQA); and WHEREAS, said planned unit development design permit/zone change application Z 20- 06 and the related entitlement AS 20-20 and TM 20-06 were referred to various city departments, including the Technical Advisory Committee, for recommendations and conditions; and WHEREAS, on August, 5, 2021, at a duly noticed public hearing the Planning Commission of the city of Gilroy considered the project IS/ND environmental document, concurrent zone change request Z 20-06, Tentative Map request TM 20-06 and application AS 20-20 in accordance with the Gilroy Zoning ordinance Section’s 30.50.40, 30.50.41, 30.50.50 and 21.41, and adopted 6.D.c Packet Pg. 36 Attachment: CC Ordinance Z 20-06 (3433 : Ordinance Adoption for The Cottages at Kern) REV 7/31/2018 -2- ORDINANCE NO. 2021-XX resolutions 2021-06, 2021-07 and 2021-08 recommending the City Council adopt the IS/ND environmental document and the project zoning entitlements; and WHEREAS, the planned unit development permit Z 20-06 incorporates the plans, materials and conditions of the Architectural and Site Plan approval AS 20-20 and Tentative Map approval TM 20-06, by reference herein, which serves as the development plan and standards for project construction; and WHEREAS, the Planning Commission held a duly noticed public hearing on August 5, 2021, at which time the Planning Commission took and considered the written and oral public testimony related to Zoning Text Amendment file number Z 20-06 and unanimously recommended (5-0, 2 absent) that the City Council approve said application; and WHEREAS, the City Council held a duly noticed public hearing on August 16, 2021, at which time the City Council took and considered written and oral public testimony, the staff report dated July 27, 2021, and all other documentation related to application Z 20-06; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I The City Council finds that: i) The project conforms to the applicable Gilroy General Plan in that it proposes. residential development consistent with the Medium Density Residential land use density of 8-16 units per acre. ii) The project provides the type of development that will fill a specific need o f the surrounding area, consisting of small lot detached residential units that would be in keeping with the neighborhood character. iii) The project will not require urban services beyond those that are currently available to serve development of the site at the densities anticipated by the general plan. iv) The project provides a harmonious, integrated plan that justifies exceptions to the normal requirements of this ordinance in order to accommodate the detached family housing units at the minimum required density range of 8.3 units per acre. v) The project reflects an economical and efficient pattern of land uses, as the small lot residential land use would comply with minimum parking standards, dimensions, setbacks, open space and project amenity requirements. vi) The project includes greater provisions for landscaping and open space than would generally be required. Residential landscape/open space requirements are 35% of the lot, 6.D.c Packet Pg. 37 Attachment: CC Ordinance Z 20-06 (3433 : Ordinance Adoption for The Cottages at Kern) REV 7/31/2018 -3- ORDINANCE NO. 2021-XX whereas with the project, all lots would provide at least a combined 48% landscape/open recreation areas. In addition to this the project proposes a 5,316 square foot (0.12 acre) open space area. vii) The project includes design standards and criteria that utilizes aesthetic design principles to create attractive buildings and open space areas that blend with the character of surrounding areas. viii) The project will not create traffic congestion, noise, odor or other adverse effects on surrounding areas. ix) The project as proposed and conditioned provides adequate access, parking, landscaping, trash areas and storage, as necessary. SECTION II The Planned Unit Development permit, zone amendment, for The Cottages at Kern Residential project (APN: 790-17-002 & 003) amending the R3 PUD for a small lot residential development is hereby approved subject to the following conditions: 1. The development approval shall be implemented consistent with the plans and materials submitted for concurrent applications AS 20-20 and TM 20-06. 2. The approval is subject to all, restrictions and requirements established in Gilroy City Code Section 30.50.26 and 30.50.50 which address modifications, time limits, violations and revocations, and revisions. SECTION III If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, the validity of the remaining portion of this Ordinance shall not be affected thereby. SECTION IV Pursuant to section 608 of the Charter of the City of Gilroy, this Ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption. PASSED AND ADOPTED this day of , 2021, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 6.D.c Packet Pg. 38 Attachment: CC Ordinance Z 20-06 (3433 : Ordinance Adoption for The Cottages at Kern) REV 7/31/2018 -4- ORDINANCE NO. 2021-XX APPROVED: Marie Blankley, Mayor ATTEST: LeeAnn McPhillips, Interim City Clerk 6.D.c Packet Pg. 39 Attachment: CC Ordinance Z 20-06 (3433 : Ordinance Adoption for The Cottages at Kern) City of Gilroy STAFF REPORT Agenda Item Title: Award of a Contract to Rosenbauer America in the Amount Not to Exceed $684,899.18 for a Type I Fire Engine and Adoption of a Resolution of the City Council of the City of Gilroy to Enter into a Lease-Purchase Agreement with Leasing 2, Inc. to Finance the Type I Fire Engine Purchase for Seven Years at the Interest Rate of 2.03% for a Financing Cost Not to Exceed $56,857.36 Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Jim Wyatt Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services  Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION a) Award contract not to exceed $684,899.18 (Base price of $628,676 plus $56,223.18 sales tax) to Rosenbauer America for a Type I Fire Engine, Project No. 21-PW-262. b) Adopt a resolution of the City Council of the City of Gilroy authorizing the City Administrator to enter into a seven-year lease-purchase Agreement with Leasing 2, Inc. to finance the purchase of the Type I Fire Engine in the total amount of $684,899.18 purchased from Rosenbauer America for a financing cost not to exceed a rate of 2.03% or $56,857.36. 7.A Packet Pg. 40 EXECUTIVE SUMMARY Staff is recommending award of bid and the Lease to Own purchase of one additional Type I Rosenbauer fire engine to serve the Gilroy Fire Department and community now and into the future. As Council will recall, approval was provided back in February 2021 for a Type I Rosenbauer fire engine making this purchase a second Type I replacement as planned for in the current biennial budget . This new engine will replace a front-line engine that has aged out (more than 15 years of front -line use) and is currently requiring significant maintenance to keep in service. POLICY DISCUSSION The National Fire Protection Association (NFPA), which is considered by the fire ser vice industry as the standard for best practices, recommends in NFPA 1901- Standard for Automotive Fire Apparatus, Annex D (2016 version) that “…apparatus more than 15 years old that have been properly maintained and that are still in serviceable condition be placed in reserve status…”. Considering this best practice standard, the FY 22 budget included a Lease to Own purchase of another Type I fire engine for front-line use. BACKGROUND Through a collaboration of staff from the Fire Department, Public Works Department, and Fleet Division, specifications for a Type I engine that would meet the needs of the department was developed and put out to formal bid (Bid No. 21-PW-262) on September 29, 2020 with a deadline of November 4, 2020. The bid was advertised on the City’s website and in the San Jose Mercury News. The formal bid process resulted in only one bid from vendors, Rosenbauer America. Staff believes the high demand for fire apparatus at this time, the Covid-19 pandemic, and the specifications included in the bid process resulted in receiving one bid as opposed to receiving multiple bids. Staff has considered options for purchasing a second Type I fire engine. The Gilroy Fire Department apparatus committee (Division Chief Chris Weber, Fire Captain Bernhard Szilagyi, Firefighter Brendan McDonagh, Firefighter Miguel Rodriguez) evaluated the option of purchasing another Rosenbauer Type I to match the purchase made in February of this year or going out to bid again to consider other options. After careful review and discussion, the apparatus committee is recommending purchase of a second Rosenbauer Type I engine. The main reasons for this decision are: • Specifications of the Rosenbauer engine meet the needs of the Department. • Other area departments have purchased Rosenbauer engines and have good feedback on the Rosenbauer Type I. 7.A Packet Pg. 41 • There is a Rosenbauer service provider in a reasonable distance to perform warranty work (Burton’s Fire). • Having two like engines is more efficient for fleet maintenance and servicing. In addition, Steven Hayes, IAFF, Local 2805 union president also supports moving forward with the additional Rosenbauer Type I purchase as recommended by the Gilroy Fire Department apparatus committee. After review of the City of Gilroy Purchasing Policy, it was determined that it is permissible to tag on to the prior City of Gilroy bid process completed earlier this year to purchase a second Type I engine. Following this determination, staff reached out to Rosenbauer to ask if they would honor the pricing contained in the prior bid process if the City of Gilroy was to purchase a second Type I fire engine. Rosenbauer offered a discount from prior bid price if the City of Gilroy purchases a second Type I engine that matches the purchase made earlier this year. In the alternative, a new bid process would likely result in an increased cost. Upon award of contract and issuance of a purchase order, Rosenbauer plans to catch the second Type I build up to where the current Type I build is at in the process and then build the remaining portion of both engines simultaneously. We hope this process will expedite the timeline for receipt of the second Type I engine that is very much needed by the Department. FISCAL ANALYSIS/FUNDING SOURCE The discounted bid from Rosenbauer America for a second Type I fire engine is $628,899.18. Sales tax equates to $56,223.18. Total discounted cost for the second new Type I Rosenbauer fire engine including tax is $684,899.18 down from the prior cost of $699,501.91. Without considering the likely cost increase from a new bid process, this purchase results in a savings of $14,602.73. Historically, Gilroy has accumulated funds and then fully paid for fire apparatus at the time of purchase when total funding was available. While there are funds available in the Fleet fund that can be appropriated to make this purchase, staff is recommending an alternative purchasing option, Lease to Own. As noted in the February, 2021 fire engine purchase staff report, given the current fiscal challenges facing the City due to reduced revenues, staff investigated the Lease to Own method of purchasing and believes it is in the best interest of the City for this type of large purchase. The Lease to Own purchasing process is a common best practice used by many public agencies for large equipment purchases that will be used over a long period of time. Although Gilroy has not used the Lease to Own purchasing method for a large vehicle purchase until just recently, the City has used it for the large copy/scan/fax machines used throughout City facilities. Council approved the Lease to Own purchase of the Type I fire engine earlier this year. 7.A Packet Pg. 42 Given the very low interest rates available at this time, the Lease to Own purchasing method continues to be attractive and avoids a large upfront payment. In addition, in the very near future the City will need to make some additional large Fire Department purchases given the age of our front-line fire fleet: • Type III Fire Engine (FY 23 funding/purchase date) • Type I Fire Engine (FY 24 or FY 25 funding/purchase date) If interest rates remain low, using the Lease to Own purchasing method for this current purchase, as well as the above near future purchases, will allow the City to manage the funding needed to make these large purchases and spread the cost over several years versus paying up front. The City expects to replace several high -cost assets in the next few years and the ability to spread the total costs over a period of time will allow the City to make purchases quicker with less impact to the Fleet Fund and operating budget. Other factors in favor of Lease to Own are: • No large upfront cash needed • 100% financing available or option to factor in a down payment • Low interest rates available to municipalities • Save dollars in the long term by making purchases at today’s cost versus the cost years out when the cash becomes available • Less time spent servicing old equipment • Able to budget for known payments spread out over a term identified by the agency • Preserve current resources for other competing demands in tough economic times • Able to plan for shift of equipment to reserve status by lining up future Lease to Own purchases Lease to Own for fire apparatus can be tailored to meet the needs of the agency. Typically, the lease to own period ranges from five to fifteen years with payments being made monthly, quarterly, or annually. Staff recommends a five to ten-year term as the best practice is to fully own the engine before shifting the apparatus to reserve status. Staff communicated with four Lease to Own financing companies to learn more about the process and to evaluate interest rates. Earlier this year, three companies provided formal quotes as one company only finances certain apparatus models offered through select vendors. • Community Leasing Partners (interest rates 2.42% - $2.69%) • Leasing 2, Inc. (interest rates 1.9% - 2.22%) • Pinnacle Public Finance (interest rates 2.22% - 2.47%) 7.A Packet Pg. 43 • REV Financial Services (did not submit a formal quote as financing only available through select vendors that did not include Rosenbauer America) For the most part, the services offered by each financing company are very similar and the focus becomes shopping for the most competitive interest rate. Based on the quotes provided, specialization in the Fire and EMS markets, competitive interest rates, and over twenty years of experience assisting organizations with Lease to Own purchases, Leasing 2, Inc. is the recommended financing vendor. For this second Type I fire engine, staff is recommending the City finance with Leasing 2, Inc. for a seven-year term at an interest rate of 2.03% for the purchase of the Rosenbauer America Type I fire engine. This is the same seven-year rate offered by Leasing 2, Inc. earlier this year when quotes were obtained. The cost to finance the engine over the seven-year period is $56,857.36 with annual payments of $105,965.25. This term allows the City to spread the cost over seven years at a relatively low cost and frees up cash flow for other needed apparatus purchases over the next f ew years. Based on the purchases identified for FY 22 and 23 and included in the approved budget, staff included the funds needed for the annual payments, so no additional funding is needed at this time. The Lease to Own process used by the City is not unlike the average person who finances the purchase of a new personal vehicle over three to six years for the best available interest rate versus waiting until they can save up the funds to purchase the vehicle outright. Additionally, the lease purchase option establishes “taxpayer equity”. Taxpayer equity provides a more equitable method to pay for large expense items, like a fire engine, over time so that past taxpayers are not bearing the full cost and near future taxpayers pay their share. Stated a different way, it may not be equitable for today’s taxpayers to pay the full amount of a $700,000 fire engine while the future taxpayers who receive benefit of the new engine don’t share in the expense. Moving forward with Leasing 2, Inc. requires the City to enter into a Lease-Purchase and Escrow Agreement. Following Council approval of the Lease to Own Purchase, staff will finalize these documents consistent with the terms noted above. Therefore, staff is recommending that the City Council authorize the City A dministrator to review and execute the final documents. The City Attorney will also review and approve the documents to form. As noted above, staff has included the expected lease payments in the Fleet Fund for the current biennial budget and will continue to include the funds needed for the seven annual payments. ALTERNATIVES As noted above, staff evaluated the option of going out to formal bid in lieu of purchasing a second Rosenbauer Type I and for the reasons and savings noted above, staff is recommending tagging on to the prior bid process to obtain the second needed 7.A Packet Pg. 44 Type I engine. Delaying the purchase and rebidding is not a good alternative as the Rosenbauer Type I meets the City’s needs and requirements and pricing will likely be higher in future bid processes. With respect to the Lease-Purchase process, the alternative to the recommended seven-year financing is to appropriate the full cost of $684,899.18 to the FY 22 budget and pay for the Type I fire engine in full. This alternative is not recommended for the cash flow and near-term additional apparatus purchases needed as documented in this report. Furthermore, alternatives to the seven-year financing period are five- or ten-year financing periods; however, due to the additional near-term purchases this term and payment for this Type I fire engine purchase is recommended. Also, Leasing 2, Inc. was willing to match the prior seven-year term interest rate previously provided while the five-year and ten-year term rates had increased. RECOMMENDATION Staff recommends to Council: 1. Award contract to Rosenbauer America for a Type I Fire Engine for a price not to exceed $684.899.18 (Base price of $628,676 plus 56,223.18 in sales tax). 2. Adopt a resolution Authorizing the City Administrator to enter into a seven-year Lease-Purchase Agreement with Leasing 2, Inc. to finance the purchase of the second Type I Fire Engine in the amount of $684,899.18 purchased from Rosenbauer America for a financing cost not to exceed 2.03% or $56,857.36. NEXT STEPS With Council’s approval, staff will move forward to finalize the purchase with Rosenbauer America right away. In addition, staff will work with Leasing 2, Inc. to finalize the Lease-Purchase and Escrow Agreement documents to fund the purchase of the second Type I Fire Engine. Attachments: 1. COG Resolution for Lease-Purchase Agreement with Leasing 2, Inc. Final for 9.13.21 Agenda Packet 7.A Packet Pg. 45 RESOLUTION NO. 2021-XX RESOLUTION NO. 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING THE CITY ADMINISTRATOR TO FINALIZE AND EXECUTE THE LEASE-PURCHASE AGREEMENT WITH LEASING 2, INC. FOR A TYPE I FIRE ENGINE IN AN AMOUNT NOT TO EXCEED $684,899.18 PURCHASED FROM ROSENBAUER AMERICA WHEREAS, the City Council of the City of Gilroy has determined that a true and very real need exists for the acquisition of a Type I Fire Engine to be used solely for essential governmental functions and not for private business use; and WHEREAS, the City of Gilroy has taken the necessary steps, including, without limitation to compliance with legal bidding requirements, under applicable law to arrange for the acquisition of a Type I Fire Engine; and WHEREAS, the City of Gilroy wishes to finance the purchase of a new Type I Fire Engine; and WHEREAS, the City of Gilroy will purchase one Type I Fire Engine from Rosenbauer America in an amount not to exceed $684,899.18; and WHEREAS, Leasing 2, Inc. offers the ability finance the fire engine purchase for seven years at the interest rate of 2.03%; and WHEREAS, the City of Gilroy will enter into a Lease-Purchase Agreement with Leasing 2, Inc. in an amount not to exceed $684,899.18. NOW, THEREFORE, the City Council of the City of Gilroy hereby finds, determines, and resolves as follows: 1. The terms of said Lease-Purchase Agreement and Escrow Agreement are in the best interest of the City of Gilroy for the acquisition of a Type I Fire Engine. 2. The City Council designates Jimmy Forbis, City Administrator, as the person to finalize, execute, and deliver the Lease-Purchase Agreement and Escrow Agreement and any related documents necessary to the consummation of the transactions contemplated by the Lease-Purchase Agreement and Escrow Agreement. PASSED AND ADOPTED this 13th day of September, 2021 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ____________________________ Marie Blankley, Mayor ATTEST: _____________ ____________ LeeAnn McPhillips, Interim City Clerk 7.A.a Packet Pg. 46 Attachment: COG Resolution for Lease-Purchase Agreement with Leasing 2, Inc. Final for 9.13.21 Agenda Packet (3440 : Lease Purchase of City of Gilroy STAFF REPORT Agenda Item Title: Approval of the City of Gilroy's 5-Year Street Repair Program Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Public Works Department Submitted By: Daryl Jordan Prepared By: Gary Heap Gary Heap Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approval of the 5-Year Street Repair Program. EXECUTIVE SUMMARY As City staff has continued to inform the Council concerning the deteriorating condition of the City’s roads. As part of the Fiscal Year 2022 and 2023 (FY22 & FY23) Adopted Budget, Council formally adopted the repair of City streets as one of its highest priorities. As part of the budget adoption, Council allocated and directed staff to identify $3.9M in annual funding towards the Street Repair Program over the next five years. With that budgetary commitment, staff has determined how best to use these funds. Staff recommends a blended use of the Metropolitan Transportation Commission’s (MTC’s) 9.A Packet Pg. 47 StreetSaver program while taking into consideration the need to repair failed streets that carry significant traffic. This “blended” 5-year Street Repair Program meets both of those criteria. POLICY DISCUSSION On March 8, 2021, Public Works Engineering staff presented an Introduction to the City’s 5-Year Pavement Management Program. This included discussions on pavement alternatives, pavement restoration approach, pavement program funding scenarios, and funding options. Through those discussions, Council decided that a blended pavement restoration approach would be best for the City, and that it would increase the City’s annual paving budget from $1.8M per year to $3.9M per year for the next five years to increase the City’s Pavement Condition Index (PCI) from its current rating of 62 to a rating of 67 after five years. As funding for FY22 and FY23 was included in the adopted budget for the next two fiscal years, staff will continue to work with Council to identify an ongoing funding source in years three, four, and five. BACKGROUND At the March meeting, the City Council directed staff to use the blended approach in the determination of which streets to pave over the next five years. The blended approach primarily uses the annual StreetSaver recommendations, but also takes into consideration the need to address some of the highest traveled “failed” condition streets in the City. Two-thirds to three-quarters of the annual paving budget would be dedicated to rehabilitating the streets identified by StreetSaver, and the remaining annual funds would be dedicated to the reconstruction of failed streets. Depending on which failed street is selected, pooling of money from one or more funding cycles m ay be necessary to reconstruct the designated street. A map of the streets expected to be paved over the next five years, using this approach, is attached to the staff report. The Treatment Map shows what streets are planned to be paved over the next five years. It includes streets that would not be typically recommended by StreetSaver due to their poor or failed conditions but are streets that staff has identified as having high use and need of repair. These streets include sections of Luchessa between Monterey and Rossi, Leavesley east of the outlets to the City limit, Monterey south of Luchessa, and Welburn between Wren and Monterey. As can be seen from the map, this provides a distribution of work throughout the City over the next five years meeting the Council’s Strategic Plan Goal of providing consistent and equitable street maintenance Citywide. Funding for the Street Repair Program was also discussed at the March City Council meeting. Staff presented four funding options that included: • Maintain Current Budget ($1.8M per year) – This scenario does not prevent the City’s PCI from continuing to decline. Using only the current funds available, the City’s PCI will drop by five points over the next five years from 62 to 57, and 9.A Packet Pg. 48 the City’s deferred street maintenance costs will increase from $33.4M to $53.7M. • Maintain Current PCI ($3.46M per year) – This funding scenario will maintain the City’s PCI value at 62 for the next five years, and the City’s deferred street maintenance costs will increase from $33.4M to $48.4M. • Increase PCI by 5 ($3.93M per year) – This funding scenario will increase the City’s PCI value from 62 to 67 in the next five years, and the City’s deferred street maintenance costs will increase from $33.4M to $46.3M. • Increase PCI to 70 ($6.8M per year) – This funding scenario will increase the City’s PCI value to 70 at the end of five years, and will nearly maintain our current deferred street maintenance costs, only increasing from $33.4M to $36.6M. After reviewing the options, Council directed staff to identify funding to achieve the $3.9M per year option that would increase the City’s PCI from 62 to 67 at the end of the five year program. Staff has also created an educational web page on the City’s web site to help the public understand our Paving Program in Gilroy. The web page titled, “Better Roads Ahead: Gilroy’s Pavement Improvement Program” can be found here: https://www.cityofgilroy.org/858/Better-Roads-Ahead The site includes a discussion of how the City evaluates the pavement condition of streets, benefits of that evaluation approach, the life cycle of asphalt and asso ciated preventative maintenance and rehabilitation cost, and the various types of pavement treatments used in Gilroy. Once the 5-Year Street Repair Program is approved by Council, staff will include detailed maps of the streets to be paved over the next s everal years. ALTERNATIVES The City Council can decide to reject or modify the proposed 5-Year Street Repair Program. This alternative is not recommended. If Council were to reject the proposed Street Repair Program, staff will continue to use the annual StreetSaver recommendations to determine which streets to pave. This will result in continued deterioration of some of the poorly rated streets planned to be reconstructed under the blended approach. FISCAL IMPACT/FUNDING SOURCE The funding for our annual paving program will come from a variety of sources including Measure B, SB-1, and the General Fund. For FY22 and FY23, $3.4M has been appropriated annually from the following funds for the program: • General Fund (100) - $1.6M 9.A Packet Pg. 49 • SB -1 (215) - $0.9M • Measure B (216) - $0.9M Both, SB-1, and Measure B funds, have available fund balances to cover the remaining $0.5M for FY22 and 23, to total the $3.9M Council target, and staff plans to request the remaining appropriations when awarding the project. For the latter three years of the five-year program, additional funding is being reviewed and will be presented once identified. NEXT STEPS Once approved, staff will prepare plans for construction of the first-year streets in our new 5-Year Street Repair Program. Staff will also update the Better Roads Ahead web page to include a map showing the first two years of streets to be repaved under the program. The City will also be eligible for the next round of Pavement Management Technical Assistance Program (P-TAP) funding next summer and will be conducting another evaluation of the City’s streets to determine the updated pavement condition index (PCI). PUBLIC OUTREACH Staff will communicate all expected construction with the residents along the streets scheduled for repair. Staff will also manage the Better Roads Ahead web page to include information on street repair and resurfacing practices, and include a map showing upcoming streets to be repaved. Attachments: 1. 5-Year Pavement Scenario Map 9.A Packet Pg. 50 Scenario Years by TreatmentFY21-FY26 $3.9M Blended -All Treatments -Printed:5/4/2021 CITY OF GILROY Test Feature Legend 2021 2022 2023 2024 2025 9.A.a Packet Pg. 51 Attachment: 5-Year Pavement Scenario Map (3424 : Approval of the 5-Year Street Repair Program) City of Gilroy STAFF REPORT Agenda Item Title: Selection of Alternate Voting Delegate for the League of California Cities 2021 Annual Conference Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Anne Bybee Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Appointment of a Council Member to serve as the alternate voting delegate for the City of Gilroy at the League of California Cities 2021 Conference. BACKGROUND The League of California Cities Annual Conference is scheduled for September 22-24, 2021 in Sacramento. As a member agency of the League of California Cities, Gilroy has the opportunity to participate in the consideration of resolutions that establish League policy at the annual business meeting being held on Friday, Se ptember 24th. In order to vote on League resolutions, the City Council must designate a voting delegate and may appoint up to two alternate voting delegates. At the August 16, 2021 9.B Packet Pg. 52 Council Meeting, Council Member Tovar was selected as the Gilroy voting de legate, but an alternate delegate was not named. At this time, Mayor Blankley is the only other member of the Council scheduled to attend the League conference, therefore, she should be named the alternate voting delegate. RECOMMENDATION Appoint Mayor Blankley to serve as Gilroy’s alternate voting delegate at the 2021 League of California Cities Conference. NEXT STEPS If the alternate voting delegate is approved, staff will update the information provided to the League so it is clear that Council Member Tovar is the voting delegate and Mayor Blankley is the alternate voting delegate. Attachments: 1. LOCC Delegate information Attachments: 1. League Delegate 9.B Packet Pg. 53 9.B.a Packet Pg. 54 Attachment: League Delegate (3451 : League Delegate) 9.B.a Packet Pg. 55 Attachment: League Delegate (3451 : League Delegate) 9.B.a Packet Pg. 56 Attachment: League Delegate (3451 : League Delegate) City of Gilroy STAFF REPORT Agenda Item Title: Presentation of Information on Reach Codes Pertaining to Building Codes Adopted by the City of Gilroy Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Bryce Atkins Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION None – this is an informational item. EXECUTIVE SUMMARY This agenda item is intended to present information to the City Council regarding “reach” codes. Reach codes are optional amendments that may be made to the California Building Standards Code (CBSC) when adopted by the City. Reach code amendments, if adopted, would set higher standards pertaining to portions of the CBSC. The usual application of reach codes is most notably related to environmental conservation, but other subjects of the CBSC may also be amended as described later in this report. The CBSC may be amended during adoption of the triennial California Title 24 Code of Regulations update. This title, which is the CBSC, applies a standard 10.A Packet Pg. 57 building code throughout the State. Silicon Valley Clean Energy is scheduled to provide to Council a presentation on reach codes as part of this staff report to Council. POLICY DISCUSSION Should the City consider and pursue possible adoption of reach codes during the next CBSC update adoption process? BACKGROUND Every three years, the State of California adopts new building standards organized in Title 24 of the California Code of Regulations. This code is referred to as the California Building Standards Code (CBSC). This regular update of the CBSC is referred to as a code cycle. The last code cycle was completed in late 2019 and took effect on January 1, 2020. The next code adoption cycle will take place in late 2022 and will take effect on January 1, 2023. As part of the triennial building code update process, cities and counties can choose to adopt codes that exceed the minimum CBSC requirements. These higher standards are amendments to the CBSC that are called “reach codes”. Reach codes must be filed with the State and a cost effectiveness study is required for amendments to the Energy Building Code (Title 24, Part 6) ANALYSIS Timeframe The lead time for establishing reach codes varies from nine months to a full year. This is the cause for the commencement of informational presentations and discussions nearly a year before the adoption of the next CBSC commences. Below is a timeframe for the establishment of reach codes, as projected by the California Energy Code and Standards (CECS), a statewide utility program. 10.A Packet Pg. 58 The timeframe above identifies a period of six to nine months. However, the timeframe does not consider the pandemic, and does not include deliberation time of Council before initiation, nor likely includes the upcoming holiday season and the usual slowdown that occurs at the height of the season. As such, a timeframe of nine months to one year is more feasible. Types of Reach Codes CECS also identifies a listing of reach codes. These topical areas include the following: • Building Efficiency/Renewables o Whole building o Equipment specific • Electric Ready o Pre-wiring o Panel upgrades o Electric vehicle readiness o Electric vehicle charging • Water o Dual plumbing o Onsite water reuse o Water neutral development • Information Disclosure o Energy audits at time of listing, sale, or remodel o Benchmarking electricity and/or water use at time of listing, sale, or remodel • Process Loads o Commercial kitchen o Elevators o Escalators o Controlled environment horticulture In addition to this list, there may be other topical areas of the CBSC where staff may wish to propose – and Council may wish to consider – establishing reach codes stricter 10.A Packet Pg. 59 than the CBSC. Further analysis will need to be conducted about which parts and topics are candidates for reach codes to be established within the City of Gilroy. Per the 2019 Guide for Local Amendments of Building Standards1, there are ten sets of requirements that are established by state laws that authorize local amendments. These include: 1. Local Amendments under the California Building Standards Law – for more restrictive local amendments that are reasonably necessary because of local climatic, geological, or topographical conditions. 2. Local Amendments under the State Housing Law – authorizes local amendments to the building standards in Title 24, including green building standards, that apply to residential occupancies, including hotels, motels, apartments, and dwellings, and for amendment of HCD regulations that are reasonably necessary because of local climatic, geological, or topographical conditions. 3. Local Amendments for Universal Design in Housing – authorizes local ordinances for universal design in residential occupancies based on HCD guidelines and the Universal Design Model Ordinance developed by HCD. In general, the HCD model ordinance applies to new or substantially rehabilitated single-family, duplex, and triplex residential dwellings, except for custom -built homes, that are not otherwise subject to the accessibility requirements in Part 2 of Title 24. Such a local ordinance for universal design may make changes or modifications in addition to or in excess of the accessibility requirements contained in Title 24. 4. Local Amendments for Homeless Shelter Crisis - permits seven specific local jurisdictions to adopt ordinances to address homeless shelter crises. These local jurisdictions, upon declaring a shelter crisis, may in lieu of compliance with state and local building approval procedures or state housing, health, habitability, planning, and zoning or safety standards, procedures and laws, adopt reasonable local standards and procedures for the design, site development and operation of homeless shelters. Amendments were made to the legislation after printing of the Guide which appears to open this option to any other city, county or city and county with requisite processes to complete. 5. Local Amendments under the Fire Protection District Law – authorizes a local fire protection district to adopt ordinances with fire and panic safety requirements more restrictive than SFM’s fire and panic safety provisions in Title 24. Th e local ordinance establishing more restrictive fire and panic safety requirements must be limited only to that needed for local climatic, geological, or topographical conditions. 1 May 2019, 3rd Edition, California Building Standards Commission, California Department of General Services 10.A Packet Pg. 60 6. Local Amendments for Fire and Panic Safety – authorizes local government, other than a fire protection district subject to HSC Section 13869.7, to adopt more restrictive local amendments than the fire and panic safety provisions of Title 24. Additionally, Section 13143.5, subsections (b) and (c) authorize a local jurisdiction to require residential fire sprinkler systems in new housing, or when retrofitting existing housing, when not otherwise required by Title 24. 7. Local Amendments for Energy Conservation – allows more rigorous local amendments to the energy conservation provisions in the California Energy Code. CCR, Title 24, Part 1, California Administrative Code, Chapter 10, Section 10- 106, requires local government to gain approval from the California Energy Commission (CEC) for a local energy conservation requirement. Local governments must apply to CEC for approval and provide supporting analysis on how it was determined that the proposed local standard will save more energy than the current provisions in Title 24, Part 6, and be cost effective. 8. Local Amendments under the State Historical Building Code – authorizes local government to make amendments to the building standards in Part 8 of Title 24 for qualified historical buildings. 9. Local Amendments under the Earthquake Protection Law – ordinances relative to building seismic retrofit standards for seismically hazardous buildings developed pursuant to the Earthquake Protection Law (HSC Section 19100 et seq). 10. Local Amendments for Accessory Dwelling Units - Local amendments developed for the purpose of regulating accessory dwelling units pursuant to Government Code Section 65852.2 are subject to the requirements of those provisions of law and local building code requirements that apply to detached dwellings as appropriate. Previous Reach Code Discussion At the October 21, 2019 regular meeting of the Gilroy City Council, the Council seated at that time received two reports from staff regarding reach codes for the code cycle occurring that same year. The two staff reports focused on energy conservation measures via electrical reach codes revolving around the following: 1. Full electrification of buildings – no gas lines whereby all heating and cooking appliances are electric instead of gas fueled, as well as consideration of banning natural gas installations in new construction. 2. Electric vehicle (EV) charging infrastructure – requiring new residential (single family and multifamily), commercial and industrial facilities have EV charging infrastructure, whether fully built or just ready for future installation, installed during initial development and/or construction. 10.A Packet Pg. 61 The reports provided options for levels of reach codes regarding the intensity of the standards possible. Council at the time declined to enact the identified reach codes for the 2019 triennial update. 2022 Triennial CBSC Code Cycle The next code cycle is set for publication in a little less than a year from now, July 1, 2022, based on previous triennial updates. The updated codes would become effective January 1, 2023. Should Council desire to pursue reach codes the City has approximately one year to complete the process for this code cycle. It is likely that there will be new requirements in the next triennial update for these areas of the CBSC. Effectively, what would have been considered a reach code may now be a requirement of the new building code(s). Allowing the City’s staff and consultants the ability to consider possible reach codes, in conjunction with the revised codes that will be produced as part of the State’s update process, will be the most efficient and effective process. The determination to pursue analysis and discussion should be rendered soon. There will be a demand for staff time, potentially consultant time as well, to develop the reports and documents for the full process identified earlier in this report. There will need to be adequate time available to complete the process and submit any required documents for review by the appropriate state agencies for the reach codes to be adopted before the CSBC becomes effective January 1, 2023. ALTERNATIVES None – this is an informational item. FISCAL IMPACT/FUNDING SOURCE None – this is an informational item. CONCLUSION Reach codes present an opportunity to establish higher standards than may be adopted in the next update to the California Building Standards Code. There are long processes that would need to commence soon if reach codes are to be considered for potential adoption in the next code cycle. These processes will consume staff workload capacity and likely require consultant time as well to complete required advanced documents and analysis. To pursue reach codes, there will also likely be a fiscal impact. As this is an early initial report, neither the fiscal impact amount nor the amount of staff time that would be consumed pursuing reach codes is currently known. These figures would not be knowable without further scoping of the proposed reach codes being considered , to know which requirements are to be satisfied. Should Council in the future direct staff to conduct an analysis, these investments of staff time and monetary resources will be analyzed and estimated for Council consideration. NEXT STEPS 10.A Packet Pg. 62 Should Council direct pursuit of reach codes, it may direct staff to bring back an action item to Council for a full analysis on reach codes, and identification of what reach codes are common and possible, and which may be recommended by staff for adoption. 10.A Packet Pg. 63 City of Gilroy STAFF REPORT Agenda Item Title: HouseKeys Quarterly Report Meeting Date: September 13, 2021 From: Jimmy Forbis, City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Receive report. EXECUTIVE SUMMARY The contract with HouseKeys approved by the City Council on April 19, 2021 requires HouseKeys to submit a quarterly report on the general status of the Below Market Rate programs which they administer for the City of Gilroy. Attached is the quarterly repor t for April 1 through June 30, 2021. BACKGROUND At their April 19, 2021 meeting, the City Council approved a new contract with HouseKeys beginning May 1, 2021, that expanded the scope of services they provide to the City in support of below market rate (BMR) housing. Previously, HouseKeys managed the BMR ownership program, but with the new contract, HouseKeys will now 10.B Packet Pg. 64 also be administering the City’s BMR loan and rental programs. The overall goal of the expanded scope of services was to ensure sound, long-term investment into the City’s BMR programs and maximize affordable housing opportunities for Gilroy residents. Given the size and scope of the BMR rental program, it will take several months for HouseKeys to get fully up to speed on all aspects of the p rogram. In addition, HouseKeys has recently hired several new staff to help administer Gilroy’s programs. With recent City staffing changes for housing related programs, HouseKeys and City staff are now meeting regularly to get all BMR programs fully ope rational as quickly as possible. The current quarterly report is primarily reflective of BMR ownership program activity which HouseKeys has been administering for several years. As HouseKeys begins administration of the BMR rental and loan programs, activity data and tracking will be added to the report. Specifically, the report shall include; 1. General program activity (BMR ownership, rental and loan programs). 2. BMR compliance, such as certifying buyer compliance for ownership units and that BMR rental units are occupied by renters who continue to meet income requirements and appropriate rent is being charged per HUD income limits. 3. Verification that loan activity for ownership units is in compliance with all applicable terms and conditions. 4. Current inventory of all affordable units (ownership and rental) within Gilroy city limits. 5. Resale value of all BMR homes as requested by the County annually. 6. Other information as needed for County and State reporting, such as data necessary for the City’s annual General Plan and Housing Element reports. HouseKeys is also required to submit annual compliance reports to the City. ANALYSIS Quarterly and annual reporting by HouseKeys is one tool to help ensure the City’s goals of continued investment into BMR programs and maximizing affordable housing opportunities for Gilroy residents are progressing. As HouseKeys continues to get up to speed on the BMR rental program, the quarterly report will be expanded to include related activities so that staff, Council and the public are informed of their progress. FISCAL IMPACT/FUNDING SOURCE The quarterly reports from HouseKeys are required as part of the agreement approved by Council on April 19, 2021. Funding for the agreement was approved at that time and is included in the adopted FY22 and 23 budget to be paid from the Housing Trust Fund (Fund 259). 10.B Packet Pg. 65 NEXT STEPS Staff will continue to meet regularly with HouseKeys staff as the onboarding process continues. In addition, the City is in the process of hiring a Program Administrato r. One of the primary roles of this position will be administration of affordable housing related programs and services including oversight of the HouseKeys contract. In the interim, oversight is being handled by the Senior Management Analyst in the City Administrator’s Office as well as the Community Development Director. Attachments: 1. HK-City of Gilroy by The Numbers Quarterly Report - Q2 2021 2. HK Approved Scope of Work 10.B Packet Pg. 66 Toll Free: 1-877-460-KEYS (5397) Office (By Appointment) 358 Digital Drive Morgan Hill, CA 95037 Mailing Address: 409 Tennant Station #395 Morgan Hill, CA 95037 info@housekeys.org www.housekeys.org Main Line: 408-684-8712 Main Fax: 408-684-8762 HK-City of Gilroy Quarterly By the Numbers Report - Q2 2021 April 1, 2021 – June 30, 2021 20 Number of Online BMR Home Buyer Orientations & Weekly Friday/Saturday (every other Saturday) FAQ’s Broadcasts Friday & Saturday FAQ Broadcasts • Eighteen (18) Friday/Saturday FAQ Online Webinars were provided in Q2 2021. 1. Friday, April 2, 2021 2. Friday, April 16, 2021 3. Friday, April 23, 2021 4. Friday, April 30, 2021 5. Saturday, April 10, 2021 6. Saturday, April 24, 2021 7. Friday, May 7, 2021 8. Friday, May 14, 2021 9. Friday, May 21, 2021 10. Friday, May 28, 2021 11. Saturday, May 8, 2021 12. Saturday, May 22, 2021 13. Friday, June 4, 2021 14. Friday, June 11, 2021 15. Friday, June 18, 2021 16. Friday, June 25, 2021 17. Saturday, June 5, 2021 18. Saturday, June 19, 2021 BMR Home Buyer & Rental Orientation • Two (2) BMR Orientations were provided in Q2 2021 1. Wednesday, May 5, 2021, 6pm-7:30pm 2. Thursday, June 10, 2021, 6pm-7:30pm 171 # Of Registrants for HouseKeys-City of Gilroy Weekly FAQ Friday/Saturday (every other Saturday) and BMR Home Buyer Online Orientation Webinars (142) One hundred forty-two BMR Home Buyer Orientation Webinar registrants (29) Twenty-nine FAQ Friday/Saturday registrants N/A Number of New Construction Units Sold No New Construction units were available or sold from Q2 2021 10.B.a Packet Pg. 67 Attachment: HK-City of Gilroy by The Numbers Quarterly Report - Q2 2021 (3447 : HouseKeys Quarterly Report) Toll Free: 1-877-460-KEYS (5397) Office (By Appointment) 358 Digital Drive Morgan Hill, CA 95037 Mailing Address: 409 Tennant Station #395 Morgan Hill, CA 95037 info@housekeys.org www.housekeys.org Main Line: 408-684-8712 Main Fax: 408-684-8762 1 Number of Units Sold out of the Program 1. 1536 Bianca Way N/A Opportunity Drawings (Lotteries held to give buyers an opportunity to purchase an affordable home N/A Number of Acquisitions 141 Number of Application I.D.’s Issued to people interested in the BMR Homeownership Program Q2 2021 6 Number of Refinance Ticket Requests Currently being Processed. 6 Number Of Ticket Requests Processed Q2 2021 1. Two (2) unit transfer info requests 2. One (1) City loan info request 3. Three (3) sale info requests 2 Number of BMR Closed Refinances 2 Number of Refinances Requests Pending Closure 1 Number of Release of Resale Restriction Agreements 1. 1536 Bianca Way 1 Number Reconveyances 1. 1536 Bianca Way N/A Number of 2021 City of Gilroy BMR Ownership Annual Certifications Distributed N/A Number of BMR Ownership Legal Cases N/A Number of Rehab Projects 3 Total Number of BMR Program (Ownership) Files that have crossed the Underwriters Desk 10.B.a Packet Pg. 68 Attachment: HK-City of Gilroy by The Numbers Quarterly Report - Q2 2021 (3447 : HouseKeys Quarterly Report) 10.B.b Packet Pg. 69 Attachment: HK Approved Scope of Work (3447 : HouseKeys Quarterly Report) 10.B.b Packet Pg. 70 Attachment: HK Approved Scope of Work (3447 : HouseKeys Quarterly Report)