HomeMy WebLinkAbout2021-04-19 City Council Regular Meeting Agenda Packet
April 14, 2021 6:23 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, APRIL 19, 2021
CITY COUNCIL MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org
VIEW THE MEETING LIVE ON THE CITY WEBSITE www.cityofgilroy.org.
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE
GOVERNOR’S EXECUTIVE ORDER N-29-20
In order to minimize the spread of the COVID 19 virus the City Council is conducting
this meeting by web conference and will be offering alternative options for public
participation. You are encouraged to watch the City Council meeting live on the City of
Gilroy’s website at www.cityofgilroy.org or on Cable Channel 17. To view from the
website, select the City Council Meetings section on the home page.
PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE
CITY COUNCIL. DURING THE MEETING: TO PROVIDE VERBAL PUBLIC COMMENTS ON AN
AGENDA ITEM DURING THIS MEETING, LOG INTO THE
ZOOM MEETING AND ENTER THE PASSCODE, OR
CALL THE PHONE NUMBER LISTED HERE AND
ENTER THE MEETING ID AND PASSWORD. When the
Mayor announces the item which you wish to speak
on, press *9 on your telephone keypad to raise your
hand. When called to speak, please limit your comments to three (3) minutes, or such other time
as the Mayor may decide, consistent with the time limit for all other speakers for the particular
agenda item.
COMMENTS MAY ALSO BE EMAILED TO THE CITY CLERKS OFFICE AT
suzanne.guzzetta@cityofgilroy.org, OR MAILED TO THE GILROY CITY CLERKS OFFICE AT CITY
HALL 7351 ROSANNA STREET, GILROY, CA. 95020, PRIOR TO THE MEETING START, TO BE
DISTRIBUTED TO THE COUNCIL MEMBERS AND TO BE INCORPORATED INTO THE MEETING
RECORD.
In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will
make reasonable arrangements to ensure accessibility to this meeting. If you need special
assistance to participate in this meeting, please contact the City Clerk a minimum of 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
Zoom Log In https://rb.gy/ktzm9i
or call : 1 (669) 900-6833
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Passcode: 774980
City Council Regular Meeting Agenda
04/19/2021 Page2 limited to raising only those issues you or someone else raised at the public hearing held at this
meeting, or in written correspondence delivered to the City Council at, or prior to, the public
hearing. Please take notice that the time within which to seek judicial review of any final
administrative determination reached at this meeting is governed by Section 1094.6 of the
California Code of Civil Procedure.
A Closed Session may be called during this meeting pursuant to Government Code Section
54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City
on the advice of its legal counsel, based on existing facts and circumstances, there is a
significant exposure to litigation against the City.
Materials related to an item on this agenda submitted to the City Council after distribution of the
agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org
subject to Staff’s ability to post the documents before the meeting.
The City Council meets regularly on the first and third Monday of each month, at 6:00 p.m. If a
holiday, the meeting will be rescheduled to the following Monday, with the exception of the single
meeting in July which lands on the first day of the month not a holiday, Friday, Saturday or
Sunday.
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. Recognition of Retiring City Clerk Shawna Freels
III. PRESENTATIONS TO THE COUNCIL
City Council Regular Meeting Agenda
04/19/2021 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:
suzanne.guzzetta@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. 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. Update from the Council Ad Hoc Committee on Homelessness
City Council Regular Meeting Agenda
04/19/2021 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
04/19/2021 Page5 A. Minutes of the April 5, 2021 Regular Meeting
B. Opening of a Recruitment Period for One Vacancy on the Parks &
Recreation Commission With a Term Ending December 31, 2022
C. Acceptance of the City Fiscal Year 2019-20 Federal Single Audit for the
Period of July 1, 2019 to June 30, 2020 and the Quarterly Investment Report
as of December 31, 2020
D. Approval of the Gilroy Tourism Business Improvement District (GTBID)
Annual Report as Submitted by Visit Gilroy/California Welcome Center
Gilroy for the Period of July 1, 2019 Through June 30, 2020
VII. BIDS AND PROPOSALS
A. Approval of an Agreement in the Amount of $1,050,000 with HouseKeys,
Inc. to Administer the City's Below Market Rate Housing Programs from
May 1, 2021 to June 30, 2024, with Two, One-Year Extensions Possible (21-
RFP-CDD-457)
1. Staff Report: Maria De Leon, Program Administrator
2. Public Comment
3. Possible Action:
a) Approve a budget amendment in the amount of $70,000 in the Housing Trust
Fund for the Fiscal Year 2021 services of this agreement.
b) Approve an agreement in the amount of $1,050,000 with HouseKeys, Inc. to
administer the below market rate housing programs from May 1, 2021 to June
30, 2024, with two, one-year extensions possible, and authorize the City
Administrator to execute the agreement and related documents.
B. Award a Contract in an Amount of up to $143,467.42 to Access
Communications, Inc. for the City Council Chambers Audiovisual
Modernization Project
1. Staff Report: LeeAnn McPhillips, Human Resources Director/Risk Manager
2. Public Comment
3. Possible Action:
Award a contract in an amount of up to $143,467.42 to Access Communications,
Inc. for the City Council Chambers Audiovisual Modernization Project, and
authorize the City Administrator to execute the contract and related documents.
VIII. PUBLIC HEARINGS - NONE
IX. UNFINISHED BUSINESS
A. Approval of the Eigleberry and Seventh Street Parking Lot Alternative Two
City Council Regular Meeting Agenda
04/19/2021 Page6 1. Staff Report: Gary Heap, City Engineer/Transportation Engineer
2. Public Comment
3. Possible Action:
Approve Alternative 2 for the design of the Eigleberry and Seventh Street parking
lot, without the inclusion of the pedestrian plaza.
B. Standing Report on Operational Impacts and Other City Efforts Related to
the COVID-19 Pandemic
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Receive report.
X. INTRODUCTION OF NEW BUSINESS
A. Consideration of an Extension of the Solid Waste Franchise Agreement
with Recology South Valley
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Receive report and provide direction to staff concerning the negotiating of a
franchise agreement extension with Recology South Valley
B. Council Initiated Request for Information on Slow Streets Program
1. Staff Report: Gary Heap, City Engineer/Transportation Engineer
2. Public Comment
3. Possible Action:
Receive report and provide direction to staff.
C. Appointment of LeeAnn McPhillips as the Interim Gilroy City Clerk
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Appoint LeeAnn McPhillips as Interim Gilroy City Clerk.
XI. CITY ADMINISTRATOR'S REPORTS
XII. CITY ATTORNEY'S REPORTS
XIII. CLOSED SESSION - NONE
ADJOURNMENT
MEETING DATES
APRIL 2021
19* Regular Meeting - 6:00 p.m.
MAY 2021
City Council Regular Meeting Agenda
04/19/2021 Page7 3* Regular Meeting - 6:00 p.m.
17* Regular Meeting - 6:00 p.m.
JUNE 2021
7* Regular Meeting - 6:00 p.m.
21* Regular Meeting - 6:00 p.m.
* meeting is webstreamed and televised
City of Gilroy
STAFF REPORT
Agenda Item Title: Opening of a Recruitment Period for One Vacancy on the Parks &
Recreation Commission With a Term Ending December 31, 2022
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Suzanne Guzzetta
Prepared By: Suzanne Guzzetta
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Open a three week recruitment period for one open seat on the Parks & Recreation
Commission.
BACKGROUND
The City has received a resignation from a seated member of the Parks & Recreation
Commission for a seat with a term ending December 31, 2022. This vacancy shall be
filled for the remainder of the unexpired term.
CONCLUSION
Staff recommends opening a three week recruitment period until May 11, 2021 and will
schedule Council interviews to fill the vacant seat at the May 17, 2021 Council meeting.
PUBLIC OUTREACH
6.B
Packet Pg. 8
Recruitment material will be distributed through all City social media outlets, on the City
website and will be sent to Gilroy stakeholder organizations focused on recreation and
parks.
6.B
Packet Pg. 9
City of Gilroy
STAFF REPORT
Agenda Item Title: Acceptance of the City Fiscal Year 2019-20 Federal Single Audit for
the Period of July 1, 2019 to June 30, 2020 and the Quarterly
Investment Report as of December 31, 2020
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Rosemary Guerrero
Strategic Plan Goals
Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
a. Accept and file Fiscal Year 2019-20 Federal single audit for the reporting
period of July 1, 2019 to June 30, 2020.
b. Accept and file the Quarterly investment report as of December 31, 2020.
EXECUTIVE SUMMARY
Council is requested to accept and file the City’s Fiscal Year 2020 (FY20) Federal
Single Audit for the reporting period July 1, 2019 to June 30, 2020. In addition, Council
is requested to accept and file the quarterly investment report as of December 31, 2020.
6.C
Packet Pg. 10
BACKGROUND
The City’s financial records are audited annually by the City’s external auditors, The
Pun Group performed the FY20 Federal Single Audit. All non-Federal entities that
expend $750,000 or more of Federal awards in a year are required to obtain an annual
audit to comply with both the Single Audit Act Requirements and Office of Management
and Budget (OMB) standards. The Single Audit has been completed and the
independent auditors have indicated that the City of Gilroy has complied in all the
material respects with the types of compliance requirements that could have a direct
and material effect on each of its major federal programs for the year ended June 30,
2020.
ANALYSIS
There were no findings or questioned costs in the FY 20 Single Audit.
The results of auditing procedures in the prior, FY19, Single Audit disclosed an instance
of noncompliance, which is required to be reported in accordance with Uniform
Guidance and described in the schedule of findings and questioned costs (Attachment 1
– Page 15) 2019-001. The finding was corrected and implemented.
Also attached (Attachment 2) to this report is the City’s quarterly investment report for
the quarter ending December 31, 2020.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the FY20 Single Audit. The
audit provides Council with the assurance that the City is meeting its obligation for
producing fairly and accurate financial reports.
Attachments:
1. FY 2019-20 Gilroy Single Audit
2. Quarterly Investment Report - December 31, 2020
6.C
Packet Pg. 11
City of Gilroy
Gilroy, California
Single Audit
For the Year Ended June 30, 2020
6.C.a
Packet Pg. 12 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
6.C.a
Packet Pg. 13 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Single Audit Report
For the Year Ended June 30, 2020
Table of Contents
Page
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards.............................................................. 1
Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance, and Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance .............................................................................. 3
Schedule of Expenditures of Federal Awards ............................................................................................................ 7
Notes to the Schedule of Expenditures of Federal Awards ........................................................................................ 8
Schedule of Findings and Questioned Costs .............................................................................................................. 9
6.C.a
Packet Pg. 14 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
This page intentionally left blank.
6.C.a
Packet Pg. 15 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of
June 30, 2020, and the related notes to the basic financial
ncial statements, and have issued our report thereon dated
February 1, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial stat
designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of
al control. Accordingly, we do not express an opinion on
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that were not identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's basic financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
require to be reported under Government Auditing Standards.
6.C.a
Packet Pg. 16 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
Page 2
2
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
ontrol and compliance. Accordingly, this communication is not suitable for any
other purpose.
Santa Ana, California
March 31, 2021
6.C.a
Packet Pg. 17 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL
CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
Report on Compliance for Each Major Federal Program
es of compliance requirements
described in the OMB Compliance Supplement
federal programs for the year ended June 30, 2020. The C are identified in the summary
Schedule of Findings and Questioned Costs.
Management is responsible for compliance with federal statutes, regulations, and the terms and condition of its federal
awards applicable to its federal programs.
Our responsibility is to express an opinion on compliance for
audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance
with auditing standards generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirement for Federal Awards
Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal
6.C.a
Packet Pg. 18 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
Page 2
4
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above
that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with
the types of compliance requirements referred to above. In planning and performing our audit of compliance, we
over compliance with the types of requirements that could have a direct and
material effect on each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
rnal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does
not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
6.C.a
Packet Pg. 19 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
Page 3
5
Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City, as of and for the
year ended June 30, 2020, and the related notes to the basic financial statements, which collectively comprise the
thereon dated February 1, 2021 which contained unmodified
opinions on those financial statements. Our audit was conducted for the purpose of forming our opinions on the
basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by Uniform Guidance and
is not a required part of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain other procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the Schedule of Expenditure of Federal Awards is fairly stated in all material
respects in relation to the basic financial statements as a whole.
Santa Ana, California
March 31, 2021, except for the Schedule of Expenditures of Federal Awards, which is as of February 1, 2021
6.C.a
Packet Pg. 20 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
6
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6.C.a
Packet Pg. 21 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2020
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
7
Amount
Federal Grantor/Pass-Through GrantorCFDAGrant Award Federal Provided to
Program Title Number Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Program:
CDBG - Entitlement Grants Cluster:
Community Development block Grants/Entitlement Grants 14.218 B-19-MC-06-0048 383,124$ 171,738$
Community Development block Grants/Entitlement Grants 14.218 Program income 28,601 -
Total U.S. Department of Housing and Urban Development 411,725 171,738
U.S. Department of Justice
Direct Program:
Bulletproof Vest Partnership Program 16.607 Not applicable 1,836 -
Bulletproof Vest Partnership Program 16.607 Not applicable 2,007 -
Total U.S. Department of Interior 3,843 -
U.S. Department of Transportation
Pass-Through the California Office of Traffic and Safety
Highway Safety Cluster
Selective Traffic Enforcement Program 20.600/20.608 PT20053 38,213 -
Selective Traffic Enforcement Program 20.600/20.608 PT19043 24,242 -
Total Selective Traffic Enforcement Program 62,455 -
Pass-Through the California Department of Transportation
Highway Planning and Construction Cluster:
Monterey Rd. Rehab 20.205 STPL-5034 (027)1,475,412 -
Channel Trail and Various Bridge Constructions 20.205 RSTP-5034(023)57,973 -
Total Highway Planning and Construction Cluster 1,533,385 -
Total U.S. Department of Transportation 1,595,840 -
Total Expenditures of Federal Awards 2,011,408$ 171,738$
6.C.a
Packet Pg. 22 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2020
8
The financial reporting entity consists of the primary government, City of Gilr
the primary government is financially accountable, and other organizations for which the nature and significance of
their relationship with the primary government are such
statements to be misleading or incomplete.
The City Council acts as the governing body and is able to impose its will on the following organization, establishing
financial accountability:
Gilroy Public Facilities Financing Authority
Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue and capital projects
funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and capital
projects funds. The accompanying Schedule of Expenditures
accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR)Part 2, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards
some amounts presented in the Schedule may differ from amounts
basic financial statements.
Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal
financial assistance received directly from federal agencies, as well as federal financial assistance passed through the
State of California, is included in the Schedule. The Schedule was prepared only from the accounts of various grant
programs and, therefore, does not present the financial position or results of operations of the City.
Indirect Cost Rate
The City has not elected to use the 10 percent de-minimis indirect rate as allowed under Uniform Guidance.
Note 3 - Subrecipients
During the year ended June 30, 2020, the City provided federal funds to the following subrecipients:
Community Development Block Grant Subrecipients:
Rebuilding Together Silicon Valley 144,364$
Catholic Charities of Santa Clara County 5,677
Live Oak Adult Day Services 8,462
Gilroy Compassion Center 13,235
Total 171,738$
6.C.a
Packet Pg. 23 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2020
9
Financial Statements
Types of report the auditors issued on whether the financial statements
audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None noted
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None noted
ce for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? No
Identification of major federal programs:
CFDA Number(s)Name of Federal Program or Cluster Expenditures
20.205 Highway Planning and Construction Cluster 1,533,385$
Total Expenditures of All Major Federal Programs 1,533,385$
Total Expenditures of Federal Awards 2,011,408$
Percentage of Total Expenditures of Federal Awards 76.23%
Dollar threshold used to distinguish between type A and type B programs: $750,000
Auditee qualified as low-risk auditee under 2 CFR 500.520? No
6.C.a
Packet Pg. 24 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2020
10
A.
No current year financial statement findings were noted.
No prior year financial statement findings were noted.
6.C.a
Packet Pg. 25 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
City of Gilroy
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2020
11
A. Current Year Findings and Questioned Cost
No current year findings and questioned costs were noted.
B. Prior Year Findings and Questioned Cost
2019-001 - Reporting
Condition
Three of the four SF-425 reports for the fiscal year 2018-2019 were not submitted timely.
Recommendation
We recommend that the City review its processes to allow for reporting to take place in timely manner.
Status:
Implemented.
6.C.a
Packet Pg. 26 Attachment: FY 2019-20 Gilroy Single Audit (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of Dec 2020)
6.C.b
Packet Pg. 27 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 28 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 29 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 30 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 31 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 32 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 33 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 34 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 35 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 36 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
6.C.b
Packet Pg. 37 Attachment: Quarterly Investment Report - December 31, 2020 (3268 : Acceptance of FY20 Federal Single Audit and quarterly investment as of
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Gilroy Tourism Business Improvement District
(GTBID) Annual Report as Submitted by Visit Gilroy/California
Welcome Center Gilroy for the Period of July 1, 2019 Through June
30, 2020
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
Fiscal Stability
☐ Downtown
Revitalization
Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Approve the Gilroy Tourism Business Improvement District (GTBID) annual report as
submitted by Visit Gilroy/California Welcome Center Gilroy for the period of July 1, 2019
through June 30, 2020.
BACKGROUND
Visit Gilroy/California Welcome Center Gilroy Board of Directors representing the Gilroy
Tourism Business Improvement District (GTBID) has submitted the attached report
pursuant to Section 36650 of the Street and Highway Code. Effective in 2013, GTBID
provides a steady and dedicated funding source to the GWC through an assessment
6.D
Packet Pg. 38
levied on lodging businesses within the GTBID boundaries. The assessment revenue
provides dedicated sales within the GTBID's boundaries.
FISCAL IMPACT
This item has no fiscal impact, it is simply a report. Regardless, since the inception of
the TBID in 2013, the TBID has contributed in part to the generation of more than $8
million in transient occupancy tax to the City of Gilroy.
Attachments:
1. Visit Gilroy GTBID 2020 Annual Report - 4-19-21
2. GTBID Report - 4-19-21 Assessed Lodging Businesses
3. VisitGilroy_TBID_Presentation_2020 - 4-19-21
4. GTBID 2020 Annual Budget Report - 4-19-21
5. GTBID 2020 Annual Report to City Council - 4-19 -21
6.D
Packet Pg. 39
To: Gilroy City Council
From: Gilroy Visitors Bureau, dba Visit Gilroy Board of Directors
representing Gilroy Tourism Business Improvement District (GTBID)
Date: April 19, 2021
Subject: Gilroy Tourism Business Improvement District (GTBID) Report
for January 1, 2020 – December 31, 2020
Pursuant to Section 36650 of the Street and Highway Code, the Gilroy Tourism
Business Improvement District (GTBID) is submitting the following report to the
Gilroy City Council for approval and to be filed with the City Clerk.
The Management District Plan identifies the Gilroy Visitors Bureau, dba Visit Gilroy
Board of Directors to serve as the Owner’s Association for GTBID. The Owner’s
Association serves as a private, nonprofit entity that administers and implements
the improvements, services and activities of GTBID as specified in the Management
District Plan.
Items 1 – 7 as identified in the Management District Plan Reporting Requirements:
1. Proposed changes in the
boundaries, benefit zones or
classification of business of GTBID
None.
2. Services, improvements, and
activities provided for the period
January 1, 2020 – December 31,
2020
Public relations, videos, print ads,
banner ads, social media campaigns,
online marketing, trade shows, website
support, research and google analytics
3. Cost of providing the services for
this reporting period
Advertising and Marketing - $161,190
Administration - $48,327
City Collection Fee - $4,349
Reserve/Renewal - $2,596
Total Amount - $216,462
4. Any proposed changes to basis and
method of levying the assessments
None. The GTBID annual assessment
rate is 2% of Taxable Rates, as stated
on the City’s Quarterly Transient
Occupancy Tax Reporting Form.
6.D.a
Packet Pg. 40 Attachment: Visit Gilroy GTBID 2020 Annual Report - 4-19-21 (3214 : TBID Annual Report)
5. Method and basis of levying
assessments collected for the
reporting period
The City receives the assessment
revenue along with the quarterly TOT
collections from each business located
in the boundaries of the GTBID. The
City then forwards the assessments to
Gilroy Visitors Bureau, dba Visit Gilroy
to manage and implement the GTBID
programs.
6. Amount of any surplus revenues to
be carried over from reporting
period
$991
7. Amount of any contributions to be
made from sources other than the
assessments levied
None.
*** COVID-19 shelter in place ordered – March 17, 2020
Additional information provided in this report:
2020 Advertising and Marketing Results
o Goal: Increase Transient Occupancy Tax (TOT) collections
Amount Collected - $995,514 (2019 collection - $1,601,738 - 38%
decrease)
o Goal: Increase Annual RevPAR
Actual RevPAR - $45.69 (2019 Actual - $76.52; Decrease - $30.83)
o Goal: Increase unique website visitors to Visit Gilroy website
Actual number of visitors – 86,252 (decrease of 32,693)
o Goal: Develop and launch “Gilroy Taco Trail” campaign – launched
February 2020 in partnership with Gilroy Chamber of Commerce
o Goal: Continue to collaborate and partner with state and regional
organizations: Minimal PR and website partnerships with Visit
California and CCTC due to COVID-19 Shelter in Place order
GTBID Business Assessees Listing
Current list of lodging businesses within the district attached.
6.D.a
Packet Pg. 41 Attachment: Visit Gilroy GTBID 2020 Annual Report - 4-19-21 (3214 : TBID Annual Report)
Gilroy Tourism Business Improvement District (GTBID)
Business Assessees Listing
Hotel Address
Days Inn 8292 Murray Avenue
Gilroy, CA 95020
Best Western Plus/Forest Park Inn 375 Leavesley Road
Gilroy, CA 95020
Budget Motels/Whiterock 8897 Monterey Road
Gilroy, CA 95020
Garlic Farm Inn 5920 Travel Park Circle
Gilroy, CA 95020
Gilroy Inn 611 Leavesley Road
Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road
Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road
Gilroy, CA 95020
Motel 6 6110 Monterey Road
Gilroy, CA 95020
Travel Inn 5530 Monterey Road
Gilroy, CA 95020
Oaks Motel 8065 Monterey Road
Gilroy, CA 95020
Hampton Inn & Suites 5975 Travel Park Circle
Gilroy, CA 95020
Quality Inn & Suites 8430 Murray Avenue
Gilroy, CA 95020
Econolodge 360 Leavesley Road
Gilroy, CA 95020
Super 8 8435 San Ysidro Avenue
Gilroy, CA 95020
6.D.b
Packet Pg. 42 Attachment: GTBID Report - 4-19-21 Assessed Lodging Businesses (3214 : TBID Annual Report)
TBID Presentation
January 1 -December 31, 2020
6.D.c
Packet Pg. 43 Attachment: VisitGilroy_TBID_Presentation_2020 - 4-19-21 (3214 : TBID Annual Report)
Website Analytics
132,217
116,083
167,177
118,945
105,842
95,583
138,948
86,252
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2017 2018 2019 2020
258,620
202,283
244,049
162,985
0
50,000
100,000
150,000
200,000
250,000
300,000
2017 2018 2019 2020
Social Media 2020 2019 2018 2017
Facebook Page Likes 7,117 6,698 6,251 4,816
Website Visitors Unique Visitors Pageviews
6.D.c
Packet Pg. 44 Attachment: VisitGilroy_TBID_Presentation_2020 - 4-19-21 (3214 : TBID Annual Report)
Lodging Conversions
57.3%
60.7%
54.8%
39.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2017 2018 2019 2020
Conversion Rates
6.D.c
Packet Pg. 45 Attachment: VisitGilroy_TBID_Presentation_2020 - 4-19-21 (3214 : TBID Annual Report)
Conversions Clicks Conversion Rate
Lodging 976 39.9%
•Corde Valle, A Rosewood Resort 270 clicks
•Hilton Garden Inn 192 clicks
•Best Western Plus - Forest Park Inn 158 clicks
•Garlic Farm Inn 68 clicks
•Quality Inn and Suites 54 clicks
•Days Inn Gilroy 41 clicks
•Inn at Casa de Fruta 38 clicks
•Motel 6 35 clicks
•Hampton Inn & Suites 34 clicks
•Econolodge of Gilroy 26 clicks
•Super 8 Motel 21 clicks
•The Oaks Motel 16 clicks
•Travel Inn 8 clicks
•Budget Motel 7 clicks
•Pacheco Pass Motel 3 clicks
•Gilroy Inn 2 clicks
•King's Rest Motel 2 clicks
•Hampton Inn Suites 1 clicks
Total of 976 clicks
Lodging Conversions
January 1 - December 31, 2020
6.D.c
Packet Pg. 46 Attachment: VisitGilroy_TBID_Presentation_2020 - 4-19-21 (3214 : TBID Annual Report)
6.D.dPacket Pg. 47Attachment: GTBID 2020 Annual Budget Report - 4-19-21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 48Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 49Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 50Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 51Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 52Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 53Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 54Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
6.D.ePacket Pg. 55Attachment: GTBID 2020 Annual Report to City Council - 4-19 -21 (3214 : TBID Annual Report)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of an Agreement in the Amount of $1,050,000 with
HouseKeys, Inc. to Administer the City's Below Market Rate
Housing Programs from May 1, 2021 to June 30, 2024, with Two,
One-Year Extensions Possible (21-RFP-CDD-457)
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Maria De Leon
Prepared By: Maria De Leon
Karen Garner
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
a) Approve a budget amendment in the amount of $70,000 in the Housing Trust
Fund for the Fiscal Year 2021 services of this agreement.
b) Approve an agreement in the amount of $1,050,000 with HouseKeys, Inc. to
administer the below market rate housing programs from May 1, 2021 to June
30, 2024, with two, one-year extensions possible, and authorize the City
Administrator to execute the agreement and related documents.
EXECUTIVE SUMMARY
7.A
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Since April of 2017, Housekeys Inc. (HouseKeys) has served as the administrator of the
City’s Below Market Rate (BMR) homeownership program. HouseKeys has managed
the City’s homeownership program under a contract that was recently extended through
April 30, 2021. Over the past several months, staff evaluated the City’s needs for all
BMR programs including homeownership, loan, and rental programs with the goal of
ensuring sound long-term investment into the programs and maximizing affordable
housing opportunities for Gilroy residents. A competitive Request for Proposals (RFP)
for the long-term management of the City’s BMR programs (21-RFP-CDD-457) was
issued on February 5, 2021 and through this request, HouseKeys was the only provider
to submit a proposal. Staff reviewed that proposal and found HouseKeys to be qualified
to administer the City’s BMR programs. Staff proposes that the City enter into an
agreement with HouseKeys for the full administration of all components that make up
the BMR program from May 1, 2021 to June 30, 2024, with two, one-year extensions
possible.
BACKGROUND
In late 2013, South County Housing (SCH), a predecessor agency that administered
BMR programs in Gilroy, ceased operations. SCH transferred its multi-family portfolio to
Eden Housing and entered into an agreement with a regional provider, Neighborhood
Housing Services Silicon Valley (NHSSV), to administer SCH’s homeownership
portfolio. However, in mid-2015, NHSSV also ceased operations. From mid-2015 to
early 2016, City staff worked with NHSSV and SCH staff to obtain the proper
documents to facilitate the transfer of the portfolio to the City as the City was a party to
most of the agreements.
At the time, the Housing and Community Development (HCD) division of the Community
Development Department had a part-time Housing Specialist and a full-time Housing
and Grants Manager on staff that could manage the BMR portfolio. Prior to SCH’s
dissolution, the City was responsible for oversight of 138 BMR properties. The
dissolution of SCH added an additional 155 BMR properties for a total of 293 units for
City staff to manage.
Later, when Housing staffing was reduced, it was decided that instead of recruiting to fill
a vacant part-time position, it was best to seek a third-party administrator to manage the
comprehensive BMR homeownership portfolio. This decision was in line with a model
other cities in Santa Clara County had adopted in response to the dissolution of
NHSSV.
On March 6, 2017, Council approved an agreement with HouseKeys to administer the
City’s BMR homeownership program until June 30, 2020 which has since been
extended until April 30, 2021. This contract did not include administration of BMR rental
products or loans. HouseKeys has continued to successfully manage the City’s BMR
homeownership program, even as the scope of has expanded and further reductions in
7.A
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Housing staff occurred. Currently, there is no in-house expertise to administer BMR
Housing programs.
At this time, the City’s BMR portfolio includes 1,062 BMR rental units and 290 BMR
Homeownership Units, many of which include various deferred loans applied on the
property for programs such as down-payment assistance.
Request for Proposals
On February 5, 2021, the City issued RFP #21-RFP-CDD-457 seeking a consultant for
the administration of all three components that make up BMR Program Administration;
Homeownership, Rentals, and Loans. The RFP was published in the Mercury News,
posted on the City’s website and emailed directly to the following prospective
consultants:
• HouseKeys, Inc.
• Alta Housing
• Hello Housing
• Housing Trust Silicon Valley
At the conclusion of the solicitation period, the City received one proposal from
HouseKeys for the full administration of all components that make up the BMR program.
ANALYSIS
As a result of City restructuring that has recently been implemented, many Housing
related programs have shifted from the Community Development Department over to
the City Administrator’s Department. Community Development Block Grant, Housing
Trust Fund and BMR related programs are managed by a Program Administrator and
supported by a Housing Technician. In addition, the Management Analyst for the
Community Development Department provides continued analytical and administrative
support to this division.
Given current staffing resources and the complex and highly specialized nature of the
BMR programs, staff determined that the programs would be best served by a
professional organization that has the knowledge, resources and staffing to successfully
manage the program. Staff’s evaluation of the proposal has determined that HouseKeys
will best serve the interests of the City and the BMR programs.
HouseKeys Proposal
HouseKeys is an experienced administrator of all aspects of BMR programs and
provides BMR program administration services for the cities of Morgan Hill, Campbell,
Burlingame, San Ramon, Santa Clara, Hayward, West Hollywood, and Menlo Park.
Their staff roster has grown since the company’s founding in 2015 and includes
7.A
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divisions in program operations, underwriting and compliance, asset management,
software engineering, and communications.
HouseKeys proposal details their intent to administrator all three components of the
program. The proposal submitted is structured to provide an increased level of service
in the first two years of the contract. This is necessary to on-board the rental program
component of the BMR program, update and clean-up records to reflect the current
status of the rental units, and develop the program structure, reporting and marketing
materials. By year three, all BMR programs will be current and the contract cost will be
reflective of ongoing administrative support.
The HouseKeys proposal includes a detailed scope of work for management of the
comprehensive BMR program. Examples of what the scope includes the following:
- Conducting proper documentation when recording BMR property transactions
- Holding orientations and workshops for residents
- Developing and consistently updating program guidelines and materials
- Maintain an affordability program website that will link to the Agency’s housing
website
- Provide a quarterly program summary report which includes performance metrics
- Maintain the Agency’s existing records and files through a proprietary database-
driven information retention and management system for the programs.
- Act as Transaction Coordinator for all real estate transactions and will provide the
City with a Fee Schedule
- Conduct marketing and outreach efforts
One of the most important components of the proposal is monitoring and compliance
activities. Currently, the City is not able to conduct annual compliance monitoring of its
BMR portfolio. Compliance monitoring is necessary to ensure continued affordability of
BMR units. The proposal by HouseKeys includes a scope for conducting annual
compliance for both the homeownership and rental components of the BMR program.
This service is vital to ensuring the integrity of the BMR portfolio for the City and the
residents benefiting from the program.
The City vetted this proposal by assembling a group of City staff to review and score the
proposal, conduct reference checks, and interviewed a HouseKeys representative. In
the vetting process, the City determined that HouseKeys was qualified to conduct the
services proposed in the RFP, and a ‘Notice of Intent to Award’ was issued on March
22, 2021 to submit an agreement for Council approval on April 19, 2021.
ALTERNATIVES
7.A
Packet Pg. 59
If Council chooses to reject this agreement, HouseKeys current administration of the
BMR program will end on April 30, 2021. The City does not have the resources nor the
expertise to effectively manage these programs in-house. Permanent staffing with the
expertise could be hired, however when the City last recruited for a Housing and Grants
Manager in 2019, we were unsuccessful in filling the position.
FISCAL IMPACT/FUNDING SOURCE
The total contract over the five-year period from May 1, 2021 to June 30, 2026 would
total $1,050,000. In the initial three-year, two-month period, the total amount paid to
HouseKeys would be $695,000. The first-year annual payment would total $270,000,
which includes the $30,000 one-time fee to on-board the rental program component of
the BMR program. By year three of the program, the annual payment for on-going
administrative support would come out to $180,000, or $15,000 per month. This would
be the annual payment as well if the fourth- and fifth-year options are exercised.
This agreement will be primarily funded by the Housing Trust Fund (HTF). As of April 6,
2021, the fund balance for the HTF stood at $2,793,182. Of that balance, $747,490 is
held in the form of cash. With this agreement, the HTF will support two major programs;
The HTF grant program which gives grants to non-profits for housing and homeless
related programs, and the BMR program. The table below represents what the
projected expenditures would be for this agreement over a five-year period.
Period Annual Cost
May 1, 2021 – April 30, 2022 $270,000
May 1, 2022 – April 30, 2023 $210,000
May 1, 2023 – April 30, 2024 $180,000
May 1, 2024 – June 30, 2024 $30,000
July 1, 2024 – June 30, 2025 $180,000
July 1, 2025 – June 30, 2026 $180,000
(1) In addition to HTF funds, the City will utilize up to 5% of program income from CALHOME funds and
5% of BEGIN funds to help subsidize the costs for this contract. Under the agreements for these
programs, those percentages can be used towards the costs of loan servicing and collections. This is
a function that HouseKeys will be conducting as part of the loan-serving portion of the BMR program.
Primary sources of revenue towards the Housing Trust Fund include down-payment
assistance loans, a currently inactive program, and equity share payments that the City
receives on BMR property transactions. In total, these two revenue sources brought in a
total of $198,965 in FY 20 and $158,601 in FY 21 to date.
Financial assets and revenue flow in the HTF are sufficient to support the BMR program
and the HouseKeys contract throughout the initial period of the agreement. In the near
term, the City plans to evaluate the fund, programs, and policies and come to Council to
develop strategies to ensure the long-term solvency of the funds and evaluate the
programs that this fund supports.
7.A
Packet Pg. 60
CONCLUSION
Affordable housing and homeless prevention in our community is one of the top issues
that our City is facing. Approval of this contract would constitute a significant investment
into the management of the City’s BMR programs. Bringing in a consultant that has the
extensive knowledge, resources, and regional partnerships will benefit the City by
having a strong BMR program that can effectively serve Gilroy’s most vulnerable
residents by maintaining the current BMR portfolio in Gilroy.
NEXT STEPS
Upon approval of this agreement, staff will execute the agreement for work to begin
starting on May 1, 2021. Upon the issuance of the Notice to Proceed for the agreement,
HouseKeys will begin the onboarding process for the rental program component of the
new agreement and complete the on-boarding process no later than three months after
issuance.
Attachments:
1. DRAFT Agreement for Services - HouseKeys (5-1-2021 to 6-30-2026)
2. 21-RFP-CDD-457 - Below Market Rate Program Administrator
3. Budget Amendment Resolution - Agreement with HouseKeys (FY 21 Costs)
7.A
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-1- 4835-2267-0361v1 LAC\04706083
AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 19th day of April, 2021, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONSULTANT: HouseKeys, Inc., having a principal place of business at 409 Tennant
Station #395, Morgan Hill, CA 95037.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 1, 2021 and will continue in effect through June
30, 2024, with the option of two, one-year extensions possible unless terminated in accordance
with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not
an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties
acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S
employees, including, without limitation, disability or unemployment insurance, workers’
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONSULTANT shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific
Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in
Exhibit “C” (“Milestone Schedule”).
B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-
described services. CITY shall have no right to, and shall not, control the manner or determine
the method of accomplishing CONSULTANT’S services.
7.A.a
Packet Pg. 62 Attachment: DRAFT Agreement for Services - HouseKeys (5-1-2021 to 6-30-2026) (3241 : Agreement with HouseKeys: BMR Program
-2- 4835-2267-0361v1 LAC\04706083
C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as
CONSULTANT deems necessary to perform the services required of CONSULTANT by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the
performance of those services. CONSULTANT assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location
and at such times as CONSULTANT shall determine is necessary to properly and timely perform
CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONSULTANT exceed $1,050,000.
B. Invoices
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment
will be made unless CONSULTANT has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in
Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any
portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30)
days from receipt of the invoice, give reasons for the objection, and pay that portion of the
invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not
to pay any invoiced amounts to which it has objected until the objection has been resolved by
mutual agreement of the parties.
D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against
CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be
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responsible for any expenses incurred by CONSULTANT in performing services for CITY,
except for those expenses constituting “direct expenses” referenced on Exhibit “A.”
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services
under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase
or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or
death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law,
CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be
unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents
and employees against any and all suits, damages, costs, fees, claims, demands, causes of action,
losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising
or resulting directly or indirectly from any willful or negligent acts, errors or omissions of
CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims
relating to the injury or death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall
defend, through counsel approved by CITY (which approval shall not be unreasonably withheld),
indemnify and hold harmless CITY, its officers, representatives, agents and employees against
any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and
expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly
from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or
agents, including all claims relating to the injury or death of any person or damage to any
property.
D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
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including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions)
with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate;
provided however, Professional Liability Insurance written on a claims made basis must comply
with the requirements set forth below. Professional Liability Insurance written on a claims made
basis (including without limitation the initial policy obtained and all subsequent policies
purchased as renewals or replacements) must show the retroactive date, and the retroactive date
must be before the earlier of the effective date of the contract or the beginning of the contract
work. Claims made Professional Liability Insurance must be maintained, and written evidence
of insurance must be provided, for at least five (5) years after the completion of the contract
work. If claims made coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the earlier of the effective date of the
contract or the beginning of the contract work, CONSULTANT must purchase so called
“extended reporting” or “tail” coverage for a minimum of five (5) years after completion of
work, which must also show a retroactive date that is before the earlier of the effective date of
the contract or the beginning of the contract work. As a condition precedent to CITY’S
obligations under this Agreement, CONSULTANT shall furnish written evidence of such
coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive
Liability insurance policy referred to in (a) immediately above via a specific endorsement) and
requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in
policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONSULTANT under this Agreement may be assigned or subcontracted by
CONSULTANT without the prior written consent of CITY, which CITY may withhold in its
sole and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying
all required state and federal taxes. Without limiting the foregoing, CONSULTANT
acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S
payments;
• CITY will not make state or federal unemployment insurance contributions on
CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to
CONSULTANT;
• CITY will not make disability insurance contributions on behalf of
CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of
CONSULTANT.
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ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONSULTANT. Such assignment shall not release
CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY
termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY’ receipt of such notice of sale.
If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated
upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any
of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written
notification to CONSULTANT. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
2. CONSULTANT’S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C” which have been fully, competently and timely rendered by
CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONSULTANT’S default in the performance of this Agreement or material breach by
CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY
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may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any
and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope
of work as described in this Agreement, to the extent such costs and expenses exceed the
amounts CITY would have been obligated to pay CONSULTANT for the performance of that
task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments
Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONSULTANT shall
cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in
connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to
facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the
CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all
applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current
form and as it may be amended from time to time. CONSULTANT shall also require such
compliance of all subcontractors performing work under this Agreement, subject to the
prohibition against assignment and subcontracting contained in Article 5 above. The
CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the
CITY OF GILROY, its officers, employees, agents and representatives from and against all suits,
claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees,
including without limitation reasonable attorneys’ fees, that may arise out of any violations of
the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or
representatives of either.
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C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys’ fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the
Agreement are for convenience only and shall not be considered nor referred to for resolving
questions of interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed
in the work, or the materials used in the work, or which in any way affect the conduct of the
work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or
authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the
provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or
subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for
goods or services to refrain from discriminatory employment or subcontracting practices on the
basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant
for employment, or any potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONSULTANT and that no person associated with CONSULTANT has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of
this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONSULTANT for CITY and
contains all the covenants and agreements between the parties with respect to the rendering of
such services in any manner whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
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H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the parties at the addresses appearing in
Exhibit “A”, Section V.H. but each party may change the address by written notice in
accordance with this paragraph. Notices delivered personally will be deemed delivered as of
actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of
performance under this Agreement shall not be construed as waiver(s) of any other condition of
performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
HOUSEKEYS, INC. CITY OF GILROY
By: By:
Name: Julius Nyanda Name: Jimmy Forbis
Title: CEO Title: City Administrator
Social Security or Taxpayer
Identification Number 47-3964527
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Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONSULTANT agrees to assign Julius Nyanda, who will act in the
capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the
Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written
“Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Maria De
Leon shall be the designated City contact person(s). Notice to Proceed shall be deemed to have
been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in
the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance
with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final
Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT
may request this determination of completion when, in its opinion, it has completed all of the
Services as required by the terms of this Agreement and, if so requested, CITY shall make this
determination within two (2) weeks of such request, or if CITY determines that CONSULTANT
has not completed all of such Services as required by this Agreement, CITY shall so inform
CONSULTANT within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to
pay only for those direct expenses which have been previously approved in writing by CITY.
CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses
necessary to perform the Services, and its duties and obligations, expressed and implied,
contained herein, and CITY expressly relies upon CONSULTANT’S representations and
warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such
Services and duties in conformance to and consistent with the standards generally recognized as
being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any
and all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any
and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONSULTANT), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all
charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at
the CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONSULTANT and all other written and oral
information developed or received by or for CONSULTANT and all other written and oral
information submitted to CONSULTANT in connection with the performance of this Agreement
shall be held confidential by CONSULTANT and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to
an entity not connected with the performance of the such Services. Nothing furnished to
CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally
known to the related industry (other than that which becomes generally known as the result of
CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under
this Agreement in any magazine, trade paper, newspaper or other medium without the express
written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit
of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may
retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work,
whether or not associated with the City project for which the Services are performed. However,
CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from,
damages resulting from the use of said material for work other than PROJECT, including, but
not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Maria De Leon
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Julius Nyanda
HouseKeys, Inc.
409 Tennant Station #395
Morgan Hill, CA 95037
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable
cost for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONSULTANT, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this
Agreement without liability or, at its discretion, to deduct from the agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift or contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
The CONSULTANT will be responsible for administering three programs that make up the
City's overall Below Market Rate (BMR) Program; the Rental Program, Homeownership
Program, and the Loan Program.
1. BMR Rental Program Administration Setup
a. Design and set up a formal BMR interest list into a database administered by the
consultant and owned by the CITY.
b. Review and organize Gilroy BMR rental files and the CITY’s existing digital
inventory and create a system for ongoing administration and monitoring.
c. Review existing BMR Agreement templates and suggest modifications that are in line
with industry best practices.
d. Establish point of contact with management individuals and companies of BMR rental
units.
e. Create flow charts and protocols for BMR rental program processes.
f. Update web content to include information on the Gilroy BMR rental program with
frequently asked questions, online application forms (e.g., pre-qualification) and other
relevant information.
Deliverables: Updated BMR Agreement templates; flow charts and protocols; web content
2. BMR Program Administration
a. BMR Inquiries: The CONSULTANT will be responsible for handling calls, emails,
and in-person inquiries from current housing portfolio loan holders and respond in a
timely manner.
b. BMR Eligibility List: The CONSULTANT will maintain a list of qualified buyers.
c. BMR Program Reports: The CONSULTANT will provide written quarterly reports
to staff and the City Council on the general status of the BMR program administration,
including:
i. General Program activity
ii. BMR compliance (see item #3)
iii. Loan activity (see item #4)
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iv. Current inventory of all affordable units within Gilroy City limits
v. Resale value of all BMR homes as requested by the County, annually
vi. Other information as needed for County and State reporting
d. CONSULTANT will establish a recurring meeting schedule to meet with CITY staff to
provide updates on program administration.
i. CONSULTANT will submit updated flow charts to the program coordinator
prior to every recurring meeting.
Deliverables: Quarterly BMR Program Reports
3. Annual BMR Compliance Monitoring
a. BMR Homeowner Certification: The CONSULTANT will coordinate with
homeowners on an annual basis to certify that the original buyer continues to comply
with the signed BMR Agreement including living in the BMR home as their principle
residence. The CONSULTANT will work with the City to remedy potential BMR
defaults in accordance with the BMR Agreement.
b. BMR Renter Certification: The CONSULTANT will coordinate with property
managers on an annual basis to certify that all BMR units are occupied by renters who
continue to meet income requirements. The CONSULTANT will also ensure that the
appropriate rent is being charged given annual updates to HUD income limits and utility
estimates.
Deliverables: Annual Compliance Report
4. Existing Loan Administration
a. The CONSULTANT will maintain an updated database, to be owned by the City,
of all first-time-homebuyer and other housing loans (borrower name and address, loan
amount, interest rate, loan term, loan distribution date and due date). This database will
also include principal and interest received for loans that have been paid off, as well as
any principal written off as a result of foreclosure or other default.
b. The CONSULTANT will monitor existing first-time-homebuyer and other housing
loans annually to ensure that the borrower remains in compliance with the loan
agreement (e.g., current homeowner insurance, original buyer continues to reside on
property). In case of default, the CONSULTANT will contact the owner and work
with the City to see that the loan is repaid.
c. The CONSULTANT will work with the City to process all paperwork and legal
recordings required when first-time homebuyer loans and other housing loans are paid off
or refinanced (as needed basis).
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Deliverables: Existing loan database
5. BMR Home Sales/Resales (as needed basis)
a. BMR Marketing: The CONSULTANT will work with each Developer, Homeowner,
and/or the City to market the availability of new and resale BMR homes to eligible
households who have expressed interest in the BMR program. This task will include
providing marketing materials in both English and Spanish to CITY staff for the
CITY’s website.
b. Sales Price: Upon request, the CONSULTANT will supply the CITY with current
mortgage interest rates and other information necessary to set sales prices of new BMR
homes and existing BMR homes being offered for resale.
c. Homeowner Eligibility: The CONSULTANT will submit the data on each eligible
applicant to the CITY for approval prior to formalizing any Agreement.
d. BMR Homeowner Documents: The CONSULTANT will coordinate with the
Developer, lender, Title Company, and homeowner and review all required documents to
ensure that each BMR household meets the requirements of the BMR program. The BMR
Administrator will prepare and record all legal documents required for each BMR
homebuyer. The Developer and/or homeowner will pay the CONSULTANT directly
for the cost of recording these documents. The CONSULTANT will create both a hard
file and electronic copy of pertinent documents for each homeowner. The original files,
including all recorded documents will be kept in Gilroy’s office of Housing and
Community Development.
Deliverables: Marketing materials (English & Spanish); Sales prices & related information (upon
request); homeowner eligibility data; BMR Homeowner documentation/files
6. Housing Fund / BMR Programs: The CONSULTANT will work with CITY staff to
recommend, develop, and implement programs using the CITY Housing Trust Fund and
Deferred Down Payment Assistance Loan cash funds. Gilroy City Council will approve any new
programs under this task.
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EXHIBIT “C”
MILESTONE SCHEDULE
Onboarding of the BMR Rental Program: CONSULTANT shall conduct onboarding of the BMR
Rental Program beginning upon issuance of the Notice to Proceed and ending within 90 days
after the issuance. During this on-boarding process, the CITY expects the CONSULTANTS to
generate the following deliverables for the BMR Rental Program:
- Index of all BMR Rental Units in Gilroy
- Established points-of-contact with all BMR Rental property owners and managers in
Gilroy
- Rental Guide (English and Spanish)
- Compliance letter template
- Webpage for BMR rental program (English and Spanish)
- Average Median Income for most current year
- Rental prices for all income levels across multiple bedroom types with methodology
explained
- Workflows/schedules for annual compliance
- Workflows/schedules for compliance issues
In addition to these milestones, other deliverables by the CONSULTANT are expected to be
delivered during the following timeframes.
- Updated BMR Agreement templates, flow charts, protocols, and web content: Within
120 days of issuance of the Notice to Proceed.
- Quarterly BMR Program Reports: Each report shall be delivered to the CITY within 30
days after the conclusion of the quarter
- Annual Compliance Report: A comprehensive report shall be delivered to the CITY
within 30 days after the completion of a Fiscal Year (June 30th).
- Exisiting Loan Database: The loan database shall be updated to reflect current
outstanding loans within 120 days of issuance of the Notice to Proceed.
- Marketing materials (English & Spanish), Sales prices & related information (upon
request), homeowner eligibility data, BMR Homeowner documentation/files: This
information shall be made up-to-date within 120 days of issuance of the Notice to
Proceed.
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Failure to meet these milestone requirements shall constitute a suspension of payment to the
CONSULTANT until the respective deliverable is delivered to the CITY.
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EXHIBIT “D”
PAYMENT SCHEDULE
Program Onboarding for the Rental Program $30,000 (One-Time Fee)
Annual Fee for Rental Program Administration $90,000
Annual Fee for Homeownership Program Administration $120,000
Annual Fee for Loan Program Administration $30,000 (Waived after
First Year)
Total Cost Breakdown of Overall Contract
First Year $270,000 ($30,000 Initial Payment - Single
Invoice Billed Upon Contract Signing, $20,000
paid monthly)
Second Year $210,000 ($17,500 paid monthly)
Third Year $180,000 ($15,000 paid monthly)
May 1, 2024 to June 30, 2024 $30,000 ($15,000 paid monthly)
Fourth Year (If extended) $180,000 ($15,000 paid monthly)
Fifth Year (If extended) $180,000 ($15,000 paid monthly)
STANDARD FEE SCHEDULE FOR 2021
- Rental Unit Processing Fee
- $1,500 per lease transaction
- CAP/MAX: $1,500 per lease transaction
- Billed to Developer
- Loan Processing Transaction Fee
- $1,250 per transaction
- CAP/MAX: $1,250 per transaction
- Billed to Owner/Lender
- Refinance & Document Processing Fee
- $1,250 per transaction
- CAP/MAX: $1,250 per transaction
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- Billed to Owner/Lender
- New Ownership Sales Transaction Fee
- 3% of Sales Price
- CAP/MAX: $18,000
- Paid by Owner
- Ownership Resale Transaction Fee
- 6% of New Sales Price
- CAP/MAX: $36,000
- Paid by Owner
- Acquisition and Ownership Resale/Rehab Transaction Fee
- 5% of Resale Restriction Price plus 5% of New Sales Price
- CAP/MAX: $60,000
- Included in the Resale Price
- Billing Rate for Projects Outside of Contract Scope
- $250 per hour
- CAP/MAX: $250 per hour
- Paid by the CITY upon request
The CONSULTANT shall provide the CITY with an updated Fee Schedule on an annual
basis during the month of January throughout the term of the agreement.
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City of Gilroy
Community Development Department
ATTN: CARINA BAKSA
CITY OF GILROY
7351 ROSANNA STREET
GILROY, CA 95020-6197
Request for Proposals
Below Market Rate Housing Program
Administrator
No. 21-RFP-CDD-457
Proposals Due by: 3:00 pm, Thursday, March 4th, 2021
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Request for Proposals
No. 21-RFP-CDD-457
Notice is hereby given that ELECTRONIC Requests for Proposals will be received at the City of Gilroy, for
Below Market Rate Housing Program Administrator, Project No. 21-RFP-CDD-457 as described in the
attached Request for Proposals. Please note that City Hall is closed to the public due to the ongoing COVID-
19 pandemic. RFPs will be accepted by email to carina.baksa@cityofgilroy.org until 3:00 pm, Thursday,
March 4th, 2021. RFPs received after that time and date will not be considered. The City of Gilroy accepts
no responsibility if delivery is made to another location other than location specified above and/or delayed
deliveries. RFPs should be submitted in a complete, single electronic file to the email specified in this
notice. An evaluation team will review proposals and select a vendor based on the selection criteria and
process outlined in the RFP. The selected vendor will enter into an agreement for a period of five (5) years
upon approval by City Council.
A free electronic copy of the RFP can be obtained by going to the City of Gilroy website
(www.cityofgilroy.org). Due to the ongoing COVID-19 pandemic, all prospective parties should check the
City’s website for any addendums.
Respectfully Requested,
Carina Baksa
Management Analyst
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No. 21-RFP-CDD-457
Below Market Rate Program Administrator
Table of Contents
Introduction ....................................................................................................................................... 1
Project Description ............................................................................................................................. 1
Issuing Office ...................................................................................................................................... 2
Anticipated RFP Schedule .................................................................................................................... 2
Submission Date and Location ............................................................................................................. 3
Protests .............................................................................................................................................. 3
Rejection of Proposals ......................................................................................................................... 3
Modification / Withdrawal .................................................................................................................. 3
Cancellation ........................................................................................................................................ 4
Duration of Proposals ......................................................................................................................... 4
Public Record ...................................................................................................................................... 4
Incurring Costs .................................................................................................................................... 4
Selection Process ................................................................................................................................ 4
Proposal Contents ............................................................................................................................... 4
Proposal Evaluation Criteria and Scoring .............................................................................................. 5
Total Score.......................................................................................................................................... 6
Scope of Work .................................................................................................................................... 7
Attachment A - Sample Agreement for Services Contract ..................................................................... 9
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Introduction
The City of Gilroy (City) is seeking a qualified Below Market Rate (BMR) Program Administrator to
provide services to administer the City of Gilroy’s (City) BMR programs.
The City of Gilroy is a charter city located in southern Santa Clara County with a population of
approximately 57,000. The City is a council-administrator form of government with the mayor elected at
large for a four year term and six City Councilmembers who are elected at large for four year terms.
Development activity in the original Gilroy town site dates back to the early 1800s, with the City formally
incorporating in 1870. Since then, the City experienced several annexations and growth periods
throughout the 20th and 21st centuries.
Information regarding the City and its organization, such as governmental structure, services provided,
the Current Operating and Capital Budgets, is available on the City website at www.cityofgilroy.org
Project Description
California is experiencing a housing supply crisis, with housing demand far outstripping supply. The
housing crisis has particularly exacerbated the need for affordable homes at below market rate (BMR)
prices. BMR eligibility is based on the area median family income (AMI) for Santa Clara County. Gilroy
has a lower median income than the AMI, and therefore has more residents that qualify for BMR
housing.
Approximately 4,808 Gilroy residents fall below the poverty level, according to the American Community
Survey in 2019. According to the same survey, approximately 37% of households had a median income
under $75,000, qualifying a household of four (4), as very-low income.
Source:
https://data.census.gov/cedsci/table?q=Gilroy%20city,%20California%20Income%20and%20Poverty&ti
d=ACSST5Y2019.S1701&hidePreview=false
The City of Gilroy is seeking a firm to partner with city staff to manage a key program in providing
affordable housing to our residents. We are seeking dedicated, professional staff that can apply their
knowledge and expertise to ensure efficient and effective delivery of Gilroy’s BMR programs. The ideal
firm will not only manage programs, but provide solutions to issues and barriers and help the City of
Gilroy provide a variety of housing options for our residents.
The City has approximately 15,000 housing units for a population of approximately 57,000 residents. The
‘Residential Development Ordinance Affordable Housing Exemption Procedure’ was the primary
mechanism for the development of affordable homeownership and rental housing in the City. The City is
in the process of crafting new mechanisms compliant with state law to encourage the development of
additional affordable housing units in the City.
BMR Homeownership: There are approximately 290 BMR homeownership units in the city. These units
are restricted with a mix of Deeds of Trust, Promissory Notes and Resale Restriction Agreements that
are recorded on the properties. These documents, among other items, dictate the sales process, the
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allowable sales price and income qualifications of prospective buyers. In addition, most of the homes
include deferred loans (from local and state resources) that include various provisions for repayment
that are due upon sale or default.
BMR Rentals: The City has approximately 1,062 affordable multi-family units contained within 20
complexes. The units are affordable due to tax credit and/or other federal, state, and local
requirements. The method for securing affordability is through deed restrictions (also termed
“affordable covenants” or “resale restriction agreements”). Many of the complexes have multiple deed
restrictions placed on the properties due to criteria stipulated by various funding sources. Some of these
deed restrictions include those placed on the property by the City and require certain compliance
requirements the properties must follow.
First-Time Homebuyer Loans: The City has provided various down payment assistance loans utilizing
local Housing Trust Fund (HTF) dollars and state grants. In addition, the City has assumed responsibility
of deferred down payment assistance loans from the South County Housing Authority in 2017. Many of
these loans are deferred while a small amount are repayment loans administered by a third-party
processor. In addition, most of the BMR homes have deferred loans that are due upon sale or at the
request of the homeowner.
Issuing Office
The Finance Department is the Issuing Office for this Request for Proposal (RFP) and the point of contact
for all process and contract questions as well as protest, and all correspondence shall be through e-mail.
Technical questions shall be directed to the Project Manager.
Issuing Office Project Manager
Finance Department Community Development Department
Carina Baksa Karen Garner
Purchasing Coordinator Director, Community Development Department
7351 Rosanna Street 7351 Rosanna Street
Gilroy, CA 95020 Gilroy, CA 95020
carina.baksa@cityofgilroy.org karen.garner@cityofgilroy.org
Anticipated RFP Schedule
The City anticipates the following general timeline for this RFP and the schedule may
change as necessary.
Selection Process Actions Target Date
RFP distributed to prospective Consultants and Advertised Friday, February 5th, 2021
Deadline to submit RFP questions Wednesday, February 24th, 2021 at 4:00 PM
Questions posted on the City’s website Thursday, February 25th, 2021
RFP submissions due to City of Gilroy (Final) Thursday, March 4th, 2021 at 3:00 PM
Interviews (If Necessary) March 17th to March 18th, 2021
City Council staff report posted on website Wednesday, March 31st, 2021
City Council Meeting Monday, April 6th, 2021
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Submission Date and Location
Each responding Consultant must provide one electronic copy marked with the RFP
number, the consultant’s name before delivering to the address listed below. The
packets must be emailed directly to carina.baksa@ci.gilroy.ca.us before the deadline.
Solicitation Documents and Changes (Addenda)
All solicitation documents may be viewed or printed on line from the City’s website at
www.cityofgilroy.org or may be viewed onsite at the Issuing Office at the address listed
above.
Proposals received from other sources will not be considered valid documents. Please
contact the Issuing Office listed above with any problems viewing solicitation
documents.
All questions regarding this solicitation shall be submitted via e-mail. The questions will
be researched and the answers will be communicated to all known interested
Consultants and posted on the City’s website after the deadline for receipt of questions.
Prospective Consultant shall not contact City officers or employees with questions or
suggestions regarding this solicitation except through the primary contact person listed
above. Any unauthorized contact may be considered undue pressure and cause for
disqualification of the Consultant.
Consultants are responsible for checking the City’s website for the issuance of any
addenda prior to submitting a proposal. The Consultant is held responsible for all
addenda/changes to the documents and may be considered non-responsive if their
proposal does not reflect those addenda/changes.
Protests
Any complaints or perceived inequities related to this RFP shall be made in writing and
directed to the Issuing Office at the address listed above and accordance with the City
purchasing policy procedure 17. This policy may be found on the City’s website, located
here: http://www.cityofgilroy.org/DocumentCenter/View/10774/Gilroy-Purchasing-
Policy-.
Rejection of Proposals
The City reserves the right to reject any and all proposals submitted. The City also
reserves the right to waive or not waive any informalities or irregularities in proposal
responses.
Modification / Withdrawal
Unless otherwise specified, modification of the Proposal will not be permitted;
however a Consultant may withdraw his or her Proposal at any time prior to the
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scheduled closing time for receipt of Proposals; any Consultant may withdraw his or
her Proposal, either personally or by written request to the Issuing Office. Withdrawal
of Proposal shall not disqualify the Consultant from submitting another Proposal
provided the time for receipt of Proposals has not expired.
Cancellation
The City reserves the right to cancel award of this contract at any time before
execution of the contract by both parties if cancellation is deemed to be in the C ity ’s
best interest. In no event shall the City have any liability for the cancellation of award.
Duration of Proposals
Proposals must remain valid for at least 90 days. Proposals must be signed by an
official authorized to bind the Consultant.
Public Record
All proposals submitted are the property of the City and are public records. All
documents received by the City are subject to public disclosure after the City selects a
Consultant.
Incurring Costs
The City is not liable for any cost incurred by Consultants prior to execution of
a contract.
Selection Process
The City reserves the right to select the Consultant on the basis of the proposals or to
conduct interviews with the highest qualified Consultants following evaluation and
scoring of the proposals, whichever is determined to best serve the needs of the
C ity . The City reserves the right to seek clarifications of any or all proposals.
Proposal Contents
The qualification packet, per category, shall be organized to include the following sections. Each packet
should be tabbed or marked with six (6) sections. The contents for each section are listed below, and
must be presented in the same order. The Consultant shall be responsible for preparing an effective and
clear proposal. Concise proposals without needless duplication are encouraged.
The packet must contain at a minimum the following information:
1. Cover Letter: Please include a cover letter which includes your interest in administering the City
of Gilroy’s BMR Program and any other information that you would like to highlight. Maximum
one page.
2. Qualifications: Describe your firm’s experience and qualifications to administer Gilroy’s BMR
Program, including processing Resale Restriction Agreements and Deeds of Trust; loan
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subordination and payoff transactions; compliance monitoring and certification; transfers and
defaults. Include a list of jurisdictions for which you provide similar services. Provide an example
of your experience in dealing with compliance issues (i.e., steps taken, outcome, etc.). Maximum
four pages.
3. Program Administration: Provide a detailed discussion of how your firm will implement and
administer the BMR Program, including the protocol your firm will use for each of the tasks
identified in the Scope of Services. Include what your work plan will look like during the initial
onboarding/implementation of the BMR program and any one-time costs associated with this
phase of BMR program management. Include a description of the anticipated interaction
between your firm, the City, and BMR clients. Include an organizational chart which identifies
the primary role of each team member (e.g., BMR inquiries, document preparation, monitoring,
etc.). Maximum six pages.
4. Key Team Member Summary: Provide a resume for the BMR Program Manager, main point of
contact, and any other key staff who will be involved in the day-to-day administration of the
City’s BMR program (e.g., interacting with applicants and city staff, preparing and recording legal
documents, submitting reports, etc.). Maximum six pages.
5. References: Include the name, address, phone number, and email for a minimum of three (3)
references for which you administer their affordable housing program. Maximum one page.
6. Costs: Submit a summary of the costs that it would take to administer the City’s BMR program.
Include costs for each of the three separate components of the BMR program. Include all
relevant information such as:
a. Breakdown of costs on an annual basis, including one-time costs for initial
implementation of all three components of the program
b. Hourly rates for staff
c. An indirect cost rate
d. The not-to-exceed amount for total BMR program administration over a five year period
e. Separate out costs for services as requested in this scope of services and any additional
services offered or recommended
Proposal Evaluation Criteria and Scoring
The criteria listed below will be used to evaluate the Consultants.
• Consultant’s understanding of the scope of services
Does the proposal reflect a clear understanding of the proposed Scope of
Services? Does the program administration and services proposed meet the
needs of the City of Gilroy’s BMR Programs?
• Consultant’s corporate and team member qualifications and experience
Do the qualifications and experience of the consultant firm and individual
proposed team members demonstrate a quality that gives confidence of a high
value and excellence of service delivery for the City?
• Consultant’s references quality and responses
Are the references from similar sized cities, are they provided the same or similar
services as proposed, and how did the reference rate the proposing Consultant?
• Overall quality of the response to the RFP
Were the answers clear, concise, and well formulated? Does the proposal
document make sense, is it structured well, and address all matters fully?
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• Consultant’s cost proposal
Is the proposed cost proposal acceptable? Is the basis for the billing structure
reasonable?
Total Score
Each packet submittal will be reviewed and scored, per the criteria described above.
Based on the number and quality of responses, Consultants may be asked to continue to
the interview/presentation step in the process. Each package may receive a maximum of
50 points, as summarized below:
CRITERIA POINTS
Understanding of the scope of services 15
Corporate and team member qualifications and
experience 10
References quality and responses 10
Overall quality of the response to the RFP 10
Cost proposal 5
TOTAL 50
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Scope of Work
1. BMR Program Administration Setup
a. Design and set up a formal BMR interest list into a database administered by the consultant and
owned by the City.
b. Review and organize Gilroy BMR homeowner files, rental files, loan files, and the City’s existing
digital inventory and create a system for ongoing administration and monitoring.
c. Review existing BMR Agreement templates and suggest modifications that are in line with
industry best practices.
d. Establish point of contact with management individuals and companies of BMR rental units.
e. Create flow charts and protocols for BMR home transfers, loan payoff/subordination, default
remedies, and other processes associated with the BMR program.
f. Provide content for a dedicated webpage for the Gilroy BMR program with frequently asked
questions, online application forms (e.g., pre-qualification) and other relevant information.
Deliverables: Updated BMR Agreement templates; flow charts and protocols; web content
2. BMR Program Administration
a. BMR Inquiries: The BMR Administrator will be responsible for handling calls, emails, and in-
person inquiries from current housing portfolio loan holders and respond in a timely manner.
b. BMR Eligibility List: The BMR Administrator will maintain a list of qualified buyers.
c. BMR Program Reports: The BMR Administrator will provide written quarterly reports to staff
and the City Council on the general status of the BMR program administration, including:
i. General Program activity
ii. BMR compliance (see item #3)
iii. Loan activity (see item #4)
iv. Current inventory of all affordable units within Gilroy City limits
v. Resale value of all BMR homes as requested by the County, annually
vi. Other information as needed for County and State reporting
Deliverables: Quarterly BMR Program Reports
3. Annual BMR Compliance Monitoring
a. BMR Homeowner Certification: The BMR Administrator will coordinate with homeowners on an
annual basis to certify that the original buyer continues to comply with the signed BMR
Agreement including living in the BMR home as their principle residence. The BMR
Administrator will work with the City to remedy potential BMR defaults in accordance with the
BMR Agreement.
b. BMR Renter Certification: The BMR Administrator will coordinate with property managers on an
annual basis to certify that all BMR units are occupied by renters who continue to meet income
requirements. The BMR Administrator will also ensure that the appropriate rent is being
charged given annual updates to HUD income limits and utility estimates.
Deliverables: Annual Compliance Report
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4. Existing Loan Administration
a. The BMR Administrator will maintain an updated database, to be owned by the City, of all first-
time-homebuyer and other housing loans (borrower name and address, loan amount, interest
rate, loan term, loan distribution date and due date). This database will also include principal
and interest received for loans that have been paid off, as well as any principal written off as a
result of foreclosure or other default.
b. The BMR Administrator will monitor existing first-time-homebuyer and other housing loans
annually to ensure that the borrower remains in compliance with the loan agreement (e.g.,
current homeowner insurance, original buyer continues to reside on property). In case of
default, the BMR Administrator will contact the owner and work with the City to see that the
loan is repaid.
c. The BMR Administrator will work with the City to process all paperwork and legal recordings
required when first-time homebuyer loans and other housing loans are paid off or refinanced
(as needed basis).
Deliverables: Existing loan database
5. BMR Home Sales/Resales (as needed basis)
a. BMR Marketing: The BMR Administrator will work with each Developer, Homeowner, and/or
the City to market the availability of new and resale BMR homes to eligible households who
have expressed interest in the BMR program. This task will include providing marketing
materials in both English and Spanish to City staff for the City’s website.
b. Sales Price: Upon request, the BMR Administrator will supply the City with current mortgage
interest rates and other information necessary to set sales prices of new BMR homes and
existing BMR homes being offered for resale.
c. Homeowner Eligibility: The BMR Administrator will submit the data on each eligible applicant to
the City for approval prior to formalizing any Agreement.
d. BMR Homeowner Documents: The BMR Administrator will coordinate with the Developer,
lender, Title Company, and homeowner and review all required documents to ensure that each
BMR household meets the requirements of the BMR program. The BMR Administrator will
prepare and record all legal documents required for each BMR homebuyer. The Developer
and/or homeowner will pay the BMR Administrator directly for the cost of recording these
documents. The BMR Administrator will create both a hard file and electronic copy of pertinent
documents for each homeowner. The original files, including all recorded documents will be
kept in Gilroy’s office of Housing and Community Development.
Deliverables: Marketing materials (English & Spanish); Sales prices & related information (upon
request); homeowner eligibility data; BMR Homeowner documentation/files
6. Housing Fund / BMR Programs: The BMR Administrator will work with City staff to recommend,
develop, and implement programs using City of Gilroy Housing Trust Fund and Deferred Down
Payment Assistance Loan cash funds. City Council will approve any new programs under this task.
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Attachment A - Sample Agreement for Services Contract
AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this day of , 20 , between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONSULTANT: , having a principal place of business at .
ARTICLE 1. TERM OF AGREEMENT
This Agreement will be effective on and will continue in effect through unless
terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. ______
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not
an employee, agent, joint venture or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties
acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S
employees, including, without limitation, disability or unemployment insurance, workers’
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONSULTANT shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific
Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit
“C” (“Milestone Schedule”).
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B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described
services. CITY shall have no right to, and shall not, control the manner or determine the method
of accomplishing CONSULTANT’S services.
C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as
CONSULTANT deems necessary to perform the services required of CONSULTANT by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the
performance of those services. CONSULTANT assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location
and at such times as CONSULTANT shall determine is necessary to properly and timely perform
CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay
CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event
however shall the total compensation paid to CONSULTANT exceed .
B. Invoices
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment
will be made unless CONSULTANT has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in Exhibit “A”,
Section IV) incurred during the preceding period. If CITY objects to all or any portion of any
invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt
of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It
shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts
to which it has objected until the objection has been resolved by mutual agreement of the parties.
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D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against
CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be
responsible for any expenses incurred by CONSULTANT in performing services for CITY, except
for those expenses constituting “direct expenses” referenced on Exhibit “A.”
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under
this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent
any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or
death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law,
CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be
unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents
and employees against any and all suits, damages, costs, fees, claims, demands, causes of action,
losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising
or resulting directly or indirectly from any willful or negligent acts, errors or omissions of
CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims
relating to the injury or death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall
defend, through counsel approved by CITY (which approval shall not be unreasonably withheld),
indemnify and hold harmless CITY, its officers, representatives, agents and employees against
any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and
expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly
from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or
agents, including all claims relating to the injury or death of any person or damage to any
property.
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D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions)
with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate;
provided however, Professional Liability Insurance written on a claims made basis must comply
with the requirements set forth below. Professional Liability Insurance written on a claims made
basis (including without limitation the initial policy obtained and all subsequent policies
purchased as renewals or replacements) must show the retroactive date, and the retroactive date
must be before the earlier of the effective date of the contract or the beginning of the contract
work. Claims made Professional Liability Insurance must be maintained, and written evidence
of insurance must be provided, for at least five (5) years after the completion of the contract
work. If claims made coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the earlier of the effective date of the
contract or the beginning of the contract work, CONSULTANT must purchase so called
“extended reporting” or “tail” coverage for a minimum of five (5) years after completion of
work, which must also show a retroactive date that is before the earlier of the effective date of
the contract or the beginning of the contract work. As a condition precedent to CITY’S
obligations under this Agreement, CONSULTANT shall furnish written evidence of such
coverage (naming CITY, its officers and employees as additional insured’s on the
Comprehensive Liability insurance policy referred to in (a) immediately above via a specific
endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a
material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONSULTANT under this Agreement may be assigned or subcontracted by
CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole
and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all
required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges
and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S
payments;
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• CITY will not make state or federal unemployment insurance contributions on
CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to
CONSULTANT;
• CITY will not make disability insurance contributions on behalf of
CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of
CONSULTANT.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONSULTANT. Such assignment shall not release
CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
1. CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no
later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination
pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’
receipt of such notice of sale.
2. If CONSULTANT is an individual, this Agreement shall be deemed automatically
terminated upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of
its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written
notification to CONSULTANT. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
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2. CONSULTANT’S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance w ith the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C” which have been fully, competently and timely rendered by
CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONSULTANT’S default in the performance of this Agreement or material breach by
CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY
may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and
all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of
work as described in this Agreement, to the extent such costs and expenses exceed the amounts
CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant
to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments
Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4
of this Agreement on the date due, then if and only if such nonpayment constitutes a default under
this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement
if such default is not remedied by CITY within thirty (30) days after demand for such payment is
given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONSULTANT shall
cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in
connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to facilitate
any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to
complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable
provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it
may be amended from time to time. CONSULTANT shall also require such compliance of all
subcontractors performing work under this Agreement, subject to the prohibition against
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assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend
with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its
officers, employees, agents and representatives from and against all suits, claims, demands,
damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation
reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT,
its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys’ fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement
are for convenience only and shall not be considered nor referred to for resolving questions of
interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed in
the work, or the materials used in the work, or which in any way affect the conduct of the work,
and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over
the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the
Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a
contract or subcontract to the CITY OF GILROY for public works or for goods or services to
refrain from discriminatory employment or subcontracting practices on the basis of the race, color,
sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any
potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONSULTANT and that no person associated with CONSULTANT has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of this
Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains
all the covenants and agreements between the parties with respect to the rendering of such services
in any manner whatsoever. Each party to this Agreement acknowledges that no representations,
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inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone
acting on behalf of any party, which are not embodied herein, and that no other agreement,
statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in s tate and
federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section
V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be
deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance
under this Agreement shall not be construed as waiver(s) of any other condition of performance
under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
CITY OF GILROY
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By: By:
Name: Name:
Title: Title:
Social Security or Taxpayer
Identification Number
Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of
Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONSULTANT agrees to assign________, who will act in the capacity of
Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the Services
in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written
“Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement,
______________shall be the designated City contact person(s). Notice to Proceed shall be deemed
to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as
provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance with
the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance,
and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request
this determination of completion when, in its opinion, it has completed all of the Services as
required by the terms of this Agreement and, if so requested, CITY shall make this determination
within two (2) weeks of such request, or if CITY determines that CONSULTANT has not
completed all of such Services as required by this Agreement, CITY shall so inform
CONSULTANT within this two (2) week period.
III. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.
Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay
only for those direct expenses which have been previously approved in writing by CITY.
CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
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Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
IV. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary
to perform the Services, and its duties and obligations, expressed and implied, contained herein,
and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its
skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in
conformance to and consistent with the standards generally recognized as being employed by
professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well-organized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY’S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent
performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and
all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any
and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONSULTANT), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all charges
submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s
offices within five (5) business days after CITY’s request.
D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
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other information developed or received by or for CONSULTANT and all other written and oral
information developed or received by or for CONSULTANT and all other written and oral
information submitted to CONSULTANT in connection with the performance of this Agreement
shall be held confidential by CONSULTANT and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an
entity not connected with the performance of the such Services. Nothing furnished to
CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known
to the related industry (other than that which becomes generally known as the result of
CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not
use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this
Agreement in any magazine, trade paper, newspaper or other medium without the express written
consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of
CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain
and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether
or not associated with the City project for which the Services are performed. However,
CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from,
damages resulting from the use of said material for work other than PROJECT, including, but not
limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
H. NOTICES.
Notices are to be sent as follows:
CITY:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
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CONSULTANT:
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost
for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONSULTANT, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement
without liability or, at its discretion, to deduct from the agreement price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or
contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
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EXHIBIT “C”
MILESTONE SCHEDULE
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EXHIBIT “D”
PAYMENT SCHEDULE
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RESOLUTION NO. 2021-XX
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY
OF GILROY FOR FISCAL YEAR 2020-2021 IN THE
HOUSING TRUST FUND AND APROPRIATING
PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2019-2020 and 2020-2021, and the City Council carefully
examined, considered and adopted the same on June 3, 2019; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to said budget for Fiscal Year 2020-2021 for the City of Gilroy in the staff report
dated April 19, 2021 for the “Approval of an Agreement in the Amount of $1,050,000 with
HouseKeys, Inc. to Administer the City's Below Market Rate Housing Programs from May 1,
2021 to June 30, 2024, with Two, One-Year Extensions Possible (21-RFP-CDD-457)”; and
WHEREAS, the City Council has carefully examined and considered the same and is
satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT appropriations for Fiscal Year 2020-21
are hereby increased in the Housing Trust Fund, Fund 259, by $70,000.
PASSED AND ADOPTED this 19th day of April, 2021 by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
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Packet Pg. 109 Attachment: Budget Amendment Resolution - Agreement with HouseKeys (FY 21 Costs) (3241 : Agreement with HouseKeys: BMR Program
RESOLUTION NO. 2021-XX
APPROVED:
___________________________
ATTEST: Marie Blankley, Mayor
_________________________
Suzanne Guzzetta, Deputy City Clerk
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Packet Pg. 110 Attachment: Budget Amendment Resolution - Agreement with HouseKeys (FY 21 Costs) (3241 : Agreement with HouseKeys: BMR Program
City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Contract in an Amount of up to $143,467.42 to Access
Communications, Inc. for the City Council Chambers Audiovisual
Modernization Project
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Human Resources Department
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Scott Golden
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability Public Engagement
RECOMMENDATION
Award a contract in an amount of up to $143,467.42 to Access Communications, Inc. for
the City Council Chambers Audiovisual Modernization Project, and authorize the City
Administrator to execute the contract and related documents.
BACKGROUND
The audiovisual equipment in the Council Chambers has been in dire need of upgrade
for the last several years. Due to changes in technology as well as broken and/or
damaged equipment, improvements are needed. Given that the city will need to have
the technology capability to run hybrid public meetings with both in-person and virtual
participation from the public, upgrades are needed sooner rather than later to ensure
that the city is prepared once in-person attendance at public meetings is allowable.
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ANALYSIS
A request for proposal process (RFP) was completed for audiovisual modernization of
the Council Chambers. The City received two proposals in response to the RFP. Staff
evaluated the two proposal and determined that Access Communications, Inc.’s
proposal best met the needs of the project and was also the most competitive from a
pricing perspective.
The audiovisual upgrades planned will include the following (both equipment and
installation):
• Upgrade of current camera system infrastructure to improve the filming capability
and quality of streaming available to the public.
• Improve the display system in the Council Chambers. Replace the current
projector and screen with a new laser projector and two screens to allow for
viewing from all areas of the Council Chambers.
• Install new digital matrix that will feature support for the required inputs and
outputs. The current analog system is very outdated and no longer supported.
• Improvements to audio system will include a server-based audio solution. All
existing microphones will be repurposed and connected to the new server-based
system. One lavaliere and one handheld wireless microphone will be added to
the system along with a new amplifier. Four surface mounted directional
speakers will be added along with in-ceiling speakers to improve the overall
audio in the Council Chambers.
• American’s with Disabilities Act (ADA) improvements are needed which include
an RF based assisted listening system, seven wireless receivers with lanyards,
and a charging station.
• Three touch panels will be added to allow staff better control of the system during
the live meeting.
• Displays (23 inch) at each of the nine seats and dais will be added and will allow
for easy viewing of materials and presentations during a meeting.
• Remote conferencing option will be added to the system to allow for hybrid
meetings using Zoom or other similar platform.
FISCAL IMPACT
The cost for this improvement project (both equipment and installation) is up to
$143,467.42 and includes a five percent (5%) contingency which will only be used if
needed. There are sufficient funds available in the FY 21 Information Technology
budget to cover the cost of this project.
NEXT STEPS
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Following City Council approval, staff will finalize the agreement and immediately
schedule the equipment purchases and installation. Absent any delays associated with
obtaining the necessary equipment, staff expects configuration to begin in May with a
target overall project completion date by end of July.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Eigleberry and Seventh Street Parking Lot
Alternative Two
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Gary Heap
Prepared By: Gary Heap
Julie Oates
Strategic Plan Goals
☐ Fiscal Stability
Downtown
Revitalization
Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Approve Alternative 2 for the design of the Eigleberry and Seventh Street parking lot,
without the inclusion of the pedestrian plaza.
EXECUTIVE SUMMARY
As part of the City’s Capital Improvement Plan (CIP), the City Council has previously
allocated $1.5M for design and construction of a new downtown parking lot located in
the northeast quadrant of the Eigleberry Street/Seventh Street intersection.
Over the last few months, City staff has worked with a design consultant and developed
three parking lot layout options for Council consideration.
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Although all three options provide a quality project, the goal of achieving the most
parking spots in the most cost-effective manner has been achieved with Alternative No.
2 which creates 137 parking spaces and is the least costly to construct based on a
preliminary engineer’s estimate of $1,661,251.
The community outreach component of this project included Public Works presenting
the three concepts to the Downtown Business Association, Chamber of Commerce, and
the City’s Bicycle Pedestrian Commission. Comments and recommendations from these
three outreach meetings are being considered, including the pros and cons of each
recommendation, and their feasibility from an economic and engineering standpoint.
While costs for the parking lot construction are above the initial $1.5M provided by
Council for the project, staff has identified possible solutions to provide additional funds
needed to complete the project.
Staff recommends Alternative 2 for the parking lot layout and is asking Council to
approve the use of the $208k fund balance in Fund 400, the $250k of savings in Fund
651, and utilize the General Fund to pay for the remaining $49,292 shortfall.
BACKGROUND
With the increase in the City’s population and the growth of Downtown businesses,
there is a need for additional parking in the Downtown area. At the November 26, 2018
City Council meeting, staff presented a conceptual parking plan to Council which
included the construction of a parking lot on City-owned property at the northeast corner
of Eigleberry and Seventh Streets. The recommended surface parking lot would be
constructed on an existing vacant lot and on the Gilroy Demonstration Garden site.
Since community garden desires to move out of this location and create a
demonstration garden elsewhere, the project does not conflict with their interest.
At the January 27, 2020 City Council meeting, Council approved an allocation of
$1,500,000 in funding to the Capital Projects Fund 400 for the construction of a parking
lot at this location and directed staff to move forward with design and construction of this
project. Construction of the Eigleberry and Seventh Parking Lot (Project) will enhance
Downtown economic development. The Project also supports the City of Gilroy 2040
General Plan, Council Strategic Plan Goals, and the GDBA Gourmet Alley Plan.
ANALYSIS
Council awarded a contract to BKF Engineers in September 2020 for the development
of Plans, Specifications, and Engineer’s Estimate (PS&E) for the Project. The Project is
currently in the preliminary design phase. The designer has developed three conceptual
parking lot layout alternatives as well as a supplemental concept plan for a Pedestrian
Plaza that would be located in the turf area just north of the Gilroy Center for the Arts.
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As this project has significant community interests, staff agreed to bring back three
parking lot design alternatives, with their estimated cost to construct, for City Council
review prior to completing the project design.
Due to the project estimates exceeding the $1.5M funding provided by Council, staff
decided to separate the parking lot components into two categories: Required Parking
Lot Features and Additional Parking Lot Amenities.
Required Parking Lot Features
These are features that are mandated by various codes and regulations and are
considered minimum requirements for a parking lot. These include:
• Parking Space Types:
o Standard Parking Stalls
o Clean Air Vehicle Parking Stalls
o Electric Vehicle Parking Stalls
o ADA-Compliant Parking Stalls
o Motorcycle Parking Stalls
• Mandatory On-Site Stormwater Treatment
• Lighting
o Typical Parking Lot Lighting
o Pedestrian Scale Lighting
Lighting is critically important for a parking lot. A parking lot will typically only be used
during the day unless the users feel that it is adequately lighted and safe for nighttime
use. For this project, it is important to not only light the parking lot to a safe level, but to
also provide a well-lighted pathway from Monterey Road to the parking lot. This project
will include lighting along the current pathway between Monterey Road and Gourmet
Alley just north of the Gilroy Center for the Arts building.
Typical parking lot lighting is more industrial in look and is intended to safely light the
parking lot with limited light-spill outside the parking lot. Parking lot LED lights are
typically 14 to 16 feet in height and have arm mounted downward facing fixtures. It
should be noted that typical street-type cobra head lighting can be used for parking lots,
but staff intends to use a shorter, more effective, and more attractive type of light for the
parking lot. A lighting study will be conducted by the consultant during final design to
ensure that an adequate level of lighting is provided in the parking lot to ensure safe use
at night. Staff recommends standard parking lot lighting for the safety lighting in the lot.
Pedestrian scale lighting is typically 12 to 14 feet in height and the fixture is post top
style. A typical example of a pedestrian scale light is the lighting that is used on
Monterey Road in the Downtown. While parking lot lighting is typically utilitarian in
appearance, pedestrian scale lighting typically uses decorative poles and fixtures.
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Unfortunately, the pedestrian scale lighting is more expensive than typical safety lighting
and has the potential to trigger mitigations for light pollution outside of the project
perimeter. For that reason, staff recommends the use of pedestrian scale lighting
(specifically the Monterey Road Downtown Light) only along the pedestrian pathway
adjacent to the Gilroy Center for the Arts, between Monterey Road and the parking lot.
Again, a lighting study will be performed as part of final design to confirm a safe level of
lighting will be provided along this pathway.
Additional Parking Lot Amenities
These features are not mandatory for the design of a parking lot and have been
considered optional due to the additional costs. For the project to be considered a true
Downtown amenity however, these items should be considered:
• Concrete Walkway between Gourmet Alley and Monterey
• Electric Vehicle Charging Stations
• Parking Lot Landscaping
• Landscaping of the Park Strip along Eigleberry and Seventh Streets
• Pedestrian Seating Area within the parking lot to include:
o Seating Area
o Information Kiosk
o Trash Receptacles
o Entrance Portal Structures
• Bicycle Amenities
o Bike Racks
o Bike Lockers
• Pedestrian Plaza Adjacent to Gilroy Center for the Arts
Parking Lot Layout Alternatives
There are three major parking lot alternatives and one supplemental concept plan (see
attachments to staff report). They are distinguished by the following:
Alternative 1:
• 132 Parking Spaces
• Eigleberry Street Driveway Centered in Lot
Alternative 2:
• 137 Parking Spaces
• Eigleberry Street Driveway at North End of Lot
Alternative 3:
• 137 Parking Spaces
• Eigleberry Street Driveway at North End of Lot
• Permeable Pavers to reduce the amount of parking lot stormwater treatment
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Alternative 4:
• This supplemental concept plan highlights the decorative pedestrian plaza in the
turf area just north of the Gilroy Center for the Arts.
• This option will likely not be considered due to costs.
The first three alternatives could be combined with any of the additional amenities listed
above. All three alternatives would also lend themselves well to being used for special
events by blocking off one-half of the lot for vendors and pedestrians while still providing
parking and internal traffic circulation in the other half.
Preliminary Cost Estimates
• The total budget allocated by Council for the project is $1,500,000. After
subtracting the soft costs (i.e., design and CEQA, construction inspection,
construction management and support, and permitting fees), the remaining
budget for construction is estimated at $1,139,924.
• Based on the preliminary cost estimates, the project is expected to have a
budget shortfall ranging from $521,327 to $855,875 depending on which
alternative is chosen. Note that the pedestrian plaza, with a cost of $65,389, has
been eliminated from consideration in this estimate due to costs. A summary of
the preliminary cost estimates is provided below. The preliminary cost shown
here includes both the required features and all additional amenities.
Alternative 1 Alternative 2 Alternative 3
Preliminary Cost Estimate without
Pedestrian Plaza $1,675,257 $1,661,251 $1,995,799
It should be noted that Alternatives 2 and 3 are identical except that Alternative 3 would
include permeable pavers, which would allow the size of the bioretention area to be
slightly reduced. Based on the preliminary cost estimates, the inclusion of permeable
pavers would be cost-prohibitive. It should also be noted that these estimates do not
include ongoing maintenance costs for the parking lot paving, landscaping, or
bioretention area.
Preliminary Cost Estimates for Required Features and Additional Amenities
Due to the projected costs, staff separated the cost estimates for the required features
and the additional amenities. The cost estimates for the required features results in an
estimated shortfall of $173,083 (Alternative 1), $157,050 (Alternative 2), and $491,598
(Alternative 3).
Required Features Alternative 1 Alternative 2 Alternative 3
Traffic Control System and Construction Area Signs $9,075 $9,075 $9,075
Storm Water Pollution Control Program $12,100 $12,100 $12,100
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Site Demolition $376,673 $376,673 $376,673
Site Improvements $660,454 $662,571 $997,119
Storm Drain Improvements $61,105 $61,105 $61,105
Parking Lot and Pedestrian Level Lighting $133,100 $114,950 $114,950
Signing and Striping $6,050 $6,050 $6,050
Electric Vehicle Charging Infrastructure $12,100 $12,100 $12,100
Subtotal $1,085,130 $1,071,880 $1,348,366
Mobilization (10%) $108,513 $107,188 $134,837
Subtotal $1,193,642 $1,179,067 $1,483,202
Contingency (10%) $119,364 $117,907 $148,320
Estimated Total Construction Cost $1,313,007 $1,296,974 $1,631,522
The preliminary cost estimates above includes a mix of typical parking lot lighting in the
parking lot and pedestrian scale lighting along the walkway to Monterey Road. Based
on the GDBA recommendation, staff included the cost to install all pedestrian scale
lighting in the parking lot as an additional amenity. The cost estimates for the additional
amenities are shown below. If additional funding is not available, these amenities could
be included as bid alternates when the Project goes out to bid.
Additional Amenities Alternative 1 Alternative 2 Alternative 3
Gourmet Alley Raised Crosswalk $13,431 $13,431 $13,431
Concrete Walkway to Monterey Road $36,615 $36,615 $36,615
Electric Vehicle Charging Stations $36,300 $36,300 $36,300
Park Strip Landscaping on Eigleberry and Seventh $35,538 $35,538 $35,538
Parking Lot Landscaping (including trees) $192,269 $194,296 $194,296
Pedestrian Amenities $43,863 $43,863 $43,863
Bicycle Amenities $3,630 $3,630 $3,630
All Pedestrian Level Lighting $48,400 $39,325 $39,325
Total Additional Amenities $410,045 $402,997 $402,997
Project Stakeholder Meetings
Staff presented the Project to the following stakeholders:
• Gilroy Downtown Business Association (GDBA) – February 2, 2021
• Gilroy Chamber of Commerce – February 16, 2021
• Gilroy Bicycle Pedestrian Commission (BPC) – February 23,2021
During meetings with the stakeholders, we received feedback on the various parking lot
concepts. While all groups supported the parking lot in general, including all the listed
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amenities if funding was available, comments were provided with the understanding that
there is a need to build a parking lot with the funding provided by the City Council. The
GDBA and Chamber of Commerce preferred parking lot Alternative 2, and the BPC
preferred Alternative 1.
The stakeholder groups were all in favor of providing lighting and electric vehicle
charging stations, and the GDBA recommended using pedestrian scale lighting
standards throughout the parking lot. The BPC was in favor of including all the bicycle
and pedestrian amenities, but preferred bicycle lockers over bicycle racks because they
are more secure. The GDBA provided a comment letter which is attached to this staff
report. In addition, staff met with the GDBA on March 30 to further discuss their parking
lot comment letter. Input received from the stakeholder groups is summarized below:
• Gilroy Downtown Business Association and Chamber of Commerce
a. Prefer Alternative 2
b. Include Electric Vehicle Charging Stations
c. Include Undergrounding Utilities Along Gourmet Alley
d. Include Multi-Use Infrastructure
e. Include Common Trash Enclosure
f. Include Compact Parking Spaces
g. Include All Pedestrian Level Lighting
h. Include Additional Signage to Restrict Overnight Parking
i. Include Farmers Market Shed Structure
j. Relocate Donor Pavers with Demonstration Garden
k. Include Lot and Park Strip Shade Trees
l. Eliminate Raised Crosswalk in Gourmet Alley
m. Eliminate Concrete Walkway to Monterey
n. Eliminate Pedestrian Plaza
o. Eliminate Portal Structures
• Gilroy Bicycle Pedestrian Commission
a. Prefer Alternative 1
b. Include Electric Vehicle Charging Stations
c. Include Parking Lot and Pedestrian Level Lighting
d. Consider E-Bike and E-Scooter Charging Stations
e. Work with EV Charging Vendors to Split EV Charging Costs
f. Fundraising (e.g., Sell Donor Bricks)
g. Prefer Bike Lockers over Bike Racks
h. Include Raised Crosswalk
i. Include Concrete Walkway to Monterey
j. Include Pedestrian Plaza
k. Include Portal Structures
RECOMMENDATION
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Staff recommends Alternative 2 for the parking lot layout without the pedestrian plaza in
the turf area, without the raised crosswalk within Gourmet Alley, and using standard
parking lot lighting for the parking lot. Staff is recommending this alternative since it
provides the most parking spaces (137), is the lowest cost alternative ($1,296,974), and
it was supported by most of the stakeholders.
Required Features Alternative 2
Traffic Control System and Construction Area Signs $9,075
Storm Water Pollution Control Program $12,100
Site Demolition $376,673
Site Improvements $662,571
Storm Drain Improvements $61,105
Parking Lot and Pedestrian Level Lighting $114,950
Signing and Striping $6,050
Electric Vehicle Charging Infrastructure $12,100
Subtotal $1,071,880
Mobilization (10%) $107,188
Subtotal $1,179,067
Contingency (10%) $117,907
Estimated Total Construction Cost $1,296,974
Additional Amenities Alternative 2
Concrete Walkway to Monterey Road $36,615
Electric Vehicle Charging Stations $36,300
Park Strip Landscaping on Eigleberry and Seventh $35,538
Parking Lot Landscaping (including trees) $194,296
Pedestrian Amenities $43,863
Bicycle Amenities $3,630
Estimated Total Additional Amenities $350,242
The estimated costs for the items recommended by staff are provided below.
Total Cost for Alternative 2
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Parking Lot Construction Cost $1,296,974
Cost of Additional Amenities $350,242
Total Parking Lot Cost $1,647,216
Current Available Funding $1,139,924
Current Budget Shortfall ($507,292)
FISCAL IMPACT
Staff has identified approximately $208,000 of undesignated funding available in Fund
400 – Capital Projects that can be allocated to this parking lot project. In addition, the
City recently received a CalOES grant for the City Hall Backup Generator project in the
amount of $300,000. This grant provides additional funding for the City Hall Backup
Generator Project which will free up approximately $250,000 from Fund 651 – Public
Facilities. The $208,000 from Fund 400 and approximately $250,000 from Fund 651
could be used for the Eigleberry and Seventh Parking Lot project. This would reduce the
estimated budget shortfall to approximately $49,292.
Project Funding Shortfall
Current Budget Shortfall ($507,292)
Undesignated Funding in Fund 400 $208,000
CalOES Grant Funding in Fund 651 $250,000
Estimated Budget Shortfall ($49,292)
NEXT STEPS
Based on Council direction, staff will pursue completion of the design of the Eigleberry
and Seventh Parking Lot project and commence with the Architectural and Site Review
process through the Planning Division.
Attachments:
1. GDBA Comment Letter on Parking Lot
2. Exhibit 1 - Alt 1
3. Exhibit 2 - Alt 2
4. Exhibit 3 - Alt 3
5. Exhibit 4 - Alt 1 with Ped Plaza
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February 25, 2021
Gary Heap, City Engineer
City of Gilroy
7351 Rosanna Street
Gilroy, Ca. 95020
RE: Comments on the Eigleberry and Seventh St. Parking Lot
Dear Gary,
Thank you so much for the presentation on the progress on the proposed parking lot on Eigleberry and
Seventh St. at our last GDBA Board meeting on February 2, 2020.
While there was discussion, our time at the meeting was limited and I wanted to formally give you the
GDBA’s comments on the parking lot plan you presented. While we were glad to see the many extras
that are being considered to make the lot pedestrian friendly, multi-functional and better connected to
the surrounding property, we recognize that many of them may not be realistic because of budgetary
constraints. So, going forward it will be important to prioritize what we can get done with the funds
that are available and/or look for other funding sources.
For example, while we know that you have expended design funds, we would re-evaluate the need for a
CEQA analysis for this project considering passage of legislation to streamline the development process.
We also recommend undergrounding utilities as part of this project. This block of Gourmet Alley already
has underground utilities and there are very few overhead connections compared to other blocks. Rule
20 funds would be utilized, so there would be no increase in direct project costs.
We were a little surprised that we were not able to design more parking spaces on the site. I am sure
part of that is because of the on-site storm water retention requirements, but the other part is the lack
of a compact car standard in our current parking ordinance. I reached out to the other 15 cities in Santa
Clara County and found that most have compact car designations in their codes. By allowing compact
cars in this new lot as well as all existing public lots we can increase the number of cars overall. We ask
that the City consider developing a new compact car standard in our parking regulations. I would be
happy to share our survey of other cities compact parking standards with you. From researching other
cities codes, it is clear that there are ways to design the parking lot that would discourage large vehicles
from parking in the compact spaces. In this regard, we would recommend 90◦ compact spaces be
provided in the interior parking stalls as compact spaces and full-size spaces angled at 45◦ at the
perimeter of the lot.
9.A.a
Packet Pg. 123 Attachment: GDBA Comment Letter on Parking Lot (3226 : Eigleberry and Seventh Parking Lot Alternatives)
We agree with the need for lighting, which should be LED’s and the same color of other downtown
lighting. We further suggest using pedestrian scale lighting standards and avoid the giant cobra type
light standards that were used in the existing public parking lots.
We agree with installing vehicle charging stations in the parking lot to encourage visitors to come
downtown to shop while their vehicle is re-charging.
We agree with the idea of connecting the parking lot to Monterey including the pedestrian walkway, the
pedestrian plaza and portal structures. However, the GDBA has developed visioning plans and will be
working with the city to obtain funds to design the grass area as a public plaza. Our plan currently has a
stage and children’s splash pad area that would conflict with the engineer’s plan. We recommend that
you consider dropping these elements to reduce the budget overages. We will consider these elements
in the community plaza vision.
We agree with the idea that the parking lot should be multi-use and allow the space to be used for
special events like live music, film, farmers markets, and art and craft events. Having the ability to
readily access water, power and speakers would be something we should look at even if they are simply
stubbed in for now.
To attract the farmers market to downtown, it would be great if we could get a designated market hall
shed that covers the center stormwater retention area to provide shade for the farmers market stalls. I
have included a few pictures below as examples. The GDBA would be happy to work with the City and
the Gilroy Farmers Market to design such a structure and raise funds for the structure.
Additional amenities that you listed would be great, but we would like to add a common trash enclosure
in the lot so we can eliminate the dumpsters along this part of Gourmet Alley.
Shade trees should be used to shade the parking lot and the pedestrian walkways on Eigleberry and 7th
Streets. Both Eigleberry and 7th Streets have an existing park strip.
Either alternative 2 or 3 is preferrable to alternative #1 site plan. Can you explain the difference
between plan 2 and 3? Is it only the addition of the permeable paving?
The adopted Downtown Specific Plan has criteria for parking lot design and screening that should be
adhered to. See page 31 and 32 “Parking and Screening”.
We would also like to encourage the City to relocate the donor pavers with the demonstration garden
when it is relocated to the Red Barn area.
9.A.a
Packet Pg. 124 Attachment: GDBA Comment Letter on Parking Lot (3226 : Eigleberry and Seventh Parking Lot Alternatives)
Another issue would be the addition of appropriate signage to identify the new lot as public parking,
directional signage, and signage to deter overnight parking or use by transit users, nearby residents,
churches, etc.
We are concerned about the new apartment project proposed at the South end of the VTA parking lot
on apartment complex that has recently come to light. In addition to this project’s parking needs, the
existing Milias Hotel tenants will probably want to use this parking lot because the plan would eliminate
the area residents currently park in. In order to track resident parking, we would like to see a new
program to license residential tenants to determine how many on-site and off-site spaces are being
occupied by residential tenants in downtown parking. We would also recommend that this new lot be
identified as merchant parking to open more valuable parking near the stores and restaurants for
customers.
We encourage the City to undertake a parking management study to stay on top of parking demand to
ensure that parking is utilized in the best way for all, especially considering there is no new parking for
the residential project being proposed by the VTA at the transit center.
Thank you again for presenting the current plan at our last board meeting. I would be more than happy
to discuss any of the above in more detail.
Sincerely,
Gary Walton, President
Gilroy Downtown Business Association
9.A.a
Packet Pg. 125 Attachment: GDBA Comment Letter on Parking Lot (3226 : Eigleberry and Seventh Parking Lot Alternatives)
GILROY PARKING LOT - PARKING LAYOUTGILROY PARKING LOT - PARKING LAYOUT
12/22/2020
ALTERNATIVE 1ALTERNATIVE 1
HMA PAVEMENT
SIDEWALK, CURB RAMPS
LEGEND
BIORETENTION AREA
LANDSCAPE
TREE/SHRUB
EXISTING TREE TO REMAIN
& DRIVEWAYS
LIGHTING
EVEVEVEVEVEVEV
B
B
EVEVEVEVEVEVEV
B
B
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Packet Pg. 126 Attachment: Exhibit 1 - Alt 1 (3226 : Eigleberry and Seventh Parking Lot Alternatives)
GILROY PARKING LOT - PARKING LAYOUTGILROY PARKING LOT - PARKING LAYOUT
12/22/2020
ALTERNATIVE 2ALTERNATIVE 2
HMA PAVEMENT
SIDEWALK, CURB RAMPS
LEGEND
BIORETENTION AREA
LANDSCAPE
TREE/SHRUB
EXISTING TREE TO REMAIN
& DRIVEWAYS
LIGHTING
EVEVEVEVEVEVEV
B
B
9.A.c
Packet Pg. 127 Attachment: Exhibit 2 - Alt 2 (3226 : Eigleberry and Seventh Parking Lot Alternatives)
GILROY PARKING LOT - PARKING LAYOUTGILROY PARKING LOT - PARKING LAYOUT
12/22/2020
ALTERNATIVE 3ALTERNATIVE 3
HMA PAVEMENT
SIDEWALK, CURB RAMPS
LEGEND
BIORETENTION AREA
LANDSCAPE
TREE/SHRUB
EXISTING TREE TO REMAIN
& DRIVEWAYS
LIGHTING
PERMEABLE PAVERS
EVEVEVEVEVEVEV
B
B
EVEVEVEVEVEVEV
B
B
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Packet Pg. 128 Attachment: Exhibit 3 - Alt 3 (3226 : Eigleberry and Seventh Parking Lot Alternatives)
GILROY PARKING LOT - PARKING LAYOUTGILROY PARKING LOT - PARKING LAYOUT
12/22/2020
ALTERNATIVE 1 WITH PLAZAALTERNATIVE 1 WITH PLAZA
HMA PAVEMENT
SIDEWALK, CURB RAMPS
LEGEND
BIORETENTION AREA
LANDSCAPE
TREE/SHRUB
EXISTING TREE TO REMAIN
& DRIVEWAYS
LIGHTING
EVEVEVEVEVEVEV
B
B
EVEVEVEVEVEVEV
B
B
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Packet Pg. 129 Attachment: Exhibit 4 - Alt 1 with Ped Plaza (3226 : Eigleberry and Seventh Parking Lot Alternatives)
City of Gilroy
STAFF REPORT
Agenda Item Title: Standing Report on Operational Impacts and Other City Efforts
Related to the COVID-19 Pandemic
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Receive report.
EXECUTIVE SUMMARY
The instabilities of the COVID-19 pandemic continues to play a major role in influencing
how local government responds to this current health and fiscal crisis. Timely and
accurate situational awareness is critical for elected officials to assist you in making
informed decisions on how best to allocate resources for maximum effectiveness within
the community.
This report serves as a standing Council discussion concerning the various impacts of
the pandemic. Presentations will be given on interconnected topics such as health and
safety, City finances, and business and economic recovery.
POLICY DISCUSSION
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Discussions coming from the information contained in this report may include service
levels, fiscal decisions and employee relations, among others.
FISCAL IMPACT/FUNDING SOURCE
Fiscal impacts are directly tied to and occur as the result of pandemic conditions region-
wide, and within our community.
CONCLUSION
This standing report is to inform the City Council and to keep you updated on the
changes to COVID-19 conditions within the clinical and operational spheres of local
government.
PUBLIC OUTREACH
Public education and outreach regarding COVID-19 is a regular and ongoing feature of
the City’s community engagement efforts.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Consideration of an Extension of the Solid Waste Franchise
Agreement with Recology South Valley
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Receive report and provide direction to staff concerning the negotiating of a franchise
agreement extension with Recology South Valley
BACKGROUND
Both the City of Morgan Hill and Gilroy are currently in a commercial franchise
agreement with Recology South Valley that is set to expire on June 30, 2022.
Recology and its predecessor companies have served as the solid waste hauler for both
communities for many decades.
Customers are largely satisfied with the services received from Recology and neither
City receives a significant number of complaints about the services provided. When
complaints are received, Recology typically addresses them expediently.
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The City of Gilroy considers itself to have a good, collaborative relationship with
Recology and there is a desire on both sides to continue the relationship.
Staff is introducing this item to Council to ensure that any feedback is incorporated into
upcoming negotiations.
ANALYSIS
The solid waste regulatory environment will change significantly in 2022 when the
regulations for SB 1383 take effect. In short, this law will require residents and
businesses to sort out and divert their compostable organic materials and make them
available to the waste hauler for composting or digestion. Both cities must comply with
this law or face regulatory actions from the State. This law will result in an increase in
service costs.
As part of the negotiation process, the City and its’ partners in Morgan Hill have
identified the following interests:
• Expanding the scope of work to require that Recology perform work needed to
assure compliance with SB 1383 (California’s Short Lived Climate Pollutants)
regulations related to diversion of organics from disposal.
• Updating insurance and indemnification provisions to reflect changes to law and
insurance markets.
• Exclusively for Gilroy, re-evaluating the need for and value of the lien process the
City currently administers for overdue payments.
• Modifying street sweeping and cleaning requirements to assure compliance with
state mandates for Municipal Stormwater permitting including the potential for
Recology to install and maintain trash exclusion devices at a later date for an
additional cost if desired by the City.
• Establishing a reopening provision for electric collection vehicles when
technically practical.
• Enhancing the bulky item collection and voucher system to increase
convenience, expand the services to include multifamily customers, and reduce
illegal dumping.
• Formalizing the process under which illegal dumping events are responded to by
the hauler and establishing a baseline number of “community cleanups” that are
provided within the contract.
• Evaluating street sweeping charges for both public and private streets.
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ALTERNATIVES
Council could direct staff to not negotiate an extension of the current franchise
agreement. This is not recommended.
FISCAL IMPACT/FUNDING SOURCE
None.
NEXT STEPS
Once input is received from Council, staff will communicate with our partner’s in Morgan
Hill to ensure that Council concerns are addressed in the negotiations.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Council Initiated Request for Information on Slow Streets Program
Meeting Date: April 19, 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
Receive report and provide direction to staff.
BACKGROUND
At the February 22, 2021 City Council meeting, staff was directed to bring back
information on the implementation of a Slow Streets Program for the City of Gilroy to
reduce travel speeds and traffic volumes on city streets. The National Association of
City Transportation Officials (NACTO) defines Slow Streets as a program to “Reduce
traffic volume and speed to a minimum so that people can walk, bike and run safely.”
Staff has reviewed the concept of Slow Streets and analyzed what some other
communities in the area are doing. San Francisco has created a temporary Slow
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Streets Program and is currently in talks about making some streets permanent. Other
cities like Alameda, Oakland and Redwood City are in different phases of their
programs. Links to reference material including these City Slow Streets web sites is
below. The SFMTA website describes Slow Streets as follows:
The San Francisco Metropolitan Transportation Agency’s Slow Streets program is
designed to limit through traffic on certain residential streets and allow them to be
used as a shared space for people traveling by foot and by bicycle. Throughout the
city, nearly thirty corridors have been implemented as a Slow Street. On these Slow
Streets, signage and barricades have been placed to minimize through vehicle traffic
and prioritize walking and biking. The goal of the Slow Streets program is to provide
more space for socially distant essential travel and exercise during the COVID-19
pandemic.
In order to support further reopening of the economy, we need to make San
Francisco more welcoming and accessible for people who want to travel on foot,
bicycle, wheelchair, scooter, skateboard or other forms of micromobility. Slow
Streets are critical infrastructure that attracts users of the full array of neighborhood
demographics—including children, older adults, people with disabilities and people
of color.
On the Alameda web site, they have defined their Slow Streets Program as:
Slow Streets Alameda is a program implementing “soft” closures of select Alameda
streets to through traffic to facilitate physical distancing of more than 6 feet during
the COVID-19 emergency.
Other Cities in the Bay Area have implemented Slow Streets Programs at various levels
from full implementation with intent to expand (Oakland) to pilot programs to evaluate
community impact (Redwood City). In general, the cities that do have a Slow Streets
Program have implemented the temporary closures to provide more space for their
residents to walk, bike, run and enjoy the outdoors while staying appropriately distanced
from each other, and to slow down speeding drivers taking advantage of emptier
streets. Other cities enacting Slow Streets Programs during COVID include Alameda,
San Mateo, Foster City, Redwood City and Santa Cruz.
ANALYSIS
Some of the pros and cons associated with Slow Streets Programs are as follows:
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Pros – Why the City Should Adopt a Slow Streets Program
There are several reasons why the City of Gilroy should consider implementing a Slow
Streets Program. These include:
• Promoting the community to stay active and improve their health through outdoor
physical activity.
• Establishment of traffic calming on public streets to allow those streets to be
used for recreation including walking, bicycling, running, etc.
• Residents along the designated streets may appreciate the reduced vehicle
traffic.
• There have been reports that drivers in designated neighborhoods travel at safer
speeds and have a higher rate of stopping at stop signs.
• Closing streets to through traffic provides the environmental benefit of reducing
motor vehicle greenhouse gas emissions.
Cons – Why the City Should Not Adopt a Slow Streets Program
There are several reasons why the City of Gilroy should not consider implementing a
Slow Streets Program. These include:
• Most of the cities that have an active Slow Streets Program implemented the
closures to promote outdoor social distancing during the COVID-19 shelter-in-
place restrictions. Now that shelter-in-place restrictions are diminishing, most of
these cities are returning their streets to their pre-pandemic traffic conditions.
• The City has ample bicycle and pedestrian facilities, including the Uvas Creek
Levee Trail, to support vehicle-free pedestrian and bicycle activities without the
need to partially close City streets.
• In the last year, no residents have contacted City Hall to request implementation
of a Slow Streets Program.
• The City already has a Traffic Calming Program within its Neighborhood Traffic
Management Plan.
• Residents along the designated streets may not appreciate the additional
pedestrian and bicycle activity.
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• Not everyone is supportive of Slow Streets Programs, including those that
primarily drive cars.
• The City would have to work with Waze and Google Maps to remove designated
streets from traffic flow algorithms.
• Implementation of a Slow Streets Program without thorough planning and
outreach, as reported in some early-adopting cities, has led to inequities and
claims of social injustice.
• Signs are expensive. Oakland has already spent over $30,000 on Slow Streets
signage.
• Enactment of a Slow Streets Program would require significant staff effort from
various City departments.
• Any program would need to be coordinated with Recology (trash pick-up), the
VTA (bus service), and Police and Fire due to potential impacts to routine and
emergency services.
• City residents might want the City to focus on higher-priority City projects and
may have concerns with the level of effort needed to implement a Slow Streets
Program.
Potential Impacts to City Resources
Implementing a Slow Streets Program, as many cities have done, requires a significant
commitment of City resources.
• Public Works Engineering staff would be required to manage the program and
address the day-to-day concerns that may arise.
• Public Works Maintenance staff would need to maintain the partial street
closures including barricades and signage.
• The Police Department would need to enforce the partial street closures since
the streets would remain open for use by the residents living on the street.
• The City Public Information Officer would need to assist in initial and ongoing
public outreach to determine if the residents on a candidate street would be in
favor of their street being designated as part of the program, and would need to
actively manage any incoming comments or concerns regarding the program
streets once implemented.
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• Implementing a Slow Streets Program requires extensive public outreach efforts.
When San Francisco first introduced its Slow Streets Program, it received over
7,000 requests for slow streets on more than 400 city streets.
• Staff would have to create outreach material, conduct outreach meetings,
develop and maintain a City website for the program, and be in constant
communication with neighborhood representatives regarding program
implementation.
• If it is the desire of the Council to implement a Slow Streets Program, staffing
would have to be increased, or other high-priority programs might be impacted,
including the development and implementation of our 5-year Paving Program.
ALTERNATIVES
There are two alternatives to consider:
1. Council could direct staff to create a Slow Streets Program to temporarily close
some streets to through traffic. This would require funding as well as rebalancing
staff work priorities and work plans.
2. Council could direct staff to continue to work on current priorities and work plan
items.
FISCAL IMPACT/FUNDING SOURCE
Should Council direct staff to create a Slow Streets Program, funding would be needed
for program development, outreach efforts and meetings; procurement, installation and
maintenance of program signage; and performance of ongoing enforcement activities
within the impacted neighborhoods.
REFERENCES
Web Sites:
Alameda Slow Streets Program - https://www.alamedaca.gov/ALERTS-COVID-19/Slow-
Streets-Alameda
Oakland Slow Streets Program - https://www.oaklandca.gov/projects/oakland-slow-
streets
Redwood City Slow Streets Program - https://www.redwoodcity.org/about-the-city/slow-
streets-pilot-program
San Francisco Slow Streets Program - https://www.sfmta.com/projects/slow-streets-
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program
NATCO Slow Streets - https://nacto.org/publication/streets-for-pandemic-response-
recovery/emerging-street-strategies/slow-streets/
Articles:
‘Slow Streets’ disrupted city planning. What comes next?
https://norcalapa.org/2021/01/slow-streets-disrupted-city-planning-what-comes-next/
Slow Streets Were a Success. Should Cities Keep Them?
https://www.governing.com/community/Slow-Streets-Were-Success-Should-Cities-
Keep-Them.html
Why San Jose won’t be joining ‘slow streets’ movement anytime soon
https://www.mercurynews.com/2020/05/02/why-san-jose-wont-be-joining-slow-streets-
movement-anytime-soon/
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City of Gilroy
STAFF REPORT
Agenda Item Title: Appointment of LeeAnn McPhillips as the Interim Gilroy City Clerk
Meeting Date: April 19, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Appoint LeeAnn McPhillips as Interim Gilroy City Clerk.
BACKGROUND
Effective, April 16, 2021 Shawna Freels retired from service as Gilroy’s City Clerk. As
the position is now vacant, it is necessary for Council to appoint a successor.
ANALYSIS
As the position of City Clerk is now vacant, it is recommended that the City evaluate the
position and functions of the City Clerk’s office including modifications to the position
description, reporting structure and consider adjustments to how the office functions in
the overall organization.
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It is preferred that an Interim City Clerk be appointed while the aforementioned analysis
is performed and an open recruitment is conducted.
LeeAnn McPhillips has over thirty years of local government experience. She has been
a Director with the City of Gilroy for almost 22 years, currently serving as the City’s
Administrative/Human Resources Director.
Over the next few months, Ms. McPhillips will provide day-to-day oversight of the office
and work with the City Administrator to develop recommendations for Council
consideration and ultimately conduct a recruitment for a full-time City Clerk.
During this temporary assignment, it is recommended that Ms. McPhillips receive 5%
special assignment pay in recognition of these additional duties and responsibilities.
The monthly special assignment pay will be $859.00 and is not PERSable. Ms.
McPhillips’ currently monthly salary is $17,180.00 and with the temporary special
assignment pay her total monthly salary will be $18,039.00.
ALTERNATIVES
Council could decide to not appoint Ms. McPhillips as Interim City Clerk. This is not
recommended.
FISCAL IMPACT/FUNDING SOURCE
None. The temporary increase in compensation will be absorbed through cost savings
in the City Clerk’s Office.
NEXT STEPS
Staff will begin formulating recommendations for future Council consideration.
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