HomeMy WebLinkAbout2021-02-22 City Council Regular Meeting Agenda Packet
February 22, 2021 1:09 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, FEBRUARY 22, 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.
THE MARCH 1, 2021 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 Cou ncil 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 LIST ED 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 CLERK’s OFFICE BY 6:00 P.M. PRIOR TO THE
MEETING START AT suzanne.guzzetta@cityofgilroy.org, OR MAILED TO: GILROY CITY CLERK,
7351 ROSANNA STREET, GILROY, CA. 95020, TO BE DISTRIBUTED TO THE COUNCIL MEMBERS
AND BE INCORPORATED INTO THE 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, ple ase contact the City Clerk a minimum of 2 hours prior
to the meeting at (408) 846-0204.
If you challenge any planning or land use decision made at this meeting in court, you may be
limited to raising only those issues you or someone else raised at the p ublic hearing held at this
meeting, or in written correspondence delivered to the City Council at, or prior to, the public
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City Council Regular Meeting Agenda
02/22/2021 Page2 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 legislat ive 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 distributio n 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 or
shawna.freels@cityofgilroy.org
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. Proclamation Honoring Retiring Employee Robert Bozzo
2. Proclamation Honoring Retiring Employee Mitch Madruga
III. PRESENTATIONS TO THE COUNCIL
City Council Regular Meeting Agenda
02/22/2021 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:
shawna.freels@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.)
City Council Regular Meeting Agenda
02/22/2021 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 Committ ee, 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 con sent 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
02/22/2021 Page5 A. Minutes of the February 1, 2021 Regular Meeting
B. Ap proval of the Tenth Amendment to the Single Tenant Lease Agreement
With Gilroy Gardens Family Theme Park Extending the Lease by One Year
C. Gilroy Arts Alliance (GAA) Lease Agreement Amendment
D. Sports Park Ad Hoc Committee Appointments
VII. BIDS AND PROPOSALS
A. Award a Contract to Balch Petroleum Contractors & Builders, Inc. for the
Fuel Station Secondary Containment Components Repair Project (No. 21 -
PW-264), and approve a project expenditure of $182,875.
1. Staff Report: Karl Bjarke, Interim Public Works Director
2. Public Comment
3. Possible Action:
Award a contract to Balch Petroleum Contractors & Builders, Inc. in the amount
of $166,250 with an additional project contingency of $16,625 (10%) for a total
project cost of $182,875 for the construction of the Fuel Station Secondary
Containment Components Repair, Project No. 21-PW -264, and authorize the City
Administrator to execute the contract and associated documents.
B. Approval of an On-Call Consultant Selection List for Planning Services,
Environmental Reviews and Historical Evaluations, 21-RFQ-CDD-330
1. Staff Report: Karen Garner, Community Development Director
2. Public Comment
3. Possible Action:
Approve an on-call consultant selection list for planning services, environmental
reviews and historical evaluations, 21-RFQ-CDD-330.
VIII. PUBLIC HEARINGS - NONE
IX. UNFINISHED BUSINESS
A. Introduction of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19 of the Gilroy City Code Entitled "Smoking
Prohibited” Modifying Sections 19B.2 (9) Pertaining to Parks; finding that
the project is exempt from CEQA pursuant to CEQA Guidelines Section
15061(b)(3).
City Council Regular Meeting Agenda
02/22/2021 Page6 1. Staff Report: Adam Henig, Recreation Manager
2. Public Comment
3. Possible Action:
a) Motion to read the ordinance by title only and waive further readin g
b) Find that the proposed ordinance is exempt from the California Environmental
Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3)
because it can be seen clearly that the ordinance would not have a significant
impact on the environment.
c) Introduce an ordinance of the City Council of the City of Gilroy amending
Chapter 19 of the Gilroy City Code entitled "Smoking Prohibited” Modifying
Sections 19B.2 (9) Pertaining to Parks.
X. INTRODUCTION OF NEW BUSINESS
A. Gilroy Renters and Small Business Protections During Covid-19
1. Staff Report: Maria De Leon, Program Administrator
2. Public Comment
3. Possible Action:
Receive report.
B. Facility and Recreation Program Needs Assessment Conducted by PROS
Consulting, Inc.
1. Staff Report: Adam Henig, Recreation Manager
2. Public Comment
3. Possible Action:
Receive report.
C. Rescinding of Gilroy City Council Resolution 2019 -70 City Housing Loans
for Executive and Appointed Positions (Adopting a Policy for the Provision
of Housing Loans to Newly Appointed City Officers, Deputy City
Administrator, Department Heads and/or Department Directors)
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Adopt a resolution to rescind resolution 2019-70 adopted on October 28, 2019
that adopted a policy for the provision of housing loans to newly appointed City
Officers, Deputy City Administrator, Department Heads, and/or Department
Directors.
D. Consideration of a Resolution of the Council of the City of Gilroy
Expressing Support for Actions to Further Strengthen Local Democracy,
Authority, and Control as Related to Local Zoning and Housing Issues
City Council Regular Meeting Agenda
02/22/2021 Page7 1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Adopt a resolution expressing the City's support of efforts to retain and
strengthen local authority and control as related to local zoning and housing
issues.
XI. CITY ADMINISTRATOR'S REPORTS
XII. CITY ATTORNEY'S REPORTS
XIII. CLOSED SESSION
A. PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT; Pursuant to
Government Code Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Finance Director
B. PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT; Pursuant to
Government Code Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Public Works Director
ADJOURNMENT
MEETING DATES
FEBRUARY 2021
22* Regular Meeting - 6:00 p.m.
MARCH 2021
1* Regular Meeting - 6:00 p.m.
15* Regular Meeting - 6:00 p.m.
APRIL 2021
5* Regular Meeting - 6:00 p.m.
19* Regular Meeting - 6:00 p.m.
* meeting is webstreamed and televised
1
City Council Meeting Minutes
02/1/2021
City of Gilroy
City Council Meeting Minutes
February 1, 2021
I. OPENING
A. Call to Order
The meeting was called to order at 6:00 PM by Mayor Marie Blankley
1. Pledge of Allegiance
Council Member Tovar led the pledge of allegiance.
2. Invocation
Pastor Malcolm MacPhail from New Hope Community Church provided the
invocation.
3. City Clerk's Report on Posting the Agenda
City Clerk Shawna Freels reported that the agenda was posted on Thursday,
January 28, 2021 at 10:00 a.m.
Attendee Name Title Status Arrived
Marie Blankley Mayor Remote 6:00 PM
Rebeca Armendariz Council Member Remote 6:00 PM
Dion Bracco Council Member Remote 6:00 PM
Zach Hilton Council Member Remote 6:00 PM
Peter Leroe-Muñoz Council Member Remote 6:00 PM
Carol Marques Council Member Remote 6:00 PM
Fred Tovar Council Member Remote 6:00 PM
B. Orders of the Day
Mayor Blankley announced that all Council Members are participating remotely
pursuant to the Governor's Executive Order Number N-29-20 in order to minimize
the spread of the COVID 19 virus.
II. CEREMONIAL ITEMS
A. Proclamations, Awards, and Presentations
1. Certificates of Appreciation for Outgoing Board, Commission and
Committee Members
Mayor Blankley presented certificates of appreciation to the outgoing board,
commission and committee members.
Former Arts and Culture Commissioner Wendy Sue Kissa and Planning
Commissioner Sam Kim offered thanks for the chance to serve the City.
III. PRESENTATIONS TO THE COUNCIL
There were no public comments on items not on the agenda.
IV. REPORTS OF COUNCIL MEMBERS
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Council Member Armendariz offered a reminder that today marks the beginning
of Black History Month.
Council Member Marques reported on the Homeless Ad Hoc Committee meeting
with homeless individuals to discuss their challenges and difficulties, and
attended a webinar on how to create safe parking lots for people living in their
cars. Destination HOME will speak with the Homeless Ad Hoc Committee on
February 11, and the committee will meet with other agencies on February 25th.
Council Member Hilton spoke on Gilroy Bike Match and asked bike owners to
see if they have additional bikes to donate. He thanked Destination HOME for
providing 1.4 million dollars in rent relief and AFSCME Local 101.
Council Member Tovar wished Mayor Blankley an upcoming happy birthday.
Council Member Leroe-Munoz reported that Valley Water District met last week
and will be considering a rate increase to fund delayed improvements to
Anderson Dam and water infrastructure. The Silicon Valley Regional
Interoperability Authority (SVRIA) also met in the past week and discussed the
new mandate for statewide law enforcement that all communications must be
encrypted with they include personally identifiable information.
Mayor Blankley noted she met last week with Gilroy Economic Development
Partnership and are waiting for RFP Responses on February 12th on potential
development opportunities.
V. FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Armendariz suggested the City discuss more robust protections
for renters including small businesses and families.
Council Member Hilton asked for staff to return with an updated report on SB
330, SB 35 and the ADU Ordinance with the Housing Element.
VI. CONSENT CALENDAR (ROLL CALL VOTE)
There were no public comments.
RESULT: APPROVE [UNANIMOUS]
MOVER: Dion Bracco, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
A. Minutes of the January 25, 2021 Regular Meeting.
B. Certificates Recognizing the 2021 Chamber of Commerce Spice of Life
Awardees
VII. BIDS AND PROPOSALS
A. Award of a Contract to ASG Builders in the Amount of $119,000 for the
2021 Annual Sidewalk Gap Closure and Curb Ramp Improvement Project,
No. 21-PW-267 and Approval of a Total Project Expenditure of $131,000
City Engineer Heap presented the report.
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There were no public comments.
Possible Action:
a) Award a contract to ASG Builders in the amount of $119,000 for the
construction of the 2021 annual sidewalk gap closure and curb ramp
improvements project and authorize the City Administrator to execute
the contract and associated documents.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Council Member
SECONDER: Carol Marques, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
b) Approve a contingency amount of $12,000 to be expended only with an
approved change order for a maximum project expenditure of $131,000.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Council Member
SECONDER: Carol Marques, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
B. Award of a Contract to Rosenbauer America in the Amount Not to Exceed
$699,501.91 for a Type I Fire Engine and Adoption of a Resolution of the
City Council of the City of Gilroy to Enter into a Lease-Purchase Agreement
with Leasing 2, Inc. to Finance the Type I Fire Engine Purchase for Five
Years at the Interest Rate of 1.9% for a Financing Cost Not to Exceed
$40,451.09
Fire Chief Wyatt and Human Resources Director McPhillips presented the report.
There were no public comments.
Possible Action:
a) Award contract not to exceed $699,501.91 (Base price of $642,073 plus
9% sales tax) to Rosenbauer America for a Type I Fire Engine, Project
No. 21-PW-262.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Council Member
SECONDER: Zach Hilton, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
b) Adopt a Resolution 2021-04 of the City Council of the City of Gilroy
authorizing the City Administrator to enter into a five-year lease-
purchase Agreement with Leasing 2, Inc. to finance the purchase of the
Type I Fire Engine in the amount of $699,501.91 purchased from
Rosenbauer America for a financing cost not to exceed a rate of 1.9% or
$40,451.09.
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RESULT: APPROVE [UNANIMOUS]
MOVER: Fred Tovar, Council Member
SECONDER: Peter Leroe-Muñoz, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
VIII. PUBLIC HEARINGS - NONE
IX. UNFINISHED BUSINESS
A. Standing Report on Operational Impacts and City/Community Efforts
Related to the COVID-19 Pandemic
Fire Chief Wyatt presented the update.
Makhan Gupta spoke on the extended wait for vaccinations.
Possible Action:
Receive report.
B. Continued Annual Appointments to City Boards, Commissions and
Committees With Seats Vacant or Expired as of December 31, 2020
City Clerk Freels presented the report. The City Council interviewed applicants
and made the following appointments: Melanie Reynission to the Arts & Cultu re
Commission, Christopher Demers and Ismail Saleem to the Building Board of
Appeals, Makhan Gupta and Janel Valenzueal to the Housing & Neighborhood
Revitalization Committee, Victoria Coverson to the Library Commission, and
Mary Drummond to the Physically Challenged Board of Appeals.
There were no public comments.
Possible Action:
Appoint members to Boards, Commissions and Committees with seats
vacant or expired as of December 31, 2020.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Council Member
SECONDER: Rebeca Armendariz, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
C. Acceptance of Gilroy Little League Ball Park Fund Donation in the Amount
of $200,000
City Administrator Forbis presented the report.
There were no public comments.
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Possible Action:
Accept a donation from the Gilroy Little League Ball Park Fund in the
amount of $200,000 for the purposes outlined in the donation agreement
and authorize the City Administrator to execute agreement.
RESULT: APPROVE [UNANIMOUS]
MOVER: Dion Bracco, Council Member
SECONDER: Peter Leroe-Muñoz, Council Member
AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
X. INTRODUCTION OF NEW BUSINESS
A. Fiscal Year 2021 Mid-Year Budget Update, Approval of Increasing Fiscal
Year 2020-2021 Revenue and Appropriations by $35,648 in the Measure B
Fund 216 and Acceptance of the Investment Report for the Quarter Ended
September 2020
City Administrator Forbis presented the report.
There were no public comments.
Possible Action:
a) Receive the mid-year budget report,
Report received.
b) Adopt a Resolution 2021-05 of the City Council of the City of Gilroy
amending the Fiscal Year 2020-2021 budget by $35,648 in the Measure B
Fund 216, and appropriating proposed expenditure amendments, and
RESULT: APPROVE [UNANIMOUS]
MOVER: Zach Hilton, Council Member
SECONDER: Peter Leroe-Muñoz, Council Member
AYES: Blankley, Armendariz, Hilton, Leroe-Muñoz, Marques, Tovar
ABSENT: Dion Bracco
c) Receive the investment report for the quarter ended September 2020.
Report received.
XI. CITY ADMINISTRATOR'S REPORTS
City Administrator Forbis reported on trash pickup near 101.
XII. CITY ATTORNEY'S REPORTS
No report.
XIII. CLOSED SESSION
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A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to
Government Code Section 54956.8 and Gilroy City Code Section 17A.8 (a) (2)
Property:7491 Railroad Avenue, Gilroy, APN 841-06-001(Creamery Building)
Negotiators: Jimmy Forbis, City Administrator; Karen Garner, Community
Development Director; Other Party to Negotiations: Mark Garrison; Under
Negotiations: Price and Terms of Payment
ADJOURNMENT
The City Council adjourned to Closed Session at 8:12 p.m.
/s/ Shawna Freels, MMC
City Clerk
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City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Tenth Amendment to the Single Tenant Lease
Agreement With Gilroy Gardens Family Theme Park Extending the
Lease by One Year
Meeting Date: February 22, 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 a tenth amendment to the single tenant lease with Gilroy Gardens Family
Theme Park extending the lease by one year, and authorize the City Administrator to
execute the lease amendment and related documents.
BACKGROUND
The Gilroy Gardens Family Theme Park is currently leasing property owned by the City
through a Single Tenant Lease Agreement (“Agreement”). The Agreement’s term is set
to end on February 28, 20 21. The original Agreement term was set for February 28,
2010 but has been extended eight times through amendments previously approved.
ANALYSIS
6.B
Packet Pg. 14
Attached to this staff report is the proposed Tenth Amendment to the Single Tenant
Lease Agreement (“Tenth Amendment”). This amendment seeks to change the end of
the term by extending the Agreement for a period of one year, to include the certified
access specialist disclosure required under California Civil Code Section 1938, and to
make such changes as necessary to ensure rental payments are due up on the end of
the extension.
ALTERNATIVES
1. Council may reject the Tenth Amendment. Should the term expire, the operations of
Gilroy Gardens would become threatened while negotiations on a potential new
agreement are undertaken. This is not recommended.
2. Council may determine to modify the Tenth Amendment. Terms of the amendment
would need to be identified and negotiated with Gilroy Gardens. This may present a risk
to the agreement if terms could not be reached before the term of the Agreement is
reached. This is not recommended.
FISCAL IMPACT/FUNDING SOURCE
The proposed extension does not enhance or diminish the fiscal impacts of the
Agreement as previously amended. The proposed extension would only continue the
current fiscal agreement for one year.
Attachments:
1. Gilroy Gardens Tenth Amendment
6.B
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4829-7208-7258v1
SSCORDELIS\04706118
TENTH AMENDMENT TO SINGLE TENANT LEASE BETWEEN GILROY GARDENS
FAMILY THEME PARK AND THE CITY OF GILROY
This Tenth Amendment to Single Tenant Lease (“Tenth Amendment”) is made and entered
into as __________ __, 2021 (“Effective Date”), by and between GILROY GARDENS FAMILY
THEME PARK, a Delaware nonprofit corporation, formerly known as Bonfante Gardens, Inc.,
(“Tenant”) and the CITY OF GILROY, a California municipal corporation (“Landlord”).
Recitals
WHEREAS, Landlord and Tenant are parties to that certain Single Tenant Lease, dated as of
February 28, 2008, (“Original Lease”), as amended by that certain First Amendment to Single Tenant
Lease, dated as of July 21, 2008 (“First Amendment”), as amended by that certain Second
Amendment to Single Tenant Lease, dated as of July 28, 2009 (“Second Amendment”), as amended
by that certain Third Amendment to Single Tenant Lease, dated as of April 6, 2010 (“Third
Amendment”), as amended by that certain Fourth Amendment to Single Tenant Lease, dated as of
June 5, 2012 (“Fourth Amendment”), as amended by that certain Fifth Amendment to Single Tenant
Lease, dated as of November 4, 2014 (“Fifth Amendment”), as amended by that certain Sixth
Amendment to Single Tenant Lease, dated as of September 21, 2016 (“Sixth Amendment”), as
amended by that certain Seventh Amendment to Single Tenant Lease, having an effective date of
February 28, 2018 (“Seventh Amendment”), as amended by that certain Eighth Amendment to Single
Tenant Lease, dated as of February 28, 2019 (“Eighth Amendment”); as amended by that certain
Ninth Amendment to Single Tenant Lease, dated as of July 16, 2020, but having an effective Date of
February 29, 2020 (“Ninth Amendment”) and,
WHEREAS, The Original Lease, First Amendment, Second Amendment, Third Amendment,
Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment
and Ninth Amendment shall sometimes hereinafter be collectively referred to as the “Lease”. Pursuant
to the terms and conditions of the Lease, Landlord leases to Tenant, and Tenant leases from Landlord
certain real property located in Gilroy, California, which is improved with a horticultural education and
theme park known as “Gilroy Gardens”, which was developed and constructed by Tenant and is more
particularly described in the Lease; and,
WHEREAS, The Eighth Extension Term (as defined in Section 2 of the Ninth Amendment)
expires on February 28, 2021; and,
WHEREAS, Landlord and Tenant desire to extend the Term of the Lease for a one (1) year
period through and including February 28, 2022.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth
below and for other valuable consideration, the receipt and adequac y of which is hereby acknowledged,
the parties hereto agree as follows:
1. Defined Terms. All capitalized terms used herein, except as otherwise expressly provided
herein, shall have the meanings ascribed to them in the Lease.
2. Extension of Lease Term. The Term of the Lease is hereby extended for a period of one (1)
year, and shall expire on February 28, 2022 (“Ninth Extension Term”), unless sooner terminated in
accordance with the terms of the Lease.
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3. Counterparts; Facsimile Signatures. This Tenth Amendment may be executed in counterparts,
each of which shall be deemed an original and which together shall constitute one instrument. The
signatures of any party or parties on this Tenth Amendment transmitted by facsimile or electronic mail
shall be deemed the same as an original signature and shall be binding on the party transmitting the
same.
4. Lease Status. Tenant warrants, represents and certifies to Landlord that, to the best of Tenant's
actual knowledge, as of the date of this Tenth Amendment: (a) Landlord is not in default under the
Lease; and (b) Tenant does not have any defenses or offsets to payment of rent and performance of its
obligations under the Lease as and when same becomes due.
5. Certified Access Specialist Disclosure. Landlord hereby makes the certified access specialist
disclosure required under California Civil Code Section 1938, which disclosure is more particularly set
forth in Exhibit “A” attached hereto. Exhibit “A” is incorporated into this Tenth Amendment by
reference and made a part hereto.
6. Modification. Except as modified above the terms and conditions of the Lease shall remain
unmodified and in full force and effect. In the event of any conflict or inconsistency between the terms
of this Tenth Amendment and the terms of the Lease the terms of this Tenth Amendment shall control.
(signatures appear on following page)
6.B.a
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IN WITNESS WHEREOF, the parties have caused this Tenth Amendment to be executed as of the
dates set forth besides their signatures below.
LANDLORD: TENANT:
CITY OF GILROY GILROY GARDENS FAMILY THEME
PARK
By: ______________________ By: _________________________
City Administrator Executive Director
Date: _____________________ Date: _________________________
By: ______________________
City Clerk
Date: _____________________
Approved as to Form
By: ______________________
City Attorney
6.B.a
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Exhibit “A”
Certified Access Specialist Disclosure
For purposes of California Civil Code Section 1938, Landlord hereby discloses to Tenant that,
as of the Effective Date, to Landlord’s actual knowledge, the Premises have not undergone inspection
by a Certified Access Specialist (“CASp”). Pursuant to California Civil Code Section 1938(e),
Landlord hereby further discloses to Tenant the following: “A Certified Access Specialist (CASp) can
inspect the subject premises and determine whether the subject premises comply wi th all of the
applicable construction-related accessibility standards under state law. Although state law does not
require a CASp inspection of the subject premises, the commercial property owner or lessor may not
prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the
occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The
parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the
payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct
violations of construction-related accessibility standards within the premises.” Notwithstanding the
foregoing and/or anything to the contrary contained in the Lease (as amended), Landlord and Tenant
hereby agree and acknowledge that, in the event Tenant desires to obtain a CASp inspection, then:
(x) Tenant shall provide Landlord with no less than twenty (20) business days’
prior written notice and, upon receipt of such notice, Landlord shall have the right to, among other
things, (i) select the date and time at which such inspection shall occur, and (ii) have one (1) or more
representatives present during such inspection.
(y) Tenant hereby agrees and acknowledges that it shall (x) provide Landlord with
a copy of any and all findings, reports and/or other materials (collectively, the “CASp Report”)
provided by the CASp immediately following Tenant’s receipt thereof, (y) at all times maintain (and
cause to be maintained) the CASp Report and its findings (and any and all other materials related
thereto) confidential and (z) pay for the CASp inspection and CASp Report at Tenant’s sole cost and
expense. If Tenant receives a disability access inspection certif icate, as described in subdivision (e) of
California Civil Code Section 55.53, in connection with or following any CASp inspection undertaken
on behalf, or for the benefit, of Tenant, then Tenant shall cause such certificate to be provided
immediately to Landlord.
(z) If the CASp Report identifies any violation(s) of applicable construction -
related accessibility standards (“CASp Violation(s)”), Tenant shall immediately provide written notice
to Landlord of any and all such CASp Violation(s). In such ev ent, Tenant shall, at Tenant’s sole cost
and expense, perform, or cause to be performed, any repairs, modifications and/or other work necessary
to correct such the CASp Violation(s) (any such repairs, modifications and/or other work being
collectively referred to herein as the “CASp Work”). Tenant shall commence (or cause the
commencement of) such CASp Work no later than fifteen (15) business days after Landlord’s receipt of
the CASp Report in accordance with the terms and conditions of the Lease (as amended). Tenant shall
diligently prosecute (or cause to be diligently prosecuted) to completion all such CASp Work in a lien
free, good and workmanlike manner, and, upon completion, obtain an updated CASp Report showing
that the Premises then comply with all applicable construction-related accessibility standards. Any and
all cost and expense associated with the CASp Work and/or the updated CASp Report (which Tenant
shall provide to Landlord immediately upon Tenant’s receipt thereof) shall be at Tenant’s sole cost and
expense.
Without limiting the generality of the foregoing, Tenant hereby agrees and acknowledges that:
(i) Tenant assumes all risk of, and agrees that Landlord shall not be liable for, any and all loss, cost,
damage, expense and liability (including, without limitation, court costs and reasonable attorneys' fees)
6.B.a
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sustained as a result of the Premises not having been inspected by a Certified Access Specialist
(CASp); (ii) Tenant's indemnity obligations set forth in the Lease (as amended) shal l include any and
all claims relating to or arising as a result of the Premises not having been inspected by a Certified
Access Specialist (CASp); and (iii) Landlord may require, as a condition to its consent to any
alterations, additions or improvements, that the same be inspected and certified by a Certified Access
Specialist (CASp) (following completion) as meeting all applicable construction -related accessibility
standards pursuant to California Civil Code Section 55.53.
6.B.a
Packet Pg. 20 Attachment: Gilroy Gardens Tenth Amendment (3173 : Gilroy Gardens Lease Extension to 2022)
City of Gilroy
STAFF REPORT
Agenda Item Title: Gilroy Arts Alliance (GAA) Lease Agreement Amendment
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Maria De Leon
Maria De Leon
Strategic Plan Goals
☐ Fiscal Stability
Downtown
Revitalization ☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
City staff recommend approval of the Gilroy Arts Alliance (GAA) lease amendment.
EXECUTIVE SUMMARY
City staff is recommending City Council approve the Gilroy lease amendment with the
lease modifications to include the following:
Elimination of the eight (8) Assessor Parcel Numbers (APN) APN’s #799-08-045,
#799-08-046, #799-08-047, #799-08-048, #799-08-049, #799-08-050, #799-08-
051 and #799-08-060, which are planned for the establishment of downtown
public parking spaces. The lease amendment relinquishes GAA from the
responsibility of maintaining and cleaning up these parcels.
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Designation of three (3) parcels, APNs #799-08-039, #799-08-040 and #799-08-
041, located just north of the Gilroy Center for the Arts, the grass area, as non -
exclusive for public use.
Expand the lease timeline for another twelve (12) months from December 31,
2021 to December 31, 2022, in accordance with the same terms and conditions
of the lease. The original lease started on March 1, 2017 but will now go to
December 31, 2022.
BACKGROUND
Back in December 29, 2009, the City of Gilroy first entered into an agreement for $1 per
year with the Theater Angel’s Art League for the use of the Gilroy owned building
located on 7341 Monterey Rd., between 6th and 7th Streets. This building is also known
as the Old Salvation Army building. Once the Theater Angel’s Art League organization
dissolved, the GAA assumed the agreement to operate the Gilroy Center for the Arts
and facilitate, advocate, and support artistic and cultural activities for the Gilroy
community.
ANALYSIS
The City of Gilroy and the Gilroy Arts Alliance are currently entered into a lease
agreement for the use of the Gilroy Center for the Arts at 7341 Monterey Rd., from
March 1, 2017 until December 31, 2021 for $1 a year. GAA Board Chair Marianne
Eichenbaum reached out to City staff requesting a lease amendment that would
eliminate eight (8) parcels listed on the lease: APN’s #799-08-045, #799-08-046, #799-
08-047, #799-08-048, #799-08-049, #799-08-050, #799-08-051 and #799-08-060.
These eight (8) parcels where previously assigned to the Gilroy Demonstration Garden
and are now designated as future public downtown parking. The lease amendment
relinquishes GAA from the responsibility of maintaining and the upkeep of these
parcels.
The lease amendment also illustrates the three parcels, APNs #799-08-039, #799-08-
040 and #799-08-041, located just north of the Gilroy Center for the Arts, the grass
area, as non-exclusive for public use. The lease indicates the grass area as public
property that can be used by the public to gather, enjoy lunch, sit, walk and play on. The
lease amendment indicates the City of Gilroy and GAA have access to this area to
facilitate programs, activities, classes, and special events so long as there is
coordination and sufficient notice between both agencies to prevent conflicts between
entities and programs.
Additionally, the lease amendment expands the lease timeline for another twelve (12)
months. Rather than ending on December 31, 2021 as originally stated in the current
lease, the amendment extends the terms in accordance with the terms and conditions of
the lease to December 31, 2022.
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ALTERNATIVES
The City of Gilroy could elect not to approve the lease amendment, but this is not
recommended as the lease will then hold the Gilroy Arts Alliance responsible for the
maintenance and upkeep in the area of the future downtown public parking spaces.
FISCAL IMPACT/FUNDING SOURCE
The lease amendment has no fiscal impacts.
CONCLUSION
City of Gilroy staff will continue to have oversight of the Gilroy Arts Alliance programs,
activities, classes, and special events being facilitated out of the Gilroy Center for the
Arts.
Attachments:
1. Gilroy Arts Amendment 2021 FINAL
2. Arts Alliance - 2017 Lease Agreement
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FIRST AMENDMENT TO SINGLE TENANT LEASE
(Gilroy Arts Alliance Center for the Arts – Temporary Cultural and Performing Arts Center)
This FIRST AMENDMENT TO SINGLE TENANT LEASE (“First Amendment”) is made and entered into as
of February ___, 2021 (“Effective Date”), by and between THE CITY OF GILROY, a California municipal corporation
(“Landlord”), and GILROY ARTS ALLIANCE CENTER FOR THE ARTS, a California non -profit corporation
(“Tenant”).
RECITALS
A. Pursuant to that certain Single Tenant Lease, dated as of March 28, 2017, by and between
Landlord and Tenant (“Lease”), Landlord leases to Tenant, and Tenant leases from Landlord, certain premises
(“Original Premises”), consisting of a building commonly known as the “Old Salvation Army Building” (“Building”),
the land on which the Building is located, and certain adjacent vacant properties, all located in Gilroy, California, and
more particularly described as follows:
Site Address Assessor’s Parcel No.
7341 Monterey (Building Site) 799-08-042
7331 Monterey 799-08-043
7301 Monterey 799-08-044
67 W. 7th 799-08-045
57 W. 7th 799-08-046
7310 Eigleberry 799-08-047
7320 Eigleberry 799-08-048
7330 Eigleberry 799-08-049
7350 Eigleberry 799-08-050
7360 Eigleberry 799-08-051
Eigleberry (no street address) 799-08-060
The foregoing sites are more particularly described in the Memorandum of Lease (attached to the Lease as Exhibit
A).
B Landlord and Tenant desire to amend the Lease to, among other things, memorialize Tenant’s
obligation to (A) vacate and surrender the following sites: 67 W. 7th (799-08-045), 57 W. 7th (799-08-046), 7310
Eigleberry (799-08-047), 7320 Eigleberry (799-08-048), 7330 Eigleberry (799-08-049), 7350 Eigleberry (799-08-050),
7360 Eigleberry (799-08-051) and 799-08-060 (no street address), which sites are highlighted on Exhibit A attached
hereto (“Relinquished Space”), but not the remaining portion of the Original Premises (such rema ining portion being
the “Retained Premises”), subject to the terms and conditions of the Lease, as amended by this First Amendment.
The Retained Premises (which enclosed in a red border) and Relinquished Space (which are highlighted) are
delineated on Exhibit A attached hereto.
C. Capitalized terms used in this First Amendment shall have the meanings ascribed to such terms in
the Lease, unless otherwise defined in this First Amendment.
NOW, THEREFORE, in consideration of the foregoing recitals and o ther good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto amend, modify and supplement the
Lease as follows:
1. Vacation and Surrender of Relinquished Space. Tenant hereby agrees and acknowledges that, on
or before the Effective Date, Tenant shall, at Tenant’s sole cost and expense, vacate and surrender to Landlord the
Relinquished Space free and clear of all tenancy and/or occupancy (including, without limitation, any and all
subtenants, sub-subtenants and/or other entities and/or individuals occupying such Relinquished Space (or any
6.C.a
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portion thereof)), and otherwise in accordance with, and subject to the terms and conditions of, the Lease.
Notwithstanding the foregoing, Tenant shall not be obligated to remove the garden from the portion of the
Relinquished Space known as the Demonstration Garden; provided, however, that the foregoing shall not be deemed
or construed to release Tenant from any liability under the Lease with respect to Hazardo us Materials (or otherwise).
From and after the Effective Date, the Lease shall be deemed to have expired, but only as to the Relinquished
Space, it being the intent of the parties that all rights and obligations of Landlord and Tenant under the Lease wit h
respect to such Relinquished Space (and only such Relinquished Space) shall be deemed to have ceased as of
Effective Date; provided, however, that the expiration of the Lease with respect to the Relinquished Space shall not
release, waive or terminate (collectively, the “Continuing Obligations”): (A) any obligations of Tenant under the
Lease relating to the Relinquished Space that expressly survive the expiration or termination of the Lease and/or (B)
any obligations of Tenant under the Lease relating to the Relinquished Space which shall have accrued prior to the
later of (i) the Effective Date, or (ii) such date that Tenant shall have vacated and surrendered the Relinquished
Space in accordance with the terms and conditions of the Lease. Tenant hereby agrees and acknowledges that the
Continuing Obligations shall survive the expiration of the Lease with respect to the Relinquished Space, and the
execution of this First Amendment. From and after the Effective Date, (A) the “Premises” demised under the Lease
shall consist of only the Retained Premises and (B) unless otherwise expressly set forth therein or herein, all
references to the “Premises” in the Lease and this First Amendment shall be deemed to refer only to the Retained
Premises.
2. Condition of Retained Premises. Tenant is in possession and occupancy of the Retained Premises
(and Relinquished Space) as of the Effective Date. Tenant agrees and warrants that it has inspected the condition of
the Retained Premises, and the suitability of the same for Tenant’s purposes, and Tenant does hereby waive and
disclaim any objection to, cause of action based upon, or claim that its obligations hereunder and/or under the Lease
should be reduced or limited because of the condition of such Retained Premises , the Relinquished Space and/or the
Project, and/or the suitability of the same for Tenant’s purposes. Tenant further agrees and acknowledges that, (A)
Landlord has no obligation to alter, improve or refurbish (and/or cause the alteration, improvement and/or
refurbishment of) the Retained Premises and/or Relinquished Space for Tenant’s use or benefit, and/or provide an
allowance for such purpose, and (B) the Retained Premises (and Relinquished Space) are accepted by Tenant in
“as-is condition,” “with all faults,” and “without any representations or warranties.” Tenant acknowledges that neither
Landlord, nor any agent nor any employee of Landlord, has made any representations or warranties with respect to
the Retained Premises, Relinquished Space and/or the Project, or with respect to the suitability of the same for the
conduct of Tenant’s business. Tenant’s continued occupancy and possession of the Retained Premises (and
Relinquished Space) shall conclusively establish that the Retained Premises, Relinquished Space and the Project
were at such time in satisfactory condition.
3. Retained Premises Extended Term. Notwithstanding anything to the contrary contained in the
Lease, Landlord and Tenant hereby extend the term of the Lease (with respect to the Retained Premises for a period
of twelve (12) calendar months, commencing on January 1, 2022 and expiring, unless sooner terminated, on
December 31, 2022 (“Extended Term”). Tenant shall pay Rent (including, without limitation, any and all Real
Property Taxes) during the Extended Term in accordance with the terms and conditions of the Lease.
4. License Area. Tenant shall be entitled to use, on a non-exclusive basis, the grass areas located on
APNs 799-08-039, 799-08-040 and 799-08-041 (as shown on Exhibit A attached hereto) (“License Area”), solely for
the purpose of customary Gilroy Arts Alliance activities, programs and special events; provided, however that Tenant
must leave the License Area in its original condition after each use, and must conduct any use of the License Area in
a neat and orderly manner. In connection therewith, Tenant may, subject to Landlord’s prior written approval (which
approval may be granted or withheld in Landlord’s sole and absolute discretion) hold special events in the License
Area. Tenant shall, at its sole cost and expense, be responsible for maintaining the cleanliness of the License Area
in a first-class manner. Tenant’s use of the License Area shall be subject to (a) Tenant’s compliance with all
applicable Laws (including, without limitation, zoning laws) and (b) Tenant first obtaining any required permit(s)
and/or approval(s) from the City of Gilroy and/or County of Santa Clara (and/or any other governmental or quasi-
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governmental entity of competent jurisdiction), and (c) all other the terms and conditions of the Lease (as amended).
Notwithstanding anything to the contrary contained in this Lease, Tenant hereby agrees and acknowledges that (i )
neither Landlord nor any agent nor any employee of Landlord has made any representations or warranties with
respect to the compliance of the License Area with applicable laws and/or the availability and/or attainability of any
permits and/or approvals relating to the License Area (and, if such permits are available and attainable, the time, cost
and/or conditions associated with obtaining any such permits and/or approvals) and (ii) Tenant does hereby waive
and disclaim any objection to, cause of action based upon, or claim that its obligations under the Lease (as
amended) should be reduced or limited if the License Area is not in compliance with any applicable laws and/or if any
such permits and/or approvals are not available and/or attainable (and/or, if such permits and approvals are available
and/or attainable, as a result of the time, cost and/or conditions associated therewith). Tenant hereby agrees and
acknowledges that, with respect to (and for the direct benefit of) Landlord, all of the indemnity, defense, hold
harmless, exculpation and insurance obligations, on the part of the “Tenant” to be performed or observed under
the Lease (as amended) shall apply with respect to the License Area. Tenant hereby agrees and acknowledges that,
subject to Tenant’s right to hold special event in the License Area pursuant to the terms and conditions set forth in
this Section 4, Tenant’s use of the License Area shall not interfere with Landlord’s use of the License Area and/or the
general public’s use of the License Area. In the event Landlord desires to temporarily prohibit Tenant’s use of the
License Area (e.g., during a Landlord-hosted special event), then Tenant will, upon receipt of such notification from
Landlord, stop conducting its use of the License Area during the period specified in Landlord’s notice.
5. Brokers; Indemnification. Each party represents and warrants to the other party that it has not had
dealings in any manner with any real estate broker, finder or other person with respect to the Extended Term and/or
the negotiation and execution of this First Amendment. Tenant shall indemnify, defend and hold harmless Landlord
from all damage, loss, liability and expense (including attorneys’ fees and related costs) ar ising out of or resulting
from any claims for commissions or fees that may be or have been asserted against Landlord by any broker, finder or
other person with whom Tenant has (or purportedly has) dealt in connection with the negotiation and execution of t his
First Amendment. Landlord and Tenant agree that Landlord shall not be obligated to pay any broker leasing
commissions, consulting fees, finder fees or any other fees or commissions arising out of or relating to an extension
of the term of the Lease, to any expansion or relocation of the Retained Premises at any time. All indemnification,
defense and hold harmless obligations of Tenant set forth in the Lease (as amended by this First Amendment) shall
survive the expiration or earlier termination of the Lease (as the same may have been amended).
6. Evidence of Authority. Concurrently with its execution of this First Amendment, Tenant shall
provide Landlord written evidence reasonably satisfactory to Landlord, showing the authority of the individuals
executing this First Amendment on behalf of Tenant to execute this First Amendment and bind Gilroy Arts Alliance
Center for the Arts, a California non-profit corporation, with respect thereto.
7. Modified Provision. The last sentence of Section 6.2 of the Lease is hereby deemed deleted and
replaced in its entirety with the following: “Tenant hereby waives and releases its rights pursuant to Sections 1932(1),
1941 and 1942 of the Civil Code of California and any similar or successor law(s) regarding Tenant’s right to
terminate this Lease or to make repairs and deduct the expenses of such repairs from the rent due under this Lease.
Tenant hereby waives any right of redemption or relief from forfeiture under the laws of the State of California, or
under any other present or future law, including, without limitation, the provisions of Sections 1174 and 1179 of the
California Code of Civil Procedure.”
8. Certified Access Specialist Inspection. For purposes of California Civil Code Section 1938,
Landlord hereby discloses to Tenant that, as of the Effective Date, to Landlord’s actual knowledge, the Retained
Premises (and Relinquished Space) have not undergone inspection by a Certified Access Specialist (“CASp”).
Pursuant to California Civil Code Section 1938(e), Landlord hereby further discloses to Tenant the following: “A
Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises
comply with all of the applicable construction-related accessibility standards under state law. Although state law
does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not
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prohibit the lessee or tenant from obtaining a CASp inspect ion of the subject premises for the occupancy or potential
occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the
arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and
the cost of making any repairs necessary to correct violations of construction -related accessibility standards within
the premises.” Notwithstanding the foregoing and/or anything to the contrary contained in this First Amendment,
Landlord and Tenant hereby agree and acknowledge that, in the event Tenant desires to obtain a CASp inspection,
then:
(x) Tenant shall provide Landlord with no less than twenty (20) business days’ prior written
notice and, upon receipt of such notice, Landlord shall have the right to, among other things, (i) select the date and
time at which such inspection shall occur, and (ii) have one (1) or more representatives present during such
inspection.
(y) Tenant hereby agrees and acknowledges that it shall (x) provide Landlord with a copy of
any and all findings, reports and/or other materials (collectively, the “CASp Report”) provided by the CASp
immediately following Tenant’s receipt thereof, (y) at all times maintain (and cause to be maintained) th e CASp
Report and its findings (and any and all other materials related thereto) confidential and (z) pay for the CASp
inspection and CASp Report at Tenant’s sole cost and expense. If Tenant receives a disability access inspection
certificate, as described in subdivision (e) of California Civil Code Section 55.53, in connection with or following any
CASp inspection undertaken on behalf, or for the benefit, of Tenant, then Tenant shall cause such certificate to be
provided immediately to Landlord.
(z) If the CASp Report identifies any violation(s) of applicable construction-related
accessibility standards (“CASp Violation(s)”), Tenant shall immediately provide written notice to Landlord of any and
all such CASp Violation(s). In such event, Tenant shall, at Tenant’s sole cost and expense, perform, or cause to be
performed, any repairs, modifications and/or other work necessary to correct such the CASp Violation(s) (any such
repairs, modifications and/or other work being collectively referred to herein as the “CASp Work”). Tenant shall
commence (or cause the commencement of) such CASp Work no later than fifteen (15) business days after
Landlord’s receipt of the CASp Report in accordance with the terms and conditions of the Lease (as amended).
Tenant shall diligently prosecute (or cause to be diligently prosecuted) to completion all such CASp Work in a lien
free, good and workmanlike manner, and, upon completion, obtain an updated CASp Report showing that the
Premises then comply with all applicable const ruction-related accessibility standards. Any and all cost and expense
associated with the CASp Work and/or the updated CASp Report (which Tenant shall provide to Landlord
immediately upon Tenant’s receipt thereof) shall be at Tenant’s sole cost and expens e.
Without limiting the generality of the foregoing, Tenant hereby agrees and acknowledges that: (i) Tenant assumes all
risk of, and agrees that Landlord shall not be liable for, any and all loss, cost, damage, expense and liability
(including, without limitation, court costs and reasonable attorneys' fees) sustained as a result of the Retained
Premises (and/or Relinquished Space) not having been inspected by a Certified Access Specialist (CASp); (ii)
Tenant's indemnity obligations set forth in the Lease (as amended) shall include any and all claims relating to or
arising as a result of the Retained Premises (and/or Relinquished Space) not having been inspected by a Certified
Access Specialist (CASp); and (iii) Landlord may require, as a condition to its consent to any alterations, additions or
improvements, that the same be inspected and certified by a Certified Access Specialist (CASp) (following
completion) as meeting all applicable construction-related accessibility standards pursuant to California C ivil Code
Section 55.53.
9. Effect of First Amendment. Except as modified herein, the terms and provisions of the Lease shall
remain unmodified and continue in full force and effect. In the event of any conflict between the terms and provisions
of this First Amendment and the terms and provisions of the Lease, the terms and provisions of this First Amendment
shall prevail.
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[Signatures Appear on Following Page]
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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date first set
forth above.
LANDLORD:
CITY OF GILROY,
a California municipal corporation
By:__________________________
Its:__________________________
ATTEST:
_______________________________
City Clerk
APPROVED AS TO FORM:
________________________________
City Attorney
TENANT:
GILROY ARTS ALLIANCE CENTER FOR THE ARTS,
a California nonprofit corporation
By:________________________________________
Its:________________________________________
Printed Name:_______________________________
By:________________________________________
Its:________________________________________
Printed Name:_______________________________
6.C.a
Packet Pg. 29 Attachment: Gilroy Arts Amendment 2021 FINAL (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
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4844-6029-3076v4
SSCORDELIS\04706083
EXHIBIT A
DELINEATION OF RETAINED PREMISES AND RELINQUISHED SPACE
6.C.a
Packet Pg. 30 Attachment: Gilroy Arts Amendment 2021 FINAL (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
SINGLE TENANT LEASE
Gilroy Arts Alliance Center for the Arts — Temporary Cultural and Performing Arts
Center)
THIS LEASE, for reference purposes only dated March 28, 2017, is entered into by and
between THE CITY OF GILROY, a municipal corporation ( "Landlord "), and GILROY ARTS
ALLIANCE CENTER FOR THE ARTS, a California non - profit corporation ( "Tenant").
PREMISES.
1.1 Subject to the reservation described in Paragraph 1.2 below, Landlord
hereby leases to Tenant and Tenant hereby hires from Landlord the building commonly known
as the Old Salvation Army Building ( "Building "), the land on which the Building is located, and
adjacent vacant properties, all located in Gilroy, California and more specifically described as
follows:
Site Address Assessor's Parcel No.
7341 Monterey
Building site)
7331 Monterey
7301 Monterey
67 W. 7th
57 W. 7th
7310 Eigleberry
7320 Eigleberry
7330 Eigleberry
7350 Eigleberry
7360 Eigleberry
Eigleberry
no street address)
799 -08 -042
799 -08 -043
799 -08 -044
799 -08 -045
799 -08 -046
799 -08 -047
799 -08 -048
799 -08 -049
799 -08 -050
799 -08 -051
799 -08 -060
collectively referred to herein as the "Premises ". The land contained within the Premises is more
particularly described in the Memorandum of Lease attached hereto as Exhibit A.
2. LEASE TERM.
2.1 Term. The term of this Lease ( "Term ") shall commence on March 1,
2017 (the "Commencement Date ") and expire on December 31, 2021. Notwithstanding the
foregoing, either party shall have the right to terminate the Lease prior to its natural expiration by
giving the other party not less than ninety (90) days' prior written notice, which notice shall set
forth the effective date of termination. This Lease shall also be subject to termination as
elsewhere provided in this Lease. "Lease Termination" shall mean the expiration or sooner
termination of this Lease.
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Packet Pg. 31 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
2.2 Delay in Commencement Date. If Landlord is unable to deliver
possession of the Premises on the Commencement Date, Landlord shall not be liable for any
damage caused thereby, nor shall this Lease be voidable, provided, however, that if Landlord has
not delivered possession of the Premises to Tenant by May 1, 2017, Tenant may terminate this
Lease by delivering written notice to Landlord prior to delivery of possession by Landlord. The
expiration date of this Lease shall not be extended by such delay. If Tenant, with Landlord's
consent, takes possession prior to the Commencement Date, Tenant shall do so subject to all of
the covenants and conditions hereof.
2.3 Acceptance. Tenant hereby accepts the Premises in its "AS IS" condition
without representation or warranty of any kind, express or implied, and subject to all applicable
laws. Upon taking possession of the Premises, Tenant shall be deemed to have accepted the
Premises as being in good and sanitary order, condition and repair, and to have accepted the
Premises in its existing condition, subject to all applicable laws, covenants, conditions,
restrictions, easements and other matters of record. Landlord shall have no obligation to
construct any improvements on or within the Premises for the benefit of Tenant. Neither
Landlord nor Landlord's agents, employees or other representatives makes any representation or
warranty as to the suitability of the Premises for the conduct of Tenant's business, the condition
of the Premises, or the use or occupancy which may be made thereof, and Tenant has
independently investigated and is satisfied that the Premises are and will be suitable for Tenant's
intended use. Tenant shall be solely responsible for installing or arranging for any security
devices or services desired by Tenant for the Premises and the safety of persons or property upon
the Premises, and Landlord shall have no obligation or liability with respect to the provision or
lack of provision of such security devices or services.
3. RENT.
3.1 Rent. Landlord agrees to lease the Premises to Tenant at $1 per year, in
exchange for services to be provided by Tenant, which services are more particularly described
in Section 5 below. Such services shall be provided without charge to Landlord. All amounts
which Tenant is required to pay under this Lease, and all damages, costs and expenses, which
Landlord may incur by reason of any default by Tenant under this Lease shall be deemed to be
rent hereunder ( "Rent "). All Rent shall be paid in lawful money of the United States to Landlord
at the address specified in this Lease for purposes of notice, or to such other persons or at such
other places as may be designated in writing by Landlord from time to time. All Rent shall be
paid without offset or deduction and, except as otherwise expressly provided in this Lease,
without prior notice or demand.
4. TAXES.
4.1 Real Property Taxes. Tenant shall pay, before the same become
delinquent, all Real Property Taxes imposed against Landlord or Tenant in connection with this
Lease or against the Premises. As used in this Lease, Real Property Taxes means any form of
assessment, license, fee, rent tax, levy or tax (other than net income, estate, successor or
inheritance taxes), now or hereafter imposed by any authority having the direct or indirect power
to tax or by any city (including Landlord), county, state or federal government or any
improvement or other district or division thereof, whether or not now customary or within the
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Packet Pg. 32 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
contemplation of the parties, ordinary or extraordinary, general or special, or resulting from
increased rate or valuation, together with any taxes levied or assessed in lieu of, in substitution
for, or in addition to existing taxes and assessments against the Premises, including without
limitation any possessory interest tax. In connection with California Revenue and Taxation Code
section 107.6, Landlord states and Tenant acknowledges that by entering into this Lease, a
possessory interest subject to property taxes may be created. Tenant or other parties in whom the
possessory interest has vested may be subject to the payment of property taxes levied on such
interest.
4.2 Tax on Leasehold or Personal Property. Tenant shall be responsible for
and shall pay before delinquency all municipal, county or state taxes, levies and fees of every
kind and nature including, but not limited to, general or special assessments assessed during the
Term against any leasehold interest or trade fixtures or personal property of any kind, owned or
leased by or placed in, upon or about the Premises by Tenant. Tenant agrees to pay before
delinquency the amount of all taxes levied upon or measured by the rent payable hereunder,
whether as a so- called sales tax, transaction privilege tax, excise tax, or otherwise. If such taxes,
levies or fees are assessed, levied, or imposed upon Landlord or any portion of the Premises,
Landlord shall give Tenant a statement of the amount applicable to the Premises. If a separate
assessment of the improvements is not available from the appropriate governmental authority,
Landlord's good faith allocation shall be binding on Tenant. In such event, Tenant shall pay
Landlord on demand for such taxes, levies and fees applicable to the Premises.
5. CONDUCT OF BUSINESS BY TENANT.
5.1 Use of the Premises. Tenant shall use the Premises solely as a community
based cultural and performing arts facility for meetings, art displays, small scale live artistic
performances, art classes and seminars and the creation of a community garden, in furtherance of
the promotion of multicultural art and overall health within the City of Gilroy community, and
for no other purpose. Any use of the Premises for a community garden shall be limited to
facilitating a community gardening program, recruiting and managing volunteers to work at the
garden and teaching gardening classes and fundamentals to the community. Tenant may
collaborate with any other public agency to provide such services, provided that Landlord is
notified of such collaboration. Any additional programs and/or services shall be subject to
approval or disapproval by the City of Gilroy City Administrator or his/her designee prior to
implementation. Except for janitorial service providers, Landlord and Tenant shall be the sole
key holders to the Premises with alarm access to the Premises. Tenant's activities shall be subject
to the City of Gilroy's Facility Use Guidelines. In no event shall Tenant permit any art,
performance or other activity on the Premises that would be determined under applicable laws to
be legally obscene, or that would, if exhibited or occurring with respect to a commercial business
or establishment, be subject to regulation under Chapter 2A of the City Gilroy Code (which
regulates adult businesses), as such Chapter may be amended from time to time. Tenant's breach
of any of its obligations pursuant to the prior sentence shall, at Landlord's election, constitute a
non - curable default under this Lease, which in addition to all other rights and remedies available
to Landlord by law, in equity or under this Lease, shall entitle Landlord to terminate this Lease
by delivering to Tenant not less than ten (10) days prior written notice.
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Packet Pg. 33 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
5.2 Compliance with Law. Tenant, at its expense, shall comply promptly with
all applicable laws regulating the use by Tenant of the Premises and the conduct of its activities
on the Premises, including without limitation all copyright laws and licensing requirements, and
any permits that may be required in connection with outdoor events. Tenant shall not use or
permit the use of the Premises in any manner that will tend to create a nuisance. Tenant shall
place no loads upon the floors, walls or ceilings in excess of the maximum designed load
determined by Landlord or which endanger the structure; nor place any harmful liquids in the
drainage systems; nor dump or store waste materials or refuse or allow such to remain outside
the Building, except in enclosed trash areas provided, if any. Tenant shall not store or permit to
be stored or otherwise place any other material of any nature whatsoever outside the Building.
Tenant and. Tenant's agents, officers, directors, employees, contractors, representatives, servants,
licensees or invitees (collectively "Tenant's Agents ") shall not use, store or dispose, or allow the
use, storage or disposal of, any Hazardous Materials on any portion of the Premises. As used in
this paragraph, Hazardous Materials means any chemical, substance or material which has been
or is hereafter determined by any federal, state or local governmental authority to be capable of
posing risk of injury to health or safety, including without limitation, petroleum, asbestos,
polychlorinated biphenyls, radioactive materials and radon gas.
6. MAINTENANCE, REPAIRS, AND ALTERATIONS.
6.1 Landlord's Responsibility for Maintenance and Repair. During the Term
of this Lease or any extension thereof, Landlord shall not be responsible for the maintenance or
repair of any portion of the Premises, and Tenant shall be responsible for any and all damage or
injury caused by the negligence or willful misconduct of Tenant or Tenant's Agents. Tenant
shall pay to Landlord any costs incurred by Landlord to correct damage or injury for which
Tenant is responsible pursuant to the prior sentence not later ten (10) days after receiving
Landlord's invoice for such costs.
6.2 Tenant's Responsibility for Maintenance and Repair. Tenant shall, during
the Term or any extension thereof, keep in good order, condition and repair the entire Premises,
including, without limitation, all fixtures, exterior and interior walls and exterior and interior
surface of walls, roof, roof drain system, interior and exterior painting, electrical and plumbing
systems, heating, ventilating and air conditioning systems, other large -scale equipment, fire
alarm and fire. sprinkler systems, windows, plate glass, landscaping, paving and other exterior
areas and improvements located on the Premises from time to time, subject to Paragraph 8.1
below. Tenant's obligations under this Paragraph shall include the obligation to replace any of
the foregoing items, or any portion thereof, which cannot be fully repaired. Tenant shall
properly maintain any community garden to ensure there are no overgrown weeds, regularly
manicure the shrubbery, prevent and remove the accumulation of garbage, and prevent long
standing piles of dirt and an overall appearance of an abandoned garden. The Premises shall be
maintained by Tenant in an attractive, safe, and fully operative condition at all times during the
Term. To maintain the facility equipment in good working order and to prevent breakdowns, the
Tenant shall ensure the facilitation of regularly scheduled maintenance on all facility equipment
which requires on -going servicing to maintain their good working condition. This shall include
at a minimum) bi- annual maintenance on the HVAC equipment, all required fire alarm and fire
sprinkler equipment inspections and maintenance, and annual roof and roof drain maintenance.
This aforementioned required maintenance must be performed by qualified contractors, and the
I"
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Packet Pg. 34 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
documentation of such work provided to Landlord. Notwithstanding the above requirements, if,
during the Term or any extension thereof, an incident occurs in which a "Major System" —
defined exclusively as the HVAC system, fire alarm system, or fire sprinkler system — breaks
down, and the Major System has been maintained properly by the Tenant, Tenant shall be
responsible for the cost to repair or replace equipment in the Major System only up to $5,000 per
incident. Landlord shall have the option to cover the cost to repair or replace the broken
equipment in the Major System exceeding $5,000, or alternatively to terminate the lease pursuant
to Paragraph 2.1. The election of either option by Landlord shall not constitute a default by
Landlord hereunder. If multiple Major Systems concurrently break down, then the concurrent
break downs shall be treated as one incident and costs to repair or replace the Major Systems
shall be calculated cumulatively such that Tenant is responsible only for costs of repairs or
replacement of broken equipment up to $5,000 per incident. In no event shall Landlord have any
repair or maintenance responsibility for the Premises, or any portion thereof, except as otherwise
expressly provided in this Lease. Tenant waives the provisions of California Civil Code section
1941 and 1942 and any similar law now or hereafter in effect.
6.3 Condition Upon Surrender. On Lease Termination, Tenant shall remove
its personal property and trade fixtures from the Premises, surrender the Premises to Landlord in
at least as good a condition as when received by Tenant under this Lease, ordinary wear and tear
excepted, subject to Paragraph 8.1 below. At Landlord's option, Landlord shall have the right to
require that Tenant remove any and all alterations, additions, signs, artwork or improvements
made by Tenant during the Term of this Lease and perform any necessary repairs caused by such
removal to the condition that existed prior to the installation of such alteration, addition, sign,
artwork or improvement and in accordance with all applicable laws in effect as of the date of
such repair.
6.4 Improvements by Tenant. Tenant shall not, without prior written consent
of Landlord, make or install any alterations, improvements, or additions (collectively,
Improvements ") to the Premises, including without limitation any exterior landscaping or
outdoor facilities or improvements. Before commencing any Improvements, Tenant shall submit
plans and specifications to Landlord for Landlord's approval. At least ten (10) days prior to
undertaking construction or installation of any Improvements, Tenant shall give written notice to
Landlord setting forth the date work is to commence. Landlord shall have the right at all
reasonable times to post and keep posted on the Premises such notices of non - responsibility as
Landlord may deem necessary for the protection of Landlord and the Premises from mechanic's
and materialman's liens. All Improvements shall be installed at Tenant's sole cost and expense,
in compliance with all applicable laws, permit requirements and any covenants, conditions or
restrictions of record, by a licensed contractor, shall be done in a good and workmanlike manner
conforming in quality and design with the Premises existing as of the date the Premises were
delivered to Tenant under this Lease, and shall not diminish the value of the Premises. All
Improvements made by Tenant shall be and become the property of Landlord upon installation
and shall not be deemed Tenant's personal property; provided, however, that Landlord may, at
its option, require that Tenant, at Tenant's expense, remove any or all Improvements installed by
Tenant and restore the Premises to their condition that existed prior to the installation of the
Improvements and in accordance with all applicable laws in effect as of the date of such repair.
This paragraph shall survive the Lease Termination. Tenant shall be solely responsible for the
maintenance and repair of any Improvements made by Tenant to the Premises.
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Packet Pg. 35 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
7. INSURANCE AND INDEMNITY.
7.1 Tenant's Insurance. Tenant shall at all times during the Term, at Tenant's
sole cost and expense, maintain in effect the following insurance:
i) Worker's compensation insurance in not less than the minimum amounts
required by law;
ii) Commercial general liability insurance (at least as broad as the most
commonly available ISO Commercial General Liability policy form CG 00 01), or such
successor comparable form of coverage in the broadest form then available, for the mutual
benefit of Landlord and Tenant, against any and all claims and liabilities arising out of the
ownership, use, occupancy or maintenance of the Premises, or Tenant's activities thereon. The
minimum limit of coverage of such policy shall be in the amount of not less than One Million
Dollars ($1,000,000) per occurrence and annual aggregate, shall include an extended liability
endorsement providing contractual liability coverage (which shall include without limitation
coverage for Tenant's indemnification, defense and hold harmless obligations in this Lease), and
shall contain a severability of interest clause or a cross liability endorsement. Such insurance
shall further insure Landlord and Tenant against liability for property damage of at least One
Million Dollars ($1,000,000); and
iii) Business automobile liability insurance having a combined single limit of
not less than One Million Dollars ($1,000,000) per occurrence and insuring Tenant against
liability for claims for bodily injury, death, or property damage, arising out of ownership,
maintenance, or use of any owned, hired or non -owned automobiles.
7.2 General Requirements. No policy maintained by Tenant under Paragraph
7.1 shall contain a deductible greater than Two Thousand Five Hundred Dollars ($2,500). No
policy shall be cancelable or subject to reduction of coverage without thirty (30) days prior
written notice to Landlord (except for nonpayment which shall require not less than ten (10) days
notice). Such policies of insurance shall be issued as primary policies and not contributing with
or in excess of coverage that Landlord may carry, by an insurance company authorized to do
business in California for the issuance of such type of insurance coverage and having an AM
Best financial strength rating or A+ or better. All deductibles shall be deemed self - insured with
full waiver of subrogation. All Tenant policies shall contain an endorsement that the insurer
waives its right to subrogation. The types of insurance and minimum limits specified above are
the minimum required by Landlord, and Landlord may from time to time require changes and/or
additions thereto to meet changed circumstances or as otherwise reasonably required by
Landlord, including without limitation changes in the purchasing power of the dollar and
changes consistent with the standards required by other landlords in Santa Clara County,
California. Tenant's obligations under this Lease shall not be limited to the amount of any
insurance required of or carried by Tenant under Paragraph 7.1 and Tenant is responsible for
insuring that the amount of insurance carried by Tenant is sufficient for Tenant's purposes. All
insurance required to be carried by Tenant hereunder shall be in companies, on forms and with
loss payable clauses satisfactory to Landlord and copies of policies of such insurance, certified
by the insurer to be a true and correct copy of the insurance policies, shall be delivered to
Landlord by Tenant prior to the Commencement Date. A new certified policy shall be delivered
in
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Packet Pg. 36 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
to Landlord at least thirty (30) days before expiration of the old policy. The liability policies to
be carried by Tenant under this Lease shall name Landlord and its agents, employees and
designated lenders as additional insureds. All policies shall provide coverage on an occurrence
basis and not on a claims made basis.
7.3 Waiver of Liability. Landlord and Tenant each hereby waives any and all
rights of recovery against the other or against the employees, representatives and agents of such
other party for loss of or damage to such waiving party or its property or the property of others
under its control, arising from any cause to the extent insured against under any insurance policy
carried by such waiving party and to the extent such waiver is permitted under such insurance
policy and does not prejudice coverage under such policy. Tenant shall obtain and furnish
evidence to Landlord of the waiver by Tenant's insurance carriers of any right of subrogation
against Landlord.
7.4 Tenant to Hold Landlord Harmless. Tenant hereby agrees to defend,
indemnify and hold harmless Landlord and Landlord's employees, representatives and agents
from and against any and all claims, damages, losses, liabilities, judgments or expenses
including without limitation attorneys' fees) due to any cause, including without limitation those
relating to bodily injury, property damage or copyright infringement, which arises out of or is in
any way attributable to the use or occupancy of the Premises or any part thereof including any
community gardens on the Premises by Tenant or Tenant's Agents, the acts or omissions of
Tenant or Tenant's Agents or Tenant's breach of this Lease, except to the extent caused by the
willful misconduct or negligence of Landlord. This paragraph and Tenant's obligation hereunder
shall survive Lease Termination.
7.5 Landlord's Disclaimer. Landlord shall not be liable for injury or damage
which may be sustained by the person, goods, wares, merchandise or property of Tenant, its
employees, invitees or customers or any other person in or about the Premises caused by or
resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into any
part of the Premises, or from the breakage, leakage, obstruction or other defects of the pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same, or from
any other cause, whether such damage or injury results from conditions arising upon the
Premises or from other sources.
8. REPAIRS AND RESTORATION.
8.1 Damage. Landlord shall have no obligation to rebuild, restore or "repair all
or any portion of the Premises in the event of any damage or destruction thereto from any cause.
If at any time during the Term the Premises are damaged to the extent such damage materially
interferes with Tenant's continued use of the Premises, and Landlord elects not to rebuild, restore
or repair, Tenant's sole right shall be to terminate this Lease by giving written notice of
termination. Notwithstanding Tenant's election to terminate the Lease pursuant to this
Paragraph 8. 1, if the damage was caused by Tenant or Tenant's Agents, Tenant shall reimburse
Landlord for all costs incurred by Landlord in repairing or rebuilding the Premises to the extent
such costs exceed any Net Insurance Proceeds received by Landlord from any insurance policy.
As used in this Lease, "Net Insurance Proceeds" shall mean the proceeds of insurance received
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Packet Pg. 37 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
from the insurer, less costs of recovery. This paragraph and Tenant's obligations hereunder shall
survive Lease Termination.
8.2 Notice, Rent Abatement, Refixturina. Tenant shall notify Landlord in
writing immediately upon the occurrence of any damage or destruction to all or any portion of
the Premises. There shall be no abatement of Rent payable hereunder and Tenant shall have no
claim against Landlord for any damage suffered by Tenant by reason of any such damage,
destruction, repair or restoration. In no event shall any damage, destruction, restoration or repair
of any portion of the Premises result in an extension of the expiration date of the Lease.
9. ASSIGNMENT AND SUBLETTING.
9.1 Landlord's Consent Required. Tenant shall not, either voluntarily,
involuntarily or by operation of law (i) assign, sell or otherwise transfer all or any part of the
Tenant's interest in this Lease or in the Premises, or (ii) permit any part of the Premises to be
sublet, occupied or used by anyone other than Tenant or (iii) permit any person to succeed to any
interest in this Lease or the Premises, (all of the foregoing being collectively referred to as a
Transfer "). In no event shall Landlord be required to consent to any Transfer. Tenant
recognizes and acknowledges that Landlord has agreed to enter into this Lease because of
Tenant's operation as a non -profit corporation actively dedicated to promoting and fostering
programs for the benefit and nurturing of the community's interest in community cultural and
arts programs and performances and the benefit that the programs to be conducted at the
Premises will bestow upon the citizens and community of the City of Gilroy. Tenant
acknowledges and agrees that the prohibition against Transfers is therefore fair and reasonable.
If Tenant is a corporation, any dissolution, merger, consolidation or reorganization of Tenant, the
transfer, assignment or hypothecation of any stock or interest in such corporation in the
aggregate in excess of twenty -five percent (25 %), or the sale (cumulatively) of fifty percent
50 %) or more of the value of Tenant's assets shall be deemed a Transfer. If Tenant is a
partnership, a withdrawal or substitution of any partner(s) owning twenty -five percent (25 %) or
more of the partnership (cumulatively), any assignment(s) of twenty -five percent (25 %) or more
cumulatively) of any interest in the capital or profits of the partnership, the sale (cumulatively)
of fifty percent (50 %) or more of the value of Tenant's assets, or the dissolution of the
partnership shall be deemed a Transfer. If Tenant is a limited liability company, any dissolution,
merger, consolidation or reorganization of Tenant, the transfer, assignment or hypothecation of a
membership, economic or other interest in the limited liability company in the aggregate in
excess of twenty -five percent (25 %), or the sale (cumulatively) of fifty percent (50 %) or more of
the value of the limited liability company's assets shall be deemed a Transfer. In the case of any
other entity comprising Tenant, any transfer, assignment or hypothecation of any interest in such
entity in the aggregate in excess of twenty -five percent (25 %), or the sale (cumulatively) of fifty
percent (50 %) or more of the value of Tenant's assets shall be deemed a Transfer. In no event
shall Tenant hypothecate, mortgage, pledge or encumber Tenant's interest in this Lease or in the
Premises or otherwise use the Lease as a security device in any manner, nor shall Tenant transfer
any right appurtenant to this Lease or the Premises separate from a permitted Transfer. Tenant
expressly agrees that the provisions of this Article are not unreasonable standards or conditions
for purposes of Section 1951.4(b)(2) of the California Civil Code, as amended from time to time,
under the federal Bankruptcy Code, or for any other purpose.
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Packet Pg. 38 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
10. EMINENT DOMAIN.
10.1 Automatic Termination. If the entire Premises, or so much of either as to
make the Premises not reasonably adequate for the conduct of Tenant's business in Tenant's
reasonable judgment shall be taken under the power of eminent domain, this Lease shall
automatically terminate as of the date on which the condemning authority takes possession.
10.2 Rent Abatement. If a portion of the Premises is taken by power of
eminent domain which does not result in a termination of this Lease, then this Lease shall
continue in full force and effect as to the part of the Premises not so taken. There shall be no
abatement of Rent payable hereunder and Tenant shall have no claim against Landlord for any
damage suffered by Tenant by reason of any taking of the Premises under the power of eminent
domain.
10.3 Condemnation Award. Any award for any taking of all or any part of the
Premises under the power of eminent domain shall be the property of Landlord, whether such
award shall be made as compensation for diminution in value of the leasehold or for taking of the
fee. In no event shall Landlord be obligated to make any repairs or perform any restoration or
other work required as a result of a taking. Nothing contained herein, however, shall be deemed
to preclude Tenant from obtaining, or to give Landlord any interest in, any award to Tenant for
loss of or damage to Tenant's trade fixtures and removal of personal property and Tenant's
moving expenses.
10.4 Sale Under Threat of Condemnation. A sale by Landlord to any authority
having the power of eminent domain, either under threat of condemnation or while
condemnation proceedings are pending, shall be deemed a taking under the power of eminent
domain for all purposes under this Article. Each party waives the provisions of California Code
of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to
terminate this Lease in the event of a taking.
11. UTILITY SERVICES. Tenant shall arrange and pay for janitorial services and
janitorial supplies to the Premises and shall arrange and pay for water, sewer, gas, electric,
telephone, cable, on -line and any other utility services to the Premises, and for any security or
alarm system or services that Tenant desires for the Premises. Landlord shall not be liable in
damages or otherwise for any failure or interruption of any utility or service being furnished to
the Premises, including without limitation any security or alarm system or service, and no such
failure or interruption shall affect Tenant's obligations under this Lease. Landlord shall be
entitled to cooperate voluntarily and Tenant agrees to cooperate, with the efforts of governmental
authorities or utility suppliers in reducing energy or other resource consumption.
12. DEFAULTS, REMEDIES.
12.1 Defaults. The occurrence of any one or more of the following events shall
constitute a default hereunder by Tenant:
12.1.1 The abandonment of the Premises by Tenant. Abandonment is
defined to include, but is not limited to, any absence by Tenant from the Premises for ten (10)
consecutive days or longer.
In
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12.1.2 The failure by Tenant to make any payment required by this
Lease as and when due.
12.1.3 The failure by Tenant to timely observe or perform any of the
express or implied covenants or provisions of this Lease to be observed or performed by Tenant,
which this Lease characterizes as a non - curable default.
12.1.4 The failure by Tenant to timely observe or perform any of the
express or implied covenants or provisions of this Lease to be observed or performed by Tenant,
other than as specified in Paragraphs 12. 1.1 or 12.1.2 above, and other than those that this Lease
characterizes as a non - curable default.
12.1.5 (a) The making by Tenant of any genera_ 1 assignment for the
benefit of creditors; (b) the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease,
where possession is not restored to Tenant within thirty (30) days, or (c) the attachment,
execution or other judicial seizure of substantially all of Tenant's assets located at the Premises
or of Tenant's interest in this Lease, where seizure is not discharged within thirty (30) days.
12.2 Remedies. Upon a default, Landlord shall have the following remedies, in
addition to all other rights and remedies provided by law or otherwise provided in this Lease, to
which Landlord may resort cumulatively or in the alternative:
12.2.1 Landlord may continue this Lease in full force and effect, and
this Lease shall continue in full force and effect as long as Landlord does not terminate this
Lease, and Landlord shall have the right to collect Rent when due. No act by Landlord other
than .giving written notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to
relet the Premises or the appointment of a receiver on Landlord's initiative to protect Landlord's
interest under this Lease shall not constitute a termination of Tenant's right to possession.
12.2.2 Landlord may terminate this Lease and Tenant's right to
possession of the Premises at any time (i) if such default is in the payment of Rent and it is not
cured within three (3) days after written notice from Landlord, or, (ii) with respect to the defaults
referred to in Paragraphs 12.1.1, or 12.1.4, if such default is not cured within thirty (30) days
after written notice from Landlord; provided, however, that• if the nature of Tenant's default is
such that more than thirty (30) days are reasonably required for its cure, if Tenant does not
commence to cure the default within the thirty (30) day period or does not diligently and in good
faith prosecute the cure to completion within a reasonable time thereafter, or (iii) with respect to
a default described in Paragraph 12.1.3, upon delivery to Tenant of not less than ten (10) days
prior written notice of termination, or (iv) with respect to a default specified in Paragraph 12.1.5,
if such default is not cured within the respective time specified in that paragraph. The parties
agree that any notice given by Landlord to Tenant pursuant to this Paragraph 12.2.2 shall be
sufficient notice for purposes of California Code of Civil Procedure Section 1161 and Landlord
shall not be required to give any additional notice in order to be entitled to commence an
unlawful detainer proceeding. On termination, Landlord has the right to remove all of Tenant's
personal property, signs and trade fixtures and store same at Tenant's cost and to recover from
Tenant as damages:
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12.2.2.1 The worth at the time of award of unpaid Rent and
other sums due and payable which had been earned at the time of termination; plus
12.2.2.2 The worth at the time, of award of the amount by which
the unpaid Rent and other sums due and payable which would have been payable after
termination until the time of award exceeds the amount of such Rent loss that Tenant proves
could have been reasonably avoided; plus
12.2.2.3 The worth at the time of award of the amount by which
the unpaid Rent and other sums due and payable for the balance of the Term after the time of
award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided;
plus
12.2.2.4 Any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant's failure to perform Tenant's obligations
under this Lease, or which, in the ordinary course of things, would be likely to result therefrom;
plus
12.2.2.5 Such other amounts in addition to or in lieu of the
foregoing as may be permitted from time -to -time by the laws of the State of California.
The "worth at the time of award" of the amounts referred to in Paragraphs 12.2.2.1 and
12.2.2.2 is computed by allowing interest at the Stipulated Rate (defined in Paragraph 16). The
worth at the time of award" of the amount referred to in Paragraph 12.2.2.3 is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1 %).
12.2.3 No delay or omission of Landlord to exercise any right or
remedy shall be construed as a waiver of any such right or remedy or of any default by Tenant
hereunder.
12.3 Default by Landlord. Landlord shall not be deemed to be in default in the
performance of any obligation required to be performed by it hereunder unless and until it has
failed to perform such obligation within thirty (30) days after written notice by Tenant to
Landlord specifying wherein Landlord has failed to perform such obligation; provided, however,
that if the nature of Landlord's obligation is such that more than thirty (30) days are required for
its performance then Landlord shall not be deemed to be in default if it shall commence such
performance within such thirty -day period and thereafter diligently prosecute the same to
completion. Notwithstanding any other provision of this Lease, in no event shall Landlord be
liable to Tenant for consequential damages, or loss of or interference with Tenant's business,
including without limitation lost profits.
12.4 Expenses of Prevailing Part y. If either party incurs any expense, including
reasonable attorneys' fees, in connection with any action or proceeding instituted by either party
arising out of this Lease, the party prevailing in such action or proceeding shall be entitled to
recover its reasonable expenses including attorneys' fees from the other party.
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13. SIGNS. Tenant shall not, without Landlord's prior written consent install or affix
to any portion of the Premises any exterior or interior window, door or other signs, lettering,
placards or the like (collectively "Signs "). If Landlord consents to the erection of any Signs,
such Signs shall comply with any sign criteria imposed by Landlord and all applicable laws.
14. RIGHT OF ENTRY. Landlord and its agents shall have free access to the
Premises during all reasonable hours for the purpose of examining the same to ascertain if they
are in good repair, making repairs or installations which Landlord may be permitted to make
hereunder, performing Landlord's obligations under this Lease, protecting the Premises, posting
notices of nonresponsibility, and exhibiting the same to prospective purchasers, lenders or
tenants.
15. TRANSFER OF LANDLORD'S INTEREST. Upon any transfer or transfers of
Landlord's interest in the Premises, the transferor shall be automatically relieved of any and all
obligations and liabilities on the part of Landlord accruing from and after the date of such
transfer, provided that the transferee is liable for any and all obligations and liabilities on the part
of Landlord accruing from and after the date of such transfer. Tenant shall attorn to any
transferee of Landlord's interest in the Premises.
16. INTEREST. Any amount due from Tenant to Landlord hereunder which is not
paid when due shall bear interest from the due date until paid an annual rate of interest (the
Stipulated Rate ") equal to the greater of (i) ten percent (10 %); or (ii) five percent (5 %) plus the
rate established by the Federal Reserve Bank of San Francisco, as of the twenty -five (25th) day
of the month immediately preceding the due date, on advances to member banks under Sections
13 and 13(a) of the Federal Reserve Act, as now in effect or hereafter from time to time
amended. Payment of such interest shall not excuse or cure any default by Tenant under this
Lease.
17. PROHIBITED TRANSACTION. Tenant represents and warrants that neither
Tenant nor any of its affiliates have engaged in any dealings or transactions, directly or
indirectly, (i) in contravention of any U.S., international or other money laundering regulations
or conventions now or hereafter in effect, or any enabling legislation or executive order relating
thereto, or (ii) in contravention of Executive Order No. 13244 issued by the President of the
United States (Executive Order Blocking Property and Prohibiting Transactions with Persons
Who Commit, Threaten to Commit, or Support Terrorism) or any regulations promulgated
thereunder, as may be amended or supplemented from time to time ( "Anti- Terrorism Order "), or
iii) on behalf of terrorists or terrorist organizations, including those persons or entities that are
included on any relevant lists maintained by the United Nations, North Atlantic Treaty
Organization, Organization of Economic Cooperation and Development, Financial Action Task
Force, U.S. Office of Foreign Assets Control, U.S. Securities & Exchange Commission, U.S.
Federal Bureau of Investigation, U.S.. Central Intelligence Agency, U.S. Internal Revenue
Service, or any country or organization, all as may be amended from time to time. Tenant
represents and warrants that neither Tenant nor any of its affiliates are a person described in
section 1 of the Anti- Terrorism Order and neither Tenant nor any of its affiliates have engaged in
any dealings or transactions, or otherwise been associated with any such person. If at any time
any of the representations and warranties in this Section becomes false then it shall be
considered a non - curable default by Tenant under this Lease.
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18. MISCELLANEOUS.
18.1 Time of Essence. Time is of the essence with respect to the performance
of every provision of this Lease.
18.2 Captions. The article and paragraph captions contained in this Lease are
for convenience only and shall not be considered in the construction or interpretation of any
provision hereof.
18.3 Entire Agreement and Amendments. This Lease contains all of the
agreements of the parties hereto with respect to any matter covered or mentioned in this Lease,
and no other agreement or understanding pertaining to any such matter shall be effective for any
purpose. No provision of this Lease may be amended or added to except by an agreement in
writing signed by the parties hereto or their respective successors in interest.
18.4 Notice. Any notice required or permitted to be given hereunder shall be in
writing and may be served personally (which includes without limitation delivery by overnight
courier services) or by mail. All notices shall be sent to the following addresses:
Landlord: City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020 -6141
Attn: Landlord Administrator
Tenant: Gilroy Arts Alliance Center for the Arts
7341 Monterey St.
Gilroy, CA 95020
Any notice so given by mail shall be deemed effectively given three (3) days after being
deposited in the United States mail, registered or certified, postage prepaid and addressed as
specified herein. Either party may by written notice to the other specify a different address for
notice purposes. Notwithstanding the foregoing, any legal notices required to be sent by one
party to the other (including without limitation, a notice pursuant to California Code of Civil
Procedure Section l 161) shall be delivered in the manner required or allowed by law.
18.5 Holdover. This Lease shall terminate without further notice at the
expiration of the Term. Any holding over after Lease Termination with the consent of Landlord
shall be construed to be a tenancy from month to month, but otherwise on the same terms and
conditions set forth in this Lease. If Tenant remains in possession of the Premises after Lease
Termination without Landlord's consent or fails to surrender the Premises in the condition
required by Paragraph 6.3, Tenant shall indemnify, defend and hold Landlord and Landlord's
employees, representatives and agents harmless from and against any claims, losses, damages,
judgments, expenses or liabilities (including without limitation attorneys' fees) resulting from
Tenant's failure to surrender the Premises in the required condition, including without limitation,
any claims made by any succeeding tenant based upon delay in the availability of the Premises,
which obligations shall survive Lease Termination.
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18.6 Brokers. Tenant warrants and represents that it has had no dealings with
any real estate broker or agent in connection with the negotiation of this Lease. Tenant agrees to
defend, indemnify and hold Landlord and Landlord's employees, representatives and agents
harmless from and against any and all claims, losses, damages, liabilities, judgments or expenses
including without limitation attorney's fees) arising out of or in connection with claims made by
any broker or individual for commissions or fees resulting from Tenant's execution of this Lease,
which obligations shall survive Lease Termination.
18.7 Acceptance. Delivery of this Lease, duly executed by Tenant, constitutes
an offer to lease the Premises, and under no circumstances shall such delivery be deemed to
create an option or reservation to lease the Premises for the benefit of Tenant. This lease shall
only become effective and binding upon full execution hereof by Landlord and delivery of a
signed copy to Tenant.
18.8 Waiver. The waiver by Landlord of any breach of any term, condition or
covenant of this Lease shall not be deemed to be a waiver of such provision or any subsequent .
breach of the same or any other term, condition or covenant of this Lease. The subsequent
acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding
breach at the time of acceptance of such payment. No covenant, term or condition of this Lease
shall be deemed to have been waived by Landlord unless such waiver is in writing signed by
Landlord.
18.9 Separability. If one or more of the provisions contained herein, except for
the payment of Rent, is for any reason held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision of this Lease,
but this Lease shall be construed as if such invalid, illegal or unenforceable provision had not
been contained herein.
18.10 Liens. Tenant shall pay for all labor and services performed for, and all
materials used by or furnished to Tenant or Tenant's Agents and keep the Premises free'from any
liens arising out of work performed, materials furnished, or obligations incurred by Tenant or
Tenant's Agents with respect to the Premises. Tenant shall indemnify, hold harmless and defend
Landlord and Landlord's employees, representatives and agents from and against any liens,
demands, claims, judgments, losses, liabilities, damages, expenses or encumbrances (including
all attorneys' fees) arising out of any work or services performed for or materials used by or
furnished to Tenant or Tenant's Agents with respect to the Premises. Tenant shall do all things
necessary to prevent the filing of any mechanic's or other liens against the Premises or any part
thereof by reason of work, labor, services or materials supplied or claimed to have been supplied
to Tenant, or anyone holding the Premises, or any part thereof, through or under Tenant. If any
such lien shall at any time be filed against the Premises, Tenant shall either cause the same to be
discharged of record within ten (10) days after the date of filing of the same, or, if Tenant in
Tenant's discretion and in good faith determines that such lien should be contested, Tenant shall
furnish such security as may be necessary or required to (a) prevent any foreclosure proceedings
against the Premises during the pendency of such contest, and (b) cause a mutually satisfactory
title company to remove such lien as a matter affecting title to the Premises. If Tenant shall fail
to discharge such lien within such period or fail to furnish such security, then, in addition to any
other right or remedy of Landlord resulting from Tenant's said default, Landlord may, but shall
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not be obligated to, discharge the same either by paying the amount claimed to be due or by
procuring the discharge of such lien by giving security or in such other manner as is, or may be,
prescribed by law. Tenant shall repay to Landlord on demand all sums disbursed or deposited by
Landlord pursuant to the foregoing provisions of this Paragraph 18.10 including Landlord's
costs, expenses and reasonable attorneys' fees incurred by Landlord in connection therewith,
with interest thereon at the Stipulated Rate. Nothing contained herein shall imply any consent or
agreement on the part of Landlord to subject Landlord's estate to liability under any mechanics'
or the lien law. Tenant shall give Landlord adequate opportunity and Landlord shall have the
right to post such notices of non - responsibility as are provided for in the mechanics' lien laws of
California. Tenant's obligations pursuant to this paragraph shall survive Lease Termination.
18.11 Encumbrances. This Lease is subject and subordinate to ground and
underlying leases, mortgages, deeds of trust and other monetary liens (collectively
Encumbrances ") which may now affect the Premises, to any covenants, conditions or
restrictions of record, and to all renewals, modifications, consolidations, replacements and
extensions thereof; provided, however, if the holder or holders of any such Encumbrance
Holder ") shall require that this Lease be prior and superior thereto, within seven (7) days after
written request of Landlord to Tenant, Tenant shall execute, have acknowledged and deliver any
and all documents or instruments, in the form presented to Tenant, which Landlord or Holder
deems necessary or desirable for such purposes. Landlord shall have the right to cause this
Lease to be and become and remain subject and subordinate to any and all Encumbrances which
are now or may hereafter be executed covering the Premises or any renewals, modifications,
consolidations, replacements or extensions thereof, for the full amount of all advances made or to
be made thereunder and without regard to the time or character of such advances, together with
interest thereon and subject to all the terms and provisions thereof. Within ten (10) days after
Landlord's written request, Tenant shall execute any and all documents required by Landlord or
the Holder to make this Lease subordinate to any lien of the Encumbrance. If Tenant fails to do
so, then in addition to such failure constituting a default by Tenant, it shall be deemed that this
Lease is so subordinated to such Encumbrance. Tenant hereby attorns and agrees to attorn to any
entity purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant
to the exercise of any other rights, powers or remedies under such Encumbrance so long as the
Lease remains in effect.
18.12 Recording. Upon execution of this Lease by Tenant, Tenant shall execute
in recordable form and deliver to Landlord a Memorandum of Lease in the form of Exhibit "A"
attached hereto. Following Lease Termination, Tenant shall, promptly following demand from
Landlord, execute a Quitclaim Deed in favor of Landlord quitclaiming all of Tenant's right, title
and interest under this Lease; provided, however, that Tenant's failure to delivery such Quitclaim
Deed when requested shall not delay or prevent or otherwise affect the expiration or termination
of this Lease. Tenant's obligations pursuant to this paragraph shall survive Lease Termination.
18.13 Landlord's Right to Perform Tenant's Covenants. If Tenant fails to make
any payment or perform any other act on its part to be made or performed under this Lease,
Landlord may, but shall not be obligated to and without waiving or releasing Tenant from any
obligation of Tenant under this Lease, make such payment or perform such other act to the extent
Landlord may deem desirable, and in connection therewith, pay expenses and employ counsel.
All sums so paid by Landlord and all penalties, interest and costs in connection therewith shall
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be due and payable by Tenant immediately on demand, together with interest at the Stipulated
Rate from date of payment by Landlord to the date of payment by Tenant to Landlord, plus
collection costs and attorneys' fees.
18.14 Tenant's Remedy. If, because of a default by Landlord under this Lease,
Tenant recovers a money judgment against Landlord, such judgment shall be satisfied only out
of the proceeds of sale received upon execution of such judgment and levied thereon against the
right, title and interest of Landlord in the Premises and out of rent or other income from the
Premises receivable by Landlord, and neither Landlord, nor its employees, representatives or
agents, shall be personally liable for any deficiency. Neither Landlord's employees, agents, nor
representatives, nor any other person or entity other than Landlord, nor any of their respective
assets, shall be liable for Landlord's breach of this Lease.
18.15 Exhibits. All exhibits, amendments, riders and addenda attached hereto
are hereby incorporated herein and made a part hereof.
18.16 Conditions. All agreements of Tenant contained in this Lease, whether
expressed as conditions or covenants, shall be construed to be both conditions and covenants,
conferring upon Landlord, in the event of a breach thereof, the right to terminate this Lease.
18.17 No Partnership or Joint Venture. Nothing in this Lease shall be construed
as creating a partnership or joint venture between Landlord, Tenant, or any other party, or cause
Landlord to be responsible for the debts or obligations of Tenant or any other party.
18.18 Construction. This Lease shall not be construed either for or against
Tenant or Landlord, but shall be construed in accordance with the general tenor of the language.
This Lease shall be construed in accordance with the laws of the State of California.
18.19 Joint and Several Liability. If Tenant consists of more than one (1) person
or entity, the obligations of each Tenant under this Lease shall be joint and several.
18.20 Binding Effect. Subject to the provisions of Paragraph 15 and Article 9,
all of the provisions hereof shall bind and inure to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and permitted assigns.
THIS LEASE is effective as of the date the last signatory necessary to execute the Lease
shall have executed this Lease.
Dated: I " L 1 ,
IM
DCV I
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TENANT:
GILROY ARTS ALLIANCE CENTER
FOR THE ARTS,
a California non rofit corporation
By: Al
Its: 'W"g7Vt plamc
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Dated: A c y. !T2! O I `7
17-
LANDLORD:
CITY OF GILROY,
a municipal corporation
M
APPROV D AS T
i
M:
1
City Attorney
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EXHIBIT "A"
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Gilroy
7351 Rosanna Street
Gilroy, California 95020
Attn: City Clerk
RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTIONS
6103 AND 27383.
Assessor's Parcel Number (APN) 799 -08 -042; 799 -08 -043;
799 -08 -044; 799 -08 -045; 799 -08 -046; 799 -08 -047; 799 -08 -048;
799 -08- 049;799 -08- 050;799 -08 -051; and 799 -08 -060
SPACE ABOVE THIS LINE FOR RECORDER'S USE
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE ( "Memorandum ") is entered into as of May 9,
2017, by and between the CITY OF GILROY, a municipal corporation ( "Landlord ") and
GILROY ARTS ALLIANCE CENTER FOR THE ARTS, a California nonprofit corporation
Tenant "), with respect that certain Lease dated of even date herewith by and between Landlord
and Tenant.
Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the building
commonly known as the Old Salvation Army Building (`Building "), the land on which the
Building is located, and adjacent vacant properties all located in Gilroy, California, commonly
known by the following Site Addresses:
Site Address
7341 Monterey (Building site)
7331 Monterey
7301 Monterey
67 W. 7th
57 W. 7th
7310 Eigleberry
7320 Eigleberry
7330 Eigleberry
7350 Eigleberry
7360 Eigleberry
Eigleberry
no street address assigned)
collectively referred to herein as the "Premises. ", all of which are more particularly described on
Exhibit A attached hereto and made a part hereof, upon the terms and conditions of the Lease.
The term of the Lease shall commence on March 1, 2017 and expire on December 31, 2021,
subject to earlier termination as described in the Lease.
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This Memorandum shall incorporate all of the provisions of the Lease as though fully set
forth herein. This Memorandum is entered by the parties for purposes of recordation and shall
not be deemed to modify, amend, alter, limit or otherwise change any of the provisions of the
Lease. In the event of any conflict or ambiguity between the terms of this Memorandum and the
terms of the Lease, the terms of the Lease shall prevail.
IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Memorandum
as of the date first set forth above.
CITY OF GILROY,
a municipal corporation
Attest: By:
By: Its:
City Clerk
Approved as to form:
By:
City Attorney
GILROY ARTS ALLIANCE CENTER
FOR THE ARTS,
a. California nonprofit corporation
LIM
Its:
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EXHIBIT "A" TO MEMORANDUM
Page 1
Escrow No. 128771 -JW
LEGAL DESCRIPTION EXHIBIT
All that certain Real Property in the City of Gilroy, County of Santa Clara, State of
California, described as follows:
PARCEL ONE:
Beginning at a point on the Westerly line of Monterey Street distant thereon 133.40
feet Northerly from the point of intersection of the Northerly line of Seventh Street
with the Westerly line of Monterey Street; thence Northerly along said Westerly line
of Monterey Street, 59.70 feet; thence Westerly 150.80 feet; thence Southerly 59.90
feet; thence Easterly 150.50 feet to the Point of Beginning, and being Lot 8, Block
1, South Range 1 West, as shown on Map No. 5 accompanying final report of referees in
action of Henry Miller, et al, vs. Massey Thomas, et als, in the Superior Court of
the State of California, in and for the County of Santa Clara. Excepting therefrom so
much thereof as lies within that certain alley conveyed by Thomas Rea Company, a
Corporation, et als, to City of Gilroy, A Municipal Corporation, by deed recorded
August 2, 1912 in Book 388 of Deeds, page 381, Santa Clara County Records.
PARCEL TWO:
Lot 9, Block 1, South, Range 1 West, as shown upon Map No. 5 accompanying the report
of the referees in the case of Henry Miller, et al, vs. Massey Thomas, et al, filed
for record in the office of the County Clerk of the County of Santa Clara, State of
California, and being more particularly described as:
Beginning at a point on the Westerly line of Monterey Street, distant thereon 108.40
feet Northerly from its intersection.with the Northerly line of Seventh Street;
thence Northerly along said Westerly line of Monterey Street 25 feet; thence Westerly
along the Northerly line of said Lot 9, 150.50 feet; thence Southerly along the
Westerly line of said Lot 9, 24 feet; thence Easterly along the Southerly line of
said Lot 9 150.28 feet to the Point of Beginning.
Excepting therefrom so much thereof as lies within the bounds of that certain alley,
as said alley was conveyed by J. Clavera, et al, to the City of Gilroy, A Municipal
Corporation, by deed recorded August 2, 1912 in Book 388 of Deeds, page 351, Records
of Santa Clara County.
PARCEL THREE:
Lot 10, Block 1, South Range 1 West, as shown on Map No. 5 accompanying final report
of-referees in action of Henry Miller, et al, vs. MasseyThomas, et al, in the
Superior Court of the State of California, in and for the County of Santa Clara.
Excepting therefrom so much thereof as lies within that certain alley conveyed by
Thomas Rea Company, a Corporation, et al, to City of Gilroy, A Municipal Corporation,
by Deed recorded August 2, 1912 in Book 388 of Deeds, page 381, Santa Clara County
Records.
PARCEL FOUR:
Beginning at a point on the Westerly line of Monterey Street, distant thereon
fifty -three and 90/100 feet Northerly from the point of intersection of the Westerly
line of Monterey Street with the Northerly line of Seventh Street; thence running
DEEDLEGL•0B /09194b%
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Page 2
Escrow No. 128771 -JW
LEGAL DESCRIPTION EXHIBIT
Northerly and along, the Westerly line of Monterey Street, twenty -nine and 80/100
29.80) feet to the point of intersection thereof with the dividing line between Lots
10 and 11 in Block 1 of South Range 1 West of the City of Gilroy, as shown upon the
Map hereinafter referred to; thence running Westerly and along the dividing line
between said Lots 10 and 11, one hundred forty -one and 50/100 (141.50) feet to a
point on the Easterly line of an alley twelve and 50/100 (12.50) feet wide; thence
running Southerly and along the Easterly line of said alley, and parallel with the
Westerly line of Monterey Street, twenty -nine and 80/100.(29.80) feet to a point on
the Southerly line of said Lot 11; thence running Easterly and along the SoutherlylineofsaidLot11, one hundred forty -one and 50/100 (141.50) feet to the Point of
Beginning, and being a portion of Lot it in Block 1 South Range l West of the City ofGilroy, as shown upon Map No. 5 accompanying the report of the commissioners in the
partition suit of Henry Miller, et al, vs. Massey Thomas, et al, in the Superior
Court of the State of California, in and for the County of Santa Clara.
PARCEL FIVE:
Beginning at a point on the Northerly line of Seventh Street, distant thereon one
hundred nineteen and 10 /100 (119.10) feet Westerly from the point of intersection of
the Northerly line of Seventh Street, with the Westerly line of Monterey Street;
thence running Westerly and along the Northerly line of Seventh Street, twenty -two
and 40/100 (22.40) feet to the point of intersection of the Northerly line of Seventh
Street with the Easterly line of an alley twelve and 50/100 (12.50) feetwide; thence
running Northerly and along the Easterly line of said alley and parallel with the
Westerly line of Monterey Street, fifty -three and 50/100 (53.50) feet to a point on
the Southerly line of Lot 11 in Block 1 South Range l West of the City of Gilroy, as
shown upon the Map thereof hereinafter referred to; thence running Easterly and alongtheSoutherlylineofsaidLot11, twenty -two and 40/100 (22.40) feet to the
Northwesterly corner of Lot 12 in said Block 1 South Range 1 West; thence running
Southerly and along the Westerly line of said Lot 12, fifty -three and 50/100 (5.3.50)
feet to the Point of Beginning, and being a portion of Lot 13 in Block 1 South Range
1 West of the City of Gilroy, according the Map No. 5 accompanying the report of the
commissioners in the partition suit of Henry Miller, et al, vs. Massey Thomas, et al,
in the Superior Court of the State of California, in and for the County of Santa
Clara.
DEEDLEGL.08 /09/94bk
6.C.b
Packet Pg. 51 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
RECORDING REQUESTED BY
ANDREW L. FABER, SBN 61072
LINDA A. CALLON, SBN 99450
LAURA PALAZZOLO, SBN 210954
WHEN RECORDED MAIL TO
NAME ANDREW L. FABER, SBN 61072
LINDA A. CALLON, SBN 99450
MAILING BERLINER COHEN
ADDRESS TEN ALMADEN BLVD . , STE .
1100
cITY, STATE SAN JOSE, CA
ZIPCODE 95113 -2233
FINAL ORDER OF CONDEMNATION
VC'rci
DOCUMENT: 19675633 Pages: 12
Fees.... 40.00
Taxes...
Copies.
AMT PAID 40.00
REGINA ALCOMENDRAS RDE I# 007
SANTA CLARA COUNTY RECORDER 12/06/2007
Recorded at the request of 2 :52 PM
Recording Service
SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE
TITLE(S)
Su
Us
LS -201
6.C.b
Packet Pg. 52 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
1 r
2
3
4
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UALA1737585.1
091207 - 04706080
IT IS HEREBY ORDERED:
Fee simple title to the property consisting of all right, title, and interest in and appurtenant
to the following: 7310, 7320, 7330, 7350, and 7360 Eigleberry Street and 7353 and 7355
Monterey Street, Gilroy, California; Assessor Parcel Nos. 799 -08 -047, 799 -08 -048, 799 -08 -049,
799 -08 -050, 799 -08 -051, 799 -08 -060, 799 -08 -039, and 799 -08 -040; as more particularly
described in the legal descriptions at Exhibit "1" attached hereto (the "Property "), which
descriptions are incorporated herein and by reference made a part hereof, is hereby condemned
to and taken for a lawful public purpose. Upon recordation of a certified copy of this Final Order
with the Santa Clara County Recorder, fee simple title to the Property shall vest in the CITY, its
successors and assigns.
IT IS HEREBY FURTHER ORDERED that real property taxes and assessments are
cancelled as of November 1, 2006, the date upon which the CITY was entitled to take possession
of the Property pursuant to the Order of Immediate Possession.
DATED: OCTOBER, 2007
BY: lzh
M E OF THE SUPERIOR COURT
KEVIN J. MURPHY
THE FOREGOING INSTRUMENT IS
A CORRECT COPY OF THE ORIGINAL
ON FILE IN THIS OFFICE
ATTEST: KIRI TORRE
DEC - 6 2007
CWIEF EXECVTffE OFFICETUCLERK
SUPERI C OF UNTYOFSANTACLAR.A
IN F TN TY OF SANTACLARA
BY DEPUTY
VV'. VAIJOH44
FINAL OR.DER OF CONDEMNATION
6.C.b
Packet Pg. 53 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
DESCRIPTION
STTF 1.155 Monterey Street
ESCROW; 943526
AP'; 199-08 -039
EXHDIT PACKET "A"
A11 that certain peal nrntwrty in the City of Gilroy, County of SauLa Clcuci,
State vt talxZuuaia, dcsc=ibcd ers follows:
pnyri nn of Lot 6, is Bleak 1 6ouLk .-}.. esuowu LLPOII tden No- 5
accompanying report of the eomsniecionera'in Henry Miller et al, Plaintiffs, vs-
Harley Thomas et in the simerior Court of the Stdtt oL
California, ,.iu cud for the County of sputa Clara, C&ec Number 5536, and more
particularly durcribeo as tollows:
Beginning at a point in the Wert line of Monterey Street, dirrant 295.90 feet
tirrttlsP.rjy from the SoutbwcsL uvi.ur...c of MuuLnier -d 51Lt- I.Strects, slmaimg thence
Northerly &long said 0cetcrly line Of Monterey Street, 20.09 =oat; thence at
right &tales wPCr_erly 151 feet end parr of said libt ruing U=iivgh the center
VL p"tijaon wall now on said deacribed.premiaca; thence Southerly and paxa11e1
vrith tha Rest line of mnnrarey ar.rrer, vu.uu feet; thence Easterly 151 f=t-to
the Point of Beylurtiuq.
Krrpnring from the aboYo dtzm;t1L-1 vioj;eiLy, -LL e westerly to feet thcrovf, 9C .
GouvGycd to the City`of Cilroy, A Nuuioipal Corporation, by Deed re- mrded'AUgust
7, 1.417, in- volume 388 of Deeds, rt ?age 381.
6.C.b
Packet Pg. 54 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
DESCRYPUON
SITE: 7353 Monterey Street
ESCROW: 943526
APNt 7YY -08 -040
EXHIBIT PACKET "A"
All LhnL Cci -tain Acal Frobc.rty in the City of ailLvy, CQ mty of sang. CTara , IState, of California, described as followO;
Ccu mcncing at a pninr. aru Llit_Weatcrly line of Montersy Street, rlistanL 235.50
feet smEt -b icly from the point of intersection of said Westerly line of
Mcmtercy OtreAt with tbm' Souilielly line of Sixth Ctrtot) thence running
Southerly ixlc -y the westerly LLha,of Mgntony. ;treer 71 feet; thence at right
auglea wavtcxly 141 teet r,; the Easterly liucs uC an' alley; then co Morthr:rIy
along t_he Ea ctr_Cly line of said Alley 21 feat; Ana theur•P SaBtc..rly' 141 feet;.
nu:,re or .lnae, to' tho point of hrgl nninQ; and bainy. a' portion of. Lot 6 in
3410c* 1 South rage 1 Rmst: in.6aid city of.ailro'y ; ae.'csid Lnr_ 6 is
desigraatod on Map No. -S. riled wit.h.ayid° forming a p&rL of the report of the .
ref arc." in the aetiou iu pastit:ion of llmry Miller et: al, s- Mau6e'y s'hemav,
cL al, Cabe So. $536, in th? Er_tPPTior uaiirt of the 3Late of Callzorn.ia, in
acid for the rnunty of Sautes Clara.
6.C.b
Packet Pg. 55 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
DESCRIPTION
SITE: 7310 Eiglcberry Street
ESC'RO'W: 943S26
A_PN: 799 -08 -047
1 In 10 • • :
iill that certaln Real •Pi,uycity in the City of Oilr•oy, Co=t)' of yanta Clara,
Sl.uLc of Cdifornia, deoozibad as tollowc :
ALL OF LOT 18, in BLOCK 1, Smith Range 7 Nest, CiLy of Giircry and more
ppreicvlariy des iitfeci as followe:
REr-INN1rIG ar rhr_ 19orLLea5t .coLncr of EiS;UbarrY Street and 8evcnth -street. Ann
LucjLI.Ag thence along tt.a Plat line of wigelbotry S *rPPt NorLLLerly 109 foot;
tb nce $aarer]y 301.04 feet; Chesce Southerly 46.30 fcct.thenca Westerly 75
EcuL the=cc SoutbC -=17 61.70 toot to the North line of Sevtant -L Stscet axid
thencm along laer. mentioned liale W¢atexly 77.24 feet to the Point et
b cy i w in9 .
6.C.b
Packet Pg. 56 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
DESCRIPTION
SITE: 7330 Eipleberry Street
RSCROW: Y43516
APh: 799 -08 -049
EXHMIT PACK1;T 111111
A11 that cerr..ain Real Property in tha City of ailroy, County of Stnta ttgra,
stare of California, darcrirpA aA fulluwr:
All of Lot 16, in binrk 1 Sauth, rengc 1 "Iect;''iF 'st+nurn on Map No. 5 accompanying
report nt the Commissioners in henry Millea at 41, rlaintifis vs. massey Tltvivas
et al, Defendants, i.n the Superior Covrt of the state of California, in and for
the County nf Sant-a Clara, Cate NWber 55 3n, and u,u_c particularly dperribed oa
follows:
Segiruling at a point on the xaster.ly liuG' of Eic it .rr'y Street, disLamt thereon
158 -90 tact 2ortherly LiLAu the iatcroection of said line ut EigelbcrZy Straer
with rhe.lvorLLerly line of seventh Rr-reeL; thence Northerly along said liye of
Eiglebesiy 6treot ')7.no rcet to the ndividingline .betwee Loth 15 and 16 in Plonk
1 Smith, Raagu 1 West, ac shown tVw..+n r.he May Lereinabove refarred ro; theuc:c
Easterly along said livid uy line 140.90 feet to the Atvidiug lino botr.oaa Lots
Ind 16 in said Block and Rangoi tbeno? Srnatlic&ly 'alonq the dividing line bclwz=
Lois 7, 0. =d 16 in rain blue% and Raage, 7B.o0 ta4t to rhm dividing line between
Lotc 19 acid 17 iu said Mock and P —%=Ue; rbnmce Hobtierly' along last rRrPrred tV
dividiuI Line 149 -40 feet to the point of beginning.
6.C.b
Packet Pg. 57 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
i
SITE! 7360U-1eben- yStrect
ESCROW: 943.526
APN: 799 -08 -051 6 199 —od46o
DESCRIPTION
EXHIBIT .PA. (.:K FT "B"
nil tbat certain Rcal Property in the City of oilroy, County of Santa Clara,
State of CGliforaio, deseti.bad ac follows:
NLRCRL OWE-,
Bcginning at i point in the v:aarrrly linr. of r:igPlhPrry street, wLlch point io
the enmmnn coxuer of bote 14 a-nd 15 in Dlock 1 South, Rage 1 Woot of the City of-
Dilroy,, ae the Dame ig ebow,4 on Map No_ 5 and its amendments aecouWanyi.ay Llie
rwport oL ttie rA.tetees in the partition suit of Hccuy Miller at ml va. idanoey
Tiiomae ct al, in the Superior Covrt of the County of Santa Clara, State of -
California "d. running t.hanor.e Easterly and along the line divJLUiaq said iota 14
and 15, 198.40 fecL,- thence bT=thcrly and porallel with tho Easterly lino of
Eigclbe --y sL-rest 59 -04 i ?ftt; theme wegterly.and Parallel with Lbu line dividing
said Jots 14 and 15, 7.48.40 feet to the Easterly lint of Eigolberxy strvat; and
tbenct Sbuthexly and along the Easterly lino of Eige.lbe-vry Strrwt 59.64 feet to
the place. of beginning, aul Lc uy all of LvL- NO. 14 and a PArt of Lot No. 5, in
Block 1 3"tb, Rangc 1 Weet of tha city of Gilroy, ac choum on szaid Map Nu. 5 and
ita amendm ncr hPreinabwr uicLtluucu.
Rxcaptizg tbeierrnm r.har- portion therrot corivcycd Lu Llie City of Gilroy by Dead
vt M. Casey, et al to City of Cilroy, recorded in the Ott Lee at the ccnnty
Recozfl9r of the L:ounty Of Rant--A f'lara, Star -P of CalifocLio iu Dook 380 of-Doedc,
aL PmW= 301.
PAXCZL TKO;
Pmrut-1 cue as shoran, upon that certain PB=cel Hap filod for ronord July 20, 1981
in Boo)_ 575 of Mape, At. vx9er .si nnA Sz of Tanta Clara CouuLy.Rccerda.
3.1 N\/
6.C.b
Packet Pg. 58 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
GILRART -01 AMANDA
ACOR ®" CERTIFICATE OF LIABILITY INSURANCE
DATE (MM DDNYYY)
411312017
THIS CERTIFICATE IS ISSUED AS A MATTER: OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the poliry(ies).must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
PRODUCER License # 0504035
Pacific Diversified Insurance, Inc.
15006 Concord Circle, Suite 110
4084842 -2131
Morgan Hill, CA 95037
Ha°ME cT Amanda Link, CISR, CLCS
PHONE Ext : (arc YNo
AiR'6 alink@pdins.com
016-06219 -NPO 10/2412016
INSURERIS) AFFORDING COVERAGE NAIC tt
INSURER A: NonprOflts' Ins Alliance of CA 11845
PREMISES (Ea occurrence)
INSURED
INSURER B
MED EXP (Any one person)
INSURER C:
GEN'L
X
Gilroy Arts Alliance
INSURER D:
1,000,000
7341 Monterey Street
Gilroy, CA 96020 INSURER E:
2,000,000
INSURER F:
2,000,000
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. ,NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES ,DESCRIBED HEREIN IS SUBJECT TO,ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED, BY PAID.CLAIMS.,
RRLTR TYPE OF INSURANCE INSDD WVD POLICY NUMBER- MMIDDIYYYY ) POLICY EXPIMWDDfyyyyl LIMITS
A X COMMERCIAL GENERAL LIABILITY
CLAIMS -MADE X OCCUR
H,NOA
X 016-06219 -NPO 10/2412016 10/2412017
EACKOCCURRENCE S 1,000,000
PREMISES (Ea occurrence) 500,000
X
MED EXP (Any one person) 20,000
GEN'L
X
PERSONAL & ADV INJURY 1,000,000
AGGREGATE LIMIT APPLIES PER:
POLICY 7 PRO- JECT LOC
OTHER:
GENERAL AGGREGATE 2,000,000
PRODUCTS - COMWOP AGG 2,000,000
AUTOMOBILE LIABILITY
ANY AUTO
ALL OWNED SCHEDULED
AUTOS AUTOS
HIRED AUTOS
NON -OWNED
AUTOS
COMBINED UNGLE LIMIT
Ea accident
BODILY INJURY (Per person)
BODILY INJURY (Per accident)
PROPERTY DAMAGE
Per accident
UMBRELLA LIAB
EXCESSLIAR
OCCUR
CLAIMS -MADE
EACH OCCURRENCE
AGGREGATE
DEC) 11 1 RETENTION $
WORKERS COMPENSATION
AND EMPLOYERS LIABILITY
YIN
ANY ,PROPRIETOR /PARTNER /EXECUTIVE
OFFICER/MEMBER EXCLUDED?
Mandatory 'In NH)
If yes, describe under
DESCRIPTION OF OPERATIONS, below
NIA
STATUTE I I ER
E.L. EACH ACCIDENT .., _
E.L. DISEASE - EA EMPLOY
E. L. DISEASE - POLICY LIMIT I
DESCRIPTION OF OPERATIONS S/ LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space Is requlred)
City of Gilroy, its officers, officials and employees are named as additional insureds on the General Liability Policy where required by written contract
VCRS jr IVMic nvLucr%
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
SHOULD ANY OF THE ABOVE.DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
0 1988 -2014 ACORD CORPORATION. All rights reserved.
ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD
6.C.b
Packet Pg. 59 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
POLICY NUMBER: 2016-06219 commERciALGiENERAL LIABILITY
C ,
THIS ENbORSEMENT CHANGES THE, POLICY.. FLEASE. READ IT`CAREFULLY.
ADDIT.101NAL. INSURIE16 - DESIGNATED
PERSON OR OROMIZATION
This endorsement modifies insurance prpy, ided under the g:
COMMERCIAL GENERAL LIABILITY! . COVERAGE PART
SCHEDULE
Name Of" Itlo,nall Insured Person(s) Or Organization(s):
City of Gilroy, its officers, officials, agents, employees and vounteers.
Iri1am-iAtidn required ,to'complete this Sch6dulei. If not "shown above, "vv11I :b6.,sh0whinthe Declarations;.
A. Section lll!-. Who ls An Insured is amended 16
include as an additional insured the perso (s) at
otganizaition(s) shown r the Schedule,
with
in,
respect to liability for "bodilyy injure
dam
property
aW or "persona[ and , injury''
caused, . in.whole or in part, byyour acts or
omissions or the acts or omissions of those acting
on your behalf:
1. In the performance of your on 9 oing,operations;
or
2. In connection with your premises owned by or
rented to you.
However!
1. The Insurance afforded , to such. additional
insured only applies .toto the extent
I
permitted by
law, and
2. if coverage provided to the additional insured is
required by a contract or agreement,."
Insurance afforded to such additional'insured
will not be broaderthan that .which you-are
require&by the contract or agreernent:6,
provide, for such,additional insured..
B. With respect to, the.. insurance afforded to these
additional .
I
insureds, . se , . the following is- added to:
Section III — Limits Of: Insurance,;
If covera insured: isge,prpMqeot.o:the.a.dd,ito.nali,n. 1.
required 'oy'6.-contract-or agreement, t; themostwe.
will pay on'behattof.the.ad.dit
I
jowl Insured4s. the
amount of insurance:`
1. Required by thecontract, or agreernent;: or
2. Availableuricter the appli,cab[6 Urnks of-
Insurance shown In the Dedlaratons;
whichever is less.
This endorsement shall not increase the
applicable Limb of insurance shown ilri..the
Declarations,
CG 20 26,64 -1 3: 0 Insurance $ery . ices,,office. Inc.. 2012 P . age I of 1.
6.C.b
Packet Pg. 60 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
NMINONPROFITS
INSURANCE.
ALLIANCE OF CALIFORNIA
A Head jorinsurance. A Heart for Nonprofits.
POLICY NUMBER 2016 - 06219'
THIS ENDORSEMENT CHANGES THE POLICY..PLEASE READ: IT CAREFULLY.
ADDITIONAL. INSURED
PRIMARY AND NON - CONTRIBUTORY ENDORSEMENT
FOR PUBLIC ENTITIES
This endorsement modifies insurance provided under the following
COMMERCIAL GENERAL LIABILITY COVERAGE PART
A SECTION LI — WHO IS AN INSURED is amended to include; any public entity as an additional insured for wham
you are performing operations when you and'such person or organization have agreed in a written contract or
written agreement that:such public entity be added as an additional! nsured(s) on.your policy,
but only with respect to liability: for "bodily injury", "property damage "'or "personal and advertising injury'
caused, in whole or in. part, by
1. Your negligent acts or omissions; or,
2. The negligent acts or omissions of those acting on your behalf; in the performance of your ongoing
operations.
No such public entity is an additional insured for liability-arising out:.of the "products- completed'
operations hazard". or for liabilityarising, out of the sole negligence ofthat publlc.entity.
B. With: respect to the insurance afforded to these additional,insured(s), the following additional exclusions
apply. .
This insurance does, not apply. to "bodily injury" or °property damage" occurring after;`
1. All work, including materials, parts or equipment furnished in :connection with such work, on the
protect (other than service, maintenance or-repairs) to be performed by or on behalf of`the additional .
insured(s) at the Location of the covered operations has been completed; or
2. That portion of "your work" out of which'injury or damage arises.has been put.to its;intended use :by
any person or organization other than another contractor: or subcontractor engaged in performing
operations far a principal as a part -ofthe same project.
C. The following is added to SECTION III — LIMITS OF INSURANCE:
The limits, of insurance applicable to -the additional insureds) are those specified'in he written contract
between you and the additional insured(s), or the limits - available under this,!policy; whichever are ..less.
These limits are part:of and not in addition tothe limits of insurance under this policy.
D. With respect to the 'insurance provided -toth.e additional insurred(s), Condition 4. Other Insurance of
SECTION. — COMMERCIAL GENERAL. LIABILITY CONDITIONS Is replaced bythe following:
4. Other Insurance
a. Primary insurance
This insurance is primary if you have, agreed in a written contract or written agreement
N AGE61 12 16 Page 1 of 2
6.C.b
Packet Pg. 61 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
1) That this insurance be.. primary. If other insurance is also primary; 'we will share;with all that
other insurance as described in c. below; or
2) The coverage afforded by this insurance is primary and non-contributory with the additional
insured(s)' own insurance.
Paragraphs (1) and (2) do. not apply to other insurance to which;the additional insured(s) has
been added as an additional insured or to other insurance described in paragraph b. below
b. Excess Insurance
This insurance is excess over:.
1 Any of the other insurance, whetherprimary, excess, contingent or on any other basis:
a) That is Fire, Extended Coverage, Builder's Risk, Installation r Risk or similar coverage for
your work
b) That is fire, lightning, or explosion insurance for premises, rented to you or temporarily
occupied by you with ,permission of the owner;
c) That is insurance purchased by you to cover your liability as .a tenant for "property
damage" to premises temporarily occupied by you with permission: of -the; owner or
d) if the loss arises out of the maintenance or use of aircraft;' "autos" or watercraft.tn;the..
extent not subJecl:16 Exclusion g. of SECTION I;,- COVERAGE A.— BODILY INJURY
AND PROPERTY DAMAGE.
e) That is any other insurance available to an additional insureds) under this Endorsement
covering liability for damages arising out of the premises or operations, or products .
completed operations, for which the additional insured(s) has been added,as an:
additional insured: by that other insurance.
1) When this insurance is.excess, we will have no: duty under Coverages a or B to defend the
additional insured(s) against any "suit "' if any other insurer has a duty to defend the additional
insureds) against that "suit ". If no other insurer defends, .we will undertake to. do so, but we
will be entitled to the additional insured(s)' rights against;all those other insurers.
2) When this insurance is excess over other insurance; we>will- pay only our share of the amount
Of the loss, if any, hat exceeds.th'e sum of..
a) The total amount that all such other insurance would i ayfor the loss in the absence of
this insurance; and
b) 'The total of all deductible and,self- insured amounts under all that other insurance:.
3) We::will share the;remaining loss, if.any; with any other°insurance that is not described in this
Excess Insurance provision and was not bought specifically toapply in excess of the Limits
of'Insurance shown in the: Declarations of this Coverage: Part:
C. Methods.of;shartng
If ail of the other insurance available to the additional insured(s) permits contribution by equal
shares, we wiI follow this method also, Under this approach each insurer"contributes equal.
amounts until it has paid its.applicabte limit of insurance or none of the loss remains, whichever"
comes first.
If'anyotherthe other, insurance availab,leto the additional. insureds) dpes,not permit contribution:
by equal shares.; we will contribute by limits. Under this,method, each insurer's share is.based on.
the ratio of its applicable limit of insurance to the total'applicabl,e limits. of insurance* all insurers:.
NIAGE61 12 15 .,Page. :2 of 2
6.C.b
Packet Pg. 62 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
NONPROFITS
INSURANCE
ALLIANCE OF CALIFORNIA
A Head for Insurance. A Heart for Nonprofits.
NONPROFITS INSURANCE ALLIANCE
OF CALIFORNIA (NIAC)
www.insurancefomonprofits.org
BUSINESS AUTO COVERAGE PART DECLARATIONS
PRODUCER: Pacific Diversified Insurance Services, Inc.
15005 Concord Circle, Suite 110
Morgan Hill, CA 95037 -6417
Item One: NAME OF INSURED AND MAILING ADDRESS:
Gilroy Arts Alliance
7341 Monterey St.
Gilroy, CA 95020
POLICY NUMBER: 2016- 06219- NPO
RENEWAL OF NUMBER: 2015- 06219 -NPO
POLICY PERIOD: FROM 10124/2016 TO 10/24/2017
AT 12:01 A.M. STANDARD TIME AT YOUR MAILING ADDRESS SHOWN ABOVE
BUSINESS DESCRIPTION: Community group to support the arts
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS
POLICY, WE AGREE WITH YOU TO PROVIDE THE COVERAGE AS STATED IN THIS POLICY.
Item Two SCHEDULE OF COVERAGES AND COVERED AUTOS.
This policy provides only those coverages where a charge is shown in the premium column below. Each of these coverages will apply only to those
autos" shown as covered "autos°. "Autos" are shown as covered "autos° for a particular coverage by the entry of onei or more of the symbols from the
COVERED AUTOS Section of the Business Auto Coverage Form next to the name of the coverage.
FORMS AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE PART AND MADE PART OF THIS POLICY AT THE TIME OF ISSUANCE:
CA 00 01 1013, CA 00 29 12 88, CA 0143 05 07, CA 20 54 1013. CA 20 55 10 13, CA 23 84 1013, CA 2385 1013,
CA 99 23 1013, CA 99 33 1013, CA 99 3410 13,
THESE DECLARATIONS AND THE COMMON POLICY DECLARATIONS, IF APPLICABLE, TOGETHER WRH THE COMMON POLICY CONDITIONS,
COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY.
Notice: This risk pooling contract is issued by a pooling arrangement authorized by California Corporations Code Section
5005.1. The pooling arrangement Is not subject to all of the insurance laws of the State of California and is not subject to
regulation by the Insurance Commissioner, Insurance guaranty funds are not available to pay claims in the event the risk
tool becomes insolvent.
COUNTERSIGNED: 09/23/2016 BY
NIAC - AL -NPO AUTHORIZED REPRESENTATIVE ffi1R351
COVERED AUTOS LIMIT
COVERAGES ES'covr DAALroS = a$am THE MOST WE WILL PAY FOR ANY PREMIUM
aus"isss Auto C -srage F° shows ONE ACCIDENT OR LOSSwhicheutwerewwreamtos.
LIABILITY CSL N/A EXCLUDED N/A
HIRED APTO 8 1,000,000 CSL 50
NONOWNED AUTO 9 INCLUDED 200
AUTO MEDICAL PAYMENTS N/A EXCLUDED N/A
UNINSURED MOTORIST EXCLUDED N/A
UNINSURED MOTORIST -PO EXCLUDED N/A
COMPREHENSIVE o° m"°"°"
Adual
COVERAGE 8 bfuGM1mwad aub
cash value or aoon+bb..tlu:m e,
Incl. s u,mms. emrtwaostofrepairTbba-
whichever $500
COLLISION less
Inc].
0D COVERAGE
ninue
500 °,^ n
rNREE kYbF00tE0RtlR00
Haas.
VOWING AND LABOR N/A SNrA for each disablemertt of a prtvate passenger "auto" N/A
ESTIMATED TOTAL PREMIUM $250
FORMS AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE PART AND MADE PART OF THIS POLICY AT THE TIME OF ISSUANCE:
CA 00 01 1013, CA 00 29 12 88, CA 0143 05 07, CA 20 54 1013. CA 20 55 10 13, CA 23 84 1013, CA 2385 1013,
CA 99 23 1013, CA 99 33 1013, CA 99 3410 13,
THESE DECLARATIONS AND THE COMMON POLICY DECLARATIONS, IF APPLICABLE, TOGETHER WRH THE COMMON POLICY CONDITIONS,
COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY.
Notice: This risk pooling contract is issued by a pooling arrangement authorized by California Corporations Code Section
5005.1. The pooling arrangement Is not subject to all of the insurance laws of the State of California and is not subject to
regulation by the Insurance Commissioner, Insurance guaranty funds are not available to pay claims in the event the risk
tool becomes insolvent.
COUNTERSIGNED: 09/23/2016 BY
NIAC - AL -NPO AUTHORIZED REPRESENTATIVE ffi1R351
6.C.b
Packet Pg. 63 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
I CJI
NONPROFITS
INSURANCE
ALLIANCE OF CALIFORNIA
A Head for Insurance. A Heart for Nonprofits.
NONPROFITS INSURANCE ALLIANCE
OF CALIFORNIA (NIAC)
BUSINESS AUTO COVERAGE FORM
www.insurancefornonprofits.org
POLICY NUMBER: 2016 -06219 - NPO SCHEDULE BA
Page 1
NAME INSURED: Gilroy Arts Alliance
Item Three: SCHEDULE OF COVERED AUTOS YOU OWN
DESCRIPTION DEDUCTIBLES apply only if TOWING
coverage is provided as & LABOR
COVERED YEAR, MODEL, TRADE NAME, CLASS indicated below.
AUTO BODYTYPE, SERIAL NUMBER(S) VIN TERR. CODE
OTHER THAN Limit perNO.
COLLISION COLLISION Disablement
NO OWNED AUTOS N/A
PREMIUMS: COVERAGE IS PROVIDED ONLY IF A PREMIUM CHARGE IS INDICATED.
COVERED PHYSICAL DAMAGE TOWING ADDITIONAL INSURED/ LOSS PAYEE:
AUTO
NO.
NON-
OWNED HIRED
MED UM/
LIABILITY PAY UIM COLL. COMP.
AND
LABOR
Eacopt for towing, all physical damage lam is payable
mawapp— atth.bm.YofI.. S.b.ifa,.n mereatmayappaar
Sc ed,la A1.
NO /H 200
Hired PD
50
Hired Physical Damage Deductibles:
Comprehensive: $500 Collision: $500
Signature
NIA
za 09/23/2016
Date
6.C.b
Packet Pg. 64 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
zi ray Center, for the Art
A' t r
April 25, 2017
Maria DeLeon
City of Gilroy .
7351 Rosanna Street
Gilroy, CA 95020
Dear Maria:
On behalf of the Gilroy Arts Alliance Board, i am confirming our organization does not have a direct hire
employee. The Executive Director position, currently filled by Kevin Heath, is a contract staff (1099)
position.
By direction from Pacific Diversified, our insurance broker, our organization is not required to provide
workers comp coverage for this position or for our volr.rnteers.
if you have any other questions, please feel free to contact me at 408- 406 -5448.
Thank you.
Sincerely,
Alan Obata
Vice President, Gili'OV Arts Alliancel Gilroy Center for the arts
e Jiren/ ilyts.Aii:.r,..U., ln. o•i1.'r'
I Afqirrei'ey Strr,r
frhy, CA 91i(9'e'
444 8 42Wb '.)
Li C ^14'A r NA
6.C.b
Packet Pg. 65 Attachment: Arts Alliance - 2017 Lease Agreement (3165 : Gilroy Arts Alliance Lease Agreement Amendment)
City of Gilroy
STAFF REPORT
Agenda Item Title: Sports Park Ad Hoc Committee Appointments
Meeting Date: February 22, 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 Mayor Marie Blankley to the Economic Development Ad Hoc Committee
Related to Discussions with Sharks Sports & Entertainment LLC
BACKGROUND
On May 6, 2019 the City of Gilroy entered a one -year exclusivity period with Sharks
Sports & Entertainment, LLC. The purpose of the exclusivity period was for both parties
to conduct their due diligence and discuss/negotiate conceptual deal points for a non -
binding memorandum of understanding for a future agreement for the development,
management and operation of a proposed indoor ice arena to be operated by the
Sharks organization.
The purpose of an Ad Hoc Committee on this subject was to enable Council Members
to participate in an official capacity in preliminary negotiations with the Sharks Sports &
Entertainment LLC. The purpose would be to work with the Sharks Sports &
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Entertainment, LLC in composing a draft memorandum of understanding (MOU).
A draft MOU would include possible details on an operating and management
agreement in the event the City partners with the Sharks Sports & Entertainment LLC
on the development and operations of an indoor recreational facility in Gilroy. The
Committee would further the City’s efforts to complete the Sports Park.
ANALYSIS
Over the last few months, representatives from the San Jose Sharks have continually
requested meetings that include the Mayor of Gilroy. Due to requirements of the Brown
Act and the already established ad hoc committee, this has been both legally and
logistically difficult. Due to increasing time commitment challenges, Councilmember
Fred Tovar has agreed to forego his position on this ad hoc committee.
At this time, it is requested that Mayor Marie Blankley replace Councilmember Fred
Tovar joining Councilmembers Bracco and Marques as the three ad hoc committee
members.
ALTERNATIVES
Council could not appoint Mayor Blankley to the ad hoc committee.
FISCAL IMPACT/FUNDING SOURCE
None.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Contract to Balch Petroleum Contractors & Builders, Inc.
for the Fuel Station Secondary Containment Components Repair
Project (No. 21-PW -264), and approve a project expenditure of
$182,875.
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Karl Bjarke
Prepared By: Karl Bjarke
Sara Soto
Strategic Plan Goals
Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
Workforce Stability ☐ Public Engagement
RECOMMENDATION
Award a contract to Balch Petroleum Contractors & Builders, Inc. in the amount of
$166,250 with an additional project contingency of $16,625 (10%) for a total project cost
of $182,875 for the construction of the Fuel Station Secondary Containment
Components Repair, Project No. 21-PW-264, and authorize the City Administrator to
execute the contract and associated documents.
EXECUTIVE SUMMARY
The Fuel Station Secondary Containment Components Repair Project (Project) consists
of the removal, disposal, and replacement of two existing suction system fuel
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dispensers and all associated equipment, fittings and accessories, including
replacement of concrete island and slab, and installation of a new accessible card
reader unit at the City Corporation Yard. The Project will be funded from the Fleet Fund,
Fund 600.
The Public Works Department advertised the Project in the San Jose Mercury News
and on the City’s website on January 11, 2021 and received two bids. After a successful
bid opening, staff recommends awarding a contract to the lowest bidder, Balch
Petroleum Contractors and Builders, Inc., for an amount of $166,250. In addition, staff
recommends approval of an additional $16,625 for contingency purposes which can
only be expended with City-approved change orders. With the base contract amount
and contingency, the Council is requested to approve a maximum of $182,875 for the
Project.
BACKGROUND
The City of Gilroy Corporation Yard has utilized and maintained its Underground
Storage Tank (UST) system and dispensers to support the fueling needs of City
vehicles for the past 25 years. The purpose of the secondary containment is to cap ture
fuel or fumes if the primary conveyance system develops a leak. In order for the
secondary containment of the UST system to remain in compliance with the California
State Water Resources Control Board’s (Board) government-owned and/or operated
UST Program, the City is required to test and inspect the containment mechanism every
3 years. In 2017, the containment failed a pressure test and a Notice of Violation was
issued by the local Certified Unified Program Agencies (Gilroy CUPA). Then in early
2020, the Board performed another inspection where the State inspector observed that
the secondary containment repair had not been completed which led them to issue a
separate Notice of Violation. The Board will impose significant enforcement penalties
against the City if the UST remains out of compliance.
One of the most important reasons why the City of Gilroy has its own fueling station and
UST system at the Corporation Yard is that, in the event of an incident or emergency,
the City can still provide consistent and safe access to a fueling source for its
maintenance and emergency staff. The City’s fueling station has a back-up electrical
generator which is important for Police, Fire, and Public Works vehicles if there are
power disruptions throughout the cit y. Without a dedicated fueling station, maintenance
and emergency staff would have to compete for fuel at local gas stations with the larger
Gilroy community. This could significantly delay their ability to respond to incidents while
waiting in potentially long lines at retail dispenser locations. In addition, a dedicated
fueling station allows night staff, such as first responders and police officers, to fuel their
vehicles safely.
The fueling station at the Corporation Yard meets these necessities as it is exclusive to
the City. Staff will have access to fuel without competition for fuel resources with the
public at local retail dispensers where it can become sparse or unavailable if there is a
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significant community need, and gas stations run out of supplies and are unable to refill
their tanks. To avoid this type of situation, the City requires that the Corporation Yard’s
fuel tank is maintained at a minimum level of 40-50% capacity to ensure there is daily
and reliable supply of fuel in the event of an emergency.
Consequently, there is a need to expedite the fuel station repairs. Without the
necessary replacements, the fuel station will continue to fail future testing and
inspections, and it will remain out of compliance with the Board’s regulations. City staff
has been in regular contact with the Board to ensure them of the progress to make the
repairs. If the repairs were to be delayed, the City could risk the issuance of a second
Notice of Violation and enforcement penalties of $500 to $5,000 per tank, per day, until
the violations have been corrected.
ANALYSIS
On January 11, 2021, staff advertised the Project in the San Jose Mercury News and on
the City’s website with a bid opening date of February 4, 2021. One addendum was
issued for this bid on January 27, 2021. Staff received two bids. A summary of the bid
results is as follows:
Rank Company Total Bid Amount
1 Balch Petroleum Contractors &
Builders, Inc. $166,250
2 GEMS Environmental
Management Services, Inc. $298,062
The lowest responsive bidder is Balch Petroleum Contractors & Builders, Inc. with a
total bid of $166,250. The Engineer’s Estimate was $103,000. The lowest bid is 61.4%
higher than the engineer’s estimate. This difference has been attributed to a high
demand on the industry due to a shortage of available specialized staff as many other
agencies are also contracting companies to update their UST systems.
Staff recommends City Council approval of the award at $166,250. Staff also
recommends a contingency amount of $16,625 be approved to cover the cost of any
unexpected issues that arise during project construction.
Given the lead times for delivery of the equipment necessary for the project, such as the
new dispensers, Staff anticipates construction of the Project to begin in April 2021.
Current equipment lead times are four to six weeks.
ALTERNATIVES
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The alternative to the staff recommendation is to r eject all bids. Staff does not
recommend this option as it will cause a delay in the project to correct violations issued
by the Board, and the City could incur additional costs due to rebidding.
FISCAL IMPACT/FUNDING SOURCE
The recommended award to Balch Petroleum Contractors & Builders, Inc. for the
Project is $166,250. Staff recommends including a 10% contingency of $16,625 for a
total construction allocation of $182,875. The Project will be funded from the Fleet Fund,
Fund 600. The contingency amount is intended to account for unforeseen conditions or
necessary field changes in the scope of work during construction. The contingency will
only be utilized through a city staff action to increase or modify the project scope
through a change order.
PUBLIC OUTREACH
Public outreach is not needed for the project as all construction work is to occur onsite
at the City Corporation Yard fuel station and will not impact the public.
NEXT STEPS
Upon Council’s approval, the contract will be executed, and staff will work with the
contractor to order the necessary equipment, and develop a final construction schedule
to begin construction in April 2021.
Attachments:
1. 21-PW -264 Contract Agreement - Balch Petroleum Contractors & Builders, Inc
2. 21-PW -264 FINAL PLANS
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21February22nd
& Builders, Inc.
Balch Petroleum Contractors
7.A.a
Packet Pg. 72 Attachment: 21-PW-264 Contract Agreement - Balch Petroleum Contractors & Builders, Inc (3176 : Award of Contract for Fuel Station
7.A.a
Packet Pg. 73 Attachment: 21-PW-264 Contract Agreement - Balch Petroleum Contractors & Builders, Inc (3176 : Award of Contract for Fuel Station
7.A.a
Packet Pg. 74 Attachment: 21-PW-264 Contract Agreement - Balch Petroleum Contractors & Builders, Inc (3176 : Award of Contract for Fuel Station
February 22 2021
7.A.a
Packet Pg. 75 Attachment: 21-PW-264 Contract Agreement - Balch Petroleum Contractors & Builders, Inc (3176 : Award of Contract for Fuel Station
JTJTHIGHWAY 101OLD
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TEAST STREETEXISTINGADMIN. BLDG.EXISTINGMAINTENANCESHOP7TH STREET
XXXXXXXX X XXXXXXXXXXXXXXXX X X X X X X X XXXXXXXXXXXX X X X X X X XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXEXISTINGADMIN. BLDG.SYMBOL LEGENDXXJTSITE DATA:SHEET INDEX:CITY OF GILROYAPPLICABLE CODESNGRAPHIC SCALEVICINITY MAPNSITEWORK AREANOTE: AERIAL PHOTOS SHOWNFOR REFERENCE ONLY DRAWN BY: DATE ScaleFUEL STATION SECONDARYCONTAINMENT COMPONENTS REPAIRCITY OF GILROY CORPORATION YARD613 OLD GILROY ROADGILROY, CA 95020-6233 Drawing No. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATENo.DATE BYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469CSCOVER SHEETAS NOTED- - - -- - - -- - - -- - - -- - - -- - - -21-PW-264FUEL STATION SECONDARY CONTAINMENT COMPONENTS REPAIRPROJECT NO. 21-PW-264CITY OF GILROY CORPORATION YARD613 OLD GILROY STREETGILROY, CA 95020-6233ACCEPTANCE OF PLANSCITY ENGINEER: ____________________ DATE: ______GARY HEAPCITY ENGINEERCITY OF GILROYAPPROVED:100% PLAN REVIEW RESPONSE PLAN SET1/6/202122CITY ENGINEER: __ GARY HEAPCITY ENGINEERCITY OF GILROYAPPROVED:7.A.bPacket Pg. 76Attachment: 21-PW-264 FINAL PLANS (3176 : Award of Contract for Fuel Station Secondary Containment Components Repair Project)
JTJTJTJTJTJTJTJTJTJTJTMAINTENANCESHOPXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
ADMIN. BLDG.N DRAWN BY: DATE ScaleFUEL STATION SECONDARYCONTAINMENT COMPONENTS REPAIRCITY OF GILROY CORPORATION YARD613 OLD GILROY ROADGILROY, CA 95020-6233 Drawing No. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATENo.DATE BYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469FS-1WORK AREASITE PLANAS NOTED- - - -- - - -- - - -- - - -- - - -- - - -CONSTRUCTION KEY NOTES ”””GRAPHIC SCALEEROSION & SEDIMENT CONTROL NOTES21-PW-26411/04/2011/04/2011/05/20OO00SIGENERAL NOTES100% PLAN REVIEW RESPONSE PLAN SETSARA SOTO, PROJECT ENGINEERFARANAK MAHDAVI, SENIOR CIVIL ENGINEERGARY HEAP, CITY ENGINEERDA 7.A.bPacket Pg. 77Attachment: 21-PW-264 FINAL PLANS (3176 : Award of Contract for Fuel Station Secondary Containment Components Repair Project)
ENLARGED FUEL ISLAND WORK PLAN”CONSTRUCTION KEY NOTESXX1234567891011123667799812111010151512K UNLEADED12K DIESELN
UNLEADEDDIESEL5CONSTRUCTION KEY NOTES (CONT.)XX141516121213141616LEGEND:4171713ENLARGED FUEL ISLAND & CONCRETE SLAB PLANCONSTRUCTION KEY NOTES12K UNLEADED12K DIESELN
UNLEADEDDIESELLEGEND:XX13243434221 DRAWN BY: DATE ScaleFUEL STATION SECONDARYCONTAINMENT COMPONENTS REPAIRCITY OF GILROY CORPORATION YARD613 OLD GILROY ROADGILROY, CA 95020-6233 Drawing No. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATENo.DATE BYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469FS-2UST MODIFICATIONPLANAS NOTED- - - -- - - -- - - -- - - -- - - -- - - -21-PW-26411/04/2011/04/2011/05/20OO00SI100% PLAN REVIEW RESPONSE PLAN SETSARA SOTO, PROJECT ENGINEERFARANAK MAHDAVI, SENIOR CIVIL ENGINEERGARY HEAP, CITY ENGINEERDA 7.A.bPacket Pg. 78Attachment: 21-PW-264 FINAL PLANS (3176 : Award of Contract for Fuel Station Secondary Containment Components Repair Project)
UNLEADED
DIESEL
VAPOR UNLEADEDDIESELUNLEADED DISPENSERDIESEL DISPENSERTYPICAL DISPENSERSUMP SECTIONFUEL DISPENSER KEY NOTES:XX12345691011121227731514881475265261841322129315115173212019181616789101112131415161718192021222324252627661962766131841962828282828272423FUEL DISPENSER KEY NOTES (CONT.):XX28252529292928DIESEL PIPING SUMP PLAN & SECTIONUNLEADED PIPING SUMP PLAN & SECTIONXXTANK SUMP KEY NOTESNN123456789101112131415161718192021222324255182516144710111391917152120823222421423222120131210111419315259
525161441811721232220171519248182142322212013121011141931525991310624 DRAWN BY: DATE ScaleFUEL STATION SECONDARYCONTAINMENT COMPONENTS REPAIRCITY OF GILROY CORPORATION YARD613 OLD GILROY ROADGILROY, CA 95020-6233 Drawing No. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATENo.DATE BYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469FS-3UST & DISPENSERDETAILSAS NOTED- - - -- - - -- - - -- - - -- - - -- - - -21-PW-26411/04/2011/04/2011/05/20OO00SI100% PLAN REVIEW RESPONSE PLAN SETSARA SOTO, PROJECT ENGINEERFARANAK MAHDAVI, SENIOR CIVIL ENGINEERGARY HEAP, CITY ENGINEERDA 7.A.bPacket Pg. 79Attachment: 21-PW-264 FINAL PLANS (3176 : Award of Contract for Fuel Station Secondary Containment Components Repair Project)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of an On-Call Consultant Selection List for Planning
Services, Environmental Reviews and Historical Evaluations, 21-
RFQ-CDD-330
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Community Development Department
Submitted By: Karen Garner
Prepared By: Karen Garner
Karen Garner
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Approve an on-call consultant selection list for planning services, environmental reviews
and historical evaluations, 21-RFQ-CDD-330.
BACKGROUND
The Planning Division, a division of the Community Development Department, relies on
consultants to provide specialized expertise in the review and analysis of certain
projects. In order to implement projects in a timely manner, meet requirements set by
state and local laws and regulations, and meet customer service objectives, the
department hires consultants to assist with specific functions and responsibilities.
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A Request for Qualifications (RFQ) was issued on November 13, 2020 seeking
consultants for each of the three categories; On-call Planning Services, On-call
Environmental Reviews, and On-call Historical Evaluations. Thirty-one “Statement of
Qualifications” were received from twenty-one firms among the three categories. Those
firms are as follows:
4Leaf, Inc.
CSG Consultants, Inc.
EMC Planning Group, Inc.
Good City Company
Harris and Associates, Inc.
Michael Baker International, Inc.
M-Group
Precision Civil Engineers, Inc.
SWCA Environmental Consultants
Albion
David J. Powers and Associates, Inc.
DUDEK
FirstCarbon Solutions
Impact Sciences, Inc.
Kimley-Horn & Associates, Inc.
Rincon Consultants, Inc.
Stantec Consulting Services Inc.
Applied Earthworks, Inc.
Architectural Resources Group
Garavaglia Architecture, Inc.
Page & Turnbull
Having multiple firms gives the City the opportunity to select a consultant that is best
suited to a specific project, and to provide the efficiency of having multiple consultants
working on multiple projects simultaneously, if needed. The prequalification process
streamlines the consultant selection process for procuring the best consultant for a
project at a competitive price. These consultants may be used for private development
projects and entitlement requests for which Planning is processing an application and
for city initiated projects.
ANALYSIS
A committee, consisting of both Senior Planners, the Community Development Director,
and the City Engineer was formed to review, score, and qualify each firm based on the ir
Statement of Qualifications. The Committee members have the requisite k nowledge and
experience in the scope of work involved and the type and quality of professional firms
7.B
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needed to perform the work. Firms were reviewed and qualified based on the following
criteria:
Consultant’s qualifications and experience
Quality of Writing Samples
Understanding of the Scope of Services
Individual(s) qualifications and experience
Overall quality of the response
Billing Structure
The following consultants were selected as the best qualified for the on -call lists of the
Planning Division for future applicant and city projects (in alphabetical order
by category):
Planning Services
4LEAF, Inc.
CSG Consultants, Inc.
EMC Planning Group, Inc.
Good City Company
M-Group
Michael Baker International, Inc.
Environmental Reviews
CSG Consultants, Inc.
David J Powers & Associates, Inc.
DUDEK
EMC Planning Group, Inc.
FirstCarbon Solutions
Harris & Associates, Inc.
Kimley-Horn & Associates, Inc.
M-Group
Michael Baker International, Inc.
Rincon Consultants, Inc
Stantec Consulting Services Inc.
SWCA Environmental Consultants
Historical Evaluations
Applied EarthWorks
Architectural Resources Group
DUDEK
Garavaglia Architecture, Inc.
M-Group
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Page & Turnbull
Rincon Consultants, Inc.
These firms were selected based on their qualifications and ability, which p rovides the
City the opportunity to select a consultant that is best suited to provide services for
applicant based and city based planning projects for an initial period from March 1 st,
2021 to June 30th, 2024, with up to two one-year extensions.
It should be noted that the approval of this list of consultants does not assign any work
to these firms or bind the City to any contracts, but rather only pre -qualifies them to
provide proposals to the City when requested. When the City requires the services of
one of the approved consultants, their services will be procured in conjunction with the
requirements set forth in the City’s Purchasing Policy which was updated by Council on
March 2nd, 2020.
ALTERNATIVES
The City Council can deny staff’s recommendation and not approve these lists of on-call
consultants. Staff does not recommend this alternative because it would limit staff’s
ability to deliver projects in a timely and efficient manner.
FISCAL IMPACT/FUNDING SOURCE
There are no fiscal impacts from the City Council’s action to approve the list of
consultants for the three categories. These consultants will be used to procure future
services on the behalf of an applicant project or for a city project. Procurement of
services under these lists will be conducted in adherence to the City Purchasing Policy
approved by Council on March 2, 2020.
Funds to pay for consultant needs related to private development initiated projects are
paid for by the applicant and deposited to the City in a pass-through account. The City
also receives a small administrative fee. When there is a need to engage a consultant
for a City initiated project, a contract for professional services will be entered into with
that firm for the serv ices desired and a funding source will be identified at the time of
contract approval. In most cases, funding for such services are included as part of the
biennial budgeting process.
NEXT STEPS
Upon approval by Council, the lists will go into effect for its initial period of March 1 st,
2021 until June 30th, 2024.
Attachments:
1. No. 21-RFQ-CDD-330 - On Call Planning Services
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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 Qualifications
ON-CALL PLANNING SERVICES,
ENVIRONMENTAL REVIEWS, &
HISTORICAL EVALUATIONS
No. 21-RFQ-CDD-330
Proposals Due by: 3:00 pm, Thursday, December 10th, 2020
7.B.a
Packet Pg. 84 Attachment: No. 21-RFQ-CDD-330 - On Call Planning Services (3128 : Consultant Selection for On-Call Planning Services, Environmental
Request for Qualifications
No. 21-RFQ-CDD-330
Notice is hereby given that ELECTRONIC Requests for Qualifications will be received at the City of
Gilroy, for On-Call Planning Services, Environmental Reviews and Historical Evaluations , Project No.
21-RFQ-CDD-330 as described in the attached Request for Qualifications. Please note that City Hall is
closed to the public due to the ongoing COVID-19 pandemic. RFQs will be accepted by email to
carina.baksa@cityofgilroy.org until 3:00 pm, Thursday, December 10th, 2020. RFQs 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. RFQs should be
submitted in a complete, single electronic file PER CATEGORY to the email specified in this notice. An
evaluation team will review submittals and select up to five of the best qualified firms for each category
(planning, environmental, historical) based on the selection criteria and process outlined in the RFQ. The
selected consultants will remain on the pre-qualified on-call list for three years, with up to two, one-year
extensions possible.
A free electronic copy of the RFQ 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-RFQ-CDD-330
On-Call Planning Services, Environmental Reviews, & Historical Evaluations
Table of Contents
Introduction ........................................................................................................................................... 1
Project Description ................................................................................................................................ 1
Issuing Office ......................................................................................................................................... 2
Anticipated RFQ Schedule ...................................................................................................................... 2
Submission Date and Location ............................................................................................................... 2
Protests ................................................................................................................................................. 3
Rejection of Proposals ........................................................................................................................... 3
Modification / Withdrawal .................................................................................................................... 4
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
Planning Services ................................................................................................................................... 7
Environmental Reviews ......................................................................................................................... 7
Historical Evaluations ............................................................................................................................. 8
ATTACHMENT A - SAMPLE AGREEMENT FOR SERVICES CONTRACT .............................. 10
ARTICLE 1. TERM OF AGREEMENT ........................................................................................... 10
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS ................................................................ 10
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT ............................................. 10
A. Specific Services ............................................................................................................................... 10
B. Method of Performing Services ........................................................................................................ 11
C. Employment of Assistants ................................................................................................................ 11
D. Place of Work ................................................................................................................................... 11
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ARTICLE 4. COMPENSATION ....................................................................................................... 11
A. Consideration .................................................................................................................................... 11
B. Invoices ............................................................................................................................................. 11
C. Payment............................................................................................................................................. 11
D. Expenses ........................................................................................................................................... 12
ARTICLE 5. OBLIGATIONS OF CONSULTANT ........................................................................... 12
A. Tools and Instrumentalities ............................................................................................................... 12
B. Workers’ Compensation ................................................................................................................... 12
C. Indemnification of Liability, Duty to Defend ................................................................................... 12
D. Insurance ........................................................................................................................................... 13
E. Assignment ....................................................................................................................................... 13
F. State and Federal Taxes .................................................................................................................... 13
ARTICLE 6. OBLIGATIONS OF CITY ........................................................................................... 14
A. Cooperation of City ........................................................................................................................... 14
B. Assignment ....................................................................................................................................... 14
ARTICLE 7. TERMINATION OF AGREEMENT ........................................................................... 14
A. Sale of Consultant’s Business/ Death of Consultant. ........................................................................ 14
B. Termination by City for Default of Consultant ................................................................................. 14
C. Termination for Failure to Make Agreed-Upon Payments ............................................................... 15
D. Transition after Termination ............................................................................................................. 15
ARTICLE 8. GENERAL PROVISIONS ............................................................................................ 15
A. Amendment & Modification ............................................................................................................. 15
B. Americans with Disabilities Act of 1990 .......................................................................................... 15
C. Attorneys’ Fees ................................................................................................................................. 16
D. Captions ............................................................................................................................................ 16
E. Compliance with Laws ..................................................................................................................... 16
F. Conflict of Interest ............................................................................................................................ 16
G. Entire Agreement .............................................................................................................................. 16
H. Governing Law and Venue ............................................................................................................... 17
I. Notices .............................................................................................................................................. 17
J. Partial Invalidity ................................................................................................................................ 17
K. Time of the Essence .......................................................................................................................... 17
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L. Waiver ............................................................................................................................................... 17
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Introduction
The City of Gilroy (City) Community Development Department is seeking proposals from
qualified consultants (Consultant) for an On-Call Planning Services, Environmental
Reviews, and Historical Evaluations.
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
The City of Gilroy’s Planning Division is responsible for implementation of the City’s General Plan, Zoning
Ordinance, adopted specific plans and other associated ordinances. Typical activities include, but are not
limited to:
Respond to public inquiries related to land-use and property development regulations.
Provide solution-oriented customer service to support economic development opportunities
whenever possible.
Review land-use entitlement applications (e.g. tentative map, conditional use permit,
annexation, general plan amendment, architectural & site plans) for conformance with adopted
policies and regulations.
Administer the California Environmental Quality Act (CEQA) for environmental review related to
planning and development proposals.
Update and maintain the General Plan and Zoning Ordinance.
Provide staff support for Historic Heritage Committee and Planning Commission.
To help conduct these services, the division occasionally relies on the professional assistance and
expertise of consultants to provide vital documents and analysis for both applicant-based projects and
city-based projects. Over the previous five years, the division has relied on a handful of selected and
approved consultants to help conduct that work. With the current slate of consultants expiring, the City
seeks to conduct another search for qualified firms to help provide professional services to the Planning
Division over the new few years.
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The Planning Division seeks to receive qualifications from consultants to be placed on on-call
qualification lists in three categories; Planning Services, Environmental Reviews, and Historical
Evaluations. The scopes of work for each category are detailed in page 12 of this document. Upon
approval by City Council, the consultants would remain on these lists for the period of February 1, 2021
to December 31, 2023, with the option of extending their qualifications for 2, one-year periods, upon
City Council approval. During their time on these lists, City staff may solicit all consultants per category
to request a proposal for a City or Applicant based project, based on the scope of the project. On
occasions where the scope of services for a specific project will total over 100K, City staff will issue a
Request for Proposals for that specific project to consultants within a specific category, based on the
scope of the work. Upon consideration and scoring of the proposals provided, staff will take their
highest rated proposal to Council for staff approval. Upon consideration and approval of the
consultant’s proposal for any sized project, staff will enter into a standard agreement as shown in
Attachment A of this document to conduct the scope of services for the project proposed by the
consultant.
Issuing Office
The Finance Department is the Issuing Office for this Request for Proposal (RFQ) 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 Kraig Tambornini
Purchasing Coordinator Senior Planner
7351 Rosanna Street 7351 Rosanna Street
Gilroy, CA 95020 Gilroy, CA 95020
carina.baksa@ci.gilroy.ca.us kraig.tambornini@ci.gilroy.ca.us
Anticipated RFQ Schedule
The Community Development Department anticipates the following general timeline for
this RFQ and the schedule may change as necessary.
Selection Process Actions Target Date
RFQ distributed to prospective Consultants and Advertised Friday, November 13th, 2020
Deadline to submit RFQ questions Tuesday, December 1st, 2020 at 4:00 PM
Questions posted on the City’s website Wednesday, December 2nd, 2020
RFQ submissions due to City of Gilroy (Final) Thursday, December 10th, 2020 at 4:00 PM
Interviews (If Necessary) December 16th to December 18th, 2020
City Council staff report posted on website Wednesday, January 13th, 2021
City Council Meeting Monday, January 18th, 2021
Submission Date and Location
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Each responding Consultant must provide one electronic copy for each category they
are requesting to be included in, collectively referred to as a “packet”. For example, if
the Consultant wishes to submit qualifications for the “Planning Services” and
“Environmental Review” categories, they must submit two separate packets of the
required documents, one for each category. The file name for each packet shall be
marked with the RFQ number, the consultant’s name, and the category their packet
pertains to (On-Call Planning Services, Environmental Reviews, or Historical Evaluations)
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 RFQ 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/7025/Purchasing-Policy-and-
Protest-Procedures.
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.
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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
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 with eight (8) 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 letter expressing the Consultant’s interest in being considered for
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providing these services. Include a statement regarding the consultant’s availability to dedicate
time, personnel, and resources to this effort. The letter of interest must include a commitment
to the availability of the Consultants on an on-call basis throughout the term of the list.
Maximum one page.
2. Relevant Experience: List up to three (3) projects completed by the firm relevant to the City of
Gilroy and scope of services requested, and provide the following information for each project:
a) outline the specific scope of services provided and describe how your firm met or exceeded
expectations; b) identify the role of the firm (e.g., work was performed exclusively by the firm or
a joint venture); c) highlight any key team members directly involved in the project who would
be part of the City of Gilroy on-call team; d) specify if the project was completed within budget
and schedule (if not completed within budget and schedule provide a very brief statement
explaining why); and e) provide the client’s contact information including name, title, and phone
number as a reference. Maximum six pages.
3. Writing Samples: Provide up to three pages of a technical report prepared by a key team
member(s) proposed for the City of Gilroy on-call team; identify the author(s) name on the
writing sample. For on-call Planning Services, provide an excerpt from a staff report. For
Environmental Reviews, provide an excerpt from an environmental document. For Historical
Evaluations, provide an excerpt from a historical evaluation report. The sample(s) should be
reflective of the typical writing style and document formatting used by your firm. Maximum
three pages.
4. Technical Analyses (for Environmental submissions only): Identify if your firm has in-house staff
to prepare technical studies for the various CEQA topic areas including but not limited to traffic,
air quality/greenhouse gas, biological resources, cultural resources, and noise. If in-house staff is
not available, please identify the team of sub-consultants you would assemble to perform
specialized analyses that cannot be completed by in-house staff. Maximum two pages.
5. Key Team Member Summary: Identify key team members of the firm who would be directly
involved with the Gilroy on-call services. Also include sub-consultant team members. For each
team member, summarize the typical role and responsibilities of the individual, and list
experience relative to the typical role(s). Maximum six pages.
6. Conflict of Interest Statement: The proposers shall disclose any financial, business, or other
relationships with the City that may have an impact upon the outcome of services provided
under these lists. Maximum one page.
7. Comments on or Requested Changes to Contract: The City’s standard consultant services
contract is included as Attachment A to this Request for Qualifications. The proposer shall
identify any objections to and/or request changes to the standard contract language in this
section. Maximum one page.
8. Billing Structure: Provide an outline of the hourly rate schedule for the key team members, and
include associated administrative/ technical support fee structure (e.g., administrative fee,
mileage, travel time, reproduction costs). Maximum two pages.
Proposal Evaluation Criteria and Scoring
The criteria listed below will be used to evaluate the Consultants.
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?
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Consultant’s quality of writing samples
Does the writing samples in the consultant’s proposal demonstrate a quality of
workmanship and analysis that gives confidence of a high value and excellence
of service delivery for the City?
Consultant’s understanding of the Scope of Services
Does the proposal reflect a clear understanding of the proposed Scope of
Services?
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 RFQ
Were the answers clear, concise, and well formulated? Does the proposal
document make sense, is it structured well, and address all matters fully?
Consultant’s billing structure
Is the proposed billing structure 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 100 points, as summarized below:
CRITERIA POINTS
Consultant’s qualifications and experience 20
Quality of Writing Samples 20
Understanding of the Scope of Services 25
Individual(s) qualifications and experience 20
Overall quality of the response 10
Billing Structure 5
TOTAL 100
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SCOPE OF WORK
Planning Services
In general, the successful individuals and/or firms will be expected to provide planning services for all
types of projects requesting entitlements, including but not limited to new residential subdivisions; new
and redeveloped residential, commercial, office, and industrial properties; requests for General Plan and
zoning amendments; requests for boundary (e.g. urban service area) adjustments; use permits;
tentative maps; and site and architectural design review. For the purposes of zoning application review
and processing, the on-call Consultant will function as an extension of city staff; and therefore, may be
expected to serve as the project lead for assigned zoning and land use projects and be the main point of
contact for city staff and the public.
The services that the on-call Consultant would provide include, but are not limited to the following:
1. Accurately analyze projects for compliance with the City’s General Plan, Municipal Code,
applicable specific plans, Santa Clara Valley Habitat Plan. City policies, the Subdivision Map Act,
Secretary of the Interior Standards for the Treatment of Historic Properties, and the California
Environmental Quality Act;
2. Write clear and concise letters, staff reports, resolutions, ordinances, and conditions of
approval, conforming to City template formats;
3. Work with a CEQA consultant from the City’s on-call list or prepare Initial Studies and CEQA
documents, at the City’s discretion;
4. Attend Planning Commission and/or City Council meetings and give presentations when
necessary;
5. Review projects and provide comments within timelines specified by the Permit Streamlining
Act, Housing Accountability Act, Subdivision Map Act and the City (shorter timelines may be
required for certain projects);
6. Conduct site visits as necessary;
7. Maintain concise and accurate administrative record for the assigned project. The project
administrative record will be maintained in City files and records maintained by the consultant
shall be returned to the City upon request, or at project completion;
8. Be available during regular business hours to answer questions from city staff, outside agencies,
and the public; and
9. Provide brief weekly updates to Gilroy Planning staff on the status of the application processing
as requested.
Prior to assigning a specific project, the City will provide an introductory overview of the project and the
scope of services to be provided. All available drawings and other applicable technical and property
information will be available to the Consultant.
Environmental Reviews
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In general, the successful individuals and/or firms will be expected to provide comprehensive
environmental services in accordance with CEQA. The Consultant’s ability to complete the
environmental review in a timely manner is essential. The environmental firm must have staffing
resources available (either in-house or assembled team) to complete multiple environmental reviews in
an expeditious manner.
The services that the on-call Consultant would provide include, but are not limited to the following:
1. Write accurate, clear, concise and legally defensible environmental documents;
2. Work with a consultant staff planner if applicable;
3. Attend Planning Commission and/or City Council meetings and give presentations when
necessary;
4. Complete all tasks associated with preparation of environmental documents in compliance with
CEQA including to prepare, circulate and file/record environmental documents and notices in
accordance with CEQA and within timelines specified by CEQA and the City (shorter timelines
may be required for certain projects);
5. Peer review studies or CEQA documents prepared by others;
6. Prepare separate environmental reports as needed;
7. Conduct site visits;
8. Maintain concise and accurate administrative record for the assigned project. A copy of the
administrative record shall be maintained at the City and the consultant’s original copy of the
project administrative record shall be provided to the City upon request, or at project
completion;
9. Be available during regular business hours to answer questions from city staff, outside agencies,
and the public; and
10. Provide brief weekly updates to Gilroy Planning staff on the status of the application processing
as requested.
Prior to assigning a specific project, the City will provide an introductory overview of the project and the
scope of services to be provided. All available drawings and other applicable technical and property
information will be available to the Consultant.
Historical Evaluations
The City of Gilroy maintains a Historic Preservation Inventory of historic resources that are spread
throughout the City. General Plan policies encourage the preservation of these historic and
architecturally significant buildings, as well as archaeological sites and other landmarks that represent
important elements of Gilroy’s past. The adaptive reuse of historic buildings is also promoted, especially
in the Downtown Historic District, to preserve the buildings’ historic character while encouraging
development of an economically vital Downtown. As the City receives requests to alter, reuse or
remove historic resources, the City requires the services of a qualified Historical Consultant to prepare a
historical evaluation, review proposals for compliance with the Secretary of Interior Standards, and
complete the appropriate CEQA review. In general, the successful individuals and/or firms will be
expected to provide historical evaluation services in accordance with the criteria and professional
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standards established by CEQA and the City of Gilroy. The Consultant’s ability to complete the historical
evaluations in a timely manner is essential.
The services that the on-call Consultant would provide include, but are not limited to the following:
1. Accurately analyze projects for compliance with CEQA, the Secretary of the Interior’s Standards,
and applicable City policies, including but not limited to the Downtown Specific Plan and the
Historic Site and Neighborhood Combining District Ordinance;
2. Conduct thorough online and literature research of the resource including but not limited to the
Gilroy Museum, Northwest Information Center (NWIC) of the California Historical Information
Systems (CHRIS), University of California, California State Library, California Digital Newspaper
Collection, and newspapers.com. Consultant shall also check to see if the property is listed in the
National Register of Historic Places, the California Register of Historical Resources and any other
applicable federal, state, or regional listing;
3. Write accurate, clear, and concise historical evaluations to include the following minimum
components:
a. Documentation of the resource’s historic value;
b. Architectural description of the resource, including information describing if the
resource has been altered or moved; and
c. Photographs of the resource in digital format.
4. Identify potential significant adverse impacts to significant historic resources, and provide
recommended mitigation to reduce the level of impact to less than significant;
5. Provide material, design, architectural style, and other recommendations to conform to the
Secretary of the Interior’s Standards (“Standards”) if the proposed project does not comply with
the Standards, as well as recommendations on how projects may improve compatibility with
nearby historic structures or districts;
6. Attend meetings with city staff and applicants, when necessary, to provide specific direction
regarding proposed projects’ conformance with the “Standards” and their compatibility with
nearby historic structures or districts;
7. Prepare Department of Parks and Recreation forms (DPR 523 series of forms) as needed;
8. Attend Planning Commission and/or City Council meetings and give presentations when
necessary;
9. Conduct site visits as necessary;
10. Maintain concise and accurate administrative record for the assigned project. The project
administrative record will be returned to the City upon request, or at project completion;
11. Be available during regular business hours to answer questions from city staff; and
12. Provide brief weekly updates to Gilroy Planning staff on the status of the application processing
as requested.
Prior to assigning a specific project, the City will provide an introductory overview of the project and the
scope of services to be provided. All available drawing and other applicable technical and property
information will be available to the Consultant.
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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 become 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 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”).
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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 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
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
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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.
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 f or
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
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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.
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:
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CITY OF GILROY
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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City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19 of the Gilroy City Code Entitled "Smoking
Prohibited” Modifying Sections 19B.2 (9) Pertaining to Parks;
finding that the project is exempt from CEQA pursuant to CEQA
Guidelines Section 15061(b)(3).
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Adam Henig
Prepared By: Adam Henig
Adam Henig
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
a) Motion to read the ordinance by title onl y and waive further reading
b) Find that the proposed ordinance is exempt from the California Environmental
Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it
can be seen clearly that the ordinance would not have a significant impac t on the
environment.
c) Introduce an ordinance of the City Council of the City of Gilroy amending Chapter
19 of the Gilroy City Code entitled "Smoking Prohibited” Modifying Sections
19B.2 (9) Pertaining to Parks.
9.A
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EXECUTIVE SUMMARY
The consideration of an ordinance of the City Council of the City of Gilroy amending
Gilroy City Code Chapter 19 of the Gilroy City Code entitled "Smoking Prohibited”
modifying Sections 19B.2 (9) Pertaining to Parks that was presented to Council at the
January 25, 2021 meeting. Council directed staff to draft amendments to the ordinance.
The staff report presented to Council on January 25, 2021 is included for reference.
BACKGROUND
In July 2020, Santa Clara County’s Public Health Department released its findings from
its Tobacco-free Communities report and shared it with the Parks and Recreation
Commission. Among the 15 cities within the County, all but three have banned tobacco
usage in parks (Gilroy, Mountain View, and Los Altos Hills). The Commission motioned
unanimously to approve recommending an ordinance change to the city code, chapter
“19B.2.9 Parks. Smoking Pollution Control,” that would ban designated smoking areas
at all city parks.
On January 25, 2021, Council directed staff to draft an amendment to the ordinance th at
would ban smoking at all city parks.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are associated with adoption of the proposed ordinance. The County
can support the City’s effort to ban smoking in parks by funding “no smoking” signage.
NEXT STEPS
The ordinance will be in effect thirty (30) days from the date of Council action.
Attachments:
1. Ordinance to Ban Smoking in City Parks (EDKR 2.3) v1
2. January 25, 2021 Staff Report
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ORDINANCE NO. 2021-XX__ 4851-6497-4811v1
ERAMAKRISHNAN\04706083
ORDINANCE NO. 2021-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING GILROY CITY CODE CHAPTER
19 TO ADD MODIFY SECTIONS 19B.2 (9) PERTAINING
TO SMOKING IN PARKS.
WHEREAS, pursuant to California Constitution article XI, section 7, and the City
Charter, section 600, the City Council has the authority to enact ordinances which promote the
public health, safety and general welfare of its residents; and
WHEREAS, the City Council finds that the modification to Gilroy City Code, Chapter
19, pertaining to banning smoking at all city parks is necessary and in the interest of the health,
safety and welfare of the residents of the City; and
WHEREAS, the City Council finds that this Ordinance is exempt from review under the
California Environmental Quality Act (“CEQA,” Public Resources Code sections 21000 et
seq.), because it will not result in a direct or reasonably foreseeable indirect physical change in
the environment, and it does not have the potential to result in a physical change to the
environment, directly or indirectly (Title 14, Chapter 3 of the California Code of Regulations
“CEQA Guidelines,” sections 15061(b)(3)).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 19 of the Gilroy City Code entitled “Smoking Prohibited” is hereby amended by
modifying Sections 19B.2 (9) to read as follows:
19B.2 Smoking prohibited.
Labor Code Section 6404.5 prohibits smoking in enclosed places of employment (as defined in
that code section) in the State of California. In addition, pursuant to Labor Code Section 6404.5,
local governments retain the right to adopt and implement stricter anti-smoking requirements
than are imposed pursuant to Labor Code Section 6404.5, including the right to regulate and
prohibit smoking in any area not defined as a place of employment or in which smoking is not
regulated pursuant to Labor Code Section 6404.5. This chapter is intended to supplement the
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ORDINANCE NO. 2021-XX__ 4851-6497-4811v1
ERAMAKRISHNAN\04706083
provisions of Labor Code Section 6404.5. All places within the city shall be subject to the
provisions of Labor Code Section 6404.5, as such section may be amended or recodified from
time to time. In addition, smoking is prohibited in all of the following places within the city:
Section 19B.2 (9) Parks
(9) Parks. Park grounds and parking lot(s).
SECTION II
If any section, subsection, sentence, clause or phrase of this Ordinance is for any
reason held to be invalid or unconstitutional, such decision shall not affect the validity of
the remaining portions of this ordinance. The City Council of the City of Gilroy hereby
declares that it would have passed and adopted this ordinance, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
SECTION III
Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force
and effect thirty (30) days from and after the date it is adopted.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY
this 22nd day of February, 2021, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ATTEST: APPROVED:
_______________________ ________________________
Shawna Freels, City Clerk Marie Blankley, Mayor
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City of Gilroy
STAFF REPORT
Agenda Item Title: Consideration of Proposed Amendments to the Gilroy City Code to
Eliminate Smoking Areas in City Parks
Meeting Date: January 25, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Adam Henig
Adam Henig
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Receive report and direct staff to prepare an ordinance amending Chapter 19B of the
Gilroy City Code entitled “Smoking Pollution Control” to prohibit smoking areas in city
parks.
EXECUTIVE SUMMARY
For the past decade, the Public Health Department has encouraged Santa Clara County
cities to adopt more aggressive policies to deter residents from using any form of
tobacco—smoking, chewing, and vaping. By minimizing public spaces where tobacco is
permitted, cities can reduce and/or eliminate tobacco litter (e.g., vaping devices), curb
secondhand and third hand smoke, reduce usage among populations with the highest
rates, and shift social norms.
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Packet Pg. 118 Attachment: January 25, 2021 Staff Report (3171 : Ordinance Amending Chapter 19B Smoking in Parks)
In July 2020, Santa Clara County’s Public Health Department released its findings from
its Tobacco-free Communities report and shared it with the Parks and Recreation
Commission. Among the 15 cities within the County, all but three have banned tobacco
usage in parks. (Gilroy, Mountain View, and Los Altos Hills)
Following the Public Health Department’s presentation, the Commission motioned
unanimously to approve recommending an ordinance change to the city code—chapter
“19B.2.9 Parks. Smoking Pollution Control,”—that would ban designated smoking areas
at all city parks.
This is the first review of the proposed change in ordinance.
POLICY DISCUSSION
The City Council is asked to modify current Article 19B.2 “Parks” Smoking Pollution
Control. The current article states that smoking is not allowed in elevators; hospitals and
health care facilities; places of public assembly on places owned by the city; public
lobbies; museums, libraries, and galleries; and private property that has been
designated nonsmoking. Outdoor eating areas, however, can allow up to 50% of its
seating for smokers. Parks is the only other section mentioned in chapter 19B.2.9 where
smoking is not entirely banned. (Bold represents affected section.)
19B.2 Smoking prohibited.
Labor Code Section 6404.5 prohibits smoking in enclosed places of employment (as defined in
that code section) in the State of California. In addition, pursuant to Labor Code Section 6404.5,
local governments retain the right to adopt and implement stricter anti-smoking requirements than
are imposed pursuant to Labor Code Section 6404.5, including the right to regulate and prohibit
smoking in any area not defined as a place of employment or in which smoking is not regulated
pursuant to Labor Code Section 6404.5. This chapter is intended to supplement the provisions of
Labor Code Section 6404.5.
All places within the city shall be subject to the provisions of Labor Code Section 6404.5, as such
section may be amended or recodified from time to time. In addition, smoking is prohibited in all
of the following places within the city:
(1) Outdoor Eating Areas. Fifty (50) percent of outdoor eating areas for all restaurants, which
shall be reserved for nonsmokers.
(2) Elevators. Elevators in buildings generally open to and used by the public, including elevators
in apartment buildings, irrespective of the number of living units in such a partment buildings.
(3) Hospitals and Health Care Facilities. Every public and private health care facility including, but
not limited to, hospitals, clinics, and physicians and dentists offices, provided that smoking is
permitted in patient smoking areas of long-term health care facilities, as defined in Section 1418
of the Health and Safety Code.
(4) Places of Public Assembly. Hearing rooms or places of public assembly owned by the city or
in which the business of the city, or any of its boards or commissions, is conducted.
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Packet Pg. 119 Attachment: January 25, 2021 Staff Report (3171 : Ordinance Amending Chapter 19B Smoking in Parks)
(5) Public Lobbies, Public Hallways. Waiting rooms, lobbies and public hallways of every building
under direct or indirect control of the city.
(6) Museums, Libraries, Galleries. All museums, libraries and galleries.
(7) Designated Nonsmoking Areas. Any area of any business, governmental or charitable
establishment which has been designated by the owner or person in charge of such
establishment as a nonsmoking area and marked with a nonsmoking sign or signs. Exceptions
set forth later in this chapter shall not apply to this subsection.
(8) Public Restrooms. Public restrooms.
(9) Parks. Parks, as defined in section 19B.1, except for specific areas within parks that are
designated as permissible smoking areas. Permissible smoking areas within parks shall
be designated from time to time by resolution of the city council. Notwithstanding the
above, the city administrator may temporarily permit or prohibit smoking in designated
areas of parks during special public or private events. In such cases, the city administrator
shall require the event applicant to post paper signs indicating the temporary change in
park smoking rules in a form and at locations required by the city administrator. (Ord. No.
95-3, 1-23-95; Ord. 2012-09 § 2, 6-18-12)
The proposed change would be more succinct and make no exceptions.
(9) Parks. Park grounds and parking lot(s).
BACKGROUND
Following the presentation made by the County’s Public Health Department, the
Commission unanimously motioned at its regular monthly meeting in September 2020
to approve sending a memo recommending to Council to modify the current
ordinance—Chapter 19B.2.9 “Parks” Smoking Pollution Control—to reflect the City’s
commitment to ensuring healthy outdoor spaces. Except for the newest parks (i.e.,
Hecker Pass & Cydney Casper), all city parks currently have designated smoking areas.
On September 23, 2020, the chair of the Parks and Recreation Commission sent a
memo, “Request to Consider New Policy Regarding Tobacco Use at Gilroy City Parks,”
to all council members, in hopes the item would be added to a future council agenda.
On November 16, 2020, then Councilmember Blankley asked Council to add this item to
a future agenda, which was accepted.
ANALYSIS
Although this policy would strengthen the City’s commitment to enhance the public
health of its residents, there is concern about, if a need arose, for a lack of enforcement
of the policy. Parks maintenance staff can remind park users not to smoke in city parks,
but they do not have enforcement capabilities, thus enforcement would fall to the City’s
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Packet Pg. 120 Attachment: January 25, 2021 Staff Report (3171 : Ordinance Amending Chapter 19B Smoking in Parks)
police department, they most likely would not be able to respond to a complaint in a
timely manner.
This predicament is not unique to Gilroy. “Most smoke free parks enforcement and
compliance comes by way of education,” according to a County Public Health official
who specializes in tobacco-free awareness. Examples include ensuring adequate
signage is posted in areas where park visitors might be likely to smoke and messaging
(print and electronic) the entire community.
In Morgan Hill and Santa Clara, for example, the city does not have their police and/or
other city staff enforcing the ban. However, with signage notifying users of the ban,
violation of the policy has remained minimal. Campbell recently launched a Park
Ambassador program where a non-sworn city staff member was on site at its largest
park to enforce rules and policies. The focus was to educate, not enforce. According to
their city staff, the program was successful. In Milpitas, a volunteer youth group offered
to conduct a park clean-up and report any areas where higher than normal amount of
tobacco litter was collected or observed.
ALTERNATIVES
Should the Council choose not to recommend action, the current article, 19B.2.9 “Parks”
Smoking Pollution Control, will remain in place.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are associated with adoption of the proposed ordinance. The County
can support the City’s effort to ban smoking in parks by funding “no smoking” signage.
NEXT STEPS
If directed, staff will return with a proposed ordinance revision for Council to consider.
PUBLIC OUTREACH
None at this time.
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Packet Pg. 121 Attachment: January 25, 2021 Staff Report (3171 : Ordinance Amending Chapter 19B Smoking in Parks)
City of Gilroy
STAFF REPORT
Agenda Item Title: Gilroy Renters and Small Business Protections During Covid-19
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Maria De Leon
Maria De Leon
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Receive report.
EXECUTIVE SUMMARY
The health and economic impact of the COVID-19 pandemic has been felt around the
world, but the virus has had a more devastating effect on our most vulnerable
communities. Specifically, in the City of Gilroy, according to the Santa Clara County
Public Health Department Dashboard, has the highest infection rate of COVID-19 cases
(12,112) compared to other Santa Clara County cities. Cities made up of largely of
communities of color, with high poverty levels, limited access to he alth care,
overcrowded housing, residents working in the service industry or other lower paying
jobs, are at greater risk for a disproportionate impact of CVOID-19. Below is a
breakdown of the cases per city.
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CITY CASES POPULATION RATE
Campbell 1,756 42,470 4.135%
Cupertino 743 60,614 1.226%
Gilroy 6,725 55,525 12.112%
Los Altos 570 30,588 1.863%
Los Altos Hills 177 8,517 2.078%
Los Gatos 987 30,922 3.192%
Milpitas 3,079 77,457 3.975%
Monte Sereno 72 3,492 2.062%
Morgan Hill 3,067 43,876 6.990%
Mountain View 2,563 80,993 3.164%
Other/Unknown 4,018 0 0
Palo Alto 1,274 67,019 1.901%
San Jose 67,653 1,026,658 6.590%
Santa Clara 4,534 126,209 3.592%
Saratoga 533 30,886 1.726%
Sunnyvale 4,676 152,323 3.070%
The pandemic has created significant increases in rental debt, causing instability and
financial hardships for both tenants and landlords. Additionally, job hour cutbacks and
losses due to COVID-19 have disproportionately affected workers of small businesses
and industries affected by the stay-at-home orders such as retail, entertainment,
hospitality, and food service. Most of the workers in these industries are more likely to
be renters because of lower wages.
Small businesses have also been gravely impacted due to the pandemic suffering great
losses in sales and revenues. Minority owned businesses have faced even greater
challenges because they tend to be in areas deemed “non-essential.” Examples of non-
essential business include restaurants, wineries, hair-salons, card rooms, bars, tattoo
parlors and other similar establishments. Many of these businesses require at least
some in-person interaction, which many consumers are choosing to avoid.
BACKGROUND
At the February 1, 2021 City Council meeting, Council requested information relating to
the programs supporting and protecting Gilroy renters and small business negatively
impacted by the COVID-19 pandemic. This staff report contains information on current
and upcoming CARES ACT programs serving this targeted population, as well as an
update on Governor Newsom’s California’s Eviction Moratorium extension.
ANALYSIS
Since the beginning of the pandemic, the Cit y of Gilroy has sought federal and state
grant programs which have provided much needed financial support to those Gilroy
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residents and business facing overwhelming challenges due to COVID-19. Additionally,
in April 2020, City Council unanimously voted to designate $267,500 in Ge neral Fund
monies to local community-based agencies struggling to stay afloat and providing
essential services to Gilroy’s most vulnerable. Below is a summary of the current and
upcoming rent relief and small business grant programs and protections.
RESIDENTIAL RENT RELIEF (Current & Upcoming)
CITY OF GILROY RENT RELIEF PROGRAMS - CURRENT
o CARES ACT ST. JOSEPH’S FAMILY CENTER/CITYOF GILROY RENT
RELIEF PROGRAM – The City of Gilroy partnered with the St. Joseph’s
Family Center for the facilitation of the rent relief program utilizing
$150,000 in CARES ACT funds. The St. Joseph’s Family Center Rent
Relief Program was initiated back in September 2020 and since February
2021, the entire $150,000 has been utilized on rent relief. This program
supported 62 Gilroy households, equating to 226 individuals, averaging
3.6 individuals per household. The average assistance amount was
$2,362. Seventy (70) percent were extremely low income and thirty (30%)
were very low income. Additionally, ninety (90) percent were
Latinx/Hispanic families.
o EXPANSION OF THE CARES ACT ST. JOSEPH’S FAMILY CENTER/
CITYOF GILROY RENT RELIEF PROGRAM (CDBG – CV3 Part A) – An
additional round of CARES ACT funds is forthcoming. Out of the $422,000
available, a fund request will be included when updating the HUD annual
action plan in Spring 2021, resulting in the availability of additional rent
relief funds for the expansion of the existing St. Joseph’s Family Center
and City of Gilroy Rent Relief Program for Gilroy tenants facing housing
insecurity.
FEDERAL RENT RELIEF PROGRAMS (UPCOMING - Beginning in March)
o US DEPARTMENT OF THE TREASURY - EMERGENCY RENTAL
ASSIST ANCE (ERA) PROGRAM - Lawmakers agreed to use $2.6 billion
in federal stimulus money to pay off up to 80% of some tenants unpaid
rent, but only if landlords agree to forgive the rest of the 20% debt.
California is to receive approximately 60 million. Funds will be filtered
through Santa Clara County who will then partner directly with community-
based organization for the facilitation of this program and the distribution
of these funds. St. Joseph’s Family Center is the designated Gilroy
agency. Landlords can receive a maximum of 12 months of rent relief. For
instances where the utilities (water, gas, electricity, sewer, and trash
removal) are covered by the landlord within the rental agreement, they will
be treated as rent. Tenants of federally subsidized housing (low-income or
public housing) are not eligible to receive assistance with this program.
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Program details are still being finalized, but to participate, it is anticipated
that the ERA program will require burdensome documentation.
STATE RENTAL PROTECTIONS
o CALIFORNIA EVICTION MORITORIUM EXTENSION - In late January
2021, California lawmakers approved an extension of COVID-19 eviction
protections through June 2021 which extended the moratorium throughout
the state of emergency and permanently prohibited landlords from evicting
tenants who are unable to repay back rent due to loss of income from
COVID-19. This protection has helped families stay housed in their
community, near their jobs, schools, and support networks.
BUSINESS SUPPORT (Current & Upcoming)
FEDERAL SMALL BUSINESS PROGRAMS
o CARES ACT SMALL BUSINESS GRANTS PROGRAM - A total of
$469,715 in CARES ACT funds were designated to small business grants.
Since summer of 2020, $310,000 was distributed to 46 local business in
the amounts of $5,000 or $10,000 for operational expenses such as the
purchasing of merchandise, payroll and rent relief. In February 2021, the
City of Gilroy entered into an agreement with the Gilroy Chamber of
Commerce for the facilitation of the remaining $125,000 for the
continuation of the CARES ACT Small Business Grant program.
o EXPANSION OF THE CARES ACT SMALL BUSINESS GRANTS
PROGRAM (CDBG – CV3 Part A) – An additional round of CARES ACT
funds totaling $422,000 is forthcoming. A fund request will be included
when updating the HUD annual action plan in Spring 2021, resulting in the
availability of additional small business grant funds for the expansion of
the existing Gilroy Chamber of Commerce and City of Gilroy Small
Business Grants Program for Gilroy’s struggling small busines ses.
FEDERAL BUSINESS PROTECTIONS
o PAYMENT PROTECTION PROGRAM (PPP) – PPP is established by the
CARES Act and is implemented by the Small Business Administration with
support from the Department of the Treasury. The Paycheck Protection
Program prioritizes millions of Americans employed by small businesses
by authorizing up to $659 billion toward job retention and certain other
expenses. This forgivable loan program provides small businesses with
funds to pay up to eight weeks of payroll costs including benefits. Funds
can also be used to pay interest on mortgages, rent, and utilities. Small
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businesses, eligible nonprofit organizations, the self -employed and are
independent contractors are eligible if they meet program size standards.
o OTHER SMALL BUSINESS ACT (SBA) LOAN PROGRAMS:
ECONOMIC INJURY DISASTER LOANS Advance up to $10,000
in economic relief to businesses currently experiencing temporary
loss of revenue due to the COVID-19 pandemic. Funds will be
made available following a successful application and will not have
to be repaid. If a business received an Economic Injury Disaster
Loan advance in addition to a Paycheck Protection Program (PPP)
loan, the amount of the Economic Injury Disaster Loan advance will
be deducted from the PPP loan forgiveness amount by SBA. This
program is for any small business with fewer than 500 employees
(including sole proprietorships, independent contractors, and self-
employed persons), private non-profit organization or 501(c)(19)
veterans organizations affected by COVID-19.
7(a) LOANs Offers amounts up to $5,000,000. The uses of proceeds
include: working capital, expansion/renovation, new construction,
purchase of land or buildings, purchase of equipment, fixtures, lease-
hold improvements, refinancing debt for compelling reasons, seasonal
line of credit, inventory, or starting a business.
EXPRESS LOANS Offer up to $350,000 for no more than seven years
with an option to revolve. There is only a turnaround time of 36 hours
for approval or denial of a completed application. The uses of proceeds
are the same as the standard 7(a) loan.
COMMUNITY ADVANTAGE LOANS Allow mission-based lenders to
assist small businesses in underserved markets with a maximum loan
size of $250,000. The uses of proceeds are the same as the standard
7(a) loan.
504 LOANS Designed to foster economic development and job
creation and/or retention. The eligible use of proceeds is limited to the
acquisition or eligible refinance of fixed assets.
MICRO LOANS Made through nonprofit lending organizations to
underserved markets. Authorized use of loan proceeds includes
working capital, supplies, machinery and equipment, and fixtures (does
not include real estate). The maximum loan amount is $50,000 with the
rental average loan size of $14,000.
ALTERNATIVES
Some California municipalities, along with many counties have passed additional laws
aimed at mitigating the financial struggles renters and businesses are facing due to the
COVID-19 pandemic. Here are the steps local and state governments have taken to
shelter renters and small businesses from the virus’s vast economic turmoil for City
Council consideration:
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ADDITIONAL RENTAL AND BUSINESS PROTECTIONS FOR COUNCIL
CONSIDERATION
o Temporary moratorium on rent increase from April 2020 to December 31,
2020 for apartments with 3+ units covered by the Apartment Rent
Ordinance and built before 1979 and mobile home parks covered by the
mobile home ordinance and built before 1979. (San Jose)
o Temporarily ban evictions to help provide some relief to residents and
business economically suffering from the state mandated Stay-At-Home
order. (Anaheim & Costa Mesa)
o Rather than forcing landlords to comply through an ordinance, a dopted a
resolution urging landlords to voluntarily halt evictions during the state
mandated Stay-At-Home order to combat the pandemic. (Irvine)
o Adopt a state of emergency resolution mirroring Governor Newsom’s
emergency declaration allowing cities to adopt eviction bans. (Garden
Grove)
o Halting evictions of small business and prohibited late rent payment fees
for two months, while asking landlords to negotiate payment plans with
commercial tenants. (Seattle)
o Suspend commercial evictions and foreclosures. (Kansas, Iowa,
Pennsylvania, Rhode Island)
o Halt foreclosures and courts to stop all commercial and residential
evictions. (San Francisco, Los Angeles, Rancho Cucamonga, Marin
County and four cities in Ventura County)
FISCAL IMPACT/FUNDING SOURCE
None at this time.
CONCLUSION
City of Gilroy staff will continue to seek out gra nt programs and resources which will
prevent homelessness through rent relief, as well as the prevention of job loss
throughout the COVID-19 crisis.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Facility and Recreation Program Needs Assessment Conducted by
PROS Consulting, Inc.
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Adam Henig
Adam Henig
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Receive report.
EXECUTIVE SUMMARY
To optimize the delivery of recreation services, the City hired PROS Consulting in fall
2019 for the development of a Facility and Program Needs Assessment. With support
from the Mt. Madonna YMCA for the community survey, this Assessment included a
robust community engagement process and market research to identify current and
future resident needs related to recreation programs and facilities. The research is
used in tandem with industry knowledge and an internal assessment to determine
strategic priorities for advancing the Recreation Division’s operations and increasing
access to quality recreation in the City.
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It is important to note that the Covid-19 Pandemic began during the Needs Assessment.
Not only did this create major shifts to the organization during the assessment, but the
extensive community engagement process and feedback from residents was collected
prior to the pandemic. Every effort was made to reevaluate the assessment and
address Recreation in its current state, post-pandemic; however, there were some
components of the Assessment, such as community input, that were not feasible to
update.
BACKGROUND
During summer 2019, the city issued a request for proposal for a needs assessment of
its recreation facilities and programs. Among the submissions was Indianapolis -based
PROS Consulting, Inc., who was selected to lead the assessment. They have extensive
experience in California and the Bay Area having worked with the City of San José,
Santa Clara County, Fremont, Walnut Creek, Pleasant Hill, and Benicia among others.
From coordinating the surveys and facilitating public meetings (with key stakeholders
ranging from city leadership to the public) to leading internal discussions and offering
invaluable insight, PROS Consulting produced a comprehensive analysis of the state of
Gilroy’s recreation offerings and facilities.
Although PROS’ executive summary and full report provide the findings in more detail,
for the purpose of this staff report it is important to highlight the following information
and outcomes:
Stakeholder Meeting Outcomes
As a fundamental component of the planning process, PROS ’ Consultants and
recreation staff conducted a series of stakeholder interviews and public meetings in
December 2019. These public meetings were conducted in both English and Spanish to
ensure the most inclusive process possible. The feedback received from community
stakeholders is critical to the discovery phase of the Facility & Program Needs
Assessment to uncover the recreational needs, interests, and challenges facing the
Recreation Division from the perspective of residents, users, and other key stakeholders
of the system. Approximately 225 individuals participated comprising of, but not limited
to, councilmembers, city staff, Mt. Madonna YCMA representatives, city commissioners,
South County Youth Task Force, and, of course, residents.
Below were the most mentioned themes identified from the community input process
(see 1.4.3 in report):
Fiscal sustainability
Aging infrastructure
Meeting the future recreation needs of the community
The top priorities frequently mentioned were (not in any order):
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1. Increase access to indoor recreation space, specifically a multi-generational,
multi-purpose recreation center.
2. Provide healthy, vibrant recreational programs for all Gilroy residents.
3. Improve fiscal sustainability for the Recreation Division by establishing cost
recovery goals, an effective pricing strategy, and performance metrics.
4. Understand community wants and needs for facilities and programs.
5. Improve existing facilities and infrastructure.
Community Survey Results (see 1.4.4)
There were two surveys administered: a statistically valid survey (conducted by ETC
Institute) and an online survey (powered by SurveyMonkey). As part of the City’s efforts
to develop its parks, facilities, and programs, resident feedback was compiled to help
determine the priorities from the residents’ perspective.
From the ETC survey, the top priorities were:
Facilities Recreation Programs
Multiuse paved trails Adult fitness and wellness programs
Indoor swimming pool Exercise classes
Community center Senior programs
In addition to the statistically valid community survey, an online survey was conducted
to better understand the characteristics, preferences, and satisfaction levels of
residents. The online survey mirrored questions from the ETC survey. This allowed
residents that were not randomly selected for the statistically valid survey the
opportunity to be part of the community input process.
Here were some of the key findings (see 1.4.5):
79% of survey respondents Agree or Strongly Agree that the Recreation Division
provides positive social interactions for households
94% of those surveyed have visited a City park or facility within the last year, with
74% visiting at least once a week
Top Facility needs:
o Multi use paved trails,
o Large community parks
o Multi-use unpaved trails
Top Program needs:
o Community special events
o Adult fitness and wellness
o Exercise classes
Recreation Program Assessment (see 1.4.8)
The assessment also provided an analysis that identified the Division’s strengths,
challenges, and future opportunities related to recreation programs.
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Among their recommendations were:
Age segment distribution - The Division’s target audience has a strong family
presence, while it is projected to experience an aging trend.
The Program Lifecycle - While most programs are in the early lifecycle stages,
the saturation and decline stages have a higher distrib ution of programs than
recommended. It will be important to refresh the programming mix with new, or
revised, programs that backfill the beginning lifecycle stages as existing
programs begin to mature and reduce programs that are in decline.
Financial performance measures - track the actual cost recovery performance,
specifically direct and indirect costs for programs down to the individual program
offerings to better assess whether the Division is meeting established goals.
Level of Service (see 1.4.9)
A Level of Service (“LOS”) standards matrix was developed during the planning
process, which describes the City’s facility inventory and other similar providers (e.g.
school district) in relation to the population served. The LOS framework is an effective
measure that can be used to support capital investment decisions related to parks,
facilities, and amenities. Applying the facility standards to the service area, gaps and
surpluses in park and facility/amenity types are identified.
Based on this methodology, it is recommended that the City add the following park
acres, trail miles, and amenities by 2024 to keep up with the size and needs of the
community:
• 46 acres of Neighborhood Parks
• 9 acres of Community Parks
• 3 miles of Paved Trail
• 9.69 miles of Unpaved Trail
• 1 Park Shelter
• 2 Pavilions
• 2 Multipurpose Fields
• 3 Outdoor Basketball Courts
• 2 Splashpads
• 1 Outdoor Pool
• 56,300 SF of Indoor Community Recreation Space
• 29,380 SF of Indoor Aquatic Space
As of the publication of this staff report, there are cur rently no funds earmarked for any
of these projects.
Strategic Action Plan (see 1.8)
PROS Consulting team conducted a visioning workshop with the Recreation Division
Leadership Team to determine the identity of the organization and chart a path moving
forward.
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Using this iterative process along with community input, demographics and trends, and
an analysis of Recreation’s offerings and levels of service, the Mission, Vision, and Core
Values of the organization were established.
The following are the key recommendations developed during the Visioning Process
that provide a strategic roadmap for the Division moving forward.
PROGRAMMING & FUNDING (see 1.8.1)
Add fee-based programs targeting adults 18-54
Recruit 5-8 new contract instructors each year
Restore key programs at 100% Cost Recovery (i.e., Preschool, Soccer League,
and Basketball League)
Evaluate fees and charges / memberships model for recurring revenue
Seek more support from council and emphasize balance between cost recovery
and satisfying unmet program needs of the community
FACILITIES & AMENITIES (see 1.8.2)
Senior Center Transformation - A quick and cost-effective solution to
addressing unmet needs for facility space dedicated to recreation programs in
the City is to transform the existing Senior Center into a multi-generational
community center with expanded services for all ages.
Renovate Wheeler Center - most in need of air conditioning, HVAC updates,
and updated program spaces.
Create a Downtown Park - investing in new development or a popup park that
can host recreation programming and small events.
OTHER STRATEGIES (see 1.8.3 & 1.8.4)
Add evening operating hours at facilities
Increase security at parks and facilities
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Establish a Foundation
Secure funding for park and facility development / upgrades
Explore tax / bond measure dedicated to operating expenses
CONCLUSION
The findings from this Assessment indicate there is strong community support for
recreation and the extensive planning process resu lted in a strategic roadmap to follow.
The results of this assessment have identified new, economically feasible opportunities
that, if implemented, will have a greater, longer lasting impact on the quality of life for all
Gilroy residents.
Attachments:
1. GRD Needs Assessment_Exec Summary_FINAL_210127 PDF
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ACKNOWLEDGEMENTS
THANK YOU TO ALL THE RESIDENTS & STAKEHOLDERS FOR CONTRIBUTING
INPUT THROUGHOUT THE DEVELOPMENT OF THIS NEEDS ASSESSMENT
2020 GILROY PARKS & RECREATION COMMISSION
Patricia Bentson, Chair
Theresa Graham
Robert Miller
Ermelindo Puente
Angela Reinert
Michelle Wexler
GILROY RECREATION STAFF
Maria De Leon, Program Administrator
Carina Baksa, Management Analyst
Monica Gonzalez, Community Coordinator
Adam Henig, Recreation Manager
Judy Mireles-Janisch, Recreation Coordinator
Monica Sendejas, Recreation Coordinator
SPECIAL THANKS TO THE MT. MADONNA YMCA FOR CONTRIBUTING TO THE
COMMUNITY SURVEY
CONSULTANT TEAM
Neelay Bhatt, Vice President and Principal Consultant, PROS Consulting, INC.
Nick Deardorf, Senior Project Manager, PROS Consulting, INC.
Jason Morado, Statistically-Valid Survey, ETC Institute
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TABLE OF CONTENTS
CHAPTER ONE – EXECUTIVE SUMMARY ............................................................................. 1
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CHAPTER ONE – EXECUTIVE SUMMARY
INTRODUCTION
The City of Gilroy (“City”) is a hard-working, suburban community, full of rich heritage and vibrant
culture. It is a youthful city with strong family values that is well known throughout the bay area and
beyond as the Garlic Capital of the World. Gilroy has a storied past that makes it unique and represents
a community that is defined by its resiliency. Like many great cities, Gilroy also provides enhanced
quality of life for residents through its parks, trails, and recreational facilities. The Gilroy Recreation
Division (“GRD”) plays a vital role in the community by providing access to recreation opportunities
through the provision of quality programs and services.
In an effort to optimize the delivery of services, the City, with support from the Mt. Madonna YMCA for
the community survey, hired PROS Consulting for the development of a Facility and Program Needs
Assessment (“Assessment”). This Assessment included a robust community engagement process and
market research to identify current and future resident needs related to recreation programs and
facilities. The research is used in tandem with industry knowledge and an internal assessment to
determine strategic priorities for advancing GRD and increasing access to quality recreation in the City.
Prior to the Covid-19 pandemic, GRD had a set of goals that are no longer attainable due to limitations
imposed by major budget cuts, the elimination of program offerings, and the reorganization of GRD,
which reduced it from a “Recreation Department” to a “Recreation Division”. During the pandemic, the
City began developing protocols for mitigation and the financial situation resulted in significant
budgetary and staffing cutbacks. This included a freeze on all current programs that were not able to
generate full cost recovery unless they were deemed essential services serving vulnerable populations.
It is important to note that the Covid-19 Pandemic began during the final steps of the Needs Assessment.
Not only did this create major shifts to the organization in the midst of the Assessment, but the extensive
community engagement process and feedback from residents was collected prior to the pandemic. Every
effort was made to reevaluate the Assessment and address GRD in its current state, post-pandemic;
however, there were some components of the Assessment, such as community input, that were not
feasible to update.
The City of Gilroy managed to keep outdoor recreation available to residents throughout the Covid-19
pandemic and GRD has done its best to continue providing offerings to the Community within the current
limitations. The staff has continued to monitor changes in local and State Executive Orders and health
guidance to adjust and maximize programming within restrictions.
The following passages of the Executive Summary provide a high-level summary of the Assessment
findings and outlines the key strategies moving forward. The full Assessment report ensues the Executive
summary and provides more detailed findings.
HISTORY
The following is a brief timeline of the history of GRD:
• In 1947, the Recreation Department was established in order to provide recreational
opportunities for Gilroy residents.
• In an effort to create greater efficiency throughout City Hall, and per directive from City Council,
the Recreation Department expanded into the Community Services Department, which was made
up of: Recreation, Parks, Facilities, Environmental Services, and the Gilroy Museum.
• In 2002, City of Gilroy issued a Parks and Recreation System Master Plan. It was updated in 2004.
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• During the Great Recession in 2009, the Community Services Department was disbanded and, due
to the budget cuts, some staff were laid off. Recreation became its own department. Parks,
Facilities and Environmental Services was transferred to Public Works. The Museum was operated
by volunteers through the Gilroy Historical Society.
• In 2012, the City opened the Christopher High School Aquatics Center, offering both recreation
swim and swimming lessons.
• In 2020, during the Covid-19 Pandemic, the City experienced another budget downturn, which
led to Recreation Department staff layoffs. The smaller staff now make up the Recreation
Division, which is operating out of the Administration Department.
GOALS
The following goals were established for the Needs Assessment:
• Engage the diverse Gilroy community served by the GRD and YMCA, leadership, and stakeholders
through an inclusive, and innovative public outreach process to build a shared vision for facilities
and programs.
• Utilize a wide variety of data sources and best practices including a bi-lingual (English and
Spanish) statistically-valid survey to predict trends and patterns of use and how to address unmet
facility and program needs in Gilroy served by the GRD and YMCA.
• Determine unique Level of Service Standards and utilization to develop appropriate actions
regarding that reflects the GRD and YMCA’s strong commitment in providing high quality facilities
and programs for the Gilroy community.
• Understand program capacity and compatibility with users through innovation and “next”
practices for the GRD and YMCA to achieve the strategic objectives, identify current and project
future recreation facility demands, and highlight revenue generation and partnership
opportunities.
• Develop a prioritized needs assessment to ensure long-term success through a data driven and
community values supported approach.
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KEY FINDINGS
The following sections highlight the major elements of the Plan and outlines the key findings from the
Needs Assessment.
DEMOGRAPHIC ANALYSIS
The following are the key takeaways from the Demographic Analysis found in section 2.2.
• The population is growing rapidly, at nearly twice times the national growth rate. As the
population continues to grow, GRD must pay close attention to demographic shifts in the future
to ensure that offerings continue to evolve to meet the changing needs of the community.
• City residents are much younger than average and there is a strong presence of families;
however, the active adult population (55+ years old) is the only age segment expected to grow
over the next 15 years. By 2034, the active adult population is expected to supplant the youth
population (0-17 year olds) as the largest age segment in the City. GRD must continue to provide
services for all and reevaluate its programming mix to effectively transition as the population
ages.
• The local populace is very diverse and unique in its racial / ethnic composition. A significant
presence of Hispanic / Latino residents emphasizes the importance of providing services and
marketing programs in a bilingual format. Based on population projections, the Asian population
is expected to be the fastest growing race in the City, so it will be important to confirm that
participation among Asians is consistent with the trend and marketing is effective in reaching
the growing population (i.e. evaluate language barriers and cultural interests).
• While household income is significantly higher than average, earning per individual is much closer
to average. This is a factor of large household sizes in the City and a tendency for multi-
generational, multi-family dwellings. It is important to consider this household dynamic where
families tend to be larger, more cohesive units and are likely interested in recreational
opportunities that are conducive to larger groups, emphasize culture / community, and pricing
that offers value at the household level.
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RECREATION TRENDS
The Plan also explored recreational trends on a national, regional, and local level to better understand
the types of activities District residents are likely to participate in. The full Recreational Trends Analysis
can be found in Section 2.3.
Overall, residents demonstrate below
average MPI numbers, with only 25% of
activities assessed exceeding the
national average. The outdoor
recreation category has the highest
deficiencies in MPI, as no single activity
is above the national average.
Activities with the highest MPI scores
include Soccer, Visiting a Theme Park,
Zumba, Visiting an Indoor Water Park,
Dancing, and Baseball. The lowest
rated activities, based on MPI, were all
water related: Freshwater Fishing,
Canoeing / Kayaking, and Power
Boating.
Below average MPI scores suggest that
residents have a rather low
participation presence in recreational
activities and could indicate a lack of
access to open space, facilities, and
programs / services. This is significant
because GRD is a primary provider of
recreation for residents and its mission
is to provide broad access and
opportunities for recreating in Gilroy.
PUBLIC INPUT
As a fundamental component of the planning process, the project team conducted a series of stakeholder
interviews and public meetings over a two-day period in December 2019. The feedback received from
community stakeholders is critical to the discovery phase of the Facility & Program Needs Assessment to
uncover the recreational needs, interests, and challenges facing GRD from the perspective of residents,
users, and other key stakeholders of the system. Questions asked were designed to better understand
current strengths, opportunities, and priorities for GRD as it continues to be a leader in providing
recreational opportunities in the community.
In total, the public input process connected with approximately 225 individuals. Stakeholder interview
and public meeting attendees included:
• Residents and various user groups
• Elected Officials
• City Departments
• South County Youth Task Force
137
107 100 99 99 93 88 86
0
20
40
60
80
100
120
140
160
Soccer Baseball Softball Basketball Football Volleyball Tennis GolfMPI ScoresGeneral Sports MPI
Gilroy National Average
99 97 95 88 85
77 75 64
0
20
40
60
80
100
120
Bicycling
(mountain)
Bicycling
(road)
Hiking Horseback
Riding
Backpacking Boating
(power)
Canoeing/
Kayaking
Fishing
(fresh
water)MPI ScoresOutdoor Activity MPI
Gilroy National Average
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• City Staff
• GRD Leadership
• Mt. Madonna YMCA
• Community Advocacy Groups
• Local Business Community
Although the Stakeholders have a variety of priorities for GRD, some common themes were identified
through interviews. First and foremost, GRD must find the best path to fiscal sustainability, while
addressing shortcomings related to aging infrastructure and future needs of the community. Many are
hopeful this planning process clearly identifies the recreational needs of the community, provides a vision
for GRD, and gauges the support for additional taxes that could solidify the operational and/or capital
needs of the community.
Top priorities for GRD that were most frequently mentioned include:
1. Increase access to indoor recreation space, specifically a multi-generational, multi-purpose
recreation center.
2. Provide healthy, vibrant recreational programs for all Gilroy residents.
3. Improve fiscal sustainability for GRD by establishing cost recovery goals, an effective pricing
strategy, and performance metrics.
4. Understand community wants and needs for facilities and programs.
5. Improve existing facilities and infrastructure.
6. Better communicate the value and benefits of GRD to bolster support from city council and the
community at large.
Additional details about the subjective public input in included in Section 3.1 & 3.2.
STATISTICALLY VALID SURVEY
ETC Institute administered a parks and recreation needs assessment in late 2019 for the City. This
assessment was administered as part of the City’s efforts to develop area parks, facilities, and programs.
Information compiled from the assessment will provide key data to set a clear vision for the future. This
survey helps determine priorities for parks, recreation facilities, program offerings, and special event
offerings in the City from the residents’ perspective.
The goal was to obtain completed surveys from at least 375 residents. The goal was exceeded with a
total of 419 residents completing the survey. The overall results for the sample of 419 households have
a precision of at least +/-4.8% at the 95% level of confidence.
The detailed results are presented in Section 3.3.
Priorities for Investment: The Priority Investment Rating (PIR) was developed to provide organizations
with an objective tool for evaluating the priority that should be placed on Parks and Recreation
investments. The PIR equally weights (1) the importance that residents place on facilities / programs
and (2) how many residents have unmet needs for the facility / program.
In order to ensure that GRD continues to meet the needs and expectations of the community, this Needs
Assessment recommends that the City sustain and/or improve the performance in the following areas
that were identified as “high priorities” by the Priority Investment Rating (PIR).
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FACILITY / AMENITY PRIORITIES
Based the Priority Investment Rating (PIR), the following eight facilities/amenities were rated as high
priorities for investment:
• Multiuse paved trails (PIR=187)
• Indoor swimming pool (PIR=158)
• Community center (PIR=148)
• Multiuse unpaved trails (PIR=132)
• Open space conservation areas (PIR=113)
• ADA/senior accessible parks/walking trails (PIR=111)
• Shaded play areas (PIR=106)
• Small neighborhood parks (PIR=105)
PROGRAM PRIORITIES
Based on the priority investment rating (PIR), the following three activities/programs were rated as “high
priorities” for investment:
• Adult fitness and wellness programs (PIR=200)
• Exercise classes (PIR=151)
• Senior programs (PIR=113)
Source: ETC Institute 2019
Source: ETC Institute 2019
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ONLINE COMMUNITY SURVEY
In addition to the statistically-valid community survey, an online survey
(powered by SurveyMonkey) was conducted to better understand the
characteristics, preferences, and satisfaction levels of residents. The online
survey mirrored questions from the statistically-valid survey distributed by
ETC. This allowed residents that were not randomly selected for the ETC
survey the opportunity to be part of the community input process.
The survey was available from May to June 2020, and included versions in both English and Spanish. The
online survey received a total of 640 anonymous responses, which consisted of 613 taken in English and
27 completed in Spanish. The following is a summary of the findings:
COVID-19 IMPACT / COMMUNITY BENEFIT
• 74% of survey respondents believe that the COVID-19 pandemic has increased the household value
of recreation, parks, trails, and open space.
• 81% of survey respondents Agree or Strongly Agree that GRD makes Gilroy a more desirable place
to live
• 79% of those surveyed Agree or Strongly Agree that GRD provides volunteer opportunities for the
community.
• 79% of survey respondents Agree or Strongly Agree that GRD provides positive social interactions
for households
PARKS AND FACILITIES
• 94% of those surveyed have visited a City park or facility within the last year, with 74% visiting
at least once a week.
• 68% of respondents that visited a park or facility rate the quality as either Good or Excellent.
• Top three barriers for park visits include, Do not feel safe using parks/trails (42%), Lack of
restrooms (38%), and Lack of features we want to use (35%).
• Top three needs include; Multi use paved trails, large community parks, and multi-use unpaved
trails.
• The top three most important amenities include Multi-use paved trails, indoor swimming pool,
and multi-use unpaved trails.
MARKETING
• Top three marketing methods used to learn about recreation programs include the City
Recreation Guide (70%), City Website (58%), and Friends & neighbors (52%).
• Respondents indicated they would prefer to learn most through the City Recreation Guide (55%),
Emails (53%), and City Website (44%).
PROGRAMS
• 58% of respondents have participated in GRD programs in the last year, with 68% participating in
at least two programs per year.
• 91% of those surveyed rated the quality of programs as either Good or Excellent.
• Top three barriers for participation in programs include; I don’t know what is being offered (28%),
Too busy/not interested (25%), Program times are not convenient (22%).
• Top three program needs include: Community special events, adult fitness and wellness, and
exercise classes.
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• Most important programs include; adult fitness and wellness, swim lessons, and Youth sports
programs/camps.
POTENTIAL SUPPORT FOR MULTI-GENERATIONAL COMMUNITY CENTER
• If the City developed a multi-generational facility, survey respondents indicated the most used
recreation spaces would be: indoor swimming pool lap lanes, aerobics/fitness/gymnastics space,
and indoor walking/running track.
• Among those surveyed, funding of a potential facility has the most support at a 50%/50% split for
taxes and user fees, followed closely by 75% tax / 25% user fees.
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BENCHMARK ANALYSIS
Benchmarking is a great tool for evaluating how effective an organization is by comparing it to
competitors, similar agencies, and/or industry best practices. By looking outward, GRD can better
understand how well it is performing relative to industry norms. The goal of the analysis is to evaluate
how GRD is positioned among peer agencies, as it applies to efficiency and effectiveness practices.
Information was obtained from the National Recreation and Park Association’s (NRPA) Park Metrics
database and reflects data reported by park and recreation agencies from 2017-2019. This report focused
on information from the full NRPA database as well as the subset of similar sized agencies (serving 50K-
100K people), and information is provided at the lower quartile, median, and upper quartile levels for
comparison.
The Benchmark Analysis provides a comparison of key performance factors for GRD to evaluate its own
metrics against moving forward. As organizational changes continue to settle in for GRD, it will be
important for the GRD to track performance measures and assess them against industry benchmark levels.
The key performance metrics that were selected for analysis included:
• Park and Recreation FTEs per 10,000 residents
• Operating Expenditures per Capita
• Distribution of Operating Expenditures
• Park and Recreation Revenue per Capita
• Five-Year Capital Budget Spending
• Targets for Capital Expenditures
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SWOT ANALYSIS
The following tables describe the strength, weaknesses, opportunities, and threats (SWOT) of GRD that
were identified during the planning process. It is important to note, the SWOT Analysis was conducted
prior to the Covid-19 pandemic.
Strengths (Internal – May be able to control) Weaknesses (Internal – May be able to control)
• Seasonal Activity Guide reaches all Gilroy
households
• Experienced and adaptable recreation staff
with varied backgrounds and levels of expertise
• Accessible and affordable programs for all
residents
• Division-funded youth scholarship fund
• City-wide volunteer program
• Youth job development training / employment
opportunities
• Successful partnerships (GUSD, community-
based organizations, grass-roots, public
health, businesses)
• Programming for at-risk youth (i.e., Late Night
Gym, Pro-Com Tournaments, Public Safety
Partnerships)
• Support South County Youth Task Force (San
Ysidro/East Gilroy)
• New registration software that is more
customer service friendly, provides more
options and is easier to navigate
• Program offerings for non-residents
• Award-winning marketing/media promotions
• Multiple program locations/facilities in Gilroy
• In-house certified CPR, First Aid, AED,
lifeguards and lifeguard instructors
• High level of customer satisfaction and loyalty
• Provide free recreational opportunities at-risk,
disenfranchised and low-income children and
families
• Successful partnership with public safety
agencies
• Bilingual staff
• Offer culturally relevant programming
• Provide intergenerational programming
• Program fees could be increased for recreation
activities
• The non-resident fee is too low (Currently $10)
• Staff supports four commissions, impeding on
their ability to grow revenue generating
programs
• Strong WiFi not available at all city facilities.
• No long-term marketing strategy or plan
• Lack Spanish translation on many marketing
materials such flyers, email announcements,
and parks and facility reservation policies
• Staff is not active enough in CPRS District 4
meetings, conferences and trainings
• Lack of opportunities for customer feedback on
program experience
• Staff doesn’t do enough to “Tell our story”
using videos, images and social media outlets
• Lack of branding (name recognition)
• Lack of innovative and progressive programming
(e.g., pet-involved, surfing/paddle boarding)
• Retention of experienced p/t staff
• Not enough time spent recruiting new contract
instructors
• Long term programming for high profile grant
funded programs is threatened when grant ends
• No dedicated grant writer
• No participant membership fee that would
generate a steady revenue stream, similar to
Morgan Hill
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Opportunity (External–May not be able to control) Threats (External – May not be able to control)
• Potential San Jose Sharks ice-rink
development / partnership
• Potential development of an outdoor dirt bike
park and trails
• Dedicated Division Grant Writer
• Dedicated Marketing Coordinator
• Corporate sponsorships
• Dedicated handyperson to make repairs on
facilities
• Child care program at shopping outlets
• Employee registration discounts
• City-owned, year-round swimming pool
• Placement of marque/electronic billboard
with high visibility location
• Mobile Recreation Van to program in
neighborhoods
• Increase budget to reflect and serve growing
population
• Attract more regional participants in
programming and special events
• Aging city-owned facilities lack modern
amenities and accessibility
• Staffing levels, program budgets, and facilities
are limiting programming opportunities
• Pressure to generate more revenue but still serve
both affluent & low-income residents (income is
lowest in SCC)
• Gilroy residents participating in Morgan Hill
recreation programs
• Insurance requirements limit potential
contractors
• Trouble recruiting p/t staff due to low wages
• Losing p/t staff due to a City policy that doesn’t
allow more than 25 hours
• Length of time to recruit and onboard new
employees and volunteers (i.e., Human
Resources)
• Lack of facilities for recreation classes
• Lack of access to GUSD facilities and playgrounds
due to student priority use & to protect from
vandalism
• State funded Free Transitional Kindergarten
program, negatively affecting current ECR
enrollment
• Competition with state funded Power School
program (free afterschool and summer
programming)
• Increased competition from CBO’s, fitness/
sports clubs, travel teams and churches
• Lack of local jobs limiting commuters time to
participate in recreational opportunities
• Limited technological resources
• Limited ability to conduct outreach to at-risk &
disengaged children and youth
• New Division staffing, budget and organizational
situation
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PROGRAM ASSESSMENT
As part of the Needs Assessment, the consulting team conducted a Recreation Program Assessment for
GRD. The assessment offers an in-depth perspective of program and service offerings and helps identify
strengths, challenges, and opportunities regarding programming. The assessment also assists in
identifying core programs, program gaps within the community, key system-wide issues, areas of
improvement, and future programs and services for residents and visitors. The following are the key
highlights from the program assessment:
• A total of ten (10) Core Program Areas were established by the Division. Overall, the program
descriptions effectively communicate the key benefits and goals of each Core Program Area.
• Age segment distribution is good, but this needs to be monitored to ensure program distribution
aligns with community demographics, especially in regards to families and seniors. The Division’s
target audience has a strong family presence, while it is projected to experience an aging trend.
• The Classification of Programs analysis reveals the majority of the current mix is focused on
Value-Added services, which are the most sustainable offerings because they are supported by
user fees; however, these programs primarily benefit individual users. With less than 11% of
programs classified as Essential services, the Division must assess whether it is providing
sufficient opportunities for little to no cost that support the greater good of the community.
• The Program Lifecycle distribution reflects a mix of young and old programs offered by GRD.
While the majority of programs are in the early lifecycle stages, the saturation and decline stages
have a higher distribution of programs than recommended. It will be important to refresh the
programming mix with new, or revised, programs that backfill the beginning lifecycle stages as
existing programs begin to mature and reduce programs that are in decline.
• The Division’s volunteer program allows residents and organizations to easily get involved and
give back to the community through various volunteer opportunities, special events, programs,
etc. The Division must continue to evaluate and improve its formal volunteer policy by tracking
key performance data and trends.
• From a marketing and promotions standpoint, the staff utilizes a variety of marketing methods
when promoting their programs including: printed and online program guides, the Division’s
website, email blasts, online newsletter, in-facility signage, and social media channels as a part
of the marketing mix. The Division would benefit from identifying marketing Return on
Investment (ROI) for all marketing initiatives and there may be opportunities to increase the
number of cross-promotions.
• Currently, customer feedback methods are limited to only post-program surveys. Moving
forward, it is strongly recommended that the Division begins incorporating additional user
feedback on a consistent basis, as a key performance measure that can be tracked over time.
• Pricing strategies are varied across the different Program Areas and somewhat limited in the
variety of tactics utilized. The most frequently used approaches include differential pricing
based on residency and customer’s ability to pay. These are good practices and must be
continued, but there is a potential opportunity to incorporate a pricing strategy based on age
segments, prime versus non-prime times, and tying pricing strategies to cost recovery goals.
• Financial performance measures such as cost recovery goals have recently been implemented
and it will be important to effectively track the actual cost recovery performance and create
more well-defined cost recovery goals. Moving forward, staff must be sure to track direct and
indirect costs for programs down to the individual program offerings to better assess whether
the Division is meeting established goals.
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LEVEL OF SERVICE (LOS) ANALYSIS
Level of Service (“LOS”) standards matrix was developed during the planning process, which describes
the inventory for GRD and other similar providers (e.g. school district) in relation to the population
served. The LOS is an effective measure that can be used to support capital investment decisions related
to parks, facilities, and amenities.
In collaboration with GRD staff, the planning team developed the appropriate standard service level for
a variety of parks, facilities, and amenities. The level of service standards were applied to the current
population, as well as projections over the next five years to anticipate additional inventory that will be
necessary to meet needs for a growing population over the next five years.
Applying the facility standards to the service area, gaps and surpluses in park and facility/amenity types
are identified. Based on this methodology, it is recommended that the City add the following park acres,
trail miles, and amenities by 2024:
• 46 acres of Neighborhood Parks
• 9 acres of Community Parks
• 3 miles of Paved Trail
• 9.69 miles of Unpaved Trail
• 1 Park Shelter
• 2 Pavilions
• 2 Multipurpose Fields
• 3 Outdoor Basketball Courts
• 2 Splashpads
• 1 Outdoor Pool
• 56,300 SF of Indoor Community Recreation Space
• 29,380 SF of Indoor Aquatic Space
Park Type Gilroy
Inventory
School
Inventory
Total
Inventory
Meet Standard/
Need Exists
Meet Standard/
Need Exists
Mini/Pocket Parks 0.68 0.68 0.01 acres per 1,000 0.00 acres per 1,000 Meets Standard - Acre(s)Meets Standard - Acre(s)
Neighborhood Parks 42.40 42.40 0.76 acres per 1,000 1.50 acres per 1,000 Need Exists 41 Acre(s)Need Exists 46 Acre(s)
Community Parks 197.00 197.00 3.54 acres per 1,000 3.50 acres per 1,000 Meets Standard - Acre(s)Need Exists 9 Acre(s)
Total Developed Park Acres 240.08 - 240.08 4.32 acres per 1,000 5.00 acres per 1,000 Need Exists 38 Acre(s)Need Exists 54 Acre(s)
Undeveloped (Open Spaces)128.00 128.00 2.30 acres per 1,000 2.00 acres per 1,000 Meets Standard - Acre(s)Meets Standard - Acre(s)
Total Park Acres 368.08 - 368.08 6.62 acres per 1,000 7.00 acres per 1,000
TRAILS:
Paved Trails 11.69 11.69 0.21 miles per 1,000 0.25 miles per 1,000 Need Exists 2.21 Mile(s)Need Exists 3.00 Mile(s)
Natural Trails 5.00 5.00 0.09 miles per 1,000 0.25 miles per 1,000 Need Exists 8.90 Mile(s)Need Exists 9.69 Mile(s)
Total Trail Miles 16.69 16.69 0.30 miles per 1,000 0.50 miles per 1,000 Need Exists 11.11 Mile(s)Need Exists 12.69 Mile(s)
OUTDOOR AMENITIES:
Park Shelters 5.00 5.00 1.00 site per 11,121 1.00 site per 10,000 Need Exists 1 Sites(s)Need Exists 1 Sites(s)
Pavilions 2.00 2.00 1.00 site per 27,802 1.00 site per 15,000 Need Exists 2 Sites(s)Need Exists 2 Sites(s)
Youth Ball Fields 7.00 7.00 1.00 field per 7,943 1.00 field per 9,000 Meets Standard - Field(s)Meets Standard - Field(s)
Adult Ball Fields 3.00 3.00 1.00 field per 18,535 1.00 field per 20,000 Meets Standard - Field(s)Meets Standard - Field(s)
Rectangular Multi-Purpose Fields 6.00 6.00 1.00 field per 9,267 1.00 field per 7,500 Need Exists 1 Field(s)Need Exists 2 Field(s)
Basketball Courts 7.00 7.00 1.00 court per 7,943 1.00 court per 6,000 Need Exists 2 Court(s)Need Exists 3 Court(s)
Tennis 10.00 10.00 1.00 court per 5,560 1.00 court per 7,500 Meets Standard - Court(s)Meets Standard - Court(s)
Playgrounds 17.00 17.00 1.00 site per 3,271 1.00 site per 5,000 Meets Standard - Site(s)Meets Standard - Site(s)
Dog Parks 2.00 2.00 1.00 site per 27,802 1.00 site per 30,000 Meets Standard - Site(s)Meets Standard - Site(s)
Skateparks 1.00 1.00 1.00 site per 55,604 1.00 site per 60,000 Meets Standard - Site(s)Meets Standard - Site(s)
Splashpads - - 1.00 site per - 1.00 site per 30,000 Need Exists 2 Site(s)Need Exists 2 Site(s)
Outdoor Pools - 0.33 0.33 1.00 site per 168,497 1.00 site per 50,000 Need Exists 1 Site(s)Need Exists 1 Site(s)
INDOOR AMENITIES:
Indoor Recreation Space (Square Feet)22,714.00 9,126.15 31,840.15 0.57 SF per person 1.50 SF per person Need Exists 51,566 Square Feet Need Exists 56,300 Square Feet
Indoor Aquatic Space (Square Feet) - - - - SF per person 0.50 SF per person Need Exists 27,802 Square Feet Need Exists 29,380 Square Feet
55,604
58,760
Current Estimated Population
5-Year Projected Population
2019 Inventory - Developed Facilities 2019 Facility Standards 2024 Facility Standards
Current Service Level based
upon population
Recommended Service Levels;
Revised for Local Service Area
Additional Facilities/
Amenities Needed
Additional Facilities/
Amenities Needed
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FACILITY & PROGRAM NEEDS ASSESSMENT
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EQUITY MAPS
Equity Maps utilize level of service standards to assist City leadership and staff in assessing where services
are offered and determining equitable service distribution and delivery across the service area. These
maps provide a visual depiction of the effectiveness of the service as it pertains to the demographic
density. In addition, Equity Maps allow GRD to identify gaps and overlap in services with respect to a
specific park, trail, facility, or amenity. This assessment allows GRD to make appropriate capital
improvement and development decisions based on the population needs and the Equity Maps allow a
quick visualization of geographical areas that may be under/overserved. Equity Maps were developed
for each of the following major assets:
The shaded rings in the Equity Maps indicate the service level (i.e. the population being served by a
specific park type/facility/amenity) as outlined in the level of service matrix. Thus, the central point
inside the ring indicates the location of the facility or amenity. The ring extends out from the central
point based on the service reach of a particular park, facility, or amenity when compared to the
population nearby. Equity Maps are based on the size of a park / facility or the number of amenities at
a location, the established level of service standards, and the density of the surrounding population.
As can be seen, GRD is providing great access to Playgrounds, but is lacking any Indoor Aquatic Space.
The Equity Maps for various park and amenity types are in Section 5.6.
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C APITAL I MPROVEMENT P LAN
Due to unfavorable financial conditions, all capital improvements pertaining to parks and facilities have
been frozen until at least 2025. Under these circumstances, the planning of capital investments is
focused primarily on the backlog of existing needs and maintaining the quality and safety of the system.
For purposes of the Needs Assessment, no additional capital improvements can be suggested until the
freeze is released; however, additional needs will continue to accumulate due to existing level of service
deficiencies, increasing demand, facility / amenity lifecycle replacements, and recommendations in this
plan may not be applicable without access to funding.
Once the City resumes investing, it is recommended that the City maintains a Capital Improvement Plan
(CIP) related to parks and recreation facilities spanning a ten-year period, at a minimum, with
appropriations recurring on an annual basis. This approach maintains flexibility in order to maximize
efficiencies as the overall needs of GRD change from year to year.
EXISTING CIP OVERVIEW
The table below represents the existing CIP pertaining to GRD and details the site, project type,
estimated completion date, and projected cost. As mentioned, no projects are planned to resume until
after 2025. Many of these improvements are needed to address infrastructure needs and enhancements,
which should place a high priority on any structures that are failing as funding becomes available.
Planned CIP projects range from $50,000 to over $10 million, with a total estimated cost of nearly $27
million to satisfy existing needs.
Site Project Est
Completion
Projected
Cost
Christmas Hill Park Trail Wayfinding Signage Beyond FY25 87,300$
Christmas Hill Ranch Update / Complete Master Plan Beyond FY25 363,000$
Christopher HS Pool Replastering Beyond FY25 433,800$
City Bike Trails Updated Bike Master Plan Beyond FY25 251,100$
Farrell Park Develop Master Plan Beyond FY25 200,400$
Forest Street Park Park Expansion Beyond FY25 600,000$
Gilroy Golf Course Water Tank Replacement Beyond FY25 121,000$
Gilroy Sports Park Improvements Phase IV & V Beyond FY25 10,063,372$
Las Animas / Christmas Hill Softball Field Rehabilitation Beyond FY25 121,700$
Las Animas Park Misc Facility Rehabilitation Beyond FY25 2,503,600$
Lions Creek Trail Development - West of Santa Teresa & Day Beyond FY25 1,240,600$
Lions Creek Trail Development - West Gap Closure Beyond FY25 3,022,800$
Miller / Uvas Creek Trail Pedestrian Improvements Beyond FY25 604,400$
Miller Park Restrooms Electrical Undergrounding Beyond FY25 81,400$
San Ysidro Park Healthy Living Enhancement Beyond FY25 3,021,600$
Senior Center Roof Replacement Beyond FY25 135,000$
Senior Center ADA Restrooms Beyond FY25 50,000$
Uvas Creek Park Preserve Develop Master Plan Beyond FY25 235,800$
Wheeler Center HVAC & Electrical Upgrades Beyond FY25 654,500$
Wheeler Center Evacuation Center Upgrades Beyond FY25 240,000$
Wheeler Center Trellis Replacement Beyond FY25 2,923,800$
Total Total CIP Investment 26,955,172$
Planned Capital Improvements for Parks and Recreation
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FACILITY & PROGRAM NEEDS ASSESSMENT
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VISIONING AND RECOMMENDATIONS
The Consulting Team conducted a visioning workshop with GRD leadership to determine the identity of
the organization and chart a path moving forward. Using this iterative process along with community
input, demographics and trends, and an analysis of GRD’s offerings and levels of service, the Mission,
Vision, and Core Values of the organization were established. These defining characteristics of the
organization were then used to guide the development of a strategic action plan for GRD.
MISSION & VISION STATEMENTS
CORE VALUES
These represent the organization’s personality and establishes the virtues that staff strive to uphold:
Equity & Inclusion, Community Centered, Fun, and Health & Wellness.
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STRATEGIC ACTION PLAN
The following were the major recommendations that were developed through the Visioning Process. Key
strategies were established across four focus areas: Programming, Facilities & Amenities, Maintenance
& Operations, and Funding.
PROGRAMMING STRATEGIES
• Add fee-based programs targeting adults 18-54. This will address an unmet service need for a
large segment of the population and should include programs in Fitness, Aquatics, and the Arts.
• Restore key programs at 100% CR. Programs that are vital to the Gilroy community, such as
Preschool, Soccer League, and Basketball League, should be reinstated based on pricing to
achieve full cost recovery.
• Add more Family Programs. GRD is primed for offering programs that cater to the large
presence of multi-generational households and families, which could include programs like
Family Night, Movie Nights, Overnights in the Park.
• Keep up with new program trends. Continue to evaluate new and emerging program trends that
serve the community’s needs e.g. Virtual Programs and ESports / innovative senior programs etc.
• Increase Community Special Events. Gilroy residents really enjoy events that bring the
community together and celebrate culture. Also, adding more special events ties into GRD’s
mission, “to bring people and community together.”
• Add more youth/teen programs. GRD provides an important outlet for youth / teens and should
explore additional programs in: Arts, STEM, Nature Education, Leadership, Outdoor Birthday
Parties, and Drop-in Youth Centers.
• Launch a Mobile Rec Van. This would allow GRD to meet program participants anywhere in the
community, expand its current lineup of programs, and reduce reliance on City parks and
facilities to deliver programs.
• Recruit 5-8 new contract instructors each year. This initiative will help GRD freshen its
programs and provide offerings that are relevant for users.
• Use more digital advertising to promote programs. An enhanced marketing effort will greatly
improve GRD’s ability to create awareness and optimize program participation. Some
recommended digital platforms include Facebook, PeachJar, and Google Ads.
STRATEGIES FOR FACILITIES & AMENITIES
• Senior Center Transformation. A quick solution to addressing unmet needs for facility space
dedicated to recreation programs in the City is to transform the existing Senior Center into a
multi-generational community center with expanded services for all ages. This transformation
could be implemented in the short term without the burden of capital investment for the
development of a new facility or major renovation to existing facilities.
• Renovate Wheeler Center. Once capital funding becomes available, the Wheeler Center should
be a high priority for investment. In its current condition, the facility is most in need of air
conditioning, HVAC updates, and updated program spaces
• Create a Downtown Park. As the City looks to revitalize downtown, GRD should be an integral
component by investing in new development or a popup park that can host recreation
programming and serve as a community gathering place for small events.
• Redesign tennis courts at El Roble Park. This site is in need of a facelift and a repurposing of
the courts could allow GRD to provide more trending programs, such as pickleball or futsal.
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FACILITY & PROGRAM NEEDS ASSESSMENT
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• Conduct feasibility study for Center and Pool. Throughout the community input process, the
need for additional facilities in the form of an indoor community center and aquatics was loud
and clear, so a feasibility study would be due diligence for evaluating potential options. Some
potential options that currently exist would be new facility development at Sunrise Park or
expanding the use of the Senior Center.
• Build a splash pad and/or pool. Based on the level of service analysis and feedback from the
community, there is a significant need for a splash pad and/or an outdoor pool. If conducted, a
feasibility study should include recommendations on where to develop a new splash pad and/or
pool.
• Add bathrooms to Sunrise Park and El Roble Park. These locations generate significant traffic,
but the length of experience for users is often cut short due to the lack of restroom facilities.
• Upgrade Christmas Hill Temporary Environmental Education Center (TEEC) facility for better
utilization. This would include renovations to improve technology, replace flooring, update
classrooms, and create more program spaces for teens.
• Add large pod of outdoor basketball courts. Basketball is a popular sport in the community and
the level of service analysis identifies a need for at least 2-3 more courts in the near future,
which would be best addressed by adding a large pod that can serve as a community hub for
basketball.
MAINTENANCE & OPERATIONS STRATEGIES
• Upgrade Wheeler Center. As previously mentioned, the Wheeler Center is one of the immediate
maintenance and improvement needs for the City that directly impacts GRD’s ability to provide
quality programs. Existing facility shortcomings include: AC, locker rooms, stage, dance room,
deep cleaning, and fresh paint.
• Establish dedicated janitor / handyman position. This would greatly improve facility upkeep
and remove some of the challenges associated with operating programs at dated facilities.
• Add evening operating hours at facilities. By adding operating hours in the evening hours at an
existing facility, such as the Senior Center, or at a new facility, GRD could provide a more robust
program mix and can better meet demand for adult programs.
• Increase security at parks and facilities. Due to the tragic events that took place at the Garlic
Festival, safety and security at parks and facilities is of the utmost importance to regain the trust
of Gilroy residents using public spaces.
• Add program registration stations in facility lobbies. This will improve the existing registration
capabilities of GRD and create a higher level of customer service that is highly visible with users
of City facilities.
FUNDING STRATEGIES
• Evaluate fees and charges / memberships model for recurring revenue. As part of budget
cuts, a significant portion of GRD programs were eliminated; however, there is potential to
reintroduce programs that can maintain a sustainable cost recovery level through effective
pricing that takes into account the cost of providing programs and established cost recovery
goals. GRD could also increase its revenue generation by implementing a membership model for
facility use or program participation, but this would likely require some improvements to existing
facilities or the development of new ones.
• Add grant writing support. Due to limited funding through the general fund, a key source of
alternative funding for GRD could be realized through better grant writing capabilities. This
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could include adding a dedicated position or sharing grant writers from other City departments
to focus on generating more grant revenues for GRD.
• Establish a Foundation. GRD could benefit greatly from establishing a foundation that is
dedicated to raising money for recreation and supporting a youth scholarship program. This is a
common approach for parks and recreation agencies that the City should explore.
• Secure funding for park and facility development / upgrades. Although capital funding has
been frozen for the near future, City facilities will continue to deteriorate and this directly
impacts the ability of GRD to provide services. Potential facility improvements that should be
prioritized if/when funds become available include: The Wheeler Center, a new Community
Center, TEEC, park restrooms, and pickleball courts.
• Seek more support from council and emphasize balance between cost recovery and satisfying
unmet program needs of the community. While cost recovery is an important measure of
performance, this should not be the only determinant of success of GRD. In many cases,
recreation programs are essential to the well being of the community and, therefore, some
programs should be subsidized because they are for the greater good of the community. GRD
must ensure that council members are proponents of the Division by following the cost of service
model that takes into consideration benefits received by residents.
• Identify more non-tax revenue sources. As funding challenges continue to persist, GRD must
secure alternative funding sources to offset the operational deficit, such as grants, sponsorships,
and partnerships with local businesses / organizations.
• Explore tax / bond measure dedicated to operating expenses of GRD. As described in the
funding strategies section, GRD can establish recurring tax support for its operational costs
through a dedicated bond. This will require careful planning and campaigning to ensure enough
support exists to pass a referendum vote. If passed, a dedicated tax / bond would allow GRD to
thrive without competing with other City departments for general tax fund dollars.
CONCLUSION
The pandemic, and the organizational changes that followed, caused significant setbacks for GRD;
however, much like the Gilroy community, GRD is resilient and ready to embrace a new future. The
findings from this Assessment indicate strong support for recreation in the City, and the extensive
planning process resulted in a strategic roadmap for GRD to follow as it enters a new era.
Successful implementation of the strategies outlined in the Assessment will require GRD to be agile and
adapt as it strives to meet the recreation needs of residents. This will likely require GRD to rely more
on contract instructors, partnerships with outside organizations, and alternative funding sources. GRD
will continue to provide recreation programs to the best of its ability while also supporting essential
community efforts that are not related to recreation. Simply put, the goal for GRD is to find ways to
expand offerings to reach more people of all ages and backgrounds, while working within the current
constraints.
Gilroy is a vibrant community with residents that value the recreational opportunities provided through
GRD. Using the strategic recommendations from this Assessment as a guiding light, GRD is poised to
overcome adversity and continue enriching the lives of residents through recreation.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Rescinding of Gilroy City Council Resolution 2019-70 City Housing
Loans for Executive and Appointed Positions (Adopting a Policy for
the Provision of Housing Loans to Newly Appointed City Officers,
Deputy City Administrator, Department Heads and/or Department
Directors)
Meeting Date: February 22, 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
Adopt a resolution to rescind resolution 2019-70 adopted on October 28, 2019 that
adopted a policy for the provision of housing loans to newly appointed City Officers,
Deputy City Administrator, Department Heads, and/or Department Directors.
BACKGROUND
In October 2019, the City Council adopted a resolution implementing a policy for the
establishment of a Housing Assistance Program for Newly Appointed Charter Officers,
the Deputy City Administrator and Department Heads.
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The intent of the program was to encourage the employees to seek housing in the
Gilroy city limits and to provide a recruitment tool for attracting applicants for City
vacancies.
The basics of the housing program included:
1. Eligible employees include Council-appointed and deputy city
administrator/department head positions.
2. Up to $800,000 loan (adjusted annually for inflation) for either down payment
assistance or purchase of a home in the Gilroy city limits.
3. 30-year repayment term.
4. Local Agency Investment Fund (LAIF) interest rate as of the month prior to
execution of the loan documents plus .25%. The rate as of this Council meeting
would be 2.56% and would be fixed for the term of the loan.
5. Loans shall be secured to the satisfaction of the City Administrator, City Attorney,
and Finance Director evidenced by a promissory note secured by a Deed of
Trust.
6. Employee will have 12 months to re-pay the loan should the executive manager
separate City employment for any reason.
ANALYSIS
To date, this program has never been utilized and it is not anticipated that current City
Administration would offer such loans to employment candidates.
Rescinding resolution 2019-70 would terminate the Housing Assistance Program for
Newly Appointed Charter Officers, the Deputy City Administrator and Department
Heads.
With current lending rates at all-time lows, and the City’s recent financial challenges,
Council should consider the merit of continuing such program.
ALTERNATIVES
Council could decide to continue the housing program.
FISCAL IMPACT/FUNDING SOURCE
None.
Attachments:
1. Resolution 2019-70
2. Resolution to Rescind Resolution 2019-70
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RESOLUTION NO.2019-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
ADOPTING A POLICY FOR THE PROVISION OF HOUSING LOANS
TO NEWLY APPOINTED CITY OFFICERS, DEPUTY CITY
ADMINISTRATOR, DEPARTMENT HEADS AND/OR DEPARTMENT
DIRECTORS
WHEREAS, the recruitment and hiring of qualified high-level management employees is
essential to the efficient operation of the government of the City of Gilroy ("City"); and
WHEREAS, housing costs, the relative unavailability of new housing, and current housing
financing conditions in the San Francisco Bay Area, and particularly in the City and adjacent cities,
continue to be a significant disincentive to persons relocating to this area and an obstacle to the
recruitment and hiring of qualified high-level management employees; and
WHEREAS, these conditions are not only an obstacle to recruiting and hiring qualified high-
level employees, but also tend to discourage those employees from living in the City; and
WHEREAS, the City Council believes that the interests of the City would be best served by
encouraging new City Council appointed officers, deputy city administrator and department heads
and/or department directors to live inGilroy to ensure their ready availability and familiarity with the
Community; and
WHEREAS, the City regularly invests its funds in a variety of financial securities are varying
earning rates, some of which may be below current mortgage rates; and
WHEREAS, a portion of the City's reserves may be utilized to accomplish the intent of the
City Council to promote the recruitment and hiring qualified high-level employees and to encourage
those employees to live in the City of Gilroy and still produce equivalent investment income; and
WHEREAS, the City Council desires to adopt a policy and guidelines to provide financing
assistance in appropriate cases to newly appointed City Council officers, deputy city administrator,
department heads and/or department directors to assist those employees in purchasing a residence
within the City; and
WHEREAS, in order to continue to promote the objectives described in this resolution, the
City Council desires to create the Executive Recruitment Housing Program to provide housing
assistance to accommodate changing market conditions and hiring needs; and
that:
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Gilroy
SECTION 1
The City Council finds that the recruitment and hiring of qualified high-level employees to fill the
positions of newly appointed City Council officers, deputy city administrators, department heads
and/or department directors (hereinafter "Employee or Employees")is of key importance to the
RESOLUTION NO.2019-70
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functioning of the City government, that it is in the interest of the City to encourage such
Employees to live within the City, that the provision of housing assistance may, in certain cases,
enhance the ability to accomplish these purposes, and that housing assistance can be provided
without significantly affecting the financial status of the City.
SECTION 2
The City Council hereby declares that it is the policy of the City, in appropriate cases, to assist
Employees to reside within the City by making available, as an additional benefit of
employment, a secured loan of City funds to acquire local housing when necessary to secure the
Employee's service. The need for housing assistance shall be reviewed on an individual basis
and shall not be available as a matter of right to any newly appointed Employee. In addition, the
terms of any loan offered pursuant to this policy shall be negotiated based upon the individual
circumstances surrounding the appointment of each Employee, provided that the loan terms are
consistent with the provisions of this resolution.
SECTION 3
Loans made pursuant to this policy shall be available only upon the following terms and
conditions, and any consistent terms and conditions deemed reasonable by the City:
a) Eligible Positions. Only Employees after the adoption of this resolution are eligible for
housing loans under this program.
b) Employment Agreement Required. Loans shall be a benefit of employment in
consideration for an Employee's services, documented in a separate written agreement
entered into at or near the time of initial appointment. Employees offered housing loans
must purchase housing within the first twelve (12) months of the employment start date
or shall be ineligible to receive a housing loan under this program. Such loan agreement
shall be reviewed by the City Attorney as to form and approved by the City Council.
c) Loan Amount. Loans shall not exceed $800,000 as of October 1, 2019 and may be
adjusted annually according to the San Francisco Area Consumer Price Index (CPI-U) as
of October 1 of each subsequent year.
d) General Loan Requirements. Loans offered pursuant to this program shall be available
only under all of the following conditions:
i) The loan is solely for purchase of residential property within the City
ii) The new home shall be used as the principal residence of the Employee;
iii) Loans are conditioned on future performance of substantial service by the
Employee and shall be due and payable in full upon sale or transfer of the
property by the Employee and within six (6) months of either the termination for
any reason of the Employee's employment with the City or termination of the use
of the property as the principal residence of the Employee, whichever occurs first.
If the Employee should retire on disability or die during the period of the loan, the
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loan shall be due and payable in full within six (6) months of the date of disability
or death;
iv) Loans shall not be assignable or transferrable; and
v) At the time of purchase, the loan to appraised value of the residence should not
exceed 80%.
e) Tax Treatment of Loans. Employees are strongly encouraged to seek independent advice
from their own tax professional regarding the tax implications regarding the loans issued
pursuant to this policy.
f) Loan Security. Loans shall be secured to the satisfaction of the City Administrator, City
Attorney, and Director of Finance and evidenced by a promissory note secured by a Deed
of Trust.
g) Interest Rate. Loans shall have a fixed interest rate and shall be established in accordance
with the rate of return of the California Local Agency Investment Fund (LAIF)
administered by the California State Treasurer and will be based on the prevailing LAIF
rate of return on the last valued date prior to making the loan. In no event shall any loan
be for a term exceeding 30 years.
h) Refinance Requirements. If at any time during the term of a loan, commercial or other
applicable financing becomes available at or below the interest rate applicable to the
City loan, the employee shall refinance and retire the City loan.
i) Source of Loan Funding. Loans shall only be made from City funds which would
otherwise be available and invested in financial securities with varying rates of return.
SECTION 4.
In hiring and appointing the Employee, the City Administrator is authorized to act in
accordance with the policy described in this resolution as necessary to fulfill recruitment and
hiring needs for those Employees. The City Administrator is authorized to determine in each
case whether to offer housing assistance as an additional benefit of employment and the terms of
any assistance provided. Any loan shall be consistent with the provisions of Section 3 of this
resolution, however, the City Administrator may impose additional and/or more restrictive
conditions than those in Sections 3.
PASSED AND ADOPTED this 21St day of October, 2019 by the following roll call vote:
AYES: COUNCILMEMBERS:
TUCKER, and VELASCO
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
BRACCO, LEROE-MUNOZ, TOVAR,
BLANKLEY, MARQUES
NONE
RESOLUTION NO. 2019-70
4836-9460-7530v2
JH104706083
10.C.a
Packet Pg. 163 Attachment: Resolution 2019-70 (3169 : Resolution 2019-70)
APPROVED: 44-,
Roland Velasco, Mayor
ATTEST:
Freels,
RESOLUTION NO. 2019-70
4836-9460-7530v2
JH104706083
10.C.a
Packet Pg. 164 Attachment: Resolution 2019-70 (3169 : Resolution 2019-70)
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2019-70 is an original resolution, or true and correct copy of a city
Resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said held on
Council held on the 21 st
day of October, 2019, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of,Gilroy this 28"' day of October, 2019.
SL Free s,
City Clerk of the City of Gilroy
Seal)
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Packet Pg. 165 Attachment: Resolution 2019-70 (3169 : Resolution 2019-70)
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
RESCINDING RESOLUTION 2019-70 WHICH ADOPTED A POLICY FOR
THE PROVISION OF HOUSING LOANS TO NEWLY APPOINTED CITY
OFFICERS, DEPUTY CITY ADMINISTRATOR, DEPARTMENT HEADS
AND/OR DEPARTMENT DIRECTORS
WHEREAS, the City of Gilroy (“City”) adopted resolution 2019-70 on October 21, 2019
by a 5-2 vote; and
WHEREAS, since that adoption, the City has reduced expenditures, reduced its’
workforce, and implemented measures to ensure a sustainable operating budget; and
WHEREAS, the housing loan program detailed in resolution 2019-70 has never been
utilized, nor is it anticipated to be utilized in the future, and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy
rescinds City of Gilroy City Council Resolution 2019-70 and eliminates the Policy for the
Provision of Housing Loans to Newly Appointed City Officers, Deputy City Administrator,
Department Heads and/or Department Directors.
PASSED AND ADOPTED this 22nd day of February, 2021 by the CITY COUNCIL OF
THE CITY OF GILROY by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
10.C.b
Packet Pg. 166 Attachment: Resolution to Rescind Resolution 2019-70 (3169 : Resolution 2019-70)
RESOLUTION NO. 2021-XX \
Shawna Freels, City Clerk
10.C.b
Packet Pg. 167 Attachment: Resolution to Rescind Resolution 2019-70 (3169 : Resolution 2019-70)
City of Gilroy
STAFF REPORT
Agenda Item Title: Consideration of a Resolution of the Council of the City of Gilroy
Expressing Support for Actions to Further Strengthen Local
Democracy, Authority, and Control as Related to Local Zoning and
Housing Issues
Meeting Date: February 22, 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
Adopt a resolution expressing the City's support of efforts to retain and strengthen local
authority and control as related to local zoning and housing issues.
BACKGROUND
Each city has its own unique characteristics and community, and its land use and
zoning are best assessed by their local elected officials and government.
The purpose of land use planning and zoning is to be able to regulate and to monitor
land and property markets to ensure complementary uses and to address cumulative
infrastructure and environmental impacts. Growth must be paced, evaluated, measured,
and planned for what is unique to the city and community and its best interests.
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In recent years, the legislature of the State of California has proposed numerous bills
the limit and/or eliminate the authority of local jurisdictions to determine its own land use
policies and best practices that best suit their cities and residents.
Cities are being asked to respond to state legislation that challenges the principle of
local control over important issues such as land use, housing, finance, infrastructure,
elections, labor relations and other issues directly affecting cities.
Legislation introduced 2017-2020 by the state legislature has continually threatened
local control in contrast to the principle of governmental subsidiarity. This has included,
but not been limited to:
• Senate Bill 649 (Hueso) Wireless Telecommunications Facilities (“SB 649”) in
2017
• Assembly Bill 252 (Ridley-Thomas) Local government: taxation: prohibition: video
streaming services (“AB 252”) in 2017
• Senate Bill 827 (Wiener) Planning and Zoning: Transit -Rich Housing Bonus (“SB
827”) in 2018
• Senate Bill 50 (Wiener) Planning and Zoning: housing development: incentives
(“SB 50”) in 2019; and
• Senate Bill 1120 (Atkins) Subdivision: tentative maps (“SB 1120”) in 2020
SB 649 would have allowed the use of small cell wireless antennas and related
equipment without a local discretionary permit in all zoning districts as a use by-right,
subject only to an administrative permit. SB 649 passed out of the State Assembly and
the State Senate despite over 300 cities and 47 counties in California providing letters
of opposition. Ultimately, Governor Brown vetoed the bill.
AB 252 would have prohibited any tax on the sale or use of video streaming services,
including sales and use taxes and utility user taxes. Prior to its first Committee hearing
in 2017, AB 252 received opposition letters from 37 cities, the League of California
Cities, South Bay Council of Governments, California Contract Cities Association, and
nine other organizations. This bill failed in the Assembly Revenue and Taxation
Committee 8-0-2, which the author of the Committee chaired.
In 2018, SB 827 was introduced and would have overridden local control on housing
development that was within ½ mile of a major transit stop or ¼ mile from a high -quality
bus corridor as defined by the legislation with some limi tations. On April 17, 2018, SB
827 failed in the Senate Transportation and failed to move forward during the legislative
cycle.
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In 2018, the City of Beverly Hills sponsored a resolution adopted by the League of
California Cities (“League”). The resolution called for the League to assess the
increasing vulnerabilities to local authority, control, and revenue. It also called for the
League to explore the preparation of a ballot measure and/or constitutional amendment.
In 2019, Senator Wiener reintroduced many of the provisions contained in SB 827 in SB
50. The League of California Cities, working in concert with numerous jurisdictions and
state elected officials, were able to secure a narrow defeat of this bill in the state Senate
in January 2020.
In 2020, Senate Pro Tem Toni Atkins introduced SB 1120, which would have, among
other things, required a proposed housing development containing two residential units
to be considered ministerially in zones where allowable uses are limited to single -family
residential development. This bill passed out of the State Senate in 2020. It was then
amended in the State Assembly and passed out of the State Assembly extremely late
on August 31, 2020. Due to the midnight deadline to pass bills on August 31, 2020, the
State Senate was unable to vote on this bill to send it to the Governor’s desk for
signature. SB 1120 is returning in 2021 as SB 7 by Senate Pro Tem Atkins.
ANALYSIS
State legislators have indicated they will continue to introduce legislation that will
override local zoning ordinances for the development and production of affordable
housing in conjunction with mixed use and/or luxury condominium and apartment
housing.
RECOMMENDATION
On February 10, 2021, the Mayor and each City Council Member in Gilroy received an
email from a representative of Council Member Michael Griffiths from the City of
Torrance requesting participation in a resolution adopted by each city expressing its
opposition to various proposed housing legislation and to express support for actions to
further strengthening local democracy, authority, and control.
This resolution has been adopted by 45 California cities including Palo Alto*, Roseville,
and Atherton.
ALTERNATIVES
Council could decide to not adopt the resolution.
FISCAL IMPACT/FUNDING SOURCE
Adoption of the proposed resolution alone would have no fiscal impact at this time.
NEXT STEPS
Following adoption, the resources involved with this action could range from minor to
significant depending upon further steps directed by the City Counc il for legislative and
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Packet Pg. 170
other forms of advocacy. This action may also affect the City’s strategy on other
legislative matters.
*It should be noted that a significant amount of this staff report was replicated from a staff report
submitted to the City of Palo Alto City Council on February 1, 2021.
Attachments:
1. Local Control Resolution
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RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
EXPRESSING SUPPORT FOR ACTIONS TO FURTHER STRENGTHEN
LOCAL DEMOCRACY, AUTHORITY, AND CONTROL AS RELATED
TO LOCAL ZONING AND HOUSING ISSUES
WHEREAS, the legislature of the State of California each year proposes, passes, and has
signed into law a number of bills addressing a range of housing issues; and
WHEREAS, the legislature of the State of California does not allow sufficient time
between each legislative cycle to determine if the legislation is successful in bringing about the
change for the State of California’s housing issues; and
WHEREAS, the majority of these bills usurp the authority of local jurisdictions to
determine for themselves the land use policies and practices that best suit each city and its
residents and instead impose mandates that do not take into account the needs and differences of
jurisdictions throughout the State of California; and
WHEREAS, the ability of local jurisdictions to determine for themselves which projects
require review beyond a ministerial approval; what parking requirements are appropriate for
various neighborhoods within their jurisdiction; what plans and programs are suitable and
practical for each community rather than having these decisions imposed upon cities without
regard to the circumstances of each individual city; and what zoning should be allowed for
residential properties is a matter of great import to the City of Gilroy among other items related
to local zoning and housing issues; and
WHEREAS, the City Council of the City of Gilroy feels strongly that our local
government is best able to assess the needs of our community and objects to the proliferation of
State legislation that deprives us of that ability;
NOW, THEREFORE IT BE RESOLVED, the Council of the City of Gilroy resolves
as follows:
Section 1. The City of Gilroy is opposed to the current practice of the legislature of the
State of California of continually proposing and passing multitudes of bills that directly impact
and interfere with the ability of cities to control their own destiny through use of the zoning
authority that has been granted to them.
10.D.a
Packet Pg. 172 Attachment: Local Control Resolution (3198 : Resolution in Support of Local Legislative Control)
RESOLUTION NO. 2021-XX \
Section 2. The City of Gilroy will explore various ways to protect the ability of cities to
retain local control over zoning as each individual city within the State of California is best
suited to determine how the zoning in their city should be allocated in order to meet the housing
needs of the community.
Section 3. The City Clerk shall certify to the adoption of this resolution and shall cause
this resolution and his/her certification to be entered in the Book of Resolution of the Council of
this City.
PASSED AND ADOPTED this 22nd day of February, 2021 by the CITY COUNCIL OF
THE CITY OF GILROY by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
Shawna Freels, City Clerk
10.D.a
Packet Pg. 173 Attachment: Local Control Resolution (3198 : Resolution in Support of Local Legislative Control)