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Home My WebLink About2020-04-06 City Council Regular Meeting Agenda Packet April 6, 2020 11:13 AM City Council Regular Meeting Agenda Page1 MAYOR Roland Velasco COUNCIL MEMBERS Marie Blankley Dion Bracco Peter Leroe-Muñoz Carol Marques Fred Tovar Cat Tucker CITY COUNCIL AGENDA CITY OF GILROY CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET GILROY, CA 95020 REGULAR MEETING 6:00 P.M. MONDAY, APRIL 6, 2020 CITY COUNCIL MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org VIEW THE MEETING LIVE ON THE CITY WEBSITE www.cityofgilroy.org. PUBLIC PARTICIPATION IN THIS MEETING WILL BE LIMITED. MEMBERS OF THE PUBLIC ARE ENCOURAGED TO PARTICIPATE BY EMAILING ALL PUBLIC COMMENTS TO THE CITY CLERK shawna.freels@cityofgilroy.org OR BY LEAVING A VOICE MESSAGE COMMENT BY CALLING (408) 846-0204, PRIOR TO 5:00 P.M. APRIL 6, 2020. THE APRIL 6, 2020 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 will be offering telephone and email options for public comments at this meeting. The public is encouraged to participate in this meeting by telephone or email as follows: You are strongly encouraged to watch the City Council meeting live on the City of Gilroy’s website at www.cityofgilroy.org or on Cable Channel 17. To view from the website, select the Council Agendas and Videos button from the home page. PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL.COMMENTS MAY BE EMAILED TO THE CITY CLERK PRIOR TO OR DURING THE MEETING AT shawna.freels@cityofgilroy.org AND MUST BE RECEIVED BEFORE THE MAYOR OPENS PUBLIC COMMENT FOR THE ITEM. ADDITIONALLY, COMMENTS MAY BE MADE BY LEAVING A VOICE MESSAGE AT (408) 846-0204, PRIOR TO 5:00 P.M. APRIL 6, 2020. IMPORTANT: identify the Agenda Item Number or PUBLIC COMMENT in the subject line of your email. The City Clerk will read the first three minutes of each email into the public record. In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contac t the City Clerk a minimum of 2 hours prior to the meeting at (408) 846-0204. City Council Regular Meeting Agenda 04/6/2020 Page2 If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judi cial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. The City Council meets regularly on the first and third Monday of each month, at 6:00 p.m. If a holiday, the meeting will be rescheduled to the following Monday, with the exception of the single meeting in July which lands on the first day of the month not a holiday, Friday, Saturday or Sunday. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 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 III. PRESENTATIONS TO THE COUNCIL City Council Regular Meeting Agenda 04/6/2020 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 04/6/2020 Page4 IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Gilroy Downtown Business Association Board (alternate), Gilroy Sister Cities Association (alternate), Santa Clara Co. Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Planning Advisory Committee (alternate), South County Regional Wastewater Authority Board, South County Youth Task Force Policy Team (alternate), Street Nami ng Committee Council Member Tucker –CalTrain Policy Group, Cities Association of Santa Clara Co. Board of Directors, General Plan Advisory Committee, Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board , Street Naming Committee, Visit Gilroy Board Council Member Blankley - ABAG (alternate), Cities Association of Santa Clara Co. Board of Directors (alternate), Economic Development Corporation Board, Gilroy Sister Cities Association, Gilroy Youth Task Force (alternate), SCVWD Joint Council-SCRWA- Board Water Resources Committee, South County Regional Wastewater Authority Board, VTA Board of Directors Alternate, VTA Policy Advisory Committee, VTA South County City Group Council Member Marques - Gilroy Downtown Business Association Board, Gilroy Gardens Board of Directors, Santa Clara Valley Habitat Agency Governing Board (alternate), Santa Clara Valley Habitat Agency Implementation Board (alternate), Silicon Valley Clean Energy JPA Board (alternate), URM Task Force Sub-Committee, VTA Committee for Transit Accessibility (alternate) Council Member Tovar –Santa Clara Co. Expressway Plan 2040 Policy Advisory Board, Recycling and Waste Reduction Commission, Santa Clara Co. Library JPA (alternate), SCVWD Water Commission (alternate), Silicon Valley Clean Energy JPA Board, South County Regional Wastewater Authority Board, South County United for Health, Street Naming Committee, VTA Committee for Transit Accessibility, VTA Policy Advisory Committee (alternate) Council Member Leroe-Muñoz - ABAG, CalTrain Policy Group (alternate), Gilroy Youth Task Force, Historic Heritage Committee, SCVWD Water Commission, Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force Policy Team, VTA Mobility Partnership Mayor Velasco - Economic Development Corporation Board, General Plan Advisory Committee, Historic Heritage Committee (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Sout h County Joint Planning Advisory Committee, South County Regional Wastewater Authority Board (alternate), URM Task Force Sub-Committee, VTA Mobility Partnership, VTA South County City Group (alternate) V. FUTURE COUNCIL INITIATED AGENDA ITEMS VI. CONSENT CALENDAR (ROLL CALL VOTE) All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears. City Council Regular Meeting Agenda 04/6/2020 Page5 A. Certificate of Commendation for Eagle Scout Benjamin Summers B. Minutes of the March 16, 2020 Regular Meeting C. Approval of a Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payment Securi ty Bonds for Property Improvement Agreement No. 2016-01, Hecker Pass Heartland Estates Phase II Tract 10315 D. Approval of On-Call Consultants List for Engineering and Design Support Services, Project No. 20-RFQ-PW-329 E. Rescheduling of the Public Heari ng Regarding the Annual Weed Abatement Program Setting the Hearing Date as May 4, 2020 F. Adoption of an Ordinance of the City Council of the City of Gilroy Approving Zone Change Application Z 19-03 to Remove a Planned Unit Development Overlay District De signation from a Single-Family Residential (R-1) Zoned Parcel at a Property Located at 95 Farrel Avenue, APN 790 -07- 007, Applicant Michael Kuang (Z 19-03) (Introduced 3/16/2020 with a 7-0 vote) G. Claim of Esau Jimenez (The Interim City Administrator reco mmends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) H. Claim of Karina Cruz on behalf of James Evan Cruz Coronado (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) I. Claim of Stacy Flores (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) VII. BIDS AND PROPOSALS - NONE VIII. PUBLIC HEARINGS - NONE IX. UNFINISHED BUSINESS A. Adoption of an Ordinance of the City Council of the City of Gilroy Prohibiting Evictions for the Nonpayment of Rent for Tenants Impacted by the COVID-19 Emergency and Setting Forth the Facts Constituting the Need for Such Relief (Introduced 3/24/2020 w ith a 4-3 vote; Council Members Blankley, Bracco and Velasco voting no) 1. Staff Report: Jimmy Forbis, Interim City Administrator 2. Public Comment 3. Possible Action: Adopt an Ordinance of the City Council of the City of Gilroy prohibiting evictions for the nonpayment of rent for tenants impacted by the COVID-19 emergency and setting forth the facts constituting the need for such r elief. B. Consideration of Financial Support for Local Community Programs During the COVID-19 Pandemic City Council Regular Meeting Agenda 04/6/2020 Page6 1. Staff Report: Jimmy Forbis, Interim City Administrator 2. Public Comment 3. Possible Action: Approve financial support for the St. Joseph's Family Center, Project Sentinel, Gilroy Compassion Center, Mt. Madonna YMCA Senior Nutrition Program, and the Gilroy Chamber of Commerce/Visit Gilroy in the total amount of $257,500 to provide immediate support and programs in response to the COVID-19 Pandemic; and authorize the Interim City Administrator to develop and implement adequate financial controls and reporting guidelines to ensure that funds are utilized appropriately. X. INTRODUCTION OF NEW BUSINESS A. Approval of Capital Improvement Plan Projects for Funding by the Road Repair and Accountability Act of 2017 (SB-1) Funds and Increasing Appropriations in the Road Maintenance and Rehabilitati on Fund 215 by $2,510,621 1. Staff Report: Girum Awoke, Public Works Director 2. Public Comment 3. Possible Action: Adopt a Resolution of the City Council of the City of Gilroy amending the fiscal year 2020-2021 budget to incorporate a list of projects to be fund ed by SB 1: The Road Repair and Accountability Act and increase appropriations in the fund by $2,510,621 for Fiscal Year 2020-2021. B. Award of a Three Year Contract in the Amount of $226,100 to The Pun Group, LLP for Professional Auditing Services to Cond uct the City's Annual Financial Audit and Report 1. Staff Report: Bryce Atkins, Interim Finance Director 2. Public Comment 3. Possible Action: Award a three-year, $266,100 contract with two 1-year extension options to The Pun Group, LLP for professional auditing services and authorize the Interim City Administrator to execute such agreement. C. Approval of Temporary Memorandums of Agreement with AFSCME Local 101, Gilroy Management Association, Gilroy Firefighters IAFF Local 2805 and the Gilroy Police Officers Asso ciation, and Temporary Policy Memorandums with Unrepresented Employees, in Response to the COVID - 19 Pandemic and Shelter in Place Orders City Council Regular Meeting Agenda 04/6/2020 Page7 1. Staff Report: LeeAnn McPhillips, Human Resources Director/Risk Manager 2. Public Comment 3. Possible Action: Approve, and authorize the Interim City Administrator to execute the following: a) A temporary memorandum of agreement with the American Federation of State, County, and Municipal Employees (AFSCME), Local 101 regarding wages, hours and working conditions in response to the COVID-19 pandemic and shelter in place orders (copy attached). b) A temporary memorandum of agreement with the Gilroy Management Association regarding wages, hours and working conditions in response to the COVID-19 pandemic and shelter in place orders (copy attached). c) A temporary memorandum of agreement with Gilroy Firefighters IAFF, Local 2805 regarding wages, hours and working conditions in response to the COVID-19 pandemic (copy attached). d) A temporary memorandum of agreement with the Gilroy Police Offi cers Association regarding wages, hours and working conditions in response to the COVID-19 pandemic (copy attached). e) A temporary policy memorandum with unrepresented employees in each of the following groups in response to the COVID-19 pandemic and shelter in place orders (copies attached): 1. Full-time Unrepresented Confidential Non-Exempt & Exempt Employees 2. Full-time Unrepresented Council-Appointed Employees 3. Part-Time/Temporary/Seasonal Unrepresented Hourly & Exempt Employees D. Approval of an Employment Ag reement for Interim City Administrator Jimmy Forbis as Recommended by Council Sub -Committee Members Marie Blankley, Dion Bracco and Mayor Roland Velasco 1. Staff Report: Roland Velasco, Mayor 2. Public Comment 3. Possible Action: Approve an employment agreement with Interim City Administrator Jimmy Forbis setting forth the compensation, benefits, and terms associated with his appointment, as recommended by Council sub-committee members Marie Blankley, Dion Bracco and Mayor Roland Velasco. XI. CITY ADMINISTRATOR'S REPORTS XII. CITY ATTORNEY'S REPORTS XIII. CLOSED SESSION - NONE ADJOURNMENT Certificate of Commendation The Mayor and City Council of the City of Gilroy Issues to Benjamin Summers this Certificate in Recognition of Your Award of Distinction as Eagle Scout by Boy Scouts of America _________________ Mayor Roland Velasco 6.A Packet Pg. 8 Communication: Certificate of Commendation for Eagle Scout Benjamin Summers (CONSENT CALENDAR (ROLL CALL VOTE)) 1 City Council Meeting Minutes 03/16/2020 City of Gilroy City Council Meeting Minutes March 16, 2020 SPECIAL MEETING - CLOSED SESSION - 5:30 P.M. CALL TO ORDER AND ROLL CALL Mayor Velasco called the special meeting to order at 5:37 p.m. Council Members Present: Marie Blankley, Dion Bracco, Caro l Marques, Fred Tovar, Cat Tucker, Roland Velasco Absent: Council Member Leroe-Muñoz A. PUBLIC EMPLOYEE APPOINTMENT/EMPLOYMENT; Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2) Name/Title: Jimmy Forbis, Interim City Administrator There were no public comments. Council Member Leroe-Muñoz arrived at 5:48 p.m. The special meeting adjourned at 6:04 p.m. REGULAR MEETING - 6:00 P.M. I. OPENING A. Call to Order The meeting was called to order at 6:05 PM by Mayor Roland Velasco 1. Pledge of Allegiance The pledge of allegiance was led by Mayor Velasco. 2. Invocation There was no invocation. 3. City Clerk's Report on Posting the Agenda City Clerk Shawna Freels announced that the agenda had been posted on March 11, 2020 at 4:30 p.m., and the revised agenda had been posted on March 13, 2020 at 6:15 p.m. Attendee Name Title Status Arrived Roland Velasco Mayor Present 5:58 PM Marie Blankley Council Member Present 6:00 PM Dion Bracco Council Member Present 6:00 PM Peter Leroe-Muñoz Council Member Present 6:00 PM Carol Marques Council Member Present 6:00 PM Fred Tovar Council Member Present 6:00 PM Cat Tucker Council Member Present 6:00 PM 6.B Packet Pg. 9 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 2 City Council Meeting Minutes 03/16/2020 B. Orders of the Day Mayor Velasco announced that Items X A and B and XIII B and C were being removed from the agenda, and that Item XD was being moved following the consent calendar. The Council agreed to the agenda changes. C. Employee Introductions There were none. II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations There were none. III. PRESENTATIONS TO THE COUNCIL Janessa Villarreal of the Compassion Center spoke on her prior request to declare a shelter crisis in Gilroy, and asked that the Council address service s for the homeless with the spread of the Coronavirus. IV. REPORTS OF COUNCIL MEMBERS Mayor Velasco spoke on the Arts Center closure due to the COVID 19 virus and explained that food and other services were being coordinated between Santa Clara County cities and the County. He then read the County directive to shelter in place and announced that residents could call 211 for updates. V. FUTURE COUNCIL INITIATED AGENDA ITEMS There were none. VI. CONSENT CALENDAR (ROLL CALL VOTE) RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Cat Tucker, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker A. Minutes of the March 2, 2020 Regular Meeting B. Proclamation Recognizing the 150th Anniversary of the City of Gilroy C. Acceptance of the 2019 General Plan Annual Report D. Approval of the Transfer of $997.56 of Interest Income From the Museum Vase Endowment Trust Fund 814 to the Gilroy Museum Fund 801 E. Claim of CSAA ASO Charles Torrecillas (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) F. Approval of a Letter in Support for the Expedited Dam Safety for Silicon Valley Act (AB 3005) G. City Council Consent to the Appointment Bryce Atkins as Interim Finance Director H. City Council Consent to the Appointment of Bryce Atkins as City Treasurer 6.B Packet Pg. 10 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 3 City Council Meeting Minutes 03/16/2020 I. Claim of Frontier Communications - CMR Claims Department (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) VII. BIDS AND PROPOSALS Mayor Velasco asked to address Item X D. The Council agreed to move the item XD. A Resolution of the City Council of the City of Gilroy Ratifying and Continuing the Emergency Proclamation of the Existence of a Local Emergency Issued by the Director of Emergency Services Related to the Novel Coronavirus (COVID-19) Interim City Administrator Forbis introduced the item. Division Chief Wyatt provided an update on the COVID 19 emergency. Public comment was opened. Jan Berstein Chargin requested assistance for the homeless during the shelter in place order. Public comment was then closed. Possible Action: Adoption of a Resolution 2020-17 of the City Council of the City of Gilroy ratifying the proclamation of the existence of a local emergency issu ed by the Director of Emergency Services. RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker A. Award of a Contract to EF&S Concrete, Inc. in the Amount of $344,792 with a Contingency of $34,480 for the Construction of the FY20 Spalling Concrete Repair Project, Project No. 20-PW-255 The staff report was presented by Public Works Director Awoke. There were no public comments. 6.B Packet Pg. 11 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 4 City Council Meeting Minutes 03/16/2020 Possible Action: Award a contract to EF&S Concrete, Inc. in the amount of $344,792 with an additional project contingency of $34,480 (10%) for the construction of the FY20 Spalling Concrete Repair Project, Project No. 20 -PW-255, and authorize the Interim City Administrator to execute the contract and associated documents. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Marie Blankley, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker VIII. PUBLIC HEARINGS A. Approval of the Proposed Draft 2040 General Plan Policy Text for Analysis in the General Plan Environmental Impact Report The staff report was presented by Senior Planner Ketchum. The public hearing was opened; there being no comments, it was then closed. Possible Action: Adopt resolution 2020-14 of the City Council of the City of Gilroy approving the Gilroy 2040 General Plan policy text as revised for the purposes of defining the “project” to be evaluated in the draft environmental impact report. RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker x Possible Action: Direct staff to include analysis of the potential impact s of multiple property owners on the feasibility of preparation and implementation of future Neighborhood District specific plans, to be included in any future revision to the Neighborhood District General Plan designation or the Neighborhood District City Council Policy, and to evaluate the policy if and when the Urban Service Amendment application is approved by LAFCO. 6.B Packet Pg. 12 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 5 City Council Meeting Minutes 03/16/2020 RESULT: APPROVE [UNANIMOUS] MOVER: Cat Tucker, Council Member SECONDER: Fred Tovar, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker B. Consideration of a Zoning Amendment to Remove a Planned Unit Development Overlay From a Single-Family Residential (R-1) Zoned and Developed Parcel and Approval to Subdivide the 43,592 Square Foot Parcel into Three Vacant Residential Lots With the Remainder of the Property for the Existing Single-family Residence, and a 7,801 Square Foot Right of Way Dedication at a Property Located at 95 Farrel Avenue, APN 790 -07-007, Applicant Michael Kuang (Z 19-03) (TM 19-01) The staff report was presented by Community Development Director Garner. There were no ex-parte communications. The public hearing was opened; there being no comments it was then closed. Possible Action: Read the ordinance by title only and waive further rea ding. RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker x City Clerk Freels read the ordinance title. Possible Action: Introduce an ordinance of the City Council of the City of Gilroy approving zone change application Z 19-03 to remove a Planned Unit Development overlay district designation from a single-family residential (R-1) zoned parcel. RESULT: APPROVE [UNANIMOUS] MOVER: Marie Blankley, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker x 6.B Packet Pg. 13 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 6 City Council Meeting Minutes 03/16/2020 Possible Action: Adopt a Resolution 2020-15 of the City Council of the City of Gilroy approving tentative map application TM 19-01 to create three new vacant residential lots and one remainder parcel containing an existing single family residence. RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Dion Bracco, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker IX. UNFINISHED BUSINESS There was none. X. INTRODUCTION OF NEW BUSINESS A. Acceptance of the Fiscal Year 2019 Federal Single Audit for the City for the Reporting Period of July 1, 2018 to June 30, 2019 The item was not heard. B. Fiscal Year 2019-2020 Mid-Year Budget Update and Approval of Increasing Revenue and Appropriations by $423,352 in the Measure B Fund 216, Community Development Block Grant Fund 254 and Housing Trust Fund 259 The item was not heard. C. Approval of an Extension of Water and Sewer Utility Service to the Christopher Ranch Located at 935 Southside Drive (Former Rodriguez Ranch Site) and Approval of an Agreement Between the City and Christopher Ranch, LLC. for the Provision of Limited Municipal Services The staff report was presented by Public Works Director Awoke. Public comment was opened. Bart Hechtman of Christopher Ranch spoke on the needs of Christopher Ranch for the limited municipal services. Public comment was then closed. 6.B Packet Pg. 14 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 7 City Council Meeting Minutes 03/16/2020 Possible Action: a) Adopt Resolution 2020-16 of the City Council of the City of Gilroy approving a water and sewer utility service extension to the Christopher Ranch site located at 935 Southside Drive. RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Marie Blankley, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker x b) Approve an agreement between the City of Gilroy and Christopher Ranch, LLC. for the provision of limited municipal services to a project supporting agricultural industries. RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Carol Marques, Council Member AYES: Velasco, Blankley, Bracco, Leroe-Muñoz, Marques, Tovar, Tucker XI. CITY ADMINISTRATOR'S REPORTS Interim City Administrator Forbis explained that delaying the approval of the Measure B appropriation resolution would not have an adverse effect or delay anything. XII. CITY ATTORNEY'S REPORTS There were none. XIII. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION; Pursuant to Paragraph (1) of Subdivision (d) of GC 54956.9 and GCC Section 17A.11(3)(a); Name of Case: Alvarez v. City of Gilroy, et al.; Court: United States District Court for the Northern District of California; Case 19-cv-02554-EJD, Filed May 13, 2019 B. CONFERENCE WITH NEGOTIATOR - COLLECTIVE BARGAINING UNIT Pursuant to GC Section 54957.6 and GCC Section 17A.11 (4); Collective Bargaining Unit: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters; Ci ty Negotiators: Jimmy Forbis, Interim City Administrator, LeeAnn McPhillips, HR Director, Charles Sakai, Labor Counsel; Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandum of Understanding: City of Gilroy and the Gilroy Fire Fighters Local 2805 The item was not heard. 6.B Packet Pg. 15 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) 8 City Council Meeting Minutes 03/16/2020 C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC Section 54956.8 and GCC Section 17A.8 (a) (2) Property: 3050 Hecker Pass Highway, APN’s 783-05-011; 783-05-012; 783-05-013;810-17-014;015; 021; 024; 025; 026; 029; 810-18-002; 010; 011;801-19 -005;007; 010; 011; 014 (Gilroy Gardens Property); Negotiators: Jimmy Forbis, Interim City Administrator, LeeAnn McPhillips, HR Director; Other Party to Negotiations: Greg Edgar; Under Negotiation: Lease Price and Terms The item was not heard. D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC Section 54956.8 and GCC Section 17A.8 (a) (2) Property: APN's 808 -18-022, 799 30 001 (Christmas Hill Park); Negotiators: Jimmy Forbis, Interim City Admini strator, LeeAnn McPhillips, HR Director; Other Party to Negotiations: Tom Cline, Garlic Festival Associtaion; Under Negotiation: Price and Terms There were no public comments. City Attorney Faber explained that the Council was adjouring to closed session on item XIII.A as discussion of the item in open session would unavoidably prejudice the City’s position in the case. Motion to enter Closed Session: Motion was made by Council Member Tovar, seconded by Council Member Tucker and carried unanimously to enter closed session on items A and D. ADJOURNMENT The Council adjourned to closed session at 7:32 p.m. /s/ Shawna Freels, MMC City Clerk 6.B Packet Pg. 16 Communication: Minutes of the March 16, 2020 Regular Meeting (CONSENT CALENDAR (ROLL CALL VOTE)) City of Gilroy STAFF REPORT Agenda Item Title: Approval of a Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2016-01, Hecker Pass Heartland Estates Phase II Tract 10315 Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Jorge Duran Jorge Duran Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve a notice of acceptance of completion and reduction of the faithful performance and payment security bonds for Property Improvement Agreement No. 2016 -01, Hecker Pass Heartland Estates Phase II, Tract 10315. BACKGROUND The City of Gilroy currently has several land development projects at various stages of development. One of the two large Specific Plan areas, the Hecker Pass Specific Plan area, has recently completed substantial amounts of improvements. In an effort to allow the opening and utilization of completed public areas and amenities, Gilroy City Code 6.C Packet Pg. 17 Chapter 21, Article 3, Section 21.81, allows the City Council to authorize a reduction of bonds/funds equal to the estimated cost of the completed portion of the improvements. In 2015, Meritage Homes, the applicant for Heartland Estates Phase II, received Tentative Map approval for development of 33 single family residential lots and related improvements within the Hecker Pass Specific Plan area. [Ref: Resolution 2015 -26, TM 14-04] In 2016, Meritage Homes obtained Council approval for the Tract 10315, which is one of the six tracts associated with the Hecker Pass Specific Plan area, and Property Improvement Agreement (PIA) No. 2016-01. Tract 10315 included three major areas of improvements, each with separate bonds, as shown in Table A below. On May 2018, Meritage Homes received Council approval for partial acceptance of Property Improvement Agreement 2016-01 improvements, and bond reduction for the Hecker Pass Heartland Estates Phase II, Tract No. 10315 in-tract improvements, as shown in Item 1 in Table A below. The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement. DISCUSSION Chapter 21, Article III, Section 21.81 of the City Code allows the City Council to authorize a reduction in the payment and performance bonds that the builder provided prior to the Property Improvement Agreements being accepted by Council. The amount of the bond reduction is consistent with the amount of work completed at the time of request. A maintenance bond in the amount of 10% of the construction cost ensures that defective or damaged improvements will be corrected during the one -year maintenance warranty period. The project’s actual improvement costs have been reviewed to ensure that the Maintenance Security amount covers an y anticipated issue with the installed improvements. The developer, Meritage Homes of California, Inc., a California corporation, requests a reduction of remaining Tract 10315 Faithful Performance and Payment Bonds to a Maintenance Bond which is 10% of the bond’s value. For the Public Art portion of the Property Improvement Agreement 2016-01, Item 2 as shown in Table A below, the improvement bond is reduced from original $250,000.00 to $25,000.00; AND for the Landscape Improvements portion of the Property Improvement Agreement 2016-01, Item 3 as shown in Table A below, the improvement bond is reduced from the original $200,000.00 to $20,000.00. The original security provided for 100% of the estimated construction cost and payment of Improvements, which con sists of installation of two public art pieces, grading, utilities, landscape, and hardscape park improvements of a City owned parcel. 6.C Packet Pg. 18 The following improvements listed in Table A below were required under Property Improvements Agreement No. 2016-01: Item No. Table A – Improvements for Tract 10315 Bond Amount Complet e Y/N* 1. In-Tract improvements ( Previously approved by Council – May 2018 ) $1,530,362 Y 2. Pubic Art – Installation of two public art pieces (item for this council approval):  Art pieces installation: 100% complete $250,000 Y 3. Landscape Improvements – Installation of landscaping improvements on the City-owned parcel (item for this council approval)  City-owned parcel landscaping : 100% Complete $200,000 Y The Tract 10315 project is fully complete, including the installation of the public art and the completion of the landscape improvements, inspections were conducted by the City of Gilroy, and the Notice of Completion document is ready for acceptance and recordation with Santa Clara County. Acceptance of the tract improvements begin the warranty period. ALTERNATIVES Council has the following options with respect to this action to approve the notice of acceptance and reduce the Performance and Payment Bond to a 10% Maintenan ce Bond for Tract 10315 Heartland Estates II: Deny the request to approve the Notice of Acceptance and reduction of the bonds. STAFF DOES NOT RECOMMEND THIS OPTION because it will cause costly and unnecessary development delays. FISCAL IMPACT There are no financial impacts with this action. The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map. Attachments: 6.C Packet Pg. 19 1. Attachment 1 - Vicinity Map 2. Attachment 2 - PIA 2016-01 FINAL signed by Meritage 3. Attachment 3 - NOC-Tract 10315 6.C Packet Pg. 20 6.C.a Packet Pg. 21 Attachment: Attachment 1 - Vicinity Map (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass Heartland Estates Phase II) 6.C.b Packet Pg. 22 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 23 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 24 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 25 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 26 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 27 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 28 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 29 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 30 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 31 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 32 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 33 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 34 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 35 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 36 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 37 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 38 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass 6.C.b Packet Pg. 39 Attachment: Attachment 2 - PIA 2016-01 FINAL signed by Meritage (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass SEPARATE PAGE PURSUANT TO GOVT. CODE 27361.6 RECORDING REQUESTED BY: City of Gilroy WHEN RECORDED MAIL TO: Shawna Freels City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 NOTICE OF ACCEPTANCE OF COMPLETION NOTICE IS HEREBY GIVEN that work agreed to be performed under the property agreement between the City of Gilroy, a municipal corporation, whose address is 7351 Rosanna Street, Gilroy, CA 95020, and the Contractor mentioned below who developed said project, was accepted as completed by the City of Gilroy on the __6_____day of __April_____, 2020. Project No.: Property Improvement Agreement No. 2016-01, Heartland Estates Phase II, Tract 10315 Contractor Name: Meritage Homes of California, Inc., a California corporation Contractor Address: 1671 E Monte Vista Avenue, suite # 214, Vacaville, CA 95688-3124 Surety on Contract: Argonaut Insurance Company Location of Project: Tract 10315, located within Hecker Pass Specific Plan, northeast of Third Street west of the Heartland subdivision and south of Syngenta Flowers, Inc. APN: 810-21-009 Description of Work: Tract Improvements Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; x Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems Owner's Name: City of Gilroy Work Done: Construction of new public streets; and installation of a continuous sidewalk and ADA improvements along the Third Street frontage; and installation of two public art pieces; and landscaping of City owned parcel; and sewer, water and storm drain facilities. This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned declares: That he is an officer of the City of Gilroy, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters that he believes it to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on ______________, 2020. CITY OF GILROY STATE OF CALIFORNIA COUNTY OF SANTA CLARA BY Gary Heap TITLE City Engineer This document is for the benefit of the City of Gilroy. Request for Recordation without fee is made in 6.C.c Packet Pg. 40 Attachment: Attachment 3 - NOC-Tract 10315 (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass Heartland Estates accordance with Section 27383 of the Government Code of the State of California. RECORDING REQUESTED BY: ) ) City of Gilroy ) ) ) ) WHEN RECORDED, MAIL TO: ) Shawna Freels, City Clerk ) City of Gilroy ) 7351 Rosanna Street ) Gilroy, CA 95020 ) RECORDED WITHOUT FEE PER CALIFORNIA GOVERNMENT CODE SECTION 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) NOTICE OF ACCEPTANCE OF COMPLETION PROPERTY IMPROVEMENT AGREEMENT NO. 2016-01 Heartland Estates Phase II - Tract 10315, APNs: 810-21-009 Meritage Homes of California, Inc., a California Corporation 6.C.c Packet Pg. 41 Attachment: Attachment 3 - NOC-Tract 10315 (2696 : Tract Acceptance of Notice of Completion Tract 10315 Hecker Pass Heartland Estates City of Gilroy STAFF REPORT Agenda Item Title: Approval of On-Call Consultants List for Engineering and Design Support Services, Project No. 20-RFQ-PW -329 Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Julie Oates Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve list of on-call consultants for future projects of bridge design, roadway and trail design, geotechnical services, electrical, traffic signal and intelligent transportation system design, traffic engineering, environmental compliance, utility infrastructure improvement, transportation planning and public outreach, and construction inspection services. EXECUTIVE SUMMARY The Department of Public Works requires the assistance of consultants for engineering and design support services. Staff issued a Request for Qualifications (RFQ) in October 2019 to develop an on-call list of qualified consultants specializing in nine technical disciplines. 6.D Packet Pg. 42 Having multiple firms gives the City the opportunity to select a consultant that is best suited to perform planning and design activities for a particular project, and to provide the efficiency of having multiple consultants working on multiple projects simultaneously. The prequalification process will streamline the consultant selection process and provide for engineering and design support services on an as -needed basis for a period of three years, with the option of two additional one-year extensions. Staff received 57 Statements of Qualifications (SOQs) from 28 firms (some firms provided SOQs for multiple disciplines). The SOQs were reviewed and ranked based on the criteria listed in the RFQ. All of the firms provided well-presented SOQs. The report provides staff’s recommended list of qualified consultants for on-call engineering and design support services. There are no fiscal impacts associated with the City Council’s action to approve the list of on-call qualified consultants. BACKGROUND The Department of Public Works requires the assistance of consultants for engineering and design support services. The types of support services and expertise are in nine different disciplines including Bridge Design; Roadway and Trail Design; Geotechnical Services; Electrical, Traffic Signal & Intelligent Transportation System (ITS) Design; Traffic Engineering; Environmental Compliance; Utility Infrastructure Improvement; Transportation Planning and Public Outreach; and Construction Inspection Services. A Request for Qualifications (RFQ) from Engineering and Related Consultants to Establish Lists of On-Call Qualified Consultants for Future Projects in the City of Gilroy was issued by the Public Works Engineering Division on October 25, 2019. The RFQ, was posted on the City of Gilroy’s Website and was advertised in the San Jose Mercury News. Fifty-seven Statements of Qualifications were received for the nine disciplines from twenty-eight firms by the Monday, December 23, 2019 deadline. The following consultants, listed in random order, submitted SOQs: 1. Biggs Cardosa Associates, Inc. 2. CSG Consultants, Inc. 3. Dokken Engineering 4. Kimley-Horn and Associates, Inc. 5. TRC Engineers, Inc. 6. Arup North Americ Ltd. 7. Bellecci & Associates 8. Crossroad Lab 9. Kier + Wright 10. MME Civil + Structural Engineers 11. Mott MacDonald Group, Inc 6.D Packet Pg. 43 12. Ruggeri-Jensen-Azar 13. ATLAS Geosphere Consultants, Inc. 14. Cal Engineering & Geology, Inc. 15. Geocon Consultants, Inc. 16. PARIKH Consultants, Inc. 17. Advanced Mobility Group 18. Borrelli and Associates, Inc. 19. Hexagon Transportation Consultants, Inc. 20. Iteris, Inc. 21. TJKM Transportation Consultants 22. Advanced Mobility Group 23. HydroScience Engineers, Inc. 24. Schaaf & Wheeler, Consulting Civil Engineers 25. C M Pros, Inc. 26. Consolidated Engineering Laboratories 27. Hill International, Inc. 28. Apex Testing Laboratories, Inc. The Statements of Qualifications were reviewed and scored based on the criteria listed in the RFQ. All of these firms provided well-preparedprepared SOQs based on the criteria listed in the RFQ, indicating their past experience, contract performance and key personnel that will perform engineering and design work for the City’s projects. Having multiple firms gives the City the opportunity to select a consultant that is best suited to a particular job, and to provide the efficiency of having multiple consultants working on multiple projects simultaneously. The prequalification process streamlines the consultant selection process current Capital Improvement Program (CIP) projects and approved capital projects in the upcoming 5-year CIP budget, and provides for engineering and design support services on an as-needed basis for a period of three years, with an allowance for two additional one-year extensions. ANALYSIS A committee, consisting of the City Engineer, Senior Engineer for Capital Projects, Senior Engineer for Land Development, and Assistant Engineer, was formed to score and qualify each of the firms based on their Statement of Qualifications. The Committee members have the requisite knowledge and experience in the scope of work involved and the type and quality of professional firms needed to perform the work. The submittals were reviewed based on the criteria listed in the RFQ for the Engineering and Related Consultants to Establish Lists of On-Call Consultants for Future Projects in the City of Gilroy. Firms were reviewed and qualified based on the following criteria:  Statement of Qualifications 6.D Packet Pg. 44  References  Key Staff  Contract Performance  Project Experience  Ability to Meet Project Schedule  Proposed Sub-Consultants The following consultants were selected as the best qualified for the on -call lists of engineering and related consultants for future projects in the City of Gilroy (in alphabetical order by discipline): Bridge Design 1. Biggs Cardosa Associates, Inc. 2. CSG Consultants, Inc. 3. Dokken Engineering 4. Kimley-Horn and Associates, Inc. 5. TRC Engineers, Inc. Roadway and Trail Design 1. Arup North America Ltd. 2. Bellecci & Associates 3. Crossroad Lab 4. CSG Consultants, Inc. 5. Dokken Engineering 6. Kier + Wright 7. Kimley-Horn and Associates, Inc. 8. MME Civil + Structural Engineers 9. Mott MacDonald Group, Inc. 10. Ruggeri-Jensen-Azar 11. TRC Engineers, Inc. Geotechnical Services 1. Arup North America Ltd. 2. ATLAS Geosphere Consultants, Inc. 3. Cal Engineering & Geology, Inc. 4. Geocon Consultants, Inc. 5. Mott MacDonald Group, Inc. 6. PARIKH Consultants, Inc. Electrical, Traffic Signal & Intelligent Transportation System (ITS) Design 1. Advanced Mobility Group 2. Borrelli and Associates, Inc. 3. Hexagon Transportation Consultants, Inc. 6.D Packet Pg. 45 4. Iteris, Inc. 5. Kimley-Horn and Associates, Inc. 6. Ruggeri-Jensen-Azar 7. TJKM Transportation Consultants Traffic Engineering 1. Advanced Mobility Group 2. Hexagon Transportation Consultants, Inc. 3. Kimley-Horn and Associates, Inc. 4. Ruggeri-Jensen-Azar 5. TJKM Transportation Consultants Environmental Compliance 1. Dokken Engineering 2. Rincon Consultants, Inc. 3. TRC Engineers, Inc. Utility Infrastructure Improvement 1. Arup North America Ltd. 2. Bellecci & Associates 3. CSG Consultants, Inc. 4. HydroScience Engineers, Inc. 5. Kier + Wright 6. Mott MacDonald Group, Inc. 7. Ruggeri-Jensen-Azar 8. Schaaf & Wheeler, Consulting Civil Engineers Transportation Planning and Public Outreach 1. Arup North America Ltd. 2. Crossroad Lab 3. Hexagon Transportation Consultants 4. Mott MacDonald Group, Inc. 5. TJKM Transportation Consultants Construction Inspection Services 1. Apex Testing Laboratories, Inc. 2. Biggs Cardosa Associates, Inc. 3. C M Pros, Inc. 4. Consolidated Engineering Laboratories 5. CSG Consultants, Inc. 6. Hill International, Inc. 7. TRC Engineers, Inc. 6.D Packet Pg. 46 These firms were selected based on their qualifications and ability, which provides the City the opportunity to select a consultant that is best suited to provide engineering and design support services for Capital Improvement Projects on an as-needed basis for a period of three years, with up to two one-year extensions. It should be noted that the approval of this list of consultants does not as sign 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, a separate Request for Proposals (RFP) will be distributed to the approved on-call short list of firms, and a separate contract for professional services will be executed for those services. ALTERNATIVES The City Council could deny staff’s recommendation and not approve the list of consultants for Engineering and Related Consultants to Establish Lists of On -Call Consultants for Future Projects in the City of Gilroy. STAFF DOES NOT RECOMMEND THIS ALTERNATIVE because it would limit staff’s ability to deliver projects in a timely and efficien t manner. FISCAL IMPACT/FUNDING SOURCE There are no fiscal impacts associated with the City Council’s action to approve the list of consultants for engineering and related consultants to establish lists of on-call consultants for future projects in the City of Gilroy. If there is a need for the City to engage one of these consultants for engineering and design support services in the future, a Request for Proposals (RFP) will be issued to the short listed firms. A contract for professional services will then be executed with the best qualified firm for that specific project. A funding source will also be identified at the time of contract approval. 6.D Packet Pg. 47 City of Gilroy STAFF REPORT Agenda Item Title: Rescheduling of the Public Hearing Regarding the Annual Weed Abatement Program Setting the Hearing Date as May 4, 2020 Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Fire Department Submitted By: Mark Bisbee Prepared By: Mark Bisbee Shawna Freels Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a Resolution of the City Council of the City of Gilroy amending resolution No. 2020-03 declaring certain weeds growing in the City and accumulations of refuse in the City to be a public nuisance, describing said weeds and refuse which constitute such nuisance, and providing notice of the adoption of the resolution by publication thereof. EXECUTIVE SUMMARY Gilroy City Code, Chapter 12, Article III, establishes a procedure for abatement of weeds and refuse. The annual weed and refuse abatement program includes an initial resolution declaring weeds and refuse a public nuisance. The City Council adopted this resolution on January 27, 2020 setting the date of April 6, 2020 for a public hearing to establish a list of properties subject to abatement. 6.E Packet Pg. 48 Due to the Shelter in Place Order caused by the COVID 19 pandemic, this public hearing date is being extended to May 4, 2020. BACKGROUND Pursuant to an agreement entered into in 2010 between the City of Gilroy and the Santa Clara County Agriculture Commissioner’s Office, the County Vegetation Management Program has been implementing the weed abatement program as a contractor to the City of Gilroy. Under the agreement, all abatement activities are conducted b y the County to include the noticing of property owners, property inspections, abatement processes, and the collection of abatement fees and inspection costs. The City is responsible for providing public notice, conducting public hearings on the matter, and adopting necessary resolutions. Program Details The list created for the public hearing includes sites identified as having a weed or refuse problem in the current year as well as during any one of the prior three years. County staff mailed the initial abatement notice to these identified property owners with the April 6, 2020 public hearing date, along with instructions on proper abatement of the sites, and a May 15, 2020 deadline for abatement activities. In addition, the notice identified the consequences for not meeting these established deadlines. All properties must be free of fire hazards throughout the year to meet minimum safety standards. All identified property owners are required to pay the initial inspection fee, currently set at $101. If a site is abated by the abatement deadline, then additional fees will not be assessed. The property owner is required to maintain the abated site and failure to do so will result in the assessment of additional fees. Sites that are identified to have weed and/or refuse problems will remain on the list for at least three years. Property owners have the ability to have their property removed from the list if the site that has achieved three consecutive “compliant” years in a row, or if their vacant site has been fully landscaped and maintained. After the deadline for abatement activities the County will conduct inspections and notify those property owners who have not abated their properties. For sites not in the Wildland Urban Interface (WUI) Hazardous Fire Area, the property owner has two weeks to complete the work. If abatement is completed prior to the next inspection, these properties will not be subject to additional fees. The two-week extension is not provided to properties in the WUI Hazardous Fire Area because these areas are considered to have high fire hazards. In addition, the Public Resources Code requires weed abatement in these areas without any extensions. For sites in the WUI Hazardous Fire Area, the County will immediately assign the site for abatement by a private contractor. Any site that is abated by the County will be assessed the inspection fee ($101), the failed inspection fee ($582) and the cost 6.E Packet Pg. 49 incurred by the abatement contractor, which is based on square footage of the site, as well as the abatement oversight cost ($984). Over the last three years the number of sites on the list has continually dropped. In 2017 there were 288 sites identified, 166 sites were identified in 2018, and 146 sites were identified at the end of 2019. FISCAL IMPACT/FUNDING SOURCE The use of the County as a contract agency to carry out the more significant portions of the program is funded through cost recovery by property owners that have failed to abate their sites and are charged for abatement services. The Fire Marshal provides staffing to coordinate City processes and communicate with the County. If the County does not collect adequate funds to meet the program budget, they will prorate the shortfall to all cities that participate in the County-run program. Historically, the County has not had a budget shortfall and has collected adequate fees from the property owners to cover the cost of the program. NEXT STEPS With the adoption of this revised resolution amending the public hearing date to May 4, 2020, a new notice of public hearing and abatement will be sent to all affected property owners and will be published in the local newspaper. As the final step, a report of properties to be charged for the costs of abatement through the program will be presented to the City Council at a public hearing on August 3, 2020 for assessment on the next property tax bill. Attachments: 1. Resolution 2020 Weed Abatement Hearing Extension 6.E Packet Pg. 50 1 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING RESOLUTION NO. 2020-03 DECLARING CERTAIN WEEDS GROWING IN THE CITY OF GILROY AND ACCUMULATIONS OF REFUSE IN THE CITY OF GILROY TO BE A PUBLIC NUISANCE, DESCRIBING WEEDS AND REFUSE WHICH CONSTITUTE SUCH NUISANCE, AND PROVIDING NOTICE OF THE ADOPTION OF THE RESOLUTION BY PUBLICATION THEREOF WHEREAS, certain weeds are growing in the City of Gilroy (“City”) upon the various streets, alleys, sidewalks and upon private property, which weeds bear seeds of a wingy or downy nature, or which may attain such growth as to become, when dry, a fire menace, or which are otherwise noxious and dangerous; and WHEREAS, certain refuse is accumulating in the City upon public and priva te property; and said weeds and refuse constitute a public nuisance; and WHEREAS, at Its January 27, 2020 regular meeting the City Council adopted Resolution No. 2020-03 declaring weeds and refuse constitute a public nuisance, and ordered that said public nuisance be abated in the manner provided by Article III of Chapter 12 of the Gilroy City Code; that said nuisance exists upon all of the streets, alleys, sidewalks and private property within said City as shown, described and delineated on the several map s of the property in the City which are recorded in the Office of the County Assessor of the County of Santa Clara, reference in each instance for the description of any particular street, alley or private property being hereby made to the several maps aforesaid, and in the event of there being several subdivision maps on which said lots are shown, reference is hereby mad e to the latest subdivision map; and WHEREAS, the City Council ordered that Monday, the 6th of April 2020, at the hour of 6:00 o'clock p.m. or as soon thereafter as the item can be heard be fixed as the time and place when objections to the proposed destruction or removal of said weeds and refuse shall be heard and given due consideration. WHEREAS, the City Council now wishes to extend the date of said hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows: 6.E.a Packet Pg. 51 Attachment: Resolution 2020 Weed Abatement Hearing Extension (2721 : Extension of Weed Abatement Hearing) 2 RESOLUTION NO. 2020-XX 1. That it is ordered that Monday, the 4th of May, 2020, at the hour of 6:00 o'clock p.m. or as soon thereafter as the item can be heard, in the Council Chambers of the City Council of the City, 7351 Rosanna Street, Gilroy, California, is hereby fixed as the time and place when objections to the proposed destruction or removal of said weeds and refuse shall be heard and given due consideration. 2. That the Chief of the Fire Department of the City is hereby ordered and directed to cause notice of the adoption of this resolution and notice of said hearing to be given to all of the affected property owners at their stated mailing address on the latest tax assessor’s role, and also to be given in the manner and form provided in Sections 14.29 and 12.53 of the Gilroy City Code, and to cause said notice to be published in the City, at least ten (10) days prior to said hearing; and 3. That nothing in this Resolution prohibits the issuance of citations for violations of City Code Section 12.46 or City Fire Code with regards to Section 304.1.2. PASSED AND ADOPTED this 6th day of April, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ______________________________ Roland Velasco, Mayor ATTEST: Shawna Freels, City Clerk 6.E.a Packet Pg. 52 Attachment: Resolution 2020 Weed Abatement Hearing Extension (2721 : Extension of Weed Abatement Hearing) City of Gilroy STAFF REPORT Agenda Item Title: Adoption of an Ordinance of the City Council of the City of Gilroy Approving Zone Change Application Z 19-03 to Remove a Planned Unit Development Overlay District Designation from a Single- Family Residential (R-1) Zoned Parcel at a Property Located at 95 Farrel Avenue, APN 790-07-007, Applicant Michael Kuang (Z 19- 03) (Introduced 3/16/2020 with a 7-0 vote) Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Community Development Department Submitted By: Karen Garner Prepared By: Karen Garner Julie Wyrick Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization  Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt an ordinance of the City Council of the City of Gilroy approving zone change application Z 19-03 to remove a Planned Unit Development overlay district designation from a single-family residential (R-1) zoned parcel. EXECUTIVE SUMMARY 6.F Packet Pg. 53 The ordinance of the City Council of the City of Gilroy approving zoning application Z19 - 03, to remove a Planned Unit Development overlay district designation from a single - family residential (R-1) zoned parcel, filed by Michael Kuang, for residential development of a one acre site on Farrell Avenue, was introduced by Council at its March 16, 2020 meeting by a unanimous vote of 7-0. Council is requested to adopt the attached ordinance consistent with its March 16, 2020 action to approve the rezoning and related entitlement TM 19-01, to create three new vacant residential lots and one remainder parcel containing an e xisting single family residence. The ordinance will be in effect thirty (30) days from the date of Cou ncil action to adopt the ordinance amendment. Attachments: 1. Ordinance Z 19-03 2. CC Staff Report 03162020 6.F Packet Pg. 54 -1- ORDINANCE NO. 2020-XX ORDINANCE NO. 2020-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY PURSUANT TO SECTION 30.52.10 TO AMEND THE CITY OF GILROY ZONING MAP REDESIGNATING A PROPERTY AT 95 FARRELL AVENUE (APN 790-07-007) FROM R-1 PUD TO R-1 ZONING DISTRICT DESIGNATION WHEREAS, on December 12, 2019, the property owner filed an application to amend the Zoning Map for property at 95 Farrell Avenue to remove a Planned Unit Development (PUD) overlay designation; and WHEREAS, the Planning Commission held a duly noticed public hearing on February 6, 2020, received and considered written and oral public testimony related to Z 19 -03, and thereafter by adoption of Resolution 2020-03, recommended that the City Council approve said project; and WHEREAS, the City Council held a duly noticed public hearing on March 16, 2020, at which time the City Council took and considered written and oral public testimony, the staff report, and all other documentation related to application Z 19-03; and WHEREAS, the City has determined that review and approval of Zoning Amendment Z 19-03 is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the provisions of Section 15061(b) (3) of the CEQA Guidelines, which states that a project is exempt from CEQA when “[t]he activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant impact to the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA;” and WHEREAS, in accordance with City of Gilroy Zoning Code Section’s 30.52.40 and 30.52.60, the City Council finds that the proposed Zoning Map Amendment implements the Gilroy 2020 General Plan, including all applicable policies and in particular the Low Density Residential land use designation, in conformance with state law. 6.F.a Packet Pg. 55 Attachment: Ordinance Z 19-03 (2724 : 95 Farrell Subdivision and Rezoning) -2- ORDINANCE NO. 2020-XX WHEREAS, the location and custodian of the documents or other materials that constitute the record of proceedings upon which Z 19-03 approval is based is the office of the City Clerk. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I The zoning district designation established for the 43,592 square foot property located at 95 Farrell Avenue, APN 790-07-007, shall be changed from the R-1 PUD Overlay Zoning District to the R-1 Zoning District, thereby removing the PUD overlay designation from the property 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 of its adoption. PASSED AND ADOPTED this __ day of ___, 2020 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ____________________________ Roland Velasco, Mayor ATTEST: Shawna Freels, City Clerk 6.F.a Packet Pg. 56 Attachment: Ordinance Z 19-03 (2724 : 95 Farrell Subdivision and Rezoning) City of Gilroy STAFF REPORT Agenda Item Title: 95 Farrell Subdivision and Rezoning Meeting Date: March 16, 2020 From: Gabriel Gonzalez, City Administrator Department: Planning Division (Planning Commission Meetings) Submitted By: Karen Garner Prepared By: Kraig Tambornini Kraig Tambornini 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 only and waive further reading; and b) Motion to introduce an ordinance of the City Council of the City of Gilroy approving zone change application Z 19-03, to remove a Planned Unit Development overlay district designation from a single-family residential (R-1) zoned parcel; and c) Motion to adopt a Resolution of the City Council of the City of Gilroy approving tentative parcel map application TM 19-01, to create three new vacant residential lots and one remainder parcel containing an existing single family residence. BACKGROUND 6.F.b Packet Pg. 57 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) The subject property is a one-acre (approx. 180.5’ wide by 240.2’ deep) infill residential lot on the north side of Farrell Avenue, between Monterey Road and Church Street. Characteristics of the site and surrounding properties are as follows: LOCATION EXISTING LAND USE GENERAL PLAN ZONING Project Site Single Family Residence LDR R-1 PUD (Z96-08) North Single Family / Multi Family LDR/MDR R-1 PUD (Z-01-10) South Single Family Residential PUD LDR R-1 (PUD) East Single Family Residence General Services C-1 West Single Family Residence LDR R-1 Section 15061(b)(3) and Section 15315 of the California Environmental Quality Act (CEQA) Guidelines, exempts from further environmental review, those projects where it can be seen with certainty that no environmental effects would result, and minor land divisions involving four or fewer parcels in urbanized areas. The rezoning action is consistent with the General Plan and would have no material physical impact on development of the site, and the site does not have any unique environmental characteristics. Therefore, no further assessment is necessary for this proposal. On February 6, 2020, the Planning Commission held a public hearing on the project. The commission considered the staff report and draft resolutions, accepted testimony, and voted unanimously to recommend approval of the project; by Resolution 2020 -03 and Resolution 2020-04. No public comment was received, and no concerns, issues or objections were raised. ANALYSIS 1) General Plan Consistency: The City's General Plan designates the site for Low Density Residential (LDR) land use, with a density of 3 to 7.25 units per acre. The project density of 4 units per acre and R-1 zoning implement the site land use designation. Furthermore, the project complies with each of the following key policies: Policy Title and Summary Analysis 4. Community Design and Development 1.01 Pattern of Development. Ensure an orderly, contiguous pattern of development that prioritizes infill development, … , and avoids land use incompatibilities. Substantially Complies. The property is a large in-fill lot that is adjacent to developed residential and commercial lots and fronts on a city street. The land use plan is consistent with prevailing development patterns. 1.05 Existing Neighborhoods. Maintain and enhance the quality of existing residential neighborhoods, .... . Substantially Complies. The lot pattern would build out the property with a suitable density and lot pattern that is 6.F.b Packet Pg. 58 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) generally consistent with the residential neighborhood character. 1.13 Undergrounding of Utilities. Remove overhead utility lines and wooden poles in central areas, and ultimately throughout the City, and require undergrounding of utilities in all new developments. Conditional Compliance. This side of Farrell Avenue has existing above ground utility poles. Undergrounding of this infrastructure along the site frontage would be required as a condition of approval. 6. Transportation and Circulation 12.02 System Function and Neighborhood Protection. Ensure that the existing and proposed highways, streets, bikeways and pedestrian paths serve the functions they are intended to serve, while protecting the character of residential neighborhoods. Complies. The project would dedicate 43 feet of the property frontage and construct frontage improvements. This would include sidewalks. 12.03 Residential Street System Design. Design street systems in residential areas to encourage direct connections between neighborhoods; to encourage internal movement by bicycling and walking; and to provide safer and quieter neighborhoods. Substantially Complies. The project cannot connect to the development to the north. It would include standard curb, gutter and sidewalk improvements along Farrell Ave, which is an arterial roadway. 7. Public Facilities and Services 16.01 Park Land Standard. Maintain the City’s established standard of 5 acres of developed park land per thousand population. … Complies. Payment of impact fees would be sufficient for this small in-fill residential development. 16.02 Land Dedication or Fees. Require developers of new residential subdivisions to dedicate land for development of recreation facilities, which may include cultural facilities, to serve the subdivision, neighborhood, and community. At the City’s discretion, the developer may pay fees in lieu of dedication to assist in land acquisition and facility development in other locations. Complies. The project would comply by payment of development impact fees per unit pursuant to adopted Development Impact Fees. The current fee is $21,318 per low density residential unit. This would be in addition to all other impact fees (i.e., sewer, storm development, traffic, water development, etc.), which are paid at time of building permit. 2) Zone Change (Z 19-03) Analysis: The current PUD overlay designation was applied under application Z96-08 (Ordinance 1997-03) that was approved to allow four lots to be created facing a private roadway. The related subdivision approval TM 6.F.b Packet Pg. 59 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) request 96-08 was not pursued. As a result, the PUD permit development plan expired. This left a PUD overlay designation without an approved development plan. Thus, a rezoning is required to pursue further development of the site; either to adopt a new PUD plan or remove the overlay designation. The applicant is not interested in pursuing development as a PUD, and seeks to revert back to conventional R-1 zoning. Gilroy City Code Section 30.52.40 requires findings that rezoning would implement the Zoning Code and General Plan. The PUD overlay may be pursued to encourage unified planning, land use efficiency, variety, creative design, and harmony with surrounding development (Section 30.26.10). However, a PUD overlay is not required to implement the General Plan. In this case, removing the PUD overlay maintains compliance with the General Plan and continues to promote orderly residential development. Based on this analysis, staff recommends rezoning to remove the PUD overlay and restore base R-1 zoning. 3) Tentative Map (TM 19-01) Analysis: Residential subdivisions must comply with Chapter 21, Subdivisions and Land Development. Section 21.41(i) provides initial approval of a tentative map is valid for twenty-four (24) months. Such approval may only be extended at the Council’s discretion. Chapter 21 does not establish a separate review process for minor subdivision of four or fewer residential lots. Therefore, the Planning Commission must review and recommend the proposed subdivision (tentative map/tentative parcel map) request to the City Council. The tentative map may be denied only if the property as proposed to be developed would conflict with the City code, statute, law or other valid regulation, or if the land is subject to severe flood hazard or severe inundation. Further, no other entitlements are required for subdivision of property into fewer than four residential lots within an R-1 zoning district. Staff has concluded that the subdivision design is substantially consistent with the City Codes, ordinances and regulations, including the R-1 zoning district. Further, a subdivision design should promote orderly and cohesive development. In this case, the site lacks meaningful ways to connect with development to the north, east and west. The project would provide a traditional lot pattern facing Farrell Avenue. While this is a simple site plan it is generally consistent with the residential development pattern in the area. Further, the lots comply with the following applicable subdivision design and R-1 zoning standards: a) Site Layout: A minimum frontage of 40 feet is required, and provided, pursuant to Section 21.95. Flag lots may be allowed if an exception is approved to allow stem access to the street with a minimum width of 25 feet, and with a maximum length of 300 feet. However, the exception is only available where topography makes it impractical to provide the 40 foot width or if the lot cannot be reasonably developed without such exception. The project proposes three lots at 47 feet wide (including the developed “remainder” lot), 6.F.b Packet Pg. 60 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) and one large L-shaped parcel with 40 feet of street frontage. Flag lots are not considered an option in this case. An alternative site layout could propose four narrow deep lots. However, while the L-shaped parcel is unusual, the development pattern is consistent with a traditional residential subdivision pattern and implements the density range. b) Lot Sizes: The minimum lot size for R-1 development is 6,660 square feet. This lot area generally includes approximately 11’ feet of depth for public easements along the lot frontage. The three traditional lots are 6,700 square feet in area, while the L-shaped lot is 15,700 square feet in area. c) Density: The project results in a density of 4 units per acre, which is within the 3 to 7.25 units per acre allowed by the General Plan. d) Circulation: The lots face onto a residential arterial collector street and would provide an additional 43’ of frontage for right of way, which has been identified as necessary to accommodate full future build-out of the roadway. Frontage improvements including curb, gutter and sidewalk would be required for the property. As designed, the driveway aprons allow four cars to park along the street frontage. This consists of 20 feet of frontage long the remainder lot and Parcel 1 frontages, and 42 feet of space between the driveways of Parcel 2 and Parcel 3. e) Open Space: The lots each contain significant front and rear yard areas. f) Off-Site Improvements: The project would include roadway, street frontage and utility undergrounding improveme nts. g) Property Dedications and Easements: The project would provide required sidewalk improvements and utility easements along the Farrell Ave frontage. h) FINDINGS: As discussed and analyzed above, the following findings can be made in support of the tentative map request: i) The proposed Tentative Map is consistent with the intent of the goals and policies of the City's General Plan. ii) The proposed development is consistent with the Zoning Ordinance and the City's Subdivision and Land Development Code, and the State Subdivision Map Act. iii) Public utilities and infrastructure improvements needed in order to serve the proposed project are in close proximity. iv) There will be no significant environmental impacts as a result of this project due to the required mitigation measures to be applied. Staff supports a recommendation of approval by the Planning Commission with conditions provided in the draft resolution attached to this report. 6.F.b Packet Pg. 61 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) 4) Technical Advisory Committee (TAC): Project plans were routed to Engineering, Building, Police, and Fire representatives for internal review and comment. The TAC considered the project on October 10, 2019. Further, pursuant to Section 21.41(a), the Tentative Map was distributed for consideration by various departments and utility agencies. The recommendations and comments have been incorporated into the project and draft conditions of approval. 5) Bicycle Pedestrian Committee (BPC): The project was not subject to BPC review as it consists of an infill residential subdivision that must provide sidewalk and street frontage improvements in compliance with City standards. 6) Gilroy Unified School District (GUSD): Project plans were routed to the GUSD for review and comments. The site is served by Rucker School (K-5), South Valley Middle School and Christopher High School. ALTERNATIVES The City Council may consider the following actions and alternatives: A) Approve the proposed rezoning and tentative map requests as recommended by the Planning Commission. (Staff recommends this option) B) Approve the proposed rezoning and/or tentative map request with changes or revisions. (Staff does not recommend this option) C) Continue the project to obtain additional information. (Staff does not recommend this option) D) Deny the proposed project applications. (Staff does not recommend this option) FISCAL IMPACT/FUNDING SOURCE No impact. All costs associated with processing of the applications have been paid by the developer, and future site development costs would also be borne by the developer, which would include payment of development impact fees. NEXT STEPS If supported, the ordinance rezoning the site would be scheduled for adoption at the next City Council meeting. PUBLIC OUTREACH Property owner information (i.e. list, labels, and map) within 500 feet of the subject site were generated by First American Title Company using current ownership data. On January 24, 2020, notices of this Planning Commission meeting were mailed to the property owners along within other interested parties, and published in the Gilroy Dispatch, a local newspaper of general circulation. In addition, the property has been posted with on-site signage notifying passers-by of pending development. Notices of the City Council hearing were also provided by March 6, 2020, in accordance with loc al and state requirements. Further, all public hearing packets are available through the City's webpage. 6.F.b Packet Pg. 62 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) Attachments: 1. Project Location Map (95 Farrell) 2. Zoning Map Exhibit (95 Farrell) 3. Tentative Map (95 Farrell) 4. Ordinance Z 19-03 (Draft) 5. Resolution TM 19-01 (Draft) 6.F.b Packet Pg. 63 Attachment: CC Staff Report 03162020 (2724 : 95 Farrell Subdivision and Rezoning) City of Gilroy STAFF REPORT Agenda Item Title: Claim of Esau Jimenez (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the April 6, 2020 meeting: Claim of Esau Jimenez Attachments: 6.G Packet Pg. 64 1. Claim of Esau Jimenez 6.G Packet Pg. 65 6.G.a Packet Pg. 66 Attachment: Claim of Esau Jimenez (2717 : Claim of Esau Jimenez) 6.G.a Packet Pg. 67 Attachment: Claim of Esau Jimenez (2717 : Claim of Esau Jimenez) City of Gilroy STAFF REPORT Agenda Item Title: Claim of Karina Cruz on behalf of James Evan Cruz Coronado (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the April 6, 2020 meeting: Claim of Karina Cruz on behalf of James Evan Cruz Coronado Attachments: 6.H Packet Pg. 68 1. Claim of Karina Cruz on behalf of James Evan Cruz Coronado 6.H Packet Pg. 69 6.H.aPacket Pg. 70Attachment: Claim of Karina Cruz on behalf of James Evan Cruz Coronado (2716 : Claim of Karina Cruz on behalf of James Evan Cruz 6.H.aPacket Pg. 71Attachment: Claim of Karina Cruz on behalf of James Evan Cruz Coronado (2716 : Claim of Karina Cruz on behalf of James Evan Cruz 6.H.aPacket Pg. 72Attachment: Claim of Karina Cruz on behalf of James Evan Cruz Coronado (2716 : Claim of Karina Cruz on behalf of James Evan Cruz City of Gilroy STAFF REPORT Agenda Item Title: Claim of Stacy Flores (The Interim City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the April 6, 2020 meeting: Claim of Stacy Flores Attachments: 6.I Packet Pg. 73 1. Claim of Stacy Flores 6.I Packet Pg. 74 6.I.a Packet Pg. 75 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) 6.I.a Packet Pg. 76 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) 6.I.a Packet Pg. 77 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) 6.I.a Packet Pg. 78 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) 6.I.a Packet Pg. 79 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) 6.I.a Packet Pg. 80 Attachment: Claim of Stacy Flores (2715 : Claim of Stacy Flores) City of Gilroy STAFF REPORT Agenda Item Title: Adoption of an Ordinance of the City Council of the City of Gilroy Prohibiting Evictions for the Nonpayment of Rent for Tenants Impacted by the COVID-19 Emergency and Setting Forth the Facts Constituting the Need for Such Relief (Introduced 3/24/2020 with a 4-3 vote; Council Members Blankley, Bracco and Velasco voting no) Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim 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 an Ordinance of the City Council of the City of Gilroy prohibiting evictions for the nonpayment of rent for tenants impacted by the COVID-19 emergency and setting forth the facts constituting the need for such r elief. EXECUTIVE SUMMARY At the March 24, 2020 Special Council meeting, the Council introduced an ordinance titled “Prohibiting Evictions for the Nonpayment of Rent for Tenants Impacted by the COVID-19 Emergency and Setting Forth the Facts Constituting the Need for Such 9.A Packet Pg. 81 Relief.” The item passed with a 4-3 vote, and is now returning to Council for formal adoption. BACKGROUND The COVID-19 outbreak has resulted in several communities adopting ordinances to prevent tenant evictions which are expected to help slow the spread of the pandemic. Furthermore, as the pandemic has created numerous financial challenges as many residents have lost their incomes due to the “shelter-in-place” order adopted by both the State of California and Santa Clara County. This ordinance seeks to provide relief to tenants and prohibit evictions. On March 27, 2020 Governor Newsome issued a state -wide moratorium on evictions; however the City’s ordinance adopted on March 24, 2020 provides greater protections for renters including: 1) The state moratorium only covers residential; Gilroy covers small business also. 2) Gilroy gives more rights to tenant including private right of action (plus attorney’s fees and treble damages); no retaliation by landlords; and tenant can't be asked to waive the protections. 3) Both require that the tenant have documentation of income loss, however, Gilroy (modeled after San Jose) requires giving it to the Landlord; State does also, though it may be acceptable to provide it later in the process than in Gilroy as the State provisions aren't clear. FISCAL IMPACT/FUNDING SOURCE None. Attachments: 1. Ordinance Eviction Moratorium 2. Comparison of Eviction Moratoria 4-6-2020 CC Meeting 9.A Packet Pg. 82 1 4824-2576-4023v1 ALF\04706228 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY PROHIBITING EVICTIONS FOR THE NONPAYMENT OF RENT FOR TENANTS IMPACTED BY THE COVID-19 EMERGENCY AND SETTING FORTH THE FACTS CONSTITUTING THE NEED FOR SUCH RELIEF WHEREAS, the State of California, the County of Santa Clara, and the City of Gilroy have announced a public health emergency resulting from the spread of the 2019 novel coronavirus (COVID-19) pandemic (the “COVID-19 Emergency”); and WHEREAS, there are hundreds of confirmed cases of COVID-19 in Santa Clara County, and as more effective and proactive testing methods are developed, this number is expected to increase rapidly; and WHEREAS, on March 9, 2020, the Health Officer of the County of Santa Clara issued an order prohibiting public or private mass gatherings of 1,000 people or more; and WHEREAS, Governor Gavin Newsom and the California Department of Public Health have adopted a policy prohibiting gatherings of 250 or more people, and recommend ing that individuals who are at higher risk of severe illness avoid gatherings of more than 10 people; and WHEREAS, as a result of illness, illness of a family member, lay-offs, reduced hours, absences from work due to school closures, or cancelled purchase orders or services, many tenant households and small businesses will suffer significant reductions in monthly income as a result of the COVID-19 pandemic and emergency response measures; and WHEREAS, according to data from the 2017 American Community Survey by the U.S. Census Bureau, many Santa Clara County renters are already highly at-risk of eviction, with nearly half of all renter households paying 30 percent or more of their income in rent each month; and WHEREAS, displacement through eviction creates undue hardship for renters through stress, anxiety, and additional relocation costs that could increase susceptibility to COVID-19; and WHEREAS, On March 16, 2020, Governor Newsome issued Executive Order N-28-20 authorizing local governments to place limitations such as those imposed by this Ordinance upon evictions for residential and business tenants who have suffered and can document a substantial decrease in household or business income cause by the COVID-19 pandemic or by governmental response thereto; and 9.A.a Packet Pg. 83 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 2 4824-2576-4023v1 ALF\04706228 WHEREAS, the authorization for local governmental action limiting evictions authorized by Executive Order N-28-20 shall be in effect through May 31, 2020, unless modified or extended by the State (the “State Authorization End Date”); and WHEREAS, the City of Gilroy proclaimed a local emergency on March 13, 2020, ratified by the City Council on March 16, 2020 (the “Gilroy Declaration of Emergency,” as the same may be renewed or extended from time to time) and the City has implemented service changes throughout its departments to limit the spread of COVID-19; and WHEREAS, On March 16, 2020, the Public Health Officer of Santa Clara County, in coordination with the Public Health Officers of other Bay Area Counties issued a comprehensive “shelter in place” order that will have the effect of requiring most small businesses in the County to close or to severely limit their operations, which will predictably lead to financial shortages for employees and their families, as well as for the business owners; and WHEREAS, On March 19, 2020, as the State Public Health Officer, Governor Newsome issued Executive Order N-33-20 ordering all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of identified federal critical infrastructure sectors; and, WHEREAS, in Gilroy, there are already several confirmed cases of COVID-19, including two deaths; and WHEREAS, the Gilroy Unified School District, in compliance with direction from the Santa Clara County Superintendent of Schools, has closed all schools in the district until at least April 10, 2020 to limit the spread of COVID-19, which will require many parents to stay home from work in order to provide childcare; and WHEREAS, the severe consequences of eviction, including homelessness and forcing families to move into overcrowded conditions, have the potential to accelerate the spread of the COVID-19 virus; and WHEREAS, a failure to prevent evictions during the COVID-19 Emergency will exacerbate this public health emergency and long-term economic impacts for the entire community; and WHEREAS, if adopted, upon its effective date the COVID-19 Eviction Moratorium Ordinance will provide relief to residential and business renters from the fear of potential eviction resulting from economic dislocation that may occur as a result of the COVID -19 pandemic; and WHEREAS, this Ordinance is temporary and not a general ordinance in force required to be codified pursuant to Section 610 of the City Charter; 9.A.a Packet Pg. 84 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 3 4824-2576-4023v1 ALF\04706228 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GILROY: SECTION A. The uncodified Ordinance set out in the attached Exhibit A is hereby approved. SECTION B. The City Council of the City of Gilroy hereby finds that there is a current and immediate threat to the public health, safety and welfare and a need for immediate preservation of the public peace, health, and safety that warrants this measure, which finding is based upon the facts stated in the recitals above and in the Santa Clara County Board of Supervisor’s Resolution Ratifying and Extending the Proclamation of a Local Emergency, Resolution No. BOS-2020-10 and the Gilroy Declaration of Emergency. SECTION C. This Ordinance shall become effective thirty days from and after the date of its adoption pursuant to Gilroy Charter Section 608 and shall remain in effect until the earlier of the expiration of the Gilroy Declaration of Emergency or the State Authorization End Date, unless extended by the City Council. ADOPTED IN ACCORDANCE WITH CHARTER SECTION 602 this _____ day of ___________, 2020, by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: _______________________________ Roland Velasco, Mayor ATTEST: _____________________________ Shawna Freels, City Clerk 9.A.a Packet Pg. 85 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 4 4824-2576-4023v1 ALF\04706228 EXHIBIT A TEMPORARY PROHIBITION OF EVICTIONS WHERE THE FAILURE TO PAY RENT RESULTS FROM LOSS OF INCOME DUE TO THE COVID-19 EMERGENCY SECTION 1 TITLE This Ordinance shall be known as the “COVID-19 Eviction Moratorium Ordinance.” SECTION 2 POLICY AND PURPOSES DECLARATION As a result of the COVID-19 Emergency and the government-recommended precautions, many tenants have experienced sudden income loss, and further impacts are anticipated, leaving tenants vulnerable to eviction. During this s tate of emergency, and in the interests of protecting the public health and preventing transmission of the coronavirus, it is essential to avoid unnecessary displacement and homelessness. The purposes of this Ordinance are to promote housing and business stability during the COVID-19 pandemic and to prevent avoidable homelessness. This Ordinance is necessary for the immediate preservation of the public peace, health or safety because the COVID-19 pandemic has the potential for destabilizing the residential and commercial rental markets for all of the reasons described herein. It is intended to enable tenants in the City whose employment and household and/or business income have been affected by the COVID-19 pandemic to be temporarily exempt from eviction for non-payment of rent and to reduce the risk that these events will lead to anxiety, stress and potential homelessness for the affected City residents and business owners and their communities, thereby serving the public peace, health, safety, and public welfare. The temporary moratorium on evictions for non -payment authorized by this Ordinance (the “Moratorium”) is created pursuant to the City's general police powers to protect the health, safety, and welfare of its residents and exists in addition to any rights and obligations under state and federal law. SECTION 3 TERM; EXPIRATION A. Effective Date. This Ordinance shall become effective thirty days from and after the date of its adoption pursuant to Gilroy Charter Section 608 and shall remain in effect until the earlier of the expiration of the Gilroy Declaration of Emergency or the State Authorization End Date, unless extended by the City Council. 9.A.a Packet Pg. 86 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 5 4824-2576-4023v1 ALF\04706228 B. Moratorium. A Moratorium adopted under the authorization of this Ordinance will commence upon adoption by the City Council of a Resolution setting forth the facts and circumstances for activation and declaring the commencement of the Moratorium and shall continue in effect until the earlier of the expiration of the Gilroy Declaration of Emergency or the State Authorization End Date, unless extended by the City Council. SECTION 4 DEFINITIONS The following words or phrases as used in this Ordinance shall have the following meanings: A. Affected Tenant. A residential or business tenant, tenant household, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Agreement to the use or occupancy of any Rental Unit , who has, as a result of COVID-19 pandemic, or declaration of the County Public Health Officer, or other local, State or Federal Authority, suffered a substantial loss in household or business income through their employment or operation of a business as a result of any of the following: 1) job loss; 2) a reduction of compensated hours of work; 3) employer’s business closure; 4) missing work due to a minor child’s school closure; or 5) other similarly-caused reason resulting in a loss of income due to COVID-19. B. City Council. The term “City Council” refers to the City Council of the City of Gilroy. C. Landlord. An owner, lessor, sublessor or any other person entitled to receive Rent for the use and occupancy of any Rental Unit, or an agent, representative, or successor of any of the foregoing. D. Notice of Termination. The notice informing an Affected Tenant of the termination of its tenancy in accordance with California Civil Code Section 1946.1 and California Code of Civil Procedure Section 1161, as amended. E. Rent. All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Agreement concerning the use or occupancy of a Rental Unit and premises, including all payment and consideration demanded or paid for parking, utility charges, pets, furniture, and/or subletting. 9.A.a Packet Pg. 87 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 6 4824-2576-4023v1 ALF\04706228 F. Rental Agreement. An agreement, oral, written, or implied, between a Landlord and tenant for use or occupancy of a Rental Unit. G. Rental Unit. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for residential purposes or commercial purposes if the Rental Agreement is made between a Landlord and a Small Business. This term shall also include mobile homes, whether rent is paid for the mobile home and the land upon which the mobile home is located, or rent is paid for the land alone. Further, it shall include recreational vehicles, as defined in California Civil Code Section 799.29 if located in a mobile home park or recreational vehicle park, whether rent is paid for the recreational vehicle and the land upon which it is located, or rent is paid for the land alone. H. Small Business. Any commercial entity, however organized, that meets the size standard for a small business in the industry in which that entity operates as defined in the U.S. Small Business Association’s table of size standards by industry, codified at 13 C.F.R. § 121.201 SECTION 5 PROHIBITION ON EVICTIONS A. Compliance Required. While a Moratorium is in effect, a Landlord may not terminate the tenancy of an Affected Tenant for nonpayment of rent unless the Landlord can demonstrate that the termination complies with the provisions of this Ordinance. B. Failure to comply. A Landlord’s failure to comply with any requirement of this Chapter is a complete affirmative defense in an unlawful detainer or other action brought by the Landlord to recover possession of the Rental Unit. C. Liability for Rent. Nothing in this Ordinance shall relieve the tenant of liability for the unpaid rent, which the Landlord may seek after expiration of the Moratorium. A Landlord may not charge or collect a late fee for rent that is delayed during the Moratorium. SECTION 6 LANDLORD NONCOMPLIANCE & ENFORCEMENT A. Defense to Eviction. Landlords must establish compliance with this Ordinance in any action to recover possession of a rental unit. Violation of this Ordinance shall be a complete defense to eviction. As a defense to an 9.A.a Packet Pg. 88 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 7 4824-2576-4023v1 ALF\04706228 action brought for nonpayment of rent, an Affected Tenant must have notified their Landlord prior to the Notice of Termination expiring that they are an Affected Tenant and establish that, as a result of the novel coronavirus (COVID-19) pandemic or declaration of County Public Health Officer, or other State or Federal Authority, they have suffered substantial loss of household or business income caused by any of the following: 1) job loss; 2) a reduction of compensated hours of work; 3) work or business closure; 4) missing work due to a minor child’s school closure; or 5) other similarly-caused reason resulting in a loss of income due to COVID-19, and has provided written documentation or other objectively verifiable proof of the same. The following documents shall create a rebuttable presumption that the Affected Tenant has met the documentation requirement set forth above, however, they are not the exclusive form of documentation demonstrating impacts to income due to COVID-19: 1. Letter from employer citing COVID-19 as a reason for reduced work hours or termination; 2. Employer paycheck stubs; 3. Bank statements B. Private Right of Action. Whenever a Landlord endeavors to recover possession or recovers possession of a Rental Unit in violation of this Ordinance, retaliates against a tenant for the exercise of any rights under this Ordinance, or attempts to prevent a tenant from acquiring any rights herein, the tenant may institute a civil proceeding for injunctive relief, money damages, (including actual damages and damages for mental or emotional distress), and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emotional distress, the court shall have the authority to treble said award if it finds that the Landlord acted in knowing violation of or in reckless disregard of the limitations of this Ordinance. The prevailing party shall be entitled to reasonable attorney's fees and costs pursuant to order of the court. C. Retaliation. No Landlord may cause an Affected T enant to quit involuntarily or threaten to bring any action to recover possession, or decrease any services, or increase the rent, or take any other action where the Landlord's dominant motive is retaliation for the tenant's exercise of any rights under th e law. Such retaliation shall be a defense to any action to recover possession. 9.A.a Packet Pg. 89 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 8 4824-2576-4023v1 ALF\04706228 D. Nonexclusive Remedy. The rights and remedies provided by this Ordinance are in addition to any rights available to the tenant under contract, statutory, or case law. SECTION 7 APPLICATION This Ordinance applies to eviction notices (however denominated), unlawful detainer actions based on such notices, served or filed on or after the date of a Moratorium adopted pursuant to this Ordinance through the end of the Moratorium. SECTION 8 SEVERABILITY If any provision of clause of this Ordinance or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions herein, and all provisions of this Ordinance are declared to be severable. SECTION 9 NON-WAIVER Any purported waiver by a tenant of rights under this Ordinance shall be void as contrary to public policy. 9.A.a Packet Pg. 90 Attachment: Ordinance Eviction Moratorium (2713 : COVID-19 Moratorium Evictions) 1 Comparison of Eviction Moratoria: State, County, Gilroy By Andrew L. Faber, Esq. 4/5/20 This table compares the three moratoria on evictions that are currently in effect in Gilroy. These are 1) State of California, Executive Order N-37-80, dated March 27, 2020 2) County of Santa Clara, Ordinance No. NS-9.287, adopted March 24, 2020 3) City of Gilroy, Ordinance No. __, introduced March 24, 2020 Generally speaking, the State Order is the least detailed. The County and Gilroy Ordinances are more detailed and are similar but not identical. Item State County Gilroy Start Date March 27, 2020 March 24, 2020 May 6, 2020 End Date (unless extended) May 31, 2020 May 31, 2020 May 31,2020 Applies to Residential Tenancies? Yes Yes Yes Applies to Business Tenancies? No Yes, to small businesses Yes, to small businesses Triggering Event Tenant can’t pay due to being sick, losing job income, or child care Tenant has substantial loss of income or out-of- pocket medical expenses due to Covid-19 Tenant has substantial loss of household or business income due to Covid-19 Tenant notification of Landlord required Tenant must have documentation to give to landlord when back rent is due Tenant must have documentation (not clear when it must be given to landlord) Tenant must give documentation to landlord before notice of termination expires Effect of Moratorium Landlord can file suit, but tenant gets Landlord may not terminate tenancy Landlord may not terminate tenancy 9.A.b Packet Pg. 91 Attachment: Comparison of Eviction Moratoria 4-6-2020 CC Meeting (2713 : COVID-19 Moratorium Evictions) 2 60 days to respond; no writ of eviction may be enforced Must Tenant pay rent after moratorium ends? Yes Yes, “within 120 days from the date of expiration of this Ordinance” Yes Protection against late fees being charged for delayed rent? No explicit protection Yes Yes Protection against landlord retaliation? No explicit protection Yes Yes Tenant can sue Landlord for violation? No Yes Yes Tenant cannot be forced to waive these rights? No explicit protection No explicit protection Yes 9.A.b Packet Pg. 92 Attachment: Comparison of Eviction Moratoria 4-6-2020 CC Meeting (2713 : COVID-19 Moratorium Evictions) City of Gilroy STAFF REPORT Agenda Item Title: Consideration of Financial Support for Local Community Programs During the COVID-19 Pandemic Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Trevin Barber Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve financial support for the St. Joseph's Family Center, Project Sentinel, Gilroy Compassion Center, Mt. Madonna YMCA Senior Nutrition Program, and the Gilroy Chamber of Commerce/Visit Gilroy in the total amount of $257,5 00 to provide immediate support and programs in response to the COVID -19 Pandemic; and authorize the Interim City Administrator to develop and implement adequate financial controls and reporting guidelines to ensure that funds are utilized appropriately. EXECUTIVE SUMMARY The COVID-19 Emergency and the subsequent ‘shelter in place’ order is likely to lead to severe economic stress for the City of Gilroy, it’s small businesses and residents. 9.B Packet Pg. 93 During the last City Council meeting on March 24, 2020, staff presented a report surveying many of the different benefit programs being offered by other agencies to assist individuals and business during the COVID-19 Pandemic. The City Council directed staff to return with a menu of proposed community assistance prog rams that the City of Gilroy could adopt and implement. POLICY DISCUSSION What programs, projects, or policies should the City of Gilroy adopt, fund, and/or implement in order to mitigate the impacts of the COVID-19 Pandemic? BACKGROUND The previous staff report reviewed the business and community assistance programs offered by other agencies, some of which are posted to the City’s website under ‘COVID-19 Assistance’. This staff report will focus on programs that the City has previously supported and/or could now adopt to assist the community during the COVID-19 Pandemic. There are many worthy programs that could be funded, but the focus was set on programs that could be immediately implemented and were an expansion of current services. In general, staff looked at areas including Housing Assistance/Homelessness/Food Services, Senior Nutritional Programs, and Business Assistance programs. The City currently has approximately $1 million in excess reserves, however as was previously discussed, the City expects to experience significant economic impacts from the COVID-19 Pandemic. Use of all the City’s excess reserve funds is not recommended, however, by utilizing a portion of those reserves the City can supplement current programs that have a history of assist ing our businesses and vulnerable populations. Existing Housing Assistance/Homeless in Gilroy On an annual basis, the City Council considers and approves funding for public services and housing rehabilitation efforts provided by local nonprofit organizat ions. Available funding sources include the federal Community Development Block Grant (“Block Grant”) and the City of Gilroy Housing Trust Fund (“Housing Fund”). Qualifying projects include public services and housing rehabilitation programs that benefit l ow and very- low-income families and individuals. Through these programs, the City has forged many relationships that could now use additional funding for continued and additional services. It should be noted recent orders by the Governor of California have provided a moratorium on evictions that will allow tenants to remain in their homes without the fear of eviction through the end of the emergency declaration. The order provides near -term relief, however once the emergency has passed, it is expected that many renters will 9.B Packet Pg. 94 seek assistance in order to remain in their homes. Unfortunately, the Governor’s eviction moratorium order does little to assist homeless residents. Staff reviewed housing/tenant assistance, homeless, and nutritional programs offered by Gilroy’s community benefit organizations, with attention to the following agencies: (1) St. Joseph’s Family Center, (2) Project Sentinel, (3) Gilroy Compassion Center, and (4) Mt. Madonna YMCA. These organizations have existing relationships and are already attempting to assist vulnerable populations during the COVID -19 Pandemic. ANALYSIS 1. St. Joseph’s Family Center Program Offerings Homeless prevention and safety net services are provided by this community benefit organization. This is the primary program for renters to seek relief from eviction through cash assistance. The average amount per approved application is $1,674. The amount in their annual budget for emergency financial assistance is $243,000. As of last Friday, that amount has been drawn down to $65,000. • Food Assistance Pantry – provides food baskets, lunch bags and fresh produce. Serves low income families, individuals and the homeless. Operates Monday through Friday every week. Fresh produce distributed on Mondays. • Hot Meal Program for the Homeless - serves unhoused and low-income individuals and families. Served Sunday, Tuesday and Thursday evenings at the St. Mary Parish Gymnasium. • Emergency Rental and Utility Assistance – cash assistance on an as needed basis. • Homeless Outreach/UPLIFT/TAP Transit Pass Program – liaison to homeless services in the area. • Gilroy Street Team – employs homeless and formerly homeless to assist with beautification projects around the City of Gilroy. Participants receive vouchers for food, clothing, transportation and other necessities as well as job training. • Gilroy Place – U.S. Department of Housing and Urban Development (HUD) funded housing program for chronically homeless individuals with a disabling condition. Provides permanent housing, intensive case management, employment support and counseling services. • Our New Place - provides permanent housing, intensive case management, employment support and counseling services to help stabilize the lives of those who have been victims of domestic violence. • Ochoa Center & Gilroy Armory Cold Weather Shelter Programs – St. Joseph’s is contracted by the County to lead coordinated referrals to both cold weather shelters. 9.B Packet Pg. 95 • Homeless Prevention - St. Joseph’s is part of a county-wide Homeless Prevention program, together with six other safety net agencies. This pilot program will run for two years and will add to the overall plan in Santa Clara County to alleviate, prevent and eliminate homelessness. In partnership with Second Harvest Silicon Valley, St. Joseph’s Family Center is operating everyday as a drive-thru service for those that need food. This particular program has recently lost two major fundraisers and individual giving is down so there is concern about how to make up that shortfall. St Joseph's Family Center is currently working with DestinationHome and the County of Santa Clara to help implement a county-wide response to the COVID-19 Emergency. The Santa Clara County Homelessness Prevention System financial assistance program will provide vulnerable, low-income residents in Santa Clara County (85% of median income) with immediate financial assistance to help pay rent or meet other basic needs. The program is being administered by Sacred Heart Community Service in conjunction with its county-wide Homelessness Prevention System partners, and will utilize the system’s existing infrastructure to receive applications, verify eligibility, and disburse funds. With $11 million in funding, this program has already run out of funding and is currently creating a wait list. St. Joseph’s Family Center Needs During the COVID-19 Emergency City staff has reached out to St. Joseph’s and has learned the following: St. Joseph’s has not had any new or additional funding from county, state, or federal resources through stimulus packages or otherwise. Per David Cox, Executive Director of St. Joseph’s, they are able to meet the current community demands, however they have concerns due to the size, scope and length of COVID-19 and Shelter In Place (SIP) orders. Although they have some remaining funds for rental assistance, their major concern is the greater need down the road when the ordinance is lifted. Many employers cannot guarantee jobs will be available when this pandemic settles, so having the ability to pay large debt will be impos sible for many families in our community. According to David Cox – “Our food assistance has now gone to serving anyone needing food, not just those that are low-income. So food resources and the ability to secure what is needed is a priority; our emergency financial assistance is down to $50k, so we anticipate that being dried up very soon; we currently have twenty families in temporary shelter that may need to be relocated very soon - a lot depends on how long this SIP lasts; our fundraisers pay for staffing through unrestricted monies, so with the shortage of fundraising income, we are worried about the ability to keep paying critical staff to keep operations flowing; volunteer corps has 9.B Packet Pg. 96 been decimated - many are older, vulnerable or having to stay wit h children since they are not in school (most want to come, but simply cannot)” Recommendation for St. Joseph’s Family Center: Contribute $50,000 for the continuance of housing, homeless and nutritional programs. 2. Project Sentinel Program Offerings Project Sentinel provides a wide variety of housing counseling services including counseling on housing discrimination and tenant/landlord counseling and mediation services. Regarding tenant/landlord counseling, they offer free, confidential services to both tenants and landlords to help them understand their rights and responsibilities under state and local laws and ordinances that affect the rental relationship. While they do not provide direct financial assistance to tenants or landlords, they can assist bot h parties to connect with the various programs currently available. They can also explain what to expect when the connection is made. Project Sentinel staff have reviewed the County eviction moratorium and are prepared to counsel tenants and landlords. City staff has reached out to Project Sentinel and has learned the following: Per Ann Marquet, Executive Director – “Many times households in need will misunderstand instructions or will skip a step in the process and fall between the cracks. If we counse l them in the first place and a crack appears we can often get the household back on track and successful with their application for assistance. This is especially true with so much being done on line to avoid in person contact. We also want the general public to understand that Project Sentinel continues to be a resource for all other housing problems so that they are not alone trying to figure out how to get needed maintenance, what to do if harassed by a manager or neighbor, how to avoid mortgage foreclosure and how to protect civil rights.” Project Sentinel Needs During the COVID-19 Emergency Again, per Ann Marquet, Executive Director – “We are expecting a surge in calls and requests for assistance in April after rents are due. With that anticipation w e are working on a rapid response service model for handling Coronavirus related housing problems.” Recommendation for Project Sentinel Contribute $50,000 to Project Sentinel. Once the eviction ordinances expire, they expect to see a spike in demand and will need this funding to pay staff to provide the needed counseling, advice, and mediation. 3. Gilroy Compassion Center Program Offerings 9.B Packet Pg. 97 The Compassion Center is focused on the most immediate and basic needs of vulnerable populations. Currently, their day center is closed for loitering and all of their services are “grab and go”, Monday through Friday. Services include laundry, restrooms, breakfast and lunch, clothing, food pantry, mail services, and water refill. These services are scheduled at specific times throughout the day. City staff has reached out to Gilroy Compassion Center and has learned the following: per Janessa Villarruel with the Compassion Center – “We have also been working closely with the County and Gardner Family Health Network to screen some of the highest risk individuals and place them in hotels. The CWSP Temporary Overnight Shelter at the Armory is currently operating 24/7, however they are currently over capacity in meeting their social distancing requirements. Before the social distancing requirement the Armory did not have enough beds for all the homeless in Gilroy. Now, they can serve even less. They currently have to remove individuals to meet those requirements. The Compassion Center’s biggest concern is for homeless who do not have a place to reside during this mandatory Shelter in Place. The Shelter is full, our day center is closed, and they are out on the streets and are NOT practicing social distancing on their own. They would like funding put towards shelters, even if temporary during this pandemic. Compassion Center can work with the City to identify locations for temporary emergency shelters. The Compassion Center can ensure social distancing and hygiene practices are happening to prevent the spread of COVID-19 in the homeless community.” The Compassion Center has begun identifying potential locations for homeless overnight parking. This program is seen by staff to be a longer -term project that needs vetting through the City and community partners. Overnight parking locat ions may need to be staffed, cleaned, and maintained and thus any program of this type will require significant planning prior to implementation. The Compassion Center also has an interest in providing a mobile nutritional service that would expand their current food distribution operations. The program would address several deficiencies in location-based food distribution, by providing meals to homeless in the area in which they reside, thus reducing congregation during the shelter in place order. Recommendation for the Gilroy Compassion Center Appropriate $50,000 for mobile food distribution including transportation, stipends and personal protection equipment for food deliverers. 4. Mt. Madonna YMCA Daily Senior Nutrition Program 9.B Packet Pg. 98 The YMCA operates the City’s Senior Lunch Box distribution program out the Gilroy Senior Center. This program has been instrumental in providing seniors meals, which was previously provided inside the Senior Center. The program costs approximately $5,000 monthly to operate. The program is running out of funds and is experiencing a reduction in donations. Recommendation for the Mt. Madonna YMCA Contribution of $12,500. Funds would be used to continue the daily boxed meals for local seniors in need at the Gilroy Senior Cent er through May 2020. Economic Development/Business Assistance 5. Business Assistance Program Support (Attachment 1) The Gilroy Chamber of Commerce, Visit Gilroy, and the City of G ilroy believe that a program that provides assistance and a connection to available funding programs is both a short term and long term investment of City funds. There are many financial assistance programs including Small Business Association (SBA) loans, micro business loans, tax deferments (the State of California is permitting a 90-day tax payment deferment), and other employer and employee related tools. Assisting small businesses through the federal guidelines of the Coronavirus Bill (CARES Act) is critically needed. The program administered by the Chamber of Commerce and Visit Gilroy through July 31, 2020 would provide professional support for businesses to maneuver through federal and state business assistance programs. Recommendation for the Gilroy Chamber of Commerce/Visit Gilroy/City of Gilroy Contribution of $20,000 towards contract costs associated with identification, application, and award of federal and state programs associated with small business assistance. 6. Business, Tourism and Economic Strategic Marketing Plan (Attachment 2) At this time, the “shelter-in-place” order is in effect through May 3rd, 2020. Should the order be lifted, the Chamber of Commerce, Visit Gilroy, and Articulate Solutions have devised a strategic marketing plan which will educate residents about Gilroy businesses that are open and ready to serve customers; encourage residents to support local businesses; and unite the community by promoting the “Stay Loyal, Stay Local & Support Gilroy” media campaign. Attached to this staff report is the proposed Strategic Marketing Plan. Recommendation for the Business, Tourism and Economic Strategic Marketing Plan Contribution of $75,000 towards the implementation of the “Stay Loyal, Stay Local & Support Gilroy” strategic marketing plan. 9.B Packet Pg. 99 Other Possible Programs There are many worthy programs and organizati ons that could benefit from use of the City’s financial resources. It is important that staff provide Council a comprehensive list of proposals and service providers. Due to the immediacy of the need for assistance, unfortunately, staff was unable to solicit formal proposals from all entities. For purpose of this exercise, the City relied on established relationships and programs that have a proven track record, established administrative relationships with the City, and invests in the well-being of both our businesses and our vulnerable populations. Staff is not concluding that the aforementioned programs are the only solution, but given the time constraints these provide the most immediate and effective assistance possible. 1. Direct Business Assistance The City of Hayward recently allocated $500,000 towards direct financial grants (in $5,000 increments) to businesses in Hayward with fewer than 25 employees. For Gilroy, there are approximately 100 businesses with fewer than 25 employees and thus a grant program that addresses all those businesses would cost the city approximately $500,000. It would be difficult to administer a program that must decide what businesses are/are not worthy of the grant program. The City received a proposal from the Downtown Business Association (DBA) (Attachment 3) which would allocate $5 million in City reserves towards business assistance programs and furthermore allocates $1.7 million that the City had set aside for property acquisition (it should be noted, the property has been purchased so those funds are no longer available). In total, the program would use $6.7 million of City reserves. The program also includes loan programs for micro and small businesses. Staff would need direction from the Council to begin the proce ss of developing such a program. 2. Other Local Community Benefit Organizations (that the City Does Not Fund), their Program Offerings, and Operations During COVID-19 Emergency The agencies listed below are currently working in partnership with agreements in place or have collaborated with the City of Gilroy in the past while serving children and families in crisis through the South County Youth Task Force. This by no means is an exhaustive list – it attempts to capture organizations that the City has curren t/past service relationships. Although no financial contribution is recommended at this time, these organizations have been community partners and may be looked at to provide services in the future. 9.B Packet Pg. 100 Community Benefit Organizations Program Offering(s) Notes on Services During Covid-19 Living Above the Influence Youth Support Network Expansion on facilitating virtual teen support group. Youth Alliance Children and Youth Support Services Seeking technology to develop podcast to encourage youth to be connected. Need Zoom to be HIPPA compliant. Gilroy Discovery Center Mental health counseling services for families Virtual and recorded counseling support and disbursement of short films for families to watch on line on conflict resolution, 1- on-1 virtual counseling sessions. Need Zoom to be HIPPA compliant. Rebekah’s Children Services Foster children, family support & food distribution Expand Second Harvest Food Bank operations. Community Agency for Resources, Advocacy and Services (CARAS) Community advocacy services Stipends for short term housing at hotels for needy families being displaced out of substandard housing. Community Solutions Family counseling and food distribution Expansion of existing services and “SOS” program for families in crisis. ConXion Workforce development & social services Purchase more ear pods for current virtual support services. For therapeutic support, the purchase of blankets and wood for non-traditional sweat lodge healing and therapeutic support. FINANCIAL IMPACT The allocation of $257,500 from the City’s excess General Fund reserves would reduce the excess amount from approximately $1 million to $750,000. It should be noted that should Council approve staff’s recommendation, the entities receiving contributions will be required to submit appropriate financial and operational correspondence to verify that funds were spent appropriately and as intended. ALTERNATIVES Council could modify Staff’s recommendation. 9.B Packet Pg. 101 NEXT STEPS Council is requested to provide direction to staf f on how to best proceed in continuing to support local community benefit organizations. Attachments: 1. Chamber of Commerce Business Support Program 2. Chamber of Commerce/Visit Gilroy Strategic Marketing Plan 3. Downtown Business Association City Relief Programs For COVID-19 9.B Packet Pg. 102 COVID-19 Business Assistance Program Support Proposal One aspect of helping the local business community is to assist those that may be seeking financial aid; SBA loans; micro business loans; tax deferrals; renter/landlord information (eviction moratorium); unemployment benefits, and other employer and employee related tools. During these unprecedented times providing assistance to these small businesses to navigate through the federal guidelines for seeking financial support included in the Coronavirus Bill known as the CARES ACT is critically needed. Successfully securing badly needed funding could make the difference of staying in business or closure for small businesses. To support Gilroy businesses with accessing these loans, grants and, federal funds the Gilroy Chamber of Commerce is proposing a City funded contract for the period of April 15, 2020 through July 31, 2020. The contract implementation and fulfillment will be overseen by the Chamber of Commerce. The Chamber will contract with individuals who are or will become knowledgeable in the areas described above in order to assist employers and employees as requested. This Business Assistance Program Support contract will expire on July 31, 2020 unless the City of Gilroy provides additional funding to the Chamber of Commerce to extend the contract for services. The contract amount being requested is $20,000. Visit Gilroy will work in collaboration with the Chamber of Commerce to assist in the implementation and fulfillment of the contact. Chamber of Commerce CEO Mark Turner will be the contact for this contract and will provide monthly status reports to the City Council and City Staff detailing the progress of the contract deliverables. In conclusion, this proposal is one of several strategies to support the Gilroy business community. City Council’s decision to allocate resources for this program will provide key assistance for restarting the local economy. The Gilroy Chamber of Commerce and Visit Gilroy are proven economic development partners for the City of Gilroy – this is an opportunity to demonstrate we are “Better Together”. Submitted By: Mark Turner, CEO Gilroy Chamber of Commerce 9.B.a Packet Pg. 103 Attachment: Chamber of Commerce Business Support Program (2714 : COVID-19 Community Assistance Programming) Agenda Item Title: Support Gilroy Strategic Marketing Plan following the COVID-19 Pandemic Meeting Date: April 6, 2020 Submitted By: Jane Howard, Executive Director - Visit Gilroy Prepared By: Articulate Solutions Jane Howard Mark Turner Executive Summary Attached for your review and consideration is a proposed strategic marketing plan following the Covid- 19 pandemic. During these unprecedented times, providing marketing support for businesses in Gilroy could be the kick start for businesses to start on their road to recovery. The proposed plan has three goals: A. Educate residents about Gilroy businesses open and ready to serve customers. B. Encourage residents to support local businesses C. Unite the community (both residents and businesses) by taking actions supported by the City of Gilroy, Visit Gilroy and the Chamber of Commerce to promote “Stay Loyal, Stay Local & Support Gilroy”. The Strategic Marketing Plan offers three media plan alternatives to support the above-mentioned goals for the Council to consider. The plans include a 30 day media plan with a budget of $50,000, 60 day media plan with a budget of $75,000 or a 90 day plan with a total budget of $100,000. Articulate Solutions will implement the plan and Visit Gilroy in collaboration with the Chamber of Commerce will monitor and report on the deliverables. Additional details for this plan have been prepared and we are ready to launch immediately after the “Shelter in Place” directive is removed. (Approximately May 1, 2020). Please note target audiences includes marketing advertising focused on the Hispanic community. 9.B.b Packet Pg. 104 Attachment: Chamber of Commerce/Visit Gilroy Strategic Marketing Plan (2714 : COVID-19 Community Assistance Programming) In conclusion, this proposal is one of several strategies to promote the Gilroy business community. Visit Gilroy in partnership with Articulate Solutions has a proven record of success bringing visitors to Gilroy. Now we are ready to add a marketing plan to promote Gilroy residents supporting Gilroy businesses. As economic development partners of the City of Gilroy, Visit Gilroy and The Gilroy Chamber of Commerce believe this is an opportunity to demonstrate we are “Better Together”. 9.B.b Packet Pg. 105 Attachment: Chamber of Commerce/Visit Gilroy Strategic Marketing Plan (2714 : COVID-19 Community Assistance Programming) Strategic Marketing Plan Support Gilroy Prepared by Articulate Solutions Created: 03.25.2020 Revised: 03.30.2020 1. CLIENT DETAILS 5. MARKETING STRATEGIES 2. GOALS 9. CHECK City of Gilroy (cityofgilroy.org): Jimmy Forbis Visit Gilroy (visitgilroy.com): Jane Howard Gilroy Chamber of Commerce (gilroy.org): Mark Turner 3. INITIAL STATE A.Educate residents about what businesses are open. B.Encourage residents to support local businesses. C. Unite the community (both residents and businesses) by letting them know that the City, Visit Gilroy, and Chamber are all working together to support Gilroy in these challenging times. Research and Community Study Implementation •Survey local businesses to discover modified business models, special offers, and more •Create inventory of businesses with special offers, reduced hours, etc. •Amplify for social media platforms with the most reach to Gilroy community KEY DELIVERABLES Date Due Status Present SMP, Personas and 3 Media Plans to Visit Gilroy & Gilroy Chamber of Commerce 03/27/2020 City of Gilroy to vote on SMP at City Council Meeting 04/06/2020 Design Ad Creative 04/20/2020 Implement Media Plan & Launch Advertising (If Approved)05/01/2020 Measure and Track Smart Targets Ongoing Report Progress on Weekly Basis Ongoing 30 Day Media Plan % of Budget Proposed Budget 2020 Advertising & Marketing Budgets Digital 58%$28,874.84 Print 7%$3,360.08 Radio 15%$7,647.25 Creative Development and Administration 20%$10,117.90 Total 100%$50,000.00 7. MARKETING PROJECTS Overall State •The COVID-19 global pandemic has forced much of the nation into a restricted period of “Shelter in Place.” •All non-essential businesses are closed, people have been ordered to stay in their homes except for essential activities like grocery shopping, and millions of workers are now working from home. •The City of Gilroy began its “Shelter in Place” on Tuesday, March 17, 2020 and is currently expected to lift the order on Thursday, April 30, 2020. •Many restaurants are open for delivery or take-out only. •Many wineries are offering free shipping for online wine orders. Messaging •Visit Gilroy has been sharing posts from local wineries, restaurants and other essential businesses to their Instagram and Facebook stories about being open for delivery and takeout. •Visit Gilroy is also posting about essential businesses being open for take out and delivery to their Instagram and Facebook pages. •Downtown Association is posting about open businesses on their Facebook page. •There is an opportunity for more coordinated and united messaging. •Gilroy Chamber of Commerce has been posting about restaurants and other essential businesses that are open for business on their FB page. Develop Ad Campaign Implementation •Identify target audiences •Evaluate optimal advertising channels •Develop and implement media plan •Develop ad creative and messaging to target specific audiences and deliver measurable ROI •Share content to local Facebook groups to inspire word of mouth advertising Public Relations Implementation •Generate content from local businesses to share on social media •Cross-market with local businesses to maximize organic reach and exposure •Develop resource page on client website with information on local businesses and activities •Create and develop social media influencer campaign if Shelter In Place continues into May Measure & Track Smart Targets Implementation •Manage and monitor social media analytics to track and report on performance •Determine, track, and report on smart targets and conversion goals •Develop acquisition and conversion baseline 4. MESSAGING Continuing Visit Gilroy’s “Stay” Campaign •“Stay Loyal. Stay Local. Support Gilroy.” Drive traffic to Gilroy Economy & Prepare for Re-Opening •Restaurants •Small Businesses •Downtown Businesses •Wineries •Gilroy Premium Outlets •Golf Courses •Gilroy Gardens Gilroy Residents (All Residents) •60% Hispanic/Latino, 29% Caucasian, 6.5% Asian, 4.5% Other •Population: 54,159 (2017) •Median Age: 34.1 •Median Household Income: $86,742 •Articulate Solutions held a kickoff meeting with Visit Gilroy Executive Director, Jane Howard, and Gilroy Chamber of Commerce Director, Mark Turner, to clarify goals, messaging and target audiences. •Message of Loyalty is a big component that the team wants to capitalize on: “Stay Loyal. Stay Local. Support Gilroy.” 10. HIGHLIGHTS 8. MEDIA PLAN (See Budget slide for more details) Gilroy Business Owners (Potential Future) •Approximately 6,400 businesses in Gilroy •Gilroy Premium Outlets bring in 10-15% of Gilroy’s sales tax •Employs 26.7K people •Need education on resources available to them 6. TARGET AUDIENCES (See Audience slide for more details)*Demographic data pulled from datausa.io 2017 SMART TARGETS GOAL WEEK 1 WEEK 2 WEEK 3 YTD Google Display Impressions Google Display Clicks Google AdWords Impressions Google AdWords Clicks Number of Unique Social Media Posts Social Media Total Engagement Rate Website Landing Page Visitors Website Landing Page Avg Time Spent Newsletter/E-Blast Sends Newsletter/E-Blast Open Rate Newsletter/E-Blast Clickthrough NextDoor Distributions NextDoor Impressions 60 Day Media Plan % of Budget Proposed Budget 2020 Advertising & Marketing Budgets Digital 54%$40,706.90 Print 6%$4,200.11 Radio 20%$15,093.32 Creative Development and Administration 20%$15,000.38 Total 100%$75,000.00 90 Day Media Plan % of Budget Proposed Budget 2020 Advertising & Marketing Budgets Digital 58%$57,900.27 Print 5%$5,040.13 Radio 17%$17,059.25 Creative Development and Administration 20%$20,000.50 Total 100%$100,000.00 9.B.b Packet Pg. 106 Attachment: Chamber of Commerce/Visit Gilroy Strategic Marketing Plan (2714 : COVID-19 Community Assistance Programming) 7780 Monterey Street, Gilroy, CA 95020 408-842-0005 P.O, Box 2310, Gilroy, CA 95021 Page 1 March 27, 2030 Jimmy Forbis Interim City Manager 7351 Rosanna Street Gilroy, Ca. 95020 Re: Proposal for a City of Gilroy Small Business Relief Fund for COVID-19 Impact Dear Jimmy, As we have discussed, COVID-19 and the related governmental emergency lockdown and medical response is having a devastating impact on the small businesses in our community including our downtown businesses. The crisis from this economic slowdown is most acute for the smallest businesses which tend to operate on thinner margins and with smaller cash reserves. A recent Goldman Sachs study of more than 1,500 small business owners confirms this as more than 50% of the businesses indicated that they will only be able to keep operating for up to three months under the current conditions. 96% of those businesses say they have already been seriously impacted. These small businesses employ about 60 million Americans or nearly half of the private workforce. We understand that the House and Senate have now approved the coronavirus economic rescue package. This package is said to be comprised of four main components: small business loans, direct cash payments to households, enhanced unemployment benefits and several trillion-dollar lending facilities from the Federal Researve. This is projected to support the economy for 10 to 12 weeks. They concede that they may need to come back to Congress again. The issue of course is that the novel coronavirus is taking the bottom out of many markets which makes it difficult to assess how far and how long we will need to go. Two things are clear to us. One, our travel based, retailers, restaurants, service providers, lodging and event producers, distribution centers and potentially hundreds of other small maker businesses will lose perhaps 50% or more in sales between March and June. This is reflected in reduced foot traffic, surfacing cash flow issues, reduction in store hours, furlough of staff, shipping and receiving problems and ebbing consumer confidence. Two, while relatively speaking, the federal government is working at warp speed to address this problem, they are so big and cumbersome that it could take weeks and possibly a couple of months before we see the first federal check and some relief from the looming liquidity crisis created by the government’s response to COVID-19. The longer the delay in relief the more likely that some of Gilroy’s local businesses will not survive. We think that it is important that the City of Gilroy act decisively to address this issue. It does not appear to us that the largess of the Federal government will come to the City of Gilroy. They are more focused on the larger metropolitan areas in excess of 500,000 people. Following are some of our recommendations to the City. 9.B.c Packet Pg. 107 Attachment: Downtown Business Association City Relief Programs For COVID-19 (2714 : COVID-19 Community Assistance Programming) 7780 Monterey Street, Gilroy, CA 95020 408-842-0005 P.O, Box 2310, Gilroy, CA 95021 Page 2 City Reserves: • Both the State and Federal Government have declared a state of emergency o This creates a basis for Gilroy to utilize its existing reserves to help address COVID-19 • Gilroy reserves are in excess of minimum reserve levels recommended by GFOA o Generally, requires two months of general fund revenues or general fund expenditures o We recommend that any reserve utilization should not reduce balance below that level • Fitch credit ratings also need to be considered o We know our latest rating report was positive so this needs to be considered as well • We would recommend a re-evaluation of the reserve allocations as part of the process o We would assign $5,000,000 from the economic stability reserve to the 2020 budget to offset the significant reduction in sales tax revenue anticipated due to the state take away through shelter in place program o We would reallocate the $1,725,000 set aside for the Land Acquisition for Future City Facilities to fund the following:  $1,500,000 for local economic stimulus through a small business relief program directed at Gilroy based businesses. We would also reach out to local banks or the Gilroy Foundation for assistance (see below)  $225,000 to fund any required contributions to local food bank programs to ensure all our citizens will have food available during this state of emergency o We will have to rebuild our Economic Stability Reserve over the next three years to return to compliance with the stated City policy regarding required reserve levels or revise the current policy levels • Our argument for this reserve approach o Puts our community and citizen wellbeing first o Utilizing the economic stability reserve to cover the initial shortfall in revenues gives the City time to determine if the impact of shelter in place programs will be short-lived and the economy bounces back soon or that it will have a longer and more significant impact  Minimizes disruption in current City operations and defers any additional impact on local economy through reductions in City current spending and service levels  Gives the City a chance to more thoroughly evaluate any reduction in city staff and in related City services Local Business Relief Program: • Why focus on local businesses? o Resident and employee safety nets have been put in place  unemployment and other state and federal financial assistance to fall back on – the wait periods have been eliminated so many benefits are currently available  an eviction moratorium has been implemented so there is no threat of the loss of their residence during this emergency period 9.B.c Packet Pg. 108 Attachment: Downtown Business Association City Relief Programs For COVID-19 (2714 : COVID-19 Community Assistance Programming) 7780 Monterey Street, Gilroy, CA 95020 408-842-0005 P.O, Box 2310, Gilroy, CA 95021 Page 3  a no shut off policy for non-payment of electric, gas, water and sewer service have been initiated by various public and private utilities  Access to essential services and food bank programs continue uninterrupted o Funds provided to national businesses will inevitably end up being transferred back to national headquarters and have little impact locally o Despite assurances to contrary, state and federal financial assistance for small businesses will take several weeks and perhaps months to be implemented  The City program is a financing tool to bridge this gap in time initially  The City program will help minimize loss of small businesses in Gilroy o A recovery will occur more quickly if businesses are able to continue in operation  Enables employees to continue to work or return to work more quickly  The lower consumer confidence we are seeing also impacts an entrepreneur’s decision to start a new business to replace the ones shuttered and increases the timeframe needed to replace the businesses lost o Greater percentage of local business spending stays local thus creating a multiplier effect on Gilroy’s economy o More and more cities are stepping up to help their small businesses as they employ approximately 49% of private employees according to SBA • Call for Community Support of Local Small Businesses o Work with the Gilroy Foundation to create a Local Business Support Fund to supplement City Funding o Provides opportunity for community to show support for local businesses o Proceeds can be used to Supplement City Funding of Local Business Relief Program o Demonstrated success and capability with Gilroy Garlic Festival incident o Coordinate a multi-faceted Shop Local education campaign so that the community spends more dollars with local businesses • Application Process and Criteria for Local Small Business Relief Program o Online Application Process o Keep it simple with a one-two page application (we have samples available) o Physically located in the city of Gilroy o No sources of financial assistance available (like a line of credit) o No business interruption claims or coverage available o Fewer than 25 full time equivalent employees o Minimum of 25% reduction in First Quarter 2020 revenues compared to last year o Business Owner to attest to information provided • Local Small Business Relief Loan Program o Initial funding - $1,500,000 from City plus community funds through Gilroy Foundation o Available – April 15 December 31, 2020 (can be extended based on emergency period) 9.B.c Packet Pg. 109 Attachment: Downtown Business Association City Relief Programs For COVID-19 (2714 : COVID-19 Community Assistance Programming) 7780 Monterey Street, Gilroy, CA 95020 408-842-0005 P.O, Box 2310, Gilroy, CA 95021 Page 4 o Approved Applications will be funded on a first come – first served basis o Micro Business Grants  For Businesses with 5 or fewer full or part time employees excluding home based businesses  Maximum amount of grant is $5,000  No obligation to repay grant if employees retained during emergency period  Qualified businesses may apply for grant or loan but not both o Small Business Loans  For businesses with 25 or less FTE employees  Maximum amount to be loaned $10,000 to $20,000  Term – Three Years maximum – Prepayment encouraged  Repayment during: • First year – Principal returned plus 5% interest • Second Year - Principal returned plus 10% interest • Third Year - Balance of Principal owed plus 15% interest  Lump sum payments minimize paperwork and loan administration  The spread in the 5% interest is intended to allow for defaults  We have assumed 10% default rate to make it. This approach hopefully will be enough to offset loan losses • Other Actions o Defer business license and other related fees for a period no less than 90 days o Streamline approval process and reduce or eliminate fees for new business formation o Reallocate CDBG money so that it is focused on economic development We would be more than happy to discuss any of the above ideas with you if you need clarification of any of the items included in our suggestions above. Sincerely, Gary Walton, President GDBA John Taft, Treasurer 9.B.c Packet Pg. 110 Attachment: Downtown Business Association City Relief Programs For COVID-19 (2714 : COVID-19 Community Assistance Programming) City of Gilroy STAFF REPORT Agenda Item Title: Approval of Capital Improvement Plan Projects for Funding by the Road Repair and Accountability Act of 2017 (SB-1) Funds and Increasing Appropriations in the Road Maintenance and Rehabilitation Fund 215 by $2,510,621 Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Public Works Department Submitted By: Girum Awoke Prepared By: Girum Awoke Ogarita Carranza Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Adopt a Resolution of the City Council of the City of Gilroy amending the fiscal year 2020-2021 budget to incorporate a list of projects to be funded by SB 1: The Road Repair and Accountability Act and increase appropriations in the fund by $2,510,621 for Fiscal Year 2020-2021. BACKGROUND Senate Bill 1, (SB 1) (Beall, Chapter 5, Statutes of 2017), The Road Repair and Accountability Act of 2017 provides significant, stable, and ongoing state transportation funding. T here are funds dedicated to fixing aging roads and bridges, improving goods 10.A Packet Pg. 111 movement, and reducing traffic congestion. SB-1 is anticipated to generate $54 billion over the next decade, split between state and local agencies. SB-1 will enable cities and counties to address significant maintenance, rehabilitation and safety needs on their local streets and roads system. SB -1 will provide approximately $1.5 billion per year for local streets and roads. Gilroy received $327,760 for Fiscal Year 2018 (FY18), $996,191 in FY19 and is expected to receive a projected amount of $1,030,367 in FY20 for a total of $2,354,318 for local street pavement maintenance. In providing this funding, the Legislature has increased the role of the California Transportation Commission (Commission), including oversight of SB -1 based on the development of guidelines, review of project lists submitted by cities an d counties, reporting to the State Controller, and receiving reports on completed projects. In April 2019, Council approved a resolution and a list of projects to be constructed using the FY20 funding. Given the delayed availability of SB-1 funding in FY18, FY19, and FY20 the projects previously identified and approved by Council under resolutions 2017-38, 2018-07, and 2019-11 will be rolled into the FY21 program. To that end, the list of street segments included in this report is the same as the one from April 2019. These streets, which are expected to start construction in spring 2020 and completed in fall 2020 (early FY 21) include: Road Name Beg Location End Location Classification Section Area(Sf) Farrell Ave Wren Ave Monterey Rd Arterial 83,506 Eighth St Princevalle St Church St Collector 70,528 Martin St Monterey Rd Chestnut St Collector 47,949 Murray Ave I.O.O.F. Ave Leavesley Rd Collector 114,600 San Ysidro Ave 2250 Ft N Of Leavesley Rd Las Animas Ave Collector 61,245 Monterey Road Cohansey Ave. Leavesley Rd. Arterial 448,000 Camino Arroyo Holloway Rd. Pacheco Pass Hwy Collector 176,300 Camino Arroyo Pacheco Pass Hwy Gilman Rd. Collector 206,800 Chestnut St. 10th St. 450 North of Martin St. Collector 194,100 To-date, the City has received $1,851,418 from the State Controller. We anticipate that the City will receive the full funding through FY20 ($2,354,318), accruing payments received by August 2020 to prior months when the funds were earned. ANALYSIS In order to receive the available SB-1 funds, the City must adopt the list of SB-1 funded pavement maintenance projects through a resolution. “Projects”, in this case, means a list of streets that we anticipate will receive pavement maintenance with SB -1 funds. 10.A Packet Pg. 112 Pavement maintenance can be done in one project, or combined with other planned pavement maintenance projects. A resolution, listing the streets to be included in the annual SB-1 funded project, is due to the Commission by May 1, 2020. The list of street segments was selected using the City’s StreetSaver pavement maintenance database program. Street segments are selected to provide the greatest improvement in average Pavement Condition Index (PCI) for a given funding level. Staff also considered Average Daily Traffic (ADT), Street Functional Classifications (Residential, Collector, or Arterial), current Pavement Condition Index (PCI), types of treatment required, and geographic equity when selecting streets for inclusion on this list. It is anticipated that, while the rehabilitation and resurfacing of the above streets will significantly improve safety, pavement condition and ridability along these particular streets, it is not expected that it will result in significant increase in the Citywide Pavement Condition Index (PCI) for the following reasons: 1. Per the Pavement Management Report (completed by AMS Consulting in January 2020) and Staff’s Sate of City Street pavement condition presentation at the January 27, 2020 Council meeting, the current Citywide PCI is at 62; in order to significantly improve the PCI, say to 67, the City needs to spend approximately $5,000,000 (on average) per year on pavement maintenance, while an average expenditure of approximately $3,400,000 is ne eded to maintain the current PCI level of 62. 2. The percentage of street segments with currently good to fair condition will continue to deteriorate at a faster rate than the benefit gained by the rehabilitation of the street segments included in the SB-1 list. FISCAL IMPACT/FUNDING SOURCE The resolution includes a budget amendment for $2,510,621 to increase the total appropriations to $3,410,621 ($1,056,303, increasing by $156,303 over the existing $900,000 appropriation for FY21, $1,030,367 for FY20, $996,191 for FY19 and $327,760 for FY18) to increase the pavement maintenance revenues to account for the anticipated SB-1 funds. SB-1 requires that cities maintain existing general fund levels for transportation funding at levels equal to, or greater than, their annual average expenditures during FY10, FY11, and FY12, which is known as “maintenance of effort” (MOE) requirement. The bill authorizes the State Controller’s Office to audit local governments for compliance and subject local governments to reimbursing the state for non-compliance. For Gilroy, per the State Controller’s Office, this amounts to approximately $1.2 million annually from the General Fund (which is the average of 3-year expenditures on street maintenance from FY10 - FY12). For FY20 and FY21, the City is scheduled to spend more than $1.2 million in pavement and street maintenance effort using General Fund monies and more than $900,000 using Measure B funds and other Gas Tax revenues, in addition to the SB1 candidate projects. 10.A Packet Pg. 113 NEXT STEPS The attached resolution, once approved, will be sent to the Commission for approval so Gilroy can receive its share of the SB-1 local pavement maintenance funds. Attachments: 1. SB 1 FY21 Resolution 4-6-2020 10.A Packet Pg. 114 1 RESOLUTION NO. 2020-XX RESOLUTION NO. 2020-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE FISCAL YEAR 2020-2021 BUDGET TO INCORPORATE A LIST OF PROJECTS FUNDED BY SENATE BILL 1: T HE ROAD REPAIR AND ACCOUNTABILITY ACT AND TO INCREASE APPROPRIATIONS IN THE ROAD MAINTENANCE AND REHABILITATION FUND BY $2,510,621 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Gilroy receive d $327,760 in RMRA funding in Fiscal Year 2017-18, $996,191 in Fiscal Year 2018-19, and is estimated to receive $1,030,367 in Fiscal Year 2019-2020, and $1,056,303 in Fiscal Year 2020-2021 from SB 1; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high -priority and cost -effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate over 1.4 million square feet of pavement, and implement the complete streets ordinance on streets in the project and into the future; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs A ssessment found that the City’s streets and roads are, on average, in good condition, but 15 percent of the streets are in poor or very poor condition. This revenue will help increase the overall quality of our road system and over the next decade will kee p our streets and roads in a good condition; and 10.A.a Packet Pg. 115 Attachment: SB 1 FY21 Resolution 4-6-2020 [Revision 1] (2678 : LSR SB 1 Funding for 2020-2021) 2 RESOLUTION NO. 2020-XX WHEREAS, without revenue from SB 1, the City’s average Pavement Condition Index, a measure of the pavement condition, would have otherwise continued to decrease at an increasing rate; and WHEREAS, if the Legislature and Governor failed to act, city streets and county roads would have continued to deteriorate, having many and varied negative impacts on our community; and WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and WHEREAS, modernizing the local street and road system provides well - paying construction jobs and boosts local economies; and WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduced vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail also reduces construction time which results in less air pollution from heavy equipment and less water pollution from site run -off; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide. NOW, THEREFORE IT IS HEREBY RESOLVED by the City Council of the City of Gilroy as follows: 1. The foregoing recitals are true and correct. 2. The Capital Improvement Plan (CIP) for fiscal year 2020-2021 is amended to incorporate the following list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues: 10.A.a Packet Pg. 116 Attachment: SB 1 FY21 Resolution 4-6-2020 [Revision 1] (2678 : LSR SB 1 Funding for 2020-2021) Each of the following street segments would receive a pavement treatment consisting of removal and replacement of failed areas (known as “digouts”) and a microsurfacing and/or type II Slurry. This treatment is expected to extend the useful life of each street segment by 5-7 years. The projects are expected to be completed by the end of Fiscal Year 2020-2021. Road Name Beg Location End Location Classification Section Area(Sf) Farrell Ave Wren Ave Monterey Rd Arterial 83,506 Eighth St Princevalle St Church St Collector 70,528 Martin St Monterey Rd Chestnut St Collector 47,949 Murray Ave I.O.O.F. Ave Leavesley Rd Collector 114,600 San Ysidro Ave 2250 Ft N Of Leavesley Rd Las Animas Ave Collector 61,245 Monterey Road Cohansey Ave. Leavesley Rd. Arterial 448,000 Camino Arroyo Venture Wy. Pacheco Pass Hwy Collector 176,300 Camino Arroyo Pacheco Pass Hwy Gilman Rd. Collector 206,800 Chestnut St. 10th St. 450 North of Martin St. Collector 194,100 3. Appropriations for Fiscal Year 2020-21 are hereby increased in the Road Maintenance and Rehabilitation Fund, Fund 215, by $2,510,621. PASSED AND ADOPTED this 6th day of April 2020, by the following vote: AYES: COUNCILMEMBERS: NOES: C OUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ATTEST: Roland Velasco, Mayor Shawna Freels, City Clerk 10.A.a Packet Pg. 117 Attachment: SB 1 FY21 Resolution 4-6-2020 [Revision 1] (2678 : LSR SB 1 Funding for 2020-2021) City of Gilroy STAFF REPORT Agenda Item Title: Award of a Three Year Contract in the Amount of $226,100 to The Pun Group, LLP for Professional Auditing Services to Conduct the City's Annual Financial Audit and Report Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Finance Department Submitted By: Bryce Atkins Prepared By: Bryce Atkins Rosemary Guerrero Strategic Plan Goals  Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Award a three-year, $266,100 contract with two 1-year extension options to The Pun Group, LLP for professional auditing services and authorize the Interim City Administrator to execute such agreement. BACKGROUND The City of Gilroy requested proposals from qualified firms of certified public accountants to audit its financial statements. These audits are to be performed in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States , and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local 10.B Packet Pg. 118 Governments and Non-Profit Organizations and the Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards . The City’s and the South County Regional Wastewater Authority’s (SCRWA) goal is to provide the public and its constituents with a comprehensive financial statement that gives complete and accurate information about their respective financial condition. The scope of the audit includes the Comprehensive Annual Financial Report, Single Audit Act Report, Transportation Development Act Audit and related reports and a separate audit report for SCRWA. The City's current audit firm is White Nelson Diehl Evans LLP and has provided the City's audit for the past seven years. The most recent RFP for professional auditing services was completed in 2013. White Nelson Diehl Evans LLP has performed its audits effectively and met all established timelines. The firm has issued the required audit reports, as well as provided recommendations for effective internal controls and best practices. The firm has given the City guidance on the implementation of new accounting pronouncements and execution of complex accounting transactions. While White Nelson Diehl Evans LLP has provided excellent service, the City is required by law to change auditors. Government Code section 12410.6 (b) ind icates that commencing with the Fiscal Year 2013-14 (FY14) audit, a local agency cannot employ a public accounting firm to provide audit services to a local agency for six consecutive fiscal years. For purposes of calculating the first six year period, the local agency shall not take into account any time that a public accounting firm was employed by the local agency prior to FY14. DISCUSSION The benefits to audit rotation include gaining a new perspective on the organization’s financial operations. Having a fresh perspective to review the City's accounting policies, procedures, internal controls and accounting practices is in the best interest of the City. However, all audit firms are governed by consistent standards (government auditing standards and generally accepted accounting principles (GAAP)). The primary purpose of an audit is to provide an opinion on whether the financial statements present fairly the financial information of the City in conformance with GAAP. The Request for Proposal (RFP) was issued on August 15, 2019 and a notice was published in the San Jose Mercury newspaper, as well as the City Website. Proposals were due back to the City by October 4, 2019. The submission of the qualifications and proposal requirements included a technical proposal (title page, table of contents, transmittal letter, detailed proposal and agreement for professional services) and a separate sealed envelope of the dollar cost bid. The City received 10 responses to the RFP. A review committee consisting of five employees from several City departments (including the Finance Director and Finance Manager for Accounting) were assembled to review the submittals based on the 10.B Packet Pg. 119 established criteria detailed in the RFP. The selection committee considered the following factors:  Firm independence,  No conflicts of interest,  Adherence to RFP instructions,  Submission of a quality control review report,  Technical qualifications,  Experience and performance,  Quality of professional personnel,  Staffing plan,  Audit approach, and  Price (not the primary factor in the selection of the audit firm and evaluated after scoring of technical capabilities – submitted in a separate sealed envelope). The three highest ranking firms included The Pun Group LLP, Maze & Associates, and Clifton Larson Allen LLP. Based on the recommendation of the RFP scoring committee, the three firms were then interviewed with additional questions by the Finance Manager and the Accountant who will be working most closely with the firm. The Pun Group, LLP was selected as the recommendation to Council for the City’s and SCRWA’s next public accounting firm, based on their technical proposal and expertise. The Pun Group is reputable for its government and nonprofit practice in California. Currently they are the principal auditors for cities and towns such as Danville, Napa, Redding and San Bernardino. The firm has been in existence for 12 years. While generally a newer business to the industry than others considered, the firm’s Partners Group provides auditing, accounting and advisory services to numerous government entities throughout the United States. Amongst the group is more than 100 years of combined experience in the industry, and they have become well respected leaders in the industry. The Pun Group has extensive experience with implementation of new Governmental Accounting Standards Board (GASB) standards and audit of pension plans and are well respected leaders in the industry. The personnel are leading experts in the complexities of government accounting, auditing and financial reporting. Their staff has authored and taught courses for the California Society of Certified Public Accountants (CalCPA) and the American Institute of Certified Public Accountants (AICPA) on GASB 68 relating to pensions. They have been speakers at the CalCPA Government Accounting & Auditing Conferences. 10.B Packet Pg. 120 The evaluation committee liked the four phase audit plan presented by the firm, as well as the use of an artificial intelligence platform to work with large amounts of data to detect potential fraud. The firm is based in southern California, but has an office in Walnut Creek, with the engagement partner travelling to the Walnut Creek office at least twice per month. Most of the auditors’ work is conducted off-site, with occasional auditor presence in City Hall. None of the proposed firms had offices within Gilroy. The Pun Group has the lowest cost of the three top ranked firms, although price was not a consideration in the final recommendation. The Pun Group will be a new firm to Gilroy, none of the City’s employees, with the exception of the Interim City Administrator in a prior organization, has experience with this firm. FISCAL IMPACT/FUNDING SOURCE The proposed cost of $66,500 for the FY20 audit services for the Pun Group, LLP is within the City's budgeted amount of $75,931 for the City's Comprehensive Annual Financial Report and for SCRWA’s financial statement audit report. The proposed annual costs have a 3% annual increase, as well as a 10% contingency amount. The total 3-year fiscal impact is for $266,100. Should staff and the Pun Group consent to continuing services for either of the two one-year extensions, staff will bring back to Council for consideration of approval for each extension and its associated cost. FY20 FY21 FY22 Total 3-Year Proposed Cost 10% Contingency Total 3-Year Contractual Agreement Amount $66,500 $68,495 $70,550 $205,545 $20,555 $226,100 CONCLUSION Staff has completed its evaluation of the three highest ranking firms and is recommending that Council award the contract to The Pun Group, LLP to be the next public accounting firm for providing professional auditing services to the City and SCRWA. Attachments: 1. Contract - The Pun Group 10.B Packet Pg. 121 10.B.a Packet Pg. 122 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 123 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 124 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 125 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 126 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 127 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 128 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 129 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 130 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 131 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 132 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 133 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 134 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 135 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 136 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 137 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 138 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 139 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 140 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 141 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 142 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 143 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) 10.B.a Packet Pg. 144 Attachment: Contract - The Pun Group (2660 : Award Contract The Pun Group LLP Audit Firm FY20) City of Gilroy STAFF REPORT Agenda Item Title: Approval of Temporary Memorandums of Agreement with AFSCME Local 101, Gilroy Management Association, Gilroy Firefighters IAFF Local 2805 and the Gilroy Police Officers Association, and Temporary Policy Memorandums with Unrepresented Employees, in Response to the COVID-19 Pandemic and Shelter in Place Orders Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety  Workforce Stability ☐ Public Engagement RECOMMENDATION Approve, and authorize the Interim City Administrator to execute the following: a) A temporary memorandum of agreement with the American Federation of State, County, and Municipal Employees (AFSCME), Local 101 regarding wages, hours and working conditions in response to the COVID-19 pandemic and shelter in place orders (copy attached). b) A temporary memorandum of agreement with the Gilroy Management Association regarding wages, hours and working conditions in response to the COVID-19 pandemic and shelter in place orders (copy attached). 10.C Packet Pg. 145 c) A temporary memorandum of agreement with Gilroy Firefighters IAFF, Local 2805 regarding wages, hours and working conditions in response to the COVID-19 pandemic (copy attached). d) A temporary memorandum of agreement with the Gilroy Police Officers Association regarding wages, hours and working conditions in response to the COVID-19 pandemic (copy attached). e) A temporary policy memorandum with unrepresented employees in each of the following groups in response to the COVID-19 pandemic and shelter in place orders (copies attached): 1. Full-time Unrepresented Confidential Non-Exempt & Exempt Employees 2. Full-time Unrepresented Council-Appointed Employees 3. Part-Time/Temporary/Seasonal Unrepresented Hourly & Exempt Employees BACKGROUND In response to the Coronavirus (COVID-19) pandemic, on March 13, 2020, the City of Gilroy declared a state of emergency that was later ratified by the Gilroy City Council on March 16, 2020. In addition, on March 16, 2020, the Santa Clara County Department of Public Health issued a directive to all individuals living in the county to shelter in their place of residence beginning March 17, 2020. Under the shelter in place order, only very limited essential business es and services can be open to the public. As a result, many of the City’s non-essential employees must shelter in their place of residence. At this time, other than our emergency responders, only limited City staff are working to support our public safety departments and provide basic and essential services to the community. EXECUTIVE SUMMARY The mandatory shelter in place order along with some recent federal regulations issued in response to COVID-19 has resulted in some impacts to employee wages, hours and working conditions that are mandatory subjects of bargaining under the Miles Milias Brown Act. In addition, Gilroy’s emergency responders are working in an unprecedented environment to provide emergency medical services, fire response, and law enforcement services and response to the Gilroy community. Further, the City of Gilroy had less than a one-day notice for the official shelter in place order that applied to most of the city’s non-safety employees. In light of the rapidly evolving situation, and following the direction of the Gilroy City Council, the City reached out and communicated with all of the City’s bargaining units to address matters related to wages, hours, and working conditions of city employees 10.C Packet Pg. 146 resulting from the COVID-19 pandemic and shelter in place order. As a result of the discussions, the City has reached temporary agreements with all recognized bargaining units. In addition, similar policy memoranda have been developed for the City’s unrepresented employees. The goal of the temporary agreements and policy memoranda was to keep employees whole through the end of the mandatory shelter in place order or April 30, 2020 whichever occurs first. We now know that the initial April 7, 2020 shelter in place end date has been extended t hrough May 3, 2020. A copy of each agreement and policy memorandum is attached; however, the following summarizes the agreements made with each of the recognized bargaining units and outlines the terms of policy memorand a for unrepresented employees: AFSCME, Local 101:  Provision of temporary emergency pay to full pay from March 17 – March 31, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Application of the two weeks of federal emergency sick leave beginning April 1, 2020.  Continued temporary emergency pay to full pay following exhaustion of the federal emergency sick leave through April 30, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Essential employees will continue to work as scheduled either at the work place or through an emergency telecommuting agreement.  Employees not ready, willing and able to serve as disaster service workers and/or to perform essential government services will receive the federal emergency sick leave, but not the temporary emergency pay, and will utilize accrued leave time to cover their inability to work. FMLA, to include the emergency family medical leave benefits, will be applied consistent with the regulations.  Vacation accrual caps will be temporarily lifted until 1/1/21. Gilroy Management Association:  Provision of temporary emergency pay to full pay from March 17 – March 31, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Application of the two weeks of federal emergency sick leave beginning April 1, 2020. 10.C Packet Pg. 147  Continued temporary emergency pay to full pay following exhaustion of the federal emergency sick leave through April 30, 2020 for employees ready, willing, and able to work as disaster service workers and/or to perform essential government services as needed.  Essential employees will continue to work as scheduled either at the work place or through an emergency telecommuting agreement.  Employees not ready, willing and able to serve as disaster service workers and/or to perform essential government services will receive the federal emergency sick leave, but not the temporary emergency pay, and will utilize accrued leave time to cover their inability to work. FMLA, to include the emergency family medical leave benefits, will be applied consistent with the regulations.  Vacation accrual caps are temporarily lifted until 1/1/21. Gilroy Firefighters Association, IAFF, Local 2805:  Employees are essential emergency responders and continue to provide services to the community. As emergency responders, employees are not eligible for the federally mandated emergency sick leave or emergency family medical leave.  Provision of ninety-six (96) hours (56-hour workweek) or eighty (80) hours (40- hour workweek) of COVID-19 sick leave for qualified absences through December 31, 2020. Qualified, COVID -related, absences are defined within the agreement. Additional hours can be provided as ne eded through mutual agreement.  Vacation accrual caps are temporarily lifted until 1/1/21. Gilroy Police Officers Association:  Employees are essential emergency responders and continue to provide services to the community. As emergency responders, employees are not eligible for the federally mandated emergency sick leave or emergency family medical leave.  Provision of eighty (80) hours (40-hour workweek) of COVID-19 sick leave for qualified absences through December 31, 2020. Qualified, COVID -related, absences are defined within the agreement. Additional hours can be provided as needed through mutual agreement.  Vacation accrual caps are temporarily lifted until 1/1/21. 10.C Packet Pg. 148 Full-Time Unrepresented Confidential Non-Exempt & Exempt Employees:  Provision of temporary emergency pay to full pay from March 17 – March 31, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Application of the two weeks of federal emergency sick leave beginning April 1, 2020.  Continued temporary emergency pay to full pay following exhaustion of the federal emergency sick leave through April 30, 2020 for employees ready, willing, and able to work as disaster service workers and/or to perform essential government services as needed.  Essential employees will continue to work as scheduled either at the work place or through an emergency telecommuting agreement.  Employees not ready, willing and able to serve as disaster service workers and/or to perform essential government services will receive the federal emergency sick leave, but not the temporary emergency pay, and will utilize accrued leave time to cover their inability to work. FMLA, to include the emergency family medical leave benefits, will be applied co nsistent with the regulations.  Vacation accrual caps are temporarily lifted until 1/1/21. Full-Time, City Council-Appointed Employees (Interim City Administrator & City Clerk):  Provision of temporary emergency pay to full pay from March 17 – March 31, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Application of the two weeks of federal emergency sick leave beginning April 1, 2020.  Continued temporary emergency pay t o full pay following exhaustion of the federal emergency sick leave through April 30, 2020 for employees ready, willing, and able to work as disaster service workers and/or to perform essential government services as needed.  Essential employees will continue to work as scheduled either at the work place or through an emergency telecommuting agreement. 10.C Packet Pg. 149  Employees not ready, willing and able to serve as disaster service workers and/or to perform essential government services will receive the federal emergency sick leave, but not the temporary emergency pay, and will utilize accrued leave time to cover their inability to work. FMLA, to include the emergency family medical leave benefits, will be applied consistent with the regulations.  Vacation accrual caps are temporarily lifted until 1/1/21. Part-Time/Temporary/Seasonal Unrepresented Hourly & Exempt Employees:  Provision of temporary emergency pay to regularly scheduled part -time hours from March 17 – March 31, 2020 for employees ready, willing and able to work as disaster service workers and/or to perform essential government services as needed.  Application of the two weeks of federal emergency sick leave beginning April 1, 2020. Emergency sick leave will be based upon regular part-time hours worked over a two-week period. If the employee works a sporadic work schedule, a six- month look back period will be used to determine average weekly hours worked.  Continued temporary emergency pay to regularly scheduled part -time hours following exhaustion of the federal emergency sick leave through April 30, 2020 for employees ready, willing, and able to work as disaster service workers and/or to perform essential government services as needed.  Essential employees will continue to work as scheduled either at the work place or through an emergency telecommuting agreement (limited telecommuting in the case of part-time/temporary/seasonal employees).  Employees not ready, willing and able to serve as disaster service workers and/or to perform essential government services will receive the federal emergency sick leave, but not the temporary emergency pay. FMLA, to include the emergency family medical leave benefits, will be applied consistent with the regulations. FISCAL IMPACT There is no new budget request needed for the provis ion of these temporary employee agreements or policy memoranda. Existing budget allocations for employee wages can cover the emergency sick leave and temporary emergency pay being provided to employees. While doubtful, there may be federal reimbursement for the federally mandated emergency sick leave and emergency family leave benefits. The City does expect to experience loss of revenue in certain departments where revenue offsets the 10.C Packet Pg. 150 cost of staff and this will likely result in an impact to the General Fund. We anticipate that this revenue loss can be offset by savings due to vacant positions and/or other savings resulting from the temporary closure of City offices to include canceled training, canceled programs/materials/supplies, and/or other similar cost reductions. CONCLUSION Gilroy’s emergency responders are doing an amazing job serving the community during this difficult time. We appreciate their continued dedication and hope that all employees working remain safe and illness free. All employees of the City are grateful for the provision of temporary sick leave and/or temporary emergency pay to ensure employees remain on regular paid status through this pandemic crisis. All employees want to be back at work serving the community as soon as it is safe t o do so. Attachments: 1. AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 2. Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 3. Gilroy Firefighters, IAFF, Local 2805 Temporary Memorandum of Agreement to Address COVID-19 4. Gilroy Police Officers Association Temporary Memorandum of Agreement to Address COVID-19 5. Policy Memorandum for Unrepresented Full-Time Confidential Non-Exempt and Exempt Employees to Address COVID-19 6. Policy Memorandum for Unrepresented Full-Time Council-Appointed Employees to Address COVID-19 7. Policy Memorandum for Unrepresented Part-Time/Temporary/Seasonal Hourly and Exempt Employees to Address COVID-19 10.C Packet Pg. 151 10.C.a Packet Pg. 152 Attachment: AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with Employee 10.C.a Packet Pg. 153 Attachment: AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with Employee 10.C.a Packet Pg. 154 Attachment: AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with Employee 10.C.a Packet Pg. 155 Attachment: AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with Employee 10.C.a Packet Pg. 156 Attachment: AFSCME, Local 101 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with Employee 10.C.b Packet Pg. 157 Attachment: Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements 10.C.b Packet Pg. 158 Attachment: Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with 10.C.b Packet Pg. 159 Attachment: Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with 10.C.b Packet Pg. 160 Attachment: Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with 10.C.b Packet Pg. 161 Attachment: Gilroy Management Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements with 10.C.c Packet Pg. 162 Attachment: Gilroy Firefighters, IAFF, Local 2805 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements 10.C.c Packet Pg. 163 Attachment: Gilroy Firefighters, IAFF, Local 2805 Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements 10.C.d Packet Pg. 164 Attachment: Gilroy Police Officers Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements 10.C.d Packet Pg. 165 Attachment: Gilroy Police Officers Association Temporary Memorandum of Agreement to Address COVID-19 (2718 : Temporary Agreements Page 1 of 3 City of Gilroy 7351 Rosanna Street GILROY, CALIFORNIA 95020 Telephone (408) 846-0202 FAX: (408) 846-0500 http://www.ci.gilroy.ca.us Jimmy Forbis Interim City Administrator Emergency Policy Memorandum Effective April 1, 2020 To: All Full-Time Unrepresented Employees, to include:  Confidential, Non-Exempt Employees  Confidential, Exempt, Mid-Management Employees  Confidential, Exempt, Department Head Employees From: Jimmy Forbis, Interim City Administrator Subject: COVID-19 Employee Regulations, Compensation, and Leaves On March 16, 2020, the City Council for the City of Gilroy (“City”) adopted a resolution declaring a state of emergency in response to the COVID-19 pandemic. On March 16, 2020, Santa Clara County issued an “Order Of The Health Officer Of The County Of Santa Clara Directing All Individuals Living In The County To Shelter At Their Place Of Residence Except That They May Leave To Provide Or Receive Certain Essential Services Or Engage In Certain Essential Activities And Work For Essential Businesses And Governmental Services; Exempting Individuals Experiencing Homelessness From The Shelter In Place Order But Urging Them To Find Shelter And Government Agencies To Provide It; Directing All Businesses And Governmental Agencies To Cease Non-Essential Operations At Physical Locations In The County; Prohibiting All Non-Essential Gatherings Of Any Number Of Individuals; And Ordering Cessation Of All Non-Essential Travel.” (Shelter in Place Order.) The Santa Clara County Shelter in Place Order directs residents to shelter at their place of residence and restricts travel for both residents and non-residents of the County. The Shelter in Place Order identifies specific exceptions, including travel and work required to perform Essential Government Functions and Minimum Basic Operations. On March 18, 2020, the President signed the Families First Coronavirus Response Act (“FFCRA”), which establishes both the Emergency Paid Sick Leave (EPSL)(Section 5102) and Emergency Family and Medical Leave (EFMLA)(Section 3102) Programs. The City of Gilroy has the option to exclude Emergency Responders from eligibility for EPSL and EFMLA. The following represents the policy direction regarding the current working conditions for City emplo yees who are full-time and unrepresented from March 16, 2020 through the earlier of (1) the end of the Shelter in Place Order, or (2) April 30, 2020. This situation continues to evolve and conditions will be subject to change. 10.C.e Packet Pg. 166 Attachment: Policy Memorandum for Unrepresented Full-Time Confidential Non-Exempt and Exempt Employees to Address COVID-19 (2718 : Page 2 of 3 1. All full-time unrepresented employees are designated as Disaster Service Workers under California Government Coder Section 3100, et seq. and are required to be available to work during the Shelter in Place Order. 2. Employees who are required to come to the worksite to maintain Essential Government Functions or to provide Minimum Basic Operations are expected to work onsite to provide services, either on a full- time, a part time, or a periodic basis. To the extent possible, the City will preschedule employees’ onsite work and will provide as much notice as possible when employees are unexpectedly called in to a worksite. While at the worksite, employees are expected to maintain social distancing, hand washing, use appropriate PPE, and other protocols instituted to reduce the spread of COVID-19. 3. Employees who have an approved Emergency Telecommuting Agreement and are assigned to perform work remotely for all or a portion of their normal work shift will be permitted to do so where practical. 4. Employees who are not performing work at the worksite and who are not specifically approved and assigned to work remotely (approved Emergency Telecommuting Agreement in place) remain on duty and are subject to call in (either for onsite work or remote work). Employees are expected to provide their supervisors current contact information and to be available to return to the worksite and for telework during their normal working hours. Each employee must check in with their supervisor daily at a time designated by the supervisor to confirm their ability to work and receive any assignments. Any employee who is not available to return to the worksite or for telework (when an Emergency Telecommuting Agreement is in place) during their normal working hours will notify their supervisor and will be permitted to use sick leave (if employee is ill or on approved FMLA), vacation, or other paid leave to cover their absence as appropriate following existing leave use practices (e.g. if an employee is not ill and is out of the area and not available to return to essential work, the employee should be requesting and using vacation leave or other paid leave to account for their time). 5. The City desires to keep employees whole during the Shelter in Place Order. Therefore, employees who are ready, willing and able to work but whom the City has not called in to the worksite and who do not have an Emergency Telecommuting Agreement in place will be provided Temporary Emergency Pay for all regularly scheduled work hours from the date of the Shelter in Place Order through March 31. 6. Emergency Paid Sick Leave a. Effective April 1, each eligible full-time unrepresented employee will be credited Emergency Paid Sick Leave (EPSL) pursuant to the FFCRA. Each eligible full-time employee will receive a bank of hours equal to the number of hours the employee works on average over a 2-week period (e.g., a full-time employee will receive 80 hours). EPSL will be used to cover any absences1 when the employee is not at the worksite and is not performing remote work pursuant to an Emergency Telecommuting Agreement due to the Shelter in Place Order. EPSL may also be used to cover any other absence permitted under the FFCRA. 2 EPSL has no cash value and may only be used to cover qualified absences through December 31, 2020. 1 Exempt managers are to account for full day absences using leave time following existing practice. 2 FFCRA defines additional reasons EPSL may be used while the employee receives full pay: employee is unable to work because t he employee is quarantined (pursuant to Federal, State or Local Government order or advice of a health care provider) and /or the employee is experiencing COVID-19 symptoms and is seeking a medical diagnosis. Under EPSL, eighty (80) hours at two -thirds pay can be granted if the employee is unable to work because of a bona fide need to care for an individual subject to quarant ine (pursuant to Federal, State or Local Government order or advice of a health care provider), or to care for a child (under 18 years of a ge) whose school or child care provider is closed or unavailable due to COVID -19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Treasury and La bor. 10.C.e Packet Pg. 167 Attachment: Policy Memorandum for Unrepresented Full-Time Confidential Non-Exempt and Exempt Employees to Address COVID-19 (2718 : Page 3 of 3 b. In the event an eligible employee’s pay rate exceeds the maximum hourly payment under the EPSL, the City will provide Temporary Emergency Pay to make up the difference between the eligible employee’s hourly pay rate and the maximum EPSL pay during the period from April 1, 2020 through the earlier of the termination of the Shelter in Place Order or April 30, 2020. c. In the event an eligible employee who is ready, willing and able to work but whom the City has not called in to the worksite and who does not have an approved Emergency Telecommuting Agreement exhausts EPSL, the employee will be provided Temporary Emergency Pay for all regularly scheduled work hours from the time they exhaust EPSL until the earlier of (a) the termination of the Shelter in Place Order or (b) April 30, 2020. d. The combination of work, EPSL, and Temporary Emergency Pay will be sufficient to provide eligible employees full pay through the earlier of the end of the Shelter in Place Order or April 30, 2020. The City will communicate with full-time unrepresented employees how it intends to address absences after that date if the Shelter in Place is extended beyond April 30, 2020. 7. COVID-19 Sick Leave for Emergency Responders. a. Emergency Responders, including the Fire Chief, Police Chief, are hereby excluded from eligibility for both EFMLA (Sections 3101, et seq.) and EPSL (Sections 5101 et seq.) benefits under the FFCRA. A full list of excluded classifications is attached. However, the City will provide each first responder with eighty (80) hours of COVID-19 Sick Leave (C19 Sick Leave). C19 Sick Leave will be placed in a separate bank, and may be used solely to cover qualified absences through December 31, 2020. C19 Sick Leave has no cash value and will expire on December 31, 2020. b. The following are qualified absences for C19 Sick Leave: i. The employee has been diagnosed with COVID-19; ii. The employee is experiencing symptoms of COVID-19, has seen a health care provider based on those symptoms, and is awaiting a medical diagnosis; iii. The employee has had a confirmed exposure to COVID-19, has seen a health care provider based on that exposure, and is awaiting a medical diagnosis; or iv. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID–19. 8. Beginning with the March payroll to be issued on April 1, 2020 and through December payroll to be issued on January 2, 2021, vacation caps are suspended. However, vacation earned in excess of the existing cap (“Excess Vacation”) is not vested and has no cash value (e.g., Excess Vacation will not be paid out upon separation). Employees are expected to bring vacation balances within the existing MOU cap by January 1, 2021. Current MOU vacation caps will be enforced beginning with the January 2021 payroll to be issued on February 1, 2021. Any Excess Vacation will be forfeited at that time. 9. The City of Gilroy will communicate any changes to this policy memorandum as soon as practicable after implementation. 10.C.e Packet Pg. 168 Attachment: Policy Memorandum for Unrepresented Full-Time Confidential Non-Exempt and Exempt Employees to Address COVID-19 (2718 : Page 1 of 3 City of Gilroy 7351 Rosanna Street GILROY, CALIFORNIA 95020 Telephone (408) 846-0202 FAX: (408) 846-0500 http://www.ci.gilroy.ca.us Jimmy Forbis Interim City Administrator Emergency Policy Memorandum Effective April 1, 2020 To: All Full-Time Council Appointed Employees, to include:  City Administrator  City Clerk From: City Council Subject: COVID-19 Employee Regulations, Compensation, and Leaves On March 16, 2020, the City Council for the City of Gilroy (“City”) adopted a resolution declaring a state of emergency in response to the COVID-19 pandemic. On March 16, 2020, Santa Clara County issued an “Order Of The Health Officer Of The County Of Santa Clara Directing All Individuals Living In The County To Shelter At Their Place Of Residence Except That They May Leave To Provide Or Receive Certain Essential Services Or Engage In Certain Essential Activities And Work For Essential Businesses And Governmental Services; Exempting Individuals Experiencing Homelessness From The Shelter In Place Order But Urging Them To Find Shelter And Government Agencies To Provide It; Directing All Businesses And Governmental Agencies To Cease Non-Essential Operations At Physical Locations In The County; Prohibiting All Non-Essential Gatherings Of Any Number Of Individuals; And Ordering Cessation Of All Non-Essential Travel.” (Shelter in Place Order.) The Santa Clara County Shelter in Place Order directs residents to shelter at their place of residence and restricts travel for both residents and non-residents of the County. The Shelter in Place Order identifies specific exceptions, including travel and work required to perform Essential Government Functions and Minimum Basic Operations. On March 18, 2020, the President signed the Families First Coronavirus Response Act (“FFCRA”), which establishes both the Emergency Paid Sick Leave (EPSL)(Section 5102) and Emergency Family and Medical Leave (EFMLA)(Section 3102) Programs. The City of Gilroy has the option to exclude Emergency Responders from eligibility for EPSL and EFMLA. The following represents the policy direction regarding the current working conditions for full-time Council- Appointed employees from March 16, 2020 through the earlier of (1) the end of the Shelter in Place Order, or (2) April 30, 2020. This situation continues to evolve and conditions will be subject to change. 10.C.f Packet Pg. 169 Attachment: Policy Memorandum for Unrepresented Full-Time Council-Appointed Employees to Address COVID-19 (2718 : Temporary Page 2 of 3 1. All full-time Council-appointed employees are designated as Disaster Service Workers under California Government Coder Section 3100, et seq. and are required to be available to work during the Shelter in Place Order. 2. Employees who are required to come to the worksite to maintain Essential Government Functions or to provide Minimum Basic Operations are expected to work onsite to provide services, either on a full- time, a part time, or a periodic basis. To the extent possible, the City will preschedule employees’ onsite work and will provide as much notice as possible when employees are unexpectedly called in to a worksite. While at the worksite, employees are expected to maintain social distancing, hand washing, use appropriate PPE, and other protocols instituted to reduce the spread of COVID-19. 3. Council-appointed employees may work remotely for all or a portion of their normal work shift and will be permitted to do so where practical. 4. Employees who are not performing work at the worksite and who are not specifically approved and assigned to work remotely (approved Emergency Telecommuting Agreement in place) remain on duty and are subject to call in (either for onsite work or remote work). Employees are expected to be available to return to the worksite and for telework during their normal working hours and as needed by City Council. Any employee who is not available to return to the worksite or for telework (when an Emergency Telecommuting Agreement is in place) during their normal working hours will notify their supervisor and will be permitted to use sick leave (if employee is ill or on approved FMLA), vacation, or other paid leave to cover their absence as appropriate following existing leave use practices (e.g. if an employee is not ill and is out of the area and not available to return to essential work, the employee should be requesting and using vacation leave or other paid leave to account for their time). 5. The City desires to keep employees whole during the Shelter in Place Order. Therefore, employees who are ready, willing and able to work but whom the City has not called in to the worksite and who do not have an Emergency Telecommuting Agreement in place will be provided Temporary Emergency Pay for all regularly scheduled work hours from the date of the Shelter in Place Order through March 31. 6. Emergency Paid Sick Leave a. Effective April 1, each eligible full-time Council-appointed employee will be credited Emergency Paid Sick Leave (EPSL) pursuant to the FFCRA. Each eligible full-time employee will receive a bank of hours equal to the number of hours the employee works on average over a 2-week period (e.g., a full-time employee will receive 80 hours). EPSL will be used to cover any absences1 when the employee is not at the worksite and is not performing remote work pursuant to an Emergency Telecommuting Agreement due to the Shelter in Place Order. EPSL may also be used to cover any other absence permitted under the FFCRA. 2 EPSL has no cash value and may only be used to cover qualified absences through December 31, 2020. b. In the event an eligible employee’s pay rate exceeds the maximum hourly payment under the EPSL, the City will provide Temporary Emergency Pay to make up the difference between the 1 Exempt managers are to account for full day absences using leave time following existing practice. 2 FFCRA defines additional reasons EPSL may be used while the employee receives full pay: employee is unable to work because t he employee is quarantined (pursuant to Federal, State or Local Government order or ad vice of a health care provider) and/or the employee is experiencing COVID-19 symptoms and is seeking a medical diagnosis. Under EPSL, eighty (80) hours at two -thirds pay can be granted if the employee is unable to work because of a bona fide need to care f or an individual subject to quarantine (pursuant to Federal, State or Local Government order or advice of a health care provider), or to care for a child (under 18 years of a ge) whose school or child care provider is closed or unavailable due to COVID -19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Treasury and La bor. 10.C.f Packet Pg. 170 Attachment: Policy Memorandum for Unrepresented Full-Time Council-Appointed Employees to Address COVID-19 (2718 : Temporary Page 3 of 3 eligible employee’s hourly pay rate and the maximum EPSL pay during the period from April 1, 2020 through the earlier of the termination of the Shelter in Place Order or April 30, 2020. c. In the event an eligible employee who is ready, willing and able to work but whom the City has not called in to the worksite and who does not have an approved Emergency Telecommuting Agreement exhausts EPSL, the employee will be provided Temporary Emergency Pay for all regularly scheduled work hours from the time they exhaust EPSL until the earlier of (a) the termination of the Shelter in Place Order or (b) April 30, 2020. d. The combination of work, EPSL, and Temporary Emergency Pay will be sufficient to provide eligible employees full pay through the earlier of the end of the Shelter in Place Order or April 30, 2020. The City will communicate with full-time unrepresented employees how it intends to address absences after that date if the Shelter in Place is extended beyond April 30, 2020. 7. Beginning with the March payroll to be issued on April 1, 2020 and through December payroll to be issued on January 2, 2021, vacation caps are suspended. However, vacation earned in excess of the existing cap (“Excess Vacation”) is not vested and has no cash value (e.g., Excess Vacation will not be paid out upon separation). Employees are expected to bring vacation balances within the existing MOU cap by January 1, 2021. Current MOU vacation caps will be enforced beginning with the January 2021 payroll to be issued on February 1, 2021. Any Excess Vacation will be forfeited at that time. 8. The City of Gilroy will communicate any changes to this policy memorandum as soon as practicable after implementation. 10.C.f Packet Pg. 171 Attachment: Policy Memorandum for Unrepresented Full-Time Council-Appointed Employees to Address COVID-19 (2718 : Temporary Page 1 of 3 City of Gilroy 7351 Rosanna Street GILROY, CALIFORNIA 95020 Telephone (408) 846-0202 FAX: (408) 846-0500 http://www.ci.gilroy.ca.us Jimmy Forbis Interim City Administrator Emergency Policy Memorandum Effective April 1, 2020 To: All Part-Time/Temporary/Seasonal Unrepresented Employees (Hourly and Exempt) From: Jimmy Forbis, Interim City Administrator Subject: COVID-19 Employee Regulations, Compensation, and Leaves for Part- Time/Temporary/Seasonal Unrepresented Employees (Hourly and Exempt) On March 16, 2020, the City Council for the City of Gilroy (“City”) adopted a resolution declaring a state of emergency in response to the COVID-19 pandemic. On March 16, 2020, Santa Clara County issued an “Order Of The Health Officer Of The County Of Santa Clara Directing All Individuals Living In The County To Shelter At Their Place Of Residence Except That They May Leave To Provide Or Receive Certain Essential Services Or Engage In Certain Essential Activities And Work For Essential Businesses And Governmental Services; Exempting Individuals Experiencing Homelessness From The Shelter In Place Order But Urging Them To Find Shelter And Government Agencies To Provide It; Directing All Businesses And Governmental Agencies To Cease Non-Essential Operations At Physical Locations In The County; Prohibiting All Non-Essential Gatherings Of Any Number Of Individuals; And Ordering Cessation Of All Non-Essential Travel.” (Shelter in Place Order.) The Santa Clara County Shelter in Place Order directs residents to shelter at their place of residence and restricts travel for both residents and non-residents of the County. The Shelter in Place Order identifies specific exceptions, including travel and work required to perform Essential Government Functions and Minimum Basic Operations. On March 18, 2020, the President signed the Families First Coronavirus Response Act (“FFCRA”), which establishes both the Emergency Paid Sick Leave (EPSL)(Section 5102) and Emergency Family and Medical Leave (EFMLA)(Section 3102) Programs. The City of Gilroy has the option to exclude Emergency Responders from eligibility for EPSL and EFMLA. The following represents the policy direction regarding the current working conditions for City employees who are unrepresented part-time/temporary/seasonal from March 16, 2020 through the earlier of (1) the end of the Shelter in Place Order, or (2) April 30, 2020. This situation continues to evolve and conditions will be subject to change. 10.C.g Packet Pg. 172 Attachment: Policy Memorandum for Unrepresented Part-Time/Temporary/Seasonal Hourly and Exempt Employees to Address COVID-19 (2718 Page 2 of 3 1. All current and active part-time/temporary/seasonal unrepresented employees are designated as Disaster Service Workers under California Government Coder Section 3100, et seq. and are required to be available to work during the Shelter in Place Order. 2. Employees who are required to come to the worksite to maintain Essential Government Functions or to provide Minimum Basic Operations are expected to work onsite to provide services on a part-time or periodic basis as needed. To the extent possible, the City will preschedule employees’ onsite work and will provide as much notice as possible when employees are unexpectedly called in to a worksite. While at the worksite, employees are expected to maintain social distancing, hand washing, use appropriate PPE, and other protocols instituted to reduce the spread of COVID-19. 3. Ongoing part-time employees who have an approved Emergency Telecommuting Agreement and are assigned to perform work remotely for all or a portion of their normal work shift will be permitted to do so where practical. Emergency telecommuting will have very limited application to part- time/temporary/seasonal employees. 4. Employees who are not performing work at the worksite and who are not specifically approved and assigned to work remotely (approved Emergency Telecommuting Agreement in place) remain on duty and are subject to call in (either for onsite work or remote work). Employees are expected to provide their supervisors current contact information and to be available to return to the worksite and for telework during their normal working hours. Each employee must check in with their supervisor daily at a time designated by the supervisor to confirm their ability to work and receive any assignments. Any employee who is not available to return to the worksite or for telework (when an Emergency Telecommuting Agreement is in place) during their normal working hours will notify their supervisor as soon as possible. 5. The City desires to keep employees whole during the Shelter in Place Order. Therefore, employees who are ready, willing and able to work but whom the City has not called in to the worksite and who do not have an Emergency Telecommuting Agreement in place will be provided Temporary Emergency Pay for all regularly scheduled work hours from the date of the Shelter in Place Order through March 31. If the part-time/temporary/seasonal employee is not ready, willing and able to work, Emergency Family and Medical Leave may apply and will be evaluated on a case-by-case basis. 6. Emergency Paid Sick Leave a. Effective April 1, each eligible unrepresented part-time/temporary/seasonal employee will be credited Emergency Paid Sick Leave (EPSL) pursuant to the FFCRA. Each eligible part- time/temporary/seasonal employee will receive a bank of hours equal to the number of hours the employee is typically scheduled to work over a 2-week period1. EPSL will be used to cover any absences when the employee is not at the worksite and is not performing remote work pursuant to an Emergency Telecommuting Agreement due to the Shelter in Place Order. EPSL may also be used to cover any other absence permitted under the FFCRA. 2 EPSL has no cash value and may only be used to cover qualified absences through December 31, 2020. 1 If the regularly scheduled hours are unknown, or if the employee has a variable work schedule, a six month average will be used to calculate the average daily hours (the six month look back period will be September 21, 2019 – March 20, 2020; if part-time employee was hired during this time period, the average will be calculated from date of hire – March 20, 2020). 2 FFCRA defines additional reasons EPSL may be used while the employee receives full pay: employee is unable to work because t he employee is quarantined (pursuant to Federal, State or Local Government order or advice of a health care provider) and/or the employee is experiencing COVID-19 symptoms and is seeking a medical diagnosis. Under EPSL, eighty (80) hours at two -thirds pay can be granted if the employee is unable to wo rk because of a bona fide need to care for an individual subject to quarantine (pursuant 10.C.g Packet Pg. 173 Attachment: Policy Memorandum for Unrepresented Part-Time/Temporary/Seasonal Hourly and Exempt Employees to Address COVID-19 (2718 Page 3 of 3 b. In the event an eligible employee’s pay rate exceeds the maximum hourly payment under the EPSL, the City will provide Temporary Emergency Pay to make up the difference between the eligible employee’s hourly pay rate and the maximum EPSL pay during the period from April 1, 2020 through the earlier of the termination of the Shelter in Place Order or April 30, 2020. c. In the event an eligible employee who is ready, willing and able to work but whom the City has not called in to the worksite and who does not have an approved Emergency Telecommuting Agreement exhausts EPSL, the employee will be provided Temporary Emergency Pay for all regularly scheduled work hours from the time they exhaust EPSL until the earlier of (a) the termination of the Shelter in Place Order or (b) April 30, 2020. d. The combination of work, EPSL, and Temporary Emergency Pay will be sufficient to provide eligible employees full pay through the earlier of the end of the Shelter in Place Order or April 30, 2020. The City will communicate with full-time unrepresented employees how it intends to address absences after that date if the Shelter in Place is extended beyond April 30, 2020. 7. COVID-19 Sick Leave for Emergency Responders. a. Part-Time/Temporary/Seasonal Emergency Responders, including the Interim Fire Chief, Police Records Technicians, Property & Evidence Technicians, and Reserve Police Officers are hereby excluded from eligibility for both EFMLA (Sections 3101, et seq.) and EPSL (Sections 5101 et seq.) benefits under the FFCRA. A full list of excluded part-time/temporary/seasonal classifications is attached. However, the City will provide each first responder with COVID-19 Sick Leave (C19 Sick Leave) based on the average hours the employee is typically scheduled to work over a two week period. C19 Sick Leave will be placed in a separate bank, and may be used solely to cover qualified absences through December 31, 2020. C19 Sick Leave has no cash value and will expire on December 31, 2020. b. The following are qualified absences for C19 Sick Leave: i. The employee has been diagnosed with COVID-19; ii. The employee is experiencing symptoms of COVID-19, has seen a health care provider based on those symptoms, and is awaiting a medical diagnosis; iii. The employee has had a confirmed exposure to COVID-19, has seen a health care provider based on that exposure, and is awaiting a medical diagnosis; or iv. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID–19. 8. The City of Gilroy will communicate any changes to this policy memorandum as soon as practicable after implementation. to Federal, State or Local Government order or advice of a health care provider), or to care for a child (under 18 years of a ge) whose school or child care provider is closed or unavailable due to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Treasury and La bor. 10.C.g Packet Pg. 174 Attachment: Policy Memorandum for Unrepresented Part-Time/Temporary/Seasonal Hourly and Exempt Employees to Address COVID-19 (2718 City of Gilroy STAFF REPORT Agenda Item Title: Approval of an Employment Agreement for Interim City Administrator Jimmy Forbis as Recommended by Council Sub- Committee Members Marie Blankley, Dion Bracco and Mayor Roland Velasco Meeting Date: April 6, 2020 From: Jimmy Forbis, Interim City Administrator Department: City Council Submitted By: Roland Velasco Prepared By: Roland Velasco LeeAnn McPhillips Strategic Plan Goals ☐ Fiscal Stability ☐ Downtown Revitalization ☐ Economic Development ☐ Neighborhood Services ☐ Enhanced Public Safety ☐ Workforce Stability ☐ Public Engagement RECOMMENDATION Approve an employment agreement with Interim City Administrator Jimmy Forbis setting forth the compensation, benefits, and terms associated with his appointment, as recommended by Council sub-committee members Marie Blankley, Dion Bracco and Mayor Roland Velasco. BACKGROUND On March 2, 2020, the City Council appointed Jimmy Forbis to the position of Interim City Administrator effective March 13, 2020. In addition, the Council formed a sub - committee to determine the compensation and employment terms associated with the appointment. Councilmember Blankley, Councilmember Bracco, and Mayor Velasco 10.D Packet Pg. 175 were selected to serve on the sub-committee. The sub-committee met with Mr. Forbis and reached a tentative agreement on the compensation, benefits and employment terms associated with his appointment to Interim City Administrator. SUMMARY The sub-committee is recommending the City Council approve the attached Employment Agreement with Mr. Forbis. The main elements of the agreement include:  Annual Salary of $220,716 or $18,393 per month  Vacation accrual at the rate of three weeks annually (10 hours accrued per month)  Three additional days of administrative leave to be used during fiscal year 20 or 21  Assignment of an existing city pool vehicle for business use  Full return rights to position of Finance Director, the position held by Mr. Forbis prior to his Interim City Administrator appointment  Thirty (30) day notice by either the Council or Mr. Forbis to end the interim assignment FISCAL IMPACT/FUNDING SOURCE There is no new fiscal impact for this employment agreement. The compensation package falls within the existing budget for the City Administrator position. CONCLUSION The Council sub-committee recommends that the City Council approve the Employment Agreement with Jimmy Forbis for the position of Interim City Administrator. Attachments: 1. Interim City Administrator Jimmy Forbis Employment Agreement 10.D Packet Pg. 176 FINAL AGREEMENT \RSH\756533.2 032408-04706124 Employment Agreement This Employment Agreement is made and entered into this 6th day of April, 2020, by and between the CITY OF GILROY, California, a municipal corporation, (hereinafter called "Employer") and JIMMY FORBIS, (hereinafter called "Employee"), both of whom agree as follows: Section 1: Term This agreement shall remain in full force and effect from March 13, 2020 until terminated as provided in Sections 6 or 7 of this agreement. Section 2: Duties and Authority Employer employs Jimmy Forbis as Interim City Administrator to perform the functions and duties specified in the City of Gilroy charter and to perform other legally permissible and proper duties and functions. Section 3: Compensation A. Base Salary: Employer agrees to pay Employee an annual base salary of $220,716.00 payable in monthly installments ($18,393.00) on the first business day of the month for the prior month of service. B. Effective July 1, 2020, the annual base salary shall increase to $227,328.00 payable in monthly installments ($18,944.00) consistent with the three percent (3%) salary increase already approved for unrepresented department head positions. C. Other than the above, there is no guarantee or promise of any increase or the amount thereof. Section 4: Benefits, Vacation and Leaves of Absence A. Except as specifically provided herein, Employer agrees to provide Employee the same benefits he received while serving as Finance Director. B. For the term of this agreement, the Employee shall accrue vacation at the rate of 15 days (120 hours) per working year (accrued at rate of 10 hours per month). C. For the term of this agreement, the Employee shall receive an additional three days (24 hours) of paid administrative leave to use during either fiscal year 2020 or fiscal year 2021. If these hours are not used in fiscal year 2020, this additional 24 hours shall carry over to fiscal year 2021. Section 5: Use of City Pool Vehicle For the term of this agreement, Employer agrees to assign Employee, a city pool vehicle to utilize for City of Gilroy business. In addition, Employee may take vehicle home (Morgan Hill, CA) and may drive vehicle to and from work. Section 6: Involuntary Termination For the purpose of this agreement, involuntary termination of employment shall occur: 10.D.a Packet Pg. 177 Attachment: Interim City Administrator Jimmy Forbis Employment Agreement (2720 : Employment Agreement Interim City Administrator FINAL AGREEMENT 2 \RSH\756533.2 032408-04706124 A. Upon the death or continued inability of Employee to perform the essential functions and duties of the job for a period greater than twelve-work weeks in any twelve-month period, whether such inability results from Employee's physical or mental disability, or a serious health condition, unless a longer disability period is agreed to by the City Council. B. Following a vote by a majority of the City Council to terminate the Employee which vote occurs at a duly authorized public meeting. If the City Council is not able to provide Employee with thirty (30) days’ notice, the Employer shall continue to compensate the employee as described by this agreement for a period of thirty (30) days. C. If the Employee resigns following an offer made by a majority of the City Council to accept resignation. Section 7: Resignation and Return Rights to Finance Director Position In the event that Employee voluntarily resigns his position with Employer, he shall provide a minimum of thirty (30) days’ notice unless the parties agree otherwise. In the event of a full resignation from all City of Gilroy employment, Employer shall owe Employee nothing other than amounts that may be due to Employee for salary earned as of the date of termination, and accrued but unused vacation or leaves. Upon notice of resignation, Employer shall have the option of relieving Employee of his duties and responsibilities prior to the effective date of resignation, provided that Employer continues to pay all amounts due to Employee for salary and benefits through and including the date of resignation. As an alternative to a full resignation from all City of Gilroy employment, the Employee has the option to resign from the Interim City Administrator position providing same thirty (30) days’ notice to Employer and return to the department head position of Finance Director with the salary and benefits associated with the Finance Director position had Employee not taken the Interim City Administrator appointment. Section 8: Indemnification A. A. To the fullest extent permitted by law, Employer shall defend, save harmless and indemnify Employee against any and all claims, losses, damages, judgments, interest, settlements, fines, court costs and other reasonable costs and expenses of legal proceedings including attorneys fees, and any other liabilities incurred by, imposed upon, or suffered by Employee in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of or in connection with the performance of his duties. Said duty to defend , indemnify and save harmless shall include, without limitation, any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, that is asserted by a third -party other than the Employer and arises out of an alleged act or omission occurring in the performance of Employee's duties or resulting from his exercise of judgment or discretion in connection with the performance of his duties or responsibilities, unless the act or omission involved Employee's criminal act, intentional misconduct, or willful or wanton misconduct. The Employee shall promptly give written notice of any claim, threatened claim or litigation. Provided that prompt written notice is given, Employee may request and the Employer shall not unreasonably refuse to provid e independent legal representation with legal counsel selected by Employer at Employer's expense and subject to Employee's approval of the choice of legal counsel, which approval shall not be unreasonably withheld. Legal representation, provided by Employer for Employee, shall extend until a final determination of the legal action including all appeals brought by either party, and will be provided under a reservation of rights to not pay any judgment, compromise or settlement if it is established by a judicial decision or jury verdict after completion of all appeals that the claim arose out of an act that fell outside the scope of Employee's duties and employment or was the result of a criminal act, 10.D.a Packet Pg. 178 Attachment: Interim City Administrator Jimmy Forbis Employment Agreement (2720 : Employment Agreement Interim City Administrator FINAL AGREEMENT 3 \RSH\756533.2 032408-04706124 or willful or wanton misconduct of the Employee. B. Any settlement or compromise of any claim must be made with prior approval of Employer, which approval shall not be unreasonably withheld or delayed in order for indemnification, as provided in this Section, to be available. C. The duty of defense shall include reimbursement of any out-of-pocket expenses incurred by Employee in connection with his service as a witness, party or other participant in litigation, whether such service occurs during or after the termination of Employment. D. Any duty of Employer to defend or indemnify Employee is contingent upon Employee's full, open and honest cooperation with defense counsel for Employer and Employee. Said duties of defense, indemnity and cooperation shall survive the termination of employment under this Agreement. E. Employer may elect, at its expense, to obtain policies of insurance that provide coverage for liabilities that are the subject to the foregoing indemnification and defense provisions. The contractual indemnity and defense provisions set forth above are in addition to any defense or indemnity that may be provided to Employee under any contract of insurance, and are not intended to in any way limit , waive or relinquish any right to defense or coverage from a third -party insurer. Section 9: Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 10: Notices Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) EMPLOYER: City of Gilroy, Attention: Mayor, 7351 Rosanna Street, Gilroy, CA 95020 (2) EMPLOYEE: Jimmy Forbis, 17010 Holiday Drive, Morgan Hill, CA, 95037 Alternatively, notice required pursuant to this Agreement may be personally given by hand-delivery to the designated person. Notice shall be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 11: General Provisions A. Integration. This Agreement sets forth and establishes the entire understanding and agreement between the Employer and the Employee relating to the employment of the Employee by the Employer. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this agreement during the life of the agreement. Such amendments shall be incorporated and made a part of this agreement. B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as well as 10.D.a Packet Pg. 179 Attachment: Interim City Administrator Jimmy Forbis Employment Agreement (2720 : Employment Agreement Interim City Administrator FINAL AGREEMENT 4 \RSH\756533.2 032408-04706124 their heirs, assigns, executors, personal representatives and successors in interest. C. Severability. The invalidity or partial invalidity of any portion of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision. D. This agreement was the subject of negotiation in which each side was advised by professional advisors of his/its own choosing. Accordingly, any presumption that any provision of this agreement should be construed for or against one side or the other is expressly disclaimed. E. This Agreement is entered into under the laws of the State of California, and venue for any action concerning this Agreement shall be limited to the Superior Court of the Co unty of Santa Clara. Employer and Employee have both read and understand and agree to the provisions of California Government Code Sections 53243 through 53243.4, which are required by law to be included in this Agreement. Said provisions are incorporated into this Agreement by reference as though set out in full herein. Executed at Gilroy, California, on the date and year first above written. EMPLOYEE: EMPLOYER: JIMMY FORBIS ROLAND VELASCO, MAYOR By: ____________________________ By: _____________________________ APPROVED AS TO FORM: ATTEST: _________________________________ ________________________________ City Attorney City Clerk 10.D.a Packet Pg. 180 Attachment: Interim City Administrator Jimmy Forbis Employment Agreement (2720 : Employment Agreement Interim City Administrator