[0:00] All right, let's get this meeting started. Please, it's 5 o'clock. Call the order of the special

[0:26] study session. Roll call, please. Council member Baracko. Council member Klein. Council member Futati.

[0:33] Council member Hilton. Council member Marks. Council member Ramirez. Here, Mayor Bozo. Here. Thank you very much. So we will get right into it. This is a special study, a C map study session. And I'll lay out the expectations today. We have one hour. Because we do have a city council meeting right after this.

[0:53] So we're going to go right to staff presentations. And then right after that, we have presentations by C map.

[0:59] That you guys can have the center mic here. Please. And then city council will have some questions. If there is time for regular public comment, we'll go to that.

[1:09] And then I would like to leave 15 minutes or so at the end of the meeting for council direction.

[1:15] So with that being said, take it away.

[1:18] Good evening, Mayor and Council. Tonight, we're going to review our community media access partnership. We're going to start with a little bit of background, a little bit about the contract with C map.

[1:32] And then we're going to talk about the funding.

[1:35] So to start with the background, charter communications and AT&T granted a state franchise to provide a cable video services in Gilroy, Hollister and San Juan,

[1:46] about to serve her the digital infrastructure and video competition act of 2006 or DIVCA.

[1:52] Prior to that time, there were other franchise laws and agreements in place. DIVCA kind of took this to another level.

[2:00] DIVCA provides channel capacity for public educational and government access or peg.

[2:06] And authorizes cities to receive payments from state franchisees for peg access purposes. These are called peg fees.

[2:14] In 2001, Gilroy Hollister and San Juan, about TSA formed C map or community media access partnership.

[2:22] As an organization to develop, manage, and administer the peg access channels in a community media center.

[2:30] Under this agreement, peg fees 100% of those of which came from charter to the city have been remitted to C map.

[2:39] And 20% of cable franchise fees, which were provided to the city from charter were remitted to C map.

[2:47] The difference in the 20% to 22% depends on the contract because we've had various contracts since 2001.

[2:55] And then in this most recent contract that started at 20% and then moved to 22% after that first year of the contract.

[3:04] In 2020, the current five year agreement was negotiated and in January 1, 2021, that contract was entered into.

[3:14] It was entered into by C map and the three cities and this contract expires on December 31, 2025.

[3:22] In January 2025, the city in preparation for a potential renewal commenced contractual performance review of the agreement and the services and submitted several information requests to C map.

[3:36] Among these requests, we were asking for annual reports, year in financial statements and account statements showing the fund balance for the special banking sub-account for the purchase of city council chambers broadcasting equipment.

[3:51] The 10 year plan for council chambers broadcasting equipment replacement and an independent financial audit all of these items are required by the contract.

[4:01] In April of 2025, the city issued a letter of non-compliance to C map per the agreement and with this letter of non-compliance, it commenced the 100 days to cure the reaches as required by the contract.

[4:16] So that 120 day cure period was set to expire on August 20, 2025.

[4:24] I believe we did extend it by about 30 days after discussing with C map on some of the challenges that they were facing in providing this material to us.

[4:34] In November 2025, so our current where we are right now, certain of these items have been cured of they have been able to provide us some of the reports.

[4:43] But other key provisions have not been cured, notably the 2023 and 2024 financial statements and the independent audit.

[4:52] We believe that there are likely other non-compliance items that are still out there.

[4:58] One is that we're kind of looking at are the insurance requirements.

[5:02] Also, there's a requirement for an independent performance review which was supposed to be completed after the fourth year of the contract.

[5:13] So under this contract, C map has certain obligations.

[5:16] One is to operate the peg channels.

[5:19] So that public access channel, the education channel, the government channel.

[5:24] These are the channels on cable TV which are channel 1718 and 19.

[5:29] In addition, they're required with operating a community media center.

[5:34] They're required to have policies and procedures for use and operation of the peg equipment, facilities and channels.

[5:41] They're in charge of the playback in the cable cast for these channels.

[5:45] They're programming the channels making sure that there's shows running on the channels.

[5:50] And they're in charge for maintenance of the equipment.

[5:53] So in the media center, they have a wide range of equipment in there that they're in charge of maintaining.

[5:58] There's also equipment here at City Hall that connects their feed to the cable feed.

[6:05] So they're in charge of maintaining that.

[6:07] And then under this agreement, whatever equipment that they replace in our council chambers with that fund that they set aside,

[6:14] they would be in charge of maintaining that equipment as well.

[6:18] They are required under this agreement to provide staffing for video production services for council and planning commission meetings.

[6:26] This piece we halted because we had an ongoing issue with reliability and with their staffing train to run our equipment.

[6:35] We had multiple times where new people were just thrown in here without having seen our equipment before knowing how to run our equipment.

[6:43] And then ultimately we had an issue where their staff left the audio run during a closed session.

[6:49] And we didn't find out about it until it received a call from a community member letting us know that the audio was able to be heard.

[6:57] So at that time we stopped using CMAP staff for the video production services and we're currently outsourcing that to a third party vendor.

[7:05] This vendor has been extremely reliable.

[7:08] It's now all completed remotely.

[7:10] So they have a variety of staff that can perform this recording of our meetings for us.

[7:16] And we've never had an issue with them leading the cameras on, leading the audio on.

[7:21] They've done a job for us.

[7:26] In addition to these obligations, there's a reporting requirement.

[7:29] Some of which we've touched on already, but just to go through them really quickly.

[7:33] The annual planning budget and reports regarding statistics on programming.

[7:38] Year in financial statements by an independent CPA and audit every three years by an independent CPA.

[7:45] And just to point out that audit's really important because that's one of the mechanisms that we have to ensure that the way they're using the funding is in compliance with the legal requirements for how those funds are required to be used.

[8:00] They're required to have a independent performance review after the fourth year of the contract.

[8:06] There's certain insurances are required to have.

[8:09] And then there is a provision in the contract that a city request, they'll provide a certain number hours of video production services if the city desires.

[8:18] Two date we haven't used that provision because we've been focused on trying to get these reports and the requirements of the contract in place before we ask them to provide.

[8:28] Other services that are a nice benefit, but not required by the contract.

[8:35] And with that, I'm going to turn it over to Harjo to go over some of the funding in the numbers.

[8:44] Thank you.

[8:45] Harjo, it's not going to be the final instructor with the city of Gilroy.

[8:47] I'll cover the next few slides to begin.

[8:50] So with respect to funding, what's been provided to see map under the current agreement.

[8:55] On average, Gilroy has contributed about $250,000 to see map or approximately about a million dollars over the four years.

[9:04] That consists of two categories of payments.

[9:07] One is the franchise fees.

[9:08] So about $65,000 on average and then the peg fees that are collected by the operators roughly about $187,000 on that.

[9:19] We did pause the funding earlier this year due to non-compliance and with respect to other agencies.

[9:26] You know, how much are they contributing?

[9:28] They're contributing about $224,000 a year.

[9:31] And on this slide, I've deleted staff estimates based on the financial statements that were provided for 2021 and 2022.

[9:39] So again, on average, $170,000 a year and peg fees is coming from the other agencies.

[9:47] One of the qualified uses of those funds, again, the peg fees do are required to be spent on capital expenditures to maintain facilities and equipment for the peg access.

[9:58] And then with respect to the franchise fees, they're general fund use.

[10:02] So no certain requirements are tied to those.

[10:06] Our concern primarily is in the peg funding, how is that currently being spent and are we compliant or is there exposure for the city on that front.

[10:15] Again, the key provisions that we outlined where we are currently is we have two that are in compliant, which is the proof of the 10% set aside and a separate sub-account.

[10:27] A team up has also since the information request, developed a equipment replacement plan.

[10:33] There are two items that are non-compliant, which are the annual reports regarding the activities during the preceding fiscal year, as well as the financial statements and the independent fiscal audit.

[10:42] They are currently in process, they have completed the financial statements for 2021 and 2022 as of last Friday.

[10:49] And I believe there is a plan to complete the subsequent years by December.

[10:55] Again, you believe there may be other areas of non-compliance, particularly insurance, the fourth year performance review that's required.

[11:02] I believe this was these were additional stipulations that the council at that time had built into the agreement given the concerns.

[11:10] They wanted an opportunity in the fourth year after the fourth year to review the performance of the agreement.

[11:16] And then also in July of 2025, seem upupated there bylaws to effectively remove the city's voting rights on the board.

[11:29] We still have a position on the board, but no voting rights.

[11:32] So staff have expressed concerns on that front as well.

[11:36] So with respect to next steps, we're really here before you to get council direction on where we're headed in the future.

[11:46] So the first option is again, knowing that there are challenges with the current agreement and itself with compliance related issues.

[11:56] One option is, you know, you can direct us to renew the seam up agreement, but our recommendation would be under a restructor scope and funding on an ad be going on a going forward basis.

[12:05] The other option is to transition to internal management where we would administer the fees to ensure they are spent in compliance with the laws.

[12:14] And then we would take on developing a program in house and we did survey about seven cities, five of them are managing them.

[12:24] A majority of them are managing them internally or through some sort of a similar arrangement, separate organization where they petition the cities to provide funding.

[12:34] The third is a hybrid option where we would conduct a RFP for specific services that this council desires to offer and then we would obviously solicit those proposals from other organizations and of course seeing up would be an organization that would.

[12:53] likely be invited to participate in the RFP process as well.

[12:58] Which to do so.

[13:01] Alternative uses of funding again, pet fees really are required to be spent on broadcasting equipment, upgrades and main team those facilities.

[13:11] Recently the state has enacted Senate Bill 77 which outlines changes to the Brown Act and does require the city to make an investment to the technologies that are.

[13:22] that are offered here in the council chamber, so we believe there is a next is we already have a requirement that we would need to fulfill and can utilize those those fees for.

[13:33] With respect to franchise fees again, if we were to bring this in house, we would either through our recreation division or a third party developing program to offer.

[13:44] You know media literacy classes or similar scope of services and then formulate an agreement for services based on that which would be more so.

[13:54] Organizations are paid or vendors are paid after the services are rendered so it be on an actual expenditure basis.

[14:02] So those are the alternative uses of the funds that concludes the staff's presentation and I'm happy to take questions now or I'll turn this back over to the mayor.

[14:11] Yeah, we're we are going to go right to presentation by C map and then we'll if we have we will have questions for staff right after this as well.

[14:21] Thank you take it away Mike.

[14:28] Good evening city council staff everybody here thank you for being here.

[14:40] Where to begin.

[14:43] I became the executive director of C map on February 4th 2024.

[14:49] I came in with the understanding that things need to be improved upon reorganized.

[15:00] I knew that we were 20 months or so away from renegotiating contracts or contract expiration, I'll say.

[15:12] And I knew there was a lot of work to do. My sales pitch to the hiring committee was, this place is a mess I'm here to fix it up. They believe me.

[15:28] On February 5th, 2024, I walked into the upstairs office and facilities basically and then I realized, oh my God, I had no idea.

[15:43] So nobody here, actually except for your city, representative who's been on a board, has been there from 2021 to 2024. Nobody. Everybody's new.

[15:58] What we've been able to do was put our head down, create a community media center, which is the first and only in the region that accepts everyone in the community.

[16:12] It allows everybody to express their individual artistic ability, the creativeness, it's welcoming, it's friendly and open, it's collaborative.

[16:24] And in addition to that, we went to work on getting these compliance issues handled.

[16:31] What we learned was because when the last group of leadership left, the only semblance of leadership was a few board members who had been there for the time.

[16:45] And let me start correct it. So resale is recently at eight years of a six year term has removed yourself from the board.

[16:55] But in February of 2024, we had roughly five people held over that board members.

[17:07] What became really clear was, I came in as a change agent, I came in to improve things I came in to really make seem up what I remember it being in 2001 through about 2006 when I had familiar early and part and with them on different things.

[17:21] They were incredible and amazing and a great resource. I wanted to bring that back.

[17:28] Change agents if you are one, realize that you get a lot of turbulence in the air when you try to relaunch.

[17:40] To sum up the past 20 months, we faced every kind of obstacle. We faced, we faced, we faced, we faced board members who've met with lawyers to talk about my termination.

[18:03] Even though they never approached me to have a conversation or talk about performance or anything like that, change is scary.

[18:11] With that, I was able to piece together a very incredible team working with Gavin College who is our strategic partner.

[18:22] To put together a group that can service the community to help the city council and the city of Gilroy fulfill your charter to enhance the lives of your residents.

[18:37] I'm a big city council, I'm a big city of Gilroy supporter, I always have been.

[18:44] And what I can share with you is that my experience trying to revive seam up.

[18:57] I've met with some city council members and or city staff people who are very supportive, very collaborative.

[19:06] And I've met and had to kind of run up against others who aren't.

[19:13] It's a adult world out there, I'm an adult, I am happy that I'm standing here, able to present to you.

[19:20] But without that little bit of history,

[19:25] I don't know if you could appreciate where we are today and that's the point of this.

[19:30] Where we are today is providing government meeting recordings and playback for all the municipalities in our contract except for Gilroy.

[19:43] When it was brought up to me in 2024 about October that we were not streaming or taking care of meetings in Gilroy.

[19:52] I think within a day or two, I had our then operations manager reach out to our city representative.

[19:59] And we have been looking for solutions ever since.

[20:06] We don't want to replace what you currently have to quote one of you up there.

[20:13] It was broken, it's fixed, don't mess with it.

[20:17] I kind of agree with that.

[20:19] But what I have a problem with is your contractor provided us with the exact.

[20:31] The exact connection in the exact slot so that we can also stream and fulfill our contractual obligations.

[20:42] I don't know what happened and I could imagine how bad service was in 2022, 2023 when this all went down.

[20:50] But what I can share is that I have provided that information and I believe it was March of this year, may let me correct that.

[21:01] We have yet to be able to connect our equipment, technically your equipment that we steward.

[21:09] To be able to fulfill our contractual obligation.

[21:12] So there's.

[21:16] You guys probably know when you're trying to rebuild something and there's a little bit of lack of organization or maybe some relationships that aren't as good as you'd like them to be.

[21:26] You go, you go to repair mode.

[21:28] That's what we've been doing.

[21:29] We've been trying really hard to get our connection back so that we can represent the city the way that we are contractual obligated to.

[21:38] I will add that we do have insurance and I'm happy to provide anything that you want as far as policies improve.

[21:47] And I'm.

[21:50] It's pretty much it.

[21:51] I'm here to answer your questions to find a path forward.

[21:55] I believe see map has come back in 20 months to be the cutting edge community media center that we are.

[22:04] We provide excellent proven.

[22:07] Service.

[22:09] We troubleshoot equipment that goes down we solve problems.

[22:13] We are responsive.

[22:15] We are professional.

[22:17] And I think it deserves a deeper look than.

[22:21] What stuff is proposing.

[22:23] And I'm again happy to answer any questions at the proper time.

[22:27] Thank you.

[22:28] Thank you.

[22:29] Okay.

[22:30] So now we'll go back more of.

[22:33] Once you come back up.

[22:35] I'm assuming there might be some questions from staff.

[22:38] I'll give me the council.

[22:39] So any questions?

[22:41] I don't see any questions.

[22:42] Kelly.

[22:43] Council member.

[22:44] Once you go first.

[22:45] I do.

[22:47] Finally.

[22:50] So thank you.

[22:52] Both for your presentations.

[22:55] I have a bunch of questions.

[22:57] I don't know who.

[22:59] To direct them at.

[23:00] Do I just throw them out there and have either you or Mr. Sanchez.

[23:04] Sure.

[23:05] Answer them.

[23:06] Yeah.

[23:07] Some I think are more directed for you.

[23:09] Some are more first off.

[23:12] Sure.

[23:13] One of the questions I have is why is our city representative.

[23:17] No longer a voting member on the board.

[23:20] I think I.

[23:23] Yeah.

[23:24] You should stay up here.

[23:25] Mike.

[23:26] If you'd like.

[23:27] So we get through this phase.

[23:29] Thank you.

[23:34] The question is why does your city representative no longer have the ability.

[23:39] Bylaws have been actually.

[23:43] It seems to be revised since at least 2020.

[23:50] Former leadership has never been able to do it.

[23:53] We got there.

[23:56] We're able to bring on some board members who are very active.

[23:59] Very proactive, very professional.

[24:01] And we started working on the bylaws.

[24:03] And we got them revised.

[24:05] The reason.

[24:08] Not just your city representative but all municipal representatives.

[24:13] Being treated as strategic partners and advisors to our board as opposed to voting members.

[24:20] Came down to a couple of issues that we debated.

[24:23] One was conflict of interest.

[24:26] Especially in regards to.

[24:29] City.

[24:30] And the logic behind that was.

[24:35] The department that the city representative represents.

[24:39] Basically.

[24:41] Benefits from any funds.

[24:43] Not paid to see him out.

[24:46] Um.

[24:48] That right there would.

[24:50] Be something of concern.

[24:53] Um.

[24:54] We didn't have any other municipal representatives because.

[24:58] The former board.

[25:01] They never saw fit or never assigned somebody to go after the.

[25:05] The municipalities and say, hey, you have a seat.

[25:07] Come and come and represent.

[25:09] So the only.

[25:11] Uh oh.

[25:13] You'll get a chance.

[25:16] That's my bouncer.

[25:17] Sorry.

[25:18] You'll get a chance.

[25:20] Um.

[25:21] So.

[25:23] The city.

[25:24] The only one that had a representative.

[25:28] From personal experience being the executive director.

[25:31] I was routinely.

[25:33] Called out in meetings.

[25:35] off agenda.

[25:37] With.

[25:38] Leading.

[25:39] There's an accusation that.

[25:42] For example.

[25:43] There's an accusation that you fired somebody read for Christmas.

[25:47] Did you want me to answer that.

[25:52] There's an accusation that you spent 54 dollars on gas.

[25:56] It's a personal use.

[26:00] There's an.

[26:01] So on and so on.

[26:03] Um.

[26:04] Another example is the fact that.

[26:08] If a board member on a seam up board.

[26:13] Doesn't put the benefit the.

[26:17] Future and growth and success of seam up first.

[26:22] They probably don't belong at least with a voting.

[26:25] The position on the board.

[26:27] Now we take our advisors and our.

[26:30] Uh, strategic partners very seriously.

[26:33] We're building alliances with a lot of different agencies.

[26:36] We want everybody at the table.

[26:38] But in order for us to make the changes as fast as we have and to keep growing in the direction we are.

[26:43] We have to bring in the vote to people who have see maps.

[26:47] Growth and prosperity and success to benefit the community.

[26:51] First.

[26:52] Thank you.

[26:53] Thank you.

[26:54] So before I go to council member Fugati.

[26:56] Council member.

[26:57] You said you had a few questions.

[26:58] You want to keep going.

[26:59] Yes.

[27:00] If you don't mind.

[27:01] Thank you.

[27:02] I'm.

[27:03] Heart.

[27:04] Would you be able.

[27:05] Like the other cities that have contracts like this.

[27:07] Do they do you know whether or not they have.

[27:10] Representatives that are voting members of the board.

[27:12] It's not uncommon for for city to be providing funding is.

[27:16] And also have a voting.

[27:17] See on the board of a third party organization.

[27:20] As is the case with.

[27:22] You know here.

[27:23] Well then.

[27:24] Gilroy we have visit.

[27:25] Obviously we have a council member that's representative.

[27:28] We provide funding to visit.

[27:29] Gilroy or other.

[27:30] But there are.

[27:31] And the funding that you provide is absolutely earmarked.

[27:34] It's not.

[27:35] Okay.

[27:36] That's my understanding.

[27:37] Okay.

[27:38] Does the board adopt a budget split a spend plan to.

[27:45] To demonstrate physical stewardship.

[27:48] Yes.

[27:49] In a perfect world.

[27:51] Absolutely.

[27:52] What we have been doing with the yearn reviews that we've been.

[27:56] Completing to submit to the city.

[27:58] And our audit that's in process.

[28:01] Is we've been.

[28:03] Restructuring our accounting and accountability.

[28:07] When it comes to finance.

[28:09] Because again, getting in.

[28:11] When I did.

[28:12] Seeing.

[28:13] Where things were.

[28:16] I'm not going to ascribe any malfeasance or or anything to anybody.

[28:20] I can just say that.

[28:22] Our finances were not as clean and.

[28:25] And.

[28:26] Clear.

[28:27] As we should be to operate.

[28:30] From a from a physical stewardship.

[28:33] Um.

[28:34] Situation.

[28:35] So one of the things that I will.

[28:38] Uh commit to you and promise and we are working on this.

[28:41] I promise you is.

[28:43] We will have a budget.

[28:45] For.

[28:46] Twenty twenty twenty six.

[28:48] Be for.

[28:50] They probably.

[28:51] I think I have the 20th of December as our target date.

[28:54] Part of that reason is because as we're going through these.

[28:57] You're in reviews and audited.

[28:59] It's helping us.

[29:00] To look at the books and make sure that we're aligned.

[29:03] And then also we're trying to align ourselves.

[29:06] Budget wise to go after grants.

[29:08] There's.

[29:10] Easy couple hundred thousand quarter million dollars grants a year available to us because of what we do.

[29:15] We want to go after that money.

[29:17] And.

[29:18] Be considered as an investment from the city.

[29:21] That is finding their own funding from different sources.

[29:24] And by their being good stewards.

[29:27] Okay.

[29:29] So.

[29:30] Um.

[29:31] Some of the.

[29:32] The agreement has a couple of.

[29:35] And what it means is that the point is we're going.

[29:39] Requirements.

[29:42] Section one.

[29:43] D.

[29:44] Policies and procedures.

[29:46] See map shall develop policies and procedures for the use.

[29:49] An operation of peg access equipment and shall file these policies and procedures with the cities.

[29:53] Have you done that.

[29:56] We have not.

[29:58] We are working on that.

[30:00] As of right now, I will say that we have not completed it. Section 1, Jay, performance review, that

[30:02] Um.

[30:07] has still not been done. Is that correct? We have contracted with a person to do the review

[30:14] back in August, the week that she was going to start for farther past the way. It's kind

[30:21] of been the story of how things are going over here. So we just reached out and found another person

[30:27] to call a five. Suzanne St. John, I don't know if you guys remember her name. She was the actual

[30:32] founding CEO executive director of CMAP in 2001. She and her husband, consulting agency, we're

[30:40] meeting with her on Wednesday to get the performance review completed. Okay, and you're working

[30:46] on the insurance, you said. No, we have insurance. I just need to work on getting you proof. Okay, so you just

[30:51] haven't submitted. So remember, we're married after the next question, I'd like to move around. Okay,

[30:55] so I have let me ask one more. Do you have doubted that quantifies the benefit to the

[31:01] Gilroy community, for example, how many Gilroy youth have you had in your programs or taking

[31:07] classes, things like that? We do and in our annual report that you have and I'll qualify the annual

[31:17] report. There's no financial data in it because again, we're waiting for the audits and year-in

[31:24] reviews so that we can establish our 2025 budget. It will be revised and with all the other

[31:32] years that are due, you will get all these, but we're waiting on the final audits in year-in-reviews. But in

[31:39] here, there is data, and I will tell you, the work that we've done has really been laying the groundwork.

[31:47] Now, we've had thousands of people come through in open houses and different tours and different

[31:52] events that we've had. We've had hundreds of people come in and do different types of training. We have

[31:59] a full podcast room that we actually are securing contracts to do podcasts for community individuals

[32:07] and or businesses, but we're just getting started as far as all the work that we've been doing

[32:16] has been to the undercarriage to the foundation. Now, we are ready to launch our marketing.

[32:24] We have our online memberships that are going online. We have our class schedule for the spring.

[32:31] So, the data isn't impressive now, but that's because we had to get to this point to be ready to take on

[32:41] youth and community members. I will say that we have been in communication with both the

[32:52] Hulcer Unified School District, San Bernardino Reunified School District. They've had tours from the

[32:56] high school group. We've been in a couple meetings with Giora Unified and YMCA and we're looking at

[33:04] potentially doing some power school activities. There's a lot. This sounds like a snow job, but

[33:12] there's a lot coming. That's all I can say and that's all I've been saying is there's a lot coming,

[33:17] but there's been a lot of work that we've had to do to get her. Thank you. Thank you.

[33:22] Council members, we've got you. Yeah, first question, Harzo, the funding that comes in,

[33:29] if we were to take this internal, there's certain things that we can spend that on and they might be in

[33:36] different places. How do you guys see that going forward is there in terms of providing the services that need to

[33:44] be there for us here as well as the community engagement or community services that have to also be provided?

[33:53] So, if I'll take it in two parts one, I think your, if the city were to retain the funding internally

[34:03] for peg fees component, we have qualifying expenditures. Primarily the audio video and the chambers

[34:10] as well as the broadcasting equipment that's stored in there periodically every few years requires to be updated.

[34:16] So, the expenditure plan for peg fees can be set aside, built up and then be spent on on these projects.

[34:25] With respect to the franchise fees that we're currently providing,

[34:29] about 60, some 1000 staff would then come back if that's a direction council gives us to

[34:37] formulate a program, essentially internally, either within the recreation division or via the third

[34:41] party to contract for those services. And so that way whether it's media literacy classes,

[34:49] anything else related to the youth program that allows them to go ahead and develop content,

[34:55] things of that nature, we would develop that program in health. So, those peg fees in addition to providing

[35:00] the equipment here could provide equipment for those particular classes. How so? Yep. Okay.

[35:05] So if we, yeah, if this, yeah. And you said it was, I don't know, 170,000, some 100,000, 100,000,

[35:11] 180,000 a year, right? That's quite a bit of equipment since we already have an investment in the equipment,

[35:16] in terms of just updating, right? Correct. Yeah. So, you know, I would probably say when in 2022,

[35:23] last time the city did the major upgrade, I think we spent close to 300,000 dollars in that in that year.

[35:30] So things are getting expensive. So while it is a sizable chunk, but if and when we were to do

[35:35] these modernization projects, you know, large chunk of those fees would be consumed, and then anything

[35:42] that's left, either, you know, we would buy equipment for those classes and things of that nature.

[35:50] So, but the services that we pay to basically manage the cameras during the meetings and whatnot,

[35:57] that can't come out of any of those funds, right? We're already budgeting and paying for those,

[36:02] so we're not counting that as coming out of these funding. It can't. You said it can. It can't.

[36:09] What does that amount to every year? Gosh, I want to say it's roughly about 30 to 40,000 dollars in

[36:15] subscription. Okay, because that's obviously what they're promoting that they would be doing those services

[36:21] as well, ostensibly for the same money, right? So the next question I have is actually,

[36:28] from Sanchez is 20 months since you've been there. I didn't see in here necessarily a layout plan of

[36:38] what's going to be different now than before. In other words, if you were not there before,

[36:45] and things were done poorly and you can find out probably from the city staff from what have you.

[36:49] Have you laid out a plan and given it to the city to say, this is, this is how we're going to

[36:54] do it differently. It's going to be exactly like this. This is how we're not going to make this mistake. This is

[36:58] what we're going to do. In regards to the annual report, there's a section in there that talks about the next 10

[37:06] years. Pardon me. I don't go for five years. I'm trying to go for 10. Strict like a strategic

[37:14] barebones plan. We haven't got that far. We've been dealing with getting into compliance.

[37:20] I'm happy not only to have our team present that plan, which we can do, I'd be even happier if

[37:29] the city wanted to be involved in that. We can partner and collaborate to create something that

[37:35] not just the city wants, but the community wants. We could be that bridge between the two.

[37:40] Yeah, I mean, one of the things that got me out of what you mentioned here and I just kind of pulled

[37:45] out of it that that set off my little Spidey senses is that you started there in February and in October,

[37:55] you realized that the feed wasn't happening. It took eight months for us to understand that the feed wasn't that's

[38:03] real concerning. Yeah, I'll tell you why or I'll give you my perspective. Let me in a really quick.

[38:10] We are 20 minutes away from 22 minutes away from six o'clock. I don't want you to stop. I don't need a long

[38:14] follow-up on that. Okay. Quick answer. You quickly could have one more. I was going to lay it out. We have one

[38:20] more question from council and then I'm going to go to real quick public comment because we need 15 minutes

[38:25] to do council direction. So go ahead. Okay. Quick answer. Our operations manager that was there when I was hired.

[38:34] Had full knowledge. Our board had full knowledge. There was no information dump. As you're there,

[38:41] you're new, you're like, what do I need to know? What do we got going on? And I'm putting out fires everywhere.

[38:47] It wasn't until our board president at the time called the silver was leaving. He did an exit interview with me

[38:53] and that's when I learned. Now it's not that I had I known earlier. I think within two or three days,

[38:59] I emailed the city go right, trying to get it resolution. And it's all in the packet that you guys have.

[39:05] So yeah. One more question with council member Ramirez. Just a quick question.

[39:11] Harja, would we be able to use the peg funding for updating our translation services,

[39:19] council chambers? There could be an access to utilize some of that as long as it's for actual

[39:24] capital equipment that translates by not for operations. Right. Okay. Thank you.

[39:31] Yeah. So we don't have any public comments. So you feel free to come in more minutes. You may have one.

[39:37] So far we have no public comments. Okay. There's going to be any public comment.

[39:41] Sign the card. Okay. On up. It looks like you. Our public comment will be limited to one minute each.

[39:46] Please. Okay. If I could add to that we have that capability as well. We have the same technology and the same equipment,

[39:55] the same support stuff and support partners to be able to do that. Now, given the same things,

[40:03] I'm not trying to replace your current vendor. The biggest goal for me is to plug in our equipment.

[40:11] So we could also stream the meetings. What we do now because we're trying to best to be in

[40:16] compliance is we go to your website. We pull the meetings down and then we put them on our YouTube channel.

[40:22] When we started doing that, we found that there was about a seven minute dead time because no one would

[40:27] turn off the recording. We brought that to the attention of the city and then in our next meeting,

[40:32] they said there's no problem there. We fixed it. So we're trying to be good stewards and good partners.

[40:39] And yeah. Okay. Thank you, Mike. You're welcome much. Thank you, staff.

[40:46] So now we will go to public comment. Looks like we have four or five. And I am going to ask to limit

[40:50] your public comments to one minute, please, so that we can get back to council direction.

[40:57] If Elliot could come up and Kevin followed by Gary.

[41:10] Good evening, Mayor and council members. I would like for you all to consider the option to

[41:17] continue the contract with CMAP. The most important thing to me is economic development.

[41:24] Right now you have an outside source that you're vending with. They don't live in this community.

[41:30] They don't sleep in this community. They're not spending money in this community. CMAP is in this community.

[41:37] CMAP is also in the community that I live in, which is in San Bernardo County. And I advocate

[41:42] for transparency. I'm a big brown act advocate that nothing should be done behind closed doors.

[41:52] Everything is out front. So that is why I'm asking you as an independent person of this community and

[41:58] that uses this CMAP is that when you're not, where's my time? You have seven seconds.

[42:09] Thank you, Elliot. Hi. My name is Kevin Feffer and I just wanted to say that in the short time that

[42:17] I've been around Mike at CMAP. I've seen amazing things happen. They've had classes servicing

[42:23] kids with autism, special needs, open houses for artists of all over the community. They've covered

[42:29] a whole bunch of the downtown events that we've had with the open houses. We see so many people coming in

[42:35] and just showcasing different kinds of culture. Like as she said just before me, sourcing it from

[42:42] outside of our community, I think you wouldn't have the same vision. I don't think you would have the same

[42:47] just the community being involved. And I think that's really important. I've seen everything

[42:54] from the art classes to music, to kids coming to learn how to do film, audio. There's just so much

[43:01] happening in a very short time. Mike was saying they're just getting started. He had to put out a lot

[43:06] of fires first and I think that vision moving forward was a lot of potential. Thank you. Thank you.

[43:17] This is really a day when Gabe Gonzalez was a city manager. He tried to do the same thing.

[43:24] This is not the first time around. And after that I was at that meeting with Becker Reed was there and

[43:31] got blindsided by that city manager saying we need those funds to improve our equipment. So I met with

[43:38] J. Boxa about this because J. negotiated this agreement with the franchise agreement with the cable

[43:44] company. And he said you can't do that. You can't do that. And there's two other cities that are

[43:51] tied to this agreement. And the thing that got left out when Gabe never told the city council

[43:57] is that the city received like a quarter million dollars a year fees from the same cable company.

[44:04] So the question was, well what did you do with the $250,000 a year or whatever that number was?

[44:10] All the years that you had it, it didn't go to equipment. But you wanted to close down

[44:14] C map, which is your public access. That's what public access means. Not city access, but public access.

[44:21] So I think you need to go back to why this agreement was put in place. And where the funds went,

[44:27] you know, why you need it now, when it's not like you're not getting anybody. This this point

[44:31] comes from the franchise. Not not the city. Thank you. Kelly followed by Mike and then Jeff.

[44:43] Good evening council. My name is Kelly Feffer. I'm the co-founder of Iraq's school mother of seven

[44:50] and someone who was once a young single mom experiencing homelessness with two small children.

[44:54] I've lived on both sides of this community, the side that struggles and the side that builds opportunity.

[45:00] Students from the United States, for others.

[45:04] Seeing map is contracted with the city to film and disturb yudet city council meetings, but in 2022.

[45:06] The city made the decision to take this opportunity and these jobs away from our local youth.

[45:11] Instead, send that work and our tax dollars out of state.

[45:15] What could have been on the job training for a young people to be returning remote video services

[45:18] purchased from another state? Removing both skill building in economic investment from our own community.

[45:24] It seemed out this so much more than media service.

[45:27] It seemed out as a space of true inclusivity.

[45:29] As space were youth and adults from every economic background,

[45:32] every ability level, and every culture

[45:34] can come together and learn.

[45:36] It is a place for local college students.

[45:38] A color can create their own art show

[45:40] and art show that uplift state diversity

[45:42] and carries a message of belonging

[45:44] as the place where teens and kids with autism

[45:47] can take classes, they'll welcome

[45:48] in our downtown and game confidence

[45:51] in front of them behind the camera.

[45:53] Thank you.

[45:54] You sell one more correct?

[45:59] I have a few more.

[46:01] Okay.

[46:02] Okay, go ahead.

[46:03] Hi, it's Megan.

[46:05] I wanted to add this to the end of my presentation.

[46:09] In addition to the options

[46:12] that staff has provided council,

[46:14] I have some alternatives.

[46:17] Again, we welcome the transparency of the accountability.

[46:20] So we want to partner with the city

[46:22] whether that's an elected official that acts as a liaison

[46:25] and an oversight accountability partner.

[46:28] We want to consider

[46:32] an extension of a year to two

[46:35] with quarterly accountability check-ins

[46:39] and oversight.

[46:42] And at the very minimum, give us another six months.

[46:47] Let us finish what we're doing

[46:49] so we can prove to you guys that we belong

[46:52] and we are good stewards of city funding

[46:54] and we can take that and use it as seed money to grow.

[46:58] Silicon Valley Arts, Silicon Valley Foundation,

[47:02] they're all wanting to partner with us.

[47:05] We have...

[47:07] Thank you.

[47:08] My districts.

[47:09] Thank you, Mike.

[47:10] Thank you, guys.

[47:11] Have Jeff and then Alex?

[47:14] Yes, sir.

[47:15] Yes, sir.

[47:16] Council, my name is Jeff Perkins.

[47:17] I am the current board.

[47:19] I guess, Treasurer.

[47:21] I came on board in July this year.

[47:24] And I certainly share some of the concerns

[47:26] about the financials when I first came in and looked at it

[47:28] that I would say this.

[47:30] The Seamath has been filing a tax return every year.

[47:33] And so there is access of 2021, 2022, 2023, 2024.

[47:37] And the first thing I did is it laid them out.

[47:39] And now that we've been spending this time having

[47:41] the numbers reviewed and soon to be an audit.

[47:44] The first few years was almost identical to what the tax return is.

[47:47] So we also have bank statements to show where we stand with the funds.

[47:53] So I feel confident that once everything is said and done,

[47:59] we will find that there was nothing that was done inappropriately.

[48:03] And that we're on found good financial footing provided the people

[48:08] that OS would pay us.

[48:10] And so I look forward to work with Seamath to get back

[48:15] where they need to be.

[48:16] Thank you.

[48:26] My name is Alex Larson.

[48:27] I'm currently the Vice Chairman of the Board of Directors.

[48:31] The biggest problem that I've seen is communication

[48:34] between the city of Gilroy, none of the other cities.

[48:37] We've had problems with communication between the city of Gilroy

[48:42] and Seamath has been absolutely terrible, which is awful

[48:47] because we've had a person on there that should have been communicating

[48:51] back and forth to us.

[48:52] This is the first time that I've heard of the closed session

[48:57] that was inappropriately broadcast.

[49:02] We have never received that I know of that we've seen anything coming

[49:08] from the city saying that we've had any of these problems.

[49:12] We've been locked out of the room there to be able to complete our mission.

[49:17] And I thank you all for considering this and I hope that you

[49:21] go on the right side of the citizens of Gilroy.

[49:24] Thank you very much.

[49:25] Thank you.

[49:27] Okay.

[49:28] So now we have a time for all council to have some comments.

[49:31] I do see speakers still up.

[49:32] Or is this from councilmember Fragazzi?

[49:34] Is this from before still?

[49:35] Okay.

[49:36] Did you bring in again to speak?

[49:38] Could your name still up?

[49:39] Okay.

[49:41] Okay.

[49:42] So we're now at that time.

[49:43] I have another discussion.

[49:44] So I'm looking for council.

[49:46] I mean staff is up on the board there.

[49:49] You see that what the consideration is.

[49:52] They're asking staff is asking for us.

[49:54] It's for consideration of these future uses.

[49:57] And these are some of the things that Hardsho pointed out.

[50:00] Go ahead.

[50:02] Thank you.

[50:04] I came in late to all this.

[50:05] So I've had to do a lot of catching up.

[50:07] And I think from the staff standpoint is we do have a responsibility to administer a contract.

[50:15] And there were provisions that were laid out sometime.

[50:19] Unfortunately, many months have gone by as staff has tried to get the information necessary

[50:27] to comply with the contract.

[50:29] I appreciate what was said tonight.

[50:31] I understand myself starting with a difficult organization and having to rebuild it.

[50:35] I've been there.

[50:37] But that said, we have to keep in mind.

[50:41] We have given them additional time.

[50:44] Even if they were able to bring it in compliance towards the end of the this year.

[50:48] The current contract is going to expire.

[50:51] And it's going to have to be renegotiated in some format.

[50:54] So I think a lot of good things were said tonight,

[50:58] relative to communication and expectations.

[51:03] But again, the primary focus from the staff standpoint,

[51:07] which I know the council also feels we have a fiduciary responsibility

[51:12] to make sure that the terms of the contract approved by the council are met.

[51:17] So that said, we're here to really go whatever direction you want.

[51:23] But really we're trying to get some understanding where you want to go in the future.

[51:27] And the three alternatives that the staff has laid out is to focus on renegotiating

[51:34] a contract with CMAP for the future.

[51:39] What that might, what that would allow though is trying to look at what they realistically might be able

[51:46] services to provide so that the contract better fits what their capabilities are.

[51:52] Transition to internal management.

[51:55] If that's the desire to find, but the more important thing is to get the services and the compliance of the law met.

[52:03] And then the hybrid would be if you wish to do an RFP, which of course CMAP could also apply for that too.

[52:11] submit a bid and see what services are out there.

[52:15] So we're looking for direction going forward tonight.

[52:19] Thank you.

[52:21] Council Member Fragazzi.

[52:23] I mean given the short timeframe that we have now in the requirements that we have,

[52:27] I think we have to, number one, look at transitioning to internal.

[52:32] But at the same time, I love the idea of the community doing this.

[52:35] I just think it's poor management.

[52:37] I think 20 months on board and whatever the issues are.

[52:41] I mean, I built the company in 12 months.

[52:43] So it's definitely something I wish would stay with the community if we can find out a way after taking it.

[52:50] And internally how we can go back, our show to say, these are the things we'd like you to do.

[52:54] And they seem like that you're capable of this.

[52:56] You made some changes.

[52:57] We want you to do this.

[52:58] That's where I stand on this.

[53:00] But we do have these requirements of us that we have to also take on.

[53:05] Council Member Ramirez.

[53:08] You know, to somewhat echo Council Member Fragazzi with my nonprofit background,

[53:15] I'm stressed about this because while conceptually I absolutely want public access and transparency and everything that

[53:33] I'm seeing that is supposed to be.

[53:37] I have some significant concerns about the lack of compliance and that's coming from not just like Mr.

[53:45] Kilger talked about with our food issue, responsibility, but it's also from a nonprofit background.

[53:54] I'm concerned about that.

[53:56] So perhaps a hybrid or something.

[54:02] You know, I would be open to a number of different things.

[54:06] Hybrid, internal management, six months to get everything going with proof of absolute service and programming.

[54:19] But there needs to be a time limit.

[54:21] Council Member Braco.

[54:24] Yeah.

[54:27] You don't have on there to give them three months, six months, whatever.

[54:33] And for them to get in the compliance.

[54:35] Do you think it would make any difference?

[54:37] Well, that's one second.

[54:39] I'll let Harja go ahead.

[54:41] I don't have enough information to comfortably state that that time period would allow them to come into compliance for all aspects.

[54:49] And I was going to add is the contract is going to expire.

[54:53] Terminate.

[54:54] So we would have to renegotiate another contract anyway.

[54:57] So I think what we're going.

[55:00] We're looking at is do you want us to solely negotiate with CMAP for a new contract or do a hybrid and let others possibly submit.

[55:11] And during that, we could also see if there are some potential internal expenditures that might fix.

[55:18] Also, so there's several options.

[55:20] We just want to get a sense from you.

[55:22] Do you want us to negotiate with CMAP or possibly go out.

[55:26] And see if others might be also interested.

[55:30] Okay.

[55:32] I don't agree that we should bring this in house.

[55:36] I think we need to leave it alone.

[55:39] And I would prefer to keep it with CMAP if we can work with them.

[55:47] To get things straightened out to our standards.

[55:54] I would prefer to go that route.

[55:58] So, you know, I would think we could go.

[56:01] I mean, you should be able to whip up a short term contract for six months.

[56:09] And while we're negotiating and trying to leave straightness out, thank you.

[56:15] That's remember playing?

[56:19] I know it talks about relationships and very important.

[56:23] And I understand that aspect of it.

[56:25] I also know from a nonprofit, the responsibilities you have.

[56:29] And that'll be an on council.

[56:30] You're talking about public funds and being very transparent with that.

[56:35] We expect that.

[56:36] And so I kind of lean towards what council member Bronco talks about and given it that time.

[56:44] And working at it more so than the other aspects of this.

[56:48] So, that's just my thought.

[56:50] Council member Marks.

[56:52] I too would like to see maybe short term contract of six months and go shade it with them.

[56:58] I think they've heard how we feel.

[57:00] We've heard the report.

[57:02] You know what you need to do.

[57:03] And I'd like to see you have the six months to turn it around and get it done.

[57:07] And keep it local.

[57:09] All right.

[57:10] Thank you.

[57:11] Yeah.

[57:14] So a couple things we have to remember here is that what has staff is presented and what we've heard from the folks here this evening.

[57:21] There's two things going on here.

[57:23] There is the contract that exists now.

[57:26] Right.

[57:27] That's from from 2020 to 2025.

[57:30] Right.

[57:31] And that's what I believe that you that staff has reported that they're out of compliance.

[57:36] And I believe that the CMAP folks have acknowledged that there's some compliance.

[57:40] So there's there's that issue.

[57:43] And there's also the issue that presented with us up on this board.

[57:46] And that is moving forward.

[57:48] It sounds like this council does not want to lose the opportunity to continue working with CMAP.

[57:54] Is that is that safe that part?

[57:56] Is that safe to say?

[57:57] Is everybody okay with that?

[57:59] So it sounds like to me that we anyone jump in here.

[58:04] It sounds like to me considering the second part that I just talked about this.

[58:08] We knew the CMAP agreement under a restructured scope.

[58:11] The staff would really be asking staff to go back and consider the needs of this community and this.

[58:18] And and and the city of Yoray in 2026 through 2030.

[58:24] Right.

[58:25] Because this is what's we're considering now.

[58:27] The next five years.

[58:29] Right.

[58:30] It could be five years.

[58:31] It could be whatever.

[58:32] Okay.

[58:33] Okay.

[58:34] Council of the amount of years I just said.

[58:36] Looking forward after 2025.

[58:38] What city of administrator.

[58:40] Kilsard keeps talking about is that we have a current agreement right now.

[58:44] That's in place that expires on 2025.

[58:47] And what this.

[58:48] This is administrative.

[58:50] At this point in time, this is administrative.

[58:53] Correct.

[58:54] That this is not what's up for debate at this moment in time.

[58:57] Right.

[58:58] This is a staff administrative issue to deal with compliance or non compliance or acceptance.

[59:03] Is that correct?

[59:04] Yes.

[59:05] Correct.

[59:06] City manager.

[59:07] Administrator.

[59:08] Yeah.

[59:09] Okay.

[59:10] So.

[59:11] Are you guys.

[59:12] So I had.

[59:13] Tonight.

[59:14] Can I make the point clear?

[59:15] I think.

[59:16] I think.

[59:17] I tend to be overly dramatic.

[59:18] This is what happened when you get my age and you've been doing in a work for so many years.

[59:22] My wife tells me to stop doing this.

[59:25] Anyway.

[59:26] So we have a contract.

[59:28] It has all these responsibilities.

[59:31] The team app wants to continue to provide some services to the city.

[59:35] Whatever those are.

[59:37] They may end up being less.

[59:40] But we'll have a contract with C-map.

[59:42] To provide some of those services.

[59:44] We have a fiduciary responsibility and a contractual responsibility.

[59:48] If you make sure whatever that scope of service is said is met.

[59:53] Otherwise, we could be held legally liable.

[59:57] So there.

[1:00:00] For what I'm trying to say is, we're more than happy to sit down, because I'm hearing soul source with CMAP, give me a sec, soul source CMAP to negotiate a contract.

[1:00:11] But I want you to know, it's not three months, it's not six months, it's creating a contract that we both can live with that they can perform under and we're comfortable and they can provide the information needed.

[1:00:24] It's not going to be easy, you're still working on building your organization.

[1:00:28] We're more than happy to sit down with CMAP representatives, have this discussion, but we will be looking to them to sit down and say, this we know we can provide this, we know we can do this and we can meet those requirements.

[1:00:42] Fair enough? Okay.

[1:00:44] Brad, if I can add, does that mean that's why I was saying it's going to expire before we can get that done.

[1:00:51] Yes.

[1:00:52] So therefore it's going to transition to internal management by default, right?

[1:00:57] And then we're going to basically work toward creating some new form of some new contract.

[1:01:02] Right.

[1:01:03] And that's why I said it the way I said it, because that's essentially what's going to happen.

[1:01:07] But I wanted, yes, yes, sir. I wanted to say there wasn't something we could whip up and do for a few months.

[1:01:14] We've got to sit down and build this thing, so it works for both parties.

[1:01:18] So to be clear from council, we are not interested in a transition to our internal management.

[1:01:23] We are not interested in a hybrid issue in RFP to some outside city, state, far, far away from here.

[1:01:29] We are interested in the city of Gilroy reviewing the needs of this community and working with CMAP for our future agreement.

[1:01:38] Does that work?

[1:01:39] There's a number one states.

[1:01:40] Yep.

[1:01:41] Well, we were Mayor, I have a question.

[1:01:43] Brad, could we write into the contract that we have an update in six months after the contract has been issued?

[1:01:51] Just to see that things are progressing or what's happening?

[1:01:57] Let me sit down with staff.

[1:02:00] I have the same thought you did.

[1:02:03] I was going to put it that way.

[1:02:07] As you said before, an agreement will be based on the needs of this community and what they can agree to.

[1:02:13] Yeah, I think what we need to do is, because of these things with everything going on, they're busy.

[1:02:18] We're busy is that we need to get started on it now, not later, and we need to come back and give the council an update.

[1:02:25] Yeah.

[1:02:26] Where we are on this, so that you have a sense that we're making progress.

[1:02:29] And they're making progress.

[1:02:30] Well, together we're making progress.

[1:02:32] Okay.

[1:02:33] Thank you.

[1:02:36] One last comment, Mr. Sanchez.

[1:02:39] And then the study session will come to an end already to get to the next.

[1:02:43] Regarding the compliance issues that we are, quote unquote, not going to meet.

[1:02:47] We have communicated to Harzo in particular, but city staff in general, that we will meet these

[1:02:54] compliance issues before the end of this contract.

[1:02:57] Now, I wish it could have been sooner.

[1:02:59] We had a CPA firm back in May, I'm sorry, March, because we couldn't get a meeting with city staff.

[1:03:07] It kicked it out till August before we could even start our year-end reviews and our audit.

[1:03:13] So it has to be said that it's a two-way street.

[1:03:16] We have been trying uphill, and I'm used to hard struggles.

[1:03:20] But this has been one of the harder ones that I've had to deal with.

[1:03:23] We want to be in compliance.

[1:03:24] We will be in compliance.

[1:03:25] I've given all the dates there in your packets.

[1:03:28] That's all I got.

[1:03:30] Thank you.

[1:03:31] Thank you.

[1:03:32] Thank you.

[1:03:33] Thank you.

[1:03:34] We want to thank you.

[1:03:35] Do you think we have issues like that?

[1:03:38] Eight.

[1:03:39] Nine.

[1:03:40] Don't.

[1:03:41] Don't.

[1:03:42] We're done with this.

[1:03:43] So when you pack it.

[1:03:45] No, no, no.

[1:03:46] We're done with this.

[1:03:47] This session's over.

[1:03:48] Thank you very much, Mark.

[1:03:49] We got to get to the next meeting.

[1:03:50] Thank you very much, staff.

[1:03:52] Come back in 11 minutes, please, for the next meeting.

[1:03:54] Thank you very much.

[1:04:12] Frankly, when you came through the door.

[1:04:21] Thank you.

[1:04:51] I love her name.

[1:04:52] It's all right.

[1:04:53] Thank you.

[1:04:54] Thank you.

[1:04:55] Thank you.

[1:04:56] I'm George.

[1:04:57] Thank you.

[1:04:58] Thank you.

[1:04:59] Thank you.

[1:05:00] I'm George.

[1:05:01] Thank you.

[1:05:21] Thank you.

[1:05:22] Thank you.

[1:05:51] Thank you.

[1:05:52] Thank you.

[1:06:21] Thank you.

[1:06:51] Thank you.

[1:07:21] Thank you.

[1:07:22] Thank you.

[1:07:51] Thank you.

[1:08:21] Thank you.

[1:08:51] Thank you.

[1:09:21] Thank you.

[1:09:22] Thank you.

[1:09:51] Thank you.

[1:09:52] Thank you.

[1:10:21] Thank you.

[1:10:22] Thank you.

[1:10:51] Thank you.

[1:10:52] Thank you.

[1:11:21] Thank you.

[1:11:22] Thank you.

[1:11:51] Thank you.

[1:11:52] Thank you.

[1:12:21] Thank you.

[1:12:22] Thank you.

[1:12:51] Thank you.

[1:12:52] Thank you.

[1:13:21] Thank you.

[1:13:22] Thank you.

[1:13:51] Thank you.

[1:13:52] Thank you.

[1:14:21] Thank you.

[1:14:22] Thank you.

[1:14:51] Thank you.

[1:14:52] Thank you.

[1:15:00] Okay, let's call the official Monday, November 3rd, 2025 meeting, to order.

[1:15:29] At 6.15 PM, roll call, please.

[1:15:34] Council member Baracko, council member Klein, council member Fugazzi, council member Hilton, council member Marks, council member Ramirez, your air bow, so.

[1:15:43] Here, 1.3 cities and clerks reporting on the agenda, please.

[1:15:48] Thank you, Mayor. This agenda was posted on Monday, October 27th at 4 o'clock PM.

[1:15:53] Okay, pledge of allegiance will be led by council member Ramirez, please remain standing for invocation.

[1:16:04] Thank you, good evening, Mayor, city council. The privilege to do the invocation this evening, so let us pray.

[1:16:28] Father, we come before you, we just want to thank you for the opportunity to serve our community, we pray Father God for wisdom, insight, discernment, we pray for the city council, the mayor, the law enforcement, medical, fire, and all the other departments that serve our community, we thank you and your precious name, we pray.

[1:16:52] Thank you, Jesse.

[1:16:56] Okay, item 1.6 orders of the day, we have none, items 1.7, and we're going to jump right to employee introductions.

[1:17:04] You chill these director heat mechanic, introducing Jay Katta Manini, I'm so sorry if I got that name wrong, I should have reviewed it.

[1:17:12] I'm going to find out right now, how about that was? Jay?

[1:17:15] I'm going to be.

[1:17:16] Oh man, I have a close.

[1:17:19] I was close.

[1:17:20] All right, good evening, Mayor, everybody's city council public can see tonight.

[1:17:23] Please introduce a new member to your intelligence department, and Jay joined us as an engineer one who will be primarily working on task related to a squirrel multiple tasks there in project over at the treatment plant.

[1:17:34] Jay recently earned his bachelor's of science degree in mechanical engineering from UC Riverside, graduating with honors, and also passed his fundamentals of engineering exam,

[1:17:43] which a thousand become an EIT engineering and training with the state of California.

[1:17:47] Before joining the city of Giroi, he gained some experience in both other utilities and advanced research environments,

[1:17:54] and Southern California Gas Company supported the planning and design of capital improvements for pipeline and pressure regularly to infrastructure,

[1:18:01] and he also interned at hyonics incorporated where he contributed to research and development process optimization.

[1:18:07] Early in his academic career he worked as a pediatric rehabilitation technology lab,

[1:18:12] for that company, designing wearable assistive devices to support children with movement impairments.

[1:18:18] Outside of working enjoys rock climbing volleyball and trying out new hobbies, please welcome Jay.

[1:18:24] Hi, my name is Jay Kenton-Naney, and I recently graduated through my career in school I learned that I had a real passion for sustainability and infrastructure.

[1:18:39] I'm really grateful for the city to grant me this opportunity to serve the community and put those passions to good use.

[1:18:45] Thank you.

[1:18:46] Okay, next captain Luke Powell will be introducing two.

[1:18:54] They're not new employees.

[1:18:57] Well, one is new, right?

[1:18:59] It's my pleasure to introduce two new employees to the city of Giroi, police department and the city team.

[1:19:05] First up, we'll be officer Michael Defritus.

[1:19:08] Michael started on November 1st.

[1:19:10] Michael grew up in Belmont, California, where he was raised by his mother and grandparents.

[1:19:15] In 2019 he purchased a home and moved to Gilroy.

[1:19:18] He's proud to be a member of our community.

[1:19:21] Michael's career path has been diverse.

[1:19:24] He has worked in customer service, retail, food service, and the medical field.

[1:19:30] He also spent time as a personal trainer and self defense coach.

[1:19:34] And for six years he worked as a union nutrition in San Jose, Calera County.

[1:19:39] He only called to service.

[1:19:42] He only called to serve his community in a deeper way.

[1:19:45] Michael joined the Gilroy Police Department in March of 2024 as a community service officer.

[1:19:51] Where he handled vehicle abatement, graffiti abatement, animal control, and cold case investigations.

[1:19:59] Inspired by the character, compassion, and professionalism of the officers he worked with,

[1:20:05] Michael decided to pursue his dream of becoming a police officer.

[1:20:10] He recently graduated from the South A Police Academy and his eager to begin serving the Gilroy community in this new capacity.

[1:20:18] Outside of work Michael enjoys spending time outdoors, walking and hiking with his wife and their dogs.

[1:20:25] He is a fan of movies and science fiction, a fitness enthusiast, and an avid, martial artist who trains and competes in jujitsu and MMA.

[1:20:36] Please help me welcome Officer Michael to the City of Gilroy.

[1:20:41] It's an honor to be here guys.

[1:20:50] I worked really hard and been in the town for a couple years now and I truly just love our community.

[1:20:57] It's part of the reason I stepped up to try to help the officers of Gilroy and the people of Gilroy, some of the best people I've met.

[1:21:05] So like I said it's an honor to be here. Thank you for this opportunity and if you ever seen me out there and you feel like you want to stop and talk.

[1:21:12] I'm always here.

[1:21:19] All right, up next we'll be police officer, Camilla Aguilar.

[1:21:24] Camilla started on the verbers' seconds. Camilla is a proud first-generation college graduate who earned her degree from Sacramento State University.

[1:21:33] She recently completed the South Bay Police Academy where she trained to become a sworn police officer.

[1:21:39] Before beginning her law enforcement career, Camilla gained a wide range of experience in both customer service and public safety.

[1:21:47] Holding Rose rolls, sorry, as a grocery store or cashier, game master at an escape room and community service officer for the University Police Department.

[1:21:59] One of her most meaningful professional experiences came right here in Gilroy, where she served as an intern with the South County Youth Task Force.

[1:22:09] That experience strengthened her passion for community engagement and public service, inspiring her to return to Gilroy as a police officer.

[1:22:19] Outside of work Camilla enjoys watching films spending time with friends and family and exploring new places.

[1:22:26] She is excited to be in her the next chapter and looks forward to serving and growing with the Gilroy community.

[1:22:33] Please join me in welcoming Camilla to this day of Gilroy.

[1:22:38] Hi there everybody. My name is Camilla Aguilar. You know it's an honor to be here.

[1:22:49] I'm very excited to work with you guys and just how Michael said it.

[1:22:53] If you guys ever want to stop by and say hi to me. Please let me know and I'll be here and talk and just have a nice time with you guys.

[1:23:01] Very excited to be here.

[1:23:03] Thank you.

[1:23:09] Thank you Captain Pal, you guys have no obligation. You're welcome to stay here all night if you'd like to. You have no obligation to stay.

[1:23:15] Let's see. Let's see if we go first.

[1:23:20] Okay moving on to item number two.

[1:23:23] The only items. Proclamation. I have one.

[1:23:26] Proclamation day. An arbor day. Proclamation. Which will be accepted by parks and wrecked commission chair Luis Ramirez.

[1:23:45] Okay city of Gilroy.

[1:23:46] We're as in 1872 the Nebraska Board of Agriculture established a special day to be set aside for the planting of trees.

[1:23:54] And we're as arbor day is now observed throughout the nation and the world.

[1:23:58] And we're as trees are a renewable resource giving us paper wood for our homes, fuel for our fires and countless other wood products.

[1:24:06] And we're as trees wherever they are planted are a source of joy and spiritual renewal.

[1:24:12] Now therefore I Greg Bozo Mayor of the city of Gilroy together with my colleagues on the city council.

[1:24:19] Do hereby proclaim November 3rd, 2025 as arbor day.

[1:24:24] And encourage all citizens to celebrate arbor day.

[1:24:27] Support efforts to protect our trees and woodlands and plant trees to glad in the heart and promote the well-being of this and future generations.

[1:24:36] Thank you.

[1:24:38] Thank you.

[1:24:43] Thank you Mr. Mayor Council. Public.

[1:24:45] I invite everybody to come join us for arbor day.

[1:24:48] We're actually going to be planting some trees on Wednesday at 10 a.m. at Sydney Casper Park.

[1:24:53] Make this a this is something we've done.

[1:24:56] We've been part of tree city USA since 1979.

[1:24:59] It's a tradition that we've honored every single year.

[1:25:02] And then on Wednesday we do it again and maintaining joy as a tree city,

[1:25:07] keeping a green and keeping a healthy soul.

[1:25:09] Thank you and I'd like you all there.

[1:25:11] Thank you.

[1:25:32] You are very good at this.

[1:25:34] Thank you.

[1:25:35] Oh, I'm here.

[1:25:37] I'm here for every day.

[1:25:39] Thank you.

[1:25:41] Thank you very much.

[1:25:43] Thank you.

[1:25:45] Thank you.

[1:25:47] Thank you.

[1:25:48] Thank you.

[1:25:49] Thank you.

[1:25:52] Thank you very much.

[1:26:15] Moving on to item number three, presentations to Council public comment by members of the

[1:26:20] public, on items not on the agenda but within the subject matter jurisdiction of the City Council.

[1:26:24] Any public comments?

[1:26:25] Yes, I have five speakers currently.

[1:26:27] I, Greg Filios, followed by Adam Jaso and Sherry Jaso.

[1:26:33] Thank you.

[1:26:36] I will post servants.

[1:26:38] You see me wearing my vote?

[1:26:40] It matters t-shirt.

[1:26:41] This is a, I have a number of different vote shirts.

[1:26:44] This is the last night.

[1:26:45] I get to how is you for getting out to your constituents and

[1:26:49] I think, reminding them that it is important to vote.

[1:26:53] You guys, the last night.

[1:26:55] So I'll find something else to ask you about.

[1:26:58] But for tonight and tomorrow, I'll be wearing this over the weekend.

[1:27:02] I, at the front of the festival was a great, great crowd.

[1:27:06] Lots of different organizations had booths and every booth I made sure that I said,

[1:27:12] hey, when you see people tell them voting matters.

[1:27:16] So, no matter what happens in the, there's also the election.

[1:27:20] No matter what happens.

[1:27:22] You're still going to see us on Saturdays here.

[1:27:25] So just to let you know that, no matter what the results are.

[1:27:29] You're going to see us, our group.

[1:27:31] We have a group of, you know, we average 35 to 40 tonight's more sometimes less on the corner.

[1:27:36] First in Santa Teresa, every Saturday at 12am, spreading our message.

[1:27:41] So you're still be seeing us.

[1:27:44] And we just want you to be aware that we are there.

[1:27:47] And we want people to go, and we don't say, and again, we don't say, we just want people to be informed voters.

[1:27:54] So voting is important.

[1:27:56] We don't say who is your vote vote.

[1:27:58] But the idea of getting people to vote, getting people informed, spread that message.

[1:28:03] Thank you so much.

[1:28:04] Thank you.

[1:28:06] Sorry, who's next, Kim?

[1:28:11] Adam Jaso, followed by Sherry.

[1:28:24] Mayor, City Council members and public.

[1:28:28] My name is Adam Hasa, and this is my wife, Sherry Hasa.

[1:28:32] My wife and I live on Forest Street in Delroy, Long Miller, Slu.

[1:28:36] My mother, Martha Hasa, who couldn't be here tonight, owns the house across the sluph from us.

[1:28:41] I'm here today to speak on behalf of my wife, my mother and myself,

[1:28:45] and to bring to your attention an issue that I'm sure you're all well aware of.

[1:28:50] And at some level have been dealing with.

[1:28:52] That is the presence of homeless folks who reside in the sluph.

[1:28:56] And the question of who is responsible for cleaning up their debris.

[1:29:00] In part, I understand the rationale behind requiring the homeowner to clean up the debris,

[1:29:04] because it is legally there property.

[1:29:06] I discovered that through speaking with Feliciano Aguilar of Santa Clara,

[1:29:11] Valley Water in Juke in June.

[1:29:14] I call to inform Valley Water of the presence of the homeless folks in the sluph.

[1:29:19] And the debris they had generated, and to ask if they had plans for cleaning it up.

[1:29:24] He informed me that Valley Water had zero jurisdiction because of the sluph.

[1:29:29] He passed through our property boundaries.

[1:29:32] In September, my wife and I, as well as my mother, began receiving letters from the city of Gilroy,

[1:29:38] requiring us to fill out a 602 PC enforcement form and to have it notarized and taken to the police department,

[1:29:46] which we did.

[1:29:48] The letter also instructed us to put up no trespassing signs with particular language,

[1:29:52] which we also did.

[1:29:54] Eventually, we received a citation in the amount of $200 for not cleaning up the homeless folks debris.

[1:30:00] We have also received an additional citation letter increasing the amount of $400 for not meeting the deadline.

[1:30:15] On June 23rd of this year, about four and a half months ago, the homeless encampment became so large that I called the city of Gilroy's non-emergency

[1:30:22] phone number to request help in having these folks removed.

[1:30:26] An officer came out, Christopher Silva by name, and asked them to leave.

[1:30:31] They eventually left, and it was then my responsibility to remove the debris.

[1:30:35] Approximately a 20 yard dumpster of debris was removed.

[1:30:41] In late August, the homeless folks slowly returned.

[1:30:44] I went down into the slew and informed them that they were on private property and needed to leave.

[1:30:50] Some left and most stayed. One of them told me that they had returned to this location because they had asked.

[1:30:57] They had been asked to leave another area downstream.

[1:31:00] They had previously excavated a side of the bank here to create a level area.

[1:31:05] So it was a convenient place to return to camp and they've also dug other trenches there as well.

[1:31:14] Thus altering the water course as Matt Jones, the Deputy Director of Public Works Observed,

[1:31:20] when looking at what the homeless folks had been doing.

[1:31:24] This is not a new issue. On November 14th, 2022.

[1:31:30] You can continue.

[1:31:32] I'm sharing.

[1:31:40] On November 14th, 2022,

[1:31:43] almost three years ago.

[1:31:45] I received a letter from the Code Enforcement Officer, Scott Barron,

[1:31:49] regarding the same subject with similar requirements and penalties for not cleaning up the debris.

[1:31:54] Here is a portion of my email response to him regarding this.

[1:31:59] Quote, I hope that you're not serious about me cleaning up this mess in this slew

[1:32:03] and issuing a citation if I have not.

[1:32:05] Addressing the homelessness and the results of it.

[1:32:08] Their trash is not my responsibility unless by force of law you make it my responsibility.

[1:32:13] It seems like the city officials should be seeking to address the issue of homelessness.

[1:32:17] And while they are working on it, cleaning up the debris that the Transans create.

[1:32:22] I included my mother's name above in this letter, Martha Haasso,

[1:32:26] because she's the owner of the property across the slew and also received a letter.

[1:32:30] I'm writing on her behalf as well with due respect and thanks to your service to the community.

[1:32:34] Again, that was a quote from a letter that my husband sent to the Code Enforcement Officer

[1:32:41] almost three years ago.

[1:32:43] Now I'm asking that the citation be cancelled or whatever the correct language is.

[1:32:48] I do not want to be charged or cited for a problem that I did not create.

[1:32:52] Before I was cited, I addressed the problem in June of this year and now it is returned.

[1:32:57] Even if I were to address this problem again now or pay the fine and the city which would address it, it will return.

[1:33:02] Thank you for your consideration.

[1:33:06] Thank you.

[1:33:07] We appreciate your service to the community.

[1:33:10] Thank you very much.

[1:33:11] John Kirkish, followed by Linda Burdy.

[1:33:15] I'm sorry to hear that folks.

[1:33:18] Good evening Mayor, council and community.

[1:33:23] There's a couple of things I'd like to speak about real quick tonight.

[1:33:27] Number one is the great work that our city administrator, you guys, and our public works department

[1:33:35] and ahead on the streets.

[1:33:38] We've made a great progress on several of the streets in Gilroy and I really appreciate it.

[1:33:44] And I hope the public works people hear this because they need to have their stuff on the back too for doing a great job for this community.

[1:33:55] On another note this weekend, I was informed this morning by somebody in San Jose that we had an assault against a police officer, a Gilroy police officer this weekend.

[1:34:09] The assault officer heard his hand pretty badly, I understand.

[1:34:14] And the officer's name is Brett Bakley and he's from what I understand he's going to be out for a long time.

[1:34:23] So I just want to let our police officers know that I do hear stuff and I want to report it.

[1:34:31] I want to expose it to the community so that you all understand how bad this problem can be to and how dangerous police work is.

[1:34:40] So anyway, thank you very much.

[1:34:43] Thank you.

[1:34:48] Linda.

[1:34:53] Good evening city council and they are my name is Linda Birdie.

[1:34:57] I wanted to just say what's happening in my neighborhood and all around my neighborhoods.

[1:35:02] The allowance of all these ad use being put in.

[1:35:06] They I know it's not the city's problem in a sense because they're being mandated from the state.

[1:35:13] But is there anything the city can do about it? They are leaving trash.

[1:35:17] They're bringing down the values of the homes. The streets are over run with cars.

[1:35:23] And so are the alleys which aren't dangerous because of a vehicle like a fire engine would not be able to get through.

[1:35:30] And I just want to know what can be done to help homeowners like me who have been paying taxes keep my yard up and try to make it a pleasant community to live in.

[1:35:40] And when people can move in multiple families built multiple units and then just trash the place. Thank you.

[1:35:50] I have no more speakers.

[1:35:52] Okay, thank you very much.

[1:35:55] I'll go ahead.

[1:35:56] Yes, sorry.

[1:35:58] Two quick comments on the ADU we do have some illegal ADUs in the community and I would suggest she talk to Sharon our community development director.

[1:36:09] Check out your area because the standards definitely have to take into account fire access in those types of issues.

[1:36:17] So if there are some legitimate problems with those speak to them.

[1:36:21] Also two yeah.

[1:36:23] Our code enforcement officers speaking to the two individuals.

[1:36:26] The attorney was going to mention and the reason I'm doing is we're not allowed to discuss if this is public information.

[1:36:32] You do have a right to appeal on a citation.

[1:36:34] But this is these are older ones and I think it was a previous administration that took a different approach to dealing with the enforcement issues.

[1:36:44] And so I think they should bring that also to the attention of community development.

[1:36:49] We'll see what we can do.

[1:36:54] Okay, moving on to item number four reports of council members.

[1:36:58] Council member Bronco.

[1:37:00] I think I have I'd like to wish my colleague council member marks happy birthday.

[1:37:05] Thank you.

[1:37:06] Happy birthday.

[1:37:07] Council member council member Fugazzi.

[1:37:13] Nothing.

[1:37:14] Thank you.

[1:37:15] Council member marks.

[1:37:16] Yes, one year younger.

[1:37:19] But I would just like to say congratulations to the law of forensic committee.

[1:37:24] It looked like a wonderful celebration.

[1:37:26] Great music.

[1:37:27] The sale is beautiful.

[1:37:29] So many more to come in the future.

[1:37:32] Thank you.

[1:37:33] Council member Hilton.

[1:37:34] Thank you from the Valley Transportation Authority Policy Advisory Committee.

[1:37:38] After more than two years of public discussion.

[1:37:40] Technical analysis and refinement.

[1:37:42] The Metropolitan Transportation Commission and Association of Bay Area Governments.

[1:37:45] I released the drop plan Bay Area 2050.

[1:37:48] Plus and the plan Bay Area 2050.

[1:37:51] Drought environmental impact report for review and comment.

[1:37:54] You need to this plan is the parallel transit 2050 planning effort.

[1:37:58] Which culminated in the first of its kind plans to re-envision the future of Bay Area Public Transportation.

[1:38:04] A partnership with transit operators across the region.

[1:38:07] You can read the read online the drop plan Bay Area 2050 reports.

[1:38:12] And public comments are due by December 18th.

[1:38:15] I'd like to thank VTA and their staff for sponsoring and attending the law firm to festival and wellness

[1:38:20] for this past weekend.

[1:38:21] They had their pink rap law in front of us there on display with two booze.

[1:38:26] Were they resharing programs and projects as well as answering questions about current transit options?

[1:38:31] From Silicon Valley Clean Energy.

[1:38:33] SEC does not receive federal funding and staff into space no direct financial impacts from from government shutdown.

[1:38:40] However, there will likely be indirect impacts including delays in energy project permitting.

[1:38:46] Interruptions in rebates and reimbursements made to member agencies and and a potentially general negative impacts on the regional economy.

[1:38:55] SEC faces many challenges in building a clean reliable and affordable supply portfolio and meeting its 100% carbon free target.

[1:39:03] These challenges including increasing costs, expanding the regulation and growing load.

[1:39:10] Despite these challenges, SEC hits its target every year and with the expectation of 2024 in which the goal is relaxed due to market conditions.

[1:39:20] I'd like to personally thank SEC and their staff for sponsoring and attending the law firm to festival and wellness for a space weekend.

[1:39:26] They were their sharing programs and projects as well as answering questions.

[1:39:30] SEC has been a founding partner since the beginning.

[1:39:33] And lastly, I just wanted to thank Senate quick thank you to our city staff from Gilroy from across all departments that either work the festival or attend it on their own.

[1:39:42] Your presence in directing interaction with the festival in attendees.

[1:39:46] Absolutely committee was noticed and appreciated.

[1:39:48] It always live for an festival is bringing together a cross section of sponsorships and partnerships from government education, health, private sector, arts, transportation, culture, nonprofits.

[1:39:58] Labor workforce and more.

[1:40:00] Having our staff play an active part in the festival shows your willingness for collaboration and leadership in our community.

[1:40:06] So I'd like to also echo my congratulations to the law firm.

[1:40:15] The law firm to team great festival.

[1:40:19] Great event for our downtown community as well.

[1:40:23] Also congratulations to the library.

[1:40:26] They had a ceremony on Saturday morning where they had the story walk where they have their storyboards out on display.

[1:40:37] You can walk through the park and read the story.

[1:40:41] They're integrating play and literacy both offsite there at Christmas Hill as well as at the library.

[1:40:51] And I also want to encourage my fellow council members.

[1:40:57] I did a right along with the police department.

[1:41:00] I don't know maybe two weeks ago and I know that that was my third time doing it.

[1:41:05] The last couple of years and I know that the chief sent out an email to all of you.

[1:41:10] It's really a great way to learn about the challenges that they face on a day-to-day basis and ask a lot of questions.

[1:41:21] And I am looking forward to my next ride along with the Fire Department next week.

[1:41:28] Thank you.

[1:41:29] Thank you council member Klein.

[1:41:30] No report.

[1:41:31] I have one report from the Gary Gardens Board of Directors.

[1:41:34] I'm looking forward to our meeting at the end of November where we will be having a strategic plan session.

[1:41:40] Which is a reflection of the new leadership at the Gary Gardens Board of Directors as they've begun to shift from a mode of survival into a mode of sustainability and longevity.

[1:41:53] So I'm looking forward to that and I'll be reporting back after that meeting.

[1:41:58] So moving on to the item number five.

[1:42:00] It's the consent calendar.

[1:42:01] We'll entertain an emotion for the to prove the consent calendar a 5.1 through 5.4.

[1:42:10] So moved.

[1:42:11] Thank you.

[1:42:12] Okay.

[1:42:13] I have a motion by council member Ramirez and the second by council members.

[1:42:16] We'll call please.

[1:42:18] Council member Bronco.

[1:42:20] Council member Klein.

[1:42:21] Yes.

[1:42:22] Council member Fugazzi.

[1:42:23] Yes.

[1:42:24] Council member Hilton.

[1:42:25] Yes.

[1:42:26] Yes.

[1:42:27] Yes.

[1:42:28] Motion passes.

[1:42:29] 7 0.

[1:42:30] Good.

[1:42:31] Thank you.

[1:42:32] Are you to the director.

[1:42:33] He wanted me to mention that he's very proud of his staff.

[1:42:37] This deals the report that you adopted tonight.

[1:42:41] This plan.

[1:42:44] Our sewer units have been able to maintain our sewer lines from overflow.

[1:42:51] Beating most cities and counties within the state.

[1:42:54] And so that's a compliment to the staff and it's a compliment to you giving in the resources.

[1:42:59] They need to do that.

[1:43:00] So thank you.

[1:43:01] Thank you.

[1:43:02] Moving on to item number six.

[1:43:05] Bids and proposals.

[1:43:06] 6.1 award a contract to FBD van guard construction incorporated for the fiscal year.

[1:43:13] 26 CDBG sidewalk and curb ramp project number 26 dash pw dash 303 in the amount of 156.

[1:43:23] 6,820 dollars.

[1:43:25] Improved a project contingency of $19,370 and 14 cents.

[1:43:30] And approved a total project expenditure of $176,190.

[1:43:35] 14 cents for construction.

[1:43:37] Staff report please.

[1:43:42] Good evening.

[1:43:43] City Council.

[1:43:44] Mayor Bozos staff in the public.

[1:43:46] I'm Nisha Patel City Engineer.

[1:43:48] Please to present tonight.

[1:43:50] Word of a construction contract to FBD van guard construction ink for the fiscal year.

[1:43:56] 26 CDBG sidewalk and curb ramp project.

[1:44:04] And the project location is on the east side of Monterey.

[1:44:09] Between 10th Street and Luchessa.

[1:44:12] It's between the existing Monterey gateway apartments.

[1:44:17] And the future Rome apartment development.

[1:44:24] And the project is, again, between those two housing projects.

[1:44:34] The Rome project is currently underway.

[1:44:37] Some on site work is being done right now.

[1:44:40] Construction is expected to begin in full this summer.

[1:44:45] And there is also a city project of installing a hawk signal

[1:44:52] to provide a controlled midblock crossing across Monterey Street

[1:44:57] in front of the Monterey gateway apartments.

[1:45:00] The hot signal project is expected to advertise for bids in spring 2026 and start construction in summer 2026.

[1:45:13] So the details of the project, the project will construct sidewalk, curb, gutter and associated improvements.

[1:45:20] It will provide a sidewalk connection from the existing Monterey Gateway apartment sidewalk and the new sidewalk being constructed,

[1:45:27] the Rome Builders apartment project.

[1:45:29] These improvements will also provide pedestrian connectivity from the Rome Builders apartment project to the future Monterey Gateway Senior apartment pedestrian safety improvements,

[1:45:39] that hawk pedestrian crossing that I spoke about.

[1:45:43] The project will also improve pedestrian safety and accessibility.

[1:45:51] The city participates in HUD CDBG program, which allows the city to receive an annual allocation of CDBG funds.

[1:45:58] The CDBG capital improvement allocation for the project was approved by city council in June 2025.

[1:46:04] The fiscal year 2026 grant awarded to the city was in the amount of 176,190 dollars in 14 cents.

[1:46:14] The project location was chosen because it fills a critical link between the two housing projects where there is currently no sidewalk.

[1:46:22] The project can be constructed with the allocated budget and it will improve safety and accessibility to pedestrians and disabled.

[1:46:34] On September 19, 2025, the city advertised for bids for the project and October 9.

[1:46:41] We had the bid opening for the project received five bids.

[1:46:45] One bid was just qualified and deemed non-responsive.

[1:46:51] And we continued to review the bids and FED.

[1:46:55] The end-guard construction was identified as a lowest responsive and responsible bidder with a bid of 156,820.

[1:47:06] And today staff is requesting the city council award a construction contract and improves the construction contingency.

[1:47:21] The proposed contract with FED Vanguard construction is in the amount of 156,820.

[1:47:30] Staff is also requesting a construction contingency of 19,370 and 14 cents, which is remaining budget for the project, which is 11.

[1:47:43] I mean 12.35% of the construction contract.

[1:47:49] The total construction allocation would be 176,190.

[1:47:55] And the funding is coming from fully coming from CDBG grant funds.

[1:48:06] So staff is recommending the city council awarded contract to FED Vanguard construction ink in the amount of 156,820.

[1:48:16] Approve a construction contingency of 19,370 and 14 cents.

[1:48:21] This is for unforeseen construction conditions.

[1:48:25] Approve a total project expenditure of 176,190 and 14 cents.

[1:48:32] And authorized the city administrator execute the contract and associated documents.

[1:48:41] If the council approves the contract with FED Vanguard construction tonight, staff will finalize the construction construction project schedule.

[1:48:51] And the city administrator will execute the contract.

[1:48:54] Construction is expected to begin in November 2025.

[1:49:00] This concludes my presentation and I'm happy to answer questions.

[1:49:05] Questions for staff?

[1:49:10] Okay, public comment.

[1:49:12] I have no comments.

[1:49:14] All right.

[1:49:15] I'll just have a quick comment.

[1:49:20] This is when we built the Monterey Gateway apartments or started approval process.

[1:49:25] We tried to condition them to build all these sidewalks.

[1:49:28] To go all the way to 10th Street.

[1:49:30] So I just want to give some thanks to staff.

[1:49:33] Both of you weren't here when that occurred.

[1:49:35] You kind of picked this up.

[1:49:37] Great job on your first presentation.

[1:49:39] But this project and that overlay is a perfect example of when we have relationships with our federal partners.

[1:49:45] Our state electives.

[1:49:46] It was representatives.

[1:49:48] A state senator John Lairer who got $350,000.

[1:49:51] A budget appropriations.

[1:49:53] And then representatives are offering $350,000 to get that hot crosswalk in there.

[1:49:58] And then of course using the federal HUD funds.

[1:50:01] So you get that CDBG.

[1:50:02] So just a great example of where we're running in margins.

[1:50:05] We have a lot of stuff that we want to do through our general plan.

[1:50:08] And having those relationships get stuff done like this.

[1:50:11] So just want to say thank you.

[1:50:12] And if no one else has any other comments or anything.

[1:50:14] I'll be happy to make a motion.

[1:50:15] One more ready.

[1:50:16] A second.

[1:50:17] Okay.

[1:50:18] I'll entertain the motion by council member.

[1:50:21] Hilton with a second by council member Klein.

[1:50:24] To award a contract to FBD van guard construction and corporate for fiscal year 26.

[1:50:31] CDBG sidewalk and curb ramp project number 26, PW303 in the amount of 100 in amount of 176,000,

[1:50:41] $1194 in 14 cents.

[1:50:44] Including the cost of project and contingencies.

[1:50:47] Roll call please.

[1:50:49] Council member Rocco.

[1:50:51] Yes.

[1:50:52] Council member Klein.

[1:50:53] Council member Fugazzi.

[1:50:54] Yes.

[1:50:55] Council member Hilton.

[1:50:56] Council member Marks.

[1:50:57] Council member Ramirez.

[1:50:58] Yes.

[1:50:59] Mayor Bozo.

[1:51:00] Yes.

[1:51:01] Motion passes 70.

[1:51:02] Okay.

[1:51:04] Moving on to item number 7.

[1:51:07] 7.1.

[1:51:08] Introduction and first reading of an ordinance.

[1:51:11] Reading chapter 30 article 54 of the Gilroy city code relating to accessory dwelling units.

[1:51:19] Z 25 dash 0 2.

[1:51:24] Before we go to staff report, are there any expertise communications report by council?

[1:51:29] None.

[1:51:30] Okay.

[1:51:31] Take it away.

[1:51:32] Staff.

[1:51:33] Thank you, Mayor.

[1:51:34] Thank you, Director Goe and also thank Good evening, Honorable Mayor and council members.

[1:51:54] I'm Michael Fassad, I'm the Planning Manager for the City of Gilroy.

[1:51:57] I'd like to present to you the AD ordinance update for 2025.

[1:52:03] Be dwelling units and junior accessory dwelling units are residential units that can be built on lots that contain either a single family residents or a multifamily residents like an apartment building.

[1:52:14] They come in all shapes and sizes including detached attached.

[1:52:18] Bill inside the existing residents on the lower level attached to a detached garage above that detached garage or by converting and existing attached garage into an ADU.

[1:52:29] The ADUs provide a fast low impact way of adding new housing within existing neighborhoods.

[1:52:34] California has a severe housing shortage.

[1:52:37] Developing ADUs is a large part of California strategy to address the issue.

[1:52:42] As ADUs promotes sustainable development and expand affordability without large-scale new infrastructure.

[1:52:49] Every year, the state of California passes laws that promote ADU development.

[1:52:55] Local jurisdictions must adopt these laws to remain compliant with the state's housing policies while doing our best to protect residents interest as well-stated by Miss Bertie.

[1:53:06] Tonight, we will be discussing these laws with you and explain how the City of Gilroy will remain compliant with state housing policy.

[1:53:13] We will first review the state laws that impact ADU development.

[1:53:19] A stated in the staff report, recent state legislation has established new requirements for ADUs, including Senate Bill 477, Assembly Bill 2533, Senate Bill 1211 and Senate Bill 1077.

[1:53:35] Each of these bills impact ADU legislation in unique ways.

[1:53:40] To start, SB 477, re-numbered and reorganized previous legislation to, into multiple statutes, aiming to make the laws more organized.

[1:53:50] Next, AB 2533, which took effect in January of this year, was designed to help legalize and permit an ADUs.

[1:53:58] The goal of this laws to create a program for older and permitted ADUs and JDUs without homeowners facing fines, penalties, or demolition orders.

[1:54:06] The focus of this law will still be to preserve fundamental health and safety standards compared to broader building code requirements.

[1:54:14] In addition, 1211, SB 1211 allowed more ADUs on multi-family properties in streamlined ADU permitting on coastal towns.

[1:54:24] The major code updates that the city took advantage of were as follows.

[1:54:29] Government code section 65852 was a single, lengthy statute with many complex subsections and extensive details.

[1:54:37] SB 477 repealed that code section and replaced it with 33 shorter clear sections for easier use.

[1:54:45] Our current code prohibits short-term rentals in ADUs, while state law now requires de-districtions to protect those.

[1:54:53] State law doesn't allow the ADU to be sold separately, except in a special case involving a qualified non-profit organization.

[1:55:00] And the state added clarifying language to bar local governments from imposing additional design restrictions on by-right ADUs that include units of a lease, 800 square feet, and no far, and at least four feet from the side in a rear lotline.

[1:55:18] Additional zoning amendments include removing the one story limit and allowing developers to provide covered or uncovered parking spaces to meet ADU requirements.

[1:55:27] The amendments also remove exterior stairways facing public streets as a reason to deny an ADU.

[1:55:33] In multi-family zones up to 80-touch ADUs are allowed, but the actual number depends on the number of existing residential dwelling units on the property.

[1:55:42] For example, if someone owns a four-plex, they're able to build a maximum of four ADUs, one ADU-preach, one residential unit.

[1:55:52] These are state mandates, by the way.

[1:55:55] New laws added definitions and standards.

[1:55:58] For example, the definition of livable space was created.

[1:56:02] Also, language was updated in our local city code to remain consistent with ACD guidance, just for clarity, ACD stands for the California Department of Housing and Community Development.

[1:56:14] Lastly, the state laws mandated that local design standards do not prevent the construction of a by-right ADU.

[1:56:23] As with all zoning amendments, the city must find consistency with the 2040 General Plan goals and policies to recommend for approval.

[1:56:31] And staff found the amendment consistent as it supports the goal of promoting diverse housing for livable neighborhoods.

[1:56:38] Additionally, the amendment supports the housing element goals by encouraging unit production and removing regulatory barriers.

[1:56:47] At their October 16th, the Planning Commission meeting, the Planning Commission recommends city council approve the updated ADU ordinance.

[1:56:54] I have booked a 6-0 with one FC.

[1:56:57] So, in closing, staff recommends the three following items.

[1:57:01] The term of the proposed ordinance is the statutory exempt from the California Environmental Quality Act.

[1:57:07] pursuant to a Sequoagod line section 15252H, which refers to the adoption of an ordinance regarding second units in a single family or multi-family residential zoning district.

[1:57:17] By a city or county to implement the provisions, the government code section 66314 and 6633, a set forth in public resources code section 2100.17.

[1:57:32] A motion to read the ordinance by title only in way the further reading of the ordinance and to introduce the ordinance of the city council of the city of Gilroy,

[1:57:40] amending chapter 50 article 54 of the Gilroy city code relating to accessory dwelling units.

[1:57:46] This concludes to have summary of the proposed ordinance, and I'd be happy to answer any questions.

[1:57:51] Thank you.

[1:57:53] Okay, see someone up on the board here.

[1:57:55] I have council member Fugati questions.

[1:57:59] So, I remember when I was on the planning commission and we had some of this come through a couple years ago.

[1:58:05] I asked the question.

[1:58:07] What of this is mandated versus what of it is discretionary?

[1:58:12] That's coming through as changes.

[1:58:14] Can you itemize or just say, is it all mandated?

[1:58:18] Everything here is mandated.

[1:58:20] There's nothing that the city, the only non-mandated item was that happened when I believe you were on the commission,

[1:58:27] where the buy-write ADUs I was referencing typically are ages where feet.

[1:58:32] The state doesn't allow the city has limited the city has limited discretion to not allow 800 square foot ADUs.

[1:58:40] The city of Gilroy in 2023 allowed that for a thousand square foot ADUs.

[1:58:45] That's the one discretionary thing.

[1:58:47] Okay, that's the only one I recognized out of it.

[1:58:49] I just wanted to make sure I didn't miss one.

[1:58:51] The next thing is in the definition section.

[1:58:54] I didn't see anything that said what car share is.

[1:58:59] I can speak at car share.

[1:59:01] I have to put that in the definitions because it doesn't speak to it at all and it seems kind of ambiguous.

[1:59:07] We have the definition in there.

[1:59:13] Then I'll share the city council discretion.

[1:59:18] The state requires us to, if someone wants to remove a parking space because there's a car share facility allowed in their area,

[1:59:28] then the city has to approve it.

[1:59:31] The reason why it's in our city code is because typically when planners, when someone submits an ADU,

[1:59:37] we go to our city code for reference.

[1:59:39] I'm not having it in there and someone saying I'm a part of a car share program,

[1:59:44] which may not be happening in the future.

[1:59:47] I'm a part of a car share program where there's a zip car adjacent to my property.

[1:59:50] Well, that's what I'm asking.

[1:59:52] So zip car is one.

[1:59:54] If I get a share ride on a Uber, is that a car share?

[2:00:00] The dedicated car share, right, since not defined in here, though, exactly how it is.

[2:00:21] That's my understanding, agreed.

[2:00:24] Okay, so we don't need any language that says what a car share is.

[2:00:28] No, because I-

[2:00:30] Is it-

[2:00:31] Is it intended to be an ambiguous?

[2:00:33] Yes, it-

[2:00:34] I can't-

[2:00:35] How many times have they defined half mile from a transit stop?

[2:00:38] Right, so-

[2:00:39] Okay.

[2:00:41] Okay, the last question I have is, there didn't seem to be any parking requirements, and I saw one of the

[2:00:48] thing on there, too, for multi-family.

[2:00:51] So if I had a four-plex and I wanted to add four more units, first of all, I can make

[2:00:56] them any square footage I want, right, because I saw that on there.

[2:00:59] And then I don't have to have parking for it, or I do, because it didn't seem like it was laid out.

[2:01:04] Oh, parking, parking itself is based on location, not whether it's- if it's a detached ADU, and you're not within

[2:01:12] I believe a quarter mile of a bus station, you need to provide a parking space.

[2:01:18] It was a detached.

[2:01:20] So it's not-

[2:01:21] If those requirements were in the single-family section, I believe, and not in the multi-family section.

[2:01:26] We would reference the parking requirements from the single-family.

[2:01:29] Okay, because they're not.

[2:01:30] That's why I'm saying, they're not referenced in what you submitted under the multi-family portion.

[2:01:35] I see.

[2:01:36] So we might want to be more specific there, as all I'm saying.

[2:01:39] Okay.

[2:01:40] And I didn't- I didn't recall seeing that there isn't a floor space requirement in there either.

[2:01:47] I saw in your presentation that was there, but you might want to go back and-

[2:01:50] And refer to that for multi-family.

[2:01:52] No, because of floor space.

[2:01:54] Because they're- and we spoke with ACD specifically about that because they don't mandate floor space.

[2:01:59] Are you referring to size of the ADU itself?

[2:02:01] Yeah, so just as an example, right?

[2:02:03] Again, back to a floorplex, somebody has a floorplex already.

[2:02:06] They have a bunch of car ports or whatever in the back.

[2:02:09] They just tear them down and say, I'm going to build another four units back there.

[2:02:13] But although I have 700 square foot units in my main floorplex,

[2:02:18] I'd like to make these 1500 square feet a piece.

[2:02:22] They could do that.

[2:02:23] Because that is correct.

[2:02:24] Because it's different than the single family.

[2:02:25] Well, I just want to make sure the public understands that, too.

[2:02:27] Yes.

[2:02:28] Okay. That's it. Thank you.

[2:02:29] If I may, council member, if you guys-

[2:02:32] You know, this is predicated on the size of the lot.

[2:02:34] There's a number of parameters associated with the balping.

[2:02:36] Of course.

[2:02:39] Other questions?

[2:02:43] Okay.

[2:02:44] If this warrants down the road a little bit, whether or not we review and determine whether we want

[2:02:54] to try to update our current ADU ordinance.

[2:03:01] If there is anything that we can do to try to take that some control.

[2:03:07] Just food for thought.

[2:03:09] Just kind of overdo it.

[2:03:12] Yeah. Well, we're big.

[2:03:13] Yep.

[2:03:14] Because we're being mandated by this.

[2:03:16] What? We're feeling what we-

[2:03:18] We can't, we can't hear you guys. Sorry, go ahead and put your mics.

[2:03:21] All I've seen is we're doing that right now.

[2:03:23] The action you just talked about is exactly what we're doing right now.

[2:03:26] So if there's something that you want to add in there,

[2:03:28] and do it now, the floor is open to do that.

[2:03:31] Okay.

[2:03:32] That's what this is.

[2:03:34] Okay.

[2:03:35] Well, what is the requirement in terms of my understanding is they can put ADUs in the front of the home as well?

[2:03:47] Well, actually, if remember the, the buy-write ADU, if the city has to,

[2:03:58] that's kind of a tricky question.

[2:04:00] First of all, I just want to, so we have to speak it out.

[2:04:05] The city can't preclude an 800 square foot ADU that's four feet from the side and we're a lot line.

[2:04:11] We can't preclude it. So what that means is if they have the space in their front yard to build an 800 square foot ADU,

[2:04:21] they have a right to do that per stay log.

[2:04:23] And that can go all the way to the side block.

[2:04:25] That's kind of why it's a tricky question.

[2:04:27] So not if there's typically sidewalks have easements.

[2:04:30] So it doesn't mean you can build into an easement.

[2:04:32] And so what if the adjacent easement precludes that 800 square feet?

[2:04:35] That's where public health and safety kind of over rules state.

[2:04:40] Because it's a case by case that that is correct.

[2:04:42] Okay. And then that four foot is that a,

[2:04:47] from the wall or is that from the, the end of the.

[2:04:52] You've eaves.

[2:04:54] So just a reader is so just to, just to make sure I understand,

[2:04:59] is the four foot set back based on the wall of the ADU to the property line or from the eave.

[2:05:06] So it's from the typically is the wall.

[2:05:09] Okay.

[2:05:10] So the eave can go right next to an adjacent neighboring eave if you will.

[2:05:19] Well, when we reference eaves, there comes the be others standards happening.

[2:05:26] Now the eave would have to be built in a manner that would not,

[2:05:32] not only not in crouched, but also help in safety guidelines.

[2:05:36] So the idea is you can't build an eave ever just speaking apple that.

[2:05:40] Well, they can't speak to eave where it could catch on fire to affect the other property owner.

[2:05:46] It would have to be a certain material.

[2:05:48] So again, it's case by case.

[2:05:52] And that in, you know, I, that's a respect to questions that they're really case by case scenarios.

[2:05:57] The state has really shown the local jurisdictions, all of California cities and counties that they're looking to allow ADU development.

[2:06:06] So.

[2:06:07] Have councilmember.

[2:06:08] Yeah, and I just want to remind us when we say the state and the mandates.

[2:06:12] They're actually elected people just like us that we chose democratically to elect that right this legislation to get it in the signing of the law.

[2:06:20] And we have thousands of people up and down the state of California.

[2:06:23] There are advocates for stuff like this.

[2:06:25] We are advocates for stuff like this in the city of Gilroy.

[2:06:27] We actually wrote it in our housing element.

[2:06:29] It's a goal of ours.

[2:06:30] We're a part of the county collaborative that has made it easier to.

[2:06:34] You know, to build ADUs and go right around the county by doing pre-approved ADU plans.

[2:06:40] Right?

[2:06:41] We do ADU education.

[2:06:42] We're doing outreach.

[2:06:43] So, you know, I want us to take a little bit of a step back on this like.

[2:06:48] They blame it on the state type thing, you know, because they are our partners.

[2:06:52] They are elected.

[2:06:53] If we want them to come here and talk about those that they've that they've gotten past or whatever.

[2:06:58] They wouldn't, you know, let's invite them in.

[2:07:00] But so.

[2:07:01] How are we going to move forward to ensure that we comply with state law?

[2:07:05] Because I can tell you that one of the reasons why.

[2:07:07] Those.

[2:07:08] The land language was added in there.

[2:07:10] That, you know, basically the city doesn't do this process that we're doing right now.

[2:07:15] On annual basis, like a cleanup language basis.

[2:07:18] That you're, you're, you just become no-envoyed because they're not going to sit around and wait for us to enact those changes.

[2:07:24] So, what's our move besides, you know, just having internal conversations like we should get this in front of council.

[2:07:31] We should get this in front of council.

[2:07:32] Like, why are we not just doing language cleanup like every January like other jurisdictions do when I know you came from another jurisdictions.

[2:07:38] So, maybe there's a best practice over there that you can bring here.

[2:07:43] I could speak, there's a number of priorities in the city of Gilroy and there's staff that deal with a lot of these.

[2:07:50] I did, fortunately, come from another jurisdictions and what I've appreciated is the urgency that bringing this 80 ordinance up to the council at this time.

[2:08:01] I, you know, I can't speak on internal operations that had happened six or nine months ago, but I'm really excited about bringing the opportunity to answer these questions about 80 ordinances.

[2:08:11] I can't speak to what's going to happen for the future.

[2:08:13] I know we've had conversations with ACD and they seem to be happy with what we're proposing.

[2:08:19] And we're proposing the minimum standards that they're asking us to propose.

[2:08:23] And I know that actually coming from another jurisdictions, I know that the same standards that are being asked here are being asked and that previous city I was working for.

[2:08:33] So, let me go to councilmember Fugazzi.

[2:08:37] First, let me say I will blame it on the state. So I don't have a problem with that.

[2:08:41] The state of California is encroaching on many cities like Gilroy who are losing little by little all of our local control.

[2:08:50] And whenever we have an opportunity to say how we want things to be and where we have still some room to do it, we should exercise this to figure it out.

[2:09:02] And to that end, we only have to do 800 feet, right? So it could be up to the council still to change that at this point.

[2:09:11] I get that our housing element says one thing, but I just wanted to make that clear, we could change that, right?

[2:09:17] Correct, correct.

[2:09:18] Okay.

[2:09:19] What happened in 2020, three could be changed today.

[2:09:21] But 800 is the minimum.

[2:09:22] Yeah, it's the minimum, but we're doing a thousand right now.

[2:09:25] I'm not saying one way or the other, I'm just saying it.

[2:09:28] It is a place where whatever little control we have, we should make sure that we understand what that is and take any opportunity we can to keep it.

[2:09:38] I can't remember.

[2:09:39] Hold on, sorry about that.

[2:09:40] So put that back on the table.

[2:09:41] A thousand feet is what we are, what we have chosen in the past to restrict these when we can go higher.

[2:09:47] So that is our local control.

[2:09:49] But before we took this action tonight, and maybe the director can come up and talk for a quick second.

[2:09:56] Because it was me working with her office in the city attorney before we went into a budget planning session to figure out when we're going to get this back on the agenda.

[2:10:05] When we're going to be back on the work plan.

[2:10:07] Because if we want to keep that local control that we have, then we can't let this continue to lapse again.

[2:10:13] And it just be no one void, and someone could just say, you guys are not following the state law.

[2:10:18] Anyways, you have it for two years.

[2:10:20] So you're no one going to use the states, which means they could go higher.

[2:10:24] So that is exactly what I'm trying to get at is to say, this should come back every January.

[2:10:30] Whenever there's laws that are rewritten at the end of the year, bring those forward in January.

[2:10:37] So we don't lose our local control that we currently have.

[2:10:40] Does that make sense?

[2:10:43] Do you not want to bring up the director? Are you trying to like, no, I'm the director.

[2:10:48] Yeah, time, time out, time out, you know what?

[2:10:52] Okay, guys, hey, whoa, Sharon.

[2:10:56] Don't be bashful.

[2:10:59] Okay, I understand the discussion that's occurring here, and I'm going to take my part.

[2:11:05] One is, I get that if we have discretionary discretion, let's be proactive with that.

[2:11:12] Let's also be proactive in needing the state requirements.

[2:11:16] Okay, I will also say, in my short time here, that I do know staff has had to set some important things aside.

[2:11:24] In order to get more immediate things, the council would like seeing it done.

[2:11:28] So when my future, when the future CA gets here, it would be good to have that kind of discussion.

[2:11:36] Coupled with what you want to do over here with your other priorities, so that staff can really focus on the key ones and you won't get upset when they don't get one of the other ones done.

[2:11:45] But with that said, Sharon, council member, help me ask you a question.

[2:11:52] Yes.

[2:11:53] And I think the question was, Brad stated, you know, staff has had to deal with a lot of priorities.

[2:11:59] And since I've arrived, I've seen priorities keeping increasing from the state and also to meet community needs.

[2:12:06] And to balance among that and the daily operations.

[2:12:10] And we all try to prioritize our customers first too.

[2:12:13] So number of applications and prepping activity has really increased the last couple of years as well.

[2:12:19] So just balancing all of that between the state-mandated items and the core items that you've seen in our department's work plan is really large.

[2:12:26] So it's just all of these things where you know, staff did bring up data council planning commission.

[2:12:31] Then council in 2023.

[2:12:33] And just in 2024, we have several key retirements of very experienced staff.

[2:12:38] So that has just resulted in, you know, slightly late in this.

[2:12:41] But it has remained 80 update has remained in our work plan.

[2:12:44] And also we've been trying to work on another item which is actually bringing up data council on all the ADU.

[2:12:51] You can call it, you know, marketing and promotional educational activities that we've been trying to work on.

[2:12:56] And as you named, you know, we update our website, created ADU gallery.

[2:13:01] And there are more things that are in the works as well.

[2:13:03] So we'll be bringing that to council.

[2:13:05] Thank you.

[2:13:06] Council member Marks.

[2:13:08] Yes.

[2:13:09] I have to agree that council member Fagaz, I feel our neighborhoods are changing dramatically.

[2:13:13] And I don't feel we have local control any longer because the state keeps passing these new laws.

[2:13:19] And even though they are elected officials at the state level, I understand that.

[2:13:24] But when they got elected, I don't think any of us knew what was coming down the line.

[2:13:28] And with a number of cars that are increasing.

[2:13:33] And do they still does the state allow us to say that it's what 1.5 person on what the 0.5 is for a bedroom.

[2:13:42] But 1.5 per bedroom.

[2:13:45] So basically if you had a 2 bedroom ADU, it would only be 3 people per ADU.

[2:13:50] Is anyone managing that?

[2:13:52] Because it seems like there are a lot of cars that come out of a certain ADU.

[2:13:56] Not only that, but there are a lot of ADUs that are being built without proper standards.

[2:14:01] You know, when we first got involved in the ADU project, it had to look similar to the actual main house.

[2:14:07] So it was more of an attribute, not something that you're just going to go,

[2:14:10] oh my god, I can't believe my neighbor built this.

[2:14:13] And we have some of that going on right now.

[2:14:16] And when we talk about the Eves, there is a property on doubty in the alleyway that is inches.

[2:14:25] The two roof lines are inches.

[2:14:28] One roof line is inches away from the neighbors roof line.

[2:14:33] So if you talk about a fire, you bear a believe, but 1.1 ADU caught on fire.

[2:14:38] It would burn the other structure next to it.

[2:14:40] That needs to be looked at.

[2:14:42] I would like to see that we did have more local control to say what our city is going to look like in the future.

[2:14:48] Because I just feel like everything is being blown up at the moment.

[2:14:51] And 10 years from now, are we going to look at Gilbert's neighborhoods and go, oh my god, what have we done?

[2:14:57] I think we have to be a, I'm going to offer one.

[2:15:00] We need to be a little bit careful about speculating, I think there's a little bit of speculation there on, on some of the building codes and what's happening, some of the neighborhoods.

[2:15:10] If you're talking about downtown, you're right, like on Daudi Street, there are those homes in that neighborhood are zero lotlines.

[2:15:17] So that means that the piece of a wall can be and was deliberately built on the property line.

[2:15:24] So let's see careful about this.

[2:15:26] So that's legal.

[2:15:27] That is, it's been legal for for 80 years in that part of the neighborhood that's called zero lotlines. So it's not unusual. My neighbor's garage wall is on my property line.

[2:15:36] So we have to keep that in mind. So just because we drive by and see something we don't like, it doesn't mean it doesn't mean it's against, it doesn't mean it's against a law.

[2:15:42] But there are some other agencies that I could take you for a ride on that are not in downtown.

[2:15:47] No doubt if we have to be careful if there are some, you know, bad builders and bad development going on.

[2:15:55] Of course we have mechanisms for that. That doesn't mean we have to, yeah, we have to make sure those mechanisms come into play here if they're not legal for sure.

[2:16:03] I know we've come across a few because I've talked to the director about some that have been illegal.

[2:16:08] Sure.

[2:16:09] So I'm just saying we have to be vigilant of what we want our community to.

[2:16:15] Don't disagree. Yes. Council.

[2:16:19] I hope I have my voice. So Michael or Sharon.

[2:16:24] Under those building codes, we can't limit occupants like how many per bedroom we can only limit it per square footage.

[2:16:33] And that came about.

[2:16:35] I believe in then dating myself here everybody.

[2:16:39] I think it happened in the 90s. There was some case law about that.

[2:16:43] Where you can't say only people can only live in the bedrooms or sleep in bedrooms and you can't.

[2:16:52] Yeah, there was there was cases about that.

[2:16:55] But it occupants is limited by square footage not by people.

[2:17:02] We still need to go to public comments. Sharon.

[2:17:05] But yeah, I'll just be out a little bit more. Yeah, and I think there's some fair housing issues too that were raised back then.

[2:17:11] How do you find family or relationships and the people living in the bedroom or in the house?

[2:17:17] And if people want to live in an overcrowded situation, it's not for us to say can't do that.

[2:17:27] All right, let's go to public comment.

[2:17:29] I have no speakers.

[2:17:32] Okay.

[2:17:34] So Council member.

[2:17:36] I can start with the motions if you want.

[2:17:38] I think we have to do this in three separate ones, right?

[2:17:41] Correct.

[2:17:42] We do.

[2:17:43] First, we want to be motion to determine the proposed ordinance to statutory exempt from California.

[2:17:48] Environmental Quality Act.

[2:17:49] We're soon into SQL guidelines section 152-82 for the adoption of an ordinance regarding second units.

[2:17:54] And a single family or multi-family residential zone by a city or county to implement the provisions of section 6-6-314 and 6-6333 of the government code.

[2:18:03] I set forth in section 2-1080.1-7 of the public resources code.

[2:18:09] Okay, I have a motion by Council member Hilton.

[2:18:12] I'll second it.

[2:18:14] So I'll take a roll call please on that motion.

[2:18:18] Council member Bronco.

[2:18:20] Yes.

[2:18:21] Council member Klein.

[2:18:22] Yes.

[2:18:23] Council member Fogazzi. Yes.

[2:18:24] Council member Hilton.

[2:18:25] All right.

[2:18:26] Council member Mark. Yes. Council member Miras. Yes.

[2:18:28] Maribosa.

[2:18:29] Yes. Motion passes.

[2:18:32] The next one to be a motion to read the ordinance by title only a way for the readings of the ordinance.

[2:18:38] That's my motion.

[2:18:39] I have a motion by Council member Hilton.

[2:18:41] Would anyone like to second it?

[2:18:43] A second.

[2:18:44] If you have a second by Council member Klein, roll call please.

[2:18:47] I'm going to read the title of the ordinance.

[2:18:49] First, an ordinance of the city council of the city of Giora,

[2:18:52] and the Giora city code chapter 30.

[2:18:55] Zoning article 54 regarding accessory dwelling units.

[2:19:00] Council member Bronco. Yes.

[2:19:03] Council member Klein. Yes.

[2:19:04] Council member Fogazzi. Yes.

[2:19:06] Council member Hilton. Yes.

[2:19:07] Council member Mark. Yes.

[2:19:08] Council member Miras. Yes.

[2:19:09] Maribosa. Yes.

[2:19:10] Motion passes.

[2:19:12] Sevens.

[2:19:13] You want to do number three, too.

[2:19:15] Thank you.

[2:19:16] The motion to introduce the ordinance of the city council of the city of Giora,

[2:19:20] and then in chapter 30 article article L15 of the city code.

[2:19:24] Giora city code relating to accessory dwelling units.

[2:19:27] You have a motion by Council member Hilton.

[2:19:29] Second.

[2:19:30] Second by Council member Klein.

[2:19:32] Roll call please.

[2:19:33] Council member Bronco. Yes.

[2:19:35] Council member Klein. Yes.

[2:19:36] Council member Fogazzi. Yes.

[2:19:37] Council member Hilton. Yes.

[2:19:39] Council member Marks. Yes.

[2:19:40] Council member Ramirez. Yes.

[2:19:41] Maribosa. Yes.

[2:19:43] Motion passes.

[2:19:44] Sevens. Yes. Thank you.

[2:19:46] Thank you.

[2:19:48] Thank you very much moving on to item number seven point two.

[2:19:51] Consider adopting an urgency interim ordinance prohibiting the issuance of tobacco

[2:19:55] retailer permits for a period of not to exceed 45 days.

[2:20:00] Within the downtown specific plan area m 25 dash 13.

[2:20:05] So before going to staff.

[2:20:07] I'd like to know if there's any exparte communications.

[2:20:11] Okay.

[2:20:12] Staff report, please.

[2:20:14] Good evening again.

[2:20:16] I'd like to present to you a consideration of adopting an urgency

[2:20:22] interim ordinance prohibiting issuance of tobacco retail

[2:20:25] permits for a period not to exceed 45 days within the Giora

[2:20:29] downtown specific plan area.

[2:20:32] In 2014 the city adopted an ordinance requiring all tobacco

[2:20:36] retailers to obtain a tobacco retailer permit.

[2:20:42] Typically tobacco retailer permits there are obtained through

[2:20:46] grocery stores, liquor stores, convenience stores.

[2:20:49] And currently the city has 50 tobacco retailers averaging

[2:20:53] 0.9 retailers per thousand residents.

[2:20:56] But as of 2023 the city has noticed an increase in the smoke shops,

[2:21:00] which is tobacco retailer that specifically sells products and

[2:21:04] accessories for smoking and vaping and potentially flavorate tobacco.

[2:21:10] Several neighboring jurisdictions such as Morgan Hill,

[2:21:15] Hollister and unincorporate areas of Santa Clara and San Benito

[2:21:18] counties have limited the sale of flavor tobacco and vaping products

[2:21:22] particularly in smoke shops.

[2:21:24] In contrast, Giora has implemented restrictions only near schools

[2:21:28] and lacks broader policies resulting in a higher per capita

[2:21:32] concentration of tobacco retailers and other cities in the region

[2:21:35] as demonstrated within the table.

[2:21:38] The fact that the city has an over-constitution of tobacco retailers

[2:21:41] per capita and nearby cities and counties gives the city

[2:21:44] council the basis to adopt an urgency ordinance to prohibit

[2:21:47] tobacco retailers for at least 45 days.

[2:21:50] The city attorney and the community development department

[2:21:53] collaborated to bring an urgency ordinance to the city council for adoption

[2:21:56] if you see fit.

[2:21:59] This slide here is to highlight the mayor's request for council

[2:22:03] consideration the ordinance that has been drafted to prohibit

[2:22:06] tobacco retailers in the downtown area.

[2:22:08] If the ordinance is adopted, the city will have the ability to deny

[2:22:11] future business licenses for tobacco retailers for at least 45 days

[2:22:16] or December 17, 2025.

[2:22:19] Adoption will require at least six votes to pass the ordinance

[2:22:22] and it will become effective today if passed.

[2:22:26] It is staffs understanding that the concern from the community

[2:22:30] has to do more with the proliferation of smoke shops rather than tobacco

[2:22:34] retailers.

[2:22:35] Unfortunately, smoke shops are not defined in the zoning code.

[2:22:38] We consider smoke shops as general retail for zoning purposes.

[2:22:42] A stated in our staff report there seems to be a concern about the proliferation

[2:22:46] of smoke shops in the past two years so we've identified those types of

[2:22:50] shops on this map.

[2:22:51] You'll see 10 businesses on the screen.

[2:22:54] Eight of these businesses will be considered smoke shops while two of them.

[2:22:58] Discount cigarettes and cigarettes for less are mainly

[2:23:01] cigarette into tobacco resellers.

[2:23:04] The mayor's concern is not new in California.

[2:23:07] The staff notes that several other local jurisdictions have recently

[2:23:09] enacted ordinances, resolutions, and more

[2:23:12] tournaments to regulate smoke shops.

[2:23:15] These cities include Stockton, Newport Beach, Riverside,

[2:23:18] Modesto, Lahabra, Stanley Andrew, Richmond, and Santa Clarita.

[2:23:24] As I was watching the news this morning, I even found that the city of

[2:23:27] San Jose will be presenting a similar instrument ordinance tomorrow

[2:23:30] to their city council.

[2:23:32] These ordinances range from prohibiting the expansion of existing

[2:23:35] smoke shops to capping the total number permitted in the city.

[2:23:40] Emergency interim ordinances require specific legislative findings

[2:23:44] demonstrating a current and immediate threat of public health

[2:23:47] welfare and safety.

[2:23:48] We believe the proposed urgency ordinance has adequate findings,

[2:23:52] which includes data that supports the city's concerns of increased

[2:23:55] consumption, negatively impacting smoke-related illnesses,

[2:23:59] contributing to environmental pollution, visual blight, and

[2:24:03] supporting higher-use smoking rates.

[2:24:06] Furthermore, staff is found citing this California tobacco health

[2:24:09] assessment tool developed by the Stanford Prevention Research Center

[2:24:13] and the Green Info Network, a higher density of tobacco retailers

[2:24:16] in comparison to other cities in unincorporated county lands.

[2:24:22] The staff report provides alternatives that the city council does not

[2:24:25] believe an urgency instrument ordinance is warranted.

[2:24:28] Here are a list of alternatives.

[2:24:31] We can adopt the urgency ordinances erected for consideration,

[2:24:34] which would only affect the downtown area.

[2:24:37] The council can consider adopting an urgency ordinance city wide.

[2:24:41] You can direct staff to draft the non- urgency ordinance,

[2:24:44] but that would delay the city's ability to prohibit more tobacco retailers

[2:24:48] for at least 45 days if not longer, and risk new permits

[2:24:51] issued during the interim or simply take no action.

[2:24:56] The city council's decision may have financial implications,

[2:25:00] which includes staff time required to do the research and draft an ordinance.

[2:25:04] Additionally, smoke shops sell retail goods that contribute to sales tax revenues.

[2:25:09] While staff is researched, the sales tax generated by those types of shops,

[2:25:13] we have not determined the exact tax revenue loss of future retailers.

[2:25:18] Assuming the city council adopts the urgency interim ordinance,

[2:25:22] it would become effective immediately.

[2:25:24] Staff would bring the sign-in back to a later date to city council within that

[2:25:28] 45 day period, but urgency ordinances can last for up to two years

[2:25:33] that directed by council.

[2:25:35] Current tobacco retail permits or businesses with active business licenses would not be affected.

[2:25:42] So, in closing, staff recommends the city council adopt the urgency interim ordinance,

[2:25:47] establishing a temporary prohibition on the issuance or approval of any

[2:25:51] tobacco retailer permits within the downtown specific plan area,

[2:25:54] within the city of Gilroy, pursuant to government code section 658-588.

[2:25:59] And make the findings as incorporated in the reference that adoption of the ordinance is necessary

[2:26:04] for the immediate preservation of the public health safety and welfare,

[2:26:08] particularly regarding the protection of minors within the downtown specific plan area.

[2:26:13] This concludes that summary of the proposed urgency ordinance,

[2:26:17] and again, I'd be happy to answer any questions.

[2:26:19] Thank you for your time.

[2:26:25] Questions by council?

[2:26:29] I have a question.

[2:26:31] It's not a mine.

[2:26:33] Go ahead.

[2:26:35] I'll go council member, mayors.

[2:26:36] Then I'll go council member, Fragassi.

[2:26:37] Sorry, I'm not seeing them up here.

[2:26:38] Sorry, guys.

[2:26:39] I keep...

[2:26:40] Go ahead.

[2:26:41] Okay.

[2:26:42] You know,

[2:26:45] is it legal to have something on the books saying that if you are...

[2:26:52] If you have a smoke shop and you are in violation,

[2:26:57] like we've had several of them recently,

[2:27:00] in violation of what they're selling,

[2:27:03] closed down for good?

[2:27:07] How I understand the regulations that are...

[2:27:12] They have a smoke, they have a tobacco business,

[2:27:15] they have a tobacco permit,

[2:27:17] and if they're in violation of that permit can be revoked,

[2:27:21] and we have the enforcement control over that.

[2:27:24] But it doesn't have distance or it has requirements

[2:27:29] how close they can be to schools,

[2:27:31] but it doesn't have how close they can be next to another one.

[2:27:35] So we can't...

[2:27:37] We can only if they were in violation of their current tobacco permit license.

[2:27:43] That's on the books now.

[2:27:45] Thank you.

[2:27:46] As a member, Fragassi.

[2:27:49] So, ostensibly we're looking to protect kids.

[2:27:53] Is that kind of like the big part of why we're doing this?

[2:27:56] Do you think?

[2:27:58] Is that the...

[2:28:01] Is that the impetus for why this is an urgent matter?

[2:28:04] I believe so.

[2:28:08] That's...

[2:28:10] Yes, yes.

[2:28:12] Okay.

[2:28:14] So the question I have is, okay,

[2:28:16] we already have smoke shops into tobacco places,

[2:28:18] and in fact they've been in violation,

[2:28:20] and we have some that are within 1000 feet of schools already,

[2:28:24] and we have recently a bust on a bunch of these smoke shops already.

[2:28:31] How has the enforcement been so far with our current ordinance

[2:28:35] and current licensing type requirements?

[2:28:39] Has it been enforced?

[2:28:43] As of recent, for the...

[2:28:47] Okay.

[2:28:49] I'd like to ask both Sharon and Luke to come up.

[2:28:57] If I may.

[2:28:59] Sure.

[2:29:00] I mean, one of the things that I did read in ordinance is there's obviously a financial penalty

[2:29:04] if you sell to miners, right?

[2:29:06] And there are revocation elements in there.

[2:29:09] And I, of course, ask a couple of questions, one of which is

[2:29:12] there are smoke shops that are within a thousand feet of schools,

[2:29:15] and that we had a bust recently that was a coordinated thing for

[2:29:19] mushrooms and other paraphernalia or what have you.

[2:29:23] So if you can, yeah, explain to us how all of that works and how it's working

[2:29:27] in the past and if we revoked things, some of the history.

[2:29:30] Yeah.

[2:29:31] I can only share kind of the recent history because this permit slash license

[2:29:37] isn't regulated or issued by our department,

[2:29:40] but you know, because of the research on this urgency ordinance,

[2:29:43] it has come to our attention.

[2:29:44] So I've had our current enforcement team looking at their business license status.

[2:29:49] And that's how we've been finding out some of them do not have a valid business license.

[2:29:54] And as we were visiting these properties, you know, these facilities,

[2:29:59] and we noticed some...

[2:30:00] May also have illegal products for sale, and so we've also contacted our PD partners on some of those facilities.

[2:30:08] This is recently that you did this.

[2:30:09] This is recent, yes. Because the permit is not issued by our department, and it's because of this ordinance that we've been tasked to work on, that's how we became aware.

[2:30:18] For the one on the map there, you should have a bunch of them on the map, some of those that are on that map, do not have currently a license to sell tobacco products.

[2:30:27] I believe so correct.

[2:30:28] And yet we're still going to let them, we're not going to go ahead and tell them no more.

[2:30:32] You know, we have.

[2:30:33] All right, so I think there's a little confusion.

[2:30:37] I think you're getting to a point.

[2:30:39] I'm sorry, I figured you were.

[2:30:41] But there are three questions I heard.

[2:30:44] Are the ones that are currently operating legally?

[2:30:47] But she gave you information. That's why I was following up on that.

[2:30:50] Right.

[2:30:51] And then two, if they are operating, and I'm not illegally from a land use standpoint,

[2:30:56] versus a license purpose versus there,

[2:31:00] selling things out of there that are not in conformance with either.

[2:31:03] And so what I'm hearing from staff.

[2:31:06] Sorry, back up.

[2:31:08] Part of the challenge, and this has happened like with business assistance, too, is those are usually issued by finance.

[2:31:14] And they usually do not have necessarily a land use component tied to it.

[2:31:19] In our case, we do the schools, as an example, the one that you brought up.

[2:31:24] And so with the question that you raised, staff is now going back for those that were by right,

[2:31:31] did not require a land use permit, only a license through finance to double check those.

[2:31:36] So they're going to go back.

[2:31:38] Now, we'll find out shortly on that.

[2:31:41] If I understood you also, you're asking if they,

[2:31:44] we only speaking if they were in compliance with the license or with respect to the,

[2:31:50] well, the license in terms of what they're allowed to sell, where they selling other things other than what's permitted by the license.

[2:31:56] Was that one of your questions?

[2:31:57] Well, we already know that they weren't because there was a bus that happened.

[2:32:00] And that's why I absolutely can because of this different departments doing different things.

[2:32:05] And in the ordinance, it has enforcement mechanisms in there for fines and for revocation.

[2:32:12] So trying to gather and gather for the public too and understanding of how does that actually take place and hasn't been taking place.

[2:32:20] Before we start to talk about invoking another ordinance out there to,

[2:32:26] are even managing what we have correctly?

[2:32:29] I believe for the most part we are, but we do need to double check.

[2:32:33] You are correct.

[2:32:34] So the, so for instance, and maybe Captain Powell can comment on this with that bus that happened,

[2:32:40] would that not then engage a revocation or suspension or anything else if somebody's license to sell tobacco products under this license thing?

[2:32:51] Yes, you are correct.

[2:32:53] So with the cases you're talking about specifically, we did locate items that were not legal to sell.

[2:33:00] We seized all of those products, we submitted the cases in the district attorney's office with prosecution.

[2:33:05] They declined to prosecute on this particular case.

[2:33:10] So then yes, so we are currently working with the district attorney's office to do follow cases and ensure that we do get prosecution on any future.

[2:33:19] That's prosecution.

[2:33:20] That's different from us licensing and permits engaging and basically saying, hey, you did something that's against your licensing.

[2:33:26] We now want to rip away your, your license.

[2:33:30] So who's responsible for that part in the city?

[2:33:34] I, I do not know that.

[2:33:36] No, we know that that is finance because they issue the license.

[2:33:40] But there's a process that I'm not familiar with because I'm new relative to what steps you have to take.

[2:33:47] I believe that's in the license correct.

[2:33:49] Arjo.

[2:33:50] Here we have an administrative policy for the publication of business license.

[2:33:56] That's correct.

[2:33:57] The existing code does allow us to do so.

[2:33:59] If a department were to conduct enforcement and as a result, the recommendation is to revoke the permit.

[2:34:05] Finance department would work with our legal to drop that notice and issue.

[2:34:09] And then you have and then there'll be a hearing in front of the finance director or his or her design, which then can be a.

[2:34:17] And that's.

[2:34:20] And that's through our administrative hearing policy, not our admin sites, but our administrative hearing that's built into our business license chapter.

[2:34:31] I think it's three or the tobacco within the within the same chapter tobacco retail permits has its own application and own process outlined for hearing and all that such things.

[2:34:43] Yes.

[2:34:44] So so we can retroactively go and still do this, right?

[2:34:47] Absolutely.

[2:34:48] Okay.

[2:34:49] So I'm going to be talked about obviously after this meeting and we kind of raised something to your attention and what not, but it it speaks to why I'm I'm very leary of doing anything new at this point.

[2:35:00] And and as well as some of the concerns that are on here that I see or around blight and other things like that.

[2:35:09] Those are concerns, but those are concerns for lots of businesses, those are concerns for alcohol selling businesses, alcohol selling businesses sell sweet drinks to kid, you know, looking at kids, they could sell the kids.

[2:35:18] We have to all the same concerns.

[2:35:20] So I just think we need to be very careful how much more new stuff we put in place when we can't actually.

[2:35:26] Work with the stuff we have.

[2:35:28] Thank you.

[2:35:29] Let me go to councilmember help.

[2:35:30] I'm supportive of this ordinance.

[2:35:31] I just want to put that on the table.

[2:35:33] But that's breaking news to me that we have the ability to be able to revoke someone's license and that was never brought to this council.

[2:35:41] That to me that is that.

[2:35:43] That hurts.

[2:35:44] That hurts this community.

[2:35:45] That hurts this community that showed up.

[2:35:47] That hurts my office that worked hard behind the scenes with our advocates that are paying attention tonight to this meeting right now.

[2:35:54] That we had the chance to revoke for those smoke shops and nobody seems to go, well, I didn't bring it up.

[2:36:02] Did you bring it up?

[2:36:03] You bring it.

[2:36:04] That bothers me.

[2:36:05] So I'll stop with that and I'll just say whatever happened in the past happened in the past.

[2:36:08] Before we finish this conversation because I know mayor, you want to get back to dealing with this.

[2:36:13] I would like to get some clarification from staff as to what that process is to bring up the revocation of those four smoke shops.

[2:36:19] Whether it's a fair memo from us or whether you feel the pressure tonight from a few council members.

[2:36:23] I understand that you need to bring this up and that should have been brought to our attention.

[2:36:29] Well, just for the I think the council for bringing this to my attention.

[2:36:35] I feel no pressure.

[2:36:36] I feel the need to bring the information back in one manner or another, but we will research it and let you know.

[2:36:43] And I think we need to compare the revocation under the business license section from the specific tobacco retail or permit revocations.

[2:36:52] There's two avenues.

[2:36:55] Yeah, and I do want to say sorry to belaborate mayor.

[2:36:59] I do want to say that I have run into this in other communities when you have a land use section and you have a license section.

[2:37:07] And you have a law enforcement section and each are responsible for implementing a different portion.

[2:37:14] So council member Fugazzi and I've had a couple conversations this regard on some other matters, so we will take a look at that.

[2:37:22] Council member remorse.

[2:37:24] So I have a different approach than council member Fugazzi.

[2:37:29] I feel that I'm grateful that the staff is now going to move forward and looking at how to replicate these business licenses.

[2:37:40] But I think that in the interim given these circumstances that there seems to be some confusion, you know, the right hand not knowing what the left hand is doing and getting that resolved.

[2:37:56] I would advocate for an emergency.

[2:38:03] What is the word in the emergency or emergency ordinance city wide not just downtown.

[2:38:13] Okay, for the comments questions for staff.

[2:38:16] I have a comment.

[2:38:18] Okay.

[2:38:19] Thank you.

[2:38:20] All right, yes, I am definitely in support of this interim downtown ordinance, this emergency ordinance.

[2:38:29] I think I feel like council member Hilton.

[2:38:31] I am shocked that we could revoke those licenses and we never did it.

[2:38:35] I know council member Fugazzi says, well, we should have read the ordinance, but we can't read everything.

[2:38:40] We don't know what's out there.

[2:38:42] And we're busy.

[2:38:43] We should be told these things.

[2:38:44] If you know it's happening, it should come before the council to say, do you want to say this?

[2:38:49] Because how much harm has been done and if they've done it once, are they doing it right now?

[2:38:55] And then to hear that they weren't one was not even prosecuted.

[2:38:58] That's just, that's unforgivable.

[2:39:01] I think to protect our youth, we just can't have them.

[2:39:06] And I agree with you, city wide is what I would prefer to, but if it's not, if we can't do that tonight,

[2:39:16] I think it's more important to get something going on this emergency ordinance to get it started.

[2:39:24] And then let's staff come up with a new ordinance.

[2:39:27] I don't care how many ordinances we have.

[2:39:30] It doesn't matter.

[2:39:31] We are looking at safety here and health.

[2:39:34] We can always turn it into a city wide.

[2:39:37] I think once they started the option.

[2:39:39] Yes.

[2:39:40] I was.

[2:39:41] The option is to do it city wide.

[2:39:43] Right.

[2:39:44] That was one of the options.

[2:39:45] So there are challenges that come with city wide.

[2:39:47] Maybe we can talk about that after public comment.

[2:39:50] Ashley Castillo followed by.

[2:39:54] Saul Gonzalez Gary Walton and then Ron Kirkish.

[2:40:18] Hello, my name is Ashley and tonight I'm here.

[2:40:21] Can I made a ask that we please only any more smoke shops open up in Gilroy.

[2:40:25] I understand that these smoke shops do bring a lot of more business and a lot more tax money,

[2:40:30] but I'm really concerned because they don't really just attract adults.

[2:40:33] They also catch the attention of younger people like me.

[2:40:36] There are already a few smoke shops in town and one of the most popular ones I've seen right now is near middle school and near preschool.

[2:40:43] And I don't think that's right for kids to be exposed to something like this.

[2:40:47] When I was when I did community service for middle school a girl was overdosed, which thankfully she's well and she's alive.

[2:40:55] But the result of this is that she got it from her boyfriend, which he got it from an adult that sold him substance from smoke shop.

[2:41:02] One of one possible solution could be if a smoke shop is opened up.

[2:41:08] They should be mandated to post reminders and signs.

[2:41:11] On inside their shops about risks about smoking and a clear reminder that customers to not smell or like give like vapes to any minors.

[2:41:21] And there should be some sort of consequence if smoke shops advertise smoking and make it like visible for kids to see.

[2:41:27] Thank you for your time in listening.

[2:41:29] I really hope you consider using your position to help make Gilroy a more family and youth friendly place.

[2:41:35] Thank you.

[2:41:41] Hello, good evening. When I'm not just my name is Saul Gonzalez and now I'm the director of Youth Health Services. Here I got us.

[2:41:47] I'm here to obviously speak in favor of this ordinance.

[2:41:51] We definitely need to at least get the process started while we investigate and you know put our ducks and row.

[2:41:58] For sure, when it comes down to the real issue here is that these smoke shops are selling illegal illicit synthetic marijuana Delta 8 products.

[2:42:08] And so what's happening is that these products are being purchased without any one kind of his tax one and two they're being purchased because there is no specific quality control for these.

[2:42:19] So some of these products be 300 to 100% THC which is a direct derivative from the head plant which is differently regulated from marijuana right so the regulations in the government state that marijuana is on supposed to be the flower and the belief.

[2:42:35] And that leaves room for all these synthetic illegal products to get to the market and get hit our kids.

[2:42:42] And so a bag of little hot cheetos or a bag of trolls or a bag of, where is it?

[2:42:48] Flintstone cereal pebbles could be laced could be with high component THC components which can again.

[2:42:59] We're going on a different back in the 80s 90s we now have to worry about overdose.

[2:43:02] When it came down to cannabis because teach levels were super slow or super low.

[2:43:06] Use me now that the plant has been modified and has been strands have been.

[2:43:12] Regulated or increased the potency has also increased.

[2:43:15] So that is the biggest issue here.

[2:43:17] So I definitely agree with you Mrs. Kelly Ramirez.

[2:43:20] I appreciate the fact that you mentioned that this needs to be a city white ordinance and I'm here to let you know that we are off for it.

[2:43:26] We need to protect our youth or right across from the youth center we have a.

[2:43:31] Gas station that converted into a smoke shop which is around Brown now school and so we need to keep these away from our schools away from our youth.

[2:43:38] I'm not telling you I'm not saying stop the the products or the permits.

[2:43:44] But we consider keeping those away from youth populated areas.

[2:43:49] I'm not familiar. Thank you.

[2:43:53] Gary please.

[2:43:58] So I encourage you to adopt this emergency ordinance tonight.

[2:44:03] I think it's important for a number of reasons.

[2:44:06] You know when I look this up and realize that we have potentially nine smoke shops not including what's in liquor stores and everything else.

[2:44:14] I think one of the things that was left out of the staff report is not just tobacco.

[2:44:19] It's drug paraphernalia and who are they marketing that too.

[2:44:25] You know I think if we care about our kids I mean you know we have to come nine smoke shops.

[2:44:33] That's a lot either either we have to admit we have a huge drug problem or we need to admit that we don't need nine smoke shops one of the other.

[2:44:42] And so Modesto just just passed and that was mentioned the staff report they just just passed an ordinance this September.

[2:44:50] And there's a mandatory permit that all smoke shops exist a new must obtain a specific smoke shop permit issued by the police department.

[2:45:00] There's a permit fee. There's a cap on new shops. One per twenty five thousand. Why don't we do the same thing? There's location restrictions. I was the chair of the specific plan downtown. From 2002 to 2025, if smoke shops were a thing back then, vaping wasn't, we would have said no. Because if you look at what we prohibited, and what we wanted, we wanted restaurants, entertainment,

[2:45:30] and other things that brought families downtown. What we didn't want, the things that we did prohibit was massage parlors, pawn shops, and it's a third one anyway, it was, I think it was one but there was another one. I think we need to make a decision, particularly downtown, what kind of downtown we want. If we want those kind of uses, then it's not going to be family oriented.

[2:45:59] And so regardless of what happens, citywide, I'd recommend that they're not allowed downtown at all. So thank you.

[2:46:09] Thank you.

[2:46:10] Ron.

[2:46:12] Thank you, Kim. Thank you, Mayor Council.

[2:46:16] Well, mushrooms. Mushrooms are illegal. Aren't there criminal penalties?

[2:46:25] They go along with somebody cut, selling, but yet Rosen doesn't want to prosecute.

[2:46:32] I'm going to tell you right now, DA Rosen is the most dangerous person in the county of Santa Clara.

[2:46:42] Every month, since 1921, a minimum of people have died of drug overdose.

[2:46:53] That's a minimum, and the reason why is because he's not prosecuting drug crimes. He refuses to do it.

[2:47:01] And in this case, he's doing it again, right, Luke?

[2:47:04] We've got to do something about this guy, okay?

[2:47:08] I would hope that the mayor, city manager, our police department, and our council would get together, compose a letter to Mr. Rosen, and tell him to stop being delinquent, derelict.

[2:47:22] Get on the ball, do his job, because our kids' lives depend on it, and he's not doing it.

[2:47:28] I very, really hope that you will strongly consider this. Thank you.

[2:47:32] Thank you.

[2:47:33] I'm no further speakers.

[2:47:34] Okay, before Council will come, I'm just going to go to Jolie, really quick on some comments.

[2:47:39] Yes, if we go citywide, we'll need to bring this ordinance back and make sure that it's consistent if we go citywide,

[2:47:48] and we don't have any glitches with it.

[2:47:51] I did meet and confer with Sharon, and I was wondering if we needed to take it back to plan and commission,

[2:47:57] and we decided, no, this could be a change, and we could just reintroduce it at the next meeting.

[2:48:03] If you want citywide, if we get that direction, and it will have to come back.

[2:48:08] So then what you're saying is, then doing an immediate emergency ordinance for just the downtown is a good first step.

[2:48:17] And maybe in the future going citywide, is that what you're saying?

[2:48:23] You could adopt this urgency ordinance for just downtown tonight, and it's effective immediately.

[2:48:29] We'll report back in 45 days.

[2:48:32] I'm at a notice public hearing to extend it or not, but if you want to go citywide, we'll have to come back with a new urgency.

[2:48:41] And we will lose our urgency on this downtown one immediately.

[2:48:46] Right, okay. So that makes sense.

[2:48:49] So at what point can we bring it citywide?

[2:48:54] It seems to me that this would be a council initiated item.

[2:48:58] So I'll comment on that too, because the number of the action we took in our August is to get into all the ingredients,

[2:49:04] everything that people talks about tonight to update that ordinance.

[2:49:07] That's already in the process right now.

[2:49:09] So I would say that if you wanted to do the citywide thing, or any of that other stuff,

[2:49:13] to work through the city administrator, to add that later.

[2:49:18] Language, yeah, add that language on there.

[2:49:20] And all the languages being captured tonight is going to be, it's staff is listening to it.

[2:49:24] I know I'm listening to it. This is an agenda item that I had that I've been working on for a long time.

[2:49:28] And we hear all those and we'll be able to get into those, you know, those details.

[2:49:33] But this at least this 45 day period will put a good pause on that to allow us to do that deeper work, right?

[2:49:40] To get that done, but I expect that that's almost finished, but as you can see, there's all new cities are coming up with new ways.

[2:49:45] And that was the reason why we decided to wait a little bit.

[2:49:49] We were going to bring that back earlier, but if we waited a little bit, we get to capture all this great work that other cities are doing.

[2:49:55] And the grant funding was not being canceled in December.

[2:49:58] It was we left up until like June, so we had time on that on that end too.

[2:50:05] That sounds good.

[2:50:07] Yeah, I'm ready to make a motion.

[2:50:10] Okay, then.

[2:50:11] I agree with that.

[2:50:13] Okay.

[2:50:14] So I make a motion that we approve this emergency or I'm not waiting.

[2:50:21] I'm not waiting.

[2:50:22] I'll help you off in a line.

[2:50:24] So I have a motion by council of remarks and the second by council member Klein to wave further readings and adopt an urgency in term ordinance establishing a temporary provision on the issuance of approval of any new tobacco retailer permits within the downtown specific plan area.

[2:50:38] Within the city of yore pursuant to government code section six five eight five eight and make findings as incorporated in the ordinance that adoption of this ordinance is necessary for the immediate preservation of the public health safety and welfare.

[2:50:53] Particularly regarding the protection of minors within the downtown specific plan area.

[2:50:59] We'll call please.

[2:51:01] Do we have a second.

[2:51:03] Council member Klein.

[2:51:05] Sorry.

[2:51:07] I'm going to read the title.

[2:51:08] Okay.

[2:51:09] And an urgency interim ordinance of the city of yore prohibiting the issuance of tobacco retailer permits for a period not to exceed 45 days within the yore downtown specific plan area.

[2:51:20] Council number.

[2:51:21] Yes.

[2:51:22] Council member Klein.

[2:51:23] Yes.

[2:51:24] Council member Fugazzi.

[2:51:25] Yes.

[2:51:26] Council member Hilton.

[2:51:27] Council member Marks.

[2:51:28] Yes.

[2:51:29] Council member Ramirez.

[2:51:30] Yes.

[2:51:32] Yes.

[2:51:36] All right.

[2:51:37] Moving on to item number eight.

[2:51:39] Introduction of new business update on downtown plywood store for an ordinance and downtown vacancy ordinance proposal.

[2:51:48] Staff report.

[2:51:49] Please.

[2:51:51] All right.

[2:51:52] Good evening.

[2:51:53] Mayor council members and members.

[2:51:55] The committee.

[2:51:56] Nice to ask providing an analysis and research of the proposals of the downtown.

[2:52:01] And plywood removals of committee and vacancy ordinance of committee.

[2:52:06] For background in 2023, the city council established the downtown committee to focus on economically enhancing and revitalizing downtown Goroi.

[2:52:16] From its inception, the committee identified plywood covering some vacant storefronts and long-term vacant buildings as major visual and economic deterrence.

[2:52:26] These elements harm the downtown image and economic activity.

[2:52:30] To address these challenges, the downtown committee formed two specialized subcommittees.

[2:52:35] One is the plywood removal subcommittee that's tasked with developing strategies and regulations to minimize or eliminate and silvery plywood covering some vacant storefronts.

[2:52:47] The other is the vacancy ordinance subcommittee that's focused on addressing prolonged vacancies in downtown buildings through new regulations and incentives to promote occupancy.

[2:52:58] So subsequently, these two items were added to our community volume departments work plan.

[2:53:04] Updates the city council staff noted that these items fell under the discretionary category, which are city initiatives for the public good that are typically council or community driven and not mandated or core services.

[2:53:16] Staff estimated June 2025 has the completion time having to balance all priorities, daily operations and stay mandated and core items against limited staffing resources.

[2:53:28] In spring 2025, during the budget and work plan development process, we've experienced some staffing changes, and this was at the same time that Goroi Connect, which is the secret fixed performance being launched, so this requires staff to defer these items to this fiscal year.

[2:53:45] So in tonight's report, staff is going to analyze the downtown subcommittees proposals and evaluate the potential to improve downtown and also sharing some benefits and challenges.

[2:53:57] The city regulations pertaining to vacant commercial space downtown, there are containing city co-chapter 5D, but this ordinance expired back when the seismic safety ordinance expired in December 2026.

[2:54:17] Here are some of the key provisions proposed by the subcommittee.

[2:54:22] Enforcement actions, calling enforcement will issue notices to property owners when a building has been vacant for 90 consecutive days.

[2:54:30] Permissible window coverings, displays of art or other cultural historical educational values will be permitted.

[2:54:38] All artworks must be respectful and appropriate for all ages ensuring that the decorations contribute positively to downtown environment.

[2:54:48] Prohibited window coverings, the use of drywall, plastic, plain paper, or other raw coverings will be prohibited.

[2:54:56] Why would use? The use of bear plywood for up to 90 days is allowed. After this 90 day period, the plywood must be covered with one of the permitted coverings.

[2:55:06] A $500 fine per month will be imposed for failure to decorate the plywood after 90 days.

[2:55:14] Empowering plywood frontage must be removed after one year. A fine of $250 per month will be imposed for failure to remove temporary plywood frontage after the allowed time.

[2:55:27] For fine collection, vice-ma mia system property tax bill, that's what's being proposed by the subcommittee.

[2:55:35] That'll streamline the collection process increase compliance rates.

[2:55:41] Staff also evaluated this from a feasibility perspective, and here are some of the benefits that we see.

[2:55:48] Specific enforcement actions will provide enforcement with clear guidelines explicitly stating that the notices will be issued after 90 consecutive days.

[2:55:58] Out of vacancy will provide a defined actionable starting point.

[2:56:04] Improved aesthetic standards and visual cohesion, the proposed amendments introduced critical distinctions for permissible versus prohibited window coverings, and that's also going to help staff ensure higher minimum standards for visual quality.

[2:56:21] The direct regulation of plywood use, which the expired ordinance did not address, this is going to allow staff to have a direct ways to enforce this, and by allowing plywood for only up to 90 days, then requiring to be covered.

[2:56:37] The city takes a major tack was this major source of blight, directly.

[2:56:43] And the $500 per month fine creates a strong financial incentive for problems to compliance.

[2:56:49] Encouraging permanent solutions, the one year limit on temporary plywood frontage is crucial for encouraging permanent solutions in the $250 per month fine for no removal reinforces the push for long-term improvements.

[2:57:05] If I define collection, the method which the city collects the fines will be carefully crafted in coordination with city attorney's office to confirm the current state law.

[2:57:14] And we don't want to mention this AB632 that was a bill that was proposed earlier this year that would amend a government co-section to allow city to establish a procedure to collect administrative fines and penalties by a recorded link upon upon the parcel of land on which the violation occurred.

[2:57:33] AB632 was passed by the state senate and the state assembly, but it was vetoed by the governor the day before the deadline.

[2:57:42] He expressed concerns about expanding local authority to place links on private property, and he wanted to balance the due process rights of property owners with the local governments authority.

[2:57:57] So staff's recommendation is to reactivate the former ordinance and incorporate the proposed amendments into the former ordinance.

[2:58:12] Regarding the vacancy store fund, over vacancy ordinance subcommittees proposal, the subcommittee identified a present need for more comprehensive strategy to address vacant buildings throughout downtown.

[2:58:27] To inform the recommendations, the subcommittee looked at several other jurisdictions ordinances.

[2:58:34] And these are kind of detailed in the staff report, but I'll mention just a few here fair field operates a vibrant vacancy program that emphasis transforming vacant commercial downtown store funds through window dressings are and paintings.

[2:58:49] The program requires registration of vacant properties within 10 days of vacancy with a $500 annual fee.

[2:58:58] Sacramento California has a vacant buildings and structures, chapter addressing properties vacant for more than 45 days for commercial properties or 10 days for residential properties.

[2:59:11] Their ordinance focused on securing properties from trespassers and removing blight.

[2:59:16] As of September 2025, vacant buildings and store funds are not included in the mandatory registration ordinance.

[2:59:23] And there are addressed on the complaint basis.

[2:59:26] However, we know Sacramento is exploring a vacancy tax to encourage development of about 3,600 vacant parcels.

[2:59:34] Palm Springs requires vacant commercial properties defined as 35% or more on unoccupied to be registered within 10 days.

[2:59:43] San Francisco has implemented a commercial vacancy tax, which applies to spaces vacant for more than 182 days.

[2:59:52] The tax rates escalate based on frontage and duration of vacancy starting at $250 per legal foot of front.

[3:00:00] For the first year. San Francisco has also imposed a try to impose a residential vacancy tax, but litigation

[3:00:09] was filed by property owners. The San Francisco Superior Court held that the vacancy tax, the residential

[3:00:16] vacancy tax, violated the takings clause of the fifth amendment of the U.S. Constitution by compelling

[3:00:23] property owners to rent their properties against their will. And this decision is still currently under

[3:00:28] a appeal. In Oakland, California, as another example, there

[3:00:35] measured W. The vacant property tax imposes an annual tax of $3,000 to $6,000 on properties

[3:00:43] in use less than 50 days in a calendar year. Their tax varies by property type, $6,000 for residential

[3:00:51] or non-residential parcels, and $3,000 for a condominium units, or vacant ground floor commercial

[3:00:57] parcels. And, Berkeley is another one we found that's kind of similar to San Francisco,

[3:01:02] dying post-acid, residential vacancy tax that are vacant for more than 182 days per year.

[3:01:12] And here are some key provisions proposed by the subcommittee.

[3:01:16] Monitoring registration, building owners registered the vacant properties within 10 days of vacancy,

[3:01:23] sitting inspections upon registration the city was spec the building to assess co-compliance.

[3:01:30] In forced renovations, owners must comfy necessary renovations to meet co-requirements before

[3:01:35] re-occupancy. Failure to register, $150 per week fine will be assessed for buildings not registered

[3:01:43] after the tenth day of vacancy. Annual monitoring fee of $1,500 is required upon registration.

[3:01:50] Vacancy tax of an annual $6,000 will be an assessment on the property tax for buildings that remain

[3:01:57] vacant for longer than 60 days. The subcommittee also proposed a building report card,

[3:02:04] where contact information for the owner and the vacancy date will be posted in the window,

[3:02:12] along with any co-compliance items. The subcommittee also proposed some potential exemptions

[3:02:19] for example exempting buildings from the vacancy ordinance of delays or due to pending

[3:02:25] power restoration from PGE or if there's active construction going on or in active lease or sale.

[3:02:37] A staff has also evaluated for some benefits versus challenges. Here are some of the benefits.

[3:02:43] Financial penalties incentivize property owners to avoid prolonged vacancies.

[3:02:48] Monitoring inspections and required renovations in survey can properties

[3:02:52] meet safety and building codes reducing risks for the public and emergency services.

[3:02:59] The building report card publicly displays owner information in co-status,

[3:03:04] fostering community awareness and encouraging pump issue resolution.

[3:03:10] Compiling owners to reactivate vacant spaces can stimulate economic activity, increase foot traffic,

[3:03:16] and support local businesses. Inclusion of exemptions for legitimate circumstances,

[3:03:23] such as active marketing, ongoing construction, personal hardships,

[3:03:27] demonstrate reasonable approach targeting neglect rather than avoidable delays,

[3:03:33] unavoidable delays. We also identified some challenges. The combined $1,500 annual monitoring fee

[3:03:42] and the potential futures $6,000 annual vacancy tax. For prolonged vacancies,

[3:03:47] represents a significant financial commitment. Risk of unintended outcomes,

[3:03:55] high penalties might, in some extreme cases, lead to property abandonment or distressed sales,

[3:04:01] rather than a desired investment improvement, potentially exacerbating the existing problem

[3:04:06] if it's not carefully managed. The proposal also increase the majority of demands,

[3:04:12] implementing and overseeing a citywide comprehensive ordinance will require

[3:04:16] notable administrative resources for registration, inspections, fee collection,

[3:04:22] and managing the various exemptions. This could necessitate additional and dedicated staffing.

[3:04:28] And there's also some potential for legal challenges. We just mentioned that San Francisco

[3:04:33] case earlier, and also I want to mention this bill, SB 789, that was proposed earlier this year.

[3:04:41] This bill would require a commercial real property owner to register with the California Department

[3:04:47] of Tax and Fee Administration and annually file an information return to report specified

[3:04:53] vacancy information. And this property will be subject to lay an unfiled subject,

[3:05:01] lay an unfiled returns to a penalty of $100 per commercial property.

[3:05:07] But this bill, SB 789, was held in committee, and it may become a two-year bill,

[3:05:12] so staff will continue to monitor this in the next several months.

[3:05:19] Scope of, oh sorry, just back to the legal challenges. So all these uncertainties suggest that

[3:05:26] the city should wait until the legal considerations are just more fully developed.

[3:05:34] A scope of exemptions, despite the provided exemptions, some property owners may argue that the

[3:05:40] criteria or durations are too restrictive or too complex or for prolonged situations.

[3:05:48] Maintaining positive community relations, if not clearly communicated and implemented with the

[3:05:54] supportive approach, the owners could be perceived as punitive rather than a tool for community improvement,

[3:06:00] and potentially straining relationships with certain segments of the property owner community.

[3:06:08] So here's a map of our team survey of the core downtown area. Our core enforcement team surveyed

[3:06:14] the downtown, actually, in the winter time, and then we updated that in the spring, and just most recently

[3:06:20] we updated data again, and this just gives you a snapshot kind of an idea of the magnitude of the

[3:06:26] vacancy issues, and this is just the core downtown area, and Council could define the boundary

[3:06:32] for the ordinance. But just coming to the downtown core area, we've identified about 23 vacant properties,

[3:06:39] and three with plywood store fund.

[3:06:42] As mentioned earlier, implementing and effectively managing a new

[3:06:53] vacant building registration program, along with ongoing monitoring, inspections, and the enforcement

[3:06:59] of boarded up store funds will require dedicated staffing resources to ensure the program's success.

[3:07:05] As the community of all department and enforcement function has been expanding the range and scope

[3:07:10] of its programs or roles and responsibilities, staff will return to Council within overall

[3:07:15] evaluation of code enforcement staff and resource needs during a budget update.

[3:07:21] So here's a summary and the next steps. Based on the goals and proposals of the downtown

[3:07:27] committee and the city council, staff is providing analysis and research tonight, and staff

[3:07:32] analysis shows that the merits of pursuing an update and expansion of the former ordinance

[3:07:38] as an effective way to significantly enhance downtown economic vitality.

[3:07:44] However, staff does not recommend a vacancy tax at this time because of the San Francisco

[3:07:50] case we just mentioned, and also the SB 789 that we just talked about.

[3:07:56] And this approach addresses the vacant properties while mitigating legal risks.

[3:08:02] As for next steps, staff will proceed with implementation of any Council direction

[3:08:08] received, if Council directions for staff to update strength and revive the expired

[3:08:13] ordinance without a vacancy tax, staff will explore the level and structure of registration and

[3:08:19] monitoring fees, conduct community engagement to gather stakeholder input and develop ordinance

[3:08:25] amendments. As the co-inforcement team is still in the process of completing the recruitment of another

[3:08:31] vacant position and also training new team members, staff estimate bringing the ordinance to Council

[3:08:37] in the first quarter of 2026. Once adopted, the new ordinance will require ongoing staff resources

[3:08:44] to ensure effective implementation and management. As I mentioned, staff will return to council

[3:08:50] with an overall evaluation of co-inforcement staff and resource needs during the budget update.

[3:08:59] So here's staff recommendations for Council to receive the update from staff tonight and

[3:09:03] direct staff to update, strengthen and revive, the expired, go to a city co-chopter 5D

[3:09:10] without a vacancy tax at this time. And I want to take this opportunity to thank our supervising

[3:09:15] co-inforcement officer Tony and our building of the show, Yipelito, for all of their research on the

[3:09:20] side. Thank you. Thank you, Chair. Questions? Questions okay? Yeah. Okay, open the floor to questions.

[3:09:30] I'll go to councilmember Marks first and then councilmember remorse. Okay, I'm going to talk

[3:09:37] about this from the downtown committee's point of view. I was the chair and when we divided up into groups,

[3:09:44] I was the person in charge of the subcommittee that did apply with removal. We had six buildings

[3:09:54] that were boarded up with plywood and it was for numerous years, five plus years. And there was no

[3:10:00] movement whatsoever to get any of it removed. And some of the building in business owners felt if we were

[3:10:07] going to make a dent into this vacancy ordinance, we had to improve the look of downtown. And so

[3:10:15] when we got this plywood removal ordinance proposed ordinance on the books and the owners

[3:10:24] began hearing about it. All of a sudden, 74, 11 and 74, 15 have their plywood down. They finished their

[3:10:33] storefronts. 74, 55, which was the Gilbert dispatch was the longest one who had their plywood up,

[3:10:40] but it came down eventually. 75, 33 was the old Mfaldis building and 75, 39. Also was that

[3:10:47] Mfaldis, the labor split into two. The front began to be done doors were put in and that building became

[3:10:54] very, it's a beautiful building as of right now. On the opposite side of the street, across from the

[3:11:00] on exchange, 73, 20 had their plywood up for years. It wasn't helping anything. And I don't know if they were

[3:11:07] concerned about being charged attacks that made them all get in and start working to improve

[3:11:13] the appearance of downtown, but it worked. When we had the URMs and the people were fined,

[3:11:21] they just waited for the council, a new council to come in and they had all their fines forgiven.

[3:11:26] And nothing really was moved with those empty buildings. That's why we are proposing so hard

[3:11:32] for attacks on the property tax bill to say hey folks, this council has said and even the last

[3:11:39] one in 2022, which got this project going, said economic development was our top priority,

[3:11:46] but you can't have top priority if you have a downtown that looks like we have it.

[3:11:53] If you look up and down the street, you do not see a vibrant downtown with people walking everywhere,

[3:11:59] because we have too many empty buildings. In fact, I'm really impressed right now because you came

[3:12:04] up a lot more empty buildings than what I did. And I'm like oh my god. I have to, I really, Brad,

[3:12:13] I really have to thank you because we talked about constantly getting this back.

[3:12:20] plywood removal and the vacancy building ordinance was completed in January of 2004.

[3:12:27] And look where we are November of 25 that we finally got it on. The previous administration

[3:12:33] would not put it on. There were no subsequent updates like the staff report said. Any update that

[3:12:41] came through, it was a battle to get it on. It was supposed to be reported to us in June of 2025

[3:12:49] and tonight we're doing it in November. I don't believe there's no financial burdens to the property owners.

[3:12:55] They bought the buildings. They wanted to redo the storefronts. There's no reason why they stayed

[3:13:03] vacant and would apply with for so long to give you some ideas of what I'm talking about. The

[3:13:08] default is building Jose Montes 15 years. It has been vacant. But sales building, 19 years,

[3:13:15] it's been vacant. Halls building, 18 years, Sammy was building 16 years. We're not talking two to three

[3:13:23] years to penalize these people. We are talking years and years and years and there's always excuses

[3:13:30] why they can't get it done. Well, the excuses have to stop if we're going to get economic development

[3:13:37] in this downtown. Additional staffing? I think once building owners began to see that the city of

[3:13:46] Gloria is really serious about what they want to do. Tony, you're going to be sitting at your desk

[3:13:51] doing nothing because they're all going to come on board and say, hey, this city has gotten really

[3:13:57] serious about this. They don't want their city with plywood. They don't want the buildings to be left

[3:14:03] unoccupied. Now, we know our kind of my subcommittee knew that maybe there were going to be some problems

[3:14:10] with getting a storefront put in within 90 days. We would go ahead and give permission for them to

[3:14:19] go a little bit longer or maybe it was going to take a year. That's when you put up a mural after six

[3:14:26] months to make that play would look really good. Dave L was on my subcommittee. He modeled it with his

[3:14:34] bowling alley. If you remember, he hired a mural list within the first 30 days to paint a mural. Dave

[3:14:39] L took his bowling alley down two studs and had that bowling alley functioning in a year and a half.

[3:14:47] Not 18 years and still studs in the building. Things are going to have to change. So I do want to see a penalty on the

[3:15:00] I want to punish a person who might have had a building and no one wants to come and lease it. No, I do not want to punish that person because that person is actively looking and maybe there's been a turn in the economy.

[3:15:16] I want to make the people that sit there with these buildings and say, hey, not my problem. Oh, well, I actually had a building owner.

[3:15:25] And Gary, with your permission, I'm not even asking your permission. I'm going to tell him what we're doing.

[3:15:29] He came up with a project and he and I are working on it and we're making some success.

[3:15:34] We are going to every building owner and we are talking to him or her.

[3:15:40] And we're basically saying, you get this building going or you sell it because we're tired of the empty building.

[3:15:48] And it's starting to work. We're getting some movement. We are on to them for their dirty storefronts because some of the buildings that are vacant, they're filthy.

[3:15:57] There are cobwebs, the windows are all staying but tape, they're dirty. We're saying clean your building. This is your property. You're in downtown Gilroy.

[3:16:05] Enough is enough.

[3:16:07] Dionne is the chair of the vacant building ordinance. I told him I'd like him to talk right after me.

[3:16:15] So go ahead and then the rest of the council.

[3:16:17] Okay. Well, council member Ramirez is next year already chimed in. So then I'll go to broadcast.

[3:16:21] Okay.

[3:16:22] Go ahead.

[3:16:23] Oh, you know, if he had maybe he, you know, Carol actually answered one of my question in her commentary.

[3:16:30] So I'm willing to wait until after.

[3:16:33] Okay, because you might have more once you hear from Dionne about it.

[3:16:36] So you want to pass the council member Braco?

[3:16:38] As long as you've come back to me. Yeah.

[3:16:40] Okay. Council member Braco.

[3:16:43] Well, I was open to Andy would be here.

[3:16:48] I was really surprised to find out that where this was that because our last city administrator set right there and told us it's at the attorney's office.

[3:17:02] They're reviewing it and that was untrue and our attorney didn't say a word about it.

[3:17:08] So that that bothers me.

[3:17:11] But when we took this on, there was three of us and we took a couple cities each and we had zoom calls with them.

[3:17:25] I talked to mine was open.

[3:17:28] I talked to the city attorney and the public works director.

[3:17:33] And that nothing but praise for the way that our program is going.

[3:17:38] It's citywide.

[3:17:39] And that's what we were proposing citywide.

[3:17:42] Because an abandoned building on Monterey Street is the same thing as an abandoned building on first street.

[3:17:48] So to have it citywide and it would make it more feasible.

[3:17:52] And there's supports itself and a lot more.

[3:17:57] But to see that they want to go back to the witness the way it was before it didn't work.

[3:18:09] Nobody paid their fines.

[3:18:11] They just let them ride and then they would come to the council.

[3:18:15] Oh, I got it sold if you forgive these fines and every council always forgave the fines.

[3:18:20] So it was a joke.

[3:18:22] So if we're going to be serious about this, I think we should move forward and put it on the ballot.

[3:18:31] The Sanford Cisco thing, it's not even apples to apples.

[3:18:35] It's a residential properties and this is something else.

[3:18:41] And I don't think we really want to listen to Sanford Cisco.

[3:18:46] I go more with the Oakland, Sacramento, Fairfield.

[3:18:50] They're not having any problems.

[3:18:52] So I think we should move forward with it.

[3:18:55] If not, I wouldn't want to see us start with the old ordinance again.

[3:19:03] Just let it go the way it is and call it.

[3:19:07] Wait, it's man.

[3:19:10] I don't remember.

[3:19:11] So what a couple of the questions have been answered.

[3:19:15] I wanted to know how long most of the buildings had been vacant.

[3:19:18] And I heard 15 years, 19 years, 18 years.

[3:19:21] So we're talking decades, not much.

[3:19:24] And one of the things I wanted to clarify with Sharon, you spoke to Leon in terms of the San Francisco case.

[3:19:35] This court case is residential, not commercial, correct.

[3:19:38] Correct.

[3:19:39] Okay.

[3:19:40] And it's important.

[3:19:41] You know, city attorney's office that recommended that the city doesn't enact.

[3:19:45] If they can see ordinance at this time.

[3:19:47] Okay.

[3:19:48] And then the other thing is why are the buildings.

[3:19:53] Carol, you talked about, you know, well, they always have all these.

[3:19:57] I mean, what are a couple of the excuses or reasons or whatever that these buildings have.

[3:20:04] Well, it's really very interesting.

[3:20:06] Sharon and I were laughing just earlier this evening.

[3:20:09] PG&E seems to be the biggest excuse.

[3:20:12] And then on one of the buildings.

[3:20:16] We found out that this particular man who's been looking for.

[3:20:21] Oh, not, what's the word?

[3:20:24] It's, oh, I can't think.

[3:20:27] It's, it's for his power.

[3:20:29] He got permission in August of 2024 that he could start the trenching.

[3:20:34] And he never has since.

[3:20:36] Okay.

[3:20:37] So there's excuses.

[3:20:39] They're all excuses.

[3:20:40] You know, the PG&E is not holding up things for 15, 19.

[3:20:44] No, they are not.

[3:20:45] That they're not that slow.

[3:20:47] They're not that slow.

[3:20:48] Okay.

[3:20:49] So.

[3:20:50] And then.

[3:20:54] You know, you've been here for a while and there have been situations where we've tried to get things going downtown.

[3:21:03] And there's been more of a carrot type of thing within incentives.

[3:21:07] Have they worked?

[3:21:08] Have they not worked?

[3:21:11] You know, would it be worth looking at more of an incentive rather than.

[3:21:19] You know, the penalties.

[3:21:22] I don't think so.

[3:21:23] I mean, we've tried everything that you could think of.

[3:21:28] And.

[3:21:29] With really poor results.

[3:21:32] Okay.

[3:21:33] Are you, are you talking about URMs?

[3:21:35] I was talking about the URMs.

[3:21:36] And then, you know, incentives that were given for a while for buildings to be built.

[3:21:42] A number of buildings were built.

[3:21:44] We know we didn't weigh fees, but we set the impact fees to zero, not weigh them.

[3:21:51] We did.

[3:21:52] We tried doing penalties.

[3:21:54] We tried doing administrative citations.

[3:21:57] Then we switched to the carrot, not the stick.

[3:22:00] I can't remember how many times because I worked on those ordinance.

[3:22:04] Okay.

[3:22:05] And then we would always have a sunset clause.

[3:22:08] And then we'd have to amend the ordinance.

[3:22:10] So then I think the final rounds of the ordinance, the URM ordinances.

[3:22:14] I said that the sunset clause could be set by resolution in the future because it was always a moving.

[3:22:20] Target.

[3:22:21] But yeah, we did try.

[3:22:23] We tried the stick.

[3:22:24] We tried the carrot.

[3:22:27] And it is.

[3:22:28] And one didn't prove more effective than the other.

[3:22:31] Okay.

[3:22:32] So I, you know, I agree with Councilmember Baracko.

[3:22:38] You know, a number of these cities have.

[3:22:43] Opportunities.

[3:22:44] I think that we can implement here.

[3:22:47] Sacramento was one that that I liked opened, you know, if you feel confident.

[3:22:53] But I, I think that nothing has changed because nothing has changed.

[3:23:00] And so if we don't do something, then we're to expect things after 15, 18, 19 years.

[3:23:09] I don't think I think it's going to change.

[3:23:12] Okay.

[3:23:13] I'm going to go to Councilmember Fugazzi.

[3:23:14] Then we'll try to get into public comment.

[3:23:16] So I have a question for legal.

[3:23:19] With the situation in San Francisco, can you have any kind of.

[3:23:24] Of an opinion on if they were to rule that it was a constitutionality issue with them.

[3:23:31] It was on residential as opposed to commercial.

[3:23:34] That's question one.

[3:23:35] And the second question is let's say that they do rule it as not constitutional.

[3:23:40] And they have to roll it back and it does apply to commercial.

[3:23:43] And these other cities.

[3:23:45] What would likely be the recourse in that, for instance, for people who had already had to pay fines.

[3:23:51] And all these things with the cities have to give them back.

[3:23:54] Possibly.

[3:23:56] If it was illegally collected acts, they would try to look for refunds.

[3:24:00] Or there might be someone trying to come in and the big thing with these and taxes now are these class actions.

[3:24:08] So everybody that can, you know, would want some sort of refund.

[3:24:12] Yeah, I don't think if it was declared unconstitutional, people would just say, oh, I don't want my money back.

[3:24:22] So these other cities, I mean they would have huge liabilities in if they've been doing this for some time.

[3:24:27] They could, yes.

[3:24:28] Okay.

[3:24:29] And as far as a comment on this, I think I saw 60 days on there was that correction.

[3:24:38] Yes, from the proposal from the subcommittee.

[3:24:41] Yeah, I will be safe from my point of view.

[3:24:44] That is way too short.

[3:24:46] It does not give time for anything.

[3:24:49] And I don't think it necessarily is indicative of somebody who is,

[3:24:53] Who is derelict in trying to do whatever it is they're trying to do.

[3:24:58] When you get out to where your nine months or a year or 18 months.

[3:25:03] Well then there's another clear situation that you're, you maybe are not making an attempt.

[3:25:09] The, I generally don't like those taxes at all, but there's is an impetus to,

[3:25:14] If you're more active in trying to get your property either sold or rented if there is something like this.

[3:25:20] And I am in agreement with, with Council Member Baracko as well, that I would not have it be just in downtown.

[3:25:28] I would say for commercial property, not industrial and other things like that as much,

[3:25:33] but then commercial property where you have storefronts where you need to have an active property.

[3:25:38] If you have an active business or visual, like assemblants of a, of a business in the city,

[3:25:45] it makes a ton of sense.

[3:25:46] Let's all go.

[3:25:47] Okay.

[3:25:48] I like to answer one part of your question.

[3:25:50] Okay.

[3:25:51] Council Member Marks.

[3:25:52] Can we just go to public comment?

[3:25:53] Okay.

[3:25:54] And then you address that.

[3:25:55] Okay.

[3:25:56] Thank you.

[3:25:57] Thank you.

[3:25:58] Gary Walton.

[3:26:00] I agree.

[3:26:01] Gary Walton's next.

[3:26:02] And then Maria.

[3:26:03] Oh, look by you, Maria.

[3:26:09] So I'm going to preface my comments tonight and give all due respect to the committee

[3:26:23] and the council members that served on it.

[3:26:25] But I got a little different take on this.

[3:26:28] So when I listen to this tonight, the staff report, I want, wow.

[3:26:34] You know, this is what happens when we focus on deficits, not possibilities.

[3:26:41] When I shared the 2005 downtown specific plan, it was an aspirational plan, a vision for what downtown

[3:26:49] Giroi could become.

[3:26:50] We didn't achieve everything we hoped for largely because we lacked an implementation budget, a clear timeline, and accountability.

[3:26:59] But where we did succeed, it was because a city partner with the private sector and incentivize the kind of growth the planned envisioned.

[3:27:09] During those partnership years, private investors put more than $30 million into new mixed use projects downtown.

[3:27:16] That's what happens when a vision meets collaboration.

[3:27:20] Then in 2006, the city adopted an extremely stringent URM ordinance, stricter than most cities.

[3:27:26] Instead of building on that spirit of collaboration, the approach started with the blame and fear, accusing property owners of not caring about safety.

[3:27:35] The result, 15 years of pain, frustration, and slow progress.

[3:27:40] Only when the city and property owners began meeting, listing, and working together did we finally move forward.

[3:27:48] That experience taught me something vital.

[3:27:51] When we united around problems, we divide ourselves.

[3:27:54] When we focus only on what's broken, we lose sight of what's possible.

[3:27:59] I speak from experience, I have over, I just counted this up, I have 96 tenants in my downtown buildings.

[3:28:06] I don't own 96 buildings, but I have multiple tenants in buildings.

[3:28:10] I know firsthand what it takes not only to attract new tenants, but more importantly, how to choose them wisely and support them so they thrive.

[3:28:19] That's what builds momentum downtown, relationships, mentorships, and mutual success.

[3:28:25] Author Peter Block said, quote, we cannot solve problems by focusing on them, we can only move forward through the achievement of something aspirational.

[3:28:35] That's our opportunity today to reframe our efforts not around fixing anyone, but about creating a downtown that's vibrant, safe and welcoming for everyone.

[3:28:45] Residents, workers, visitors, and yes, the property owners who've invested their lives here.

[3:28:51] Our future depends on what we choose to create, not what we choose to avoid.

[3:28:55] When we choose possibility, we choose partnership.

[3:28:59] And when we choose partnership, we create progress that lasts.

[3:29:03] Let's move forward together and not out of frustration, but out of faith in what you or it can be.

[3:29:09] Thank you.

[3:29:10] Thank you.

[3:29:14] Maria.

[3:29:19] Thank you.

[3:29:20] So for those business owners that are not going to sell, and there are many that don't want to rent them.

[3:29:26] I want to my buddies right around the corner from me rented a building. He had to do all the costs renovated.

[3:29:34] Thousands of dollars.

[3:29:36] So there are going to be bill owners that are not going to rent them because they're fuzzy, or they just don't want to rent them out.

[3:29:44] Can we propose to them to maybe they buy the plywood, and maybe through the art salions.

[3:29:52] We can have some artists.

[3:29:54] Do some of the paintings on there.

[3:29:56] I mean, at least they would be something more cost.

[3:30:00] Madam, just empty? Just an idea. Thank you. Ron, please. Thank you again. You know, many years ago now, Gary and I spoke

[3:30:13] about my wife was actually in the hospital at O'Connor Hospital. It was very Christmas season. And

[3:30:21] Santana Roe was all decorated up for Christmas. It was beautiful. And I called Gary up. I said,

[3:30:28] Gary, this is awesome. And he goes, Ron, that's what we should have in Gilrow. I believe that's

[3:30:34] kind of what you said, Gary. And it still sticks to my mind. What if we had a Santana Roe

[3:30:44] downtown? If you go to Santana Roe, it's always busy. People live on the top. And then they do their

[3:30:51] business at the row. They go to the restaurants, there's stuff like that. Can we reconfigure

[3:30:58] what we have downtown and make it into something like Santana Roe that is pleasurable and attractive?

[3:31:06] And people will like to go down there. Thank you. Thank you. Have no further speakers. Okay. Now, we'll

[3:31:14] go back to Councilman Marks. Okay. Well, I'm going to address Maria in our proposed ordinance reply

[3:31:19] with removal. We found that the existing ordinance that the city of Gilrow has said that all

[3:31:25] they can build these had to have something in their windows, pictures, murals, whatever. So if nothing

[3:31:31] less, it'd be really nice to go back and enforce that part of it. Councilman Roe Fogazzi, if you, you might

[3:31:40] have missed. But when we were giving our little summaries, we would never penalize a building owner who was

[3:31:48] working steady on his or her building or actively looking for potential businesses to come in.

[3:31:58] What we have encountered and what the committee encountered were people that just said no. And

[3:32:08] one of our speakers is absolutely correct. Some of the building owners have told potential people

[3:32:15] who wanted to lease the building that they would not do any of the improvements. It had to be

[3:32:19] the leasey, so to speak. And not too many people are going to put that kind of money into someone else's building.

[3:32:26] There's a lot of issues downtown that we need to break through. That's it. I'm done.

[3:32:34] Yeah. Thank you. Council members, thank you very much for the thank you. But it wouldn't be

[3:32:40] here tonight if it wasn't for Sharon and her staff putting it together and working very hard with

[3:32:45] all the projects they have. A couple of points. I'm going to turn it back over to Sharon.

[3:32:52] There's a lot of details that still have to be worked out. And I think what I asked Sharon to put this up

[3:32:58] because for tonight, we just, not just we want to know if you want to go forward because if you look at

[3:33:04] here mandatory registration, the point is do you want mandatory registration? We can work out the

[3:33:11] number of days and vacancy later. We can have that discussion. So I would recommend that when they

[3:33:16] draft the ordinance, they come back. If you direct them to go do it, come back in a steady session,

[3:33:21] then you can really roll up your sleeves and start talking about what do you think is reasonable in terms

[3:33:26] of the number of days. Not with standing. Part of the reason for the detail and the presentation was the

[3:33:32] fact that the staff wanted to do justice to the amount of work that the committees that put into

[3:33:38] this to really show the different issues they came up with. So I think there was still time when the

[3:33:45] draft ordinance comes back to have more detailed and discussion regarding just what the fees are

[3:33:52] if they are or whatever. Notwithstanding the vacancy tax. The vacancy tax is a critical issue that who do need

[3:33:58] to give direction on tonight if you want to have staff working on that. But before I do that,

[3:34:03] I'll ask Sharon to go back to her steps on this that I was starting to reference. So go ahead, Sharon.

[3:34:12] Yes, thank you, Brad. So if council's direction for staff tonight, let me just jump to the

[3:34:17] recommendation. It's to receive this update from staff and direct staff to revive the expired ordinance,

[3:34:23] update it and strengthen it without vacancy tax. Then the bullet points without the blue colors,

[3:34:31] those are all of our next steps. We'll be exploring the level and structure of the fees and we'll be engaging

[3:34:37] with the community of the stakeholder input as Gary mentioned and then we'll be developing the new ordinance

[3:34:44] and then bring that council. And that's where all those details you saw, the proposals from the subcommittee,

[3:34:49] I'm going backward now. Now these are the key provisions from the vacancy ordinance of committee.

[3:34:55] And then going backward, this is the plywood removal of subcommittee proposals. All of these details will

[3:35:01] be discussed with council. Councilmember Fragazzi and then Brockham. In addition to that, Sharon,

[3:35:10] if it's possible when you come back to understand the staff overhead with other, each of these options,

[3:35:17] you know, I understand councilmember marks comments regarding, well, if people are actively doing this,

[3:35:25] and every there's a morass of details in all of this in order to not only ascertain those things,

[3:35:33] but to regulate and to how do you objectify all of these different things. And so to understand what the

[3:35:40] overhead or cost is to these, I think puts the perspective on it, because everybody can make a wishlist

[3:35:46] of everything they want, but there's the other side of that. And we know that already, as you mentioned,

[3:35:52] prior with the code compliance and we have a temporary code compliously, we have to come back to that.

[3:35:59] For just the things that we all that we have that we've put in place and we add more. So knowing that would be

[3:36:04] really helpful, I think, as you come back. Councilmember Buckham. Yes, I think we need to keep in mind that

[3:36:14] if we're going to go the route of putting it on the tax bill, that's got to be on the 2026 election.

[3:36:24] So we need to move on that. And this thing about San Francisco, you know, if you're going to worry

[3:36:32] about getting sued all the time, you're not going to drive anywhere, you're not going to walk across the street,

[3:36:37] because all of us can be sued at any time for anything. And we know that in the city. We've been sued over and over again.

[3:36:44] So, yeah, I don't think that's something that we should hold this up just because of that. So, thank you.

[3:36:56] He comments on the left. I have a question. Can you go back to the other slide that you had up

[3:37:00] with other blue? I'm sorry there. So one of the challenges that I have with all of these key provisions

[3:37:11] is none of them, they're all enforcement. I don't see very much, am I missing something about partnership

[3:37:19] and working with the business owners? Now, what I've heard here tonight is from some pump folks is,

[3:37:24] oh, we've done that in the past. It doesn't work. Well, this is a new council and this is a new day.

[3:37:29] And I'm not ready to rely on the past on how we move forward. And so what I'm struggling with is,

[3:37:34] I don't see anything about partnership and incentives and things like that. So, if we move forward,

[3:37:40] can you go back now, Sharon, to council's recommendation? Can you talk a little bit more about this?

[3:37:50] So, if we move forward, I did you hear you say something about stakeholders?

[3:37:56] What is that? Yeah. Yeah. So, if we did give you guidance to move forward to come back with something else

[3:38:03] and something stronger, how much that includes you think stakeholder input and partnerships?

[3:38:09] Well, we'll be conducting stakeholder engagement events for sure. Just to let them note,

[3:38:17] this is what staff is working on, you know, based on council direction and just to hear their input.

[3:38:23] And depends on the outcome of that. Some items could be no partnerships or more collect something more

[3:38:28] collaborative. Collaborative versus just, you know, finding some penalty type of approach.

[3:38:33] Yeah. So, I think you know, remains to be seeing, but I think based on the past history here,

[3:38:39] or even just in the few years I've been here, there's been some things that have been pretty collaborative

[3:38:44] with the downtown property owners and business owners and with council members and just other community members as well.

[3:38:51] Sure. It could bear. If it's the wish of the council kind of building on which you said,

[3:38:59] staff may have to monitor these community engagement efforts. And if at some point they start seeing

[3:39:06] other suggestions, other ideas or stuff before completing the order that you may need to come back for an update or

[3:39:12] with the council to present some of those of what they're hearing or might be the need to do that. Does that make sense?

[3:39:17] Yeah. But so, but where go ahead council member or mayor?

[3:39:23] So, I just want to make sure that we're, you know, moving at a speed that doesn't push this down the road

[3:39:29] for a couple more years. If it does come to the point where we decide we want to put it on the ballot.

[3:39:35] You know, is that realistic in terms of workload? You know, I mean, my understanding is we would have to buy spring

[3:39:46] make a decision whether it's going to go on the ballot or not. So, is they talked about coming back and

[3:39:52] quarter one, I believe, with yes. And that was assuming, you know, staff is, council is going to give the

[3:39:59] direction to proceed with developing the orders without the vacancy tax, because that's the

[3:40:03] recommendation of the city attorney's office. So, if you were to make no decision tonight to go ahead and

[3:40:10] start working on the vacancy tax, we'll have to circle back with city attorney's office to see,

[3:40:15] you know, what additional research will work that may involve versus, if I may, mayor, what staff is not

[3:40:22] factored in the spring date with what the city attorney may or may not be able to work on. They haven't asked.

[3:40:29] Well, so based on that, for the rest of council, I'm going to need some guidance from the rest of

[3:40:32] council, because personally, I'm not interested in the $6,000 vacancy tax. So, anybody on council,

[3:40:37] really wants to push this go ahead. I would like to see, you know, I don't want us to,

[3:40:44] that took to me as my last resort, right? But I don't want to miss the deadline of getting it on the time.

[3:40:50] If we can't, you know, if the stakeholders come together and if we cannot find something collaborative

[3:40:56] and something that we're all comfortable, that there is going to be a change in downtown,

[3:41:05] I want to be able to then get that on the ballot. I agree with you, Greg. I think, you know,

[3:41:12] let's, let's try to do this new council, but then if we look at past history, I don't want to disregard

[3:41:18] that in that this has happened, these conversations have taken place. So, I, I'm trying to determine

[3:41:26] whether there can be some kind of a balance in that trying first to bring everybody to the table and

[3:41:32] come up with something so we don't have to go the path of the tax. But if we can't get there,

[3:41:38] then let's not wait until 28 to get it. And I don't know whether that's feasible or not. That's, that's my

[3:41:45] question is, is that feasible either at this point? I don't remember Barack. Well, why don't you just

[3:41:52] propose having a subcommittee, you and the mayor, you guys could meet with all these property owners,

[3:41:58] and formulate your own opinion of how you want to move forward. I don't think we need a subcommittee for that.

[3:42:07] We can go meet, we can build our relationships on our own and personally I'm not interested in being on

[3:42:12] subcommittee like that. No, but I would like to have an opportunity to have stakeholders together

[3:42:17] at the table at one time type of thing, you know. But moving, you know, the question is, is it feasible

[3:42:25] that we can move quickly enough to do that? Have those conversations to the point where we can

[3:42:31] answer to in whether that's the route we go or are we at a dead end? Are we at a stalemate? And we

[3:42:40] need to move forward with the task. I'm not going to make light of the task because this is all,

[3:42:47] that's all new to me. I've not been involved in that before. My personal feeling is you want to get moving

[3:42:54] on the ordinance. Tax are no tax. You want to start building the bones of this, get it up,

[3:43:00] speed, get these things to find, start meeting with the community. I'm not saying ignore it, but

[3:43:07] if for some reason things don't quite come together and right now we're relying on Sharon and

[3:43:12] everything else she's working on or staff in terms of determining what she can do, that's why I'm asking.

[3:43:17] Well, and she's trying to feel long. What I'm hearing in Sharon, correct me if I'm wrong, you're just

[3:43:23] not sure whether or not the city of attorney's office and in all fairness they have to sit down, look at

[3:43:28] their own workload, can meet that time frame, correct? Is that what you're saying? Yes, and since

[3:43:35] I'm not doing a vacancy taxes, they're recommendation. I think I'll have to defer to them on what,

[3:43:42] what they feel comfortable in creating. Advice you what you're saying, okay, so essentially the advice

[3:43:49] of your city attorney is don't go there and I'm paraphrasing. It's advice, don't go there and make

[3:43:56] I'm sorry, if I may. They're giving you their legal advice. You can ask them to take another look at,

[3:44:05] I mean that's your choice, if you wish. Does that tell someone forgot? Yeah, I think, you know,

[3:44:11] and all or nothing kind of strategy is not a good strategy. I mean there's a lot of good here that

[3:44:17] comes with what Sharon has recommended here and a separate track to amend it at a later time

[3:44:26] is certainly another possibility to add this other vacancy component. As we see more things that come out

[3:44:32] of the legal side, other cities, how they do it, and we can come back to that portion of it and at the same time

[3:44:40] be working with the community and working with businesses and what not to see how we can

[3:44:45] still try to revive this. And at the same time on top of that, we have an economic development

[3:44:51] department that we're trying to stick together. So why are we going to preclude exactly how that

[3:44:56] person in that department would want to put that thing together. So I, you know,

[3:45:00] You know, I think getting community development moving forward on this as they've recommended is a great first step and we should then see what might be next or what might be necessary next with the vacancy part.

[3:45:13] The tax.

[3:45:14] And if I may mirror staff will follow up with the city attorney's office and we'll have a discussion regarding the status of that.

[3:45:20] And how it can be potentially blended in, but I, I have to agree with councilmember for guys, let's get this started.

[3:45:26] So at least you have something in the works.

[3:45:28] And staff here is that we don't, if there's a chance we really want to have this option of the vacancy tax if need be.

[3:45:36] The sounds like the goal is that we don't need it.

[3:45:39] That's the goal.

[3:45:40] All right, so everyone seems to agree, yeah, that's the goal.

[3:45:43] I think.

[3:45:44] So okay, so we need to thumbs up basically on the proposed, proposed direction by staff is to receive the update from staff and direct staff.

[3:45:53] Pardon?

[3:45:54] With additional consideration.

[3:45:56] Okay.

[3:45:57] Okay.

[3:45:58] To staff to be at strength and revive and expiry, go a city code chapter.

[3:46:02] By the vacant commercial space in the downtown historic and downtown expansion district without the vacancy tax at this time.

[3:46:09] But with additional consideration at some point, sometimes you and if need be.

[3:46:13] Thumbs up.

[3:46:14] Anybody?

[3:46:15] Okay.

[3:46:16] I would remove although fit into this because that also.

[3:46:20] Sharon, this is just the vacant commercial space.

[3:46:24] What about plywood removal?

[3:46:25] No, that's included.

[3:46:26] It's all together.

[3:46:27] All in there.

[3:46:28] Okay.

[3:46:29] Okay.

[3:46:30] Looks like we have approval.

[3:46:31] Thank you very much.

[3:46:32] Thank you.

[3:46:33] That's just the current title of this chapter.

[3:46:35] We'll create a new one.

[3:46:36] Okay.

[3:46:37] Thank you.

[3:46:38] Moving on to city of Minnesota.

[3:46:39] Future council initiative and agenda items none.

[3:46:42] City of Minnesota's report.

[3:46:44] No report.

[3:46:45] Okay.

[3:46:46] Item number 12.

[3:46:47] Moving into closed session.

[3:46:48] Okay.

[3:46:49] Thank you all.

[3:46:50] And I need to read from the OGO based on the advice in your legal council on emotion and vote and open session to assert the attorney client privilege.

[3:47:04] To confirm with or to receive advice from its legal counsel regarding pending litigation when the discussions and open session.

[3:47:13] Concerning those matters would likely or an unavoidably prejudiced position of the city in loan litigation.

[3:47:21] And so you need to vote on going into the closed session.

[3:47:43] Thank you.

[3:48:13] Thank you.

[3:48:43] Thank you.

[3:49:13] Thank you.

City Council Meeting

Agenda

Transcript