City of Gilroy City Council Meeting | May 4, 2026 | 6:00 PM

The City of Gilroy City Council held a meeting on May 4, 2026, which included significant procurement and budget discussions. The council approved awarding three three-year on-call contracts for encampment cleanup services to FS Global Solutions, San Jose Conservation Corps, and Landscape Maintenance America, with a not-to-exceed amount of $750,000 each over five years. The contracts aim to augment city staff efforts in cleaning homeless encampments, with an initial budget allocation of $50,000 for the current fiscal year and $100,000 for the next. The council also received detailed reports on the city's homeless assistance efforts, including updates on the Quality of Life Officer program and regional partnerships addressing homelessness. Additionally, the council approved the Community Development Block Grant (CDBG) annual action plan for 2026-2027, allocating approximately $384,000 to nonprofit organizations. A measure to increase the transient occupancy tax (TOT) from 9% to an initial rate of 11%, not to exceed 13%, was placed on the November 2026 ballot following council approval. Discussions on tobacco retailer permits included potential adoption of a 500-foot buffer zone between retailers and schools or youth centers, centralizing enforcement under the police department, and considerations for stricter penalties for illegal sales. The council also reviewed campaign finance laws related to district-based elections, with plans to gather comparative data from other cities before making changes. Motions related to these procurement and budget items were passed with majority votes, reflecting the council's focus on addressing homelessness, public health, and fiscal management.