Gilroy council presses CMAP for audits, opts to renegotiate contract with local oversight
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Summary
City staff told council that Community Media Access Partnership failed to deliver key financial reports and audits; CMAP’s executive director said the nonprofit is rebuilding and asked for time. Council directed staff to negotiate a restructured, accountability‑focused agreement that keeps services local and requires progress checks.
Gilroy city staff told the City Council on Nov. 3 that the Community Media Access Partnership (CMAP) has not met several contract requirements, including submitting 2023 and 2024 financial statements and an independent audit, and has not completed a required fourth‑year performance review.
The staff presentation said CMAP was formed in 2001 to operate the community media center and manage PEG (public, educational and government) channels. Under the current five‑year agreement that began Jan. 1, 2021, the city remits PEG fees to CMAP and requires annual reports, year‑end financials, an equipment replacement plan and periodic independent audits. Finance staff said Gilroy’s average annual contribution to CMAP has been about $252,000 — roughly $65,000 in franchise fees and $187,000 in PEG fees — and that missing reports create potential exposure for the city.
"All of these items are required by the contract," a city presenter said, noting the city issued a letter of noncompliance in April 2025 and that certain deliverables remain uncured. The city paused some funding earlier in 2025 while seeking those records, staff said.
CMAP Executive Director Mike Sanchez, who started in February 2024, defended the nonprofit’s recent work and said the organization has been reorganizing to restore programming, training and community access. Sanchez acknowledged past operational problems but said the organization has made progress: "We have insurance, and I'm happy to provide anything that you want as far as policies and proof," he said.
Sanchez asked council for a chance to finish outstanding audits, complete year‑end reviews and continue community programming, offering alternatives that include an extension with quarterly accountability checks or a short renewal tied to stricter reporting.
Council members pressed on details including whether municipal representatives retained voting rights on CMAP’s board after recent bylaw changes. Sanchez said the bylaws removed municipal voting rights and reclassified municipal reps as "strategic partners and advisors," citing conflict‑of‑interest concerns in boards that oversee public funds.
Public commenters — including parents, nonprofit leaders and CMAP board members — urged the council to keep the contract local because CMAP provides youth training, local jobs and downtown arts programming. A CMAP board treasurer said tax returns and bank statements exist for earlier years and that an audit is underway.
Council members debated three staff options: renew a restructured contract with CMAP, transition services to internal city management, or run an RFP/hybrid approach. Several councilors favored keeping CMAP local but with stronger contractual accountability. Mayor Greg Bozzo summarized council sentiment and asked staff to begin negotiating a restructured agreement that preserves CMAP’s local role while ensuring compliance and reporting; staff agreed to return with progress updates and recommended accountability checkpoints.
Next steps: staff will begin negotiations with CMAP on a restructured scope and reporting schedule and report progress to council. The current contract expires at the end of 2025, and any new agreement will need to address the outstanding audits and proof of compliance before future funding is resumed.