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Gilroy Unified reviews joint-use pacts with city, trustees weigh costs after AB 503 changes
Summary
District staff summarized multi-decade joint-use agreements with the City of Gilroy and warned that increased community use raises maintenance, insurance and operating costs; trustees noted the city's budget constraints and AB 503's new allowance to charge users for proportional wear-and-tear.
District facilities staff delivered an informational briefing to the board summarizing existing joint-use agreements with the City of Gilroy and explaining the legal and fiscal context.
The presenter outlined the Civic Center Act (Education Code) and recounted historical agreements in which the city contributed toward specific facilities (for example, a gym contribution of about $3.3 million and a $4.3 million contribution toward Christopher High School's aquatic center). Many of these agreements assign weekday school access to the district and weeknight/weekend access to the city, and several contracts run for multiple decades.
Staff warned trustees that heavy public use accelerates maintenance and replacement schedules and increases insurance and liability costs. "Utilization will follow the cost of maintenance, security, safety and legal liability," the presenter said, noting that pool operation at both high schools costs roughly half a million dollars annually and that premium insurance totals exceed $1 million.
Trustees raised the practical challenge of expiring agreements and asked whether the city has capacity to increase cost-sharing, pointing to municipal budget constraints discussed in recent city meetings. Trustee comments noted prior attempts to seek city contributions for major projects; staff said the city historically declined when asked, citing limited funds.
Trustee Pesano flagged new state legislation (AB 503) that took effect Oct. 1, restoring districts' ability to include a proportionate share of facility maintenance and repair costs in fees charged to users. That change, trustees said, creates an opening to rebalance cost-sharing but also will require review of policy and fee schedules to balance public access with fiscal responsibility.
Board members asked staff to continue discussions with city officials, bring clear cost estimates for maintenance and cleanup per facility, and ensure community-use rates are transparent. Staff said the district uses Facilitron for reservations and has separate nonprofit, youth and for-profit rates; some nonprofit youth rates are substantially discounted but may not cover wear-and-tear for high-cost assets such as stadiums and pools.
What happens next: Staff will provide follow-up cost estimates and policy options for fee schedules, identify expiring agreements for negotiation, and prepare information for a future joint meeting with city officials.
