Agenda packet — Morgan Hill City Council, January 28, 2022

Annual City Council Goal Setting Workshop Agenda
City Council
Rich Constantine - Mayor
Gino Borgioli - Mayor Pro Tem
John McKay - Council Member
Yvonne Martinez Beltran - Council Member
Rene Spring - Council Member
Friday, January 28, 2022 1:00 PM
Virtual Meeting
Friday, January 28, 2022, 1:00 p.m.

Saturday, January 29, 2022, 9:00 a.m.

The link to join the meeting can be found below.

VIRTUAL MEETING GUIDELINES AND PUBLIC COMMENT
In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed.

Physical meetings will not be in the City Council Chamber until further notice.

City Council meetings will be live-streamed on Channel 17, on the City’s website, and on the City’s Facebook page. Those members of the community that would like to participate in the meetings remotely may do so by joining the virtual meeting at:
https://bit.ly/MHCityCouncilMeeting or by calling (669) 900-9128, then enter the webinar id: 873 3200 8380#.

Public comment may be provided in the following ways:
 Join the virtual City Council meeting via the link above, when public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes (YOU MUST BE RUNNING THE MOST CURRENT VERSION OF ZOOM TO BE

UNMUTED)
 Join the virtual meeting by calling the number above, dial *9 to raise your hand, and be called upon to speak for up to 3 minutes
 Send public comments in writing to the City Clerk at
[email protected]

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January 28, 2022
2  Public comment is intended for comments. Questions posed during public comment are not generally answered. If you have questions, send them to the City Clerk at [email protected] to receive a response. * Please note that comments made on Facebook are not considered public comment.

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

PUBLIC COMMENT
This opportunity for public comment is for items that are not on the agenda. If you would like to make comments on an item that is on the agenda, please wait until we get to that item to offer your comments. Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. (See additional noticing at the end of this agenda)

ADOPTION OF AGENDA
GOAL SETTING WORKSHOP - FRIDAY, JANUARY 28, 2022 1:00 P.M.

1. CITY COUNCIL GOAL SETTING WORKSHOP
Recommendation:

1. Review and discuss results of City Council's Myers-Briggs Type Indicator;

2. Review 2021 Accomplishments;

3. Review and discuss City Council Norms, Policies, and Protocols;

4. Review and discuss 2020-2021 Strategic Priorities Work Plan and Council Follow-up/Future Business Items;

5. Review and discuss 2022-2023 Sustainable Morgan Hill, including Vision, Ongoing Priorities, and Strategic Priorities; and

6. Receive updates on budget, development projects, and upcoming work plan items.

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January 28, 2022
3 ADJOURNMENT TO SATURDAY, JANAURY 29, 2022 AT 9:00 A.M.

SATURDAY, JANUARY 29, 2022, 9:00 A.M.

GOAL SETTING WORKSHOP CONTINUED

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January 28, 2022
4 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful.

When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item of interest to the public, you may do so during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less.

Please submit written correspondence to the Minutes Clerk, who will distribute correspondence to the City Council.

Persons interested in proposing an item for the City Council agenda should contact a member of the City Council who may plan an item on the agenda for a future City Council meeting. Should your comments require Council action, your request may be placed on the next appropriate agenda. Council discussion or action may not be taken until your item appears on an agenda. This procedure is in compliance with the California Public Meeting Law (Brown Act) Government Code §54950.

City Council Policies and Procedures (CP 03-01) outlines the procedure for the conduct of public hearings. Notice is given, pursuant to Government Code Section 65009, that any challenge of Public Hearing Agenda items in court, may be limited to raising only those issues raised by you or on your behalf at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the Public Hearing on these matters.

The time within which judicial review must be sought of the action by the City Council, which acted upon any matter appearing on this agenda is governed by the provisions of Section 1094.6 of the California Code of Civil Procedure.

For a copy of City Council Policies and Procedures CP 97-01, please contact the City Clerk’s office (408) 779-7259, (408) 779-3117 (fax) or by email [email protected].

AMERICANS WITH DISABILITIES ACT (ADA)
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk's Office at (408)779-7259, (408)779-3117 (fax) or by email [email protected]. Requests must be made as early as possible and at least two-full business days before the start of the meeting.

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1 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2022
PREPARED BY:

Christina Turner, City Manager
APPROVED BY: City Manager

CITY COUNCIL GOAL SETTING WORKSHOP

RECOMMENDATION(S)

1. Review and discuss results of City Council's Myers-Briggs Type Indicator;

2. Review 2021 Accomplishments;

3. Review and discuss City Council Norms, Policies, and Protocols;

4. Review and discuss 2020-2021 Strategic Priorities Work Plan and Council Follow-up/Future Business Items;

5. Review and discuss 2022-2023 Sustainable Morgan Hill, including Vision, Ongoing Priorities, and Strategic Priorities; and

6. Receive updates on budget, development projects, and upcoming work plan items.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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ADMINISTRATIVE SERVICES
Council Services and Records Management
• Completed the Laserfiche Upgrade.
• Phase 3 of 3 of the Civic Clerk Agenda and Streaming system transition is in process and near completion. • Supported Communications and Engagement efforts and activities. • Provided Zoom Meeting Management Training to cities and agencies throughout the state. • Worked with IT to prepare the Council Chamber for hybrid meetings and events.

Finance/Budget/Utility Billing
• Successfully transitioned from telework to in-person staffing for Utility Services and Billing at City Hall. • Worked with the Leadership Team and City Council to appropriate American Rescue Plan Act (ARPA) funds. • Completed comprehensive Planning and Land Development Engineering fee study.

Human Resources
• Completed 17 recruitments for regular, benefitted positions, and onboarded 26 new teammates. • Continued to administer and manage the Families First Coronavirus Response Act (FFCRA) for our City teammates.
• Continued to regularly follow and update COVID policies to follow CDC and County guidelines, rules, and regulations.
• Continued to provide COVID training to all teammates covering policies and procedures using TargetSolutions.
• Developed and implemented the City Telework Policy.
• Provided Harassment Prevention Training to elected/appointed officials and City teammates. • Successfully negotiated 3 Memorandum of Understanding (MOU) contracts with City bargaining groups. • Continued to work with Sedgwick to finalize Injury and Illness Prevention Program (IIPP) and will include CALOSHA COVID supplement.
• Partnered with Concern Employee Assistance Program (EAP) to provide a workshop to teammates on health and wellness.
• Launched and trained Managers on NeoGov Perform platform for teammate evaluations. • Continued to hold virtual monthly Teammate Update and Fun events. • Assisted and supported Community Services with new hire procedures and processes. • Prepared and completed Open Enrollment 2022.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Planned and conducted Virtual Service Awards and lunch.

CITY ATTORNEY
• Assisted in negotiations with the Morgan Hill Responsible Growth Coalition regarding compromise ordinance in lieu of proposed initiative. Drafted proposed urgency ordinance. • Advised businesses and business organizations regarding COVID restrictions and reopening requirements. • Advised Human Resources teammates regarding COVID reopening, and other unusual employment matters. • With Human Resources, provided training on the prevention of harassment, discrimination, and retaliation to supervisors and public officials.
• Prosecuted fireworks and other nuisance violations in criminal courts. • Negotiated new labor agreements with all three represented bargaining units.

CITY MANAGER
• Served as the City of Morgan Hill’s Director of Emergency Services throughout COVID-19. • Participated in meetings with County of Santa Clara, MHUSD, Santa Clara Valley Transportation Agency (VTA), Chamber of Commerce, Emergency Operational Area Council, Gilroy, and South County Regional Wastewater Authority (SCRWA).
• Appointed to and serving on LAFCO’s Countywide Fire Service Review Technical Advisory Committee. • Appointed to and serving on CalCities Audit Committee. • Hosted Zoom Town Hall meetings with the Community, and workshop series on Housing and Broadband • Participated in regular meetings with City Managers in the County to discuss local responses and participated in calls hosted by the County.
• Collaborated with the County, Safeway/Albertson’s, Rotary, and the Community Emergency Response Team to serve as a COVID 19 vaccination site.
• Provided recommendations on American Rescue Plan Act (ARPA) funding, consistent with City Council priorities.
• Proposed and Council approved addressing unfunded needs and liabilities from the City’s annual General Fund budget savings, to include pavement and rehabilitation of City streets, Trusts for OPEB and PERS Rate Stabilization Funds, and Park Maintenance.
• Worked with Human Resources, City Attorney and Departments to ensure adherence with COVID requirements and returning to in-person services.
• Executed Business Recovery Plan during COVID-19 to support recovery of the restaurant industry, retailers, and other businesses, to encourage tourism, and support new investment.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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Communications and Engagement
• Continued monthly table at the Morgan Hill Farmers Market/Sidewalk Saturdays highlighting City services, sharing general information, and answering questions through October. • Updated and simplified the weekly 411 formatting and styling to conform with best practices allowing for better readability and sharing of information.
• Completed draft of Citywide Communications, Outreach, and Engagement Plan. • Continued COVID-19 messaging and updates in English and Spanish, webpages, and curated content. • In conjunction with the Development Services team, implemented email blasts for significant projects.

PUBLIC SERVICES
Environmental Programs
• Completed Morgan Hill’s first Climate Action Plan, which was adopted by City Council. • Responded to drought emergency declaration by collaborating with the community on water savings. • Initiated solid waste management franchise renewal discussions with Recology. • Made revisions to the Post Construction Inspection and Stormwater Construction Inspection Programs including stormwater fee implementation and establishment of compliance schedules.

Engineering
• Completed the 2021 pavement rehabilitation project paving sections of two arterial streets, three collector streets, and five residential streets.
• Completed the CRC Expansion project, constructing a 2,500 square foot group exercise room that is now in use.
• Completed the Madrone Channel Trail Improvement Phase I extending a paved bike/pedestrian path from Cochrane to Main Avenue.
• Completed the renovation of sewer Lift Stations J and W. • Commenced construction on the Hale Avenue Extension Project. • Supported the commencement of Phase 2A of Valley Water’s Upper Llagas Creek Flood Control Project. • Completed thousands of feet of repair and replacement of sewer lines reducing future infiltration and inflow into the City’s wastewater system.
• Completed management transition of the Stormwater Inspections to the Environmental Services Division to help strengthen the monitoring and oversight of all active private and public construction projects and all post-construction inspection activities of completed projects. • Supported efforts to update the City’s Comprehensive Fee Study of Planning and Land Development Engineering.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Reviewed 24 Design Review applications, 8 Use Permit applications, 3 General Plan Amendments, 6 Tentative Maps, 2 Zoning Amendments, 3 SB 330 Preliminary applications, 187 Building Permit applications (62 residential, 79 plot plans, and 46 commercial), 6 Grading and Site Development Permit applications; and reviewed/processed 4 Tract Maps with Improvement Plans, 4 Parcel Maps with Improvement Plans, 1 Parcel Map, 5 Improvement Plans for commercial projects, 4 Certificates of Compliance/Lot Line Adjustments, and 2 Summary Vacations of Street Right-of-Way/Street Easement. • Distributed the Annual Flood Report citywide as part of the City Floodplain Management Program’s community outreach on flood risk reduction.

Maintenance
• Completed 990 work orders for street and storm drain maintenance throughout the City streets and right-ofway areas. • Completed citywide storm preparations to ensure the City’s storm drainage system works as effectively as possible.
• Supported the maintenance and ongoing use of City facilities including the public Recreation Facilities through the COVID-19 pandemic.
• Supported the Recreation Division in re-opening and relocation of programs and services for the community. • Repaired sidewalks throughout the City that had issues and replaced 8,550 square feet of sidewalk through the annual sidewalk replacement project.
• Worked with the Rotary Club of Morgan Hill and Beautiful Day organization to help beautify Galvan Park, including the addition of a mural, benches, basketball hoop, and the rehabilitation of the bathroom picnic tables and trash cans.
• Supported a significant increase in the number of volunteer clean up events throughout the City. • Continued to maintain parks without the use of Glyphosate. • Coordinated maintenance of City open space supporting fire protection on City owned property.

Recreation
• Re-opened the Community and Cultural Center for events after being closed for over a year. • Re-opened the Senior Center for programs.
• Continued to provide grab and go senior lunches to 100+ Morgan Hill residents a day. • Hired and onboarded 85 new part-time teammates to keep the AC, CRC, and CCC operational, parks maintained, and grant programs supported.
• CRC Memberships: Provided responsive customer service on an unprecedented 4,293 membership account requests - 1,482 New Member requests, 986 Cancellation requests, 771 Reactivations, 606 Hold requests, 448 Upgrade/Downgrade/Bank Draft requests.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Converted all CRC membership records from paper to electronic. • Implemented online ticketing for the Aquatics Center, allowing the facility to open with social distancing COVID-19 protocols and improve customer service.
• Facilitated a competitive ARPA Community Funding program to distribute $100,000 to local nonprofit agencies for community financial assistance and outreach. • Secured Edward Boss Prado Foundation sponsorship for free passes for 232 youth and their families to attend the Aquatics Center for summer recreation swim. Community partners included Boys and Girls Clubs of Silicon Valley, Mt. Madonna YMCA, Eden Housing (Royal Court and Crest Avenue apartments), and EAH Housing (Park Place and Orchard Ranch apartments).
• Launched a new marketing campaign for CRC Memberships with videos, images, and updated targeted messaging.
• Led a spring CRC Membership referral campaign that infused $850 into local restaurants. • COVID-19 and employee management: promoted vaccines among workforce, communicated changing requirements, gathered employee records, managed weekly testing clearances, coordinated protocols and leaves.
• Opened a pop-up mini golf site Downtown for four months.

Utilities
• Updated and developed several planning documents including the Water System Mater Plan, Urban Water Management Plan, and an assessment of the sewer trunkline from Morgan Hill through Gilroy. • Essential workers provided a fully operational water and wastewater system to provide critical services during the COVID-19 shelter in place orders with 30% of Department’s positions vacant. • Completed hydro cleaning of 525,573 ft. of the wastewater collection system using frequencies and priorities established by the asset management program (annually). • Inspected (CCTV) 187,131 ft. of the wastewater collection system. • Completed the deployment of the Incode Mobile Service Order System for water meter work. • Migrated meter testing forms from paper to electronic (Sedaru). • Upgraded CCTV software (POSM) from MS Access to a SQL database and integrated with the City’s GIS. • Completed an internal power outage exercise to prepare for utility operations during future potential PG&E power outages.
• Completed the Diana #1 Well and Main #1 Well rehabilitation projects. • Completed the annual Consumer Confidence Report for the City’s Water System. • Tested 299 large water meters (greater than 1½ inches) to ensure accuracy for the highest water customers. • Completed annual Dead-End flushing program and exercised 435 system valves in the water distribution system.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Marked 95.0% of requested underground utility location tickets accurately and within 48 hours. • Added additional SmartCovers in four locations to better monitor wastewater flows within the City’s system.

Geographic Information Systems (GIS)
• Completed GIS integration with utilities application Sedaru. • Led effort to design GIS submittal standards for developers, implementing standards in partnership with the Engineering Division.
• Worked with City staff and vendor to integrate GIS with City works to support the City’s future implementation of a maintenance and utility customer request and work order management system. • Worked with City staff to identify subdivisions and RV parks in very high fire hazard severity zone for AB 2911 (fire safety).

DEVELOPMENT SERVICES
Building
• All Inspectors continue to hold Certified Combination Inspectors status in both Residential and Commercial category.
• Issued 1,695 building permits.
• Performed 8,104 inspections.
• Issued 113 new residential permits.
• Coordinated the successful update of the Trakit permit system including upgrades to Etrakit. • Continued to successfully provide all permit, plan check, and counter services in a virtual environment.

Code Compliance
• Opened 356 code compliance cases in 2021.
• Closed 236 cases in 2021.

Economic Development
• Continued to support the Economic Development Business Recovery Plan to support recovery of the restaurant industry, retailers, and small businesses, to encourage tourism, and support new investment. • Monitored the Morgan Hill al Fresco program to encourage restaurants to continue outdoor dining through the end of the year.
• Continued supporting the Morgan Hill Chamber of Commerce’s “Buy Local Morgan Hill” campaign offering the business community a platform for increasing product awareness and educating residents of the importance of shopping local and to encourage more business-to-business transactions.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Hosted the Downtown Monterey Road Visioning Summit, a conversation about creating space and destination through complete streets.
• Received direction from Council to complete a design plan for an Improved Lane Reduction Program and associated Place Branding effort for the Downtown.
• Coordinated “Sidewalk Saturdays”, an outdoor popup retail event for retailers that do not have a storefront to join an outdoor retail market opportunity in Downtown. • Supported and coordinated reserved parking signage for curbside pick-up at Downtown restaurants. • Partnered with the Silicon Valley Business Journal to host a panel on the “Future of Morgan Hill” and discussed the major development projects in the pipeline as well as Morgan Hill's growing tourism, business, and entertainment sectors.
• Partnered with the Morgan Hill Downtown Association, Morgan Hill Chamber of Commerce, and Visit Morgan Hill to present a free outdoor movie series on Wednesday nights at the Downtown Amphitheater and further support our local business community.
• Contracted with a professional videographer to co-direct and co-produce a Morgan Hill Tourism video with Visit Morgan Hill highlighting all the amenities Morgan Hill has to offer. • Development Services teammates participated in a two-day UrbanPlan Workshop taught by ULI that provided hands-on training to better understand the trade-offs and risk at play in the entitlement and negotiations process associated with land use.
• Conducted Business Walk and Survey in Downtown Morgan Hill to help assess Downtown parking needs for the Downtown Traffic Calming and Monterey Road Lane Reduction and Place Branding/Beautification Project.
• Supported the Downtown Traffic Calming and Monterey Road Lane Reduction and Place Branding/Beautification Project with 4 Working Group Meetings and 4 Community Outreach/Meetings. • Hired Economic Development Coordinator, Economic Development Fellow, and Economic Development Director.
• Conducted 14 business retention visits with key/major employers and completed corresponding follow-up action items.
• Updated, improved, and relaunched the “Buy Local Morgan Hill” website and campaign for 2021 holiday shopping season.
• Launched a new Choose Morgan Hill Economic Development eNewsletter. • Presented Economic Development updates to Planning Commission, City Council, Chamber of Commerce, and South County Realtors Association.
• Extended Al Fresco outdoor dining program through December 2022. • Re-activated social media accounts and blog posting on Choose Morgan Hill website. • Compiling and building a Business Resource Toolkit, content currently includes: Manufacturing and R&D Partial Tax Credit, California Competes Tax Credit & Grant, CAEATFA, Grow MH Fund.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Drafted Industrial Preservation and Optimization Policy and proposed Zoning Code amendments in advance of Feb 2022 Planning Commission and City Council Meetings.

Housing/Homelessness
• 132 unhoused Morgan Hill individuals have been interviewed and assessed to determine health, housing, and social risk factors. Of the 132 assessed (surveyed), 48 individuals (21 households) successfully enrolled in a Rapid rehousing or Permanent Housing Program.
• Partnered with Rebuilding Together to help 15 households (seniors and low-income residents) with 107 home repairs.
• The BMR portfolio has 568 owner-occupied units, the HouseKeys Program has provided 5 Resales, 5 Acquisitions, 32 Refinances, 1,973 City of Morgan Hill Registrants (1,172 Ownership & 801 Rental Registrants), provided 69 Educational (Ownership/Rental) Webinars, 12 BMR Ownership Program Opportunity Drawings, and 2 BMR Rental Program Opportunity Drawings. • Accepted a $450,000 grant from Destination: Home to develop and advance local implementation of the Community Plan to End Homelessness. The capacity building grant will support our full time “Unhoused Specialist” who began in December 2021.
• Council adopted the revised Inclusionary Housing Ordinance solidifying the intent of the Affordable Housing Program and accepting partial housing in-lieu fees to fund ELI and VLI homes to further the City’s RHNA goals. • Participated in the Santa Clara County Isolation and Quarantine program that assisted 128 households in Morgan Hill with in-home support (groceries, cleaning supplies, etc.) and 69 households with financial assistance. Placed 18 households into hotel isolation and quarantine. • Participated in the implementation of the “Great Plates Program” offering food delivery to 60 home bound senior citizens in Morgan Hill.
• Participated in the implementation of bi-weekly COVID-19 testing at the City of Morgan Hill’s City Council Chambers. 3,337 tests were administered at this site in 2021. • Conducted “Housing Conversation’s 2021” – a series of seven workshops in both English and Spanish as a launching pad to the Housing Element Community Engagement work underway.

Planning
• Continued to implement permit processing for SB330 including utilizing objective criteria established at the end of 2019.
• Created new guidance documents for both SB330 and SB35 application processing. • Held Workshop with the City Council regarding the City’s implementation of SB 743 and the transition from Level-of-Service (LOS) to Vehicle-Miles-Traveled (VMT) metric for transportation analysis under the California Environmental Quality Act (CEQA) for development projects. Developed RFP based on City Council feedback to pursue a Morgan Hill centric VMT standard.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• In coordination with the Housing team, conducted four City Council workshops on issues related to housing – 2021 Housing Conversation.
• Secured Local Early Action Planning (LEAP) grant for $150,000 and Regional Early Action Planning (REAP) grant for approximately $27,000 to assist in funding the preparation and adoption of the Housing Element Update of the General Plan to facilitate compliance with the sixth cycle RHNA. • Participated in RHNA Methodology process and closely tracked process that determined the City’s sixth cycle RHNA.
• Brought the second draft of a Formed Based Code for Monterey Road to Planning Commission for review. • Updated the City's Industrial Zoning Code prohibiting fulfillment centers, defining Large Scale Projects and moving review and approval authority from City staff to Planning Commission. • Created Urgency Ordinance 2320 regulating building type and changing definitions for Dock-High-Door, DockHigh-Door to Square Foot Ratio, Ceiling Height, and Light Manufacturing uses. • Completed annual Zoning Code Update.
• Completed update to Development Services Fees making current fee schedule more accurate to achieve greater cost recovery and held development workshop.
• Continued to provide all planning services and functions in a virtual environment. • Continued to create and improve resources for public information regarding development activity in the city.

FIRE
• Firefighters participated in the County Wide Fire/EMS in-home vaccine clinic. • Outfitted our ambulance and completed the filings and inspections required to receive the licenses/permits necessary to operate an ambulance.
• Converted an existing Type VI Fire Engine into a Squad, hired and trained personnel to staff the new Squad, and placed it into service as Squad 59.
• Began design of Butterfield Fire Station and issued Request for Proposals (RFP) with Public Services.

POLICE
Administrative
• Deployment of 25 Flock Safety automated license plate reader cameras at 16 locations within the City. Since the August deployment, officers have recovered 51 vehicles and have made over 66 arrests. • Filled five key supervisory positions in the Patrol Division and two detective positions in the Special Operations Division: Property Crimes and Street Crimes.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Successfully held annual National Night Out event with over 1,500 attendees. This event is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie.
• Implemented the inaugural Police Cadet Ambassador Program. In the summer of 2021, our Police Cadet Ambassadors provided a presence Downtown on weekend evenings to interact with patrons and answer their questions as well as deter crime and report suspicious activity. • Officers have begun preparation to host a Community Police Academy in Spanish. • Established a social media team comprised of members from each department division. The social media team develops social media content designed to both engage the community and provide public safety alerts and announcements as needed.

Patrol Division
• Officers continue to engage in Community Policing activities to include but not limited to Park Place, Downtown on bicycle patrol, Outdoor Movie Series, Farmer’s Market, and other community events. • The Crime Prevention Unit was a recently formed unit that is working to create open and honest dialogue with neighborhoods to improve safety by engaging residents to participate in crime prevention efforts. This is achieved by sharing information about crime issues and developing ideas and tips on how to address them.

The Crime Prevention Unit holds community meetings and provides presentations on a variety of crime topics.
• Traffic and Patrol Officers were assigned Downtown as a pilot program to reduce collisions, speed, and quality of life issues.
• Traffic Division’s enforcement efforts citywide along with COVID have reduced traffic collisions by an average of 43% in comparison to the previous three years.
• Planning for Psychiatric Emergency Response Team. This team will expand the Mobile Crisis Response Team by pairing a specially trained law enforcement officer with a licensed Santa Clara County Behavioral Health clinician who will be assigned to Morgan Hill 40 hours a week. Together, they will provide crisis resolution and proactive outreach to connect people to appropriate behavioral health services. • Officers have been trained in the administration of NARCAN and carry AED’s in each patrol vehicle which has resulted in no less than 7 lives saved.

Special Operations Division
• Implementation of the Youth Diversion Program. This program is designed to provide eligible youth offenders with an alternative to entering the justice system while still holding them accountable. The Department’s Youth Diversion Specialist works with the South County Deputy District Attorney to identify youth to refer to the program.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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• Implementation of the Mobile Crisis Response Team. This team is in partnership with the County Behavioral Health Services, assigning one detective and a licensed mental health clinician to work one day a week to respond to, screen and assess individuals experiencing a mental health crisis. The team provides crisis intervention and referrals to support services and follow-up. • A Police Sergeant was assigned to the Santa Clara County Regional Enforcement Allied Computer Task Force, a task force that provides 100% of the Sergeant’s salary and overtime. • The Morgan Hill Unified School District renewed the School Resource Officer MOU for the 2021-2022 school year. The Department and the School District will continue collaboratively to ensure the MOU follows best practices.
• Department of Justice awarded the Morgan Hill Police Department a Community Tobacco Officer position in the amount of $400K over two years. The Officer has already begun enforcement and education activity at the retail stores and schools.
• Our Traffic Officers began using Crossroads Collision software for collision reporting. The Department is using Crossroads software for electronic citations. The process is underway for integration with our Report Management System.

Support Services Division
• The Department transitioned from FBI Uniform Crime Reporting (UCR) to National Incident Based Reporting System/ California Incident Based Reporting System (CIBRS/NIBRS). One of the highlights of CIBRS is that all crimes will be reported to the FBI. UCR operated under a hierarchy rule where only the most serious crime committed during an incident was reported. CIBRS/NIBRS will give a more accurate picture. • Hardware was installed for the Next Generation 911 platform, a statewide effort that will move the delivery of 911 into the digital age, moving away from phone lines to Internet Protocol delivery. • Recruited and hired a Support Services Manager.
• Explored opportunities to expand electronic transmission of records to DMV, Parking Citation. • Morgan Hill Police Department and the Santa Clara County Court System were the first agencies in the County to transition to electronic transmission of records to the Santa Clara County District Attorney’s Office.
• Established outcomes for and developed a Quality Assurance Program for dispatch call processing. • Implemented text to 911 integration with Vesta 911 phone system. Integration into the Vesta 911 phone system was redirected when the State OES launched RapidDeploy, the preferred mechanism for text communications.
• Preparing to deploy NextGen 911, once the State has completed the infrastructure needed to support this longitudinal project and the department has improved its internal technology to be able to accommodate NextGen911 features as they are released. This will include a public education component as well as employee resiliency initiatives.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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Office of Emergency Services
• Completed an Emergency Operations Center Management Conference Room technology enhancement project funded via Emergency Management Performance Grant (EMPG). • Approval obtained to purchase 12 EOC dedicated laptops via Emergency Management Performance Grant. • Secured a State Homeland Security Grant Program (SHSGP) to purchase a Long-Range Acoustical Device (LRAD) to assist with early warning and evacuation events.

Information Technology (IT)
Security
• Staff secured access to critical services such as email and documents stored in the cloud by enabling multifactor authentication (MFA) for all users outside the City network. • Secured VPN access with multi-factor authentication.
• Implemented Microsoft Defender to address malware attachments and phishing attempts and protect the City’s data as well as its reputation.
• Completed a cloud (Office 365) security assessment, external penetration testing of the IT infrastructure and a regulatory compliance for PCI (Credit Cards), NIST 800-53 (General government IT controls) and CJIS (Law Enforcement).
• Completed a regulatory compliance security assessment for PCI, CJIS and NIST 800-53. • Developed a Security run book that identifies relevant policies and necessary procedures for security compliance.
• Enhanced security by deploying new firewalls and integrating additional security layers to protect the City network.
• Consolidated smaller individual, unmanaged, firewalls, while deployed new switches, WiFi routers and upgraded firewall configurations at all City facilities to assist both City employees and the public in access. • Formalized a risk mitigation process for cyber threats and an after-action reporting mechanism to document lessons learned.
• Deployed new security rules to ensure data loss prevention for sensitive data such as credit card and social security numbers.
• Deployed self-service password reset tools for all employees. • Deployed a security add-in for all outlook users allowing users to directly report spam and phishing emails to Microsoft.
• Delivered a presentation to all City staff regarding cybersecurity and provided education material by email once a month to raise the organization’s awareness of cyber security threats.

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ACCOMPLISHMENTS
JANUARY – DECEMBER 2021
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Projects
• Upgraded the Council Chambers to support hybrid meetings by adding a dedicated zoom station and new audio / video inputs.
• AV upgrades in City Hall conference room with new video sharing equipment, new video conferencing cameras, and dedicated PC and large screens for hybrid meetings. • IT accelerated the deployment of mobile devices such as laptops to teammates to assist the organization in hybrid work models during COVID.
• IT managed the Wave broadband deployment to start the development of dark fiber to City facilities increasing redundancy and network/system availability.
• Upgraded POSM (Pipeline Observation System Management) software for the Corporation Yard to the Server version and hosting the data in our SQL Cluster instead of Access Database. • Performed three version upgrades to ensure our Active Directory is operating on the most current version. • Upgraded servers to supported versions of the operating systems where feasible based on application dependencies.
• Developed recommendations for end-of-life storage replacement and secured funding. • Installing new wired and wireless networks to all facilities except the Aquatics Center. • Performed an audit of user account, disabled old users, and validated existing accounts. • Implemented a two-year email retention policy.
• Deployed approximately 40 laptops for employees to work remotely.

IT Help Desk
• The IT team averages a day and half to close HelpDesk Tickets. • The IT team closed 2,052 HelpDesk Tickets in 2021.

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City Council Norms
Established January 26, 2019
Revised January 29, 2021
❖ Be respectful of each other
❖ Address issue, not person
❖ Be honest and real
❖ “Clear air” if needed; have hard discussions
❖ Listen to each other
❖ Be aware of how we represent the City as leaders in the community ❖ Be accurate in statements
❖ Be open minded; avoid concluding on your position prior to the item being heard ❖ Be flexible and willing to compromise
❖ Recognize that experience comes in diverse ways
❖ Be mindful of time
❖ Be professional; keep decorum of meeting throughout
❖ No side conversations
❖ Come prepared
❖ Give enough time to discuss issues
❖ Ok to ask City Council to continue an item if not ready ❖ Don’t be repetitive on requests and comments
❖ Wait to be recognized before speaking
❖ Keep the order of the meeting (questions, public comment, and then discussion) ❖ Provide early notice of request for alternates to attend outside appointment meetings ❖ Speak into the microphone
❖ Cell phones silenced
❖ Be punctual
❖ Send questions in advance of meeting; let City Manager know if you plan to pull a consent item ❖ Be engaged
❖ Be concise

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REVISED 1.20.2022
COVID Workplan Item
City of Morgan Hill Strategic Priorities 2020-2021
Strategic Priorities 2020-2021
# FY 2020-21 and FY 2021-22 Activity Goals Fiscal Sustainability Affordable Housing & Homelessness Community Engagement & Messaging Economic Development Transportation COVID
Status % Complete for In Process Activities
City Manager
1 Closely monitor the economic recovery and
financial impacts associated with the ongoing
COVID-19 pandemic and update the City
Council and the Community monthly
X X X X Ongoing
2 Ensure Departments maintain focus on cost
containment and continue to actively pursue
State and Federal funding
X X Ongoing
3 Advocate with regional partners for the clearly
identified traffic and transportation issues,
including the High-Speed Rail, Hale Avenue
extension, expansion of Highway 101, and
funding for priority projects in South Santa
Clara County
X X Ongoing
4 Represent the City’s interests by regularly
meeting with County of Santa Clara, MHUSD,
Santa Clara Valley Transportation Agency
(VTA), Chamber of Commerce, Emergency
Operational Area Council, Gilroy, and South
County Regional Wastewater Authority
(SCRWA), and League of CA Cities
X X X X Ongoing
5 Work with the City departments to implement
a work plan for Diversity, Equity, and Inclusion
and host a Council workshop to determine
scope and timeline
X X X X X X In Process 10%
Communications and Engagement
6 Continue to monitor and communicate
Federal, State, County and local guidelines
regarding COVID-19 health emergency
X X Ongoing
7 Continue outreach and bilingual
communication as possible with limited
resources
X X Ongoing
City Attorney
8 Monitor and provide guidance in implementing
State and County orders as they relate to
COVID-19
X Ongoing
9 Monitor and update City's COVID-19
emergency orders X Ongoing
10 Serve on Board of Directors for PLAN JPA X Ongoing
11 Communicate with Council and the community
regarding changes to the Housing
Accountability Act and advocate for measures
to mitigate potential impacts
X X Ongoing
Human Resources
12 Negotiate fiscally responsible labor
agreements with the City's three bargaining
groups, for contracts expiring in December
2021, while continuing to provide salaries and
benefits that attract and retain a qualified
workforce
X Complete 100%
Council Services and Records Management
13 Implement Electronic Document Management
and Workflow system X X X Complete 100%
14 Implement DocuSign Electronic Signatures X X Complete 100% 15 Implement new Agenda Management system X X In Process 95% Finance/Budget/Utility Billing

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REVISED 1.20.2022
COVID Workplan Item
City of Morgan Hill Strategic Priorities 2020-2021
Strategic Priorities 2020-2021
# FY 2020-21 and FY 2021-22 Activity Goals Fiscal Sustainability Affordable Housing & Homelessness Community Engagement & Messaging Economic Development Transportation COVID
Status % Complete for In Process Activities
16 Seek federal and state grant funding available
through FEMA, CARES and others for the City
resources expended in response to COVID-19
X X Ongoing
17 Evaluate existing fee schedules to ensure
reasonable costs of providing services are
appropriately assessed
X X Complete 100%
18 Explore new or expand existing tax revenue
sources to address City's unfunded needs and
economic impacts due to COVID-19
X X X In Process 50%
19 Review and adjust water utility rates to ensure
water system’s long-term sustainability X In Process 75% 20 Continue to promote paperless billing and
electronic payment enrollment, and the City’s
WaterSmart feature
X X Ongoing
Community Services
21 Provide the City Council with options to pursue
a climate action plan or alternative actions to
address climate change.
x x x Complete 100%
22 Plan and implement re-opening of the
recreation facilities following the lifting of
shelter in place orders related to COVID-19
X X Ongoing
23 Evaluate opportunities for renewal and
enhancement of the CRC’s collaborative
operating model with the YMCA of Silicon
Valley
X Ongoing
24 Identify and find new tenant for the former
Gavilan College Building at the Community
and Cultural Center
X X Complete 100%
25 Support ongoing coordination with MHOSC,
the operator of the Outdoor Sports Center, and
the team at the Aquatics Center to host
regional sports events, while minimizing
impact to the community
X X Ongoing
26 Continue to support the Friends of the Senior
Center in growing the Senior Support
Endowment Fund to ensure sustainability of
Senior Center operations
X Ongoing
27 Establish new solid waste management
franchise agreement for Gilroy and Morgan
Hill
X In Process 25%
28 Continue to monitor and adjust irrigation within
City owned rights-of-way and median islands X Ongoing
29 Work with Santa Clara County and City of
Gilroy on implementing all regulatory
requirements as required by the State and
Regional Board
X Ongoing
30 Shift agriculture preservation strategy to deal
with loss of contributions to the Agriculture
Preservation and Open Space Fund, by
focusing on regional partnerships and potential
grant opportunities
X Complete 100%

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Morgan Hill Ready Handbook, Morgan Hill
Dine al Fresco, Morgan Hill Open for
Business, Parklet Pilot Program, Buy Local
Campaign, EDA CARES Act Grant, and other
business retention activities
X X X X Ongoing
39 Establish a renewed PBID X X In Process 15%
40 Streamline encroachment permit and review
process
X X Complete 100%
41 Continue exercising discretion to ease
enforcement of certain City regulations in
order to encourage economic activity and to
speed up recovery from the shelter in place
orders
X X Ongoing
42 Create retail concentration strategy X X In Process 50% 43 Create industrial preservation policy X X In Process 75% 44 Telecommunications negotiations X X Complete 100%
45 Conduct community workshop series on
Broadband services in Morgan Hill X X Complete 100%
46 Support Expansion of Healthcare Facilities X Ongoing 47 Advance work to streamline the housing
application process due to SB330, AB1763
and other new housing laws
X Complete 100%
48 Update Housing Element for 2023-2031 and
respond to RHNA Goals X X In Process 25%
49 Update Circulation, Infrastructure and Safety
Element X X Commencing Soon 0%
50 Prepare Environmental Justice Element X Commencing Soon 0%

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X In Process 75%
63 Update Street and Sidewalk Development
code X Commencing Soon 0%
64 Issuance of wastewater bonds to fund the
existing and expanded wastewater
infrastructure repairs and enhancements
X Complete 100%
65 Implement the approved Capital Improvement
Program X X In Process 75%

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City Council Goal Setting Workshop
January 28 & 29, 2022

ATTACHED
MATERIALS:
1) 2021 Accomplishments
2) City Council Norms
3) 2020-2021 Sustainable Morgan Hill
4) 2021-2022 Strategic Workplan Update
5) December 2021 Financial and Investment Report and City Manager Authority Report
6) Significant Projects Update (January 2022)
7) Housing Element – Materials from Planning Commission 8) Legislative Advocacy (Resolution No. 20-010)
FRIDAY, JANUARY 28, 2022
Time Topic Presenter
1:00 PM-2:30 PM 1. Welcome

1.1 Welcome
Mayor Constantine &
Christina Turner

1.2 Council Introductions Mayor Constantine

1.3 Purpose of Goal Setting Workshop, Preview
Agenda and Format Christina Turner

1.4 Myers-Briggs Type Indicator Shawn Spano

1.5 Review of 2021 Accomplishments Leadership Team

1.6 Public Comment Mayor Constantine
2:30 PM-3:00 PM 2. Council Policies, Procedures, and Protocols

2.1 Review City Council Norms Shawn Spano

2.2 City Council Policy Considerations Mayor/Turner

2.3 Public Comment Mayor Constantine

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3:00 PM-5:00 PM 3. Sustainable Morgan Hill

3.1 Review of Sustainable Morgan Hill 2020-2021 Spano/Turner

3.2 Review of 2020-2021 Strategic Priorities Workplan
• Fiscal Sustainability
• Affordable Housing and Homelessness
• Community Outreach, Engagement, and
Messaging
• Economic Development
• Transportation Christina Turner

3.3 Review City Council Follow-Up and Future
Business Items Christina Turner

3.4 Discussion of Sustainable Morgan Hill 2022-2023 Shawn Spano

3.5 Public Comment Mayor Constantine
SATURDAY, JANUARY 29, 2022
9:00 AM-10:30 AM

4. Review City Council’s Draft Sustainable
Morgan Hill 2022-2023 Spano/Turner
10:30 AM-11:30 AM 5. Fiscal Sustainability

5.1 Receive December 2021 Financial and Investment
Report and City Manager Authority Report Dat Nguyen

5.2 Budget Update Dat Nguyen

5.3 Funding Priorities for Local Government Turner/ Nguyen

5.4 Public Comment Mayor Constantine
11:30 AM-12:00 PM 6. Development Projects Update

6.1 Review of Development Projects Jennifer Carman

6.2 Public Comment Mayor Constantine
12:00 PM-1:00 PM Lunch Break

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1:00 PM-2:30 PM 7. On the Horizon

7.1 Community Outreach, Engagement, and
Messaging Michelle Bigelow

7.2 Housing Element and Regional Housing Needs
Allocation Implementation Jennifer Carman

7.3 Telecommunications/Broadband Anthony Eulo

7.4 Industrial Preservation Matt Mahood

7.5 Legislative Advocacy Turner/Ramirez

7.6 Other Upcoming Work Plan Items Leadership Team

7.7 Public Comment Mayor Constantine
2:30 PM-3:00 PM 8. Goal Setting Wrap Up
3:00 PM-5:00 PM Hold for additional time if needed

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FINANCE DIVISION

CITY OF MORGAN HILL
December 31, 2021 - 50% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

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CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED DECEMBER 2021 – 50% OF YEAR COMPLETE  General Fund – Revenues through December totaled $14.2 million, or about 28% of the budgeted revenues as some of the major revenue categories such as property tax are received later in the fiscal year. With respect to the property tax revenue forecast, on August 20, 2021, the Controller-Treasurer’s Department of the County of Santa Clara notified the cities and agencies within the County that the State of California Controller’s Office agreed with the County’s methodology of calculating excess Educational Revenue Augmentation Fund (ERAF), therefore, set aside provision is no longer required.

The City of Morgan Hill is expecting to receive an additional $650,000 in excess ERAF for FY2021-

22. However, the County cautioned cities and agencies in planning and budgeting this source of revenue as future legislation could impact the calculation methodology. The increase in excess ERAF distribution is mainly due to the growth of property tax outpacing the growth of school funding requirement and this revenue stream is becoming a large revenue category for the City in recent years.

Morgan Hill begun to receive excess ERAF distribution in FY2013-14 in the amount of $13,000 and it has grown to about $1.9 million in FY2020-21.

As for sales tax, the latest projection from our sales tax revenue consultant estimated this year’s revenue, before sales tax rebates, to be about $12.0 million versus about $11.0 million budgeted.

Pandemic based economic recovery contributed significantly to this upside forecast as well as the addition of a car dealership. One of the industries hit hardest across the state during the pandemic was the restaurants group which has experienced a strong rebound.

The chart below shows historical General Fund revenues by major revenue category from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of December 31, 2021.

$11.4 $12.8 $14.5 $16.0 $15.8
$10.7 $10.7 $9.7 $11.0 $11.1
$4.9 $5.1 $4.6 $4.4 $4.6 $9.3 $9.9 $8.3 $5.7 $8.2
$5.4 $4.9 $3.6
$9.7
$11.2
$14.2
0 10
20 30
40 50
60 FY17‐18 FY18‐19 FY19‐20 FY20‐21 Budget
FY21‐22
YTD
FY21‐22
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

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CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED DECEMBER 2021 – 50% OF YEAR COMPLETE General Fund expenditures and encumbrances as of December 31, 2021 totaled $24.6 million, of which approximately $1.9 million is attributable to outstanding encumbrances.  Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of approximately $1.7 million as of December 31, 2021. The large budgeted operating loss for recreation operations reflects the restrictions and limited opening of recreation facilities since March 2020 due to the shelter-in-place order as a result of the coronavirus pandemic and the continued indoor mask mandate which is having a negative impact to the membership drive.

Due to longstanding governmental accounting and budgeting convention, the City’s recreation operations are not charged for indirect costs (known in Morgan Hill as “General Fund Administration”) from the central services departments of City Attorney, City Manager, and Administrative Services.

The City’s other governmental funds, such as Community Development, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the Federal government’s OMB Circular No. A-87, which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represent best practice for nongrant funded City operations like utilities and information services.  Development Services Fund – Revenues through December totaled $2.0 million. Expenditures, including encumbrances, totaled $2.8 million. The fund is budgeted at a higher revenue at $5.3 million compared to recent years’ actuals primarily due to the higher fees anticipated from the completion of the updated fee study.
 Debt Service Funds – Expenditures through December totaled $0.5 million. The debt service for the first half of the year includes both interest and principal, while the second half of the year will include interest only. Debt service payments were all scheduled when the bonds were issued, and are budgeted for in the months delineated in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues.
($2.5)
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY12‐13 FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 FY18‐19 FY19‐20 FY20‐21 FY21‐22 Budget
Millions (S)
Historical Net GF Impact

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CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED DECEMBER 2021 – 50% OF YEAR COMPLETE  Wastewater Operations – Revenues from Sewer Operations through December totaled $6.2 million.

Expenditures and outstanding encumbrances totaled $6.7 million or 47% of the budget. The table below shows historical Sewer Operations revenues and expenditures from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of December 31, 2021.
(amount in millions) FY17‐18 FY18‐19 FY19‐20 FY20‐21
Budget
FY21‐22
YTD
FY21‐22
Revenues 10.3 11.4 11.9 13.3 14.1 6.2 Expenditures 10.8 11.4 12.3 13.3 14.0 6.7 Operating Margin (0.5) ‐ (0.4) ‐ 0.1 (0.5) Operating Margin
without Encumbrances (0.3) (0.1) 0.4 ‐ 0.1 (0.3)  Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues from Water Operations through December totaled $7.2 million. Water Operations expenditures, including outstanding encumbrances, totaled $8.1 million through December.

The table below shows Water Operations revenues and expenditures from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of December 31, 2021. (amount in millions) FY17‐18 FY18‐19 FY19‐20 FY20‐21
Budget
FY21‐22
YTD
FY21‐22
Revenues 13.0 14.2 15.3 16.5 16.3 7.2 Expenditures 12.1 14.3 16.4 16.5 16.4 8.1 Operating Margin (0.1) 0.9 (1.1) ‐ (0.1) (0.9) Operating Margin
without Encumbrances 1.4 0.8 (0.1) ‐ (0.1) ‐  Investments – One security was purchased. Total interest earnings received on investments were $36,000 during the month.

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% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 14,237,431 $ 28% $ 24,625,123 48%
Development Services 2,045,763 39% 2,837,229 51%
RDA Successor Agency 116 0% 489,613 7%
Housing Successor Agency 277,419 129% 763,265 76%
Sewer Operations 6,174,495 44% 6,696,664 47%
Sewer Other 4,070,901 34% 7,115,799 16%
Water Operations 7,203,828 44% 8,091,743 49%
Water Other 2,887,295 41% 1,274,417 13%
Other Special Revenues * 2,198,324 41% 1,902,902 35%
Capital Projects & Streets 16,877,560 74% 33,065,652 49% Debt Service 345,108 50% 545,213 79%
Internal Service 4,718,017 36% 6,626,171 50%
TOTAL FOR ALL FUNDS 61,036,256 $ 39% $ 94,033,790 40%
* Includes all Special Revenue Funds except Community Development, Street Funds, and RDA and Housing Successor Agencies.

REVENUES EXPENSES
0% 20% 40% 60% 80% 100% 120% 140%
General
Development Services
RDA Successor Agency
Housing Successor Agency
Sewer Operations
Sewer Other
Water Operations
Water Other
Other Special Revenues *
Capital Projects & Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
December 31, 2021 - 50% of Year Complete
Revenues to Budget Expenses to Budget
50%

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% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 15,771,000 $ 2,432,846 $ 15% 2,417,602 $ 1% Sales Tax 11,098,601 4,082,934 37% 2,618,381 56%
Franchise Tax 2,375,000 524,979 22% 481,204 9%
Hotel Tax 2,235,300 991,469 44% 624,704 59%
Licenses 198,825 156,417 79% 131,084 19%
Other Agencies 653,658 200,908 31% 162,682 23%
Service Charges 8,164,851 3,683,692 45% 2,611,410 41%
Interest/Other 7,230,495 706,259 10% 786,619 -10%
Transfers In 3,093,579 1,457,928 47% 1,194,599 22%
TOTAL REVENUES $ 50,821,309 $ 14,237,431 28% 11,028,285 $ 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Licenses
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
December 31, 2021 - 50% of Year Complete
50%

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ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 5,913,826 $ 2,558,692 43% 2, $ 298,530 11% Community Services 13,952,469 6,990,215 50% 6, 138,554 14% Police 19,133,242 9,199,599 48% 8, 471,609 9%
Fire 7,788,401 3,741,052 48% 3, 522,870 6%
Transfers Out 4,083,681 2,135,566 52% 285,582 648%
TOTAL EXPENDITURES $ 50,871,618 $ 24,625,123 48% 20, $ 717,144 19% 0% 10% 20% 30% 40% 50% 60%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
December 31, 2021 - 50% of Year Complete
50%

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City of Morgan Hill
Recreation Report - Fiscal Year 2021-22
For the Month and Five Months Ended December 31, 2021
50% of Year Complete
% of
Budget December 2021 YTD Budget
Revenues
Membership Services & Rec Programs 4,713,801 $ 311,220 $ 2,093,019 $ Facility Rentals 506,683 78,507 261,251
Community Services 79,000 51,560 98,322
Transfers in 75,000 6,250 37,500
Total Revenues 5,374,484 $ 447,537 $ 2,490,092 $ 46%
Less: Expenditures
Membership & Program Services 5,648,211 $ 555,627 $ 2,582,909 $ Facility Rentals 1,313,549 56,298 266,653
Community Services 641,554 49,444 235,672
Total Expenditures 7,603,315 $ 661,368 $ 3,085,234 $ 41% Net Impact without encumbrances (2,228,831) $ (213,831) $ (595,142) $ Encumbrances - - 1,083,155
Net Impact with encumbrances (2,228,831) $ (213,831) $ (1,678,297) $

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The chart below shows cash balances by fund type reconciled to City's financial system:

City of Morgan Hill
Monthly Investment Report ‐ December 31, 2021
The following are the snapshots of City's investment portfolio as of December 31, 2021. The first chart shows the portfolio composition by investment type:

General Fund,
$17,042,794
Community
Development,
$592,450
RDA Successor
Agency (except
Housing), $18,928
Housing Successor
Agency/ CDBG,
$4,496,559
Water ‐ Operations,
$3,005,185
Water Other,
$17,338,063
Sewer ‐ Operations,
$2,125,446 Sewer Other,
$55,082,079
Other Special
Revenue, $8,205,909
Streets and Capital
Projects (except RDA),
$33,910,758
Debt Service ,
$137,186
Internal Service,
$18,576,195
Agency Funds
(assessment
dists./refundable
deposits), $1,997,843
Cash Balances by Fund Type
$162,929,396
LAIF ‐ $68.2M
42%
Treasury Note ‐ $6.4M
4%
Money Market‐
$.02M
<1%
Federal Agency
Issues‐ $81.1M
50%
Certificate of
Deposits‐ $0.5M
<1%
Bond Reserves/Trust‐
$4.7M
3%
Cash & Other
Deposits ‐ $2M
1%
Investment Portfolio Composition ‐ $162.9 Million
LAIF ‐ $68.2M
Treasury Note ‐ $6.4M
Money Market‐ $.02M
Federal Agency Issues‐
$81.1M
Certificate of Deposits‐
$0.5M
Bond Reserves/Trust‐
$4.7M
Cash & Other Deposits ‐
$2M

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The following chart illustrates a yield comparison by month among the City's portfolio, LAIF and 2‐Year US Treasury:

The chart below illustrates monthly average days to maturity of the City's portfolio along with the weighted average yield for the past two years:

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%
Dec‐19
Jan‐20
Feb‐20
Mar‐20
Apr‐20
May‐20
Jun‐20
Jul‐20
Aug‐20
Sep‐20
Oct‐20
Nov‐20
Dec‐20
Jan‐21
Feb‐21
Mar‐21
Apr‐21
May‐21
Jun‐21
Jul‐21
Aug‐21
Sep‐21
Oct‐21
Nov‐21
Dec‐21
Yield Portfolio vs. Benchmarks
LAIF City 2 Yr US‐Treasury

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%
0 100
200
300
400
500
600
700
800
900
Dec‐19
Jan‐20
Feb‐20
Mar‐20
Apr‐20
May‐20
Jun‐20
Jul‐20
Aug‐20
Sep‐20
Oct‐20
Nov‐20
Dec‐20
Jan‐21
Feb‐21
Mar‐21
Apr‐21
May‐21
Jun‐21
Jul‐21
Aug‐21
Sep‐21
Oct‐21
Nov‐21
Dec‐21
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield

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City of Morgan Hill
Investment Portfolio Detail
As of December 31, 2021
Investment Settlement Book % of Market YTM Next Call Date of Type Date Value Portfolio Value at Cost Date Maturity
L A I F $ 68,210,142 41.86% $ 68,201,524 0.21%
City Managed
Treasury Note 4/30/2018 4,435,873 3.28% 4,555,035 2.73% 3/31/2023 3/31/2023 Treasury Note 10/8/2021 1,988,227 1.25% 1,964,300 0.88% 9/30/2026 9/30/2026 FFCB Bond 4/8/2020 2,000,000 1.23% 1,997,680 0.88% 4/8/2022 4/8/2024 FFCB Bond 5/27/2020 2,000,000 1.23% 1,967,560 0.73% 5/27/2025 FHLMC Bond 6/3/2020 2,000,000 1.23% 1,977,620 0.60% 12/3/2024 FHLMC Bond 10/20/2020 2,000,000 1.23% 1,957,900 0.60% 10/20/2025 FHLMC Bond 10/27/2020 2,000,000 1.23% 1,959,980 0.63% 10/27/2025 FHLMC Bond 11/2/2020 2,000,000 1.23% 1,986,680 0.32% 11/2/2023 FFCB Bond 11/3/2020 2,000,000 1.23% 1,949,780 0.54% 11/3/2025 FNMA Bond 11/18/2020 2,000,000 1.23% 1,962,000 0.65% 11/18/2025 FHLMC Bond 11/24/2020 2,000,000 1.23% 1,954,900 0.64% 11/24/2025 FFCB Bond 11/24/2020 1,000,000 0.61% 975,660 0.60% 11/24/2025 FHLMC Bond 11/25/2020 3,000,000 1.84% 2,950,830 0.63% 11/25/2025 FHLMC Bond 11/30/2020 2,000,000 1.23% 1,967,620 0.65% 11/26/2025 FFCB Bond 12/22/2020 2,000,000 1.23% 1,940,380 0.47% 12/22/2025 FHLB Bond 1/22/2021 2,000,000 1.23% 1,962,760 0.63% 1/22/2026 FNMA Bond 1/28/2021 2,000,000 1.23% 1,957,600 0.55% 1/28/2026 FHLB Bond 1/28/2021 2,000,000 1.23% 1,964,020 0.65% 1/28/2026 FHLB Bond 2/24/2021 2,000,000 1.23% 1,957,260 0.75% 2/24/2026 FHLB Bond 2/25/2021 2,000,000 1.23% 1,962,960 0.66% 2/25/2026 FHLB Bond 2/26/2021 2,000,000 1.23% 1,948,360 0.65% 2/26/2026 FHLB Bond 3/10/2021 2,000,000 1.23% 1,970,920 0.85% 3/10/2026 FHLB Bond 3/16/2021 2,000,000 1.23% 1,964,660 0.70% 3/16/2026 FHLB Bond 3/16/2021 2,000,000 1.23% 1,967,620 0.80% 3/16/2026 FHLB Bond 6/9/2021 2,000,000 1.23% 1,983,780 1.08% 6/9/2026 FHLB Bond 6/30/2021 2,000,000 1.23% 1,977,440 1.00% 6/30/2026 FHLB Bond 7/15/2021 3,000,000 1.84% 2,975,070 1.13% 7/15/2026 FHLB Bond 7/15/2021 2,000,000 1.23% 1,985,160 0.85% 7/15/2025 FHLB Bond 8/26/2021 2,000,000 1.23% 1,969,700 0.80% 8/26/2026 FHLB Bond 8/26/2021 3,000,000 1.84% 2,968,980 1.00% 8/26/2026 FHLB Bond 8/26/2021 2,000,000 1.23% 1,969,040 0.90% 8/26/2026 FHLB Bond 9/13/2021 2,097,133 1.29% 2,055,220 0.82% 9/11/2026 FFCB Bond 9/28/2021 1,983,849 1.22% 1,956,200 0.98% 9/10/2026 FHLB Bond 9/29/2021 3,000,000 1.84% 2,962,650 1.13% 9/29/2026 FHLB Bond 9/30/2021 2,000,000 1.23% 1,967,520 0.88% 9/30/2026 FHLB Bond 9/30/2021 3,000,000 1.84% 2,963,970 1.05% 9/30/2026 FHLB Bond 9/30/2021 3,000,000 1.84% 2,961,330 1.02% 9/30/2026 FHLB Bond 10/19/2021 2,000,000 1.23% 1,969,460 1.00% 10/19/2026 FHLB Bond 11/18/2021 2,000,000 1.23% 1,995,520 1.30% 11/18/2026 FHLB Bond 12/29/2021 2,000,000 1.23% 1,999,540 0.75% 12/29/2023 CD - Goldman Sachs Bank USA 5/13/2020 250,000 0.15% 250,230 0.50% 5/13/2022 CD - American Nat'l Bank 5/20/2020 250,000 0.15% 250,145 0.40% 5/27/2022
6/3/2022
4/20/2022
4/27/2022
5/2/2022
5/3/2022
5/18/2022
5/24/2022
5/24/2022
5/25/2022
5/26/2022
6/22/2022
1/22/2022
1/28/2022
1/28/2022
2/24/2022
2/25/2022
2/26/2022
3/10/2022
3/16/2022
3/16/2022
6/9/2022
6/30/2022
1/15/2022
1/15/2022
2/26/2022
2/26/2022
2/26/2022
3/11/2022
3/10/2022
3/29/2022
3/30/2022
3/30/2022
3/30/2022
4/19/2022
11/18/2022
3/29/2022
5/13/2022
5/20/2022 5/20/2022
Sub Total/Average $ 88,005,082 54.59% $ 86,885,040 0.90% Money Market $ 19,214 0.01% $ 19,214 0.01%
Total City Managed/Average $ 156,234,438 96.47% $ 155,105,778 0.60% Bond Reserve Accounts - Held By Trustees $ 0.33% 540,945 $ 540,945 Cash/Deposits $ 1,966,608 1.21% $ 1,966,608
PARS and CALPERS CERBT Trust $ 4,187,404 2.57% $ 5,389,736 GRAND TOTAL/AVERAGE $ 162,929,396 100% $ 163,003,068

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CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF DECEMBER 31, 2021
FOR THE FISCAL YEAR OF 2021-22
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 0.21% 50,664,405 $ 31.10% 50,658,004 $ 2015 Wastewater Rev Bonds - CIP Wastewater Fund 0.21% 17,545,737 10.77% 17,543,520 Federal Issues All Funds Pooled 0.86% 81,080,982 49.76% 81,829,630 US Treasury Notes All Funds Pooled 2.15% 6,424,100 3.94% 4,555,035 Certificate of Deposits All Funds Pooled 0.45% 500,000 0.31% 500,375 Dreyfus Treas Cash Management Acct All Funds Pooled 0.01% 19,214 0.01% 19,214 SUBTOTAL $ 156,234,438 95.89% 155,105,778 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 0.01% 3 0.00% 3
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 0.01% 4 0.00% 4
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Successor Fund 0.01% 23,240 0.01% 23,240 Zions Bank - MH Ranch 2015
Blackrock Liq Funds Fed Fund -DI -2015 Agency Fund 0.01% 255,213 0.16% 255,213 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 0.01% 0.16% 262,486 262,486 SUBTOTAL 540,945 0.33% 540,945
Other Cash/Deposits
General Checking All Funds 1,929,496 1.18% 1,929,496
Workers' Comp Administrators Workers' Comp 30,000 0.02% 30,000 Petty Cash & Emergency Cash General Fund 7,112 0.00% 7,112 CALPERS CERBT - OPEB Trust 2,987,404 1.83% 3,844,890
PARS - PENSION Trust 1,200,000 0.74% ** 1,544,846
SUBTOTAL 6,154,012 3.78% 7,356,344
Total Cash and Investments $ 162,929,396 100.00% $ 163,003,068 ** As of 11/30/2021

CASH ACTIVITY SUMMARY
FY 2021-22
07/1/21 Change in 12/31/2021
Fund Type Balance Cash Balance Balance
General Fund 16,482,660 $ 560,134 $ 17,042,794 $
Community Development 972,100 (379,650) 592,450
RDA Successor Agency (except Housing) 11,666,343 (11,647,415) 18,928 Housing Successor Agency/ CDBG 4,593,710 (97,151) 4,496,559 Water - Operations 3,747,502 (742,317) 3,005,185
Water Other 8,567,976 8,770,088 17,338,063
Sewer - Operations 3,220,859 (1,095,413) 2,125,446
Sewer Other 32,031,933 23,050,146 55,082,079
Other Special Revenue 5,770,282 2,435,627 8,205,909
Streets and Capital Projects (except RDA) 40,583,676 (6,672,918) 33,910,758 Debt Service 227,953 (90,767) 137,186
Internal Service 17,977,892 998,303 18,976,195
Agency Funds (assessment dists./refundable deposits) 3,260,978 (1,263,134) 1,997,843 Total $ 149,103,863 $ 13,825,533 $ 162,929,396
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.

I certify the information on the investment reports on pages has been reconciled to the general ledger and bank statements and that there are sufficient funds to meet the expenditure requirements of the City for the next six months. The portfolio is in compliance with the City of Morgan Hill investment policy and all State laws and regulations.

Prepared by: ____________________________________ Approved by:

Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Caitlin Jachimowicz, Treasurer

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City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Five Months Ended December 31, 2021
50% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 13,485,000 13,485,000 $ 2,392,326 18% $ 2,263,415 $ 128,911 6% Property Tax - RPTTF Residual Distribution 2,144,000 2,144,000 n/a - - n/a - Property Tax - Supplemental Roll 142,000 142,000 40,520 29% 154,187 (113,667) -74% Sales Tax 10,699,601 10,699,601 3,928,016 37% 2,524,227 1,403,788 56% Public Safety Sales Tax 399,000 399,000 154,918 39% 94,154 60,764 65% Transient Occupancy Taxes 2,235,300 2,235,300 991,469 44% 624,704 366,765 59% Franchise (Refuse ,Cable ,PG&E) 2,375,000 2,375,000 524,979 22% 481,204 43,775 9% Property Transfer Tax 541,000 541,000 330,958 61% 279,304 51,654 18% TOTAL TAXES 32,020,901 32,020,901 8,363,185 26% 6,421,195 1,941,990 30%

LICENSES/PERMITS
Business License 159,135 159,135 152,787 96% 128,465 24,321 19% Other Permits 39,690 39,690 9% 2,619 3,630 1,011 39%
TOTAL LICENSES/PERMITS 198,825 198,825 156,417 79% 131,084 25,332 19%

FINES AND PENALTIES
Parking Enforcement 8,240 8,240 1,423 17% 1,728 (305) -18% Bails & Fines 75,854 75,854 18,542 24% 17,067 1,476 9%
Administrative Citations 10,331 10,331 n/a 9,803 - (9,803) -100% TOTAL FINES AND PENALTIES 94,425 94,425 19,966 21% 28,598 (8,632) -30%

OTHER AGENCIES
Motor Vehicle in-Lieu 26,026 26,026 n/a - 6,286 (6,286) -100% Other Revenue - Other Agencies 437,794 653,658 200,908 31% 162,682 38,226 23% TOTAL OTHER AGENCIES 463,820 679,684 200,908 30% 168,968 31,940 19%

CHARGES CURRENT SERVICES
Police False Alarm Charge 31,340 31,340 14,255 45% 17,598 (3,343) -19% Business License Application Review 38,007 38,007 21,753 57% 23,179 (1,426) -6% Membership Services & Rec Programs 4,238,989 4,713,801 2,093,019 44% 1,348,769 744,251 55% Facility Rentals 945,931 506,683 261,251 52% 87,830 173,420 197% Community Services 126,449 79,000 98,322 124% 4,082 94,240 2309% General Administration Overhead 1,825,440 1,825,440 916,152 50% 890,436 25,716 3% Other Charges Current Services 970,580 970,580 278,940 29% 239,516 39,424 16% TOTAL CURRENT SERVICES 8,176,736 8,164,851 3,683,692 45% 2,611,410 1,072,282 41%

OTHER REVENUE
Use of money/property 823,436 823,436 215,668 26% 187,184 28,484 15% Other Revenues 5,961,472 5,745,608 139,667 2% 285,247 (145,580) -51% TOTAL OTHER REVENUE 6,784,908 6,569,044 355,335 5% 472,431 (117,096) -25%

TRANSFERS IN
One Time Transfer 180,000 180,000 52,500 29% 102,492 (49,992) -49% Public Safety Facilities Fund 25,000 25,000 49,992 200% 12,500 37,492 300% Supplemental Law Enforcement Fund 100,000 100,000 50,000 50% 50,000 n/a - Countywide Solid Waste 324,763 649,526 325,000 50% 325,000 - n/a Streets 699,735 699,735 260,778 37% 312,673 (51,895) -17% Park Maintenance 650,000 650,000 325,002 50% 325,002 n/a - Sewer Operations 357,159 357,159 178,578 50% 177,216 1,362 1% Water Operations 357,159 357,159 178,578 50% 37,500 141,078 376% Park Development 75,000 75,000 37,500 50% 37,500 n/a
TOTAL TRANSFERS IN 2,768,816 3,093,579 1,457,928 47% 1,194,599 263,329 22% TOTAL GENERAL FUND 50,508,431 50,821,309 14,237,431 28% 11,028,285 3,209,145 29%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 699,735 699,735 260,523 37% 312,673 (52,149) -17% Interest / Other Revenue/Other Charges - - 255 n/a 544 (290) -53% 202 STREET MAINTENANCE 699,735 699,735 260,778 37% 313,217 (52,439) -17% FUND

REVENUE
SOURCE

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City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Five Months Ended December 31, 2021
50% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
FUND

REVENUE
SOURCE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 858 858 448 52% 553 (106) -19%
Police Grant/SLEF/JAG 100,000 100,000 86% 81,727 86,285 4,558 6% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 100,858 100,858 86,732 86% 82,280 4,452 5% 206 DEVELOPMENT SERVICES
Building Fees 3,195,787 3,195,787 1,246,143 39% 1,202,800 43,344 4% Planning Fees 766,776 766,776 385,253 50% 754,381 (369,128) -49% Engineering Fees 999,810 999,810 317,780 32% 258,951 58,829 23% Other Revenue/Current Charges 330,747 330,747 29% 65,150 96,587 31,437 48% 206 DEVELOPMENT SERVICES 5,293,120 5,293,120 2,045,763 39% 2,281,281 (235,518) -10% 207 LONG RANGE PLANNING 869,266 869,266 317,110 36% 330,257 (13,147) -4% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 3,173 3,173 133 4% 217 (85) -39% 215 and 216 HCD BLOCK GRANT 3,173 3,173 133 4% 217 (85) -39% 225 ASSET SEIZURE 1,931 1,931 290 15% 477 (187) -39%
229 LIGHTING AND LANDSCAPE 2,573 2,573 425 17% 469 (43) -9% 230 COMMUNITY FACILITIES DISTRICT 1,240 1,240 255 21% 256 (2) -1% 232 ENVIRONMENTAL PROGRAMS 481,008 481,008 253,883 53% 248,069 5,814 2% 234 MOBILE HOME PARK RENT STAB. 757 757 7,946 1050% 3,632 4,314 119% 235 SENIOR HOUSING 3,869 3,869 477 12% 781 (304) -39%
236 HOUSING MITIGATION 2,446,028 2,596,028 770,186 30% 1,285,121 (514,935) -40% 237 BEGIN - - 54,018 n/a 514 53,504 10409%
238 CAL HOMES - - 165 n/a 80,964 (80,799) -100%
240 EMPLOYEE ASSISTANCE 29,089 29,089 6,215 21% 7,394 (1,179) -16% 246 COUNTYWIDE SOLID WASTE 1,324,763 699,112 53% 699,112 n/a 247 ENVIRONMENT REMEDIATION 2,448 2,448 276 11% 967 (692) -71% 250 COMH-SUCCESSOR AGENCY-MHRDA 7,100,496 7,100,496 116 0% 2,262 (2,146) -95% 255 HOUSING SUCCESSOR AGENCY 215,318 215,318 277,419 129% 280,817 (3,398) -1% 260 PUBLIC ART - - 1,100 n/a - 1,100 n/a
TOTAL SPECIAL REVENUE FUNDS 17,250,910 18,725,673 4,782,400 26% 4,918,976 (136,577) -3%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,748,480 7,131,498 5,834,951 82% 1,213,369 4,621,582 381% 302 PARK MAINTENANCE 360,613 360,613 407,870 113% 50,671 357,199 705% 303 LOCAL DRAINAGE 1,675,036 1,675,036 502,561 30% 711,738 (209,177) -29% 304 LOCAL DRAINAGE/NON AB1600 80,692 80,692 86,198 107% 5,651 80,546 1425% 306 AGRICULTURE & OPEN SPACE PRESERVATION 180,385 180,385 117,445 65% 115,364 2,081 2% 308 STREET CIP 4,050,523 4,050,523 2,919,403 72% 811,727 2,107,676 260% 309 TRAFFIC IMPACT 1,468,388 1,468,388 5,923,718 403% 852,176 5,071,542 595% 315 PUBLIC SAFETY FACILITIES IMPACT 864,417 864,417 114,209 13% 28,594 85,615 299% 346 PUBLIC FACILITIES NON-AB1600 611,488 911,488 35,205 4% 417,549 (382,344) -92% 347 PUBLIC FACILITIES IMPACT 265,536 265,536 26,025 10% 105,291 (79,267) -75% 348 LIBRARY 1,077,617 1,077,617 118,417 11% 446,929 (328,512) -74% 350 UNDERGROUNDING 86,073 86,073 364,969 424% 3,239 361,730 11169% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY 591,967 591,967 29,720 5% 233,449 (203,729) -87% 360 COMMUNITY/REC IMPACT FUND 1,730,018 1,730,018 136,091 8% 694,175 (558,084) -80% 375 QUIMBY FEE 1,623,552 1,623,552 n/a - - n/a -
TOTAL CAPITAL PROJECTS FUNDS 16,414,785 22,097,803 16,616,782 75% 5,904,816 10,711,966 181%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 307,385 307,385 152,887 50% 155,217 (2,330) -2% 441 POLICE FACILITY BOND 385,639 385,639 192,222 50% 292,371 (100,150) -34% TOTAL DEBT SERVICE FUNDS 693,024 693,024 345,108 50% 447,588 (102,480) -23%

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City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Five Months Ended December 31, 2021
50% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
FUND

REVENUE
SOURCE

ENTERPRISE FUNDS
640 SEWER OPERATION
Sewer Service Fees 13,812,501 13,812,501 6,001,164 43% 5,438,561 562,603 10% Interest Income/Transfers 37,425 37,425 4,391 12% 13,049 (8,658) -66% Other Revenue/Current Charges 268,241 268,241 168,940 63% 123,068 45,872 37% 640 SEWER OPERATION 14,118,167 14,118,167 6,174,495 44% 5,574,678 599,817 11% 641 SEWER EXPANSION
Interest Income 220,194 220,194 48,389 22% 75,690 (27,301) -36% Development Impact Fee 6,845,919 6,845,919 1,589,692 23% 2,240,390 (650,698) -29% 641 SEWER EXPANSION 7,066,113 7,066,113 1,638,081 23% 2,316,080 (677,999) -29% 642 SEWER RATE STABILIZATION 195,311 195,311 80,536 41% 8,966 71,570 798% 643 SEWER-CAPITAL PROJECT 4,707,648 4,707,648 2,352,284 50% 2,228,959 123,325 6% TOTAL SEWER FUNDS 26,087,239 26,087,239 10,245,396 39% 10,128,684 116,712 1% 650 WATER OPERATION
Water Sales 15,179,148 15,179,148 6,476,259 43% 7,055,740 (579,481) -8% Meter Install & Service 25,215 25,215 33,199 132% 52,054 (18,855) -36% Transfers-In / Interest Income 546,952 546,952 58,712 11% 231,864 (173,152) -75% Other Revenue/Current Charges 585,381 585,381 635,658 109% 434,546 201,113 46% 650 WATER OPERATION 16,336,696 16,336,696 7,203,828 44% 7,774,204 (570,375) -7% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 64,003 64,003 6,990 11% 10,737 (3,747) -35% Development Impact Fee 1,782,143 1,782,143 276,467 16% 783,540 (507,073) -65% 651 WATER EXPANSION 1 1,846,146 ,846,146 283,457 15% 794,277 (510,820) -64% 652 Water Rate Stabilization 141,222 141,222 68,983 49% 31,051 37,932 122% 653 Water Capital Project 5,047,350 5,047,350 2,534,854 50% 2,438,977 95,877 4% TOTAL WATER FUNDS 23,371,414 23,371,414 10,091,123 43% 11,038,509 (947,386) -9% TOTAL ENTERPRISE FUNDS 49,458,653 49,458,653 20,336,519 41% 21,167,193 (830,674) -4%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 1,952,577 2,247,577 1,125,157 50% 942,451 182,706 19% 740 BUILDING MAINTENANCE 3,409,334 3,409,334 565,385 17% 1,713,817 (1,148,432) -67% 741 BUILDING REPLACEMENT 745,508 755,508 350,842 46% 339,794 11,048 3% 745 CIP ADMINISTRATION 1,798,889 1,798,889 562,733 31% 461,263 101,470 22% 760 UNEMPLOYMENT INSURANCE 2,513 2,513 669 27% 50,310 (49,642) -99% 770 WORKERS COMPENSATION 913,504 913,504 382,530 42% 364,034 18,496 5% 790 EQUIPMENT REPLACEMENT 1,086,223 1,086,223 566,651 52% 692,451 (125,801) -18% 791EMPLOYEE BENEFITS 1,043,858 1,043,858 304,391 29% 299,292 5,099 2% 795 GENERAL LIABILITY INSURANCE 1,504,188 1,737,188 859,660 49% 431,573 428,086 99% TOTAL INTERNAL SERVICE FUNDS 12,456,594 12,994,594 4,718,017 36% 5,294,986 (576,969) -11% TOTAL FOR ALL FUNDS 146,782,397 $ 154,791,056 $ 61,036,256 $ 39% 48,761,844 $ 12,274,412 $ 25%

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City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Five Months Ended December 31, 2021
50% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 36,381 $ 468,850 $ 181,975 $ 99,332 $ 281,307 $ 60% 178,599 $ CITY ATTORNEY 84,371 802,889 348,170 91,691 439,861 55% 328,363 CITY MANAGER 74,437 638,262 314,532 16,250 330,782 52% 248,650 HUMAN RESOURCES 73,693 830,904 343,327 - 343,327 41% 316,870

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 57,936 672,320 310,192 3,200 313,392 47% 282,387 Elections 2,576 28,180 11,904 - 11,904 42% 99,568
COUNCIL SVCS & RECORDS MGMT 60,512 700,500 322,095 3,200 325,295 46% 381,955 FINANCE 158,643 2,472,421 784,283 53,836 838,119 34% 706,480 TOTAL ADMINISTRATION 488,036 5,913,826 2,294,383 264,309 2,558,692 43% 2,160,918 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 555,627 5,648,211 2,582,909 985,192 3,568,101 63% 2,283,125 Recreation Facility Rentals 56,298 1,313,549 266,653 18,978 285,631 22% 478,485 Community Services 49,444 641,554 235,672 78,985 314,657 49% 216,174 Park Maintenance 119,911 1,179,250 528,018 57,552 585,569 50% 501,476 Environmental Services 22,496 349,129 104,637 2,240 106,877 31% 97,082 Countywide Solid Waste Program 22,705 303,550 79,614 79,614 - 26% Street Maintenance 246,878 2,662,248 1,062,124 140,793 1,202,917 45% 1,015,428 Downtown Maintenance 18,631 318,869 139,329 36,077 175,406 55% 86,597 Cable Television 3,285 34,272 16,435 16,435 - 48% 10,881 COMMUNITY SERVICES 1,095,275 12,450,632 5,015,391 1,319,817 6,335,208 51% 4,689,247 CODE COMPLIANCE 18,780 174,873 87,007 87,007 - 50% 78,344 INFRASTRUCTURE PLANNING & CONGESTION MGMT 356,583 32,931 147,923 - 147,923 41% 149,764 ECONOMIC DEVELOPMENT PROGRAMS 167,112 970,380 370,513 49,564 420,077 43% 326,864 TOTAL COMMUNITY SERVICES 1,314,099 13,952,469 5,620,834 1,369,381 6,990,215 50% 5,244,218 III. PUBLIC SAFETY
POLICE
PD Administration 173,196 1,421,383 844,585 39,091 883,676 62% 813,858 Field Operations 933,780 9,314,988 4,494,855 165,372 4,660,227 50% 4,037,292 Support Services 246,634 2,596,110 1,296,148 - 1,296,148 50% 1,093,101 Emergency Services/Haz Mat 20,806 202,072 96,279 - 96,279 48% 88,057 Special Operations 257,481 3,700,816 1,365,639 15,671 1,381,311 37% 1,469,162 Dispatch Services 187,394 1,897,873 881,958 - 881,958 46% 790,506 POLICE 1,819,291 19,133,242 8,979,464 220,134 9,199,599 48% 8,291,976 FIRE 775,253 7,788,401 3,739,327 1,725 3,741,052 48% 3,493,997 TOTAL PUBLIC SAFETY 2,594,544 26,921,643 12,718,791 221,859 12,940,650 48% 11,785,973 IV. TRANSFERS
Other 382,771 4,083,681 2,135,566 - 2,135,566 52% 285,582 TOTAL TRANSFERS 382,771 4,083,681 2,135,566 2,135,566 - 52% 285,582 TOTAL GENERAL FUND 4,779,449 50,871,618 22,769,574 1,855,549 24,625,123 48% 19,476,690

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City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Five Months Ended December 31, 2021
50% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 361 704,068 262,944 - 262,944 37% 314,785 205 PUBLIC SAFETY/SUPP.LAW 604 107,245 53,624 - 53,624 50% 3,534 206 DEVELOPMENT SERVICES FUND
Planning 218,368 1,956,314 999,022 30,101 1,029,123 53% 763,941 Building 238,001 2,233,914 1,054,611 1,745 1,056,356 47% 982,284 Engineering 150,721 1,366,129 742,429 9,321 751,750 55% 595,887 206 DEVELOPMENT SERVICES FUND 607,090 5,556,357 2,796,062 41,167 2,837,229 51% 2,342,111 207 LONG RANGE PLANNING 59,850 861,202 305,220 61,183 366,402 43% 491,615 215/216 CDBG 458 5,499 2,748 - 2,748 50% 2,682
225 ASSET SEIZURE 14,232 54,232 14,232 14,232 - 26% -
229 LIGHTING AND LANDSCAPE 19,435 168,130 74,665 15,404 90,068 54% 71,584 230 COMMUNITY FACILITIES DISTRICT 3,126 42,093 12,064 12,064 - 29% 13,100 232 ENVIRONMENT PROGRAMS 59,723 508,715 196,590 6,017 202,606 40% 195,342 234 MOBILE HOME PARK 37 449 222 - 49% 222 222
236 HOUSING MITIGATION 82,123 1,495,875 338,637 55,631 394,268 26% 190,400 240 EMPLOYEE ASSISTANCE 2,086 28,531 8,016 - 8,016 28% 8,048 246 COUNTYWIDE SOLID WASTE PROGRAM 21,663 1,324,763 509,751 244,906 754,658 57% - 250 COMH-SUCCESSOR AGENCY-MHRDA 2,327 6,939,408 489,613 489,613 - 7% 4,161,708 255 HOUSING SUCCESSOR AGENCY 100,884 1,003,785 559,099 204,167 763,265 76% 529,659 260 PUBLIC ART - 23,500 3,993 - 3,993 17% -
TOTAL SPECIAL REVENUE FUNDS 973,999 18,823,852 5,627,480 628,473 6,255,953 33% 8,324,791

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 24,489 9,738,856 3,793,933 2,820,111 6,614,044 68% 2,601,182 302 PARK MAINTENANCE 54,263 745,776 338,919 338,919 - 45% 325,002 303 LOCAL DRAINAGE 3,253 6,997,265 30,100 42,558 72,658 1% 239,118 304 LOCAL DRAIN. NON-AB1600 240 833,046 1,440 48,585 50,025 6% 142,676 306 AGRICULTURE & OPEN SPACE PRESERVATIO 2,249 5,480,009 5,398,012 5,398,012 - 99% 13,368 308 STREET CIP 21,773 6,587,142 2,852,947 131,769 2,984,716 45% 2,563,803 309 TRAFFIC IMPACT 649,840 30,480,782 6,208,028 9,096,204 15,304,232 50% 1,153,575 315 PUBLIC SAFETY FACILITIES IMPACT 21,198 565,180 119,188 119,188 - 21% 117,150 346 PUBLIC FAC.NON AB1600 16,525 1,127,968 85,563 35,822 121,385 11% 142,860 347 PUBLIC FACILITIES IMPACT 2,277 27,331 13,662 13,662 - 50% 30,623 348 LIBRARY IMPACT 18,059 216,704 109,854 109,854 - 51% 569,022 350 UNDERGROUNDING 95 139,398 570 - 0% 570 552
355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY 5,259 1,160,466 1,117,430 40,652 1,158,081 100% 948,873 360 COMM/REC CENTER IMPACT 85,977 1,454,834 192,787 324,470 517,256 36% 1,263,383 375 QUIMBY FEE - 600,000 105 - 0% 105 -
TOTAL CAPITAL PROJECTS FUNDS 905,497 66,154,756 20,262,538 12,540,170 32,802,708 50% 10,111,187

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 228,512 304,947 232,942 232,942 - 76% 231,304 441 POLICE FACILITY BOND DEBT 310,581 389,497 312,271 312,271 - 80% 304,854 TOTAL DEBT SERVICE FUNDS 539,093 694,444 545,213 - 545,213 79% 536,158

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City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Five Months Ended December 31, 2021
50% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

ENTERPRISE FUNDS
SEWER
640 SEWER OPERATIONS 863,556 14,126,884 6,501,653 195,010 6,696,664 47% 6,344,487 641 SEWER CAPITAL EXPANSION 29,674 22,987,165 257,477 524,838 782,315 3% 324,264 642 SEWER RATE STABILIZATION 95 1,138 570 - 570 50% 558 643 SEWER-CAPITAL PROJECTS 465,879 22,004,075 4,735,312 1,597,602 6,332,914 29% 2,109,414 TOTAL SEWER FUND(S) 1,359,204 59,119,262 11,495,013 2,317,450 13,812,463 23% 8,778,723 WATER
Water Operations 1,459,439 15,292,037 6,692,394 820,385 7,512,778 49% 6,689,516 Utility Billing 90,258 985,735 438,687 35,313 474,000 48% 408,705 Water Conservation 9,203 157,768 55,911 49,054 104,965 67% 32,703 650 WATER OPERATIONS 1,558,900 16,435,540 7,186,991 904,752 8,091,743 49% 7,130,924 651 WATER CAPITAL EXPANSION 60,997 2,281,063 402,470 19,783 422,253 19% 310,545 652 WATER RATE STABILIZATION 31 371 186 - 50% 186 180
653 WATER-CAPITAL PROJECTS 398,268 7,534,033 519,627 332,352 851,979 11% 121,998 TOTAL WATER FUND(S) 2,018,196 26,251,006 8,109,273 1,256,887 9,366,161 36% 7,563,647 TOTAL ENTERPRISE FUNDS 3,377,399 85,370,268 19,604,286 3,574,337 23,178,623 27% 16,342,370

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 152,186 2,612,628 882,780 952,301 1,835,081 70% 888,320 740 BUILDING MAINTENANCE 103,595 3,507,595 517,777 88,154 605,931 17% 1,146,870 741 BUILDING REPLACEMENT - 610,000 56,043 150,209 206,251 34% 45,239 745 CIP ADMINISTRATION 188,763 1,735,361 840,983 6,828 847,811 49% 788,644 760 UNEMPLOYMENT - 20,000 3,846 - 3,846 19% -
770 WORKERS COMPENSATION 29,616 876,877 672,350 672,350 - 77% 482,358 790 EQUIPMENT REPLACEMENT 76,577 1,546,014 160,115 453,280 613,395 40% 682,663 791 EMPLOYEE BENEFITS FUND 238,642 625,000 358,434 358,434 - 57% 295,244 795 GEN. LIABILITY INSURANCE 14,414 1,724,061 1,483,072 1,483,072 - 86% 1,192,755 TOTAL INTERNAL SERVICE FUNDS 803,794 13,257,537 4,975,399 1,650,772 6,626,171 50% 5,522,093 REPORT TOTAL $ 11,379,231 $ 235,172,476 $ 73,784,489 $ 20,249,301 $ 94,033,790 40% 60,313,289 $

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City of Morgan Hill
Fund Activity Summary - Fiscal Year 2021-22
For The Five Months Ended December 31, 2021 50% of Year Complete Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund 06-30-21 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 24,896,179 $ 14, $ 237,431 28% 22, $ 769,574 45% (8, $ 532,143) $ 1,855,549 $ 14,508,487 TOTAL GENERAL FUND $ 24,896,179 $ 14,237,431 28% $ 22,769,574 45% $ (8,532,143) $ 1,855,549 $ 14,508,487 202 STREET MAINTENANCE 6,241 $ 260,778 37% $ 262,944 47% $ (2,166) $ - $ 4,075205 PUBLIC SAFETY/SUPPL. LAW 195,819 86,732 86% 53,624 54% 33,108 - 228,927 206 DEVELOPMENT SERVICES (484,553) 2,045,763 39% 2,796,062 50% (750,300) 41,167 (1,276,019) 207 LONG RANGE PLANNING 1,250,193 317,110 36% 305,220 35% 11,890 61,183 1,200,901 215 / 216 CDBG 34,893 133 4% 2,748 50% (2,615) - 32,278 225 ASSET SEIZURE 143,259 290 15% 14,232 n/a (13,942) - 129,317229 LIGHTING AND LANDSCAPE 172,706 425 17% 74,665 44% (74,239) 15,404 83,063 230 COMMUNITY FACILITIES DISTRICT 137,840 255 21% 12,064 29% (11,809) - 126,031 232 ENVIRONMENTAL PROGRAMS 213,442 253,883 53% 196,590 39% 57,294 6,017 264,719 234 MOBILE HOME PK RENT STAB. 58,766 7,946 1050% 49% 222 7,724 - 66,490 235 SENIOR HOUSING 234,588 477 12% n/a - 477 - 235,065
236 HOUSING MITIGATION 5,407,291 770,186 30% 338,637 23% 431,549 55,631 5,783,209 237 BEGIN 320,727 54,018 n/a n/a 54,018 - - 374,745
238 CAL HOMES 276 165 n/a n/a - 165 441240 EMPLOYEE ASSISTANCE 62,190 6,215 21% 8,016 28% (1,801) - 60,389 246 COUNTYWIDE SOLID WASTE 699,112 11% 509,751 38% 189,360 244,906 (55,546)247 ENVIRONMENT REMEDIATION 135,927 276 11% n/a - 276 - 136,203250 COMH-SUCCESSOR AGENCY-MHRDA (493,066) 116 0% 489,613 7% (489,497) 23,240 (1,005,803) 255 HOUSING SUCCESSOR AGENCY 4,287,939 277,419 129% 559,099 56% (281,679) 204,167 3,802,093 260 PUBLIC ART 70,772 1,100 n/a 3,993 (2,893) - 67,879TOTAL SPECIAL REVENUE FUNDS $ 11,755,250 $ 4,782,400 26% $ 5,627,480 30% $ (845,080) $ 651,713 $ 10,258,457 301 PARK DEV. IMPACT FUND $ 270,918 $ 5,834,951 82% 3, $ 793,933 39% 2, $ 041,017 $ 2,820,111 $ (508,176) 302 PARK MAINTENANCE 2,815,081 407,870 113% 338,919 45% 68,951 - 2,884,032 303 LOCAL DRAINAGE 10,947,520 502,561 30% 30,100 0% 472,461 42,558 11,377,423 304 LOCAL DRAINAGE/NON-AB1600 1,268,597 86,198 107% 1,440 0% 84,758 48,585 1,304,770 306 AGRICULTURE AND OPEN SPACE PRESERVA 6,011,689 65% 5, 117,445 99% (5, 398,012 280,567) - 731,122 308 STREET CIP 3,538,596 2, 72% 2, 919,403 43% 66,457 852,947 131,769 3,473,284 309 TRAFFIC IMPACT FUND 2,217,293 5,923,718 403% 6,208,028 20% (284,310) 9,096,204 (7,163,221) 315 PUBLIC SAFETY FACILITIES IMPACT 3,650,943 13% 114,209 21% (4, 119,188 979) - 3,645,964 346 PUBLIC FACILITIES NON-AB1600 1,100,016 35,205 4% 85,563 8% (50,358) 35,822 1,013,836347 PUBLIC FACILITIES IMPACT FUND 1,034,272 26,025 10% 13,662 50% 12,363 - 1,046,635348 LIBRARY IMPACT FUND 1,487,275 11% 118,417 51% 8,563 109,854 - 1,495,838 350 UNDERGROUNDING 1,073,838 364,969 424% 570 0% 364,399 - 1,438,237 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY 181,922 29,720 5% 1, 96% (1, 117,430 087,710) 40,652 (946,439) 360 COMM/REC CTR IMPACT FUND 1,353,501 136,091 8% 192,787 13% (56,696) 324,470 972,335 375 QUIMBY FEE - n/a - 105 0% (105) - (105)
TOTAL CAPITAL PROJECT FUNDS $ 36,951,461 $ 16,616,782 75% $ 20,262,538 31% $ (3,645,756) $ 12,540,170 $ 20,765,535 420 CIVIC CENTER DEBT $ 165,528 $ 152,887 50% $ 232,942 76% (80, $ 055) $ 3 $ 85,470441 POLICE FACILITY BOND DEBT 171,762 192,222 50% 312,271 80% (120,049) 4 51,709 TOTAL DEBT SERVICE FUNDS $ 337,290 $ 345,108 50% $ 545,213 79% $ (200,104) $ 6 $ 137,179 Revenues Expenses Ending Fund Balance

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SUMMARY BY FUND TYPE
GENERAL FUND GROUP 24,896,179 $ $ 14,237,431 28% 22, $ 769,574 45% (8, $ 532,143) $ 1,855,549 $ 14,508,487 SPECIAL REVENUE GROUP 11,755,250 4,782,400 26% 5,627,480 30% (845,080) 651,713 10,258,457 DEBT SERVICE GROUP 337,290 345,108 50% 545,213 79% (200,104) 6 137,179 CAPITAL PROJECTS GROUP 36,951,461 16,616,782 75% 20,262,538 31% (3,645,756) 12,540,170 20,765,535 ENTERPRISE GROUP 75,628,757 20,336,519 41% 19,604,286 23% 732,232 3,574,337 72,786,653 INTERNAL SERVICE GROUP 14,122,216 4,718,017 36% 4,975,399 38% (257,383) 1,680,772 12,184,062 TOTAL ALL GROUPS $ 163,691,153 $ 61,036,256 39% 73, $ 784,489 31% (12, $ 748,233) $ 20,302,547 $ 130,640,372 For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.2 Amount restricted for debt service payments and AB1600 capital expansion projects as detailed in the City's five year CIP Plan and bond agreements.

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City Manager's Signature Authority
Contracts and Agreements Between $25,000 to $60,000 Entered Since 10/8/2021 to 1/12/2022 Vendor Name Desription of Service Begin Date End Date Department Amount Schaaf and Wheeler
Consulting Civil Engineers Lift Station K&F 10/11/2021 12/31/2022 E&U $59,300 HydroScience Engineers,
Inc.

Requirements, Cost and Evaluation of
Producing Purified Water 10/8/2021 12/31/2022 E&U $27,000 The St. Catherine
Conference of St. Vincent
De Paul MOU for ARPA Community Funding 11/9/2021 10/19/2022 CSD $27,518

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0 Significant
Project Updates
January 2022

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1 Housing Projects
Underway

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• 389 Apartments, including 78 very low-income
• Design Permit approved, grading underway
• http://www.morgan-hill.ca.gov/1959/Morgan-Hill-Apartments Morgan Hill Apartments
(MBK)
2

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• 101 Townhomes
• Design Permit and Building Permits approved
• Construction underway
• http://www.morgan-hill.ca.gov/1978/Monterey---City-Ventures Jasper (Monterey Gateway)
(Trumark)
3

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Crossings at Watsonville Road
(UHC)
4 • 73 units - 100% Affordable
• Approved August 2021
• Construction underway
• http://www.morgan-hill.ca.gov/2082/Watsonville-Hordness-Crossings-atMonter

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5 Housing Projects
Submitted or Pending

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Monterey-Madrone (Jemcor)
6 • 249 units - 100% Affordable – Density Bonus & SB330 • Approved October 2021
• http://www.morgan-hill.ca.gov/2096/Monterey-Madrone-AffordableHousing-Deve

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The Magnolias
(First Community Housing)
7 • 66 units - 100% Affordable – Density Bonus and SB330 • Approved November 2021
• http://www.morgan-hill.ca.gov/2142/Monterey---First-CommunityHousing-Magno

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Monterey-Manzanita Park
(Dividend)
8 • 67 units
• Environmental review underway
• http://www.morgan-hill.ca.gov/2074/Manzanita-Park

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Monterey-Kerley
(Denova Homes)
9 • 93 units
• Application submitted
• http://www.morgan-hill.ca.gov/2263/Monterey-Kerley-DeNova-Homes

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Morgan Hill Senior Housing
(Beacon)
10 • 82 units – 100% affordable - low-income senior apartments • Design Permit Approved
• Demolition completed
• http://www.morgan-hill.ca.gov/2016/Morgan-Hill-Senior-Housing

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Crosswinds
(Dividend)
11 • 269 units
• Environmental review underway
• http://www.morgan-hill.ca.gov/2042/Half-Dividend-CrosswindsResidential-Dev

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New Horizons (Morgan Hill Devco)
12 • Proposed General Plan & Zoning amendments
• 337 units
• Environmental review underway
• http://www.morgan-hill.ca.gov/2041/Hill---Morgan-Hill-Devco-LLC

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13 • Proposed General Plan amendment and
maximum of 498 units as part of Planned
Development Amendment
• Environmental
Review
underway
● http://www.morganhill.ca.gov/2069/Cochrane-Commons
Cochrane Commons
Shopping Center Phase II

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Rosewood (Brookfield)
• 120 units
• Application submitted
• City Council approved Planned Development
December 2020
• http://www.morgan-hill.ca.gov/1961/Lillian-Commons

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Spring - Giancola
15 • 23 units
• Environmental review complete
• Approved November 2021

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Tennant - Osito
16 • 16 units
• Approved April 2021
http://www.morgan-hill.ca.gov/2066/Tennant-Osito

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17 Projects
Currently Processing

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Voices Charter School
18 • Approved Conditional Use Permit
• Approved Design Permit
• Building Permit issued
• Modular Construction
• http://www.morgan-hill.ca.gov/1962/Voices-Charter-School

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DePaul Health Center
19 De Paul Health Center opened December 2020 to
treat non-acute step-down patients during the initial
Covid-19 surge. Renovations will eventually
transform De Paul into a certified “subacute care”
facility.

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20 • Five (5) industrial buildings totaling 501,000 SF
on 29 acres
• Approved June 2021
• Proposal conforms to what is allowed in Zoning
Code
• http://www.morgan-hill.ca.gov/2128/Redwood-Tech-at-101 Redwood Tech 101

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Techcon
• 45,000 SF R&D, manufacturing and office facility
• Design Permit approved
• Building permit processing
• http://www.morgan-hill.ca.gov/1963/Cochrane-Monument-Land-CoTechcon

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Lillian Commons (Rosewood)
• Planned Development includes 55-bed
hospital, a 10,000 SF medical office building,
a 4,000 SF urgent care facility, 10,000 SF of
retail space, open space and up to 150
multifamily units
• City Council approved December 2020
• http://www.morgan-hill.ca.gov/1961/Lillian-Commons

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Railroad - Goyal
• 22,400 SF
• 2 Industrial buildings
• Conditional Use Permit and Design Permit
approved
• Building permit nearing completion
• http://www.morgan-hill.ca.gov/2018/Railroad---Goyal

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Downtown Gallery – W. 2nd St.
24 •Design Permit approved
•2-story Gallery

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Cochrane Commons
Shopping Center Phase II
25 • Re-positioning as “lifestyle” center to include housing (formerly approved for 500,000 sq ft retail/multi-screen theater) ● http://www.morganhill.ca.gov/2069/Cochrane-Commons
• General Plan
amendment to
expand Mixed Use
Flex designation
submitted as part of
updated application
for Planned
Development
Amendment

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Depot-Latala/The Lumber Yard
26 •Approved Design permit
•Demo permit processing

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Zip Thru Car Wash
27 •Approved Design permit
•Approved Conditional Use Permit
•Building permit processing

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Coming Soon…
28 •Redeveloped World Oil site at Monterey and
San Pedro
•965 San Pedro – Business park with 8
single story buildings

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29 Projects
Under Construction

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• Five (5) buildings totaling 410,000 SF
• Design Permit approved
• Construction underway
• http://www.morgan-hill.ca.gov/2087/Butterfield-Technology-Park Butterfield Technology Park

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Cardinale Automotive
• 36,000 SF
• Automobile Sales and Service facility
• Construction underway

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Golden State Assembly Expansion
• 40,000 SF
• Manufacturing, warehouse, and distribution
• Construction underway

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MONTEREY RD.
• 79,000 SF Office and Warehouse building
• Construction underway
• http://www.morgan-hill.ca.gov/2055/Railroad-Level-10-Construction Level 10 Construction

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Shoe Palace Expansion
• 503,000 SF
• Shoe Palace Headquarters
• Shell construction complete, landscaping
complete, tenant improvements underway
• http://www.morgan-hill.ca.gov/1960/Shoe-Palace

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MONTEREY RD.
• 60-Room Boutique Hotel, Market Hall, Spa
• Phase I concrete construction complete
• Phase II framing last 2 floors of construction
delayed by COVID 19
Granada Hotel and Market Hall

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Evergreen Village Shopping Center
• 20-Acre Commercial Development
• Hotel, Gas Station, Skilled Nursing approved
• Entitlements processing for retail/food
• Developer working with potential future tenants
• Off site improvements completed
• http://www.morgan-hill.ca.gov/2068/Evergreen-Village

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37 Recently Completed
Projects

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Carpenters Training Center
• 55,000 SF Training facility
• Construction complete

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Applied Motion Products
• 24,000 SF Phase I
• Office, R&D, Manufacturing and Assembly
• Construction complete

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Silicon Valley Glass Relocation
• 31,000 SF new industrial building

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Sunsweet Mixed-Use Project
• 83-market rate apartments
• 8,000 SF of retail
• Construction complete, leasing underway

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Depot Station Mixed-Use Project
• 29 Housing Units and 8,000 SF of Retail
Condominiums
• Construction complete

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Granary Expansion
• 5,000 SF Retail space
• Construction complete

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Ceballos Construction
• 17,000 SF Industrial Building
• Construction complete

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Housing Element Update Information
http://www.morgan-hill.ca.gov/2063/Housing-Element-Update

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Future Business Items Teammate
Mahood
March 2022
Future Business Items Teammate
Larkin/Nguyen
Spring 2022
Bigelow/Turner
Goal Setting
Larkin Memo
Future Business Items Teammate
Carman TBD
Turner
Goal Setting
Ramirez
Memo
February 2022
Future Business Items Teammate
Turner
Goal Setting
Future Business Items Teammate
Ghione/Ramirez
March 2022
Ghione
3/16
Future Business Items Teammate
Ghione
3/16
Future Business Items Teammate
Policy Intent Review Larkin/Ramirez
March 2022
Future Business Items Teammate
Legislation Ramirez
Summer 2022
Future Business Items Teammate
Identity Theft
Info provided on
mail theft; more
info to come in 411
Borgioli requested that we ask one or both of the senators for SB 330, SB35, and SB 9 attend a town hall to answer questions and provide information to our community.

May 5, 2021
IHO follow up items, including middle income housing opportunities and IHO implementation Spring asked for a discussion/workshop on identity theft.

Martinez Beltran requested that the Parklet policy return to Council City Council Follow-up/Future Business Items
June 23, 2021
Spring asked that staff review policies to ensure that they are written as intended. Reiterated by Borgioli and Martinez Beltran; McKay reiterated Spring's request, however he asked that this work be deferred until staff can complete some of the current projects they are working on.

October 6, 2021
McKay- Look into what it would take to complete the bicycle trails network in the short term May 19, 2021
McKay- elevate discussion around how me complete bicycle path connections November 17, 2021
McKay- Asked for information on how City Council conferences are funded October 20, 2021
McKay Asked that staff bring back a discussion about how we use the Council's budget.

December 15, 2021
Martinez Beltran requested discussion on service and professional contract process and selection criteria.

Prior items: discussion regarding RFP criteria specific to women owned and minority owned businesses; review opportunity to include local preference and other criteria in RFP scoring Borgioli suggested that we talk about a supplemental documentation submission deadline and a discussion around a policy limiting the number of times a meeting can be extended.

McKay asked for a discussion on legal cases under the current City Attorney.

January 19, 2022
McKay requested that staff return to Council to discuss the community parklet.

December 1, 2021
Spring requested that staff bring forward a resolution to a proposed initiative regarding zoning. Brought forward on 1/19/22 and continued to a future meeting.

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Future Business Items Teammate
Landscaping Requirements Carman
Spring 2022
Future Business Items Teammate
Business Recovery
Ramirez
Winter 2022
Future Business Items Teammate
Ramirez
Future Business Items Teammate
Ghione
February 2022
Follow up items Teammate

8. Fee Freeze Agreement
Ramirez
Summer 2022
Future Business Items Teammate
Ramirez
March 2022
Larkin
Follow up items Teammate

4. Flavored Tobacco Ghione
Memo
Follow up items Teammate

11. Citywide Traffic Ghione
Spring 2022
Follow up items Teammate

5. Downtown Special
Events Update
Martin
Memo 2022
Annual review of Fee Freeze Program Guidelines
April 21, 2021
Martinez Beltran requested a City campaign to buy on-line or locally to create sales tax revenue (email and social media posts)
McKay asked for a review of landscaping requirements on developments along freeways and major arteries to include more trees.

April 7, 2021
Bring this item back to Council as the residential projects on 3rd street near completion (paused until COVID ends and events resume)
September 18, 2019
Traffic workshop/Vision Zero
March 6, 2019
Follow up on CCC Parking Enforcement (will coordinate with Lumber Yard Development Project) October 23, 2019
Spring asked for a conversation about how our City will look in the future as a "Smart City" Martinez Beltran asked staff to look into Mobile Cancer Screenings (paused until COVID ends; memo) October 2, 2019
December 16, 2020
Spring requested a conversation on Downtown parking (paused until end of COVID) December 2, 2020
Carr – Report back annually on the acceptance of public improvements by the City Engineer June 17, 2020

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2022 City Council
Annual Goal Setting Workshop
January 28-Page 105 of 17529, 2022
Workshop Agenda
1 Friday, January 28th
• Myers-Briggs Type Indicator
• 2021 Accomplishments
• City Council Norms, Policies, Procedures, and Protocols • Review of Sustainable Morgan Hill 2020-2021
• Review of Strategic Priorities Workplan
• Review of City Council Follow-Up and Future Business Items • Discuss Sustainable Morgan Hill 2022-2023
Saturday, January 29th
• Review Draft Sustainable Morgan Hill 2022-2023
• Fiscal Sustainability
• Development Projects Update
• On the Horizon

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City Council
MBTI
2

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2021
Accomplishments
3

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City Council
Norms
4

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City Council Policies,
Procedures, and Protocols
6

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7 City Council Ongoing Priorities
• Enhancing Public Safety
• Protecting the Environment and Preserving Open
Space and Agricultural Land
• Maintaining Infrastructure
• Supporting our Youth, Seniors, and Entire Community
• Fostering a Positive Organizational Culture
• Preserving and Cultivating Public Trust
• Preserving our Community History
• Enhancing Equity, Diversity, and Inclusiveness
• Advancing Regional Initiatives
• Advocating for Local Control
Sustainable Morgan Hill
8

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2020-2021 Strategic Priorities
• Fiscal Sustainability
• Affordable Housing and Homelessness
• Community Outreach, Engagement, and
Messaging
• Economic Development
• Transportation
All priorities viewed through the lens of global pandemic, while keeping equity, public health, and financial
responsibility in mind.

Sustainable Morgan Hill (Cont’d)
9

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Review of 2020-2021
Strategic Priorities Workplan
10

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2020-
2021
Strategic
Priorities
Workplan

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Council Follow-Up and
Future Business Items
12

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Discussion of
Sustainable Morgan Hill
2022-2023
13

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Priorities and Initiatives for
Partners 2022
14 1. Secure funding to increase the supply and affordability of housing and reform state housing laws to retain local authority.

2. Attain investments to strengthen and sustain critical infrastructure.

3. Secure increased funding and resources to prevent
homelessness and assist individuals experiencing
homelessness.

4. Strengthen disaster preparedness, resiliency, and recovery from climate change impacts through improved collaboration and resources.

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Priorities and Initiatives for
Partners 2022 (Cont’d)
15 1. Local Control Items of Interest

2. Racial Justice

3. Board Member Development

4. Climate Change

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Review City Council’s Draft
Sustainable Morgan Hill
2022-2023
16

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Fiscal
Sustainability
December 2021
Financial and Investment/
City Manager Authority Report
and
Budget Update
17

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2 Year Budget Process
18 January
1 st Year
City Council Goal Setting
Workshop
February – April
Budget Development
April
Recommended Budget Made
Available to the Public
May
Budget Workshop
June
Public Hearing and Budget
Adoption
January
2 nd Year
City Council Goal Setting
Workshop
February – June
In-depth Budget Review Process
Mid Cycle Update (Yr. 2)
Budget Adjustments, as needed

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• City Council Goal Setting – January 28 and 29
• Budget Community Townhall – March 24
• Parks and Recreation Commission Meeting – Review of CIP – April 19
• Planning Commission Meeting – Review of CIP – conformance with General Plan – April 26
• Recommended Budget to City Council and Community – April 29 • Recommended Budget Presented to City Council – May 4
• Budget Community Townhall – May 7 or 14
• City Council Budget Workshop – May 25
• City Council Budget Public Hearing – June 15
Key Budget Dates
19

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• Tax revenue increasing
• Recreation revenue gradually restoring to
pre-COVID levels
• Expenses increasing due to inflation and
contractual increases
• Continued conservative spending
General Fund Budget –
Big Picture
20

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FY 2021-22 = $15.8M $16.4M, 31% 32% of GF
General Fund – Property Tax
21

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FY 2021-22 = $10.7M $11.6M, 21% 23% of GF
General Fund – Sales Tax
22 State

6.0%
City of MH

1.0%
Local Transportation Fund

0.25%
1976 Transit

0.50%
VTA 2000 Measure A

0.50%
VTA 2008 Measure B

0.125%
VTA 2016 Measure B

0.50%
County Measure A

0.125%
Caltrain Measure RR

0.125%
Allocation of Sales Tax Rate
(Current Sales Tax Rate 9.125%)

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FY 2021-22 = $5.4M $4.6M, 10% 9% of GF
General Fund –
Recreation Services
23 Recreation
• Facility Rental Fees
• Recreation Membership Fees
• Classes

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FY 2021-22 = $2.2M, 4% of GF
General Fund –
Transient Occupancy Tax
24 Morgan Hill TOT Rate = 11%,
100% of proceeds to MH, not shared

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• Sewer operations revenue is tracking
slightly higher than budget
• Water sales revenue is slightly below
budget due to drought measures
• Finalizing water rate study
Enterprise Funds Update
25

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• 2+ months past dues higher than normal -
$635K
• Received $155K from State Water
Resources Board for water arrearages –
Between March 4, 2020 and June 15, 2021
• Working on wastewater arrearages –
program prioritizes water
Enterprise Funds Update – (Cont’d)
26

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• Community Assistance -
• Low Income Household Water Assistance Program, administered by California Department of Community Services and Development • California Arrearage Payment Program, administered by California Department of Community Services and Development
• Low Income Home Energy Assistance Program, administered by California Department of Community Services and Development • California COVID-19 Rent Relief, administered by Consumer Services and Housing Agency
Enterprise Funds Update – (Cont’d)
27

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COVID-19
Fiscal Impacts
28

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Morgan Hill Revenue Loss
29 Current Forecast (as of 1/28/22)
Revenue Type
(Amount in Millions)
Actual
FY 19-20
Actual
FY 20-21
Estimated
FY 21-22 Total
Property Tax $ (0.1) $ - $ - $ (0.1)
Sales tax (0.6) - - (0.6)
Recreation (2.0) (4.6) (4.2) (10.8)
Hotel Tax (TOT) (0.8) (1.8) (1.3) (3.9)
Development Services (Fund 206) (0.9) (0.9) (0.5) (2.3) Total $ (4.4) $ (7.3) $ (6.0) $ (17.7) Page 134 of 175
Updated General Fund Forecast
30 53% 51%
52%
47%
44% 42%
47%
41%
31%
21%
32%
27% 26% 25% 24%
24%
0%
10%
20%
30%
40%
50%
60%
70%
20-21 Actual 21-22
Amended
22-23
Forecast
23-24
Forecast
24-25
Forecast
25-26
Forecast
GF Six Year Forecast January 28, 2022 GF Six Year Forecast with Unfunded Needs GF Six Year Forecast June 17, 2020 Fund Balance Minimum Level 15% of Revenues Fund Balance Goal 25% of Revenues

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Discretionary Revenues
31

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Resources that are not legally restricted
for certain uses and can be allocated
based on City Council priorities. This
generally includes tax revenue such as
property, sales, hotel, and business
license, and the General Fund’s
unrestricted fund balance.

This is revenue that the City Council can
allocate as it wishes to fund local priorities.

Definition: Discretionary Revenues
32

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General Fund: Discretionary
Revenues
33 FY 2021-22 Amended Budget: $51.5M
Charges for Current
Services
$7.0
14%
Fines and Penalties
$0.1
0%
Other Revenue
$0.2
1%
Revenue From
Other Agencies
$6.2
12%
Tax Revenues
$33.5
65%
Total Licenses and
Permits
$0.2
0%
Transfers-In
$3.1
6%
Use Of Money And
Property
$1.2
2%

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Fiscal
Sustainability
Funding Priorities for
Local Government
34

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Local Government Priorities
35 City
• Municipal Services:
police, fire, animal
control, parks, public
works, water,
wastewater, solid
waste, community
services and general
governance.
• Regulations:

Land use, building,
codes, etc.

County
• Welfare & Social
Services
• Courts and Criminal
Justice System
• Municipal Services &
Regulations for the
unincorporated areas

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Primary Funding Sources:
• Police – City General Fund (Taxes)
• Fire – City General Fund (Taxes)
• Pavement Rehab – Statewide Gas Tax, Regional Sales Tax, City General Fund (Taxes)
• Street Maintenance – Statewide Gas Tax, City General
Fund (Taxes)
• Park Maintenance – City General Fund (Taxes)
• Downtown Maintenance – City General Fund (Taxes)
• Water/Wastewater – (Fees)
• Solid Waste – Franchise (Fees)
Funding for Municipal Services
36

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Total Annual Unfunded General Fund Needs = $4.6M
• Fire $2.3M
• Police $1.3M
• Operational loss due to RDCS Suspension $1.0M
Total Unfunded Liabilities = $61.1M
• Public Employees Retirement System (PERS) - $57.3M
• Other Postemployment Benefits (OPEB) - $3.8M
General Fund Share = 67% or $40.9M
Unfunded General Fund Needs
37

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RDCS Funding Losses
• Park Maintenance Funding
Must be replaced by General Fund in near future.
• Storm Drain System Repairs
Must be replaced by General Fund in near future
unless alternative found.
• Pedestrian Safety and Infrastructure
Repair/Replacement Funding
Programs will eventually go away.
• Agricultural and Open Space Preservation
Programs have been halted due to exhausting
funding.

Unfunded General Fund Needs
(Cont’d)
38

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Other Services Funded from the General Fund
• Economic Development
• Recreation – Non-Cost Recovery (Senior Center
and Teen Center)
• Environmental Services
• Community Promotions/Partner Organizations
Funding for Municipal Services
39

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• Should funding for Public Safety unfunded
needs, including staffing for the 3rd fire
station and additional police officers and
equipment be the top priority prior to new
services being considered during the
FY2022-23 and 2023-24 Budget process?
• Should new services be considered when
ongoing funding for basic municipal
services is not yet adequate?
Policy Questions
40

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41 Development
Projects Update
January 2022

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On the Horizon
42

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Community Outreach,
Engagement, and Messaging
43

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Where we are:
• Developing Communications, Outreach, and
Engagement Plan
• Evaluating current staffing and resources
with recommendations to come to Council in
February/March and through the budget
process
• Monitoring social media and sharing factual
information in response to mis- and disinformation
Communications
44

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Working with consultant to:
• Evaluate our current social media practices
• Review website
• Develop social media policies and best practices
• Review Communications, Outreach, and
Engagement Plan
• Develop “Morgan Hill Together,” a trust and
community building campaign
• Reach and engage diverse community members
Communications (Cont’d)
45

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Where we are going:

Implement Communications, Outreach, and Engagement Plan (Plan)
• Evaluate current use of social media
• Measure impacts and effectiveness of Plan
Implement Morgan Hill Together
• A campaign to build trust and community
o Morgan Hill Together Logo and tag line
o Morgan Hill Together Video – What Makes Morgan Hill Special o Spring Community Event in conjunction with Earth Day
o Listening Tours
o Surveys
Communications (Cont’d)
46

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Housing Element
and
Regional Housing Needs
Allocation Implementation
47

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• California has required a plan to meet housing needs
of everyone in each city/county since 1969
• One of the required Elements (or Chapter) of a
General Plan
• Includes the goals, policies, and programs relating to housing in Morgan Hill
• The California Department of Housing and
Community Development (HCD) reviews and certifies
the Housing Element to determine compliance with
state law
What is the Housing Element?
48

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• Housing cycles are now 8 years long for communities
with certified Housing Elements
• Failure to adopt a certified Housing Element will result in a number of penalties, including a requirement to
update on a much shorter timeline (4 years) and
disqualification from funding opportunities
What is the Housing Element?
(Cont’d)
49

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What is RHNA (Regional Housing
Needs Allocation)?
50 Morgan Hill Final RHNA 2023-2031
Income Group Morgan
Hill Units
Santa Clara
County Units
Bay Area
Units
Morgan Hill
Percent
Santa Clara
County
Percent
Bay Area
Percent
Very Low Income
(<50% of AMI) 262 32,316 114,442 25.3% 24.9% 25.9%
Low Income
(50%-80% of AMI) 151 18,607 65,892 14.6% 14.4% 14.9%
Moderate
Income (80%-
120% of AMI)
174 21,926 72,712 16.8% 16.9% 16.5%
Above Moderate
Income (>120%
of AMI)
450 56,728 188,130 43.4% 43.8% 42.6%
Total 1,037 129,577 441,176 100.0% 100.0% 100.0%

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51 California Housing and Community
Development (HCD) Income Limits

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Note: The Very Low Income RHNA assignment is required to be split 50/50 between very-low and extremely-low income units. There are 46 extremely-low income units that need sites.

1. Identify Sites

2. Calculate Affordability

3. Analyze Capacity
52 Very Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
RHNA 131 131 151 174 450
Pipeline 85 146 271 196 1261
Need to
Plan for 46 0 0 0 0
RHNA Capacity Planning

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27 Dedicated Housing Meetings held or
planned to date:
• City Council Workshops
• Meetings with non-profits, school district,
advocacy groups, public interface opportunities
• Planning Commission workshops and meetings
• Online (City and County Collaborative)
…many more outreach and engagement
opportunities planned
53 Housing Element Public
Outreach

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Information Resources
• Morgan Hill Housing Element Website:
http://www.morgan-hill.ca.gov/2063/HousingElementUpdate • Let’s Talk Housing Santa Clara County:
https://www.letstalkhousingscc.org/
54

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What’s Next?
55 Next Steps
• Complete “Housing Needs Assessment”
• Prepare draft Inventory of Available Sites, or
“Sites Inventory”
• Additional Community Outreach and
Engagement to come (Townhall February 10, 2022)
• Review prior Housing Element
• Housing Element Survey:
https://www.surveymonkey.com/r/JDZYJ65

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• Affordable Housing
• Regional Housing Needs Allocation (RHNA)
• Design Guidelines to meet SB 330
• RHNA-Responsive Inclusionary Housing
Ordinance
• Complete Housing Element and without need for
land use changes
• Unhoused Coordinator
Leader in Housing
56

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Telecommunications/
Broadband
57

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Telecommunications/Broadband
58 Community suffered significant loss of broadband connectivity on February 3, 2021.

What did we learn?
• Charter’s system was susceptible to complete outages from one incident on the single connection between Gilroy and Morgan Hill
• Verizon Wireless was dependent on Charter’s system for much of its connectivity
• Many residents rely only on Charter and Verizon Wireless and lost all ability to communicate from their homes and businesses
• Many residents erroneously believed that their poor service problems were solely a Charter network problem

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59 What’s different today?
• Charter reports that they have completed construction of a separate connection between Gilroy and Morgan Hill
• Verizon Wireless has nearly completed establishing redundant connections serving approximately 80% of the community
• Frontier Communications is now permitting a completely-separate fiber-based broadband system to serve the majority of the community
• Starlink offering satellite-based services that are more practical and affordable than traditional satellite services
• Community has a better understanding of community resources • Many community members have improved home networks – social media reports of poor wifi seem to be less frequent
• 5G deployment by cell companies expanded
Telecommunications/Broadband
(Cont’d)

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60 What will be different tomorrow?
• Once constructed, Frontier’s system will offer robust service in direct competition to Charter. The net effect will be better service with competition that should
contain prices
• Wireless systems continue to blossom to serve lessdense surrounding areas • Starlink will further deploy
• 5G will be ubiquitous and 6G will come
Telecommunications/Broadband
(Cont’d)

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Industrial
Preservation
61

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62 Industrial
Ordinance
Replace existing Urgency
Ordinance 2320, which
sunsets April 2022, with an
adopted Industrial
Ordinance
Place a measure on the
November 2022 Ballot for
voter affirmation of the
adopted Industrial
Ordinance
Industrial
Preservation &
Optimization Policy
Encourage Innovation and
Manufacturing
Prohibit Stand-alone
e-Commerce
Distribution/Warehousing
Prohibit Conversions from
Industrial Land to non-job
generating uses
Encourage Conversions from
Commercial Land to
Industrial Land
Zoning Clean Up
Supports Industrial
Preservation & Optimization
Policy
Minimize incompatible uses
& CUPs
Encourage Conversions from
Commercial Land to
Industrial Land
Industrial Preservation Workplan

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63 Industrial Preservation &
Optimization Policy

STRATEGY ACTIONS
Encourage the attraction and expansion of R&D, Office, and Advanced Manufacturing uses.

Marketing, Messaging & Outreach
Development of Incentive Programs
Prohibit stand-alone e-commerce Warehouse and Distribution uses. Industrial Ordinance – Nov 2022 Election Zoning Code amendments
Prohibit General Plan conversions of Industrial lands that cause a net loss of industrial employment lands.

General Plan Update
Protect existing Industrial lands and business parks by prohibiting noncompatible uses such as community assembly and recreational uses, while expanding compatible uses.

Zoning Code amendments
Encourage conversion of Commercial Lands to Industrial Lands where appropriate.

Marketing, Messaging & Outreach
City-initiated GP Conversions

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Legislative
Advocacy
64

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• City staff tracks significant litigation
o Professional organizations
o CalCities
• Resolution
o Bring support/opposition recommendations to City Council for consideration
o Mayor or CM sign letters, if conditions are met:
✓ League requests City takes position
✓ Time sensitive
✓ Consistent with Council’s strategic priorities
✓ Report out to City Council
• Legislative Roundtable
Legislative Advocacy
65

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Other Upcoming
Work Plan Items
66

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• Diversity, Equity, and Inclusion
• High Speed Rail
• Downtown
• Transportation Master Plan
• Condit Road Sports Facilities Master Plan
Other Upcoming Work Plan Items
67

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Goal Setting
Wrap Up
68

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From: D. Muirhead
To: CC Public Comment
Subject: [EXTERNAL] comment Strategic Priorities Council Goals Workshop 1/28 Date: Wednesday, January 26, 2022 9:50:38 AM
Hello City Council, City Staff, and City Residents,
This comment addresses 2020-2021 Strategic Priorities
Affordable Housing and Homelessness
...while also utilizing code compliance to protect
private and public property
I would like City Administration to be much clearer on how our residents can contribute to the identification and
cleanup of homeless encampments. As the original message below illustrates, I wanted to know if we had priority to prevent reestablishment of occupation after a site had been removed.

Now I also want to know if an apparently abandoned camp (person gone, much trash remains) can be cleaned up. Neither are mentioned in Accomplishments nor Strategic Work Plan.

Thank you for your consideration, Doug Muirhead, Morgan Hill ---------+---------+---------+---------+---------+---------+---------+---------+ I am looking for City guidance on reporting a homeless encampment and what to expect after that. There is no entry under HowDoIReport on the City web page nor on your City web page for Housing/Homeless.

The MHPD Policy Manual (December 2020) has a detailed chapter on Illegal Encampment Clean-Up (Policy 461) which mention the Police Department and City Manager as recipients of resident complaints.

The MHPD Policy Manual also has a chapter on Homeless Persons (Policy 462) which mentions a Homeless Liaison Officer.

An anonymous response to one of my questions on the December 1 Police status update to Council said this:

With the hiring of the new Housing Specialist, our Housing Services Division will be monitoring the encampments and providing resources to the unhoused community. The only role the police department will have moving forward will be to investigate any criminal matters.

All other matters from clean up to re-occupation will be the responsibility of the Housing Services Division.

In the decade that I have been paying attention to how our local government functions, I have never heard of any Encampment Clean-Ups.

I have heard of Housing Services efforts to obtain resources to provide services to the unhoused. My frustration is with City employees who do not make an effort to tell us how we can help. I do not know if this bothers anyone else.

Background: Several weeks ago the City executed a cleanup of a shelter

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and piles of trash at the Butterfield underpass area between the UPRR tracks and the overpass embankment. Within a week a new tent and collection of items appeared. The City has not responded to my question on how much effort was required to clear the large amount of material in the old camp (which had been growing since April). I had also asked if the City should not prohibit use of that area rather than waiting until a large cleanup effort would be needed following re-occupation.

Chris responded that I should contact Rebecca or the Chief if I wanted more detail since it was outside his area of expertise to reply to my questions. This was later followed by the Police status update quoted above. Thus this inquiry to Housing Services.
[which unfortunately had started the year-end hiatus early] WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

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Morgan Hill City CouncilJanuary 28, 2022

Morgan Hill City Council
January 28, 2022