Morgan Hill City Council
May 3, 2023

5 Annual Report on Military Equipment Use 2022
NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) was utilized zero (0) times operationally in 2022. Currently, the Department does not possess an NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK); however, the Police Department continues to look for grant funding.

Mobile Command Vehicle (MCV)
The Mobile Command Vehicle (MCV) was utilized ten (10) times operationally in 2022. These deployments occurred during SWAT operations and special events:
• SWAT Operations (7)
• Special Events/ Community Events (3)
Long Range Acoustic Device (LRAD)
The Long Range Acoustic Device (LRAD) was utilized operationally zero (0) times in 2022. 40 MM Launchers and Rounds
The 40 MM Launchers and Rounds were utilized one (1) time operationally in 2022. These usages are as follows:
• 02-13-22- Contact was made with the suspect in a stolen vehicle. The suspect refused to exit the vehicle or show their hands while behaving in an confrontational manner. The suspect continued to move within the vehicle, which officers had not searched. Due to the suspect's movement within the vehicle and their refusal to obey the commands of the officers, the 40MM launcher was deployed as de-escalation techniques were unsuccessful after a reasonable amount of time.

Less Lethal Shotgun
The Less Lethal Shotguns were unutilized three (3) times operationally in 2022. These usages are as follows:
• 06-21-22- Contact was made with the suspect during a SWAT operation when he barricaded himself in the vehicle. When the suspect exited the vehicle with a machete, the less lethal shotgun was deployed as de-escalation techniques were unsuccessful after a reasonable amount of time. The suspect was taken into custody.
• 11-14-22- During a domestic violence call for service, the suspect armed himself with a 2x4 board with nails and refused the officer's command to drop the weapon. The less lethal shotgun was deployed as de-escalation techniques were unsuccessful after a reasonable amount of time.

The suspect was taken into custody. Two officers deployed the less lethal shotgun.

Distraction Devices
Distraction Devices were utilized seven (7) times in 2022. In these instances, the Distraction Devices were utilized as attention-getting devices related to SWAT operations.

Chemical Agent and Smoke Canisters
Chemical Agents and Smoke Canisters were utilized one (1) time in 2022. The usage was related to a high-risk SWAT operation involving an armed and barricaded suspect that refused to surrender after lengthy negotiations.

6 Annual Report on Military Equipment Use 2022
Pepper-Ball Launcher and Related Munitions
Pepper-Ball Launcher and Related munitions were utilized one (1) time in 2022. This usage is as follows:
• 04-03-22- Contact was made with the suspect in a stolen vehicle. The suspect refused to exit the vehicle, behaved in a confrontational manner which resulted in the deployment of the pepper ball launcher as de-escalation techniques were unsuccessful after a reasonable amount of time.

Rifles
The Colt Carbine AR-15 Rifle, Colt Carbine M4 rifle, and Remington 700 Rifle were utilized operationally zero (0) times in 2022, as the Morgan Hill Police Department had zero officer-involved shootings in 2022.

7 Annual Report on Military Equipment Use 2022
Current Inventory of Military Equipment
The Morgan Hill Police Department is committed to remaining transparent about the Department's military equipment inventory and sharing the equipment's capabilities, uses, and other related information with our community and elected officials. The data provided in this report is accurate as of March 2023; however, inventory may have fluctuated by the time of this report's publication.

The inventory of controlled equipment, particularly consumable material (ammunition, diversionary devices, munitions, etc.), may fluctuate due to various factors, including but not limited to operational usage, storage deterioration, training, maintenance, etc. expiration, and replenishment expiration The following is a list of the various types, descriptions, and guidelines for the usage of military equipment currently acquired by the Department:
*NOTE: The descriptions and source photos in this report are for military equipment descriptive purposes only and are not endorsed by the City of Morgan Hill or the Morgan Hill Police Department of a product or vendor.

8 Annual Report on Military Equipment Use 2022
Military Equipment Categories
Assembly Bill 481 created Government Code 7070, which designated 15 categories of items deemed "military" or more accurately defined as controlled equipment:
* Category
1:

Unmanned, remotely piloted, powered aerial or ground vehicles * Category
2:

Mine-resistant ambush-protected vehicles or armored personnel carriers * Category
3:

High mobility multipurpose wheeled vehicles (HMMWV), two-and-onehalf-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached
Category
4:

Tracked armored vehicles that provide ballistic protection to their occupants
* Category
5:

Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units Category
6:

Weaponized aircraft, vessels, or vehicles of any kind
* Category
7:

Battering rams, slugs, and breaching apparatuses that are explosive in nature
Category
8:

Firearms and ammunition of .50 caliber or greater, excluding standardissue shotguns and standard-issue shotgun ammunition * Category
9:

Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns
* Category
10:

Any firearm or firearm accessory that is designed to launch explosive projectiles
* Category
11:

Noise-flash diversionary devices and explosive breaching tools * Category
12:

Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray
Category
13:

TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices
* Category
14:

Kinetic energy weapons and munitions
Category
15:

Any other equipment as determined by a governing body or a state agency to require additional oversight
*Indicates a category of military equipment previously approved by the governing body and utilized by the Morgan Hill Police Department.

9 Annual Report on Military Equipment Use 2022
Unmanned Aerial Systems (UAS) (Category 1)
An unmanned aerial system can sustain direct flight, whether remotely controlled or via preprogramming. All the attached systems are designed for gathering information via photography, recording, or any other means.

Capability: The UAS can be deployed when an overhead view would assist officers or incident commanders with planning and responding to a situation. Types of situations include but are not limited to, infrastructure damage assessments, major traffic collision investigations, search for missing persons, natural disaster management, crime scene photography, SWAT, tactical or other public safety and lifepreservation missions, and/or in response to specific requests from local, State, or Federal fire authorities for fire response and/or prevention. All UAS used by the Department is used in compliance with all federal, state, and local laws.

Usage: Use is established under Morgan Hill Policy Manual Section 613 and FAA Regulation 14 CFR Part 107. It is the policy of the Morgan Hill Police Department to utilize UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, pursuant to State and Federal law. UAS usages include the collection of evidence in the form of aerial photography/video in support of an investigation (i.e., shooting scenes, homicide scenes); support of SWAT and Patrol during high-risk, tactical, or other public safety life preservation missions (i.e., interior visual assessments of structures or outdoor areas to gain intelligence prior to officers entering a dwelling or contacting a potentially armed or a resistive subject that may be hiding); to conduct aerial searches for missing persons; and provide aerial observation to assist in managing natural disasters (i.e., fires, floods, storms) or in any other manner to preserve life and enhance public safety.

Training Requirements: All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. Although not required by POST or the FAA, officers attend a 20- hour internal training course. Course topics include terminology, proper and safe flying techniques, privacy concerns, laws, and the Department's UAS policy review.

10 Annual Report on Military Equipment Use 2022
The Department currently utilizes the following UAS:

Skydio Two
Manufacturer: Skydio
Manufacturer Description: The Skydio 2+ weighs approximately 800 grams and is able to record video with approximately 27 minutes of flight time. This is a remotely operated battery-powered or autonomist aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator.

Cost $1,000 each
Quantity 1
Lifespan 3-5 Years
Funding Source Department Funds

11 Annual Report on Military Equipment Use 2022
Armored Vehicle (Categories 2 & 3)
Commercially produced 4-wheel drive vehicle designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

Capability: The Medevac is primarily used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, highrisk rescue operations, training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and to delivering equipment in high-risk environments.

The Medevac can also be used to conduct rescue missions during disasters. Additionally, the vehicle is utilized for community engagement efforts and other applications deemed appropriate.

Usage: Use is established under Morgan Hill Policy Manual Section 708. It is the policy of the Department to utilize the armored vehicle only for official law enforcement purposes and pursuant to State and Federal law.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. POST certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

12 Annual Report on Military Equipment Use 2022
The Department currently utilizes the following Armored Vehicle:
2010 LENCO Bearcat MEDEVAC, G2
Manufacturer: LENCO
Manufacturer Description: The Lenco BearCat Medevac, also known as the Armored Rescue Vehicle (ARV), was designed to meet the combined requirements of SWAT & Tactical Emergency Medical Service Teams. The Medevac can be used as an armored Response & Rescue SWAT truck for dangerous callouts and is equipped to provide Tactical EMS with a safe & effective environment to deal with trauma cases. It seats 10-12 personnel with an open floor plan that allows for the rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor. The current Lenco BearCat utilized by the Department is owned by the Santa Clara County Sheriff's Office and is obtained through a mutual aid request.

Cost $310,000
Quantity Mutual Aid
Lifespan 25 Years
Funding Source Grant Funding

13 Annual Report on Military Equipment Use 2022
NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) (Category 4)
Commercially produced Caterpillar tractor designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

Capability: The ROOK is primarily used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, high-risk rescue operations and training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and to delivering equipment in high-risk environments.

The ROOK can also be used to conduct rescue missions during disasters. Additionally, the vehicle is utilized for community engagement efforts and other applications deemed appropriate.

Usage: Use is established under Morgan Hill Policy Manual Section 709. It is the policy of the Department to utilize the armored vehicle only for official law enforcement purposes and pursuant to State and Federal law.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. POST certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

14 Annual Report on Military Equipment Use 2022
The Department will be seeking grant funding for the following Armored Vehicle:

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) Manufacturer: NIJ
Manufacturer Description: ROOK is a custom "armored critical incident vehicle" built on the chassis of a CAT Bulldozer manufactured by Ring Power. The ROOK is built to increase job safety, versatility, and mission-specific response. The ROOK is equipped with powerful mission-specific attachments. The ROOK is capable of being used in tight areas both inside and outside, where traditional armored vehicles may not be able to enter.

Cost N/A
Quantity N/A
Lifespan 25 Years
Funding Source Grant Funding

15 Annual Report on Military Equipment Use 2022
Mobile Incident Command Vehicle (Category 5)
A completely self-contained command post designed to provide shelter, access to department computers, and restroom facilities for extended events. This vehicle can also manage/facilitate preplanned or significant events requiring on-site planning and incident command personnel.

Capability: As a mobile base of operation, this vehicle contains specialized command, control, and communications equipment that can be used during critical incidents, large events, natural disasters, and community events. The command vehicle is equipped to function as a fully operational mobile Public Safety Answering Point (PSAP). It will serve as a backup to the existing Dispatch Center in the Police Department.

Usage: The command vehicle shall be used by trained personnel in a manner consistent with Department policy and training. Furthermore, only personnel who have completed the Departmental training and are properly licensed will be allowed to drive the command vehicle.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. POST certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

16 Annual Report on Military Equipment Use 2022
The Department currently operates the following MCVs:

Mobile Incident Command Vehicle
Manufacturer: LDV, Inc.

Manufacturer Description: The Mobile Command Vehicle (MCV) is a fully functioning Mobile Public Safety Answering Point (PSAP) and is a backup to our existing Dispatch Center. The MCV is a shared asset used by the Morgan Hill Police Department and the Gilroy Police Department during critical incidents, pre-planned large events, searching for missing persons, natural disasters, and community events.

Cost $ 690,132
Quantity 1
Lifespan 25 Years (Chassis)
6 Years (IT Systems)
Funding Source Grant Funding/
Department Funds

17 Annual Report on Military Equipment Use 2022
Long Range Acoustic Device (LRAD) (Category 13)
Long Range Acoustical Device (LRAD) is a high-intensity directional array for long-range, crystal clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

Capability: Featuring an extended voice broadcast range of 600 meters, the LRAD 100X ensures voice messages are heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 100X to provide several hours of clear, continuous communication from a single battery charge.

Usage: To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects/ K9 deployments, etc.). The LRAD may also be used to issue a warning tone. Authorized Use: The LRAD shall only be used by officers trained in its deployment and used consistently with Department policy and training.

Training Requirements: All operators receive training prior to operating any of the LRAD's in the field to ensure proper deployment. It is the policy of the Morgan Hill Police Department to utilize the LRAD only for official law enforcement purposes and pursuant to State and Federal law.

18 Annual Report on Military Equipment Use 2022
The Department currently operates the following LRADs:

Long Range Acoustical Device (LRAD)
Manufacturer: LRAD
Manufacturer Description: Featuring an extended voice broadcast range of 600 meters, the LRAD 100X ensures voice messages are heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 100X to provide several hours of clear, continuous communication from a single battery charge.

Cost $ 17,558
Quantity 1
Lifespan 25 Years
Funding Source Grant Funding

19 Annual Report on Military Equipment Use 2022
40 MM Less-Lethal Launchers and Munitions (Categories 10, 12, & 14) A single-shot impact launcher can fire an array of less-lethal 40mm rounds.

Capability: De-escalate situations using less-lethal force and gain compliance from a safe distance. 40MM Less-Lethal Launchers have an effective range of up to 20 yards.

Usage: The 40mm less-lethal launcher may be deployed to gain compliance or de-escalate conflicts to help prevent a situation from becoming a lethal force situation. The system's effectiveness provides time and distance between officers and a suspect, reducing the threat's immediacy and allowing further deescalation. This system can be used to address self-destructive/suicidal, dangerous, and/or combative individuals; to gain a tactical advantage from a distance (i.e., breaking a window to get an unobstructed view of an individual or disabling a security camera); against potentially vicious animals; and for riot/crowd control and/or civil unrest incidents where the use of the 40mm is objectively reasonable.

Training Requirements: Sworn members utilizing 40MM less-lethal chemical agents or impact rounds are trained in their use by POST-Certified less-lethal chemical agent instructors. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

20 Annual Report on Military Equipment Use 2022
The Department utilizes the following 40 MM Less-Lethal Launcher and Munitions:

Defense Technologies 40 MM Single Shot Launcher #1425
Manufacturer: Defense Technology
Manufacturer Description: The 40MM Single Launcher is a tactical single-shot launcher that features an adjustable Integrated Front Grip (IFG) with a rail-mounted holographic sight. It will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40MM less lethal round up to 131 feet and is only authorized to be used by trained personnel.

The Department currently possesses the following 40mm munitions:

Defense Technology 40mm Exact Impact Sponge Round #6325 Manufacturer: Defense Technology
Manufacturer Description: A less-lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose-built 40mm launcher with a rifled barrel at 325 FPS. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. The 30-gram foam projectile delivers 120 ft/lbs of energy on impact.

Cost $810 each
Quantity 5
Lifespan 25 Years
Funding Source Department Funds
Cost $32 each
Quantity 69
Lifespan 5 Years
Funding Source Department Funds

21 Annual Report on Military Equipment Use 2022
Defense Technology 40MM Direct Impact Reloadable Training Kit #6530 Manufacturer: Defense Technology
Manufacturer Description: The 250-piece Direct Impact Reloadable Training Kit allows realistic training to be conducted at a fraction of the cost of using operational rounds. These reusable projectiles can be reloaded by hand in the field in less than 10 seconds without the need for presses or other reloading equipment. These rounds are not for use on humans.

Cost $1342 each
Quantity 1 kit
Lifespan No Expiration
Funding Source Department Funds

22 Annual Report on Military Equipment Use 2022
Less-Lethal Shotgun and Munitions(Categories 9 & 14)
The less-lethal shotgun is a standard Remington Model 870, 12-gauge shotgun that has been converted to fire bean bag rounds as an alternative to lethal force when appropriate. The less-lethal shotgun has a distinctive, orange-colored stock and foregrip to distinguish it from lethal weapons.

Capability: The less-lethal shotgun can fire a 12-gauge Super-Sock Bean Bag Round with a maximum effective range of seventy-five (75) feet. The weapon system's range helps maintain space between officers and a suspect, reducing the threat's immediacy, which is a principle of de-escalation.

Usage: The less-lethal shotguns can be deployed to de-escalate conflict and reduce the need for lethal force. The system's effectiveness allows time and distance between officers and a suspect, reducing the threat's immediacy and allowing further de-escalation. This system can be used to address selfdestructive/suicidal, dangerous, and/or combative individuals, to gain a tactical advantage from a distance (i.e., breaking a window to get an unobstructed view of an individual or disabling a security camera), against potentially vicious animals, riot/crowd control and/or civil unrest incidents where the use of the 40mm less lethal shotgun is objectively reasonable.

Training Requirements: All officers must complete a minimum of two hours of department training before deploying the less lethal shotgun. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

23 Annual Report on Military Equipment Use 2022
The Department possesses the following Less Lethal Shotguns and Munitions:

Mossberg 500 Less Lethal 12 Gauge Shotgun
Manufacturer: Mossberg
Manufacturer Description: The Mossberg 500 Less Lethal Shotgun is used to deploy the less lethal 12- gauge Super-Sock Beanbag Round up to a distance of 75 feet. The weapon system's range helps maintain space between officers and a suspect, reducing the immediacy of the threat, a principle of consistent deescalation.

Combined Systems Inc. Super-Sock Bean Bag Round #2581
Manufacturer: Combined Systems Inc.

Manufacturer Description: A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange buttstock and fore-grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (10) feet. The maximum effective range of this munition is up to 75 feet from the target.

Cost $553.00 each
Quantity 10
Lifespan 25 Years
Funding Source General Funds
Cost $32/box
Quantity 13 Boxes
(25 Rounds per box)
Lifespan No Expiration
Funding Source General Funds

25 Annual Report on Military Equipment Use 2022
Diversionary Devices (Category 11)
A handheld device that can be deployed to emit a flash, sound, and/or smoke.

Capability: To produce atmospheric overpressure and brilliant white light that can cause short-term (6 to 8 seconds) physiological/psychological, sensory deprivation to give officers a tactical advantage. A diversionary device is ideal for distracting dangerous suspects during apprehensions, hostage rescues, room entry, or other high-risk arrest situations.

Usage: Diversionary devices shall only be used by officers who have been trained in the proper use.

These devices can be deployed in hostage and barricaded subject situations; in high-risk (search/arrest) warrant services where there may be hazards to officers; during other high-risk situations where the use would be advantageous in preserving life and/or increase officer safety; and during training exercises.

Training Requirements: Officers must attend diversionary device training before using this equipment.

POST certified instructors provide training in the safe handling, deployment, and documentation of the use of this equipment.
*Note: In some instances, diversionary devices can only be ordered in minimum quantities. As a result, our inventory may occasionally exceed the needed amounts.

26 Annual Report on Military Equipment Use 2022
The Department currently possesses the following Diversionary Devices:

Combined Systems Inc. (CTS) Flash Bang, Steel Body-7290 Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The CTS 7290 is the standard for diversionary Flash-Bang devices. The patented design of the 7290, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output. The 7290 produces a 165-180db and 6-8 million candela of light output.

Special tactical units use Flash Bangs during hostage rescues and high-risk warrants. It is an ATFcontrolled Class-C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.

Cost 47.60 per
Quantity 22 in stock/ purchased
cases of 12
Lifespan 5 Years
Funding Source Department Funds

27 Annual Report on Military Equipment Use 2022
Rifles and Munitions (Category 9)
The rifle is a long-barreled firearm designed for greater accuracy over a long distance.

Capability: The rifle allows officers to engage hostile suspects from distances far greater than their handguns. The standard-issued rifles can have an effective range of 600 yards and offer increased accuracy over a handgun. However, rifles are not appropriate for every situation.

Usage: Officers may deploy the rifle in any circumstance where the officer can reasonably expect the rifle to be needed. Examples of some general guidelines for deploying the rifle may include, but are not limited to, the following:
• Situations where the officer reasonably anticipates an armed encounter. • When an officer is faced with a situation that may require the delivery of accurate and effective shot placement at long range.
• Situations where an officer reasonably expects the need to meet or exceed a suspect's weaponry. • When an officer reasonably believes there may be a need to deliver accurate shot placement on a barricaded suspect or a suspect with a hostage.
• When an officer reasonably believes a suspect may be wearing body armor.

Training Requirements: Officers must complete a 16-hour POST-approved training course before deploying a rifle. Officers are required to pass a qualification course annually. POST certified instructors teach the course.

28 Annual Report on Military Equipment Use 2022
The Department currently possesses the following rifles and munition:

Colt Tactical Carbine Model AR-15A3
Manufacturer: Colt
Manufacturer Description: A rifle that fires an intermediate-power cartridge (.223) is more powerful than a standard pistol but less powerful than a standard rifle. Rifle and has a 16" barrel. The magazine holds 30 rounds, and the rifle has a collapsible stock. The carbine allows officersto engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, AR-15 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation.

Colt Tactical Carbine Model M4
Manufacturer: Colt
Manufacturer Description: A rifle that fires an intermediate-power cartridge (.223) is more powerful than a standard pistol but less powerful than a standard rifle. Rifle and has a 16" barrel. The magazine holds 30 rounds, and the rifle has a collapsible stock. The carbine allows officers to engage hostile suspects at distances generally greater than the effective distance of their handguns.

Additionally, AR-15 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation.

Cost $1,099 each
Quantity 44
Lifespan Ten years
Funding Source Department Funds
Cost $2,027 each
Quantity 8
Lifespan Ten years
Funding Source Department Funds

29 Annual Report on Military Equipment Use 2022
Remington Model 700 P Bolt Action Rifle
Manufacturer: Remington
Manufacturer Description: A semi-automatic shoulder-fired rifle with precision optics that fires a .308 Winchester cartridge. The .308 rifle allows SWAT Snipers to accurately engage hostile suspects at great distances. The .308 rifles are used exclusively by officers assigned to the SWAT Sniper Team. These rifles are typically deployed with the SWAT Sniper Team during high-risk SWAT operations and special events or instances wherein Sniper Over Watch Teams are needed.

The Department currently possesses the following rifle munitions:

Federal American Eagle 9MM Luger 147 GR Full Metal Jacket Manufacturer: Federal
Manufacturer Description: This Federal American Eagle 9mm Luger ammunition is loaded with a 147- grain Full Metal Jacket bullet. The Full Metal Jacket bullet is for range practice and reducing fouling in the barrel. The jacket extends from the nose to the base, preventing bullet expansion and barrel leading. This ammunition is new production, non-corrosive ammo, featuring brass cases, boxer primed, and is reloadable.

Cost $1099 each
Quantity 1
Lifespan Ten years
Funding Source Department Funds
Cost $295/ Case
Quantity 13 Cases
Lifespan No Expiration
Funding Source Department Funds

30 Annual Report on Military Equipment Use 2022
Speer Gold DOT .223 62 Grain (GR) Rifle Round
Manufacturer: Speer Gold
Manufacturer Description: Remington ammo made by Speer is re-loadable, features nickel-plated brass cases and Boxer primers, and this is a non-corrosive round. In addition to its remarkable strength, Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity of jacket thickness. The Gold Dot LE ammunition joins the jacket and core one molecule at a time; thanks to this, Speer eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Speer Gold DOT .223 55 Grain (GR) Rifle Round
Manufacturer: Speer Gold
Manufacturer Description: Remington ammo made by Speer is reloadable, features nickel-plated brass cases and Boxer primers, and this is a non-corrosive round. In addition to its remarkable strength, Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity of jacket thickness. The Gold Dot LE ammunition joins the jacket and core one molecule at a time; thanks to this, Speer eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Cost $260 Case
Quantity 25 Cases
Lifespan No Expiration
Funding Source Department Funds
Cost $260/ Case
Quantity 88 Cases
Lifespan No Expiration
Funding Source General Fund

31 Annual Report on Military Equipment Use 2022
Hornady .308 Winchester A-Max Tap Rifle Round
Manufacturer: Hornady
Manufacturer Description: This law enforcement cartridge offers match accuracy with a high ballistic coefficient providing superior long-range performance. This load demonstrates expansion and fragmentation similar to the 168-gr. load, but with a noticeable increase in penetration and retained bullet weight. This bullet penetrates glass with minimal deflection and exhibits excellent expansion and fragmentation characteristics.

Cost $433 Case
Quantity 4 Cases
Lifespan No Expiration
Funding Source General Fund

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Chemical Agents and Smoke Canisters (Category 12)
Canisters containing non-lethal chemical agents and/or smoke that are released when deployed.

Capability: Chemical agent and smoke canisters have a variety of individual capabilities and applications. Chemical agents and smoke canisters carry the agent into the environment in a variety of methods, including but not limited to powder, a liquid mist, smoke, pyrotechnic devices, and vapor aerosols. Exposure to chemical agents normally causes no lasting effects. This equipment has indoor and outdoor capabilities and uses.

Usage: The use of chemical agents causes mucous membranes and exposed skin to become inflamed, resulting in a burning sensation. It provides a temporary respiratory effect and induces discomfort on the skin. Chemical agents and smoke canisters may be utilized during confrontations with violent or potentially violent suspects as a less lethal option to assist with dispersing violent crowds and/or for the arrest of suspects. Smoke canisters are used to create a diversion or conceal the movement of a tactical team.

Training Requirements: Sworn members utilizing chemical agent canisters are certified by POST less lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, terminology, and documentation for the use of this equipment.

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The Department currently possess chemical agents:

Combined Systems Inc. (CTS) 6210-R Red Smoke
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: White and colored smoke grenades obscure tactical movement, signaling or marking a landing zone.

Outdoor Tactical Grenade CS- 8230
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: 8230 – The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. It can be hand thrown or launched.

Specifically for outdoor use, and it should not be deployed on rooftops, in crawl spaces, or indoors due to fire-producing capability.

Cost $45.85 per
Quantity 23 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 26.40 per
Quantity 31 in stock
Lifespan 5 Years
Funding Source General Fund

34 Annual Report on Military Equipment Use 2022
40 MM Frangible Impact-CS Powder-4530
Manufacturer: Combined Systems Inc.

Manufacturer Description: 40MM multi-effect munition delivering greater energy on the target with extreme accuracy and simultaneously dispersing a cloud of irritant or marking powder.

Launching Cup attachment
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The LC6 Launching Cups are designed for the 6200 series grenades. These can be fired from most 12ga smooth-bore shotguns. The cups can be attached to virtually any 12ga shotgun, and the munition is launched with our model 2600 launching cartridge.

Cost 30.00 per
Quantity 58 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 100.00 per
Quantity 2 in stock
Lifespan
Funding Source General Fund

35 Annual Report on Military Equipment Use 2022
Pepper-Ball Launcher and Projectiles
A device that discharges projectiles containing non-lethal chemical agents is released when deployed.

Capability: The Defense Innovation is a compressed-air powered launcher designed to fire non-lethal Pepper-Ball projectiles.

Usage: To limit the escalation of conflict where deployment of lethal force is prohibited or undesirable.

Situations for the use of the less-lethal weapon systems may include but are not limited to:

1. Self-destructive, dangerous, and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

Training Requirements: Sworn members utilizing Pepper-Ball launchers are trained in the use by POSTcertified less-lethal and chemical agents instructors.

36 Annual Report on Military Equipment Use 2022
The Department currently possesses the following Pepper-Ball Defense Innovations Pepper-Ball Launcher
Manufacturer: Defense Innovations
Manufacturer Description: The Defense Innovation is a compressed-air powered launcher designed to fire non-lethal Pepper-Ball projectiles. A device that discharges projectiles containing non-lethal chemical agents is released when deployed. The Pepper-Ball Defense Innovation is a single feed system with the use of a Hopper.

Pepper-Ball Projectiles
Manufacturer: Defense Innovations
Manufacturer Description: The basic Pepper-Ball projectile contains 2% PAVA pepper powder and is designed for direct impact and area saturation, especially in confined interior spaces. The projectile contains 0.5% PAVA Powder. The projectile is discharged from a Pepper-Ball Launcher and has a 200-500 FPS velocity.

Cost $350.00
Quantity 2
Lifespan 20 years
Funding Source General Fund
Cost $75.00
Quantity 2
Lifespan Three years
Funding Source General Fund

37 Annual Report on Military Equipment Use 2022
Training Summary
Safely using certain military equipment requires ongoing training to maintain proficiency and required certifications. While the Department conducts most ongoing training internally through the Personnel and Training Division, external training courses and services are also necessary.

Training courses can vary year-to-year, depending on operational needs and State or Federal mandates.

Consumable and non-consumable equipment are often used during training to ensure competency during actual operational use. Funding sources for training are included in the Police Department's operating budget, or through grant funding.

38 Annual Report on Military Equipment Use 2022
Equipment Costs
The following table summarizes equipment-related expenditures for the calendar year 2022 and the projection of expenses for the calendar year 2023. Equipment expenditures include the acquisition of new equipment, the replacement of damaged equipment, and the ongoing maintenance of the controlled equipment.

Equipment Type Annual Maintenance
(2022)
Projections
(2023)
Unmanned Aircraft System $0 $0
Armored Vehicles N/A N/A
The ROOK N/A N/A
Mobile Incident Command $12,000 $12,000
Long Range Acoustical
Device (LRAD) $0 $400
40 mm Less-Lethal
Launchers $250 $250
Less-Lethal Shotguns $500 $500
Diversionary Devices $570 $570
Rifles $2,600 $2,600
Chemical Agents and
Smoke Canisters $0 $0
PepperBall Launchers $100 $100
TOTAL $16,320 $16,420

39 Annual Report on Military Equipment Use 2022
Fiscal Impact
The Morgan Hill Police Department is budgeted for 65 full-time employees, including 42 full-time sworn officer positions and 25 full-time professional staff positions. During Fiscal Year 2022/2023, the Police Department had an operating budget of $21,305,308.

Although the City of Morgan Hill adopts its operating budget on a two-year fiscal basis (beginning July 1), the cost of military equipment expenditures is reflected in this report for the calendar year 2022 as required by Assembly Bill 481.

In 2022, the Morgan Hill Police Department spent approximately $16,320 for controlled equipment.

Some expenditures on military equipment were funded through State or Federal grants reducing financial impact on the Department's operating budget. The total expenditures represent only 0.0007% of the Police Department's operating budget.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Controlled Equipment
Budget
Non-Employee Services Employee Services
Military Equipment Funds

40 Annual Report on Military Equipment Use 2022
Projected Acquisitions for 2023
Although most acquisitions can be anticipated, the unanticipated replacement of existing military equipment may be necessary due to loss or damage. Replacement of these items will be handled on a case-by-case basis dependent on operational need and in compliance with department policy for acquiring controlled equipment.

Consumable Military Equipment
Consumable military equipment acquisitions for 2023 will remain consistent with current replenishment schedules and policies. Acquisitions will only restore quantities previously approved by the governing body.

Categories of consumable military equipment include:
• Ammunition – all calibers
• Chemical Agent and Smoke Canisters
• Specialty Munitions (40mm Munitions and Less Lethal Munitions) • Diversionary Devices

41 Annual Report on Military Equipment Use 2022
Non-Consumable Controlled Equipment
Lanco G3 Bearcat
The Department is seeking to purchase a Lanco Bearcat G3. A Bearcat vehicle is needed in south county to help both agencies enhance the ability to provide protection and rapid response during emerging incidents. There is no dedicated bearcat vehicle in south county. When a Bearcat vehicle is needed, a mutual aid request must be made, adding to the delay in response to a critical incident. As a result, any response to such an incident would be delayed.

The department is exploring options for funding a Lanco Bearcat. The projected cost for the equipment is listed below:

Lifespan: 25 years
Fiscal Impact: The annual maintenance for a Lanco G3 Bearcat will be approximately $5,000 a year.

Training: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. POST certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The Department seeks to purchase an NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK). The ROOK will primarily be used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, highrisk rescue operations and training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and to delivering equipment in high-risk environments. The ROOK can also be used to conduct rescue missions during disasters. Additionally, the vehicle is utilized for community engagement efforts and other applications deemed appropriate.

Manufacturer Name and Model Category Quantity Cost
Lanco G3 Bearcat 2 & 3 1 $375,000
TOTAL: $375,000

42 Annual Report on Military Equipment Use 2022
The Department is exploring options for funding a ROOK. The projected cost for the equipment is listed below:

Lifespan: 25 years
Fiscal Impact: The annual maintenance for a ROOK will be approximately $8,000 a year.

Training: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. POST certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

Manufacturer Name and Model Category Quantity Cost
NIJ Level IV Armored Caterpillar MultiTerrain Loader (The ROOK)4 1 $400,000 TOTAL: $400,000

43 Annual Report on Military Equipment Use 2022
Department Transparency
The Morgan Hill Police Department strives to provide transparency on police activities, department policies, agency practices, and the use of controlled equipment to build trust and confidence and enhance community relationships.

Military Equipment Coordinator Report
Although the Department remains transparent with our community, we may occasionally receive complaints about our policies, practices, and/or the use of controlled equipment. The Morgan Hill Police Department is committed to completing thorough and fair investigations of complaints. Resolving complaints fairly, impartially, and expeditiously helps maintain community trust and ensures the Morgan Hill Police Department will continue to provide superior service to our community.

The Morgan Hill Police Department has a designated Military Equipment Coordinator responsible for conducting military equipment inspections and audits to ensure compliance with Assembly Bill 481. The Military Equipment Coordinator is also the designated point of contact for receiving complaints from the community and tracking policy violations related to the use of controlled equipment.

Inventory
The Military Equipment Coordinator conducted an inventory check and identified military equipment not included in the inventory itemization reported in 2022. The inventory itemization in this report has been corrected to reflect the equipment not previously included.

Complaints
In 2022, The Morgan Hill Police Department received zero complaints from the community about the use or possession of military equipment.

Policy Violations
The Morgan Hill Police Department did not identify any policy violations related to the deployment or use of military equipment for the calendar year 2022.

44 Annual Report on Military Equipment Use 2022
Conclusion
The Morgan Hill Police Department is able to better protect our community by enhancing public and officer safety through the use of military equipment outlined in this report. Although military equipment is utilized infrequently, it must be readily available in rapidly evolving and dynamic situations where such equipment can effectively be used for public safety threats.

When deciding how military equipment is funded, acquired, or used, the Morgan Hill Police Department considers the public's welfare, safety, and civil liberties. This annual military equipment report reaffirms the Department's commitment to be transparent, provide information to our communities, and elected officials and ensure compliance with the law.

The Department seeks meaningful public input in using military equipment in our community. Inquiries, complaints, or concerns can be submitted to the Morgan Hill Police Department's Military Equipment Coordinator via email at [email protected] .

For more information, please visit the police department's website at www.morganhill.ca.gov/129/Police .

45 Annual Report on Military Equipment Use 2022
Appendix
Definitions

1. Governing Body- The legislative body of the City of Morgan Hill.

2. Controlled Equipment- Includes items defined by California Government Code section 7070, subsections (c)(1) through (c)(16).

3. "Military Equipment Impact Statement" means a publicly released, written document that includes, at a minimum, all of the following:
(a) Description: A description of each type of Controlled Equipment, the quantity sought, its capabilities, expected lifespan, intended uses and effects, and how it works, including product descriptions from the manufacturer of the Controlled Equipment. (b) Purpose: The purposes and reasons for which the Morgan Hill Police Department (hereinafter, "Police Department") proposes to use each type of Controlled Equipment. (c) Fiscal Cost: The fiscal cost of each type of Controlled Equipment, including the initial costs of obtaining the equipment, the estimated or anticipated costs of each proposed use, the estimated or anticipated costs of potential adverse impacts, and the estimated or anticipated annual, ongoing costs of the equipment, including operating, training, transportation, storage, maintenance, and upgrade costs.
(d) Impact: An assessment specifically identifying any potential impacts that the use of Military Equipment might have on the welfare, safety, civil rights, and civil liberties of the public and what specific affirmative measures will be implemented to safeguard the public from potential adverse impacts.
(e) Mitigations: Specific, affirmative technical and procedural measures that will be implemented to safeguard the public from such impacts.
(f) Alternatives: Alternative methods or methods by which the Police Department can accomplish the purposes for which the Military Equipment is proposed to be used, the annual costs of alternative method or methods, and the potential impacts of alternative method or methods on the welfare, safety, civil rights, and civil liberties of the public.

From: D. Muirhead
To: CC Public Comment
Cc: Shane Palsgrove
Subject: comment Morgan Hill City Council May 3 Item #xx: MHPD Controlled Equipment 2022 Annual Report Date: Thursday, April 27, 2023 6:46:48 PM
comment for Morgan Hill City Council Meeting May 3
Item #xx: MHPD Controlled Equipment 2022 Annual Report
The Controlled Equipment Annual Report includes an Appendix of Definitions which define the contents of the report:

3. "Military Equipment Impact Statement" means a publicly released, written document that includes, at a minimum, all of the following:
(a) Description: A description of each type of Controlled Equipment, the quantity sought, its capabilities, expected lifespan, intended uses and EFFECTS [emphasis added], and how it works, including product descriptions from the manufacturer of the Controlled Equipment.

Note that the coverage date for the report is
January 1, 2022 to December 31, 2022.

The Department Policy Manual Policy 709: Military Equipment is Copyright Lexipol, LLC 2022/04/07
with one now-obsolete entry (LRAD) and a little contradictory information for 40MM Less-Lethal Launchers.

In my opinion, the report fails to describe fully the EFFECTS. The report descriptions are from the point of view of the officer employing the device and not from the point of view of the receiving person. I will note specific instances in several of the equipment categories latter.

Sidebar: My work style is to make lists and use checklists. So I was looking for something resembling a list for de-escalation tactics, for "pursuant to State and Federal law", and for "tactical advantage".

But in an impromptu conversation with Chief Palsgrove and Captain Ramirez following the City/School Liaison meeting, it became clear to me that training and judgment in a dynamic situation cannot be reduced to a black-and-white list.

While I am standing by my claim that additional information would be useful and so am not changing what I had written before my conversation with the Chief and Captain, I do want to acknowledge how two very different interpretations can arise from the same factual situation. I had said that when I see 3 or 4 officers surrounding a person, I think that this is unnecessary intimidation. Captain Ramirez then said that just the presence of additional officers could tip the balance and have a suspect not resist and so was actually a de-escalation technique.

Descriptions of device usage usually contain "pursuant to State and Federal law". This provides no actionable information to an ordinary person. Nor do you provide any mechanism for informing us of changes in those laws.

Descriptions of Authorized Use often say "Circumstances where a tactical advantage can be obtained. "tactical advantage" needs some definition. 40MM mentions gaining advantage from a distance (i.e., breaking a window or disabling a security camera).

Less-lethal shotgun mentions its range maintains space between officers and a suspect, reducing the threat's immediacy (a principle of de-escalation}.

The report states that the Department is committed to de-escalating situations. In the specific examples of use of force, most contain "de-escalation techniques were unsuccessful" without identifying which techniques were tried. This is then followed by "after a reasonable amount of time" where the length is unspecified and "reasonable" is undefined (I assume situationally specific).

Policy 300: Use of Force says "Subject to available resources, the Training Sergeant should ensure that officers receive periodic training on de-escalation tactics, including alternatives to force." ----- Specific Use Instances -----
I find the descriptions of the occasions of use of force with military equipment lack important detail from the point of view of a civilian observer.

For the 02-13-22 use of the 40MM launcher, was it fired through an open vehicle window? What body part was the target? What was the effect on the suspect?
For the uses of the Less Lethal Shotgun, the 06-21-22 event was when the suspect exited the vehicle and the 11-14-22 event was a domestic violence call in an unidentified location. What body part was the target? What was the effect on the suspect?
For the uses of Distraction Devices, we are only told they were utilized seven (7) times as attention-getting devices without specific dates or locations. We should at least know if they were used in confined spaces where "atmospheric overpressure" causes "physiological/psychological, sensory deprivation".

The use of Chemical Agents and Smoke Canisters was an unidentified date involving an armed and barricaded suspect. Which chemical agent or smoke? What was the effect on the suspect?
For the 04-03-22 use of the Pepper-Ball Launcher and Related Munitions, was it fired through an open vehicle window? What body part was the target? What was the effect on the suspect?
----- Controlled Equipment Descriptions -----

Long Range Acoustic Device (LRAD)
The device has a voice broadcast range of 600 meters and an unmistakable warning tone. The sound level for the warning tone is not specified nor is there a distance below which a person should not approach the device when it is emitting a warning tone.

Note that Policy Manual 709 says LRAD quantity: 0.
40MM Less-Lethal Launchers and Munitions
Note that the report says launchers have an effective range of up to 20 yards while the Military Equipment Inventory in Policy 709 says 131 feet.

The report talks only of the foam projectile.

Policy 709 also mentions it can launch a signaling munition with OC (oleoresin capsicum) [see Policy 308]. Because the report structure segregates some devices from some of their munitions, note that a 40MM Frangible Impact-CS Powder-4530 munition is listed under Chemical Agents and Smoke Canisters.

The Manufacturer Description says the approved distance of not less than five (5) feet and as far as 131 feet. The 30-gram foam projectile delivers 120 ft/lbs of energy on impact. What is the effect on a person at 5 feet and at 130 feet? What parts of the body are approved targets? Less Lethal Shotgun:

Deploys 12-gauge Super-Sock Beanbag Round up to a distance of 75 feet.

Policy 709 mentions certified chemical agent instructors for muzzle blast training. The weapon fires a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). What is the minimum distance for use? What is the effect on a person at minimum distance and at 75 feet? What parts of the body are approved targets? Diversionary Devices (aka FLASH-BANG) called Distraction Devices in Policy 709 and use is established under Policy 308.

Produces atmospheric overpressure, noise (165-180db), and brilliant white light (6-8 million candelas) to cause short-term (6 - 8 seconds) physiological/psychological, sensory deprivation.

It is an ATF-controlled Class-C explosive device.

What is the smallest enclosure in which this can be used? For example, in a car? What is the minimum distance from a person when it explodes? Chemical Agent and Smoke Canisters [see Policy 308]
This equipment has indoor and outdoor capabilities and uses.

Chemical agents include but not limited to powder, a liquid mist, pyrotechnic devices, and vapor aerosols.

The Department currently possess chemical agents:

Combined Systems Inc. (CTS) 6210-R Red Smoke
Outdoor Tactical Grenade CS- 8230
40MM Frangible Impact-CS Powder-4530
40MM multi-effect munition delivering greater energy on the target with extreme accuracy and simultaneously dispersing a cloud of irritant or marking powder can be deployed up to 50 yards.

The use of chemical agents causes mucous membranes and exposed

skin to become inflamed, resulting in a burning sensation. It provides a temporary respiratory effect and induces discomfort on the skin.

Exposure to chemical agents normally causes no lasting effects.

How long is temporary? What is the treatment to counter the irritant? What are abnormal effects?
Pepper-Ball Launcher and Projectiles [see Policy 308]
PepperBall projectile contains 2% PAVA pepper powder and is designed for direct impact and area saturation, especially in confined, interior spaces. Policy 308.7.2 Pepper Projectile Systems says
"Pepper projectiles are plastic spheres that are filled with a derivative of OC powder. Because the compressed gas launcher delivers the projectiles with enough force to burst the projectiles on impact and release the OC powder, the potential exists for the projectiles to inflict injury if they strike the head, neck, spine or groin." The Manufacturer Description says projectile is discharged at a 200-500 FPS velocity.

The Manufacturer Description for the Launcher mentions it is a single feed system with the use of a Hopper. "Hopper" is not defined. ----- Closing -----
I think our Police Department has done a good job in producing this required annual report. The Summary of Military Equipment Usage says "In 2022, the Morgan Hill Police Department responded to approximately 35,325 calls for service. Of those calls for service, officers used force on only 17 occasions, representing .0005% of the total calls for service.

Officers utilized military equipment in four cases involving the use of force." I counted five devices with more than one use for two devices.

I look forward to next year's report.

Doug Muirhead, Morgan Hill
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10 CITY COUNCIL STAFF REPORT
MEETING DATE: May 3, 2023
PREPARED BY:

Mario Ramirez, Police Captain
APPROVED BY: City Manager

ADOPT ORDINANCE PROHIBITING POSSESSION OF FIREARMS IN

SENSITIVE PLACES

RECOMMENDATION(S)

1. Open/Close the Public Hearing; and

2. Waive the First and Second Reading; and

3. Introduce ordinance prohibiting the carrying of firearms in sensitive places

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Enhancing Diversity and Inclusiveness
Advocating for Local, Regional, and State Legislative Initiatives 2022-2023 Strategic Priorities
Fiscal Sustainability
Affordable Housing and Homelessness
Community Outreach, Engagement, and Messaging
Economic Development
Transportation
Guiding Documents
Public Safety Master Plan
REPORT NARRATIVE:

In response to the U.S. Supreme Court’s recent decision in New York State Rifle & Pistol Association v. Bruen, staff recommends that Council adopt an ordinance that would ban the carrying of firearms in an initial round of “sensitive places” where the Supreme Court has deemed such bans presumptively lawful. Sensitive places under the proposed ordinance include government offices, schools, courthouses, and polling places.

10 BACKGROUND
On June 23, 2022, the U.S. Supreme Court decided the case of New York State Rifle & Pistol Association v. Bruen (“Bruen”), in which the Court held unconstitutional the State of New York’s law requiring applicants to show “proper cause” to obtain a license to carry a concealed weapon. The Court held that requiring applicants to demonstrate a "special need" for self-protection distinguishable from that of the general community violated the applicants’ Second and Fourteenth Amendment rights.

Bruen also established a new test for evaluating legal challenges under the Second Amendment: if a law regulates conduct covered by the “plain text” of the Second Amendment, the law will be upheld only if the government demonstrates that it is “consistent with the Nation’s historical tradition of firearm regulation.” However, the Court also reaffirmed that certain locations are “‘sensitive places’ where arms carrying could be prohibited consistent with the Second Amendment.” The City has a compelling interest in protecting the health and safety of the public and the orderly functioning of government within its bounds. The incidence of firearm-related fatalities and injuries has reached alarming and unacceptable proportions at the national, state, and local level, as described in a report by the Santa Clara County Department of Public Health, “Cost of Gun Violence in Santa Clara County” (Aug. 12, 2022), which notes that the age-adjusted firearm death rate in Santa Clara County was

4.8 people per 100,000 in 2020, the highest rate in the past decade.

In California, Bruen rendered unconstitutional and unenforceable California’s “good cause” requirement for obtaining a permit to carry firearms outside the home, which is set forth in California Penal Code sections 26150(a)(2) and 26155(a)(2). As a result, permitting agencies (police chiefs and county sheriffs) may no longer require a showing of “good cause” to obtain a concealed carry permit. Historically, the “good cause” requirement likely constrained the number of permit applications that were granted in California. While procedural requirements (such as a background check and safety training) remain, the elimination of the “good cause” requirement makes it easier to obtain a permit to carry a firearm outside the home and will likely increase the number of permits that are granted. It is foreseeable that firearms may be present in greater numbers in public and private spaces in California.

Prior to Bruen, California state law limited carrying of firearms in a variety of places, but in most locations made an exception that allowed firearms with a valid carry permit. In response to Bruen, legislation was introduced in California that would, among other things, prohibit the knowing possession of firearms in an expansive list of sensitive locations, even with a valid permit. The 2022 bill, SB 918, included an urgency clause, which triggered a supermajority requirement. It failed by one vote on the last day of the 2022 legislative session. The bill, renamed SB 2, has been reintroduced for consideration in the 2023 legislative session. Based on the prior vote, staff believes it is likely to be enacted and go into effect on January 1, 2024.

10 A uniform statewide rule would make it easier for the public to know what to expect in public and private spaces, and for responsible law-abiding residents who carry firearms to understand and comply with the law. But at this time, in the absence of state or local legislation prohibiting firearms in specified sensitive locations, the carrying of firearms with a valid permit is lawful in most public and private places in California. Accordingly, most cities in Santa Clara County are considering local ordinances to prohibit the carrying of firearms in sensitive places. Police chiefs and city attorneys in Santa Clara County have been collaborating to develop firearms policies in accordance with Supreme Court guidance, and several cities have already enacted sensitive places ordinances.

There is active litigation over the prohibition of firearms in some locations that cities have deemed sensitive places. In response to the Bruen decision, the State of New York adopted a new firearms law that included an expansive list of sensitive places in which firearms were banned, including public transit, parks, shelters, and places of worship. In Antonyuk v. Hochul, (No. 22-cv-986), the district court for the Northern District of New York, enjoined the State from enforcing its firearms ban in many of the sensitive places enumerated in the statute, reasoning that under Bruen the state had stretched the sensitive places doctrine too far. That case is currently on appeal before the Second Circuit, which has stayed the district court’s injunction during the appeal.

Elsewhere in the country, litigation that will clarify the bounds of the “sensitive places” doctrine is ongoing, and the relevant caselaw is developing rapidly. In California, litigation is pending against the City of Glendale challenging its local ordinance prohibiting firearms on city property, and opponents of SB 2 have stated an intention to challenge that law if enacted. Attached to this staff report includes a table listing the sensitive places included in New York’s statute, how each fared before the district court, and the corresponding provisions in SB 2 and the Sunnyvale ordinance.

ANALYSIS
The proposed ordinance would prohibit the carrying of firearms in certain “sensitive places” that have been explicitly authorized by the Supreme Court. The Supreme Court expressed in District of Columbia v. Heller, and reaffirmed in McDonald v. City of Chicago, that “laws forbidding the carrying of firearms in sensitive places such as schools and government buildings” are “presumptively lawful.” In Bruen, the Court named “legislative assemblies, polling places, and courthouses” as examples of “sensitive places” where weapons could be prohibited consistent with the Second Amendment. The proposed ordinances would cover those places as a first step.

Developing an expanded list of sensitive places will require monitoring, developing a caselaw and weighing legal risk and policy goals. If the Council wishes to expand the list of sensitive places where firearms are prohibited, staff recommends that the Council provide direction to the City Attorney to evaluate the legal risks and make recommendations regarding expansion of the list of sensitive places.

10 COMMUNITY ENGAGEMENT:

This report serves to inform the community of the Emergency and Standard Ordinances Prohibiting Possession of Firearms in Sensitive Places Recognized by the Supreme Court. Additionally, Staff has reached out to the Superintendent of Morgan Hill Unified School District regarding the prohibition on firearms in schools. The Morgan Hill Police Department is working on revising the bail schedule to reflect the new ordinances. In developing a follow-up ordinance, staff will conduct appropriate and feasible stakeholder engagement.

ALTERNATIVE ACTIONS:

The Council can choose not to adopt the presented ordinance, which would allow those who obtain a permit to carry firearms outside the home to carry a firearm in any public location.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On March 8, 2023, the City Council adopted a CCW application fee. This is the initial report to the City Council regarding the acceptance of a sensitive place ordinance.

FISCAL AND RESOURCE IMPACT:

There is no current fiscal impact on the City at this time for the approval of the sensitive places ordinances.

CEQA (California Environmental Quality Act):

Not a Project.

This entails organizational or administrative activities of governments and will not result in direct or indirect physical changes in the environment.

*NOT YET APPROVED
ORDINANCE NO. , NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL
ENACTING SECTION 9.04.055 (CARRYING OF FIREARMS
IN SENSTIVE PLACES) OF CHAPTER 9.04 (WEAPONS) OF
TITLE 9 (PUBLIC PEACE, MORALS AND WELFARE) OF

THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL

REGARDING THE PROHIBITION OF CARRYING

FIREARMS IN SENSITIVE PLACES

THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES ORDAIN AS FOLLOWS:

SECTION 1. New section 9.04.055 is hereby added to Chapter 9.04 (Weapons) of Title 9 (Public Peace, Morals, and Welfare to read as follows:

9.04.055 Carry of Firearms in Sensitive Places
A. Purpose and intent. The purpose of this section is to protect sensitive places that have traditionally been subject to restrictions on carrying or possessing firearms, consistent with the Supreme Court’s guidance in N.Y. State Rifle & Pistol Ass’n v. Bruen (2022), 142 S.

Ct. 2111; to protect health, life, and property within the city; and to preserve the order and security of the City, its inhabitants, and its visitors.

B. Prohibition. Except as otherwise provided by federal or state law, no person shall carry a firearm in any sensitive place unless they are subject to an exemption under subsection (d) of this section. This prohibition applies to persons licensed to carry a concealed firearm.

C. For the purposes of this section, “sensitive place” means any of the following:
i. Any building owned by or under the control of city, county, state, or federal government for the purpose of government administration. ii. Any polling place while voting is occurring.
iii. Any school. For the purposes of this section, “school” includes all institutions that provide preschool, elementary, secondary, post-secondary, technical, or trade or vocational education, and includes all athletic facilities, offices, cafeterias and eating establishments, health care facilities, research facilities, parking lots, and shared rooms and common areas of dormitories thereof. “School” does not include a private residence at which education is provided for children who are all related to one another by blood, marriage, or adoption. ///

*NOT YET APPROVED
D. Exemptions. This section shall not apply to:
i. A federal, state, or local law enforcement officer when such person is authorized to carry a concealed weapon or a loaded firearm under state law or under 18 U.S.C.

Section 926B or any successor legislation;
ii. An honorably retired officer or agent of a law enforcement agency, when authorized to carry a concealed or loaded weapon under state law or 18 U.S.C. Section 926C; iii. A security guard or messenger of a financial institution, a guard of a contract carrier operating an armored vehicle, a licensed private investigator, a patrol operator, an alarm company operator, or security guard, when such persons are authorized by applicable state or federal law to carry a firearm and when such persons are engaged in the exercise of their official duties;
iv. A person bringing or transporting an unloaded firearm onto city property to exchange, transfer, or relinquish it to law enforcement, in compliance with any city operated, approved, or sponsored program to purchase, exchange, or otherwise obtain voluntary relinquishment of firearms;
v. A person lawfully possessing an unloaded firearm in the locked trunk of, or inside a locked container in, a motor vehicle.
vi. A hunter with a valid hunting license when going to or returning from a legal hunting expedition; provided, however, that when transiting through any area where firearms are prohibited, any firearm is safely stored in a locked container or otherwise secured using a firearm safety device as defined by California Penal Code Section 16540 or any successor legislation.

SECTION 2. Severability. Should any provision of this ordinance be deemed unconstitutional or unenforceable by a court of competent jurisdiction, such provision shall be severed from the ordinance, and such severance shall not affect the remainder of the ordinance. ///
///
///
///
///
SECTION 3. Effective Date; Posting. This Ordinance shall take effect on the 31st day following adoption. The City Clerk is hereby directed to publish this Ordinance or a summary

*NOT YET APPROVED
thereof pursuant to Government Code Section 36933.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

City Attorney City Manager

11 CITY COUNCIL STAFF REPORT
MEETING DATE: May 3, 2023
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager

RECEIVE MONTHLY BUDGET UPDATE AND CITY MANAGER
AUTHORITY REPORT; ADOPT FISCAL YEAR 2022-23 AND 2023-2024

MID-CYCLE BUDGET AMENDMENTS, INCLUDING COMMUNITY
FUNDING RECOMMENDATIONS; APPROVE A FIVE-YEAR
AGREEMENT WITH CAL FIRE; DELEGATE THE AUTHORITY TO THE

CITY MANAGER TO MAKE ALL FUTURE EQUIPMENT REPLACEMENT
PURCHASES AS APPROVED IN THE BUDGET; AND APPROVE AN

UPDATE TO ELECTRIC VEHICLE CHARGING STATION USER FEES

RECOMMENDATION(S)

1. Accept and file the monthly financial and investment report;

2. Adopt resolution authorizing changes to the adopted Fiscal Year (FY) 2022-23 and 2023-24 budgets;

3. Approve the FY 2023-24 Community Funding recommendations;

4. Authorize the City Manager to enter into a five-year agreement with the California Department of Forestry and Fire Protection (CAL FIRE) to provide fire and emergency medical response services effective July 1, 2023 through June 30, 2028;

5. Delegate the authority to the City Manager to make all future vehicle and equipment purchases as approved in the adopted budget; and

6. Approve an update to the City's electric vehicle (EV) charging station user fees and delegate the authority to the City Manager to update all future EV user fee schedules.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Enhancing Diversity and Inclusiveness
Advocating for Local, Regional, and State Legislative Initiatives

11 2022-2023 Strategic Priorities
Fiscal Sustainability
Affordable Housing and Homelessness
Community Outreach, Engagement, and Messaging
Economic Development
Transportation
REPORT NARRATIVE:

As part of the City Council’s expectation to maintain a high level of transparency and to be responsible stewards of public funds, staff is providing this monthly budget update, along with the March 2023 financial and investment reports, and recommended midcycle budget amendments.

March 2023 Financial Report
The Revenue and Expense Summary through March 2023 is included on the first page of the monthly financial report. Overall, General Fund revenues total $30.4 million or about 60% of the budget. Expenditures, including encumbrances, amounted to $41.3 million or 72% of the budget, compared to prior year-to-date expenditures, including encumbrances, of $35.6 million. This represents an increase of $5.7 million in total yearto-date expenditures, including encumbrances, compared to the prior year to date.

Excluding the encumbrances, year-to-date expenditures increased by about $4.5 million mainly due to new programs launched this year, such as Innovative Transit and County Solid Waste Program, gradual recovery in Recreation Services, as well as additional staffing programmed in the current year along with better staff recruitment and retention efforts citywide.

City Manager’s Authority Report
Pursuant to the City Council Policy 18-05 – Report on delegation of authority to City Manager, Page 21 of Attachment 1 lists the contracts and or agreements between $25,000 to $60,000, or the limit of the California Uniform Public Construction Cost Accounting Act (CUPCCAA), entered into by the City Manager since the last report from January 26, 2023, through April 4, 2023.

On December 7, 2022, the City Council delegated the authority to the City Manager to accept all future donations from Shoe Palace and directed the City Manager to report any donations from Shoe Palace over $5,000 in the quarterly financial reporting. The Morgan Hill Police Department received a $7,000 donation from Shoe Palace on April 3, 2023.

Mid-cycle Budget Amendments
On June 15, 2022, the City Council of the City of Morgan Hill approved the biennial Operating Budget for Fiscal Year (FY) 2022-23 and 2023-24 and the Capital Improvement Program (CIP) for FY 2022-23 through 2027-28. The budget was subsequently amended via budget adjustments, including carry-over of encumbrances and re-appropriation of funds for unpaid obligations and unfinished projects, from time to time, throughout the year.

11 The implementation of a biennial budget, which is a 24-month operating budget with appropriations allocated for each year, demonstrates a commitment to improving the City’s long-range and strategic planning efforts. It also provides efficiencies in the second year of the budget by reducing the time dedicated to budget production, thus allowing more time for validation efforts.

Revenue Update
General Fund - Property Tax
The most recent County’s Property Tax estimate for Morgan Hill, excluding the property transfer tax, is $17.9 million for fiscal year 2022-23, higher than budget by about $0.5 million, partially attributed to higher receipts of excess Educational Revenue Augmentation Fund (ERAF), former Redevelopment Agency residual distribution, and a slightly higher property tax assessment.

General Fund - Sales Tax
Based on the latest projection from HdL, the City’s sales tax consultant, sales tax revenue before rebates for the current fiscal year is projected to be approximately $12.9 million, approximately $0.5 million higher than budget. The increase is partially due to continued strength in certain segments, such as autos/transportation and the County pool, as well as overall continued strength in consumer spending. However, with inflation remaining to be elevated and the Federal Reserve continuing its interest rate hikes to tame inflation, coupled with the recent bank failures, sales tax revenue for next year is projected to be slightly down compared to this year.

General Fund - Implementation Funds from Recology
The City has two recommendations related to the implementation of trash capture and SB1383 enforcement activities. The first activity is to bring on 0.5 FTE of an Environmental Services Coordinator (and associated costs) to begin State mandated enforcement activities. Full enforcement is not required to begin until January 1, 2024, but the City is recommending the funding begin at the start of the FY 2023-24 to allow adequate time for recruitment, hiring, onboarding, and inspection system development to occur. The second recommendation is associated with the advanced design for future trash capture devices. Although a full implementation plan on trash capture management has not yet been developed, the City is proposing design funds be collected for use now to allow the installations to occur on time. The first installations must be completed by the end of 2026. The total estimated revenue to be collected from Recology and associated costs is estimated to be $380,000 for the first year.

Subsequent annual costs will be developed in the next biennial budget cycle.

General Fund - Other Revenue
Interest income is expected to come in higher than originally budgeted for FY 2022-23 and 2023-24 by $100K each year and $50K each year from FY 2024-25 through 2027-

28. In addition, with the approval of the solid waste rate adjustment from Recology, the franchise fee from Recology is expected to increase by approximately $100K per year, starting FY 2023-24.

11 Expenditures Update
Personnel
Staff is recommending an addition of 2.5 FTEs (1.0 FTE Environmental Programs Coordinator; 1.0 FTE Accounting Assistant/Accounting Technician; and 0.5 FTE Municipal Services Assistant (MSA)) beginning next fiscal year 2023-24:
• Add 1.0 FTE Environmental Programs Coordinator - This is a required position to meet the State regulatory requirements in the areas of recycling (AB1383) and stormwater pollution prevention. Funding for this position would be provided by Recology by way of implementation funds, as mentioned above in the General Fund - Implementation Funds from the Recology section of this report, and a reduction in contract services in the Development Services Fund (206). • Add 1.0 FTE Accounting Assistant/Accounting Technician - The addition of this position would address the much-needed help in payroll function, ensuring the accuracy of payroll processing; and additional tasks that have been taken on by Finance, including administration of housing loans which were previously done by HouseKeys and implementation of the new enterprise resource planning (ERP) system. The addition of the position is not expected to have any fiscal impact in FY 2023-24 as the cost has already been programmed in the Housing fund and the ERP implementation project. Additional ongoing incremental impact to the General Fund beginning FY 2024-25 is expected to be about $30K/year. • Add 0.5 FTE Municipal Services Assistant (MSA) - The addition of a 0.5 FTE MSA would bring the vacant part-time (0.5 FTE) position to a full-time position to help address the difficulties in hiring and retaining part-time staff. This position will provide support to the Environmental Services Division, Recreation, and Community Services. There is not a fiscal impact as additional costs will be offset by the reduction in temporary staffing.

Community Funding
The City has appropriated $200,000 for Community Funding for FY 23-24. Staff is recommending this allocation remain at $200,000. The City received funding requests totaling approximately $254,000. All requests meet the funding requirements required for funding. The City has recommended increases in funding for a very limited number of long-term community events that have seen significant increases in City service costs due to enhanced safety needs. Other previously held events are recommended for funding consistent with the previous year. Due to the limitations on funding available, new events have been recommended for no greater than 50% funding. Full recommendations are included in Attachment 4. The City Council may choose to adjust funding levels as believed appropriate, utilizing the Council Funding Policy as guidance.

Should the Council wish to increase overall funding above $200,000, an additional appropriation of funds would be required.

CAL FIRE Contract
In January 2013, the City entered into a five-year cooperative agreement with CAL FIRE for fire and emergency services. A one-year extension of said agreement was signed by both parties in May 2017, with a term date of June 30, 2018. A subsequent five-year

11 agreement with a term date of July 1, 2018, to June 30, 2023, was approved by the Council on June 6, 2018. Staff is recommending a new five-year agreement effective July 1, 2023 through June 30, 2028 for fire related services (Attachment 2). The total budgeted amount for fire-related services, as presented in the Amended Budget, is $48.8 million over the five years, an increase of approximately $4.0 million over the original forecast, and the total “not to exceed” contract amount is $54.9 million, over the five-year period. The contract amount is different from the budgeted amount in that the contract has some pre-approved positions but remains unknown due to the change from a 72-hour shift to a 66-hour shift, staffing of the 3rd fire station, and budget savings.

These additional positions and classifications have been authorized by the State in anticipation of the impact of the change in shift hours and to bring in additional staffing as needed, without having to move through the lengthy process to modify or amend the agreement with CAL FIRE and the California Department of General Services. The new agreement includes staffing of the 3rd fire station throughout the five-year period, with funding commencing in FY 2024-25.

ICMA Grant
The City has been awarded a $30,000 grant from the International City/County Management Association (ICMA) to advance local activities designed to boost upward mobility for residents. The City’s efforts over the next several months, called Elevate! Morgan Hill will focus on developing a strategy to connect Spanish-speaking and lowerincome community members to jobs and housing resources while also increasing their sense of belonging to the greater community. See resolution for budget amendment.

California Energy Commission Grant
The City has been awarded a $40,000 grant from the California Energy Commission to implement SolarAPP+. Last year, California lawmakers passed Solar Access Act SB379 which requires most cities and counties to adopt SolarAPP+, an automated online permitting platform for standard residential solar and storage systems. SolarApp+ automates and standardizes building departments’ permitting processes for simple residential rooftop solar systems. See resolution for budget amendment.

Vehicles and Equipment Replacement Purchases
As part of the effort by the City Council to streamline meetings, the City Council directed staff to bring forward for City Council consideration potential agenda items that could be processed administratively. Staff have identified vehicles and equipment replacement that have already been approved by the City Council to be replaced or purchased during the budget process and can be processed administratively. Currently, staff still needs to agendize and seek City Council approval for any vehicle or equipment replacement purchases even though the list was already approved by the City Council during the budget approval process. A listing for the current biennial budget vehicles and equipment replacement purchases is attached (Attachment 3). Staff is recommending the City Council delegate authority to the City Manager to make all future vehicle and equipment replacement purchases that were previously approved during the budget process, as long as the purchases follow the City's purchasing policy and no additional appropriations are needed.

11 Employee Benefits Fund
Due to a higher number of staff retirements, turnover, and cash-out requests than planned, an additional appropriation of $150,000 is needed for Employee Benefits Fund (791). See resolution for budget amendment.

Update to the City's EV Charging Station User Fees
The City of Morgan Hill’s EV charging stations were installed in 2016 and 2018. There are five ChargePoint Level 2 EV charging stations with eight charging ports located at City Hall, the Library, and the Third Street Parking Garage. There are five EV Connect Level 2 stations with 10 ports at the Centennial Recreation Center and Police Department. Historically, the City has set a charging station fee rate with a goal of 100% cost recovery. The City’s agreements with ChargePoint and EV Connect include revenue-sharing arrangements, reducing the program’s gross revenue. The City’s charging station operating costs include staff time, electricity, maintenance (labor and repairs and/or service agreements), and software service agreements.

The February 3, 2016 Resolution adopted by City Council set the initial EV charging station fees and amended the City Fee Schedule to reflect the user fee for Plug-In Electric Vehicle Charging Stations.

Modernizing the Model: It was previously industry standard to charge customers a “plug-in” flat fee and then also charge per kwh of electricity usage. It is now standard to charge per kwh on electricity usage with no plug-in flat fee. Some sites also impose a parking fee for vehicles plugged in and parked in the space without charging a vehicle -- a fee staff does not recommend given the nature of the charging station locations at public facilities and community spaces.

The City can modernize its charging station user fees by removing the plug-in fee and instead charging solely for kwh of electricity usage. Staff recommends increasing the rate per kwh of electricity usage from $0.25 per kwh to $0.35 per kwh to offset the loss of revenue from the removal of the plug-in fee.

Setting a Rate: Staff benchmarked charging station user fees in the greater South County area. The rates for Level 2 stations range from $0.20 per kwh to a high of $0.455 per kwh at peak hours. A rate at the lower range would generate insufficient revenue to cover even direct electricity costs. Staff recommends $0.35 per kwh. The recommended rate, while on the high end for the market, is still projected to bring the program below cost recovery, estimated at 87%. The City is recommending a rate that would achieve a fairly sustainable operation without pricing the stations too high for users. This new rate could be reevaluated in a year with updated analysis of usage levels, revenue, and costs.

Staff is also recommending the City Council delegate authority to the City Manager to update future EV charging station user fee structure that aligns with the market and achieves a reasonable level of cost recovery.

11 COMMUNITY ENGAGEMENT:

Inform
Finance staff prepares these financial reports to inform City officials, the Council, the community, and various lenders and stakeholders about the financial health of the organization, which assists each one of the interested parties in making sound financial and investment decisions.

ALTERNATIVE ACTIONS:

City Council could choose not to approve budget amendments or propose alternative budget amendments.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council receives and files the financial and investment report for each month.

At the September 16, 2015 meeting, City Council recommended monthly financial and investment reports be agendized under the Consent Agenda, and quarterly financial and investment reports be presented to City Council as an “Other Business” item.

On June 15, 2022, the City Council of the City of Morgan Hill approved the biennial Operating Budget for Fiscal Year (FY) 2022-23 and 2023-24 and the Capital Improvement Program (CIP) for FY 2022-23 through 2027-28.

FISCAL AND RESOURCE IMPACT:

The preparation of the report is a part of the Finance workplan.

CEQA (California Environmental Quality Act):

Not a Project
This report is not a project, as defined in Section 15378 of the State CEQA Guidelines.

Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

FINANCE DEPARTMENT

CITY OF MORGAN HILL
March 31, 2023 - 75% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2022-23
FOR THE MONTH ENDED MARCH 2023 – 75% OF YEAR COMPLETE
 General Fund – Revenues through March totaled $30.4 million, or about 60% of the budgeted revenues. Forecast for the property tax revenue, most recent County estimates project the City will receive approximately $17.9 million in property tax revenue for the current fiscal year, slightly more than budget of $17.4 million. As for sales tax, HdL, the City's sales tax consultant raised the City's current fiscal year sales tax revenue estimate to $12.5 million, an increase of approximately $0.5 million from the prior estimate in its most recent projection.

The chart below shows historical General Fund revenues by major revenue category from FY18-19 through FY21-22 Actual, FY22-23 Budget, and YTD as of March 31, 2023.

General Fund expenditures and encumbrances as of March 31, 2023 totaled $41.3 million, of which approximately $2.5 million is attributable to outstanding encumbrances, compared to prior year to date expenditures, including encumbrances, of $35.6 million. This represents an increase of $5.7 million in total year to date expenditures, including encumbrances, compared to the prior year to date. Excluding the encumbrances, year to date expenditures increased by about $4.5 million mainly due to new programs launched this year, such as Innovative Transit and County Solid Waste Program, gradual recovery in Recreation Services, as well as additional staffing programmed in the current year along with better staff recruitment and retention efforts citywide..  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 $1.3 million as of March 31, 2023. Recreation Services revenues continue to recover from the pandemic and are on target with budget. $12.8 $14.5 $16.0 $16.7 $17.4
$8.8
$10.7 $9.7 $11.0 $12.9 $12.4
$7.7
$5.1 $4.6 $4.4
$5.9 $5.4
$2.7
$9.9 $8.3 $5.7
$7.5 $8.9
$6.9
$4.9 $3.6
$9.7
$9.1 $6.4
$4.3
$43.3 $40.6
$46.8
$52.1 $50.5
$30.4
0 10
20 30
40 50
60 FY18‐19 FY19‐20 FY20‐21 FY21‐22 Budget
FY22‐23
YTD
FY22‐23
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2022-23
FOR THE MONTH ENDED MARCH 2023 – 75% OF YEAR COMPLETE
The chart below shows the historical net impact of Recreation Operations to the general fund.

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 Development Services, 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 guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly 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 non-grant funded City operations like utilities and information services.
 Development Services Fund – Revenues through March totaled $4.6 million compared to prior year to date amount of approximately $3.6 million, partially due to a result of the fees increase approved by the City Council on January 19, 2022. Expenditures, including encumbrances, totaled $4.5 million.  Debt Service Funds – Expenditures through March totaled $0.6 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
FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 FY18‐19 FY19‐20 FY20‐21 FY21‐22 FY22‐23 Budget
Millions (S)
Historical Net GF Impact

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2022-23
FOR THE MONTH ENDED MARCH 2023 – 75% OF YEAR COMPLETE
 Wastewater Operations – Revenues from Sewer Operations through March totaled $10.2 million.

Expenditures and outstanding encumbrances totaled $10.9 million or 67% of the budget. The table below shows historical Sewer Operations revenues and expenditures from FY18-19 through FY21-22 Actual, FY22-23 Budget, and YTD as of March 31, 2023.
(amount in millions) FY18‐19 FY19‐20 FY20‐21 FY21‐22
Budget
FY22‐23
YTD
FY22‐23
Revenues 11.4               11.9             13.3                         14.9              14.8             10.2 Expenditures              11.4            12.3 13.3                         14.8              16.3             10.9 Operating Margin                ‐             (0.4)              ‐ 0.1                (1.5)                            (0.7) Operating Margin
without Encumbrances                 (0.1) 0.4                ‐                 0.1                  (1.5)                              (0.6) Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues from Water Operations through March totaled $10.4 million. Water Operations expenditures, including outstanding encumbrances, totaled $12.2 million. Morgan Hill residents consumed about 17% less water through March compared to the prior three-year average. As such, the 15% revenue stabilization water rate has been implemented. The table below shows Water Operations revenues and expenditures from FY18-19 through FY21-22 Actual, FY22-23 Budget, and YTD as of March 31, 2023.
(amount in millions) FY18‐19 FY19‐20 FY20‐21 FY21‐22
Budget
FY22‐23
YTD
FY22‐23
Revenues 14.2               15.3             16.5             16.0                           17.6               10.4 Expenditures              14.3            16.4            16.5 15.2                           17.6               12.2 Operating Margin               (0.1)             (1.1)              ‐                0.8                 ‐               (1.8) Operating Margin
without Encumbrances                0.8               (0.1)                ‐                  0.8                 ‐                 (1.1)  Investments – Three securities were called, and ten new securities, including five CDs at the FDIC insured amount of $250,000 each, were purchased. Total interest earnings received on investments were $225,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 30,360,309 $ 60% $ 41,259,300 72%
Development Services 4,550,285 74% 4,470,199 73%
Housing Successor Agency 246,883 106% 977,242 85%
Sewer Operations 10,223,397 69% 10,912,863 67%
Sewer Other 15,949,315 65% 19,821,055 35%
Water Operations 12,051,855 68% 12,150,267 69%
Water Other 4,642,306 77% 1,276,286 20%
Other Special Revenues * 3,423,168 67% 3,747,448 54%
Capital Projects & Streets 19,928,354 82% 24,106,460 45% Debt Service 511,496 75% 555,228 82%
Internal Service 8,245,396 72% 8,392,972 58%
TOTAL FOR ALL FUNDS 110,132,764 $ 68% $ 127,669,320 54% * Includes all Special Revenue Funds except Development Services Fund, Street Funds, and RDA and Housing Successor Agencies.

REVENUES EXPENSES
0% 20% 40% 60% 80% 100% 120%
General
Development Services
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
March 31, 2023 - 75% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
75%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 17,383,705 $ 8,770,722 $ 51% 7,873,376 $ 11% Sales Tax 12,395,413 7,661,297 62% 7,713,891 -1%
Franchise Tax 2,760,000 1,066,262 39% 1,056,341 1%
Hotel Tax 2,600,000 1,643,563 63% 1,589,372 3%
Other Agencies 1,304,130 804,910 62% 373,093 116%
Service Charges 8,942,658 6,882,302 77% 5,722,317 20%
Interest/Other 1,980,126 1,420,001 72% 1,511,779 -6%
Transfers In 3,145,538 2,111,252 67% 1,901,065 11%
TOTAL REVENUES 50,511,570 $ 30,360,309 $ 60% 27,741,235 $ 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
March 31, 2023 - 75% of Year Complete
75%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 6,720,240 $ 4,800,886 71% 3, $ 618,828 33% Community Services 16,221,529 11,437,014 71% 9, 467,317 21% Police 21,908,484 15,138,332 69% 13, 608,937 11%
Fire 8,653,847 6,517,581 75% 5, 620,125 16%
Transfers Out 3,687,315 3,365,486 91% 3, 267,243 3%
TOTAL EXPENDITURES $ 57,191,414 $ 41,259,300 72% 35, $ 582,449 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
March 31, 2023 - 75% of Year Complete
75%

City of Morgan Hill
Recreation Report - Fiscal Year 2022-23
For the Month Ended March 31, 2023
75% of Year Complete
% of
Budget March 2023 YTD Budget
Revenues
Membership Services & Rec Programs 5,136,869 $ 588,674 $ 3,899,722 $ Facility Rentals 819,459 182,533 925,928
Community Services 127,498 3,731 46,816
Transfers in 75,000 6,250 56,250
Total Revenues 6,158,826 $ 781,187 $ 4,928,717 $ 80%
Less: Expenditures
Membership & Program Services 6,772,195 $ 815,694 $ 4,765,655 $ Facility Rentals 546,870 35,793 358,935
Community Services 644,107 39,272 425,042
Total Expenditures 7,963,173 $ 890,757 $ 5,549,633 $ 70% Net Impact without encumbrances (1,804,347) $ (109,570) $ (620,916) $ Encumbrances - - 679,825
Net Impact with encumbrances (1,804,347) $ (109,570) $ (1,300,740) $

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

City of Morgan Hill
Monthly Investment Report ‐ March 31, 2023
The following are the snapshots of City's investment portfolio as of March 31, 2023. The first chart shows the portfolio composition by investment type:

LAIF ‐ $12.7M
7%
CA Class ‐ $9.1M
5%
Treasury  ‐ $20.1M
11%
Money Market ‐
$4.2M
2%
Federal Agency Issues ‐
$130.2M
67%
Certificate of Deposits ‐
$1.2M
1%
Bond Reserves/Trust ‐
$13.6M
7%
Cash & Other Deposits ‐ ($1.9M)
>1%
Investment Portfolio Composition ‐ $189.2 Million
LAIF ‐ $12.7M
CA Class ‐ $9.1M
Treasury  ‐ $20.1M
Money Market ‐ $4.2M
Federal Agency Issues ‐
$130.2M
Certificate of Deposits ‐
$1.2M
Bond Reserves/Trust ‐
$13.6M
Cash & Other Deposits ‐
($1.9M)
General Fund, $27.7M Community
Development, $1.9M
Housing Successor
Agency/ CDBG, $4.3M
Water ‐ Operations,
$4.4M
Water Other, $21.9M
Sewer ‐ Operations,
$2.3M
Sewer Other, $45.6M
Other Special Revenue,
$8.8M
Streets and Capital
Projects (except RDA),
$41.4M
Debt Service, $0.3M
Internal Service,
$22.4M
Agency Funds
(assessment
dists./refundable
deposits), $8.2M
Cash Balances by Fund Type
$189.2 Million

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:

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Yield Portfolio vs. Benchmarks
LAIF City 2 Yr US‐Treasury

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Jan‐23
Feb‐23
Mar‐23
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield

City of Morgan Hill
Investment Portfolio Detail
As of March 31, 2023
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $       12,660,101 $         12,660,101 6.69% 12,424,487 $     2.83% California C L A S S             9,138,566              9,138,566 4.83% 9,138,566 $        4.76% City Managed
Treasury Bill 912796XY0 8/17/2022 2,423,428 $          $           2,471,767 1.31% 2,457,975 $        3.22% 8/10/2023 8/10/2023 Treasury Note 91282CCZ2 10/8/2021 1,987,656                           1,991,316 1.05% 1,811,260           1.00% 9/30/2026 9/30/2026 Treasury Note 91282CDR9 1/4/2022             1,999,141              1,999,674 1.06% 1,941,480           0.77% 12/31/2023 12/31/2023 Treasury Note 91282CDR9 1/19/2022 1,989,688                           1,996,011 1.05% 1,941,480           1.02% 12/31/2023 12/31/2023 Treasury Note 91282CDV0 2/11/2022 1,977,969                           1,990,624 1.05% 1,936,800           1.44% 1/31/2024 1/31/2024 Treasury Note 9128286R6 3/28/2022 1,996,320                           1,998,093 1.06% 1,950,620           2.34% 4/30/2024 4/30/2024 Treasury Note 912828S35 4/12/2022 1,985,703                           1,997,070 1.06% 1,984,120           1.97% 06/30/2023 6/30/2023 Treasury Note 912828U24 6/13/2022 1,904,688                           1,921,851 1.02% 1,880,940           3.16% 11/15/2026 11/15/2026 Treasury Note 912828ZP8 8/17/2022 2,446,680                           2,491,146 1.32% 2,486,700           3.04% 5/15/2023 5/15/2023 Treasury Note 91282CAW1 11/17/2022 1,246,984                           1,266,555 0.67% 1,264,302           4.49% 11/15/2023 11/15/2023 FFCB Bond 3133ELVX9 4/8/2020             2,000,000              2,000,000 1.06% 1,922,560           0.88% 4/8/2023 4/8/2024 FFCB Bond 3133ELC28 5/27/2020 2,000,000                           2,000,000 1.06% 1,858,520           0.73% 5/27/2023 5/27/2025 FHLMC Bond 3134GVYN2 6/3/2020             2,000,000              2,000,000 1.06% 1,880,020           0.60% 6/3/2023 12/3/2024 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000                           2,000,000 1.06% 1,834,000           0.60% 4/20/2023 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000                           2,000,000 1.06% 1,834,180           0.63% 4/27/2023 10/27/2025 FHLMC Bond 3134GW6E1 11/2/2020 2,000,000                           2,000,000 1.06% 1,946,540           0.32% 5/2/2023 11/2/2023 FFCB Bond 3133EMFR8 11/3/2020 2,000,000                           2,000,000 1.06% 1,830,500           0.54% 5/3/2023 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000                           2,000,000 1.06% 1,833,880           0.65% 5/18/2023 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000                           2,000,000 1.06% 1,832,520           0.64% 5/24/2023 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000                           1,000,000 0.53%             915,280 0.60% 5/24/2023 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000                           3,000,000 1.59% 2,747,550           0.63% 5/25/2023 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000                           2,000,000 1.06% 1,832,760           0.65% 5/26/2023 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000                           2,000,000 1.06% 1,814,960           0.47% 6/22/2023 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000                           2,000,000 1.06% 1,817,400           0.63% 7/22/2023 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000                           2,000,000 1.06% 1,812,720           0.55% 7/28/2023 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000                           2,000,000 1.06% 1,817,960           0.65% 7/28/2023 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000                           2,000,000 1.06% 1,818,240           0.75% 8/24/2023 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000                           2,000,000 1.06% 1,813,300           0.66% 8/25/2023 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000                           2,000,000 1.06% 1,812,620           0.65% 8/26/2023 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000                           2,000,000 1.06% 1,821,200           0.85% 9/10/2023 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000                           2,000,000 1.06% 1,812,360           0.70% 9/16/2023 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000                           2,000,000 1.06% 1,817,800           0.80% 9/16/2023 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021             2,000,000              2,000,000 1.06% 1,819,680           1.08% 6/9/2023 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000                           2,000,000 1.06% 1,812,380           1.00% 6/30/2023 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000                           3,000,000 1.59% 2,731,410           1.13% 7/15/2023 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000                           2,000,000 1.06% 1,858,720           0.85% 7/15/2023 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000                           2,000,000 1.06% 1,795,500           0.80% 8/26/2023 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000                           3,000,000 1.59% 2,711,580           1.00% 8/26/2023 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000                           2,000,000 1.06% 1,801,700           0.90% 8/26/2023 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340                           2,071,269 1.09% 1,862,760           0.82% 9/11/2023 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960                           1,988,152 1.05% 1,798,180           0.98% 9/10/2023 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000                           3,000,000 1.59% 2,715,720           1.13% 9/29/2023 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000                           2,000,000 1.06% 1,789,060           0.88% 9/30/2023 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000                           3,000,000 1.59% 2,708,610           1.05% 9/30/2023 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000                           3,000,000 1.59% 2,705,790           1.02% 9/30/2023 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000                           2,000,000 1.06% 1,800,080           1.00% 4/19/2023 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000                           2,000,000 1.06% 1,811,480           1.30% 5/18/2023 11/18/2026 FHLB Bond 3130AQFL2 12/29/2021 2,000,000                           2,000,000 1.06% 1,939,960           0.75% 6/29/2023 12/29/2023 FHLB Bond 3130AQHU0 1/19/2022 2,000,000                           2,000,000 1.06% 1,858,800           1.74% 7/19/2023 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000                           2,000,000 1.06% 1,888,020           1.51% 7/25/2023 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000                           2,000,000 1.06% 1,929,520           3.48% 9/10/2023 3/10/2027 FHLMC Bond 3137EAES4 5/3/2022             1,954,860              1,990,710 1.05% 1,979,900           2.25% 6/26/2023 6/26/2023 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000                           2,000,000 1.06% 1,976,940           3.28% 6/15/2023 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000                           2,000,000 1.06% 1,962,340           4.30% 7/28/2023 7/28/2027

Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FNMA Bond 3135GACZ2 11/25/2022 2,000,000                           2,000,000 1.06% 1,996,760           5.40% 5/25/2023 11/25/2024 FHLMC Bond 3134GY4B5 11/28/2022 2,000,000                           2,000,000 1.06% 1,993,240           5.00% 5/15/2023 11/15/2023 FFCB Bond 313312MF4 12/19/2022 1,930,440                           1,955,600 1.03% 1,954,160           4.65% 9/27/2023 9/27/2023 FHLMC Bond 3134GYC26 12/29/2022 2,000,000                           2,000,000 1.06% 1,995,220           4.80% 6/29/2023 12/29/2027 FHLB Bond 313384ED7 1/6/2023 1,976,552                           1,997,506 1.06% 1,998,240           4.59% 4/10/2023 4/10/2023 FHLB Bond 313384JC4 1/13/2023 1,953,994                           1,973,458 1.04% 1,973,500           4.72% 7/14/2023 7/14/2023 FHLB Bond 3130AUFT6 1/27/2023 2,000,000                           2,000,000 1.06% 1,994,380           5.43% 4/27/2023 1/27/2025 FHLB Bond 3130AUP32 1/27/2023 2,250,000                           2,250,000 1.19% 2,238,503           5.98% 4/27/2023 1/27/2028 FHLMCMTN Bond 3134GYGB2 1/30/2023 2,000,000                           2,000,000 1.06% 1,987,220           5.20% 10/26/2023 1/26/2028 FHLMCMTN Bond 3134GYG22 2/16/2023 3,000,000                           3,000,000 1.59% 2,979,810           5.13% 11/16/2023 11/16/2026 FHLMCMTN Bond 3137EAES4 2/17/2023 2,952,433                           2,967,957 1.57% 2,969,850           4.85% 6/26/2023 6/26/2023 FHLB Bond 3130AUTZ7 2/24/2023 2,000,000                           2,000,000 1.06% 1,992,120           6.44% 5/24/2023 2/24/2028 FHLB Bond 3130AUZH0 3/6/2023             2,000,000              2,000,000 1.06% 2,003,500           6.33% 6/6/2023 3/6/2026 FHLB Bond 3130AUZZ0 3/13/2023 2,000,000                           2,000,000 1.06% 1,999,480           6.23% 6/13/2023 3/13/2026 FHLB Bond 3130AV2Z4 3/15/2023 2,000,000                           2,000,000 1.06% 2,001,900           5.35% 9/15/2023 3/15/2024 FHLB Bond 3130AV3P5 3/20/2023 2,000,000                           2,000,000 1.06% 2,004,620           5.50% 9/20/2023 9/20/2024 FHLB Bond 3130AVA44 3/30/2023 3,000,000                           3,000,000 1.59% 3,004,110           6.00% 4/27/2023 3/27/2026 CD ‐ Ally Bank 02007GM83 3/30/2023                250,000                  250,000 0.13%             250,093 5.15% 3/28/2024 3/28/2024 CD ‐ Western Alliance Bank 95763PLA7 3/30/2023                250,000                  250,000 0.13%             250,283 5.30% 1/2/2024 1/2/2024 CD ‐ Dime Community Bank 25432JCF8 3/30/2023                250,000                  250,000 0.13%             250,100 5.15% 7/31/2023 7/31/2023 CD ‐ Zions Bancorp 98970LC43 3/31/2023                250,000                  250,000 0.13%             251,325 5.40% 9/27/2024 9/27/2024 CD ‐ Pacific City Bank 69406PEC9 3/31/2023 250,000                                  250,000 0.13% 250,013              5.05% 6/30/2023 6/30/2023 Sub Total/Average 151,312,835 $      $       151,568,758 80.09% 143,679,102 $   2.30% Money Market 4,221,408 $          $           4,221,408 2.23% 4,221,408 $        4.69% Total City Managed/Average 177,332,910 $      $       177,588,833 89.01% 169,463,563 $   2.53% Bond Reserve Accounts ‐ Held By Trustees 6,847,552 $          $           6,847,552 3.62% 6,847,552 $ Cash/Deposits (1,968,119) $         $          (1,968,119) ‐1.04% (1,968,119) $ PARS and CALPERS CERBT Trust $         6,787,404 $           6,787,404 3.59% 7,252,673 $ GRAND TOTAL/AVERAGE $     188,999,747 $       189,255,670 100% $  181,595,670

CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF MARCH 31, 2023
FOR THE FISCAL YEAR OF 2022-23
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 2.83% 10,925,895 $ 5.77% 10,722,556 $ 2015 Wastewater Rev Bonds - CIP Wastewater Fund 2.83% 1,734,206 0.92% 1,701,931 California CLASS All Funds Pooled 4.76% 9,138,566 4.83% 9,138,566 Federal Issues All Funds Pooled 2.16% 130,194,652 68.79% 126,495,702 Treasury All Funds Pooled 2.20% 20,124,106 10.63% 15,933,400 Certificate of Deposits All Funds Pooled 5.21% 1,250,000 0.66% 1,250,000 Dreyfus Treas Cash Management Acct All Funds Pooled 4.69% 4,221,408 2.23% 4,221,408 SUBTOTAL $ 177,588,833 93.84% 169,463,563 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 3.80% 314 0.00% 314
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 3.80% 399 0.00% 399
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 0.00% 5,797,638 3.06% 5,797,638 Zions Bank - MH Ranch 2015
Blackrock Liq Funds Fed Fund -DI -2015 Agency Fund 3.80% 417,847 0.22% 417,847 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 3.80% 0.33% 631,355 631,355 SUBTOTAL 6,847,552 3.62% 6,847,552
Other Cash/Deposits
General Checking All Funds (2,014,219) -1.06% (2,014,219) Workers' Comp Administrators Workers' Comp 30,000 0.02% 30,000 Petty Cash & Emergency Cash General Fund 16,100 0.01% 16,100 CALPERS CERBT - OPEB Trust 4,487,404 2.37% 4,817,886
PARS - PENSION Trust 2,300,000 1.22% ** 2,434,788
SUBTOTAL 4,819,285 2.55% 5,284,554
Total Cash and Investments $ 189,255,670 100.00% $ 181,595,670 ** As of 2/28/2023

CASH ACTIVITY SUMMARY
FY 2022-23
07/1/22 Change in 3/31/2023
Fund Type Balance Cash Balance Balance
General Fund 26,535,041 $ 1,188,971 $ 27,724,012 $
Community Development 1,919,696 21,076 1,940,772
Housing Successor Agency/ CDBG 4,670,910 (400,465) 4,270,446 Water - Operations 2,980,708 1,391,372 4,372,080
Water Other 18,208,344 3,650,209 21,858,553
Sewer - Operations 1,663,439 597,957 2,261,396
Sewer Other 50,357,493 (4,717,116) 45,640,377
Other Special Revenue 8,482,063 314,508 8,796,571
Streets and Capital Projects (except RDA) 38,126,094 3,312,153 41,438,247 Debt Service 339,861 (43,404) 296,458
Internal Service 21,185,083 1,257,292 22,442,374
Agency Funds (assessment dists./refundable deposits) 9,072,901 (858,516) 8,214,385 Total $ 183,541,633 $ 5,714,037 $ 189,255,670
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 reportshas 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

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2022-23
For The Month Ended March 31, 2023
75% 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 $ 14,753,873 14,753,873 $ 7,509,389 51% $ 6,937,151 $ 572,238 8% Property Tax - RPTTF Residual Distribution 2,429,832 2,429,832 987,196 41% 808,731 178,466 22% Property Tax - Supplemental Roll 200,000 200,000 274,137 137% 127,494 146,643 115% Sales Tax 11,950,308 11,950,308 7,390,811 62% 7,434,322 (43,510) -1% Public Safety Sales Tax 445,105 445,105 270,486 61% 279,570 (9,084) -3% Transient Occupancy Taxes 2,600,000 2,600,000 1,643,563 63% 1,589,372 54,191 3% Franchise (Refuse ,Cable ,PG&E) 2,760,000 2,760,000 1,066,262 39% 1,056,341 9,921 1% Property Transfer Tax 500,000 500,000 243,820 49% 475,204 (231,384) -49% TOTAL TAXES 35,639,118 35,639,118 19,385,664 54% 18,708,184 677,480 4%

LICENSES/PERMITS
Business License 170,000 170,000 145,896 86% 167,024 (21,128) -13% Other Permits 53,975 53,975 431% 39,185 232,855 193,671 494% TOTAL LICENSES/PERMITS 223,975 223,975 378,752 169% 206,209 172,543 84%

FINES AND PENALTIES
Parking Enforcement 2,932 2,932 5,668 193% 2,860 2,807 98% Bails & Fines 46,480 46,480 27,801 60% 27,467 334 1%
Administrative Citations 20,000 20,000 6,428 32% - 6,428 0% TOTAL FINES AND PENALTIES 69,412 69,412 39,897 57% 30,328 9,569 32%

OTHER AGENCIES
Motor Vehicle in-Lieu 40,000 40,000 47,613 119% - 47,613 n/a Other Revenue - Other Agencies 1,304,130 1,304,130 62% 373,093 804,910 431,817 116% TOTAL OTHER AGENCIES 1,344,130 1,344,130 852,523 63% 373,093 479,430 129%

CHARGES CURRENT SERVICES
Police False Alarm Charge 32,280 32,280 29,025 90% 20,123 8,902 44% Business License Application Review 53,000 53,000 36,281 68% 31,613 4,668 15% Membership Services & Rec Programs 5,136,869 5,136,869 3,899,722 76% 3,168,487 731,235 23% Facility Rentals 819,459 819,459 925,928 113% 485,898 440,030 91% Community Services 127,498 127,498 46,816 37% 106,012 (59,196) -56% General Administration Overhead 1,775,408 1,775,408 1,331,556 75% 1,374,228 (42,672) -3% Other Charges Current Services 998,144 998,144 61% 535,955 612,973 77,017 14% TOTAL CURRENT SERVICES 8,942,658 8,942,658 6,882,302 77% 5,722,317 1,159,985 20%

OTHER REVENUE
Use of money/property 774,829 774,829 502,508 65% 580,258 (77,750) -13% Other Revenues 371,910 371,910 56% 219,781 207,412 (12,369) -6% TOTAL OTHER REVENUE 1,146,739 1,146,739 709,920 62% 800,039 (90,119) -11%

TRANSFERS IN
One Time Transfer 180,000 180,000 135,000 75% 134,991 0% 9 Public Safety Facilities Fund 50,000 50,000 37,500 75% 18,747 18,753 100% Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 100,000 n/a - Countywide Solid Waste 355,000 355,000 266,250 75% 243,573 22,677 9% Streets 904,438 904,438 405,424 45% 324,267 81,156 25%
Park Maintenance 650,000 650,000 487,503 75% 487,503 n/a - Sewer Operations 375,000 375,000 281,250 75% 267,867 13,383 5% Water Operations 375,000 375,000 281,250 75% 267,867 13,383 5% Open Space 81,100 81,100 60,825 75% - 60,825 n/a
Park Development 75,000 75,000 56,250 75% - 56,250 n/a
TOTAL TRANSFERS IN 3,145,538 3,145,538 2,111,252 67% 1,901,065 210,186 11% TOTAL GENERAL FUND 50,511,570 50,511,570 30,360,309 60% 27,741,235 2,619,074 9%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 909,478 909,478 538,849 59% 439,072 99,778 23% Interest / Other Revenue/Other Charges 5 58 8 2,600 4482% 503 2,097 417% 202 STREET MAINTENANCE 909,536 909,536 541,449 60% 439,574 101,875 23%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2022-23
For The Month Ended March 31, 2023
75% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 1,438 1,438 2,822 196% 838 1,984 237%
Police Grant/SLEF/JAG 100,000 100,000 115,271 115% 111,285 3,986 4% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 101,438 101,438 118,093 116% 112,123 5,970 5% 206 DEVELOPMENT SERVICES
Building Fees 3,433,600 3,433,600 2,937,459 86% 2,271,913 665,545 29% Planning Fees 1,259,167 1,259,167 462,775 37% 632,946 (170,171) -27% Engineering Fees 1,142,289 1,142,289 883,156 77% 508,430 374,726 74% Other Revenue/Current Charges 346,181 346,181 77% 152,560 266,896 114,335 75% 206 DEVELOPMENT SERVICES 6,181,237 6,181,237 4,550,285 74% 3,565,850 984,436 28% 207 LONG RANGE PLANNING 995,882 995,882 843,378 85% 556,322 287,056 52% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 244 244 652 267% 251 402 160% 215 and 216 HCD BLOCK GRANT 244 244 652 267% 251 402 160% 225 ASSET SEIZURE 979 979 1,022 104% 526 496 94%
229 LIGHTING AND LANDSCAPE 199,916 199,916 111,202 56% 105,088 6,114 6% 230 COMMUNITY FACILITIES DISTRICT 37,591 37,591 27,411 73% 11,937 15,474 130% 232 ENVIRONMENTAL PROGRAMS 553,277 553,277 426,822 77% 383,158 43,664 11% 234 MOBILE HOME PARK RENT STAB. 441 441 6,315 1432% 8,071 (1,756) -22% 236 HOUSING MITIGATION 1,575,835 1,575,835 631,773 40% 990,643 (358,870) -36% 240 EMPLOYEE ASSISTANCE 20,673 20,673 6,228 30% 8,425 (2,197) -26% 246 COUNTYWIDE SOLID WASTE 1,628,603 1,628,603 1,248,895 77% 1,048,667 200,228 19% 247 ENVIRONMENT REMEDIATION 1,023 1,023 1,379 135% 1,398 (19) -1% 255 HOUSING SUCCESSOR AGENCY 233,641 233,641 246,883 106% 219,937 26,946 12% 260 PUBLIC ART 501 501 n/a - 1,100 (1,100) -100%
TOTAL SPECIAL REVENUE FUNDS 12,440,818 12,440,818 8,761,786 70% 7,453,070 1,308,716 18%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,369,271 1,369,271 3,673,932 268% 5,973,344 (2,299,412) -38% 302 PARK MAINTENANCE 540,773 540,773 515,340 95% 524,662 (9,322) -2% 303 LOCAL DRAINAGE 374,484 374,484 958,873 256% 271,314 687,559 253% 304 LOCAL DRAINAGE/NON AB1600 29,166 29,166 102,061 350% 89,080 12,981 15% 306 AGRICULTURE & OPEN SPACE PRESERVATION 5,058 5,058 61,846 1223% 141,812 (79,966) -56% 308 STREET CIP 5,662,650 5,662,650 3,591,757 63% 3,497,611 94,145 3% 309 TRAFFIC IMPACT 5,019,799 5,019,799 6,947,258 138% 7,151,085 (203,827) -3% 315 PUBLIC SAFETY FACILITIES IMPACT 6,221,575 6,221,575 595,746 10% 164,095 431,650 263% 346 PUBLIC FACILITIES NON-AB1600 1,165,537 1,165,537 391,931 34% 1,859,622 (1,467,691) -79% 347 PUBLIC FACILITIES IMPACT 138,168 138,168 106,479 77% 39,955 66,524 166% 348 LIBRARY 480,582 480,582 162,509 34% 189,355 (26,846) -14% 350 UNDERGROUNDING 29,592 29,592 16,798 57% 405,712 (388,914) -96% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY 482,291 482,291 214,262 44% 961,644 (747,382) -78% 360 COMMUNITY/REC IMPACT FUND 1,335,488 1,335,488 494,872 37% 224,785 270,087 120% 375 QUIMBY FEE 653,451 653,451 1,553,241 238% 907,787 645,454 71% TOTAL CAPITAL PROJECTS FUNDS 23,507,885 23,507,885 19,386,905 82% 22,401,864 (3,014,959) -13%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 292,184 292,184 220,692 76% 229,356 (8,664) -4% 441 POLICE FACILITY BOND 387,490 387,490 290,804 75% 288,256 2,547 1% TOTAL DEBT SERVICE FUNDS 679,674 679,674 511,496 75% 517,612 (6,116) -1%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2022-23
For The Month Ended March 31, 2023
75% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

ENTERPRISE FUNDS
640 SEWER OPERATION
Sewer Service Fees 14,400,000 14,400,000 9,891,209 69% 9,556,291 334,918 4% Interest Income/Transfers 38,548 38,548 26,871 70% 9,890 16,981 172% Other Revenue/Current Charges 319,809 319,809 305,316 95% 255,967 49,349 19% 640 SEWER OPERATION 14,758,357 14,758,357 10,223,397 69% 9,822,149 401,248 4% 641 SEWER EXPANSION
Interest Income 64,455 64,455 230,233 357% 90,414 139,818 155% Development Impact Fee 4,336,657 4,336,657 2,541,416 59% 2,023,331 518,085 26% Transfer From-643 (Sewer Replacement) 13,310,782 13,310,782 8,035,993 60% 8,035,993 - n/a 641 SEWER EXPANSION 17,711,894 17,711,894 10,807,642 61% 2,113,746 8,693,896 411% 642 SEWER RATE STABILIZATION 50,000 50,000 66,065 132% 123,052 (56,988) -46% 643 SEWER-CAPITAL PROJECT 6,710,456 6,710,456 5,075,608 76% 3,542,007 1,533,602 43% TOTAL SEWER FUNDS 39,230,707 39,230,707 26,172,712 67% 15,600,954 10,571,758 68% 650 WATER OPERATION
Water Sales 16,400,000 16,400,000 10,715,149 65% 9,379,584 1,335,564 14% Meter Install & Service 50,000 50,000 68,052 136% 73,016 (4,964) -7% Transfers-In / Interest Income 580,372 580,372 672,174 116% 378,086 294,088 78% Other Revenue/Current Charges 614,770 614,770 596,480 97% 612,885 (16,405) -3% 650 WATER OPERATION 17,645,142 17,645,142 12,051,855 68% 10,443,571 1,608,284 15% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 21,044 21,044 29,557 140% 12,928 16,629 129% Development Impact Fee 918,214 918,214 664,153 72% 361,604 302,549 84% 651 WATER EXPANSION 939,258 939,258 693,710 74% 374,532 319,178 85% 652 WATER RATE STABILIZATION - - 32,830 n/a 106,074 (73,244) -69% 653 WATER CAPITAL PROJECT 5,128,809 5,128,809 3,915,766 76% 3,812,615 103,151 3% TOTAL WATER FUNDS 23,713,209 23,713,209 16,694,161 70% 14,736,792 1,957,368 13% TOTAL ENTERPRISE FUNDS 62,943,916 62,943,916 42,866,873 68% 30,337,747 12,529,126 41%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,233,768 2,233,768 1,680,993 75% 1,688,487 (7,494) 0% 740 BUILDING MAINTENANCE 1,655,704 1,655,704 1,241,825 75% 848,063 393,761 46% 741 BUILDING REPLACEMENT 836,114 836,114 647,652 77% 539,392 108,260 20% 745 CIP ADMINISTRATION 1,977,307 1,977,307 1,060,606 54% 1,106,267 (45,660) -4% 760 UNEMPLOYMENT INSURANCE 2,317 2,317 2,996 129% 1,251 1,744 139% 770 WORKERS COMPENSATION 719,150 719,150 654,421 91% 571,413 83,007 15% 790 EQUIPMENT REPLACEMENT 2,219,595 1,259,595 856,770 68% 830,184 26,586 3% 791EMPLOYEE BENEFITS 813,718 813,718 608,523 75% 456,742 151,781 33% 795 GENERAL LIABILITY INSURANCE 1,981,019 1,981,019 1,491,610 75% 1,290,759 200,851 16% TOTAL INTERNAL SERVICE FUNDS 12,438,692 11,478,692 8,245,396 72% 7,332,558 912,838 12% TOTAL FOR ALL FUNDS 162,522,555 $ 161,562,555 $ 110,132,764 $ 68% 95,784,086 $ 14,348,678 $ 15%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2022-23
For the Month Ended March 31, 2023
75% 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 14,493 $ 430,915 $ 332,072 $ - $ 332,072 $ 77% 256,938 $ CITY ATTORNEY 73,043 1,081,769 588,503 157,055 745,557 69% 524,500 CITY MANAGER 62,720 854,800 467,152 10,150 477,302 56% 471,391 HUMAN RESOURCES 63,671 847,361 607,361 - 607,361 72% 527,475

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 27,910 595,414 374,705 1,600 376,305 63% 443,634 Elections 2,244 357,836 212,649 - 212,649 59% 19,403
COUNCIL SVCS & RECORDS MGMT 30,154 953,250 587,354 1,600 588,954 62% 463,037 FINANCE 134,777 2,552,145 1,414,722 634,917 2,049,639 80% 1,150,944 TOTAL ADMINISTRATION 378,858 6,720,240 3,997,165 803,722 4,800,886 71% 3,394,286 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 815,694 6,772,195 4,765,655 633,031 5,398,687 80% 3,946,391 Recreation Facility Rentals 35,793 546,870 358,935 17,785 376,720 69% 398,962 Innovative Transit 51,816 887,471 357,321 502,689 860,010 97% - Community Services 39,272 644,107 425,042 29,008 454,050 70% 371,514 Park Maintenance 87,273 1,495,918 881,891 45,357 927,248 62% 762,669 Environmental Services 17,641 390,733 175,817 - 175,817 45% 156,540 Countywide Solid Waste Program 32,493 354,416 268,455 - 268,455 76% 155,866 Street Maintenance 167,761 2,710,389 1,709,078 95,602 1,804,680 67% 1,594,574 Downtown Maintenance 14,287 325,886 128,771 9,719 138,490 42% 188,863 Cable Television 7,025 74,758 37,958 - 37,958 51% 34,652 COMMUNITY SERVICES 1,269,054 14,202,742 9,108,924 1,333,193 10,442,116 74% 7,610,031 CODE COMPLIANCE 20,557 319,550 145,385 - 145,385 45% 131,219 INFRASTRUCTURE PLANNING & CONGESTION MGMT 491,888 25,991 232,799 5,031 237,829 48% 249,908 ECONOMIC DEVELOPMENT PROGRAMS 54,748 1,207,348 567,656 44,028 611,684 51% 512,342 TOTAL COMMUNITY SERVICES 1,370,350 16,221,529 10,054,764 1,382,251 11,437,014 71% 8,503,500 III. PUBLIC SAFETY
POLICE
PD Administration 150,927 1,676,697 1,145,714 38,311 1,184,025 71% 1,250,374 Field Operations 757,593 10,591,376 7,298,673 19,800 7,318,473 69% 6,761,784 Support Services 224,079 3,389,174 2,043,654 13,799 2,057,453 61% 1,893,646 Emergency Services/Haz Mat 15,855 234,368 155,683 18,648 174,331 74% 145,880 Special Operations 298,895 3,900,732 2,903,773 - 2,903,773 74% 2,060,185 Dispatch Services 154,022 2,116,137 1,500,277 1,500,277 - 71% 1,334,199 POLICE 1,601,371 21,908,484 15,047,774 90,558 15,138,332 69% 13,446,068 FIRE 742,070 8,653,847 6,246,367 271,214 6,517,581 75% 5,579,514 TOTAL PUBLIC SAFETY 2,343,441 30,562,331 21,294,141 361,772 21,655,913 71% 19,025,582 IV. TRANSFERS
Other 107,276 3,687,315 3,365,486 3,365,486 - 91% 3,267,243 TOTAL TRANSFERS 107,276 3,687,315 3,365,486 3,365,486 - 91% 3,267,243 TOTAL GENERAL FUND 4,199,926 57,191,414 38,711,555 2,547,745 41,259,300 72% 34,190,610

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2022-23
For the Month Ended March 31, 2023
75% 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 420 909,478 409,204 - 409,204 45% 327,516 205 PUBLIC SAFETY/SUPP.LAW 104 101,252 100,939 - 100,939 100% 105,436 206 DEVELOPMENT SERVICES FUND
Planning 139,289 1,772,972 1,192,790 793 1,193,582 67% 1,478,154 Building 197,186 2,452,139 1,628,742 115,407 1,744,149 71% 1,575,772 Engineering 176,567 1,907,855 1,309,318 223,151 1,532,468 80% 1,108,088 206 DEVELOPMENT SERVICES FUND 513,042 6,132,966 4,130,849 339,350 4,470,199 73% 4,162,014 207 LONG RANGE PLANNING 64,443 936,040 658,450 18,660 677,110 72% 512,750 215/216 CDBG 7 81 61 - 75% 61 4,122
225 ASSET SEIZURE 63 759 569 - 75% 569 14,232
229 LIGHTING AND LANDSCAPE 7,017 224,538 119,758 10,571 130,330 58% 110,865 230 COMMUNITY FACILITIES DISTRICT 1,522 39,852 23,252 - 23,252 58% 17,962 232 ENVIRONMENT PROGRAMS 35,288 525,533 361,050 6,800 367,850 70% 301,456 234 MOBILE HOME PARK 73 881 661 - 75% 661 333
236 HOUSING MITIGATION 108,987 1,900,261 630,651 102,272 732,923 39% 529,179 240 EMPLOYEE ASSISTANCE 77 20,919 9,883 - 9,883 47% 9,785 246 COUNTYWIDE SOLID WASTE PROGRAM 81,022 1,842,223 1,018,332 667,489 1,685,821 92% 693,771 255 HOUSING SUCCESSOR AGENCY 96,213 1,143,490 885,576 91,667 977,242 85% 802,995 260 PUBLIC ART - 17,000 18,050 - 18,050 106% 4,368
TOTAL SPECIAL REVENUE FUNDS 908,279 13,795,273 8,367,284 1,236,809 9,604,094 70% 7,646,784

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 64,880 2,961,569 752,415 158,974 911,390 31% 5,817,939 302 PARK MAINTENANCE 38,936 664,980 489,168 - 489,168 74% 502,499 303 LOCAL DRAINAGE 6,513 11,167,922 828,572 1,028,373 1,856,945 17% 64,967 304 LOCAL DRAIN. NON-AB1600 3,142 279,113 39,768 27,863 67,630 24% 3,815 306 AGRICULTURE & OPEN SPACE PRESERVATIO 275,854 10,488 94,391 - 94,391 34% 5,476,996 308 STREET CIP 12,374 8,318,556 6,878,555 669,345 7,547,900 91% 2,901,775 309 TRAFFIC IMPACT 44,916 9,301,872 4,582,836 4,765,152 9,347,988 100% 7,417,176 315 PUBLIC SAFETY FACILITIES IMPACT 37,098 10,050,626 651,187 329,934 981,121 10% 261,418 346 PUBLIC FAC.NON AB1600 371 3,413,224 25,480 466 25,946 1% 122,826 347 PUBLIC FACILITIES IMPACT 2,429 279,154 21,865 - 21,865 8% 20,493 348 LIBRARY IMPACT 18,576 222,916 167,187 - 167,187 75% 164,159 350 UNDERGROUNDING 95 1,194,704 856 - 856 0% 855
355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY 1,697 443,838 44,717 1,350 46,067 10% 1,152,763 360 COMM/REC CENTER IMPACT 7,848 2,326,276 713,452 770,289 1,483,741 64% 228,991 375 QUIMBY FEE 154,350 1,564,865 340,693 314,369 655,062 42% 130 TOTAL CAPITAL PROJECTS FUNDS 403,713 52,465,468 15,631,140 8,066,116 23,697,256 45% 24,136,800

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 262 292,184 236,630 - 236,630 81% 236,370 441 POLICE FACILITY BOND DEBT 347 387,490 318,598 - 318,598 82% 314,265 TOTAL DEBT SERVICE FUNDS 609 679,674 555,228 555,228 - 82% 550,635

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2022-23
For the Month Ended March 31, 2023
75% 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 915,114 16,300,411 10,803,273 109,590 10,912,863 67% 10,099,647 641 SEWER CAPITAL EXPANSION 113,904 32,172,615 6,912,073 1,047,060 7,959,132 25% 1,891,016 642 SEWER RATE STABILIZATION 151 1,818 1,363 - 1,363 75% 855 643 SEWER-CAPITAL PROJECTS 5,057,335 23,759,295 11,471,984 388,575 11,860,559 50% 6,141,429 TOTAL SEWER FUND(S) 6,086,504 72,234,139 29,188,693 1,545,225 30,733,918 43% 18,132,946 WATER
Water Operations 1,056,864 16,045,940 10,516,988 589,347 11,106,335 69% 9,981,107 Utility Billing 88,303 1,147,979 760,417 47,319 807,736 70% 675,257 Water Conservation 31,117 439,985 204,657 31,539 236,196 54% 87,060 650 WATER OPERATIONS 1,176,284 17,633,904 11,482,062 668,205 12,150,267 69% 10,743,424 651 WATER CAPITAL EXPANSION 59,370 893,125 535,653 18,340 553,993 62% 605,241 652 WATER RATE STABILIZATION 113 1,362 1,021 - 1,021 75% 279 653 WATER-CAPITAL PROJECTS 8,543 5,617,611 315,268 406,004 721,271 13% 566,644 TOTAL WATER FUND(S) 1,244,311 24,146,001 12,334,005 1,092,548 13,426,553 56% 11,915,588 TOTAL ENTERPRISE FUNDS 7,330,815 96,380,140 41,522,698 2,637,773 44,160,471 46% 30,048,534

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 373,093 2,619,930 1,761,086 57,359 1,818,445 69% 1,296,135 740 BUILDING MAINTENANCE 123,278 1,668,218 1,034,278 101,331 1,135,609 68% 830,937 741 BUILDING REPLACEMENT 2,884 1,836,451 145,326 7,091 152,417 8% 201,982 745 CIP ADMINISTRATION 147,231 1,982,153 1,356,712 7,655 1,364,367 69% 1,265,642 760 UNEMPLOYMENT - 15,000 14,081 - 14,081 94% 7,757
770 WORKERS COMPENSATION 130,816 1,106,358 790,009 - 790,009 71% 748,899 790 EQUIPMENT REPLACEMENT 166,392 2,765,964 575,233 198,446 773,679 28% 570,635 791 EMPLOYEE BENEFITS FUND 75,082 700,000 640,717 - 640,717 92% 575,339 795 GEN. LIABILITY INSURANCE (66,578) 1,893,436 1,698,997 4,650 1,703,647 90% 1,562,375 TOTAL INTERNAL SERVICE FUNDS 952,196 14,587,510 8,016,439 376,532 8,392,972 58% 7,059,702 REPORT TOTAL $ 13,795,538 $ 235,099,480 $ 112,804,345 $ 14,864,975 $ 127,669,320 54% 103,633,065 $

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2022-23
For The Month Ended March 31, 2023
75% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-22 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 33,685,888 $ 30, $ 60% 38, 360,309 $ 68% (8, 711,555 $ 351,246) $ 2,547,745 $ 22,786,897 TOTAL GENERAL FUND $ 33,685,888 $ 30,360,309 60% $ 38,711,555 68% $ (8,351,246) $ 2,547,745 $ 22,786,897 202 STREET MAINTENANCE 63,915 $ 541,449 60% $ 409,204 66% $ 132,245 $ - $ 196,160 205 PUBLIC SAFETY/SUPPL. LAW 251,291 118,093 116% 100,939 69% 17,154 - 268,445 206 DEVELOPMENT SERVICES (495,437) 4,550,285 74% 4, 130,849 67% 419,436 339,350 (415,351) 207 LONG RANGE PLANNING 1,197,975 843,378 85% 658,450 70% 184,928 18,660 1,364,243 215 / 216 CDBG 29,812 652 267% 75% 61 592 - 30,404
225 ASSET SEIZURE 101,644 1,022 104% 75% 569 453 - 102,097 229 LIGHTING AND LANDSCAPE 190,530 111,202 56% 119,758 53% (8,556) 10,571 171,402 230 COMMUNITY FACILITIES DISTRICT 132,368 27,411 73% 23,252 58% 4,159 - 136,527 232 ENVIRONMENTAL PROGRAMS 236,258 426,822 77% 361,050 69% 65,772 6,800 295,230 234 MOBILE HOME PK RENT STAB. 69,992 6,315 1432% 75% 661 5,654 - 75,646 235 SENIOR HOUSING 236,079 n/a - n/a - - - 236,079
236 HOUSING MITIGATION 5,879,386 631,773 40% 630,651 33% 1,122 102,272 5,778,236 240 EMPLOYEE ASSISTANCE 61,964 6,228 30% 9,883 47% (3,655) - 58,309 246 COUNTYWIDE SOLID WASTE 129,862 1,248,895 135% 1,018,332 55% 230,562 667,489 (307,064) 247 ENVIRONMENT REMEDIATION 139,118 1,379 135% n/a - 1,379 - 140,497 255 HOUSING SUCCESSOR AGENCY 3,091,721 246,883 106% 885,576 77% ( 638,692) 91,667 2,361,362 260 PUBLIC ART 67,129 n/a 18,050 - 106% (18,050) - 49,079 TOTAL SPECIAL REVENUE FUNDS $ 11,383,607 $ 8,761,786 70% $ 8,367,284 61% $ 394,502 $ 1,236,809 $ 10,541,299 301 PARK DEV. IMPACT FUND $ (822,989) $ 3,673,932 268% 752,415 $ 25% 2, $ 921,517 $ 158,974 $ 1,939,553 302 PARK MAINTENANCE 2,567,344 515,340 95% 489,168 74% 26,172 - 2,593,516 303 LOCAL DRAINAGE 11,596,359 958,873 256% 828,572 7% 130,301 1,028,373 10,698,287 304 LOCAL DRAINAGE/NON-AB1600 1,374,682 102,061 350% 39,768 14% 62,293 27,863 1,409,113 306 AG. AND OPEN SPACE PRESERVATION 589,238 61,846 1223% 94,391 34% (32, 545) - 556,693 308 STREET CIP 5,741,205 3,591,757 63% 6, 878,555 83% (3, 286,799) 669,345 1,785,062 309 TRAFFIC IMPACT FUND 1,187,038 6,947,258 138% 4,582,836 49% 2, 364,422 4,765,152 (1,213,692) 315 PUBLIC SAFETY FACILITIES IMPACT 3,221,824 595,746 10% 651,187 6% (55, 441) 329,934 2,836,449 346 PUBLIC FACILITIES NON-AB1600 2,878,803 391,931 34% 25,480 1% 366,452 466 3,244,788 347 PUBLIC FACILITIES IMPACT FUND 1,017,051 106,479 77% 21,865 8% 84,614 - 1,101,665 348 LIBRARY IMPACT FUND 1,444,583 162,509 34% 167,187 75% (4,678) - 1,439,905 350 UNDERGROUNDING 1,600,648 16,798 57% 856 0% 15,942 - 1,616,590 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY (46,063) 214,262 44% 44,717 10% 169,545 1,350 122,132 360 COMM/REC CTR IMPACT FUND 1,295,025 494,872 37% 713,452 31% ( 218,579) 770,289 306,156 375 QUIMBY FEE 839,370 1,553,241 238% 340,693 22% 1, 212,548 314,369 1,737,549 TOTAL CAPITAL PROJECT FUNDS $ 34,484,118 $ 19,386,905 82% $ 15,631,140 30% $ 3,755,765 $ 8,066,116 $ 30,173,767 420 CIVIC CENTER DEBT $ 173,445 $ 220,692 76% $ 236,630 81% (15, $ 938) $ 314 $ 157,194 441 POLICE FACILITY BOND DEBT 166,744 290,804 75% 318,598 82% (27, 794) 399 138,551 TOTAL DEBT SERVICE FUNDS $ 340,189 $ 511,496 75% $ 555,228 82% $ (43,732) $ 712 $ 295,745 640 SEWER OPERATIONS $ 4,567,000 $ 10,223,397 69% 10, $ 803,273 66% ( $ 579,876) 109,590 3,877,534 641 SEWER IMPACT FUND* 20,552,531 10,807,642 61% 6, 912,073 21% 3, 895,569 1,047,060 23,401,040 642 SEWER RATE STABILIZATION 2,726,339 66,065 132% 1,363 75% 64,702 - 2,791,041 643 SEWER-CAPITAL PROJECTS 22,007,034 5,075,608 76% 11, 471,984 48% (6, 396,376) 388,575 15,222,083 650 WATER OPERATIONS 4,289,349 12,051,855 68% 11, 482,062 65% 569,792 668,205 4,190,937 651 WATER IMPACT FUND* 2,924,596 693,710 74% 535,653 60% 158,057 18,340 3,064,313 652 WATER RATE STABILIZATION 3,154,313 32,830 n/a 1,021 75% 31,809 - 3,186,122 653 WATER -CAPITAL PROJECT 10,397,946 3,915,766 76% 315,268 6% 3, 600,498 406,004 13,592,441 TOTAL ENTERPRISE FUNDS $ 70,619,108 $ 42,866,873 68% $ 41,522,698 43% $ 1,344,175 $ 2,637,773 $ 69,325,510 730 INFORMATION SERVICES $ 795,800 $ 1,680,993 75% 1, $ 761,086 67% (80, $ 093) $ 57,359 $ 658,348 740 BUILDING MAINTENANCE (166,058) 1,241,825 75% 1, 034,278 62% 207,547 101,331 (59,842) 741 BUILDING REPLACEMENT 3,719,439 647,652 77% 145,326 8% 502,326 7,091 4,214,674 745 CIP ENGINEERING 8,327 1,060,606 54% 1, 356,712 68% ( 296,105) 7,655 (295,433) 760 UNEMPLOYMENT 316,781 2,996 129% 14,081 94% (11, 085) - 305,696 770 WORKERS COMPENSATION 1,944,442 654,421 91% 790,009 71% ( 135,589) 30,000 1,778,853 790 EQUIPMENT REPLACEMENT 6,113,244 856,770 68% 575,233 21% 281,537 198,446 6,196,335 791 EMPLOYEE BENEFITS FUNDS (161,343) 608,523 75% 640,717 92% (32, 194) - (193,537) 795 GEN. LIABILITY INSURANCE 1,123,565 1,491,610 75% 1, 698,997 90% ( 207,388) 4,650 911,527 TOTAL INTERNAL SERVICE FUNDS $ 13,694,197 $ 8,245,396 72% $ 8,016,439 55% $ 228,956 $ 406,532 $ 13,516,621 Revenues Expenses Ending Fund Balance

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2022-23
For The Month Ended March 31, 2023
75% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-22 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Ending Fund Balance

SUMMARY BY FUND TYPE
GENERAL FUND GROUP 33,685,888 $ 30, $ 60% 38, 360,309 $ 68% (8, 711,555 $ 351,246) $ 2,547,745 $ 22,786,897 SPECIAL REVENUE GROUP 11,383,607 8, 70% 8, 761,786 61% 367,284 394,502 1,236,809 10,541,299 DEBT SERVICE GROUP 340,189 75% 511,496 82% (43, 555,228 732) 712 295,745 CAPITAL PROJECTS GROUP 34,484,118 19, 82% 15, 386,905 30% 3, 631,140 755,765 8,066,116 30,173,767 ENTERPRISE GROUP 70,619,108 42, 68% 41, 866,873 43% 1, 522,698 344,175 2,637,773 69,325,510 INTERNAL SERVICE GROUP 13,694,197 8, 72% 8, 245,396 55% 016,439 228,956 406,532 13,516,621 TOTAL ALL GROUPS 164,207,107 $ $ 68% 110,132,764 $ 48% (2, 112,804,345 $ 671,581) $ 14,895,687 $ 146,639,839 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.

City Manager's Signature Authority
Contracts and Agreements Between $25,000 to $60,000 Entered Since 1/26/2023 to 4/4/2023 Vendor Name Desription of Service Begin Date End Date Department Amount McLaughlin, Inc.

Police Department Building Exterior
painting 1/28/2023 4/27/2023 CSD $48,370
Roddick Pool Products, Inc.
2023 AC and CRC Slidewaxing
gg Maintenance Service Agreement 2/22/2023 4/13/2023 CSD $43,790 Surveying Services, Inc.

DBA Hanna Brunetti
On call map review and City Surveyor
Services 2/12/2023 6/30/2023 CSD $55,000
Daiohs, USA, INC. DBA First
Choice Coffee Services
City Wide Coffee Services Master
gg Agreement 2/16/2023 12/31/2024 CSD $26,000
Surveying Services, Inc.

DBA Hanna Brunetti Fisher Basin Survey 2/16/2023 11/30/2023 E&U $38,775 Erin Lagourgue
Investigations Investigative Services 3/7/2023 9/9/9999 CAO $25,000 Golden Bear Detailing On-Site Car Washing Services 3/1/2023 6/30/2025 CSD $52,722 Burke, Williams & Sorensen,
LLP Legal consulting services 3/30/2023 3/30/2028 CAO $60,000

COOPERATIVE FIRE PROGRAMS

FIRE PROTECTION REIMBURSEMENT AGREEMENT
LG-1 REV. 1/2023
AGREEMENT NUMBER 1CA06244
REGISTRATION NUMBER:

1. This Agreement is entered into between the State Agency and the Local Agency named below:

STATE AGENCY'S NAME
California Department of Forestry and Fire Protection – (CAL FIRE) LOCAL AGENCY’S NAME
City of Morgan Hill

2. The term of this Agreement is: July 1, 2023 through June 30, 2028

3. The maximum amount of this
Agreement is:
$ 54,933,517.00
Fifty Four Million, Nine Hundred Thirty Three Thousand, Five Hundred Seventeen Dollars and No Cents

4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made a part of the Agreement.

Exhibit A – Scope of Work – Includes page 2 (contact page) in count for Exhibit A 4 pages Exhibit B – Budget Detail and Payment Provisions 2 pages Exhibit C – General Terms and Conditions 7 pages
Exhibit D – Additional Provisions 15 pages
Exhibit E – Description of Other Services 1 pages
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

LOCAL AGENCY California Department of General
Services Use Only LOCAL AGENCY’S NAME
City of Morgan Hill
BY (Authorized Signature) DATE SIGNED(Do not type)


PRINTED NAME AND TITLE OF PERSON SIGNING
Christina Turner, City Manager

ADDRESS
17575 Peak Avenue, Morgan Hill, CA 95037

STATE OF CALIFORNIA

AGENCY NAME
California Department of Forestry and Fire Protection
BY (Authorized Signature) DATE SIGNED(Do not type)


PRINTED NAME AND TITLE OF PERSON SIGNING
Matthew Sully, Assistant Deputy Director, Cooperative Fire ADDRESS P.O. Box 944246, Sacramento, CA 94244-2460

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 2

EXHIBIT A

COOPERATIVE FIRE PROGRAMS

FIRE PROTECTION REIMBURSEMENT AGREEMENT
The project representatives during the term of this agreement will be:

CAL FIRE Unit Chief: George Huang Local Agency: City of Morgan Hill Name: Marcus Hernandez Name: Christina Turner
Phone: (408)779-2121 Phone: (408)779-7271
Fax: (408)779-1679 Fax: N/A
All required correspondence shall be sent through U.S. Postal Service by certified mail and directed to:

CAL FIRE Unit Chief: George Huang Local Agency: City of Morgan Hill Section/Unit: Santa Clara Unit Section/Unit: Fire Department Attention: MRG Asst Chief Attention: City Manager
Address: 15670 Monterey St
Morgan Hill, CA 95037
Address: 17575 Peak Avenue
Morgan Hill, CA 95037
Phone: (408)779-2121 Phone: (408)779-7271
Fax: (408)779-1679 Fax: N/A
Send an additional copy of all correspondence to:

CAL FIRE
Cooperative Fire Services
P.O. Box 944246
Sacramento, CA 94244-2460

AUTHORIZATION
As used herein, Director shall mean Director of CAL FIRE. This agreement, its terms and conditions are authorized under the Public Resources Code Sections 4141, 4142, 4143 and 4144, as applicable.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 3

EXHIBIT A

SCOPE OF WORK
Under Public Resources Code Section 4114 and other provisions of law, STATE maintains fire prevention and fire suppression forces including the necessary equipment, personnel, and facilities required to prevent and extinguish forest fires.

The purpose of this agreement is to provide mutually advantageous fire and emergency services through an effective consolidated organization, wherein the STATE is primarily financially responsible for protecting natural resources from vegetation fires and the LOCAL AGENCY is primarily financially responsible for protecting life and property from fires and other emergencies. The LOCAL AGENCY shall have sole authority to establish the fire protection organization and structure needed to meet the determined level of service. This level of service may be based on the LOCAL AGENCY governing board’s established fiscal parameters and assessment of risks and hazards. LOCAL AGENCY personnel providing services under this agreement may include any one or a combination of the following: regular employees, persons temporarily employed and commonly known as volunteers, paid-call firefighters, or others temporarily employed to perform any emergency work or emergency service including, but not limited to fire prevention, fire suppression and emergency medical response.

To comply with the STATE’s mandate for full cost recovery of goods and services provided for others, the LOCAL AGENCY shall be responsible for all STATE costs, both direct and indirect, required to execute the terms of this agreement. These costs shall include, but not be limited to: required training and associated post coverage, employee uniform and Personal Protective Equipment (PPE) costs.

1. FIRE PROTECTION SERVICES TO BE PROVIDED BY THE STATE STATE provides a modern, full service fire protection and emergency incident management agency that provides comprehensive fire protection and other emergency incident response. STATE designs regional fire protection solutions for urban and rural communities by efficiently utilizing all emergency protection resources. Regional solutions provide the most effective method of protecting the citizens of California at local, county and state levels.

Fire protection services to be provided by STATE under this agreement shall include the following:
(check boxes below that apply)
1) Emergency Fire Protection, Medical and Rescue Response: services include commercial, residential, and wildland fire protection, prevention and investigation; hazardous materials incident response; emergency vehicle extrication; hazardous conditions response (flooding, downed power lines, earthquake, terrorist incident, etc.); emergency medical and rescue response; and public service assistance. Also included are management support services that include fire department administration, training and safety, personnel, finance and logistical support.
2) Basic Life Support Services: emergency medical technician (EMT) level emergency medical response providing first aid, basic life support (BLS), airway management, administration of oxygen, bleeding control, and life support system stabilization until patients are transported to the nearest emergency care facility.
3) Advanced Life Support Services: paramedic level emergency medical response providing early advanced airway management, intravenous drug therapy, and life support system stabilization until patients are transported to the nearest emergency care facility. 4) Dispatch Services: provide fire department 9-1-1 emergency dispatch by CAL FIRE Fire/Emergency Command Center (ECC). CAL FIRE will be responsible for fire/emergency

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 4
dispatching emergency resource units covered under this agreement. The CAL FIRE ECC is staffed with a Battalion Chief, three or more Fire Captains and Communications Operators to provide 24/7 year-round coverage. There is always an officer of Captain rank or higher to serve as the shift supervisor and command officer. CAL FIRE uses an integrated Computer Aided Dispatch (CAD) system using the latest technology, to direct the closest available resources to all emergency incidents.
5) Fire Code Inspection, Prevention and Enforcement Services: CAL FIRE has staff Fire Inspectors serving under the direction of the LOCAL AGENCY Fire Marshal to provide services to the area covered by this agreement. Fire Code Enforcement will normally be available five days per week, with emergency or scheduled enforcement inspections available seven days per week.

Fire Prevention and Investigation services will be provided by CAL FIRE Prevention Officers trained in arson, commercial, and wildland fire investigation. Officers are available by appointment for site visits and consultations. Officers are trained at CAL FIRE’s Peace Officer Standard Training (POST) certified law enforcement training academy and they cooperate effectively with all local, state and federal law enforcement agencies.
6) Land Use/ Pre-Fire Planning Services – CAL FIRE staff will provide community land use planning, administration of Pre-Fire project work, including community outreach, development of community education programs, project quality control, maintenance of project records and submittal of progress reports, completion of required environmental documentation, acquisition of required permits and completion of other associated administrative duties. 7) Disaster planning services (listed in Exhibit E, Description of Other Services, attached hereto and made a part of this agreement)
8) Specific service descriptions and staffing coverage, by station (listed in Exhibit E, Description of Other Services, attached hereto and made a part of this agreement) 9) Extended Fire Protection Service Availability (Amador)

2. ADMINISTRATION
Under the requirements of California Public Resources Code Section 4114 and other provisions of law, STATE maintains fire prevention and firefighting services as outlined in Exhibit D, Schedule B of this agreement.

A. Director shall select and employ a Region Chief who shall, under the direction of the Director/Chief Deputy Director, manage all aspects of fire prevention and fire protection services and forestry-related programs.

B. Director will select and employ a Unit Chief who shall, under the supervision and direction of Director/Region Chief or a lawful representative, have charge of the organization described in Exhibit D, Schedules A, B and C included hereto and made a part of this agreement.

C. LOCAL AGENCY shall appoint the Unit Chief as the LOCAL AGENCY Fire Chief for all Emergency Fire Protection, Medical and Rescue Response Agreements, pursuant to applicable statutory authority. The Unit Chief may delegate this responsibility to qualified staff.

D. The Unit Chief may dispatch personnel and equipment listed in Exhibit D, Schedules A, B and C from the assigned station or location under guidelines established by LOCAL AGENCY and approved by STATE. Personnel and/or equipment listed in Exhibit D, Schedule B may be dispatched at the sole discretion of STATE.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 5
E. The Unit Chief shall exercise professional judgment consistent with STATE policy and his or her employment by STATE in authorizing or making any assignments to emergencies and other responses, including assignments made in response to requests for mutual aid.

F. Except as may be otherwise provided for in this agreement, STATE shall not incur any obligation on the part of LOCAL AGENCY to pay for any labor, materials, supplies or services beyond the total set forth in the respective Exhibit D, Schedules A and C, as to the services to be rendered pursuant to each Schedule.

G. Nothing herein shall alter or amend or be construed to alter or amend any Collective Bargaining Agreement or Memorandum of Understanding between the State of California and its employees under the State Employer-Employee Relations Act.

3. SUPPRESSION COST RECOVERY
As provided in Health and Safety Code (H&SC) Section 13009, STATE may bring an action for collection of suppression costs of any fire caused by negligence, violation of law, or failure to correct noticed fire safety violations. When using LOCAL AGENCY equipment and personnel under the terms of this agreement, STATE may, at the request of LOCAL AGENCY, bring such an action for collection of costs incurred by LOCAL AGENCY. In such a case LOCAL AGENCY appoints and designates STATE as its agent in said collection proceedings. In the event of recovery, STATE shall deduct fees and litigation costs in a proportional percentage amount based on verifiable and justifiable suppression costs for the fire at issue. These recovery costs are for services provided which are beyond the scope of those covered by the local government administrative fee.

In all such instances, STATE shall give timely notice of the possible application of H&SC Section 13009 to the representative designated by LOCAL AGENCY.

4. MUTUAL AID
When rendering mutual aid or assistance as authorized in H&SC Sections 13050 and 13054, STATE may, at the request of LOCAL AGENCY, demand payment of charges and seek reimbursement of LOCAL AGENCY costs for personnel, equipment and operating expenses as funded herein, under authority given by H&SC Sections 13051 and 13054. STATE, in seeking said reimbursement pursuant to such request of LOCAL AGENCY, shall represent LOCAL AGENCY by following the procedures set forth in H&SC Section 13052. Any recovery of LOCAL AGENCY costs, less expenses, shall be paid or credited to LOCAL AGENCY, as directed by LOCAL AGENCY.

In all such instances, STATE shall give timely notice of the possible application of H&SC Sections 13051 and 13054 to the officer designated by LOCAL AGENCY.

5. PROPERTY PURCHASE AND ACCOUNTING
LOCAL AGENCY shall be responsible for all costs associated with property required by personnel to carry out this agreement. Employee uniform costs will be assessed to the LOCAL AGENCY through the agreement billing process. Personal Protective Equipment (PPE) costs shall be the responsibility of the LOCAL AGENCY. By mutual agreement, PPE meeting the minimum specifications established by the STATE may be purchased directly by the LOCAL AGENCY. Alternately, the STATE will supply all PPE and the LOCAL AGENCY will be billed for costs incurred.

All property provided by LOCAL AGENCY and by STATE for the purpose of providing fire protection services shall be marked and accounted for by the Unit Chief in such a manner as to conform to the regulations, if any, established by the parties for the segregation, care, and use of the respective properties.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 6

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

1. PAYMENT FOR SERVICES
A. LOCAL AGENCY shall pay STATE actual cost for fire protection services pursuant to this agreement an amount not to exceed that set forth in Exhibit D, Schedule A for each fiscal year. STATE shall prepare an Exhibit D, Schedule A each year, which shall be the basis for payment for the entire fiscal year for which services are provided.

B. Any other funds designated by LOCAL AGENCY to be expended under the supervision of or for use by a Unit Chief for fire protection services shall be set forth in Exhibit D, Schedule C. This clause shall not limit the right of LOCAL AGENCY to make additional expenditures, whether under Exhibit D, Schedule C or otherwise.

C. STATE shall invoice LOCAL AGENCY for the cost of fire protection services on a quarterly basis as follows:
1) For actual services rendered by STATE during the period of July 1 through September 30, by an invoice filed with LOCAL AGENCY on or after December 10. 2) For actual services rendered by STATE during the period October 1 through December 31, by an invoice filed with LOCAL AGENCY on or after December 31. 3) For actual services rendered by STATE during the period January 1 through March 31, by an invoice filed with LOCAL AGENCY on or after March 31. 4) For the estimated cost of services during the period April 1 through June 30, by an invoice filed in advance with LOCAL AGENCY on or after March 1. 5) A final statement shall be filed with LOCAL AGENCY by October 1 following the close of the fiscal year, reconciling the payments made by LOCAL AGENCY with the cost of the actual services rendered by STATE and including any other costs as provided herein, giving credit for all payments made by LOCAL AGENCY and claiming the balance due to STATE, if any, or refunding to LOCAL AGENCY the amount of any overpayment.
6) All payments by LOCAL AGENCY shall be made within thirty (30) days of receipt of invoice from STATE, or within thirty (30) days after the filing dates specified above, whichever is later.
7) The STATE reserves the right to adjust the frequency of billing and payment to a monthly cycle with a thirty (30) day written notice to the LOCAL AGENCY when:
a. The Director predicts a cash flow shortage, or
b. When determined by the Region Chief, after consulting with the Unit Chief and the LOCAL AGENCY Contract Administrator, that the LOCAL AGENCY may not have the financial ability to support the contract at the contract level.

D. Invoices shall include actual or estimated costs as provided herein of salaries and employee benefits for those personnel employed, charges for operating expenses and equipment and the administrative charge in accordance with Exhibit D, Schedule A.

When "contractual rates" are indicated, the rate shall be based on an average salary plus all benefits. "Contractual rates" means an all-inclusive rate established in Exhibit D, Schedule A for total costs to STATE, per specified position, for 24-hour fire protection services during the period covered.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 7
E. STATE shall credit the LOCAL AGENCY, or cover behind at no cost, for the costs of Non-post (e.g. Fire Marshal, Training Officer, etc.) positions and equipment assigned to STATE responsibility fires or other STATE funded emergency incidents. The STATE shall notify the LOCAL AGENCY when this occurs.

2. COST OF OPERATING AND MAINTAINING EQUIPMENT AND PROPERTY The cost of maintaining, operating, and replacing any and all property and equipment, real or personal, furnished by the parties hereto for fire protection purposes, shall be borne by the party owning or furnishing such property or equipment unless otherwise provided for herein or by separate written agreement.

3. BUDGET CONTINGENCY CLAUSE
A. If the LOCAL AGENCY’s governing authority does not appropriate sufficient funds for the current year or any subsequent years covered under this Agreement, which results in an inability to pay the STATE for the services specified in this Agreement, the LOCAL AGENCY shall promptly notify the STATE and this Agreement will terminate pursuant to the notice periods required herein.

B. If funding for any fiscal year is reduced or deleted by the LOCAL AGENCY for purposes of this program, the LOCAL AGENCY shall promptly notify the STATE, and the STATE shall have the option to either cancel this Agreement with no liability occurring to the STATE, or offer an agreement amendment to LOCAL AGENCY to reflect the reduced amount, pursuant to the notice terms herein.

C. If the STATE Budget Act does not appropriate sufficient funds to provide the services for the current year or any subsequent years covered under this Agreement, which results in an inability to provide the services specified in this Agreement to the LOCAL AGENCY, the STATE shall promptly notify the LOCAL AGENCY, and this Agreement will terminate pursuant to the notice periods required herein.

D. If funding for any fiscal year is reduced or deleted by the STATE Budget Act for purposes of this program, the STATE shall promptly notify the LOCAL AGENCY, and the LOCAL AGENCY shall have the option to either cancel this Agreement with no liability occurring to the LOCAL AGENCY, or offer an agreement amendment to LOCAL AGENCY to reflect the reduced services, pursuant to the notice terms herein.

E. Notwithstanding the foregoing provisions in paragraphs A and B above, the LOCAL AGENCY shall remain responsible for payment for all services actually rendered by the STATE under this Agreement regardless of LOCAL AGENCY funding being reduced, deleted or not otherwise appropriated for this program. The LOCAL AGENCY shall promptly notify the STATE in writing of any budgetary changes that would impact this Agreement.

F. LOCAL AGENCY and STATE agree that this Budget Contingency Clause shall not relieve or excuse either party from its obligation(s) to provide timely notice as may be required elsewhere in this Agreement.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 8

EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. STATE will not commence performance until such approval has been obtained.

2. AMENDMENT: This agreement may be amended by mutual consent of LOCAL AGENCY and STATE. No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties.

If during the term of this agreement LOCAL AGENCY shall desire a reduction in STATE civil service employees assigned to the organization provided for in Exhibit D, Schedule A, LOCAL AGENCY shall provide 120 days written notice of the requested reduction. Notification shall include the following: (1) The total amount of reduction; (2) The firm effective date of the reduction; and (3) The number of employees, by classification, affected by a reduction. If such notice is not provided, LOCAL AGENCY shall reimburse STATE for relocation costs incurred by STATE as a result of the reduction. Personnel reductions resulting solely from an increase in STATE employee salaries or STATE expenses occurring after signing this agreement and set forth in Exhibit D, Schedule A to this agreement shall not be subject to relocation expense reimbursement by LOCAL AGENCY.

If during the term of this agreement costs to LOCAL AGENCY set forth in any Exhibit D, Schedule A to this agreement increase and LOCAL AGENCY, in its sole discretion, determines it cannot meet such increase without reducing services provided by STATE, LOCAL AGENCY shall within one hundred twenty (120) days of receipt of such Schedule notify STATE and designate which adjustments shall be made to bring costs to the necessary level. If such designation is not received by STATE within the period specified, STATE shall reduce services in its sole discretion to permit continued operation within available funds.

3. ASSIGNMENT: This Agreement is not assignable by the LOCAL AGENCY either in whole or in part, without the consent of the STATE in the form of a formal written amendment.

4. EXTENSION OF AGREEMENT:

A. One year prior to the date of expiration of this agreement, LOCAL AGENCY shall give STATE written notice of whether LOCAL AGENCY will extend or enter into a new agreement with STATE for fire protection services and, if so, whether LOCAL AGENCY intends to change the level of fire protection services from that provided by this agreement. If this agreement is executed with less than one year remaining on the term of the agreement, LOCAL AGENCY shall provide this written notice at the time it signs the agreement and the one year notice requirement shall not apply.

B. If LOCAL AGENCY fails to provide the notice, as defined above in (A), STATE shall have the option to extend this agreement for a period of up to one year from the original termination date and to continue providing services at the same or reduced level as STATE determines would be appropriate during the extended period of this agreement. Six months prior to the date of expiration of this agreement, or any extension hereof, STATE shall give written notice to LOCAL AGENCY of any extension of this agreement and any change in the level of fire protection services STATE will provide during the extended period of this agreement.

Services provided and obligations incurred by STATE during an extended period shall be accepted by LOCAL AGENCY as services and obligations under the terms of this agreement.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
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C. The cost of services provided by STATE during the extended period shall be based upon the amounts that would have been charged LOCAL AGENCY during the fiscal year in which the extended period falls had the agreement been extended pursuant hereto. Payment by LOCAL AGENCY for services rendered by STATE during the extended period shall be as provided in Exhibit B, Section 1, B of this agreement.

5. AUDIT: STATE, including the Department of General Services and the Bureau of State Audits, and LOCAL AGENCY agree that their designated representative shall have the right to review and to copy any records and supporting documentation of the other party hereto, pertaining to the performance of this agreement. STATE and LOCAL AGENCY agree to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated, and to allow the auditor(s) of the other party access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. STATE and LOCAL AGENCY agree to a similar right to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

6. INDEMNIFICATION: Each party, to the extent permitted by law, agrees to indemnify, defend and save harmless the other party, its officers, agents and employees from (1) any and all claims for economic losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm, or corporation furnishing or supplying work services, materials or supplies to that party and (2) from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by that party, in the performance of any activities of that party under this agreement, except where such injury or damage arose from the sole negligence or willful misconduct attributable to the other party or from acts not within the scope of duties to be performed pursuant to this agreement; and (3) each party shall be responsible for any and all claims that may arise from the behavior and/or performance of its respective employees during and in the course of their employment to this cooperative agreement.

7. DISPUTES: LOCAL AGENCY shall select and appoint a "Contract Administrator" who shall, under the supervision and direction of LOCAL AGENCY, be available for contract resolution or policy intervention with the STATE’s Region Chief when, upon determination by the designated STATE representative, the Unit Chief acting as LOCAL AGENCY’s Fire Chief under this agreement faces a situation in which a decision to serve the interest of LOCAL AGENCY has the potential to conflict with STATE interest or policy. Any dispute concerning a question of fact arising under the terms of this agreement which is not disposed of within a reasonable period of time by the LOCAL AGENCY and STATE employees normally responsible for the administration of this agreement shall be brought to the attention of the CAL FIRE Director or designee and the Chief Executive Officer (or designated representative) of the LOCAL AGENCY for joint resolution. For purposes of this provision, a “reasonable period of time” shall be ten (10) calendar days or less. STATE and LOCAL AGENCY agree to continue with the responsibilities under this Agreement during any dispute.

8. TERMINATION FOR CAUSE/CANCELLATION:

A. If LOCAL AGENCY fails to remit payments in accordance with any part of this agreement, STATE may terminate this agreement and all related services upon 60 days written notice to LOCAL AGENCY. Termination of this agreement does not relieve LOCAL AGENCY from providing STATE full compensation in accordance with terms of this agreement for services actually rendered by STATE pursuant to this agreement.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 10
B. This agreement may be cancelled at the option of either STATE or LOCAL AGENCY at any time during its term, with or without cause, on giving one year’s written notice to the other party. Either LOCAL AGENCY or STATE electing to cancel this agreement shall give one year’s written notice to the other party prior to cancellation.

9. INDEPENDENT CONTRACTOR: Unless otherwise provided in this agreement LOCAL AGENCY and the agents and employees of LOCAL AGENCY, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the STATE.

10. NON-DISCRIMINATION CLAUSE: During the performance of this agreement, LOCAL AGENCY shall be an equal opportunity employer and shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS) mental disability, medical condition (e.g.cancer), age (over 40), marital status, denial of family care leave, veteran status, sexual orientation, and sexual identity. LOCAL AGENCY shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. LOCAL AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. LOCAL AGENCY shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.

In addition, LOCAL AGENCY acknowledges that it has obligations relating to ethics, Equal Employment Opportunity (EEO), the Fire Fighter’s Bill of Rights Act (FFBOR), and the Peace Officer’s Bill of Rights Act (POBOR). LOCAL AGENCY shall ensure that its employees comply with all the legal obligations relating to these areas. LOCAL AGENCY shall ensure that its employees are provided appropriate training.

11. TIMELINESS: Time is of the essence in the performance of this agreement.

12. COMPENSATION: The consideration to be paid STATE, as provided herein, shall be in compensation for all of STATE’s expenses incurred in the performance hereof, including travel, per Diem, and taxes, unless otherwise expressly so provided.

13. GOVERNING LAW: This agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

14. CHILD SUPPORT COMPLIANCE ACT: “For any Agreement in excess of $100,000, the LOCAL AGENCY acknowledges in accordance with Public Contract Code 7110, that:

A. The LOCAL AGENCY recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
B. The LOCAL AGENCY, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.”

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
Page No.: 11

15. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

16. COMPLIANCE WITH THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY

ACT (HIPAA)
The STATE and LOCAL AGENCY have a responsibility to comply with the provisions of the 1996 Federal Health Insurance Portability and Accountability Act (HIPAA) and the 2001 State Health Insurance Portability and Accountability Implementation Act. HIPAA provisions become applicable once the association and relationships of the health care providers are determined by the LOCAL AGENCY. It is the LOCAL AGENCY’S responsibility to determine their status as a “covered entity” and the relationships of personnel as “health care providers”, “health care clearinghouse”, “hybrid entities”, business associates”, or “trading partners”. STATE personnel assigned to fill the LOCAL AGENCY’S positions within this Agreement, and their supervisors, may fall under the requirements of HIPAA based on the LOCAL AGENCY’S status. It is the LOCAL AGENCY’S responsibility to identify, notify, train, and provide all necessary policy and procedures to the STATE personnel that fall under HIPAA requirements so that they can comply with the required security and privacy standards of the act.

17. LIABILITY INSURANCE
The STATE and LOCAL AGENCY shall each provide proof of insurance in a form acceptable to the other party at no cost one to the other, to cover all services provided and use of local government facilities covered by this agreement. If LOCAL AGENCY is insured and/or self-insured in whole or in part for any losses, LOCAL AGENCY shall provide a completed Certification of Self Insurance (Exhibit D, Schedule E) or certificate of insurance, executed by a duly authorized officer of LOCAL AGENCY. Upon request of LOCAL AGENCY the STATE shall provide a letter from DGS, Office Risk and Insurance Management executed by a duly authorized officer of STATE. If commercially insured in whole or in part, a certificate of such coverage executed by the insurer or its authorized representative shall be provided.

Said commercial insurance or self-insurance coverage of the LOCAL AGENCY shall include the following:

A. Fire protection and emergency services - Any commercial insurance shall provide at least general liability for $5,000,000 combined single limit per occurrence.

B. Dispatch services – Any commercial insurance shall provide at least general liability for $1,000,000 combined single limit per occurrence.

C. The CAL FIRE, State of California, its officers, agents, employees, and servants are included as additional insured’s for purposes of this contract.

D. The STATE shall receive thirty (30) days prior written notice of any cancellation or change to the policy at the addresses listed on page 2 of this agreement.

18. WORKERS COMPENSATION: (only applies where local government employees/volunteers are supervised by CAL FIRE, as listed in Exhibit D Schedule C. STATE contract employees’ workers compensation is included as part of the contract personnel benefit rate).

A. Workers' Compensation and related benefits for those persons, whose use or employment is contemplated herein, shall be provided in the manner prescribed by California Labor Codes, State Interagency Agreements and other related laws, rules, insurance policies, collective bargaining agreements, and memorandums of understanding.

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
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B. The STATE Unit Chief administering the organization provided for in this agreement shall not use, dispatch or direct any non STATE employees, on any work which is deemed to be the responsibility of LOCAL AGENCY, unless and until LOCAL AGENCY provides for Workers' Compensation benefits at no cost to STATE. In the event STATE is held liable, in whole or in part, for the payment of any Worker's Compensation claim or award arising from the injury or death of any such worker, LOCAL AGENCY agrees to compensate STATE for the full amount of such liability.

C. The STATE /LOCAL AGENCY shall receive proof of Worker’s Compensation coverage and shall be notified of any cancellation and change of coverage at the addresses listed in Section 1.

19. CONFLICT OF INTEREST: LOCAL AGENCY needs to be aware of the following provisions regarding current or former state employees. If LOCAL AGENCY has any questions on the status of any person rendering services or involved with the Agreement, the STATE must be contacted immediately for clarification.

Current State Employees (Public Contract Code §10410):
1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
2) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Public Contract Code §10411):
1) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. 2) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If LOCAL AGENCY violates any provisions of above paragraphs, such action by LOCAL AGENCY shall render this Agreement void. (Public Contract Code §10420) Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Public Contract Code §10430 (e))

20. LABOR CODE/WORKERS' COMPENSATION: LOCAL AGENCY needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and LOCAL AGENCY affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700)

21. AMERICANS WITH DISABILITIES ACT: LOCAL AGENCY assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis

Contractor Name: City of Morgan Hill
Contract No.: 1CA06244
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of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

22. LOCAL AGENCY NAME CHANGE: An amendment is required to change the LOCAL AGENCY’S name as listed on this Agreement. Upon receipt of legal documentation of the name change the STATE will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

23. RESOLUTION: A county, city, district, or other local public body must provide the STATE with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

24. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the LOCAL AGENCY shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

25. AFFIRMATIVE ACTION. STATE certifies its compliance with applicable federal and State hiring requirements for persons with disabilities, and is deemed by LOCAL AGENCY to be in compliance with the provisions of LOCAL AGENCY’S Affirmative Action Program for Vendors.

26. DRUG AND ALCOHOL-FREE WORKPLACE. As a material condition of this Agreement, STATE agrees that it and its employees, while performing service for LOCAL AGENCY, on LOCAL AGENCY property, or while using LOCAL AGENCY equipment, shall comply with STATE’s Employee Rules of Conduct as they relate to the possession, use, or consumption of drugs and alcohol.

27. ZERO TOLERANCE FOR FRAUDULENT CONDUCT IN LOCAL AGENCY SERVICES.

STATE shall comply with any applicable “Zero Tolerance for Fraudulent Conduct in LOCAL AGENCY Services.” There shall be “Zero Tolerance” for fraud committed by contractors in the administration of LOCAL AGENCY programs and the provision of LOCAL AGENCY services.

Upon proven instances of fraud committed by the STATE in connection with performance under the Agreement, the Agreement may be terminated consistent with the termination for cause/cancellation term, Exhibit C, section 8, subsection B, of Cooperative Fire Programs Fire Protection Reimbursement Agreement, LG-1, between the California Department of Forestry and Fire Protection (CAL FIRE) and the LOCAL AGENCY.

28. CONFIDENTIAL INFORMATION. “Confidential information” means information designated by CAL FIRE and/or the LOCAL AGENCY disclosure of which is restricted, prohibited or privileged by State and federal law. Confidential Information includes, but is not limited to, information exempt from disclosure under the California Public Records Act (Government Code Sections 6250 et seq.) Confidential Information includes but is not limited to all records as defined in Government Code section 6252 as well as verbal communication of Confidential Information.

Any exchange of Confidential Information between parties shall not constitute a “waiver” of any exemption pursuant to Government Code section 6254.5
CAL FIRE and LOCAL AGENCY personnel allowed access to information designated as Confidential Information shall be limited to those persons with a demonstrable business need for such access. CAL FIRE and LOCAL AGENCY agree to provide a list of authorized personnel in writing as required by Government Code section 6254.5(e). CAL FIRE and the LOCAL

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Contract No.: 1CA06244
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AGENCY agree to take all necessary measures to protect Confidential Information and shall impose all the requirements of this Agreement on all of their respective officers, employees and agents with regards to access to the Confidential Information. A Party to this Contract who experiences a security breach involving Confidential Information covered by this Contract, agrees to promptly notify the other Party of such breach

29. ENTIRE AGREEMENT: This agreement contains the whole agreement between the Parties. It cancels and supersedes any previous agreement for the same or similar services.

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Contract No.: 1CA06244
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EXHIBIT D

ADDITIONAL PROVISIONS
EXCISE TAX: State of California is exempt from federal excise taxes, and no payment will be made for any taxes levied on employees' wages. STATE will pay any applicable State of California or local sales or use taxes on the services rendered or equipment or parts supplied pursuant to this agreement. The STATE may pay any applicable sales and use tax imposed by another state.

Schedules
The following Schedules are included as part of this agreement (check boxes if they apply):

A. Fiscal Display, PRC 4142 AND/OR PRC 4144 - STATE provided LOCAL AGENCY funded fire protection services. STATE-owned vehicles shall be operated and maintained in accordance with policies of STATE at rates listed in Exhibit D, Schedule A.

B. STATE Funded Resource - A listing of personnel, crews and major facilities of the STATE overlapping or adjacent to the local agency area that may form a reciprocal part of this agreement.

C. LOCAL AGENCY Provided Local Funded Resources - A listing of services, personnel, equipment and expenses, which are paid directly by the local agency, but which are under the supervision of the Unit Chief.

D. LOCAL AGENCY Owned STATE Maintained Vehicles - Vehicle information pertaining to maintenance responsibilities and procedures for local agency-owned vehicles that may be a part of the agreement.

LOCAL AGENCY-owned firefighting vehicles shall meet and be maintained to meet minimum safety standards set forth in Title 49, Code of Federal Regulations; and Titles 8 and 13, California Code of Regulations.

LOCAL AGENCY-owned vehicles that are furnished to the STATE shall be maintained and operated in accordance to LOCAL AGENCY policies. In the event LOCAL AGENCY does not have such policies, LOCAL AGENCY-owned vehicles shall be maintained and operated in accordance with STATE policies. The cost of said vehicle maintenance and operation shall be at actual cost or at rates listed in Exhibit D, Schedule D.

Exhibit D, Schedule D is incorporated into this section if LOCAL AGENCY-owned vehicles listed in Exhibit D, Schedule D are to be operated, maintained, and repaired by STATE.

LOCAL AGENCY assumes full responsibility for all liabilities associated therewith in accordance with California Vehicle Code Sections 17000, 17001 et seq. STATE employees operating LOCAL AGENCY-owned vehicles shall be deemed employees of LOCAL AGENCY, as defined in Vehicle Code Section 17000. Except where LOCAL AGENCY would have no duty to indemnify STATE under Exhibit C, Section 6 for all LOCAL AGENCY-owned vehicles operated or used by employees of STATE under this agreement.

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Contract No.: 1CA06244
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LOCAL AGENCY employees, who are under the supervision of the Unit Chief and operating STATE-owned motor vehicles, as a part of the duties and in connection with fire protection and other emergency services, shall be deemed employees of STATE, as defined in Vehicle Code Section 17000 for acts or omissions in the use of such vehicles. Except where STATE would have no duty to indemnify LOCAL AGENCY under Exhibit C, Section 6.

E. Certification of Insurance - Provider Insurance Certification and/or proof of selfinsurance.

(LG1 REV. 01/2017)
Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 17

EXHIBIT D, SCHEDULE A
LOCAL FUNDED – STATE RESOURCES

FISCAL DISPLAY
PRC 4142
NAME OF LOCAL AGENCY: City of Morgan Hill
CONTRACT NUMBER: 1CA06244
Index: 1600 PCA: 17660 Fiscal Year: 2023/24 to 2027/28
This is Schedule A of Cooperative Agreement originally dated July 1, 2023, by and between CAL FIRE of the State of California and LOCAL AGENCY.
(See Attached)

Unit: Santa Clara
Agreement Total $54,933,517 1CA06244
17660 PS Total $9,519,433 17660 PS Total $10,399,746 17660 PS Total $10,919,734 17660 OE Total $104,477 17660 OE Total $112,619 17660 OE Total $118,250 TOTAL $9,623,910 TOTAL $10,512,365 TOTAL $11,037,983
17660 PS Total $11,465,720 17660 PS Total $12,039,006
17660 OE Total $124,162 17660 OE Total $130,370
TOTAL $11,589,882 TOTAL $12,169,377
Contract Name: CITY OF MORGAN HILL
Contract No.:

Page No.:                                  18
Fiscal Year 23/24 Fiscal Year 25/26 (+5%)
Fiscal Year 26/27 (+5%) Fiscal Year 27/28 (+5%)
Fiscal Year 24/25

Fiscal Year: 2023 Sub Total (+2%) $8,498,735
Index: 1600 Unit: Santa Clara Admin $1,020,698
PCA 17660 Total $9,519,433 1CA06244
PRC: 4142
Comments FY 23/24 Overtime Total: $537,685
Number of
Positions Classification/ad-ons (Pick From List) RET. Period Salary Months Salary
Rate Total Salary EDWC Rate EDWC Periods Total EDWC Salary Benefits FFI UI EDWC Benefits Total Salary &
EDWC
Total Position
Cost

0.5 Assistant Chief (Supervisory) - Division Chief POF 7/1/2023-6/30/2024 12 $10,928 $65,568 $0 12 $0 $62,467 $0 $0 $128,035 $158,633

0.5 Extended Duty Pay Differential - Assistant Chief 15% POF 7/1/2023-6/30/2024 12 $1,639 $9,834 $0 $9,369 $0 $19,203

0.5 Longevity Pay Differential - 7% POF 7/1/2023-6/30/2024 12 $0 $4,590 $0 $4,373 $0 $8,962

0.5 Assistant Chief Pay Differential  POF 7/1/2023-6/30/2024 12 $208 $1,246 $0 $1,187 $0 $2,433 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0

1.83 Battalion Chief (Nonsupervisory) POF 7/1/2023-6/30/2024 12 $7,301 $160,324 $4,363 12 $95,811 $152,741 $0 $56,558 $465,434 $484,388

1.83 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $3,294 $0 $3,138 $0 $6,432

1.83 Longevity Pay Differential - 4% POF 7/1/2023-6/30/2024 12 $0 $6,413 $0 $6,110 $0 $12,523 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
9 Fire Captain (Paramedic) POF 7/1/2023-6/30/2024 12 $6,732 $727,053 $4,299 12 $464,292 $692,664 $0 $274,072 $2,158,080 $2,328,853 9 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $16,200 $0 $15,434 $0 $31,634 9 Longevity Pay Differential - 4% POF 7/1/2023-6/30/2024 12 $0 $29,082 $0 $27,707 $0 $56,789 9 Paramedic Recruitment and Retention - 500 POF 7/1/2023-6/30/2024 12 $500 $54,000 $0 $28,350 $0 $82,350 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
1 Fire Captain, Range A POF 7/1/2023-6/30/2024 12 $6,291 $75,489 $3,771 12 $45,252 $71,919 $0 $26,712 $219,372 $231,732 1 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $1,800 $0 $1,715 $0 $3,515 1 Longevity Pay Differential - 6% POF 7/1/2023-6/30/2024 12 $0 $4,529 $0 $4,315 $0 $8,844 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
10 Fire Apparatus Engineer (Paramedic) POF 7/1/2023-6/30/2024 12 $6,002 $720,266 $3,870 12 $464,400 $686,197 $0 $274,135 $2,144,998 $2,313,841 10 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $18,000 $0 $17,149 $0 $35,149 10 Longevity Pay Differential - 3% POF 7/1/2023-6/30/2024 12 $0 $21,608 $0 $20,586 $0 $42,194 10 Paramedic Recruitment and Retention - 500 POF 7/1/2023-6/30/2024 12 $500 $60,000 $0 $31,500 $0 $91,500 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
8 Fire Apparatus Engineer POF 7/1/2023-6/30/2024 12 $5,606 $538,173 $3,369 12 $323,424 $512,718 $0 $190,917 $1,565,232 $1,624,878 8 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $14,400 $0 $13,719 $0 $28,119 8 Longevity Pay Differential - 3% POF 7/1/2023-6/30/2024 12 $0 $16,145 $0 $15,382 $0 $31,527 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
1 Heavy Equipment Mechanic, Range A MIS 7/1/2023-6/30/2024 12 $6,035 $72,420 $0 0 $0 $59,739 $0 $0 $132,159 $145,386 1 Fire Mission Pay Differential - HEM Range A MIS 7/1/2023-6/30/2024 12 $604 $7,248 $0 $5,979 $0 $13,227 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between Morgan Hill and The California Department of Forestry and Fire Protection (CAL FIRE) Contract Name: CITY OF MORGAN HILL
Contract No.:

Page No.:    19
CAL FIRE Unit Chief
CAL FIRE Region Chief
George Huang
George Morris III

Fiscal Year: 2023 Sub Total (+2%) $8,498,735
Index: 1600 Unit: Santa Clara Admin $1,020,698
PCA 17660 Total $9,519,433 1CA06244
PRC: 4142
Comments FY 23/24 Overtime Total: $537,685
This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between Morgan Hill and The Contract Name: CITY OF MORGAN HILL
Contract No.:

Page No.:   20
2 Communications Operator, Range A SAF 7/1/2023-6/30/2024 12 $5,633 CAL FIRE Unit Chief $135,192 $0 0 George Huang $0 $90,984 $0 $0 $226,176 $229,656 1 Night-Shift Pay Differential SAF 7/1/2023-6/30/2024 12 $173 $2,080 $0 $1,400 $0 $3,480 SAF $0 $0 $0 $0 $0 $0
SAF $0 $0 $0 $0 $0 $0
SAF $0 $0 $0 $0 $0 $0
Overtime SAF $0 $0 $0 $0
1 Associate Governmental Program Analyst MIS 7/1/2023-6/30/2024 12 $6,907 $82,884 $0 0 $0 $68,371 $0 $0 $151,255 $151,255 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
1 Staff Services Analyst  MIS 7/1/2023-6/30/2024 12 $5,744 $68,928 $0 0 $0 $56,859 $0 $0 $125,787 $125,787 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $537,685
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $537,685 $0 $0 $0 $537,685
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0

Fiscal Year: 2023 $937
Index: 1600 $93,275
PCA: 17660 $11,202
PRC: 4142 $104,477 21
Comments

1.45%
Category (Pick from List) Details Number Months Rate Sub-Total Uniform Benefits Total UNIFORM ALLOWANCE FOR BU8 30.33 12.00 $178 $ 64,603 $ 65,540 937 $ UNIFORM ALLOWANCE FOR COMM OP 2.00 12.00 $104 $ 2,500 0 $ 2,500 UNIFORM ALLOWANCE FOR HEM 1.00 12.00 $56 $ 670 0 $ 670
COVERALLS FOR HEM 1.00 12.00 $9 $ 108 0 $ 108
EQUIPMENT 1.00 1.00 $5000 $ 5,000 0 $ 5,000
TRAINING 1.00 1.00 $10000 $ 10,000 0 $ 10,000
TRAVEL 1.00 1.00 $5000 $ 5,000 0 $ 5,000
OTHER ITEMS OF EXPENSE Target Solutions (Uniform) 29.83 1.00 $75 $ 2,237 0 $ 2,237 OTHER ITEMS OF EXPENSE Target Solutions (Support) 5.50 1.00 $38 $ 206 0 $ 206 OTHER ITEMS OF EXPENSE INTIME Solutions 35.33 1.00 $57 $ 2,014 0 $ 2,014 $ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
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$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
1CA06244

CITY OF MORGAN HILL
Total Page No.:

This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between Morgan Hill and The California Department of Forestry and Fire Protection (CAL FIRE) Uniform Benefits Contract Name:

Sub Total
Admin Contract No.:

Fiscal Year: 2024 Sub Total (+2%) $9,284,659
Index: 1600 Unit: Santa Clara Admin $1,115,088
PCA 17660 Total $10,399,746 1CA06244
PRC: 4142
Comments FY 24/25 Overtime Total: $569,946
Number of
Positions Classification/ad-ons (Pick From List) RET. Period Salary Months Salary
Rate Total Salary EDWC Rate EDWC Periods Total EDWC Salary Benefits FFI UI EDWC Benefits Total Salary &
EDWC
Total Position
Cost

0.5 Assistant Chief (Supervisory) - Division Chief POF 7/1/2023-6/30/2024 12 $10,928 $65,568 $0 12 $0 $62,467 $0 $0 $128,035 $158,633

0.5 Extended Duty Pay Differential - Assistant Chief 15% POF 7/1/2023-6/30/2024 12 $1,639 $9,834 $0 $9,369 $0 $19,203

0.5 Longevity Pay Differential - 7% POF 7/1/2023-6/30/2024 12 $0 $4,590 $0 $4,373 $0 $8,962

0.5 Assistant Chief Pay Differential POF 7/1/2023-6/30/2024 12 $208 $1,246 $0 $1,187 $0 $2,433 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0

1.83 Battalion Chief (Nonsupervisory) POF 7/1/2023-6/30/2024 12 $7,301 $160,324 $4,363 12 $95,811 $152,741 $0 $56,558 $465,434 $484,388

1.83 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $3,294 $0 $3,138 $0 $6,432

1.83 Longevity Pay Differential - 4% POF 7/1/2023-6/30/2024 12 $0 $6,413 $0 $6,110 $0 $12,523 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0

0.17 Battalion Chief (Nonsupervisory) POF 7/1/2023-6/30/2024 12 $7,301 $14,893 $4,363 12 $8,901 $14,189 $0 $5,254 $43,237 $44,998

0.17 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $306 $0 $292 $0 $598

0.17 Longevity Pay Differential - 4% POF 7/1/2023-6/30/2024 12 $0 $596 $0 $568 $0 $1,163 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
10 Fire Captain (Paramedic) POF 7/1/2023-6/30/2024 12 $6,732 $807,837 $4,299 12 $515,880 $769,626 $0 $304,524 $2,397,867 $2,587,614 10 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $18,000 $0 $17,149 $0 $35,149 10 Longevity Pay Differential - 4% POF 7/1/2023-6/30/2024 12 $0 $32,313 $0 $30,785 $0 $63,099 10 Paramedic Recruitment and Retention - 500 POF 12 $500 $60,000 $0 $31,500 $0 $91,500 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
1 Fire Captain, Range A POF 7/1/2023-6/30/2024 12 $6,291 $75,489 $3,771 12 $45,252 $71,919 $0 $26,712 $219,372 $231,732 1 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $1,800 $0 $1,715 $0 $3,515 1 Longevity Pay Differential - 6% POF 7/1/2023-6/30/2024 12 $0 $4,529 $0 $4,315 $0 $8,844 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
11 Fire Apparatus Engineer (Paramedic) POF 7/1/2023-6/30/2024 12 $6,002 $792,292 $3,870 12 $510,840 $754,817 $0 $301,549 $2,359,498 $2,545,225 11 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $19,800 $0 $18,863 $0 $38,663 11 Longevity Pay Differential - 3% POF 7/1/2023-6/30/2024 12 $0 $23,769 $0 $22,645 $0 $46,413 11 Paramedic Recruitment and Retention - 500 POF 7/1/2023-6/30/2024 12 $500 $66,000 $0 $34,650 $0 $100,650 POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
9 Fire Apparatus Engineer POF 7/1/2023-6/30/2024 12 $5,606 $605,445 $3,369 12 $363,852 $576,807 $0 $214,782 $1,760,886 $1,827,987 9 Education Incentive Pay Differential POF 7/1/2023-6/30/2024 12 $150 $16,200 $0 $15,434 $0 $31,634 9 Longevity Pay Differential - 3% POF 7/1/2023-6/30/2024 12 $0 $18,163 $0 $17,304 $0 $35,468 POF $0 $0 $0 $0 $0 $0
POF $0 $0 $0 $0 $0 $0
Overtime POF $0 $0 $0 $0
Contract Name: CITY OF MORGAN HILL
Contract No.:

Page No.: 22
This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between Morgan Hill and The California Department of Forestry and Fire Protection (CAL FIRE) CAL FIRE Unit Chief George Huang
CAL FIRE Region Chief George Morris III

Fiscal Year: 2024 Sub Total (+2%) $9,284,659
Index: 1600 Unit: Santa Clara Admin $1,115,088
PCA 17660 Total $10,399,746 1CA06244
PRC: 4142
Comments FY 24/25 Overtime Total: $569,946
Contract Name: CITY OF MORGAN HILL
Contract No.:

Page No.: 23
This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between 1 Heavy Equipment Mechanic, Range A MIS 7/1/2023-6/30/2024 Morgan Hill and The 12 $6,035 CAL FIRE Unit Chief $72,420 $0 0 George Huang $0 $59,739 $0 $0 $132,159 $145,386 1 Fire Mission Pay Differential - HEM Range A MIS 7/1/2023-6/30/2024 12 $604 $7,248 $0 $5,979 $0 $13,227 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
2 Communications Operator, Range A SAF 7/1/2023-6/30/2024 12 $5,633 $135,192 $0 0 $0 $90,984 $0 $0 $226,176 $229,656 1 Night-Shift Pay Differential SAF 7/1/2023-6/30/2024 12 $173 $2,080 $0 $1,400 $0 $3,480 SAF $0 $0 $0 $0 $0 $0
SAF $0 $0 $0 $0 $0 $0
SAF $0 $0 $0 $0 $0 $0
Overtime SAF $0 $0 $0 $0
1 Associate Governmental Program Analyst MIS 7/1/2023-6/30/2024 12 $6,907 $82,884 $0 0 $0 $68,371 $0 $0 $151,255 $151,255 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
1 Staff Services Analyst MIS 7/1/2023-6/30/2024 12 $5,744 $68,928 $0 0 $0 $56,859 $0 $0 $125,787 $125,787 MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
MIS $0 $0 $0 $0 $0 $0
Overtime MIS $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $569,946
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $569,946 $0 $0 $0 $569,946
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0
$0 $0 $0 0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Overtime $0 $0 $0 $0

Fiscal Year: 2024 $1,035
Index: 1600 $100,543
PCA: 17660 $12,075
PRC: 4142 $112,619 24
Comments

1.45%
Category (Pick from List) Details Number Months Rate Sub-Total Uniform Benefits Total UNIFORM ALLOWANCE FOR BU8 33.50 12.00 $178 $ 71,355 $ 72,390$ 1,035 UNIFORM ALLOWANCE FOR COMM OP 2.00 12.00 $104 $ 2,500 0 2,500$ UNIFORM ALLOWANCE FOR HEM 1.00 12.00 $56 $ 670 0 670$
COVERALLS FOR HEM 1.00 12.00 $9 $ 108 0 108$
EQUIPMENT 1.00 1.00 $5000 $ 5,000 0 5,000$
TRAINING 1.00 1.00 $10000 $ 10,000 0 10,000$
TRAVEL 1.00 1.00 $5000 $ 5,000 0 5,000$
OTHER ITEMS OF EXPENSE Target Solutions (Uniform) 33.00 1.00 $75 $ 2,475 0 2,475$ OTHER ITEMS OF EXPENSE Target Solutions (Support) 5.50 1.00 $38 $ 206 0 206$ OTHER ITEMS OF EXPENSE INTIME Solutions 38.50 1.00 $57 $ 2,195 0 2,195$ $ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 -$
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -
$ - 0 $ -

CITY OF MORGAN HILL
Sub Total
Admin Contract No.: 1CA06244
Total Page No.:

This is a Schedule A - 4142 of the Cooperative Agreement, dated July 1, 2023 between Morgan Hill and The California Department of Forestry and Fire Protection (CAL FIRE) Uniform Benefits Contract Name:

(LG1 REV. 01/2017)
Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 25

EXHIBIT D, SCHEDULE B

STATE FUNDED RESOURCES
NAME OF LOCAL AGENCY:City of Morgan Hill
This is Schedule B of Cooperative Agreement originally dated July 1, 2023, by and between CAL FIRE of the State of California and LOCAL AGENCY.

FISCAL YEAR: 2023/24 to 2027/28
(See Attached)

Contractor Name: City of Morgan Hill
Contract No.:1CA06244
Page No: 26

EXHIBIT D, SCHEDULE B
State Funded Resources
NAME OF LOCAL AGENCY: City of Morgan Hill
This is a Schedule B Cooperative Agreement originally dated July 1, 2023, by and between the CAL FIRE of the State of California and South Santa Clara County Fire District.

FISCAL YEAR: 2023/2024 – 2027/2028
ADMINISTRATION – REGULAR
1- Unit Chief
1- Deputy Chief, Operations
1- Forester II
1- Environmental Scientist
1- Heavy Equipment Mechanic
1- Battalion Chief, Training
1- Battalion Chief, Fire Prevention
1- Battalion Chief, Fuels Projects / Hand Crews
2- Communications Operators
1- Senior Personnel Specialist
2- Personnel Specialist
1- Office Technician
1- Staff Services Analyst, Crew
4- Staff Services Analyst, Finance
1- Assistant Chief, South Division Operations
2- Assistant Chief, East Division Operations
1- Forester I
1- Fleet Manager
6- Battalion Chiefs, Field
1- Battalion Chief, Safety
1- Battalion Chief, Emergency Command Center
4- Fire Captains, Emergency Command Center
2- Forestry Logistics Officers
1- Fire Prevention Specialist
1- Finance Specialist
2- Associate Government Program Analyst

STATIONS / EQUIPMENT

STATIONS EQUIPMENT STATIONS EQUIPMENT HELITACK EQUIPMENT Alma 1 Engine Sweetwater 1 Engine Alma 1 Helicopter
Almaden 1 Engine Pacheco 1 Engine
Stevens Creek 1 Engine Del Puerto 1 Engine, 1 Bulldozer Morgan Hill 2 Engines, 1 Bulldozer Castle Rock 1 Engine Coyote 1 Engine Sunol 2 Engines, 1 Bulldozer
Smith Creek 1 Engine Sunshine 2 Engines

(LG1 REV. 01/2017)
Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 27
EXHIBIT D, SCHEDULE D (page one)

LOCAL AGENCY OWNED

STATE MAINTAINED VEHICLES
NAME OF LOCAL AGENCY:City of Morgan Hill
This is Schedule D of Cooperative Agreement originally dated July 1, 2023, by and between CAL FIRE of the State of California and LOCAL AGENCY
FISCAL YEAR: 2023/24 to 2027/28
The current “Salary, Pay Differentials, and Operating Expense Schedule” Memorandum under Operating Expenses, Vehicle Maintenance includes the following description of maintenance responsibilities and procedures for LOCAL AGENCY-owned vehicles which are listed in the Exhibit D, Schedule A. Categories are "Flat Rate", "Mileage Rate", and "Actual Cost". (1) For all vehicles for which a monthly "Flat Rate" is shown, (this category excludes, all surveyed CAL FIRE vehicles, vehicles obtained through federal surplus, fire apparatus built on commercial chassis over 15 years old and fire apparatus built on custom chassis over 20 years old - age is based on chassis production year.) State shall:
a. Provide fuel, oil, lubrication, batteries, tires and tubes, b. Repair, exchange or replace when necessary accessory motors, hoses, pumps, spotlights, sirens, fire extinguishers and all other accessories affixed to or supplied when said vehicles were accepted by the STATE for operation under Schedule A, excepting equipment or accessories not common to the use of the STATE and radio, installations originally provided by the LOCAL AGENCY. All such equipment provided and installed by the STATE shall become the property of the LOCAL AGENCY and the replaced equipment removed shall become the property of the STATE.
c. Make such reasonable repairs to said vehicles (not including painting.) as may be necessary to keep the vehicles in operating condition; provided, however, that the STATE may cease to make further repairs on any vehicles when the STATE determines that the repair costs during the period of this agreement shall exceed $10,000 for any one occurrence, or will exceed the market value of the vehicle. In the event the STATE determines that a vehicle is not fit for further use because of obsolescence, deterioration or damage, the STATE shall not be required to repair the vehicle or maintain it in use. Upon such determination, the STATE shall immediately so advise the LOCAL AGENCY, and the LOCAL AGENCY shall have the option of replacing said vehicle or STATE shall discontinue the particular service.

(LG1 REV. 01/2017)
Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 28
EXHIBIT D, SCHEDULE D (page two)

LOCAL AGENCY OWNED

STATE MAINTAINED VEHICLES
(2) For all passenger and service vehicles for which a "Mileage Rate" is shown, STATE shall:
a. Provide fuel, oil, lubrication, batteries and tires and tubes. b. Make such reasonable repairs to said vehicles as may be necessary to keep the vehicles in operating condition provided, however, that the STATE may cease to make further repairs on any vehicles when the potential repair costs are not reasonable considering the vehicle age, market value and other pertinent factors.

Upon such determination, the STATE shall immediately so notify the LOCAL AGENCY and the LOCAL AGENCY shall have the option of replacing said vehicle or STATE shall discontinue the particular service. (3) For all vehicles listed under the heading "Flat Rate" or "Mileage Rate', LOCAL AGENCY shall assume accident repairs in excess of $2,000 per occurrence. (4) For all vehicles listed under the heading "Actual Cost", the STATE shall operate, maintain, and repair said vehicles at the STATE'S actual cost. (5) LOCAL AGENCY-owned vehicles to be maintained pursuant to this section are listed below by category and are described by year model, "Rate Letter" type, and license number.

Category Year Model Type License Number
ENGINE 2013 3B2 1409749
ENGINE 2013 3B2 1409748
ENGINE 1994 3B2 E294482
TRUCK 2013 4B1 1409750
SQUAD 2013 2C 1378197
AMBULANCE 2003 2C 1292102
PU 4x4 2013 2C 1396594
PU 4x4 2020 2C 1591025
PU 4x4 2013 2C 1396678

(LG1 REV. 01/2017)
Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 29

EXHIBIT D, SCHEDULE E
This is Schedule E of Cooperative Agreement originally dated July 1, 2023, by and between the CAL FIRE of the State of California and LOCAL AGENCY
NAME OF LOCAL AGENCY:City of Morgan Hill
The CAL FIRE, State of California and its officers, agents, employees, and servants are included as additional insured for the purposes of this contract. The State shall receive thirty (30) days prior written notice of any cancellation or change to the policy at the addresses listed in LG1,

FISCAL YEAR: 2023/24 to 2027/28

SELF-INSURANCE CERTIFICATION BY LOCAL AGENCY FOR

TORT LIABILITY
This is to certify that LOCAL AGENCY has elected to be self-insured under the self-insurance provision provided in Exhibit C, Section 17.

By:

Donald Larkin
Signature Printed Name
City Attorney
Title Date

SELF-INSURANCE CERTIFICATION BY LOCAL AGENCY
FOR

WORKER'S COMPENSATION BENEFITS
This is to certify that LOCAL AGENCY has elected to be self-insured for Workers' Compensation benefits which comply with Labor Code Section 3700 as provided in Exhibit C, Section 18.

By:

Signature Printed Name
Title Date

SELF-INSURANCE CERTIFICATION BY LOCAL AGENCY
FOR

LOCAL AGENCY-OWNED VEHICLES
This is to certify that LOCAL AGENCY has elected to be self-insured for local agency-owned vehicles under the self-insurance provision provided in Exhibit D, Schedule D.

By:

Donald Larkin
Signature Printed Name
City Attorney
Title Date

Contractor Name: City of Morgan Hill
Contract No: 1CA06244
Page No.: 30

EXHIBIT E

DESCRIPTION OF OTHER SERVICES
Exhibit E

1. In reference to Exhibit A, 1. FIRE PROTECTION SERVICES TO BE PROVIDED BY THE STATE, STATE shall perform Fire Inspection Services in accordance with the LOCAL AGENCY adopted code, policy and operating procedures. The City Fire Marshal, Fire Marshaling Services (including citation when other means have been exhausted) and the public education programs are provided by the STATE as part of this agreement. Fire Code Enforcement will normally be available five days per week, with emergency and scheduled enforcement inspections available seven days a week.

2. STATE and LOCAL AGENCY shall jointly update the "Cooperative Fire Operating Plan" which shall be used for day to day administration of the Morgan Hill Fire Department.

3. In refence to Exhibit C, 9. INDEPENDENT CONTRACTOR, STATE shall perform under this agreement as an Independent contractor to the LOCAL AGENCY. Employees of the STATE, as listed in Schedule A of this agreement, are not to be deemed employees of the LOCAL AGENCY for any purpose unless otherwise identified in this agreement, City Policy or Municipal Code.

STATE shall be solely responsible for all pay, benefits, leave, collective bargaining, Fire Fighter Bill of Rights, and Equal Employment Opportunity legal obligations to STATE employees.

4. The STATE is an equal opportunity employer. The STATE will comply with all statutory obligations under the Government Code, Labor Code, Americans with Disabilities Act (Government Code §12990 (a-f) et seq.) and regulations (California Code of Regulations, Title 2, §7285etseq.).

5. The STATE and LOCAL AGENCY will continue to work together in supporting the Community Emergency Response Team (CERT).

322 INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS
Equipment Replacement 790.8500
Division Description
The Equipment Replacement Fund provides a mechanism for the City to budget and fund future replacement of vehicles and equipment. Each department that uses City vehicles or equipment with future replacement funding is charged an annual fee based on future replacement costs and the useful life for each item. This program continues to provide a basis for the City to plan for and achieve incremental costs related to equipment and vehicle replacement to smooth fluctuations in the City budget in any given fiscal year.

Financial Comments
Pre-funding of vehicle and equipment replacement provides a measure of budget predictability, ensures timely replacement which enhances safety and efficiency, and reduces the need for deficit spending based on a large capital outlay in any given fiscal year. For the FY 2022-23 and 2023-24 Biennial Budget, the following equipment is proposed to be replaced.

FY 2022-23
Vehicle Number Department/Division Vehicle Description Replacement Budget E99148 Capital Project Implementation F250 3/4 Ton Truck 37,000 $ R98137 Park Maintenance 1998 Deere Gator Gas 6X4 13,500 309 Police 2014 Honda Accord 60,000
310 Police 2014 Ford Fusion 60,000
D08127 Street Maintenance 2008 F450 4x2 crew cab dump truck 100,000 D11151 Street Maintenance 2011 Ford F250 4X4 - abatement spray truck 70,300 S08123 Wastewater 2008 Ford F450 Dump Truck 100,000
S11159 Wastewater 2011 Ford F350 Flat Bed 4x4 65,000
S15116 Wastewater 2015 Ford F350 flatbed 4X4 65,000
W03183 Water 2003 Mobile Light Stand 30,000
N/A Water Jacobson Trailer 20,000
Total FY 2022-23 $ 620,800
FY 2023-24
Vehicle Number Department/Division Vehicle Description Replacement Budget A10120 Building Maintenance CRC 2010 Ford Ranger Pick Up (CRC) 30,000 $ E07141 Capital Project Implementation 2007 Escape SLS 4WD 38,850 311 Police 2015 Honda Accord 60,000
312 Police 2015 Honda Accord 60,000
152 Police 2017 Ford Explorer 76,000
153 Police 2017 Ford Explorer 76,000
D12128 Streets 2012 Ford F450 Dump Truck 105,000
W14161 Water 2014 Ford F150 Super Cab 45,000
W09023 Water 2009 KOHLER Generator 85,000
Total FY 2023-24 $ 575,850

Community Funding
On February 17, 2023, staff provided Community Funding Request Applications to organizations that previously received fee waivers for facility use, event support, or program support from the City of Morgan Hill. The applications were provided via email to these contacts. The application and information about the process was also posted on the City’s website and in the weekly 411 newsletter. Applications were due on March 17, 2023 at 5:00 pm.

As stated in the application, to be considered for this annual funding the following criteria must be met:
a. The organization requesting funding must be a nonprofit. b. The program, event, or activity provides a direct benefit to the Morgan Hill community. c. Programs in alignment with the City Council’s Goals and Priorities shall be given priority. City Council priorities are established by the City Council in January of each year. d. Each organization must submit an inclusivity statement describing how the organization and/or the proposed activity is inclusive of the entire community. e. Existing programs and events may be given priority.

The chart below shows the organizations that applied for Community Funding for Fiscal Year (FY) 2023-24. Staff received a total of 20 applications with requests totaling $254,322.50. The Adopted FY 2023-24 Budget includes $200,000 for Community Funding. The table below recommends funding based on Council Policy within four categories. Due to City required increased public safety services costs, some long-term, large-scale community events are recommended for increases in funding levels. This has resulted in new events being recommended for no greater than 50% funding this coming fiscal year. The City Council may follow these recommendations or make alternate funding awards by category or by individual applications.

Category 1: Blue – Past events and programs recommended for full funding.

This group includes past Community Funding recipients and events, partners where the City has previously cosponsored the event, and/or events that are strongly aligned with Council priorities. Applications are recommended for equal or increased funding from prior levels. In most cases of increases, this is due to significant cost increases associated with public safety.

Category 2: Purple – Past partners recommended for partial funding This group includes requests from two organizations requesting funding for program support. Due to budget limitations, two organizations are recommended to receive only slightly increased funding over last year. For the Twinkle Light request, funding was reduced to 50% of the request. This reduction recommends the Morgan Hill Downtown Association raise funds or work with the new PBID to potentially fully fund for this year and into the future.

Category 3: Yellow – Rental Waiver Requests
This group includes recommended full waiver of City facility use fees for events to be hosted at the Community and Cultural Center. These requests are recommended for full fee waivers. Poppy Jasper International Film Festival requested a rental waiver as well as additional funding for event expenses, however, only partial funding is recommended. Friday Night Music Series requested funding primarily for the use of rental waiver.

Category 4: Green – New Events
Due to limitations, new events are being recommended for partial funding. These requests totaled $19,899.

AAUW’s request for funding to support the 2024 Earth Day event is not recommended. Staff recommend that AAUW partner with the City’s Environmental Services Division on a partnered Earth Day event, negating the need for a facility rental waiver. Work on this event is already withing the Environmental Services Division’s Work Plan.

Organization Event/Activity/Program Requested Recommendation Rental Fee
Waiver Funding
MH Kiwanis Holiday Lights Parade $14,500 $14,500 $14,500 IDC Freedom Fest $45,000 $45,000 $45,000
MH Downtown
Association Safe Trick or Treat $13,500 $13,500 $13,500 MH Downtown
Association Holiday Tree $6,360 $6,360 $6,360
Morgan Hill Historical
Society Ongoing Operations $20,000 $20,000 $20,000
Morgan Hill Sentinel
Club/Grumaza Fiestas Patrias $4,000 $3,500 $3,500
Indian Association of
South Santa Clara
County
Diwali Celebration $5,000 $2,500 $2,500
Chabad Jewish
Center
Morgan Hill Chanukah
Celebration $4,461 $2,500 $2,500
South Valley Civic
Theater Theater Operations $20,000 $12,500 $12,500
Healthier Kids
Foundation
Program Operations in
Morgan Hill $42,000 $26,000 $26,000
MH Downtown
Association
Downtown Twinkle
Lights $22,800 $11,400 $11,400
Morgan Hill Chamber
of Commerce
Friday Night Music
Series $25,000 $25,000 $25,000
Living Above the
Influence LATI $3,060 $3,060 $3,060
Poppy Jasper Poppy Jasper Film
Festival $5,000 $3,700 $3,700
Morgan Hill Historical
Society 2023 Founders Dinner $3,265 $1,600 $1,600
Morgan Hill Historical
Society
2023 History Makers
Film Premiere &
Reception
$477.50 $477.50 $477.50
Indian Association of
South Santa Clara
County
Circle of Giving $5,000 $2,000 $2,000
Morgan Hill Open
Studios
Morgan Hill Open
Studios $2,500 $1,250 $1,250
Sentinels Soccer
Club
Sentinels Soccer
Summer Camp $9,999 $5,000 $5,000
American Association
of University Women
Morgan Hill
Earth Day 2024 $2,400 $0.00
$254,322.50 $199,847.50 $33,837.50 $166,010

RESOLUTION NO. 23-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING AN AMENDMENT TO
THE CITY’S FISCAL YEAR 2022-2023 AND 2023-2024
BUDGET IN THE GENERAL FUND (FUND NO. 010),
DEVELOPMENT SERVICES FUND (FUND NO. 206), AND
EMPLOYEE BENEFITS FUND (FUND NO. 791) TO
APPROPRIATE $410,000; $40,000; AND $150,000,

RESPECTIVELY, IN EACH FUND, THEREFOR
WHEREAS, the City of Morgan Hill, a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (“City”), is authorized to enter into contracts and agreements for the benefit of the City; and WHEREAS, the reasons supporting this Resolution are set forth in detail in that certain City Council Staff Report entitled “Receive Monthly Budget Update And City Manager Authority Report; Adopt Fiscal Year 2022-23 And 2023-2024 Mid-Cycle Budget Amendments; Approve A Five-Year Agreement With Cal Fire; Delegate The Authority To The City Manager To Make All Future Equipment Replacement Purchases As Approved In The Budget; And Approve An Update To Electric Vehicle Charging Station User Fees” submitted for City Council consideration at its meeting of May 3, 2023 by the City Manager (the “Staff Report”), the contents of which Staff Report are incorporated herein by this reference; and WHEREAS, recommended amendments are needed and proposed to the City’s previously adopted Annual Budget for Fiscal Year 2022-2023 and 2023-2024 as set forth on Exhibit A to this Resolution, to appropriate the requisite funds to implement the actions authorized by this Resolution; and
WHEREAS, the consideration by City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and has been placed upon the City Council Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council may have continued or deferred consideration of this Resolution, and on such date the City Council conducted a duly noticed public meeting at which the City Council provided members of the public an opportunity to comment and be heard and considered any and all testimony and other evidence provided in connection with the adoption of this Resolution; and WHEREAS, the City Council determines that adoption of this Resolution is in the public interest.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

Section 1. Recitals. The City Council does hereby find, determine and resolve that all of the foregoing recitals are true and correct.

City of Morgan Hill
Resolution No. 23-_____

Section 2. Approval and Authorization. The City Council does further resolve, order and/or direct as follows:
a. That the City’s previously adopted Fiscal Year 2022-2023 and 2023-2024 Budget, as the same has been amended to date, is hereby further amended in accordance with and as reflected on Exhibit A attached hereto and incorporated herein by this reference; and
b. That the City Clerk is hereby authorized and directed to forward a copy of this Resolution to the City’s Finance Director, who is hereby authorized and directed to take all actions necessary to implement the terms of this Resolution pertaining to the Fiscal Year 2022-2023 and 2023-2024 Budget of City.

Section 3. This Resolution shall take effect immediately upon adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Morgan Hill at its meeting held on this 3rd day of May 2023 by the following vote:

AYES: COUNCIL MEMBERS: None
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
APPROVED: ATTEST:
___________________________________ _______________________________ RICH CONSTANTINE, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 23-_____ adopted by the City Council at the meeting held on the 3rd day of May 2023.

WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 23-_____

EXHIBIT A

AGENDA BUDGET SCORECARD
FISCAL YEAR 2022-2023
ADJUSTMENT # 008
FUND: 791 Employee Benefits Fund
DEPARTMENT: 8400 Employee Benefits Fund
OBJECT: 42607 EARNED LEAVE PAYOUT
AGENDA DATE: 05/03/23
AGENDA ITEM TITLE:
07/01/22 06/30/23

AUDITED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET (161,343) 813,718 700,000 (47,625)

CUMULATIVE REVISIONS PRIOR - - - -

TO RECOMMENDED ACTION
RECOMMENDED ACTION - 150,000 (150,000)
RESULTOF RECOMMENDED ACTION (161,343) 813,718 850,000 (197,625) Employee Benefits Update Midcycle Budget Update

City of Morgan Hill
Resolution No. 23-_____

AGENDA BUDGET SCORECARD
FISCAL YEAR 2023-2024
ADJUSTMENT # 001
FUND: 010 General Fund
DEPARTMENT: 8010 Economic Development
OBJECT: 42299 OTHER EXPENSE
AGENDA DATE: 05/03/23
AGENDA ITEM TITLE:
07/01/23 06/30/24

PROJECTED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 28,157,042 52,206,814 54,086,429 26,277,427

CUMULATIVE REVISIONS PRIOR - - - -

TO RECOMMENDED ACTION
RECOMMENDED ACTION 30,000 30,000 -
RESULTOF RECOMMENDED ACTION 28,157,042 52,236,814 54,116,429 26,277,427 Mobility Grant Acceptance - Midcycle Budget Update

City of Morgan Hill
Resolution No. 23-_____

AGENDA BUDGET SCORECARD
FISCAL YEAR 2023-2024
ADJUSTMENT # 002
FUND: 206 CommunityDevelopment Fund
DEPARTMENT: 5130 Building Division
OBJECT: 42299 OTHER EXPENSE
AGENDA DATE: 05/03/23
AGENDA ITEM TITLE:
07/01/23 06/30/24

PROJECTED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET (447,166) 6,181,237 6,055,368 (321,297)

CUMULATIVE REVISIONS PRIOR - - - -

TO RECOMMENDED ACTION
RECOMMENDED ACTION 40,000 40,000 -
RESULTOF RECOMMENDED ACTION (447,166) 6,221,237 6,095,368 (321,297) CEC Grant Acceptance - Midcycle Budget Update

City of Morgan Hill
Resolution No. 23-_____

AGENDA BUDGET SCORECARD
FISCAL YEAR 2022-2023
ADJUSTMENT # 003
FUND: 010 General Fund
DEPARTMENT: 5800 Environmental Programs
OBJECT: 42299 OTHER EXPENSE
AGENDA DATE: 05/03/23
AGENDA ITEM TITLE:
07/01/23 06/30/24

PROJECTED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 28,157,042 52,206,814 54,086,429 26,277,427 CUMULATIVE REVISIONS PRIOR - 30,000 30,000 -

TO RECOMMENDED ACTION
RECOMMENDED ACTION 380,000 380,000 -
RESULTOF RECOMMENDED ACTION 28,157,042 52,616,814 54,496,429 26,277,427 Implementation Funds from Recology - Midcycle Budget Update

12 CITY COUNCIL STAFF REPORT
MEETING DATE: May 3, 2023
PREPARED BY:

Christina Turner, City Manager
APPROVED BY: City Manager

PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL

INITIATED AGENDA ITEMS

RECOMMENDATION(S)
Determine if the majority of the City Council wants the following items agendized at a future meeting for discussion:

1. Managing and counting 'abstain' votes by City Council Members;

2. Considering a noise ordinance to address rooster noises in urban neighborhoods;

3. Charging credit card fees on all City services; and

4. Considering an ordinance prohibiting smoking in multi-unit properties.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
REPORT NARRATIVE:

Section 4.2 of City Council Policy 97-01 (Attachment 1) allows members of the City Council to request items be added to an upcoming City Council agenda by requesting an item during the “Future Council Initiated Agenda Items” section of the agenda. A City Council report will then be placed on an upcoming agenda for Council discussion and consideration.

Below is a brief description of each of the four items for Council consideration.

Background

1. Managing and counting 'abstain' votes by City Council Members (requested by Mayor Pro Tem Spring)
In general, council members should avoid abstaining from votes. California courts have held that “[t]here is a strong public policy that members of public legislative bodies take a position, and vote, on issues brought before them. This policy has been expressed as

12 the duty of members of a city council to vote and that they ought not, by inaction, prevent action by the board.” (Dry Creek Valley Assn., Inc. v. Board of Supervisors (1977) 67 Cal.App.3d 839, 844 (emphasis added).) But there are some circumstances where an abstention is an appropriate vote. For example, a member may abstain from a quasi-judicial vote when the member does not feel they are capable of making an unbiased decision.

Staff has experienced some difficulty with abstentions because the City's procedural rules are silent as to how abstentions are counted in circumstances that require three affirmative votes. Under common law principles, an abstention is considered an acquiescence to the majority. In other words, with five council members, if two members vote in favor of a motion, one votes against, and the remaining two abstain (a 2-1-2 vote), the two abstentions would be counted with the majority as “yes” votes, and the vote would be equivalent to a 4-1 vote in favor of the motion. However, where a statute expressly requires three affirmative votes, such as the adoption of an ordinance, the law is unclear. Courts will look to the city’s policies or parliamentary rules to determine whether an abstention counts as a “yes” vote, a “no” vote, or is not counted at all.

Morgan Hill's procedural rules are silent regarding how abstentions are counted, which creates ambiguity. Further, we have long followed Sturgis' Rules of Parliamentary Procedure, which may not be appropriate for a five-member body. As such, staff recommends that Council direct staff to come back with further recommendations to adopt alternative rules of parliamentary procedure and amend the City Council Policy governing the conduct of meetings.

2. Considering a noise ordinance to address rooster noises in urban neighborhoods (requested by Mayor Pro Tem Spring)
Currently, complaints regarding rooster noise nuisances fall under MuniCode 6.24.020 - Animals - Animal Restrictions - Public nuisances
A. No person owning or having control of any animal shall permit such animal to do any of the following:

1. Defecate on public or private property without immediately cleaning and removing the excrement to a proper receptacle;

2. Permit an animal to obstruct the reasonable and comfortable use of property in any neighborhood or community by urinating or defecating on private property, chasing vehicles, molesting, or biting passersby;

3. Permit unsanitary conditions to exist on the premises where the animal is kept which would cause odors, attract flies or vermin, or otherwise be injurious to public health and safety, or indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property by the neighborhood, community or persons;

4. Keep, maintain, cause or permit to be kept or maintained any dog, cat, or other animal or fowl, whether licensed or not, that interferes with the reasonable and comfortable use of property in any neighborhood or

12 community by howling, yelping, barking or other noise, frequently or for extended periods of time. Each day that such disturbance is permitted to continue shall constitute a separate offense.

B. The animal service officer, or any peace officer, may seize and impound any animal causing a public nuisance.

C. A violation of this section is declared to be a public nuisance.

D. Any private person may maintain an action under Civil Code Section 3493 for enforcement of this chapter declaring certain acts a public nuisance if such acts are especially injurious to such person.

Staff is looking for direction on whether the City Council would like to consider amending the municipal code to provide additional provisions to address rooster noise disturbances.

3. Charging credit card fees on all City services (requested by Mayor Pro Tem Spring)
Staff does not recommend charging credit fees on recreation and utility services as many customers would opt to pay by cash or check, increasing staff workload, and negating the funds saved by passing along credit card fees. In addition, many utility customers would avoid the fees, thus no longer opting to be environmentally friendly (having their statements sent via email and payments made electronically).

Currently, the City only charges credit card service fees of 2.0% on development services and transient occupancy tax (TOT) payments made by credit card. Effective June 5, 2023, the credit card service fee will be increased to 2.7%. Staff surveyed surrounding cities and agencies that either process utility payments and or have recreation programs and services. Recreation programs rely on easy-to-sign-up online services through credit card payment. Encouraging those to avoid online registration to pay in person is not recommended. It would be a near certainty that significant additional staffing costs would be required to manage an increase in cash and check payments for Recreation Services and negate any additional revenues associated with the addition of credit card services fees. None of the cities and agencies surveyed charge credit card service fees for utility payments and recreation programs and services. For utilities, surveyed cities include San Jose, Gilroy, Hollister, Watsonville, Santa Clara, and Scott Valley. For recreation programs and services, surveyed cities include Campbell, Gilroy, Santa Clara, Mountain View, Palo Alto, Sunnyvale, and the County of Santa Clara.

Charging of credit card service fees for utility payments may reduce the number of customers signing up accounts for auto pay and increase staff workload to process the expected higher number of payments by checks. The same would be applied to recreation programs and services. In addition, payment networks such as Visa and Mastercard would take away the low credit card service fees that they charge the City for utility payments made by credit card should the City implement credit card service fees for utility payments. Currently, payment networks charge the City $0.75 per

12 transaction for each utility payment made by credit card. Including payment processor and bank fees, the credit card service fee for utilities is about 1% versus about 3% if the City does not qualify for the low card card service fees for utility payments.

Staff is seeking direction on whether the City Council would like this item agendized to further discuss charging credit card fees on all City services, including recreation and utility services.

4. Considering an ordinance prohibiting smoking in multi-unit properties (requested by Council Member Borgioli)
The City currently has an ordinance that regulates smoking in public places (Morgan Hill Municipal Code Chapter 8.44 - SMOKING POLLUTION CONTROL). This ordinance does not regulate smoking in Multifamily Residences. Most, if not all, of the City’s rental projects, are smoke-free in the units and on the grounds, except for a designated smoking area. This is for health reasons but, more importantly, because insurance rates are generally higher if smoking is permitted.

Some cities have enacted an ordinance that would prohibit smoking in multi-unit properties. While adoption of the ordinance can be done, the enforcement could require staffing resources.

Staff is seeking direction on whether the City Council would like this item agendized to discuss an ordinance that would prohibit smoking in multi-unit properties.

COMMUNITY ENGAGEMENT:

This report is seeking direction from the City Council on whether or not to further agendize these topics for Council consideration.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On April 5, 2023, the Council directed staff to bring back these topics for Council consideration.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with seeking direction from the Council on these items.

CEQA (California Environmental Quality Act):

Not a Project.

Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

From: Christina Turner
To: Kim Mancera
Cc: Michelle Bigelow; Ivan Carmona-Torres
Subject: FW: Future agenda items requested at the last meeting / follow up Date: Thursday, April 27, 2023 4:09:41 PM
Second attachment for staff report.

From: Rene Spring <[email protected]>
Sent: Wednesday, April 12, 2023 2:28 PM
To: Christina Turner <[email protected]>; Donald Larkin <[email protected]>
Subject: Future agenda items requested at the last meeting / follow up Future agenda topics – summary of requests:

1. City staff to come back with a proposal to charge the credit card fees the city gets charged for all services across the board.

I believe this request is pretty straight forward.

2. City staff to come back with a proposal on how to manage and how to count ‘abstain’ votes by City Council members as the rules currently seem unclear and not well defined.

3. City staff to come back with a proposal (noise ordinance?) that would help mitigate noise by roosters in urban neighborhoods of our city where noisy roosters might be/become an annoyance.

The request is based upon several citizens having approached me over the past year asking for help and what our ‘law’ is. Without a law in place, as it seems, our PD might not be able to follow through on valid complaints.

From: Christina Turner
To: Kim Mancera
Cc: Michelle Bigelow; Ivan Carmona-Torres
Subject: FW: Information on second hand smoke
Date: Thursday, April 27, 2023 4:11:44 PM
Attachments: favicon.ico
apple-touch-icon-152x152.png
acs_logo_fb.png
Third attachment for staff report
From: Gino Borgioli <[email protected]>
Sent: Thursday, April 27, 2023 3:32 PM
To: Christina Turner <[email protected]> Subject: Information on second hand smoke
It is estimated that , in the United States, over 50,000 people die annually from second hand smoke with hundreds of thousands more suffering from respiratory illness and heart disease from exposure. Multi-unit dwellings present a distinct problem as smoke from one unit may seep through cracks, circulate through the ducts of ventilation systems, enter through open windows and find multiple other paths to enter the living space of another.

As of July 30,2018, H.U.D. instituted a public housing smoke free rule. This rule protects approximately two million public housing residents including over 750,000 highly vulnerable children. In the state of California, there are currently 70 municipalities that have laws that prohibit smoking in both rental and owner-occupied multi-unit properties.

Multi-Unit Residential Smoking Ban | City
of Millbrae
ci.millbrae.ca.us

Health Risks of Secondhand Smoke
cancer.org
Smokefree Policies in Multi-Unit Housing
lung.org