Morgan Hill City Council
September 6, 2023

13 irrigation controllers installed site-by-site and individually programmed. Each site must be individually programmed and monitored daily depending on anticipated weather conditions. The new smart irrigation controller system will allow staff to monitor the irrigation system from both a desktop or mobile device in the field or in the office. The system will be able to anticipate rapid fluctuations in environmental conditions and increase/decrease daily output based upon weather prediction data.

The purpose of the system is to help optimize water distribution, and reduce staff time by increasing/decreasing water output from a single or central location. The Public Services Maintenance Team is small and limited in resources. Updating to this advanced technology would allow the City to manage water use on City property more efficiently and effectively, setting the example for water conservation measures. It would allow watering schedules to be changed without driving to the hundreds of individual controllers located throughout the City and ultimately allow other priority maintenance work to continue even when there are significant needs for changes to watering schedules.

The Request for Proposals (RFP) was released on January 23, 2023 and three proposals were received on February 24, 2023. In soliciting proposals for this project, the City advertised in the Morgan Hill Times on January 20, 2023. The RFP was also posted on the City website and Public Purchase. The RFP was also sent directly to the County of Santa Clara Builders Exchange.

Six firms attended the pre-RFP meeting and three proposals were received from the following contractors:

Brightview Landscape Services, Inc.

K & D Landscaping, Inc.

Medallion Landscape Management, Inc.

The City evaluated the proposals using a "Best Value" methodology in which contractors meeting the minimum scoring on the "Qualifications, Experience and References'" narrative were then evaluated based on their cost proposals. A team of evaluators from the Maintenance Division independently evaluated and scored the proposals based on the contractors' narrative, qualifications, experience, and references. There were 70 points available for this section and contractors needed to score at least 52.50 out of 70 points (75%) in order to proceed in the process. The final scores for this section were:

Brightview Landscape Services: 61.67
K & D Landscaping: 59.33
Medallion Landscape Management: 65.00
All contractors met the minimum score threshold. In the second step of the evaluation, the contractors' cost proposals were compared and the contractor with the lowest proposed price for each line item was awarded the maximum number of points for that line item.

13 The final total scoring combining narrative and cost points were:

Brightview Landscape Services: 85.14
K & D Landscaping: 78.49
Medallion Landscape Management: 90.51
If approved, Medallian Landscape Management will install WeatherTRAK controllers that include 10 years of central service, product warranty, and cellular connectivity. This program will save the City considerable funding over future years and will receive product service from a reputable company that is currently servicing numerous municipalities.

COMMUNITY ENGAGEMENT:

Staff will continue to post landscape updates on the City's website, Nextdoor Morgan Hill, Facebook, and Twitter to inform residents of any landscape work done by contractors that will affect the right of way or pedestrian access to facilities and services.

ALTERNATIVE ACTIONS:

An alternative action would be to reject all proposals and release another RFP in an attempt to obtain more proposals. The Council could also choose to reject all proposals and not move forward with this project.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has not previously taken action on this project because it is the installation of a new system.

FISCAL AND RESOURCE IMPACT:

This project was not budgeted or proposed at mid-cycle due to the unknown costs at that time. Should the City Council approve this project, City staff is recommending an appropriation of $435,398 for the project along with a 5% contingency of $21,770 for a total of $457,168. City staff is recommending 50% of this cost, $228,584, be appropriated from the Water Operations Fund (650) as it is a water conservation measure and the City has historically helped fund public and private projects with these funds. The City staff are proposing the other 50% of the funding be appropriated from the General Fund (010). The City has been approved for a rebate from Valley Water of $23,000 on the project, which would be returned equally to both funds, if the project is approved.

Future savings related to water savings and replacement costs for the controllers are estimated in the hundreds of thousands of dollars over the next decade. It is anticipated most of the controllers will eventually require replacement at some point during that time.

CEQA (California Environmental Quality Act):

13 Categorical Exemption
Maintaining existing landscapes is categorically exempt under CEQA, specifically pursuant to Section 15301 of the CEQA Guidelines (Existing Facilities), as subject work involves negligible or no expansion of use of those facilities.

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MAINTENANCE SERVICE AGREEMENT
Medallion Landscape Management, Inc.

THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Medallion Landscape Management, Inc. a California corporation ("SERVICE PROVIDER") hereinafter referred to collectively as “Parties.” In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:

1. City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on ___________, ____, 20___.

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until December 31, 2023 at which time SERVICE PROVIDER’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum period of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be the supplying, installation and training of staff needed for a Citywide Smart Irrigation Controller System as further described in Exhibit A.

4. Compensation. SERVICE PROVIDER shall be compensated as follows:

4.1. Amount. $435,398.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Four Hundred Thirty-Five Thousand Three Hundred and Ninety-Eight Dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for the extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement.

4.2. Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY’S judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.

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5. Termination. CITY or SERVICE PROVIDER shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager is authorized to terminate this Agreement, in whole or in part, on behalf of CITY.

5.1. Non-Appropriations. Notwithstanding anything contained in this Agreement to the contrary, if insufficient funds are appropriated, or funds are otherwise unavailable in the budget for CITY for any reason whatsoever in any fiscal year, for payments due under this Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.

5.2. Temporary Suspension of Services. CITY’S need for services may be suspended due to unforeseeable or unavoidable circumstances beyond its control. Such circumstances include, but are not limited to, earthquake, fire, explosion, flood, or other natural catastrophe; governmental legislation, condemnation, acts, orders, or regulation; war or acts of terrorism; strikes or labor difficulties; and quarantine, epidemic, or pandemic.

CITY shall provide a 5-days’ written notice or less under urgent circumstances to temporarily suspend services at specific CITY facilities. CITY reserves the right to request which CITY facilities are to be serviced or not serviced due to unforeseeable or unavoidable circumstances, and the level of service at each CITY facility. Upon suspension, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid up to the date of the suspension. No further payments will be made for services provided after the date of the suspension. CITY shall provide 5 days’ written notice when the circumstances for the suspension of specific facilities’ services are removed for SERVICE PROVIDER to commence providing services.

6. Performance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by SERVICE PROVIDER in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of SERVICE PROVIDER’S profession. By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDER is liable for any property damage caused by SERVICE PROVIDER or its Subcontractors during performance of the services and shall notify the CITY of damage within 24 hours of the occurrence. SERVICE PROVIDER must promptly repair or replace any real or personal property damage, and must promptly restore the property to its original or intended condition. CITY may repair or replace the real or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repairs or replacement may be deducted or offset from any compensation due to SERVICE PROVIDER.

6.1. Schedule. SERVICE PROVIDER shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. The City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance within the term of this Agreement.

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6.2. Storage of Service Provider’s Equipment. If SERVICE PROVIDER desires to leave or store any of SERVICE PROVIDER’S equipment at a CITY site while SERVICE PROVIDER is performing work or service pursuant to this Agreement, SERVICE PROVIDER will first obtain the consent of the City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at SERVICE PROVIDER’S sole risk.

7. Hazardous Materials. Without limiting any other requirement or obligation of SERVICE PROVIDER under this Agreement, if SERVICE PROVIDER needs to use any material or chemical considered to be a hazardous material under any federal, state, or local law, regulation or policy, SERVICE PROVIDER agrees to fully and timely abide by and comply with all laws, regulations and policies pertaining to the use, transport, removal, handling, disposal, or other activity related to any and all such materials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDER reasonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this Agreement, together with the reasonably anticipated quantities thereof, if requested by CITY.

8. Insurance Requirements. SERVICE PROVIDER shall procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of SERVICE PROVIDER, including its subcontractors, employees, and agents, relating to, or arising from, the performance of any work or service under this Agreement, and must remain in full force and effect at all times during the period covered by this Agreement. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or “umbrella” policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and approved by City. SERVICE PROVIDER further understands that CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to SERVICE PROVIDER, at any time as deemed necessary to protect the interests of CITY.

8.1. Insurance Types and Amounts.

8.1.1. Commercial General Liability (CGL). SERVICE PROVIDER shall maintain CGL against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.1.2. Automobile Liability. SERVICE PROVIDER shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if SERVICE PROVIDER does not own automobiles, then SERVICE PROVIDER shall maintain Hired/Nonowned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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8.1.3. Workers’ Compensation Insurance and Employer’s Liability. SERVICE PROVIDER shall maintain Workers Compensation coverage, as required by law, in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If SERVICE PROVIDER is self-insured, SERVICE PROVIDER shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.

8.1.4. Pollution (Environmental) Liability. If the performance of SERVICE PROVIDER’S work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, SERVICE PROVIDER shall procure and maintain Pollution Liability covering the SERVICE PROVIDER’S liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.1.5. Professional Liability.

8.1.5.1. If the performance of SERVICE PROVIDER’S work or service under this Agreement involves professional and/or technical services (examples include, but are not limited to, architects, engineers, land surveyors, and appraisers), SERVICE PROVIDER shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. Further, if SERVICE PROVIDER maintains a claims-made policy, SERVICE PROVIDER shall provide written evidence of such insurance to CITY for at least five (5) years after the completion of work performed under this Agreement.

8.1.5.2. If the performance of SERVICE PROVIDER’S work or service under this Agreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers, hardware engineers, or other systems consultants), SERVICE PROVIDER shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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8.1.6. Sexual Abuse/Molestation Liability (SML): If the performance of SERVICE PROVIDER’S work or service under this Agreement involves contact with minors, SERVICE PROVIDER shall procure and maintain Sexual Abuse and Molestation insurance in the minimum amount of: (i) two hundred thousand dollars ($200,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.2. Endorsements. SERVICE PROVIDER shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:

8.2.1. General Liability and pollution liability (when pollution liability applies).

8.2.1.1. “Additionally Insured” - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations.

8.2.1.2. “Waiver of Rights of Subrogation” - The insurer waives the right of subrogation against the City of Morgan Hill and CITY’S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers; and

8.2.1.3. “Primary and Non-Contributing” - Insurance shall be endorsed to be primary and non-contributory and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as ISO Form CG 20

01. 8.2.2. Workers Compensation.

If the performance of SERVICE PROVIDER’S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER’S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY’S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

8.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M.

Best's financial strength rating of “A” or better and a financial size rating of “VII” or better.

8.4. Certificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to SERVICE PROVIDER’S agreement with CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 8. Certificates, including

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renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037

9. Non-Liability of Officials and Employees of CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement.

10. Compliance with Law.

10.1. SERVICE PROVIDER and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. SERVICE PROVIDER and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon any basis prohibited by State or Federal law, including but not limited to, race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any Subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.3. DIR Registration. CITY will not accept a Bid Proposal from or enter into a contract with a SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that SERVICE PROVIDER and its subcontractors are registered with the California Department of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

10.4. Compliance with Wage and Hour Laws: SERVICE PROVIDER, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state, and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act and the California Labor Code.

Final Judgments, Decisions, and Orders: For purposes of this Section, a “final judgment, decision, or order” refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal

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Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.

Prior Judgments against SERVICE PROVIDER and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT – THAT SERVICE PROVIDER OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.

SERVICE PROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. SERVICE PROVIDER and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.

Material Breach: Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.

Notice to City Related to Wage Theft Prevention: Notice provided to the City Attorney as required under this Section shall be addressed to: City Attorney, City of Morgan Hill, 17575 Peak Avenue, Morgan Hill, CA 95037. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section.

11. Independent Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employee of CITY.

12. Confidentiality. All data, documents, or other information received by SERVICE PROVIDER from CITY or prepared in connection with SERVICE PROVIDER’S services under this Agreement are

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deemed confidential and shall not be disclosed to any third party by SERVICE PROVIDER without prior written consent by CITY.

13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

14. Notices. All notices shall be personally delivered or mailed, via first class mail to the below listed address. These addresses shall be used for delivery of service of process. Notices shall be effective five (5) days after date of mailing, or upon date of personal delivery.

Address of SERVICE PROVIDER is as follows:

Medallion Landscape Management, Inc.
10 San Brune Avenue
Morgan Hill, CA 95037
Address of CITY is as follows:

Keri Russell, Maintenance
Manager
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

City Clerk
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037

15. Licenses, Permits and Fees. SERVICE PROVIDER shall obtain a City of Morgan Hill Business License, all permits and licenses to the extent required by ordinances, codes, and regulations of the federal, state, and local government.

16. Service Provider’s Proposal. If applicable, this Agreement shall include SERVICE PROVIDER'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

17. Maintenance of Records.

17.1. Maintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain records for a period of at least 3 years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then SERVICE PROVIDER shall retain said records until such action is resolved.

17.2. Access to and Audit of Records. CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part of any audit of CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

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17.3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

18. Familiarity with Work. By executing this Agreement, SERVICE PROVIDER represents that:
(1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should SERVICE PROVIDER discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at SERVICE PROVIDER'S risk, until written instructions are received from CITY.

19. Time of Essence. Time is of the essence in the performance of this Agreement.

20. No Assignment. Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDER, without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be void and, at CITY’S option, shall terminate this Agreement effective as of the date of such attempted assignment.

21. Attorney Fees. In any legal action, dispute or arbitration arising out of or relating to this Agreement, the prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses incurred.

22. Defense and Indemnification.

22.1. Defense and Indemnification. SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

22.2. Exceptions. SERVICE PROVIDER is not required to indemnify INDEMNITEES against liability for bodily injury, property damage or personal injury, or any other loss, damage or expense arising from the sole negligence or willful misconduct of CITY.

22.3. Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agreement apply to all CLAIMs alleged against an INDEMNITEE, regardless of whether any insurance policies are applicable. Policy limits do not act as a limitation upon the amount of indemnification or defense to be provided by SERVICE PROVIDER.

22.4. Right to Offset. CITY shall have the right to offset against any compensation due SERVICE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as a result of SERVICE PROVIDER’S failure to pay CITY promptly any indemnification arising under this Section (22) and any amount due CITY from SERVICE PROVIDER arising from SERVICE PROVIDER’S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

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22.5. Interpretation. This Section shall constitute an agreement or contract of indemnity, incorporating the interpretations under California Civil Code Section 2778. It is expressly understood and agreed that the obligation of SERVICE PROVIDER to indemnify the INDEMNITEE shall be as broad and inclusive as permitted by the laws of the State of California and shall survive termination of this Agreement.

23. Entire Agreement; Modification; Conflicting Provisions. This Agreement constitutes the entire Agreement between the Parties and supersedes any previous agreements, oral or written. This Agreement may be modified or provisions waived only by a subsequent mutual written agreement executed by CITY and SERVICE PROVIDER. If the provisions contained in the main body of this Agreement conflict with any provision contained in an exhibit to this Agreement, the provisions of the main body of this Agreement shall govern and control over any provision contained in an exhibit to this Agreement.

24. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara. Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County.

25. Interpretation. This Agreement is a negotiated document and shall be deemed to have been drafted jointly by the Parties, and no rule of construction or interpretation shall apply against any particular Party based on a contention that the Agreement was drafted by one of the Parties including, but not limited to, California Civil Code § 1654, the provisions of which are hereby waived. This Agreement shall be construed and interpreted in a neutral manner.

26. Preservation of Agreement. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected or invalidated.

27. Binding Agreement. Notwithstanding the provisions of Section 20 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of SERVICE PROVIDER in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

28. Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the CITY.

Signatures on the following page.

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29. Authority to Execute. Those individuals who are signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.

IN WITNESS THEREOF, these Parties have executed this Agreement on the day and year shown below.

AS SET FORTH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

ATTEST: CITY OF MORGAN HILL
City Clerk/Deputy City Clerk City Manager
Michelle Bigelow Christina J. Turner
Print Name Print Name
Date: Date:

APPROVED AS TO FORM: MEDALLION LANDSCAPE MANAGEMENT,
INC.

City Attorney By:

Donald A. Larkin
Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or Vice
President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
713234 PW-LR-1001014856
Contractor’s License Number(s) (if applicable) Contractor’s DIR Registration Number(s) (if applicable) Expiration Date(s) 9/30/2023 Expiration Date(s) 6/30/2023

12 Updated: May 2023
U:\Legal Forms\Consultant Agreements\City Maintenance Service Agreement.Docx

14 Updated: May 2023

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
Please see attached Revised Citywide Smart Irrigation Controller System Cost Schedule.

Exhibit A-Scope of Work
Supply and Installation of Citywide Smart Irrigation Controller System Background:

The City of Morgan Hill has 71 hard wired irrigation controllers that the City manages for park, median and facility irrigation. Currently the City has several types of irrigation controllers installed site-by-site and individually programmed. Each site must be individually programmed and monitored daily depending on anticipated weather conditions.

Goal: The City’s goal is to replace the hard-wired irrigation controllers with a centralized cloudbased irrigation controller system.

An inventory of the City’s existing irrigation controllers and map is attached for reference as Attachment A.

Scope of Services:

The Contractor will provide all labor, equipment and materials necessary to install and replace all the City’s hard-wired irrigation controllers with a centralized cloud-based irrigation controller system, so the City may optimize and effectively manage its water citywide throughout its parks, medians and landscaped areas . The brand is the HydroPoint Weather TRAK Controller System or approved equivalent.

Required Features:

The proposed citywide smart irrigation controller system must include the following required features and capabilities:

The system must use weather and evapotranspiration (ET) rate data as the basis for daily water distribution recommendations. The system should be able to anticipate rapid fluctuations in environmental conditions and increase/decrease daily output based upon the same weather prediction data. The purpose of the system is to help optimize water distribution, and reduce staff time by increasing/decreasing water output from a single or central location. The system must be programmable (site by site and systemwide) from both a desktop and mobile device. • Smart weather controller that takes into account weather to automate water programming
• Cloud based software that can be controlled both on a desktop, and also on a mobile device in the field for both individual controllers and all controllers • Technical support is available Monday through Friday: 8 a.m. to 5 p.m. Pacific Standard Time

• Daily evapotranspiration (ET) updates to each controller • System allows remote access (through either an app or website), real-time access to make programming changes, run stations, check master valve operation and turn controller on and off.
• System allows for evapotranspiration (ET) to be set to ON/OFF per station • System shall be able to automatically turn off all controllers due to an operator set rain amount, communicating on system instantly.
• System shall allow users to view and/or override any changes made at irrigation controllers.
• Station groupings must be highly customizable and allow system operator to make global changes to a variety of irrigation parameters including plant type, system efficiency and precipitation rate.
• System must be able to issue global pauses in order to suspend irrigation for a single controller, group of controllers or all controllers across the City. • Central control shall include a Master Valve override feature that opens up the closed master valve for a set period to allow for use of quick couplers without triggering a leak alert.
• System shall display an area description for each station including the station location. • System can track flow rate and use that information to determine when to alarm the operators or how to control stations.
• System can notify multiple parties of alarm notification messages. • System can escalate any issues which are not taken care of after a certain amount of time from the initial alarm.
• Users shall be able to select specific alerts to be on or off. • System will display the name of the user that made the last program change.

Weather Data
• Weather data shall be from a nearby weather station or device sensor and shall be uploaded automatically on a daily basis to all field controllers. • A weather service, which uses both National Oceanic and Atmospheric Administration (NOAA) stations and California Irrigation Management Information System (CIMIS) data that will deliver the evapotranspiration (ET) messages over a wireless communication network.
• Weather data collected must include relative humidity, temperature, wind speed and solar radiation.
• Each individual field controller must automatically calculate station run times based on a true scheduling engine that tracks soil moisture depletion for each watering zone. • System shall communicate with weather station live or dynamically throughout the day, not just once per day.

Equipment
• Controller must be a complete controller and must be a self-contained functioning device. It may not be an add-on device or require another control board or device to be present.
• Controller must be FCC approved.
• Controller and centralized system shall be able to communicate with each other via cellular frequency. If City staff makes changes to the irrigation schedule in the office, the centralized system must be able to communicate that to the controller in real time. • Controller must be capable of storing multiple irrigation schedules. • Controller must be able to be programmed both in the field and through a central system.
• Controller must utilize non-volatile memory to retain all programming information during a power outage.
• Controller must have an intuitive interface that is easy for programming. • Alerts shall be able to be processed and responded to at both the field controller location and remotely via a web browser or mobile device. • Controller software must have an easy field-upgradeable solution, so that software can be easily upgraded without having to go to each controller individually and manually plugging equipment into controller to upgrade it.
• Controllers shall have models with both transitional wire and 2 wire capability. 2-wire capability shall be fully integrated.
• Controller must be expandable up to 36 stations, for either conventional wire or 2 wire design in a single controller.
• The controller shall have an irrigation test program or “walk-thru” program that is directly controlled by the user either via a traditional remote-control device or via a downloadable mobile application.
• The controller must be capable of allowing the user to make changes to the irrigation program via either a web-enabled device, or at the field controller without requiring user to go back to the internet management portal to accept the change. • The controller shall allow for operator-set water window, which prevents irrigation from continuing beyond a set end time.
• The controller shall have the ability to track and report on when an “individual” user is logged into the controller via the internet, what changes were made while there, and when a user logged out of the controller. These shall be date and time stamped.

Changes made at the controller must also be logged.
• The controller shall be able to display for the user a detailed water usage report categorizing for each month the usage during scheduled irrigation, test and manual key operation, and for non-controller usage such as bleeding valves on manually, using quick couplers or hose bibs.

• Controller must be able to support a wired or wireless rain sensor. • System must allow manual irrigation via internet enabled tablet or via a smart-phone app for both iPhone and Android operating system.
• The field controller(s) shall be capable of communicating to the central irrigation system wirelessly. The field controllers shall be capable of directly receiving, storing, and operating commands downloaded from the central irrigation system. • The field controller shall come with a minimum ten (10) year warranty from the manufacturer.
• Warranty work performed by the Distributor shall be priced to include in-field repair service, and not require customer personnel to handle Return Merchandise Authorizations or shipping.

Controller Enclosure Cabinets
• Contractor to include any modifications needed to the existing cabinet to fit the new controller. Should a new cabinet need to be installed it must be manufactured to be vandal and weather resistant, made entirely of 18 gauge cold rolled steel.

Data and Reports
• The system allows for the uploading and downloading of all programs and log data by controller or groups of controllers.
• Water usage data shall be automatically retrieved daily from each controller and reported on by the Central System or have the ability to be exported to an excel or PDF file.
• System shall track all changes made at the field and Central Controller. Changes shall be recorded with a before and after value for each individual field modified. • User shall be able to report on user level irrigation setting changes for up to 3 years of changes including selection of specific days or date ranges. • The system shall allow all program data, log data, summary data and alert data for each controller to be selectively printed by the end user.
• All reports must be exportable into either Adobe PDF format or Microsoft Excel format. • The system shall be able to provide and print a water management report including graph depicting by the month the amount of irrigation water used compared to a monthly allotment in hundred cubic feet (HCF) or gallons and ET weather demand for the month with a percent savings.
• The system shall keep a history of all program changes for up to 3 years for changes made at the controller or remotely. Changes will be tracked by user and by date and can be viewed any time in a simple audit report.
• System shall allow user to compare and view differences between settings on controller at any 2 dates for the last 3 years.

• All reports must have the ability to be “subscribed” by users and delivered automatically to our users over email and customizable times and dates.

Technology
• The system has the ability to communicate with and control up to 200 controllers. • The system is accessible from any web browser.
• The cloud-based system is hosted by the vendor providing the centralized cloud-based irrigation controller system.
• The system employs https and SSL/TLS security.
• The system has a mobile phone user friendly web browser or application for both IOS and Android.

Labor
• The Contractor shall provide all labor, equipment and materials necessary to install the Hydro Point Weather TRAK Controller System or approved equivalent. All equipment and components shall be installed in accordance with manufacturer’s specifications, installation instructions and in accordance with all applicable building codes. • Since the contract will be over $25,000, a payment and performance bond will also be required.
• The Contractor shall submit a complete project schedule at the time of the preconstruction meeting. • Prior to beginning work, the City’s Maintenance Manager or assigned designee, shall approve the written schedule of work. Following approval, the Contractor shall adhere to the approved written schedule in the execution of work. • Any expenses incurred by delays caused by the failure of the Contractor to adhere to the approved schedule shall be borne solely by the Contractor. • This Project is subject to prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension vacation apprenticeship and similar purposes.
• The Contractor is responsible for public safety of his/her work site continually, and not limited to normal working hours.
• The Contractor shall maintain a neat appearance at the work site in all areas visible to the public.
• The Contractor shall be responsible for any and all damages to public and private property, and shall correct any damaged property to the satisfaction of the City.

Exhibit A:

Morgan Hill Irrigation Controllers Inventory as of 1/23/23 UniqueI
D Controller Location ControllerType # of Stations
Hardwired or
Battery Notes
1 Hamilton Square Hunter Pro C 16 Hardwired
2 Oak Creek A RainMaster Sentar II 24 Hardwired
3 Oak Creek B RainMaster Sentar II 30 Hardwired
4 Excaliber/Native Dancer Hunter (Off) 6 Hardwired
5 Excaliber/White Cloud Irritrol Rain Dial 12 Hardwired 6 Watsonville Rd/Excaliber Irritrol MC (Off) 6 Hardwired 7 Paradise Park RainMaster Eagle 24 Hardwired
8 Howard Weicher Park Weathermatic SL 12 Hardwired 8 stations used 9 Rose Haven Park Irritrol MC 8 Hardwired
10 Stone Creek Park Rain Master Sentar 16 Hardwired
11 Diana Estates Park Irritrol MC Plus 6 Hardwired
12 Mill Creek Park Irritrol MC 12 Hardwired
13 Belle Estates Park Irritrol MC 12 Hardwired 6 stations in use 14 Fox Hollow Cir Island Weathermatic (off) 4 Hardwired 15 Fox Hollow Park Irritrol Rain Dial 6 Hardwired 2 stations in use 16 CRC A Rainmaster Eagle 30 Hardwired
17 CRC B Rainmaster Eagle B 30 Hardwired
18 Community Park A Rainmaster Eagle Plus 24 Hardwired 20 stations in use; located inside storage 19 Community Park B Rainmaster Eagle Plus 40 Hardwired 6 stations in use 20 Community Park Ballfields A Irritrol MC Plus 24 Hardwired 16 stations in use; located in score booth 21 Community Park Ballfields B Irritrol MC Plus 24 Hardwired 16 stations used; located in score booth 22 Council Chambers Rainmaster Eagle Plus 30 Hardwired
23 Library A Rainmaster Eagle Plus 30 Hardwired
24 Library B Rainmaster Eagle Plus 30 Hardwired
25 Galvan Park Rainmaster Eagle Plus 32 Hardwired 24 stations in use 26 Galvan Park Ballfields Irritrol MC 6 Hardwired
27 Tennant btw Monterey and Church Irritrol MC4 Plus 4 Hardwired 2 stations used 28 CCC A Rainmaster Eagle Plus 48 Hardwired 36 stations used 29 CCC B Rainmaster Eagle Plus 48 Hardwired 26 stations used 30 Depot St Rainmaster Eagle Plus 32 Hardwired all stations used 31 Railroad Park Hunter I Core 6 Hardwired 3 stations used 32 Courthouse Demo Garden Rainmaster Eagle Plus (off)/ Irritrol 12 Hardwired 2 controllers irritrol in use 33 Monterey bwt Wright and Hill Haven Mobile Park Irritrol MC8 Plus (off) 8 Hardwired 3 stations used; everything established 34 Monterey btw Jarvis and Cochrane Irritrol MC6E 6 Hardwired 3 stations used 35 Fox Hollow Frontage Irritrol MC4e 4 Hardwired all stations used 36 Llagas Creek (West side) Irritrol Rain Dial 6 Hardwired 2 stations used 37 Llagas Creek (East Side) Irritrol Rain Dial 6 Hardwired 4 stations used 38 Llagas Ct Irritrol Rain Dail 4 Hardwired 1 station used 39 Sparhwak Irritrol MC12 Plus 12 Hardwired 8 stations used; controller off 40 E Dunne btw Andalusia and Joleen Superior Controller (off) 4 Hardwired Battery 41 E Dunne btw 101 and Condit Rain Bird ESP 16 Hardwired 6 stations used 42 E Dunne btw Bayo Claros and Hill Irritrol MC12 12 Hardwired 9 stations used 43 Conte Gardens Park Irritrol MC-6E 6 Hardwired 4 stations used 44 Sandlewood Park Irritrol MC-6E (off) 6 Hardwired established; water off 45 El Dorado Hunter X-Core 8 Hardwired 5 stations used
46 Aquatics Center Rainmaster Eagle 36 Hardwired 26 stations used 47 Historical Society Hunter Pro-C 12 Hardwired 5 stations used 48 Magical Bridge Hunter I-Core 24 Hardwired 20 stations used 49 Police Department Rainmaster Eagle 24 Hardwired 20 stations used 50 Monterey Rd Downtown Rainmaster Eagle 36 Hardwired 32 stations used 51 Diana Park Hunter ICC 8 Hardwired all stations used
Exhibit_A_Irrigation_Controllers_Existing_Inventory_v1

Exhibit A:

Morgan Hill Irrigation Controllers Inventory as of 1/23/23 UniqueI
D Controller Location ControllerType # of Stations
Hardwired or
Battery Notes
52 E Third Btw Monterey and Depot Rainmaster Eagle 24 Hardwired 18 stations used 53 Third St Creek Park Hunter ICore 6 Hardwired 3 stations used 54 Monterey btw Vineyard and Tennant Irritrol MC63 6 Hardwired 4 stations used 55 Monterey btw Cosmo and San Pedro Irritrol MC8E 8 Hardwired 8 stations used 56 Butterfield btw Main and E Central Irritrol MC6 Plus (off) 6 Hardwired 2 stations used; off 57 Butterfield btw E Central and Jarvis Hunter XCore 6 Hardwired 2 stations used 58 Butterfield btw Jarvis and Sutter Weathermatic - Smartline 24 Hardwired 14 stations; business park not ours 59 Butterfield btw San Pedro and Barrett Irritrol MC8 Plus 8 Hardwired 7 stations used 60 Butterfield btw Barrett and Tennant Irritrol MC12 Plus 12 Hardwired 9 stations used 61 Butterfield btw Tennant and Fisher Irritrol MC24E 24 Hardwired 18 stations used 62 Butterfield btw Bridge and Monterey Irritrol MC-18E 18 Hardwired 12 stations used 63 Butterfield btw San Pedro and Terracina Appts Irritrol 4 Hardwired 1 used; established 64 Butterfield btw Terracina Appts and E Dunne Irritrol (off) 4 Hardwired 1 used; established; no power 65 Butterfield btw Sutter and Jarvis (front of Toray) Irritrol MC18 Plus 18 Hardwired 14 stations; business park 66 Cochrane btw Monterey and Cochrane Cir Hunter Xcore 4 Hardwired 67 Cochrane btw Cochrane Cir and Woodview Irritrol MC18 Plus 18 Hardwired 15 stations used 68 Cochrane btw Madrone and 101 Irritrol MC6E 6 Hardwired 6 stations used 69 Cochrane btw DePaul and Mission View Irritrol Raindial 1200R 12 Hardwired 10 stations used 70 Llagas Obata Rain Bird 6 Hardwired 6 stations used
71 Peak Ave Sprinkler 1 Hardwired Test
Exhibit_A_Irrigation_Controllers_Existing_Inventory_v1

15 Updated: May 2023

EXHIBIT C

SCHEDULE OF PERFORMANCE
All work shall be scheduled with City Maintenance Manager or designated City staff. All work shall be completed by December 31, 2023.

Name of Contractor: Medallion Landscape Management

CITY OF MORGAN HILL
REVISED Citywide Smart Irrigation Controller System Cost Schedule *Additional Items in Red.

Item Cost
Cost to Supply Citywide Smart Irrigation Controller
System and technical assistance and/or subscription fees $198,198.00 (if any) for the first year of service
Cost of Subscription Fees for 10 Years of Service $ 205,410.00 Installation/Labor Cost to Remove Existing Hardwired
Controllers and Install New Citywide Smart Irrigation $24,640.00 Controller System
Cost to Program and Set-Up the Proposed Controller
including training of City Staff $7,150.00
Base Bid Total $435,398.00
Attachment B - Schedule fo Compensation

13 Updated: May 2023

EXHIBIT A

SCOPE OF SERVICES
Please see attached Scope of Services from Request for Proposals dated January 23, 2023.

NARRATIVE SCORING
Points
Available
Brightview
Landscape
Services, Inc.

K & D
Landscaping
Medallion
Landscape
Management

20.00 17.33 17.00 19.33

25.00 22.33 20.67 24.00

15.00 12.33 12.33 13.33

10.00 9.67 9.33 8.33

70.00 61.67 59.33 65.00

COST PROPOSAL COST PROPOSAL SCORING
Item
Price from
Lowest Bidder
Brightview
Landscape
Services, Inc.

K & D
Landscaping
Medallion
Landscape
Management
Points
Available
Brightview
Landscape
Services, Inc.

K & D
Landscaping
Medallion
Landscape
Management
Cost to Supply SIC & TA &
Subscription Fees for 1st Year
of Service 198,198.00 256,087.00 299,356.00 198,198.00 15.0 11.61 9.93 15.00 Cost of Subscription Fees for 10
years 131,670.00 131,670.00 199,765.00 205,410.00 5.0 5.00 3.30 3.21 Installation/Labor Cost to
Remove Existing Hardwired
Controllers and Install New
Citywide Smart Irrigation
Controller System 24,640.00 44,680.08 32,000.00 24,640.00 7.0 3.86 5.39 7.00 Cost to Program and Set-Up
Proposed Controller including
City Staff Training 715.92 715.92 4,000.00 7,150.00 3.0 3.00 0.54 0.30 433,153.00 535,121.00 435,398.00
SUBTOTAL-COST PROPOSAL POINTS 30.0 23.47 19.15 25.51
GRAND TOTAL POINTS 100.0 85.14 78.49 90.51
#2 #3 #1
Assessments of work quality, performance and working relationships by current and recent clients that indicate high levels of satisfaction and effectiveness.

Qualifications of Staff to be assigned to provide, install and program smart irrigation controller system

RANKINGS
Item

NARRATIVE RESPONSES

SUBTOTAL- NARRATIVE POINTS
Morgan Hill: 2023 Smart Irrigation Controller System RFP Scoring Matrix Previous Experience supplying, installing, programming smart irrigation controller system for clients with similar scopes of work
Smart Irrigation Controller System proposed and how system meets the requires scope of services; Proposer's understanding of project and services required

RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING AN AMENDMENT TO
THE CITY’S FISCAL YEAR 2023-2024 BUDGET IN THE
GENERAL FUND (FUND NO. 010) AND WATER
OPERATIONS FUND (FUND NO. 650) TO APPROPRIATE
$228,584 IN EACH FUND
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 “Award Smart Irrigation Controller System Contract to Medallion Landscape Management, Inc.” submitted for City Council consideration at its meeting of September 6, 2023, submitted to the City Council 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 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.

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 2023-2024 Budget, as the same has been amended to date, is hereby further amended in accordance with and as

City of Morgan Hill
Resolution No. 23-XXX

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 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 6th day of September 2023 by the following vote:

AYES: COUNCIL MEMBERS: None
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
APPROVED: ATTEST:
___________________________________ _______________________________ MARK TURNER, 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-xxx adopted by the City Council at the meeting held on the 6th day of September 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-XXX

EXHIBIT A

AGENDA BUDGET SCORECARD
FISCAL YEAR 2023-2024
ADJUSTMENT # 010
FUND: 010 General Fund
FUNCTION: 40 Public Services
DEPARTMENT: 40 Public Services
DIVISION: 6100 Street Maintenance
OBJECT: 42231 CONTRACT SERVICES
AGENDA DATE: 09/06/23
AGENDA ITEM TITLE:
07/01/23 06/30/24

UN-AUDITED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 32,301,306 53,338,814 58,725,546 26,914,574 CUMULATIVE REVISIONS PRIOR - 105,824 105,824 -

TO RECOMMENDED ACTION
RECOMMENDED ACTION - 228,584 (228,584)
RESULT OF RECOMMENDED ACTION 32,301,306 53,444,638 59,059,954 26,685,990 Irrigation Controller System

City of Morgan Hill
Resolution No. 23-XXX

AGENDA BUDGET SCORECARD
FISCAL YEAR 2023-2024
ADJUSTMENT # 011
FUND: 650 Water Operations
FUNCTION: 80 Water
DEPARTMENT: 40 Public Services
DIVISION: 5760 Water Conservation
OBJECT: 42231 CONTRACT SERVICES
AGENDA DATE: 09/06/23
AGENDA ITEM TITLE:
07/01/23 06/30/24

UN-AUDITED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 4,377,993 19,786,782 20,457,356 3,707,419

CUMULATIVE REVISIONS PRIOR - - - -

TO RECOMMENDED ACTION
RECOMMENDED ACTION - 228,584 (228,584)
RESULT OF RECOMMENDED ACTION 4,377,993 19,786,782 20,685,940 3,478,835 Irrigation Controller System

14 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 2023
PREPARED BY:

Adam Paszkowski, Principal Planner
APPROVED BY: City Manager

ADOPT A CITYWIDE VEHICLE-MILES-TRAVELED (VMT) POLICY

INCLUSIVE OF ESTABLISHING VMT AS THE APPROPRIATE METRIC

FOR EVALUATING TRANSPORTATION-RELATED IMPACTS UNDER

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND

ESTABLISHING VMT SCREENING CRITERIA, VMT THRESHOLDS OF

SIGNIFICANCE, AND TRANSPORTATION DEMAND MANAGEMENT
(TDM) STRATEGIES

RECOMMENDATION(S)

1. Open/close public hearing; and

2. Adopt Resolution adopting Screening Criteria and Thresholds of Significance regarding the City's implementation of State Senate Bill 743 (SB 743) transition from Level-of-Service (LOS) to Vehicle-Miles-Traveled (VMT) as the metric for transportation analysis under the California Environmental Quality Act (CEQA) for development projects.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Supporting our Youth, Seniors, and Entire Community
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Transportation
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Morgan Hill 2035 General Plan
Vision Zero
REPORT NARRATIVE:

A policy is being proposed that would:

14 • establish a citywide Vehicle Miles Traveled (VMT) policy inclusive of establishing VMT as the appropriate metric for evaluating transportation-related impacts as required under the California Environmental Quality Act (CEQA) • establish VMT Screening Criteria, VMT Thresholds of Significance, and Transportation Demand Management (TDM) Strategies and
• utilize Level of Service (LOS) thresholds in the review of non-CEQA related impacts for discretionary planning applications in accordance with the General Plan.

Complete details of the proposed VMT policy are provided in the June 27, 2023 Planning Commission staff report and in the draft Resolution (Attachment 1).

BACKGROUND
In 2013, Senate Bill (SB) 743 was signed into law and required lead agencies to adjust their method of evaluating transportation impacts, from Level of Service (LOS) to Vehicle Miles Traveled (VMT). Where LOS measures the average amount of delay experienced at key intersections during hours of highest congestion, VMT accounts for the number of vehicle trips generated and the distance of those trips. This is a significant methodology change to determine transportation impacts under the California Environmental Quality Act (CEQA), and the intent is to “promote the state’s goals of reducing greenhouse gas emissions and traffic-related air pollution, promoting the development of a multimodal transportation system, and providing clean, efficient access to destinations.” The California Governor's Office of Planning and Research (OPR) issued a "Technical Advisory on Evaluating Transportation Impacts in CEQA" recommending that adopted thresholds for new projects should reduce VMT by 15%.

Provisions under Section 15064.3(c) of the CEQA Guidelines require the application of VMT since July 1, 2020.

Lead agencies have discretion to deviate from OPR's recommended 15% reduction in VMT by developing and adopting their own, or relying on thresholds recommended by other agencies, “provided the decision of the lead agency to adopt such thresholds is supported by substantial evidence.” (Save Cuyama Valley v. County of Santa Barbara (2013) 213 Cal.App.4th 1059, 1068.) Substantial evidence means “enough relevant information and reasonable inferences from this information that a fair argument can be made to support a conclusion, even though other conclusions might also be reached.” (Protect the Historic Amador Waterways v. Amador Water Agency (2004) 116 Cal.App.4th 1099, 1108-1109.)

ANALYSIS
TJKM has prepared the "Morgan Hill VMT Methodology Memo" and "Morgan Hill VMT Mitigation Measures Memo" identifying the methodology to establish transportation impact analysis goals, objectives, and recommendations for VMT-based CEQA analysis.

VMT Metrics

14 CEQA Guidelines Section 15064.3(b)(4) states, “[a] lead agency has discretion to choose the most appropriate methodology to evaluate a project’s , including whether to express the change in absolute terms, per capita, per household or in any other measure.” VMT can be expressed as an efficiency-based metric (e.g., VMT per resident, VMT per employee, or VMT per service population) or as absolute metric (e.g., total VMT).

Therefore, staff and TJKM recommend using the Home-based VMT per Resident and the Home-based VMT per Employee metrics as outlined in the "Morgan Hill VMT Methodology Memo".
• Home-based VMT per Resident: VMT generated from travel between resident’s homes and other destinations, such as for work, school, household errands, in a defined geographic area divided by the total residents. This metric excludes trips between two non-residential locations, such as a trip between a retail center and a school. Home-based VMT per resident reflects all passenger vehicles assigned to the roadway network and is calculated using the production side of the vehicle trip table.
• Home-based VMT per Employee: VMT generated from travel between an employee’s home and work in a defined geographic area divided by the number of employees in the geographic area. Home-based work VMT per employee reflects all passenger vehicles assigned to the roadway network and is calculated using the attraction side of the vehicle trip table.

VMT Screening Criteria
The Governor’s Office of Planning and Research (OPR) recommends streamlining CEQA review of projects to identify areas where less detailed environmental review can be presumed. Projects that meet the screening criteria for VMT would most likely reduce VMT in a specific Travel Analysis Zone (TAZ) within Morgan Hill. In addition, a project that meets at least one of the screening criteria would be exempt from further VMT analysis. There are six types of screens recommended by TJKM for the City of Morgan Hill:

1. Project Size Screening: Projects that generate less than 110 average daily trips.

2. Locally Serving Retail Screening: Retail projects that are less than 50,000 square feet (includes fast-food/quick-serve restaurants).

3. Low VMT Area Screening: Residential and employment projects located within a low VMT generating area (15 percent below a region’s home based VMT per resident or home based VMT per employee metric).

4. Transit Proximity Screening: Projects located within Transit Priority Areas or High Quality Transit Corridors (located within half a mile radius of an existing or planned major transit stop).

5. Affordable Housing Screening: 100 percent affordable residential development (or the residential component of a mixed-use development).

6. Active Transportation Projects: Transportation projects that promote active

14 transportation, such as transit, bicycle, and pedestrian facilities.

Figure 1: Morgan Hill Transit Buffer (Transit Proximity Screen) around Caltrain Station and VTA Route 68 VMT Thresholds of Significance
Given the information provided within the "Morgan Hill VMT Methodology Memo" and the fact that lead agencies have discretion in setting thresholds, Staff and TJKM recommends the City of Morgan Hill use the city average as the VMT threshold for both residential (VMT per Capita) and employment (VMT per employee) land uses. This ensures that, at a minimum, the city’s VMT metrics remain the same. As such, since an impact under CEQA is considered to have occurred when there is an increase in VMT and GHG emissions, a starting level for thresholds can be existing conditions or baseline VMT metrics (Total VMT, VMT per capita, VMT per employee, VMT per service population etc.). Since VMT increases with increase in population and employment, the impact can be calculated by comparing development alternatives to baseline conditions. This assumes that trip patterns generated by new land uses are similar to existing land uses. Therefore, the following are the recommended thresholds for Morgan Hill.

A project would result in a significant project-generated VMT impact if:

1. For residential projects, its net VMT per capita exceeds Morgan Hill’s baseline VMT per capita.

2. For office and industrial projects, its net VMT per employee exceeds Morgan Hill’s baseline VMT per employee.

3. For all other uses, including commercial/retail uses over the 50,000 square foot local threshold, a net increase in total VMT within Morgan Hill would be considered a significant impact.

VMT Metric Maps
The following maps show TAZs in Morgan Hill which are under the threshold, are mitigable, or unmitigable for VMT per Capita and VMT per Employee metrics. In

14 addition, a half mile boundary transit buffer zone has been drawn around the Morgan Hill Caltrain station and VTA Route 68 to show transit accessible areas which are exempt from VMT analysis.

Figure 2: VMT per Capita Map (Residential Projects)
Figure 3: VMT per Employee Map (Employment Projects)
VMT Mitigation
If a proposed land development project does not meet the proposed Screening Criteria or exceeds the proposed Thresholds of Significance outlined above, the proposed project could result in a significant environmental impact and would need to identify mitigation measures to reduce that impact. Therefore, the "Morgan Hill VMT Mitigation Measures Memo" describes the recommended VMT mitigation strategies that may apply to projects in the City of Morgan Hill. The memo summarizes potential strategies

14 available at this time to reduce VMT that are suited to the built environment of the City and identifies new mitigation program ideas that the City may consider as part of future planning efforts or projects. The work being done as part of the Transportation Master Plan may also generate mitigation program ideas that can be used with this policy.

PLANNING COMMISSION ACTION:

The Planning Commission reviewed the proposed Citywide VMT Policy on June 27, 2023. Following discussion, the Planning Commission approved Resolution No. 23-10 recommending the City Council adopt Screening Criteria, Thresholds of Significance, and TDM strategies regarding the City's implementation of SB 743 transition from LOS to VMT as the metric for transportation analysis under CEQA for development projects; and that the use of LOS thresholds shall be utilized in the review of non-CEQA related impacts for discretionary planning applications in accordance with the General Plan, separate and distinct from the VMT Thresholds of Significance.

COMMUNITY ENGAGEMENT:

Inform/Engage
The Planning Commission held several public workshops regarding this item on March 10, 2020, April 28, 2020, June 23, 2020, and August 11, 2020. In addition, the City Council held a public workshop regarding this item on June 2, 2021.

On June 27, 2023, the Planning Commission held a public hearing regarding this item in which a 10-day public hearing notice was published in the Friday, June 9, 2023 edition of the Morgan Hill Times.

A 10-day public hearing notice was published in the Friday, August 25, 2023 edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096.

ALTERNATIVE ACTIONS:

The CEQA Guidelines and OPR encourages local jurisdictions to adopt VMT Screening Criteria and Thresholds of Significance intended for general use by resolution as part of a public process. Lead agencies also have the option to establish thresholds on a project-by-project basis as the City has been conducting VMT analysis since the implementation of SB 743. The location of Morgan Hill within the Bay Area causes large commutes for community members for work, shopping, services, and recreation. The lack of public transportation also impacts people's commuting choices. Requiring development in Morgan Hill to meet the 15% reduction in emissions is very challenging.

Therefore, staff proposes adopting the above proposed Screening Criteria and Thresholds of Significance through a public process which improves transparency and can be used to help educate the public and project applicants about the City’s expectations. If the City adopts VMT Screening Criteria and Thresholds of Significance, it establishes consistency on when VMT is exempt from review and establishes a set standard to be utilized city-wide. In addition, adopting VMT Screening Criteria or Thresholds of Significance will streamline certain projects that generate low VMT or that are located within low VMT areas of the City. Also, adopting a defined list of VMT Screening Criteria and Thresholds of Significance assists in aligning with state goals for

14 greenhouse gas reduction, infill development, transit, active transportation, and public health.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 6, 2018, the City Council adopted the Biennial FY 2018-19 & FY 2019-20 Operating Budget which included one-time funding of $200,000 within the Special Revenue Fund 207 for Long Range Planning’s work program task to implement SB 743.

On January 15, 2020, the City Council approved a professional services agreement with Nelson\Nygaard Consulting Associates, Inc. to assist with the City's implementation of SB 743 and establishing VMT Screening Criteria and Thresholds of Significance utilizing the VTA Countywide model for a total not-to-exceed amount of $110,000.

The Planning Commission has held workshops on March 10, 2020, April 28, 2020, June 23, 2020, and August 11, 2020 regarding the City’s implementation of SB 743.

The Planning Commission made a recommendation on August 11, 2020 to approve the proposed VMT Screening Criteria on a 4-3 vote; the commission agreed on three of the four proposed screens. The proposed screen the Commission did not have unanimous support on was the proposed location-based screen, titled ‘Low VMT Location’. In addition, the motion also recommended the City conduct its own VMT model within an 18 month or sooner timeframe in order to deviate from the VTA Model and revise the adopted screens as necessary once the model is complete. The Commission did not make a recommendation on the proposed Thresholds of Significance, because, although the Commission agreed with the proposed Thresholds of Significance, the Commission did not agree on the VTA Model that the thresholds were based on.

On June 2, 2021, the City Council reviewed the proposed VMT Screening Criteria and Thresholds of Significance as proposed by Nelson\Nygaard Consulting Associates, Inc. utilizing the VTA Countywide model. However, the Screening Criteria and Thresholds of Significance identified by Nelson\Nygaard were not adopted by the City Council, and City staff was directed to pursue its own VMT model, that is more reflective of the City, in order to deviate from the VTA Countywide VMT model, and/or to deviate from OPR’s Technical Advisory recommending to reduce VMT of new development by 15%, and revise the proposed screens and thresholds as necessary once the City’s model and/or deviation from OPR's Technical Advisory is complete.

On January 19, 2022, the City Council approved a professional services agreement with TJKM Transportation Consultants for assistance with the City's implementation of SB 743 for a total not-to-exceed amount of $79,835.

On June 27, 2023, the Planning Commission recommended the City Council adopt a Citywide VMT policy inclusive of establishing VMT as the appropriate metric for evaluating transportation-related impacts under CEQA and establishing VMT screening criteria, VMT thresholds of significance, and TDM strategies, as well as to utilize LOS

14 thresholds in the review of non-CEQA related impacts for discretionary planning applications in accordance with the General Plan.

FISCAL AND RESOURCE IMPACT:

This item is included in the current adopted budget (FY22-23 and FY23-24) and is part of the Long Range Planning workplan and is funded through the Long Range Planning Fund (207). In addition, funds for the professional services agreement with TJKM are budgeted within the Long-Range Planning Fund (207) and included in the adopted Biennial Operating Budget.

CEQA (California Environmental Quality Act):

Not a Project
The adoption of Vehicle-Miles-Traveled (VMT) screening criteria and thresholds of significance under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15064.7 does not require environmental review. This activity is not a project pursuant to State CEQA Guidelines Sections 15060(c)(3) and 15378.

The establishment and implementation of a VMT threshold is a state-mandated requirement under SB 743 and Section 15064.3 of the CEQA Guidelines.

RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADOPTING A CITYWIDE VEHICLE

MILES TRAVELED (VMT) POLICY INCLUSIVE OF

ESTABLISHING VMT AS THE APPROPRIATE METRIC

FOR EVALUATING TRANSPORTATION-RELATED

IMPACTS UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) AND

ESTABLISHING VMT SCREENING CRITERIA, VMT

THRESHOLDS OF SIGNIFICANCE, AND

TRANSPORTATION DEMAND MANAGEMENT (TDM)

STRATEGIES
WHEREAS, the California Environmental Quality Act (CEQA) was enacted by the State of California in 1970 to ensure the long-term protection of the environment and requires public agencies to analyze and disclose the effects of their actions on the environment; and WHEREAS, the Governor’s Office of Planning and Research (OPR) develops the CEQA Guidelines to interpret CEQA statutes and published court decisions, including several appendices to the CEQA Guidelines that contain forms and guidance for lead agencies when performing environmental review; and
WHEREAS, in 2013, Senate Bill (SB) 743 (Steinberg) was signed into law directing OPR to produce new CEQA guidance that removes automobile Level of Service (LOS) from transportation analysis under CEQA and update the way transportation impacts are analyzed under CEQA for new land use and transportation projects using alternative metrics that promote a reduction in greenhouse gases, the development of multimodal transportation, and a diversity of land uses, all towards achieving the State’s climate action goals; and WHEREAS, in 2018 OPR proposed, and the California Natural Resources Agency adopted, Section 15064.3 of the State’s CEQA Guidelines that identifies Vehicle Miles Traveled (VMT) as the most appropriate measure of a project’s transportation impacts under CEQA, and states that a project’s effect on automobile delay shall not constitute a significant environmental impact; and
WHEREAS, as of July 1, 2020, all lead agencies are required to use VMT to measure transportation impacts, in accordance with Section 15064.3 of the CEQA Guidelines; and WHEREAS, VMT measures the amount and distance of automobile travel attributable to a project, taking the number of passengers within a vehicle into account. Typically, projects at a greater distance from other uses, located in areas with limited access to non-auto modes of travel, generate more driving than those that are located proximate to other complementary uses and/or where there are transportation options other than the automobile. The information is used

City of Morgan Hill
Resolution No. 23-xxx

to calculate VMT is already required to calculate and factor air quality and greenhouse gas emissions; and
WHEREAS, OPR released a Technical Advisory on Evaluating Transportation Impacts in CEQA, which includes recommendations for thresholds of significance for evaluating impacts of office, residential, and retail developments, and provides screening criteria for identifying the types of projects that can be presumed to have a less than significant impact; and WHEREAS, thresholds of significance are identifiable quantitative, qualitive, or performance level measures of a particular environmental effect, non-compliance with which means the effect will normally be determined to be significant, and compliance with which means the effect normally will be determined to be less than significant; and WHEREAS, the City of Morgan Hill intends to adopt a VMT Policy, inclusive of establishing VMT screening criteria and thresholds of significance, supported by substantial evidence, in order to meet the intent of State legislation; and WHEREAS, CEQA Guidelines Section 15064.7(b) directs lead agencies to adopt thresholds of significance by ordinance, resolution, rule, or regulation through a public process, and be supported by substantial evidence; and
WHEREAS, such requests were considered by the Planning Commission at its meeting of June 27, 2023 and by the City Council at its meeting of September 6, 2023; and WHEREAS, the adoption of Vehicle-Miles-Traveled (VMT) policy, consisting of screening criteria and thresholds of significance and are supported by substantial evidence, in accordance with CEQA Guidelines Section 15064.7 does not require environmental review. This activity is not a project pursuant to State CEQA Guidelines Sections 15060(c)(3) and 15378. The establishment and implementation of a VMT threshold is a state-mandated requirement under SB 743 and Section 15064.3 of the CEQA Guidelines; and
WHEREAS, testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials have been considered in the review process.

NOW, THEREFORE, THE MORGAN HILL CITY COUNCIL DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council has considered the full record before it, which may include but not limited to such things as the staff report, public testimony, and other materials and evidence submitted or provided. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. The City Council adopts a citywide policy establishing Vehicle Miles Traveled (VMT), consisting of screening criteria and thresholds of significance and are supported by substantial evidence, as the standard of measurement for analysis of

City of Morgan Hill
Resolution No. 23-xxx

potential environmental impacts from vehicular traffic under the California Environmental Quality Act (CEQA), which is attached hereto as Exhibit A.

SECTION 3. The City Council further finds that the use of Level of Service (LOS) thresholds shall be utilized in the review of non-CEQA related impacts for discretionary planning applications in accordance with the General Plan, separate and distinct from the VMT Thresholds of Significance described herein.

PASSED AND ADOPTED THIS 6th DAY OF SEPTEMBER 2023, AT A REGULAR MEETING OF THE CITY COUNCIL BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
___________________________________ _______________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 23-xxx

CERTIFICATE OF THE CITY CLERK

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. , adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the 6th day of September, 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-xxx

EXHIBIT "A"

CITY POLICY ESTABLISHING SCREENING CRITERIA AND THRESHOLDS OF

SIGNIFICANCE USING VEHICLE MILES TRAVELLED (VMT) TO MEASURE

TRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA)
Morgan Hill VMT Screening Criteria
Screen Type Screening Criteria
Project Size Projects that generate less than 110 average daily trips (when estimating trips generated by a project, Institute of Transportation Engineers (ITE) guidelines or local surveys of trip generations need to be reviewed and approved by the City of Morgan Hill; such analysis will need to account for trip generation of all uses on the project site when calculating the total number of daily trips) Locally Serving Retail Retail projects that are less than 50,000 square feet (includes fast-food/quick-serve restaurants)
Low VMT Area Residential and employment projects located within a low VMT generating area (the Low VMT Area screen is equal to the City of Morgan Hill’s average home-based VMT per resident or VMT per employee, depending on the type of project)
Transit Proximity Projects located within Transit Priority Areas or High Quality Transit Corridors (located within half a mile radius of an existing or planned major transit stop)
Affordable Housing 100% affordable residential development (or the residential component of a mixed-use development)
Active Transportation
Projects
Transportation projects that promote active transportation (such as transit, bicycle, and pedestrian facilities)
Morgan Hill VMT Thresholds of Significance
Land Use Thresholds of Significance
Residential VMT per capita does not exceed the City of Morgan Hill's baseline VMT per capita
Office & Industrial VMT per employee does not exceed the City of Morgan Hill's baseline VMT per employee
All Other Uses (includes
commercial/retail uses
over 50,000 square feet)
No net increase in total VMT within the City of Morgan Hill

Cube Training for Beginner Morgan Hill
VMT Methodology and Thresholds
September 6, 2023
TJKM

N
• Governor’s Office of Planning and Research
(OPR) setup guidelines on how to evaluate
project impact
• Changes how transportation impacts are
measured for CEQA
• VMT will now be used to measure impact. LOS
no longer applicable
• Implementation Deadline – July 1, 2020
SB743 – VMT Thresholds

N
• What is Vehicle Miles Traveled (VMT)?
• It is measure of vehicle travel where
number of vehicles is multiplied by
distance travelled (see table)
• VMT has been used as an input to CEQA to
calculate Air Quality and GHG emissions
• How is VMT estimated?
• Travel models can estimate VMT by
multiplying traffic volume with distance
travelled.
• Models can estimate VMT by city, County,
region etc.

SB743 – What is VMT

N
• Currently, Morgan Hill evaluates VMT impacts for development projects on a case-by-case basis, requiring an EIR/Overriding Considerations throughout most of Morgan Hill.
• By setting a methodology Morgan Hill is:
• Compliant with SB 743;
• Consistent with its VMT policy (reduces potential lawsuits); • Transparent (developers and residents will have a concrete document to refer to);
• Removes barriers to infill development;
• Maintaining local control on how to implement VMT within the City.

Purpose of VMT Methodology

N
VMT Maps (OPR Guidelines)
VMT per Capita (OPR Guidelines) VMT per Employee (OPR Guidelines)

N
VMT Methodology
• TJKM in coordination with the City of Morgan Hill identified 34 travel analysis zones from the VTA travel demand model to assist in VMT thresholds setting.

Morgan Hill TAZ Map
VMT Metrics
Home-Based
VMT
per Resident
Home-Based
VMT
per Employee
2015 Base Year
Model 24.64 21.42
2040 Forecast
Year Model 25.46 22.65

N
VMT Thresholds
• City Average as VMT Threshold for both residential (VMT per Capita) and employment (VMT per employee) land uses.
• 71% of TAZs within Morgan Hill meets threshold for VMT per Capita. • 38% of TAZs within Morgan Hill meets threshold for VMT per Employee.

N
VMT Screening Criteria
• Project Size – Fewer than 110 average daily trips.
• Locally Serving Retail – Retail development under 50,000 square feet (about the size of an average Safeway supermarket).
• Low VMT Area Screening –Areas where the existing VMT is already lower than the thresholds.
• Transit Proximity Screening – Half a mile away from a major transit stop. • Affordable Housing Screening – Residential projects with 100% affordable housing. • Active Transportation Projects –Transit, bicycle, pedestrian facilities.

N
VMT Maps (VMT/Capita Comparison)
VMT per Capita (OPR Guidelines) VMT per Capita (Morgan Hill Threshold)

N
VMT Maps (VMT/Employee Comparison)
VMT per Employee (OPR Guidelines) VMT per Employee (Morgan Hill Threshold)

15 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 2023
PREPARED BY:

Matthew Mahood, Economic Development Director
APPROVED BY: City Manager

ADOPT RESOLUTION AMENDING AND RESTATING THE CITY OF

MORGAN HILL'S STATEWIDE COMMUNITY INFASTRUCTURE
PROGRAM ("SCIP")

RECOMMENDATION(S)

1. Open and Close Public Hearing; and

2. Adopt amended and restated resolution

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Fiscal Sustainability
Affordable Housing and Homelessness
Economic Development
Guiding Documents
Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

Background:

California Statewide Communities Development Authority (CSCDA) is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. 530 cities, counties and special districts throughout California are members of CSCDA, including the City of Morgan Hill. Statewide Community Infrastructure Program (SCIP) was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits through a pooled special assessment districts program. SCIP was expanded to include financing of public capital improvements directly, in addition to just fees, and has now been further expanded to include community facilities districts (“CFDs”), as provided for in the proposed Amended and Restated Resolution. Since its

15 inception, SCIP has issued over $1 billion in land secured special assessment and CFD bonds for development projects in California.

The City of Morgan Hill initially joined SCIP in July 2013. City staff is recommending that the City Council adopt modifications to its original SCIP participation to allow financing of fees and facilities through the formation of CFDs in addition to the current assessment district program. By adding CFDs, developers can finance a broader range of City fees, such as the police, fire, library, general city fee and the housing in-lieu fee.

It will also allow the developer more flexibility in adjusting tax rates by specific product type, assist in forming separate improvement areas when projects need to be phased, and provide for more facilities to be financed similar in type to the fees.

If a property owner chooses to participate, and the City approves the application, the selected public capital improvements, facilities and/or development impact fees owed to the City will be financed by the issuance of tax-exempt bonds by CSCDA. CSCDA will form the district and impose an assessment or special tax, as applicable, on the owner’s property to repay the portion of the bonds issued to finance the fees paid with respect to the property (no one developer within the SCIP pool is responsible for the payment related to any other project). With respect to impact fees, the property owner will either pay the impact fees at the time of permit issuance, and will be reimbursed from the SCIP bond proceeds when the SCIP bonds are issued, or the fees will be funded directly from the proceeds of the SCIP bonds. In both cases, the fees are subject to requisition by the City at any time to make authorized fee expenditures, and the City is never at risk for payment of its fees. If improvements or facilities are contemplated, the proposed Amended and Restated Resolution includes a form of acquisition agreement, which outlines how a developer will be reimbursed for improvements as they are certified complete by the City.

The benefits to the property owner/developer include:
• Only property owners who choose to participate in the program will have assessments or special taxes imposed on their property. • Instead of paying cash for public capital improvements and/or development impact fees, the property owner receives low-cost, long-term tax-exempt financing of those fees, freeing up capital for other purposes. • The property owner can choose to pay off the assessments or special taxes at any time.
• For home buyers, paying for the costs of public infrastructure through an assessment or special tax is superior to having those costs "rolled" into the cost of the home. Although the tax bill is higher, the amount of the mortgage is smaller, making it easier to qualify. Moreover, because the assessment/special tax financing is at tax-exempt rates, it typically comes at a lower cost than mortgage rates.
• Owners of smaller projects, both residential and commercial, can have access to tax-exempt financing of infrastructure. Before the inception of SCIP, only projects large enough to justify the formation of an assessment or community facilities district had access to tax-exempt financing. SCIP can finance projects

15 as low as $500,000, which would not be economical on a stand-alone basis.

The benefits to the City include:
• As in conventional assessment district and CFD financing, the City is not liable to repay the bonds issued by CSCDA or the assessments or special taxes, as applicable, imposed on the participating properties.
• CSCDA handles all district formation, district administration, bond issuance and bond administration functions. A participating city, county or special district can provide tax-exempt financing to property owners through SCIP while committing virtually no staff time to administer the program.
• Providing tax-exempt financing helps participating cities and counties cushion the impact of rising public capital improvements costs and development impact fees on new development. Many developers rely on assessment district or CFD financing through SCIP in making the decision to purchase land thereby improving a City’s competitive advantage in attracting new development. • The availability of financing will encourage developers to pull permits and pay fees in larger blocks, giving the participating city, county or special district immediate access to revenues for public infrastructure, rather than receiving a trickle of revenues stretched out over time. As part of the entitlement negotiation process, the possibility of tax-exempt financing of fees can be used to encourage a developer to pay fees up front.
• In some cases, the assessments or special taxes on successful projects can be refinanced through refunding bonds. Savings achieved through refinancing may be directed back to the participating city, county or special district for use on public infrastructure, or lower property taxes subject to applicable federal tax limitations.

The proposed Amended and Restated Resolution authorizes CSCDA to accept applications from owners of property within our planning jurisdiction to apply for taxexempt financing of public capital improvements and development impact fees through SCIP. It also authorizes CSCDA to form assessment districts and community facilities districts within our City’s boundaries, conduct assessment and special tax proceedings and levy assessments and special taxes against the property of participating owners.

The authorization of CSCDA to form assessment districts within the City’s boundaries, conduct assessment proceedings, and levy assessments against the property of participating owners previously approved by the City Council would remain in effect. It approves the form of an acquisition agreement, attached to the Amended and Restated Resolution as Exhibit B, to be entered into between the City and the participating property owner/developer, if applicable, to provide the terms and conditions under which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law.

15 The attached exhibits A through E are for background and information only. They are for use by CSCDA with the applicant.

COMMUNITY ENGAGEMENT:

Inform
The public notice was posted and noticed in the Morgan Hill Times on August 25, 2023.

ALTERNATIVE ACTIONS:

The City Council could choose not to amend and restate the City of Morgan Hill's Statewide Community Infrastructure Program (“SCIP”) Resolution, resulting in the previous Resolution remaining in effect.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

In July 2013, the City Council adopted a resolution approving the City of Morgan Hill's participation in the Statewide Community Infrastructure Program (“SCIP”).

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact on the City. The City has no risk of default.

CEQA (California Environmental Quality Act):

Not a Project

741
~ CITY COUNCIL STAFF REPORT
!~~ MEETING DATE: July 17, 2013

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
("SCIP")
RECOMMENDED ACTION(S):

1. Conduct Public Hearing

2. Approve participation by the City ofMorgan Hill in the Statewide Community Infrastructure Program of the California Statewide Communities Development Authority

3. Approve Resolution
Agenda Item# 2., ~

4. Direct Staff to take necessary steps to assist Morgan Hill property owners in submitting the SCIP Application

5. Authorize the City Mana&er to execute an Acquisition Agreement EXECUTIVE SUMMARY:

Discussion: This item authorizes City participation in the Statewide Community Infrastructure Program ("SCIP"), which is sponsored by the California Statewide Communities Development Authority ("CSCDA"). The City Council is requested to hold a public hearing and receive public testimony on SCIP and consider adopting a resolution making certain findings and authorizing certain matters necessary to participate in SCIP.

Background: The California Statewide Communities Development Authority ("CSCDA") is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The member agencies of CSCDA include approximately 356 cities and 57 counties throughout California, including the City ofMorgan Hill (the "City").

SCIP was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits. The program has since been expanded to include financing of public capital improvements directly. If a property owner chooses to participate, the selected public capital improvements and the development impact fees owed to the City will be financed by the issuance oftax-exempt bonds by CSCDA. CSCDA will impose a special assessment on the owner's property to repay the portion of the bonds issued to finance the fees paid with respect to the property. With respect to impact fees, the property owner will either pay the impact fees at the time of permit issuance, and will be reimbursed from the SCIP bond proceeds when the SCIP bonds are issued; or the fees will be funded directly from the proceeds of the SCIP bonds. In the former case, the City is required to pay the fees over to SCIP, and in the latter case, SCIP holds the bond proceeds representing the fees. In both cases the fees are subject to requisition by the City at any time to make authorized fee expenditures.

But by holding and investing the money until it is spent, SCIP is able to monitor the investment earnings (which come to the City) for federal tax law arbitrage purposes. SCIP encourages the U:\City Clerk\CITY COUNCIL AGENDA DOCUMENTS\2013\07-17-2013\Stafl"Reports\Statewide CIP Staff Report 07-17-13 CC.docx

742
which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law.

Authorization of this resolution is consistent with the 2013 City Council Priorities, Goals and Strategies, specifically "stimulating economic development" by leveraging resources and programs available statewide and regionally to advance projects within the City.

Attached to the resolution as Exhibit A is a "Form of Resolution of Intention to be adopted by CSCDA" ; this is for informational purposes and does not require action by this Council.

FISCAL/RESOURCE IMPACT: The only out-of-pocket cost for the City will be the $1,500 application fee, which will be paid from Fund 206 Community Development. After the program is in place, staff resources from both Community Development and Finance will be required to work with developers and the California Statewide Communities Development Authority to execute each individual financing, and to monitor and account for each individual financing for up to 30 years thereafter.

Attachment:

1. Resolution

2. SCIP Overview & F AQ' s
U:\City Clerk\CITY COUNCIL AGENDA DOCUMENTS\2013\07-17-2013\StaffReports\Statewide CIP StaffReport 07-17-13 CC.docx

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Statewide Community Infrastructure Program (SCIP)
Overview
In response to the increasing local agency staff time and budget pressures caused by new commercial, industrial or residential development, California Communities® offers the Statewide Community Infrastructure Program ("SCIP"). SCJP is a financing program that enables developers to pay most impact fees and finance public improvements through an acquisition agreement that qualify under the 1913/1915 Act (excluding school fees) via tax-exempt bond issuance proceeds. The SCIP program has assisted communities and developers throughout California to finance over $150.2 million in impact fees since 2003.

This highly versatile program has been molded to the needs of each local agency participant of SCIP. As most local agencies require developers to pay impact fees prior to obtaining a permit, SCIP can be used to directly prepay these fees or, alternatively, to reimburse the developer after fee payment. The program can be used to enable developers to pay for, or be reimbursed for, all eligible impact fees or for a single impact fee. Moreover, the program may alleviate the need for a fee deferral program by providing the local agency with necessary funds and eliminating the risk of nonpayment by the developer.

SCIP has been designed to minimize local agency staff involvement by using an experienced team of finance professionals to administer the program, thereby freeing valuable local agency resources for other functions.

To participate, a local agency need only be a member of California Communities® and pass a resolution approving the program. Please refer to the SCJP FAQ's and the SCJP Manual for details.

To apply, please complete the online application and return the completed Landowner Information Form (including required attachments) along with the $1 ,500 application fee.

For more information, please contact Scott Carper at (925) 765-8525.

Online Application
To complete the on-line SCIP Application form: APPLY NOW o+ . http://www .cacommunities .org/public-agency-pro grams/ statewide-community-infrastructu... 6/25/2013

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STATEWIDE COMMUNITY

INFRASTRUCTURE

PROGRAM (SCIP)
SCIPFAQs I SCIP Finance Team
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SCIP FAQs
Frequently Asked Questions about Statewide Community Infrastructure Program (SCIP) • What is CSCDA?
• Who are the participants of CSCDA?
• What are eligible development impact fees?
How can impact fees be made to be paid in advance?
• If we use SCIP and become a member of CSCDA, are we in any way liable for payments or defaults of other participants?
• What is the difference between an assessment lien and an assessment bond? • Is voter approval required?
• Is a local agency participant of the pool liable to make any bond payments? • How is SCIP administered?
• What are the duties of a local agency participant after the bonds are issued? How does SCIP meet the benefit test?
Do commercial projects qualify?
How do you join SCIP?
W hat is CSCDA?
The California Statewide Communities Development Authority (CSCDA) is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties.

Who are the participants of CSCDA?
Over 350 cities, counties and special districts in the State are members of CSCDA.

What are eligible development impact fees?
Fees paid to a local agency to mitigate the impact of development and which will ultimately be used by the local agency to pay for the costs of public infrastructure.

How can impact fees be made to be paid in advance?
The local agency can negotiate with the developer to have the fees paid upon approval of a specific plan, development agreement or vesting tentative map and then fund the fees through SCIP.

If we use SCIP and become a member of CSCDA, are we in any way liable for payments or defaults of other participants?
Absolutely not. If one participant were to default, there would be no effect on the other participants. There is no cross-collateralizaticin of payments or assessments. http://www.cacommunities.org/public-agency-programs/statewide-community-infrastructu... 6/25/2013

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SCIP F AQs - California Statewide Communities Development Authority Page 2 of2 54,191
AFFORDABlE

UNITS FINANCED

FOUNDED AND SPONSORED BY
~l LEAGUE
OF C1\l.IFORNIA
ClTlES
What is the difference between an assessment lien and an assessment bond? The assessment lien is imposed on the parcel of land pursuant to the Municipal Improvement Act of 1913.

The Act authorizes an issuer to impose an assessment lien on benefited property to finance various public improvements. The Bonds are Limited Obligation Improvement Bonds authorized under the Improvement Bond Act of 1915 and secured by !he liens imposed under the 1913 Act.

Is voter approval required?
No. There is no requirement for a general election. CSCDA will conduct a hearing and landowner ballot protest procedure. Since a condition of participation in SCIP is landowner consent, protests are not expected.

Is a local agency participant of the pool liable to make any bond payments? No. The bonds are limited obligation bonds, and under no circumstance is a lbcal agency pool participant liable from its general fund or from any other revenue source.

How is SCIP administered?
SCIP is administered by highly trained and experienced consultants selected by CSCDA who prepare the tax . roll, disseminate continuing disclosure reports, and handle delinquencies.

What are the duties of a local agency participant after the bonds are issued? The only duties required are to provide SCIP consultants with information concerning the development such as recordation of subdivisions and changes in property ownership.

How does SCIP meet the benefit test?
The benefit test is met by the fact that the each property must pay the impact fee in order to develop. This differs from typical assessment proceedings in that the benefit test is tied to the improvement.

Do commercial projects qualify?
Yes, in fact the permit fee program is ideal for commercial projects which can pay substantial impact fees but normally do not participate in bond financing. Examples. would be shopping centers or high-rise buildings.

How do you join SCIP?
The local agency's governing Council or Board must pass two SCIP resolutions. From that point, project questionnaires are filled out and submitted to the financing team for individual funding requests.

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RESOLUTION NO. _ _ _

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORGAN HILL

AUTHORIZING THE CITY TO JOIN THE STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM; AUTHORIZING THE CALIFORNIA

STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT

APPLICATIONS FROM PROPERTY OWNERS, CONDUCT SPECIAL

ASSESSMENT PROCEEDINGS AND LEVY ASSESSMENTS WITHIN THE
TERRITORY OF THE CITY OF MORGAN HILL; APPROVING FORM OF ACQUISITION AGREEMENT FOR USE WHEN APPLICABLE; AND

AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the "Authority") is a joint exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of Morgan Hill (the "City"); and WHEREAS, the Authority has established the Statewide Community Infrastructure Program ("SCIP") to allow the financing of certain development impact fees (the "Fees") levied in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development to pay for public capital improvements (collectively, the "Fee Act") through the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the "1913 Act") and the issuance of improvement bonds (the "Local Obligations") under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the unpaid special assessments; and WHEREAS, SCIP will also allow the financing of certain public capital improvements to be constructed by or on behalf of property owners for acquisition by the City or another public agency (the "Improvements"); and
WHEREAS, the City desires to allow the owners of property being developed within its jurisdiction ("Participating Developers") to participate in SCIP and to allow the Authority to conduct assessment proceedings under the 1913 Act and to issue Local Obligations under the 1915 Act to finance Fees levied on such properties and Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such assessments; and
WHEREAS, in each year in which eligible property owners within the jurisdiction of the City elect to be Participating Developers, the Authority will conduct assessment proceedings under the 1913 Act and issue Local Obligations under the 1915 Act to finance Fees payable by such property owners and Improvements and, at the conclusion of such proceedings, will levy special assessments on such property within the territory of the City; WHEREAS, there has been presented to this meeting a proposed fonn of Resolution of Intention to be adopted by the Authority in connection with such assessment proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within which

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assessments may be levied for SCIP (provided that each Participating Developer consents to such assessment) shall be coterminous with the City's official boundaries of record at the time of adoption of each such ROI (the "Proposed Boundaries"), and reference is hereby made to such boundaries for the plat or map required to be included in this Resolution pursuant to Section 10104 ofthe Streets and Highways Code; and
WHEREAS, there has also been presented to this meeting a proposed form of Acquisition Agreement (the "Acquisition Agreement"), a copy of which is attached hereto as Exhibit B, to be approved as to form for use with respect to any Improvements to be constructed and installed by a Participating Developer and for which the Participating Developer requests acquisition financing as part of its SCIP application; and
WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the adoption of this resolution at a public hearing, which was duly conducted by this Council concerning the significant public benefits of SCIP and the financing of the Improvements and the public capital improvements to be paid for with the proceeds of the Fees; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morgan Hill as follows:

Section 1. The City hereby consents to the conduct of special assessment proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local Obligations under the 1915 Act on any property within the Proposed Boundaries; provided, that (1) Such proceedings are conducted pursuant to one or more Resolutions oflntention in substantially the form of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property, execute a written consent to the levy of assessment in connection with SCIP by the Authority and execute an assessment ballot in favor of such assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution.

Section 2. The City hereby finds and declares that the issuance of bonds by the Authority in connection with SCIP will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and the more efficient delivery of local agency services to residential and commercial development within the City.

Section 3. The Authority has prepared and will update from time to time the "SCIP Manual of Procedures" (the "Manual"), and the City will handle Fee revenues and funds for Improvements for properties participating in SCIP in accordance with the procedures set forth in

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the Manual.

Section 4. The form of Acquisition Agreement presented to this meeting is hereby approved, and the Mayor is authorized to execute and the City Clerk is authorized to attest the execution of a completed Acquisition Agreement in substantially said form and pertaining to the Improvements being financed on behalf of the applicable Participating Developer.

Section 5. The appropriate officials and staff of the City are hereby authorized and directed to make SCIP applications available to all property owners who are subject to Fees for new development within the City and/or who are conditioned to install Improvements and to inform such owners of their option to participate in SCIP; provided, that the Authority shall be responsible for providing such applications and related materials at its own expense. The staff persons listed on the attached Exhibit C, together with any other staff persons chosen by the City Manager from time to time, are hereby designated as the contact persons for the Authority in connection with the SCIP program.

Section 6. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such documents as may be required by Bond Counsel in connection with the participation in SCIP of any districts, authorities or other third-party entities entitled to own Improvements and/or to levy and collect fees on new development to pay for public capital improvements within the jurisdiction of the City, as are reasonably required by the Authority in accordance with the Manual to implement SCIP for Participating Developers and to evidence compliance with the requirements of federal and state law in connection with the issuance by the Authority of the Local Obligations and any other bonds for SCIP. To that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed on Exhibit C, or other staff person acting in the same capacity for the City with respect to SCIP, are hereby authorized and designated to declare the official intent of the City with respect to the public capital improvements to be paid or reimbursed through participation in SCIP.

Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority.

PASSED AND ADOPTED THIS
FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST:

IRMA TORREZ, City Clerk
DAY OF 2013 BY THE
APPROVED:

STEVE TATE, Mayor

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~ CERTIFICATION ~

I, IRMA TORREZ, CITY CLERK OF THE CITY OF MORGAN HILL,
CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Resolution No. , New Series, adopted by the City Council ofthe City of Morgan Hill, California at its regular meeting held on the day of , 2013.

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

DATE: _ ______ _
IRMA TORREZ, City Clerk

751

EXHIBIT A TO THE RESOLUTION

FORM OF RESOLUTION OF INTENTION

TO BE ADOPTED BY CSCDA

RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE

IMPROVEMENTS AND/OR THE PAYMENT OF DEVELOPMENT IMP ACT

FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED
ASSESSMENT DISTRICT NO. (COUNTY OF SANTA CLARA,

CALIFORNIA), APPROVING A PROPOSED BOUNDARY MAP, MAKING

CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS

CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED

ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the " 1913 Act"), being Division 12 (commencing with Sections 1 0000 and following) of the California Streets and Highways Code, the Commission (the "Commission") of the California Statewide Communities Development Authority (the "Authority") intends to finance, through its Statewide Community Infrastructure Program, the payment of certain development impact fees for public capital improvements as described in Exhibit A attached hereto and by this reference incorporated herein (the "Fees") and to finance certain public capital improvements to be constructed by or on behalf of the property owner(s) and to be acquired by the City or another local agency (the "Improvements"), all of which are of benefit to the property within the proposed Assessment District No. (County of Santa Clara, California) (the "Assessment District"); and
WHEREAS, the Commission finds that the land specially benefited by the Fees and the Improvements is shown within the boundaries of the map entitled "Proposed Boundaries of Assessment District No. (County of Santa Clara, California)," a copy of which map is on file with the Secretary and presented to this Commission meeting, and determines that the land within the exterior boundaries shown on the map shall be designated "Assessment District No. (County of Santa Clara, California)"
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities Development Authority hereby finds, determines, and resolves as follows:

1. The above recitals are true and correct, and the Commission so finds and determines.

2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the "1931 Act"), being Division 4 (commencing with Section 2800) of the California Streets and Highways Code, the Commission hereby declares its intent to comply with the requirements of the 1931 Act by complying with Part 7.5 thereof.

3. The Commission has or will designate a registered, professional engineer as Engineer of Work for this project, and hereby directs said finn to p~epare the report containing the matters required by Sections 2961 (b) and 10204 of the Streets and Highways Code, as supplemented by Section 4 of Article XIIID of the California Constitution.

752

4. The proposed boundary map of the Assessment District is hereby approved and adopted.

Pursuant to Section 3111 of the California Streets and Highways Code, the Secretary of the Authority is directed to file a copy of the map in the office of the County Recorder of the County of Santa Clara within fifteen (15) days of the adoption ofthis resolution.

5. The Commission determines that the cost of the Fees and Improvements shall be specially assessed against the lots, pieces or parcels of land within the Assessment District benefiting from the payment of the Fees and the provision of the Improvements. The Commission intends to levy a special assessment upon such lots, pieces or parcels in accordance with the special benefit to be received by each such lot, piece or parcel of land, respectively, from the payment of the Fees and the provision of the Improvements.

6. The Commission intends, pursuant to subparagraph (f) of Section 10204 of the California Streets and Highways Code, to provide for an annual assessment upon each of the parcels of land in the proposed assessment district to pay various costs and expenses incurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from the administration and collection of assessment installments or from the administration or registration of the improvement bonds and the various funds and accounts pertaining thereto.

7. Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not to exceed thirty (30) years from the second day of September next succeeding twelve (12) months from their date.

8. The procedure for the collection of assessments and advance retirement of bonds under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 , Division 10, of the Streets and Highways Code ofthe State of California.

9. Neither the Authority nor any member agency thereof will obligate itself to advance available funds from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion, so advancing funds.

10. The amount of any surplus remaining in the improvement fund after payment of the Fees, acquisition of the Improvements and payment of all claims shall be distributed in accordance with the provisions of Section 10427.1 of the Streets and Highways Code.

11. To the extent any Fees are paid to the Authority in cash with respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer that made the payment.
[End of Form of Resolution of Intention]

753

EXHIBIT B TO THE RESOLUTION

FORM OF ACQUISITION AGREEMENT

CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM

ACQUISITION AGREEMENT

BY AND BETWEEN

CITY OF MORGAN HILL
AND
[DEVELOPER]
Dated as of 20

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ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the "Agreement") are the CITY OF MORGAN HILL, (the "Local Agency"), and [DEVELOPER], a [here indicate type of legal entity] (the "Developer").

B. The effective date of this Agreement is _ _ __ , 2013.

C. The Developer has applied for financing of certain public capital improvements (the "Acquisition Improvements") and capital facilities fees though the Statewide Community Infrastructure Program (''SCIP") administered by the California Statewide Communities Development Authority (the "Authority") and such application has been approved by the Local Agency.

D. Under SCIP, the Authority intends to issue bonds to fund, among other things, all or a portion of the costs of the Acquisition Improvements, and the portion of the proceeds of such bonds allocable to the cost of the Acquisition Improvements to be constructed and installed by the Developer, together with interest earned thereon prior to such acquisition, is referred to herein as the "Available Amount".

E. SCIP will provide financing for the acquisition by the Local Agency of the Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A are descriptions ofthe Acquisition Improvements, which descriptions are subject to modification by written amendment ofthis Agreement, subject to the approval of the Authority.

F. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the tenns and conditions of this Agreement, the Local Agency will acquire such completed Acquisition Improvements with the Available Amount.

G. Any and all monetary obligations of the Local Agency arising out of this Agreement are the special and limited obligations of the Local Agency payable only from the Available Amount, and no other funds whatsoever of the Local Agency shall be obligated therefore.

H. In consideration of Recitals A through G, inclusive, and the mutual covenants, undertakings and obligations set forth below, the Local Agency and the Developer agree as stated below.

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Agreement

ARTICLE I
DEFINITIONS; ASSESSMENT DISTRICT

FORMATION AND FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall have the meanings ascribed to them below:
"Acceptable Title" means free and clear of all monetary liens, encumbrances, assessments, whether any such item is recorded or unrecorded, and taxes, except those items which are reasonably determined by the Local Agency Engineer in his sole discretion not to interfere with the intended use and therefore are not required to be cleared from the title. "Acquisition Improvements" shall have the meaning assigned to such term in Recital C and are described in Exhibit A.
"Acquisition Price" means the amount paid to the Developer upon acquisition of all of the Acquisition Improvements as provided in Section 2.03. "Actual Cost" means the cost of construction of all of the Acquisition Improvements, as documented by the Developer to the satisfaction of the Local Agency, as certified by the Local Agency Engineer in an Actual Cost Certificate.
"Actual Cost Certificate" shall mean a certificate prepared by the Developer detailing the Actual Cost of all of the Acquisition Improvement to be acquired hereunder, as revised by the Local Agency Engineer pursuant to Section 2.03.
"Agreement" means this Acquisition Agreement, dated as of ___ , 20_. "Assessment District" means the assessment district established by the Authority pursuant to SCIP which includes the Developer's property for which the Acquisition Improvements are being funded.
"Authority" means the California Statewide Communities Development Authority. "Available Amount" means the amount of funds deposited in the Developer Acquisition Account by the Authority pursuant to SCIP, together with any interest earnings thereon. "Code" means the Streets and Highways Code of the State of California. "Developer" means [Developer], a [here indicate type of legal entity]. " [Developer] Acquisition Account" means the account by that name established by the Authority pursuant to SCIP for the purpose of paying the Acquisition Price of the Acquisition

756
Improvements.
"Local Agency" means the City of Morgan Hill.
"Local Agency Engineer" means the Director of Public Works of the Local Agency (the "Director") or the designee of the Director, who will be responsible for administering the acquisition of the Acquisition Improvements hereunder.
"Project" means the land development program of the Developer pertaining to the Developer's property in the Assessment District, including the design and construction of the Acquisition Improvements and the other public and private improvements to be constructed by the Developer within or adjacent to the Assessment District. · "SCIP" means the Statewide Community Infrastructure Program of the Authority. "SCIP Requisition" means a requisition for payment of funds from the [Developer] Acquisition Account in substantially the form attached hereto as Exhibit B. "SCIP Trust Agreement" means the Trust Agreement entered into by the Authority and the SCIP Trustee in connection with the financing for the Acquisition Improvements. "SCIP Trustee" means Wells Fargo Bank, National Association, as trustee under the SCIP Trust Agreement.
"Title Documents" means, for each Acquisition Improvement acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests therein (including easements) necessary or convenient to the operation, maintenance, rehabilitation and improvement by the Local Agency of that Acquisition Improvement (including, if necessary, easements for ingress and egress) and a Bill of Sale or similar instrument evidencing transfer of title to that Acquisition Improvement (other than said real property interests) to the Local Agency, where applicable.

Section 1.02. Participation in SCIP. Developer has applied for financing thorough SCIP of the Acquisition Improvements, and such application has been approved by the Local Agency. Developer and Local Agency agree that until and unless such fmancing is completed by the Authority and the Available Amount is deposited in the Developer Acquisition Account, neither the Developer nor the Local Agency shall have any obligations under this agreement. Developer agrees to cooperate with the Local Agency and the Authority in the completion of SCIP financing for the Acquisition Improvements.

Section 1.03. Deposit and Use of Available Amount.
(a) Upon completion of the SCIP financing, the Available Amount will be deposited by the Authority in the [Developer] Acquisition Account. (b) The Authority will cause the SCIP Trustee to establish and maintain the

757
[Developer] Acquisition Account for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the [Developer] Acquisition Account shall remain in the [Developer] Acquisition Account for use as provided herein and pursuant to SCIP. The amounts in the [Developer] Acquisition Account shall be withdrawn by the Local Agency in accordance with SCIP procedures upon completion of the Acquisition Improvements within 30 days (or as soon thereafter as reasonably practicable) of receipt by the Local Agency of the certification of the Local Agency Engineer required by Section 2.03 of this Agreement, and subject to satisfaction of all other conditions precedent to such acquisition pursuant to Section

2.04 of this Agreement, to pay the Acquisition Price of such completed Acquisition Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition Improvements and the payment of all costs thereof, any remaining funds in the [Developer] Acquisition Account (less any amount determined by the Local Agency as necessary to reserve for claims against such account) (i) shall be applied to pay the costs of any additional improvements eligible for acquisition with respect to the Project as approved by the Authority and, to the extent not so used, (ii) shall be applied by the Authority as provided in Section 10427.1 of the Code to pay a portion of the assessments levied on the Project property in the Assessment District.

Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect on Other Agreements. In no event shall any actual or alleged act by the Local Agency or any actual or alleged omission or failure to act by the Local Agency with respect to SCIP subject the Local Agency to monetary liability therefore. Further, nothing in this Agreement shall be construed as affecting the Developer's or the Local Agency's duty to perform their respective obligations under any other agreements, public improvement standards, land use regulations or subdivision requirements related to the Project, which obligations are and shall remain independent of the Developer's and the Local Agency's rights and obligations under this Agreement.

ARTICLE II

DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS Section 2.01. Letting and Administering Design Contracts. The parties presently anticipate that the Developer has awarded and administered or will award and administer engineering design contracts for the Acquisition Improvements to be acquired from Developer.

All eligible expenditures ofthe Developer for design engineering and related costs in connection with the Acquisition Improvements (whether as an advance to the Local Agency or directly to the design consultant) shall be reimbursed at the time of acquisition of such Acquisition Improvements. The Developer shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and shall not be entitled to any payment for design costs independent of or prior to the acquisition of Acquisition Improvements.

Section 2.02. Letting and Administration of Construction Contracts. State law requires that all Acquisition Improvements shall be constructed as if they were constructed under the direction and supervision of the Local Agency. In order to assure compliance with those provisions, except for any contracts entered into prior to the date hereof, Developer agrees to

758
comply with the guidelines of the Local Agency for letting and administering said contracts. The Developer agrees that all such contracts shall call for payment of prevailing wages as required by the Labor Code of the State of California.

Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to the Local Agency the Acquisition Improvements to be constructed by Developer (including any rights-of-way or other easements necessary for the operation and maintenance of the Acquisition Improvements, to the extent not already publicly owned) when such Acquisition Improvements are completed to the satisfaction of the Local Agency for an amount not to exceed the lesser of (i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvements. Exhibit A, attached beret<? and incorporated herein, contains a list of each Acquisition Improvement. At the time of completion of each Acquisition Improvement, the Developer shall deliver to the Local Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate and executed Title Documents for the transfer of the Acquisition Improvement, where necessary.

In the event that the Local Agency Engineer finds that the supporting paperwork submitted by the Developer fails to demonstrate the required relationship between the subject Actual Cost and the related Acquisition Improvement, the Local Agency Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Developer. If such further documentation is still not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any disallowed items, and such determination shall be final and conclusive.

In the event that the Actual Cost is in excess of the Available Amount, the Local Agency shall withdraw the Available Amount from the [Developer] Acquisition Account and transfer said amount to the Developer. In the event that the Actual Cost is less than the A vail able Amount, the Local Agency shall withdraw an amount from the [Developer] Acquisition Account equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then remaining in the [Developer] Acquisition Account shall be applied as provided in Section 1.03.

In no event shall the Local Agency be required to pay the Developer more than the amount on deposit in the [Developer] Acquisition Account at the time such payment is requested.

Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment by the Local Agency to the Developer from the [Developer] Acquisition Account of the Acquisition Price for an Acquisition Improvement shall be conditioned first upon the detennination of the Local Agency Engineer, pursuant to Section 2.03, that such Acquisition Improvement is all complete and ready for acceptance by the Local Agency, and shall be further conditioned upon prior satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien releases or other similar documentation satisfactory to the Local Agency as evidence that the property which is subject to the special assessment liens of the Assessment District is not subject to any prospective mechanics lien claim respecting the Acquisition Improvements.

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(b) The Developer shall be current in the payment of all due and payable property taxes and installments for the special assessments of the Assessment District on property owned by the Developer or under option to the Developer.
(c) The Developer shall certify that it is not in default with respect to any loan secured by any interest in the Project.
(d) The Developer shall have provided the Local Agency with Title Documents needed to provide the Local Agency with title to the site, right-of-way, or easement upon which the subject Acquisition Improvements are situated. All such Title Documents shall be in a fonn acceptable to the Local Agency (or applicable govenunental agency) and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the Local Agency and the Developer. Each title insurance policy required hereunder shall be in the amount equal to or greater than the Acquisition Price.

Section 2.05. SCIP Requisition. Upon a determination by the Local Agency Engineer to pay the Acquisition Price of the Acquisition Improvements pursuant to Section 2.04, the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the SCIP Trustee and the SCIP Trustee shall make payment directly to the Developer of such amount pursuant to the SCIP Trust Agreement. The Local Agency and the Developer acknowledge and agree that the SCIP Trustee shall make payment strictly in accordance with the SCIP Requisition and shall not be required to determine whether or not the Acquisition Improvements have been completed or what the Actual Costs may be with respect to such Acquisition Improvements. The SCIP Trustee shall be entitled to rely on the SCIP Requisition on its face without any further duty of investigation.

ARTICLE III

MISCELLANEOUS
Section 3.01. Indemnification and Hold Hannless. The Developer hereby assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority, and each of its respective officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or omissions of the Developer or its agents and employees in the performance of this Agreement, or arising out of any contract for the design, engineering and construction of the Acquisition Improvements or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or regarding the Developer, its proposed developments, its property ownership and its contractual arrangements contained in the official statement relating to the SCIP financing (provided that the

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Developer shall have been furnished a copy of such official statement and shall not have objected thereto); and provided, further, that nothing in this Section 3.01 shal1 limit in any manner the Local Agency's rights against any of the Developer's architects, engineers, contractors or other consultants. Except as set forth in this Section 3.01 , no provision of this Agreement shall in any way limit the extent of the responsibility of the Developer for payment of damages resulting from the operations of the Developer, its agents and employees or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority its officers, employees, agents or any consultants or contractors.

Section 3.02. Audit. The Local Agency shall have the right, during normal business hours and upon the giving of ten days' written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.

Section 3.03. Cooperation. The Local Agency and the Developer agree to cooperate with respect to the completion of the SCIP financing for the Acquisition Improvements. The Local Agency and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.

Section 3.04. General Standard of Reasonableness. Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that such consent, approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

Section 3.05. Third Party Beneficiaries. The Authority and its officers, employees, agents or any consultants or contractors are expressly deemed third party beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly agreed that, except for the Authority with respect to the provisions of Section 3.01 , there are no third party beneficiaries of this Agreement, including without limitation any owners of bonds, any of the Local Agency's or the Developer's contractors for the Acquisition Improvements and any of the Local Agency's, the Authority's or the Developer's agents and employees.

Section 3.06. Conflict with Other Agreements. Nothing contained herein shall be construed as releasing the Developer or the Local Agency from any condition of development or requirement imposed by any other agreement between the Local Agency and the Developer, and, in the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by the Local Agency and the Developer.

Section 3.07. Notices. All invoices for payment, reports, other communication and notices relating to this Agreement shall be mailed to:

If to the Local Agency:

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Director of Public Works
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
If to the Developer:
[Developer]
[Address to Come]
Either party may change its address by giving notice in writing to the other party.

Section 3 .08. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

Section 3.09. Governing Law. This Agreement and any dispute ansmg hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

Section 3.10. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not Constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement.

Section 3 .11. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

Section 3 .12. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

Section 3.13. Successors and Assigns. This Agreement is binding upon the heirs, assigns and successors-in-interest of the parties hereto. The Developer may not assign its rights or obligations hereunder, except to successors-in-interest to the property within the District, without the prior written consent of the Local Agency.

Section 3.14. Remedies in General. It is acknowledged by the parties that the Local Agency would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained, withheld or applied by the Local Agency.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the Local Agency shall not be liable in damages to the Developer, or to any assignee or transferee of the Developer other than for the payments to the Developer specified in the preceding paragraph. Subject to the foregoing, the

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EXHIBIT B TO THE ACQUISITION AGREEMENT

FORM OF SCIP REQUISITION
To: Bond Logistix LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Daniel Chang
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the CITY OF MORGAN HILL hereby requests a withdrawal from the [DEVELOPER] ACQUISITION ACCOUNT, as follows:

Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Developer]
The undersigned hereby certifies as follows:

1. The Withdrawal is being made in accordance with a permitted use of such monies pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of reinvestment.

2. None of the items for which payment is requested have been reimbursed previously from other sources of funds.

3. If the Withdrawal Amount is greater than the funds held in the [Developer] Acquisition Account, the SCIP Program Administrator is authorized to amend the amount requested to be equal to the amount of such funds.

4. To the extent the Withdrawal is being made prior to the date bonds have been issued on behalf of SCIP, this withdrawal form serves as the declaration of official intent ofthe CITY OF MORGAN HILL, pursuant to Treasury Regulations 1.150-2, to reimburse with respect expenditures made from the Developer Acquisition Account listed above in the amount listed above.

CITY OF MORGAN HILL
By: ______________ _
Title: --------------

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EXHIBIT C TO THE RESOLUTION

CITY OF MORGAN HILL CONTACTS FOR SCIP PROGRAM
Primary Contact
Name:

Title:

Mailing Address:

Delivery Address (if different):

E-mail:

Telephone:

Fax:

Secondary Contact
Name:

Title:

Mailing Address:

Delivery Address (if different):

E-mail:

Telephone:

Fax:
[Add additional contacts as needed]

764
[Seal]

CERTIFICATION OF RESOLUTION
I, the undersigned, the duly appointed and qualified City Clerk of the City of Morgan Hill, do hereby certify that the foregoing Resolution No. _ ___ _ was duly adopted at a regular meeting of the City Council of the City of Morgan Hill duly and regularly held at the regular meeting place thereof on the _ _ _ day of , 2013, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present.

An agenda of said meeting was posted at least 72 hours before said meeting at a location freely accessible to members of
the public, and a brief description of said resolution appeared on said agenda.

I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes.

Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect.

Dated: 2013 - ---------"
City Clerk
City of Morgan Hill
By: ------------ ---

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RESOLUTION NO. ________

AMENDED AND RESTATED RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL AUTHORIZING THE CITY TO JOIN THE STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM

PROPERTY OWNERS, CONDUCT SPECIAL ASSESSMENT PROCEEDINGS AND LEVY

ASSESSMENTS AND SPECIAL TAXES AND TO FORM ASSESSMENT DISTRICTS AND

COMMUNITY FACILITIES DISTRICTS WITHIN THE TERRITORY OF THE CITY OF MORGAN HILL; EMBODYING A JOINT COMMUNITY FACILITIES AGREEMENT

SETTING FORTH THE TERMS AND CONDITIONS OF COMMUNITY FACILITIES DISTRICT FINANCINGS; APPROVING FORM OF ACQUISITION AGREEMENT FOR USE WHEN APPLICABLE; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is a joint exercise of powers authority, lawfully formed and operating within the State pursuant to an agreement (the “Joint Powers Agreement”) entered into as of June 1, 1988 under the authority of Title 1, Division 7, Chapter 5 (commencing with Section 6500) of the California Government Code (the “JPA Law”), the members of which include numerous cities, counties and local agencies in the State of California, including the City of Morgan Hill (the “City”); and
WHEREAS, the Joint Powers Agreement authorizes the Authority to undertake financing programs under any applicable provisions of State law to promote economic development, the stimulation of economic activity, and the increase of the tax base within the jurisdictional boundaries of its members (such members, the “Program Participants”); and WHEREAS, as one of the Programs under the Joint Powers Agreement, the Authority has established the Statewide Community Infrastructure Program (“SCIP”) to allow the financing of certain public capital improvements to be constructed by or on behalf of property owners for acquisition by the City or another public agency (the “Improvements”) and improvements eligible for funding from certain development impact fees (the “Fees”) levied in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development to pay for public capital improvements (collectively, the “Fee Act”) through the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and WHEREAS, the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 (beginning with Section 53311) of the Government Code of the State (the “Mello-Roos Act”) is an applicable provision of State law available to, among other things, finance public improvements necessary to meet increased demands placed upon local agencies as a result of development;

WHEREAS, the Authority also uses SCIP to allow the financing of Fees and Improvements through the levy of special taxes and the issuance of Local Obligations under the Mello-Roos Act upon the security of the special taxes; and
WHEREAS, the City desires to allow the owners of property being developed within its jurisdiction (“Participating Developers”) to participate in SCIP and to allow the Authority to conduct proceedings and to form community facilities districts (“CFDs”) and to issue Local Obligations under the Mello-Roos Act, as well as to conduct assessment proceedings to form assessment districts (“Assessment Districts”) under the 1913 Act and to issue Local Obligations under the 1915 Act, to finance Fees levied on such properties and Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such assessments or special taxes, as applicable; and
WHEREAS, from time to time when eligible property owners within the jurisdiction of the City elect to be Participating Developers, the Authority will conduct proceedings under the 1913 Act and the Mello-Roos Act and issue Local Obligations under the 1915 Act and the Mello-Roos Act to finance Fees payable by such property owners and Improvements and, at the conclusion of such proceedings, will levy assessments or special taxes, as applicable on such property within the territory of the City;
WHEREAS, both the Authority and the City are “local agencies” under the Mello-Roos Act;
WHEREAS, the Mello-Roos Act permits two or more local agencies to enter into a joint community facilities agreement to exercise any power authorized by the Mello-Roos Act; WHEREAS, the City desires to enter into such an agreement with the Authority to authorize the Authority to form CFDs from time to time within the territorial limits of the City to finance Fees payable by such property owners and Improvements; WHEREAS, the City has previously presented Resolution No. 6672 of the City Council of the City of Morgan Hill, authorizing the City to join the Statewide Community Infrastructure Program; authorizing the California Statewide Communities Development Authority to accept applications from property owners, conduct special assessment proceedings and levy assessments within the territory of the City of Morgan Hill; approving a form of acquisition agreement; and authorizing related actions (the “Original Resolution”), and such Original Resolution was adopted on July 17, 2013;
WHEREAS, the City now wishes to amend and restate the Original Resolution; WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted by the Authority in connection with assessment proceedings (the “ROI”), a copy of which is attached hereto as Exhibit A, and the territory within which assessments may be levied for SCIP (provided that each Participating Developer consents to such assessment) shall be coterminous with the City’s official boundaries of record at the time of adoption of such ROI (the “Proposed Boundaries”), and reference is hereby made to such boundaries for the plat or map required to be included in this Amended and Restated Resolution pursuant to Section 10104 of the Streets and Highways Code; and

WHEREAS, there has also been presented to this meeting a proposed form of Acquisition Agreement (the “Acquisition Agreement”), a copy of which is attached hereto as Exhibit B, to be approved as to form for use with respect to any Improvements to be constructed and installed by a Participating Developer and for which the Participating Developer requests acquisition financing as part of its SCIP application; and
WHEREAS, the City will not be responsible for the conduct of any proceedings; the levy or collection of assessments or special taxes or any required remedial action in the case of delinquencies in such assessment or special tax payments; or the issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and WHEREAS, pursuant to SCIP, the Authority periodically issues Local Obligations on behalf of the local agency participants in SCIP to provide financing for the Fees and Improvements and then concurrently issues its revenue bonds pursuant to the Marks-Roos Local Bond Pooling Act of 1985, consisting of Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Marks-Roos Act”), the proceeds of which are used to purchase the Local Obligations; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the adoption of this Amended and Restated Resolution at a public hearing, which was duly conducted by this City Council concerning the significant public benefits of SCIP and the financing of the Improvements and the public capital improvements to be paid for with the proceeds of the Fees;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morgan Hill as follows:

Section 1. This Amended and Restated Resolution shall constitute full “local approval,” under Section 9 of the Joint Powers Agreement, and under the Authority’s Local Goals and Policies (defined below), for the Authority to undertake and conduct proceedings in accordance herewith and under the Mello Roos Act to form CFDs with boundaries that shall be coterminous with the City’s official boundaries of record at the time of such proceedings or any portion thereof (the “Proposed Boundaries”), and to authorize a special tax and to issue bonds with respect thereto; provided that the Participating Developers, who shall be the legal owners of such property at the time of formation of the CFD, execute a written consent to the levy of special tax in connection with SCIP by the Authority and execute a ballot in favor of the formation of such CFD and the Mello-Roos Act.

Section 2. The City hereby consents to the conduct of special assessment proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local Obligations under the 1915 Act on any property within the Proposed Boundaries; provided, that:
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property at the time of the formation of the Assessment District, execute a written consent to the levy of assessments in connection with SCIP by the Authority and execute an assessment ballot in favor

of such assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution.

Section 3. The Joint Powers Agreement, together with the terms and provisions of this Amended and Restated Resolution, shall together constitute a separate joint community facilities agreement between the City and the Authority under the Mello-Roos Act for each CFD formed.

As, without this Amended and Restated Resolution, the Authority has no power to finance City Fees and/or City Improvements (as such terms are defined herein) in proceedings under the MelloRoos Act to form the CFD, adoption by the Commission of the Authority of each Resolution of Intention to form a CFD under the Mello-Roos Act to finance City Fees and City Improvements shall constitute acceptance of the terms hereof by the Authority with respect to such CFD.

Section 4. This Amended and Restated Resolution and the agreement it embodies are determined to be beneficial to the residents/customers of the City and are in the best interests of the residents of the City, and of the future residents of the area within the proposed CFDs and Assessment Districts. The City hereby finds and declares that the issuance of revenue bonds by the Authority to purchase Local Obligations in connection with SCIP will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs, and the more efficient delivery of local agency services to residential and commercial development within the City.

Section 5. The Authority has adopted Local Goals and Policies as required by Section 53312.7 of the Mello-Roos Act. The City approves the use of those Local Goals and Policies in connection with the formation of CFDs. The City hereby agrees that the Authority may act in lieu of the City under those Local Goals and Policies in forming and administering the CFDs.

Section 6. The Authority has prepared and will update from time to time the “SCIP Manual of Procedures” (the “Manual”), and the City will handle Fee revenues and funds for Improvements for properties participating in SCIP in accordance with the procedures set forth in the Manual.

Section 7. Pursuant to the Mello-Roos Act and this Amended and Restated Resolution, the Authority may conduct proceedings under the Mello-Roos Act to form the CFDs and to have such CFDs authorize the financing of any or all of the facilities and Fees set forth on Exhibit C, attached hereto. All of the facilities, whether to be financed directly or through Fees, shall be facilities that have an expected useful life of five years or longer and are facilities that the City or other local public agencies, as the case may be, are authorized by law to construct, own or operate, or to which they may contribute revenue. Exhibit C may be modified from time to time by written agreement between an authorized representative of the Authority and of the City. The facilities are referred to herein as the “Improvements,” and the Improvements to be owned by the City are referred to as the “City Improvements.” The Fees paid or to be paid to the City are referred to as the “City Fees.”
Section 8. For Fees paid or to be paid to another agency by any particular CFD (an “Other Local Agency”), the Authority will obtain the written consent of that Other Local Agency before issuing Local Obligations to fund such Fees, as required by the Mello-Roos Act.

For the Improvements to be owned by an Other Local Agency, the Authority will separately identify them in its proceedings, and will enter into a joint community facilities agreement with

such Other Local Agency prior to issuing Local Obligations to finance such Improvements, as required by the Mello-Roos Act. Each joint community facilities agreement with each Other Local Agency will contain a provision that the Other Local Agency will provide indemnification to the City to the same extent that the City provides indemnification to the Other Local Agency under the terms of this Amended and Restated Resolution.

Section 9. At the time of formation of each CFD, the City will certify to the Commission of the Authority that all of the City Improvements including the improvements to be constructed or acquired with the proceeds of City Fees to be funded by such CFD are necessary to meet increased demands placed upon the City as a result of development occurring or expected to occur within the proposed CFDs in the form attached hereto as Exhibit D. Any appropriate officer or staff of the City is authorized to execute and deliver such certificate in substantially the form attached hereto as Exhibit D, with such changes as such signatory shall approve. Joint community facilities agreements with other local agencies will each contain a requirement that each Other Local Agency will make identical certification in connection with respect to the Improvements to be owned by, and Fees paid or to be paid to, such Other Local Agency equivalent to that made by the City in this paragraph.

Section 10. The Authority will apply the special tax collections initially as required by the documents under which any Local Obligations are issued; and thereafter, to the extent not provided in the Local Obligations documents, may pay its own reasonable administrative costs incurred in the administration of the CFDs. The Authority will remit any special tax revenues from any particular CFD remaining after the final retirement of all related Local Obligations to the City and to the other local agencies in the proportions specified in the Authority’s proceedings.

The City will apply any such special tax revenues it receives for authorized City Improvements or City Fees and its own administrative costs only as permitted by the Mello-Roos Act. The joint community facilities agreements with each Other Local Agency must require the Other Local Agency to apply the special tax revenues they receive for their authorized Improvements and Fees under the CFDs and for their own related administrative costs only as permitted by the Mello-Roos Act.

Section 11. The Authority will administer the CFDs, including employing and paying all consultants, annually levying the special tax and all aspects of paying and administering the Local Obligations, and complying with all State and Federal requirements appertaining to the proceedings, including the requirements of the United States Internal Revenue Code. The City will cooperate fully with the Authority in respect of the requirements of the Internal Revenue Code and to the extent information is required of the City to enable the Authority to perform its disclosure and continuing disclosure obligations with respect to the Local Obligations and any revenue bonds, although the City will not participate in nor be considered to be a participant in the proceedings respecting the CFDs (other than as a party to the agreement embodied by this Amended and Restated Resolution) nor will the City be or be considered to be an issuer of the Local Obligations nor any revenue bonds. The Authority is required to obtain a provision equivalent to this paragraph in all joint community facilities agreements with each Other Local Agency.

Section 12. In the event the Authority completes issuance and sale of Local Obligations, and Local Obligation proceeds become available to finance the Improvements, the Authority shall

establish and maintain a special fund for each development project (the “Acquisition and Construction Fund”). The portion of Local Obligation proceeds which is intended to be utilized to finance the Improvements and Fees shall be deposited in the Acquisition and Construction Fund.

The Acquisition and Construction Fund will be available both for City Improvements and City Fees and for the Improvements and Fees pertaining to each Other Local Agency. Subaccounts shall be created as necessary.

Section 13. As respects the Authority and each Other Local Agency, the City agrees to fully administer, and to take full governmental responsibility for, the construction or acquisition of the City Improvements and for the administration and expenditure of the City Fees including but not limited to environmental review, approval of plans and specifications, bid requirements, performance and payment bond requirements, insurance requirements, contract and construction administration, staking, inspection, acquisition of necessary property interests in real or personal property, the holding back and administration of retention payments, punch list administration, and the Authority and each Other Local Agency shall have no responsibility in that regard. The City reserves the right, as respects each Participating Developer, to require the Participating Developer to contract with the City to assume any portion or all of this responsibility. The Authority is required to obtain provisions equivalent to this paragraph in the joint community facilities agreement with each Other Local Agency.

Section 14. The City agrees to indemnify and to hold the Authority, its other members, and its other members’ officers, agents and employees, and each Other Local Agency and their officers, agents and employees (collectively, the “Indemnified Parties”) harmless from any and all claims, suits and damages (including costs and reasonable attorneys’ fees) arising out of the design, engineering, construction and installation of the City Improvements and the improvements to be financed or acquired with the City Fees. The City reserves the right, as respects each Participating Developer, to require the Participating Developer to assume by contract with the City any portion or all of this responsibility. The Authority is required to obtain a provision equivalent to this paragraph in all joint community facilities agreements with each Other Local Agency naming the City and its officers, agents and employees as Indemnified Parties with respect to each Other Local Agency’s respective Improvements and the improvements to be constructed or acquired with each Other Local Agency’s Fees.

Section 15. As respects the Authority and each Other Local Agency, the City agrees – once the City Improvements are constructed according to the approved plans and specifications, and the City and the Participating Developer have put in place their agreed arrangements for the funding of maintenance of the City Improvements – to accept ownership of the City Improvements, to take maintenance responsibility for the City Improvements, and to indemnify and hold harmless the Indemnified Parties to the extent provided in the preceding paragraph from any and all claims, etc., arising out of the use and maintenance of the City Improvements. The City reserves the right, as respects the Participating Developer, to require the Participating Developer by contract with the City to assume any portion or all of this responsibility. The Authority is required to obtain a provision equivalent to this paragraph in all joint community facilities agreements with each Other Local Agency naming the City and its officers, agents and employees as Indemnified Parties.

Section 16. The City acknowledges the requirement of the Mello-Roos Act that if the City Improvements are not completed prior to the adoption by the Commission of the Authority

of the Resolution of Formation of the CFD for each respective development project, the City Improvements must be constructed as if they had been constructed under the direction and supervision, or under the authority of, the City. The City acknowledges that this means all City Improvements must be constructed under contracts that require the payment of prevailing wages as required by Section 1720 and following of the Labor Code of the State of California. The Authority makes no representation that this requirement is the only applicable legal requirement in this regard. The City reserves the right, as respects the Participating Developer, to assign appropriate responsibility for compliance with this paragraph to the Participating Developer.

Section 17. The form of the Acquisition Agreement attached hereto as Exhibit B is hereby approved, and the City Manager or such officer’s designee (the “Authorized Officer”) is authorized to execute, and deliver to the Participating Developer, the Acquisition Agreement on behalf of the City in substantially that form, with such changes as shall be approved by the Authorized Officer after consultation with the City Attorney and the Authority’s bond counsel, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 18. After completion of the City Improvements and appropriate arrangements for the maintenance of the City Improvements, or any discrete portion thereof as provided in Section 53313.51 of the Mello-Roos Act and in the Acquisition Agreement, to the satisfaction of the City, and in conjunction with the City’s acceptance thereof, acquisition of the City Improvements shall be undertaken as provided in the Acquisition Agreement.

Section 19. The City hereby consents to the formation of the CFDs in accordance with this Amended and Restated Resolution and consents to the assumption of jurisdiction by the Authority for the proceedings respecting the CFDs with the understanding that the Authority will hereafter take each and every step required for or suitable for consummation of the proceedings, the levy, collection and enforcement of the special tax, and the issuance, sale, delivery and administration of the Local Obligations, all at no cost to the City and without binding or obligating the City’s general fund or taxing authority.

Section 20. The terms of the Agreement embodied by this Amended and Restated Resolution may be amended by a writing duly authorized, executed and delivered by the City and the Authority, except that no amendment may be made after the issuance of the Local Obligations by the Authority that would be detrimental to the interests of the bondholders without complying with all of the bondholder consent provisions for the amendment of the bond resolutions, bond indentures or like instruments governing the issuance, delivery and administration of all outstanding Local Obligations.

Section 21. Except to the extent of the indemnifications extended to each Other Local Agency in the Agreement embodied by this Amended and Restated Resolution, and the City’s agreement to take responsibility for and ownership of the City Improvements, no person or entity, including the Participating Developer, shall be deemed to be a third party beneficiary of this Amended and Restated Resolution, and nothing in this Amended and Restated Resolution (either express or implied) is intended to confer upon any person or entity other than the Authority and the City (and their respective successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Amended and Restated Resolution.

Section 22. The City shall be identified as a third-party beneficiary of all joint community facilities agreements between the Authority and each Other Local Agency to the extent of the indemnification provisions and the provisions whereby each Other Local Agency agrees to take responsibility for and ownership of their Improvements.

Section 23. The appropriate officials and staff of the City are hereby authorized and directed to make SCIP applications available to all property owners who are subject to Fees for new development within the City and/or who are conditioned to install Improvements and to inform such owners of their option to participate in SCIP; provided, that the Authority shall be responsible for providing such applications and related materials at its own expense. The staff persons listed on the attached Exhibit E, together with any other staff persons chosen by the City Manager from time to time, are hereby designated as the contact persons for the Authority in connection with SCIP.

Section 24. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such documents as may be required by bond counsel in connection with the participation in SCIP of any districts, authorities or other third-party entities entitled to own Improvements and/or to levy and collect fees on new development to pay for public capital improvements within the jurisdiction of the City, as are reasonably required by the Authority in accordance with the Manual to implement SCIP and to evidence compliance with the requirements of federal and state law in connection with the issuance by the Authority of the Local Obligations and any other bonds for SCIP. To that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed on Exhibit E, or other staff person acting in the same capacity for the City with respect to SCIP, are hereby authorized and designated to declare the official intent of the City with respect to the public capital improvements to be paid or reimbursed through participation in SCIP.

Section 25. This Amended and Restated Resolution shall take effect immediately upon its adoption. The City Clerk of the City of Morgan Hill is hereby authorized and directed to transmit a certified copy of this Amended and Restated Resolution to the Secretary of the Authority. This Amended and Restated Resolution shall remain in force with respect to any Assessment District and CFD formed until all Local Obligations have been retired and the authority to levy the special tax conferred by any CFD proceedings and to levy the assessment conferred by any assessment proceedings has ended or is otherwise terminated. The Original Resolution shall remain in force with respect to any SCIP application approved by the City and any Assessment District formed pursuant to its authority until all Local Obligations have been retired and the authority to levy the assessment conferred by any assessment proceedings carried out pursuant to the Original Resolution has ended or is otherwise terminated.

* * *
PASSED AND ADOPTED this ____ day of ____________, 2023 by the following vote, to wit:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

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EXHIBIT A TO THE RESOLUTION

FORM OF RESOLUTION OF INTENTION

TO BE ADOPTED BY CSCDA
RESOLUTION NO. __SCIPRESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE CAPITAL

IMPROVEMENTS AND/OR THE PAYMENT OF DEVELOPMENT IMPACT

FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM ASSESSMENT
DISTRICT NO. ___ ([NAME OF PROJECT]) [CITY OF _________], [COUNTY OF _________], APPROVING A PROPOSED BOUNDARY MAP, MAKING

CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS

CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED

ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the “1913 Act”), being Division 12 (commencing with Sections 10000 and following) of the California Streets and Highways Code (the “Code”), the Commission (the “Commission”) of the California Statewide Communities Development Authority (the “Authority”) intends to finance, through its Statewide Community Infrastructure Program, the payment of certain development impact fees for public improvements (the “Improvement Fees”) and/or to finance certain public capital improvements to be constructed by or on behalf of the property owner(s) and to be acquired by the [City/County] of [__________] or another local agency (the “Improvements”) as described in Exhibit A attached hereto and by this reference incorporated herein, all of which are of benefit to the property within the proposed Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________] (the “Assessment District”);
WHEREAS, the Commission finds that the land specially benefited by the Improvements and/or the Improvement Fees is shown within the boundaries of the map entitled “Proposed Boundaries of California Statewide Communities Development Authority Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________], State of California,” a copy of which map is on file with the Secretary and presented to this Commission meeting, and determines that the land within the exterior boundaries shown on the map shall be designated “Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________], State of California”; WHEREAS, the [City/County] of [__________] is a member of the Authority and has approved the adoption on its behalf of this Resolution of Intention and has consented to the levy of the assessments in the Assessment District;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities Development Authority hereby finds, determines and resolves as follows:

Section 1. The above recitals are true and correct.

Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the “1931 Act”), being Division 4 (commencing with Section 2800) of the Code, the

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Commission hereby declares its intent to comply with the requirements of the 1931 Act by complying with Part 7.5 thereof.

The Commission has designated a registered, professional engineer as Engineer of Work for this project, and hereby directs said firm to prepare the report containing the matters required by Sections 2961(b) and 10204 of the Code, as supplemented by Section 4 of Article XIIID of the California Constitution.

The proposed boundary map of the Assessment District is hereby approved and adopted. Pursuant to Section 3111 of the Code, the Secretary of the Authority is directed to file a copy of the map in the office of the County Recorder of the [County of __________] within fifteen (15) days of the adoption of this resolution.

The Commission determines that the cost of financing the Improvements and/or the payment of the Improvement Fees shall be specially assessed against the lots, pieces or parcels of land within the Assessment District benefiting from the financing of the Improvements and/or the payment of the Improvement Fees. The Commission intends to levy a special assessment upon such lots, pieces or parcels in accordance with the special benefit to be received by each such lot, piece or parcel of land, respectively, from the financing of the Improvements and/or the payment of the Improvement Fees.

The Commission intends, pursuant to subparagraph (f) of Section 10204 of the Code, to provide for an annual assessment upon each of the parcels of land in the proposed Assessment District to pay various costs and expenses incurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from the administration and collection of assessment installments or from the administration or registration of the improvement bonds and the various funds and accounts pertaining thereto.

Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10 of the Code), and the last installment of the bonds shall mature not to exceed twenty-nine (29) years from the second day of September next succeeding twelve (12) months from their date.

The procedure for the collection of assessments and advance retirement of bonds under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 thereof.

Neither the Authority nor any member agency thereof will obligate itself to advance available funds from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion, so advancing funds.

The amount of any surplus remaining in the improvement fund after acquisition of the Improvements and/or payment of Improvement Fees and all other claims shall be distributed in accordance with the provisions of Section 10427.1 of the Code.

To the extent any Improvement Fees are paid to the Authority in cash with respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer that made the payment.

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PASSED AND ADOPTED by the California Statewide Communities Development Authority this ___ day of ______, 20__.

I, the undersigned, an Authorized Signatory of the California Statewide Communities Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of the Authority at a duly called meeting of the Commission of the Authority held in accordance with law on _____ __ , 20__.

By
Authorized Signatory
California Statewide Communities
Development Authority

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EXHIBIT A TO THE RESOLUTION OF INTENTION

DESCRIPTION OF WORK
The payment of development impact fees levied within the Assessment District and/or public capital improvements to be acquired and owned by the [City/County] of [__________] or another local agency upon or for the benefit of parcels within the Assessment District, for the project known as [Project Name], which are authorized to be financed pursuant to the Municipal Improvement Act of 1913 and as to which the owners of the applicable parcels within the Assessment District have applied for participation in SCIP, as more particularly described below.

PAYMENT OF IMPACT FEES
CAPITAL IMPROVEMENTS*
*Capital improvements includes funding for incidental costs associated with the capital improvements, including but not limited to, contingency, design, engineering, and construction management [End of Form of Resolution of Intention]

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EXHIBIT B TO THE RESOLUTION

FORM OF ACQUISITION AGREEMENT
_____________________

CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM

ACQUISITION AGREEMENT

BY AND BETWEEN

CITY OF MORGAN HILL
AND
[DEVELOPER]
Dated as of _______, 20__

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ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the “Agreement”) are the [CITY/COUNTY] OF [__________], (the “Local Agency”), and [DEVELOPER], a [indicate type of legal entity] (the “Developer”).

B. The effective date of this Agreement is ________, 20__.

C. The Developer has applied for the financing of, among other things, certain public capital improvements to be owned by the Local Agency (collectively, the “Acquisition Improvements”) through the California Statewide Communities Development Authority (the “Authority”) and its Statewide Community Infrastructure Program (“SCIP”). [For CFDS:][The Acquisition Improvements are to be owned and operated by the Local Agency, and the financing is to be accomplished through a community facilities district which will be administered by the Authority under and pursuant to the Mello-Roos Community Facilities Act of 1982 – California Government Code Sections 53311 and following (the “Act”). On [__________], 20[_], the Local Agency entered into a Joint Community Facilities Agreement authorizing the Authority to form a community facilities district (the “District”) within the territorial limits of the Local Agency to finance, among other things, the Acquisition Improvements. On [__________], 20[_], the Authority formed the District and, on the same date, a landowner election was conducted in which all of the votes were cast unanimously in favor of conferring the District authority on the Authority Commission.] [For Assessment Districts:][The Acquisition Improvements are to be owned and operated by the Local Agency, and the financing is to be accomplished through an assessment district (the “District”) which will be administered by the Authority under and pursuant to Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act” and, together with the “1913 Act” the “Act”).] D. The administration, payment and reimbursement of the capital facilities fees is agreed to be governed by the provisions of the SCIP Manual of Procedures as it may be amended from time to time. The administration, payment and reimbursement of the Acquisition Improvements shall be as provided herein.

E. Under SCIP, the Authority intends to levy [assessments] [special taxes] and issue bonds, in one or more series, to fund, among other things, all or a portion of the costs of the Acquisition Improvements. The portion of the proceeds of the [special taxes and] bonds allocable to the cost of the Acquisition Improvements, together with interest earned thereon, is referred to herein as the “Available Amount”.

F. The Authority will provide financing for the acquisition by the Local Agency of the Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A is a description of the Acquisition Improvements, which includes authorized discrete and usable portions, if any, of the public capital improvements, [pursuant to Section 53313.51 of the Act,] to

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be acquired from the Developer.

G. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the terms and conditions of this Agreement, the Local Agency will acquire such completed Acquisition Improvements with the Available Amount.

H. Any and all monetary obligations of the Local Agency arising out of this Agreement are the special and limited obligations of the Local Agency payable only from the Available Amount, and no other funds whatsoever of the Local Agency shall be obligated therefor.

I. Attached to this Agreement are Exhibit A (Acquisition Improvements and the Eligible Portions thereof) and Exhibit B (Form of Requisition), which are incorporated into this Agreement for all purposes.

In consideration of Recitals A through I, inclusive, and the mutual covenants, undertakings and obligations set forth below, the Local Agency and the Developer agree as stated below.

Agreement
DEFINITIONS; DISTRICT FORMATION AND

FINANCING PLAN
Definitions. As used herein, the following capitalized terms shall have the meanings ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances, assessments, whether any such item is recorded or unrecorded, and taxes, except those items which are reasonably determined by the Local Agency Engineer not to interfere with the intended use and therefore are not required to be cleared from the title. “Acquisition and Construction Fund” means the “[Name of Local Agency] Acquisition and Construction Fund” established by the Authority pursuant to Section 1.03 hereof for the purpose of paying the Acquisition Price of the Acquisition Improvements and which fund may be held as a subaccount within a fund established under the Authority Trust Agreement and may be commingled with acquisition and construction fund monies available for other public capital improvements.
“Acquisition Improvement” shall have the meaning assigned to such term in the recitals and are further described in Exhibit A.
“Acquisition Price” means the total amount eligible to be paid to the Developer upon acquisition of an Acquisition Improvement as provided in Section 2.03 not to exceed the Actual Cost of the Acquisition Improvement.
“Act” has the meaning ascribed thereto in Recital C.

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“Actual Cost” means the total cost of an Acquisition Improvement, as documented by the Developer to the satisfaction of the Local Agency and as certified by the Local Agency Engineer in an Actual Cost Certificate including, without limitation, (a) the Developer’s cost of constructing such Acquisition Improvement including grading, labor, material and equipment costs, (b) the Developer’s cost of designing and engineering the Acquisition Improvement, preparing the plans and specifications and bid documents for such Acquisition Improvement, and the costs of inspection, materials testing and construction staking for such Acquisition Improvement, (c) the Developer’s cost of any performance, payment and maintenance bonds and insurance, including title insurance, required hereby for such Acquisition Improvement, (d) the Developer’s cost of any real property or interest therein that is either necessary for the construction of such Acquisition Improvement (e.g., temporary construction easements, haul roads, etc.), or is required to be conveyed with such Acquisition Improvement in order to convey Acceptable Title thereto to the Local Agency or its designee, (e) the Developer’s cost of environmental evaluation or mitigation required for such Acquisition Improvement, (f) the amount of any fees actually paid by the Developer to governmental agencies in order to obtain permits, licenses or other necessary governmental approvals and reviews for such Acquisition Improvement, (g) the Developer’s cost for construction and project management, administration and supervision services for such Acquisition Improvement, (h) the Developer’s cost for professional services related to such Acquisition Improvement, including engineering, accounting, legal, financial, appraisal and similar professional services, and (i) the costs of construction financing incurred by the Developer with respect to such Acquisition Improvement.
“Actual Cost Certificate” means a certificate prepared by the Developer detailing the Actual Cost of an Acquisition Improvement, or an Eligible Portion thereof, to be acquired hereunder, as may be revised by the Local Agency Engineer pursuant to Section 2.03. “Agreement” means this Acquisition Agreement, dated as of [_______________], 20[_]. “Authority” means the California Statewide Communities Development Authority. “Authority Trust Agreement” means a Trust Agreement entered into by the Authority and an Authority Trustee in connection with the issuance of bonds. “Authority Trustee” means the financial institution identified as trustee in an Authority Trust Agreement.
“Available Amount” shall have the meaning assigned to the term in Recital E. “Bonds” means bonds or other indebtedness issued by the Authority as tax-exempt or taxable bonds or other indebtedness, in one or more series, that is to be repaid by the District. “Code” means the Streets and Highways Code or the Government Code of the State of California, as applicable.
“Developer” means [Developer], its successors and assigns. “Disbursement Request Form” means a requisition for payment of funds from the Acquisition and Construction Fund for an Acquisition Improvement, or an Eligible Portion thereof

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in substantially the form contained in Exhibit B hereto. “District” shall have the meaning assigned to the term in Recital C. “Eligible Portion” shall have the meaning ascribed to it in Section 2.03 below. “Installment Payment” means an amount equal to ninety percent (90%) of the Actual Cost of an Eligible Portion.
“Local Agency” means the City of Morgan Hill.
“Local Agency Engineer” means the Engineer of the Local Agency or his/her designee who will be responsible for administering the acquisition of the Acquisition Improvements hereunder.
“Project” means the Developer’s development of the property in the District, including the design and construction of the Acquisition Improvements and the other public and private improvements to be constructed by the Developer within the District. [“Special Taxes” means annual special taxes, and prepayments thereof, authorized by the District to be levied by the Commission of the Authority.] “Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests therein (including easements), or an irrevocable offer of dedication of such real property with interests therein necessary to the operation, maintenance, rehabilitation and improvement by the Local Agency of the Acquisition Improvement (including, if necessary, easements for ingress and egress) and a bill of sale or similar instrument evidencing transfer of title to the Acquisition Improvement (other than said real property interests) to the Local Agency, where applicable.

Participation in SCIP. [For CFDs:][The Local Agency has entered into a Joint Community Facilities Agreement with the Authority for the purpose of accepting applications from time to time of developers within the Local Agency’s jurisdictional boundaries.] Developer has applied for financing through SCIP of the Acquisition Improvements, and such application has been approved by the Local Agency. Developer and Local Agency agree that until and unless such financing is completed by the Authority and the Available Amount is deposited in the Acquisition Account (as defined in Section 1.03 below), neither the Developer nor the Local Agency shall have any obligations under this agreement. Developer agrees to cooperate with the Local Agency and the Authority in the completion of SCIP financing for the Acquisition Improvements.

Deposit and Use of Available Amount.

Upon completion of the SCIP financing, the Available Amount will be deposited by the Authority in the Acquisition Account.

The Authority will cause the SCIP Trustee to establish and maintain an account (the “Acquisition Account”) for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the Acquisition and Construction Fund shall remain in the Acquisition and

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Construction Fund for use as provided herein and pursuant to the Authority Trust Agreement.

Money in the Acquisition and Construction Fund shall be available to respond to delivery of a Disbursement Request Form and to be paid to the Developer or its designee to pay the Acquisition Price of the Acquisition Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition Improvements and the payment of all costs thereof, any remaining funds in the Acquisition and Construction Fund (less any amount determined by the Local Agency as necessary to reserve for claims against the account) (i) shall be applied to pay the costs of any additional Acquisition Improvements eligible for acquisition with respect to the Project as approved by the Authority and, to the extent not so used, (ii) shall be applied by the Authority [to call Bonds or to reduce Special Taxes as the Authority shall determine][as provided in Section 10427.1 of the Code to pay a portion of the assessments levied on the Project property in the District].

No Local Agency Liability; Local Agency Discretion; No Effect on Other Agreements. In no event shall any actual or alleged act by the Local Agency or any actual or alleged omission or failure to act by the Local Agency with respect to SCIP subject the Local Agency to monetary liability therefor. Further, nothing in this Agreement shall be construed as affecting the Developer’s or the Local Agency’s duty to perform their respective obligations under any other agreements, public improvement standards, land use regulations or subdivision requirements related to the Project, which obligations are and shall remain independent of the Developer’s and the Local Agency’s rights and obligations under this Agreement.

DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS Letting and Administering Design Contracts. The parties presently anticipate that the Developer has awarded and administered or will award and administer engineering design contracts for the Acquisition Improvements to be acquired from Developer. All eligible expenditures of the Developer for design engineering and related costs in connection with the Acquisition Improvements (whether as an advance to the Local Agency or directly to the design consultant) shall be reimbursed at the time of acquisition of such Acquisition Improvements. The Developer shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and shall not be entitled to any payment for design costs independent of or prior to the acquisition of Acquisition Improvements.

Letting and Administration of Construction Contracts; Indemnification. State law requires that all Acquisition Improvements not completed prior to the formation of the District shall be constructed as if they were constructed under the direction and supervision, or under the authority, of the Local Agency. In order to assure compliance with those provisions, except for any contracts entered into prior to the date hereof, Developer agrees to comply with the requirements set forth in Exhibit C hereto with respect to the bidding and contracting for the construction of the Acquisition Improvements. The Developer agrees that all the contracts shall call for payment of prevailing wages as required by the Labor Code of the State of California. The Developer’s indemnification obligation set forth in Section 3.01 of this Agreement shall also apply to any alleged failure to comply with the requirements of this Section, and/or applicable State laws regarding public contracting and prevailing wages.

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Sale of Acquisition Improvements. The Developer agrees to sell to the Local Agency each Acquisition Improvement to be constructed by Developer (including any rights-of-way or other easements necessary for the Acquisition Improvements, to the extent not already publicly owned), when the Acquisition Improvement is has been constructed and is complete to the satisfaction of the Local Agency for an amount not to exceed the lesser of (i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvement. Exhibit A, attached hereto and incorporated herein, contains a list of the Acquisition Improvements. Portions of an Acquisition Improvement eligible for Installment Payments prior to completion of the entire Acquisition Improvement are described as eligible, discrete and usable portions in Exhibit A (each, an “Eligible Portion”). At the time of completion of each Acquisition Improvement, or Eligible Portion thereof, the Developer shall deliver to the Local Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate, and by executed Title Documents for the transfer of the Acquisition Improvement where necessary. In the event that the Local Agency Engineer finds that the supporting paperwork submitted by the Developer fails to demonstrate the required relationship between the subject Actual Cost and eligible work, the Local Agency Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Developer. If the further documentation is still not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any disallowed items and the determination shall be final and conclusive.

Certain soft costs for the Acquisition Improvements, such as civil engineering, may have been incurred pursuant to single contracts that include work relating also to the private portions of the Project. In those instances, the total costs under such contracts will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer. Where a specific contract has been awarded for design or engineering work relating solely to an Acquisition Improvement, one hundred percent (100%) of the costs under the contract will be allocated to that Acquisition Improvement. Amounts allocated to an Acquisition Improvement will be further allocated among the Eligible Portions of that Acquisition Improvement, if any, in the same proportion as the amount to be reimbursed for hard costs for each Eligible Portion bears to the amount to be reimbursed for hard costs for the entire Acquisition Improvement. Costs will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer. The costs of certain environmental mitigation required to mitigate impacts of the public and private portions of the Project will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer.

In the event that the Actual Cost is in excess of the Available Amount, the Local Agency shall withdraw the Available Amount from the Acquisition Account and transfer said amount to the Developer. In the event that the Actual Cost is less than the Available Amount, the Local Agency shall withdraw an amount from the Acquisition Account equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then remaining in the Acquisition Account shall be applied as provided in Section 1.03.

In no event shall the Local Agency be required to pay the Developer more than the amount on deposit in the Acquisition Account at the time such payment is requested.

Conditions Precedent to Payment of Acquisition Price. Payment to the Developer or its designee of the Acquisition Price for an Acquisition Improvement from the Acquisition and Construction Fund shall in every case be conditioned first upon the determination of the Local Agency Engineer,

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pursuant to Section 2.03, that the Acquisition Improvement satisfies all Local Agency regulations and ordinances and is otherwise complete and ready for acceptance by the Local Agency, and shall be further conditioned upon satisfaction of the following additional conditions precedent:

The Developer shall have provided the Local Agency with lien releases or other similar documentation satisfactory to the Local Agency Engineer as evidence that none of the property (including any rights-of-way or other easements necessary for the operation and maintenance of the Acquisition Improvement, to the extent not already publicly owned) comprising the Acquisition Improvement, and the property which is subject to the [assessments/Special Taxes] of the District, is not subject to any prospective mechanics lien claim respecting the Acquisition Improvements.

All due and payable property taxes, and installments of [assessments/Special Taxes] shall be current on property owned by the Developer or under option to the Developer that is subject to the lien of the District.

The Developer shall certify that it is not in default with respect to any loan secured by any interest in the Project.

The Developer shall have provided the Local Agency with Title Documents needed to provide the Local Agency with title to the site, right-of-way, or easement upon which the subject Acquisition Improvements are situated. All such Title Documents shall be in a form acceptable to the Local Agency (or applicable governmental agency) and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the Local Agency and the Developer. Each title insurance policy required hereunder shall be in the amount equal to or greater than the Acquisition Price.

SCIP Requisition. Upon a determination by the Local Agency Engineer to pay the Acquisition Price of the Acquisition Improvements pursuant to Section 2.04, the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the Program Administrator. The Program Administrator will review the SCIP Requisition and forward it with instructions to the SCIP Trustee and the SCIP Trustee shall make payment directly to the Developer of such amount pursuant to the SCIP Trust Agreement. The Local Agency and the Developer acknowledge and agree that the SCIP Trustee shall make payment strictly in accordance with the SCIP Requisition and shall not be required to determine whether or not the Acquisition Improvements have been completed or what the Actual Costs may be with respect to such Acquisition Improvements. The SCIP Trustee shall be entitled to rely on the SCIP Requisition on its face without any further duty of investigation.

MISCELLANEOUS
Indemnification and Hold Harmless. The Developer hereby assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority, and each of its respective

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officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or omissions of the Developer or its agents and employees in the performance of this Agreement, or arising out of any contract for the design, engineering and construction of the Acquisition Improvements or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or regarding the Developer, its proposed developments, its property ownership and its contractual arrangements contained in the official statement relating to the SCIP financing (provided that the Developer shall have been furnished a copy of such official statement and shall not have objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any manner the Local Agency’s rights against any of the Developer’s architects, engineers, contractors or other consultants. Except as set forth in this Section 3.01, no provision of this Agreement shall in any way limit the extent of the responsibility of the Developer for payment of damages resulting from the operations of the Developer, its agents and employees. Nothing in this Section 3.01 shall be understood or construed to mean that the Developer agrees to indemnify the Local Agency, the Authority or any of its respective officers, directors, employees or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority its officers, employees, agents or any consultants or contractors.

Audit. The Local Agency shall have the right, during normal business hours and upon the giving of ten days’ written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.

Cooperation. The Local Agency and the Developer agree to cooperate with respect to the completion of the SCIP financing for the Acquisition Improvements. The Local Agency and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.

General Standard of Reasonableness. Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that such consent, approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

Third Party Beneficiaries. The Authority and its officers, employees, agents or any consultants or contractors are expressly deemed third party beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly agreed that, except for the Authority with respect to the provisions of Section 3.01, there are no third party beneficiaries of this Agreement, including without limitation any owners of bonds, any of the Local Agency’s or the Developer’s contractors for the Acquisition Improvements and any of the Local Agency’s, the Authority's or the Developer’s agents and employees.

Conflict with Other Agreements. Nothing contained herein shall be construed as releasing the Developer or the Local Agency from any condition of development or requirement imposed by

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any other agreement between the Local Agency and the Developer, and, in the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by the Local Agency and the Developer.

Notices. All invoices for payment, reports, other communication and notices relating to this Agreement shall be mailed to:

If to the Local Agency:

City of Morgan Hill
[Address to come]
If to the Developer:
[Developer]
[Address to come]
Either party may change its address by giving notice in writing to the other party.

Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement.

Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

Successors and Assigns. This Agreement is binding upon the heirs, assigns and successors-ininterest of the parties hereto. The Developer may not assign its rights or obligations hereunder, except to successors-in-interest to the property within the District, without the prior written consent of the Local Agency.

Remedies in General. It is acknowledged by the parties that the Local Agency would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained, withheld or applied by the Local Agency.

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In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the Local Agency shall not be liable in damages to the Developer, or to any assignee or transferee of the Developer other than for the payments to the Developer specified in the preceding paragraph. Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute which arises out of, this Agreement.
[The remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.

CITY OF MORGAN HILL
By:
[City Manager]
ATTEST:

City Clerk of the City of Morgan Hill
By:
[DEVELOPER],
a [here indicate type of legal entity]
By:

Signature
Print Name

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4128-1440-0072.1
Exhibit A to the Acquisition Agreement

DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS [To be completed based on Final Engineer’s Report]
Funding includes amounts for incidental costs associated with the capital improvements, including, but not limited to, contingency, design, engineering, and construction management.

ACQUISITION IMPROVEMENTS TOTAL AMOUNT*
[_] ............................................................................................................. $[_] [_] ............................................................................................................. $[_] *
Estimated. Acquisition Price will be determined based on Actual Cost as further described in this Acquisition Agreement.

B-14
4128-1440-0072.1
Exhibit B to the Acquisition Agreement

FORM OF SCIP REQUISITION
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Vo Nguyen
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the CITY OF MORGAN HILL hereby requests a withdrawal from the [DEVELOPER] ACQUISITION ACCOUNT, as follows:

Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A] Payment Instructions: [Insert Wire Instructions or Payment Address for Developer] The undersigned hereby certifies as follows:

1. The Withdrawal is being made in accordance with a permitted use of such monies pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of reinvestment.

2. None of the items for which payment is requested have been reimbursed previously from other sources of funds.

3. If the Withdrawal Amount is greater than the funds held in the Acquisition Account, the SCIP Program Administrator is authorized to amend the amount requested to be equal to the amount of such funds.

4. To the extent the Withdrawal is being made prior to the date bonds have been issued on behalf of SCIP, this withdrawal form serves as the declaration of official intent of the CITY OF MORGAN HILL, pursuant to Treasury Regulations 1.150-2, to reimburse with respect expenditures made from the Acquisition Account listed above in the amount listed above.

CITY OF MORGAN HILL
By:

Title:

B-15
4128-1440-0072.1 Page 416 of 453

EXHIBIT C TO THE RESOLUTION

ELIGIBLE FACILITIES AND FEES
Eligible facilities and fees that may be financed by a CFD formed by CSCDA through SCIP include all improvements and fees authorized under the Mello-Roos Act, including but not limited to the following:

Transportation Improvements
Eligible roadway improvements include, but are not limited to: acquisition of land and easements; roadway design; project management; bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; joint trenches, underground utilities and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off-site), enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters, bus and transit improvements including transfer stations and regional public transit improvements; masonry walls; traffic control and agency fees; and other improvements related thereto. Eligible improvements for the roads listed herein also include any and all necessary underground potable and recycled water, sanitary sewer, and storm drainage system improvements.

Water System Improvements
Authorized facilities include any and all water facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: water storage, treatment and distribution facilities including waterlines and appurtenances, gate valves, pressure reducing stations, flow meters, fire hydrants, and other improvements related thereto such as site clearing, grading and paving; curbs and gutters; booster pump stations & power; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

Recycled Water System Improvements
Authorized facilities include any and all recycled water system facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: treatment and distribution facilities including pipelines and appurtenances, gate valves, flow meters, booster pump pressurization system, and other improvements related thereto - such as site clearing, grading and paving; curbs and gutters; booster pump stations; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

Drainage System Improvements
Authorized facilities include any and all drainage and storm drain improvements designed to meet the needs of development within the CFD. These facilities include, but may not be limited to:
excavation and grading, pipelines and appurtenances, outfalls and water quality measures, detention/retention basins, drainage pretreatment facilities, drainage ways/channels, pump stations, landscaping and irrigation; access roads, gates, and fencing; and striping and signage and

other improvements related thereto.

Wastewater System Improvements
Authorized facilities include any and all wastewater facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to, pipelines and all appurtenances thereto; manholes; tie-in to existing main lines; force mains; lift stations; upgrades to existing lift stations; odor-control facilities; and permitting related thereto; and related sewer system improvements.

Park, Parkway and Open Space Improvements
Authorized facilities include any and all improvements to parks, parkways and open space required for development within the CFD. These facilities include, but may not be limited to: grading, turf, shrubs and trees, landscaping irrigation, site lighting, drainage, sanitary sewer and water service, pedestrian and bicycle trails, protective fencing (including soundwalls), pedestrian/bicycle bridges, storm drain crossings, wetland mitigation, hawk mitigation for authorized facilities herein, access gates and fencing and related open space improvements. Authorized facilities include acquisition of any and all parkland as well as open space/bike trail/public access easements required for development within the CFD.

School and Educational Facilities
Authorized facilities include classroom renovation, updates to school safety and security systems, technology improvements, energy efficiency improvements, school modernization and retrofitting, and new classroom and school construction as required for development within the CFD.

Development Impact Fees
Authorized facilities include the direct funding of any of the above referenced facility types for which the Local Agency collects a development impact fee.

Other Incidental Expenses and Bond Issuance Costs
In addition to the above facilities, other incidental expenses as authorized by the Mello-Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facilities (including the cost of environmental evaluation, remediation and mitigation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construction management; costs (including the costs of legal services) associated with the formation of the CFD; issuance of bonds (if any); determination of the amount of taxes; collection of taxes; payment of taxes; costs of calculating and providing reimbursements from one-time special tax payments; or costs otherwise incurred in order to carry out the authorized purposes of the CFD; and any other expenses incidental to the formation and implementation of the CFD and to the construction, completion, inspection and acquisition of the authorized facilities.

EXHIBIT D TO THE RESOLUTION

FORM OF INCREASED DEMANDS CERTIFICATE
To: California Statewide Communities Development Authority Re: Statewide Community Infrastructure Program – Community Facilities District for [Project]
The undersigned, a duly authorized officer of the CITY OF MORGAN HILL (the “Local Agency”) hereby certifies that the public capital improvements and development impact fees identified below are necessary to meet increased demands placed upon the Local Agency as a result of development within the proposed community facilities district for the [Project]:
[List improvements/fees here]

CITY OF MORGAN HILL
By:

Title:

EXHIBIT E TO THE RESOLUTION

CITY OF MORGAN HILL CONTACTS FOR SCIP PROGRAM
Primary Contact
Name: Matt Mahood
Title: Economic Development Director
Mailing Address: 17575 Peak Avenue, Morgan Hill, CA 95037 Delivery Address (if different):

E-mail: [email protected]
Telephone: 408-310-4652
Fax: 408-778-1564
Secondary Contact
Name: Dat Nguyen
Title: Finance Director
Mailing Address: 17575 Peak Avenue, Morgan Hill, CA 95037 Delivery Address (if different):

E-mail: [email protected]
Telephone: 408-776-7379
Fax: 408-778-1564
[Add additional contacts as needed]

4128-1440-0072.1

CERTIFICATION OF RESOLUTION
I, the undersigned, the duly appointed and qualified City Clerk of the City of Morgan Hill, do hereby certify that the foregoing Resolution No. ___________ was duly adopted at a regular meeting of the City Council of the City of Morgan Hill duly and regularly held at the regular meeting place thereof on the _______ day of __________, 2023, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present.

An agenda of said meeting was posted at least 72 hours before said meeting at _____________________, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

Notice of public was published in [name of newspaper] at least 5 days prior to the hearing.

I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes.

Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect.

Dated: _______________, 2023
_________________________________
City Clerk of the City of Morgan Hill
Seal By: ______________________________

16 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 2023
PREPARED BY:

Rebecca Garcia, Housing Director
APPROVED BY: City Manager

APPROVE CONDITIONAL FUNDING FOR THE MAGNOLIAS

AFFORDABLE HOUSING DEVELOPMENT BY FIRST COMMUNITY

HOUSING AND EDEN HOUSING (FCH-EDEN) FROM DESIGNATED

HOUSING FUNDS

RECOMMENDATION(S)
Approve conditional funding for the FCH-Eden Housing Project, “The Magnolias,” in the amount of $600,000, contingent on FCH-Eden’s ability to obtain the remaining gap funds, and subject to an agreement negotiated by the City Attorney.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Diversity and Inclusiveness
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Affordable Housing and Homelessness
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

POLICY CONSIDERATIONS:

1. Should the City Council invest affordable housing funds to support the creation of housing for farmworkers and families experiencing homelessness?

2. Should the City Council partner with FCH-Eden on the Magnolias project to help the City meet its Regional Housing Needs Allocation (RHNA) requirements? REPORT NARRATIVE:

In April 2021, First Community Housing, in partnership with Eden Housing, received entitlements to construct 66 units of multifamily housing on a 1.5-acre site located at 17965 Monterey Road, east of the Morgan Hill Adult School. The project is 100% affordable, for households earning 30% to 60% of the Area Median Income (AMI).

16 The project consists of 16 studios, 16 one-bedroom units, 17 two-bedroom units, and 17 three-bedroom units. Ten units will serve families in need of rapid rehousing, 7 units will serve veterans supported by VASH vouchers receiving services from the VA, and 28 units will be set aside for families of farmworkers. In addition to the VASH vouchers, 16 units will be supported by Section 8 Project-Based Vouchers. The project's common areas will include the Social Service Coordinators' offices, open lounge/seating areas, a central laundry facility, indoor and outdoor play spaces for kids of all ages, secured bicycle storage, pet washing facilities, and a community garden area. Parking will be provided at a rate of one space per unit in a surface lot behind the building.

The project applied for State Housing and Community Development (HCD) Joe Serna funds through HCD’s 2023 Super NOFA on July 12, 2023. Assuming the project receives the necessary HCD approvals by late 2023/early 2024, the project will be able to qualify for State tax credits. An application for Federal and State tax credits is expected to be submitted in Q1 2024. The allocation of bonds and tax credits will occur in Q3 2024, with anticipated financial closing and initiation of construction in Fall 2024 and potential completion by early 2026.

Project Funding
The Magnolias project is expected to cost nearly $69 million. The project has been awarded $13.2 million of Measure A funds in June 2022 and is seeking an additional $11.0 million of State HCD Serna funds through the 2023 Super NOFA. If successful with remaining State and City funding requests, the project will close its funding gap and be lined up for construction in Fall 2024. To support this project, staff recommends a local contribution of $600,000 from the City's Housing Fund, contingent on the developer’s ability to obtain a commitment for the remaining gap funding, which would need to occur within approximately 365 days of an executed agreement. Below is a detailed breakdown of the anticipated funding sources:
• Tax-Exempt Construction Loan: $36,070,286
• Taxable Construction Loan: $2,695,373
• Santa Clara County Measure A Award: $13,200,000
• HCD SuperNOFA Serna Award (anticipated): $11,018,009
• Deferred Costs: $1,660,004
• Capital Contributions: $3,541,629
• Morgan Hill Award (pending Council approval): $600,000 • Total: $68,785,301
Housing Element
The Housing Element of the City’s General Plan is Morgan Hill’s comprehensive statement of its housing needs and goals. It identifies actions to meet the housing needs of the full spectrum of city residents at all income levels. The purpose of the Housing Element is to establish specific goals, policies, and objectives relative to the provision of housing for all income levels and an action plan. Additionally, the Housing Element is the guiding policy document used to evaluate housing recommendations to ensure that policies and funding recommendations align. In order to have a Housing Element certified by the State Housing and Community Development Department

16 (HCD), the City must demonstrate how the community will meet the existing and projected housing needs. The City is required to submit an Annual Progress Report to HCD on the progress made in the creation of housing units by income category in relation to the City-assigned Regional Housing Needs Allocation (RHNA) goals. On January 25, 2023, the Morgan Hill City Council adopted the Housing Element for the Planning Period: January 31, 2023, to January 31, 2031. The City is continuing to work with HCD on certification of the adopted Housing Element. A third round of HCD review will begin in late September.

This project supports the City's Housing Element goals:
• Goal 1: Provide a diversified housing stock to meet the full range of future community housing needs
• Goal 2: Encourage Extremely Low-Income (ELI) housing production, increasing the availability of affordable and workforce housing
• Goal 3: Advance equity and inclusion throughout the City • Goal 4: Promote Housing for people experiencing homelessness Farmworker Housing
In 2014, the County of Santa Clara Planning Department conducted a small sampling of focus groups and interviews with South County farmworkers, service providers, the farm bureau, and school liaisons to begin to understand the housing needs that were occurring among the farmworker population. The interviews conducted showed that the farmworkers were living in substandard and overcrowded conditions, demonstrating the need for affordable and livable housing. The County adopted a farmworker housing goal in the County’s Housing Element in 2014. In April 2017, the County Planning Department issued an Informal Competitive Procurement for “Preparing a Farmworker Housing Needs Assessment.” Due to the cost of the assessment, the County decided to partner with the City of Morgan Hill to begin to complete their research. In January 2018, there was a joint “roundtable” discussion with South County stakeholders at the City of Morgan Hill, which led the County to conduct a broader “Farmworker Housing Survey” specific to South County. The results indicated an unmet demand for approximately 700 permanent family residences and seasonal housing for approximately 1,400 farmworkers. Efforts are needed at both the City and County level to improve housing conditions for farmworkers in both the incorporated and unincorporated areas.

Conclusion:

The Magnolias project supports the strategies outlined in the City's Housing Element.

This project is unique in that it will serve two underserved populations, people experiencing homelessness and the City's agricultural workforce. It will also aid the City in achieving Extremely Low Income (ELI), Very Low Income (VLI), and Low Income RHNA units, as 66 units are for households earning 30% to 60% of the area median income (AMI). The City provides financial contributions to projects that advance the City's affordable housing goals. In recent years, the Council approved funding for the Morgan Hill Family Apartments, The Royal Oak Village, and the Crossings. FCH-Eden

16 is committed to building cost-effective, service-enriched housing development within the City and both developers have been consistent, reliable, and collaborative partners with the City. Staff recommends approval of a $600,000 contribution to the project as this project will serve farmworker families and people experiencing homelessness or at risk of, and contribute to the City’s required RHNA allocation for the 6th Cycle (2023-2031).

COMMUNITY ENGAGEMENT:

This staff report serves to inform the community of the proposed pledge to fund a portion of the FCH-Eden affordable housing project.

ALTERNATIVE ACTIONS:

The Council may choose not to pledge $600,000 and reconsider the City's contribution once the remaining gap funds have been secured or pledge a different amount.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council approved four concessions for the 100 percent affordable project on January 20, 2021.

The Planning Commission approved a Conditional Use Permit and Design Permit on November 23, 2021.

FISCAL AND RESOURCE IMPACT:

The City’s Housing In-Lieu Fee is collected pursuant to the Inclusionary Housing Ordinance, whereby housing developers contribute funds to support the City's provision of affordable housing. The fund supports acquisition, construction, development assistance, rehabilitation, financing, rent subsidies, or other efforts that support the administration of such programs. Funding for this purpose was programmed in FY22-23 Housing Mitigation Fund (236). With the Council approval, $600,000 will be reappropriated to FY23-24.

CEQA (California Environmental Quality Act):

The project is for funding purposes only and therefore, the project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3), as there no possibility that funding the project will cause a significant effect on the environment.

Further CEQA review will be performed on the site as part of the entitlement application process.

17 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 2023
PREPARED BY:

Michelle Bigelow, City Clerk
APPROVED BY: City Manager

PROVIDE DIRECTION REGARDING CITY COUNCIL TERM LIMITS

RECOMMENDATION(S)
Provide direction to staff regarding the drafting of an ordinance creating term limits that would be submitted to the voters in November 2024.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Enhancing Diversity and Inclusiveness
REPORT NARRATIVE:

At the June 7, 2023 City Council meeting, the Council voted to direct staff to research term limits. The City of Morgan Hill does not have term limits for the Council or commissions. Should the City Council want to put term limits in place for the elected positions of Mayor and Council Member, it would require voter approval.

Government Code Section 36502(b) specifies that the City Council or the residents of the City may propose, by initiative, a proposal to limit the number of terms a member of the City Council may serve on the City Council or the number of terms an elected mayor may serve. Any proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless the proposition is submitted to the electors of the City at a regularly scheduled election and a majority of the votes cast favor its adoption. Limitations may be placed on the number of consecutive terms that Council Members may serve and may also be placed on the number of terms that a person may serve during their lifetime.

There are a few term-limit ordinances currently being used throughout the state, and they generally fall within four models:
• Two or three consecutive terms of four years for Council Members and two or more terms of two years for the Mayor, followed by a hiatus of a specified duration (typically 1, 2, or 4 years) before the incumbent is eligible to seek election to additional terms. • Two or three consecutive terms of four years for Council Members and two or more terms of two years for the Mayor.

17 • Eight or ten-year maximum consecutive terms for Council Members and the Mayor, followed by a hiatus of a specified duration (typically 1, 2, or 4 years) before the incumbent is eligible to seek election to additional terms. • Eight or ten-year maximum consecutive terms for Council Members and the Mayor.

In addition, pursuant to Government Code Section 36502(b), a term limit ordinance applies prospectively only. This means that any term of office that commenced prior to the effective date of a term limit ordinance would not count as a term served for purposes of implementing the ordinance.

For purposes of discussion, the Council is asked to consider the following points:
• The number of terms a Council Member/Mayor may serve consecutively • Whether to allow a hiatus between terms when the imposed limit has been reached or create a lifetime term limit
• The period of hiatus between terms, if desired, when the imposed limit has been reached
• Whether to limit terms for Commissioners
If the City Council wishes to put terms limits in place, it is asked to provide direction to staff on the specific model of term limits it wants to move forward with (examples outlined above) and to direct staff to bring back a staff report for adoption of a resolution placing a term limit ordinance on the November 2024 ballot.

COMMUNITY ENGAGEMENT:

This report serves to inform the community of the City Council's discussion regarding term limits.

ALTERNATIVE ACTIONS:

The City Council may direct staff to take no further action.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On May 3, 2023, the Council directed staff to bring back this topic for Council consideration. On June 7, 2023, the Council directed staff to research term limits and bring information back to the City Council to review and provide direction.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with seeking direction from the Council on this item.

Should the City Council move forward with placing a measure on the ballot the estimated cost would be $60,000.

CEQA (California Environmental Quality Act):

Not a Project.

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

State of California

GOVERNMENT CODE
Section 36502
36502. (a)  A person is not eligible to hold office as councilmember, city clerk, or city treasurer unless he or she is at the time of assuming the office an elector of the city, and was a registered voter of the city at the time nomination papers are issued to the candidate as provided for in Section 10227 of the Elections Code.

If, during his or her term of office, he or she moves his or her place of residence outside of the city limits or ceases to be an elector of the city, his or her office shall immediately become vacant.
(b)  Notwithstanding any other provision of law, the city council of a general law or charter city may adopt or the residents of the city may propose, by initiative, a proposal to limit or repeal a limit on the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve.

Any proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless it is submitted to the electors of the city at a regularly scheduled election and a majority of the votes cast on the question favor the adoption of the proposal. Notwithstanding the provisions of this subdivision, the provisions of any city charter that, on January 1, 1996, impose limitations on the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall remain in effect. Unless otherwise prohibited by a city charter, any city charter may be amended pursuant to this section or pursuant to the procedures specified in the charter, to include the limitation authorized in this subdivision.
(Amended by Stats. 1995, Ch. 432, Sec. 5. Effective January 1, 1996.)

18 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 2023
PREPARED BY:

Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager

APPROVE CODE OF CONDUCT FOR PUBLIC MEETINGS IN THE

COUNCIL CHAMBER AND CONFERENCE ROOMS

RECOMMENDATION(S)
Approve City Council Policy, "Code of Conduct for Public Meetings in the Council Chamber and Conference Rooms"

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
REPORT NARRATIVE:

On August 22, 2022, Governor Gavin Newsom signed into law SB 1100, authored by Senator Dave Cortese, designed to address disruptions at public local government meetings. SB 1100 amends the Ralph M. Brown Act (Brown Act) to provide clarification regarding the authority of a local agency’s governing body to remove a disruptive member of the public from an open meeting, in order to maintain order during the meeting. The California Legislature enacted SB 1100 partially in response to an escalation of threats made against public officials during open meetings, as agencies sought to enact restrictions designed to slow the spread of the coronavirus. SB 1100 aims to protect the public and public officials from threats and ensure that public access is not impeded by disruptive behavior.

The City of Morgan Hill is not immune to disruptive behavior and SB 1100 is in line with best practice and industry standards to ensure diversity, equity and inclusion in participation while maintaining a safe and respectful public meeting. Staff recommends the City Council approve the attached "Code of Conduct for Public Meetings in the Council Chamber and Conference Rooms" to ensure the public's business can continue in a safe, orderly, and open fashion.

COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community about City Council's consideration of a Code of Conduct Policy for public meetings.

18 ALTERNATIVE ACTIONS:

The City Council could choose to make changes to the draft policy or not approve a policy.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

None.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with approving this policy.

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.

CITY OF MORGAN HILL

CITY COUNCIL POLICIES AND PROCEDURES
CP-xx-xx
SUBJECT: CODE OF CONDUCT FOR PUBLIC MEETINGS IN THE

COUNCIL CHAMBER AND CONFERENCE ROOMS
EFFECTIVE DATE: XXXXXXX, 2023
ORIGINATING DEPARTMENT: CITY ATTORNEY

PURPOSE
The purpose of this policy is to establish rules of decorum for members of the public attending, bringing signs or other objectsto, and/or addressing the legislative or policy body at meetings held in the Council Chamber and Conference Rooms, including meetings of the City Council and Commissions. The policy is intended to facilitate the conduct of public meetings in an open and orderly manner and in an environment safe for all persons in attendance.

SCOPE
This policy applies to persons attending public meetings in the Council Chamber and Conference Rooms.

POLICY
The Code of Conduct is intended to promote open meetings that welcome debate of public policy issues being discussed by the City Council and Commissions in an atmosphere of fairness, courtesy, and respect for differing points of view.

1. Public Meeting Decorum:
a) Persons in the audience will refrain from behavior which will disrupt the public meeting.

This includes making loud noises, clapping, shouting, booing, hissing, or engaging in any other activity in a manner that disturbs, disrupts, or impedes the orderly conduct of the meeting.
b) Persons in the audience will refrain from creating, provoking, or participating in any type of disturbance involving unwelcome physical contact.
c) Persons in the audience will refrain from speaking to others in person and/or on the phone in the Council Chamber or Conference Rooms while the meeting is in session. d) Appropriate attire, including shoes and shirts are always required in the Council Chamber and Conference Rooms.
e) Persons in the audience will not place their feet on the seats in front of them.

2. Signs, Objects, or Symbolic Material:
a) Objects and symbolic materials, such as signs or banners, will be allowed in the Council Chambers and Conference Rooms, with the following restrictions:
i. No objects will be larger than 2 feet by 3 feet.
ii. No sticks, posts, poles, or other such items will be attached to the signs or other symbolic materials.
iii. The items cannot create a building maintenance problem or a fire or safety hazard. b) Persons with objects and symbolic materials such as signs must remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. c) Objects that are deemed a threat to persons at the meeting or the facility infrastructure are not allowed. City staff is authorized to remove items and/or individuals from the Council Chamber and Conference Rooms if a threat exists or is perceived to exist. Prohibited items include, but are not limited to: firearms (including replicas and antiques), toy guns, explosive material, and ammunition; knives and other edged weapons; illegal drugs and drug paraphernalia; laser pointers, scissors, razors, scalpels, box cutting knives, and other cutting tools; letter openers, corkscrews, can openers with points, knitting needles, and hooks; hairspray, pepper spray, and aerosol containers; tools; glass containers; and large backpacks and suitcases that contain items unrelated to the meeting.

3. Addressing the Council or Commission:
a) Please see Section 6. Public Comment of City Council Policy 97-01, for information on addressing the City Council or Commission.
b) Speakers should discuss topics related to City business on the agenda unless they are speaking during public comment for items not on the agenda. c) Speakers' comments should be addressed to the full body. Requests to engage the Mayor, Council Members, Commissioners, or staff in conversation will not be honored. Abusive language is inappropriate and subject to removal from meeting. d) Speakers will not bring to the podium any items other than a prepared written statement, writing materials, or objects that have been inspected by security staff. e) If an individual wishes to submit written information, he or she may give it to the City Clerk or other administrative staff at the meeting.
f) Speakers and any other members of the public will not approach the dais at any time without prior consent from the Chair of the meeting.

Failure to comply with this Code of Conduct which may disturb, disrupt, or impede the orderly conduct of the meeting may result in removal from the meeting and/or possible arrest.

This policy shall remain in effect until modified by the City Council.

APPROVED:
_______________________________

MARK TURNER, MAYOR

19 CITY COUNCIL STAFF REPORT
MEETING DATE: September 6, 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 want the following items agendized at a future meeting for discussion:

1. Consider prohibiting pedestrians on median islands; and

2. Consider restoring the use of natural gas in new construction.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Supporting our Youth, Seniors, and Entire Community
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 are brief descriptions of the items proposed on June 7, 2023 for Council consideration.

Consider prohibiting pedestrians on median islands (requested by Mayor Turner, Attachment 2)
Pedestrians in the center medians for panhandling and fundraising purposes has become more common and presents several public safety hazards. The presence of a pedestrian in a center median can distract motorists as their attention could be drawn to the pedestrian and away from vehicle traffic on the roadway. This distraction could lead to collisions and potential injuries. Also, if the pedestrian were to leave the median and enter the roadway, the pedestrian could be involved in a collision resulting in serious injuries.

19 Some cities have enacted an ordinance prohibiting persons remaining on public medians for purposes other than the purpose of assisting pedestrians to safely cross the street, although many of the ordinances regulating pedestrians in medians have been, or are being challenged on constitutional grounds. Additionally, the adoption of such an ordinance would require enforcement staffing resources.

Staff is seeking direction on whether the City Council would like this item agendized to discuss prohibiting pedestrians on median islands for panhandling and fundraising purposes.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 1 hour.

Consider restoring the use of natural gas in new construction (requested by Mayor Turner, Attachment 3)
On November 6, 2019, the City Council adopted an Ordinance (No. 2306, Attachment 4) adding Chapter 15.63 (Prohibition of Natural Gas Infrastructure in New Buildings) to Title 15 (Buildings and Construction) to the Morgan Hill Municipal Code prohibiting natural gas infrastructure in new buildings effective March 1, 2020 in an effort to reduce climate impacts by requiring new buildings to be all electric.

Repealing Ordinance No. 2306 N.S., § 1, 11-6-2019, would remove the requirement completely from the Municipal Code and would be inconsistent with the City's Climate Action Plan (CAP). Alternatively, the Council could pass an Ordinance updating the Municipal Code to set an effective date for the Code to begin at a future date, giving PG&E time to improve its infrastructure, and remain consistent with our CAP. Another option could be to direct the City Manager to provide a blanket public interest exemption for all projects requesting the use of natural gas for a certain amount of time with the intent to reduce the impact on the electric grid.

Staff is seeking direction on whether the City Council would like this item agendized to discuss options for restoring the use of natural gas in new construction.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 2 hours.

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

19 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 7, 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 this item.

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.

Pedestrians Prohibited on Median Islands.

Pedestrians using the medians for panhandling and fundraising purposes are becoming more frequent, especially at Monterey Rd. and Dunne Ave. This creates a distraction for drivers, as well as a safety concern for pedestrians doing the panhandling and drivers passing through the intersection during a (left-hand turn) green light. Residents, employees who work in Morgan Hill, and visitors alike, deserve to be free of panhandling and fundraising efforts while sitting in their vehicles in traffic.

Turlock, CA Municipal Code: 4-7-904 Pedestrians prohibited on median islands.

Pedestrians are prohibited from stepping, standing, sitting, or lying upon any divisional island or median island, as defined, except for the express purpose of crossing the divisional island or median island at a marked crosswalk or walking upon a sidewalk contained within the divisional island or median island, constructed and maintained for that purpose. City employees in the course of their duties; contractors who are hired by the City to construct, repair, or maintain the divisional island or median island; emergency personnel or other persons who must temporarily use the divisional island or median island because of an accident or vehicular emergency; or those who are otherwise authorized by State law are exempt from the provisions of this section.

Restore Use of Natural Gas in New Construction
PG&E has proven they are incapable of providing consistent, uninterrupted electrical service to the residents of Morgan Hill. They have also failed to provide adequate answers for the massive electrical failures suffered by Morgan Hill residents during last September’s heat event. Morgan Hill was disproportionately affected by the power outages and when confronted by the City Council’s concerns, PG&E representatives failed to provide assurances a similar outage could be avoided during a similar heat event. Allowing natural gas to be provided in new construction does, in no way, punishes PG&E, however, future residents of Morgan Hill should not be punished due to PG&E’s inability to provide consistent, uninterrupted electrical power. As more and more state and federal requirements push PG&E beyond their limits, we should make sure during rolling brown outs and other power outages, residents can at least cook their meals.

ORDINANCE NO. 2306, NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL
ADDING CHAPTER 15.63 ( PROHIBITION OF NATURAL

GAS INFRASTRUCTURE IN NEW BUILDINGS) TO TITLE
15( BUILDINGS AND CONSTRUCTION) TO THE MORGAN

HILL MUNICIPAL CODE PROHIBITING NATURAL GAS

INFRASTRUCTURE IN NEW BUILDINGS EFFECTIVE
MARCH 1, 2020

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

Section 1. Chapter 15. 63 of the Morgan Hill Municipal Code is hereby added to read as follows:

Chapter 15.63

PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS Sections:

15.63.010 Findings and Purpose.

15.63.020 Applicability.

15.63. 030 Definitions.

15.63.040 Prohibited Natural Gas Infrastructure in Newly Constructed Buildings.

15.63.050 Public Interest Exemption.

15.63.060 Periodic Review of the Ordinance.

15.63.070 Severability.

15. 63.080 Effective Date.

15.63. 010 Findings and Purpose.

The Council finds and expressly declares as follows:

A. Scientific evidence has established that natural gas combustion, procurement and transportation produce significant greenhouse gas emissions that contribute to global warming and climate change.

B. The following addition to the Morgan Hill Municipal Code is reasonably necessary because of local climatic, geologic and topographical conditions as listedbelow:
1) Morgan Hill is situated along a wildland-urban interface and is extremely vulnerable to wildfires and firestorms, and human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasons.
2) Morgan Hill relies on water imported into the region for groundwater recharge and climate change is already causing changes in rainfall and snowfall which threaten to interrupt the supply ofimported water.
3) Structures in Morgan Hill are located along or near the Calaveras fault and the City is close

City of Morgan Hill
Ordinance No. 2306, New Series

enough to the San Andreas and Hayward faults. All of these faults are capable of producing large earthquakes in the Bay Area.

C. The following addition to the Morgan Hill Municipal Code is also reasonably necessary because of health and safety concerns as Morgan Hill residents suffer from asthma and other health conditions associated with poor indoor and outdoor air quality exacerbated by the combustion of natural gas.

D. Substitute electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas emissions and is cost competitive because of the cost savings associated with all- electric designs that avoid new gas infrastructure.

E. All-electric building design benefits the health, welfare, and resiliency of Morgan Hill and its residents.

F. The most cost-effective time to integrate electrical infrastructure is in the design phase of a building project because building systems and spaces can be designed to optimize the performance of electrical systems and the project can take full advantage of avoided costs and space requirements from the elimination of natural gas piping and venting for combustion air safety.

G. It is the intent of the council to eliminate obsolete natural gas infrastructure and associated greenhouse gas emissions in new buildings where all-electric infrastructure can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas.

15.63.020 Applicability.

A. The requirements ofthis Chapter shall apply to Building Permit Applications submitted on or after the effective date of this Chapter for all Newly Constructed Buildings proposed to be located in whole or in part within the City, except that the requirements of this Chapter will not apply to residential projects that are subject to an executed development agreement and that have obtained building permits for more than 10% of their allotted units.

B. The requirements ofthis Chapter shall not apply to the use of portable propane appliances for outdoor cooking and heating.

C. This chapter shall in no way be construed as amending California Energy Code requirements under California Code of Regulations, Title 24, Part 6, nor as requiring the use or installation of any specific appliance or system as a condition ofapproval.

15.63.030 Definitions.

A. "Applicant" shall mean an applicant for a Building Permit Application.

B. " Energy Code" shall mean the California Energy Code as amended and adopted in MHMC Chapter 15. 12.

C. " Greenhouse Gas Emissions" mean gases that trap heat in the atmosphere.

D. " Natural Gas" shall have the same meaning as " Fuel Gas" as defined in California Plumbing Code and Mechanical Code.

E. " Natural Gas Infrastructure" shall be defined as fuel gas piping, other than service pipe, in or in connection with a building, structure or within the property lines of premises, extending from the point of delivery at the gas meter as specified in the California Mechanical Code and Plumbing Code.

City of Morgan Hill
Ordinance No. 2306, New Series

F. " Newly Constructed Building" shall be defined as a building that has never before been used or occupied for any purpose.

15. 63.040 Prohibited Natural Gas Infrastructure in Newly Constructed Buildings.

A. Natural Gas Infrastructure shall be prohibited in Newly Constructed Buildings.

1. Exception: Natural Gas Infrastructure may be permitted in a Newly Constructed Building if the Applicant establishes that it is not physically feasible to construct the building without Natural Gas Infrastructure. For purposes of this exception, " physically feasible" to construct the building means either an all-electric prescriptive compliance approach is available for the building under the Energy Code or the building is able to achieve the performance compliance standards under the Energy Code using commercially available technology and an approved calculation method.

B. To the extent that Natural Gas Infrastructure is permitted, it shall be permitted to extend to any system, device, or appliance within a building for which an equivalent all-electric system or design is not available.

C. Newly Constructed Buildings shall nonetheless be required at a minimum to have sufficient electric capacity, wiring and conduit to facilitate future full building electrification.

D. The requirements of this section shall be deemed objective planning standards under Government Code section 65913. 4 and objective development standards under Government Code section 65589. 5.

15.63. 050 Public Interest Exemption.

A Notwithstanding the requirements ofthis Chapter and the Greenhouse Gas Emissions and other public health and safety hazards associated with Natural Gas Infrastructure, minimally necessary and specifically tailored Natural Gas Infrastructure may be allowed in a Newly Constructed Building provided that the entitling body establishes that the use serves the public interest. In determining whether the construction ofNatural Gas Infrastructure is in the public interest, the City may consider:

1. The availability of alternative technologies or systems that do not use natural gas;

2. Any other impacts that the decision to allow Natural Gas Infrastructure may have on the health, safety, or welfare ofthe public.

B. Ifthe installation of Natural Gas Infrastructure is granted under a public interest exemption, the Newly Constructed Buildings shall nonetheless be required at the minimum to have sufficient electric capacity, wiring and conduit to facilitate future full building electrification.

15.63. 060 Periodic Review of Ordinance.

The City shall review the requirements ofthis ordinance every 18 months for consistency with the California Energy Code and the Energy Commission' s mid-cycle amendments and triennial code adoption cycle as applicable.

Section 2. This Ordinance shall be submitted to the California Building Standards Commission following adoption as consistent with state law.

City of Morgan Hill
Ordinance No. 2306, New Series

Section 3. 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 4. This Ordinance shall take effect on March 1, 2020. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A MEETING OF THE CITY COUNCIL HELD ON THE 23" DAY OF OCTOBER 2019 AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 6TH DAY OF NOVEMBER 2019 AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH THE LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS: Larry Carr, Rene Spring, Yvonne Martinez Beltran, NOES: COUNCIL MEMBERS: John McKay, Rich Constantine
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
APPROVED:

RICH CONSTANTINE, Mayor
ATTEST:
hw DATE: 1'-)" k
PkM-A TORREZ, Ci Jerk
Effective: March 1, 2020

City of Morgan Hill
Ordinance No. 2306, New Series

V-) CERTIFICATE OF THE CITY CLERK cz

I, IRMA TORREZ, CITY CLERK OF THE CITY OF MORGAN HILL,
CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Ordinance No. 2306, New Series, adopted by the City Council ofthe City ofMorgan Hill, California at their regular meeting held on the 6th day ofNovember 2019.

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

DATE: 12A
A,IRMA TORREZ, CiOy Clerk

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