Morgan Hill City Council
December 6, 2023

Woodland Booster CMU Retaining Wall CONTRACT
UD-BID-2024-41 Page 4
Version: July 2022
Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between City and Contractor. If any provision of the Contract Documents, or portion of a provision, is determined to be illegal, invalid, or unenforceable, the remaining provisions of the Contract Documents will remain in full force and effect.

10.6 Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two (2) officers of the corporation are required pursuant to California Corporation Code Section 313.

10.7 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 are on the following page.]

Woodland Booster CMU Retaining Wall CONTRACT
UD-BID-2024-41 Page 5
Version: July 2022
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.

The parties agree to this Contract as witnessed by the signatures below:

CITY OF MORGAN HILL:
_______________________________
Christina J. Turner
City Manager
Date: _________________________
Attest:
______________________________
Michelle Bigelow
City Clerk
Date: _______________________
Approved as to Form:
________________________________
Donald A. Larkin
City Attorney
Date: _________________________
CONTRACTOR:
[NAME OF CONTRACTOR]
_________________________
Signature
__________________________
Name/Title [print]
Date: ____________________
Corporate entities must provide a
second signature:
_________________________
Signature
__________________________
Name/Title [print]
Date: ______________________
1084826
Contractor’s License Number(s)
12/31/2023__________________
Expiration Date(s)
Seal:
100096897____________________
Contractor’s DIR Registration Number(s)
6/30/2024______________________
Expiration Date

END OF CONTRACT

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

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

AWARD A TWO-YEAR LANDSCAPE MAINTENANCE AGREEMENT TO

MEDALLION LANDSCAPE MANAGEMENT, LLC IN THE AMOUNT OF
$371,712 FOR CITY FACILITIES AND ASSESSMENT DISTRICTS

RECOMMENDATION(S)

1. Award a two-year contract to Medallion Landscape Management, LLC in the amount of $371,712 to service Group 2 - City Facilities, Group 4 - Landscape Assessment Districts, including an extra services allocation of $30,000 per year; and

2. Authorize the City Manager to execute and administer the Maintenance Service Agreement with Medallion Landscape Management, LLC. and to extend the agreement for up to three (3) additional one-year terms.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this item is to provide the City Council with an opportunity to consider awarding a maintenance service agreement to Medallion Landscape Management, LLC, in the amount of $371,712 to service City facilities and landscape assessment districts for the next two years (January 2024-December 2025).

The City has contracted with professional landscape contractors for various landscape maintenance services for many years as an approach to serve the City cost-effectively.

The work has been divided into five groups to diversify the City's bidding opportunities.

On October 2, 2023, a Request for Proposals (RFP) was released for two years of service for both Group 2 (critical City facilities) and Group 4 (northern group of landscape assessment districts). The RFP was posted on the City website, Public

18 Purchase, Builder's Exchange of Santa Clara County, San Francisco Builders Exchange, and the Bay Area Builders Exchange.

Group 2 includes the Civic Center, Community and Cultural Center, Centennial Recreation Center, Skate Park, Wildlife Trail, Aquatic Center, and Police Facility. Group 4 includes the landscape assessment districts at Fox Hollow/Murphy Springs, Llagas Creek Estates, Sparhawk, Chang/Bertelone, Llagas/Obata, Belle Estates, Diana Estates, Stone Creek, and Sandalwood as well as the East Main well site, which was added to the scope in this agreement. The current agreement for these groups expires on December 31, 2023.

Eight landscape firms attended the non-mandatory pre-bid meeting, and four submitted proposals by November 7, 2023. The City evaluated the proposals using a "Best Value" methodology in a two-step process. Proposals were first evaluated based on narrative responses to questions. 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 40 points available for this section, and contractors were required to score at least 30 out of 40 points to proceed in the evaluation process. The final scores for this section were:

Company Score
Alpine Landscapes 32.7
Brightview Landscape
Services

31.0 Medallion Landscape
Management

35.5 New Image Landscape
Co.

27.3 New Image Landscape Company did not score the minimum 30 out of 40 points to proceed in the RFP review process. Their proposal was eliminated from further consideration.

In the second evaluation step, the contractors' cost proposals were evaluated based on weighted scores for each firm's pricing for Group 2 and Group 4 and the average hourly rates for extra services. Interviews were conducted with the top-scoring contractors, Alpine Landscapes and Medallion Landscape Management, to verify evaluators' scores.

Based on a review of the narrative responses and the weighted cost proposal scoring, the evaluation team recommended awarding the contract to Medallion Landscape Management, LLC.

Following the evaluation, City staff identified two sub-areas within the City's Landscape Assessment District where the proposed pricing by Medallion was higher than could be funded by these areas. City staff negotiated lower pricing and lower service frequencies for the Sparhawk and Diana Estates sub-areas. City staff will work with residents of these sub-areas to discuss increasing assessments to the sub-area to restore

18 previously received service levels if residents are interested.

Staff recommends that the City Council authorize the City Manager to execute a twoyear Maintenance Service Agreement with Medallion Landscape Management, LLC for $371,712 for Groups 2 and 4 and associated extra services. The recommended amount of the contract is $30,000 per year, higher than the bid amount needed to fund scheduled services solely for the two-year term. This increased amount allows additional services to be provided above and beyond routine services. Examples of these services include irrigation valve replacements, exceptional tree trimming, and the rejuvenation of a landscape area. The contract specifies that these additional services are only to be provided with the prior approval of the City's contract manager. The base two-year agreement includes options to extend the agreement for up to three (3) additional one-year terms in amounts not to exceed the prior year's annual amount by 5%.

COMMUNITY ENGAGEMENT:

Staff will continue to post landscape maintenance updates on the City's website, Next Door Morgan Hill, Facebook, and X (Formerly Twitter) to inform residents of any landscape maintenance work done by the contractor that will affect right-of-way or pedestrian access to facilities and services. Engagement also occurs informally through resident discussion with Public Services Department team members.

ALTERNATIVE ACTIONS:

An alternative action would be to reject all proposals and release another RFP in an attempt to obtain more proposals. This alternative is not recommended as it would jeopardize ongoing landscape maintenance and safety. It is also not likely to result in a better value to the City.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City has contracted landscape maintenance services for over a decade. The maintenance services agreement for these work groups was last awarded on November 28, 2018 by the City Council.

FISCAL AND RESOURCE IMPACT:

Medallion Landscape Management LLC's annual pricing of $119,772 for City facilities and $36,084 for Landscape Assessment Districts are within budgeted amounts for facilities and the landscape assessment districts' landscape maintenance. There is an additional allocation of $30,000 per year for extra services. No additional appropriations are needed.

CEQA (California Environmental Quality Act):

Categorical Exemption
Maintaining existing landscapes is categorally exempt under CEQA, specifically pursuant to Section 15301 (c) of the CEQA Guidelines (Existing Facilities), as the subject work involves the repair, maintenance, or minor alteration of existing City

18 facilities involving negligible or no expansion of use of those facilities.

2023 Landscape Maintenance Groups 2 and 4 Scoring Matrix

NARRATIVE SCORING NARRATIVE SCORING
Points
Available
Alpine
Landscape
Brightview
Landscape
Medallion
Landscape
New Image
Landscape
Previous Experience 15.0 12.7 12.3 13.8 10.3
Work Quality - References 10.0 8.5 7.7 8.5 7.2
Qualifications of Staff 5.0 3.5 3.7 3.8 3.2
Organized Communication
Systems 10.0 8.0 7.3 9.3 6.7
SUBTOTAL- NARRATIVE POINTS 40.0 32.7 31.0 35.5 27.3 Did not score minimum 30 points

BID PRICING BID PRICING SCORING
Item
Price from Lowest
Bidder
Alpine
Landscape
Brightview
Landscape
Medallion
Landscape
New Image
Landscape
Points
Available
Alpine
Landscape
Brightview
Landscape
Medallion
Landscape
New Image
Landscape
Group 2 Total Bid 105,060.00 105,060.00 144,263.00 119,772.00 25.0 25.0 18.2 21.9 Group 4 Total Bid 39,984.00 48,660.00 42,748.00 39,984.00 25.0 20.5 23.4 25.0 Extra Services:

Average of Hourly Rates* 59.50 72.38 77.00 59.50 8.0 6.6 6.2 8.0 % Material Mark-Up Over
Costs 10.00 15.00 10.00 15.00 2.0 1.3 2.0 1.3
SUBTOTAL-PRICING POINTS 60.0 53.5 49.8 56.3 -
*=Average Hourly Rate of:

Laborer, Skilled Technician, Supervisor
& Emergency/After Hours Response
GRAND TOTAL 100.0 86.1 80.8 91.8
#2 #3 #1
Point Score is lowest bidder's item price divided by each Contractor's item price times the number of points available. For example, Brightview's Group 2 Bid Amount = 144,263/105,060 X 25 points = 18.2 points

1 Updated: May 2023

MAINTENANCE SERVICE AGREEMENT
Medallion Landscape Management, LLC.

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, LLC. a California limited liability company ("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, 2025 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 of three one-year extensions. 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 landscape maintenance services to Group 2-city facilities and Group 4-landscape assessment districts and associated extra services as further described in Exhibit A.

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

4.1. Amount. $371,712.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Three Hundred Seventy-One Thousand Seven Hundred Twelve 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 each subsequent extended one-year term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the immediately preceding prior year of service.

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

2 Updated: May 2023
excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.

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

3 Updated: May 2023
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.

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

4 Updated: May 2023
PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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

5 Updated: May 2023
combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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 nonPage 286 of 419 6 Updated: May 2023
compliance with any insurance requirements in this section 8. Certificates, including 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

7 Updated: May 2023
to appeal has expired. Relevant investigatory government agencies include: the federal 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.

8 Updated: May 2023

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 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:

Medalliion Landscape Management, LLC.
10 San Bruno 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

9 Updated: May 2023
matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

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.

10 Updated: May 2023

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 are on the following page.

12 Updated: May 2023

EXHIBIT A

SCOPE OF SERVICES
The scope of services includes landscape maintenance, irrigation management, emergency repairs, and non-emergency routine work per the specifications below:
2-1 NORMAL HOURS AND DAYS OF MAINTENANCE SERVICES
A. For the Community & Cultural Center, Gavilan College & Morgan Hill Playhouse, unless otherwise specified, work hours shall be 7:00 am-noon Monday-Thursday.

B. At all other locations, the Contractor shall perform the required maintenance services between the hours of 7:00 a.m. and 5:00 pm Monday - Friday and on weekends with prior City approval.

C. The Contractor shall conduct the work at all times in a manner which will not interfere with normal recreation programs, school programs, pedestrian traffic on adjacent sidewalks, or vehicular traffic on adjacent streets.

D. Any modification in the hours and days of maintenance services as stated in the Contractor's service schedule is subject to approval by the City. 2-2 PERIODIC PROJECT INSPECTIONS
Upon request, the Contractor will walk the project with the City's representative for the purpose of determining compliance with the specifications or to discuss required work. The Contractor's representative must be authorized to sign documents and make changes to the work.
2-3 PERFORMANCE DURING INCLEMENT WEATHER
During periods of excessive rainfall that hinders normal operations, the Contractor shall adjust its workforce to accomplish those activities that are not affected by weather. The prime factors in assigning work shall be the safety of the workforce and damage to parks and landscaping. 2-4 NOTICE TO PROCEED
After receipt of acceptable insurance certificates by City, a written Notice to Proceed will be mailed to the Contractor. The effective date of the Notice to Proceed will be the date stated as such in the Notice, provided that the effective date will not be earlier than the day following the issuance of the Notice to Proceed.
2-5 ACCEPTANCE
A. Acceptance by the City of any services furnished under the Contract shall occur only subsequent to the final review of authorized employees of the City.

B. The City shall reject and refuse to pay for any and all non-conforming services.

C. Nothing in this section shall limit or restrict the warranty and remedy obligations of the Contractor specified in the Standard Consultant Agreement. 2-6 LICENSES REQUIRED FOR DURATION OF CONTRACT
• C-27 Landscape Contractor License
• City of Morgan Hill Business License
• Qualified Applicator License (includes Santa Clara County Registration) • Registered with the California Dept. of Industrial Relations PWC-100 website •
2-7 SAFETY

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Safety provisions shall conform to Cal-OSHA Safety Orders, and all other applicable federal, state, county, and local laws, ordinances, codes, and regulations in performing the work under this Contract. Where any of these are in conflict, the more stringent requirement shall be followed. The Contractor's failure to thoroughly familiarize itself with the aforementioned safety provisions shall not relieve it from compliance with the obligations and penalties set forth therein.

The Contractor shall develop and maintain for the duration of the Contract, a safety program that will effectively incorporate and implement all required safety provisions. The Contractor shall appoint an employee who is qualified and authorized to supervise and enforce compliance with the safety program.
2-8 RESPONSE
Contract supervision shall be immediately available at all times when Contractor employees are working on sites, must be available from 7:00 am to 10:00 pm each day via telephone, and must respond to an emergency situation/major discrepancy in the Contract within two (2) hours of initial contact.
2-9 QUALIFIED CONTRACTOR SUPERVISION
All of Contractor's supervisors must be qualified, proficient in English, trained and capable of providing adequate supervision and direction to all Contractors’ employees and must demonstrate verbal and written communication skills sufficient for the work required herein. 2-10 CONTRACTOR'S EMPLOYEES
This Contract is intended to be a "partnership" between the City and the Contractor. The Contractor and his/her employees are agents of the City of Morgan Hill and represent the City in the performance of their work. Only Contractor's employees or subcontractors are allowed on City premises where work is being performed. The City shall have the right to have Contractor remove from assignment to City facilities such Contractor and/or subcontractor employees as shall be deemed incompetent, careless, insubordinate, or in any way objectionable, or any personnel whose actions may be contrary to the public interest or inconsistent with the best interest of the City. Contractor's employees and subcontractors shall not smoke tobacco on any City property.
2-11 EMPLOYER PROVIDED UNIFORMS
The Contractor shall provide each of its employees with uniforms. Uniform apparel shall be kept neat, clean, and in good repair. All uniforms shall include the Contractor's name and logo.

Contractor and subcontractor personnel shall wear uniforms at all times. 2-12 CONTRACTOR'S EQUIPMENT
The on-site supervisor shall ensure that all contractor-supplied equipment is in good working order. Any damaged equipment or equipment in need of repair shall be removed from the site.

Contractor shall be responsible for any damage to the work sites, City or private property, or any injuries caused by Contractor's equipment or personnel. 2-13 LOCKS AND KEYS
The Contractor shall be responsible for the series of keys assigned to it and shall assign these keys to its personnel for use in maintaining the facilities. The Contractor shall properly use and keep safe all keys or locks issued by the City to the Contractor.

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The Contractor shall report all lost or stolen keys or locks to the City within twenty-four (24) hours of discovery. The Contractor shall reimburse the City for the total cost of replacement keys and/or locks that have been lost.

Upon termination or cancellation of the Contract, the Contractor shall immediately return all keys, cards, remotes, etc., to the City. The Contractor shall reimburse the City for the total cost of lost items.
2-14 VANDALISM AND ACCIDENTAL DAMAGE
City assumes responsibility for the cost of repairing or replacing appurtenances significantly damaged by persons other than the Contractor or its agents. Vandalism or accidental damage repair costs shall be based on unit costs submitted by Contractor in the proposal or on time and materials quotes for work not called out in the proposal. Contractor shall be responsible for reporting damage to City and repairing or replacing all appurtenances damaged by Contractor or Contractor's agents.
2-15 WATER MANAGEMENT PROGRAM
Monthly, from March through November, the Landscape Maintenance Contractor must provide to the City a report of irrigation controller settings for the current month in electronic format.

This report will include the following information:

A. All irrigation programs set on controllers.

B. lrrigation schedule start times for each irrigation program.

C. lrrigation run days for each irrigation program.

D. lrrigation cycle length, in minutes for each station in an irrigation program.

E. Number of repeat cycles for each station in an irrigation program.

All required scheduling and operation of the automatic irrigation controllers reflecting weather changes and water needs will be covered under this Contract. Contractor shall make all adjustments and setting of automatic controllers to establish frequency and length of watering periods. Any malfunction of controllers must be reported to the City along with a proposal for correction with costs.

All systems shall be programmed as needed to maintain plants in a healthy, vigorous condition. The irrigation controller program is to be sufficient to keep the plant material healthy without excessive water use.

A. Controller programs shall incorporate the following conditions: Meet City Water Management requirements
B. Program around Park and Facility use and events
C. Reflect actual evapotranspiration (E.T.) requirements D. Reflect actual requirements of soil and plants
E. Eliminate runoff onto streets, sidewalks, and other non-target areas The Water Management Program is designed to optimize park and landscape water usage through field testing and irrigation schedule development. Soil moisture levels can be compared to irrigation schedules and plant water requirements to assist in responsible management of each park and landscape irrigation valve zone.

A. lrrigation Schedule Analysis:

Monthly during irrigation season (March through November), the Contractor will provide the City with the current month's irrigation schedules no later than the 10th day of the month. The

15 Updated: May 2023
irrigation schedules are analyzed by comparing the minutes of irrigation run time, plant water requirement and the level of environmental demand (evapotranspiration). Valve areas appearing to be over or under watered are to be further tested by the Contractor as outlined below.

B. Soil Moisture Testing:

Valve areas suspected to be over or under watered should be tested between May and October by the Contractor by removing a soil sample and testing the moisture content. Soil probing is conducted to determine soil moisture levels for automated overhead irrigation circuits.

C. lrrigation Base Schedule Development:

A monthly irrigation base schedule is developed based upon current controller settings and the feedback of moisture probing results. Adjustments are made at the controller either up or down where soil is found to be too dry or too wet. Once the Contractor has the correct run times for any given month, the starting "base schedule" is acquired. Adjustments to the "base schedule" shall occur throughout the month to accommodate changes in area use and/or environmental changes to individual sites.

D. Drought Impact on Irrigation:

The Contractor shall comply with all water use regulations and restrictions. In addition, Contractor shall comply with City directed changes in irrigation in response to drought conditions.

E. lrrigation System Evaluation:

December through February of each year the Contractor shall perform a complete system check of every irrigation system. The Contractor shall supply the City with a written report of every system as it is completed. Needed repairs shall occur throughout that same time period, and with the approval of the City, to ensure a fully operational system at the beginning of each spring. System evaluations of head, valves, quick couplers, etc. shall also occur monthly, at a minimum, March through November.

For any controller schedule not supplied by the 10th day of the current month by Contractor in any month, a $50.00 penalty per controller will be assessed.

City will provide all the water and electricity necessary for the Contractor to perform the services except instances where excessive costs are incurred by the City due to waste or negligence by the Contractor. If the City determines that excessive utility costs due to waste or negligence have occurred and are a result of Contractor's actions, the City may withhold from payment to Contractor those funds necessary to reimburse the City for these additional costs.

If there is a difference of opinion between the City and the Contractor as to the whether or not there has been waste due to the negligence of the Contractor, the opinion of the City will prevail.

Irrigation system repair shall occur and be compensated as stated below.

A. Irrigation system repair will be the responsibility of the Contractor. All replacement materials are to be with new original types and models, unless a substitute is approved by the City. The Contractor shall implement repairs in accordance with all effective warranties, and no separate payment shall be made for repairs on equipment covered by warranties.

B. Maintenance, repair, and replacement of malfunctioning sprinkler heads and quick couplers, including risers, swing joints, shall be included in the Contractor's base bid. The Contractor shall provide labor for the above items at no extra charge and shall bill the City for the required parts with a maximum mark up of 10% over cost.

C. Maintenance and repair of valves, filters, valve boxes, batteries and wiring shall be covered in the Contractor's base bid. The Contractor shall provide labor for the above items at

16 Updated: May 2023
no extra charge and shall bill the City for the required parts with the agreed upon mark up over cost.

D. Replacement of valves, filters, valve boxes, and wiring shall be considered "extra work" in their entirety. Decisions regarding repair verses replacement will be made by the Contractor and the City jointly. In the event that there is a disagreement with regards to how to proceed, the City's choice will prevail.

E. Repair and replacement of lateral lines, main lines, check valves, and controllers shall be considered "extra work” in their entirety.

F. Repairs and replacements of any irrigation component or property damaged by the Contractor or as a result of negligence, error, or omission by the Contractor shall not be submitted to the City for payment and are the responsibility of the Contractor.

G. Repair and replacement of any irrigation components or property that is a result of vandalism, or unintentional damage, caused by the public shall be considered "extra work" in its entirety. All vandalized components must be presented to the City within one working day of the repair or replacement in order for the Contractor to be compensated for the repair or replacement. If the vandalized components are not presented within one working day the Contractor will be paid based on the above stated criteria for repair and replacement.

H. When the Contractor observes or is notified of water waste due to excessive overspray, overwatering for irrigation system malfunction, he/she shall respond within 24 hours.

Repairs/adjustments shall be completed promptly to prevent damage to the landscape. 2-16 PLANT LOSS
It is one of the Contractor's prime responsibilities to prevent loss of plants caused by pests, diseases, insects, soil conditions, nutrient, micro-climatic conditions, improper planting, or problems in irrigation.

Contractor agrees to be continuously alert in locating and defining problems and agrees to exercise prompt and proper corrective action. A preliminary written report shall be submitted for major corrective problems not covered in the Contract along with the costs.

Contractor agrees to replace, at the Contractor's cost, any dead, stunted, or damaged that are the result primarily of the Contractor's negligence including, but not limited to, irrigation malfunctions that are not addressed within a reasonable amount of time based on environmental conditions. Plants lost from Contractor's negligence shall be replaced, at the Contractor's expense, within thirty (30) days of discovery. Replacement plants shall be comparable in size to the lost plant up to a maximum size of a thirty-six (36) inch box, or if smaller, the size shall be approved by the City.

The Contractor shall not be held responsible for plant losses due to maladies beyond the Contractor's control; this includes, but is not limited to, disease or insect attack for which there is no legal recommended control, acts of vandalism, earthquakes, fires, storms, freezing/frost, and related events. Contractor shall report all such conditions to the City in writing within seventy-two (72) hours of occurrence, and submit a proposal for the work or repairs along with the costs. The Contractor shall obtain City's written permission/direction or authorization prior to proceeding with the work. Failure to notify the City within seventy-two (72) hours of occurrence will result in replacement at the Contractor's cost as if the cause was Contractor negligence.

The City shall approve all replacement plants that differ in species. However, it is agreed that replacing plants shall not be used by the Contractor as a substitute for proper care. The City will consider Contractor negligence a major breach of contract with full responsibility for costs and losses.

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Dead plants and those in a state of decline shall be brought to the City's attention immediately and before removal. The City shall pay labor and material for plant replacement not caused by Contractor negligence, as deemed by the City, on an actual time and material basis.

All new plant material and irrigation installations or repairs shall be guaranteed for a period of ninety (90) days for unhealthy plant installation and/or poor workmanship. Exceptions include damage or death of plant material due to wind or storm, or vandalism, theft, or other willful acts over which the Contractor has no control. Existing plants shall be replaced by Contractor if they die due to Contractor's negligence. All replacement plants and materials shall be inspected and approved by City prior to installation.

At the end or termination of the Contract, the City reserves the sole right to withhold final payment(s) in the amount necessary to replace any damaged or dying plant material that is a result of Contractor negligence or to restore any site which is in a condition that is worse than when the Contract was executed.
2-17 TURF AERATION
The Contractor shall perform core aerations of turf (no mow areas excluded) as part of the base bid. Two (2) aerifications are required in all turf areas each year. Aeration plugs shall be properly destroyed so as to not pose a safety issue or interfere with the use of parks and facilities. The aeration schedule shall be coordinated with the City during the first month of the contract period. Additional turf aerations may be proposed, as "extra work" by the Contractor, in order to meet the designated standard. All proposals, and costs, must be approved by the City prior to additional turf aerations occurring.
2-18 FERTILIZATION
The Contractor will be responsible for performing all fertilizations of turf and landscape and shall be included in the base bid. The fertilization schedule shall be coordinated with the City during the first month of the contract period.

All turf areas (excluding no-mow) shall receive fertilizer applications four times per year.

Approximate dates of these are April 1, June 1, September 1, and November 1. Turf is to be maintained in good condition with horticultural acceptable growth and color, and additional fertilization may be required as extra work. Variations to these dates may be required under individual circumstances. All fertilizer shall be approved by the City prior to application.

All shrub, groundcover and no-mow turf areas shall receive fertilizer applications two times per year. Approximate dates of these are March 1 and September 1. Intent is to maintain plants in good condition with horticultural acceptable growth and color. Variations to these dates may be required under individual circumstances. All fertilizer shall be approved by the City prior to application.
2-19 BARK AND MULCH
The Contractor will be responsible for notifying the City when areas are in need of new bark or mulch. The City reserves the right to have the bark installed in any manner that it sees fit and by whomever it sees fit. In the event that the City requests that new bark mulch be added by the Contractor, it will be considered "extra work” in its entirety. 2-20 TREE PRUNING
The Contractor shall prune trees for clearance as part of the base bid. Pedestrian clearance shall be eight feet (8') and vehicular clearance shall be fifteen feet (15'). Responsibility for

18 Updated: May 2023
structural grid pruning, weight reduction pruning, etc. shall not be contained in the base bid and will be considered "extra work”. The City reserves the right to perform this work in any manner that it deems appropriate.
2-21 MOWING AND EDGING
Lawn mowing and edging shall be performed as needed to meet the City landscape standards.

When lawns cannot be cut on the scheduled day due to rain, they must be cut as soon as weather and ground conditions permit. This trimming shall include cutting all grass along walls, fences, foundations, curbs, sidewalks, shrubs, tree basins, poles, guy wires, irrigation & utility boxes, and any other object within or immediately adjacent to the lawn areas. Turf and plantings around sprinkler heads shall be trimmed to provide maximum water coverage.

Trimming shall be done by power edgers or by hand, but in no case will herbicides be permitted without prior written approval. Clippings shall be removed from all adjacent walkways and other paved surfaces immediately after each mowing/edging.

Seed heads on no-mow turf shall be removed on an annual basis. No-mow turf shall be edged as needed to keep from encroaching on walls, fences, sidewalks, etc. 2-22 REFUSE DISPOSAL
All refuse and recycling materials are to be placed in the trash dumpsters and recycling containers located at the Morgan Hill Corporation Yard. Green waste is to be placed in bins provided by the City at the Bus Yard across the street from the Corporation Yard. 2-23 TRAFFIC CONTROL
Traffic control shall conform to the latest Caltrans Standards to ensure safe flow of traffic and safety of workers in traffic zones. All traffic control costs shall be included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

The Maintenance Manager shall be notified prior to any road closures. No traffic lanes on Dunne Avenue, Cochrane Road, Butterfield Blvd., Tennant Ave., or Monterey Road may be closed before 9:00 a.m. or after 3:00 p.m. without written permission from the Maintenance Manager. Access to driveways shall be maintained at all times.

When entering or leaving roadways which bear public traffic, the Contractor's equipment, whether empty or loaded, shall in all cases yield to public traffic.

The provisions in this section may be modified or altered if, in the opinion of the Maintenance Manager, public traffic will be better served and work expedited. Such modifications or alterations shall not be adopted until approved in writing by the Maintenance Manager. 2-24 FINGERPRINTING AND BACKGROUND CHECKS
All Contractor staff who will be working on City facilities during business hours must pass a background check a State of California Department of Justice Criminal Records Check. The Record Check may be performed at the Morgan Hill Police Department located at: 16200 Vineyard Boulevard, Morgan Hill, CA 95037.

The Contractor is responsible for maintaining and updating background check information for their employees.

SECTION 3

LOCATIONS AND SERVICES REQUIRED

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3-1 GROUP 2 – Civic Center, Recreation Facilities, Police Department Group 2 services shall include complete landscape maintenance services as described in this document. Service frequencies shall be as described in this document and as needed to maintain Morgan Hill landscape standards. Minimum frequencies for trash & recycling material removal, stocking mutt mitts dispensers, litter removal, pavement and site furnishing cleaning frequencies are:

Group 3 Locations Apr to Oct Nov & Mar Dec to Feb
Civic Center Mon, Wed, Fri Mon, Wed, Fri Mon, Wed, Fri
Community & Cultural Center * Daily (7 days/week) Daily (7 days/week) Daily (7 days/week)
Centennial Recreation Center Daily (7 days/week) Daily (7 days/week) Daily (7 days/week)
Skate Park Daily (7 days/week) Daily (7 days/week) Daily (7 days/week) Wildlife Trail Daily (7 days/week) Daily (7 days/week) Daily (7 days/week) Aquatics Center Daily (7 days/week) Daily (7 days/week) Mon, Wed, Fri Police Department Mon, Wed, Fri Mon, Wed, Fri Mon, Wed, Fri *Note: the Community Center includes the Playhouse and Building B grounds. 3-2 GROUP 4 – Assessment Districts, North/East
Group 4 services shall include complete landscape maintenance services as described in this document. Service frequencies shall be as described in this document and as needed to maintain Morgan Hill landscape standards. Minimum frequencies for trash & recycling material removal, stocking mutt mitts dispensers, litter removal, pavement and site furnishing cleaning frequencies are:

Group 4 Locations Year Round
Fox Hollow/Murphy Springs Weekly
Llagas Creek Estates Weekly
Sparhawk Weekly
Chang/Bertelone Biweekly
Llagas/Obata Biweekly
Belle Estates Weekly
Diana Estates Weekly
Stone Creek Weekly
Sandalwood Monthly
E Main Well Site Weekly

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EXHIBIT B

SCHEDULE OF COMPENSATION RATES
Please see next two (2) pages

Group 2 - City Facilities
CY 24 to CY 25 Contract Annual
Amount
Civic Center 28,068.00
Community and Cultural Center 28,068.00
Centennial Recreation Center 16,848.00
Skate Park 3,744.00
Wildlife Trail 3,744.00
Aquatics Center 28,068.00
Police Department 11,232.00
TOTAL - Group 2 Annual Amt. 119,772
Group 4 - Landscape Assessment Districts
CY 24 to CY 25 Contract Annual
Amount
Fox Hollow/Murphy Springs 3,744.00
Llagas Creek Estates 4,752.00
Sparhawk 2,244.00
Chang/Bertelone 3,120.00
Llagas/Obata 1,752.00
Belle Estates 6,000.00
Diana Estates 3,600.00
Stone Creek 6,000.00
Sandalwood 1,752.00
E. Main Well Site 3,120.00
TOTAL - Group 4 Annual Amt. 36,084
TOTAL-Extra Services @ $30,000 per Year 30,000

TOTAL ANNUAL AMOUNT
Groups 2, 4 & Extra Services 185,856

GRAND TOTAL AMOUNT
TWO-YEAR AGREEMENT 371,712
Medallion Landscape Management, LLC
Maintenance Service Agreement
Exhibit B- Schedule of Compensation
January 1, 2024 - December 31, 2025
21

43 EXHIBIT B-SCHEDULE OF COMPENSATION
January 1, 2024-December 31, 2025

EXTRA SERVICES HOURLY RATES
Extra Work – All Locations Hourly Rate
Labor including work
truck/tools
Laborer $
Skilled Technician $
Supervisor $
Emergency/After Hour
Response
$
Other (describe) $
Equipment Hourly Rate
Spray equipment $
Tractor with implements $
Slit seeder $
Mower $
Other (describe) $
Supplies
Materials mark up over cost %

THIS FORM MUST BE USED WHEN SUBMITTING PROPOSAL

48.00 95.00

95.00 90.00

50.00 0 - included
0 - included
0 - included
15%
–
22 X

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EXHIBIT C

SCHEDULE OF PERFORMANCE
All landscape maintenance services are to be scheduled with the City of Morgan Hill's Maintenance Manager or other designated City maintenance staff.

19 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND OCTOBER 2023

FINANCIAL AND INVESTMENT REPORTS

RECOMMENDATION(S)
Accept and file report.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2022-2023 Strategic Priorities
Fiscal Sustainability
Community Outreach, Engagement, and Messaging
REPORT NARRATIVE:

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

October 2023 Financial Report
The Revenue and Expense Summary through October 2023 is included on the first page of the monthly financial report. Overall, General Fund revenues total $9.5 million or about 18% of the budget as some of the major revenue categories are received later in the fiscal year. Expenditures, including encumbrances, amounted to $20.6 million, of which approximately $4.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $19.2 million. This represents an increase of $1.4 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.0 million mainly due to new programs such as Innovative Transit, continued recovery in Recreation Services, as well as overall cost increases.

Budget Update
There has been no material change to the City’s revenue since the last budget update to the Council on November 1, 2023. For water revenue, Morgan Hill residents consumed about 2% less water through October compared to the prior three-year

19 average. As such, no revenue stabilization water rate was implemented.

COMMUNITY ENGAGEMENT:

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

ALTERNATIVE ACTIONS:

No alternative action is recommended, as this is a monthly financial report on City transactions which have already occurred.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

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

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

FISCAL AND RESOURCE IMPACT:

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

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.

FINANCE DEPARTMENT

CITY OF MORGAN HILL
October 31, 2023 - 33% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED OCTOBER 2023 – 33% OF YEAR COMPLETE  General Fund – Revenues through October totaled $9.5 million, or about 18% of the budgeted revenues as some of the major revenue categories such as property tax are received later in the fiscal year. With respect to the property tax revenue forecast, the County estimates the City will receive approximately $18.8 million in property tax revenue for the current fiscal year, slightly more than the budget of $18.5 million. As for sales tax, HdL, the City's sales tax consultant revised the City's current fiscal year sales tax revenue estimate, before tax rebates, to $12.5 million, a downward revision of about $0.2 million from the current year budget, partially attributable to falling gas prices, lower household discretionary spending, and weaker consumer confidence.

The chart below shows historical General Fund revenues by major revenue category from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of October 31, 2023.

General Fund expenditures and encumbrances through October totaled $20.6 million, of which approximately $4.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $19.2 million. This represents an increase of $1.4 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.0 million mainly due to new programs such as Innovative Transit, continued recovery in Recreation Services, as well as overall cost increases.  Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of approximately $1.4 million as of October 31, 2023. Recreation Services revenues continue to recover from the pandemic and on target with budget. $14.5 $16.0 $16.7 $18.1 $18.5
$9.7 $11.0 $12.9 $12.7 $12.7 $4.6
$4.4
$5.9 $5.7 $5.8 $8.3 $5.7
$7.5 $9.3 $10.0
$3.6
$9.7
$9.1 $6.6 $6.5
$40.6
$46.8
$52.1 $52.4 $53.5
$9.5
0 10
20 30
40 50
60 FY19-20 FY20-21 FY21-22 FY22-23 Budget
FY23-24
YTD
FY23-24
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED OCTOBER 2023 – 33% OF YEAR COMPLETE The chart below shows the historical net impact of Recreation Operations to the general fund.

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

The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
 Development Services Fund – Revenues through October totaled $1.5 million compared to prior year to date amount of approximately $2.5 million. Expenditures, including encumbrances, totaled $2.0 million.
 Debt Service Funds – Expenditures through October totaled $2,510. The debt service for the first half of the year includes both interest and principal, while the second half of the year will include interest only. Debt service payments were all scheduled when the bonds were issued and are budgeted for in the months delineated in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues.
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Budget
Millions (S)
Historical Net GF Impact

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED OCTOBER 2023 – 33% OF YEAR COMPLETE  Wastewater Operations – Revenues through October 31, 2023 totaled $3.9 million. Expenditures and outstanding encumbrances totaled $4.4 million or 28% of the budget. The table below shows historical Wastewater Operations revenues and expenditures from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of October 31, 2023.
(amount in millions) FY19‐20 FY20‐21 FY21‐22 FY22‐23
Budget
FY23‐24
YTD
FY23‐24
Revenues 11.9               13.3             14.9                         15.3              15.6                3.9 Expenditures              12.3            13.3 14.8                         16.0              15.6                4.4 Operating Margin               (0.4)              ‐ 0.1                            (0.7)                ‐              (0.5) Operating Margin
without Encumbrances                ‐ (0.1)                 0.1                 (0.7)                  ‐                 (0.4)  Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through October 31, 2023 totaled $5.6 million. Water Operations expenditures, including outstanding encumbrances, totaled $6.5 million. Morgan Hill residents consumed about 2% less water through October compared to the prior three-year average. As such, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of October 31, 2023. (amount in millions) FY19‐20 FY20‐21 FY21‐22
Un‐audited
FY22‐23
Budget
FY23‐24
YTD
FY23‐24
Revenues 15.3               16.5             16.0                         18.1               19.8                 5.6 Expenditures              16.4            16.5 15.2                         18.0               20.3                 6.5 Operating Margin               (1.1) ‐              0.8                             0.1                (0.5)               (0.9) Operating Margin
without Encumbrances                ‐                (0.1) 0.8                                 0.1                (0.5)                 (0.1)  Investments – One security was called, and one new security was purchased. Total interest earnings received on investments were $420,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 9,539,157 $ 18% $ 20,634,694 34%
Development Services 1,463,173 23% 2,033,588 32%
Housing Successor Agency 92,668 39% 745,781 64%
Wastewater Operations 3,854,392 25% 4,422,240 28%
Wastewater Other 2,836,219 29% 5,216,456 12%
Water Operations 5,642,330 29% 6,542,383 32%
Water Other 2,663,279 31% 1,758,156 10%
Other Special Revenues * 1,774,058 21% 2,177,258 22%
Capital Projects & Streets 3,034,710 23% 23,899,988 55% Debt Service 228,604 34% 2,510 0%
Internal Service 3,814,827 31% 5,213,197 38%
TOTAL FOR ALL FUNDS 34,943,417 $ 24% $ 72,646,251 32%
* Includes all Special Revenue Funds except Development Services Fund, Street Funds, and Housing Successor Agency.

REVENUES EXPENSES
0% 10% 20% 30% 40% 50% 60% 70%
General
Development
Services
Housing
Successor
Agency
Wastewater
Operations
Wastewater Other
Water Operations
Water Other
Other Special
Revenues *
Capital Projects
& Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
October 31, 2023 - 33% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
33%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 18,472,000 $ 659,718 $ 4% 655,923 $ 1%
Sales Tax 12,673,967 2,086,612 17% 1,972,719 6%
Franchise Tax 2,983,800 610,729 21% 438,964 39%
Hotel Tax 2,800,000 714,264 26% 762,662 -6%
Other Agencies 1,011,233 182,976 18% 262,974 -30%
Service Charges 10,036,079 3,458,705 35% 3,047,214 14%
Interest/Other 2,143,687 875,692 41% 583,747 50%
Transfers In 3,342,540 950,463 28% 917,438 4%
TOTAL REVENUES 53,463,306 $ 9,539,157 $ 18% 8,641,641 $ 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
October 31, 2023 - 33% of Year Complete
33%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 6,489,162 $ 2,358,649 36% 2, $ 475,307 -5% Community Services 18,016,113 7,060,430 39% 6, 472,464 9% Police 22,995,404 7,438,401 32% 6, 602,095 13%
Fire 9,139,905 3,342,624 37% 3, 211,274 4%
Transfers Out 3,333,767 434,589 13% 429,105 1%
TOTAL EXPENDITURES $ 59,974,351 $ 20,634,694 34% 19, $ 190,245 8% 0% 10% 20% 30% 40% 50%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
October 31, 2023 - 33% of Year Complete
33%

City of Morgan Hill
Recreation Report - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete
% of
Budget October 2023 YTD Budget
Revenues
Membership Services & Rec Programs 5,656,265 $ 425,760 $ 2,098,498 $ Facility Rentals 1,203,269 61,886 482,401
Community Services 152,498 2,434 9,980
Transfers in 75,000 6,250 25,000
Total Revenues $ 7,087,032 $ 496,331 $ 2,615,879 37%
Less: Expenditures
Membership & Program Services $ 7,572,987 $ 507,376 $ 2,241,372 Facility Rentals 573,524 51,277 176,374
Community Services 694,975 50,441 163,488
Total Expenditures $ 8,841,487 $ 609,093 $ 2,581,234 29% Net Impact without encumbrances $ (1,754,455) $ (112,762) $ 34,645 Encumbrances - - 1,466,313
Net Impact with encumbrances $ (1,754,455) $ (112,762) $ (1,431,668)

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

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

LAIF ‐ $0.3M
<1%
CA Class ‐ $15.4M
8%
Treasury  ‐ $13.2M
7%
Money Market ‐
$1.2M
1%
Federal Agency Issues ‐
$143.3M
78%
Certificate of Deposits ‐
$1.2M
1%
Bond Reserves/Trust ‐
$8.1M
4%
Cash & Other Deposits ‐ $2.0M
1%
Investment Portfolio Composition ‐ $184.7 Million
LAIF ‐ $0.3M
CA Class ‐ $15.4M
Treasury  ‐ $13.2M
Money Market ‐ $1.2M
Federal Agency Issues ‐
$143.3M
Certificate of Deposits ‐
$1.2M
Bond Reserves/Trust ‐
$8.1M
Cash & Other Deposits ‐
$2.0M
General Fund, $29.5M Community
Development, $1.2M
Housing Successor
Agency/ CDBG, $3.9M
Water ‐ Operations,
$3.3M
Water Other, $26.0M
Sewer ‐ Operations,
Sewer Other, $42.8M $1.7M
Other Special Revenue,
$9.8M
Streets and Capital
Projects (except RDA),
$41.1M
Debt Service, $0.6M
Internal Service,
$23.9M
Agency Funds (assessment
dists./refundable deposits), $0.9M
Cash Balances by Fund Type ‐ $184.7 Million

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

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

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Oct‐21
Nov‐21
Dec‐21
Jan‐22
Feb‐22
Mar‐22
Apr‐22
May‐22
Jun‐22
Jul‐22
Aug‐22
Sep‐22
Oct‐22
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Yield Portfolio vs. Benchmarks
LAIF City 2 Yr US‐Treasury

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%
660
680
700
720
740
760
780
800
820
840
Oct‐21
Nov‐21
Dec‐21
Jan‐22
Feb‐22
Mar‐22
Apr‐22
May‐22
Jun‐22
Jul‐22
Aug‐22
Sep‐22
Oct‐22
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield

City of Morgan Hill
Investment Portfolio Detail
As of October 31, 2023
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $             258,174 $              258,174 0.14% $          254,639 3.67% California C L A S S          15,372,775            15,372,775 8.32% 15,372,775 $      5.51% City Managed
Treasury Note 91282CCZ2 10/8/2021 1,987,656                           1,992,769 1.08% 1,785,620           1.00% 9/30/2026 9/30/2026 Treasury Note 91282CDR9 1/4/2022             1,999,141              1,999,928 1.08% 1,984,680           0.77% 12/31/2023 12/31/2023 Treasury Note 91282CDR9 1/19/2022 1,989,688                           1,999,115 1.08% 1,984,680           1.02% 12/31/2023 12/31/2023 Treasury Note 91282CDV0 2/11/2022 1,977,969                           1,997,181 1.08% 1,977,660           1.44% 1/31/2024 1/31/2024 Treasury Note 9128286R6 3/28/2022 1,996,320                           1,999,123 1.08% 1,968,040           2.34% 4/30/2024 4/30/2024 Treasury Note 912828U24 6/13/2022 1,904,688                           1,934,473 1.05% 1,837,740           3.16% 11/15/2026 11/15/2026 Treasury Note 91282CAW1 11/17/2022 1,246,984                           1,297,809 0.70% 1,297,478           4.49% 11/15/2023 11/15/2023 FFCB Bond 3133ELVX9 4/8/2020             2,000,000              2,000,000 1.08% 1,959,560           0.88% 4/8/2024 4/8/2024 FFCB Bond 3133ELC28 5/27/2020 2,000,000                           2,000,000 1.08% 1,861,460           0.73% 11/27/2023 5/27/2025 FHLMC Bond 3134GVYN2 6/3/2020             2,000,000              2,000,000 1.08% 1,901,360           0.60% 12/3/2023 12/3/2024 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000                           2,000,000 1.08% 1,829,200           0.60% 4/20/2024 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000                           2,000,000 1.08% 1,828,900           0.63% 4/27/2024 10/27/2025 FHLMC Bond 3134GW6E1 11/2/2020 2,000,000                           2,000,000 1.08% 1,999,720           0.32% 11/2/2023 11/2/2023 FFCB Bond 3133EMFR8 11/3/2020 2,000,000                           2,000,000 1.08% 1,824,380           0.54% 11/3/2023 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000                           2,000,000 1.08% 1,825,200           0.65% 11/18/2023 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000                           2,000,000 1.08% 1,823,600           0.64% 11/24/2023 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000                           1,000,000 0.54%             911,030 0.60% 11/24/2023 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000                           3,000,000 1.62% 2,734,200           0.63% 11/25/2023 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000                           2,000,000 1.08% 1,823,560           0.65% 11/26/2023 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000                           2,000,000 1.08% 1,809,280           0.47% 12/22/2023 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000                           2,000,000 1.08% 1,809,420           0.63% 1/22/2024 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000                           2,000,000 1.08% 1,805,140           0.55% 1/28/2024 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000                           2,000,000 1.08% 1,809,320           0.65% 1/28/2024 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000                           2,000,000 1.08% 1,808,720           0.75% 2/24/2024 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000                           2,000,000 1.08% 1,804,660           0.66% 2/25/2024 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000                           2,000,000 1.08% 1,804,020           0.65% 2/26/2024 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000                           2,000,000 1.08% 1,810,100           0.85% 3/10/2024 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000                           2,000,000 1.08% 1,802,440           0.70% 3/16/2024 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000                           2,000,000 1.08% 1,806,840           0.80% 3/16/2024 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021             2,000,000              2,000,000 1.08% 1,804,620           1.08% 12/9/2023 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000                           2,000,000 1.08% 1,797,060           1.00% 12/30/2023 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000                           3,000,000 1.62% 2,698,680           1.13% 1/15/2024 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000                           2,000,000 1.08% 1,855,520           0.85% 1/15/2024 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000                           2,000,000 1.08% 1,774,800           0.80% 2/26/2024 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000                           3,000,000 1.62% 2,677,710           1.00% 2/26/2024 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000                           2,000,000 1.08% 1,779,980           0.90% 2/26/2024 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340                           2,059,199 1.11% 1,830,960           0.82% 3/11/2024 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960                           1,990,160 1.08% 1,773,360           0.98% 3/10/2024 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000                           3,000,000 1.62% 2,677,710           1.13% 3/29/2024 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000                           2,000,000 1.08% 1,779,340           0.88% 3/30/2024 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000                           3,000,000 1.62% 2,671,530           1.05% 3/30/2024 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000                           3,000,000 1.62% 2,669,130           1.02% 3/30/2024 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000                           2,000,000 1.08% 1,776,940           1.00% 4/19/2024 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000                           2,000,000 1.08% 1,787,340           1.30% 11/18/2023 11/18/2026 FHLB Bond 3130AQFL2 12/29/2021 2,000,000                           2,000,000 1.08% 1,984,820           0.75% 12/29/2023 12/29/2023 FHLB Bond 3130AQHU0 1/19/2022 2,000,000                           2,000,000 1.08% 1,824,700           1.74% 1/19/2024 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000                           2,000,000 1.08% 1,887,100           1.51% 1/25/2024 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000                           2,000,000 1.08% 1,916,220           3.48% 3/10/2024 3/10/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000                           2,000,000 1.08% 1,931,520           3.28% 12/15/2023 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000                           2,000,000 1.08% 1,923,780           4.30% 1/28/2024 7/28/2027 FNMA Bond 3135GACZ2 11/25/2022 2,000,000                           2,000,000 1.08% 1,990,580           5.40% 11/25/2023 11/25/2024 FHLMC Bond 3134GY4B5 11/28/2022 2,000,000                           2,000,000 1.08% 1,987,960           5.00% 11/15/2023 8/26/2024 FHLB Bond 3130AUFT6 1/27/2023 2,000,000                           2,000,000 1.08% 1,989,580           5.43% 1/27/2024 1/27/2025 FHLB Bond 3130AUP32 1/27/2023 2,250,000                           2,250,000 1.22% 2,219,715           5.98% 1/27/2024 1/27/2028 FHLMCMTN Bond 3134GYGB2 1/30/2023 2,000,000                           2,000,000 1.08% 1,955,240           5.20% 1/26/2024 1/26/2028

Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLMCMTN Bond 3134GYG22 2/16/2023 3,000,000                           3,000,000 1.62% 2,951,760           5.13% 11/16/2023 11/16/2026 FHLB Bond 3130AUTZ7 2/24/2023 2,000,000                           2,000,000 1.08% 1,978,040           6.44% 2/24/2024 2/24/2028 FHLB Bond 3130AUZH0 3/6/2023 2,000,000                           2,000,000 1.08% 1,992,520           6.33% 12/6/2023 3/6/2026 FHLB Bond 3130AUZZ0 3/13/2023 2,000,000                           2,000,000 1.08% 1,989,600           6.23% 12/13/2023 3/13/2026 FHLB Bond 3130AV2Z4 3/15/2023 2,000,000                           2,000,000 1.08% 1,998,060           5.35% 3/15/2024 3/15/2024 FHLB Bond 3130AV3P5 3/20/2023 2,000,000                           2,000,000 1.08% 1,992,840           5.50% 3/20/2024 9/20/2024 FHLB Bond 3130AVK92 4/5/2023 3,000,000                           3,000,000 1.62% 2,991,840           5.00% 4/5/2024 4/5/2024 FHLB Bond 3130AVL83 4/6/2023 2,000,000                           2,000,000 1.08% 1,988,360           5.20% 1/7/2024 10/7/2024 FHLB Bond 3130AVQ96 4/17/2023 2,000,000                           2,000,000 1.08% 1,995,160           5.15% 1/17/2024 4/17/2024 FHLB Bond 3130AVNT5 4/28/2023 1,000,000                           1,000,000 0.54% 994,100              5.50% 11/25/2023 4/25/2025 FHLMCMTN Bond 3134GYQZ8 5/11/2023 3,000,000                           3,000,000 1.62% 2,983,530           6.09% 2/11/2024 5/11/2026 FHLMCMTN Bond 3134GYSV5 5/25/2023 2,000,917                           2,000,000 1.08% 1,998,160           5.50% 11/22/2023 06/18/2024 FHLB Bond 3130AWF62 6/13/2023 2,000,000                           2,000,000 1.08% 1,990,700           5.50% 12/13/2023 12/13/2024 FHLB Bond 3130AWEB2 6/26/2023 2,000,000                           2,000,000 1.08% 1,991,120           5.55% 3/26/2024 12/26/2024 FHLB Bond 3130AWHD5 6/29/2023 2,000,000                           2,000,000 1.08% 1,982,020           5.90% 12/29/2023 6/29/2027 FHLMCMTN Bond 3134GYUY6 7/12/2023 2,000,000                           2,000,000 1.08% 1,977,920           6.29% 1/12/2024 7/12/2028 FHLMCMTN Bond 3134GYWC2 7/26/2023 2,000,000                           2,000,000 1.08% 1,977,380           6.00% 1/26/2024 7/26/2028 FHLMCMTN Bond 3134GYW57 7/27/2023 2,000,000                           2,000,000 1.08% 1,989,480           6.00% 11/27/2023 7/27/2026 FHLMCMTN Bond 3134H1CJ0 9/28/2023 2,000,000                           2,000,000 1.08% 1,981,940           6.25% 12/28/2023 9/28/2028 FHLMCMTN Bond 3134H1HC0 10/30/2023 2,000,000                           2,000,000 1.08% 1,988,760           6.38% 1/30/2024 10/30/2028 CD ‐ Ally Bank 02007GM83 3/30/2023                250,000                  250,000 0.14%             249,560 5.15% 3/28/2024 3/28/2024 CD ‐ Western Alliance Bank 95763PLA7 3/30/2023                250,000                  250,000 0.14%             249,933 5.30% 1/2/2024 1/2/2024 CD ‐ Zions Bancorp 98970LC43 3/31/2023                250,000                  250,000 0.14%             249,435 5.40% 9/27/2024 9/27/2024 CD ‐ Pacific Western Bank 69506YYD5 4/5/2023                250,000                  250,000 0.14%             250,128 5.65% 4/5/2024 4/5/2028 CD ‐ US Bank 90354KBR8 5/17/2023                250,000                  250,000 0.14%             249,298 5.10% 5/16/2024 5/16/2024 Sub Total/Average $     157,689,662 $       157,769,758 85.40% 149,175,546 $   2.68% US Bank Money Market $             184,895 $              184,895 0.10% $          184,895 5.24% WFB Money Market $         1,012,234 $           1,012,234 0.55% 1,012,234 $        5.24% Total City Managed/Average $     174,517,740 $       174,597,836 85.64% 166,000,089 $   2.95% Bond Reserve Accounts ‐ Held By Trustees $             928,020 $              928,020 0.50% $          928,020 Cash/Deposits $         2,029,254 $           2,029,254 1.10% 2,029,254 $ PARS and CALPERS CERBT Trust $         7,187,404 $           7,187,404 3.89% 7,300,464 $ GRAND TOTAL/AVERAGE $     184,662,417 $       184,742,513 99% 176,257,826 $

CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF OCTOBER 31, 2023
FOR THE FISCAL YEAR OF 2023-24
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 3.67% $ 258,174 0.14% $ 254,639 California CLASS All Funds Pooled 5.51% 15,372,775 8.32% 15,372,775 Federal Issues All Funds Pooled 2.66% 143,299,360 77.57% 135,091,295 Treasury All Funds Pooled 1.89% 13,220,398 7.16% 12,835,898 Certificate of Deposits All Funds Pooled 5.32% 1,250,000 0.68% 1,248,353 Dreyfus Treas Cash Mgmt & WFB MMA All Funds Pooled 5.24% 1,197,129 0.65% 1,197,129 SUBTOTAL $ 174,597,836 94.51% 166,000,089 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 4.47% 245,353 0.13% 245,353 Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 4.47% 312,267 0.17% 312,267 BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 4.98% 103,884 0.06% 103,884 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 4.47% 0.14% 266,516 266,516 SUBTOTAL 928,020 0.50% 928,020
Other Cash/Deposits
General Checking All Funds 1,983,154 1.07% 1,983,154
Workers' Comp Administrators Workers' Comp 30,000 0.02% 30,000 Petty Cash & Emergency Cash General Fund 16,100 0.01% 16,100 CALPERS CERBT - OPEB Trust 4,887,404 2.65% 4,908,293
PARS - PENSION Trust 2,300,000 1.24% 2,392,171
SUBTOTAL 9,216,658 4.99% 9,329,718
Total Cash and Investments $ 184,742,513 100.00% $ 176,257,826

CASH ACTIVITY SUMMARY
FY 2023-24
07/01/2023 Change in 10/31/2023
Fund Type Balance Cash Balance Balance
General Fund $ 32,352,753 $ (2,823,144) $ 29,529,608
Community Development 1,831,559 (632,228) 1,199,331
Housing Successor Agency/ CDBG 4,202,736 (309,072) 3,893,664 Water - Operations 2,585,170 663,628 3,248,798
Water Other 23,673,105 2,352,496 26,025,601
Sewer - Operations 907,428 788,189 1,695,618
Sewer Other 44,135,046 (1,299,296) 42,835,751
Other Special Revenue 8,827,861 930,339 9,758,201
Streets and Capital Projects (except RDA) 40,486,238 663,250 41,149,488 Debt Service 342,534 226,148 568,682
Internal Service 25,139,787 (1,233,356) 23,906,430
Agency Funds (assessment dists./refundable deposits) 8,515,969 (7,584,627) 931,342 Total $ 193,000,187 $ (8,257,674) $ 184,742,513
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.

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

Prepared by: ____________________________________ Approved by:

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

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 15,245,000 15,745,000 $ 617,874 4% $ 594,999 $ 22,874 4% Property Tax - RPTTF Residual Distribution 2,527,000 2,527,000 n/a - - n/a - Property Tax - Supplemental Roll 200,000 200,000 41,844 21% 60,924 (19,080) -31% Sales Tax 12,218,967 12,218,967 2,017,523 17% 1,937,351 80,172 4% Public Safety Sales Tax 455,000 455,000 69,089 15% 35,368 33,721 95% Transient Occupancy Taxes 2,800,000 2,800,000 714,264 26% 762,662 (48,398) -6% Franchise (Refuse ,Cable ,PG&E) 2,873,800 2,983,800 610,729 20% 438,964 171,765 39% Property Transfer Tax 510,000 510,000 118,882 23% 124,553 (5,671) -5% TOTAL TAXES 36,829,767 37,439,767 4,190,204 11% 3,954,820 235,383 6%

LICENSES/PERMITS
Business License 170,000 170,000 152,263 90% 120,567 31,696 26% Other Permits 53,975 53,975 24% 20,918 12,726 (8,192) -39% TOTAL LICENSES/PERMITS 223,975 223,975 164,990 74% 141,485 23,504 17%

FINES AND PENALTIES
Parking Enforcement 3,019 3,019 3,594 119% 1,845 1,749 95% Bails & Fines 47,875 47,875 18,190 38% 7,565 10,625 140% Administrative Citations 20,000 20,000 15,733 79% 1,285 14,448 1124% TOTAL FINES AND PENALTIES 70,894 70,894 37,517 53% 10,695 26,822 251%

OTHER AGENCIES
Motor Vehicle in-Lieu 40,800 40,800 n/a - - n/a -
Other Revenue - Other Agencies 971,089 1,011,233 18% 262,974 182,976 (79,998) -30% TOTAL OTHER AGENCIES 1,011,889 1,052,033 182,976 17% 262,974 (79,998) -30%

CHARGES CURRENT SERVICES
Police False Alarm Charge 33,248 33,248 9,936 30% 8,072 1,865 23% Business License Application Review 53,000 83,000 59,194 71% 13,643 45,552 334% Membership Services & Rec Programs 5,656,265 5,656,265 2,098,498 37% 1,778,099 320,398 18% Facility Rentals 1,203,269 1,203,269 482,401 40% 305,185 177,216 58% Community Services 152,498 152,498 9,980 7% 8,637 1,343 16% General Administration Overhead 1,822,869 1,822,869 590,706 32% 591,803 (1,096) 0% Other Charges Current Services 1,084,930 1,084,930 19% 341,776 207,989 (133,787) -39% TOTAL CURRENT SERVICES 10,006,079 10,036,079 3,458,705 34% 3,047,214 411,490 14%

OTHER REVENUE
Use of money/property 583,850 683,850 459,330 67% 253,592 205,738 81% Other Revenues 234,168 614,168 15% 53,421 94,973 41,552 78% TOTAL OTHER REVENUE 818,018 1,298,018 554,303 43% 307,013 247,290 81%

TRANSFERS IN
One Time Transfer 180,000 180,000 60,000 33% 60,000 0% - Public Safety Facilities Fund 50,000 50,000 16,667 33% 16,667 0% - Supplemental Law Enforcement Fund 100,000 100,000 n/a - - n/a - Countywide Solid Waste 373,000 468,680 124,333 27% 118,333 6,000 5% Streets 949,760 949,760 218,096 23% 203,737 14,359 7%
Park Maintenance 650,000 650,000 216,667 33% 216,668 0% (1) Sewer Operations 394,000 394,000 131,333 33% 125,000 6,333 5% Water Operations 394,000 394,000 131,333 33% 125,000 6,333 5% Open Space 81,100 81,100 27,033 33% 27,033 n/a -
Park Development 75,000 75,000 25,000 33% - 25,000 n/a
TOTAL TRANSFERS IN 3,246,860 3,342,540 950,463 28% 917,438 33,024 4% TOTAL GENERAL FUND 52,207,482 53,463,306 9,539,157 18% 8,641,641 897,517 10%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 954,952 954,952 216,741 23% 202,993 13,748 7% Interest / Other Revenue/Other Charges 7 78 8 1,355 1738% 744 611 82% 202 STREET MAINTENANCE 955,030 955,030 218,096 23% 203,737 14,359 7%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 1,905 1,905 2,940 154% 871 2,069 237%
Police Grant/SLEF/JAG 100,000 100,000 94,492 94% 73,605 20,888 28% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 101,905 101,905 97,433 96% 74,476 22,957 31% 206 DEVELOPMENT SERVICES
Building Fees 3,455,600 3,495,600 1,017,076 29% 1,380,843 (363,767) -26% Planning Fees 1,645,444 1,645,444 223,249 14% 179,086 44,163 25% Engineering Fees 1,190,852 1,190,852 170,406 14% 758,138 (587,732) -78% Other Revenue/Current Charges - - n/a 147,817 52,442 (95,375) -65% 206 DEVELOPMENT SERVICES 6,291,896 6,331,896 1,463,173 23% 2,465,884 (1,002,711) -41% 207 LONG RANGE PLANNING 1,013,392 1,013,392 251,314 25% 383,055 -34% (131,741) 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 325 325 174% 223 564 341 153% 215 and 216 HCD BLOCK GRANT 325 325 564 174% 223 341 153% 225 ASSET SEIZURE 1,298 1,298 865 67% 360 505 140%
229 LIGHTING AND LANDSCAPE 200,028 200,028 1,906 1% 579 1,327 229% 230 COMMUNITY FACILITIES DISTRICT 37,914 37,914 1,337 4% 341 996 292% 232 ENVIRONMENTAL PROGRAMS 590,223 590,223 190,211 32% 180,279 9,932 6% 234 MOBILE HOME PARK RENT STAB. 584 584 644 110% 790 (145) -18% 236 HOUSING MITIGATION 4,456,924 4,456,924 699,116 16% 216,700 482,416 223% 240 EMPLOYEE ASSISTANCE 20,889 20,889 2,686 13% 2,524 162 6% 246 COUNTYWIDE SOLID WASTE 1,645,138 1,944,000 526,793 27% 401,901 124,892 31% 247 ENVIRONMENT REMEDIATION 1,358 1,358 1,188 88% 472 716 152% 255 HOUSING SUCCESSOR AGENCY 239,202 239,202 92,668 39% 184,795 (92,128) -50% TOTAL SPECIAL REVENUE FUNDS 15,556,107 15,894,969 3,547,995 22% 4,116,116 (568,121) -14%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,673,505 1,673,505 144,019 9% 1,337,102 (1,193,083) -89% 302 PARK MAINTENANCE 83,038 83,038 31,003 37% 10,153 20,851 205% 303 LOCAL DRAINAGE 447,897 447,897 211,245 47% 682,759 (471,514) -69% 304 LOCAL DRAINAGE/NON AB1600 30,901 30,901 11,974 39% 68,841 (56,866) -83% 306 AGRICULTURE & OPEN SPACE PRESERVATION 4,036 4,036 52,690 1306% 26,326 26,364 100% 308 STREET CIP 3,926,656 3,926,656 782,439 20% 988,911 (206,472) -21% 309 TRAFFIC IMPACT 1,276,925 1,276,925 191,304 15% 54,044 137,260 254% 315 PUBLIC SAFETY FACILITIES IMPACT 801,703 801,703 121,539 15% 36,674 84,865 231% 346 PUBLIC FACILITIES NON-AB1600 822,102 822,102 124,605 15% 370,020 (245,415) -66% 347 PUBLIC FACILITIES IMPACT 176,602 176,602 35,309 20% 10,279 25,030 244% 348 LIBRARY 657,457 657,457 111,604 17% 30,752 80,852 263% 350 UNDERGROUNDING 22,520 22,520 14,497 64% 5,764 8,733 152% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY 492,717 492,717 752 0% 208,410 (207,658) -100% 360 COMMUNITY/REC IMPACT FUND 1,142,697 1,142,697 192,904 17% 52,149 140,754 270% 375 QUIMBY FEE 610,860 610,860 790,728 129% 1,538,915 (748,186) -49% TOTAL CAPITAL PROJECTS FUNDS 12,169,616 12,169,616 2,816,614 23% 5,421,098 (2,604,483) -48%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 290,850 290,850 98,741 34% 98,046 694 1% 441 POLICE FACILITY BOND 387,792 387,792 129,863 33% 129,359 504 0% TOTAL DEBT SERVICE FUNDS 678,642 678,642 228,604 34% 227,406 1,198 1%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 15,200,000 15,200,000 3,758,590 25% 3,766,985 (8,394) 0% Interest Income/Transfers 39,704 39,704 16,312 41% 10,469 5,842 56% Other Revenue/Current Charges 329,403 329,403 79,490 24% 150,280 (70,789) -47% 640 WASTEWATER OPERATION 15,569,107 15,569,107 3,854,392 25% 3,927,734 (73,341) -2% 641 WASTEWATER EXPANSION
Interest Income 40,173 40,173 189,751 472% 75,187 114,565 152% Development Impact Fee 4,388,986 4,388,986 713,863 16% 216,973 496,890 229% Transfer From-643 (Sewer Replacement) - - - n/a 6,429,447 (6,429,447) -100% 641 WASTEWATER EXPANSION 4,429,159 4,429,159 903,614 20% 6,721,607 (5,817,993) -87% 642 WASTEWATER RATE STABILIZATION 192,000 192,000 89,165 46% 26,400 62,765 238% 643 WASTEWATER CAPITAL PROJECT 5,204,512 5,204,512 1,843,439 35% 2,245,311 (401,872) -18% TOTAL SEWER FUNDS 25,394,778 25,394,778 6,690,611 26% 12,921,052 (6,230,441) -48% 650 WATER OPERATION
Water Sales 18,500,000 18,500,000 5,162,321 28% 4,829,137 333,184 7% Meter Install & Service 50,000 50,000 46,653 93% 57,837 (11,184) -19% Transfers-In / Interest Income 606,318 606,318 223,717 37% 196,783 26,934 14% Other Revenue/Current Charges 630,464 630,464 209,638 33% 294,760 (85,121) -29% 650 WATER OPERATION 19,786,782 19,786,782 5,642,330 29% 5,378,517 263,812 5% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 28,855 28,855 26,361 91% 10,235 16,127 158% Development Impact Fee 1,720,216 1,720,216 179,424 10% 55,519 123,905 223% 651 WATER EXPANSION 1 1,749,071 ,749,071 205,785 12% 65,754 140,032 213% 652 WATER RATE STABILIZATION - - 28,382 n/a 11,232 153% 17,150 653 WATER CAPITAL PROJECT 6,948,348 6,948,348 2,429,112 35% 1,723,225 705,887 41% TOTAL WATER FUNDS 28,484,201 28,484,201 8,305,609 29% 7,178,728 1,126,881 16% TOTAL ENTERPRISE FUNDS 53,878,979 53,878,979 14,996,220 28% 20,099,780 (5,103,560) -25%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,493,922 2,493,922 836,303 34% 747,284 89,019 12% 740 BUILDING MAINTENANCE 1,675,215 1,675,215 558,962 33% 551,915 7,047 1% 741 BUILDING REPLACEMENT 859,973 859,973 314,259 37% 283,106 31,153 11% 745 CIP ADMINISTRATION 2,059,092 2,059,092 388,245 19% 536,618 (148,373) -28% 760 UNEMPLOYMENT INSURANCE 2,940 2,940 2,453 83% 1,051 1,402 133% 770 WORKERS COMPENSATION 997,442 997,442 289,431 29% 267,436 21,995 8% 790 EQUIPMENT REPLACEMENT 1,165,990 1,165,990 437,073 37% 373,777 63,296 17% 791EMPLOYEE BENEFITS 849,796 849,796 284,566 33% 269,998 14,568 5% 795 GENERAL LIABILITY INSURANCE 2,103,483 2,103,483 703,534 33% 660,966 42,567 6% TOTAL INTERNAL SERVICE FUNDS 12,207,853 12,207,853 3,814,827 31% 3,692,152 122,675 3% TOTAL FOR ALL FUNDS 146,698,679 $ $ 148,293,365 $ 34,943,417 24% $ 42,198,192 $ (7,254,775) -17%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 51,994 $ 435,652 $ 117,409 $ - $ 117,409 $ 27% 162,480 $ .

CITY ATTORNEY 68,538 1,081,241 262,799 116,497 379,296 35% 251,093 CITY MANAGER 61,052 886,041 209,381 37,365 246,746 28% 185,832 HUMAN RESOURCES 77,080 898,203 261,282 - 261,282 29% 259,759

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 45,441 628,281 174,222 - 174,222 28% 175,089 Elections 2,573 37,728 9,382 - 9,382 25% 3,528
COUNCIL SVCS & RECORDS MGMT 48,014 666,009 183,603 183,603 - 28% 178,617 FINANCE 199,130 2,522,016 632,432 537,882 1,170,313 46% 562,691 TOTAL ADMINISTRATION 505,808 6,489,162 1,666,906 691,743 2,358,649 36% 1,600,472 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 507,376 7,572,987 2,241,372 1,354,396 3,595,767 47% 1,993,600 Recreation Facility Rentals 51,277 573,524 176,374 39,728 216,102 38% 157,785 Innovative Transit 55,904 850,612 171,881 618,352 790,233 93% 87,133 Community Services 50,441 694,975 163,488 72,189 235,677 34% 173,260 Park Maintenance 115,774 1,560,828 339,777 68,634 408,411 26% 369,952 Environmental Services 50,765 705,264 108,935 4,446 113,381 16% 71,786 Countywide Solid Waste Program 33,583 583,892 120,248 - 120,248 21% 109,500 Street Maintenance 234,249 3,031,799 677,960 221,409 899,369 30% 683,361 Downtown Maintenance 20,938 345,237 78,482 28,937 107,419 31% 59,019 Cable Television 7,770 74,940 28,878 - 28,878 39% 5,872 COMMUNITY SERVICES 1,128,077 15,994,058 4,107,395 2,408,091 6,515,486 41% 3,711,269 CODE COMPLIANCE 16,962 340,153 58,720 - 58,720 17% 55,717 INFRASTRUCTURE PLANNING & CONGESTION MGMT 414,110 27,994 99,287 - 99,287 24% 97,796 ECONOMIC DEVELOPMENT PROGRAMS 100,189 1,267,792 330,380 56,559 386,938 31% 282,113 TOTAL COMMUNITY SERVICES 1,273,222 18,016,113 4,595,781 2,464,650 7,060,430 39% 4,146,895 III. PUBLIC SAFETY
POLICE
PD Administration 123,504 1,735,700 463,594 53,771 517,365 30% 546,229 Field Operations 935,998 11,150,613 3,506,151 37,604 3,543,755 32% 3,116,535 Support Services 223,466 3,585,524 919,002 583,800 1,502,802 42% 903,277 Emergency Services/Haz Mat 18,786 222,865 66,356 - 66,356 30% 63,599 Special Operations 303,700 4,098,765 1,198,225 - 1,198,225 29% 1,261,750 Dispatch Services 169,520 2,201,937 609,898 - 609,898 28% 630,497 POLICE 1,774,973 22,995,404 6,763,226 675,175 7,438,401 32% 6,521,887 FIRE 697,734 9,139,905 3,042,698 299,927 3,342,624 37% 2,841,750 TOTAL PUBLIC SAFETY 2,472,707 32,135,309 9,805,923 975,102 10,781,025 34% 9,363,637 IV. TRANSFERS
Other 108,647 3,333,767 434,589 - 434,589 13% 429,105
TOTAL TRANSFERS 108,647 3,333,767 434,589 434,589 - 13% 429,105 TOTAL GENERAL FUND 4,360,384 59,974,351 16,503,199 4,131,495 20,634,694 34% 15,540,108

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 433 954,952 219,827 - 219,827 23% 205,417 205 PUBLIC SAFETY/SUPP.LAW 107 101,289 430 - 430 0% 417 206 DEVELOPMENT SERVICES FUND
Planning 139,879 1,847,544 522,959 339 523,297 28% 501,212 Building 192,592 2,563,441 751,488 104,694 856,182 33% 653,598 Engineering 145,359 1,974,680 523,084 131,025 654,109 33% 491,196 206 DEVELOPMENT SERVICES FUND 477,829 6,385,665 1,797,530 236,058 2,033,588 32% 1,646,005 207 LONG RANGE PLANNING 64,858 1,581,133 269,971 18,178 288,149 18% 270,043 215/216 CDBG 7 83 28 - 33% 28 27
225 ASSET SEIZURE 65 782 261 - 33% 261 253
229 LIGHTING AND LANDSCAPE 4,658 234,554 42,667 8,121 50,789 22% 48,140 230 COMMUNITY FACILITIES DISTRICT 2,349 41,249 10,475 - 10,475 25% 11,828 232 ENVIRONMENT PROGRAMS 42,400 561,335 128,544 18,999 147,542 26% 140,151 234 MOBILE HOME PARK 76 907 302 - 33% 302 294
236 HOUSING MITIGATION 72,951 1,541,126 254,888 137,500 392,388 25% 265,784 240 EMPLOYEE ASSISTANCE 79 20,946 2,315 - 2,315 11% 4,237 246 COUNTYWIDE SOLID WASTE PROGRAM 31,083 2,078,493 262,418 1,022,161 1,284,580 62% 310,563 255 HOUSING SUCCESSOR AGENCY 54,730 1,172,110 424,947 320,833 745,781 64% 404,991 TOTAL SPECIAL REVENUE FUNDS 751,626 14,674,624 3,414,603 1,761,851 5,176,454 35% 3,326,143

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 227,411 2,285,298 349,861 135,673 485,534 21% 619,015 302 PARK MAINTENANCE 54,238 660,850 216,956 - 216,956 33% 217,868 303 LOCAL DRAINAGE 7,357 7,119,361 223,438 3,807,134 4,030,572 57% 687,010 304 LOCAL DRAIN. NON-AB1600 19,556 410,006 20,310 35,961 56,272 14% 13,563 306 AGRICULTURE & OPEN SPACE PRESERVATIO 247,600 8,133 32,533 - 32,533 13% 41,951 308 STREET CIP 1,613,976 5,499,004 1,642,347 2,759,124 4,401,471 80% 5,411,041 309 TRAFFIC IMPACT 36,787 5,827,301 188,472 3,748,052 3,936,525 68% 1,956,082 315 PUBLIC SAFETY FACILITIES IMPACT 55,982 10,717,603 293,047 9,259,832 9,552,879 89% 194,684 346 PUBLIC FAC.NON AB1600 40,806 1,321,382 50,825 13,711 64,536 5% 16,531 347 PUBLIC FACILITIES IMPACT 22,440 1,529,278 69,759 55,000 124,759 8% 9,718 348 LIBRARY IMPACT 18,529 222,349 74,116 - 74,116 33% 74,305 350 UNDERGROUNDING 98 1,194,738 392 - 392 0% 380
355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY 11,817 916,562 16,949 3,428 20,377 2% 6,789 360 COMM/REC CENTER IMPACT 1,331 2,756,259 92,245 575,810 668,055 24% 544,239 375 QUIMBY FEE - 1,403,605 15,184 - 15,184 1% 72,025
TOTAL CAPITAL PROJECTS FUNDS 2,118,462 42,111,196 3,286,435 20,393,726 23,680,161 56% 9,865,203

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 270 290,852 1,080 - 1,080 0% 234,549 441 POLICE FACILITY BOND DEBT 358 387,792 1,430 - 1,430 0% 315,882 TOTAL DEBT SERVICE FUNDS 628 678,644 2,510 - 2,510 0% 550,431

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended October 31, 2023
33% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 2,069,223 15,560,361 4,342,110 80,131 4,422,240 28% 4,493,325 641 WASTEWATER CAPITAL EXPANSION 151,885 26,223,607 473,128 460,544 933,671 4% 369,092 642 WASTEWATER RATE STABILIZATION 156 1,872 624 - 624 33% 606 643 WASTEWATER CAPITAL PROJECTS 215,292 17,522,286 1,182,047 3,100,114 4,282,161 24% 8,996,401 TOTAL SEWER FUND(S) 2,436,557 59,308,126 5,997,908 3,640,788 9,638,696 16% 13,859,424 WATER
Water Operations 1,183,447 18,485,381 5,411,057 717,245 6,128,302 33% 4,496,370 Utility Billing 78,454 1,192,638 283,377 40,380 323,757 27% 278,316 Water Conservation 28,118 644,730 90,324 - 90,324 14% 79,664 650 WATER OPERATIONS 1,290,018 20,322,749 5,784,758 757,625 6,542,383 32% 4,854,350 651 WATER CAPITAL EXPANSION 61,775 2,479,364 243,097 18,077 261,174 11% 238,907 652 WATER RATE STABILIZATION 117 1,403 468 - 33% 468 454 653 WATER-CAPITAL PROJECTS 559,734 16,010,730 600,418 896,096 9 1,496,514 % 61,494 TOTAL WATER FUND(S) 1,911,645 38,814,246 6,628,740 1,671,799 8,300,538 21% 5,155,205 TOTAL ENTERPRISE FUNDS 4,348,202 98,122,372 12,626,648 5,312,587 17,939,235 18% 19,014,629

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 178,654 2,683,931 825,101 43,017 868,118 32% 509,974 740 BUILDING MAINTENANCE 144,410 1,781,790 440,035 85,137 525,172 29% 397,189 741 BUILDING REPLACEMENT - 1,501,100 31,730 19,761 51,491 3% 68,526 745 CIP ADMINISTRATION 146,995 2,061,046 535,241 1,666 536,907 26% 569,223 760 UNEMPLOYMENT - 15,000 11,826 - 11,826 79% -
770 WORKERS COMPENSATION 16,120 1,048,265 609,012 - 609,012 58% 535,143 790 EQUIPMENT REPLACEMENT - 1,245,240 77,219 144,002 221,222 18% 234,232 791 EMPLOYEE BENEFITS FUND 32,874 750,000 90,740 - 90,740 12% 178,440 795 GEN. LIABILITY INSURANCE 10,112 2,551,193 2,298,709 2,298,709 - 90% 1,667,342 TOTAL INTERNAL SERVICE FUNDS 529,166 13,637,565 4,919,613 293,584 5,213,197 38% 4,160,069 REPORT TOTAL $ 12,108,468 $ 229,198,752 $ 40,753,008 $ 31,893,243 $ 72,646,251 32% 52,456,583 $

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2022-23
For the Month Ended October 31, 2023
33% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-23 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 33,175,566 $ 9, $ 18% 16, 539,157 $ 28% (6, 503,199 $ 964,042) $ 4,131,495 $ 22,080,029 TOTAL GENERAL FUND $ 33,175,566 $ 9,539,157 18% $ 16,503,199 28% $ (6,964,042) $ 4,131,495 $ 22,080,029 202 STREET MAINTENANCE 68,927 $ 218,096 23% $ 219,827 29% $ (1,731) $ - $ 67,196 205 PUBLIC SAFETY/SUPPL. LAW 319,867 97,433 96% 26% 97,003 430 - 416,870 206 DEVELOPMENT SERVICES (426,677) 1,463,173 23% 1, 797,530 28% ( 334,357) 236,058 (997,092) 207 LONG RANGE PLANNING 1,276,770 251,314 25% 269,971 17% (18, 657) 18,178 1,239,935 215 / 216 CDBG 30,767 564 174% 33% 28 537 - 31,304
225 ASSET SEIZURE 102,496 67% 865 33% 261 605 - 103,101 229 LIGHTING AND LANDSCAPE 191,949 1,906 1% 42,667 18% (40, 761) 8,121 143,066 230 COMMUNITY FACILITIES DISTRICT 150,651 1,337 4% 10,475 25% (9,137) - 141,514 232 ENVIRONMENTAL PROGRAMS 328,270 190,211 32% 128,544 23% 61,668 18,999 370,939 234 MOBILE HOME PK RENT STAB. 76,297 644 110% 33% 302 342 - 76,639 235 SENIOR HOUSING 239,361 n/a - n/a - - - 239,361
236 HOUSING MITIGATION 5,698,654 699,116 16% 254,888 17% 444,228 137,500 6,005,382 240 EMPLOYEE ASSISTANCE 61,893 2,686 13% 2,315 11% 371 - 62,264 246 COUNTYWIDE SOLID WASTE 239,294 526,793 88% 262,418 13% 264,374 1,022,161 (518,493) 247 ENVIRONMENT REMEDIATION 140,690 1,188 88% n/a - 1,188 - 141,878 255 HOUSING SUCCESSOR AGENCY 4,001,427 92,668 39% 424,947 36% ( 332,280) 320,833 3,348,314 TOTAL SPECIAL REVENUE FUNDS $ 12,500,636 $ 3,547,995 22% $ 3,414,603 23% $ 133,392 $ 1,761,851 $ 10,872,177 301 PARK DEV. IMPACT FUND $ 1,426,990 $ 144,019 9% $ 349,861 15% ( $ 205,842) $ 135,673 $ 1,085,475 302 PARK MAINTENANCE 2,489,205 31,003 37% 216,956 33% ( 185,952) - 2,303,253 303 LOCAL DRAINAGE 11,817,863 211,245 47% 223,438 3% (12, 193) 3,807,134 7,998,537 304 LOCAL DRAINAGE/NON-AB1600 1,343,736 11,974 39% 20,310 5% (8,336) 35,961 1,299,439 306 AG. AND OPEN SPACE PRESERVATION 541,496 52,690 1306% 32,533 13% 20,157 - 561,653 308 STREET CIP 4,078,203 782,439 20% 1, 642,347 30% ( 859,908) 2,759,124 459,171 309 TRAFFIC IMPACT FUND 3,727,580 191,304 15% 188,472 3% 2,832 3,748,052 (17,641) 315 PUBLIC SAFETY FACILITIES IMPACT 3,050,728 121,539 15% 293,047 3% ( 171,508) 9,259,832 (6,380,612) 346 PUBLIC FACILITIES NON-AB1600 2,943,797 124,605 15% 50,825 4% 73,780 13,711 3,003,866 347 PUBLIC FACILITIES IMPACT FUND 1,099,809 35,309 20% 69,759 5% (34, 450) 55,000 1,010,359 348 LIBRARY IMPACT FUND 1,408,238 111,604 17% 74,116 33% 37,488 - 1,445,726 350 UNDERGROUNDING 1,626,301 14,497 64% 392 0% 14,105 - 1,640,406 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY 92,077 752 0% 16,949 2% (16, 197) 3,428 72,452 360 COMM/REC CTR IMPACT FUND 992,228 192,904 17% 92,245 3% 100,659 575,810 517,077 375 QUIMBY FEE 1,621,885 790,728 129% 15,184 1% 775,544 - 2,397,429 TOTAL CAPITAL PROJECT FUNDS $ 38,260,136 $ 2,816,614 23% $ 3,286,435 8% $ (469,821) $ 20,393,726 $ 17,396,589 420 CIVIC CENTER DEBT $ 175,864 $ 98,741 34% $ 1,080 0% 97,660 $ $ 76 $ 273,448 441 POLICE FACILITY BOND DEBT 166,725 129,863 33% 1,430 0% 128,433 97 295,061 TOTAL DEBT SERVICE FUNDS $ 342,589 $ 228,604 34% $ 2,510 0% $ 226,094 $ 173 $ 568,510 640 WASTEWATER OPERATIONS $ 4,670,817 $ 3,854,392 25% 4, $ 342,110 28% ( $ 487,717) 80,131 4,102,969 641 WASTEWATER IMPACT FUND* 21,350,081 903,614 20% 473,128 2% 430,486 460,544 21,320,024 642 WASTEWATER RATE STABILIZATION 2,799,081 89,165 46% 33% 88,541 624 - 2,887,622 643 WASTEWATER CAPITAL PROJECTS 15,601,623 1,843,439 35% 1, 182,047 7% 661,392 3,100,114 13,162,901 650 WATER OPERATIONS 4,444,824 5,642,330 29% 5, 784,758 28% ( 142,428) 757,625 3,544,771 651 WATER IMPACT FUND* 2,969,960 205,785 12% 243,097 10% (37, 311) 18,077 2,914,572 652 WATER RATE STABILIZATION 3,183,868 28,382 n/a 33% 27,914 468 - 3,211,782 653 WATER -CAPITAL PROJECT 15,548,298 2,429,112 35% 600,418 4% 1, 828,694 896,096 16,480,896 TOTAL ENTERPRISE FUNDS $ 70,568,552 $ 14,996,220 28% $ 12,626,648 13% $ 2,369,572 $ 5,312,587 $ 67,625,537 730 INFORMATION SERVICES $ 793,101 $ 836,303 34% $ 825,101 31% 11,202 $ $ 43,017 $ 761,286 740 BUILDING MAINTENANCE 7,256 558,962 33% 440,035 25% 118,928 85,137 41,046 741 BUILDING REPLACEMENT 4,309,501 314,259 37% 31,730 2% 282,529 19,761 4,572,269 745 CIP ENGINEERING 9,209 388,245 19% 535,241 26% ( 146,996) 1,666 (139,453) 760 UNEMPLOYMENT 303,137 2,453 83% 11,826 79% (9,373) - 293,764 770 WORKERS COMPENSATION 2,152,498 289,431 29% 609,012 58% ( 319,581) 30,000 1,802,917 790 EQUIPMENT REPLACEMENT 7,665,968 437,073 37% 77,219 6% 359,853 144,002 7,881,819 791 EMPLOYEE BENEFITS FUNDS (124,893) 284,566 33% 90,740 12% 193,826 - 68,933 795 GEN. LIABILITY INSURANCE 932,477 703,534 33% 2, 298,709 90% (1, 595,175) - (662,698) TOTAL INTERNAL SERVICE FUNDS $ 16,048,254 $ 3,814,827 31% $ 4,919,613 36% $ (1,104,786) $ 323,584 $ 14,619,884 Revenues Expenses Preliminary Ending Fund Balance

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2022-23
For the Month Ended October 31, 2023
33% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-23 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Preliminary Ending Fund Balance

SUMMARY BY FUND TYPE
GENERAL FUND GROUP 33,175,566 $ 9, $ 18% 16, 539,157 $ 28% (6, 503,199 $ 964,042) $ 4,131,495 $ 22,080,029 SPECIAL REVENUE GROUP 12,500,636 3, 22% 3, 547,995 23% 414,603 133,392 1,761,851 10,872,177 DEBT SERVICE GROUP 342,589 34% 2,510 228,604 0% 226,094 173 568,510 CAPITAL PROJECTS GROUP 38,260,136 2, 23% 3, 816,614 8% ( 286,435 469,821) 20,393,726 17,396,589 ENTERPRISE GROUP 70,568,552 14, 28% 12, 996,220 13% 2, 626,648 369,572 5,312,587 67,625,537 INTERNAL SERVICE GROUP 16,048,254 3, 31% 4, 814,827 36% (1, 919,613 104,786) 323,584 14,619,884 TOTAL ALL GROUPS 170,895,733 $ 34, $ 24% 40, 943,417 $ 18% (5, 753,008 $ 809,591) $ 31,923,416 $ 133,162,726 For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.

20 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Tanya Carothers, Environmental Services Administrator
APPROVED BY: City Manager
REVIEW SECTION 15.63 OF THE MUNICIPAL CODE AND PROVIDE

DIRECTION REGARDING THE PROHIBITION OF NATURAL GAS

INFRASTRUCTURE IN NEW BUILDINGS

RECOMMENDATION(S)

1. Review Section 15.63 of the Municipal Code and discuss the prohibition of natural gas infrastructure in new buildings; and

2. Take no action to amend Section 15.63 of the Municipal Code, which prohibits natural gas infrastructure in new buildings.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment
Advancing Regional Initiatives
Guiding Documents
Climate Action Plan
REPORT NARRATIVE:

BACKGROUND
In 2019, the City of Morgan Hill became a leader in addressing the impacts from climate change by adopting an ordinance that eliminated gas infrastructure in new buildings, thereby upgrading them to all-electric, see Attachment A - Municipal Code Section

15.63 Prohibition of Natural Gas Infrastructure in New Buildings. This requirement has been a significant driver of the City’s greenhouse gas emission reductions that are approximately equivalent to the greenhouse gas emission reductions achieved by other Silicon Valley agencies, see Attachment B. The purpose of this agenda item is to revisit Municipal Code Section 15.63 Prohibition of Natural Gas Infrastructure in New Buildings and consider the implications of allowing a return to gas infrastructure in new buildings.

This item was brought forward by a City Council Member as a future Council initiated agenda item and subsequently the majority of the City Council voted to have the discussion.

In 2019, the primary drivers that led the City Council to consider the prohibition of gas

20 infrastructure in new buildings were largely focused on climate change, including: 1) a growing body of evidence that the climate crisis is real and demands action; 2) the abdication of the federal government in taking action to address the climate crisis – which necessitated that state and local governments play a leading role in steering societal changes that may lead to climate stability; and 3) the successful decarbonization of the region’s electricity supply in 2017, via Silicon Valley Clean Energy (SVCE), which makes electricity the cleanest fuel for building energy. Gas combustion in dual-fuel buildings is now the second largest source (after transportation) of climate-changing emissions in our community.

Additionally, Municipal Code Section 15.63 Prohibition of Natural Gas Infrastructure in New Buildings was adopted with the following findings: 1) substitution of electric infrastructure in new buildings is linked to significantly lower greenhouse gas emissions and is cost competitive; 2) conditions in and around Morgan Hill make the City susceptible to impacts from climate change including a wildland-urban interface that is extremely susceptible to wildfires, the City’s reliance on imported water for groundwater recharge and reductions in the amount of imported water available due to climate change, and proximity to fault lines which are capable of large earthquakes and resulting fires from gas infrastructure; 3) poor indoor and outdoor air quality results from the combustion of gas which exacerbates conditions for Morgan Hill residents who suffer from asthma and other health conditions; and 4) 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 gas piping and venting for combustion air safety.

REGULATORY FRAMEWORK
Below are recent regulations that are moving California communities toward a future that is dependent on electric power.
• SB 1020. Requires that renewable energy and zero-carbon resources supply 90 percent of electric retail sales to end-use customers in California by 2030 and 95 percent by 2040.
• SB 100. Requires that renewable energy and zero-carbon resources supply 100 percent of electric retail sales to end-use customers in California by 2045. • 2022 California Energy Code. Building on the movement of nearly 50 cities and counties that adopted reach codes or ordinances to exceed minimum clean energy building standards during the 2019 code cycle, the California Energy Commission adopted a 2022 Energy Code that advances electrification by encouraging efficient electric heat pumps and establishing electric-ready requirements for new homes.
• Advanced Clean Cars II Rule. Transportation is the single largest source of greenhouse gas emissions and air pollution in the state. In November 2022 the California Air Resources Board adopted a new rule that establishes a year-byyear roadmap so that by 2035 100% of new cars and light trucks sold in California will be zero-emission vehicles.

20 • Nitrogen Oxides from Central Gas Furnaces and Nitrogen Oxides Emissions from Natural Gas-Fired Boilers and Water Heaters. Nitrogen Oxide (NOx) emissions contribute to unhealthy air, particularly ozone and particulate matter, which is linked to asthma, heart attack, stroke, neurological disease, lung cancer and other serious and potentially fatal health conditions. In March 2023, the Bay Area Air Quality Management District (BAAQMD) adopted new rules that will support improvements to regional air quality and public health by implementing the following restrictions on new water heaters and furnaces:
o By 2027 only zero NOx water heaters such as electric heat pumps or tankless water heaters can be sold or installed in the Bay Area. o By 2029 only zero NOx furnaces can be sold or installed in the Bay Area. o By 2031 only zero NOx large commercial water heaters can be sold or installed in the Bay Area.

BENEFITS OF ALL-ELECTRIC NEW CONSTRUCTION IN THE COMMUNITY Health. Gas appliances in homes release health-damaging air pollutants, with stoves typically releasing these pollutants directly into home air rather than venting them outdoors as furnaces and water heaters do. Electric appliances emit no indoor nor outdoor toxins or pollution and keep families in our community healthier and safer.

Indoor Air Quality. According to a study completed in June 2023 by researchers at Stanford University, combustion gas stoves emit toxic chemicals that significantly degrade indoor air including carbon monoxide (CO), which inhibits cellular respiration; formaldehyde, a carcinogen; and nitrogen dioxide (NO2), a respiratory irritant linked to asthma. Furthermore, gas stoves have flames that form benzene which is a carcinogen that forms from incomplete combustion. Benzene exposure causes both cancer and noncancerous health effects. Shorter-term benzene exposure suppresses blood cell production, and chronic benzene exposure increases the risk of leukemias and lymphomas. The study found that in one out of three houses studied, a single gas burner on high for 45 minutes raised kitchen benzene concentrations to levels that exceeded benzene concentrations from secondhand tobacco smoke.

Furthermore, in 2022 a study was published in the International Journal of Environmental Research and Public Health which quantified gas stove use and current childhood asthma at a national and state level. The study found that 12.7% of current childhood asthma in the US is attributable to gas stove use. At the state level, California carried an even higher burden with 20.1%, or one out of every five children, experiencing asthma attributable to gas stove use in the home.

Outdoor Air Quality. Gas water heaters and furnaces are the two appliances with the highest footprint of gas use. Except for the potential for dangerous indoor carbon monoxide gas leaks, these two appliances affect primarily outdoor air quality. The BAAQMD recently passed a regulation that will make it illegal to install or purchase gas water heaters or gas furnaces in the Bay Area because they emit significant levels of

20 NOx and PM2.5 into the atmosphere. NOx is a greenhouse gas that is 265 times more potent than carbon dioxide (CO2), and in addition both NOx and PM2.5 have significant impacts to human health. It is estimated that the BAAQMD regulation will prevent 85 premature deaths and dozens of new asthma cases each year and avert up to $890 million annually on health impacts. The BAAQMD states that NOx emissions from gas combustion by buildings account for nearly one-third of the NOx emissions from stationary sources in the Bay Area.

On-Bill Cost Savings. Affordable and predictable utility bills are important. Occupants of new buildings in the City of Morgan Hill currently enjoy on-bill monthly savings due to all-electric infrastructure. A recent study completed in September 2023 by SVCE used real customer metered data combined with standard modeled data to evaluate on-bill savings specific to our regional community. The study found that electrification reduces site energy use by nearly 60 percent and single-family homes with standard all-electric appliances could save approximately $380 per year compared to a standard mixed-fuel home (gas + electric). Savings increased to approximately $495 annually when switching to high-efficiency electric appliances.

While electric is often perceived to be more expensive compared to gas as a source of energy, the reduced energy use from electrification combined with the electrificationfriendly rate structure provided by SVCE that incentivizes clean energy upgrades, as well as the availability of tax credits and local rebates, results in significant cost savings for occupants of all-electric buildings in our community. In addition, the perception that it is more expensive to heat homes and water with electricity is based on obsolete electric technology that has been replaced by modern heat pumps.

Resilience. Major stresses on the grid are driven by changes to the climate, and the only long-term solution is electrification as a means to reduce fossil fuel use.

It is possible to go all-electric while also being resilient to climate change impacts (e.g., power outages that result from wildfires and extreme heat events). The solution is to install backup batteries with solar in electric buildings. This allows residents to use key appliances during outages because they can draw power from their home batteries, which can be recharged by solar energy for the duration of the outage. Since nearly all modern gas appliances require some degree of electric capacity to operate, all-electric homes with solar and a battery are more resilient in a power outage than gas appliances. Requiring all-electric building makes it so that new residents can simply purchase a battery to increase their resilience during power outages, without the need to spend money on retrofitting obsolete gas appliances.

Future Readiness. Recent restrictions set by BAAQMD for the Bay Area will make it illegal to sell or install gas water heaters by 2027 and gas furnaces by 2029 (see above under Regulatory Framework). Additionally, the Clean Energy Code requires new buildings in California to be built ‘electric-ready’ so that gas appliances can be easily replaced with electric appliances. Prohibiting gas infrastructure in new buildings and continuing to require all-electric appliances in the Morgan Hill community will ensure

20 that local developers are already acclimated to the requirements of state and regional regulations as they come into effect and will also ensure that our community is doing its part to curb climate change. There is no reason to continue to invest in gas infrastructure in new buildings when the new BAAQMD regulations will require electric infrastructure and appliances throughout the Bay Area.

COMMON QUESTIONS ABOUT ELECTRIFICATION
Please see Attachment C for answers to common questions about electrification, including:
• Does the electric grid have the capacity to support all-electric infrastructure? • What happens when the power goes out if all my appliances are electric? • What is different in an all-electric home compared to a mixed-fuel home during a power outage?
• Is electric preferable over gas from a climate-conscious perspective?

IMPACTS OF ALL-ELECTRIC BUILDING REQUIREMENTS ON THE

DEVELOPMENT COMMUNITY
Economically, it is better to go all-electric from the outset at new construction to allow integration of electrical infrastructure in the design phase of a building project. This allows building systems and spaces to be designed in a way that optimizes the performance of electrical systems. Additionally, development projects can take full advantage of avoided costs and space requirements from the elimination of gas piping and venting for combustion air safety. According to a 2022 study completed by the California Energy Commission, it costs approximately $6,000 less to build an all-electric home compared to a mixed-fuel home (gas + electric).

IMPACTS TO THE CITY’S ADOPTED CLIMATE ACTION PLAN (CAP) In December 2021, the City adopted the Morgan Hill Climate Action Plan (CAP) which includes a main goal of reducing Morgan Hill's net CO2 emissions in the building and transportation sectors to thirty-five percent (35%) below the 2020 baseline level by 2030 and one-hundred percent (100%) below the 2020 baseline level by 2045. Additionally, the CAP has two sub-goals, and associated action items related to the Building Sector as listed below.

Sub-Goal #1
Transition 95% of existing buildings (roughly 14,000) in Morgan Hill to all-electric using 2020 as a baseline by 2045, with incremental targets every five years consisting of 1% by 2025, 10% by 2030, 35% by 2035, and 70% by 2040.

Action Items
• Initiate a program to assist property owners with the transition to all electric,

20 including: 1) research financial assistance programs; 2) provide energy audits; and 3) adopt an ordinance requiring retrofitting appliances at resale. • Provide resources to property owners including a list of contractors, rebate information, and alternative appliance options.
• Coordinate training and education for contractors.
• Adopt an ordinance requiring additions over 1,000 square feet to existing buildings/properties to be all-electric unless the addition is not going to result in the addition or expansion of the existing water or space heating system. • Launch a loaner induction program with cooking demonstrations. • Create incentive programs for commercial buildings to convert rooftop HVAC systems to all electric.
• Look at opportunities to encourage or mandate direct access customers (those businesses that independently procure electricity) to switch to carbon-free power. • Evaluate opportunities to facilitate permit approvals.

Sub-Goal #2
Convert all municipal buildings to all-electric by 2035.

Action Items:
• Appropriate funding to a conversion budget reserve fund annually.

The City’s current prohibition of gas in new buildings is ensuring that the City is not adding to the stock of existing buildings that will ultimately need to transition to allelectric by 2045. The City cannot transition existing buildings to all-electric while simultaneously allowing gas in new buildings. Rescinding the gas ban in new buildings would conflict with CAP action items including writing an ordinance that requires retrofits of buildings to all-electric at resale. Should the City decide to rescind the gas ban in new buildings, then the recommendation is to provide direction on how to proceed with implementation of the CAP.

IMPACTS TO THE MORGAN HILL COMMUNITY SHOULD THE CITY RETURN TO

GAS FOR NEW CONSTRUCTION
This report discusses gas infrastructure in new buildings, highlights the differences between gas infrastructure and all-electric buildings, and evaluates common concerns associated with all-electric infrastructure in buildings. To summarize key considerations from discussions in this report, the list below has been compiled. A return to gas in new buildings in the Morgan Hill community would:
• Allow construction of houses with gas stoves in the community which cause poor indoor air quality, resulting in exposure of residents to carcinogens and which contribute significantly to asthma in children.
• Allow the construction of houses with gas water heaters and gas furnaces in the Morgan Hill community which contribute significantly to outdoor air pollution

20 resulting in elevated levels of NOx and PM2.5. This would expose the community to higher risks associated with asthma, heart attack, stroke, neurological disease, lung cancer and other serious health conditions.
• Eliminate on-bill cost-saving opportunities associated with all-electric buildings compared with mixed-fuel buildings (electric + gas) of approximately $380-$495 per year.
• Allow installation of gas appliances in new buildings that will become obsolete in the Bay Area in less than five years with implementation of BAAQMD’s ban on gas water heaters and gas furnaces. The inconsistency on what is allowed in buildings could complicate the road to compliance due to mixed messaging (i.e. gas appliances allowed until 2019, then not allowed until 2023, then allowed until 2027, after which only certain gas appliances are allowed and others are phased out).
• Reduce the opportunity for resilience in the community to impacts from climate change. Going all-electric from the beginning makes it so that new residents can simply purchase a battery to increase their resilience during power outages, without the need to spend money on retrofitting obsolete gas appliances. • Reduce the City’s impact on bending the regional climate curve and make Morgan Hill one of only two cities in Santa Clara County without a reach code that encourages/requires electric building.
• Cause the City to be in direct conflict with the goals and actions of the City’s adopted Climate Action Plan.
• Be contrary to the City’s vision for a safe, socially responsible, and environmentally conscious community.
• Be in conflict with the City’s ongoing priorities to enhance public safety and quality of life, protecting the environment, and maintaining and enhancing infrastructure.

CONCLUSION
Recent research has shown that gas appliances have significant health effects within the community, both indoors and outdoors, and kids are especially susceptible to impacts from exposure to emissions from gas appliances. Modern electric appliances are used worldwide to provide clean heating and cooling, with no health risks.

Eliminating gas appliances in new buildings ensures that Morgan Hill is being built in a way that is resilient and that promotes clean and healthy living.

CALIFORNIA RESTAURANT ASSOCIATION V. CITY OF BERKELEY
In 2019, the City of Berkeley passed a gas ban which prevented builders from installing gas infrastructure in most new projects. The California Restaurant Association, whose members include restaurateurs and chefs, challenged Berkeley’s regulation claiming the ordinance was preempted by Federal Law. The district court dismissed the suit in 2021.

On April 17, 2023, in California Restaurant Association v. City of Berkeley, the Ninth Circuit reversed the district court’s dismissal and concluded that federal law does in fact

20 preempt the ordinance. On May 31, 2023, Berkeley petitioned for an “en banc” rehearing of the case requesting that a wider panel of judges on the appeals court reconsider the three-judge panel’s April ruling. While “en banc” consideration is rare, if granted, it would mean the case would go before 11 judges and the latest decision would be on hold. The rehearing has yet to be granted nor denied. On June 10, 2023, the US Department of Energy and Department of Justice wrote a brief saying the 9th District made significant errors in its interpretation of federal law and should grant a rehearing. Berkeley’s ordinance, which went into effect in 2020, still stands as the legal process continues. The City of Morgan Hill will continue to monitor this case as it goes through the court system and in the meantime, it does not affect the status of the City of Morgan Hill’s ordinance.

COMMUNITY ENGAGEMENT:

Inform and Involve
The City informed the community of the discussion to consider amending Section 15.63 of the Municipal Code to allow gas infrastructure in new buildings via posts to digital platforms including social media and the Environmental Services Division Newsletter.

Flyers were also handed out at an engagement event leading up to the December 6th Council Meeting. The City developed its Climate Action Plan with significant involvement from community members.

ALTERNATIVE ACTIONS:

The Council could choose to amend Section 15.63 of the Municipal Code to once again allow gas in new buildings. To do this, staff would strike all language in the current ordinance and return to Council with the recommendations to: 1) Waive the first and second reading of the ordinance; and 2) Introduce the ordinance rescinding the prohibition of natural gas infrastructure in new buildings. At a second meeting two weeks later, the Council could vote to approve the amended ordinance under consent and allow gas in new buildings.

A second alternative is the Council could choose to have staff return with an amended ordinance that increases climate change resiliency in the community by requiring that in addition to being all-electric, new buildings must also be designed and built to include a backup battery with solar so that houses and appliances could still work during power outages.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Section 15.63 of the Municipal Code, Prohibition of Natural Gas Infrastructure in New Buildings was brought before Council in response to policy guidance received from Council on September 4, 2019. The ordinance prohibiting natural gas in new buildings was formally adopted on November 6, 2019. On December 15, 2021, the City adopted a Climate Action Plan which guides City staff to work toward achieving building electrification goals and actions. On September 6, 2023, the Council voted to agendize a discussion to evaluate the restoration of gas in new buildings.

FISCAL AND RESOURCE IMPACT:

20 There are no direct fiscal impacts from this item and no budget adjustment is requested at this time. Evaluating program options is included in the work program of the Public Services Department.

CEQA (California Environmental Quality Act):

Not a Project.

In accordance with CEQA Guidelines section 15378(b)(5), this item is not a project subject to CEQA because a policy discussion is an administrative action that will not result in a physical change to the environment.

1 October 29, 2023
From: Bruce Karney
To: SVCE Directors and Alternates, Girish Balachandran & Monica Padilla Re: How Is Your City Doing in Bending the Carbon Curve? SVCE’s mission is to “reduce dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE community.” In short, to bend the carbon curve.

SVCE has recently released city-level emissions data for the period from 2015 (prior to SVCE’s formation) through 2022. This data can help the Board and others understand how rapidly the carbon curve has been bent and which communities are bending it the fastest. You can find the full 16-page report, including a description of its methodology, here: https://svcleanenergy.org/research-analysis/#emissions-reporting The graphs on pages 2 and 3 compare the rate of GHG reduction in each jurisdiction to the average for SVCE’s service territory. Only emissions from Transportation and Energy1 are included. Smaller categories that many cities include in their own GHG emissions reports, such as emissions from solid waste, water, and wastewater processing are not included in SVCE’s data. However, Transportation and Energy make up more than 90% of most cities’ emissions. I also want to note that Energy emissions are measured, but Transportation emissions are modeled, and are therefore less accurate.

In all the graphs a community’s emissions in 2015 are scaled to be equal to 100%. The territory-wide emission reduction was 23% from 2015 to 2022. On average, that’s a decrease of 3.7% per year, but virtually all the improvement occurred between 2015 and 2018 (the first full year of SVCE’s operations). Since 2019 (the last pre-COVID year) emissions have risen 0.3% or 0.1% per year.

You may also be interested in how PG&E’s and SVCE’s emissions have changed since SVCE was formed. The table shows emission factors for PG&E’s default offering and SVCE’s GreenStart, measured in pounds of CO2e per MWh. PG&E’s low figure in 2019 was made possible by AB1110, which essentially let them buy a mix of carbonfree and fossil-generated electricity and claim that all the electricity they sold to behind-the-meter customers was carbon-free and that virtually all their fossil-generated power was sold elsewhere.

Electricity source 2015 2016 2017 2018 2019 2020 2021 2022 PG&E Base Plan 405 294 210 206 3 160 98 56
SVCE GreenStart -- -- 0 0 142 7 18 72
I think you will be able to use these graphs that follow to answer the question “Is my community doing better, worse, or about the same as the SVCE average?” And if your answer is “worse” or “about the same,” I hope you will work with your City Manager and Council colleagues to accelerate your efforts to reduce emissions in your city. Our region won’t continue to be seen as a climate leader if we don’t push harder to bend the carbon curve.

As Bill McKibben has said, when it comes to fighting climate change “winning slowly is the same as losing.” 1 Energy emissions are those from natural gas and electricity provided by SVCE, PG&E and direct access suppliers. 2 This is an estimate, based on the percentage of geothermal generation in 2019’s Power Content Label vs. 2020’s.

Attachment B - Silicon Valley Clean Energy Memo - How is Your City Doing in Bending the Carbon Curve?

2 45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Unincorporated County
Uninc. County Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Campbell
Campbell Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Cupertino
Cupertino Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Gilroy
Gilroy Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Los Altos
Los Altos Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Los Altos Hills
Los Altos Hills Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Los Gatos
Los Gatos Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Milpitas
Milpitas Service Territory

3 45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Monte Sereno
Monte Sereno Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Morgan Hill
Morgan Hill Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Mountain View
Mountain View Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Saratoga
Saratoga Service Territory
45%
65%
85%
105%
2015 2016 2017 2018 2019 2020 2021 2022
Sunnyvale
Sunnyvale Service Territory

4 Here are the emission reductions from 2015 to 2022, sorted from best to worst.

1. Unincorporated County (2022’s emissions were 51.6% as high 2015’s)

2. Milpitas (73.1%)

3. Los Altos Hills (73.5%)

4. Saratoga (74.4%)

5. Sunnyvale (75.4%)

6. Campbell (75.7%)

7. Morgan Hill (77.2%)

8. Mountain View (78.7%)

9. Los Gatos (81.2%)

10. Monte Sereno (82.0%)

11. Los Altos (83.9%)

12. Gilroy (87.8%)

13. Cupertino (99.4%)
45%
55%
65%
75%
85%
95%
105%
2015 2016 2017 2018 2019 2020 2021 2022
All Member Jurisdictions
Campbell Cupertino Gilroy Los Altos Los Altos Hills
Los Gatos Milpitas Monte Sereno Morgan Hill Mountain View Saratoga Sunnyvale Uninc. County Service Terr.

COMMON QUESTIONS ABOUT ELECTRIFICATION
Developed by the City of Morgan Hill Environmental Services Division Contents
Does the electric grid have the capacity to support all-electric infrastructure?.....................................1 What happens when the power goes out if all my appliances are electric?..........................................2 What is different in an all-electric home compared to a mixed-fuel home during a power outage? .....2 Is electric preferable over gas from a climate-conscious perspective?.................................................3 Does the electric grid have the capacity to support all-electric infrastructure? Major stresses on the grid (e.g., extreme heat, wildfires) are driven by changes to the climate, and the only long-term solution is electrification as a means to reduce fossil fuel use. To support electrification and also increase community resilience to impacts from climate change, energy suppliers have begun taking steps to improve service reliability.

Grid readiness for electrification at the local level. Delivery of electricity to Morgan Hill is provided via infrastructure that is owned and operated by Pacific Gas & Electric (PG&E). In recent years, Morgan Hill has experienced power outages driven by PG&E equipment failures due in part to excessive load on the overhead and underground systems caused by record-breaking energy use during extreme heat events. In response, PG&E released a 2022 memo that identified projects specific to Morgan Hill that will reduce over-stress of equipment in the community, including: 1) establish a new circuit out of the Morgan Hill substation to provide increased load margins to existing circuits during future heat events; 2) install 1,000 feet of new underground cable; and 3) provide more capacity to 1,000 feet of existing overhead conductors. Additionally, PG&E has installed indicators on equipment in the Morgan Hill area to help quickly identify outage locations so that power can be restored more quickly. It is important to note that many power outages that have occurred in Morgan Hill over the last several years are related to PG&E's Enhanced Power Line Safety Settings supporting fire protection, which is not associated with grid capacity.

Grid readiness for electrification at the state level. The state continues to work on building out its infrastructure to meet the forecasted increase in demand. Per the California Energy Commission, to complement California’s abundant and growing renewable energy resources, the state is focused on deploying energy storage which can be drawn from in times of energy shortages. According to the California Independent System Operator, battery storage capacity has increased by nearly 20 times since 2019 — from 250 megawatts (MW) to 5,000 MW. Today’s fleet of battery storage resources can capture enough electricity to power up to 5 million California homes. By mid-century, capacity is projected to increase another 10 times to 52,000 MW. The effort to secure battery storage capacity will add dependability and backup power to the grid when energy supply is low (e.g. after dark when solar is not available, to supplement during non-windy days, etc.)

Impacts to the grid from gas infrastructure versus staying all-electric. Energy used for electric appliances in new buildings represent only a fraction of the total electricity demand during an extreme heat event. Most of the electricity demand and resulting grid stress from houses during extreme heat events is from simultaneous use of air conditioning equipment during peak-use hours.

The electricity demand offset from returning to gas appliances in new buildings would be negligible during extreme heat events and would not contribute significantly to reducing power outage events in Morgan Hill.

As previously mentioned, it is possible to go all electric while also being resilient to climate change impacts (e.g., power outages that result from wildfires and extreme heat events). The solution is to require all-electric infrastructure in new buildings and in addition, also require installation of backup batteries with solar recharge. This would allow residents to use key appliances during outages because they can simply draw power from their home batteries, which can be recharged by solar energy for the duration of the outage.

What happens when the power goes out if all my appliances are electric? Unfortunately, power outages are inconvenient regardless of the type of appliances installed. There is a misconception that gas appliances are better because they keep working when the lights go out.

While gas can still flow into houses during a blackout, nearly all modern appliances installed in new buildings require some amount of electricity to operate.

Gas stoves require both a gas line and an electric outlet since modern gas stoves no longer use a pilot light for ignition. Additionally, many modern gas stoves come equipped with a feature called interlock that prevents any gas from entering the appliance unless there is electricity. It is a safety device that ensures gas stoves are operated only when the electric ventilation system is operating to prevent the build-up and/or leaking of gas.

Gas furnaces will not provide heat if they do not have electricity because the blower motor that powers the blower fan requires electrical power. The furnace can produce heat inside the combustion chamber - but that heat will not go anywhere if the blower fan is not running.

Gas water heaters require electronic ignitions or pumps.

Gas clothes dryers require electricity to run the tumbler.

The best way to be resilient in a power outage is to have an all-electric building with a backup battery to store energy which can be drawn from during the outage, and solar to recharge.

What is different in an all-electric home compared to a mixed-fuel home during a power outage?
The only appliance that may be different in a mixed-fuel home during a power outage compared to an all-electric home is the gas range, which in some gas-powered models can still be lit by hand.

However, many ranges today come with a safety feature called an interlock that prevents the flow of gas when electricity is not present. Any attempt to light a gas burner with an interlock feature during a power outage will not be successful. So, it is possible that the range on a modern gas stove installed in a new building will not work depending on the model. Additionally, the oven part of a modern gas stove cannot be lit by hand and will not work.

Is electric preferable over gas from a climate-conscious perspective? Historically, electricity has been sourced from fossil fuels which has raised questions about whether electricity is, in fact, a more climate conscious choice compared to gas. While a reasonable question in the past, the passing of SB 1020 and SB 100 has changed the landscape of electric energy by establishing milestones requiring that 100 percent of electric retail sales to end-use customers in California be from renewable energy and zero-carbon resources by 2045. This has resulted in a rapid transition in California’s electricity resource portfolio, with over 60 percent of the California grid now powered by renewable energy and other carbon-free sources.

Additionally, the Morgan Hill community is automatically provided electricity mostly sourced from renewable energy and other carbon-free sources by SVCE. Therefore, requiring all-electric buildings makes exceptional sense in our community when considering the best way to reduce our community’s climate footprint.

From: Michelle Bigelow
To: Kim Mancera
Cc: Christina Turner
Subject: FW: [EXTERNAL] Do Not Support the "All Electric Rule".

Date: Wednesday, November 15, 2023 2:44:56 PM
Please hold on to this to supplement when this item comes for the 12/6 meeting.

Michelle Bigelow, MMC, CPMC
City Clerk/Public Information Officer
she | her | hers (what’s this?)
City of Morgan Hill
City Clerk’s Office
17575 Peak Avenue, Morgan Hill, CA 95037
D: 408.310.4678 O: 408.779.7259
[email protected]
morganhill.ca.gov | facebook | twitter
From: [email protected] <[email protected]>
Sent: Wednesday, November 15, 2023 2:41 PM
To: CityCouncil <[email protected]>
Cc: jeff Sheets <[email protected]>
Subject: [EXTERNAL] Do Not Support the "All Electric Rule".

Please do not vote for the All Electric Rule. This rule will cost homeowners thousands of dollars in retrofits. We all have experienced issues with PG&E not being able to keep our power on over the last few years. This change will put a huge burden on the power grid. As you know, gas is also a cheaper and more stable to deliver to consumers. Please do not vote for this bill.

Regards,
Jeff Sheets
Broker Associate
Coldwell Banker
950 Tennant Station
Morgan Hill, CA 95037
Cell: 408-710-3963
Email: [email protected]
Web: www.JeffSheets.com
CalBRE #01399881

WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

21 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Ray Ramos, Police Captain
APPROVED BY: City Manager

PROVIDE DIRECTION REGARDING THE KEEPING OF ROOSTERS

WITHIN CITY LIMITS

RECOMMENDATION(S)
Provide direction regarding whether to prohibit the keeping of roosters within the City of Morgan Hill.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Preserving and Cultivating Public Trust
Preserving our Community History
2022-2023 Strategic Priorities
Community Outreach, Engagement, and Messaging
Guiding Documents
Morgan Hill Municipal Code
REPORT NARRATIVE:

During the May 3, 2023, meeting, City Council voted (3-2) in favor of having staff complete a report considering amending and strengthening the language of the current municipal code and/or making additional provisions in an effort to address rooster noises in the City.

A rooster is a male chicken only, while a chicken refers to a bird of either gender.

The keeping of crowing roosters as pets can be a noise nuisance for nearby neighbors.

As a result, some cities prohibit roosters completely or prohibit roosters older than four months.

Current Regulations:

Currently, the Morgan Hill Municipal Code (MHMC) 6.36.170 - Poultry or Rabbits Restrictions in Noncommercial Areas, states that it is unlawful for any person to keep or maintain or cause, or permit to be kept or maintained, any poultry or rabbits in any residential or commercial district, except in accordance with the provisions of this

21 chapter, and the following regulations:

A. Location. All poultry and rabbits shall be kept in the rear yard of any premises as defined in this chapter. No poultry or rabbit shall be kept within twenty-five feet of any traveled street, except an alley.

B. Distance From Certain Buildings. No poultry or rabbit shall be kept within one hundred feet of any commercial establishment where food products are kept, stored, manufactured, or processed, or any school, church, or hospital, or within twenty feet of any residence or dwelling, or building used for the habitation of human beings.

C. Side and Rear Yards. All poultry and rabbits shall be kept, harbored, or maintained not less than five feet from all lateral and rear property lines, unless there is a solid fence, solid side of a structure, or a wall not less than five feet in height between such poultry or rabbits and the adjoining property, except where the property line abuts upon an alley, then the distance requirement may be dispensed with.

In addition, the Morgan Hill Municipal Code (MHMC 6.24.020) Animals--Public Nuisances, prohibits the "keeping, maintaining, causing, or permitting to be kept or maintained any dog, cat or other animal or fowl, whether licensed or not, that interferes with the reasonable and comfortable use of property in any neighborhood or community by howling, yelping, barking or other noise, frequently or for extended periods of time.

Each day that such a disturbance is permitted to continue shall constitute a separate offense."
Currently, the code does not distinguish between types of poultry. Chickens--including both roosters and hens--are allowed, as well as other types of domesticated fowl. And while the code prohibits nuisances, including frequent or extensive noise that interferes with the reasonable and comfortable use of property, nuisances that may be caused by roosters are difficult to enforce. First, the noise must be witnessed by the enforcement officer in order for the officer to issue citations. Second, unlike other animals,rooster crows can be sporadic. Because the noise from roosters is difficult to regulate, the only practical way to control rooster noise is to prohibit the keeping of roosters in residential zones.

COMMUNITY ENGAGEMENT:

No community engagement.

ALTERNATIVE ACTIONS:

The following are alternative actions that can be considered by the City Council:

1. Maintain Municipal code 6.32.030 – Definitions

2. Amend Municipal Code 6.35.030, adding the definitions for “hens” and “roosters.”

3. Maintain the current Municipal Code 6.36.170, continue to allow fowl/roosters within the City limits and in residential districts/zones.

4. Amend MHMC 6.36.170 add a subsection (D) prohibiting roosters within the City

21 limits.

5. Amend Municipal Code 6.24.020 and add “rooster” to the list of prohibited animals.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

During the May 3, 2023, meeting, City Council voted (3-2) in favor of having staff complete a report considering amending and strengthening the language of the current municipal code and/or making additional provisions in an effort to address rooster noises in the City. No other actions by the City Council or Commission had been taken prior to this staff report.

FISCAL AND RESOURCE IMPACT:

If the City Council recommends staff to amend the current municipal code, we anticipate it would take approximately sixteen staff hours to make all the necessary changes; to include the review process of the City Attorney and including the City Council's final adoption of the new ordinance. If the Council decides to maintain the current ordnance, there will be no fiscal/resource impact.

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.

22 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Michelle Bigelow, City Clerk
APPROVED BY: City Manager

PROVIDE DIRECTION TO STAFF ON WHETHER TO ALLOW PUBLIC

COMMENT ON ZOOM

RECOMMENDATION(S)
Provide direction to staff on whether to allow public comment on Zoom.

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
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
2022-2023 Strategic Priorities
Community Outreach, Engagement, and Messaging
REPORT NARRATIVE:

At the October 4, 2023, City Council meeting, hateful and hostile comments were made by people participating on Zoom for public comment. This occurred in Morgan Hill and throughout the nation. In response, public comment on Zoom was no longer allowed.

Several factors contributed to this decision:
• Promoting a Safe and Inclusive Space: The City works to create an environment where everyone feels safe and respected during public meetings. Hate speech can create a hostile atmosphere that hinders meaningful public participation and disrupts the purpose of the meetings.
• Protection of Vulnerable Communities: Hate speech often targets specific communities based on their characteristics, such as race, religion, gender, or sexual orientation. Taking steps to prevent hate speech protects these communities from harm and harassment. Further, as an employer, the City is required to take reasonable steps to prevent exposure to verbal conduct that is based on protected classifications (including race, religion, gender, and/or sexual orientation) and that is objectively and subjectively offensive. • Ensuring Efficient Meetings: The City's goal is to conduct productive and efficient meetings that allow for the exchange of diverse opinions and ideas. Hate speech

22 can disrupt these meetings, making maintaining a respectful and constructive environment challenging.

Through this change, the City of Morgan Hill aimed to strike a balance between promoting free speech and protecting the safety and dignity of all participants in its public meetings.

The state's Brown Act, which governs public access to government meetings, only requires cities to offer the public a chance to comment at public sessions in person.

Since the pandemic, many cities have allowed the public to comment by Zoom or phone. However, a growing number of cities in the Bay Area, including Morgan Hill, have moved to prohibit remote or telephone comments because of the increasing incidents of antisemitic callers.

A City Council discussion on public comments via Zoom and displaying the names of all Zoom participants during the meetings was requested by a Council Member and a majority of the City Council voted to have this item agendized. Staff is seeking direction from the City Council on whether they would like to allow public comments via Zoom and display the names of all Zoom participants during the meetings. Please note that while we can require registration and identification of Zoom participants, we cannot prohibit speakers from using assumed or false names.

If the Council allows public comment through Zoom, staff will research other reasonable steps to protect employees and the public from verbal conduct that would create a hostile work environment.

COMMUNITY ENGAGEMENT:

This report seeks direction from the City Council on whether to allow public comments via Zoom and display the names of all Zoom participants during the meetings.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

At the October 4, 2023, City Council meeting, hateful and hostile comments were made by people participating on Zoom for public comment.

At the November 1, 2023, City Council Meeting, a future business item was brought forward to consider discussing whether to allow public comment on Zoom and to display the names of participants on Zoom.

At the November 15, 2023, City Council Meeting, the City Council voted to bring forward a discussion on whether to allow public comment on Zoom and to display the names of participants on Zoom.

22 FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with 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.

From: Yvonne Martinez Beltran <[email protected]> Sent: Tuesday, October 24, 2023 11:17 AM
To: Christina Turner <[email protected]> Cc: Shane Palsgrove <[email protected]>; Donald Larkin <[email protected]>; Michelle Bigelow <[email protected]> Subject: Requests for public comment & Council meeting attendees Thank you!
I am separating out two items please for follow up and to understand a date when it will be addressed please.
1) Discussion on public comment- this should happen at our next meeting Nov 1 even if it is not fully developed and there are items to address before moving forward. 2) I am requesting to see all of the names of participants on zoom during the meetings and have them displayed so our meetings are transparent as to who is participating moving forward. We have invested heavily in upgrading our technical capabilities and need to stay on top of technology to maximize public engagement and transparency. I’ve asked about this since COVID started in 2020 and it’s been nearly 3 years of refining these solutions.

Thank you for all you do!
In Community,
Yvonne Martínez Beltrán (pronouns: she/her/hers)
Councilwoman
City of Morgan Hill
17575 Peak Avenue, Morgan Hill, CA 95037
[email protected]
morganhill.ca.gov | facebook | twitter

From: Michelle Bigelow
To: Kim Mancera
Subject: FW: [EXTERNAL] Re: Vile wackos win? Please include as Public Comment for Nov 15, 2023 City Council Meeting , Agenda Item #16
Date: Monday, November 13, 2023 11:02:38 AM
Please supplement
Michelle Bigelow, MMC, CPMC
City Clerk/Public Information Officer
she | her | hers (what’s this?)
City of Morgan Hill
City Clerk’s Office
17575 Peak Avenue, Morgan Hill, CA 95037
D: 408.310.4678 O: 408.779.7259
[email protected]
morganhill.ca.gov | facebook | twitter
From: Joe Baranowski <[email protected]>
Sent: Friday, November 10, 2023 6:17 PM
To: Michelle Bigelow <[email protected]>; CC Public Comment <[email protected]>
Subject: [EXTERNAL] Re: Vile wackos win? Please include as Public Comment for Nov 15, 2023 City Council Meeting , Agenda Item #16
Hi Michelle,
I am forwarding my previously sent email (with some minor edits) as a Public Comment supplement for the Nov 15th City Council Meeting.

Thank you.

Joe
---- On Fri, 20 Oct 2023 14:30:48 -0700 Joe Baranowski <[email protected]> wrote -- -
Good afternoon everyone,
I was surprised to see the 'announcement' in today’s 411 that remote Public Comment has been terminated.

To be perfectly clear, I completely and categorically reject ALL of the vile comments a few nutcases made at the last meeting. I am as committed to protecting the Public Interest in this matter as you are, as I have repeatedly demonstrated.

While I am more than willing to appear in-person, I have consistently recognized that providing remote access, including the ability to actively participate, may lead to an increased number of residents being engaged in the decison-making process - which is desperately needed and, as I understand it, a goal of the City.

IMO, and as I pleaded with the City to address, the issue of "visual anonymity" that remote access enables should have been dealt with when the first wacko (Dave Matthews) abused the convenience (or depending on one’s view, the necessity during peak COVID) of remote access. I offered multiple ideas about this but, again IMO (and not equating it to the vile we heard last meeting), nobody really cared one-bit about that unacceptable behavior.

With millions of users, the commercial importance and competition among remote access platforms, and technology advances over the past several years, I do not accept that restricting public comment to those members who are willing to appear on screen while speaking, or other measures which could provide the same level of inherhent real-identity authentication that in-person attendence forces, represents an insurmountable security or efficiency issue.

We saw firsthand that when someone wants anonymity for nefarious reasons they GO AWAY when exposed (Dave Matthews disappeared thanks to social media pressure). With today’s commonly available technology, a face on camera is nearly equivalent to real-identity and I believe the wacko-cowards would most likely disappear a lot faster than Dave Matthews did.

Again, I’m more than willing to show up in person but I am surprised this decision was made with no CIty Council vote or Public Input.

IMO, it sends a clear message that wacko's win, something that I know none of you want. Throwing in the towel on remote particpation now would also raise the question of how meetings would be conducted if in-person attendance were to once again becomes infeasible for health and safety reasons in the future. I believe there is expertise in our own community that can help find a solution that addresses unacceptable behaviors without just saying remote particiaption is not possible.

Regards,
Joe Baranowski
WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

From: D. Muirhead
To: CC Public Comment
Subject: [EXTERNAL] comment Morgan Hill City Council November 15 #16 future agenda items 1,2,5 Date: Monday, November 13, 2023 9:37:40 PM
Dear Morgan Hill City Council,
A comment for your meeting November 15 2023
Item #16. PROPOSED FUTURE COUNCIL INITIATED AGENDA ITEMS

1. provide more lead time for posting City Council agendas;

2. discuss Agricultural Mitigation Policy Mitigation ratio;

5. discuss options for providing public comment and transparency of remote meeting participants.
-----

1. provide more lead time for posting City Council agendas The Administration should stop using the Brown Act minimum posting of 3 days as a ceiling. Note that the staff report mis-states this as "creating a policy to post agendas with a designated amount of lead time *outside* of the Brown Act requirement". Ideally there would be advance notice of proposed agenda items (City Manager) plus enough time for the actual meeting agenda to get a Public Records Request processed. This is not possible with the current packet dump on the Friday before the meeting. And note just how many times the following Monday is a holiday so no access to staff for clarifications nor forwarding received comments to Council Members and Staff for consideration.

The Water District posts the first full packet 10 days in advance and the final version 3 days in advance with notations for items which have been modified.

The County and VTA use agenda notifications to announce the addition of supplements as they become available. Note the the City Clerk did this for Council meetings for a few months several years ago.

At the risk of aggravating certain people, I request that the Council act as bosses rather than cheerleaders and direct the Administration to give Council Members and the Public a less-constrained amount of time to read, research, reflect, and respond to agenda items. -----

2. discuss Agricultural Mitigation Policy Mitigation ratio; While our urban forest will be an important component of mitigating our warming climate, I am strongly opposed to diminishing our limited agricultural mitigation abilities by diverting them to serve City trees.

The preferred model for supporting agricultural lands in South County is best modeled after the Habitat Agency approach, substituting "agriculture" in place of "conservation et al.": The mandate for land acquisition is intended to create a Reserve System characterized by large contiguous land holdings that are more resilient for habitat and species

conservation. To meet this intent, the Habitat Agency focuses effort on purchasing properties that are adjacent to existing open space lands and wildlife corridors, and on collaborating with agency and non-profit partners to enroll new lands.
-----

5. discuss options for providing public comment and transparency of remote meeting participants.

The only details on the change outlawing remote comments (made by the Administration and not the City Council) appeared in the San Jose Mercury News on October 20. The 411 only said "City decided".

I don't accept that vile comments create a "hostile work environment" that automatically trumps the public's right to participate in the discussion.

The City has bragged about the increased participation due to remote access, but now claims public comment can only be allowed in person or in writing.

Regardless of the outcome, this decision rightly belongs to our elected officials and not the Administration.
-----
Thank you for your consideration, Doug Muirhead, Morgan Hill WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

From: Christina Turner
To: Hilary Holeman
Cc: Michelle Bigelow; Kim Mancera
Subject: FW: [EXTERNAL] Zoom City Council Meetings
Date: Tuesday, November 7, 2023 4:44:24 AM
-----Original Message-----
From: Robert Benich <[email protected]>
Sent: Friday, October 27, 2023 8:04 AM
To: Mark Turner <[email protected]>; Gino Borgioli <[email protected]>; Marilyn Librers <[email protected]>; Rene Spring <[email protected]>; Yvonne Martinez Beltran <[email protected]>; Marty Cheek <[email protected]> Cc: Christina Turner <[email protected]> Subject: [EXTERNAL] Zoom City Council Meetings
To Honorable Morgan Hill City Council:

I wish to have my input noted that ZOOM access for public meetings should only be to observe and listen to the proceedings. This should be no different than watching the meetings on Public Access TV. ZOOM participants must not be allowed to make comments. Public comments should only be made in person at the meetings.

Robert Benich
Sent from my iPhone
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From: Mike Tangney
To: CityCouncil; CityCouncil
Subject: [EXTERNAL] Public comment access for seniors and disabled.

Date: Wednesday, October 25, 2023 10:33:10 AM
To Whom it may concern,
It is unfortunate that to my understanding, the city has decided to eliminate remote public comment at meetings. It is so frustrating when a few ill mannered individuals disrupt established processes.

There are several options available such as time delay and pre-authentication that I hope you will explore.

Attending and following meetings in person is not possible for many due to disabilities. Even relatively common problems like hearing loss and poor vision make participation in live meetings difficult. At the last meeting I attended, I found the volume of the sound system too low and the text size of the closed captions too small to easily follow.

I hope you can adjust the ban on remote comment to allow seniors and those with disabilities to continue access to remote comment. San Francisco had done this. As I’m sure you are aware, a few individuals and law firms have made a career out of suing businesses over the Americans with Disabilities Act. I don’t expect it will take long for someone to test these new restrictions.
“Seniors and people with disabilities can still use the phone-in comment option under the changes approved Tuesday.”
ap23073839703039.jpg
San Francisco, Union City officials to restrict or
ban remote public comments at meetings after
racist remarks
cbsnews.com
Thanks,
Mike Tangney
WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other

personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

23 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Kim Mancera, Deputy City Clerk
APPROVED BY: City Manager

SELECT AND APPOINT CITY COUNCIL MAYOR PRO TEMPORE

RECOMMENDATION(S)

1. Open floor to nomination(s) for Mayor Pro Tempore; and

2. Select a Council Member to serve as Mayor Pro Tempore per City Council Policy 99-01.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Fiscal Sustainability
Community Engagement and Messaging
Economic Development
Affordable Housing and Homelessness
Transportation
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Communications, Outreach, and Engagement Plan
Economic Blueprint
Fire Services Standards of Coverage
Morgan Hill 2035 General Plan
Public Safety Master Plan
Storm Drain Master Plan
Vision Zero

23 Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

City Council Policy CP-99-01 sets forth the criteria for the selection of a Mayor Pro Tempore annually for a one-year term. The adopted policy is intended to provide every Council Member with the opportunity to serve as Mayor Pro Tempore. Nomination for the Mayor Pro Tempore seat is generally based on: (1) the length of time that an individual has served on the City Council and (2) whether or not the nominee has previously had the opportunity to serve as Mayor Pro Tempore. However, these factors are not binding, and every member is eligible to serve as Mayor Pro Tempore. The Mayor or any member of the City Council may nominate a member to serve as Mayor Pro Tempore. A copy of the Council Policy CP-99-01 is attached, and the recent Mayor Pro Tempore history is as follows:

CITY COUNCIL MAYOR PRO TEMPORE RECENT HISTORY
FROM: To:

Council Member Constantine January 17, 2018 December 19, 2018 Council Member Spring December 19,
2018
December 4, 2019
Council Member Martínez
Beltrán
December 4, 2019 December 16, 2020
Council Member McKay December 16,
2020
November 17, 2021
Council Member Borgioli November 17,
2021
January 11, 2023
Council Member Spring January 11, 2023 December 6, 2023 COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community of the process for selection of the Mayor Pro Tempore.

ALTERNATIVE ACTIONS:

Not Applicable.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council selects a Council Member to serve as the Mayor Pro Tempore annually.

FISCAL AND RESOURCE IMPACT:

23 There are no fiscal impacts. Selection of Mayor Pro Tempore is an activity of the City Council’s annual workplan.

CEQA (California Environmental Quality Act):

This action is not a project. Selection of a Mayor Pro Tempore is an administrative governmental activity that will not result in direct or indirect physical changes in the environment.

24 CITY COUNCIL STAFF REPORT
MEETING DATE: December 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 wants the following items agendized at a future meeting for discussion:

1. Consider providing more lead time for posting City Council agendas;

2. Consider a discussion on the Agricultural Mitigation Policy 18.152.050 - Mitigation ratio;

3. Consider a discussion on potential funding mechanisms for public art;

4. Consider revisiting City Council Policy 21-02, City Council Funding Requests;

5. Consider a discussion on special event security requirements;

6. Consider revisiting the Economic Development Blueprint; and

7. Consider a discussion on imposing a Commercial Vacancy Tax.

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
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
2022-2023 Strategic Priorities
Community Outreach, Engagement, and Messaging
Economic Development
Guiding Documents
Economic Blueprint
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

24 Council report will then be placed on an upcoming agenda for Council discussion and consideration.

Below are brief descriptions of several items proposed for Council consideration.

1. Consider providing more lead time for posting City Council agendas (requested by Council Member Martinez Beltran, attachment 2)
Per the Ralph M. Brown Act, Government Code 54954.2, the legislative body of the local agency shall post the City Council agenda at least 72 hours (Sunday 6:00 p.m.) before a regular Wednesday meeting at 6:00 p.m. Current practice for the City of Morgan Hill has been to post City Council agendas the Friday before the Council meeting.

A Council Member has requested City Council meeting agendas be posted with more lead time to allow more time to prepare and inform the Community.

Staff is seeking direction from the City Council on whether they would like to agendize this item for a formal discussion on creating a policy to post agendas with a designated amount of lead time outside of the Brown Act requirement.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 4 hours.

2. Consider revisiting Agricultural Mitigation Policy 18.152.050 - Mitigation ratio (requested by Council Member Martinez Beltran, attachment 3) The City's Agricultural Lands Preservation Program supports preserving open space/agriculture permanently. The program sets forth mitigation to address the conversion of agricultural lands within the city limits and identifies policies and procedures for preserving viable agricultural lands and creating a greenbelt along the southern edge of the City's sphere of influence boundary. The Mitigation Ratio states, "a minimum of one acre of agricultural land (1:1 mitigation ratio) shall be preserved for each acre of agricultural land changed to a non-agricultural use." In 2020, the State reevaluated the farmland-type designations, which further reduced prime farmland in the City and the City's sphere of influence.

A City Council discussion on the Agricultural Lands Preservation Program - Mitigation Ratio was requested to reconsider directing mitigation funds to a local urban forestry plan as part of the City's Climate Action Plan and Agricultural Plan.

Staff is seeking direction from the City Council on whether they would like to agendize this item for a formal discussion on the mitigation ratio.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 20 hours.

24 3. Consider a discussion on funding mechanisms for Public Art Funding (requested by Mayor Turner, attachment 4)
The City of Morgan Hill established art goals in the Morgan Hill 2035 General Plan and Downtown Specific Plan to enhance the visibility of art and elevate creative culture. The City has an extensive art program guided by the Library Culture and Arts Commission.

However, this program is entirely opportunistic and has no dedicated funding source that contributes to the City's Art Fund. Therefore, there is no discretionary funding to support the installation and maintenance of art in public spaces or private development.

Mayor Turner requested the City Council discuss options for public art funding sources.

The staff is seeking direction from the City Council on whether they would like to agendize this item.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 10 hours.

4. Consider revisiting City Council Policy 21-02, City Council Funding Requests (requested by Mayor Turner, attachment 4, and Council Member Borgioli, attachment 5) In 2021, the Council adopted City Council Funding Requests Policy 21-02 (attachment 6) to establish a process for community organizations to request funding to support fee waivers, event sponsorship, and other funding requests from the City Council. The policy is intended to allow the City Council to fully evaluate all funding requests simultaneously, along with budget appropriation.

On October 4, 2023, a funding request was brought to the City Council and the discussion identified the need to revisit CP-21-02 and consider revising policy timelines and terms. City Council Member Borgioli and Mayor Turner formally requested the policy be revisited.

Staff is seeking direction from the City Council on whether they would like to agendize this item and consider revisions.

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

5. Consider a discussion on special event security requirements (requested by Council Member Martinez Beltran, attachment 7)
In recent years, large special events and community gatherings have been under heightened scrutiny due to the dual challenges posed by the ongoing COVID-19 pandemic and an increase in gun and mass violence incidents. As we return to normalcy, the City of Morgan Hill has cautiously assessed the safety measures and protocols governing festivals and gatherings to safeguard the Community.

24 A City Council discussion on festival safety, fencing, requirements, etc. was requested by Council Member Martinez Beltran so that the City Council and the public better understand what is required and the process to obtain approval for festivals and events in Morgan Hill. Staff prepared a "Special Event Permit Process – Security Requirements and Information" memo (attachment 8) for the City Council and Community on November 17, 2023; subsequently, the City Council request was resubmitted.

Staff is seeking direction from the City Council on whether they would like to agendize this item for a formal discussion on special event safety protocols.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 10 hours.

6. Consider revisiting the Economic Development Blueprint (requested by Council Member Martinez Beltran, attachment 9)
In 2017, the City adopted the Economic Blueprint to further the Community's quality of life by attracting investment, development, and jobs to ensure continued economic prosperity. The Economic Blueprint is founded on guiding principles from the 2035 General Plan. It incorporates feedback from over 400 residents, businesses, and Community leaders engaged and invested in the future of Morgan Hill. The Economic Blueprint identifies four key strategies for Morgan Hill's future growth and fiscal sustainability. Those four industries are:

Innovation and Advanced Manufacturing: grow existing companies, attract new industries, and grow professional jobs.
• Retail: grow retail offerings and strengthen commercial nodes. • Tourism: grow leisure, agriculture, wine country & recreational tourism. • Healthcare: grow and foster the medical service and diagnostics industry by attracting services and facilities.

The Economic Blueprint has been a productive tool to direct strategies, policies, and actions to support economic development and attract investment. While some additional strategies, policies, and actions can be applied to the four targeted industries, the Economic Blueprint remains relevant as it relates to the existing market opportunities.

Council Member Martinez Beltran requested revisiting the Economic Development Blueprint to focus on tourism.

Staff is seeking direction from the City Council on whether they would like to agendize this item for a formal discussion on revisiting the Economic Development Blueprint.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 10 hours.

24 7. Consider a discussion on imposing a Commercial Vacancy Tax (requested by Council Member Borgioli, attachment 10)
A commercial vacancy tax is a policy tool employed by municipalities to address issues related to empty or underutilized commercial properties. Commercial vacancy taxes are levied on property owners who leave their commercial spaces vacant for an extended period. The primary goal is to encourage property owners to either occupy or lease their properties, thus stimulating economic activity and preventing the negative externalities associated with vacant buildings, such as blight and reduced property values. By incentivizing property owners to utilize their commercial properties, local governments aim to foster a vibrant business environment, although this tool can be considered business-unfriendly.

Council Member Borgioli requested a discussion on options to impose such a tax. Staff is seeking direction from the City Council on whether they would like to agendize this item for a formal discussion.

The estimated staff time to prepare a full City Council Staff Report on this topic is approximately 5 hours. Additionally, the estimated staff time to prepare the ballot measure is approximately 15 hours, and the cost for the ballot measure is about $50,000 if placed on the ballot of a regular election in which there are also council seats on the ballot.

COMMUNITY ENGAGEMENT:

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

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

At several City Council meetings, Council Members directed staff to bring back these topics for Council consideration.

FISCAL AND RESOURCE IMPACT:

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

CEQA (California Environmental Quality Act):

Not a Project.

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

From: Yvonne Martinez Beltran
To: Christina Turner
Cc: Michelle Bigelow; Edith Ramirez; Donald Larkin
Subject: Written Request Agendas be posted with more time and not before weekend Date: Wednesday, September 27, 2023 2:38:33 PM
Importance: High
6/7/2023 Martinez Beltran longer time for agendas
Over the past 5 years, there have been numerous requests from the public regarding our agendas at meetings, workshops and public comment and new Council Members requesting the Council Meeting Agendas be posted with more time before Council Meetings and not before the weekend. These requests have included suggesting not posting before the weekend. We often know that items are coming on a certain date, have deadlines to meet for items or have to inform applicants to be in attendance. Specifically, we had a request recently at a public comment again and therefore, it warrants the Council discussing the topic.

In Community,
Yvonne Martínez Beltrán
Councilwoman
City of Morgan Hill

From: Yvonne Martinez Beltran
To: Christina Turner
Cc: Jennifer Carman; Donald Larkin; Edith Ramirez
Subject: Written Request for Future Agenda item to revisit Ag Mitigation policy 18.152.050 - Mitigation ratio.

Date: Wednesday, September 27, 2023 2:38:25 PM
Importance: High
Recently, a draft EIR found a project to have significant impacts converting acres of prime farmland. Our agricultural mitigation policy calls for a minimum of one acre of agricultural land (1:1 mitigation ratio) shall be preserved for each acre of agricultural land changed to a non-agricultural use but does not specify where the mitigation shall occur, within Morgan Hill or otherwise or what type of mitigation it should be.

Morgan Hill has lost orchards and tree canopy and is poised to lose more due to continuing development, and learning of a recent grant to all Santa Clara jurisdictions to implement an urban forestry plan, as well as other grants that may be able to work in tandem to restore some of those trees lost. I would like to reconsider directing mitigation to a local urban forestry plan as part of our climate action plan and our agricultural plan. This could be a City or downtown orchard paying tribute to our agricultural past while also serving to further our city beautification and uniqueness for local residents and visitors to enjoy, while restoring some of the tree canopy Morgan Hill has lost.

Therefore, I am requesting we have a Council discussion revisiting our agricultural mitigation policy 18.152.050 - Mitigation ratio.

In Community,
Yvonne Martínez Beltrán
Councilwoman
City of Morgan Hill

From: Hilary Holeman
To: Hilary Holeman
Subject: FW: Future Agenda Items
Date: Friday, November 3, 2023 11:38:13 AM
From: Mark Turner <[email protected]>
Sent: Thursday, October 5, 2023 10:45 AM
To: Christina Turner <[email protected]> Subject: Future Agenda Items
Hi Christina,
Here are the paragraphs for the two items brought up last night under Future Agenda Items. I don’t have my notes with me and I don’t recall the policy number for the non-profit item.

Public Art Funding
Public art is an important part of a community’s character. There are many public art projects we could commission, however, there is no funding to initiate them. An ongoing funding stream for public art is necessary if a community plans to be serious about art.

The benefits are numerous. Implementing a contractor fee based revenue stream dedicated to public art would provide the funding necessary for ongoing art projects to be realized.

Review Policy CP 21-02
In order to avoid subjective conversations around the funding of non-profit events that fail to meet certain criteria in the policy, the council should review and edit the policy as needed so that deadlines and other criteria are clearly defined, providing city staff the ability to determine if a request rises to the level of council review and approval.

Thanks so much,
Mark
Get Outlook for iOS

From: Gino Borgioli <[email protected]>
Sent: Wednesday, October 11, 2023 2:32 PM
To: Christina Turner <[email protected]> Subject: Funding policy
Christina
Below are several screen shots of the Funding Policy, I’ve highlighted the areas of concern and emphasis especially of Policy guidelines related to the March deadline date spelled out throughout the document, this is very clear and not ambiguous.

Number 5 spells out that staff ‘shall’ not accept applications beyond the March timeframe. I feel it is a tremendous waste of time on ‘staff’ time to entertain any applications beyond the March deadline, period.

In number 2 below it again states applications are due annually, again very clear…..

In the Policy Number 1 below, it states that the organization ‘must’ be a non profit, I do not believe that an organization that goes out and finds a non profit and tries to go under their non profit status is a sincere organization for our community.

IF staff e entertains any non profit, their non profit documentation should be provided with the application.

In the case of the recent requests, if the soccer non profit agreed to bring the ‘non’ non profit into their organization, then staff should ask for the non profits partner agreement in addition to placing the ‘non’ non profit under their status. I believe that the insurance company would have a problem with doing such a partner agreement. In addition, is this legal in the eyes of the IRS? Question, did staff ask for the partner agreement and insurance document stating acceptance of this group? In the policy number 1 below, it clearly states the issue of non profits, if the organization is not a nonprofit, no further action should be entertained.

In. Item ‘C’ below, I would question why the expenses are so far away from the revenue, unless theirs overwhelming reasons, this is not a value add both for the organization nor the city as this poses some jeopardy as to accepting other organizations of the same nature.

The last several document below after C just highlights the non profit question and the legitimacy to IRS standards.

Finally, the section that states a CC member can bring forward an item after the March timeframe should be completely removed from this policy. Causing enormous extra work for staff and the council is not conducive to our organization, using a CC members influence in this manner I believe is bordering ethical concerns. So item 6 B and C should be eliminated.

Sent from my iPad

CITY OF MORGAN HILL

CITY COUNCIL POLICIES AND PROCEDURES
CP-21-02
SUBJECT: CITY COUNCIL FUNDING REQUESTS
EFFECTIVE DATE: NOVEMBER 3, 2021
REVISED DATE: NA
ORIGINATING DEPARTMENT: COMMUNITY SERVICES DEPARTMENT
Purpose
The purpose of this policy is to establish a process for community organizations to request funding to support fee waivers, event sponsorship, and other funding requests from the City Council. The policy is intended to allow the City Council to fully evaluate all funding requests at one time along with budget appropriation.

Policy

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

2. Application Availability and Deadline
a. Applications for the next Fiscal Year (July-June) will be available on the City’s website annually in February.
b. Completed applications will be due annually in March.

3. Review and Approval Process
a. Applications will be reviewed by the City staff.
b. Funding applications and details will be included annually in the Budget Development or Mid-Cycle Budget Review process.
c. The City Manager will make recommendations on funding to the City Council based on established Council priorities and funding constraints. d. The City Council shall award and include final funding within the Budget.

4. Reporting Requirements
DocuSign Envelope ID: 87764CAC-F5F2-4AC2-921C-27D9BF34420E

a. Within thirty days following the conclusion of the funded activity, the organization must submit a report to the City reporting out pertinent information related to the activity. For ongoing activities, an annual report must be submitted by July 30 for the prior fiscal year. b. The report shall include a record of the use of City funds and statistics and information that provides details on the activity’s impact to the community.

5. Late Requests
a. Requests received after the deadline shall not be accepted by City staff.

6. Council Member Initiated Event and Fee Waiver Requests a. A member of the City Council may request a fee waiver or funding be provided for an event by applying with the above application process by the March deadline. b. All Council Member initiated requests occurring after the March deadline must be provided to the City Manager 90 days in advance of the event to allow sufficient time to bring to City Council for approval.
c. The City Staff shall prepare a report for the City Council for approval of any Council Member initiated requests.

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

APPROVED:
_______________________________

RICH CONSTANTINE, MAYOR
DocuSign Envelope ID: 87764CAC-F5F2-4AC2-921C-27D9BF34420E

From: Yvonne Martinez Beltran
To: Christina Turner
Cc: Shane Palsgrove; Donald Larkin; Edith Ramirez
Subject: Written Request for Future Agenda Item: Festival Safety, Fencing, etc Date: Wednesday, September 27, 2023 2:38:30 PM
Importance: High
5/3/2023 Martinez Beltran requested discussion on festival safety and fencing In July 2019, a mass shooting happened at the Gilroy Garlic Festival which continues to impact our community. We’ve continued to see gun violence occurring throughout the nation, including the 2022 Uvalde, Texas elementary shooting. Then in March of 2020, just before the spring and summer seasons, we experienced a complete shelter in place shut down, halting any and all community gathering, events and festivals nationwide for public health and safety concerns due to Covid-19.

Now that the public health situation allows us to convene again in the community, many of those community events have been trying to return. However, with public safety concerns for gun violence or threats we have experienced many festivals and events cancelled due to new security requirements, costs or accommodations.

Therefore, I request we have a discussion on festival safety, fencing, requirements, etc so that the City, Council and Public may come to a clear understanding of what is allowed, required, and what the process is to gain approval for festivals and events in Morgan Hill.

In Community,
Yvonne Martínez Beltrán
Councilwoman
City of Morgan Hill

1 Memorandum
Date: November 17, 2023
To: City Council
From: Christina Turner, City Manager
Subject: Special Event Permit Process – Security Requirements and Information Special events occur throughout the year in Morgan Hill. Events occurring on public property within the City with attendance of more than 50 people, alcohol served or sold, amplified music, and or a jump house or other entertainment attraction, require a special event permit. All permits are reviewed by the City Departments that are impacted. The Police and Fire Departments provide the review and impose requirements related to security and fencing.

The special event permit process begins with the submission of a completed application and threat assessment form. These documents are available at the following link:
• https://www.morganhill.ca.gov/DocumentCenter/View/474/Special-Event-Application These documents ask questions about the planned event including the event date, location, contact, anticipated attendance, road closures, security and EMS, City services requested, and more to aid in the permitting review process. In particular, the threat assessment form collects information from event organizers that is used specifically by public safety to plan for the events and impose requirements for events.

Along with the application, supportive documentation is required such as insurance, event maps, traffic control plans, and copies of notifications.

Applications are required to be submitted 4 to 6 months in advance. Events with 50-2,500 anticipated attendees must submit their application packet 4 months in advance. For events with an anticipated attendance of over 2,500, applications are due 6 months in advance.

One the completed application is submitted, the application, threat assessment, maps/traffic control plans, and other submitted documentation is sent to various departments within the City for review. Review is done by the Fire Department, Morgan Hill Police Department, Engineering Division, Maintenance Division, and, depending upon location, the Recreation Division. Each department provides requirements based on the information included in the event permit application and supportive documentation.

2 The Morgan Hill Police and Fire Departments specifically provide comments and requirements related to the safety and security of the event. It is important to note that no two events are the same. Every event is different and with the differences, there are different threats and risks, which result in specific requirements being issued for each event. The Police and Fire Departments utilize best practices to develop the requirements and plan for the events. It is also important to note that no two event organizers plan in the same manner. Some event organizers are strong planners that develop strong safety and security measures on their own, while others are inexperienced and struggle to develop appropriate plans. Ultimately, the security and or fencing requirements depend upon numerous event attributes, which does not allow for a standard one size fits all security and safety plan for all events.

These requirements established by Public Safety and other Departments are turned in to the Community Services Supervisor that works on the administration of the permitting process. These requirements are then communicated to the event organizer and included in the final event permit documentation. Should an applicant disagree with event requirements, meetings with Departments are scheduled and those issues are discussed.

It is our goal to assist event organizers in planning safe and successful events that create a minimal impact on the community and residents surrounding the events.

From: Hilary Holeman
To: Hilary Holeman
Subject: FW: 11/15 Agenda and requested items
Date: Friday, November 17, 2023 4:42:20 PM
From: Yvonne Martinez Beltran <[email protected]> Sent: Thursday, November 9, 2023 11:18 PM
To: Christina Turner <[email protected]> Subject: 11/15 Agenda and requested items
Hello,
I also asked in September to have a conversation to develop policy on festivals and most importantly update the Economic Blueprint and Economic development strategy. When will we see these given spring festivals need to plan now and economic development decisions impacted by the blueprint will be coming? I would hope since it was requested sometime ago as well as again at our mid year goal setting to review the Economic Blueprint that this will happen before any decisions are made.

I was surprised to find the auto dealer overlay (a revised attempt to convert instead of 100% to 80% of the site's zoning to auto dealership) was presented to the Planning Commission after the Council did not vote in favor of the initial plan and before reviewing the Economic Blueprint. I also understand the planning commission had considerable concerns and it only passed so that it could be redone. I think updating our Economic Blue Print would help clarify the strategy we are deploying as well as the focus of City efforts and resources, as well as the time of everyone else involved.

I value your leadership, work and time and this information would be very helpful as well as if I could anticipate these conversations much sooner than two weeks out to ensure I'm able to research the topics.

Thank you.

In Community,
Yvonne Martínez Beltrán (pronouns: she/her/hers)
Councilwoman
City of Morgan Hill
17575 Peak Avenue, Morgan Hill, CA 95037
[email protected]
morganhill.ca.gov | facebook | twitter

From: Christina Turner
To: Hilary Holeman; Edith Ramirez; Donald Larkin; Jennifer Carman Subject: FW: Future Agenda Item Request 11/15
Date: Monday, November 20, 2023 12:00:48 PM
From: Gino Borgioli <[email protected]>
Sent: Friday, November 17, 2023 8:03 PM
To: Christina Turner <[email protected]> Subject: Re: Future Agenda Item Request 11/15
Thank you Christina, I was not considering residential at all because it is not a subject on concern.

What is a subject of concern and discussion is the empty location on the corner of Monterey and Main of the old El Toro . I get consistent questions and emails on this location asking why is it vacant on a long basis. Sometimes businesses have turnovers but owners usually replace businesses with other occupants in a relatively short period of time.

Given that, I reached out to surrounding communities especially to the north and many cities have specific ordinances supporting the downtown area involving limitations of businesses to unoccupancy of a storefront in a business district to a maximum of 6 months without being fined because of an ordinance.

In our case relative to el toro, it is truly a sore point to the entrance of MH down town this there should be an ordinance indicating a occupancy within a 6 month time period following in-occupancy.

Every city has different ways to issue fines so I leave the issue of fines to the experts.

The bottom line is empty store fronts in the downtown areas are detrimental to the overall impact of attracting families and people to the downtown areas.

A proposal based on the above go issue for for non occupancy is an approach to benefit businesses and residents in the downtown areas.

A discussion on this subject would be most beneficial.

Regards,
Gino Borgioli
408-981-2977
[email protected]

From: D. Muirhead
To: CC Public Comment
Subject: [EXTERNAL] comment Morgan Hill City Council November 15 #16 future agenda items 1,2,5 Date: Monday, November 13, 2023 9:37:40 PM
Dear Morgan Hill City Council,
A comment for your meeting November 15 2023
Item #16. PROPOSED FUTURE COUNCIL INITIATED AGENDA ITEMS

1. provide more lead time for posting City Council agendas;

2. discuss Agricultural Mitigation Policy Mitigation ratio;

5. discuss options for providing public comment and transparency of remote meeting participants.
-----

1. provide more lead time for posting City Council agendas The Administration should stop using the Brown Act minimum posting of 3 days as a ceiling. Note that the staff report mis-states this as "creating a policy to post agendas with a designated amount of lead time *outside* of the Brown Act requirement". Ideally there would be advance notice of proposed agenda items (City Manager) plus enough time for the actual meeting agenda to get a Public Records Request processed. This is not possible with the current packet dump on the Friday before the meeting. And note just how many times the following Monday is a holiday so no access to staff for clarifications nor forwarding received comments to Council Members and Staff for consideration.

The Water District posts the first full packet 10 days in advance and the final version 3 days in advance with notations for items which have been modified.

The County and VTA use agenda notifications to announce the addition of supplements as they become available. Note the the City Clerk did this for Council meetings for a few months several years ago.

At the risk of aggravating certain people, I request that the Council act as bosses rather than cheerleaders and direct the Administration to give Council Members and the Public a less-constrained amount of time to read, research, reflect, and respond to agenda items. -----

2. discuss Agricultural Mitigation Policy Mitigation ratio; While our urban forest will be an important component of mitigating our warming climate, I am strongly opposed to diminishing our limited agricultural mitigation abilities by diverting them to serve City trees.

The preferred model for supporting agricultural lands in South County is best modeled after the Habitat Agency approach, substituting "agriculture" in place of "conservation et al.": The mandate for land acquisition is intended to create a Reserve System characterized by large contiguous land holdings that are more resilient for habitat and species

conservation. To meet this intent, the Habitat Agency focuses effort on purchasing properties that are adjacent to existing open space lands and wildlife corridors, and on collaborating with agency and non-profit partners to enroll new lands.
-----

5. discuss options for providing public comment and transparency of remote meeting participants.

The only details on the change outlawing remote comments (made by the Administration and not the City Council) appeared in the San Jose Mercury News on October 20. The 411 only said "City decided".

I don't accept that vile comments create a "hostile work environment" that automatically trumps the public's right to participate in the discussion.

The City has bragged about the increased participation due to remote access, but now claims public comment can only be allowed in person or in writing.

Regardless of the outcome, this decision rightly belongs to our elected officials and not the Administration.
-----
Thank you for your consideration, Doug Muirhead, Morgan Hill WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

From: Christina Turner
To: Michelle Bigelow
Subject: Wednesday, November 15, 2023 City Council Meeting Questions Supplement for Item 16 - PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL INITIATED

AGENDA ITEMS
Date: Monday, November 13, 2023
Staff Report: A Council Member has requested City Council meeting agendas be posted with more lead time in order to allow more time to prepare and inform the community.

Question: Currently we are exceeding the requirement of the Brown Act by more than 24hrs. What issues can arise relative to changes in the agenda items whereby the staff has to alter or change the agendized item after early release of the agenda item?
Response: If changes to the agenda or staff reports were required after the agenda is published, staff would supplement the staff report changes or amend the agenda as needed.

Staff Report: Attachment 2: City Council Policy 97-01 – Rules for the Conduct of City Council Meetings, Placement of Items on the Agenda, and Matters to be Reconsidered.

Section 8. Decorum

8.1 Council Members: Members of the City Council value and recognize the importance of the trust invested to them by the public to accomplish the business of the City. Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the City Council.

Question: This should be part of the ethics of an elected official relative to conduct. Where is the ethics policy located?
Response: The ethics policy is City Council Policy CP 05-01 which is separate from City Council Policy 97-

01. Staff Report: Attachment 3: Request Agendas be posted with more time and not before weekend Over the past 5 years, there have been numerous requests from the public regarding our agendas at meetings, workshops and public comment and new Council Members requesting the Council Meeting Agendas be posted with more time before Council Meetings and not before the weekend.

Question: Precisely how many requests of this nature have requested more time and by whom…in addition, the city is not only complying with the Brown Act but is far exceeding the requirement by more than 24hrs. So, what is the real issue, is it the one or two people wishing this or 50% or more?

Response: Specifics on this statement would have to come from the Council Member requesting this item.

City staff is aware of one community member requesting the agenda be published sooner on several occasions.

Staff Report: Attachment 4: Request for Future Agenda item to revisit Ag Mitigation policy 18.152.050 – Mitigation ratio.

This could be a City or downtown orchard paying tribute to our agricultural past while also serving to further our city beautification and uniqueness for local residents and visitors to enjoy, while restoring some of the tree canopy Morgan Hill has lost.

Question: Precisely what tree canopy’s have been lost?
Response: Specifics on this statement would have to come from the Council Member requesting this item.

City staff’s response is that in most cases any ag land conversion would not result in much tree canopy lost. Orchards aren’t tree canopy for an urban area. Staff can research how many development permits removed ag land and removed trees, should the City Council decide for this item to return to City Council for a formal discussion.

25 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
INTRODUCE ORDINANCE AMENDING SECTIONS 2.04.020 SALARY
OF COUNCIL MEMBERS AND 2.04.030 SALARY OF THE MAYOR OF
THE CHAPTER 2.04 CITY COUNCIL OF THE MUNICIPAL CODE OF

THE CITY OF MORGAN HILL

RECOMMENDATION(S)

1. Open/close public hearing;

2. Waive first and second reading of the Ordinance; and

3. Introduce Ordinance by title.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
2022-2023 Strategic Priorities
Fiscal Sustainability
Community Outreach, Engagement, and Messaging
REPORT NARRATIVE:

On June 29, 2023, Governor Gavin Newsom signed Senate Bill 329 (SB 329) into law, which amends Section 36516 of the Government Code, allowing for the first city council member pay cap increases in nearly four decades. SB 329 increases the maximum amounts of salary that can be approved by city ordinance, based on the population of the city. For cities with populations over 35,000 up to and including 50,000, the salary limit for councilmembers is $1,275 per month. The salary limit may be increased from the 2024 cap in an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary or an amount equal to inflation since January 1, 2024, based on the California Consumer Price Index (not to exceed 10% per calendar year).

SB 329 does not set a maximum salary for the mayor or treasurer. Staff is proposing that they receive a salary increase at the same percentage as the City Council or

25 $3,397 per month for the mayor and $815 per month for the treasurer, respectively.

While SB 329 goes into effect on January 1, 2024, it is important to note that pursuant to Government Code section 36516.5, any council salary increase may take effect only when at least one member of the council commences a new term.

COMMUNITY ENGAGEMENT:

Inform
A 10-day public hearing notice for the December 6, 2023 City Council meeting was published on Friday, November 24, 2023 in the edition of the Morgan Hill Times.

ALTERNATIVE ACTIONS:

The Council could choose not to adjust the Councilmembers, Mayor, and or City Treasurer's salary or adjust a different amount.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 21, 2006, the City Council adopted Ordinance 1780 New Series, setting the salary of Council Members at $313/month and the salary of the Mayor at $834/month.

FISCAL AND RESOURCE IMPACT:

The fiscal impact of the proposed salary adjustment is approximately $85,000/year to the General Fund.

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.

ORDINANCE NO. xxxx, NEW SERIES

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL AMENDING SECTIONS 2.04.020
(“SALARY OF COUNCIL MEMBERS”) AND 2.04.030
(“SALARY OF THE MAYOR”) OF TITLE 2
(“ADMINISTRATION AND PERSONNEL), CHAPTER 4
(“CITY COUNCIL), OF THE MORGAN HILL

MUNICIPAL CODE TO ADJUST THE SALARIES OF

COUNCIL MEMBERS AND THE MAYOR

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

Section 1. Section 2.04.020 of Chapter 4 of Title 2 of the Municipal Code is amended to read as follows:
“2.04.020--Salary of council members.

Pursuant to the provisions of Section 36516 of the Government Code, each of the members of the city council shall receive a monthly salary of three hundred dollars thirteen dollars payable one thousand-two hundred seventy-five dollars ($1,275) at the same intervals as other city employees are paid. This amount was calculated by first taking the existing monthly city council member salary of three hundred dollars and increasing this amount by the two and one half percent "change in the consumer price index for urban wage earners and clerical workers" for the San Francisco-Oakland-San Jose, California local area for the year ended December 2004, and then by increasing that product by the one and seven tenths percent "change in the consumer price index for urban wage earners and clerical workers" for the San Francisco-Oakland-San Jose, California local area for the year ended December 2005.

Pursuant to Section 36516.5 of the Government Code, this section shall take effect whenever one or more members of the city council begins a new term of office, after the adoption of the ordinance codified in this section.

Section 2. Section 2.04.030 of Chapter 2 of Title I of the Municipal Code is amended to read as follows:

2.04.030--Salary of the mayor.

Pursuant to Section 36516.1 of the Government Code, which permits a mayor elected pursuant to Sections 34900 to 34904, inclusive, of the Government Code to be provided with compensation in addition to that which he or she receives as a council member, the mayor of the city shall receive an additional monthly salary of two thousand-one hundred twenty-two dollars ($2,122)monthly salary of five hundred twenty-one dollars payable at the same intervals as other city employees are paid. This amount was calculated by taking the existing monthly incremental mayoral salary of five hundred dollars and increasing this amount by the two and one half percent "change in the consumer price index for urban wage earners and clerical workers" for the year ended December 2004, and then by increasing that product by the one and seven tenths percent "change in the consumer price index for urban wage earners and clerical workers" for the year ended December 2005. This salary is to be paid in addition to the amount specified in Section

City of Morgan Hill
Ordinance No. _____, New Series

2.04.020 (Salary of council members).

Pursuant to Section 36516.5 of the Government Code, this section shall take effect whenever one or more members of the city council begins a new term of office, after the adoption of the ordinance codified in this section.

Section 2. Severability. Should any provision of this ordinance be deemed unconstitutional or unenforceable by a court of competent jurisdiction, such provision shall be severed from the ordinance, and such severance shall not affect the remainder of the ordinance.

Section 3. Effective Date; Posting. This ordinance shall become effective on the 31st day after adoption. 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 DAY OF , 20 , AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE DAY OF_________, 2023

AND SAID ORDINANCE WAS DULY PASSES AND ADOPTED IN ACCORDANCE WITH LAW 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
 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 Ordinance No. xxxx, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the_______ day of ______2023.

City of Morgan Hill
Ordinance No. _____, New Series

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

DATE:

MICHELLE BIGELOW, City Clerk