Morgan Hill City Council
December 6, 2023

Special/Regular Meeting Agenda
City Council
Mark Turner - Mayor
Rene Spring - Mayor Pro Tem
Gino Borgioli - Council Member
Marilyn Librers - Council Member
Yvonne Martínez Beltrán - Council Member
Wednesday, December 6, 2023 5:30 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

AMENDED AGENDA
Council Member Gino Borgioli will be participating remotely as follows:
2500 Grant Road
Mountain View, Ca
Public comment shall be allowed from this location.
_____________________________________________________________ Morgan Hill City Council meetings are held in person with the option for the public to attend in-person or view by teleconference/video conference. Information on how the public may observe and participate in the meeting is located below.

MEETING PARTICIPATION AND PUBLIC COMMENT
City Council meetings will be live-streamed on Channel 17, the City’s website, and the City’s Facebook page.

Those members of the community that would like to view the meetings remotely may do so by joining virtually at: https://bit.ly/MHCityCouncilMeeting, by calling (669) 900-9128, then enter the webinar id: 873 3200 8380# or on our website at https://www.morganhill.ca.gov/2101/Agendas-Minutes.

Public comment may only be provided in the following ways:

December 6, 2023
2 • In-person at the City Council Meeting;
• In writing
o Via email to [email protected]; or
o Hard copy hand delivered or by mail to the City Clerk at 17575 Peak Avenue, Morgan Hill, CA 95037.

Please email your comments to the City Clerk no later than 3:00 p.m. on Tuesday (the day before the City Council meeting) for your comments to be submitted to the members of the City Council with sufficient time to review the comments. You may continue to provide written comments up to noon on Wednesday (the day of the meeting) although Council Members may not have sufficient time to review them before the meeting. Public comments submitted to the City Clerk after 12:00 p.m. the day of the meeting will be provided to the City Council as time allows.

Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website. It is recommended that you do not include any personal information that you do not want to be posted on the web.

SPECIAL/REGULAR MEETING
A special meeting of the City Council is called at 5:30 p.m. for the purpose of conducting a closed session.

SPECIAL MEETING
5:30 p.m. Closed Session

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

CLOSED SESSION
Conference with Legal Counsel – Anticipated Litigation
Significant exposure to litigation pursuant to
§ 54956.9(b): (Two Cases)

December 6, 2023
3 OPPORTUNITY FOR PUBLIC COMMENT

ADJOURN TO CLOSED SESSION

REGULAR MEETING
6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PRESENTATIONS
YAC Presentation

CITY COUNCIL REPORTS
Council Member Spring

CITY MANAGER'S REPORT

CITY ATTORNEY'S REPORT

OTHER REPORTS

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

ADOPTION OF AGENDA

December 6, 2023
4 CONSENT CALENDAR
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.

1. ACCEPT THE ANNUAL SENATE BILL (SB) 165 REPORT FOR COMMUNITY FACILITIES DISTRICT NO. 2014-1 (FISHER CREEK)
Recommendation:

Accept and file the report.

2. ACCEPT THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Recommendation:

Accept the City’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023.

3. ADOPT RESOLUTION APPROVING AND MAKING FINDINGS RELATED TO THE ASSEMBLY BILL (AB) 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR 2022-23
Recommendation:

1. Adopt resolution making findings for unexpended development impact fees; and

2. Accept the annual development impact fee report.

4. ADOPT RESOLUTION AND ADOPT ORDINANCE 2349, NEW SERIES, ADDING CHAPTER 3.26 (“TOURISM BUSINESS IMPROVEMENT
DISTRICT”) TO TITLE 3 (“REVENUE AND FINANCE”) OF THE MORGAN

HILL MUNICIPAL CODE ESTABLISHING AND RENEWING THE MORGAN

HILL TOURISM BUSINESS IMPROVEMENT DISTRICT
Recommendation:

1. Adopt resolution; and

2. Waive the reading, adopt Ordinance No. 2349, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

5. ADOPT ORDINANCE 2350, NEW SERIES, ADDING SECTION 18.30.070 (VEHICLE SALES OVERLAY ZONE (-VS)) OF CHAPTER 18.30 (OVERLAY ZONES AND COMBINING DISTRICTS) OF TITLE 18 (ZONING) OF THE

MUNICIPAL CODE OF THE CITY OF MORGAN HILL ESTABLISHING THE

VEHICLE SALES OVERLAY ZONE (-VS) TO ALLOW VEHICLE- RELATED

December 6, 2023
5 USES AND OTHER COMPATIBLE USES IN DIFFERENT PARTS OF THE

CITY THAT CAN SUPPORT SUCH A USE
Recommendation:

Waive the reading, adopt Ordinance No. 2350, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

6. ADOPT RESOLUTION CERTIFYING COMPLIANCE WITH STATE HOUSING LAWS IN ORDER TO RECEIVE $3,921,000 IN ONE BAY AREA GRANT CYCLE 3 (OBAG 3) FUNDING FOR THE MONTEREY ROAD TRAFFIC,

BICYCLE, AND PEDESTRIAN IMPROVEMENTS PROJECT
Recommendation:

Adopt a resolution for self-certifying compliance with State housing laws that is required for receiving One Bay Area Grant Cycle 3 (OBAG 3) funding for the Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project

7. ADOPT RESOLUTION JOINING BUILD THE FUTURE SANTA CLARA COUNTY
Recommendation:

Adopt resolution joining Build the Future Santa Clara County in advocating for comprehensive and collaborative solutions to solve the child care crisis.

8. ADOPT WEED ABATEMENT RESOLUTION, EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15304(I) Recommendation:

Adopt resolution declaring weeds and brush to be a nuisance and setting the hazardous vegetation public hearing for February 21, 2024.

9. ADOPT RESOLUTION AUTHORIZING CALIFORNIA CLIMATE

INVESTMENTS - DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) FIRE PREVENTION GRANT APPLICATION
Recommendation:

Adopt a resolution authorizing a grant application to the California Department of Forestry and Fire Protection and authorizing the City Manager to execute associated grant documents.

10. APPROVE A THREE-YEAR SERVICE AGREEMENT WITH ALPHA
ANALYTICAL LABORATORIES, INC. FOR A NOT-TO-EXCEED AMOUNT OF $225,000 FOR WATER LABORATORY TESTING AND ANALYSIS SERVICES Recommendation:

Approve and authorize the City Manager to execute and administer a three-year service agreement for a not-to-exceed amount of $225,000 with Alpha Analytical Laboratories, Inc., for water laboratory testing and analysis services.

December 6, 2023
6 11. APPROVE CONTRACT WITH SCS ENGINEERS FOR COMPLETION OF A FOOD WASTE PREVENTION STUDY IN THE AMOUNT OF $111,538
Recommendation:

Authorize the City Manager to enter into an agreement with SCS Engineers for completion of a Food Waste Prevention Study.

12. APPROVE FIRST AMENDMENT TO THE TUCKER CONSTRUCTION ONCALL FENCING CONTRACT, AND AUTHORIZE CITY MANAGER TO

EXTEND CONTRACT UP TO TWO YEARS
Recommendation:

1. Approve the first amendment to the on-call contract for public works projects with Tucker Construction, Inc. for an additional year of services for $150,000, for a total contract amount of $250,000; and

2. Authorize the City Manager to execute and administer two additional oneyear extensions of the on-call contract in annual amounts that would not increase the price of the contract for the immediately preceding year by more than five (5%) annually.

13. APPROVE JOINT POWERS AGREEMENT FOR ENACTMENT OF THE

CITIES ASSOCIATION OF SANTA CLARA COUNTY, JOINT POWERS

AUTHORITY (CASCC JPA)
Recommendation:

1. Approve the proposed Joint Powers Agreement;

2. Authorize Mayor Turner or his alternate, Councilmember Librers, to report approval of the Agreement to the CASCC Board of Directors; and

3. Authorize the City Manager to execute the Agreement.

14. APPROVE SIXTH AMENDMENT TO DESIGN SERVICES AGREEMENT WITH HYDROSCIENCE ENGINEERS, INC. FOR THE NEW SEWER TRUNK LINE PROJECT FOR AN ADDITIONAL AMOUNT OF $280,246
Recommendation:

1. Approve Sixth Amendment to Service Agreement for Design Professionals with HydroScience Engineers, Inc. to provide additional services for the New Sewer Trunk Line to Gilroy project for an additional $280,246, for a total not-to-exceed amount of $2,059,956; and

2. Authorize the City Manager to execute and administer the amended services agreement.

15. APPROVE THE NOVEMBER 15, 2023 CITY COUNCIL MEETING MINUTES

December 6, 2023
7 Recommendation:

Approve Minutes.

16. AUTHORIZE THE CITY MANAGER TO EXECUTE A PURCHASE

AGREEMENT WITH CADENCE TEAM FOR THE NETWORK EQUIPMENT IN THE NOT-TO-EXCEED AMOUNT OF $242,241, INCLUDING CONTINGENCY Recommendation:

Authorize the City Manager to execute a purchase agreement for network equipment with Cadence Team in the amount of $242,241, including a 10% contingency of $22,022.

17. AWARD AND APPROVE AN AGREEMENT WITH IRISH EXCAVATION IN THE AMOUNT OF $74,780 FOR CONSTRUCTION OF THE WOODLAND

BOOSTER STATION RETAINING WALLS
Recommendation:

Approve and authorize the City Manager to execute and administer an agreement with Irish Excavation in the amount of $74,780 to install two retaining walls at the Woodland Booster Station.

18. 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:

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.

19. RECEIVE MONTHLY BUDGET UPDATE AND OCTOBER 2023 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

Accept and file report.

OTHER BUSINESS

20. REVIEW SECTION 15.63 OF THE MUNICIPAL CODE AND PROVIDE

DIRECTION REGARDING THE PROHIBITION OF NATURAL GAS

INFRASTRUCTURE IN NEW BUILDINGS
Recommendation:

December 6, 2023
8 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.

21. PROVIDE DIRECTION REGARDING THE KEEPING OF ROOSTERS WITHIN

CITY LIMITS
Recommendation:

Provide direction regarding whether to prohibit the keeping of roosters within the City of Morgan Hill.

22. PROVIDE DIRECTION TO STAFF ON WHETHER TO ALLOW PUBLIC

COMMENT ON ZOOM
Recommendation:

Provide direction to staff on whether to allow public comment on Zoom.

23. SELECT AND APPOINT CITY COUNCIL MAYOR PRO TEMPORE
Recommendation:

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.

24. PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL

INITIATED AGENDA ITEMS
Recommendation:

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.

PUBLIC HEARINGS

December 6, 2023
9 25. 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:

1. Open/close public hearing;

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

3. Introduce Ordinance by title.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Note: in accordance with Government Code Section 54954.2(a), there shall be no discussion, debate and/or action taken on any request other than providing direction to staff to place the matter of business on a future agenda.

ADJOURNMENT

December 6, 2023
10 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item of interest to the public, you may do so during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less.

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

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

City Council Policies and Procedures (CP 03-01) outlines the procedure for the conduct of public hearings.

Notice is given, pursuant to Government Code Section 65009, that any challenge of Public Hearing Agenda items in court, may be limited to raising only those issues raised by you or on your behalf at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the Public Hearing on these matters.

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

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

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

December 6, 2023
11

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

APPROVED BY: City Manager

YAC PRESENTATION

RECOMMENDATION(S)

1. Each action begins with a verb ( Adopt, Approve, Direct, Accept, etc)

2. Only ONE action per number

3. Number each action ONLY when more than ONE action is recommended

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
Affordable Housing and Homelessness
Community Outreach, Engagement, and Messaging
Economic Development
Transportation
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Communications, Outreach, and Engagement Plan
Economic Blueprint
Fire Services Standards of Coverage
GIS Strategic Plan
Morgan Hill 2035 General Plan
Public Safety Master Plan
Storm Drain Master Plan

Vision Zero
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

POLICY CONSIDERATIONS:

If there are City Council Policy considerations enter them here. If none – delete this section.

At a minimum, the following items must be included. Please feel free to add helpful and/or relevant information not already covered below:

1. Explain the purpose of the Project, Policy, Program, Initiative, etc.

2. Describe what is being proposed (who, what, when, where, why, how & how much)

3. If the Council is required to make certain findings, set forth those findings and the factual support that will allow Council to make each of those findings

4. For contracts, the following must also be included:

1. Explain Bid/Proposal/Quote process

2. Itemized list of Bids/Proposals/Quotes received

3. Rationale for selection of vendor/contractor/consultant

4. Countersigned Agreement must be attached

5. Indicate the next steps if the item is approved.

COMMUNITY ENGAGEMENT:

Choose an option and remove the othersInform/ Consult/ Involve/ Collaborate/ Empower/ Not Applicable For a “new project” staff report:
• Describe your plan for community engagement
For a “project check-in” staff report:
• Provide the community engagement actions to date
• Next steps
For a “project completion” staff report:
- Provide the community engagement actions to date
Community Engagement – indicate what steps have been or will be taken to inform, consult, involve, collaborate, and/or empower the public, including a summary of meeting dates, survey results, open houses, etc. according to the Council’s adopted Public Participation/Engagement Plan. If no community engagement has or will be done, explain why. NOTE: If no community engagement has or will take place, this must be known by the City Manager long before the staff report is routed for approval.

ALTERNATIVE ACTIONS:

Include a brief summary of each feasible alternative available for consideration and the consequences of not taking action. (It is important to include a complete list) - What feasible alternative actions can be taken
- What are the fiscal/resource impacts of the possible alternative actions - What are the impacts of the possible alternative actions If there is no alternative action – type Not Applicable PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Describe all previous actions that have been taken on this item prior to this report by a City Commission and City Council, including fiscal year budget adoption actions.

FISCAL AND RESOURCE IMPACT:

Fiscal:

1. How much will be spent?

2. Is this item budgeted in the current fiscal year? If so, please note the following:

This item is included in the current adopted budget (FY17-18) and is part of the (Name Department) workplan and specify the source of funding including fund, department, account # and project # (if applicable).

3. If the project is not budgeted for in this fiscal year, or if you have not budgeted enough:
• Include a budget scorecard AND resolution
• Indicate that the budget scorecard and resolution are attached • Specify the source of funding, specifically fund, department, account # and project # (if applicable)

4. If there’s a request for additional revenue (e.g. Grant acceptance), include the amount and account number.

Resource:

If significant time is required of teammates, explain the extent of the impact and if the impacts will affect other projects or day to day tasks
CEQA (California Environmental Quality Act):
(Choose one and delete what does not apply) Project / Not a Project / Categorical Exemption / Statutory Exemption
Provide Categorical or Statutory Exemption justification; if a project, describe the CEQA requirements; if it is not a project, provide justification. Below are examples of types of work that qualify as “Not a Project”
As a general rule, any activity directly undertaken by the City is a project for CEQA purposes. Under the CEQA guidelines, the only activities that qualify to be listed as “Not a Project” on a staff report are:

1. Proposals for legislation to be enacted by the State Legislature.

2. Continuing administrative or maintenance activities, such as purchases for

supplies, personnel-related actions, general policy and procedure making (except where the policies and procedures may result in a change to the physical environment).

3. The submittal of proposals to a vote of the people of the state or of a particular community that does not involve a public agency sponsored initiative.

4. The creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

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

Contact the City Attorney’s office of Planning Director if you need help identifying the appropriate CEQA exemption.

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

Dat Nguyen, Finance Director
APPROVED BY: City Manager
ACCEPT THE ANNUAL SENATE BILL (SB) 165 REPORT FOR
COMMUNITY FACILITIES DISTRICT NO. 2014-1 (FISHER CREEK)

RECOMMENDATION(S)
Accept and file the 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:

The Local Agency Special Tax and Bond Accountability Act (“The Act”) requires that any local special tax or local bond measure subject to voter approval contains a statement indicating the specific purposes of the special tax, requires that the proceeds of the special tax be applied to those purposes, requires the creation of an account into which the proceeds shall be deposited, and requires an annual report containing specified information concerning the use of proceeds.

The Act was enacted by Senate Bill 165 and codified in the California Government Code Sections 53410 through 53412. The City's Community Facilities District (CFD) No. 2014-1 (Fisher Creek) falls within these reporting requirements and the attached annual report is intended to comply with the regulation.

COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the Community of the required reporting information for the CFD.

ALTERNATIVE ACTIONS:

1 Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council receives and files the SB 165 Report for CFD No. 2014-1 (Fisher Creek) annually.

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.

SB 165: LOCAL AGENCY SPECIAL TAX AND BOND

ACCOUNTABILITY ACT
Senate Bill 165, filed with the Secretary of State on September 19, 2000, enacted the Local Agency Special Tax and Bond Accountability Act (the “Act”). This Act requires that any local special tax or local bond measure subject to voter approval contain a statement indicating the specific purposes of the special tax, require that the proceeds of the special tax be applied to those purposes, require the creation of an account into which the proceeds shall be deposited, and require an annual report containing specified information concerning the use of the proceeds. The Act only applies to any local special tax measure or local bond measure adopted on or after January 1, 2001, in accordance with Section 50075.1 or Section 53410 of the California Government Code.

Some of the requirements of the Act are handled at the formation of the Special Tax District and others are handled through annual reports. This Section of this report intends to comply with Sections 50075.3 and 53411 of the California Government Code that states:
“The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The annual report shall contain both of the following:

1. The amount of funds collected and expended.

2. The status of any project required or authorized to be funded as identified in subdivision (a) of Sections 50075.1 [and] 53410.”
The requirements of the Act apply to the Funds for the following:

The City of Morgan Hill
Community Facilities District No. 2014-1 (Fisher Creek) Purpose of Special Tax
The special tax provides funding for all or a portion of the costs of the maintenance and monitoring required by the San Francisco Bay Regional Water Quality Control Board for the realignment of Fisher Creek. The special tax funds the cost of maintenance, monitoring and reporting of the Fisher Creek Realignment project; pay for administrative expenses; pay for any amounts required to establish or replenish capital improvement funds, repair and contingency funds or reserve funds; and pay for reasonable anticipated delinquent special taxes.

The project(s) are ongoing on an annual basis.

Collections and Expenditures
Fund Name
06/30/2022
Balance
Amount
Collected(1)(2)
Amount
Expended
06/30/2023
Balance
Special Tax Fund $132,367 $51,659 $33,375 $150,651
(1) Figure represents the total amount levied for Fiscal Year 2022/23, less County Collection Fees of 1.0% of the total levy amount and delinquencies.
(2) Includes interest earned.

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

Dat Nguyen, Finance Director
APPROVED BY: City Manager

ACCEPT THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL
REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023

RECOMMENDATION(S)
Accept the City’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023.

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

The Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR) is presented for your review. Each year the City engages an independent firm to audit the books and accounts of the City’s general ledger. Included in this audit is the review and verification of all finance processes. An annual audit is required by state law and by bond covenants.

The ACFR presents the operations and financial activity of all the City’s various funds, including the General Fund. It includes an unmodified audit opinion from Maze & Associates, the City’s external auditors, stating that the financial statements present fairly the results of operations for the year ended June 30, 2023, in conformance with Generally Accepted Accounting Principles (GAAP). An auditor gives an Unmodified Opinion (or clean opinion) when they do not have any significant reservation in respect of matters contained in the Financial Statements.

A summary of significant highlights follows:

General Fund: The unassigned or unrestricted fund balance decreased by about $0.8 million compared to the prior year despite the absence of approximately $5.5 million in federal stimulus received in the previous year. This is mostly attributable to continued strength and improvement in most revenue categories and conservative spending.

2 Development Services Fund: At the end of FY 22-23, the fund had a negative balance of about $0.4 million, an improvement of about $0.1 million from the prior year. The fund was budgeted with a higher revenue amount than the actual received for the year by about $0.3 million. However, larger budget savings, mainly from conservative spending were more than enough to offset a shortfall in revenue.

Enterprise Funds: Unrestricted net position at June 30, 2023, amounted to $18.9 million for Sewer Operations and $20.0 million for Water Operations. Water Operations’ unrestricted net position increased by $6.0 million compared to the prior year. The operating revenues increased by about $2.2 million compared to the prior year primarily due to increased consumption and rate adjustments. Sewer Operations’ unrestricted net position increased by $2.6 million from the prior fiscal year with operating revenues increased by $0.4 million primarily due to rate adjustments. The Sewer Impact Fund had $20.3 million in net position restricted for capital improvements and expansion, an increase of $0.8 million from the prior year mainly due to higher impact fee collection, while the Water Impact Fund had $3.0 million for the same purpose, a slight increase of $0.1 million from prior year.

COMMUNITY ENGAGEMENT:

Inform
Finance staff presents these audited reports in an effort to keep the City Council, Community, and various lenders and stakeholders informed on the financial health of the organization, which assists each one of the interested parties in making sound financial decisions.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The audited comprehensive financial report is presented to Council each year for the prior fiscal year ending June 30.

FISCAL AND RESOURCE IMPACT:

The resources and costs associated with the audit and preparation of the annual comprehensive financial report are budgeted and included in the Finance Division.

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.

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

Dat Nguyen, Finance Director
APPROVED BY: City Manager

ADOPT RESOLUTION APPROVING AND MAKING FINDINGS
RELATED TO THE ASSEMBLY BILL (AB) 1600 DEVELOPMENT
IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR 2022-23

RECOMMENDATION(S)

1. Adopt resolution making findings for unexpended development impact fees; and

2. Accept the annual development impact fee 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:

Government Code Section 66000 et seq. requires that any city imposing development impact fees must report certain information each year. In accordance with this requirement, staff is presenting the Annual Development Impact Fee Report (Attachment 1) for the fiscal year ending June 30, 2023. The report includes a fee description, a schedule of impact fees for the reporting period as approved by City Council, and a report of the 2022-23 revenues and expenditures for each impact fee, along with the balance available for current and future projects. A description of the project that resources were used for is also included for each impact fee.

Section 66001(d) requires that for the fifth fiscal year following the collection of development fees, and every five years thereafter, the local agency shall make findings with respect to any portion of the fee collected remaining unexpended, whether committed or uncommitted. Staff identified $6,359,047 from the Storm Drain Impact Fee (Fund 303); $1,312,690 from the Public Safety Facilities Impact Fee (Fund 315); and $257,765 from the Public Facilities Impact Fee (Fund 347) in unexpended fees that were collected over five years ago (Attachment 2). These unexpended fees have been

3 or will be appropriated into existing and future capital improvement projects:
1) Storm Drain Impact Fee to fund Storm System Expansions and Llagas Flood Control Project. The Storm System Expansions will expand storm system capacity in alignment with the 2018 Storm Drain System Master Plan and the Llagas Flood Control Project is to address storm water conveyance that drains into the Upper Llagas Creek Flood Protection Project (ULCFPP) and the West Little Llagas watershed. A total of $8.7 million from Storm Drain Impact Fees has been allocated to these projects in the adopted Fiscal Year 2022-23 - 2027-28 Capital Improvement Program (CIP). 2) Public Safety Facilities Impact Fee to fund construction of the Fire Station on Butterfield Boulevard. A total of $9.1 million from Public Safety Facilities Impact Fees has been allocated to this project in the adopted Fiscal Year 2022-23 - 2027-28 CIP. 3) Public Facilities Impact Fee to fund construction of public facilities such as expansion of the City Hall and the Corporation Yard. Based on the recently completed Maintenance and Operations Space Needs Analysis, the total cost for the expansion of the City Hall and the Corporation Yard is estimated to be about $43.0 million.

COMMUNITY ENGAGEMENT:

Inform
Finance staff prepares this annual report in an effort to keep City Officials, City Council, Community, and stakeholders informed on the financial status of each impact fee, which assists each one of the interested parties in making sound financial decisions.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The annual impact fee report is presented to Council each year for the prior fiscal year ending June 30.

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.

3

City of Morgan Hill
AB 1600 Development Impact Fee Report
Fiscal Year 2022‐23
Impact Fee Fund Descriptions
Park Impact – This fund receives revenues from developers of properties and the fund may only be  used  for  the  design,  development, maintenance, and  construction  of  new  parks within  the City.

Storm Drain – This fund receives revenues from developers of properties to cover the costs of design and construction of new storm drain that benefit new customers residing within the City of Morgan Hill as a result of growth in population.

Traffic  Impact  –  This  fund  receives  revenues  from  developers  when  their  projects  have  an adverse  impact  on  traffic  flows,  etc.  The  funds  collected  may  be  expended  on  new  streets, traffic  signals  and  improvements  of  existing  streets  where  they  are  impacted  by  new development.

Public Safety Facilities Impact – This  fee was created as a  result of combination of Police and Fire Impact Fees. Revenues are collected from developers to cover the costs required for police and fire capital expansion projects to assist in providing services to new developments.

Public Facilities – Revenues are collected to finance the expansion of public facilities necessary to  benefit  new  customers  residing  within  the  City  of  Morgan  Hill  as  a  result  of  growth  in population.

Library  Impact  – Revenues  are  collected  to  finance  the  provision  of  future  library  space  and materials  necessary  to  benefit,  and  necessary  to  provide  library  services  to,  new  residents residing in the City of Morgan Hill as a result of population growth.

Community/Recreation  Center  Impact  –  Revenues  are  collected  to  finance  the  expansion  of existing and construction of new recreation and community center facilities demanded by new development.

Sewer  Impact  – Revenues  are  collected  to  finance  the  expansion  of  wastewater  facilities necessary to benefit, and necessary to provide   wastewater services to new customers residing in the service area within the City of Morgan Hill as a result of growth in population.

Water Capacity  (Impact) – Revenues are collected  to  finance  the expansion of water  facilities necessary to benefit, and necessary   to provide water services to, new customers residing in the service area within the City of Morgan Hill as a result of growth in population.

Housing In‐Lieu – Fees are collected pursuant to the Inclusionary Housing Ordinance, whereby housing developers contribute  funds  to support the City's provision of affordable housing. The fund supports acquisition, construction, development assistance,  rehabilitation,  financing,  rent subsidies, or other efforts that support the administration of such programs.

Description of Fee Unit of Measure Amount ($)
Park Impact Fee Single Family Dwelling Unit-Sub 7,283.00 Single Family Dwelling Unit-No Sub 5,295.00
Multi Family Dwelling Unit-Sub 7,017.00
Multi Family Dwelling Unit-No Sub 5,107.00
Senior/Downtown/Secondary Unit 4,806.00
Storm Drain Impact Fee Single Family Dwelling Unit 2,434.00 Multi Family Dwelling Unit (>1200SF) 1,386.00
Multi Family Dwelling Unit (≤1200SF) 645.00
Commercial/Office per acre 26,359.00
Industrial per acre 19,407.00
Auto Dealership per acre 26,359.00
Hotel per room 390.00
Traffic Impact Fee Single Family Dwelling Unit 4,230.00 Multi Family Dwelling Unit (>1200SF) 2,621.00
Multi Family Dwelling Unit (≤1200SF) 1,650.00
Commercial/Industrial/Office per PHT 4,230.00
Public Safety Facilities Impact Fee Single Family Dwelling Unit 2,434.00 Multi Family Dwelling Unit (>1200SF) 2,152.00
Multi Family Dwelling Unit (≤1200SF) 1,612.00
Commercial per acre 13,602.00
Industrial per acre 16,326.00
Office per acre 16,307.00
Auto Dealership per acre 6,524.00
Hotel per room 75.00
Public Facilities Single Family Dwelling Unit 693.00
Multi Family Dwelling Unit 667.00
Senior/Downtown/Secondary Unit 458.00
Commercial per acre 1,527.00
Office per acre 1,815.00
Industrial per acre 2,138.00
Auto Dealership per acre 612.00
Hotel per room 18.00
Library Impact Fee Single Family Dwelling Unit 2,674.00 Multi Family Dwelling Unit 2,576.00
Senior/Downtown/Secondary Unit 1,764.00
Community Recreation Centers Single Family Dwelling Unit 4,960.00 Multi Family Dwelling Unit 4,352.00
Senior/Downtown/Secondary Unit 3,284.00
Sewer Impact Fee Single Family Dwelling Unit 19,206.00
Multi Family Dwelling Unit 16,255.00
Commercial/Industrial/Office per GPD 63.25
Water Capacity (Impact) Fee 5/8-1 inch meter 11,692.00

1.5-inch meter 23,385.00
2-inch meter 37,415.00
3-inch meter 74,830.00
4-inch meter 116,923.00
6-inch meter 233,845.00
8-inch meter 374,152.00
Housing In-Lieu For-Sale Projects (per sq feet)
Within Downtown 15.19
Outside of Downtown 22.67
Rental Projects (per sq feet)
Within Downtown 16.69
Outside of Downtown 33.38
City of Morgan Hill
Impact Fee Schedule Summary
Fiscal Year 2022-23

Project FY 22-23
FUND 301 - PARK IMPACT FEE Number AB 1600
Revenue
Interest $ 16,305
Development Impact Fees 227,202
Project Reimbursement/Others 3,405,437
Total Revenue $ 3,648,944
% from this Total Project
Revenue Expended For Fund Expenditures
Parks Land 110097 $ 8,152 100.00% 8,152
Inclusive Playground 137015 651,943 100.00% 651,943
Butterfield Blvd Connector Path Project 148017 13,227 100.00% 13,227 W. Little Llagas Creek Trail Phase 117001 441,391 100.00% 441,391 Monterey Road Ball Field Park 145023 105,153 100.00% 105,153 Sports Facility Development 148018 50,116 100.00% 50,116 General Plan Update 7,700 7.00% 110,000
RCSD Services - Infrastructure Planning 75,000 29.41% 255,000 Banking Fees and Other 15,727 100.00% 15,727
Administration 30,556 1.72% 1,775,408
Total Expenditures $ 1,398,965
Revenue Less Expenditures $ 2,249,979
Balance as of July 1, 2022 (822,989)
Balance as of June 30, 2023 $ 1,426,990
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 303 - STORM DRAIN IMPACT FEE Number AB 1600
Revenue
Interest $ 107,584
Development Impact Fees 1,033,721
Total Revenue $ 1,141,305
% from this Total Project
Revenue Expended For Fund Expenditures
Storm System Expansion 415020 $ 108,703 100.00% 108,703 Llagas Flood Control 417099 779,039 100.00% 779,039
General Plan Update 7,700 7.00% 110,000
RCSD Services - Infrastructure Planning 15,000 5.88% 255,000 Administration 9,359 0.53% 1,775,408
Total Expenditures $ 919,801
Revenue Less Expenditures $ 221,504
Balance as of July 1, 2022 11,596,359
Balance as of June 30, 2023 $ 11,817,863
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 309 - TRAFFIC IMPACT FEE Number AB 1600

REVENUE
Interest $ (2,181)
Traffic Impact Fees 1,608,009
VTA Measure B 6,949,478
Project Reimbursement/Others 100,000
TOTAL REVENUE $ 8,655,306
% from this Total Project
Revenue Expended For Fund Expenditures
Hale Avenue Extension 546007 5,985,210 $ 100.00% 5,985,210 General Plan Update 31,900 29.00% 110,000
RCSD Services - Infrastructure Planning 75,000 29.41% 255,000 Administration 22,655 1.28% 1,775,408
Total Expenditures $ 6,114,765
Revenue Less Expenditures $ 2,540,541
Balance as of July 1, 2022 1,187,039
Balance as of June 30, 2023 $ 3,727,580
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 315 - PUBLIC SAFETY FACILITIES Number AB 1600

REVENUE
Interest $ 50,856
Public Safety Facilities Impact Fees 608,217
TOTAL REVENUE $ 659,073
% from this Total Project
Revenue Expended For Fund Expenditures
New Fire Station 231018 535,980 $ 100.00% 535,980
Police Facility Expansion 228020 60,598 $ 100.00% 60,598 Debt Service 205,370 30.62% 670,612
Banking Fees and Other 22,013 100.00% 22,013
Administration 6,208 0.35% 1,775,408
Total Expenditures $ 830,169
Revenue Less Expenditures $ (171,096)
Balance as of July 1, 2022 3,221,824
Balance as of June 30, 2023 $ 3,050,728
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 347 - PUBLIC FACILITIES IMPACT FEE Number AB 1600

REVENUE
Interest/Other $ 6,497
Public Facilities Impact Fees 105,415
TOTAL REVENUE $ 111,912
% from this Total Project
Revenue Expended For Fund Expenditures
RCSD Services - Infrastructure Planning $ 25,000 9.80% 255,000 Administration 4,154 0.23% 1,775,408
Total Expenditures $ 29,154
Revenue Less Expenditures $ 82,758
Balance as of July 1, 2022 1,017,051
Balance as of June 30, 2023 $ 1,099,809
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 348 - LIBRARY IMPACT FEE Number AB 1600

REVENUE
Interest $ 16,361
Library Impact Fees 170,212
TOTAL REVENUE $ 186,573
% from this Total Project
Revenue Expended For Fund Expenditures
Civic Center Debt Service $ 207,553 30.95% 670,612
Administration 15,365 0.87% 1,775,408
Total Expenditures $ 222,918
Revenue Less Expenditures $ (36,345)
Balance as of July 1, 2022 1,444,583
Balance as of June 30, 2023 $ 1,408,238
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 360 - COMMUNITY/REC CENTERS IMPACT FEE Number AB 1600

REVENUE
Interest/Others $ 24,250
Com/Rec Centers Impact Fees 315,938
Project Reimbursement/Others 209,003
TOTAL REVENUE $ 549,191
% from this Total Project
Revenue Expended For Fund Expenditures
Centennial Recreation Center Expansion 138016 178,210 $ 100.00% 178,210 CRC Battery Storage System 229018 590,442 100.00% 590,442 Sports Facility Improvements - Sand Volleyball 148018 67,821 100.00% 67,821 Administration 15,515 0.87% 1,775,408
Total Expenditures $ 851,988
Revenue Less Expenditures $ (302,797)
Balance as of July 1, 2022 1,295,025
Balance as of June 30, 2023 $ 992,228
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 641 - SEWER IMPACT FEE Number AB 1600

REVENUE
Interest $ 195,516
Sewer Impact Fees 2,952,545
Reimbursement of Expenses 10,230,667
TOTAL REVENUE $ 13,378,728
% from this Total Project
Revenue Expended For Fund Expenditures
Sewer Plant Expansion 303093 10,178,741 $ 1372.60% 741,565 Sewer Plant Improvements 303a11 1,152,312 100.00% 1,152,312 Sewer Main Upgrades 302t17 52,632 58.03% 90,698
Trunk Line - Phase I & II 308a08 181,280 39.51% 458,767 New Sewer Lines 315006 20,304 100.00% 20,304
Rate Studies 110023 111,285 56.80% 195,916
General Plan Update 7,700 7.00% 110,000
RCSD Services - Infrastructure Planning 25,000 9.80% 255,000 Debt Service 802,180 31.52% 2,544,863
Administration 49,744 2.80% 1,775,408
Total Expenditures $ 12,581,178
Revenue Less Expenditures $ 797,550
Balance as of July 1, 2022 20,552,531
Balance as of June 30, 2023 $ 21,350,081
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 651 - WATER IMPACT FEE Number AB 1600

REVENUE
Interest $ 27,609
Water Impact Fees 728,847
TOTAL REVENUE $ 756,456
% from this Total Project
Revenue Expended For Fund Expenditures
Pump station capacity 610023 $ 100.000% 910 910
Holiday Lake pump station 610a18 100.000% 3,386 3,386
General Plan Update 7,700 7.000% 110,000
RCSD Services - Infrastructure Planning 25,000 9.80% 255,000 Debt Service 642,776 38.763% 1,658,229
Banking Fees and Other 13,880 100.000% 13,880
Administration 17,440 0.982% 1,775,408
Total Expenditures $ 711,092
Revenue Less Expenditures $ 45,364
Balance as of July 1, 2022 2,924,596
Balance as of June 30, 2023 $ 2,969,960
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

Project FY 22-23
FUND 236 - HOUSING IN-LIEU FEE Number AB 1600

REVENUE
Interest/Others $ 61,640
Housing in-lieu fee 674,725
Project Reimbursement/Others 182,049
TOTAL REVENUE $ 918,414
% from this Total Project
Revenue Expended For Fund Expenditures
Housing services $ 711,185 100.00% 711,185
Administration 83,071 4.68% 1,775,408
Total Expenditures $ 794,256
Revenue Less Expenditures $ 124,158
Balance as of July 1, 2022 4,841,712
Balance as of June 30, 2023 $ 4,965,870
City of Morgan Hill
Impact Fees Revenue and Expenditures
For Fiscal Year 2022-23

RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL MAKING FINDINGS FOR

UNEXPENDED DEVELOPMENT IMPACT FEES IN

ACCORDANCE WITH CALIFORNIA GOVERNMENT
CODE SECTION 66001 AND ACCEPTING THE ANNUAL

DEVELOPMENT IMPACT FEE REPORT
WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq., authorizes the City of Morgan Hill (“City”) to impose, collect, and expend mitigation fees to offset the impacts of development within the City; and;
WHEREAS, among the procedural requirements mandated by the Mitigation Fee Act is a requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City make specified findings regarding any portion of the fees that remain unexpended; and
WHEREAS, a portion of the fees currently deposited in the City’s Storm Drain Impact Fee Fund, Public Safety Facilities Impact Fund, and Public Facilities Impact Fee Fund were collected over five (5) years ago, and therefore the City wishes to make the findings required by Government Code Section 66001(d); and
WHEREAS, the City also wishes to review and accept reports required by the Mitigation Fee Act under the annual information disclosure requirements of Government Code Section 66006(b), including but not limited to the amount of the fee, the beginning and ending balance of the fee account or fund, and the interest earned thereon.

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

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

2. The City Council finds that the Storm Drain Impact Fee Fund currently contains Six Million Three Hundred Fifty Nine Thousand Forty Seven Dollars ($6,359,047); Public Safety Facilities Impact Fee Fund currently contains One Million Three Hundred Twelve Thousand Six Hundred Ninety Dollars ($1,312,690); and Public Facilities Impact Fee Fund currently contains Two Hundred Fifty Seven Thousand Seven Hundred Sixty Five Dollars ($257,765) in unexpended fees that were collected over five (5) years ago.

City of Morgan Hill
Resolution No. 23-XXX

3. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
a. The Unexpended Fees will be used to provide for the following projects:
(A) Storm Drain Impact Fee to fund Storm System Expansions and Llagas Flood Control Project. The Storm System Expansions will expand storm system capacity in alignment with the 2018 Storm Drain System Master Plan and the Llagas Flood Control Project is to address storm water conveyance that drains into the Upper Llagas Creek Flood Protection Project (ULCFPP) and the West Little Llagas watershed. The project would provide flood protection and mitigate the increased risk of flooding when the ULCFPP is completed;
(B) Public Safety Facilities Impact Fee to fund construction of the Fire Station on Butterfield Boulevard. The project will address the need for a new fire station as the community grows.
(C) Public Facilities Impact Fee to fund the expansion of the City Hall and the Corporation Yard. These projects will address the maintenance and operations space needs as the community grows. b. There exists a reasonable relationship between the Unexpended Fees and the purpose for which they were charged as described above. c. The current estimated costs that have been appropriated or will be appropriated for the Storm System Expansions and Llagas Flood Control Project are approximately Eight Million Seven Hundred Thousand Dollars ($8,700,000); costs for the Fire Station on Butterfield Boulevard are approximately Nine Million One Hundred Thousand Dollars ($9,100,000); and costs for the expansion of the City Hall and the Corporation Yard are estimated to be about Forty Three Million Dollars ($43,000,000). The City’s funding sources will include the Unexpended Fees described above and future impact fees to be collected for these projects.
d. The Unexpended Fees have been deposited in the respective Impact Fee Funds, which are the appropriate funds to finance the projects described above.

4. This Resolution shall take effect immediately upon adoption.

City of Morgan Hill
Resolution No. 23-XXX

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 6th day of December 2023 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
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No.23-XXX, adopted by the City Council at the meeting held on December 6, 2023.

WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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

Kim Mancera, Deputy City Clerk
APPROVED BY: City Manager
ADOPT RESOLUTION AND ADOPT ORDINANCE 2349, NEW SERIES,
ADDING CHAPTER 3.26 (“TOURISM BUSINESS IMPROVEMENT
DISTRICT”) TO TITLE 3 (“REVENUE AND FINANCE”) OF THE

MORGAN HILL MUNICIPAL CODE ESTABLISHING AND RENEWING

THE MORGAN HILL TOURISM BUSINESS IMPROVEMENT DISTRICT

RECOMMENDATION(S)

1. Adopt resolution; and

2. Waive the reading, adopt Ordinance No. 2349, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Fiscal Sustainability
Economic Development
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

On November 1, 2023, the City Council introduced Ordinance No 2349, New Series, by the following roll call vote: AYES: Borgioli, Martinez Beltran, Spring, Turner; NOES:

None; ABSTAIN: None; ABSENT: Librers.

Adoption of this Resolution and the Ordinance will result in the renewal of the MHTBID and the continued levy of assessments on lodging businesses within the MHTBID.

4 The MHTBID is a benefit assessment district proposed to continue a revenue source to help fund sales & marketing and sports facility marketing & development programs for Morgan Hill lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive demand for additional room nights to assessed lodging businesses. The renewed MHTBID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Morgan Hill.

Lodging business owners decided to pursue renewal of the MHTBID in order to continue a revenue source devoted to marketing Morgan Hill as a tourist, meeting and event destination. If renewed, the MHTBID would generate approximately $341,000 on an annual basis for promotion of travel and tourism specific to Morgan Hill.

MHTBID Renewal Process
October 4, 2023 RESOLUTION OF INTENTION HEARING (COMPLETED) Petitions in favor of MHTBID renewal were submitted by ten (10) lodging businesses, which represent 84.21% of the total MHTBID assessment. This majority petition allows the Council to initiate proceedings for MHTBID renewal at the October 4, 2023 meeting.

By October 21, 2023 NOTICE (COMPLETED)
November 1, 2023 PUBLIC MEETING AND INTRODUCTION/FIRST READING OF

ORDINANCE (COMPLETED)
December 6, 2023 FINAL PUBLIC HEARING AND SECOND READING/ADOPTION

OF THE ORDINANCE
COMMUNITY ENGAGEMENT:

Inform
Over the course of the last six months, the Visit Morgan Hill staff has been conducting outreach to the hospitality industry to inform them of the intention to renew the Tourism Business Improvement District, gather input and feedback.

On October 4, 2023, the City Council approved a resolution of intention to renew the MHTBID. The meeting was properly noticed.

On October 16, 2023, a Public Notice was mailed to all affected property and business owners informing them of the intention to renew the MHTBID. The notice was also published on the City's Website and included in the 411.

ALTERNATIVE ACTIONS:

The Council could choose not to renew the MHTBID. Staff does not recommend this option.

4 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 1, 2023, the City Council approved and introduced Ordinance No 2349, approving the renewal of the MHTBID and the continued levy of assessments on lodging businesses within the MHTBID on a 4-0 vote.

On October 4, 2023, the City Council adopted the Resolution of Intention, Resolution No. 23-044 to hold a public meeting and hearing to consider renewal of the MHTBID. (Attached)
In 2019, by adopting Resolution No. 19-004, the City Council created the Morgan Hill Tourism Improvement District (MHTBID) for a term of five (5) years.

FISCAL AND RESOURCE IMPACT:

None immediately. The City will receive a fee of two percent (2%) of the amount collected to cover its costs of administration. Because the MHTBID programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collection.

CEQA (California Environmental Quality Act):

Not a Project
Pursuant to CEQA organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment are therefore exempt activities.

RESOLUTION NO. 23 – xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL DECLARING RESULTS OF

MAJORITY PROTEST PROCEEDINGS AND RENEWING

THE MORGAN HILL TOURISM BUSINESS

IMPROVEMENT DISTRICT (MHTBID)
WHEREAS, the City of Morgan Hill (City) created the MHTBID in 2019 by Resolution No. 19-004 for a five (5) year term which ends on February 29, 2024; and WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.) authorizes the City to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the MHTBID have petitioned the City to renew the MHTBID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on all lodging businesses existing and in future within the MHTBID to pay for sales & marketing and sports facility marketing & development programs, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesses within the MHTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on October 4, 2023 at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the City Council adopted a Resolution of Intention, Resolution No. 23-044; and
WHEREAS, the public meeting and public hearing to consider the renewal of the MHTBID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on November 1, 2023 at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the City Council held a public meeting regarding the renewal of the MHTBID, conducted the first reading of the Ordinance to renew the MHTBID and continue the levy of assessments, and the City Council heard and received objections and protests, if any, to the renewal of the OTMD and the levy of the proposed assessment; and
WHEREAS, on December 6, 2023 at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the City Council held a public hearing

City of Morgan Hill
Resolution No. 23-xxx

2 regarding the renewal of the MHTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the MHTBID and the levy of the proposed assessment; and WHEREAS, on December 6, 2023, following the receipt of all objections and protests and the adoption of this Resolution of Formation, a second reading of the Ordinance to renew the MHTBID and levy the assessments will be heard. At the conclusion of the second reading of the Ordinance, the City Council may adopt the Ordinance to renew the MHTBID and levy the assessments; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed MHTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and WHEREAS, adoption of this Resolution does not diminish the legal effect of the adoption of the Ordinance to be adopted at the final hearing; and WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct.

2. The MHTBID is hereby renewed for a ten (10) year term, beginning March 1, 2024 or as soon as possible thereafter, and ending ten (10) years from its start date.

3. The Plan dated September 15, 2023 is hereby adopted and approved.

4. The activities to be provided to benefit businesses in the MHTBID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the MHTBID; to provide activities or improvements outside the MHTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, the Ordinance, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the MHTBID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the MHTBID.

5. The City Council finds as follows:

City of Morgan Hill
Resolution No. 23-xxx

3 a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the MHTBID that is not provided to those not paying the assessment. b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. d) Assessments imposed pursuant to the MHTBID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “MHTBID Assessment” or “Tourism Assessment” as specified in the Plan.

6. The assessments levied for the MHTBID shall be applied towards sales and marketing programs to market MHTBID lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.

7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase sleeping room rentals, an assessment based on gross short-term sleeping room rentals is the best measure of benefit.

8. The assessments for the entire MHTBID will total approximately $341,000 in year one (1).

9. Bonds shall not be issued to fund the MHTBID.

10. The MHTBID shall include all lodging business, existing and in the future, available for public occupancy located within the boundaries of the City of Morgan Hill. A boundary map is attached hereto and incorporated herein by reference.

11. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the MHTBID assessment is levied as long as they are used consistent with the requirements set forth herein.

12. The assessments to fund the activities and improvements for the MHTBID will be collected by the City of Morgan Hill on a monthly basis, and in accordance with Streets and Highways Code §36631.

City of Morgan Hill
Resolution No. 23-xxx

4 13. The City Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MHTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Morgan Hill shall continue to be the MHTBID Owners’ Association.

14. Visit Morgan Hill, pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the MHTBID.

15. The MHTBID renewed pursuant to this Resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

16. The City Clerk, or their designee, is directed to take all necessary actions to complete the renewal of the MHTBID and to levy the assessments.

17. This Resolution shall take effect immediately upon its adoption by the City Council.

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

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

City of Morgan Hill
Resolution No. 23-xxx

5  CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 23-xxx adopted by the City Council at the meeting held on December 6, 2023.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 23-xxx

6 Boundary Map

ORDINANCE NO. 2349, NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL
ADDING CHAPTER 3.26 (“TOURISM BUSINESS
IMPROVEMENT DISTRICT”) TO TITLE 3 (“REVENUE
AND FINANCE”) OF THE MORGAN HILL MUNICIPAL

CODE ESTABLISHING AND RENEWING THE MORGAN

HILL TOURISM BUSINESS IMPROVEMENT DISTRICT

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

WHEREAS, the City of Morgan Hill (City) created the Morgan Hill Tourism Business Improvement District (MHTBID), in 2019 by Resolution No. 19-004 to begin on March 1, 2019; and WHEREAS, the MHTBID was created for a five (5) year term, which ends on February 29, 2024; and
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the proposed assessment have petitioned the City Council (Council) to renew the MHTBID; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses to pay for sales & marketing and sports facility marketing & development programs, and other improvements and activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the MHTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on October 4, 2023, at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the Council adopted a Resolution of Intention, Resolution No. 23-044; and
WHEREAS, the public meeting and public hearing to consider the renewal of the MHTBID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on November 1, 2023 at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the Council held a public meeting and introduction of this ordinance regarding the renewal of the MHTBID and the levy of assessments. At this meeting, the Council heard and received objections and protests, if any, to the renewal of the MHTBID and the levy of the proposed assessment; and
WHEREAS, on December 6, 2023 at 6:00 PM at the City Council Chamber Building located at 17555 Peak Ave., Morgan Hill, CA 95037, the Council held a public hearing, and the Council heard and received all objections and protests, if any, to the renewal of the MHTBID and the levy of the proposed assessment; and

City of Morgan Hill
Ordinance No. 2349, New Series

WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed MHTBID who would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and WHEREAS, pursuant to the Taxpayer Protection and Government Accountability Act (TPGAA), an initiative certified eligible for qualification for the November 5, 2024, general election ballot, the proposed assessment is an exempt charge pursuant to TPGAA Section 5(j)(6), as the MHTBID is a tourism business improvement district formed under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code §36600, et seq.; and
WHEREAS, the amount of the proposed assessment for the MHTBID will total approximately $341,000 in the first year. Pursuant to the TPGAA, the City has found the proposed assessment amount is reasonable given the scope of services to be provided and shall not exceed the actual cost of providing the MHTBID services to the payors; and
WHEREAS, adoption of this Ordinance does not diminish the legal effect of the adoption of the Resolution of Formation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapter 3.26 of the Morgan Hill City Code is hereby adopted to read as follows:

Chapter 3.26 – TOURISM BUSINESS IMPROVEMENT DISTRICT

3.26.010 – Renewal.

The City of Morgan Hill renews the Morgan Hill Tourism Business Improvement District (MHTBID), for a ten (10) year life, beginning March 1, 2024 or as soon as possible thereafter, and ending ten (10) years from its start date, under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code of the state, Section 36600 et seq.

3.26.020 - Management District Plan.

The Management District Plan (Plan) dated September 15, 2023, is hereby adopted and approved.

3.26.030 - Activities and Improvements.

1. The activities to be provided to benefit businesses in the MHTBID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the MHTBID; to provide activities or improvements outside the MHTBID; or for any purpose other than the purposes specified in this ordinance, the Resolution of Intention,

City of Morgan Hill
Ordinance No. 2349, New Series

and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the MHTBID boundaries to create a specific benefit to the assessed businesses may be provided but shall be limited to marketing or signage pointing to the MHTBID.

2. The Council finds as follows:
a. The activities funded by the assessment will provide a specific benefit to assessed businesses within the MHTBID that is not provided to those not paying the assessment. b. The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. c. The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. d. Assessments imposed pursuant to the MHTBID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient or customer, that portion shall be specifically called out and identified for the transient or customer in any and all communications from the business owner as the “MHTBID Assessment” as specified in the Plan. As an alternative, the disclosure may include the amount of the MHTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.”

3. The assessments levied for the MHTBID shall be applied toward sales & marketing and sports facility marketing & development programs, and other improvements and activities as set forth in the Plan.

4. Assessments levied on lodging businesses pursuant to this ordinance shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on short term room rental revenue is the best measure of benefit.

3.26.040 - Budget.

The assessments for the entire MHTBID will total approximately $341,000 in year one (1).

3.26.050 - Bonds
Bonds shall not be issued to fund the MHTBID.

3.26.060 - Boundaries.

The renewed MHTBID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Morgan Hill as described in the Management District Plan.

3.26.070 - Assessments.

City of Morgan Hill
Ordinance No. 2349, New Series

1. The annual assessment rate is one and one half percent (1.5%) of gross short-term sleeping room rental revenue. During the MHTBID’s term, the assessment rate may be increased annually by the Owner’s Association upon approval from the Board of Directors by a maximum of one half of one percent (0.5%) of gross short-term sleeping room rental revenue per year. The maximum assessment rate may not exceed three percent (3%) of gross short-term sleeping room rental revenue. If the assessment rate is increased, it may subsequently be decreased by a maximum of one half of one percent (0.5%) each year, but shall not be decreased below a minimum of one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue. Any proposed assessment rate increase or decrease shall be included in the MHTBID annual report and shall not be effective until approved by the Council. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

2. The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any year may be used in subsequent years in which the MHTBID assessment is levied as long as they are used consistent with the requirements set forth herein.

3.26.080 - Collections.

The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the MHTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business.

3.26090 - Owners’ Association.

The Council, through adoption of this ordinance and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MHTBID as defined in Streets and Highways Code §36612. The Council has determined that Visit Morgan Hill shall continue to be the MHTBID Owners’ Association. Passage of this ordinance authorizes the Council to contract with Visit Morgan Hill to administer the MHTBID.

3.26.100 - Annual Report.

Visit Morgan Hill, pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the MHTBID.

3.26.110 - Amendments to Enabling Legislation.

The MHTBID renewed pursuant to this ordinance shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

Section 2. Severability. If any section, subsection, sentence, clause or phrase or word of this

City of Morgan Hill
Ordinance No. 2349, New Series

Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Council declares that it would have passed and adopted this ordinance and each and all provisions irrespective of the fact that any one or more of said provisions may be declared invalid or unconstitutional without regard to any such decision or preemptive legislation.

Section 3. Effective Date. This ordinance of the City of Morgan Hill shall be effective thirty (30) days after its passage, this ordinance or a summary thereof, as provided in Government Code Section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Morgan Hill, along with the names of the Council voting for and against its passage.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A MEETING OF THE CITY COUNCIL HELD ON THE 1ST DAY OF NOVEMBER 2023, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 6th DAY OF DECEMBER 2023, AND SAID ORDINANCE WAS DULY PASSED 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

City of Morgan Hill
Ordinance No. 2349, New Series

 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. 2349, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on December 6, 2023.

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

DATE:

MICHELLE BIGELOW, City Clerk

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

Kim Mancera, Deputy City Clerk
APPROVED BY: City Manager
ADOPT ORDINANCE 2350, NEW SERIES, ADDING SECTION 18.30.070 (VEHICLE SALES OVERLAY ZONE (-VS)) OF CHAPTER 18.30
(OVERLAY ZONES AND COMBINING DISTRICTS) OF TITLE 18
(ZONING) OF THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL

ESTABLISHING THE VEHICLE SALES OVERLAY ZONE (-VS) TO

ALLOW VEHICLE- RELATED USES AND OTHER COMPATIBLE USES

IN DIFFERENT PARTS OF THE CITY THAT CAN SUPPORT SUCH A
USE

RECOMMENDATION(S)
Waive the reading, adopt Ordinance No. 2350, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

COUNCIL PRIORITIES, GOALS & STRATEGIES
2022-2023 Strategic Priorities
Fiscal Sustainability
Economic Development
Guiding Documents
Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

On November 15, 2023, the City Council approved Ordinance No 2350 New Series, by the following roll call votes: AYES: Borgioli, Librers, Turner; NOES: Martinez Beltran, Spring; ABSTAIN: None; ABSENT: None.

The Ordinance establishes Section 18.30.070 (Vehicle Sales Overlay Zone (-VS)) of Chapter 18.30 (Overlay Zones and Combining Districts) of the Zoning Code to allow vehicle-related uses as well as other compatible uses in different parts of the City that can support such a use. The initial applicability of the -VS overlay zone applies to the three parcels at the corner of Cochrane Road, Hwy 101 and DePaul Drive, extending approximately 1,800 feet south of Cochrane Road between Hwy 101 and DePaul Drive, comprising approximately 28.7 acres. The Overlay Zone as approved in the first

5 reading, allows 70% of the overlay to contain vehicle sales uses. The Ordinance also establishes design guidelines that are applicable to any new vehicle sales use established within the Overlay District.

COMMUNITY ENGAGEMENT:

Inform/Engage
A 10-day public hearing notice for the November 15, 2023 City Council meeting was published on Friday, November 3, 2023 in the edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media.

A 10-day public hearing notice for the October 24, 2023 Planning Commission meeting was published on Friday, October 13, 2023 in the edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media.

On October 12, 2023, the City's Economic Development team provided an update to the Morgan Hill Chamber of Commerce's Economic Development Committee that the City will be bringing forward a proposed Vehicle Sales Zoning Overlay (-VS) with Design Guidelines (for the property bounded by Cochrane on the north, De Paul on the East, Hwy101 on the West and approximately 1,800 feet from Cochrane Rd to the South) for consideration at the October 24, 2023 Planning Commission and the November 15 City Council meeting.

On August 8, 2023, staff held a public workshop with the Planning Commission to review draft design guidelines and receive additional input.

On Monday, July 31, 2023, City staff held a meeting with community stakeholders who had previously expressed an interest in the CO Zoning Text Amendment and the location of auto/vehicle dealers on the Trammell Crow North 30 property to hear their concerns and gather feedback.

A 10-Day public hearing notice for the June 21, 2023 City Council meeting was published in the Friday, June 9, 2023 edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media.

The City's Economic Development team presented the proposed Zoning Code Text Amendment to the Morgan Hill Chamber of Commerce's Economic Development Committee on May 11, 2023 and conducted a Neighborhood meeting on June 15, 2023.

The neighborhood meeting was promoted in the City's 411.

On May 9, 2023, the Planning Commission held a public hearing regarding the proposed ordinance amendments in which a 10-day public hearing notice was published in the Friday, April 21, 2023 edition of the Morgan Hill Times.

5 ALTERNATIVE ACTIONS:

Not Applicable.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 15, 2023, the City Council approved and introduced Ordinance No 2350 New Series, establishing the new Vehicle Sales Overlay Zone of 70% with Design Guidelines on a 3-2 vote.

On November 14, the Planning Commission recommended the approval of the Vehicle Sales Overlay Zone, which included an overlay zone of 60% and minor amendments to the Design Guidelines. The Planning Commission approved this recommendation on a vote of 6-1.

On August 23, 2023, the City Council voted against a second reading of Ordinance No. 2347 New Series, by the following roll call vote: AYES: Borgioli, Turner; NOES: Librers, Martinez Beltran, Spring; ABSTAIN: None; ABSENT: None.

On June 21, 2023, the City Council introduced Ordinance No. 2347 New Series, by the following roll call vote: AYES: Borgioli, Librers, Turner; NOES: Martinez Beltran, Spring; ABSTAIN: None; ABSENT: None.

On May 9, 2023, the Planning Commission recommended approval of the Zoning Code Text Amendment on a vote of 4-1 with two members absent.

In January 2023, the City Council reaffirmed the Economic Development department's strategic priorities to include the attraction and recruitment of hotels and auto dealers.

On June 6, 2018, the City Council adopted Ordinance No. 2277 N.S., a comprehensive update of Title 18 – Zoning of the City of Morgan Hill Municipal Code. The update included an amendment to the City’s official zoning map consistent with the Morgan Hill 2035 General Plan.

In April 2017, the City Council unanimously adopted the 2017 Morgan Hill Economic Blueprint that identified Retail as a key strategy for long-term economic sustainability.

In 2002, 2003, 2013, 2014, and 2017, the City created and utilized the Auto Incentive program to attract and expand new auto dealers and vehicle sales to the City of Morgan Hill.

FISCAL AND RESOURCE IMPACT:

The City currently has only three (3) branded auto dealerships, but they make up approximately 25% of the City’s sales tax revenue. Sales tax revenue is an important source of General Fund revenue that the Council has the discretion to allocate and fund essential City services, including police, fire, street, parks, recreation, etc.

5 As the cost to maintain City services continues to outpace the City's anticipated revenue growth, it is important that the City focuses on economic development strategies that maintain and increase the City’s tax base. Amending the City’s municipal code to create a -VS overlay zone at Cochrane and US 101 to allow vehicle sales related uses for approximately 29 acres doesn’t guarantee more auto dealerships, but it gives the City and the Economic Development Team increased flexibility to pursue and attract high sales tax generating businesses to the City.

CEQA (California Environmental Quality Act):

There are no new significant environmental impacts or previously identified significant impacts associated with the Project. Therefore, the City determined that an Addendum to the Morgan Hill 2035 General Plan Final Environmental Impact Report (EIR) is the appropriate California Environmental Quality Act (CEQA) document to address project modifications in accordance with CEQA Guidelines Section 15164. CEQA Guidelines Section 15164(c) provides that an addendum need not be circulated for public review.

ORDINANCE NO. 2350, NEW SERIES

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL ADDING SECTION 18.30.070
(VEHICLE SALES OVERLAY ZONE (-VS)) OF CHAPTER

18.30 (OVERLAY ZONES AND COMBINING DISTRICTS)
OF TITLE 18 (ZONING) OF THE MUNICIPAL CODE OF

THE CITY OF MORGAN HILL ESTABLISHING THE

VEHICLE SALES OVERLAY ZONE (-VS) TO ALLOW

VEHICLE- RELATED USES AND OTHER COMPATIBLE

USES IN DIFFERENT PARTS OF THE CITY THAT CAN

SUPPORT SUCH A USE

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

Section 1. Section 18.30.070 (Vehicle Sales Overlay Zone (-VS)) of Chapter 18.30 (Overlay Zones and Combining Districts) of Title 18 (Zoning) is hereby established to read as follows:

18.30.070 Vehicle Sales Overlay Zone (-VS).

A. Purpose of Vehicle Sales Overlay Zone. The purpose of the Vehicle Sales (-VS) overlay zone is to allow vehicle sales in different parts of the City on parcels that can support such a use.

This overlay zone also incorporates specific design elements for future dealerships that align with design goals in the General Plan.

B. Applicability. The -VS overlay zone applies to parcels at the corner of Cochrane Road, Hwy 101 and DePaul Drive as shown on the zoning map extending approximately 1,800 feet south of Cochrane Road between Hwy 101 and DePaul Drive comprising of approximately 28.70 acres.

C. Land Use Regulations.

Permitted Land Uses. Table 18.30-2 identifies land uses permitted in the Vehicle Sales Overlay Zone (-VS) in addition to the uses allowed pursuant to the underlying base zoning district.

Table 18.30-2 Permitted Land Uses in the Vehicle Sales Overlay District Key
P Permitted Use
C Conditional Use Permit required
Commercial Uses
General Retail P
Eating and Drinking Uses
Restaurants, Fast Food P
Restaurants, Sit-Down P
Tasting Rooms P
Vehicle-Related Uses

City of Morgan Hill
Ordinance No. 2350, New Series

Vehicle Sales and Leasing [1] P
Convenience Market with Fuel and Service
Station
C
Fuel and Service Stations C
Vehicle Rentals [2] P
Vehicle Repair and Maintenance, Minor [3] P
Vehicle Washing [2] C
Notes:
[1] Allowed except for “used car sales” limited to the same property as an original equipment manufacturer.
[2] Allowed only when associated with an on-site original equipment manufacturer. [3] Allowed only when associated with an on-site or off-site original equipment manufacturer.

D. Development Standards
The development standards that apply in the -VS overlay zone shall be the same as the underlying base zone with the exception of the following:

1. Vehicle Sale uses cannot utilize more than seventy (70) percent of the total acreage available within the overlay zone, preserving thirty (30) percent of the total acreage for non-vehicle sales uses.

E. Design Guidelines for the Vehicle Sales (-VS) Overlay Zone. Vehicle Rentals, Vehicle Repair and Maintenance, Vehicle Sales and Leasing, and Vehicle Washing uses shall substantially comply with the following design standards and shall be reviewed through a design permit as required by Section 18.108.040 (Design Permit):

1. Site Design
a. Site frontages of highways and public streets should minimize the number of visible vehicles in exterior display areas.
b. Showrooms are encouraged over exterior vehicle display areas that front onto a public street. Interior vehicle display should be limited to ground level and second floor only.
c. To enhance the visual prominence of the dealership building, interior vehicle showrooms should be located on the front portion of the site and oriented towards the street.
d. To reduce visual presence of vehicle maintenance areas, vehicle service entrances and service bays should be integrated within the design of the main building, when possible, be less prominent than the main building, and screened from public right-of-way vantage points.
e. For contiguous dealerships, dealerships should be designed to provide cohesive vehicular and pedestrian access and connectivity between dealerships and other adjacent uses for ease of customer accessibility.
f. Onsite circulation should include efficient space to support vehicular deliveries and auto service access to reduce overflow to off-site parking.

City of Morgan Hill
Ordinance No. 2350, New Series

g. To improve the visual aesthetics of contiguous dealerships, large expanses of Vehicle Sales Areas and storage areas should be divided into smaller areas with landscaping. h. Vehicle Sales Areas, which are elevated above grade (i.e., display pedestals of any type), and exterior display areas with automated movement are prohibited unless specifically approved within the design permit for the site. i. Outdoor amenities, including seating, tables, and covered areas with shade, are encouraged.
j. Accessory structures, including charging stations for electric vehicles, should be consistent with the overall design of the dealership, especially for contiguous dealerships.
k. Noise on dealership sites from a public address system, from service departments, or other sources should be minimized.

2. Building Design
a. A compatible architectural design is encouraged for contiguous dealerships in order to create a visually unified and attractive environment. b. Dealership buildings should have high quality architectural designs with recessed windows and entries that include large display windows. c. All sides of a building that are visible from public right-of-way vantage points should have a consistent architectural quality, design, and use of materials. When adjacent to the freeway or between two streets, buildings should consider two frontages or 360-degree architectural design.
d. Parked and stored vehicles in a building should be screened from view except in ground or second level showrooms.
e. Service bay entrances should be designed to minimize sight lines into the interior of service bays and parts departments.
f. Accessory and ancillary structures should be architecturally compatible with the overall design of the dealership.

3. Landscaping
a. Landscape buffers should be incorporated along frontages of highways and public streets.
b. Large stormwater retention and treatment basins should be located away from public streets, when possible.
c. Accent paving such as stamped concrete or pavers is encouraged at main entrances. d. For contiguous dealerships, landscaping, screening walls, and fences should be complementary amongst dealerships.

4. Parking
a. Customer and employee parking and storage of vehicles for dealerships should be accommodated within the boundaries of each dealership and not on public streets. b. Structured parking is encouraged. Vehicle parking and storage within structures or on the roofs of buildings should not be visible from ground level vantage points.

5. Lighting

City of Morgan Hill
Ordinance No. 2350, New Series

a. Parking areas should have lighting capable of providing adequate illumination for security and safety.
b. Lighting should be energy-efficient and have brightness and color necessary for the use of the on-site vehicles and structures, as well as for the needs of pedestrians. c. Lighting levels of interior and exterior vehicle display areas should be minimized after normal business hours.
d. Lighting levels need to be in conformance with the City of Morgan Hill performance standards.
e. Lighting should have fixtures that shield direct light from visibility from neighboring properties and from public streets.
f. Lighting sources should not have motion, such as search lights that are aimed at the sky. g. Building illumination and architectural lighting should be indirect in character (light sources should be minimally visible). Indirect wall lighting or “wall washing”, exterior overhead down lighting, or interior indirect illumination that spills outside the building is encouraged. Architectural lighting should articulate and animate building design and provide functional lighting for the safety and clarity of pedestrian movement.

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

Section 3. Effective Date; Posting. This Ordinance shall take effect on , 20 . 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 15th DAY OF NOVEMBER 2023, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 6th DAY OF DECEMBER 2023, AND SAID ORDINANCE WAS DULY PASSED 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

City of Morgan Hill
Ordinance No. 2350, New Series

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. 2350, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the 6th day of December 2023.

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

DATE:

MICHELLE BIGELOW, City Clerk

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

Lynette Kong, Associate Engineer
APPROVED BY: City Manager

ADOPT RESOLUTION CERTIFYING COMPLIANCE WITH STATE
HOUSING LAWS IN ORDER TO RECEIVE $3,921,000 IN ONE BAY
AREA GRANT CYCLE 3 (OBAG 3) FUNDING FOR THE MONTEREY

ROAD TRAFFIC, BICYCLE, AND PEDESTRIAN IMPROVEMENTS

PROJECT

RECOMMENDATION(S)
Adopt a resolution for self-certifying compliance with State housing laws that is required for receiving One Bay Area Grant Cycle 3 (OBAG 3) funding for the Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Fiscal Sustainability
Affordable Housing and Homelessness
Transportation
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Morgan Hill 2035 General Plan
Vision Zero
REPORT NARRATIVE:

The Metropolitan Transportation Commission (MTC) created the One Bay Area Grant program (OBAG) in May 2012 to incorporate the region's discretionary transportation funding from the Federal Highway Administration (FHWA) with Plan Bay Area 2050 goals. There have been two previous OBAG program cycles where the City received grant funding from both cycles for the following projects: Monterey Road Preservation (OBAG Cycle 1) and East Dunne Avenue Rehabilitation Project (OBAG Cycle 2). MTC adopted the program's third round of funding (OBAG 3) in January 2022 and includes over $750 million in federal funding for projects to be funded from 2023 through 2026.

6 The OBAG 3 program is divided into a Regional Program, managed by MTC, and a County and Local Program, managed by MTC in partnership with the nine Bay Area County Transportation Agencies (CTAs). The Santa Clara Valley Transportation Authority (VTA) is the CTA for Santa Clara County. The City's current funding application filing request is for the County and Local Program.

In 2022, staff submitted an OBAG 3 competitive grant funding application for $3,921,000 for the construction phase of the Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project. The project's location is on Monterey Road from Cochrane Road to East Middle Avenue and will consist of the following improvements:
slurry sealing; buffered bicycle lane treatments; green colored bicycle lane striping enhancements for bicycle facilities at intersections, conflict points, and their approaches; sidewalk gap closures; replace portions of striped center medians with raised concrete medians at specific locations; new and/or upgraded curb ramp improvements; and bicycle and pedestrian signage improvements.

The Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project was adopted by MTC's Board on January 23, 2023 for the final selection of projects programmed for the OBAG 3 grant. The OBAG 3 grant policies for project selection and programming consist of several requirements for local jurisdiction projects to comply with to be eligible to receive the OBAG 3 funding. This report addresses the OBAG 3 requirement for the City to adopt a Resolution (Attachment 1) self-certifying compliance with various State housing laws related to surplus lands, accessory dwelling units, and density bonuses.

The City's housing development policies include the adoption and implementation of regulations to encourage the development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), the use of density bonuses, annual reporting to the California Department of Housing and Community Development (HCD), and other measures in compliance with State laws. The City has received certification of its 6th Cycle Housing Element from HCD.

Upon adoption of this resolution, staff will submit a copy of this resolution to MTC as part of the OBAG 3 funding requirements. The remaining outstanding OBAG 3 grant compliance item that staff is working on is the completion of the State's Local Streets and Roads survey; the anticipated completion date of this remaining grant compliance item is Spring 2024.

The estimated project schedule consists of the design phase starting by the end of this year; processing of the federal project authorization during Summer/Fall 2024; and commencement of construction in Summer 2025.

COMMUNITY ENGAGEMENT:

Inform
Affected businesses and property owners will be notified of the roadway improvement work that is funded with this grant money prior to the start of construction activities.

6 ALTERNATIVE ACTIONS:

Not applicable. Failure to adopt the resolution will result in loss of grant funding.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
• On June 21, 2023, City Council adopted a Resolution of Local Support and authorized the filing of an OBAG 3 funding application for the Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project.
• On January 25, 2023, City Council adopted a Resolution amending the General Plan to update the Housing Element of the General Plan for the period of 2023- 2031.
• On December 4, 2019, City Council adopted Ordinance 2313, New Series amending Chapter 18.84 (Accessory Dwelling Units) and Chapter 18.124 (Land Use Definitions) of the Morgan Hill Municipal Code to align with State law changes regarding accessory dwelling units and junior accessory dwelling units. • On September 13, 2013, City Council adopted a Resolution of Local Support for MTC Discretionary Funding Program (OBAG Cycle 1).

FISCAL AND RESOURCE IMPACT:

There is no fiscal and resource impact associated with adopting this resolution.

CEQA (California Environmental Quality Act):

Not a Project.

Adopting a resolution certifying compliance with State housing laws is not a "project" under CEQA as defined in the CEQA Guidlines, section 15378, because this resolution has no potential for resulting in either a direct or forseeable physical change in the environment. Necessary environmental review for the Monterey Road Traffic, Bicycle, and Pedestrian Improvements Project will be completed as part of the project development process.

RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF MORGAN HILL TO COMPLY WITH STATE

HOUSING LAWS AS AN ELIGIBILITY

REQUIREMENT FOR THE ONE BAY AREA GRANT
CYCLE 3 (OBAG 3)
WHEREAS, the San Francisco region has the highest housing costs in the United States; and
WHEREAS, the Bay Area produced less than 30% of the need for low- and moderateincome housing units from 2007-2014, and is on track to similarly underproduce low-income units during the 2015-2023 time period; and
WHEREAS, there are limited funding sources available to secure land for the construction of low- and moderate-income housing; and
WHEREAS, public lands can play a critical role in increasing the supply of land for affordable housing;
WHEREAS, accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) provide an important option to increase the availability and affordability of housing, especially in existing, lower density neighborhoods; and WHEREAS, density bonuses are an effective tool to increase the financial feasibility of housing and incentivize the creation of affordable housing; and WHEREAS, the Metropolitan Transportation Commission adopted Resolution No. 4505, outlining the programming policy and project selection criteria for the One Bay Area Grant Program (OBAG 3), including certain requirements to access these funds;

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

1. That the City of Morgan Hill agrees to comply with the terms of Surplus Land Act (California Government Code § 54220 et seq.), as exists now or may be amended in the future, including, but not limited to, AB 1255 (Rivas, 2019), which requires jurisdictions to compile and report annually an inventory of surplus lands to the California Department of Housing and Community Development; and.

2. That the City of Morgan Hill agrees to comply with state laws related to ADUs and JADUs, as it exists now or may be amended in the future, including, but not limited to California Government Code §§ 65852.150, 65852.2, 65852.22, et seq. and California Health & Safety Code §§ 17980.12; and

3. That the City of Morgan Hill agrees to comply with state Density Bonus Law (California Government Code § 65915 et seq.), as exists now or may be amended in the future; and

City of Morgan Hill
Resolution No. 23-xxx

4. That the City of Morgan Hill warrants and represents that it is in compliance with the aforementioned state housing laws and that there are no claims, actions, suits, or proceedings pending to the best of the City of Morgan Hill’s knowledge, alleging violations of the state housing laws by the City of Morgan Hill.

PASSED AND ADOPTED by the City Council of the City of Morgan Hill, State of California, on this 6th day of December 2023, 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
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 23-xxx, adopted by the City Council at a regular meeting held on December 6, 2023.

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

DATE: _____________________ ___________________________________ Michelle Bigelow, City Clerk

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

Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager

ADOPT RESOLUTION JOINING BUILD THE FUTURE SANTA CLARA
COUNTY

RECOMMENDATION(S)
Adopt resolution joining Build the Future Santa Clara County in advocating for comprehensive and collaborative solutions to solve the child care crisis.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Enhancing Diversity and Inclusiveness
REPORT NARRATIVE:

Build the Future is a movement to build a brighter future for all Santa Clara County residents by advocating for affordable, quality childcare. Providing affordable childcare not only helps working parents and kids but also helps our entire community by reducing poverty, improving community safety, and building a stronger economy.

Joining Build the Future Santa Clara County demonstrates the City is advocating for comprehensive and collaborative solutions to solve the child care crisis.

COMMUNITY ENGAGEMENT:

This report serves to inform the Community of the proposed City Council action to adopt a resolution joining Build the Future Santa Clara County in advocating for comprehensive and collaborative solutions to solve the child care crisis.

ALTERNATIVE ACTIONS:

City Council may choose to support Build the Future Santa Clara County differently or not approve the resolution.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

None.

FISCAL AND RESOURCE IMPACT:

7 There is no fiscal impact associated with adopting this resolution.

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.

RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL JOINING “BUILD THE FUTURE
SANTA CLARA COUNTY” IN ADVOCATING FOR

COMPREHENSIVE AND COLLABORATIVE SOLUTIONS

TO SOLVE OUR CHILDCARE CRISIS
WHEREAS, the Council for a Strong America issued a report in early 2023 which details that the shortage of infant-toddler child care costs the United States $122 billion in lost earnings, productivity, and revenue every year; and
WHEREAS, this shortage translates to a $15 billion economic threat to California and a $3 billion threat to Santa Clara County; and
WHEREAS, a family living in Silicon Valley needs to pay an average of $26,450 per child per year for infant care and $21,900 per year for one preschooler's childcare; and WHEREAS, the two most significant monthly expenses faced by working families are rent and child care; and
WHEREAS, the lack of an affordable child care option leads to underemployment, greater housing instability, less consumer spending, depressed business productivity and the near impossibility of seeking, securing and maintaining employment; and WHEREAS, investing in affordable childcare provides vital infrastructure to working parents and supports early childhood development, allows families to remain in a geographic area, creates a stronger economy, improves business productivity and consumer spending, decreases poverty, leads to safer communities, and provides additional revenue for cities; and WHEREAS, cities have a direct interest in building strong local economies, supporting and benefiting from local small businesses, attracting and retaining families and employers; and WHEREAS, one of the most impactful tools we can deploy to solve our greatest economic and societal challenges is investing in broadly accessible, high quality child care immediately; and WHEREAS, investments in the child care sector should prioritize supporting our most underserved children and their families; and

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

SECTION 1: The City of Morgan Hill will be proactive in its efforts to promote and advocate for funding streams in support of child care; and be it further

SECTION 2: The City of Morgan Hill will propose and support policies and practices that will facilitate expedited zoning, permitting and licensing processes for both center-based and home-based child care facilities to the extent possible; and SECTION 3: The City of Morgan Hill will empower our office of economic development to promote the importance of child care businesses in this city and provide support for providers who desire to operate within this city; and
SECTION 4: The City of Morgan Hill joins with Build the Future Santa Clara County in advocating for comprehensive and collaborative solutions to solve our child care crisis, including but not limited to building a coalition of stakeholders across all sectors including small and large businesses, community based organizations, neighborhood associations, law enforcement authorities, local governments including school and special districts and city councils, and labor and trades unions for the purpose of identifying and implementing solutions to this economic and social crisis.

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 6 th day of December 2023 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

 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No.23-__ adopted by the City Council at the meeting held on the 6th day of December 2023.

WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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

Nichole Martin, Community Services Coordinator
APPROVED BY: City Manager

ADOPT WEED ABATEMENT RESOLUTION, EXEMPT FROM

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER
SECTION 15304(I)

RECOMMENDATION(S)
Adopt resolution declaring weeds and brush to be a nuisance and setting the hazardous vegetation public hearing for February 21, 2024.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
REPORT NARRATIVE:

Under Government Code section 39561, cities may adopt a resolution declaring weeds and dry brush to be a public nuisance and order their abatement (Attachment 1). Weed and brush abatement services constitute the City’s weed abatement program and are key to reducing fire risk and protecting public safety. The City of Morgan Hill has contracted with Santa Clara County for weed and brush abatement services since 1996.

In the last several years, City and County staff have successfully worked together to streamline program administration and improve communications with Morgan Hill property owners. The County’s Consumer and Environmental Protection Agency - Weed Abatement Program manages the program. As in prior years, staff has combined the initial resolution for both the weed and brush abatement programs. Staff proposes that the abatement program commencement hearing take place on February 21, 2024.

Once the resolution is adopted, County staff will notify the affected property owners of the February 21st public hearing and of their obligations to abate hazardous vegetation before the deadline. In response to the City’s past request for more notification to the property owners, the County will also be mailing a courtesy notice out to affected property owners in the early Spring to further remind them of their obligations. The City’s Fire Department and the County’s Weed Abatement Division are continuing to integrate their efforts and communication methods to enhance customer service. The improvements instituted have eliminated customer complaints about receiving conflicting information from the two programs.

COMMUNITY ENGAGEMENT:

Empower

8 The weed abatement program relies on a full range of community engagement approaches. Much of it begins when the County Program or City Fire Department informs a property owner that a hazardous situation has been observed on their property. The owner is given several months during which they may consult and work together with program staff to understand the situation and the needed remedies.

Ultimately, each property owner is invited and empowered to remedy the situation themselves in order to minimize their program charges while maintaining public safety.

In addition, many of the properties on the original list got onto the list as a result of a complaint from a community member about a hazardous situation.

ALTERNATIVE ACTIONS:

The Council could choose not to act or delay action on this resolution. Not declaring weeds and brush to be a nuisance would potentially compromise community fire safety.

Delaying action would ultimately provide the affected property owners with less notice and time to plan for abating their hazardous vegetation.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

While this will be the first Council action addressing hazardous vegetation for the 2024 fire season, the recommended approach is consistent with the actions taken by the Council for over a decade.

FISCAL AND RESOURCE IMPACT:

The Weed Abatement Program is designed to be user-fee supported. The per-lot assessment includes costs for doing the weed and brush control work plus overhead County costs to administer the program. Based on the City’s agreement with the County, the City may need to ultimately contribute to the program’s costs if user fee revenues do not completely cover all of the County’s costs. Administering this program is an activity anticipated in the Public Services and Fire Departments’ work programs and budgets. Fees imposed by the County Program do not cover the cost of the City staff time associated in providing oversight and those resources are budgeted and funded through the General Fund (010).

CEQA (California Environmental Quality Act):

Categorical Exemption These activities are categorically exempt from environmental review under the California Environmental Quality Act pursuant to California Code of Regulations, Title 21, Section 15304(i) (Minor Alterations to Land – Fuel Management Activities).

RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL DECLARING CERTAIN HAZARDOUS

VEGETATION GROWING IN THE CITY OF MORGAN

HILL TO BE A PUBLIC NUISANCE, DESCRIBING
PROPERTIES WHERE SUCH NUISANCE EXISTS;

ORDERING ABATEMENT AND SETTING A PUBLIC

HEARING THEREON
WHEREAS, the City Council finds that certain weeds and brush are growing in the City of Morgan Hill upon the various streets, alleys, sidewalks, and upon private property, which said weeds and brush bear seeds of a wingy or downy nature, or may attain such growth as to become, when dry, a fire menace, or which are otherwise noxious and dangerous; and WHEREAS, the City Council further finds and declares that said weeds and brush constitute a public nuisance.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morgan Hill authorizes as follows:

1. That the weeds, as described in the above recital, constitute and will continue to constitute a public nuisance, and it is ordered that this public nuisance be abated in the manner provided in Title 8, Chapter 8.20 of the Morgan Hill Municipal Code.

2. That the nuisance exists upon all streets, alleys, sidewalks, and private property within said City as shown, described and delineated on the several maps of the property in the City, which are recorded in the Office of the County Recorder of the County of Santa Clara, reference in each instance for the description of any particular street, alley, or private property being hereby made to the several maps mentioned, and in the event of there being several subdivision maps on which lots are shown, reference is hereby made to the latest subdivision map.

3. That it is ordered that Wednesday, the 21st day of February 2024, at 6:00 p.m., in the Council Chambers of the City Council of the City of Morgan Hill is hereby fixed as the time and place when objections to the proposed destruction or removal of weeds shall be heard and be given due consideration.

4. That the City Clerk of the City of Morgan Hill is hereby ordered and directed to cause notice of the adoption of this Resolution and notice of hearing to be given to property owners pursuant to Section 39562.1 of the Government Code.

City of Morgan Hill
Resolution No. 23-xxx

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 6
th day of December 2023 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
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No.23-xxx, adopted by the City Council at the meeting held on December 6, 2023.

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

DATE:

MICHELLE BIGELOW, City Clerk

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

Barbara Voss, Management Analyst
APPROVED BY: City Manager

ADOPT RESOLUTION AUTHORIZING CALIFORNIA CLIMATE

INVESTMENTS - DEPARTMENT OF FORESTRY AND FIRE

PROTECTION (CAL FIRE) FIRE PREVENTION GRANT APPLICATION

RECOMMENDATION(S)
Adopt a resolution authorizing a grant application to the California Department of Forestry and Fire Protection and authorizing the City Manager to execute associated grant documents.

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
REPORT NARRATIVE:

The purpose of this staff report is to request the City Council’s authorization to submit a grant application to Cal Fire which will assist the City with the development of a longrange wildfire mitigation plan.

CAL FIRE’s Fire Prevention Grants Program provides funding for local projects and activities that address the risk of wildfire and reduce wildfire potential to forested and forest adjacent communities. Funded activities include hazardous fuel reduction, fire prevention planning, and fire prevention education with an emphasis on improving public health and safety while reducing greenhouse gas emissions. Up to $117 million is being allocated to the 2023-2024 grant program which aims to reduce the risk of wildland fires to habitable structures and communities, while maximizing carbon sequestration in healthy wildland habitat and minimizing the uncontrolled release of emissions emitted by wildfires. More information can be found on the CAL FIRE website at: https://www.fire.ca.gov/grants/fire-prevention-grants/ The Santa Clara County Community Wildfire Protection Plan (CWPP) from 2016 identified strategic goals and specific mitigation projects for the City of Morgan Hill. This document serves as a reference framework for the City to address and remedy noted wildfire hazard assessments. City staff has determined that the fire prevention planning aspect of the CAL FIRE grant opportunity will support the development of a long-range

9 planning document which addresses the CWPP recommendations, prioritizes projects by critical need, provides applicable design concepts, and outlines an implementation timeline. This will be a critical first step in furthering the City’s efforts related to community-wide wildfire protection and risk mitigation.

COMMUNITY ENGAGEMENT:

None
No specific engagement was done for the grant application.

ALTERNATIVE ACTIONS:

The Council could choose to not authorize the submission of the application and forego the opportunity for the grant or provide staff with other alternate direction.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has authorized submissions for this grant opportunity in prior years.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with this grant application. The City may receive up to $150,000 in grant funds if the application is successful. Should matching funds be necessary, the City currently has funding appropriated within the Infrastructure Planning Project of the Capital Improvement Program. The City has also submitted other related grant applications to other funding sources.

CEQA (California Environmental Quality Act):

Not a Project
The submission of a grant application is an administrative action and does not constitute a project under CEQA. However, should a grant agreement be executed with CAL FIRE, proof of adequate compliance with CEQA is required within one year of that execution.

RESOLUTION NO: XX-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING THE SUBMITTAL OF A

CALIFORNIA CLIMATE INVESTMENTS FIRE

PREVENTION GRANT APPLICATION TO THE

CALIFORNIA DEPARTMENT OF FORESTRY & FIRE

PROTECTION AND AUTHORIZING THE CITY

MANAGER TO EXECUTE DOCUMENTS REQUIRED TO

APPLY AND ACCEPT THE GRANT FOR THE CITY, IF

AWARDED, AND DIRECTING CERTAIN ACTIONS IN

CONNECTION THEREWITH
WHEREAS, the City of Morgan Hill, is a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (“City”); and
WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing the application by local agencies, non-profit organizations, and others under the program; and
WHEREAS, the applicant will enter into an agreement with the State of California to carry out the Morgan Hill Wildfire Mitigation Plan project; and
WHEREAS, the City desires to apply for the grant funds through the State of California, Department of Forestry and Fire Protection; and
WHEREAS, the City Council determines that adoption of this Resolution is in the public interest.

NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY: APPROVES THE FILING OF AN APPLICATION FOR MORGAN HILL WILDFIRE MITIGATION PLAN; AND
Section 1. Recitals. The City Council does hereby find, determine and resolve that all of the foregoing recitals are true and correct.

Section 2. Approval and Authorization. The City Council does further resolve, order and or direct as follows:

1. Certifies the approval of the filing of an application for “California Climate Investment Fire Prevention Grant Program”; and

City of Morgan Hill
Resolution No. xx-xxx

2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and

3. Certifies that funds under the jurisdiction of The City of Morgan Hill are available to begin the project; and

4. Certifies that the applicant will expend grant funds prior to the Grant Deadline of March 15, 2030; and

5. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of Grant Scope; Section 3. This resolution shall take effect immediately upon adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on the 6th day of December, 2023.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ _______ ___________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No.xx-xxx, adopted by the City Council at a regular meeting held on December 6th, 2023.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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

Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE A THREE-YEAR SERVICE AGREEMENT WITH ALPHA
ANALYTICAL LABORATORIES, INC. FOR A NOT-TO-EXCEED
AMOUNT OF $225,000 FOR WATER LABORATORY TESTING AND

ANALYSIS SERVICES

RECOMMENDATION(S)
Approve and authorize the City Manager to execute and administer a three-year service agreement for a not-to-exceed amount of $225,000 with Alpha Analytical Laboratories, Inc., for water laboratory testing and analysis services.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land 2022-2023 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Water System Master Plan
REPORT NARRATIVE:

The Utilities Division systematically tests Morgan Hill’s drinking water to ensure that water quality meets or exceeds all public health standards set by the U.S.

Environmental Protection Agency (EPA) and the California Department of Public Health.

Test results are reported to the State and to the public (City water customers receive the annual Water Quality Consumer Confidence Report). The EPA and State establish the regulations for the type and frequency of testing as well as quality control procedures. Drinking water sampling and analysis is carried out pursuant to the provisions of the California Health and Safety Code, Division 101, Part 12, Chapter 4, Section 100825. Additionally, rigorous water quality sample analysis is needed to support the City’s Stormwater Management program. Various stormwater samples and samples from surface waterbodies are collected to meet Non-Point Source National Pollution Discharge Elimination Program (NPDES) permit requirements.

To meet these requirements, the City uses certified commercial laboratory services

10 located within a 60 mile radius of the City to perform labs and analysis of our water samples. A Request for Proposals (RFP) was issued in September 2023 for a vendor for a new three-year contract to provide analytical services beginning January 1, 2024.

The RFP was posted to the City Website and was advertised in the Morgan Hill Times.

Submittals were received by two qualified labs, but one of the proposals was deemed non-responsive because they failed to submit all of the required proposal documentation. The other submittal was from Alpha Analytical and meets all of the licensing, certification, qualification and experience required to perform this work. Alpha Analytical is the City’s current lab contractor and has provided excellent services in the course of their current agreement. Therefore, staff recommends awarding the new agreement to Alpha Analytical.

COMMUNITY ENGAGEMENT:

Not Applicable
Sampling and analysis are required functions for the City Water Utility and Storm Water functions, which are services expected to be provided by the City. No specific community engagement was conducted in association with this item.

ALTERNATIVE ACTIONS:

City Council could decide to not approve the agreement and direct staff to re-bid the service. This is not recommended as the formal procedures have already been fully performed by staff and it is not believed cost savings will be achieved by rebidding.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On December 4, 2019, Council authorized the City Manager to enter into a three-year agreement with Alpha Analytical in the amount of $200,000.

FISCAL AND RESOURCE IMPACT:

Funds for these services are included in the annual operating budget and costs are allocated on an as-used basis across Water Operations (Fund 650) not to exceed $190,000 and the Stormwater Program (Fund 232) not to exceed $35,000.

CEQA (California Environmental Quality Act):

Categorical Exemption
Section 15308--Actions by Regulatory Agencies for Protection of the Environment

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SERVICE AGREEMENT
ALPHA ANALYTICAL LABORATORIES, INC.

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

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

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until December 31, 2026 at which time SERVICE PROVIDER’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum period of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be water laboratory testing and analysis services as further described in Exhibit A.

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

4.1. 4.2.

Amount. $225,000.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Two Hundred Twenty-Five Thousand Dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for the extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement.

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

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,

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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 of CITY 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.

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 shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. CITY'S 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. 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 CITY'S 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.

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

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

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written evidence of such insurance to the CITY for at least five (5) years after the completion of work performed under this Agreement.

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

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.

8.1.7. Crime/Fidelity Bond. If the performance of SERVICE PROVIDER’S work or service under this Agreement relates to or involves handling of CITY monies, SERVICE PROVIDER shall procure and maintain Crime insurance, in the minimum amount of: (i) three hundred thousand dollars ($300,000.00) per occurrence, covering all SERVICE PROVIDER’S officers and employees, for loss of CITY monies caused by dishonesty and/or theft.

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 selfinsurance 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

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

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

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

AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY FINAL

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

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

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order.

SERVICE PROVIDER and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision or order within five (5) days of satisfying the final judgment, decision or order. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

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

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

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

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

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

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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:

Alpha Analytical Laboratories, Inc.
262 Rickenbacker Circle
Livermore, CA 94551
Address of CITY is as follows:

Utilities Division
City of Morgan Hill
100 Edes St.

Morgan Hill, CA 95037
with a copy to:

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

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

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

17. Maintenance of Records.

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

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

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.

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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.

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

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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. Notice Of Security and/or Privacy Incident. If SERVICE PROVIDER, or its subcontractor, suspect, discover or are notified of a data security incident or potential breach of security and/or privacy relating to CITY PII, PHI and/or PCI, SERVICE PROVIDER shall immediately, but in no event later than forty-eight (48) hours from suspicion, discovery or notification of the incident or potential breach, notify CITY of such incident or potential breach. SERVICE PROVIDER shall, upon CITY’s request, investigate such incident or potential breach, inform the CITY of the results of any such investigation, and assist the CITY in maintaining the confidentiality of such information. In addition to the foregoing, SERVICE PROVIDER shall provide CITY with any assistance necessary to comply with any state and/or federal laws requiring the provision of notice of any privacy incident or security breach with respect to any CITY PII, PHI and/or PCI to the affected or impacted individuals and/or organizations, in addition to any notification to applicable state and federal agencies.

SERVICE PROVIDER agrees that it shall reimburse CITY for all expenses, costs, attorneys’ fees, and resulting fines, penalties, and damages associated with such incident, breach, investigation and/or notification.

29. 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. ///
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[Signatures on Next Page]

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EXHIBIT A

SCOPE OF SERVICES
Contractor shall provide laboratory testing and analysis services on drinking water samples provided by the City of Morgan Hill. The services shall include transportation to pick up collected water samples from the City’s Corporation Yard at 100 Edes Street in Morgan Hill. Because of this the contractor must be located within a 60 mile radius to the City of Morgan Hill Corporation Yard.

The contractor’s services shall also include any and all labor, materials, equipment, transportation, facilities and services for the sample collection analysis, and report submittal.

All water sampling analysis shall be done using current EPA methods for drinking water approved by the State Water Resources Control Board and in accordance with Article 17. The contractor shall provide electronic reporting of analysis results via email. The results shall include the laboratory letterhead cover sheet signed by an official of the laboratory and a copy of the original chain of custody. In addition, the contractor shall submit a monthly electronic spreadsheet for all the previous month’s analysis results including subcontracted lab results by the 10th of the month.

The City also requires proactive assistance from the chosen laboratory in assuring that the quality of the City's water is maintained. To this end, the City will ask the contracted lab to actively help the City interpret and follow any new regulations, communicate immediately with the City any time a sample exceeds State MCL, and meet periodically with City staff to resolve problems and provide advisement.

The laboratory will be required to provide extra samples, as needed, to be taken at the same unit price per method as provided in Exhibit B of this contract. From time to time, the City also requires testing and analysis of Stormwater samples taken from local creeks. This would be a time and materials task and defined by task order to the contracted laboratory. A not to exceed amount will be defined in this contract.

The Contractror, if requested, will subcontract samples for HF183 Bacteroides analysis to LuminAltra, a specialty lab located in Baltimore MD. There may be potential discounts offered for higvolume collection events, but at a maximun, the total cost per sample to the City would be $550 for HF183 analysis. This includes Alpha Labs bench staff filtering and prepping the samples prior to shipping to LuminUltra for qPCR Fecal Assay testing.

The laboratory is to have staff available during normal business hours of the Utilities Division of 6:30 a.m. to 4:00 p.m. (Monday -Thursday) and 6:30 a.m. to 3:00 p.m. (Friday) and to ensure that there is a person available on-call 24 hours per day, 7 days per week.

CALENDAR YEAR 2024
PAGE 1 OF 3
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 12 Routine Total Coliform P/A 15.00 15.00 15.00 9,360.00 Lab Liquid 3 Total Coliform MPN (Special) 20.00 20.00 20.00 3,120.00 Lab 12,480.00
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 3 Source Total Coliform P/A (Special) 15.00 15.00 15.00 540.00 Lab 540.00
CALENDAR YEAR 2024
PAGE 2 OF 3

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
All water sampling analysis to be done using current EPA methods for drinking water approved by the State Water Resources Control Board and in accordance with Article 17.

Pursuant to this Request for Proposal, the Service Provider hereby proposes and agrees that on award by the City of Morgan Hill and under this Proposal, and in accordance with the provisions therein stated, to execute a Contract to furnish and all labor, materials, equipment, transportation, facilities, and services for the sample collection, analysis, and report submittal for Calendar Year 2024 for the City of Morgan Hill Laboratory Testing and Analysis Program, in accordance with the Specifications and at the prices quoted in this Proposal as follows:

WEEKLY TESTS

MONTHLY TESTS
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 4 55.00 880.00 Lab
Liquid 4 95.00 1,520.00 Lab
Liquid 3 25.00 300.00 Lab
Liquid 3 200.00 2,400.00 Lab
Liquid 3 85.00 1,020.00 Lab
Liquid 3 1,370.00 16,440.00 Lab and Sub
22,560.00
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 1,370.00 13,700.00 Lab and Sub
13,700.00
CALENDAR YEAR 2024
PAGE 3 OF 3
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 160.00 800.00 Lab
Liquid 5 200.00 1,000.00 Lab
Liquid 5 85.00 425.00 Lab
Liquid 5 1,370.00 6,850.00 Lab and Sub
Liquid 16 25.00 400.00 Lab
Liquid 30 40.00 1,200.00 Lab
Liquid 3 70.00 210.00 Sub

QUARTERLY TESTS
Analysis
TTHM - Stage 2 (Dist. System)
HAA5 (Dist system)
Nitrates
Title 22: Inorganic Chemical
Title 22: Regulated Volatile Organic Chemicals
Title 22: Radiological
Lead and Copper Rule
Title 22: Regulated Synthetic Organic Chemicals
Title 22: Regulated Synthetic Organic Chemicals
Nitrates
Analysis
Title 22: Regulated Inorganic Chemicals
Title 22: Regulated Synthetic Organic Chemicals

SEMI ANNUAL TESTS
Title 22: Regulated Volatile Organic Chemicals
Analysis

ANNUAL TESTS
Title 22: General Mineral-General Physical
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Liquid 25 15.00 375.00 Lab
Liquid 25 110.00 2,750.00 Lab
14,010.00
SUBTOTAL SAMPLES 63,290.00
TRANSPORTATION - weekly pickup at Corporation Yard 0.00 TOTAL FOR CY 2024 63,290.00
WQ Investigation (Color, Odor, Turbidity, pH, TDS, EC, Sulfate, Fe, Mn, Cu) Total Coliform (Special)
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

CALENDAR YEAR 2025
PAGE 1 OF 3
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 12 Routine Total Coliform P/A 16.00 16.00 16.00 9,984.00 Lab Liquid 3 Total Coliform MPN (Special) 21.00 21.00 21.00 3,276.00 Lab 13,260.00
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 3 Source Total Coliform P/A (Special) 16.00 16.00 16.00 576.00 Lab 576.00
CALENDAR YEAR 2025
PAGE 2 OF 3

COST PROPOSAL FOR PROVIDING LABORATORY TESTING AND ANALYSIS SERVICES All water sampling analysis to be done using current EPA methods for drinking water approved by the State Water Resources Control Board and in accordance with Article 17.

Pursuant to this Request for Proposal, the Service Provider hereby proposes and agrees that on award by the City of Morgan Hill and under this Proposal, and in accordance with the provisions therein stated, to execute a Contract to furnish and all labor, materials, equipment, transportation, facilities, and services for the sample collection, analysis, and report submittal for Calendar Year 2025 for the City of Morgan Hill Laboratory Testing and Analysis Program, in accordance with the Specifications and at the prices quoted in this Proposal as follows:

WEEKLY TESTS

MONTHLY TESTS
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 4 55.00 880.00 Lab
Liquid 4 95.00 1,520.00 Lab
Liquid 3 25.00 300.00 Lab
Liquid 3 200.00 2,400.00 Lab
Liquid 3 85.00 1,020.00 Lab
Liquid 3 1,370.00 16,440.00 Lab and Sub
22,560.00
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 1,370.00 13,700.00 Lab and Sub
13,700.00
CALENDAR YEAR 2025
PAGE 3 OF 3
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 160.00 800.00 Lab
Liquid 5 200.00 1,000.00 Lab
Liquid 5 85.00 425.00 Lab
Liquid 5 1,370.00 6,850.00 Lab and Sub
Liquid 16 25.00 400.00 Lab
Liquid 30 40.00 1,200.00 Lab
Liquid 3 Title 22: Radiological 70.00 210.00 Sub
Title 22: General Mineral-General Physical
Title 22: Inorganic Chemical
Title 22: Regulated Volatile Organic Chemicals
Title 22: Regulated Synthetic Organic Chemicals
Nitrates
Lead and Copper Rule
Analysis
Analysis
TTHM - Stage 2 (Dist. System)
HAA5 (Dist system)
Nitrates
Title 22: Regulated Inorganic Chemicals
Title 22: Regulated Volatile Organic Chemicals
Title 22: Regulated Synthetic Organic Chemicals

SEMI ANNUAL TESTS
Analysis
Title 22: Regulated Synthetic Organic Chemicals

ANNUAL TESTS

QUARTERLY TESTS
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Liquid 25 16.00 400.00 Lab
Liquid 25 0.00 Lab
11,285.00
SUBTOTAL SAMPLES 61,381.00
TRANSPORTATION - weekly pickup at Corporation Yard 0.00 TOTAL FOR CY 2025 61,381.00
Total Coliform (Special)
WQ Investigation (Color, Odor, Turbidity, pH, TDS, EC, Sulfate, Fe, Mn, Cu) * Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

CALENDAR YEAR 2026
PAGE 1 OF 3
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 12 Routine Total Coliform P/A 17.00 17.00 17.00 10,608.00 Lab Liquid 3 Total Coliform MPN (Special) 22.00 22.00 22.00 3,432.00 Lab 14,040.00
Matrix Qty Analysis
Price/Sample
(24 hour)
Price/Sample
(5 day)
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 3 Source Total Coliform P/A (Special) 17.00 17.00 17.00 612.00 Lab 612.00
CALENDAR YEAR 2026
PAGE 2 OF 3

COST PROPOSAL FOR PROVIDING LABORATORY TESTING AND ANALYSIS SERVICES All water sampling analysis to be done using current EPA methods for drinking water approved by the State Water Resources Control Board and in accordance with Article 17.

Pursuant to this Request for Proposal, the Service Provider hereby proposes and agrees that on award by the City of Morgan Hill and under this Proposal, and in accordance with the provisions therein stated, to execute a Contract to furnish and all labor, materials, equipment, transportation, facilities, and services for the sample collection, analysis, and report submittal for Calendar Year 2026 for the City of Morgan Hill Laboratory Testing and Analysis Program, in accordance with the Specifications and at the prices quoted in this Proposal as follows:

WEEKLY TESTS

MONTHLY TESTS
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 4 55.00 880.00 Lab
Liquid 4 100.00 1,600.00 Lab
Liquid 3 25.00 300.00 Lab
Liquid 3 200.00 2,400.00 Lab
Liquid 3 85.00 1,020.00 Lab
Liquid 3 1,370.00 16,440.00 Lab and Sub
22,640.00
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 1,370.00 13,700.00 Lab and Sub
13,700.00
CALENDAR YEAR 2026
PAGE 3 OF 3
Matrix Qty
Price/Sample
(Standard*)

TOTAL ANNUAL
PRICE
(Standard) Lab or Subcontract
Liquid 5 160.00 800.00 Lab
Liquid 5 200.00 1,000.00 Lab
Liquid 5 85.00 425.00 Lab
Liquid 5 1,370.00 6,850.00 Lab and Sub
Liquid 16 25.00 400.00 Lab
Liquid 30 40.00 1,200.00 Lab
Liquid 3 Title 22: Radiological 70.00 210.00 Sub
Title 22: General Mineral-General Physical
Title 22: Inorganic Chemical
Title 22: Regulated Volatile Organic Chemicals
Title 22: Regulated Synthetic Organic Chemicals
Nitrates
Lead and Copper Rule
Analysis
Analysis
TTHM - Stage 2 (Dist. System)
HAA5 (Dist system)
Nitrates
Title 22: Regulated Inorganic Chemicals
Title 22: Regulated Volatile Organic Chemicals
Title 22: Regulated Synthetic Organic Chemicals

SEMI ANNUAL TESTS
Analysis
Title 22: Regulated Synthetic Organic Chemicals

ANNUAL TESTS

QUARTERLY TESTS
* Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS

Liquid 25 17.00 425.00 Lab
Liquid 25 110.00 2,750.00 Lab
14,060.00
SUBTOTAL SAMPLES 65,052.00
TRANSPORTATION - weekly pickup at Corporation Yard 0.00 TOTAL FOR CY 2026 65,052.00
Total Coliform (Special)
WQ Investigation (Color, Odor, Turbidity, pH, TDS, EC, Sulfate, Fe, Mn, Cu) * Standard = 10 Calendar days O:\Utilities\Admin\Purchasing\Bids-RFPs-RFQs\FY2023-24\Lab Testing Services\Submittals\Alpha\MH Attachment 4- Cost Schedule for Water Laboratory Testing and Analysis Services

ALPHA LABS
Extra drinking water samples as needed per the pricing in this schedule, not to exceed a contract total of $190,000.

Stormwater analysis will be requested as a materials task not to exceed $35,000.

23 Updated August 2023

EXHIBIT C

SCHEDULE OF PERFORMANCE
Per Exhibit B, laboratory shall provide testing and analysis services, weekly, monthly , quarterly and annually with weekly pick up of samples for analysis. The contractor shall submit a monthy electronic spreadsheet for all the previous month's analysis results including subcontracted lab results by the 10th of the month. The City shall be invoiced once a month for all of the testing done per month from the 1st of the month to the last day of the month.

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

Tanya Carothers, Environmental Services Administrator
APPROVED BY: City Manager

APPROVE CONTRACT WITH SCS ENGINEERS FOR COMPLETION OF
A FOOD WASTE PREVENTION STUDY IN THE AMOUNT OF $111,538

RECOMMENDATION(S)
Authorize the City Manager to enter into an agreement with SCS Engineers for completion of a Food Waste Prevention Study.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Community Outreach, Engagement, and Messaging
REPORT NARRATIVE:

The purpose of this agenda item is to authorize the City Manager to enter into a contract with SCS Engineers for completion of a Food Waste Prevention Study in partnership with the City of Gilroy - see Attachment A.

Background
On March 2, 2022, Council authorized submittal of an application for funds from the CalRecycle SB 1383 Local Assistance Program Grant (SB 1383 LAP Grant). Eligible items under the grant included SB 1383 programs related to Mandatory Organic Waste Recyling, Procurement, and/or Edible Food Recovery Programs. The City of Morgan Hill partnered as the lead agency with the City of Gilroy to submit a larger regional grant application that totalled $138,410. The Morgan Hill/Gilroy application proposed to: 1) provide the cities' contributions to the Edible Food Recovery Program that is managed regionally and supports countywide food recovery infrastructure upgrades and expansion; and 2) complete a Food Waste Prevention Project in both communities.

Project Description
The cities of Morgan Hill and Gilroy have partnered with the City of Mountain View to implement a community-based social marketing (CBSM) behavior change campaign to

11 address residential food waste at multi-family properties. The goal of this project is to find ways to support multifamily properties in reducing food waste that goes to landfills.

While the study will focus primarily on food waste prevention, the study will also touch on food recycling and proper use of the green organics bin when there is food waste generated.

A previous pilot study in the region tested outreach to motivate residents in single-family homes to reduce food waste through eating leftovers and fridge organization. The proposed study aims to build upon the previous methodologies and findings on food waste prevention in single-family homes by tailoring outreach and engagement efforts to be relevant to multi-family properties. The project will include six tasks: 1) planning; 2) research and strategy development; 3) outreach and pilot development based on research; 4) pilot implementation including pre- and post- waste characterizations, preand post- surveys, postcard mailings, collateral, and door-to-door outreach and engagement; 5) analysis and reporting; and 6) project management. For more details associated with each of these tasks see the scope of work included in the contract, see Attachment A.

The Food Waste Prevention Study will be completed in coordination with the City of Gilroy and the City of Mountain View. As the lead agency in the SB 1383 LAP Grant, Morgan Hill will manage Gilroy's funds under the Morgan Hill contract, and Mountain View will enter into their own contract with SCS Engineers. All three agencies will benefit from the efficiencies of working together on tasks included in the study. If Mountain View decides not to proceed with the study, then the project will be adjusted so that the study can take place in its entirety within Morgan Hill and Gilroy.

Because SCS Engineers completed the prior Food Waste Prevention Study that focused on single family dwellings, there will be time savings and cost savings in using the same consultant because they can use prior findings and methodologies and adjust them to cater to a multifamily project. It is not expected that a competitive process would identify a consultant at a lower cost and with the relevant project expertise held by SCS Engineers. For this reason, the City of Morgan Hill proposes entering into an agreement for the services of SCS Engineers.

COMMUNITY ENGAGEMENT:

Inform, Consult, Involve
Completion of the Food Waste Prevention Study will essentially be one big community engagement activity as various methods are used to encourage involvement, consult on opinions, and involve residents in decisions made in prevention of the generation of food waste. Additionally, findings may be used in future outreach and engagement with multifamily properties regarding food waste prevention and food recycling in the green bins.

ALTERNATIVE ACTIONS:

The Council could decide not to move forward with the proposed Food Waste Prevention Project. This would result in a missed opportunity to save time and funds

11 from the efficiencies of partnering with the City of Mountain View and the use of SCS Engineers who completed the prior Food Waste Prevention Study for single-family dwellings. Staff would need to consider other projects in coordination with the City of Gilroy in order to complete a Food Waste Prevention Study, which the cities committed to as part of their SB 1383 LAP Grant application.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On March 2, 2022, the City Council approved submittal of an application for the CalRecycle SB 1383 LAP Grant which included funds allocated for a Food Waste Prevention Study.

FISCAL AND RESOURCE IMPACT:

The Food Waste Prevention Study will be funded by SB 1383 LAP Grant funds which encompassed one-time revenues and expenses of approximately $138,410 in FY 2022-

23. $111,538 in grant funds not spent in FY 2022-23 were rolled over to FY 2023-24 to cover the cost of the Food Waste Prevention Study. SB 1383 compliance activities are included in the work program of the Public Services Department.

CEQA (California Environmental Quality Act):

Not a Project
The Food Waste Prevention Study is an administrative program and will not result in a change to the physical environment, therefore entering into a contract to complete the study is not a project under the California Environmental Quality Act.

1 Updated May 2023

CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS
Stearns, Conrad and Schmidt Consulting Engineers, Inc. dba SCS Engineers THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Stearns, Conrad and Schmidt Consulting Engineers, Inc. dba SCS Engineers a Virginia Corporation ("CONSULTANT"), duly authorized to do business in California and will remain so during the term of this Agreement, 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 May 1, 2024, at which time CONSULTANT’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum period of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by CONSULTANT shall be completion of a Community Based Social Marketing (CBSM) Food Waste Prevention Study as further described in Exhibit A.

4. Compensation. CONSULTANT shall be compensated as follows:

4.1. Amount. $111,538.00. Total compensation to CONSULTANT under this Agreement during its initial term set forth in Section 2 above shall not exceed one hundred eleven thousand five hundred thirty eight dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to CONSULTANT, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement, and provided further that in no event shall such maximum compensation allowed for the term exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council.

4.2. Billing. CONSULTANT 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 CONSULTANT 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 13 Notices. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY’S judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.

2 Updated May 2023

5. Termination. CITY or CONSULTANT 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, CONSULTANT shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require CONSULTANT to complete certain work product or documents and CONSULTANT shall deliver to CITY all documents in its possession without additional compensation to CONSULTANT. The City Manager of CITY 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 CONSULTANT 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.

6. Performance of Work. CONSULTANT represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by CONSULTANT in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of the CONSULTANT’S profession. By delivery of completed work, CONSULTANT certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. CONSULTANT shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. CITY'S 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. If CONSULTANT desires to leave or store any of CONSULTANT’S equipment at a CITY site while CONSULTANT is performing work or service pursuant to this Agreement, CONSULTANT will first obtain the consent of CITY'S 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 CONSULTANT’S sole risk.

7. Insurance Requirements. CONSULTANT 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 CONSULTANT, 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. CONSULTANT further understands that the CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to CONSULTANT, at any time as deemed necessary to protect the interests of the CITY.

7.1. Insurance Types and Amounts.

7.1.1. Commercial General Liability (CGL). CONSULTANT 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 CONSULTANT under CONSULTANT’S

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

7.1.2. Automobile Liability. CONSULTANT shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if CONSULTANT does not own automobiles, then CONSULTANT shall maintain Hired/Non-owned 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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

7.1.3. Workers’ Compensation Insurance and Employer’s Liability. CONSULTANT 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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If CONSULTANT is selfinsured, CONSULTANT shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.

7.1.4. Pollution (Environmental) Liability. If the performance of CONSULTANT’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, CONSULTANT shall procure and maintain Pollution Liability covering the CONSULTANT’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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

7.1.5. Professional Liability.

7.1.5.1. If the performance of CONSULTANT’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), CONSULTANT 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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. Further, if CONSULTANT maintains a claims-made policy, CONSULTANT shall provide written evidence of such insurance to the CITY for at least five (5) years after the completion of work performed under this Agreement.

4 Updated May 2023

7.1.5.2. If the performance of CONSULTANT’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), CONSULTANT 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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

7.1.6. Sexual Abuse/Molestation Liability (SML): If the performance of CONSULTANT’S work or service under this Agreement involves contact with minors, CONSULTANT 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 CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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

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

7.2.1.1. “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.

7.2.1.2. “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

7.2.1.3. “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. 7.2.2. Workers Compensation.

If the performance of CONSULTANT’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, CONSULTANT’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.

7.3. 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.

5 Updated May 2023

7.4. Certificates. CONSULTANT shall furnish CITY of Morgan Hill with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, CONSULTANT shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to the CONSULTANT’S agreement with the CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 7. 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

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

9. Compliance with Law.

9.1. CONSULTANT 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. CONSULTANT 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.

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

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

AGREEMENT, CONSULTANT 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 CONSULTANT OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONSULTANT FURTHER

AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE

6 Updated May 2023
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 CONSULTANT or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or CONSULTANT learns of such a judgment, decision, or order that was not previously disclosed, CONSULTANT 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.

CONSULTANT 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. The City reserves the right to require CONSULTANT to enter into an agreement with the City regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where CONSULTANT 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, the City reserves the right to withhold payment to CONSULTANT 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.

10. Independent Contractor. CONSULTANT is an independent contractor and not an agent or employee of CITY.

11. Confidentiality. All data, documents, or other information received by CONSULTANT from CITY or prepared in connection with CONSULTANT’S services under this Agreement are deemed confidential and shall not be disclosed to any third party by CONSULTANT without prior written consent by CITY.

12. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

13. 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 CONSULTANT is as follows:

Stearns, Conrad and Schmidt Consulting Engineers, Inc. dba SCS Engineers

7 Updated May 2023
Attn: Lauren Romanazzi
438 S. Marengo Avenue
Pasadena, CA 91101
Address of CITY is as follows:

Attn: Tanya Carothers
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

14. Licenses, Permits and Fees. CONSULTANT 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.

15. Consultant's Proposal. If applicable, this Agreement shall include CONSULTANT'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.

16. Maintenance of Records.

16.1. Maintenance. CONSULTANT 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. CONSULTANT 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 CONSULTANT shall retain said records until such action is resolved.

16.2. Access to and Audit of Records. The CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONSULTANT 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 the CITY or as part of any audit of the CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

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

17. Familiarity with Work. By executing this Agreement, CONSULTANT 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 CONSULTANT 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 CONSULTANT'S risk, until written instructions are received from CITY.

8 Updated May 2023

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

19. No Assignment. Neither this Agreement nor any portion shall be assigned by CONSULTANT, 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.

20. 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.

21. Defense and Indemnification.

21.1. Defense and Indemnification for Design Professional Services. Consistent with California Civil Code Section 2782.8, for design professional services to be performed under this agreement by a design professional, as that term is defined under said Section 2782.8, CONSULTANT 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 negligence, recklessness, or willful misconduct of CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors in performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement (“CLAIM”) to the extent of CONSULTANT’S proportionate percentage of fault.

21.2. Defense and Indemnification for Non-Design Professional Services. For all services performed under this agreement not covered by Section 21.1 above, CONSULTANT 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 CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

21.3. Exceptions. CONSULTANT 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, active negligence, or willful misconduct of the CITY.

21.4. 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 CONSULTANT.

21.5. Right to Offset. CITY shall have the right to offset against any compensation due CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of CONSULTANT’S failure to pay CITY promptly any indemnification arising under

9 Updated May 2023
this Section (21) and any amount due CITY from CONSULTANT arising from CONSULTANT’S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

21.6. 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 the CONSULTANT 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.

22. 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 CONSULTANT. 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.

23. 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.

24. 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.

25. 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.

26. Binding Agreement. Notwithstanding the provisions of Section 19 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of CONSULTANT in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

27. ☐ Data Sharing. This Agreement requires access by CONSULTANT to CITY’S Geographic Information System (GIS) DATA for CONSULTANT to perform the work. CITY agrees to provide the GIS DATA to CONSULTANT solely for the purpose of performance of contracted work with the CITY upon the terms and conditions specified in Exhibit D, incorporated herein by this reference.

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

10 Updated May 2023

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

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

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

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

APPROVED AS TO FORM: STEARNS, CONRAD AND SCHMIDT
CONSULTING ENGINEERS, INC. dba SCS

ENGINEERS
City Attorney By:

Donald A. Larkin
Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or Vice
President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
U:\Legal Forms\Consultant Agreements\City Services Agreement For Design Professionals.Docx MP Leonard, Senior Vice Presdent
11/27/2023
Curtis Jang, Sr. VP and CFO
11/27/2023

11 Updated May 2023

12 Updated May 2023

EXHIBIT A

SCOPE OF SERVICES
See attached.

4683 Chabot Drive, Suite 200, Pleasanton, CA 94588 | 925-426-0080 Environmental Consultants & Contractors
November 17, 2023
Ms. Jennifer Cutter
Ms. Tanya Carothers
Via Email
Subject: Proposal to Conduct Multi-Family Dwelling Food Waste Prevention Study Dear Ms. Cutter and Carothers:

1.0 OVERVIEW
The Cities of Morgan Hill, Gilroy, and Mountain View seek to create a community-based social marketing (CBSM) behavior change campaign to address residential food waste in multi-family dwellings (MFDs). A previous pilot study in the region tested outreach to motivate residents in singlefamily (SF) homes to reduce food waste through eating leftovers and fridge organization. The proposed study aims to build upon previous findings by tailoring outreach and engagement efforts relevant to MFDs.

Before extending the previous outreach to the MFD context, it is essential to note some key differences between the two target populations (SF homes and MFDs). First, there is a difference in infrastructure, with SF dwellings each having individual carts, while MFDs have communal bins. This creates a context of anonymity when disposing of waste, making the establishment of social norms around accountability difficult. Second, while SB 1383 is the law and requires Californians to dispose of their food waste in designated ‘organics’ bins, many MFDs are not yet compliant due to various challenges resulting in food waste being disposed of in the properties’ landfill bins. This issue makes it challenging to measure a reduction in food waste associated with the outreach because measures will have to rely on food waste comingled with other solid waste. Additionally, when food waste is mixed with bagged waste, the food waste behaviors are not observable.

In addition to differences in the target populations of SFDs versus MFDs, two other important considerations guide the design of this study. First, to make claims concerning the effect of outreach on MFD residents’ behavior regarding food waste reduction, there must be a large enough sample size across a homogeneous area to allow for comparison. Second, each participating city has a different budget to contribute to the study. To address these considerations, the number of properties in each city included in the waste characterization sample size will be proportional to each city’s budget. Additionally, the results of this study will be reported in aggregate (i.e., across all cities). We cannot make comparisons across cities or make conclusions about the performance of outreach materials within any specific city. Table 1 shows the distribution of efforts across cities.

For the waste characterization, the total number of bags represents both the pre-and post-sorting activities.

Ms. Cutter and Ms. Carothers
November 17, 2023

Table 1. Study Design
Waste Characterization Outreach and Post Survey
City
Properties1
Bins per
Property
Bags
per
Bin
Total
Bags
Preawareness
Survey
(treatment
and
control) 2
Households
Receiving
Outreach
Materials3
Post Survey
(treatment
and
control)4 Treatment Control
Gilroy 10 5 3 1 90 60 460 690
Morgan
Hill
8 4 3 1 72 48 368 552
Mountain
View
2 1 3 1 18 12 92 138
Totals 20 10 9 3 180 120 920 1,380
1 Values represent the minimum sample size; 2 Values assumes at least 4 completed surveys per property; 3Value assumes an average of 46 households per property; 4 Values represent the total number of households the team would attempt to contact.

2.0 SCOPE OF WORK: MFD FOOD WASTE REDUCTION PILOT
Below is a scope of work and associated costs for a CBSM pilot to address the participating cities' food waste reduction and diversion goals. The budget for this study is $128,115, with an expenditure deadline of April 1, 2024.

TASK 1: PLANNING
Kickoff meeting – One-hour call to understand the problem, confirm key questions that need to be answered, devise workflow, assign tasks, and establish goals and objectives more fully for the study.

Literature review – Obtain and review relevant academic, white, and grey literature on food waste behaviors, especially those in MFDs.

Study area identification – Through systematic desktop analysis (via hauler data, Google Earth, ESRI Arc GIS, or QGIS) and on-the-ground verification, AR and SCS staff will define a study area with the following characteristics:
- Number of properties: 30 (minimum)
- Number of bins at each property: minimum of 1
- Property managers must be able and willing to assist with bins access - As possible, prioritize properties with a high proportion of families or larger household sizes.

Please note: due to the large sample size needed for this study and the logistic complexity of coordinating access to the preferred properties, this task will require significant coordination

Ms. Cutter and Ms. Carothers
November 17, 2023

between the participating cities and property managers. It is highly recommended that we begin outreach to property managers as soon as possible since lack of access will eliminate properties from the sample pool. We will attempt to contact each property three times. If after three times the property does not commit to involvement in the study, we will move on to the next property.

Additionally, given the proposed method, properties not currently compliant with SB 1383 are preferred. However, field staff can perform organics measures should a property comply with SB 1383 or achieve compliance during pilot implementation.

Recommendation call – One-hour call to relay findings and discuss next steps.

TASK 1 Deliverables:
· Kickoff meeting agenda and notes
· summary of literature (2-3 pages)
· 1-page memo with written recommendations for the study area TASK 2: RESEARCH AND STRATEGY DEVELOPMENT
Pre-Awareness Surveys – Action Research will develop a survey tool to verify the target behaviors, and the associated barriers and benefits which are relevant to the MFD context and to inform strategies for outreach to residents. The survey will also serve as a pre-assessment of knowledge, awareness and behavioral intention to reduce food waste at both treatment and control properties.

Field staff from SCS will intercept residents at MFD properties in the study area to provide relevant data. A sample size of 120 households across the three cities will be needed to test for statistical significance.

Develop Barrier Benefit Document and Strategy Table – Action Research will analyze the data gathered from pre-awareness surveys to inform a list of barriers and benefits to reducing food waste in MFDs. From this analysis, a set of strategies (commitments, prompts, social diffusion, message framing, etc.) will be developed to serve as the base of the campaign.

Barrier Benefit/Strategy Call – One-hour call to relay findings and discuss next steps.

Task 2 Deliverables:
· Survey instrument
· Data collection protocol
· Data entry and management tools
· Call agenda and notes
TASK 3: OUTREACH AND PILOT DEVELOPMENT
While the outreach and pilot will focus primarily and mostly on food waste prevention, the items listed below will also briefly touch on food recycling and proper use of the green bin when there is food waste generated.

Review Existing Collateral – Collateral developed for the single-family study and related outreach from the region will be reviewed for relevance and identify any necessary updates.

Ms. Cutter and Ms. Carothers
November 17, 2023

Develop/Redesign Collateral – Apply necessary updates and develop any new collateral items deemed necessary based on barrier benefit research and chosen outreach strategies. The costs outlined below are estimates for redesigning five collateral items and producing 1,000 units each.

Script Development – Action Research will develop an interview script and protocol and conduct training for SCS staff engaging in one-on-one interactions with residents.

Post-Outreach Survey Development – To serve as an additional indicator of the effectiveness of outreach efforts, a post-outreach survey will be paired with the measurements of food waste. Action Research will develop the survey tool, script, and protocol that SCS staff will administer in the project area.

Material Production – Action Research will produce all necessary materials for the outreach campaign. The costs outlined below are estimates for producing 1,000 units of each piece (5 redesigned pieces of collateral).

DELIVERABLES: Redesigned collateral material (physical copies and design files); · Pre-notification postcard (hard copy);
· Interview scripts (hard copy);
· Survey instrument (hard copy, does not include programming); · 1–2-page memo outlining pilot implementation
TASK 4: PILOT IMPLEMENTATION
Baseline Waste Characterization – Prior to conducting outreach, field staff from SCS will visit each property (N=30) in the study area, select one random waste bag from three pre-selected bins and characterize the waste therein as inedible food, edible food, or non-food. Measures of weight and volume will be included, if possible. SCS will develop a protocol for this effort, which will also be used in the Post Outreach Waste Characterization subtask.

Pre-notification Mailing –A postcard will be mailed to the households in the treatment portions of the study area, alerting them that materials will soon be arriving.

Perform Outreach – SCS staff will go door to door in the treatment properties of the study area (N=20) to conduct interviews and perform outreach.

Post Outreach Waste Characterization – Approximately two weeks following the outreach, field staff from SCS will visit each property in the study area (N=30), select one waste bag at random from the same pre-selected bins, and characterize the waste therein.

Post Outreach Survey – The survey will be administered to the treatment and control groups and cover changes in behavior, knowledge, and awareness. In the treatment areas, the survey will only be administered at households who received the outreach materials and participated in the outreach interview (i.e., no ‘leave behind’ households will receive the post-outreach survey).

Ms. Cutter and Ms. Carothers
November 17, 2023

DELIVERABLES:
· Pre-notification postcard (mailing);
· Waste characterization protocol
· Baseline and post-outreach waste characterization (data file); · Post outreach survey results (data file)
TASK 5: ANALYSIS AND REPORTING
Data Analysis – Action Research staff will analyze pre- and post-waste characterization and completed post-outreach surveys.

Reporting – Findings will be compiled in a final technical report.

Wrap-up Call – One-hour call to relay results and walk the client through the final report.

DELIVERABLES:
· Final report (document or slide deck hard copy)
· Call agenda and notes
TASK 6: PROJECT MANAGEMENT
Internal Planning and Coordination – Required meetings and email correspondence to plan and implement the study effectively.

Monthly Invoice – Monthly invoices will be provided to the prime contractor in accordance with their invoicing procedures.

3.0 BUDGET AND SCHEDULE
Table 2 below outlines the budget for each task in the study:

Table 2. Project Budget
Task Cost
1 Planning $23,118.00
2 Research and Strategy
Development
$10,323.00
3 Outreach and Pilot
Development
$18,309.00
4 Pilot Implementation $36,335.00
5 Analysis and Reporting $18,788.00

Ms. Cutter and Ms. Carothers
November 17, 2023

6 Project Management $11,998.00
Total $128,110.00
Table 3. 2023 Fee Schedule
Title Rate
SCS Engineers
Staff Professional $145
Project Professional $175
Project Manager $280
Project Director $310
Action Research*
President/Principal $200
Project Manager $145
Project Associate $115
Creative Manager $165
Creative Associate $125
Research Manager $140
Spark Team Advisor $225
*Costs for subcontractors are billed at actual cost plus a 10 percent administrative fee.

SCS will perform these services on a time and expense reimbursement basis, up to the total budget amount, according to the above 2023 Fee Schedule, and will not exceed the total budget without prior authorization by the City of Morgan Hill/Mountain View. SCS will invoice services on a time and expense reimbursement basis and submit separate monthly invoices to the cities of Morgan Hill and Mountain View. Work on the project will be billed based on which jurisdiction work was completed for, and when work completed benefits all jurisdictions equally then jurisdictions will be billed proportionally (87% of costs to Morgan Hill and 13% of costs to Mountain View).

We understand that each participating city has their own budget for this project:
· Mountain View: $16,577
· Morgan Hill: $50,894
· Gilroy: $60,644
Mountain View has staff available to help with field support in their jurisdiction (such as conducting the pre-awareness surveys) and contacting and recruiting MFD property managers for this study as listed in Task 1. The scope of work can be completed for only Morgan Hill/Gilroy, however modification of the waste characterization and survey portions would need to be made. In the event Mountain View decides not to participate, SCS will divide the 30 participating properties among

Ms. Cutter and Ms. Carothers
November 17, 2023

Morgan Hill and Gilroy to ensure a statistically significant sample. For the waste characterization, SCS will sample 2 bags per property instead of 3 bags. The number of pre and post surveys and outreach material distributed will be reduced to reflect the reduction in the budget.

The proposed schedule is included as Table 3.

Table 4. Project Schedule
Task Start End
1 Planning Early December 2023 Mid December 2023
2 Research and Strategy
Development
Mid December 2023 Late December 2023
3 Outreach Development Early December 2023 Early January 2024 4 Pilot Implementation Early/Mid-January 2024 Early March 2024 5 Analysis and Reporting Early March 2024 Late March 2024 6 Administration December 2023 March 2024
After reviewing this proposal, please do not hesitate to contact Lauren Romanazzi with questions you may have. We appreciate this opportunity to present our proposal to the cities of Gilroy, Morgan Hill, and Mountain View and look forward to working with you on this endeavor.

Sincerely,
Michelle Leonard Lauren Romanazzi
Project Director Project Manager
SCS Engineers SCS Engineers

13 Updated May 2023

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
2023 SCS Fee Schedule
Rate
Staff Professional $145
Project Professional $175
Project Manager $280
Project Director $310
Action Research Fee Schedule*
Rate
President/Principal $200
Project Manager $145
Project Associate $115
Creative Manager $165
Creative Associate $125
Research Manager $140
Spark Team Advisor $225
*Costs for subcontractors are billed at actual cost plus a 10 percent administrative fee.

14 Updated May 2023

EXHIBIT C

SCHEDULE OF PERFORMANCE
Task 1: Planning. Early December 2023 to Mid December 2023.

Task 2: Research and Strategy Development. Mid December 2023 to Late December 2023.

Task 3: Outreach Development. Early December 2023 to early January 2024.

Task 4: Pilot Implementation. Early/Mid-January 2024 to Early March 2024.

Task 5: Analysis and Reporting. Early March 2024 to Late March 2024.

Task 6: Administration. December 2023 to March 2024.

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

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

APPROVE FIRST AMENDMENT TO THE TUCKER CONSTRUCTION

ON-CALL FENCING CONTRACT, AND AUTHORIZE CITY MANAGER

TO EXTEND CONTRACT UP TO TWO YEARS

RECOMMENDATION(S)

1. Approve the first amendment to the on-call contract for public works projects with Tucker Construction, Inc. for an additional year of services for $150,000, for a total contract amount of $250,000; and

2. Authorize the City Manager to execute and administer two additional one-year extensions of the on-call contract in annual amounts that would not increase the price of the contract for the immediately preceding year by more than five (5%) annually.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this report is to provide the City Council with an opportunity to consider a First Amendment to the City's on-call contract for public works projects with Tucker Construction, Inc. for fencing construction, maintenance, and repair services at City facilities and City projects. The City has contracted for these services for many years.

The process of obtaining quotes to select fencing contractors for individual projects, and processing the contract documentation can take several weeks, and many hours of staff time. To streamline the process, the City issued a Request for Proposals (RFP) in October 2021 to contract with a pre-qualified on-call fencing contractor who could respond to work proposal requests, and complete fencing construction and repair work for the City. One proposal was received from Tucker Construction, Inc.

The City has contracted with Tucker Construction, Inc. since December 22, 2021 to

12 provide on-call fencing construction, maintenance, and repair services to various City Public Services Department divisions, including the Maintenance, Utilities, and Engineering divisions. The original on-call contract was approved by the City Council on December 15, 2021 in the amount of $100,000 for two years with three additional oneyear extensions. Since Tucker Construction, Inc. has been under contract with the City, the amount of time needed to begin fencing projects, especially repairs, has been greatly reduced. The current contract expires on December 31, 2023.

This proposed First Amendment includes an increase of $150,000 for an additional year of service that would extend the term to December 31, 2024, and increase the total amount of the contract from $100,000 to $250,000. The substantial increase in the amount of the contract is being proposed to accommodate the anticipated demand for on-call fencing services by the three Public Services Department divisions in the coming year. The recommended action would also authorize the City Manager to execute and administer the two (2) additional one-year extensions of the contract in annual amounts that would not increase the price of the contract for the immediately preceding year by more than five (5%) annually. The maximum not-to-exceed amount with two additional one-year extensions would be $572,875.

COMMUNITY ENGAGEMENT:

Not Applicable
As fencing construction, maintenance, and repair services are a regular and expected City maintenance service, no specific engagement activities were conducted to inform the community about this proposed contract amendment.

ALTERNATIVE ACTIONS:

The City could decline to approve the First Amendment, and instead direct staff to proceed with a request for proposals for on-call fencing construction, maintenance, and repair services. Since Tucker Construction Inc.'s on-call contract expires on December 31, 2023, the City Council could authorize an extension of the contract allowing staff time to conduct an RFP process. This alternative is not recommended as City staff is highly satisfied with the quality and performance of Tucker Construction Inc.'s fencing services and conducting an RFP is not anticipated to result in a better value to the City.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council previously approved the Tucker Construction, Inc. on-call fencing contract at its December 15, 2021 meeting.

FISCAL AND RESOURCE IMPACT:

The on-call fencing contractor service costs will be paid by the specific operating budgets or Capital Improvement Projects (CIP).

CEQA (California Environmental Quality Act):

12 Categorical Exemption
The activities described in this staff report are categorically 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 facilities involving negligible or no expansion of use of those facilities.

ATTACHMENT B

SCHEDULE OF COMPENSATION RATES

TUCKER CONSTRUCTION ON-CALL FENCING CONTRACT
For January 1, 2024 to December 31, 2024
Item Hourly Rate
Journeyperson – Laborer Rate
Monday to Friday (8 am to 5 pm) $100.94
Journeyperson – Laborer Rate
Monday to Friday (5 pm to 8 am) and Saturday
Over�me $139.05
Journeyperson – Laborer Rate
Sundays and Holiday Over�me $175.10
Foreman Journeyperson – Laborer Rate
Monday to Friday (8 am to 5 pm) $118.45
Foreman Journeyperson – Laborer Rate
Monday to Friday (5 pm to 8 am) and Saturday
Over�me $164.80
Foreman Journeyperson – Laborer Rate
Sundays and Holiday Over�me $200.85
Item %
Bidders’ Overhead and Profit Mark-Up % 15%

DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458 0 IV 0q, - ), - 04,
6111

CITY OF MORGAN HILL

ON- CALL CONTRACT FOR PUBLIC WORKS PROJECTS
TUCKER CONSTRUCTION, INC.

This on- call public works contract ("Contract") is entered into by and between the City of Morgan Hill, a municipal corporation (" City") and Tucker Construction, Inc. a California corporation (" Contractor") effective as of
12/ 22/ 2021 , 2021.

The parties agree as follows:

1. Scope of Services. The Scope of Services attached as Exhibit A to this Contract provides for the general scope of and type of work to be performed by Contractor. When City identifies a project, City shall request a proposal from Contractor ( Proposal Request Worksheet) based on the Scope of Services. Contractor shall provide a proposal within the number of days specified by City in its request. City and Contractor may negotiate the cost and scope. Upon receipt of a written notice to proceed, Contractor shall provide such services and related work at the time, place, and in the manner specified in Contractor' s proposal, subject to the direction of the City through its staff that it may provide from time to time. A Change Order shall be prepared as provided in the General Conditions for changes in scope, price, or time. Contractor acknowledges that the Scope of Services provides for 24 hour -a -day, 7 day -a -week, on- call support on an as needed basis.

2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the following, and the definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, unless otherwise indicated:

2. 1 Contract;

2. 2 Payment and Performance Bonds ( if Work Order exceeds $ 25,000);

2. 3 Special Conditions;

2. 4 General Conditions;

2. 5 Change Orders, if any;

2. 6 Notice to Proceed ( via email);

2. 7 The following developed for each project: Proposal Request Worksheet Contractor' s Proposal"), On -Call Construction Work Order ("Work Order")

3. Time for Performance.
a. Time of Essence. Time is of the essence in the performance of this Contract. The time for completion of the services and related work to be performed by Contractor is an essential condition of this Contract. Contractor shall prosecute regularly and diligently the services and related work contemplated pursuant to this Contract consistent with Contractor' s Proposal and shall provide, furnish and pay all labor, materials, necessary tools, expendable equipment, and all taxes, bonds, utility and transportation services required to perform such the services and related work. b. Performance Schedule. Contractor shall commence the services and related work pursuant to this Contract upon receipt of a written notice to proceed and shall perform all services and related work within the time period( s) established in the On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 1
Version: January 2020
EXHIBIT 1

DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458 Work Order/ Contractor' s Proposal. When requested by Contractor, extensions to the time period( s) specified may be approved in writing by the City Manager through a Change Order.

C. Term and Compliance with Work Order. Unless earlier terminated as provided elsewhere in this Contract, this Contract shall continue in full force and effect for a period of two (2) years, commencing on the Effective Date. The City may, at its sole discretion, extend the term of this Contract on a 12 -month basis not to exceed three ( 3) additional twelve ( 12) month renewal terms by giving written notice thereof to Contractor not less than thirty ( 30) days before the end of the contract term, such notice to be exercised by the City Manager. Contractor hereby agrees and acknowledges that any and all work or services performed pursuant to this Contract shall be based upon the issuance of a Work Order by the City. Contractor acknowledges that it is not guaranteed any minimum or specific amount of work or services as all work or services shall be authorized through a task/ work order and minor construction agreement issued by the City.

4. Compensation and Payment.
a. Compensation to be paid to Contractor shall be in accordance with the fees and rates set forth in Exhibit A, which is attached hereto and incorporated herein by reference, and each Work Order issued by the City. In no event shall Contractor' s compensation exceed one -hundred thousand dollars ($ 100, 000. 00) without additional written authorization from the City. Payment by City under this Contract shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.
b. Contractor shall promptly submit billings to the City describing the services and related work performed during the preceding month to the extent that such services and related work were performed. Contractor' s bills shall be segregated by Work Order, if applicable, such that the City receives a separate accounting for work done on each individual task for which Contractor provides services.

Contractor' s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures.

5. Termination. City or Contractor shall have the right to terminate this Contract, without cause, by giving thirty ( 30) days' written notice, or less under urgent circumstances. Upon such termination, Contractor shall submit to City an itemized statement of services performed for which compensation has not been paid. City may require Contractor to complete certain work. Upon receipt of such notice, the Contractor shall immediately cease all work under this Contract, unless the notice provides otherwise. If the City suspends or terminates a portion of this Contract such suspension or termination shall not make void or invalidate the remainder of this Contract. The City Manager is authorized to terminate this Contract on behalf of City.

6. Ability of Contractor. City has relied upon the training and ability of Contractor to perform the services hereunder as a material inducement to enter into this Contract.

Contractor shall therefore provide properly skilled personnel to perform all services under this Contract. All work performed by Contractor, its employees, or its Subcontractors, under this Contract shall be in accordance with applicable legal On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 2
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DocuSign Envelope ID: 649850DD- FF60- 4OA3- 993B- 8DF56AOB7458 requirements and shall meet the standard of quality ordinarily to be expected of competent contractors in Contractor' s field of expertise.

7. Licenses. Contractor represents and warrants to City that it has the licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Contractor to practice its profession. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract, any licenses, permits, insurance and approvals which are legally required of Contractor to practice its profession. Contractor shall maintain a City of Morgan Hill business license.

8. Contractor' s Obligations. Contractor must provide an executed copy of the Contract within ten ( 10) days of receipt of the Notice of Award email. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents.

8. 1 Bonds. For any Work Order more than Twenty -Five Thousand Dollars 25, 000. 00), within ten ( 10) days following receipt of the Notice of Award email from City, and before beginning any Work on the Project, Contractor must submit a payment bond and a performance bond, each for one hundred percent ( 100%) of the Work Order price, using the bond forms provided and in accordance with the requirements of the Contract Documents. Contractor may not proceed with the Work until City has approved the bonds.

8. 2 Insurance. Contractor must provide the required insurance certificates and endorsements within ten ( 10) days following receipt of the Notice of Award email from City, and before beginning any Work.

8. 3 If the performance of Contractor' s work or service under this Contract for a specific Work Order involves hazardous materials, contaminated soil disposal, and/ or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, Contractor shall procure and maintain Pollution Liability covering the contractor' 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 Contract as described in the General Conditions.

9. Liquidated Damages. If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of five hundred dollars 500. 00) for each day of unexcused delay in completion, and the Contract Price will be reduced accordingly.

10. Labor Code Compliance.

On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 3
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DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458

10. 1 General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours, and workers' compensation insurance, as further specified in Article 9 of the General Conditions.

10. 2 Prevailing Wages. Any Work order over $ 1, 000 is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification, or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship, and similar purposes. Copies of these prevailing rates are available online at http:// www.dir.ca. gc)v/ DLSR.

10. 3 DIR Registration. City will not enter into the Contract with a Contractor, without proof that Contractor and its Subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work pursuant to Labor Code Section 1725. 5, subject to limited legal exceptions.

10. 4 Wage Theft Prevention. All Contractors are expected to have read and understand the " Wage Theft Prevention Policy" adopted by the City Council on July 26, 2017 as further described section 9. 6 in the General Conditions.

11. Workers' Compensation Certification. Under Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: " I am aware of the provisions of Labor Code Section 3700 which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract."

12. Notice. Any notice required by the Contract Documents must be made in writing, and sent to the other party by personal delivery, U. S. Mail, a reliable overnight delivery service, facsimile, or by email as a PDF ( or comparable) file. Notice is deemed effective upon delivery unless otherwise specified. Notice for each party must be given as follows:

13. General Provisions.

On - Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 4
Version: January 2020
City Contractor
Name/ Title Keri Russell, Maintenance
Coordinator
Mark Tucker, President
Tucker Construction, Inc.

Address 17575 Peak Avenue 1725- D Little Orchard St.

City/ state zipCity/ state/ zip Morgan Hill, California 95037 San Jose, CA 95125 Phone 408 310- 4057 408 287- 1424
Fax
Email Michelle. bigelow@morganhill. ca. gov tucker@tuckercon. com Copy to: Keri. russeli@morganhill. ca. gov

13. General Provisions.

On - Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 4
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DocuSign Envelope ID: 649850DD- FF60- 4OA3- 993B- 8DF56AOB7458

13. 1 Assignment and Successors. Contractor may not assign its rights or obligations under this Contract, in part or in whole, without City' s written consent. This Contract is binding on Contractor's successors and permitted assigns.

13. 2 Third Party Beneficiaries. There are no intended third -party beneficiaries to this Contract except as expressly provided in the General Conditions or Special Conditions.

13. 3 Governing Law and Venue. This Contract will be governed by California law and venue will be in the Superior Court for Santa Clara County, and no other place.

13.4 Amendment. No amendment or modification of this Contract will be binding unless it is in a writing duly authorized and signed by the parties to this Contract.

13. 5 Integration; Severability. This Contract and the Contract Documents incorporated herein, including authorized amendments or 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.

On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 5
Version: January 2020

DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458

13. 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.

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:

DocuSigned by:
hlydi" . 1-M"
C brist0aAf.61wisner
City Manager
Date: 12/ 22/ 2021
Attest:
r— DocuSigned by:

Deputy City Clerk
Date: 12/ 22/ 2021
Approved as to Form:

DocuSigned by:
r HA44.
6AFAW40in
City Attorney
Date: 12/ 17/ 2021
CONTRACTOR:

TUCKER CONSTRUCTION, INC.

Signature
Mark Tucke-r/Pregident
Name/Title [print]
Date:

Corporate entities must provide C,
Zdjgnature,,
Signature
Mark Tucker/ Secretary
Name/ Title [ print]
Date:
454738
Contractor's License Number(s)
03/ 31/ 2022
Expiration Date( s)
Seal:
1600006784
Contractor' s DIR Registration Number( s)
if applicable)
06/30/ 2022
Expiration Date
On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 6
Version: January 2020

DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458

CITY OF MORGAN HILL

ON- CALL CONTRACT

FOR PUBLIC WORKS PROJECTS

ATTACHMENT A
The following documents are attached and made part of the Contract Documents:

Project Drawings and Specifications
X Project Scope of Work
The scope of work includes construction, repair and maintenance fencing services for City buildings and facilities on an on- call basis.

On -Call fencing projects will be initiated by issuing a Request Proposal Worksheet describing the scope of work to the on- call fencing contractor. If accepted, a Work Order will be issued to initiate work on a specific project.

It is anticipated that the on- call fencing contractor' s scope of work and if appropriate, their subcontractor' s scope of work may entail any of the following scopes of work:

General:

The contractor will provide all labor, equipment, and materials to install fences as requested by the City of Morgan Hill in locations including, but not limited to:

1. City Owned Building Facilities and Grounds

2. City Leased Properties

3. City Parks

4. City Owned Parcels and Open Spaces

5. City Rights of Ways

6. City Owned or Leased Water Facilities including, but not limited to:
a. Well Sites
b. Tank Sites
c. Outfall Locations
d. Retention Ponds
II. Specifications:

A. Fence Types:
a. The City may require fences and/ or gates built in City owned or leased properties of various sizes and materials, including, but not limited to:

On -Call Fencing Contractor ON- CALL CONTRACT
CSD2022- 012 Page 7
Version: January 2020

DocuSign Envelope ID: 64985ODD- FF60- 4OA3- 993B- 8DF56AOB7458 i. Wood Privacy Fence

1. With and without lattice top panels
ii. Wooden Gates
iii. Split Rail Fence
iv. Chain Link Fencing and gates, including, but not limited to:

1. Variety of Mesh Sizes

2. Galvanized or other coatings

3. Top Wire

4. Top Pole

5. Cyclone Fence

6. Privacy

7. Barbed Wire Top

8. Razor Wire Top
v. Wrought Iron/ Ornamental Fencing
vi. Barbed Wire Fencing
vii. Metal Swing Gates
viii. Metal Sliding Gates
B. Material Requirements
a. Fence materials will include:
i. Pressure treated lumber or approved wood preservative treatment for any lumber buried or in contact with soil ii. Galvanized or other approved treatment of posts buried or in contact with soil
C. Contract Pricing
a. Fencing cost will be calculated in cost per linear foot, inclusive of all materials
b. Gate cost will be calculated per gate size
c. Costs for alternative or requested finishes ( vinyl covering, slats) d. Extra components such as automatic openers, keypads, etc... will be listed on quotes as unit costs
e. Service costs for repairs on existing fences shall be per hour i. Regular State Prevailing Wage Rate
ii. Overtime State Prevailing Wage Rate
iii. Weekend State Prevailing Wage Rate
f. Materials and parts costs for repairs on existing fences shall be per each, per unit, or per foot with the agreed upon 15% mark- up.

On -Call Fencing Contractor ON-CALL CONTRACT
CSD2022- 012 Page 8
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13 CITY COUNCIL STAFF REPORT
MEETING DATE: December 6, 2023
PREPARED BY:

Donald Larkin, City Attorney
APPROVED BY: City Manager

APPROVE JOINT POWERS AGREEMENT FOR ENACTMENT OF THE

CITIES ASSOCIATION OF SANTA CLARA COUNTY, JOINT POWERS

AUTHORITY (CASCC JPA)

RECOMMENDATION(S)

1. Approve the proposed Joint Powers Agreement;

2. Authorize Mayor Turner or his alternate, Councilmember Librers, to report approval of the Agreement to the CASCC Board of Directors; and

3. Authorize the City Manager to execute the Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Advancing Regional Initiatives
REPORT NARRATIVE:

Background:

Over thirty years ago, the cities and towns in Santa Clara County (“Member Agencies”) established the CASCC to improve cooperation on issues of common interest. The CASCC was intended to consolidate and maintain the functions and purposes of the Inter-City Council, the Santa Clara County Mayor’s Conference, and the City Selection Committee for Santa Clara County. In 1990, the cities and towns entered into an agreement to provide some structure and outline the purpose and function of the CASCC. In 2010, the CASCC adopted its bylaws. Currently, the CASCC is an unincorporated association.

As early as 2017, the CASCC began reviewing and considering the appropriate organizational structure for the CASCC. In August 2020, its Board of Directors unanimously voted to take the steps necessary to form a joint powers authority because it would provide a more formal and recognized structure for CASCC and clarity regarding tax status, governmental immunities, and potential liability of the Members. To form a joint powers authority, a JPA must be approved by the CASCC Board of Directors and then executed by each Member Agency that wishes to join the joint powers authority, which would be called the Cities Association of Santa Clara County

13 Joint Powers Agency (“Agency”).

The CASCC conducted outreach and solicited input on the proposed draft JPA over the past two years. The CASCC circulated a draft JPA to all City and Town Attorneys in the County for their review and input and incorporated significant changes into the agreement. The Acting Executive Director and the General Counsel at the time attended two virtual meetings with most of the Town or City Attorneys and/or Assistant City Attorneys on September 14 and September 28, 2022. The entire JPA was reviewed each time. A separate and additional meeting was held by the Santa Clara City Attorneys Roundtable on September 16, 2022, where the JPA was again reviewed.

CASCC representatives presented a draft JPA at the Santa Clara County City Managers Association (“SCCCMA”) meeting on October 12, 2022. Based on feedback from the SCCCMA, additional changes were made to the Agreement. On August 9, 2023, CASCC representatives again met with the SCCCMA to review the proposed JPA, and receive additional input.

On September 14, 2023, the CASCC Board received an updated draft JPA that included edits that responded to comments of the City/Town Attorneys and City Managers. At the meeting, the CASCC Board heard the concerns raised by Board members and City Managers who attended the meeting, and it was confirmed that those concerns would be addressed in the JPA. The CASCC Board directed some additional changes be made to the draft JPA to clarify that the Agency would not hire employees, and to provide some language permitting but not requiring the CASCC Board to appoint a working committee to review new initiatives and provide input. With these changes, the CASCC Board unanimously approved transmittal of the draft JPA to the City Councils for each of the proposed Member Agencies for their consideration.

Overview of the proposed Agreement:

The Agreement restates the same purposes expressed for the creation of the CASCC.

Consistent with the Joint Exercise of Powers Act (Government Code section 6500 et seq.), the agreement defines the power and authority of the JPA. To address concerns raised by Member Agencies, the JPA would be specifically prohibited from acquiring real property, levying taxes, hiring employees or exercising any eminent domain power.

The proposed Agreement has also been modified to further restrict the authority of the JPA. (See Sections 6 and 7). The CASCC Executive Board would be replaced by an Executive Committee. The Executive Committee may only take on those powers approved by the Agency’s Board of Directors. For example, the Executive Committee is not permitted to authorize any investigations into the business of the JPA without the Board's approval.

Like the former CASCC, the JPA would also be charged with administering the City Selection Committee (“CSC”), which involves establishment of the application process, scheduling and holding meetings for appointments to be made, keeping track of committee and board appointments, terms, and resignations, coordinating with the County Clerk and disseminating meeting minutes, and troubleshooting where

13 necessary. The CSC is a state-mandated entity charged with making appointments to various regional and local boards and committees. Each city and town in Santa Clara County will continue to participate in the CSC even if the city or town is not a member of CASCC JPA. Appointments to the local boards and committees will be based on majority votes of the city/town CSC representatives.

Of note, the CASCC provides benefits to its members beyond administering the CSC.

The CASCC allows all 15 cities and towns in Santa Clara County to work together on regional issues, advocate at the county, regional and state levels, and provide a significant voice in policymaking in Sacramento. The solid work of the CASCC has resulted in some notable achievements and benefits to our cities and towns. The singleuse plastic bag ban ordinances passed by all 15 cities and towns originated with the CASCC, as did the Healthy Cities Dashboard in conjunction with Santa Clara County Department of Public Health. Other examples include delivery of county-wide symposia on timely and important topics such as housing and sustainability, providing technical assistance to city staff for Housing Element Updates through the Planning Collaborative, and providing feedback and endorsements for legislative bills under consideration. The CASCC is also a great way for representatives from the different cities to share ideas, create professional connections and collaborate on similar issues affecting all the cities and towns.

Advantages of forming the JPA:

1. As a governmental agency, the JPA would have access to insurance and risk pools that are not available to an unincorporated association.

2. The JPA may be a more attractive recipient of sponsorships and donations, potentially easing pressure on the budget and therefore on the Members (see Fiscal Impact section below).

3. The Agreement clarifies liability issues and is drafted so that the entity indemnifies the members of the JPA.

4. The formation of the JPA would clarify the tax status of the organization.

COMMUNITY ENGAGEMENT:

None
ALTERNATIVE ACTIONS:

The City could chose not to join the JPA. The City would still have a vote while the JPA acts as the City's Selection Committee, but we would not participate in any of the regional or collaborative efforts.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Morgan Hill has participated in the Cities Association since its inception, and was a

13 party to the agreement that formalized the association in 1990.

FISCAL AND RESOURCE IMPACT:

Dues for the current fiscal year are already included in the City's budget. For the current fiscal year, the City's dues are $11,693.

1. The budget for FY25 has not yet been developed and therefore has not been presented to the CASCC Board for consideration. Under the current CASCC bylaws, the Executive Director will develop the FY25 budget for adoption by the Board at its April 11, 2024, board meeting. This budget will be developed with the same parameters as the FY24 budget, which are:
a. The CASCC budget is an operational budget-there are no separate line items for programs other than the Annual Membership Meeting and the Annual Holiday Party. The major expense in the budget is the payment of independent contractors, currently the Executive Director and the General Counsel (on an as-needed basis).
b. The Executive Director will present a responsible budget in line with the current CASCC finances that would not exceed its resources.

2. There is no indication that the CASCC budget will increase solely because CASCC becomes a JPA.
a. Approval of any new programs or projects with budget impacts of $10,000 or greater requires approval of 2/3 of the Board of Directors and the financial resources to fund such a program or project. If there is not enough budget for said programs/projects, the Executive Director will advise the Board of such and will give the Board all relevant information to make an informed decision.

Ultimately, the Board decides how to proceed financially. (See item 1.b above.)
b. It is anticipated that CASCC legal costs would be reduced after the adoption of a JPA. Formation of the JPA was calculated as part of the FY24 budget and once the JPA formation is complete, the need for legal services would decrease.
c. As a JPA, the CASCC will be eligible to receive sponsorships and donations to underwrite costs of programs and events. Every effort will be made to seek sponsorships and donations as this relieves the pressure on the budget.

Membership Dues
As has been the case over the past few years, the FY24 dues are based on the size of each Member Agency and the plan is to continue with this same approach. In addition, the Board has expressed a desire not to increase the membership dues in light of current economic conditions. Therefore, for the FY25 membership dues, the Executive

13 Director intends to propose a budget to the CASCC Board (or Agency Board of Directors) that preserves the same dues structure as FY24 whereby each Member Agency will be asked to pay the same amount in dues as in FY24.

In the event not all 15 cities join the Agency, the budget proposal would preserve the same dues, but the Agency Board would be required to make some budget adjustments. The Executive Director would advise the Board on how the CASCC or Agency budget may be revised, providing all relevant information and data. Also, after FY25, it is anticipated that an annual CPI adjustment would be recommended.

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.

1 JOINT POWERS AGENCY AGREEMENT FOR CITIES ASSOCIATION OF SANTA CLARA COUNTY This Joint Powers Agreement (“Agreement” or “JPA”) for the Cities Association of Santa Clara County is entered into by and among the cities (“Members”), which are organized and existing under the Constitution and laws of the State of California in which public agencies are located in the County of Santa Clara, and upon approval and full execution of the Agreement, creates the Cities Association of Santa Clara County Joint Powers Agency (“Agency”).

RECITALS
WHEREAS, Articles 1 and 2, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permit two or more public agencies by agreement to jointly exercise powers common to the Members; and
WHEREAS, the public agency Members executing this JPA are cities or towns within the jurisdiction of the County of Santa Clara (“County”); and WHEREAS, the Cities Association of Santa Clara County has existed as an unincorporated association since 1990 and desires to formalize the relationship between its City and Town members and form a Joint Powers Agency in order to carry out activities for the good of all its Members; and WHEREAS, the Members executing this Agreement, desire to join together to create a separate Joint Powers Agency for the purpose of promoting cooperation among the Members; advocating for positive action; enhancing the quality of life for the residents of the County and their individual cities; and encouraging other joint and cooperative endeavors among the public agencies for their mutual benefit.

NOW, THEREFORE, the Parties agree to the following:

AGREEMENT
ARTICLE 1 - DEFINITIONS

1.1 “Associate Member” shall mean any non-city local agency, located within jurisdictional authority of the County of Santa Clara, and shall have duly executed and delivered to the Agency an Associate Membership Agreement in the form of and as further provided in the Bylaws of the Agency, as further provided in Article 32 herein.

1.2 “Agency” shall mean the Cities Association of Santa Clara County Joint Powers Agency created by this Agreement.

1.3 “Board of Directors” or “Board” shall mean the governing body of the Agency.

1.4 “Executive Committee” shall mean the Executive Committee of the Board of Directors of the Agency.

2 1.5 “Fiscal Year” shall mean that period of twelve (12) months which is established by the Board of Directors or the Bylaws as the fiscal year of the Agency, which shall run from July 1 to June 30 of each year.

1.6 “Government Code” shall mean the California Government Code, as amended.

1.7 “Joint Powers Law” shall mean Articles 1 and 2, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code, known as the Joint Exercise of Powers Act, as amended.

1.8 “Legislative Body” shall mean the legislative board of each Public Agency that is a Member of the Agency.

1.9 “Member” shall mean any city which has executed this Agreement and has become a member of the Agency. The complete list of Members is set forth in Exhibit “A” attached hereto and incorporated herein by this reference.

1.10 “Parties” shall mean Members or Associate Members who are party to this Agreement.

1.11 “Public Agency” shall mean public agency as defined in Government Code Section 6500, as amended.

1.12 Unless the context clearly requires otherwise, as used in this Agreement, words of the masculine, feminine or neutral gender shall be construed to include each other gender, when appropriate, and words of the singular number shall be construed to include the plural number, and vice versa, when appropriate. This Agreement and all the terms and provisions herein shall be construed to effectuate the purposes set forth and to sustain the validity of those purposes.

ARTICLE 2 - CREATION AND PURPOSES

2.1 This Agreement is entered into by the Members in order to:

2.1.1 Review, study, develop consensus positions, and take action on issues of interest to Members;

2.1.2 Focus on local and regional matters that are important to our future;

2.1.3 Develop a common agenda for Santa Clara County cities;

2.1.4 Serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government;

2.1.5 Establish and administer the City Selection Committee pursuant to Government Code Section 50270 et seq., as amended and make appointments to regional and local bodies as provided by law;

2.1.6 Serve as a source of education, information, and networking for officials from all cities in Santa Clara County;

3 2.1.7 Provide a forum for non-city individuals, groups and organizations and the private sector to address items of interest to Santa Clara County cities;

2.1.8 Reduce duplication of effort by sharing information and provide a unified voice and strong advocacy on legislation and other important issues that affect its Members;

2.1.9 Strengthen the Members’ and Agency’s standing at the regional, State and Federal level;

2.1.10 Strive to respect local control, provide regional perspective, and make a difference to elevate the quality of life throughout the County;

2.1.11 Provide a forum for discussion and study of problems common to the Members and to assist in the development and implementation of solutions to such problems;

2.1.12 Provide a method for the Members to collaborate and jointly develop policies that benefit the region; and

2.1.13 Collaborate in such a way that is efficient, saves the jurisdictions the expense of individual effort, and creates positive outcomes.

ARTICLE 3 - PARTIES TO AGREEMENT
Each Member, as a Party to this Agreement, intends to and does contract with all other Members as Parties to this Agreement and, with other Public Agencies as may later be added as Parties to this Agreement pursuant to the Joint Powers Law. The withdrawal of any party from this Agreement, pursuant to Article 20, shall not affect this Agreement or the remaining Members’ obligations.

ARTICLE 4 – FORMATION; TERM
This Agreement shall become effective when fully executed and returned to the Agency by at least eight (8) Members, but only as to those Members that have executed the Agreement. The Agency shall promptly notify all Members in writing of the effective date. After one full year after the initial formation of the Agency, should the membership fall below seven (7) Members due to the withdrawal of Members and the membership level remains at below seven (7) Members for a period of at least one (1) year and a similar joint powers authority, with the same or similar powers and functions is formed containing a majority of cities in the County of Santa Clara, the Agency shall change its name and permit the new organization to take on the name of the Agency. Notwithstanding the name change, this Agreement shall continue in effect until terminated as provided herein. The termination of this Agreement with respect to an individual Member upon its withdrawal from membership in the Agency shall not operate to terminate this Agreement with respect to the remaining Members.

ARTICLE 5 - CREATION OF THE AGENCY
Pursuant to the Joint Powers Law, there is hereby created a public entity, separate and apart from the Parties hereto, to be known as the “Cities Association of Santa Clara County Joint Powers

4 Agency” with powers as are set forth herein. Upon formation of the Agency as described in Article 4, the Cities Association of Santa Clara County, an unincorporated association shall follow the process of dissolution and cease to exist.

ARTICLE 6 - POWERS OF THE AGENCY

6.1 Subject to the terms of this agreement, the Agency shall have all of the powers of a public agency as defined in the Government Code Section 6500 as amended and all additional powers set forth in the Joint Powers Law and other statutes applicable to the Joint Powers Agency created hereby and is authorized to do all acts necessary for the exercise of these powers on behalf of its Members. Powers include, but are not limited to, the following, in the Agency’s own name:

6.1.1 To make and enter into contracts;

6.1.2 To incur debts, liabilities, and obligations and to encumber personal property;

6.1.3 To acquire, hold, or dispose of personal property, contributions, and donations of personal property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities;

6.1.4 To sue and be sued in its own name, and to settle any claim against it;

6.1.5 To receive and use contributions and advances from Members as provided in Government Code Section 6504, as amended including contributions or advances of personnel and equipment;

6.1.6 To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5, as amended;

6.1.7 To acquire, construct, manage, maintain, or operate title to personal property, or rights, or any interest therein;

6.1.8 To retain the services of agents, contractors, and consultants;

6.1.9 To receive, collect, and disburse monies;

6.1.10 To conduct studies, tests, evaluations, and similar activities;

6.1.11 To contract for services from Members, including in-kind services;

6.1.12 To conduct public outreach and education;

6.1.13 To participate in pilot and demonstration projects;

6.1.14 To charge for services, programs, and/or systems;

6.1.15 To work with elected officials and local, regional, state, and federal agencies, including other joint powers agencies and unincorporated associations to pursue funding, enter agreements and otherwise carry out the purposes of the Agency; and

5 6.1.16 Subject to this Agreement or the Bylaws of the Agency, and only as authorized by the Joint Powers Law, to exercise other reasonable and necessary powers in furtherance or support of any purpose of the Agency.

ARTICLE 7 - RESTRICTIONS ON POWERS

7.1 Pursuant to and to the extent required by Government Code Section 6509, as amended, the Agency shall be restricted in the exercise of its powers and shall exercise its powers in the same manner as the Town of Los Gatos is restricted in its exercise of similar powers; provided that, if the Town of Los Gatos shall cease to be a Member, then the Agency shall be restricted in the exercise of its power in the same manner as another Member agreed to by the majority of the Board of Directors. Unless expressly provided for, the Agency does not, by virtue of this Section or this Agreement, subject itself to the internal policies or ordinances of any Member.

7.2 The Agency shall not have the power of eminent domain.

7.3 The Agency shall not have the power of taxation. The Agency may not impose taxes but may receive the proceeds of taxes imposed by other entities or public funds from other entities.

7.4 The Agency shall not have the power to acquire, purchase, hold or dispose of real property.

7.5 The Agency shall not have the power to hire employees.

7.6 The Agency shall not have the power to issue debt.

ARTICLE 8 - BOARD OF DIRECTORS

8.1 The Agency shall be governed by the Board of Directors, which shall be composed of one Director representing each Member. Each Member’s Legislative Body, according to its own procedures, shall appoint a Member of the Legislative Body as a Director to represent the Member on the Board of Directors. The Director shall serve at the pleasure of their respective Legislative Body. The Legislative Body of each Member shall also appoint one alternate Director (“Alternate”) who shall participate in and vote at any meeting of the Board when the primary Director is absent. Any vacancy in a Director or Alternate position shall be filled by the appointing Member’s Legislative Body, subject to the provisions of this Article. Immediately upon admission of a new Member, the new Member shall be entitled and required to appoint a Director and one alternate Director. Every Director or Alternate shall be a Council Member or Mayor of their individual Member city.

8.2 A Director and/or Alternate shall be removed from the Board of Directors upon the occurrence of any one of the following events: (1) the Agency receives written notice from the appointing Member of the removal and/or replacement of the Director or Alternate; (2) the withdrawal of the Member from this Agreement; (3) the death or resignation of the Director or Alternate; (4) the Agency receives written notice from the Member that the Director or Alternate is no longer qualified as provided in the first paragraph of this Article 8; or as set forth in Article 21.

6 8.3 The Board of Directors shall have the following powers and functions:

8.3.1 Except as otherwise provided in this Agreement, the Board shall exercise all powers and conduct all business of the Agency, either directly or by delegation to other bodies or persons;

8.3.2 The Board shall elect an Executive Committee, as provided in Article 11;

8.3.3 The Board shall be the policy setting body of the Agency;

8.3.4 The Board shall appoint or retain the services of necessary agents, consultants, or independent contractors in accordance with Article 14;

8.3.5 The Board shall cause to be prepared, and shall review, modify as necessary, and adopt the annual operating budget of the Agency. Adoption of the budget may not be delegated. The Board shall adopt their budget no later than the first April 30th following formation and then subsequently by April 30th of each successive year. The Board shall review, set, and adopt annual dues to be funded by Agency Members;

8.3.6 The Board shall receive, review and act upon periodic reports and audits of the funds of the Agency, as required under Article 16 of this Agreement;

8.3.7 The Board may adopt policies regarding personnel, conflicts of interest and other matters necessary or convenient for the efficient operation of the Agency;

8.3.8 The Board shall adopt a set of priorities and work plan for each fiscal year; and

8.3.9 Subject to the terms of this Agreement, the Board shall have such other powers and duties as are reasonably necessary to carry out the purposes of the Agency.

ARTICLE 9 – MEETINGS OF THE BOARD OF DIRECTORS

9.1 The Board of Directors shall hold at least one regular meeting each year. The Board of Directors shall fix by resolution, or in the Bylaws, the date, time, and location of each regular meeting.

The Board or Executive Director, in consultation with the President of the Board as provided in Article 10 below, may call special meetings.

9.2 Each meeting of the Board of Directors, including without limitation, regular, adjourned regular and special meetings shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended.

9.3 The Agency shall require the Secretary/Treasurer or designee to take and maintain minutes of all regular, adjourned regular and special meetings. As soon as practicable after each meeting, the Secretary/Treasurer or designee shall forward to each Board Member, a copy of the minutes of the meeting.

9.4 A majority of the Members of the Board shall constitute a quorum for the transaction of business. Unless otherwise required by law, a vote of the majority of a quorum of the members