Regular Meeting Agenda
City Council
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Gino Borgioli - Council Member
Rene Spring - Council Member
Yvonne Martínez Beltrán - Council Member
Wednesday, March 6, 2024 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
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:
• 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
March 6, 2024
2 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. Please be advised that communications directed to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under the applicable law. Communications will NOT be edited for redactions and will be printed/posted as submitted.
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.
CALL TO ORDER
ROLL CALL ATTENDANCE
DECLARATION OF POSTING AGENDA
SILENT INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS
YAC Presentation
League of California Cities, California Business Roundtable (CBRT) measure
March 6, 2024
3 RECOGNITIONS
Recognizing the 2023 STEM winner
PROCLAMATIONS
Proclaiming March 31, 2024 as Cesar Chavez Day
Proclaiming the month of March 2024 as Women's History Month Proclaiming the month of March 2024 as Youth Arts Month
CITY COUNCIL REPORTS
Council Member Martinez Beltran
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
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
March 6, 2024
4 Consent Calendar for comment and action.
1. APPROVE THE FEBRUARY 2, 2024 AND FEBRUARY 3, 2024 ANNUAL GOAL SETTING WORKSHOP MINUTES AND THE FEBRUARY 21, 2024
CITY COUNCIL MEETING MINUTES
Recommendation:
Approve minutes.
2. AUTHORIZE THE CITY MANAGER TO EXECUTE A CHANGE ORDER TO EDWARD R. BACON COMPANY IN THE AMOUNT OF $156,661 INCLUDING 10% CONTINGENCY FOR THE PURCHASE AND INSTALLATION OF
REPLACEMENT GENERATORS AT THE CITY FIRE STATIONS
Recommendation:
Authorize the City Manager to execute a change order to Edward R. Bacon, in the amount of $156,661, for the purchase and installation of two generators at the Morgan Hill Fire Stations.
3. RECEIVE MONTHLY BUDGET UPDATE AND JANUARY 2024 FINANCIAL
AND INVESTMENT REPORTS
Recommendation:
Accept and file report.
4. RESCIND AWARD OF COMMUNITY PARK DG PATHWAYS PROJECT AND
AWARD TO NEXT LOWEST BIDDER
Recommendation:
1. Rescind Award of Decomposed Granite (DG) Pathways Project to Angkor Engineering, Inc. in the amount of $51,825 and contingency funds not to exceed $25,913; and
2. Award DG Pathways Project to Always Paving, Inc. in the amount of $56,100 and contingency funds not to exceed $28,050; and
3. Authorize the City Manager to execute and administer that certain construction contract with Always Paving, Inc.
PUBLIC HEARINGS
5. INTRODUCE ORDINANCE (ZA2023-0001) AMENDING VARIOUS CODE PROVISIONS WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL CODE OF
THE CITY OF MORGAN HILL IMPLEMENTING THE CITY OF MORGAN HILL 2023-2031 HOUSING ELEMENT; UPDATES TO ELECTRIC VEHICLE
CHARGING PROVISIONS TO PROVIDE CONSISTENCY WITH CHAPTER
15.62 (ELECTRIC VEHICLE CHARGING INFRASTRUCTURE); UPDATES TO PARKING PROVISIONS TO COMPLY WITH ASSEMBLY BILL 894; AND
March 6, 2024
5 IMPLEMENTING MINOR AMENDMENTS DUE TO CLERICAL ERRORS AND
INCONSISTENCIES
Recommendation:
1. Open/close the public hearing;
2. Waive first and second reading of the Ordinance Amendment; and
3. Introduce Ordinance Amendment.
OTHER BUSINESS
6. ADOPT AN AMENDED RESOLUTION FOR AN EXCEPTION TO THE 180-
DAY WAITING PERIOD TO HIRE A RETIRED ANNUITANT, ANDREW
CRABTREE, TO SERVE AS A TEMPORARY EXTRA HELP EMPLOYEE
(GOVERNMENT CODE SECTIONS 7522.56 AND 21224) IN THE
DEVELOPMENT SERVICES DEPARTMENT
Recommendation:
Adopt an amended Resolution for an exception to the 180-day waiting period to appoint Andrew Crabtree, a retired annuitant, to serve as temporary extra help (Government Code Sections 7522.56 and 21224).
7. ADOPT RESOLUTION OF INTENTION AND INTRODUCTION OF
ORDINANCE TO AMEND THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM (CALPERS) AND THE CITY OF MORGAN HILL TO
IMPLEMENT MILITARY SERVICE CREDIT AS PUBLIC SERVICE IN
ACCORDANCE WITH SECTION 21024 OF THE CALIFORNIA GOVERNMENT CODE
Recommendation:
1. Adopt Resolution of Intention of the City Council of the City of Morgan Hill stating its intent to amend the contract between the California Public Employees' Retirement System (CalPERS) and the City of Morgan Hill in order to implement Military Service Credit as Public Service in accordance with California Government Code section 21024;
2. Waive the first and second reading of the ordinance; and
3. Introduce ordinance by title
8. 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:
March 6, 2024
6 1. Consider a resolution for sustainable peace to end the war and the loss of life in Israel and Palestine; and
2. Consider continuing the discussion on remote public comments.
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.
CLOSED SESSION
Conference with Legal Counsel – Existing Litigation (§ 54956.9) Serna v. City of Morgan Hill (Santa Clara County Case No. 23CV409430)
OPPORTUNITY FOR PUBLIC COMMENT
ADJOURNMENT
March 6, 2024
7 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].
March 6, 2024
8
Strengthening California Cities
through Advocacy and Education
Presentation to
City of Morgan Hill
March 6, 2024
Seth Miller
Regional Public Affairs Manager,
Peninsula Division
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Cal Cities Background
Since 1898, Cal Cities has fought to protect and enhance local control.
Over the past decade, Cal Cities has secured hundreds of significant victories for its members.
Cal Cities harnesses the voice and collective power of its 476 member cities, representing thousands of city officials and the millions of California residents they serve.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Cal Cities is Membership Driven
Cal Cities’ policy positions are entirely driven by members – city officials.
Cal Cities recognizes that listening and learning is essential to ensure representation of the diverse interests of our membership. Cal Cities remains steadfast to ensure state policy approaches to housing and other matters protect local control.
We work together.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org
1. Safeguard local revenues and bolster local economic
development.
2. Strengthen climate change resiliency and disaster
preparedness.
3. Improve public safety in California communities.
4. Expand investments to prevent and reduce homelessness and increase the supply of affordable housing.
Cal Cities Priorities 2024
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Cal Cities Legislative Activities
Cal Cities works to
protect cities’
interests in the
Legislature, ballot
box, and courts.
In 2024, there will
be 3300 bills
proposed by
legislators.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org “Taxpayer Protection Act”
ACA 13: vote threshold
ACA 1: 55% Local Infrastructure Measures
Expands Rental Control
Marriage Equality: Repeal of Prop 8
Low-Rent Housing: Repeal of Local Approval
Requirement
Pandemic Funding (Higher Income Tax)
Employment Lawsuits (PAGA) Reform
$18 Minimum Wage
Referendum on Oil Drilling Limitations
Fast Food Minimum Wage
November 2024 Election – 11 measures as of Feb 6. 2024
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Taxpayer Protection Act
Proponent: California Business Roundtable (CBRT)
Comprised of major corporations including
developers, oil, insurance, pharmaceutical
companies and more.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Fiscal Impact: Cal Cities Analysis
Over $20 billion of local
government revenues
over 10 years at risk.
$2 billion each year from
fees and charges
adopted after January 1,
2022, at risk.
Hundreds of millions of
dollars of annual
revenues from tax and
bond measures
approved by voters after
January 1, 2022,
cancelled.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Threats to Local Government
Taxes and fees adopted after January 1, 2022, that do not comply with the new rules are void.
More difficult for voters to approve funding for local services. All future taxes must contain a sunset.
−Measures passed after January 1, 2022 without sunset will be repealed and brought to voters in 2025.
−General tax measures will also require the phrase “for general government use” on the ballot.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Threats to Local Government
All fee increases need to be approved by two-thirds of local legislative body.
Fees and charges may not exceed the “actual cost” of
providing service.
“Actual cost” defined as the “minimum amount
necessary”
Fees and charges for corporations to use or lease
government property can no longer be market-based.
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Upends State Tax and Fee Authority
All state taxes require majority voter approval
Requires two-thirds legislative approval of new state fees
Changes legal standards for proving a state charge is a fee and not a tax
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Threatens Local Control
Rate schedule revisions and regular adjustments to city fees and charges subject to higher passage thresholds and potential voter approval.
Examples of Impacted Fees and Charges
o Property development application processing fees
o Plan review
o Gas and electricity service charges
o Parks and Recreation classes and lessons
o Child care services
o Jail booking fees
o Copies of police reports
o Emergency services fee
o Building permit fees
o Sales tax audits
o Abatement of weeds on private property
o Conducting inspections of rental housing
o Fire inspections
o Fines and penalties for administrative Code
enforcement
o Charges for specific health care services
o Lease of city museum to non-profit organization
o Use of Council Chambers by private groups
o Use/lease of city-owned convention center
o Use/lease of city-owned park or other recreation area o Charges imposed as a condition of property
development
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Immediate Impact to Morgan Hill
Fees adopted by the Council after January 1, 2022
may need to be revisited:
Planning and Engineering Fees – January 19, 2022
CCW License and Business Renewal Fees – April 5, 2023
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Groups Opposed to Measure
League of California Cities
Alliance for a Better California
California Alliance for Jobs
Rebuild SoCal Partnership
California State Association of
Counties
California Special Districts
Association
California Contract Cities
Association
And 250+ individual cities,
counties and districts
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Groups Supporting the Measure
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Action Items
City of Morgan Hill passed resolution
in opposition
Next up: Join the growing list of
elected officials in opposition
Educate constituents about measure
Advocate on personal, private, nongovernment time to associations and community groups
Strengthening California Cities through Advocacy and Education @calcities @calcities @calcities.org Upcoming Peninsula Division Events
City Leaders Summit in Sacramento. April 17 – 19, 2024 Division Event at Cisco in San Jose. May 22, 2024
CitiPAC Event at TopGolf in San Jose. June 6, 2024
Annual Conference in Long Beach, October 2024
Strengthening California Cities
through Advocacy and Education @calcities @calcities @calcities.org
THANK YOU
Seth Miller
Peninsula Division
[email protected] • (415) 595-8629
Annual Goal Setting Workshop
Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Gino Borgioli - Council Member
Rene Spring - Council Member
Yvonne Martinez Beltran - Council Member
Friday, February 2, 2024 9:00 AM
Saturday, February 3, 2024 9:00 AM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
CALL TO ORDER
Mayor Turner called the City Council Goal Setting Workshop to order at 9:02 a.m.
ROLL CALL ATTENDANCE
City Clerk Michelle Bigelow called the roll.
PRESENT Rene Spring, Gino Borgioli, Yvonne Martinez Beltran, Mark Turner ABSENT Marilyn Librers
DECLARATION OF POSTING AGENDA
City Clerk Michelle Bigelow declared the posting of the agenda.
SILENT INVOCATION
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT
Public comment opened at 9:03 a.m. There being no requests to speak, public comment closed.
February 2, 2024
2 GOAL SETTING WORKSHOP - FRIDAY, FEBRUARY 2, 2024 9:00 A.M.
CITY COUNCIL GOAL SETTING WORKSHOP
1. Review and discuss:
a. 2023 Accomplishments
b. Sustainable Morgan Hill
c. 2022-2023 Strategic Priorities Work Plan
d. Future Council Initiated Agenda Items
e. Remote Public Comments and Public Videos
f. Financial Update
g. Development Services Fund and Housing Laws
h. Youth Sports and Recreation Tourism
i. Economic Development
City Manager Christina Turner welcomed the Community to the City Council's Annual Goal Setting Workshop. She kicked the workshop off with an icebreaker activity and then showed a video of the City's accomplishments from 2023. The leadership team then shared a few of their department's accomplishments.
Public comment opened at 9:32 a.m. There being no requests to speak, public comment closed.
City Manager Christina Turner reviewed the City's Sustainable Morgan Hill Ongoing and Strategic Priorities, and 2022-2023 Strategic Priorities Work Plan and led the City Council in a discussion of them.
The Council reviewed and discussed the Future Council Initiated Agenda Items.
Public comment opened at 10:23 a.m. There being no requests to speak, public comment closed.
The meeting recessed at 10:24 a.m. and reconvened at 10:35 a.m.
The Council reviewed the vision statement and agreed that no changes were needed. They then reviewed and discussed the ongoing priorities. The discussion moved to the strategic priorities.
Public comment opened at 11:25 a.m. The following people were called to speak:
Nick Gaich
Doug Muirhead
There being no further requests to speak, public comment closed.
City Manager Christina Turner opened the conversation on Remote Public Comment and Public Video.
February 2, 2024
3 Public comment opened at 11:58 a.m. The following people were called to speak:
Sally Casas
Nick Gaich
There being no further requests to speak, public comment closed.
Council Member Yvonne Martinez Beltran asked for the remote public comment item to be added to a future meeting.
The meeting recessed to lunch at 12:11 p.m. and reconvened at 1:04 p.m.
Finance Director Dat Nguyen and City Manager Christina Turner provided a financial update.
Public comment opened at 2:05 p.m. The following people were called to speak:
Doug Muirhead
Joe Baranowski
There being no further requests to speak, public comment closed.
Development Services Director Jennifer Carman provided an update on the development services fund, development projects in Morgan Hill, and new housing laws.
Public comment opened at 2:36 p.m. The following person was called to speak:
Jim Sergi
There being no further requests to speak, public comment closed.
The meeting recessed at 2:39 p.m. and reconvened at 2:46 p.m.
Public comment opened at 3:03 p.m. The following person was called to speak:
Doug Muirhead
There being no further requests to speak, public comment closed.
Day 1 of the workshop adjourned at 3:03 p.m.
February 2, 2024
4 ADJOURNMENT TO SATURDAY, FEBRUARY 3, 2024 9:00 A.M.
GOAL SETTING WORKSHOP - SATURDAY, FEBRUARY 3, 2024 9:00 A.M.
CONTINUATION OF THE FEBRUARY 2, 2024, CITY COUNCIL GOAL SETTING
WORKSHOP
The workshop reconvened at 9:00 a.m.
City Manager Christina Turner provided a recap of the 2024-2025 Sustainable Morgan Hill updates from day 1.
Public comment opened at 9:20 a.m. There being no requests to speak, public comment closed.
Public Services Director Chris Ghione provided a presentation on Youth Sports and Recreation Tourism.
Public comment opened at 10:06 a.m. The following people were called to speak:
Brian Sullivan
Nick Gaich
Krista Rupp
Joe Baranowski
Rocke Garcia
There being no further requests to speak, public comment closed.
The meeting recessed at 10:27 a.m. and reconvened at 10:39 a.m.
Public comment opened at 10:40 a.m.
Joe Guerra was called to speak.
There being no further requests to speak, public comment closed.
Economic Development Director Matt Mahood provided a presentation on the City's Economic Development Program.
Public comment opened at 11:34 a.m. The following people were called to speak:
Krista Rupp
Joe Baranowski
There being no further requests to speak, public comment closed.
February 2, 2024
5 ADJOURNMENT
There being no further business, the meeting adjourned at 11:41 a.m.
Minutes Prepared by City Clerk Michelle Bigelow
City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Gino Borgioli - Council Member
Rene Spring - Council Member
Yvonne Martinez Beltran - Council Member
Wednesday, February 21, 2024 5:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
SPECIAL/REGULAR MEETING
A special meeting of the City Council was called at 5:00 p.m. for the purpose of conducting a closed session.
SPECIAL MEETING
5:00 p.m. Closed Session
February 21, 2024
2 CALL TO ORDER
Mayor Turner called the City Council meeting to order at 5:00 p.m.
ROLL CALL ATTENDANCE
City Clerk Michelle Bigelow called the roll.
PRESENT Rene Spring, Gino Borgioli, Mark Turner, Marilyn Librers, Yvonne Martinez Beltran
ABSENT None
Council Member Martinez Beltran arrived at 6:03 p.m.
DECLARATION OF POSTING AGENDA
City Clerk Michelle Bigelow declared the posting of the agenda.
CLOSED SESSION
City Attorney Donald Larkin announced the closed session item.
Conference with Legal Counsel – Anticipated Litigation
Significant exposure to litigation pursuant to § 54956.9(b): (1 Case)
OPPORTUNITY FOR PUBLIC COMMENT
Public comment opened at 5:01 p.m. There being no requests to speak, public comment closed.
ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 5:01 p.m.
REGULAR MEETING
The regular meeting convened at 6:00 p.m.
February 21, 2024
3 SILENT INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS
YAC Presentation
Habitat Plan Amendment - Postponed to a future meeting
RECOGNITIONS
Recognizing the 2023 STEM winner - Postponed to a future meeting
PROCLAMATIONS
Proclaiming the month of February as Black History Month Proclaiming February 7, 2024 as National Girls and Women in Sports Day
CITY COUNCIL REPORTS
Council Member Borgioli spoke about Llagas Creek through his neighborhood and how the work that has been done to aid in flood control is working well. Valley Water is looking to put a price increase in place, and the Board is looking at other solutions to address costs. Valley Water is also working diligently to aid in homing the unhoused that camp in the waterways. He provided an update on the Anderson Dam project and shared that it is on time. He spoke about the South County Youth Task Force and the work they are doing for our Community's at-risk youth.
February 21, 2024
4 CITY MANAGER'S REPORT
City Manager Christina Turner announced the Mayor's State of the City Address on Wednesday, March 13, 2024, at 6:30 p.m. at the Community Playhouse. She shared that the Hale Avenue extension is expected to open in March, weather permitting. She also shared that we have expanded some of our programs in adaptive recreation and that we are always looking for volunteers for the Magical Bridge Playground.
CITY ATTORNEY'S REPORT
City Attorney Don Larkin announced there was no reportable action from the closed session.
OTHER REPORTS
Council Member Martinez Beltran spoke about serving on the VTA Policy Advisory board, and she has been elected as Committee Chair for this year. She mentioned that she was also appointed by the Cities Association as an ABAG representative. She spent the last couple of days in Sacramento advocating for clean energy, energy reliability, and energy affordability.
PUBLIC COMMENT
Public comment opened at 6:18 p.m. The following people were called to speak:
Doug Muirhead
Noshaba Afzal
Deana H
Aamir Jamil
Musa Tariq
Dima Khoury
Sam Khoury
Naz Hussain
Ismail Khan
Ronda A
Issa
Aziz Baameur
Kathy Baameur
Karen Musa
Bishara Kakunda
Nuzi Alari
Bassam Jumaa
Naeem Afzal
Dina S
Eman Alhayyub
Kamila Kraba
Nadine
Omar
Donna
February 21, 2024
5 Zain Yahya
Hanan
Alie Saad
There being no further requests to speak, public comment closed.
Public Comment Supplement
ADOPTION OF AGENDA
MOTION:
Adopting the agenda as posted.
RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Mayor Pro Tem Librers
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None
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.
MOTION:
Approving the consent calendar.
RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Council Member Spring
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None
February 21, 2024
6 1. ACCEPTANCE OF 2023 PAVEMENT REHABILITATION PROJECT IN THE AMOUNT OF $4,009,627
Recommendation:
1. Accept as complete the 2023 Pavement Rehabilitation Project;
2. Authorize the City Engineer to sign the Notice of Completion; and
3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.
2. ACCEPTANCE OF JACKSON OAKS WATER MAIN PROJECT IN THE AMOUNT OF $642,338
Recommendation:
1. Accept as complete the Jackson Oaks Water Main Project;
2. Authorize the City Engineer to sign the Notice of Completion; and
3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.
3. ACCEPT DONATION OF UP TO $7,000 FOR TREES FOR IMPROVEMENTS
AT COMMUNITY PARK FROM GOOGLE
Recommendation:
Authorize the City Manager to accept a donation of trees valued up to $7,000 for Community Park improvements.
4. ADOPT RESOLUTION APPROVING A FUNDS TRANSFER AGREEMENT (FTA) WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTION FOR
GRADE SEPARATIONS AND DIRECT THE CITY MANAGER TO NEGOTIATE A CONSULTANT AGREEMENT WITH BIGGS CARDOSA ASSOCIATES, INC.
FOR AN AMOUNT NOT TO EXCEED $1 MILLION FOR THE COMPLETION
OF DESIGN AND ENGINEERING WORK FOR GRADE SEPARATIONS FOR
DUNNE AVENUE AND DOWNTOWN CALTRAIN STATION PEDESTRIAN
CROSSING
Recommendation:
1. Adopt resolution approving a Funds Transfer Agreement with California Department of Transportation to fund design and engineering work for grade separations for Dunne Avenue and for the Downtown Caltrain Station pedestrian crossing;
2. Designate the City Manager as the person authorized to execute Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements, and any amendments thereto with the California Department of Transportation; and
3. Direct the City Manager to negotiate a consultant agreement with Biggs
February 21, 2024
7 Cardosa Associates, Inc. for an amount not to exceed $1 million for the completion of design and engineering work for grade separations for Dunne Avenue and for the Downtown Caltrain Station pedestrian crossing.
5. ADOPT RESOLUTION OF INTENT TO HOLD SPECIAL BALLOT
PROCEEDING FOR SPARHAWK SUBAREA OF MORGAN HILL
LANDSCAPE ASSESSMENT DISTRICT NUMBER 1
Recommendation:
Adopt resolution declaring intent and authorizing special ballot proceeding required to increase the maximum assessment rate for the Sparhawk subarea of the City's Landscape Assessment District Number 1, effective Fiscal Year (FY) 2024-25.
6. ADOPT UPDATES TO THE SUSTAINABLE MORGAN HILL DOCUMENT Recommendation:
Adopt updates to the Sustainable Morgan Hill document.
7. APPROVE CONTRACT AMENDMENTS FOR CITY ON-CALL PLUMBING
CONTRACTORS
Recommendation:
1. Authorize the City Manager to execute a fourth amendment to the agreement with Burr Plumbing extending the term of the contract to June 30, 2025 and increasing the maximum compensation to $307,625; and
2. Authorize the City Manager to execute a fourth amendment to the agreement with Century Commercial Service, Inc. extending the term of the contract to June 30, 2025.
8. APPROVE PACIFIC GAS AND ELECTRIC COMPANY AGREEMENT TO
PROVIDE ELECTRIC SERVICE TO THE BUTTERFIELD FIRE STATION
PROJECT
Recommendation:
1. Ratify approval of the Pacific Gas and Electric Company Agreement to provide electric service to the Butterfield Fire Station Project; and
2. Authorize the City Manager to administer and execute the Pacific Gas and Electric Company Agreement in the amount of $161,921.
9. APPROVE REVISIONS TO CITY COUNCIL POLICY CP 94-04, THE CITY'S
INVESTMENT POLICY
February 21, 2024
8 Recommendation:
Approve revisions to City Council Policy CP 94-04, the City's Investment Policy.
10. APPROVE THE JANUARY 17, 2024 CITY COUNCIL MEETING MINUTES Recommendation:
Approve minutes.
11. AWARD THE POLICE DEPARTMENT EXPANSION PROJECT TO JAHN PLUMBING, INC. IN THE AMOUNT OF $229,221 AND THE CONTINGENCY NOT TO EXCEED $22,922
Recommendation:
1. Award the Police Department Expansion Project to Jahn Plumbing, Inc. in the amount of $229,221; and authorize the expenditure of contingency funds not to exceed $22,922; and
2. Authorize the City Manager to execute and administer that certain construction contract with Jahn Plumbing, Inc.
12. AWARD MADRONE CHANNEL TRAIL IMPROVEMENTS PHASE II PROJECT TO BEALS MARTIN AND ASSOCIATES, INC. IN THE AMOUNT OF $497,327 AND A CONTINGENCY NOT TO EXCEED $49,733, AND ADOPT
RESOLUTION AMENDING THE FISCAL YEAR 2023-24 BUDGET TO
RECOGNIZE $335,000 AS GRANT REVENUE AND APPROPRIATE AN
ADDITIONAL $190,000 IN THE PARK IMPACT FUND (301) , FOR THE
MADRONE CHANNEL TRAIL IMPROVEMENTS PHASE II PROJECT
Recommendation:
1. Adopt resolution amending the Fiscal Year 2023-24 Budget to recognize $335,000 as grant revenue and appropriate an additional $190,000 in the Park Impact Fund (301), for the Madrone Channel Trail Improvements Phase II Project;
2. Approve the Madrone Channel Trail Improvements Phase II Project Plans and Specifications;
3. Award contract to Beals Martin and Associates, Inc. for the Madrone Channel Trail Improvements Phase II Project in the amount of $497,327;
4. Authorize expenditure of construction contingency funds not to exceed $49,733; and
5. Authorize the City Manager to execute and administer the construction contract with Beals Martin and Associates, Inc.
13. RECEIVE ANNUAL REPORT ON 2023 CITY ENGINEER ACCEPTANCES OF
February 21, 2024
9 PUBLIC IMPROVEMENTS COMPLETED BY PRIVATE DEVELOPMENT
PROJECTS
Recommendation:
Accept and file Annual Report on 2023 City Engineer acceptances of public improvements completed by private development projects.
PUBLIC HEARINGS
14. ADOPT RESOLUTION APPROVING COMMENCEMENT OF 2024 WEED
ABATEMENT PROGRAM
Recommendation:
1. Open/Close public hearing; and
2. Adopt a resolution authorizing Santa Clara County to commence hazardous vegetation abatement activities.
The meeting recessed at 6:52 p.m. and reconvened at 6:59 p.m.
Public Services Director Chris Ghione provided the report.
The public hearing opened at 7:00 pm. There being no requests to speak, the public hearing closed.
MOTION:
Approving the recommended action.
RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Council Member Spring
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner
NAYS: None
ABSTAIN: Mayor Pro Tem Marilyn Librers
ABSENT: None
OTHER BUSINESS
15. ADOPT RESOLUTIONS CALLING FOR A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024; PLACING A MEASURE
ON THE BALLOT TO ENACT A TWELVE CONSECUTIVE YEAR LIMIT ON COMBINED MAYORAL AND CITY COUNCIL SERVICE; PLACING A
MEASURE ON THE BALLOT TO AMEND THE CURRENT TWO-YEAR
February 21, 2024
10 MAYORAL TERM TO A FOUR-YEAR TERM; AND PROVIDE DIRECTION REGARDING TERM LIMITS FOR CITY BOARDS AND COMMISSIONS.
Recommendation:
1. Adopt Resolution A calling for a General Municipal Election to be held on Tuesday, November 5, 2024, to elect a Mayor, one Council Member from District A, one Council Member from District C, and the City Treasurer;
2. Adopt Resolution B requesting the services of the Board of Supervisors of the County of Santa Clara and the Registrar of Voters Office - and the Consolidation of the Election;
3. Adopt Resolution C placing a measure on the ballot to enact a twelve consecutive year limit on combined Mayoral and City Council service;
4. Adopt Resolution D placing a measure on the ballot to amend the current two-year Mayoral Term to a four-year term; and
5. Provide direction regarding term limits for boards and commissions.
City Clerk Michelle Bigelow provided a report and presentation.
Public comment opened at 7:22 p.m. The following people were called to speak:
Brian Sullivan
Doug Muirhead
Joe Baranowski
Armando Benavides
Sally Casas
Kathy Chavez Napoli
There being no further requests to speak, public comment closed.
SUBSTITUTE MOTION:
Approving staff recommended actions.
RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Mayor Pro Tem Librers
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None
FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Borgioli requested a discussion on disturbances in the Council Chamber. He also requested a policy for the Council not to take positions on foreign affairs.
February 21, 2024
11 Council Member Martinez Beltran requested a discussion on a resolution for sustainable peace to end the war and the loss of life in Israel and Palestine.
ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:15 p.m.
Minutes Prepared by:
Michelle Bigelow, City Clerk
2 CITY COUNCIL STAFF REPORT
MEETING DATE: March 6, 2024
PREPARED BY:
Chris Ghione, Public Services Director
APPROVED BY: City Manager
AUTHORIZE THE CITY MANAGER TO EXECUTE A CHANGE ORDER
TO EDWARD R. BACON COMPANY IN THE AMOUNT OF $156,661
INCLUDING 10% CONTINGENCY FOR THE PURCHASE AND
INSTALLATION OF REPLACEMENT GENERATORS AT THE CITY FIRE
STATIONS
RECOMMENDATION(S)
Authorize the City Manager to execute a change order to Edward R. Bacon, in the amount of $156,661, for the purchase and installation of two generators at the Morgan Hill Fire Stations.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
REPORT NARRATIVE:
On December 7, 2022 the City Council awarded a public works contract to Edward R.
Bacon for $315,000 for the installation of three generators at various utility locations in the City's water and wastewater system. Additionally, the City currently operates two fire stations which utilize backup generators to support the stations during power outages.
Both existing backup generators are over 20 years old. It has recently been determined that both generators need very significant repairs and, due to their age, the parts for repair are not readily available.
The City currently has Edward R. Bacon under contract and is finalizing the installation of the utility generators (only one of the three generators is left to install). To expedite replacement of the Fire Station generators, City staff requested costs from Edward R.
Bacon to install these generators. The replacement could be completed with a project change order of $156,661. This cost includes replacement of the two generators, temporary rental generators, and adding a contingency to the project. The contingency for the project was inadvertently not included in the original contract. The pricing is highly competitive and in line with the pricing provided for the low proposal Edward R.
Bacon provided for the utility generators. City staff are recommending moving forward and issuing the change order for Edward R. Bacon due to the ability to expedite the replacement and competitive pricing provided.
2 COMMUNITY ENGAGEMENT:
Not Applicable
Maintenance of fire stations to support public safety is an expected responsibility of the City.
ALTERNATIVE ACTIONS:
The City Council could alternatively not approve the change order and direct the staff to issue a public bid for the additional generators. This is not recommended as it would delay the installation for at least four months, require additional staff time, and not guarantee any lower pricing.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council previously awarded a contract to Edward R. Bacon for the installation of utility system generators on December 7, 2022.
FISCAL AND RESOURCE IMPACT:
The funds for generator replacement at the Fire Station would be funded from the City's Facility Future Replacement Fund (741). The funds for the contingency would be split between Fund 741 and the Utility Capital Project Funds (653 and 643). There are available funds appropriated in all the noted funds.
CEQA (California Environmental Quality Act):
Categorical Exemption
This project is Categorically Exempt pursuant to Section 15301 of CEQA Guidelines because the work to be performed is repair, maintenance and/or minor alteration of existing lift and booster station facilities involving no expansion of existing use.
Contract Change Order
Contract Number:_________________
Contract Effective Date:_________________
Change Order Number:_________________
Change Order Effective Date:_________________
CONTRACT CHANGE ORDER PAGE 1 OF 2
All defined terms used in this Change Order are subject to the definitions in the Contract General Conditions.
Project
Project Title:
Contractor/Firm:
Summary of Change Order
Reason for change(s):
Description of change(s):
Incorporates Change Order
Request Number(s):
Change in Contract Price, if
any, based on payment
method (check one):
[See General Conditions
Article 6]
Unit Pricing Lump Sum Time and Materials
$ _______ Not to exceed $ _________
Cost Time
This Change Order will modify the Contract Price as
follows (check one):
No change to Contract Price
Increase Contract Price by $___________
Decrease Contract Price by $___________
The Contract Price is now:
$
This Change Order will modify the Contract Time as
follows (check one):
No change to Contract Time
Increase Contract Time by ___ calendar days
Decrease Contract Time by ___ calendar days
The deadline for Final Completion is now:
Contract Change Order
Contract Number:_________________
Contract Effective Date:_________________
Change Order Number:_________________
Change Order Effective Date:_________________
CONTRACT CHANGE ORDER PAGE 2 OF 2
Change Order Reference Documents
Description of Document
(e.g., bid schedule, schedule of values, Change
Order request, RFI, field directive, ect.)
Cost
CONTRACTOR CERTIFICATION: By signing below, Contractor agrees that:
1) Contractor will provide all labor, materials, equipment and services necessary to perform and timely complete the Work under this Change Order according to the Contract Documents and in an economic and efficient manner in the best interests of the City.
2) This Change Order constitutes full resolution, settlement, accord and satisfaction with respect to any and all pending or future Claims for modifications of Contract Price or extensions of Contract Time that were or may be asserted, or that could have been asserted, in connection with the Work covered by this Change Order.
FAILURE TO EXECUTE:
If Contractor fails to promptly execute this Change Order within 10 days after it has been submitted for Contractor’s signature, the City may unilaterally issue this Change Order pursuant to Article 6 of the Contract General Conditions.
Contractor may dispute the terms of a unilaterally-issued Change Order, in whole or in part, by submitting a Claim within 15 days after the Change Order has been submitted and according to the dispute resolution procedures set forth in Article 12 of the Contract General Conditions. Contractor’s failure to submit a timely Claim under those procedures will be deemed unqualified acceptance of this Change Order as if it were duly executed by Contractor, and any and all Claims regarding this Change Order are deemed waived.
Submitted to Contractor for execution on _________________ By: ______________________________ Date Name/Title
Accepted by Contractor: Approved by the City of Morgan Hill:
By: By:
Name: Name:
Title: Title:
Date: Date:
Date of City Council approval (if required): _________________________, 20___ Note: This Change Order requires City Council approval if the new Contract Price exceeds the total authorized funding for the Project (original contract award plus any approved contingency amount). The City Manager must sign this Change Order if it increases the Contract Price by more than $20,000 or if it reduces the Project contingency amount to less than 50% of the authorized amount. etc.
__________________________________________________________ City Manager*
____________________________
Date
*
Date
3 CITY COUNCIL STAFF REPORT
MEETING DATE: March 6, 2024
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND JANUARY 2024
FINANCIAL AND INVESTMENT REPORTS
RECOMMENDATION(S)
Accept and file report.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
REPORT NARRATIVE:
As part of the City Council’s expectation to maintain a high level of transparency and to be responsible stewards of public funds, staff is providing this monthly budget update, along with the January 2024 financial and investment reports.
January 2024 Financial Report
The Revenue and Expense Summary through January 2024 is included on the first page of the monthly financial report. Overall, General Fund revenues total $26.3 million or about 49% of the budget. This represents an increase of $1.9 million or about 8% from the prior year to date, mainly from higher property tax and recreation services revenues. Expenditures, including encumbrances, amounted to $34.8 million, of which approximately $3.5 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $34.6 million. This represents an increase of $0.2 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures decreased by about $0.2 million, mainly due to smaller transfer out amounts compared to the prior year, partially offset by the new programs such as Innovative Transit, continued recovery in Recreation Services, as well as overall cost increases.
Budget Update
3 There has been no material change to the City’s revenue since the last budget update to the Council on February 3, 2024. For water revenue, Morgan Hill residents consumed about 1% less water through January compared to the prior three-year average. As such, no revenue stabilization water rate was implemented.
Staff continue to put together the Recommended Fiscal Years 2024-2026 Budget with the anticipated release date by May 1, 2024. Additionally, staff plan to host a booth at the Open Streets event on May 11 with budget information, and introduce the Recommended Budget to the City Council on May 15.
COMMUNITY ENGAGEMENT:
Inform
Finance staff prepares these financial reports to inform City officials, the Council, the Community, and various lenders and stakeholders about the financial health of the organization, which assists each one of the interested parties in making sound financial and investment decisions.
ALTERNATIVE ACTIONS:
No alternative action is recommended, as this is a monthly financial report on City transactions which have already occurred.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council receives and files the financial and investment report each month. City Council receives monthly financial and investment reports under the Consent Agenda, and quarterly financial and investment reports are presented to City Council as an “Other Business” item.
FISCAL AND RESOURCE IMPACT:
The preparation of the report is a part of the Finance workplan.
CEQA (California Environmental Quality Act):
Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FINANCE DEPARTMENT
CITY OF MORGAN HILL
January 31, 2024 - 58% of Year Complete
Prepared by:
Monthly Financial and Investment Reports
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED JANUARY 2024 – 58% OF YEAR COMPLETE General Fund – Revenues through January totaled $26.3 million, or about 49% of the budgeted. This represents an increase of $1.9 million or about 8% from the prior year to date, mainly from higher property tax and recreation services revenues. With respect to the property tax revenue forecast, the County estimates the City will receive approximately $19.0 million in property tax revenue for the current fiscal year, about $0.5 million more than the budget of $18.5 million. As for sales tax, HdL, the City's sales tax consultant revised the City's current fiscal year sales tax revenue estimate, before tax rebates, to $12.6 million, a slight improvement from prior estimate but still below the current budget by about $0.1 million, partially attributable to falling gas prices.
The chart below shows historical General Fund revenues by major revenue category from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of January 31, 2024.
General Fund expenditures and encumbrances through January totaled $34.8 million, of which approximately $3.5 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $34.6 million. This represents an increase of $0.2 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures decreased by about $0.2 million mainly due to smaller transfer out amounts compared to the prior year, partially offset by the new programs such as Innovative Transit, continued recovery in Recreation Services, as well as overall cost increases.
Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of approximately $1.5 million as of January 31, 2024. Recreation Services revenues continue to recover from the pandemic and are on target with budget. $14.5 $16.0 $16.7 $18.1 $18.5
$8.9
$9.7 $11.0 $12.9 $12.7 $12.7
$5.3
$4.6
$4.4
$5.9 $5.7 $5.8
$2.6
$8.3 $5.7
$7.5 $9.3 $10.0
$5.8
$3.6
$9.7
$9.1 $6.6 $6.5
$3.7
$40.6
$46.8
$52.1 $52.4 $53.5
$26.3
0 10
20 30
40 50
60 FY19-20 FY20-21 FY21-22 FY22-23 Budget
FY23-24
YTD
FY23-24
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED JANUARY 2024 – 58% OF YEAR COMPLETE The chart below shows the historical net impact of Recreation Operations to the general fund.
Due to longstanding governmental accounting and budgeting convention, the City’s recreation operations are not charged for indirect costs (known in Morgan Hill as “General Fund Administration”) from the central services departments of City Attorney, City Manager, and Administrative Services.
The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
Development Services Fund – Revenues through January totaled $3.0 million compared to the prior year to date amount of approximately $3.8 million. Expenditures, including encumbrances, totaled $3.5 million.
Debt Service Funds – Expenditures through January totaled $0.6 million. The debt service for the first half of the year includes both interest and principal, while the second half of the year will include interest only. Debt service payments were all scheduled when the bonds were issued and are budgeted for in the months delineated in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues.
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Budget
Millions (S)
Historical Net GF Impact
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2023-24
FOR THE MONTH ENDED JANUARY 2024 – 58% OF YEAR COMPLETE Wastewater Operations – Revenues through January 31, 2024 totaled $7.7 million. Expenditures and outstanding encumbrances totaled $8.5 million or 55% of the budget. The table below shows historical Wastewater Operations revenues and expenditures from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of January 31, 2024.
(amount in millions) FY19‐20 FY20‐21 FY21‐22 FY22‐23
Budget
FY23‐24
YTD
FY23‐24
Revenues 11.9 13.3 14.9 15.3 15.6 7.7 Expenditures 12.3 13.3 14.8 16.0 15.6 8.5 Operating Margin (0.4) ‐ 0.1 ‐ (0.7) (0.8) Operating Margin
without Encumbrances ‐ (0.1) 0.1 ‐ (0.7) (0.7) Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through January 31, 2024 totaled $10.1 million. Water Operations expenditures, including outstanding encumbrances, totaled $11.8 million. Morgan Hill residents consumed about 1% less water through January compared to the prior three-year average. As such, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY19-20 through FY22-23 Actual, FY23-24 Budget, and YTD as of January 31, 2024. (amount in millions) FY19‐20 FY20‐21 FY21‐22 FY22‐23
Budget
FY23‐24
YTD
FY23‐24
Revenues 15.3 16.5 16.0 18.1 19.8 10.1 Expenditures 16.4 16.5 15.2 18.0 20.3 11.8 Operating Margin (1.1) ‐ 0.8 0.1 (0.5) (1.7) Operating Margin
without Encumbrances ‐ (0.1) 0.8 0.1 (0.5) (1.0) Investments – Eight securities were called, and seven new securities were purchased. Total interest earnings received on investments were $571,000 during the month.
% OF ACTUAL PLUS % OF
FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General $ 26,257,959 49% $ 34,757,275 58%
Development Services 3,004,654 47% 3,469,452 54%
Wastewater Operations 7,651,552 49% 8,507,785 55%
Wastewater Other 6,067,042 62% 10,065,646 23%
Water Operations 10,069,795 51% 11,777,287 58%
Water Other 4,988,102 57% 2,637,527 14%
Other Special Revenues * 4,256,857 49% 4,666,195 43%
Capital Projects & Streets 7,792,473 56% 26,791,762 62% Debt Service 398,869 59% 562,012 83%
Internal Service 7,025,398 55% 8,428,843 62%
TOTAL FOR ALL FUNDS 77,512,700 $ 52% $ 111,663,784 49%
* Includes all Special Revenue Funds except Development Services Fund and Street Funds.
REVENUES EXPENSES
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
General
Development
Services
Wastewater
Operations
Wastewater Other
Water Operations
Water Other
Other Special
Revenues *
Capital Projects
& Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
January 31, 2024 - 58% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
58%
% OF PRIOR YEAR % CHANGE FROM
REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 18,472,000 $ 8,834,134 $ 48% 8,019,244 $ 10% Sales Tax 12,673,967 5,290,102 42% 5,454,588 -3%
Franchise Tax 2,983,800 1,300,182 44% 980,611 33%
Hotel Tax 2,800,000 1,285,643 46% 1,309,950 -2%
Other Agencies 1,011,233 471,511 47% 491,574 -4%
Service Charges 10,036,079 5,818,995 58% 5,252,380 11%
Interest/Other 2,143,687 1,383,069 65% 1,143,398 21%
Transfers In 3,342,540 1,874,324 56% 1,754,401 7%
TOTAL REVENUES 53,463,306 $ 26,257,959 $ 49% 24,406,147 $ 8% 0% 10% 20% 30% 40% 50% 60% 70%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
January 31, 2024 - 58% of Year Complete
58%
ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 6,489,162 $ 3,750,190 58% 3,878,037 $ -3% Community Services 17,780,940 10,443,047 59% 9,489,692 10% Police 23,056,204 12,916,039 56% 11,913,496 8%
Fire 9,139,905 5,487,469 60% 5,223,983 5%
Transfers Out 3,263,767 2,160,531 66% 4,110,934 -47%
TOTAL EXPENDITURES $ 59,729,978 $ 34,757,275 58% 34,616,142 $ 0% 0% 10% 20% 30% 40% 50% 60% 70%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
January 31, 2024 - 58% of Year Complete
58%
City of Morgan Hill
Recreation Report - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
% of
Budget January 2024 YTD Budget
Revenues
Membership Services & Rec Programs 5,656,265 $ 435,465 $ 3,383,492 $ Facility Rentals 1,203,269 142,705 892,229
Community Services 152,498 30,498 45,090
Transfers in 75,000 6,250 43,750
Total Revenues $ 7,087,032 $ 614,919 $ 4,364,560 62%
Less: Expenditures
Membership & Program Services $ 7,268,962 $ 528,657 $ 4,006,544 Facility Rentals 573,524 43,021 337,187
Community Services 672,192 39,358 325,124
Total Expenditures $ 8,514,679 $ 611,034 $ 4,668,855 55% Net Impact without encumbrances $ (1,427,647) $ 3,884 $ (304,295) Encumbrances - - 1,192,034
Net Impact with encumbrances $ (1,427,647) $ 3,884 $ (1,496,329)
The chart below shows cash balances by fund type reconciled to City's financial system:
City of Morgan Hill
Monthly Investment Report - January 31, 2024
The following are the snapshots of City's investment portfolio as of January 31, 2024. The first chart shows the portfolio composition by investment type:
LAIF - <$0.1M
<1%
CA Class - $18.6M
10%
Treasury - $6.0M
3%
Money Market -
$8.0M
4%
Federal Agency Issues -
$142.3M
74%
Certificate of Deposits -
$2.0M
1%
Bond Reserves/Trust -
$13.8M
7%
Cash & Other Deposits - $1.3M
1%
Investment Portfolio Composition - $192.0 Million
LAIF - <$0.1M
CA Class - $18.6M
Treasury - $6.0M
Money Market - $8.0M
Federal Agency Issues -
$142.3M
Certificate of Deposits -
$2.0M
Bond Reserves/Trust -
$13.8M
Cash & Other Deposits -
$1.3M
General Fund, $33.5M
Community
Development, $1.3M
Housing Successor
Agency/ CDBG, $3.8M
Water - Operations,
$3.2M
Water Other, $26.8M
Sewer - Operations,
Sewer Other, $41.4M $1.4M
Other Special Revenue,
$10.4M
Streets and Capital
Projects, $37.7M
Debt Service, $0.2M
Internal Service,
$25.1M
Agency Funds (assessment
dists./refundable deposits), $7.2M
Cash Balances by Fund Type - $192.0 Million
The following chart illustrates a yield comparison by month among the City's portfolio, LAIF and 2‐Year US Treasury:
The chart below illustrates monthly average days to maturity of the City's portfolio along with the weighted average yield for the past two years:
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Jan‐22
Feb‐22
Mar‐22
Apr‐22
May‐22
Jun‐22
Jul‐22
Aug‐22
Sep‐22
Oct‐22
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Yield Portfolio vs. Benchmarks
LAIF City 2 Yr US‐Treasury
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
680
700
720
740
760
780
800
820
Jan‐22
Feb‐22
Mar‐22
Apr‐22
May‐22
Jun‐22
Jul‐22
Aug‐22
Sep‐22
Oct‐22
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
City of Morgan Hill
Investment Portfolio Detail
As of January 31, 2024
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $ 59,773 $ 59,773 0.0% $ 59,387 4.01% California C L A S S 18,591,739 18,591,739 9.7% 18,591,739 5.50% US Bank ‐ Portfolio of Securities
Dreyfus Treasury Agency MM 261908107 3,956,235 3,956,235 2.1% 3,956,235 5.21% Treasury Note 91282CCZ2 10/8/2021 1,987,656 1,993,394 1.0% 1,842,580 1.00% 9/30/2026 9/30/2026 Treasury Note 9128286R6 3/28/2022 1,996,320 1,999,566 1.0% 1,985,000 2.34% 4/30/2024 4/30/2024 Treasury Note 912828U24 6/13/2022 1,904,688 1,939,899 1.0% 1,893,680 3.16% 11/15/2026 11/15/2026 FFCB Bond 3133ELVX9 4/8/2020 2,000,000 2,000,000 1.0% 1,983,300 0.88% 4/8/2024 4/8/2024 FFCB Bond 3133ELC28 5/27/2020 2,000,000 2,000,000 1.0% 1,898,600 0.73% 5/27/2024 5/27/2025 FHLMC Bond 3134GVYN2 6/3/2020 2,000,000 2,000,000 1.0% 1,933,120 0.60% 6/3/2024 12/3/2024 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000 2,000,000 1.0% 1,870,980 0.60% 4/20/2024 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000 2,000,000 1.0% 1,867,720 0.63% 4/27/2024 10/27/2025 FFCB Bond 3133EMFR8 11/3/2020 2,000,000 2,000,000 1.0% 1,866,040 0.54% 5/3/2024 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000 2,000,000 1.0% 1,866,440 0.65% 5/18/2024 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000 2,000,000 1.0% 1,864,940 0.64% 5/24/2024 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000 1,000,000 0.5% 929,160 0.60% 5/24/2024 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000 3,000,000 1.6% 2,801,940 0.63% 5/25/2024 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000 2,000,000 1.0% 1,864,880 0.65% 5/26/2024 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000 2,000,000 1.0% 1,852,760 0.47% 6/22/2024 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000 2,000,000 1.0% 1,861,140 0.63% 7/22/2024 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000 2,000,000 1.0% 1,857,380 0.55% 7/28/2024 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000 2,000,000 1.0% 1,860,440 0.65% 7/28/2024 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000 2,000,000 1.0% 1,853,160 0.75% 2/24/2024 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000 2,000,000 1.0% 1,855,760 0.66% 2/25/2024 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000 2,000,000 1.0% 1,855,200 0.65% 2/26/2024 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000 2,000,000 1.0% 1,860,040 0.85% 3/10/2024 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000 2,000,000 1.0% 1,853,040 0.70% 3/16/2024 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000 2,000,000 1.0% 1,857,040 0.80% 3/16/2024 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021 2,000,000 2,000,000 1.0% 1,856,000 1.08% 6/9/2024 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000 2,000,000 1.0% 1,849,000 1.00% 6/30/2024 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000 3,000,000 1.6% 2,778,240 1.13% 7/15/2024 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000 2,000,000 1.0% 1,900,880 0.85% 7/15/2024 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000 2,000,000 1.0% 1,830,460 0.80% 2/26/2024 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000 3,000,000 1.6% 2,760,120 1.00% 2/26/2024 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000 2,000,000 1.0% 1,835,260 0.90% 2/26/2024 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340 2,054,026 1.1% 1,890,180 0.82% 3/11/2024 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960 1,991,021 1.0% 1,837,240 0.98% 3/10/2024 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000 3,000,000 1.6% 2,760,510 1.13% 3/29/2024 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000 2,000,000 1.0% 1,841,140 0.88% 3/30/2024 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000 3,000,000 1.6% 2,754,840 1.05% 3/30/2024 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000 3,000,000 1.6% 2,752,590 1.02% 3/30/2024 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000 2,000,000 1.0% 1,831,140 1.00% 4/19/2024 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000 2,000,000 1.0% 1,841,180 1.30% 5/18/2024 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000 2,000,000 1.0% 1,897,900 1.74% 7/19/2024 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000 2,000,000 1.0% 1,922,960 1.51% 7/25/2024 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000 2,000,000 1.0% 1,957,920 3.48% 3/10/2024 3/10/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000 2,000,000 1.0% 1,968,060 3.28% 6/15/2024 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000 2,000,000 1.0% 1,978,360 4.30% 7/28/2024 7/28/2027 FNMA Bond 3135GACZ2 11/25/2022 2,000,000 2,000,000 1.0% 1,996,480 5.40% 5/25/2024 11/25/2024 FHLMC Bond 3134GY4B5 11/28/2022 2,000,000 2,000,000 1.0% 1,994,640 5.00% 5/15/2024 8/26/2024 FHLB Bond 3130AUP32 1/27/2023 2,250,000 2,250,000 1.2% 2,242,440 5.98% 4/27/2024 1/27/2028 FHLMCMTN Bond 3134GYGB2 1/30/2023 2,000,000 2,000,000 1.0% 1,988,860 5.20% 4/26/2024 1/26/2028 FHLMCMTN Bond 3134GYG22 2/16/2023 3,000,000 3,000,000 1.6% 2,985,060 5.13% 2/16/2024 11/16/2026 FHLB Bond 3130AUTZ7 2/24/2023 2,000,000 2,000,000 1.0% 1,996,080 6.44% 2/24/2024 2/24/2028 FHLB Bond 3130AUZH0 3/6/2023 2,000,000 2,000,000 1.0% 1,998,420 6.33% 3/6/2024 3/6/2026 FHLB Bond 3130AV2Z4 3/15/2023 2,000,000 2,000,000 1.0% 2,000,100 5.35% 3/15/2024 3/15/2024 FHLB Bond 3130AVK92 4/5/2023 3,000,000 3,000,000 1.6% 2,997,630 5.00% 4/5/2024 4/5/2024 FHLB Bond 3130AVL83 4/6/2023 2,000,000 2,000,000 1.0% 1,996,900 5.20% 4/7/2024 10/7/2024
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLB Bond 3130AVQ96 4/17/2023 2,000,000 2,000,000 1.0% 1,998,420 5.15% 4/17/2024 4/17/2024 FHLB Bond 3130AVNT5 4/28/2023 1,000,000 1,000,000 0.5% 998,640 5.50% 2/25/2024 4/25/2025 FHLMCMTN Bond 3134GYQZ8 5/11/2023 3,000,000 3,000,000 1.6% 2,995,650 6.09% 2/11/2024 5/11/2026 FHLMCMTN Bond 3134GYSV5 5/25/2023 2,000,917 2,000,000 1.0% 1,998,560 5.50% 2/22/2024 06/18/2024 FHLB Bond 3130AWF62 6/13/2023 2,000,000 2,000,000 1.0% 1,997,360 5.50% 2/13/2024 12/13/2024 FHLB Bond 3130AXS82 11/30/2023 2,000,000 2,000,000 1.0% 1,998,320 6.10% 2/27/2024 11/27/2028 FHLB Bond 3130AXY36 12/18/2023 2,000,000 2,000,000 1.0% 2,003,080 5.88% 3/18/2024 12/18/2028 FHLMCMTN Bond 3134H1MK6 12/21/2023 2,000,000 2,000,000 1.0% 2,001,020 5.40% 6/21/2024 12/21/2026 FHLB Bond 3130AYAG1 12/28/2023 2,000,000 2,000,000 1.0% 2,000,600 5.50% 6/28/2024 12/28/2028 FHLB Bond 3130AYBT2 1/2/2024 2,000,000 2,000,000 1.0% 2,014,040 5.40% 7/2/2024 1/2/2029 FHLMCTN Bond 3134H1NA7 1/5/2024 2,000,000 2,000,000 1.0% 1,999,820 5.63% 4/5/2024 1/5/2029 FHLB Bond 3130AYGX8 1/11/2024 2,000,000 2,000,000 1.0% 2,000,480 5.63% 4/11/2024 1/11/2029 FHLB Bond 3130AYF35 1/12/2024 2,000,000 2,000,000 1.0% 2,000,000 5.60% 4/12/2024 1/12/2029 FHLMCTN Bond 3134H1PC1 1/12/2024 2,000,000 2,000,000 1.0% 1,998,720 6.02% 4/12/2024 1/12/2029 FHLMCTN Bond 3134H1QG1 1/26/2024 3,000,000 3,000,000 1.6% 2,996,700 4.66% 7/26/2024 1/26/2029 FHLMCTN Bond 3134H1QMB 1/26/2024 2,000,000 2,000,000 1.0% 2,000,020 5.70% 4/26/2024 1/26/2029 CD ‐ Ally Bank 02007GM83 3/30/2023 250,000 250,000 0.1% 249,928 5.15% 3/28/2024 3/28/2024 CD ‐ Zions Bancorp 98970LC43 3/31/2023 250,000 250,000 0.1% 250,775 5.40% 9/27/2024 9/27/2024 CD ‐ Pacific Western Bank 69506YYD5 4/5/2023 250,000 250,000 0.1% 250,573 5.65% 4/5/2024 4/5/2028 CD ‐ US Bank 90354KBR8 5/17/2023 250,000 250,000 0.1% 249,848 5.10% 5/16/2024 5/16/2024 CD ‐ Morgan Stanley Bank 61690DGT9 11/8/2023 250,000 250,000 0.1% 261,030 5.05% 11/8/2028 11/8/2028 CD ‐ Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000 250,000 0.1% 261,030 5.05% 11/8/2028 11/8/2028 CD ‐ American Express 02589AF98 11/8/2023 250,000 250,000 0.1% 260,493 5.00% 11/8/2028 11/8/2028 CD ‐ State Bank India 8562834U7 11/24/2023 250,000 250,000 0.1% 264,018 5.00% 11/24/2028 11/24/2028 Sub Total/Average $ 154,182,115 $ 154,184,141 80.3% 148,280,287 $ 2.86% WFB Money Market $ 4,025,674 $ 4,025,674 2.1% $ 4,025,674 5.21% Total City Managed/Average $ 176,859,301 $ 176,861,327 82.4% 170,957,087 $ 3.19% Bond Reserve Accounts ‐ Held By Trustees $ 6,618,871 $ 6,618,871 3.4% $ 6,618,871 Cash/Deposits $ 1,308,440 $ 1,308,440 0.7% $ 1,308,440 PARS and CALPERS CERBT Trust $ 7,187,404 $ 7,187,404 3.7% $ 8,188,265 GRAND TOTAL/AVERAGE $ 191,974,016 $ 191,976,042 100.0% 187,072,663 $
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 4.01% $ 59,773 0.0% $ 59,387 California CLASS All Funds Pooled 5.50% 18,591,739 9.7% 18,591,739 US Bank - Portfolio of Securities All Funds Pooled 2.86% 154,184,141 80.3% 148,280,287 WFB MMA All Funds Pooled 5.21% 4,025,674 2.1% 4,025,674 SUBTOTAL $ 176,861,327 92.1% $ 170,957,087
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 4.98% 542 0.0% 542
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 4.98% 689 0.0% 689
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 4.94% 6,346,628 3.3% 6,346,628 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 4.98% 271,013 0.1% 271,013 SUBTOTAL 6,618,871 3.4% 6,618,871
Other Cash/Deposits
General Checking All Funds 1,262,590 0.7% 1,262,590
Workers' Comp Administrators Workers' Comp 30,000 0.0% 30,000 Petty Cash & Emergency Cash General Fund 15,850 0.0% 15,850 CALPERS CERBT - OPEB Trust 4,887,404 2.5% 5,547,167
PARS - PENSION Trust 2,300,000 1.2% 2,641,098
SUBTOTAL 8,495,844 4.4% 9,496,705
Total Cash and Investments $ 191,976,042 100.0% $ 187,072,663
CASH ACTIVITY SUMMARY
FY 2023-24
07/01/2023 Change in 1/31/2024
Fund Type Balance Cash Balance Balance
General Fund $ 32,352,753 $ 1,182,911 $ 33,535,664
Community Development 1,831,559 (568,609) 1,262,950
Housing Successor Agency/ CDBG 4,202,736 (396,875) 3,805,861 Water - Operations 2,585,170 584,537 3,169,707
Water Other 23,673,105 3,125,000 26,798,105
Sewer - Operations 907,428 477,621 1,385,049
Sewer Other 44,135,046 (2,718,705) 41,416,341
Other Special Revenue 8,827,861 1,621,672 10,449,534
Streets and Capital Projects (except RDA) 40,486,238 (2,794,019) 37,692,219 Debt Service 342,534 (163,088) 179,446
Internal Service 25,139,787 (33,898) 25,105,889
Agency Funds (assessment dists./refundable deposits) 8,515,969 (1,340,692) 7,175,277 Total $ 193,000,187 $ (1,024,145) $ 191,976,042
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.
I certify that information on the investment report has been reconciled to the general ledger and bank statements and that there are sufficient funds to meet the expenditure requirements of the City for the next six months. The portfolio is in compliance with the City of Morgan Hill Investment Policy and all State laws and regulations.
Prepared by: ____________________________________ Approved by:
Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Caitlin Jachimowicz, Treasurer
CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF JANUARY 31, 2024
FOR THE FISCAL YEAR OF 2023-24
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 15,245,000 15,745,000 $ 7,698,342 49% $ 6,836,592 $ 861,750 13% Property Tax - RPTTF Residual Distribution 2,527,000 2,527,000 1,020,900 40% 987,196 33,703 3% Property Tax - Supplemental Roll 200,000 200,000 114,892 57% 195,456 (80,564) -41% Sales Tax 12,218,967 12,218,967 5,106,960 42% 5,300,697 (193,737) -4% Public Safety Sales Tax 455,000 455,000 183,142 40% 153,891 29,251 19% Transient Occupancy Taxes 2,800,000 2,800,000 1,285,643 46% 1,309,950 (24,308) -2% Franchise (Refuse ,Cable ,PG&E) 2,873,800 2,983,800 1,300,182 44% 980,611 319,571 33% Property Transfer Tax 510,000 510,000 228,685 45% 30,409 198,276 15% TOTAL TAXES 36,829,767 37,439,767 16,938,745 45% 15,962,669 976,076 6%
LICENSES/PERMITS
Business License 170,000 170,000 163,517 96% 133,828 29,689 22% Other Permits 53,975 53,975 26,067 48% 222,727 (196,660) -88% TOTAL LICENSES/PERMITS 223,975 223,975 189,584 85% 356,555 (166,971) -47%
FINES AND PENALTIES
Parking Enforcement 3,019 3,019 6,001 199% 3,061 2,941 96% Bails & Fines 47,875 47,875 25,647 54% 21,663 3,984 18% Administrative Citations 20,000 20,000 17,430 87% 10,402 7,028 148% TOTAL FINES AND PENALTIES 70,894 70,894 49,079 69% 31,752 17,327 55%
OTHER AGENCIES
Motor Vehicle in-Lieu 40,800 40,800 - n/a - - n/a
Other Revenue - Other Agencies 1,011,233 971,089 471,511 47% 491,574 (20,063) -4% TOTAL OTHER AGENCIES 1,011,889 1,052,033 471,511 45% 491,574 (20,063) -4%
CHARGES CURRENT SERVICES
Police False Alarm Charge 33,248 33,248 19,864 60% 18,973 890 5% Business License Application Review 53,000 83,000 72,514 87% 27,019 45,495 168% Membership Services & Rec Programs 5,656,265 5,656,265 3,383,492 60% 2,940,304 443,188 15% Facility Rentals 1,203,269 1,203,269 892,229 74% 660,645 231,584 35% Community Services 152,498 152,498 45,090 30% 38,823 6,266 16% General Administration Overhead 1,822,869 1,822,869 1,026,424 56% 1,035,655 (9,231) -1% Other Charges Current Services 1,084,930 1,084,930 379,384 35% 530,961 (151,577) -29% TOTAL CURRENT SERVICES 10,006,079 10,036,079 5,818,995 58% 5,252,380 566,615 11%
OTHER REVENUE
Use of money/property 583,850 683,850 765,766 112% 385,264 380,502 99% Other Revenues 614,168 234,168 149,956 24% 171,551 -13% (21,596) TOTAL OTHER REVENUE 818,018 1,298,018 915,721 71% 556,815 358,906 64%
TRANSFERS IN
One Time Transfer 180,000 180,000 105,000 58% 105,000 - 0% Public Safety Facilities Fund 50,000 50,000 29,167 58% 29,167 - 0% Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 100,000 - n/a Countywide Solid Waste 373,000 468,680 217,583 46% 207,083 10,500 5% Streets 949,760 949,760 492,682 52% 405,424 87,258 22%
Park Maintenance 650,000 650,000 379,167 58% 379,169 (2) 0% Sewer Operations 394,000 394,000 229,833 58% 218,750 11,083 5% Water Operations 394,000 394,000 229,833 58% 218,750 11,083 5% Open Space 81,100 81,100 47,308 58% 47,308 - n/a
Park Development 75,000 75,000 43,750 58% - 43,750 n/a
TOTAL TRANSFERS IN 3,246,860 3,342,540 1,874,324 56% 1,754,401 119,923 7% TOTAL GENERAL FUND 52,207,482 53,463,306 26,257,959 49% 24,406,147 1,851,812 8%
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 954,952 954,952 423,014 44% 413,734 9,280 2% Interest / Other Revenue/Other Charges 78 78 6233% 4,862 2,719 2,143 127% 202 STREET MAINTENANCE 955,030 955,030 427,876 45% 415,877 11,999 3%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 1,905 1,905 6,514 342% 2,111 4,403 209% Police Grant/SLEF/JAG 100,000 100,000 119,492 119% 20,888 98,605 21% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 101,905 101,905 126,006 124% 100,716 25,290 25% 206 DEVELOPMENT SERVICES
Building Fees 3,455,600 3,495,600 1,767,768 51% 2,248,518 (480,750) -21% Planning Fees 1,645,444 1,645,444 764,653 46% 454,254 310,399 68% Engineering Fees 1,190,852 1,190,852 312,926 26% 856,331 (543,405) -63% Other Revenue/Current Charges - - 159,306 n/a 224,592 (65,286) -29% 206 DEVELOPMENT SERVICES 6,291,896 6,331,896 3,004,654 47% 3,783,695 (779,041) -21% 207 LONG RANGE PLANNING 1,013,392 1,013,392 495,022 49% 577,181 (82,158) -14% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 325 325 1,127 347% 470 658 140% 215 and 216 HCD BLOCK GRANT 325 325 1,127 347% 470 658 140% 225 ASSET SEIZURE 1,298 1,298 1,727 133% 740 987 133%
229 LIGHTING AND LANDSCAPE 200,028 200,028 2,933 1% 110,675 (107,742) -97% 230 COMMUNITY FACILITIES DISTRICT 37,914 37,914 2,470 7% 26,714 (24,244) -91% 232 ENVIRONMENTAL PROGRAMS 590,223 590,223 333,852 57% 314,810 19,043 6% 234 MOBILE HOME PARK RENT STAB. 584 584 4,818 825% 6,105 (1,287) -21% 236 HOUSING MITIGATION 4,456,924 4,456,924 2,035,146 46% 577,414 1,457,733 252% 240 EMPLOYEE ASSISTANCE 20,889 20,889 4,924 24% 4,751 172 4% 246 COUNTYWIDE SOLID WASTE 1,645,138 1,944,000 1,053,585 54% 803,802 249,784 31% 247 ENVIRONMENT REMEDIATION 1,358 1,358 2,373 175% 993 1,380 139% 255 HOUSING SUCCESSOR AGENCY 239,202 239,202 192,873 81% 260,628 (67,755) -26% TOTAL SPECIAL REVENUE FUNDS 15,556,107 15,894,969 7,689,386 48% 6,984,569 704,818 10%
CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,673,505 1,673,505 302,866 18% 1,645,268 (1,342,402) -82% 302 PARK MAINTENANCE 363,038 363,038 48,928 13% 507,669 (458,741) -90% 303 LOCAL DRAINAGE 447,897 447,897 389,535 87% 924,926 (535,391) -58% 304 LOCAL DRAINAGE/NON AB1600 30,901 30,901 22,908 74% 97,911 (75,004) -77% 306 AGRICULTURE & OPEN SPACE PRESERVATION 4,036 4,036 112,027 2776% 51,218 60,808 119% 308 STREET CIP 4,486,656 4,486,656 1,421,169 32% 2,560,069 (1,138,899) -44% 309 TRAFFIC IMPACT 1,276,925 1,276,925 473,917 37% 3,529,365 (3,055,448) -87% 315 PUBLIC SAFETY FACILITIES IMPACT 801,703 801,703 297,584 37% 86,764 210,820 243% 346 PUBLIC FACILITIES NON-AB1600 822,102 822,102 185,816 23% 382,591 (196,775) -51% 347 PUBLIC FACILITIES IMPACT 176,602 176,602 103,420 59% 25,144 78,276 311% 348 LIBRARY 657,457 657,457 350,940 53% 65,709 285,231 434% 350 UNDERGROUNDING 22,520 22,520 245,046 1088% 12,098 232,948 1926% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY 492,717 492,717 31,316 6% 208,925 (177,609) -85% 360 COMMUNITY/REC IMPACT FUND 1,142,697 1,142,697 603,960 53% 319,991 283,969 89% 375 QUIMBY FEE 610,860 610,860 2,775,166 454% 1,547,270 1,227,895 79% TOTAL CAPITAL PROJECTS FUNDS 13,009,616 13,009,616 7,364,597 57% 11,964,918 (4,600,320) -38%
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 290,850 290,850 172,531 59% 171,649 882 1% 441 POLICE FACILITY BOND 387,792 387,792 226,338 58% 226,114 225 0% TOTAL DEBT SERVICE FUNDS 678,642 678,642 398,869 59% 397,762 1,107 0%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 15,200,000 15,200,000 7,445,944 49% 7,477,680 (31,736) 0% Interest Income/Transfers 39,704 39,704 34,247 86% 20,402 13,844 68% Other Revenue/Current Charges 329,403 329,403 171,361 52% (79,489) 250,850 -32% 640 WASTEWATER OPERATION 15,569,107 15,569,107 7,651,552 49% 7,748,933 (97,381) -1% 641 WASTEWATER EXPANSION
Interest Income 40,173 40,173 371,128 924% 173,506 197,621 114% Development Impact Fee 4,388,986 4,388,986 2,271,343 52% 505,602 1,765,741 349% Transfer From-643 (Sewer Replacement) - - n/a - (3,748,942) 3,748,942 -100% 641 WASTEWATER EXPANSION 4,429,159 4,429,159 2,642,471 60% 4,428,050 (1,785,579) -40% 642 WASTEWATER RATE STABILIZATION 192,000 192,000 162,747 85% 49,692 113,055 228% 643 WASTEWATER CAPITAL PROJECT 5,204,512 5,204,512 3,261,825 63% 3,947,709 (685,884) -17% TOTAL SEWER FUNDS 25,394,778 25,394,778 13,718,593 54% 16,174,383 (2,455,790) -15% 650 WATER OPERATION
Water Sales 18,500,000 18,500,000 9,256,067 50% 8,667,639 588,428 7% Meter Install & Service 50,000 50,000 75,752 152% 63,278 12,474 20% Transfers-In / Interest Income 606,318 606,318 397,231 66% 351,530 45,701 13% Other Revenue/Current Charges 630,464 630,464 340,745 54% (101,788) 442,534 -23% 650 WATER OPERATION 19,786,782 19,786,782 10,069,795 51% 9,524,981 544,815 6% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 28,855 28,855 53,481 185% 21,058 32,423 154% Development Impact Fee 1,720,216 1,720,216 577,582 34% 437,010 140,572 311% 651 WATER EXPANSION 1 1,749,071 ,749,071 631,063 36% 161,630 469,433 290% 652 WATER RATE STABILIZATION - - 56,700 n/a 23,629 33,071 140% 653 WATER CAPITAL PROJECT 6,948,348 6,948,348 4,300,338 62% 3,034,732 1,265,606 42% TOTAL WATER FUNDS 28,484,201 28,484,201 15,057,897 53% 12,744,972 2,312,926 18% TOTAL ENTERPRISE FUNDS 53,878,979 53,878,979 28,776,491 53% 28,919,355 (142,864) 0%
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,493,922 2,493,922 1,461,843 59% 1,307,526 154,317 12% 740 BUILDING MAINTENANCE 1,675,215 1,675,215 978,595 58% 965,867 12,728 1% 741 BUILDING REPLACEMENT 859,973 859,973 561,457 65% 500,919 60,538 12% 745 CIP ADMINISTRATION 2,059,092 2,059,092 902,935 44% 1,060,606 (157,671) -15% 760 UNEMPLOYMENT INSURANCE 2,940 2,940 4,844 165% 2,173 2,671 123% 770 WORKERS COMPENSATION 997,442 997,442 555,048 56% 514,043 41,005 8% 790 EQUIPMENT REPLACEMENT 1,725,990 1,725,990 831,677 48% 1,622,284 (790,607) -49% 791EMPLOYEE BENEFITS 849,796 849,796 499,498 59% 473,120 26,378 6% 795 GENERAL LIABILITY INSURANCE 2,103,483 2,103,483 1,229,500 58% 1,158,543 70,956 6% TOTAL INTERNAL SERVICE FUNDS 12,767,853 12,767,853 7,025,398 55% 7,605,082 (579,685) -8% TOTAL FOR ALL FUNDS $ 148,098,679 $ 149,693,365 $ 77,512,700 52% $ 80,277,833 $ (2,765,133) -3%
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL $ 33,858 $ 435,652 $ 213,251 $ - $ 213,251 49% $ 251,675 .
CITY ATTORNEY 66,053 1,081,241 499,917 140,257 640,173 59% 453,995 CITY MANAGER 48,447 886,041 399,929 20,034 419,963 47% 356,068 HUMAN RESOURCES 80,073 898,203 496,071 - 496,071 55% 473,575
COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 33,830 628,281 291,616 - 291,616 46% 315,410 Elections 2,291 17,256 37,728 - 46% 17,256 208,160
COUNCIL SVCS & RECORDS MGMT 36,121 666,009 308,872 - 308,872 46% 523,570 FINANCE 135,154 2,522,016 1,104,379 567,482 1,671,860 66% 996,807 TOTAL ADMINISTRATION 399,707 6,489,162 3,022,418 727,772 3,750,190 58% 3,055,690 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 528,657 7,268,962 4,006,544 1,122,225 5,128,769 71% 3,513,431 Recreation Facility Rentals 43,021 573,524 337,187 21,683 358,870 63% 285,940 Innovative Transit 55,100 850,612 337,227 461,543 798,770 94% 250,687 Community Services 39,358 672,192 325,124 48,126 373,250 56% 314,361 Park Maintenance 72,572 1,567,049 599,924 66,729 666,654 43% 707,301 Environmental Services 21,132 472,354 202,793 4,209 207,002 44% 140,459 Countywide Solid Waste Program 30,655 907,406 229,975 - 229,975 25% 206,149 Street Maintenance 206,721 3,025,578 1,323,894 143,582 1,467,476 49% 1,342,416 Downtown Maintenance 19,518 345,237 152,099 18,647 170,746 49% 102,417 Cable Television 7,742 52,535 74,940 - 70% 52,535 23,674 COMMUNITY SERVICES 1,024,474 15,757,854 7,567,304 1,886,743 9,454,047 60% 6,886,835 CODE COMPLIANCE 25,986 340,153 141,101 - 141,101 41% 104,270 INFRASTRUCTURE PLANNING & CONGESTION MGMT 415,141 60,337 233,603 - 233,603 56% 180,282 ECONOMIC DEVELOPMENT PROGRAMS 66,021 1,267,792 552,426 61,870 614,296 48% 462,062 TOTAL COMMUNITY SERVICES 1,176,818 17,780,940 8,494,433 1,948,614 10,443,047 59% 7,633,449 III. PUBLIC SAFETY
POLICE
PD Administration 104,407 1,735,700 915,999 41,628 957,627 55% 887,282 Field Operations 781,801 11,210,613 6,371,328 41,333 6,412,661 57% 5,769,161 Support Services 218,885 3,586,324 1,598,299 599,540 2,197,838 61% 1,596,119 Emergency Services/Haz Mat 17,522 222,865 127,427 10,436 137,863 62% 120,603 Special Operations 227,093 4,098,765 2,080,101 - 2,080,101 51% 2,308,177 Dispatch Services 2,201,937 136,964 1,129,949 - 51% 1,129,949 1,170,875 POLICE 1,486,671 23,056,204 12,223,102 692,937 12,916,039 56% 11,852,216 FIRE 681,192 9,139,905 5,365,338 122,131 5,487,469 60% 4,845,459 TOTAL PUBLIC SAFETY 2,167,863 32,196,109 17,588,440 815,067 18,403,507 57% 16,697,675 IV. TRANSFERS
Other 108,647 3,263,767 2,160,531 - 2,160,531 66% 4,110,934 TOTAL TRANSFERS 108,647 3,263,767 2,160,531 - 2,160,531 66% 4,110,934 TOTAL GENERAL FUND 3,853,036 59,729,978 31,265,822 3,491,453 34,757,275 58% 31,497,748
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 493,115 954,952 495,711 - 495,711 52% 408,364 205 PUBLIC SAFETY/SUPP.LAW 100,107 101,289 100,752 - 100,752 99% 100,730 206 DEVELOPMENT SERVICES FUND
Planning 114,879 1,847,544 941,043 229 941,272 51% 929,786 Building 176,819 2,563,441 1,347,827 93,189 1,441,016 56% 1,259,649 Engineering 1,974,680 98,061 983,380 103,785 1,087,164 55% 933,494 206 DEVELOPMENT SERVICES FUND 389,759 6,385,665 3,272,250 197,202 3,469,452 54% 3,122,929 207 LONG RANGE PLANNING 57,059 1,581,133 465,007 18,178 483,185 31% 523,456 215/216 CDBG 7 83 48 - 48 58% 47
225 ASSET SEIZURE 65 782 456 - 456 58% 443
229 LIGHTING AND LANDSCAPE 20,888 234,554 105,090 17,553 122,643 52% 103,187 230 COMMUNITY FACILITIES DISTRICT 3,015 41,249 21,224 - 21,224 51% 19,070 232 ENVIRONMENT PROGRAMS 26,793 561,335 248,639 2,135 250,774 45% 285,478 234 MOBILE HOME PARK 76 907 529 - 529 58% 514
236 HOUSING MITIGATION 75,292 1,541,126 569,893 191,194 761,087 49% 458,984 240 EMPLOYEE ASSISTANCE 79 20,946 2,552 - 2,552 12% 7,730 246 COUNTYWIDE SOLID WASTE PROGRAM 197,852 2,078,493 911,226 1,105,991 2,017,216 97% 869,207 255 HOUSING SUCCESSOR AGENCY 46,750 1,172,110 722,394 183,333 905,727 77% 693,563 TOTAL SPECIAL REVENUE FUNDS 1,410,859 14,674,624 6,915,772 1,715,585 8,631,357 59% 6,611,751
CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 51,334 2,285,298 458,730 91,224 549,954 24% 672,472 302 PARK MAINTENANCE 54,518 660,850 815,579 - 815,579 123% 390,797 303 LOCAL DRAINAGE 246,078 7,119,361 2,813,681 1,460,072 4,273,753 60% 756,791 304 LOCAL DRAIN. NON-AB1600 17,996 410,006 171,250 17,444 188,693 46% 45,810 306 AGRICULTURE & OPEN SPACE PRESERVATIO 247,600 8,133 56,933 - 56,933 23% 73,415 308 STREET CIP 368,841 5,499,004 4,305,256 596,132 4,901,388 89% 6,812,727 309 TRAFFIC IMPACT 63,745 5,827,301 589,107 3,458,914 4,048,020 69% 4,126,884 315 PUBLIC SAFETY FACILITIES IMPACT 440,822 10,717,603 1,614,727 8,170,331 9,785,058 91% 548,990 346 PUBLIC FAC.NON AB1600 5,155 1,321,382 56,743 263,711 320,455 24% 24,131 347 PUBLIC FACILITIES IMPACT 2,440 1,529,278 87,079 45,000 132,079 9% 17,006 348 LIBRARY IMPACT 18,529 222,349 129,704 - 129,704 58% 130,034 350 UNDERGROUNDING 98 1,194,738 685 - 685 0% 666
355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY 2,501 916,562 22,871 3,428 26,299 3% 41,322 360 COMM/REC CENTER IMPACT 10,317 2,756,259 124,018 557,016 681,034 25% 690,587 375 QUIMBY FEE 938 1,403,605 17,872 368,544 386,416 28% 176,764 TOTAL CAPITAL PROJECTS FUNDS 1,291,445 42,111,196 11,264,235 15,031,816 26,296,051 62% 14,508,397
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 270 290,852 238,488 - 238,488 82% 236,106 441 POLICE FACILITY BOND DEBT 358 387,792 323,524 - 323,524 83% 317,903 TOTAL DEBT SERVICE FUNDS 628 678,644 562,012 - 562,012 83% 554,009
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 1,625,548 15,560,361 8,457,509 50,277 8,507,785 55% 8,969,493 641 WASTEWATER CAPITAL EXPANSION 851,140 26,223,607 4,742,878 387,145 5,130,023 20% 2,440,496 642 WASTEWATER RATE STABILIZATION 156 1,872 1,092 - 1,092 58% 1,060 643 WASTEWATER CAPITAL PROJECTS 17,522,286 173,012 2,298,269 2,636,263 4,934,531 28% 6,405,685 TOTAL SEWER FUND(S) 2,649,856 59,308,126 15,499,747 3,073,684 18,573,431 31% 17,816,734 WATER
Water Operations 1,669,510 18,485,381 10,315,066 605,284 10,920,350 59% 8,342,484 Utility Billing 68,972 1,192,638 557,757 85,232 642,989 54% 540,507 Water Conservation 644,730 21,593 205,167 8,780 213,947 33% 141,666 650 WATER OPERATIONS 1,760,075 20,322,749 11,077,990 699,296 11,777,287 58% 9,024,657 651 WATER CAPITAL EXPANSION 67,514 2,479,364 475,594 62,239 537,833 22% 417,624 652 WATER RATE STABILIZATION 117 1,403 818 - 818 58% 794 653 WATER-CAPITAL PROJECTS 16,010,730 239,995 1,416,798 682,078 2,098,875 13% 305,433 TOTAL WATER FUND(S) 2,067,701 38,814,246 12,971,200 1,443,613 14,414,813 37% 9,748,509 TOTAL ENTERPRISE FUNDS 4,717,556 98,122,372 28,470,947 4,517,297 32,988,245 34% 27,565,243
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 356,738 2,683,931 1,589,002 64,260 1,653,262 62% 1,197,624 740 BUILDING MAINTENANCE 150,726 1,781,790 855,189 140,123 995,312 56% 756,147 741 BUILDING REPLACEMENT - 1,501,100 39,456 12,035 51,491 3% 89,010 745 CIP ADMINISTRATION 154,112 2,061,046 1,024,848 1,015 1,025,864 50% 1,055,523 760 UNEMPLOYMENT - 15,000 11,826 - 11,826 79% 10,642
770 WORKERS COMPENSATION 47,246 1,048,265 694,183 - 694,183 66% 656,847 790 EQUIPMENT REPLACEMENT 194,385 1,245,240 304,785 873,304 1,178,089 95% 374,085 791 EMPLOYEE BENEFITS FUND 93,830 750,000 426,961 - 426,961 57% 530,446 795 GEN. LIABILITY INSURANCE 23,057 2,551,193 2,391,855 - 2,391,855 94% 1,698,279 TOTAL INTERNAL SERVICE FUNDS 1,020,094 13,637,565 7,338,106 1,090,738 8,428,843 62% 6,368,601 REPORT TOTAL $ 12,293,617 $ 228,954,379 $ 85,816,894 $ 25,846,890 $ 111,663,784 49% 87,105,749 $
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-23 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND $ 33,175,566 $ 26,257,959 49% 31,265,822 $ 52% (5,007,863) $ $ 3,491,453 $ 24,676,250 TOTAL GENERAL FUND $ 33,175,566 $ 26,257,959 49% $ 31,265,822 52% $ (5,007,863) $ 3,491,453 $ 24,676,250 202 STREET MAINTENANCE 68,927 $ 427,876 45% 495,711 $ 53% (67,835) $ $ - $ 1,092 205 PUBLIC SAFETY/SUPPL. LAW 319,867 126,006 124% 100,752 50% 25,254 345,121 - 206 DEVELOPMENT SERVICES (426,677) 3,004,654 47% 3,272,250 51% (267,596) 197,202 (891,475) 207 LONG RANGE PLANNING 1,276,770 495,022 49% 465,007 29% 30,015 18,178 1,288,607 215 / 216 CDBG 30,767 1,127 347% 48 58% 1,079 - 31,846
225 ASSET SEIZURE 102,496 1,727 133% 456 58% 1,271 103,767 - 229 LIGHTING AND LANDSCAPE 191,949 2,933 1% 105,090 45% (102,157) 17,553 72,239 230 COMMUNITY FACILITIES DISTRICT 150,651 2,470 7% 21,224 51% (18,754) 131,897 - 232 ENVIRONMENTAL PROGRAMS 328,270 333,852 57% 248,639 44% 85,214 2,135 411,349 234 MOBILE HOME PK RENT STAB. 76,297 4,818 825% 529 58% 4,289 - 80,586 235 SENIOR HOUSING 239,361 - n/a - n/a - 239,361 -
236 HOUSING MITIGATION 5,698,654 2,035,146 46% 569,893 37% 1,465,253 191,194 6,972,713 240 EMPLOYEE ASSISTANCE 61,893 4,924 24% 2,552 12% 2,372 - 64,265 246 COUNTYWIDE SOLID WASTE 239,294 1,053,585 175% 911,226 44% 142,359 1,105,991 (724,337) 247 ENVIRONMENT REMEDIATION 140,690 2,373 175% n/a - 2,373 143, - 063 255 HOUSING SUCCESSOR AGENCY 4,001,427 192,873 81% 722,394 62% (529,521) 183,333 3,288,573 TOTAL SPECIAL REVENUE FUNDS $ 12,500,636 $ 7,689,386 48% $ 6,915,772 47% $ 773,614 $ 1,715,585 $ 11,558,665 301 PARK DEV. IMPACT FUND $ 1,426,990 $ 302,866 18% 458,730 $ 20% (155,864) $ $ 91,224 $ 1,179,902 302 PARK MAINTENANCE 2,489,205 48,928 13% 815,579 123% (766,651) 1,722,554 - 303 LOCAL DRAINAGE 11,817,863 389,535 87% 2,813,681 40% (2,424,146) 1,460,072 7,933,645 304 LOCAL DRAINAGE/NON-AB1600 1,343,736 22,908 74% 171,250 42% (148,342) 17,444 1,177,950 306 AG. AND OPEN SPACE PRESERVATION 541,496 112,027 2776% 56,933 23% 55,094 596,590 - 308 STREET CIP 4,078,203 1,421,169 32% 4,305,256 78% (2,884,086) 596,132 597,984 309 TRAFFIC IMPACT FUND 3,727,580 473,917 37% 589,107 10% (115,190) 3,458,914 153,476 315 PUBLIC SAFETY FACILITIES IMPACT 3,050,728 297,584 37% 1,614,727 15% (1,317,143) 8,170,331 (6,436,746) 346 PUBLIC FACILITIES NON-AB1600 2,943,797 185,816 23% 56,743 4% 129,073 263,711 2,809,158 347 PUBLIC FACILITIES IMPACT FUND 1,099,809 103,420 59% 87,079 6% 16,341 45,000 1,071,150 348 LIBRARY IMPACT FUND 1,408,238 350,940 53% 129,704 58% 221,236 1,629,474 - 350 UNDERGROUNDING 1,626,301 245,046 1088% 685 0% 244,360 1,870,661 - 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY 92,077 31,316 6% 22,871 2% 8,444 3,428 97,093 360 COMM/REC CTR IMPACT FUND 992,228 603,960 53% 124,018 4% 479,942 557,016 915,154 375 QUIMBY FEE 1,621,885 2,775,166 454% 17,872 1% 2,757,294 368,544 4,010,635 TOTAL CAPITAL PROJECT FUNDS $ 38,260,136 $ 7,364,597 57% $ 11,264,235 27% $ (3,899,638) $ 15,031,816 $ 19,328,682 420 CIVIC CENTER DEBT $ 175,864 $ 172,531 59% 238,488 $ 82% (65,957) $ $ 76 $ 109,830 441 POLICE FACILITY BOND DEBT 166,725 226,338 58% 323,524 83% (97,185) 97 69,443 TOTAL DEBT SERVICE FUNDS $ 342,589 $ 398,869 59% $ 562,012 83% $ (163,143) $ 173 $ 179,273 640 WASTEWATER OPERATIONS $ 4,670,817 $ 7,651,552 49% 8,457,509 $ 54% (805,957) $ 50,277 3,814,583 641 WASTEWATER IMPACT FUND* 21,350,081 2,642,471 60% 4,742,878 18% (2,100,407) 387,145 18,862,529 642 WASTEWATER RATE STABILIZATION 2,799,081 162,747 85% 1,092 58% 161,655 2,960,736 - 643 WASTEWATER CAPITAL PROJECTS 15,601,623 3,261,825 63% 2,298,269 13% 963,556 2,636,263 13,928,916 650 WATER OPERATIONS 4,444,824 10,069,795 51% 11,077,990 55% (1,008,195) 699,296 2,737,333 651 WATER IMPACT FUND* 2,969,960 631,063 36% 475,594 19% 155,470 62,239 3,063,190 652 WATER RATE STABILIZATION 3,183,868 56,700 n/a 818 58% 55,882 3,239,750 - 653 WATER -CAPITAL PROJECT 15,548,298 4,300,338 62% 1,416,798 9% 2,883,541 682,078 17,749,761 TOTAL ENTERPRISE FUNDS $ 70,568,552 $ 28,776,491 53% $ 28,470,947 29% $ 305,544 $ 4,517,297 $ 66,356,798 730 INFORMATION SERVICES $ 793,101 $ 1,461,843 59% 1,589,002 $ 59% (127,159) $ $ 64,260 $ 601,682 740 BUILDING MAINTENANCE 7,256 978,595 58% 855,189 48% 123,405 140,123 (9,462) 741 BUILDING REPLACEMENT 4,309,501 561,457 65% 39,456 3% 522,002 12,035 4,819,467 745 CIP ENGINEERING 9,209 902,935 44% 1,024,848 50% (121,913) 1,015 (113,719) 760 UNEMPLOYMENT 303,137 4,844 165% 11,826 79% (6,982) 296,155 - 770 WORKERS COMPENSATION 2,152,498 555,048 56% 694,183 66% (139,135) 30,000 1,983,363 790 EQUIPMENT REPLACEMENT 7,665,968 831,677 48% 304,785 24% 526,891 873,304 7,319,555 791 EMPLOYEE BENEFITS FUNDS (124,893) 499,498 59% 426,961 57% 72,537 - (52,356) 795 GEN. LIABILITY INSURANCE 932,477 1,229,500 58% 2,391,855 94% (1,162,356) (229,879) - TOTAL INTERNAL SERVICE FUNDS $ 16,048,254 $ 7,025,398 55% $ 7,338,106 54% $ (312,708) $ 1,120,738 $ 14,614,808 Revenues Expenses Preliminary Ending Fund Balance
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2023-24
For the Month Ended January 31, 2024
58% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-23 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Preliminary Ending Fund Balance
SUMMARY BY FUND TYPE
GENERAL FUND GROUP 33,175,566 $ 26,257,959 $ 49% 31,265,822 $ 52% (5,007,863) $ 3,491,453 $ 24,676,250 $ SPECIAL REVENUE GROUP 12,500,636 7,689,386 48% 6,915,772 47% 773,614 1,715,585 11,558,665 DEBT SERVICE GROUP 342,589 398,869 59% 562,012 83% (163,143) 173 179,273 CAPITAL PROJECTS GROUP 38,260,136 7,364,597 57% 11,264,235 27% (3,899,638) 15,031,816 19,328,682 ENTERPRISE GROUP 70,568,552 28,776,491 53% 28,470,947 29% 305,544 4,517,297 66,356,798 INTERNAL SERVICE GROUP 16,048,254 7,025,398 55% 7,338,106 54% (312,708) 1,120,738 14,614,808 TOTAL ALL GROUPS $ 170,895,733 $ 77,512,700 52% 85,816,894 $ 37% (8,304,194) $ $ 25,877,062 $ 136,714,476 For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.
4 CITY COUNCIL STAFF REPORT
MEETING DATE: March 6, 2024
PREPARED BY:
Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager
RESCIND AWARD OF COMMUNITY PARK DG PATHWAYS PROJECT
AND AWARD TO NEXT LOWEST BIDDER
RECOMMENDATION(S)
1. Rescind Award of Decomposed Granite (DG) Pathways Project to Angkor Engineering, Inc. in the amount of $51,825 and contingency funds not to exceed $25,913; and
2. Award DG Pathways Project to Always Paving, Inc. in the amount of $56,100 and contingency funds not to exceed $28,050; and
3. Authorize the City Manager to execute and administer that certain construction contract with Always Paving, Inc.
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
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:
The purpose of this item is to provide the City Council with an opportunity to consider rescinding the award of the contract to Angkor Engineering, Inc. in the amount of $51,825 to complete the installation of the two new decomposed granite (DG) pathways within Community Park, and to then award the contract to the next lowest responsive responsible bidder, Always Paving, Inc. in the amount of $56,100.
On January 17, 2024, the City Council awarded a contract for the Community Park DG Pathways project to Angkor Engineering, Inc. in the amount of $51,825. After the award
4 was made, Angkor Engineering, Inc. did not provide the signed contract, insurance certificates, or the required payment and performance bonds within the 10-day window for submitting the documents. The City granted the contractor an initial extension to provide the required documents through January 30, 2024. On February 6, 2024, Angkor Engineering, Inc. informed the City that they were unable to provide the necessary performance and payment bonds with their surety and requested an extension of time to obtain bonds from another surety.
On February 6, 2024, staff provided Angkor Engineering with an additional extension to February 21, 2024. At that time, staff also confirmed that if Angkor Engineering, Inc. was unable to fulfill its contractual obligation to provide the signed contract, bonds, and insurance as guaranteed by their bid security in the form of a cashier's check for $5,200, the City would enforce the provision for Bid Security and deposit the check into a City account. Furthermore, Angkor Engineering, Inc. was informed that it would be removed as the lowest responsive responsible bidder and the City would award this project to the next lowest responsive and responsible bidder.
Angkor Engineering did not submit the required contract, bonds, and insurance by February 21, 2024. On February 22, 2024, staff notified Angkor Engineering, Inc. that it was being removed as the lowest responsive responsible bidder. Staff then contacted the next lowest bidder, Always Paving, Inc. to confirm that they can enter into a contract with the required documentation to complete the Community Park DG Pathways project.
The scope of the project will remain the same and includes all labor and material necessary to install 4,146 new SF (or 691 linear feet) of DG pathways in Community Park to complete the circular DG pathway that currently exists on the interior borders of Community Park.
Staff recommends that the original award to Angkor Engineering, Inc. be rescinded. It is also recommended that the Council award the Community Park DG Pathways project to the next lowest bidder, Always Paving, Inc. in the amount of $56,100, and authorize the City Manager to execute and administer the agreement. In addition to authorizing the contract amount of $56,100, staff is also recommending a 50% contingency amount of $28,050, which is available for additional trail restoration due to a Per Capita Grant provided by the State of California Parks and Recreation Department. The total authorization with the contingency would be $84,150.
COMMUNITY ENGAGEMENT:
Inform
The DG Pathways project will be scheduled for spring 2024. Before the installation begins, information on the closure will be shared with Community members via social media posts and email communications to residents.
ALTERNATIVE ACTIONS:
The City Council could decide not to approve this project, and direct staff to pursue an alternative approach to creating new pathways in Community Park. Postponing this work is not recommended as the new DG pathways will provide a safer path for
4 residents to walk through and around Community Park.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council previously awarded the Community Park DG Pathways project to Angkor Engineering, Inc. at its January 17, 2024 meeting.
FISCAL AND RESOURCE IMPACT:
If approved, the total funding authorization for the new contract with Always Paving, Inc. will be $84,150, which includes the contract amount of $56,100, and a 50% contingency of $28,050. The large contingency will support completing additional portions of the Community Park DG trail as Per Capita Grant funds are available for the potential additional work. This entire project is eligible for State grant fund reimbursement.
The original total funding authorization for the Angkor Engineering, Inc. contract was $77,738. The difference between the original and revised authorization amounts is $6,412. A portion of this can be covered by the $5,200 cashier's check that Angkor Engineering, Inc. submitted as bid security.
CEQA (California Environmental Quality Act):
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.
Community Park DG Pathways Project CONTRACT
CSD2024-007 Page 1
Version: July 2022
CONTRACT
This public works contract (“Contract”) is entered into by and between the City of Morgan Hill (“City”) and Always Paving, Inc., a California Corporation (“Contractor”) for work on the Community Park DG Pathways Project (“Project”).
The parties agree as follows:
1. Award of Contract. In response to the Notice Inviting Informal Bids, Contractor has submitted a Bid Proposal to perform work on the Project, and on _____________________, 20___, (Contract Date) City authorized award of this Contract to Contractor for the amount of Contractor’s bid.
2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the following:
2.1 Notice Inviting Informal Bids;
2.2 Instructions to Bidders;
2.3 Addenda, if any;
2.4 Bid Proposal and attachments thereto;
2.5 Contract;
2.6 Payment and Performance Bonds;
2.7 General Conditions;
2.8 Special Conditions;
2.9 Project Drawings and Specifications;
2.10 Change Orders, if any;
2.11 Notice of Award;
2.12 Notice to Proceed;
2.13 And the following: No other documents
3. Contractor’s Obligations. Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents. 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.
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4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor Fifty-Six Thousand One Hundred Dollars ($56,100.00) (the “Contract Price”), in accordance with the payment provisions in the General Conditions. The Contract Price includes all applicable federal, state, and local taxes.
5. Time for Completion. Contractor will fully complete the Work for the Project within 60 calendar days from the commencement date given in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.
6. 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.
7. Labor Code Compliance.
7.1 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.
7.2 Prevailing Wages. This Project 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.gov/DLSR.
7.3 DIR Registration. City will not accept a Bid Proposal from or enter into the Contract with a bidder, without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions.
8. 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 selfinsurance 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.”
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9. 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:
City:
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
Phone: (409) 779-7259
Attn: City Clerk
Email: [email protected]
Copy to:[email protected]
Contractor:
Name: Always Paving, Inc.
Address: 5221 Sussex Place
City/State/Zip: Newark, CA 94560
Phone: (510) 894-1921
Attn: Marco Contreras, Harold Hutson
Email: [email protected]
Copy to: [email protected]
10. General Provisions.
10.1 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.
10.2 Third Party Beneficiaries. There are no intended third-party beneficiaries to this Contract except as expressly provided in the General Conditions or Special Conditions.
10.3 Governing Law and Venue. This Contract will be governed by California law and venue will be in the Superior Court of Santa Clara County, and no other place.
10.4 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.
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Version: July 2022
10.5 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.
10.6 Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two (2) officers of the corporation are required pursuant to California Corporation Code Section 313.
10.7 Electronic Signatures. Unless otherwise prohibited by law or City policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the City.
[Signatures are on the following page.]
Community Park DG Pathways Project PAYMENT BOND
CSD2024-007 Page 1
Version: December 2016
PAYMENT BOND
The City of Morgan Hill (“City”) and Always Paving, Inc. (“Contractor”) have entered into a contract, dated _________________________, 20___ (“Contract”) for work on the Community Park DG Pathways Project (“Project”). The Contract is incorporated by reference into this Payment Bond (“Bond”).
1. General. Under this Bond, Contractor as principal and _______________ __________________________, its surety (“Surety”), are bound to City as obligee in an amount not less than _______________________________ Dollars ($_________________) (“Bond Sum”), under California Civil Code Sections 9550, et seq.
2. Surety’s Obligation. If Contractor or any of its Subcontractors fails to pay any of the persons named in California Civil Code Section 9100 amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of Contractor and its Subcontractors, under California Unemployment Insurance Code Section 13020, with respect to the work and labor, then Surety will pay for the same.
3. Beneficiaries. This Bond inures to the benefit of any of the persons named in California Civil Code Section 9100, so as to give a right of action to those persons or their assigns in any suit brought upon this Bond. Contractor must promptly provide a copy of this Bond upon request by any person with legal rights under this Bond.
4. Duration. If Contractor promptly makes payment of all sums for all labor, materials, and equipment furnished for use in the performance of the Work required by the Contract, in conformance with the time requirements set forth in the Contract and as required by California law, Surety’s obligations under this Bond will be null and void. Otherwise, Surety’s obligations will remain in full force and effect.
5. Waivers. Surety waives any requirement to be notified of alterations to the Contract or extensions of time for performance of the Work under the Contract. Surety waives the provisions of Civil Code Sections 2819 and 2845. City waives requirement of a new bond for any supplemental contract under Civil Code Section 9550. Any notice to Surety may be given in the manner specified in the Contract and delivered or transmitted to Surety as follows:
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Version: December 2016
Attn: _______________________________
Address: ____________________________
City/State/Zip: ________________________
Phone: _____________________________
Fax: _______________________________
Email: ______________________________
6. Law and Venue. This Bond will be governed by California law, and venue for any dispute pursuant to this Bond will be in the Superior Court of Santa Clara County, and no other place. Surety will be responsible for City’s attorneys’ fees and costs in any action to enforce the provisions of this Bond.
7. Effective Date; Execution. This Bond is entered into and is effective on _____________________________, 20___.
SURETY: CONTRACTOR:
s/ _________________________ s/ _________________________ Name: _____________________ Name: _____________________ Title: ______________________ Title: ______________________ (Attach Acknowledgment with Notary
Seal and Power of Attorney)
APPROVED AS TO FORM:
By:_____________________________
Donald A. Larkin, City Attorney
Date:__________________________
END OF PAYMENT BOND
Community Park DG Pathways Project PERFORMANCE BOND
CSD2024-007 Page 1
Version: August 2017
PERFORMANCE BOND
The City of Morgan Hill (“City”) and Always Paving, Inc. (“Contractor”) have entered into a contract, dated _________________________, 20____ (“Contract”) for work on the Community Park DG Pathways Project (“Project”).
The Contract is incorporated by reference into this Performance Bond (“Bond”).
1. General. Under this Bond, Contractor as Principal and _______________ ________________________________________, its surety (“Surety”), are bound to City as obligee for an amount not less than
______________________________ Dollars ($__________________) (the “Bond Sum”). By executing this Bond, Contractor and Surety bind themselves and their respective heirs, executors, administrators, successors and assigns, jointly and severally, to the provisions of this Bond.
2. Surety’s Obligations; Waiver. If Contractor fully performs its obligations under the Contract, including its warranty obligations under the Contract, Surety’s obligations under this Bond will become null and void upon recordation of the notice of completion, provided Contractor has timely provided a warranty bond as required under the Contract. Otherwise, Surety’s obligations will remain in full force and effect until expiration of the one (1) year warranty period under the Contract. Surety waives any requirement to be notified of and further consents to any alterations to the Contract made under the applicable provisions of the Contract Documents, including changes to the scope of Work or extensions of time for performance of Work under the Contract. Surety waives the provisions of Civil Code Sections 2819 and 2845.
3. Application of Contract Balance. Upon making a demand on this Bond, City will make the Contract Balance available to Surety for completion of the Work under the Contract. For purposes of this provision, the Contract Balance is defined as the total amount payable by City to Contractor as the Contract Price minus amounts already paid to Contractor, and minus any liquidated damages, credits, or backcharges to which City is entitled under the terms of the Contract.
4. Contractor Default. Upon written notification from City that Contractor is in default under Article 13 of the Contract General Conditions, time being of the essence, Surety must act within the time specified in Article 13 to remedy the default through one of the following courses of action:
4.1 Arrange for completion of the Work under the Contract by Contractor, with City’s consent, but only if Contractor is in default solely due to its financial inability to complete the Work;
Community Park DG Pathways Project PERFORMANCE BOND
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Version: August 2017
4.2 Arrange for completion of the Work under the Contract by a qualified contractor acceptable to City, and secured by performance and payment bonds issued by an admitted surety as required by the Contract Documents, at Surety’s expense; or
4.3 Waive its right to complete the Work under the Contract and reimburse City the amount of City’s costs to have the remaining Work completed.
5. Surety Default. If Surety defaults on its obligations under the Bond, City will be entitled to recover all costs it incurs due to Surety’s default, including legal, design professional, or delay costs.
6. Notice. Any notice to Surety may be given in the manner specified in the Contract and delivered or transmitted to Surety as follows:
Attn: _______________________________
Address: ____________________________
City/State/Zip: ________________________
Phone: _____________________________
Fax: _______________________________
Email: ______________________________
7. Law and Venue. This Bond will be governed by California law, and venue for any dispute pursuant to this Bond will be in the Superior Court of Santa Clara County, and no other place. Surety will be responsible for City’s attorneys’ fees and costs in any action to enforce the provisions of this Bond.
8. Effective Date; Execution. This Bond is entered into and is effective on __________________________, 20___.
[Signatures are on the following page.]
Community Park DG Pathways Project PERFORMANCE BOND
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Version: August 2017
SURETY: CONTRACTOR:
s/ _________________________ s/ _________________________ Name: _____________________ Name: _____________________ Title: ______________________ Title: ______________________ (Attach Acknowledgment with Notary
Seal and Power of Attorney)
APPROVED AS TO FORM:
By:_____________________________
Donald A. Larkin, City Attorney
Date:__________________________
END OF PERFORMANCE BOND
Community Park DG Pathways Project WARRANTY BOND
CSD2024-007 Page 1
Version: August 2017
WARRANTY BOND
The City of Morgan Hill (“City”) and Always Paving, Inc. (“Contractor”) have entered into a contract, dated _________________________, 20___ (“Contract”) for work on the DG Pathways Project (“Project”). The Contract is incorporated by reference into this Warranty Bond (“Bond”).
1. General. Under this Bond, Contractor as principal and _______________ ____________________________________________________________, its surety (“Surety”), are bound to City as obligee in the maximum amount of __________________________________ Dollars ($_________________) the final Contract Price, (“Bond Sum”).
2. Warranty Period. The Contract requires Contractor to guarantee its work and that of its Subcontractors on the Project, against defects in materials or workmanship which are discovered during the one (1) year period commencing with recordation of the Notice of Completion (the “Warranty Period”).
3. Surety’s Obligations. If Contractor faithfully carries out and performs its guarantee under the Contract, and, on due notice from City, repairs and make good at its sole expense any and all defects in materials and workmanship in the Project which are discovered during the Warranty Period, or if Contractor promptly reimburses City for all loss and damage that City sustains because of Contractor’s failure to makes such repairs in accordance with the Contract requirements, then Surety’s obligations under this Bond will be null and void. Otherwise, Surety’s obligations will remain in full force and effect.
4. Waiver. Surety waives the provisions of Civil Code Sections 2819 and 2845.
5. Notice. Any notice to Surety may be given in the manner specified in the Contract and delivered or transmitted to Surety as follows:
Attn: _______________________________
Address: ____________________________
City/State/Zip: ________________________
Phone: _____________________________
Fax: _______________________________
Email: ______________________________
6. Law and Venue. This Bond will be governed by California law, and any dispute pursuant to this Bond will be in the Superior Court of Santa Clara County, and no other place. Surety will be responsible for City’s attorneys’ fees and costs in any action to enforce the provisions of this Bond.
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Version: August 2017
7. Effective Date; Execution. This Bond is entered into and is effective on _____________________________, 20_________.
SURETY: CONTRACTOR:
s/ _________________________ s/ _________________________ Name: _____________________ Name: _____________________ Title: ______________________ Title: ______________________ (Attach Acknowledgment with Notary
Seal and Power of Attorney)
APPROVED AS TO FORM:
By:_____________________________
Donald A. Larkin, City Attorney
Date:__________________________
END OF WARRANTY BOND
Community Park DG Pathways Project GENERAL CONDITIONS
CSD2024-007 Page 1
Version: January 2024
GENERAL CONDITIONS
Table of Contents:
Article 1 – Definitions ............................................................................................1 Article 2 – Roles and Responsibilities...................................................................5 Article 3 – Contract Documents ............................................................................9 Article 4 – Bonds, Indemnity and Insurance........................................................11 Article 5 – Contract Time ....................................................................................16 Article 6 – Contract Modification .........................................................................21 Article 7 – General Construction Provisions........................................................24 Article 8 – Payment.............................................................................................32 Article 9 – Labor Provisions ................................................................................37 Article 10 – Safety Provisions .............................................................................39 Article 11 – Completion and Warranty Provisions...............................................40 Article 12 – Dispute Resolution...........................................................................43 Article 13 – Suspension and Termination ...........................................................48 Article 14 – Miscellaneous Provisions.................................................................50 Article 1
Definitions
1.1 Definitions. The following definitions apply to all of the Contract Documents unless otherwise indicated. Defined terms and titles of documents are capitalized in the Contract Documents, with the exception of the words “day,” “furnish,” “including,” “install,” “work day” or “working day.” Allowance means an amount included in the Bid Proposal for Work that may or may not be included in the Project, depending on conditions that will not become known until after bids are opened. If the Contract Price includes an Allowance and the cost of performing the Work covered by that Allowance is greater or less than the Allowance, the Contract Price will be increased or decreased accordingly.
Article, as used in these General Conditions, means a numbered Article of the General Conditions, unless otherwise indicated by the context.
Change Order means a written document duly approved and executed by City, which changes the scope of Work, the Contract Price, or the Contract Time.
City means the City of Morgan Hill, acting through its City Council, officers, employees, and authorized representatives.
City Engineer means the City Engineer for the City and his or her authorized delegee(s) designated to oversee and manage the Project on City’s behalf.
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Version: January 2024
Claim means a separate demand by Contractor for change in the Contract Time or Contract Price, that has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been rejected by City, in whole or in part; or a written demand by Contractor objecting to the amount of Final Payment.
Contract means the signed agreement between City and Contractor.
Contract Documents means, collectively, all of the documents listed as such in Section 2 of the Contract, including the Notice Inviting Informal Bids; the Instructions to Bidders; addenda, if any; the Bid Proposal, and attachments thereto; the Contract; the notice of award and notice to proceed; the payment and performance bonds; the General Conditions; the Special Conditions; the Project Drawings and Specifications; any Change Orders; and any other documents expressly made part of the Contract Documents.
Contract Price means the total compensation to be paid to Contractor for performance of the Work, as set forth in the Contract and as amended by Change Order or adjusted for an Allowance. The Contract Price is not subject to adjustment due to inflation or due to the increased cost of labor, material, or equipment following submission of the Bid Proposal. The Contract Price is deemed to include all applicable federal, state, and local taxes.
Contract Time means the number of calendar days for performance of the Work, as set forth in the Contract and as amended by Change Order.
Contractor means the individual, partnership, corporation, or joint-venture who has signed the Contract with City to perform the Work.
Day means a calendar day unless otherwise specified.
Design Professional means the licensed individual(s) or firm(s) retained by City to provide architectural or engineering services for the Project. If no Design Professional has been retained for this Project, any reference to Design Professional is deemed to refer to the Engineer.
Drawings means City-provided plans and graphical depictions of the Project requirements, and does not include Shop Drawings.
Engineer means the City Engineer for the City of Morgan Hill and his or her authorized delegee(s).
Final Completion means Contractor has fully completed all of the Work required by the Contract Documents, including all punch list items, any required commissioning, and has provided all required submittals, including the warranty bond, instructions and manuals, and as-built drawings to City’s satisfaction.
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Version: January 2024
Final Payment means payment to Contractor of the unpaid Contract Price, including release of undisputed retention, less amounts withheld pursuant to the Contract Documents, including liquidated damages, up to one hundred twenty five percent (125%) of the amount of any unreleased stop notice, amounts subject to setoff, up to one hundred fifty percent (150%) of any unresolved thirdparty claim for which Contractor is required to indemnify City, and up to one hundred fifty percent (150%) of any amount in dispute as authorized by Public Contract Code Section 7107.
Furnish means to purchase and deliver to the Worksite designated for installation.
Hazardous Materials means any substance or material identified now or in the future as hazardous under any federal, state, or local law or regulation, or any other substance or material that may be considered hazardous or otherwise subject to statutory or regulatory requirements governing handling, disposal, or cleanup.
Including, whether or not capitalized, means “including, but not limited to,” unless the context requires otherwise.
Inspector means the individual(s) or firm(s) retained by City to inspect the workmanship, materials, and manner of construction of the Project and its components to ensure compliance with the Contract Documents and all applicable codes, regulations, and permits.
Install means to fix in place for materials, and to fix in place and connect for equipment.
Project means the public works project referenced in the Contract.
Project Manager means the individual designated by City to oversee and manage the Project on City’s behalf and may include his or her authorized delegee(s) when Project Manager is unavailable. If no Project Manager has been designated for this Project, any reference to Project Manager is deemed to refer to the Engineer.
RFI means a written request from Contractor for information from City or Design Professional.
Section as used in these General Conditions, means a numbered Section of the General Conditions, unless otherwise indicated by the context.
Shop Drawings means drawings, plan details or other graphical depictions prepared by or on behalf of Contractor, and subject to City approval, which are
Community Park DG Pathways Project GENERAL CONDITIONS
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Version: January 2024
intended to provide details for fabrication, installation, and the like, of items required by or shown in the Drawings and Specifications.
Specifications means the technical, text specifications describing the Project requirements, which are prepared for and incorporated into this Project by or on behalf of City, and does not include the Contract, General Conditions or Special Conditions.
Subcontractor means an individual, partnership, corporation, or joint-venture retained by Contractor directly or indirectly through a subcontract to perform a specific portion of the Work. The term Subcontractor applies to subcontractors, suppliers, fabricators, and equipment lessors of all tiers, unless otherwise indicated by the context.
Technical Specifications means Specifications.
Work means all of the construction and services necessary or incidental to completing the Project in conformance with the requirements of the Contract Documents.
Work Day or Working Day, whether or not capitalized, means a weekday which is not a holiday observed by City.
Worksite means the place or places where the Work is performed.
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Version: January 2024
Article 2
Roles and Responsibilities
2.1 Design Professional.
(A) General. Design Professional, as City’s representative, is responsible for the overall design of the Project, and to the extent authorized by City, may act on City’s behalf to ensure performance of the Work in compliance with the Contract Documents.
(B) Interpretation. Design Professional will decide all questions pertaining to interpretation of the Drawings or Specifications. Design Professional’s decision regarding interpretation of the Drawings or Specifications is final and conclusive.
2.2 Contractor.
(A) General. Contractor must provide all labor, materials, equipment and services necessary to perform and timely complete the Work in strict accordance with the Contract Documents, and in an economic and efficient manner in the best interests of City.
(B) Responsibility for the Work. Contractor is responsible for supervising and directing all aspects of the Work to facilitate the efficient and timely completion of the Work. Contractor is solely responsible for, and required to exercise full control over, construction means, methods, techniques, sequences, procedures, and coordination of all portions of the Work with that of all other Contractors and Subcontractors, except to the extent that the Contract Documents provide other specific instructions. (C) Project Administration. Contractor must provide sufficient and competent administration, staff, and skilled workforce necessary to perform and timely complete the Work in accordance with the Contract Documents. Before starting the Work, Contractor must designate in writing and provide complete contact information, including phone numbers and email address, for the officer or employee in Contractor’s organization who is to serve as Contractor’s primary representative for the Project, and who has authority to act on Contractor’s behalf. A Subcontractor may not serve as Contractor’s primary representative. (D) On-Site Superintendent. Contractor must, at all times during performance of the Work, provide a qualified and competent full-time superintendent, acceptable to City, and assistants, as necessary, who must be physically present at the Project site while any aspect of the Work is being performed. Failure to comply may result in temporary suspension of the Work, at Contractor’s sole expense and with no extension of
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Contract Time, until the superintendent is physically present to supervise the Work. Contractor must provide written notice to City, as soon as practicable, before replacing the superintendent.
(E) Standards; Compliance. Contractor must, at all times, ensure that the Work is performed in a good workmanlike manner following best practices and in full compliance with the Contract Documents and all applicable laws, regulations, codes, standards, and permits. (F) Responsible Party. Contractor is solely responsible to City for the acts or omissions of any party or parties performing portions of the Work or providing equipment, materials or services for or on behalf of Contractor or its Subcontractors. If any person employed by Contractor fails or refuses to comply with the Engineer’s directions regarding the performance of the Work, or is determined by the Engineer to be incompetent to perform the Work, or acts in a disorderly or improper manner at the Worksite, that person may be permanently dismissed from the Project at the request of the Engineer.
(G) Correction of Defects. Contractor must promptly correct, at Contractor’s sole expense, any Work that is determined by City, Project Manager, or the Inspector to be deficient or defective in workmanship, materials, and equipment.
(H) Contractor’s Records. Contractor must maintain all of its records relating to the Project in any form, including paper documents, photos, videos and electronic records. Project records subject to this provision include, but are not limited to, Project cost records and records relating to preparation of Contractor’s bid.
(1) Contractor’s cost records must include all supporting documentation, including original receipts, invoices, and payroll records, evidencing its direct costs to perform the Work, including, but not limited to, costs for labor, materials and equipment. Each cost record should include, at a minimum, a description of the expenditure with references to the applicable requirements of the Contract Documents, the amount actually paid, the date of payment, and whether the expenditure is part of the original Contract Price, related to an executed Change Order, or otherwise categorized by Contractor as extra work.
Contractor’s failure to comply with this provision as to any claimed cost operates as a waiver of any rights to recover the claimed cost.
(2) Contractor must continue to maintain its Project records in an organized manner for a period of four (4) years after City’s
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acceptance of the Project or following termination, whichever occurs first. Subject to prior notice to Contractor, City is entitled to inspect or audit any of Contractor’s Project records relating to the Project or to investigate Contractor’s plant or equipment during Contractor’s normal business hours.
2.3 Subcontractors.
(A) General. All Work which is not performed by Contractor with its own forces must be performed by Subcontractors. City reserves the right to approve or reject any and all Subcontractors proposed to perform the Work.
(B) Contractual Obligations. Contractor must require every Subcontractor to be bound to the provisions of the Contract Documents as they apply to the Subcontractor’s portion(s) of the Work, and to likewise bind their subcontractors or suppliers. Nothing in these Contract Documents creates a contractual relationship between a Subcontractor and City, but City is deemed to be a third-party beneficiary of the contract between Contractor and each Subcontractor.
Copies of subcontracts must be available to the Engineer upon request.
Before a Subcontractor commences Work on the Project, Contractor must provide the Engineer a written statement with the name of the Subcontractor, a description of each portion of the Work performed by the Subcontractor, and the percentage of the overall Work to be performed by the Subcontractor.
(C) Termination. If the Contract is terminated, each Subcontractor’s agreement must be assigned by Contractor to City, subject to the prior rights of any surety, provided that City accepts the assignment by written notification, and assumes all rights and obligations of Contractor pursuant to each such subcontract agreement.
(D) Substitution of Subcontractor. If Contractor requests substitution of a listed Subcontractor under Public Contract Code Section 4107, Contractor is solely responsible for all costs City incurs in responding to the request, including legal fees and costs to conduct a hearing.
2.4 Coordination of Work.
(A) Concurrent Work. City reserves the right to perform or to have performed other work on or adjacent to the Project site while the Work is being performed. Contractor is responsible for coordinating its Work with other work being performed on or adjacent to the Project site, and must avoid hindering, delaying, or interfering with the work of other contractors
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and subcontractors. To the full extent permitted by law, Contractor must hold harmless and indemnify City, Design Professional, and Project Manager against any and all claims arising from or related to Contractor’s avoidable, negligent, or willful hindrance of, delay to, or interference with the work of another contractor or subcontractor.
(B) Defects. Before proceeding with any portion of the Work affected by the construction or operations of others, Contractor must give Project Manager prompt written notification of any defects Contractor discovers which will prevent the proper execution of the Work. Failure to give notice of any such known defects will be deemed acknowledgement by Contractor that the work of others is not defective and will not prevent the proper execution of the Work.
2.5 Submittals. Unless otherwise specified, Contractor must submit to Project Manager for review and approval, all schedules, Shop Drawings, samples, product data and similar submittals required by the Contract Documents, or upon request by Project Manager. Unless otherwise specified, all submittals, including Requests for Information ("RFIs") are subject to the provisions of this Section.
(A) General. Contractor is responsible for ensuring that its submittals are accurate and conform to the Contract Documents.
(B) Time and Manner of Submission. Contractor must ensure that its submittals are prepared and delivered in a manner consistent with the current approved schedule for the Work and within the applicable time specified elsewhere in the Contract Documents, or if no time is specified, in such time and sequence so as not to delay the performance of the Work or completion of the Project.
(C) Required Contents. Each submittal must include the Project name, Contractor’s name and address, the name and address of any Subcontractor or supplier involved with the submittal, the date, and references to applicable Specification section(s) and/or drawing and detail number(s).
(D) Required Corrections. If corrections are required, Contractor must promptly make and submit any required corrections in full conformance with the requirements of this Section.
(E) Effect of Review and Approval. Review and approval of a submittal by City will not relieve Contractor from complying with the requirements of the Contract Documents. Contractor is responsible for any errors in any submittal, and review or approval of a submittal by City is not an assumption of risk or liability by City.
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(F) Enforcement. Any Work performed or material used without prior approval of a required submittal will be performed at Contractor’s risk, and Contractor may be required to bear the costs incident thereto, including the cost of removing and replacing such Work, repairs to other affected portions of the Work, and the cost of additional time or services required of the Design Professional, Project Manager, or Inspector. (G) Excessive RFIs. RFIs will be considered excessive or unnecessary if the Engineer determines that the explanation or response to the RFI is clearly and unambiguously discernable in the Contract Documents. City’s costs to review and respond to excessive or unnecessary RFIs may be deducted from payments otherwise due to Contractor.
Article 3
Contract Documents
3.1 Interpretation of Contract Documents.
(A) Drawings and Specifications. The Drawings and Specifications included in the Contract Documents are complementary. If Work is shown on one but not on the other, Contractor must perform the Work as though fully described on both, consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results. The Drawings and Specifications are deemed to include and require everything necessary and reasonably incidental to completion of the Work, whether or not particularly mentioned or shown. Contractor must perform all work and services and supply all things reasonably related to and inferable from the Contract Documents. In the event of a conflict between the Drawings and Specifications, the Specifications will control.
(B) Duty to Notify. If Contractor becomes aware of any ambiguity, discrepancy, omission, or error in the Drawings or Specifications, Contractor must immediately notify the Design Professional and request clarification of such, by submitting a written request for information (RFI) in the manner specified by City. The Design Professional’s clarifications or interpretations will be final and binding.
(C) Figures and Dimensions. Figures control over scaled dimensions.
(D) Technical or Trade Terms. Any terms that have well-known technical or trade meanings will be interpreted in accordance with those meanings, unless otherwise specifically defined in the Contract Documents.
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(E) Measurements. Contractor must verify all relevant measurements at the Worksite before ordering any material or performing any Work, and will be responsible for the correctness of those measurements.
3.2 Order of Precedence. Information included in one Contract Document but not in another will not be considered a conflict or inconsistency.
Unless otherwise specified in the Special Conditions, in case of any conflict or inconsistency among the Contract Documents, the following order of precedence will apply, beginning from highest to lowest:
(A) Change Orders;
(B) Addenda;
(C) Contract;
(D) Notice to Proceed;
(E) Notice of Award;
(F) Special Conditions;
(G) General Conditions;
(H) Payment and Performance Bonds;
(I) Specifications;
(J) Drawings;
(K) Contractor’s Bid Proposal and attachments;
(L) Notice Inviting Informal Bids;
(M) Instructions to Bidders; and
(N) Any documents prepared by and on behalf of a third party, that were not prepared specifically for this Project, e.g., Caltrans Standard Specifications or Caltrans Special Provisions.
3.3 Caltrans Standard Specifications. Any reference to or incorporation of the Standard Specifications of the State of California, Department of Transportation (“Caltrans”), including “Standard Specifications,” “Caltrans Specifications,” “State Specifications,” or “CSS,” means the most current edition of Caltrans’ Standard Specifications, unless otherwise specified (“Standard Specifications”), including the most current amendments as of the date that Contractor’s bid was submitted for this Project. The following provisions apply to use of or reference to the Standard Specifications:
(A) Limitations. None of the “General Provisions” of the Standard Specifications, i.e., Sections 1 through 9, applies to these Contract Documents with the exception of any specific provisions, if any, which are expressly stated to apply to these Contract Documents.
(B) Conflicts or Inconsistencies. If there is a conflict or inconsistency between any provision in the Standard Specifications and a provision of these Contract Documents, as determined by City, the provision in the Contract Documents will govern.
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(C) Meanings. Terms used in the Standard Specifications are to be interpreted as follows:
(1) Any reference to the “Engineer” is deemed to mean the City Engineer.
(2) Any reference to the “Special Provisions” is deemed to mean the Special Conditions.
(3) Any reference to the “Department” or “State” is deemed to mean City.
3.4 For Reference Only. Contractor is responsible for the careful review of any document, study, or report appended to the Contract Documents solely for informational purposes and identified as “For Reference Only.” Nothing in any document, study, or report so appended and identified is intended to supplement, alter, or void any provision of the Contract Documents. However, Contractor is advised that City or its representatives may be guided by information or recommendations included in such reference documents, particularly when making determinations as to the acceptability of proposed materials, methods, or changes in the Work. Contractor must promptly notify City of any perceived or actual conflict between the Contract Documents and any document provided "For Reference Only."
Article 4
Bonds, Indemnity, and Insurance
4.1 Payment and Performance Bonds. Within ten (10) days following issuance of the notice of award, Contractor is required to provide a payment bond and a performance bond, each in the penal sum of not less than one hundred percent (100%) of the Contract Price, using the bond forms included with the Contract Documents. Each bond must be issued by a surety admitted in California. If an issuing surety cancels the bond or becomes insolvent, within seven (7) days following written notice from City, Contractor must substitute a surety acceptable to City. If Contractor fails to substitute an acceptable surety within the specified time, City may, at its sole discretion, withhold payment from Contractor until the surety is replaced to City’s satisfaction, or terminate the Contract for default.
4.2 Indemnity. To the fullest extent permitted by law, Contractor must indemnify, defend, and hold harmless City, its agents and consultants, and Design Professional (individually, an “Indemnitee,” and collectively the “Indemnitees”) from and against any and all liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees,
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paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in bidding or performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. This indemnity requirement applies to any Liability arising from alleged defects in the content or manner of submission of Contractor’s bid for the Contract. Contractor’s failure or refusal to timely accept a tender of defense pursuant to this provision will be deemed a material breach of this Contract. City will timely notify Contractor upon receipt of any third-party claim relating to the Contract, as required by Public Contract Code Section 9201.
4.3 Insurance. No later than ten (10) days following issuance of the notice of award, Contractor is required to 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 Contractor and its Subcontractors relating to or arising from the performance of the Work, and must remain in full force and effect at all times during the period covered by the Contract until the date of recordation of the notice of completion. 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. If Contractor fails to provide any of the required coverage in full compliance with the requirements of the Contract Documents, City may, at its sole discretion, purchase such coverage at Contractor’s expense and deduct the cost from payments due to Contractor, or terminate the Contract for default. Contractor further understands that City reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to Contractor, at any time as deemed necessary to protect the interests of City.
(A) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. If the City’s Risk Manager determines that the deductibles and/or self-insured retentions are unacceptably high, at City’s option, Contractor must either reduce or eliminate the deductibles and/or self-insured retentions as they apply to City and all required Additional Insured; or must provide a financial guarantee, to City’s satisfaction, guaranteeing payment of losses and related investigation, claim administration, and legal expenses.
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(B) Policies and Limits. The following insurance policies and limits are required for this Contract unless otherwise specified in the Special Conditions:
(1) Commercial General Liability Insurance (“CGL”).
Contractor shall maintain CGL and shall include coverage for liability arising from Contractor’s or its Subcontractor’s acts or omissions in the performance of the Work against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) two million dollars ($2,000,000.00) combined single limit each occurrence and either a general aggregate limit of four million dollars ($4,000,000.00) or a general aggregate limit of two million dollars ($2,000,000.00) as applied on a “per project” or “per location” basis, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
a. CGL policy may not exclude explosion, collapse,
underground excavation hazard, or removal of lateral
support.
b. CGL policy must include contractor’s protected coverage, blanket contractual, and completed operations.
(2) Builder’s Risk Insurance: The Builder’s Risk Insurance policy must be issued on occurrence basis, for all-risk coverage (including Flood and Earthquake) on a one hundred percent (100%) completed value basis on the insurable portion of the Project for the benefit of City.
(3) Workers’ Compensation Insurance and Employer’s
Liability: Contractor shall maintain Workers Compensation coverage, as required by law. The policy must comply with the requirements of the California Workers’ Compensation
Insurance and Safety Act and provide protection 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 Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If Contractor is self-insured, Contractor must provide its Certificate of Permission to SelfInsure, duly authorized by the Department of Industrial Relations.
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(4) Automobile Liability: Contractor shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if Contractor does not own automobiles, then Contractor 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, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
(5) Pollution (Environmental) Liability: If the performance of Contractor’s work or service under this Contract 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 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 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 Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
(6) Professional Liability:
a. If the performance of Contractor’s work or service under this Contract involves professional and/or technical services (examples include, but are not limited to, architects,
engineers, land surveyors, legal services, and appraisers), Contractor 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 Contractor under Contractor’s combined
insurance policies (including any excess or “umbrella”
policies), whichever is greater. Further, if Contractor maintains a claims-made policy, Contractor shall provide written evidence of such insurance to City for at least five (5) years after the completion of work performed under this Contract.
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b. If the performance of Contractor’s work or service under this Contract relates to Information Technology or related
services (examples include, but are not limited to computer programmers, hardware engineers, or other systems
consultants), Contractor 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 Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. (C) Required Endorsements. Contractor must provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:
(1) For all Policies except Builder’s Risk and Professional Liability:
a. “Waiver of Subrogation” endorsements providing that the carrier agrees to waive any right of subrogation it may have against the City of Morgan Hill and City’s elected or
appointed officials, boards, agencies, officers, agents, employees, and volunteers.
(2) General Liability, Automobile, and Pollution Liability:
a. “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 and at least as broad as ISO Form CG 20 37 for completed operations.
b. “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;
(3) General Liability:
a. “Separation of Insureds” endorsements stating that the inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.
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(D) Subcontractors. Contractor must ensure that each Subcontractor is required to maintain the same insurance coverage required under this Section 4.3, with respect to its performance of Work on the Project, including those requirements related to the additional insureds and waiver of subrogation.
(E) Qualification of Insurers. All insurance required pursuant to this Contract 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 “VIII” or better. (F) Certificates. Contractor must 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, Contractor shall promptly furnish City of Morgan Hill with copies of all policies outlined herein. No policy subject to Contractor’s Contract with City may be reduced, canceled, allowed to expire, or materially changed except after thirty (30) days' notice by the insurer to City, unless due to non-payment of premiums, in which case ten (10) days written notice must be made to City. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address as follows:
City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037
4.4 Warranty Bond. As a condition precedent to Final Completion, Contractor must submit a warranty bond, using the form provided by City, to guarantee its Work as specified in Article 11, Completion and Warranty Procedures. The warranty bond must be issued by a surety admitted in California for fifty percent (50%) of the final Contract Price or as otherwise specified in the Contract Documents. If an issuing surety cancels the bond or becomes insolvent, within seven (7) days following written notice from City, Contractor must substitute a surety acceptable to City.
Article 5
Contract Time
5.1 Time is of the Essence. Time is of the essence in Contractor’s performance and completion of the Work, and Contractor must diligently prosecute the Work and complete it within the Contract Time.
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(A) General. Contractor must commence the Work on the date indicated in the notice to proceed, and must fully complete the Work, in strict compliance with all requirements of the Contract Documents, and within the Contract Time.
(B) Rate of Progress. Contractor and its Subcontractors must, at all times, provide workers, materials, and equipment sufficient to maintain the rate of progress necessary to ensure full completion of the Work within the Contract Time. If City determines that Contractor is failing to prosecute the Work at a sufficient rate of progress, City may, in its sole discretion, direct Contractor to provide additional workers, materials, or equipment, or to work additional hours or days without additional cost to City, in order to achieve a rate of progress satisfactory to City. If Contractor fails to comply with City’s directive in this regard, City may, at Contractor’s expense, separately contract for additional workers, materials, or equipment or use City’s own forces to achieve the necessary rate of progress. Alternatively, City may terminate the Contract based on Contractor’s default.
5.2 Schedule Requirements. All schedules must be prepared using standard scheduling software acceptable to City, and must provide schedules in electronic and paper form as requested.
(A) As-Planned (Baseline) Schedule. Within fifteen (15) calendar days following issuance of the notice of award (or as otherwise specified in the Special Conditions), Contractor must submit to City for review and approval an as-planned (baseline) schedule showing in detail how Contractor plans to perform and fully complete the Work within the Contract Time using critical path methodology. The as-planned schedule must include the work of all trades required for the Work, and must be sufficiently comprehensive and detailed to enable progress to be monitored on a day-by-day basis. For each activity, the as-planned schedule must be dated, provided in the format specified in the Contract Documents or as required by City, and must include, at a minimum, a description of the activity, the start and completion dates, and the duration. (B) Progress Schedules. Contractor must submit an updated progress schedule and three (3) week look-ahead schedule, in the format specified by City, for review and approval with each application for a progress payment. The progress schedule must show how the actual progress of the Work to date compared to the as-planned schedule, and must identify any actual or potential impacts to the critical path. (C) Recovery Schedule. If City determines that the Work is more than one (1) week behind schedule, within seven (7) days following written notice of such determination, Contractor must submit a recovery schedule,
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showing how Contractor intends to perform and complete the Work within the Contract Time, based on actual progress to date.
(D) Effect of Approval. Contractor and its Subcontractors must perform the Work in accordance with the most current approved schedule unless otherwise directed by City. City approval of a schedule does not operate to extend the time for completion of the Work or any component of the Work, and will not affect City’s right to assess liquidated damages for Contractor’s unexcused delay in completing the Work within the Contract Time.
(E) Posting. Contractor must at all times maintain a copy of the most current approved progress or recovery schedule posted prominently in its on-site office.
(F) Reservation of Rights. City reserves the right to direct the sequence in which the Work must be performed or to make changes in the sequence of the Work in order to facilitate the performance of work by City or others, or to facilitate City’s use of its property. The Contract Time or Contract Price may be adjusted to the extent such changes in sequence actually increase or decrease Contractor’s time or cost to perform the Work.
(G) Authorized Working Days and Times. Contractor is limited to working Monday through Friday, excluding City of Morgan Hill-observed holidays, during City’s normal business hours, except as expressly provided in the Special Conditions, or as authorized in writing by City. City reserves the right to charge Contractor for additional costs incurred by City due to Work performed on days or during hours not expressly authorized in these Contract Documents, including reimbursement of costs incurred for inspection, testing, and construction management services.
5.3 Delay and Extensions of Contract Time.
(A) Excusable Delay. The Contract Time may be extended if Contractor encounters an unavoidable delay in completing the Work within the Contract Time due to causes completely beyond Contractor’s control, and which Contractor could not have avoided or mitigated through planning, foresight, and diligence (“Excusable Delay”). Grounds for Excusable Delay may include fire, earthquake, acts of terror or vandalism, epidemic, unforeseeable adverse government actions, unforeseeable actions of third parties, encountering unforeseeable hazardous materials, unforeseeable site conditions, suspension for convenience under Article 13, or unusually severe weather.
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(B) Non-Excusable Delay. Excusable Delay does not include delay that is concurrent with non-Excusable Delay, and does not include delay caused by:
(1) weather conditions which are normal for the location of the Project, as determined by reliable records, including monthly rainfall averages, for the preceding ten (10) years;
(2) Contractor’s failure to order equipment and materials sufficiently in advance of the time needed for timely completion of the Work;
(3) Contractor’s failure to provide adequate notification to utility companies for connections or services necessary for the timely performance and completion of the Work;
(4) foreseeable conditions Contractor could have ascertained from reasonably diligent inspection of the Worksite or review of the Contract Documents; or
(5) Contractor’s financial inability to perform the Work, including insufficient funds to pay its Subcontractors or suppliers. (C) Request for Extension of Contract Time. A request for an extension of time and associated delay costs must be submitted in writing to City within ten (10) calendar days of the date the delay is first encountered, even if the duration of the delay is not yet known at that time, or will be deemed waived. In addition to complying with the requirements of this Article 5, the request must be submitted in compliance with the Change Order request procedures in Article 6, below.
Strict compliance with these requirements is necessary to ensure that any delay or delay costs may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project and timely performance of the Work. Any request for an extension of time or delay costs that does not strictly comply with the requirements of Article 5 and Article 6 will be deemed waived.
(1) Required Contents. The request must include a detailed description of the cause(s) of the delay, and must also describe the measures that Contractor has taken to mitigate the delay and/or its effects, including efforts to mitigate the cost impact of the delay, e.g., by workforce management, change in sequencing, etc. If the delay is still ongoing at the time the request is submitted, the request should also include Contractor’s plan for continued mitigation of the delay or its effects.
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(2) Delay Days and Costs. The request must specify the number of days of Excusable Delay claimed, or provide a realistic estimate if the duration of the delay is not yet known. The request must specify the amount of any delay-related costs that are claimed, or provide a realistic estimate if the amount is not yet known. Any estimate of delay duration or cost must be updated in writing and submitted with all required supporting documentation as soon as the actual time and cost is known.
(3) Supporting Documentation. The request must also include any and all supporting documentation necessary to evidence the delay and its actual impacts, including schedule and cost impacts, including a time impact analysis using critical path methodology, and demonstrating unavoidable delay to Final Completion. The time impact analysis must be submitted in a form or format acceptable to City.
(4) Burden of Proof. Contractor has the burden of proving 1) that the delay was an Excusable Delay, as defined above, 2) that Contractor has made reasonable efforts to mitigate the delay and its schedule and cost impacts, 3) that the delay will unavoidably result in delaying Final Completion, and 4) that any delay costs claimed by Contractor were actually incurred and were reasonable under the circumstances.
(5) Recoverable Costs. If Contractor is granted an extension of time for Excusable Delay, recompense for delay costs will be limited to actual, direct, reasonable, and substantiated costs, and will not include home office overhead, or markup for overhead and profit.
(6) Legal Compliance. Nothing in this provision is intended to require the waiver, alteration, or limitation of the applicability of Public Contract Code Section 7102.
(7) No Waiver. Any grant of an extension of time or delay costs due to an Excusable Delay will not operate as a waiver of City’s right to assess liquidated damages for unexcused delay. (8) Dispute Resolution. In the event of a dispute over entitlement to an extension of time or delay costs, Contractor may not stop working pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work. Contractor’s sole recourse for an unresolved dispute based on City’s rejection of a Change Order
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request for an extension of time or delay costs is to comply with the Dispute Resolution provisions set forth in Article 12, below.
5.4 Liquidated Damages. It is expressly understood that if Final Completion is not achieved within the Contract Time, City will suffer damages which are difficult to determine and accurately specify. Pursuant to Public Contract Code section 7203, if Contractor fails to achieve Final Completion within the Contract Time, City may charge Contractor in the amount specified in the Contract for each calendar day that Final Completion is delayed beyond the Contract Time, as liquidated damages and not as a penalty.
(A) Liquidated Damages. Liquidated damages will not be assessed for any Excusable Delay, as set forth above.
(B) Milestones. Liquidated damages will also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents.
(C) Setoff. City is entitled to set off the amount of liquidated damages assessed against any payments otherwise due to Contractor, including setoff against release of retention. If there are insufficient Contract funds remaining to cover the full amount of liquidated damages assessed, City is entitled to recover the balance from Contractor or its performance bond surety.
(D) Occupancy or Use. Occupancy or use of the Project in whole or in part prior to Final Completion does not constitute City’s acceptance of the Project and will not operate as a waiver of City’s right to assess liquidated damages for Contractor’s unexcused delay in achieving Final Completion.
Article 6
Contract Modification
6.1 Changes in Work. City reserves the right to make changes in the Work without invalidating the Contract. City may direct or Contractor may request changes in the Work, and any such changes will be formalized in a Change Order, which may include commensurate changes in the Contract Price or Contract Time as applicable. Contractor must promptly comply with City-directed changes in the Work in accordance with the intent of the original Contract Documents, even if Contractor and City have not yet reached agreement as to adjustments to the Contract Price or Contract Time.
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(A) City-Directed Change. In the event of a dispute over entitlement to or the amount of a change in Contract Time or a change in Contract Price related to a City-directed change, Contractor must perform the Work as directed and may not delay its work or cease work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute.
(B) Contractor’s Obligations. In the event that City and Contractor dispute whether a portion or portions of the Work are already required by the Contract Documents as opposed to changed or extra Work, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute.
(C) Remedy for Non-Compliance. Contractor’s failure to promptly comply with an City-directed change is deemed a material breach of the Contract, and in addition to all other remedies available to it, City may, at its sole discretion, hire another contractor or use its own forces to complete the disputed Work at Contractor’s sole expense, and may deduct the cost from the Contract Price.
(D) Dispute Resolution. Contractor’s sole recourse for an unresolved dispute related to changes in the Work is to comply with the dispute resolution provisions set forth in Article 12, below.
6.2 Contractor Change Order Requests. Contractor must submit a request or proposal for a change in the Work or a change in the Contract Price or Contract Time as a written Change Order request or proposal. (A) Time for Submission. Any request for a change in the Contract Price must be submitted in writing to Project Manager within ten (10) calendar days of the date that Contractor first encounters the circumstances, information or conditions giving rise to the Change Order request, even if the total amount of the requested change in the Contract Price or impact on the Contract Time is not yet known at that time. (B) Required Contents. Any Change Order request or proposal submitted by Contractor must include a complete breakdown of actual or estimated costs and credits, and must itemize labor, materials, equipment, taxes, insurance, and subcontract amounts. Any estimated cost must be updated in writing as soon as the actual amount is known. (C) Required Documentation. All claimed costs must be fully documented, and any related request for an extension of time or delayPage 106 of 235 Community Park DG Pathways Project GENERAL CONDITIONS
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related costs must be included at that time and in compliance with the requirements of Article 5 of the General Conditions.
(D) Required Form. Contractor must use City’s form(s) for submitting all Change Order requests or proposals, unless otherwise specified by City.
(E) Certification. All Change Order requests must be signed by Contractor and must include the following certification:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order request are true and correct. Contractor warrants that this Change Order request is comprehensive and complete, and agrees that any costs, expenses, or time extension request not included herein is deemed waived. Contractor understands that submission of claims which have no basis in fact or which Contractor knows to be false may violate the False Claims Act, as set forth in Government Code Sections 12650 et seq.”
6.3 Adjustments to Contract Price. The amount of any increase or decrease to the Contract Price will be determined based on one (1) of the following methods in the order provided:
(A) Unit Pricing. Amounts previously provided by Contractor in the form of unit prices, either in a bid schedule or schedule of values, will apply if unit pricing has previously been provided in Contractor’s accepted bid schedule or schedule of values for the affected Work; (B) Lump Sum. A mutually agreed upon lump sum;
(C) Time and Materials. On a time and materials basis, which may include a not-to-exceed limit, calculated as the total of the following sums:
(1) All direct labor costs plus fifteen percent (15%) for overhead and profit;
(2) All direct material costs, including sales tax, plus fifteen percent (15%) for overhead and profit;
(3) All direct plant and equipment rental costs, plus fifteen percent (15%) for overhead and profit;
(4) All direct subcontract costs plus ten percent (10%) for overhead and profit; and
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(5) Increased bond or insurance premium costs computed at one- and one-half percent (1½%) of total of the previous four (4) sums.
6.4 Unilateral Change Order. If City disagrees with the amount of compensation or extension of time that Contractor has requested, City may elect to issue a unilateral Change Order, directing performance of the Work, and authorizing a change in the Contract Price or Contract Time in the amount City believes is merited. Contractor’s sole recourse to dispute the terms of a unilateral Change Order is to submit a timely Claim pursuant to Article 12, below.
6.5 Non-Compliance Deemed Waiver. Contractor waives its entitlement to any increase in the Contract Price or Contract Time if Contractor fails to full comply with the provisions of this Article. Contractor will not be paid for unauthorized extra work.
Article 7
General Construction Provisions
7.1 Permits and Taxes.
(A) General. Contractor must obtain and pay for any and all permits, fees, or licenses required to perform the Work, unless otherwise indicated in the Contract Documents. Contractor must cooperate with and provide notifications to government agencies with jurisdiction over the Project, as may be required. Contractor must provide City with copies of all notices, permits, licenses, and renewals required for the Work.
(B) Federal Excise Tax. Contractor must pay for all taxes on labor, material and equipment, except Federal Excise Tax to the extent that City is exempt from Federal Excise Tax.
7.2 Temporary Facilities. Contractor must provide, at Contractor’s sole expense, any and all temporary facilities, including onsite office, sanitary facilities, storage, scaffolds, barricades, walkways, and any other temporary structure required to safely perform the Work along with any utility services incidental thereto.
(A) Standards. Such structures must be safe and adequate for the intended use, and installed and maintained in accordance with all applicable federal, state, and local laws, codes, and regulations. (B) Removal and Repair. Contractor must promptly remove all such temporary facilities when they are no longer needed or upon completion of the Work, whichever comes first. Contractor must promptly repair any
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damage to City’s property caused by the installation, use, or removal of the temporary facilities, and must promptly restore the property to its original or intended condition.
(C) Additional Requirements. Additional provisions pertaining to temporary facilities may be included in the Specifications or Special Conditions.
7.3 Signs. No signs may be displayed on or about City’s property, except signage which is required by law or by the Contract Documents, without City’s prior written approval as to content, size, design, and location.
7.4 Protection of Work and Property.
(A) General. Contractor is responsible at all times for protecting the Work and materials and equipment to be incorporated into the Work from damage until the Notice of Completion has been recorded. Except as specifically authorized by City, Contractor must confine its operations to the area of the Project site indicated in the Drawings. Contractor is liable for any damage caused to City’s real or personal property, the real or personal property of adjacent property owners, or the work or personal property of other contractors working for City.
(B) Unforeseen Conditions. If Contractor encounters facilities, utilities, or other unknown conditions not shown on or reasonably inferable from the Drawings or apparent from inspection of the Project site, Contractor must promptly notify Project Manager, and must avoid taking any action which could cause damage to the facilities or utilities pending further direction from Project Manager. If Project Manager’s subsequent direction to Contractor affects Contractor’s cost or time to perform the Work, Contractor may submit a Change Order request as set forth in Article 6, above.
(C) Support; Adjacent Properties. Contractor must provide, install, and maintain all shoring, bracing, underpinning, etc., necessary to provide support to City’s property and adjacent properties and improvements thereon. Contractor must provide notifications to adjacent property owners as may be required by law.
7.5 Noninterference. Contractor must take reasonable measures to avoid interfering with City’s use of its property at or adjacent to the Project site, including use of roadways, entrances, parking areas, walkways, and structures.
7.6 Materials and Equipment.
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(A) General. Unless otherwise specified, all materials and equipment required for the Work must be new and of the best grade for the intended purpose, and furnished in sufficient quantities to ensure the proper and expeditious performance of the Work. Unless otherwise specified, all materials and equipment required for the Work are deemed to include all components required for complete installation and intended operation, and must be installed in accordance with the manufacturer’s recommendation.
Contractor is responsible for all shipping, handling, and storage costs associated with the materials and equipment required for the Work, and is responsible for protecting the Work and all of the required materials, supplies, tools and equipment at Contractor’s sole cost until City accepts the Project.
(B) City-Provided. If the Work includes installation of materials or equipment to be provided by City, Contractor is solely responsible for the proper examination, handling, storage, and installation of such items in accordance with the Contract Documents. Contractor must promptly notify City of any defects discovered in City-provided materials or equipment. Contractor is solely responsible for any loss of or damage to such items which occurs while the items are in Contractor’s custody and control, the cost of which may be offset from the Contract Price and deducted from any payment(s) due to Contractor.
(C) Intellectual Property Rights. Contractor must, at its sole expense, obtain any authorization required for use of patented or copyright protected materials, equipment, devices or processes that are incorporated into the Work. Contractor’s indemnity obligation in Article 4, applies to any claimed violation of intellectual property rights in violation of this provision.
7.7 Substitutions.
(A) “Or Equal.” Any specification designating a material, product, thing, or service by specific brand or trade name, followed by the words “or equal,” is intended only to indicate quality and type of item or service desired, and Contractor may request use of any equal material, product, thing, or service.
(B) Request for Substitution. A request for substitution must be submitted to Project Manager for approval within the applicable time period provided in the Contract Documents. If no time period is specified, the substitution request may be submitted any time within thirty-five (35) days after the date of award of the Contract, or sufficiently in advance of the time needed to avoid delay of the Work, whichever is earlier.
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(C) Substantiation. All data substantiating the proposed substitute as an “equal” item or service must be submitted with the written request for substitution. Contractor’s failure to timely provide necessary substantiation is ground for rejection of the proposed substitution, without further review. (D) Burden of Proving Equality. Contractor has the burden of proving the equality of the proposed substitution. City has sole discretion to determine whether a proposed substitution is “equal,” and City’s determination is final.
(E) Approval or Rejection. If the proposed substitution is approved, Contractor is solely responsible for any additional costs associated with the substituted item(s). If the proposed substitution is rejected, Contractor must, without delay, install the item specified.
(F) Contractor’s Obligations. City’s review of a proposed substitution will not relieve Contractor from any of its obligations under the Contract Documents. In the event Contractor makes an unauthorized substitution, Contractor will be solely responsible for all resulting cost impacts, including the cost of removal and replacement and the impact to other design elements.
7.8 Testing and Inspection.
(A) General. All materials, equipment, and workmanship used in the Work are subject to inspection by Inspector at all times and locations during construction and/or fabrication. All manufacturers’ application or installation instructions must be provided to the Inspector at least ten (10) days prior to the first such application or installation. Contractor must, at all times, make the Work available for inspection.
(B) Scheduling and Notification. Contractor must schedule all tests required by the Contract Documents in time to avoid any delay to the progress of the Work. Contractor must provide timely notice to all necessary parties as specified in the Contract Documents. (C) Responsibility for Costs. City will bear the initial cost of testing to be performed by independent testing consultants retained by City, subject to the following exceptions:
(1) Contractor will be responsible for the costs of any subsequent tests which are required to substantiate compliance with the Contract Documents, and any associated remediation costs.
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(2) Contractor will be responsible for inspection costs, at City’s established rates, for inspection time lost because the Work is not ready or Contractor fails to appear for a scheduled inspection. (3) In addition, if any portion of the Work which is subject to testing is covered or concealed by Contractor prior to testing, Contractor will bear the cost of making that portion of the Work available for the testing required by the Contract Documents, and any associated repair or remediation costs.
(D) Contractor’s Obligations. Any Work that fails to comply with the requirements of the Contract Documents must be promptly repaired, replaced, or corrected by Contractor, at Contractor’s sole expense, even if that Work was previously inspected or included in a progress payment.
Contractor is solely responsible for any delay occasioned by remediation of noncompliant Work. Inspection of the Work does not in any way relieve Contractor of its obligations to perform the Work as specified. (E) Distant Locations. If required off-site testing or inspection must be conducted at a location more than 100 miles from the Project site, Contractor is solely responsible for the additional travel costs required for testing and/or inspection at such locations.
(F) Final Inspection. The provisions of this Section 7.8 apply to final inspection under Article 11, Completion and Warranty Provisions.
7.9 Project Site Conditions and Maintenance. Contractor must at all times, on a 24-hour basis and at its sole cost, maintain the Project site and staging and storage areas in clean, neat, and sanitary condition and in compliance with all Laws pertaining to safety, air quality, and dust control.
Adequate toilets must be provided, and properly maintained and serviced for all workers on the Project site, located in a suitably secluded area, subject to City’s prior approval. Contractor must also, on a daily basis and at its sole cost, remove and properly dispose of the debris and waste materials from the Project site.
(A) Air Emissions Control. Contractor must not discharge smoke or other air contaminants into the atmosphere in violation of any Laws.
Contractor must comply with all Laws, including the California Air Resources Board’s In-Use Off-Road Diesel-Fueled Fleets Regulation (13 CCR § 2449 et seq.).
(B) Dust and Debris. Contractor must minimize and confine dust and debris resulting from the Work. Contractor must abate dust nuisance by cleaning, sweeping, and immediately sprinkling with water excavated areas of dirt or other materials prone to cause dust, and within one hour
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after the Engineer notifies Contractor that an airborne nuisance exists.
The Engineer may direct that Contractor provide an approved waterspraying truck for this purpose. If water is used for dust control, Contractor will only use the minimum necessary. Contractor must take all necessary steps to keep wastewater out of streets, gutters, or storm drains. See Section 7.19, Environmental Control. If City determines that the dust control is not adequate, City may have the work done by others and deduct the cost from the Contract Price. Contractor will immediately remove any excess excavated material from the Project site and any dirt deposited on public streets.
(C) Clean up. Before discontinuing Work in an area, Contractor must clean the area and remove all rubbish debris and waste along with the construction equipment, tools, machinery, waste, and surplus materials.
Contractor must, at all times, minimize and confine dust and debris resulting from construction activities.
(1) Except as otherwise specified, all excess Project materials, and the materials removed from existing improvements on the Project site with no salvage value or intended reuse by City, will be Contractor’s property.
(2) Hauling trucks and other vehicles leaving the Project site must be cleaned of exterior mud or dirt before traveling on City streets.
Materials and loose debris must be delivered and loaded to prevent dropping materials or debris. Contractor must immediately remove spillage from hauling on any publicly traveled way. Streets affected by Work on the Project must be kept clean by street sweeping. (D) Disposal. Contractor must dispose of all Project debris and waste materials in a safe and legal manner. Contractor may not burn or bury waste materials on the Project site. Contractor will not allow any dirt, refuse, excavated material, surplus concrete or mortar, or any associated washings, to be disposed of onto streets, into manholes or into the storm drain system.
(E) Completion. At the completion of the Work, Contractor must remove from the Project site all of its equipment, tools, surplus materials, waste materials and debris., presenting a clean and neat appearance.
Before demobilizing from the Project site, Contractor must ensure that all surfaces are cleaned, sealed, waxed, or finished as applicable, and that all marks, stains, paint splatters, and the like have been properly removed from the completed Work and the surrounding areas. Contractor must ensure that all parts of the construction are properly joined with the previously existing and adjacent improvements and conditions. Contractor must provide all cutting, fitting, and patching needed to accomplish that
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requirement. Contractor must also repair or replace all existing improvements that are damaged or removed during the Work, both on and off the Project site, including curbs, sidewalks, driveways, fences, signs, landscaping, utilities, street surfaces and structures. Repairs and replacements must be at least equal to the previously existing improvements, and the condition, finish and dimensions must match the previously existing improvements. Contractor must restore to original condition all property or items that are not designated for alteration under the Contract Documents and leave each Worksite clean and ready for occupancy or use by City.
(F) Non-Compliance. If Contractor fails to comply with its maintenance and cleanup obligations within two business days following written notification from any City or its representative clean up order, City may, acting in its sole discretion, elect to suspend the Work until the condition(s) is corrected with no increase in the Contract Time or Contract Price, or undertake appropriate cleanup measures without further notice and deduct the cost from any amounts due or to become due to Contractor.
7.10 Instructions and Manuals. Contractor must provide three (3) copies each of all instructions and manuals required by the Contract Documents, unless otherwise specified. These must be complete as to drawings, details, parts lists, performance data, and other information that may be required for City to easily maintain and service the materials and equipment installed for this Project.
(A) Submittal Requirements. All manufacturers’ application or installation instructions must be provided to the Inspector at least ten (10) days prior to the first such application. The instructions and manuals, along with any required guarantees, must be delivered to City for review. (B) Instruction of Personnel. Contractor or its Subcontractors must instruct City’s personnel in the operation and maintenance of any complex equipment as a condition precedent to Final Completion, if required in the Contract Documents.
7.11 As-built Drawings. Contractor and its Subcontractors must maintain on the Worksite a separate complete set of the Drawings which will be used solely for the purpose of recording changes made in any portion of the Work in order to create accurate record drawings at the end of the Project. (A) Duty to Update. The as-built drawings must be updated as changes occur, on a daily basis if necessary. Progress payments may be
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delayed, in whole or in part, until the as-built drawings are brought up to date to the satisfaction of City. Actual locations to scale must be identified on the as-built drawings for all runs of mechanical and electrical work, including all site utilities, etc., installed underground, in walls, floors, or otherwise concealed. Deviations from the original Drawings must be shown in detail. The location of all main runs, whether piping, conduit, ductwork, drain lines, etc., must be shown by dimension and elevation. (B) Final Completion. Contractor must verify that all changes in the Work are depicted in the as-built drawings and must deliver the complete set of as-built drawings to City for review and approval as a condition precedent to Final Completion.
7.12 Existing Utilities. As required by Government Code Section 4215, if, during the performance of the Work, Contractor discovers utility facilities not identified by City in the Contract Documents, Contractor must immediately provide written notice to City and the utility. City assumes responsibility for the timely removal, relocation, or protection of existing main or trunkline utility facilities located on the Project site, if those utilities are not identified in the Contract Documents. Contractor will be compensated in accordance with the provisions of the Contract Documents for the costs of locating, repairing damage not due to Contractor’s failure to exercise reasonable care, and removing or relocating such utility facilities not indicated in the Drawings or Specifications with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Contractor will not be assessed liquidated damages for delay in completion of the Work, to the extent such delay was caused by City’s failure to provide for removal or relocation of the utility facilities.
7.13 Notice of Excavation. Government Code Section 4216.2, requires that except in an emergency, Contractor must contact the appropriate regional notification center, or Underground Services Alert at 800-642-2444 (for Northern California), at least two (2) working days, but not more than fourteen (14) calendar days before starting any excavation if the excavation will be conducted in an area that is known, or reasonably should be known, to contain subsurface installations, and if practical, Contractor must delineate with white paint or other suitable markings the area to be excavated.
7.14 Trenching and Excavations.
(A) Duty to Notify. Contractor must promptly, and before the following conditions are disturbed, provide written notice to City if Contractor finds any of the following conditions:
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(1) Material that Contractor believes may be a hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with the provisions of existing law; (2) Subsurface or latent physical conditions at the Worksite differing from those indicated by information about the Worksite made available to bidders prior to the deadline for submitting bids; or
(3) Unknown physical conditions at the Worksite of any unusual nature, materially different from those ordinarily encountered and generally recognized as inherent in work of the character required by the Contract Documents.
(B) City Investigation. City will promptly investigate the conditions and if City finds that the conditions do materially differ or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, City will issue a Change Order.
(C) Disputes. In the event that a dispute arises between City and Contractor regarding any of the conditions specified in subsection (A) above, Contractor will not be excused from any scheduled completion date provided for in the Contract Documents, but must proceed with all Work to be performed under the Contract. Contractor will retain any and all rights provided either by the Contract or by law which pertain to the resolution of disputes between Contractor and City.
7.15 Trenching of Five Feet or More. As required by Labor Code Section 6705, if the Contract Price exceeds Twenty Five Thousand Dollars ($25,000.00) and the Work includes the excavation of any trench or trenches of five (5) feet or more in depth, a detailed plan must be submitted to City or its civil or structural engineer, for acceptance in advance of the excavation. The detailed plan must show the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation. If the plan varies from the shoring system standards, it must be prepared by a registered civil or structural engineer. Use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders is prohibited.
7.16 New Utility Connections. City will pay connection charges and meter costs for new permanent utilities required by the Contract Documents, if any. Contractor must notify City sufficiently in advance of the time needed
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to request service from each utility provider so that connections and services are initiated in accordance with the Project schedule.
7.17 Lines and Grades. Contractor is required to use any benchmark provided by the Engineer. Unless otherwise specified in the Contract Documents, Contractor must provide all lines and grades required to execute the Work.
7.18 Historic or Archeological Items.
(A) Contractor’s Obligations. Contractor must ensure that all persons performing Work at the Project site are required to immediately notify Project Manager, upon discovery of any potential historic or archeological items, including historic or prehistoric ruins, burial grounds, archaeological or vertebrate paleontological site, including fossilized footprints or other archeological, paleontological or historical feature on the Project site (collectively, “Historic or Archeological Items”). (B) Discovery; Cessation of Work. Upon discovery of any potential Historic or Archeological Items, Work must be stopped within an eightyfive (85) foot radius of the find and may not resume until authorized in writing by City. If required by City, Contractor must assist in protecting or recovering the Historic or Archeological Items, any such assistance to be compensated as extra work on a time and materials basis under Article 6, Contract Modification. Any suspension of Work required due to discovery of Historic or Archeological Items will be treated as a suspension for convenience under Article 13.
7.19 Environmental Control. Contractor must not pollute any drainage course or its tributary inlets with fuels, oils, bitumens, acids, insecticides, herbicides or other harmful materials. Contractor and its Subcontractors must at all times in the performance of the Work comply with all applicable federal, state, and local laws and regulations concerning pollution of waterways. (A) Stormwater Permit. Contractor must comply with all applicable conditions of the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Stormwater Runoff Associated with Construction Activity (“Stormwater Permit”).
(B) Contractor’s Obligations. If required for the Work, a copy of the Stormwater Permit is on file in City’s principal administrative offices, and Contractor must comply with the same without adjustment of the Contract Price or the Contract Time. Contractor must timely and completely submit required reports and monitoring information required by the conditions of the Stormwater Permit, Contractor must comply with all other applicable
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state, municipal or regional laws, ordinances, rules or regulations governing discharge of stormwater, including applicable municipal stormwater management programs.
Article 8
Payment
8.1 Schedule of Values. Prior to submitting its first application for payment, Contractor must prepare and submit to Project Manager a schedule of values apportioned to the various divisions and phases of the Work. Each line item contained in the schedule of values must be assigned a value such that the total of all items equals the Contract Price. The items must be sufficiently detailed to enable accurate evaluation of the percentage of completion claimed in each application for payment, and the assigned value consistent with any itemized or unit pricing submitted with Contractor’s bid.
8.2 Progress Payments. Following the last day of each month, or as otherwise required by the Special Conditions or Specifications, Contractor will submit to Project Manager a monthly application for payment for Work performed during the preceding month based on the estimated value of the Work performed during that preceding month.
(A) Application for Payment. Each application for payment must be itemized to include labor, materials, and equipment incorporated into the Work, and materials and equipment delivered to the Worksite, as well as authorized and approved Change Orders. Each pay application must be supported by Contractor’s schedule of values and any other substantiating data required by the Contract Documents.
Each application for payment shall be accompanied by completed “Contract Balance Form,” a copy of which is provided at the end of Article 8.
(B) Payment of Undisputed Amounts. City will pay the undisputed amount due, as certified by the Design Professional, within thirty (30) days after Contractor has submitted a complete and accurate payment application, subject to Public Contract Code Section 20104.50. City will deduct a percentage from each progress payment as retention, as set forth in Section 8.5, below, and may deduct additional amounts as set forth in Section 8.3, below.
8.3 Adjustment of Payment Application. City may adjust or reject a payment application, including application for Final Payment, in whole or in part, based upon any of the circumstances listed below. Contractor will be notified in writing of the basis for the adjustment, and will be promptly
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paid once the basis for that adjustment has been remedied and no longer exists.
(A) Contractor’s unexcused failure to perform the Work as required by the Contract Documents, including correction or completion of punch list items;
(B) Loss or damage caused by Contractor or its Subcontractor(s) arising out of or relating to performance of the Work;
(C) Contractor’s failure to pay its Subcontractors and suppliers when payment is due;
(D) Failure to timely correct rejected, nonconforming, or defective Work;
(E) Unexcused delay in performance of the Work;
(F) Any unreleased stop notice, retained as one hundred twenty five percent (125%) of the amount claimed;
(G) Failure to submit any required schedule or schedule update in the manner and within the time specified in the Contract Documents:
(H) Failure to maintain or submit as-built documents in the manner and within the time specified in the Contract Documents;
(I) Work performed without approved Shop Drawings, when approved Shop Drawings are required before proceeding with the Work; (J) Contractor’s payroll records are delinquent or inadequate; and (K) Any other costs or charges that may be offset against payments due, as provided in the Contract Documents, including liquidated damages.
8.4 Acceptance of Work. Neither City’s payment of progress payments nor its partial or full use or occupancy of the Project constitutes acceptance of any part of the Work.
8.5 Retention. City will retain five percent (5%) of the amount due on each progress payment, or the percentage stated in the Notice Inviting Informal Bids, whichever is greater, as retention to ensure full and satisfactory performance of the Work.
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(A) Substitution of Securities. As provided by Public Contract Code Section 22300, Contractor may request in writing that it be allowed, at its sole expense, to substitute securities for the retention withheld by City.
Any escrow agreement entered into pursuant to this provision must fully comply with Public Contract Code Section 22300, and will be subject to approval as to form by City’s legal counsel.
(B) Release of Undisputed Retention. All undisputed retention, less any amounts that may be assessed as liquidated damages, retained for stop notices, or otherwise withheld under Section 8.3 or 8.6 will be released as Final Payment to Contractor no sooner than thirty five (35) days following recordation of the notice of completion, and no later than sixty (60) days following acceptance of the Project by City’s governing body or authorized designee, or, if the Project has not been accepted, no later than sixty (60) days after the Project is otherwise considered complete under Public Contract Code Section 7107(c).
8.6 Setoff. City is entitled to set off any amounts due from Contractor against any payments due to Contractor. City’s entitlement to setoff includes progress payments as well as Final Payment and release of retention.
8.7 Payment to Subcontractors and Suppliers. Each month, Contractor must promptly pay each Subcontractor and supplier the value of the portion of labor, materials, and equipment incorporated into the Work or delivered to the Worksite by the Subcontractor or supplier during the preceding month. Such payments must be made in accordance with the requirements of the law, and those of the Contract Documents and applicable subcontract or supplier contract.
(A) Withholding for Stop Notice. City will withhold one hundred twenty five percent (125%) of the amount claimed by an unreleased stop notice, a portion of which may be retained by City for the costs incurred in handling the stop notice claim, including attorneys’ fees and costs, as authorized by law.
(B) Joint Checks. City reserves the right to issue joint checks made payable to Contractor and its Subcontractors or suppliers. As a condition to release of payment by a joint check, the joint check payees may be required to execute a joint check agreement in a form provided or approved by City. The joint check payees will be jointly and severally responsible for the allocation and disbursement of funds paid by joint check. Payment by joint check will not be construed to create a contractual relationship between City and a Subcontractor or supplier of any tier beyond the scope of the joint check agreement.
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8.8 Final Payment. Final Completion, acceptance of the Work by City, and recordation of the Notice of Completion, and any release required by the Contract Documents are conditions precedent to Final Payment and release of undisputed retention, as set forth above. Contractor’s application for Final Payment must comply with the requirements for submitting an application for a progress payment as stated in Section 8.2, above. Corrections to previous progress payments, including adjustments to estimated quantities for unit priced items, may be included in the Final Payment. The date of Final Payment is deemed to be effective on the date that City acts to release retention as final payment to Contractor, or otherwise provides written notice to Contractor of Final Payment. If the amount due from Contractor to City exceeds the amount of Final Payment, City retains the right to recover the balance from Contractor or its sureties.
8.9 Release of Claims. City may, at any time, require that payment of the undisputed portion of any progress payment or Final Payment be contingent upon Contractor furnishing City with a written release of all claims against City arising from or related to the portion of Work covered by those undisputed amounts. Any disputed amounts may be specifically excluded from the release.
8.10 Warranty of Title. Contractor warrants that title to all work, materials, or equipment incorporated into the Work and included in a request for payment will pass over to City free of any claims, liens, or encumbrances upon payment to Contractor.
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CONTRACT BALANCE FORM
Project Name: _____________________________________
Note: A detailed invoice MUST be attached to this Contract Balance Form.
CONTRACTOR NAME: ____________________________ DATE: ______________________________ MAILING ADDRESS: ______________________________ TELEPHONE NO.: ____________________ ______________________________ FAX NO.: ___________________________ ______________________________ PROJECT NO.: ______________________ INVOICE NO.: _______________________
1. ORIGINAL CONTRACT AMOUNT: $________
2. APPROVED CHANGE ORDERS TOTAL: $________
3. REVISED CONTRACT AMOUNT: (1+2) $________
4. PREVIOUS BALANCE PAID: $________
5. REMAINING BALANCE: (3-4) $________
6. CURRENT PROGRESS PAYMENT DUE: $________
(before retention)
7. 5% RETENTION FROM WORK DONE: (-)$________
8. CURRENT BALANCE DUE: (6-7) $________
9. REMAINING BALANCE OF REVISED
CONTRACT AMOUNT: (5-8) $________
(including retention)
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Article 9
Labor Provisions
9.1 Discrimination Prohibited. Discrimination against any prospective or present employee engaged in the Work on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status is strictly prohibited. Contractor and its Subcontractors are required to comply with all applicable Federal and California laws including the California Fair Employment and Housing Act (Government Code Sections 12900 et seq.), Government Code Section 11135, and Labor Code Sections 1735, 1777.5, 1777.6, and 3077.5.
9.2 Labor Code Requirements.
(A) Eight Hour Day. Under Labor Code Section 1810, eight (8) hours of labor constitute a legal day’s work under this Contract. (B) Penalty. Under Labor Code Section 1813, Contractor will forfeit to City as a penalty, the sum of Twenty Five Dollars ($25.00) for each day during which a worker employed by Contractor or any Subcontractor is required or permitted to work more than eight (8) hours in any one (1) calendar day or more than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815. (C) Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference.
(D) Notices. Under Labor Code Section 1771.4, Contractor is required to post all job site notices prescribed by law or regulation.
9.3 Prevailing Wages. Each worker performing Work under this Contract that is covered under Labor Code Section 1720, including cleanup at the Project site, must be paid at a rate not less than the prevailing wage as defined in Sections 1720.3, 1771, and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr.
Contractor must post a copy of the applicable prevailing rates at the Worksite.
(A) Penalties. Under Labor Code Section 1775, Contractor and any Subcontractor will forfeit to City as a penalty up to Two Hundred Dollars ($200.00) for each calendar day, or portion a day, for each worker paid less than the applicable prevailing wage rate. Contractor must also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.
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(B) Federal Requirements. If this Project is subject to Federal prevailing wage requirements in addition to California prevailing wage requirements, Contractor and its Subcontractors are required to pay the higher of the current applicable prevailing wage rates under federal law, available online at http://www.access.gpo.gov/davisbacon/ca.html.
9.4 Payroll Records. Contractor must comply with the provisions of Labor Code Sections 1771.4, 1776, and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.
(A) Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct.
(2) Contractor or Subcontractor has complied with the
requirements of Labor Code Sections 1771, 1811, and 1815 for any Work performed by its employees on the Project.
(B) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, or to the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards of the Department of Industrial Relations, and as further provided by the Labor Code.
(C) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or Subcontractor has ten (10) days in which to comply with requirements of this section. If Contractor or Subcontractor fails to do so within the ten (10) day period, Contractor or Subcontractor will forfeit a penalty of One Hundred Dollars ($100.00) per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from progress payments then due.
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9.5 Labor Compliance. Under Labor Code section 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.
9.6 Wage Theft Prevention. Compliance with Wage and Hour Laws:
Contractor, 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 Contractor and/or its Subcontractors: BY SIGNING
THIS AGREEMENT, CONTRACTOR 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 CONTRACTOR
OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONTRACTOR 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 Contractor or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or Contractor learns of such a judgment, decision, or order that was not previously disclosed, Contractor 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. Contractor 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 Contractor 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 Contractor or any subcontractor it employs to perform work under this Agreement has been found in violation of any
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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 Contractor 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.
Article 10
Safety Provisions
10.1 Safety Precautions and Programs. Contractor and its Subcontractors are fully responsible for safety precautions and programs, and for the safety of persons and property in the performance of the Work.
Contractor and its Subcontractors must comply with all applicable safety laws, rules and regulations and seek to avoid injury, loss, or damage to persons or property by taking reasonable steps to protect its employees and other persons at the Worksite, materials and equipment stored on or off site, and property at or adjacent to the Worksite.
(A) Reporting Requirements. Contractor must immediately provide a written report to City of all recordable accidents and injuries occurring at the Worksite. If Contractor is required to file an accident report with a government agency, Contractor will provide a copy of the report to City. (B) Legal Compliance. Contractor’s safety program must comply with the applicable legal and regulatory requirements. Contractor must provide City with copies of all notices required by law or regulation. (C) Contractor’s Obligations. Any damage or loss caused by Contractor arising from the Work which is not insured under property insurance must be promptly remedied by Contractor.
(D) Remedies. If City determines, in its sole discretion, that any part of the Work or Worksite is unsafe, City may, without assuming responsibility for Contractor’s safety program, require Contractor or its Subcontractor to cease performance of the Work or to take corrective measures to City’s satisfaction. If Contractor fails to promptly take the required corrective
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measures, City may perform them and deduct the cost from the Contract Price. Contractor agrees it is not entitled to submit a Claim for damages, for an increase in Contract Price, or for a change in Contract Time based on Contractor’s compliance with City’s request for corrective measures pursuant to this provision.
10.2 Hazardous Materials. Unless otherwise specified, this Contract does not include the removal, handling, or disturbance of any asbestos or other Hazardous Materials. If Contractor encounters materials on the Worksite that Contractor reasonably believes to be asbestos or other Hazardous Materials, and the asbestos or other Hazardous Materials have not been rendered harmless, Contractor may continue Work in unaffected areas reasonably believed to be safe, but must immediately cease work on the area affected and report the condition to City. No asbestos, asbestoscontaining products or other Hazardous Materials may be used in performance of the Work.
10.3 Material Safety. Contractor must maintain Material Safety Data Sheets (“MSDS”) at the Worksite, as required by law, for materials or substances used or consumed in the performance of the Work. The MSDS will be accessible and available to Contractor’s employees, Subcontractors, and City.
(A) Contractor Obligations. Contractor is solely responsible for the proper delivery, handling, use, storage, removal, and disposal of all materials brought to the Worksite and/or used in the performance of the Work.
(B) Labeling. Contractor must ensure proper labeling on any material brought onto the Worksite so that any persons working with or in the vicinity of the material may be informed as to the identity of the material, any potential hazards, and requirements for proper handling, protections, and disposal.
Article 11
Completion and Warranty Provisions
11.1 Final Completion.
(A) Final Inspection. When the Work required by this Contract is fully performed, Contractor must provide written notification to Project Manager requesting final inspection. Based on this inspection, the Design Professional will prepare a punch list of items that are incomplete, incorrectly installed, or not operating as required by the Contract Documents. The omission of any such item from this punch list will not
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relieve Contractor from fulfilling all requirements of the Contract Documents.
(B) Punch List. City will promptly deliver the punch list to Contractor and will specify the time by which all of the punch list items must be completed or corrected. The punch list may include City’s estimated cost to complete each punch list item if Contractor fails to do so within the specified time.
(C) Requirements for Final Completion. Final Completion will be achieved upon completion or correction of all punch list items, as verified by inspection, and upon satisfaction of all other Contract requirements, including any commissioning required under the Contract Documents, and submission of all final submittals, including a warranty bond as required under Section 4.4, instructions and manuals as required under Section
7.10, and as-built drawings as required under Section 7.11, all to City’s satisfaction. Once Final Completion is achieved, and the Project has been formally accepted by City, City will file a notice of completion with the County Recorder.
(D) Final Payment. Final Payment and release of retention, less any sums withheld pursuant to the provisions of the Contract Documents, will not be made sooner than thirty-five (35) days after recordation of the notice of completion. If Contractor fails to complete all of the punch list items within the specified time, City may elect to accept the Project and record the notice of completion, and withhold up to one hundred fifty percent (150%) of City’s estimated cost to complete the remaining items from Final Payment.
11.2 Warranty.
(A) General. Contractor warrants that all materials and equipment will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Contractor further warrants that the Work will be free from material defects not intrinsic in the design or materials required in the Contract Documents. At City’s request, Contractor must furnish satisfactory evidence of the quality and type of materials and equipment furnished. Contractor’s warranty does not extend to damage caused by normal wear and tear, or improper use or maintenance.
(B) Warranty Period. Contractor’s warranty must guarantee its Work for a period of one (1) year from the date of recordation of the notice of completion (the “Warranty Period”), except when a longer guarantee is provided by a supplier or manufacturer or is required by the Specifications or Special Conditions. Contractor must obtain from its Subcontractors,
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suppliers and manufacturers any special or extended warranties required by the Contract Documents.
(C) Warranty Documents. As a condition precedent to acceptance, Contractor must supply City with all warranty and guarantee documents relevant to equipment and materials incorporated into the Work and guaranteed by their suppliers or manufacturers.
(D) Subcontractors. The warranty obligations in the Contract Documents apply to Work performed by Contractor and its Subcontractors, and Contractor expressly agrees to act as co-guarantor of such Work.
(E) Contractor’s Obligations. Upon written notice from City to Contractor of any defect in the Work discovered during the Warranty Period, Contractor or its responsible Subcontractor must promptly correct the defective Work at its own cost. Contractor’s obligation to correct defects discovered during the Warranty Period will continue past the expiration of the Warranty Period as to any defects in Work for which Contractor was notified prior to expiration of the Warranty Period. (F) City’s Remedies. If Contractor and/or its responsible Subcontractor fails to correct defective Work within ten (10) days following notice by City, or sooner, if required by the circumstances, Contractor expressly agrees that City may correct the defects to conform with Contract Documents at Contractor’s sole expense, and Contractor agrees to reimburse City for its costs within thirty (30) days following City’s submission of a demand for payment pursuant to this provision. If City is required to initiate legal action to compel Contractor’s compliance with this provision, and City is the prevailing party in such action, Contractor is solely responsible for all of City’s attorney’s fees and legal costs expended to enforce Contractor’s warranty obligations herein in addition to any and all costs incurred by City to correct the defective Work.
11.3 Use Prior to Final Completion. City reserves the right to occupy or make use of the Project, or any portions of the Project, prior to Final Completion if City has determined that the Project or portion of it is in a condition suitable for the proposed occupation or use, and that it is in its best interest to occupy or make use of the Project, or any portions of it, prior to Final Completion. City will notify Contractor in writing of its intent to occupy or make use of the Project or any portions of the Project, pursuant to this provision.
(A) Non-Waiver. Occupation or use prior to Final Completion will not operate as acceptance of the Work or any portion of it, nor will it operate as a waiver of any of City’s rights or Contractor’s duties pursuant to these
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Contract Documents, and will not affect nor bear on the determination of the time of substantial completion with respect to any statute of repose pertaining to the time for filing an action for construction defect. (B) City’s Responsibility. City will be responsible for the cost of maintenance and repairs due to normal wear and tear with respect to those portions of the Project that are being occupied or used before final completion. The Contract Price or the Contract Time may be adjusted pursuant to the applicable provisions of these Contract Documents if, and only to the extent that, any occupation or use under this Section actually adds to Contractor’s cost or time to perform the Work.
11.4 Substantial Completion. For purposes of determining “substantial completion” with respect to any statute of repose pertaining to the time for filing an action for construction defect, “substantial completion” is deemed to mean the last date that Contractor or any Subcontractor performs Work on the Project prior to recordation of the Notice of Completion, except for warranty work performed under this Article.
Article 12
Dispute Resolution
12.1 Claims. This Article applies to and provides the exclusive procedures for any Claim arising from or related to the Contract or performance of the Work.
(A) Definition. “Claim” means a separate demand by Contractor, submitted in writing, for change in the Contract Time or Contract Price that has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been rejected by City, in whole or in part.
(B) Limitations. A Claim may only include the portion of a previously rejected demand that remains in dispute between Contractor and City.
With the exception of any dispute regarding the amount of money actually paid to Contractor as Final Payment, Contractor is not entitled to submit a Claim demanding a change in the Contract Time or the Contract Price, which has not previously been submitted to City in full compliance with Article 5 and Article 6, and subsequently rejected in whole or in part by City.
(C) Scope of Article. This Article is intended to provide the exclusive procedures for submission and resolution of Claims of any amount, and applies in addition to the provisions of Public Contract Code Section 9204 and Sections 20104, et seq.
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(D) No Work Delay. Notwithstanding the submission of a Claim or any other dispute between the parties related to the Project or the Contract Documents, Contractor must perform the Work and may not delay or cease Work pending resolution of the Claim or other dispute, but must continue to diligently prosecute the performance and timely completion of the Work, including the Work pertaining to the Claim or other dispute.
12.2 Claims Submission. The following requirements apply to any Claim subject to this Article:
(A) Substantiation. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Article 12, and must include all of the documents necessary to substantiate the Claim including the Change Order request that was rejected in whole or in part, and a copy of City’s written rejection that is in dispute. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Contract Documents, and a chronology of the relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.
(B) Claim Format. A Claim must be submitted in the following format:
(1) General introduction, specifically identifying the submission as a “Claim” submitted under this Article 12.
(2) Relevant background information, including identification of the specific demand at issue, and the date of City's rejection of that demand.
(3) Detailed explanation of the issue(s) in dispute. For multiple issues, separately number and identify each issue and include the following for each separate issue:
(a) The background of the issue, including references to relevant provisions of the Contract Documents;
(b) A succinct statement of the matter in dispute, including Contractor’s position and the basis for that position;
(c) A chronology of relevant events;
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(d) The identification and attachment of all supporting documents (see subsection (A), above, on Substantiation); and
(e) Use of a separate page for each issue.
(4) Summary of issues and damages.
(5) The following certification, executed by Contractor’s authorized representative:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Claim are true and correct. Contractor warrants that this Claim is comprehensive and complete as to the matters in dispute, and agrees that any costs, expenses, or delay claim not included herein are deemed waived.
Contractor understands that submission of a Claim which has no basis in fact or which Contractor knows to be false may violate the False Claims Act (Government Code Section 12650 et seq.).” (C) Submission Deadlines.
(1) A Claim must be submitted within fifteen (15) days following the date that City notified Contractor in writing that a request for a change in the Contract Time or Contract Price, duly submitted in compliance with Article 5 and Article 6, has been rejected in whole or in part.
(2) With the exception of any dispute regarding the amount of Final Payment, any Claim must be filed on or before the date of Final Payment, or will be deemed waived.
(3) A Claim disputing the amount of Final Payment must be submitted within fifteen (15) days of the effective date of Final Payment, under Section 8.8, above.
(4) Strict compliance with these Claim submission deadlines is necessary to ensure that any dispute may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project.
Any Claim that is not submitted within the specified deadlines will be deemed waived by Contractor.
12.3 City’s Response. City will respond within forty-five (45) days of receipt of the Claim with a written statement identifying which portion(s) of the Claim are disputed, unless the forty-five (45) day period is extended by mutual agreement of City and Contractor. However, the City may first request, in
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writing, within thirty (30) days of receipt of the Claim, any additional documentation supporting the Claim or relating to defenses to the Claim that City may have against Contractor. If Contractor fails to submit the additional documentation to City within fifteen (15) days of receipt of City’s request, the Claim will be deemed waived.
(A) Additional Information. If additional information is thereafter required, it may be requested and provided upon mutual agreement of City and Contractor.
(B) City’s Response. City’s written response to the Claim, as further documented, will be submitted to Contractor within fifteen (15) days after receipt of the further documentation or within a period of time no greater than that taken by Contractor in producing the additional information, whichever is greater.
(C) Non-Waiver. Any failure by City to respond within the times specified above may not be construed as acceptance of the Claim in whole or in part, or as a waiver of any provision of these Contract Documents.
12.4 Meet and Confer. If Contractor disputes City’s written response, or City fails to respond within the specified time, Contractor must notify City in writing, either within fifteen (15) days of receipt of City’s response, or within fifteen (15) days of City’s failure to respond within the specified time, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. If Contractor fails to notify City in writing of the dispute, and demand an informal conference to meet and confer, within the specified time, Contractor’s Claim will be deemed waived.
(A) Schedule Meet and Confer. Upon receipt of the demand to meet and confer, City will schedule the meet and confer conference to be held within thirty (30) days, or later if needed to ensure the mutual availability of all of the individuals that each party requires to represent its interests at the meet and confer conference.
(B) Location for Meet and Confer. The meet and confer conference will be scheduled at a location at or near City’s principal office. (C) Written Statement After Meet and Confer. Within ten (10) working days after the meet and confer has concluded, City will issue a written statement identifying which portion(s) of the Claim remain in dispute, if any.
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(D) Submission to Mediation. If the Claim or any portion remains in dispute following the meet and confer conference, within ten working days after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute, the disputed portion(s) will be submitted for mediation as set forth below.
12.5 Mediation and Government Code Claims.
(A) Mediation. Mediation under this Article will be scheduled within sixty (60) days following conclusion of the meet and confer process, with a mediator that the parties mutually agreed upon. The mediation itself may take place more than sixty (60) days following conclusion of the meet and confer process to ensure the mutual availability of the selected mediator and all of the individuals that each party requires to represent its interests.
The parties must share the costs of mediation equally, except costs incurred by each party for representation by legal counsel or any other consultant.
(B) Government Code Claims.
(1) Timely presentment of a Government Code Claim is a condition precedent to filing any legal action based on or arising from the Contract.
(2) The time for filing a Government Code Claim will be tolled from the time Contractor submits its written Claim pursuant to Section
12.2, above, until the time that Claim is denied as a result of the meet and confer process, including any period of time used by the meet and confer process. If the parties agree to mediation, the time for filing a Government Code Claim will be tolled until conclusion of the mediation if the Claim is not fully resolved by mutual agreement of the parties during the mediation or any continuation of the mediation.
12.6 Tort Claims. This Article does not apply to tort claims and nothing in this Article is intended nor will be construed to change the time periods for filing tort-based Government Code Claims.
12.7 Arbitration. It is expressly agreed, under California Code of Civil Procedure Section 1296, that in any arbitration to resolve a dispute relating to this Contract, the arbitrator’s award must be supported by law and substantial evidence.
12.8 Damages. Contractor bears the burden of proving entitlement to and the amount of any claimed damages. Contractor is not entitled to damages calculated on a total cost basis, but must prove actual damages.
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Contractor is not entitled to recovery of any alleged home office overhead.
The Eichleay Formula or similar formula may not be used for any recovery under the Contract. Contractor is not entitled to consequential damages, including home office overhead or any form of overhead not directly incurred at the Worksite; lost profits; loss of productivity; lost opportunity to work on other projects; diminished bonding capacity; increased cost of financing for the Project; extended capital costs; non-availability of labor, material or equipment due to delays; or any other indirect loss arising from the Contract.
12.9 Other Disputes. The procedures in this Article 12 will apply to any and all disputes or legal actions, in addition to Claims, arising from or related to this Contract, unless and only to the extent that compliance with a procedural requirement is expressly and specifically waived by City.
Nothing in this Article is intended to delay suspension or termination under Article 13.
Article 13
Suspension and Termination
13.1 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion of it, suspended until the cause for the suspension has been eliminated to City’s satisfaction.
(A) Failure to Comply. Contractor will not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. (B) No Duty to Suspend. City’s right to suspend the Work will not give rise to a duty to suspend the Work, and City’s failure to suspend the Work will not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.
13.2 Suspension for Convenience. City reserves the right to suspend, delay, or interrupt the performance of the Work in whole or in part, for a period of time determined to be appropriate for City’s convenience, and not due to any act or omission by Contractor or its Subcontractors. Upon notice by City pursuant to this provision, Contractor must immediately suspend, delay, or interrupt the Work as directed by City. The Contract Price and the Contract Time will be equitably adjusted by Change Order to reflect the cost and delay impact occasioned by such suspension for convenience.
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13.3 Termination for Default. Contractor may be deemed in default for a material breach of or inability to perform the Contract, including Contractor’s refusal or failure to supply sufficient skilled workers, proper materials, or equipment to perform the Work within the Contract Time; refusal or failure to make prompt payment to its employees, Subcontractors, or suppliers or to correct rejected work; disregard of laws, regulations, ordinances, rules, or orders of any public agency with jurisdiction over the Project; or if Contractor lacks financial capacity to complete the Work within the Contract Time; or is otherwise responsible for a material breach of the Contract requirements.
(A) Notice. Upon City’s determination that Contractor is in default, City may provide Contractor and its surety written notice of default and intent to terminate the Contract.
(B) Termination. Within seven (7) calendar days after notice of intent to terminate for default has been given, unless the default is cured or arrangements to cure the default have been made and memorialized in writing, to City’s satisfaction, City may terminate the Contract by written notice to Contractor with a copy to Contractor’s surety. (C) Waiver. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety will be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety will be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City will have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. (D) Wrongful Termination. If a court of competent jurisdiction or an arbitrator later determines that the termination for default was wrongful, the termination will be deemed to be a termination for convenience, and Contractor’s damages will be strictly limited to the compensation provided for termination for convenience, in Section 13.4, below. Contractor waives any claim for any other damages for wrongful termination including consequential damages, lost opportunity costs or lost profits.
13.4 Termination for Convenience. City reserves the right to terminate all or part of the Contract for convenience upon written notice to Contractor.
Upon receipt of such notice, Contractor must immediately stop the Work,
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comply with City’s instructions to protect the completed Work and materials, and use its best efforts to minimize further costs. In the event of termination for convenience, the parties agree that the following will constitute full and fair compensation to Contractor, and that Contractor will not be entitled to any additional compensation:
(A) Completed Work. The value of its Work satisfactorily performed to date, including Project overhead and profit based on Contractor’s schedule of values;
(B) Demobilization. Actual and substantiated demobilization costs; and
(C) Markup. Five percent (5%) of the total value of the Work performed as of the date of notice of termination or five percent (5%) of the value of the Work yet to be completed, whichever is less.
13.5 Provisions Remaining in Effect. Upon termination pursuant to this Article, the provisions of the Contract Documents remain in effect as to any claim, indemnity obligation, warranties, guarantees, submittals of asbuilt drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date.
Article 14
Miscellaneous Provisions
14.1 Assignment of Unfair Business Practice Claims. Under Public Contract Code Section 7103.5, Contractor and its Subcontractors agree to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the Contract or subcontract. This assignment will be effective at the time City tenders Final Payment to Contractor, without further acknowledgement by the parties.
14.2 Provisions Deemed Inserted. Every provision of law required to be inserted in the Contract Documents is deemed to be inserted, and the Contract Documents will be construed and enforced as though such provision has been included. If it is discovered that through mistake or otherwise that any required provision was not inserted, or not correctly inserted, the Contract Documents will be amended accordingly.
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14.3 Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of the Contract Documents will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless specified in writing by the waiving party.
14.4 Titles, Headings, and Groupings. The titles and headings used and the groupings of provisions in the Contract Documents are for convenience only and may not be used in the construction or interpretation of the Contract Documents or relied upon for any other purpose.
14.5 Statutory and Regulatory References. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that bids were due.
END OF GENERAL CONDITIONS
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SPECIAL CONDITIONS
1. Emergency Contact. Prior to commencement of the Work on the Project, Contractor must provide contact information to the City’s Project Manager for the person designated by Contractor to respond to any emergency that arises on the Worksite during the course of the Project. That person will be responsible for responding on the Worksite within thirty (30) minutes following notification of an emergency by City’s Police or Fire Department, regardless of the time of day.
2. Weather Delays. This provision is intended to supplement the requirements of General Conditions Section 5.2 on Schedule Requirements and Section 5.3 on Delays and Extensions of Contract Time.
(A) Weather Delay Day. A Weather Delay Day is a Working Day during which Contractor and its forces, including Subcontractors, are unable to perform more than forty percent (40%) of the critical path Work scheduled for that day due to adverse weather conditions which impair the ability to safely or effectively perform the scheduled critical path Work that day. Adverse weather conditions may include rain, saturated soil, and Worksite clean-up required due to adverse weather. Determination of what constitutes critical path Work scheduled for that day will be based on the most current, City-approved schedule.
(B) Normal Weather Delay Days. Based on historic records for the Project location, Contractor’s schedule should assume the following number of normal Weather Delay Days for each month:
Month # Normal Weather Delay Days
January 11
February 10
March 10
April 06
May 03
June 01
July 01
August 01
September 01
October 01
November 04
December 08
(C) Extension of Time. Contractor will be entitled to a non-compensable extension of the Contract Time for each Weather Delay Day in excess of the normal Weather Delay Days within a given month, as set forth in Section (B)
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above, subject to the following limitations:
(1) Contractor must fully comply with the applicable procedures in Article 5 and 6 of the General Conditions regarding requests to modify the Contract Time.
(2) Normal Weather Delay Days which do not occur during a given month do not carry over to another month.
(3) Contractor will not be entitled to an extension of time for a Weather Delay Day to the extent Contractor is responsible for concurrent delay on that day.
END OF SPECIAL CONDITIONS
5 CITY COUNCIL STAFF REPORT
MEETING DATE: March 6, 2024
PREPARED BY:
Adam Paszkowski, Principal Planner
APPROVED BY: City Manager
INTRODUCE ORDINANCE (ZA2023-0001) AMENDING VARIOUS CODE PROVISIONS WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL CODE
OF THE CITY OF MORGAN HILL IMPLEMENTING THE CITY OF
MORGAN HILL 2023-2031 HOUSING ELEMENT; UPDATES TO
ELECTRIC VEHICLE CHARGING PROVISIONS TO PROVIDE
CONSISTENCY WITH CHAPTER 15.62 (ELECTRIC VEHICLE
CHARGING INFRASTRUCTURE); UPDATES TO PARKING
PROVISIONS TO COMPLY WITH ASSEMBLY BILL 894; AND
IMPLEMENTING MINOR AMENDMENTS DUE TO CLERICAL ERRORS
AND INCONSISTENCIES
RECOMMENDATION(S)
1. Open/close the public hearing;
2. Waive first and second reading of the Ordinance Amendment; and
3. Introduce Ordinance Amendment.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Diversity and Inclusiveness
Advancing Regional Initiatives
2024-2025 Strategic Priorities
Affordable Housing and Homelessness
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:
As part of the adoption of the 6th cycle (2023-2031) Housing Element, certain implementation programs/actions were outlined within Chapter 5: Implementation of the Housing Element - in which the City committed to implementing in calendar years 2023 and 2024. Of those actions, several of them pertained to amending the Zoning Code to be consistent with State Law and other provisions. The proposed Zoning Code
5 Amendments implement the following Actions from the Housing Element:
Action HE-1.K Parking for Smaller Bedroom Units
Amend the Zoning Code by 2024 to modify parking standards for studio and onebedroom units for multi-family dwellings to require one covered parking space per unit plus one parking space for every four units for guest parking (a total of one to
1.25 parking spaces per unit).
Action HE-2.F Agricultural Labor Accommodations
Amend the Zoning Code by 2024 to facilitate by-right Agricultural Labor Accommodations within the OS (Open Space) zoning district consistent with Section 17021.6 of the California Health and Safety Code.
Action HE-5.A Low Barrier Navigation Centers
Amend the Zoning Code by 2024 to facilitate by-right processing procedures for Low Barrier Navigation Centers consistent with Assembly Bill 101.
Action HE-5.G By-right Transitional and Supportive Housing Amend the Zoning Code by 2024 to facilitate by-right transitional and supportive housing and residential care facilities where residential uses are permitted. In addition, amend zoning and processes to comply with Assembly Bill 2162 which requires that supportive housing be considered a use by-right in zones that allow multifamily and adhere to timing provisions.
Action HE-5.I Emergency Shelters Parking
Amend the Zoning Code by 2024 to clarify and modify parking standards for emergency shelters consistent with Government Code Section 65583(a)(4)(B)(ii).
Action HE-5.J Emergency Shelters
Amend the Zoning Code within one year of the adoption of the Housing Element to allow emergency shelters as a permitted use by-right within one or more zoning designations that are either zoned for residential use or allow residential development; amend the definition of emergency shelters to include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care; and identify sites where emergency shelters are allowed to accommodate a minimum of 60 unsheltered individuals consistent with the standards listed in AB 2339 and Government Code Section 65583(a)(4).
Action HE-6.C Residential Accommodation Ordinance
Amend Section 18.118.070 (Criteria for Decision) of Chapter 18.118 (Reasonable Accommodations) of the Zoning Code by 2024 to remove the “potential impacts on surrounding uses” as a factor of approval or denial for a reasonable accommodation request.
Action HE-6.E Residential Care Facilities
Amend the Zoning Code by 2024 to permit Group Housing and Residential Care Facilities as a permitted use by-right in all residential zoning districts, consistent with State law and HCD's December 2022 “Group Home Technical Advisory”.
In addition, staff found an inconsistency between Chapters regarding requirements for electric vehicle charging stations, and therefore, proposes to update Section 18.72.040 (General Requirements) of Chapter 18.72 (Parking and Loading) of the Municipal Code; to amend Section 18.72.050 (On-Site Parking Alternatives) to comply with Assembly Bill 894 in regard to shared parking requirements; and the need to update other varying Sections within Title 18 (Zoning) due to miscellaneous corrections and clerical errors.
5 The purpose of the proposed Ordinance is to implement and correct these issues. Staff regularly brings forward minor amendments as necessary to enhance, correct and/or refine the Code.
The Planning Commission held a public hearing regarding the proposed draft Ordinance on February 13, 2024, and recommended the following amendments to the Municipal Code:
A. Table 18.16-1 (Permitted Land Uses — Residential Detached Zoning Districts) within Section 18.16.020 (Land Use Regulations) of Chapter 18.16 (Residential Detached Zoning Districts), Table 18.18-1 (Permitted Land Uses — Residential Attached Zoning Districts) within Section 18.18.020 (Land Use Regulations) of Chapter 18.18 (Residential Attached Zoning Districts), and Table 18.22-1 (Permitted Land Uses — MU-N and MU-F Zoning Districts) within Section
18.22.020 (Land Use Regulations) of Chapter 18.22 (Mixed Use Zoning Districts) are proposed to be amended to allow “Group Housing” as a permitted use pursuant to the California Department of Housing and Community Development (HCD) Group Home Technical Advisory; allow “Residential Care Facilities” as a conditional use in the residential detached zoning districts; and permit Supportive Housing and Transitional Housing by-right.
B. Table 18.22-1 (Permitted Land Uses — MU-N and MU-F Zoning Districts) is also proposed to be amended to add “Low Barrier Navigation Centers” as a permitted use by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses as required by AB 101/Government Code Section 65660; and to allow “Emergency Shelters” as a permitted use by-right within the MU-F zoning district instead of a conditional use.
C. Table 18.28-1 (Permitted Land Uses in the Open Space and Public Facilities Zoning Districts) within Section 18.28.020 (Land Use Regulations) of Chapter
18.28 (Open Space, Public, And Recreation Zoning Districts) is proposed to be amended to allow “Agricultural Labor Accommodations” as a permitted use as required by the Health and Safety Code Section 17021.6.
D. Table 18.44-2 (Minimum Accessory Structure Setbacks) within Section 18.44.030 (Accessory Structures in Residential Zoning Districts) of Chapter 18.44 (Accessory Structures and Uses) and Table 18.56-2 (Allowed Projections Into Required Setbacks) within Section 18.56.030 (Setback Exceptions) of Chapter
18.56 (Height, Setback And Lot Coverage Exceptions) are proposed to be amended to establish consistency for setbacks/projections between attached decks, upper story porches, and balconies. In addition, Section 18.128.020 (Definitions) of Chapter 18.128 (General Terms) is proposed to be amended to expand and clarify the definitions for balcony, deck, and porch; wherein a deck is an unroofed/uncovered platform, and a porch is a roofed/covered platform.
E. Table 18.72-2 (Required On-Site Parking, Other Zoning Districts) within Section
18.72.030 (Required Parking Spaces) of Chapter 18.72 (Parking and Loading) and Subsection C of Section 18.92.050 (Emergency Shelters) of Chapter 18.92 (Supplemental Standards) are proposed to be amended by revising the parking requirements for Emergency Shelters such that the requirements are consistent in both sections and that the parking requirements for Emergency Shelters are
5 consistent with other uses that require one parking space per 250 square feet of office area. In addition, amendments are proposed within Table 18.72-2 to establish required on-site parking standards for Shared Living Residences, Supportive Housing, Transitional Housing, Low Barrier Navigation Centers, and Outdoor Vehicle Storage.
F. In addition, Table 18.72-2 (Required On-Site Parking, Other Zoning Districts) and Table 18.72-3 (Required Guest Parking Spaces) within Section 18.72.030 (Required Parking Spaces) of Chapter 18.72 (Parking and Loading) are proposed to be amended by revising the required amount of parking for studio and one-bedroom units for multifamily dwellings to one covered parking space; and amend the guest parking requirements for multifamily dwellings from one per three units to one per four units, consistent with single-family dwellings.
G. Section 18.72.040 (General Requirements) of Chapter 18.72 (Parking and Loading) is proposed to be amended to correct a clerical error by referencing Section 18.72.050.D (Off-Site Parking) which allows on-site parking alternatives; this section is also proposed to be amended to remove requirements for electric vehicle charging stations from the Zoning Code and instead refer to Chapter
15.62 (Electric Vehicle Charging Infrastructure) for electric vehicle charging requirements. On December 7, 2022, the City Council adopted an ordinance requiring installation of electric vehicle (EV) charging infrastructure as part of all new development projects and retrofit projects in the City. Section 18.72.040 (General Requirements) is proposed to be amended to correct the inconsistency between the two Chapters of the Code.
H. Subsection D of Section 18.72.050 (On-Site Parking Alternatives) of Chapter
18.72 (Parking and Loading) is proposed to be amended to correct a minor clerical error to properly reference ‘off-site’ parking instead of ‘on-site’ parking.
I. Subsection F of Section 18.72.050 (On-Site Parking Alternatives) of Chapter
18.72 (Parking and Loading) is proposed to be amended to be consistent with Assembly Bill 894 regarding Shared Parking and shared parking agreements to allow entities with underutilized parking to share their underutilized parking with the public, local agencies, or other entities. The bill requires a local agency to approve the shared parking agreement if it includes, among other things, a parking analysis using peer-reviewed methodologies developed by a professional planning association.
J. Subsections B and C of Section 18.84.050 (Site and Design Standards) of Chapter 18.84 (Accessory Dwelling Units) are proposed to be amended to clarify that a single-family dwelling lot may have one detached accessory dwelling unit, one attached accessory dwelling unit, and one junior accessory dwelling unit; that a multifamily dwelling lot may have two detached accessory dwellings; and that a detached accessory dwelling unit may be combined with a junior accessory dwelling unit in certain circumstances, consistent with AB 881, Government Code Section 65852.2(e)(1)(D).
K. Section 18.118.070 (Criteria for Decision) of Chapter 18.118 (Reasonable Accommodations) is proposed to be amended to remove the “potential impacts on surrounding uses” as a factor for approval, or denial, of a reasonable accommodation request.
L. Section 18.124.020 (Residential Land Uses) of Chapter 18.124 (Land Use
5 Definitions) is proposed to be amended to revise the definition of “Group Housing” using the definition provided in HCD’s Group Housing Technical Advisory. In addition, Section 18.124.020 also proposes to amend the definitions for “Residential Care Facilities” and “Residential Care Facilities, Small” to be a state licensed facility as defined in the California Health and Safety Code and to remove wording referencing the Residential Development Control System (RDCS). New land use definitions are also provided for “Supportive Housing” and “Transitional Housing” as they are defined in the California Health and Safety Code, as well as "Shared Living Residences".
M. Section 18.124.030 (Public and Quasi-public Uses) of Chapter 18.124 (Land Use Definitions) is proposed to be amended to revise the definition of “Emergency Shelters” consistent with AB 2339 and Government Code Section 65583(a)(4). A definition is also provided for “Low Barrier Navigation Centers” using the definition provided in Government Code Section 65660.
N. Section 18.124.040 (Commercial Uses) of Chapter 18.124 (Land Use Definitions) is proposed to be amended to include a definition for “Vehicle Storage, Outdoor” to clarify what is considered an outdoor vehicle storage use and due to a definition not previously provided. Discussions during the November 10, 2020, Planning Commission and the December 16, 2020, City Council meetings were utilized in the development of the proposed Outdoor Vehicle Storage land use definition.
Complete details of the proposed amendments are provided in the draft Ordinance (Attachment 1) and in the Planning Commission staff report. If the proposed Ordinance is approved, the Code Amendment becomes effective 30 days following the adoption of the Ordinance by the City Council.
Pursuant to Section 18.114.060 (Findings for Approval), the City Council may approve a zoning code amendment if all of the following findings are made:
1. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.
2. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.
3. The proposed amendment is internally consistent with other applicable provisions of the zoning code.
The proposed amendments are consistent with the above findings as they implement the City of Morgan Hill 2023-2031 Housing Element, provide updates to electric vehicle charging provisions consistent with Chapter 15.62 (Electric Vehicle Charging Infrastructure) in the Municipal Code, provide updates to parking provisions to comply with Assembly Bill 894, and correct clerical errors and inconsistencies in the Municipal Code.
PLANNING COMMISSION ACTION:
5 The Planning Commission reviewed the proposed amendments on February 13, 2024.
Following discussion, the Planning Commission unanimously approved Resolution No. 24-02 recommending the City Council approve the proposed Amendments as presented by staff.
COMMUNITY ENGAGEMENT:
Inform
A 10-day public hearing notice was published in the Friday, February 23, 2024, edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notice was also provided on the website and social media. On February 13, 2024, 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, February 2, 2024, edition of the Morgan Hill Times.
ALTERNATIVE ACTIONS:
If the City Council does not take action on the proposed ordinance amendments, the Municipal Code will remain as-is, and certain programs/actions within the Housing Element will not be implemented, the City will not be consistent with Assembly Bill 894, and the clerical errors and inconsistencies within the Code will remain. In addition, if the City fails to implement a program/action by the date specified in the Housing Element, a court can find the City inconsistent with Government Code Section 65583(c) and order the City to carry out the program. The Council may also make modifications to the proposed amendments, or not approve certain sections that the Council deems appropriate.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
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.
On December 7, 2022, the City Council adopted Ordinance No. 2340 N.S., adding Chapter 15.62 (Electric Vehicle Charging Infrastructure) to Title 15 – Buildings and Construction of the City of Morgan Hill Municipal Code. The update included provisions for electric vehicle infrastructure for parking that serves newly constructed and existing buildings.
On January 25, 2023, the City Council adopted Resolution No. 23-004, adopting the City of Morgan Hill 2023-2031 Housing Element. The Housing Element outlines implementation programs/actions that the City is committed to implementing over the eight-year planning period.
On February 13, 2024, the Planning Commission considered and recommended, unanimously, the City Council approve the proposed draft Ordinance (Attachment 1).
FISCAL AND RESOURCE IMPACT:
5 Staff regularly brings forward bundles of minor amendments as necessary to enhance, correct, and/or refine the Code; and therefore, the cost is borne, and work is accommodated, within the respective division's annual workplan and budget.
CEQA (California Environmental Quality Act):
This Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines. The proposed text amendments are covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed amendments implement the City of Morgan Hill 2023-2031 Housing Element, provide updates to electric vehicle charging provisions consistent with Chapter 15.62 (Electric Vehicle Charging Infrastructure) in the Municipal Code, provide updates to parking provisions to comply with Assembly Bill 894, and implement minor amendments due to clerical errors and inconsistencies.
ORDINANCE NO. , NEW SERIES
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL AMENDING VARIOUS CODE
PROVISIONS WITHIN TITLE 18 (ZONING) OF THE
MUNICIPAL CODE OF THE CITY OF MORGAN HILL
IMPLEMENTING THE CITY OF MORGAN HILL 2023-
2031 HOUSING ELEMENT; UPDATES TO ELECTRIC
VEHICLE CHARGING PROVISIONS TO PROVIDE
CONSISTENCY WITH CHAPTER 15.62 (ELECTRIC
VEHICLE CHARGING INFRASTRUCTURE); UPDATES
TO PARKING PROVISIONS TO COMPLY WITH
ASSEMBLY BILL 894; AND IMPLEMENTING MINOR
AMENDMENTS DUE TO CLERICAL ERRORS AND
INCONSISTENCIES
THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES ORDAIN AS FOLLOWS:
Section 1. Table 18.16-1 (Permitted Land Uses — Residential Detached Zoning Districts) within Section 18.16.020 (Land Use Regulations) of Chapter 18.16 (Residential Detached Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:
Table 18.16-1: Permitted Land Uses — Residential Detached Zoning Districts Key
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit
required
— Use not allowed
Zoning District Additional
Regulations
RE RDL RDM RDH
Residential Uses
Accessory Dwelling Units P P P P Chapter 18.84
Duets — — P
[1,2]
P [2]
City of Morgan Hill
Ordinance No., New Series
Group Housing P P P P
Residential Care Facilities C C C C
Residential Care Facilities,
Small
P P P P
Single-Family Detached
Dwellings
P P P P
Supportive Housing P P P P
Transitional Housing P P P P
Public and Quasi-Public
Uses
Community Assembly C C C C
Cultural Institutions C C C C
Day Care Centers C C C C
Home Day Care, Large and
Small
P P P P
Parks and Recreational
Facilities [5]
C C C C
Public Safety Facilities C C C C
Schools, Public and Private C C C C
Transportation,
Communication, and Utility
Uses
Wireless Communications
Facilities
See Chapter 18.96
Agriculture and Natural
Resource Uses
Crop Cultivation P — — —
City of Morgan Hill
Ordinance No., New Series
[3,4]
Other Uses
Accessory Uses See Chapter 18.44
Home Occupations See Section 18.92.060
Temporary Uses See Section 18.92.150
Urban Agriculture
Home Gardens P P P P
Community Gardens A A A A
Urban Farms C C C C
Notes:
[1] Permitted on corner lots only.
[2] Limited to no more than twenty-five percent of total dwelling units within a single project or subdivision, excluding two-lot subdivisions.
[3] Mushroom farms are prohibited.
[4] On-site sale of products is prohibited.
[5] Park and recreational facilities accessory to a residential use (e.g., a clubhouse serving a residential subdivision) are permitted by right.
Section 2. Table 18.18-1 (Permitted Land Uses — Residential Attached Zoning Districts) within Section 18.18.020 (Land Use Regulations) of Chapter 18.18 (Residential Attached Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:
Table 18.18-1: Permitted Land Uses — Residential Attached Zoning Districts Key
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit
required
— Use not allowed
Zoning District Additional Regulations
RAL RAM RAH
Residential Uses
City of Morgan Hill
Ordinance No., New Series
Accessory Dwelling Units P P P Chapter 18.84
Duets and Duplexes P P P
Group Housing P P P
Multifamily Dwellings P P P
Nursing Homes and LongTerm Care C C C
Residential Care Facilities C C C
Residential Care Facilities,
Small
P P P
Shared Living Residences C C C
Single-Family Attached
Dwellings
P P P
Single-Family Detached
Dwellings
P [2, 3] P [3] P [3]
Supportive Housing P [1] P [1] P [1]
Transitional Housing P P P
Public and Quasi-Public
Uses
Community Assembly C C C
Cultural Institutions C C C
Day Care Centers C C C
Home Day Care, Large and
Small
P P P
Parks and Recreational
Facilities [4]
C C C
Public Safety Facilities C C C
City of Morgan Hill
Ordinance No., New Series
Schools, Public and Private C C C
Transportation,
Communication, and Utility
Uses
Wireless Communication
Facilities
See Chapter 18.96
Other Uses
Accessory Uses and
Structures
See Chapter 18.44
Home Occupations See Section 18.92.060
Temporary Uses and
Structures
See Section 18.92.150
Urban Agriculture
Home Gardens P P P
Community Gardens A A A
Urban Farms C C C
Notes:
[1] Supportive Housing consistent with Government Code Sections 65650-65656 shall adhere to entitlement application timing provisions.
[2] Up to twenty-five percent of homes within a development project may be small-lot single family homes with a maximum lot area of three thousand five hundred square feet. [3] Permitted only on a lot of record existing prior to July 7, 2018. [4] Park and recreational facilities accessory to a residential use (e.g., a clubhouse serving a residential subdivision) are permitted by right.
Section 3. Table 18.22-1 (Permitted Land Uses — MU-N and MU-F Zoning Districts) within Section 18.22.020 (Land Use Regulations) of Chapter 18.22 (Mixed Use Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:
Table 18.22-1: Permitted Land Uses — MU-N and MU-F Zoning Districts Key Zoning District Additional Regulations
City of Morgan Hill
Ordinance No., New Series
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit required
— Use not allowed
MU-N MU-F
Residential Uses Section 18.22.030
Accessory Dwelling Units P P Chapter 18.84
Duets and Duplexes P C
Group Housing P P
Live/Work Unit A A
Mixed Use Residential P P
Multifamily Dwellings P C
Nursing Homes and Long-Term
Care
C C
Residential Care Facilities C C
Residential Care Facilities, Small P P
Senior Housing, Independent
Living
P C
Shared Living Residences C C
Single-Family Attached
Dwellings
P C
Single-Family Detached
Dwellings
P [1] C
Supportive Housing P [4] P [4]
Transitional Housing P P
City of Morgan Hill
Ordinance No., New Series
Public and Quasi-Public Uses
College and Trade Schools P P
Community Assembly C C
Cultural Institutions A A
Day Care Centers C C
Emergency Shelters — P Section 18.92.050
Government Offices A A
Home Day Care, Large and Small P P
Hospitals C C
Instructional Services P P
Low Barrier Navigation Centers P P
Medical Offices and Clinics P P
Parks and Recreational Facilities P P
Public Safety Facilities C C
Schools, Public and Private C C
Social Services — C
Commercial Uses
Animal-Related Users
Veterinarian Clinics and
Hospitals
C C
Banks and Financial Institutions P P
Business Support Services P P
Cinemas and Theaters A A
Commercial Recreation, Indoor