Morgan Hill City Council
October 23, 2024

Special/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, October 23, 2024 5:00 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 participate by teleconference/video conference. Information on how the public may observe and participate in the meeting is below.

MEETING PARTICIPATION
Morgan Hill City Council meetings are held in person. The community may attend in person or via Zoom (video/teleconference). The meetings are also live-streamed on the City’s website, Facebook page, and Channel 17.

As a courtesy, and technology permitting, members of the public may attend online.

However, the City cannot guarantee that the public’s access to online technology will be uninterrupted, and technical difficulties may occur from time to time. Unless required by the Ralph M. Brown Act, the meeting will continue despite technical difficulties for participants using the online option.

Those wishing to participate in the meetings remotely must register in advance at https://bit.ly/CityCouncilZoomRegistration. Additionally, Zoom participants must be running the latest version or will be required to update to the latest version before being able to join the meeting remotely.

Remote participation is also available by calling (669) 900-9128 and entering webinar id: 873 3200 8380#. Dial *9 to raise your hand, and be called upon to speak for up to 3 minutes. Dial *6 to unmute.

PUBLIC COMMENT

October 23, 2024
2 Public comment may be offered verbally at the meeting or in writing before the meeting.

Those attending remotely may only offer public comment for items on the agenda in one of four categories:
• Consent Calendar
• Other Business
• Public Hearings
• Closed Session
Public comment will be heard from those attending in person first with the submission of a speaker card. Once that is complete, we will move to those on Zoom that have their hand raised. Following public comment from Zoom, we will close the public comment period for that item.

Remote public comment for items not on the agenda will not be accepted.

Written public comment may be submitted to the City Clerk:
• In person at the City Council Meeting;
• Via email to [email protected]; or
• Hand delivered or mailed 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) so that your comments can be submitted to the members of the City Council with sufficient time to review them. You may continue to provide written comments up to noon on Wednesday (the day of the meeting), although Council Members may not have sufficient time to review them before the meeting.

Public comments submitted to the City Clerk after noon (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 or by email at [email protected]. Requests must be made as early as possible and at least two full business days before the start of the meeting.

October 23, 2024
3 SPECIAL/REGULAR MEETING
A special meeting of the City Council is called at 5:00 p.m.

SPECIAL MEETING
5:00 p.m. Special Meeting

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Proclaiming the month of October as Dementia and Brain Health Awareness Month Proclaiming October 2, 2024 as Clean Air Day
Proclaiming October 20-26, 2024 as Friends of the Library Week and Celebrating the 50th Anniversary of the Morgan Hill Friends of the Library

PRESENTATIONS
Caltrain presentation

CITY COUNCIL REPORTS
Mayor Turner

October 23, 2024
4 CITY MANAGER'S REPORT
New Hire, Promoted and Retired Employee Recognitions

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 Consent Calendar for comment and action.

1. ACCEPT GRANT FUNDING IN THE AMOUNT OF $115,700 FROM THE CALIFORNIA STATE OFFICE OF TRAFFIC SAFETY AND $100,000 FROM

THE BYRNE DISCRETIONARY COMMUNITY FUNDING PROJECT
Recommendation:

1. Authorize the City Manager to execute the Grant Agreement with the California State Office of Traffic Safety accepting grant funds from the Traffic Records Improvement Project in the amount of $28,700;

2. Authorize the City Manager to execute the Grant Agreement with the California State Office of Traffic Safety accepting grant funds from the Selective Traffic Enforcement Program in the amount of $87,000;

3. Accept the Byrne Discretionary Community Funding Project Grant in the amount of $100,000 for the purchase of two BMW motorcycles; and

October 23, 2024
5 4. Amend the Fiscal Year (FY) 2024-25 General Fund budget to recognize grant revenue and appropriate $215,700 in grant fund expenditures in FY 2024-25.

2. ADOPT RESOLUTION SUPPORTING PROPOSITION 36
Recommendation:

Adopt a resolution in support of Proposition 36: The Homeless, Drug Addition, and Theft Reduction Act.

3. APPROVE ACQUISITION OF SEWER EASEMENT FROM PG&E (APN 841- 10-027 & 039) FOR THE SEWER RELIEF TRUNK LINE PROJECT
Recommendation:

1. Authorize the purchase of a sewer easement (9,476 square feet), APN 841-10-027 and APN 841-10-039, for $23,000 plus escrow and closing costs from Pacific Gas and Electric (PG&E), for the Sewer Relief Trunk Line Project; and

2. Authorize the City Manager to execute all documents and make minor modifications as necessary in order to consummate the transaction and acquire the easement.

4. APPROVE THE SEPTEMBER 4, 2024 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

5. APPROVE THE SEPTEMBER 18, 2024 CITY COUNCIL MID-YEAR GOAL

REVIEW CHECK-IN WORKSHOP MINUTES
Recommendation:

Approve minutes.

6. AWARD BUTTERFIELD PARK – PHASE 1 PROJECT TO S&H
CONSTRUCTION, INC. IN THE AMOUNT OF $3,268,600
Recommendation:

1. Approve the Butterfield Park - Phase 1 Project Plans and Specifications;

2. Award contract to S&H Construction, Inc. for the Butterfield Park - Phase 1 Project in the amount of $3,268,600;

3. Authorize the expenditure of construction contingency funds not to exceed $326,860; and

4. Authorize the City Manager to execute and administer the construction contract with S&H Construction, Inc.

October 23, 2024
6 7. AWARD MAINTENANCE SERVICE AGREEMENT TO PRECISION EMPRISE, LLC DBA PRECISION CONCRETE CUTTING IN THE AMOUNT OF $150,000

FOR ON-CALL CONCRETE CUTTING SIDEWALK REPAIR SERVICES AND

SIDEWALK ASSET MANAGEMENT SURVEYING SERVICES
Recommendation:

1. Award maintenance service agreement to Precision Emprise, LLC dba Precision Concrete Cutting in the not-to-exceed amount of $150,000 for on-call concrete cutting sidewalk repairs and sidewalk asset management surveying services;

2. Determine that said purchase may be made cooperatively, as provided in Section 3.04.180 of the Morgan Hill Municipal Code;

3. Determine that competitive bids upon notice would not likely result in a lower price to the City from a responsible bidder or would cause unnecessary expense or delay under the circumstances as provided in Section 3.04.150 (2) of the Morgan Hill Municipal Code; and

4. Authorize the City Manager to execute and administer that certain construction contract with Precision Emprise, LLC dba Precision Concrete Cutting.

8. AWARD MONTEREY ROAD UNDERPASS CONCRETE SPALL AND CRACK REPAIR PROJECT TO ASHRON CONSTRUCTION AND RESTORATION INC.

IN THE AMOUNT OF $284,440
Recommendation:

1. Approve the Monterey Road Underpass Concrete Spall and Crack Repair Project Plans and Specifications;

2. Award contract to Ashron Construction and Restoration Inc. for the Monterey Road Underpass Concrete Spall and Crack Repair Project in the amount of $284,440;

3. Authorize expenditures of construction contingency not to exceed $28,444; and

4. Authorize the City Manager to execute and administer the construction contract with Ashron Construction and Restoration Inc.

9. ADOPT A JOINT RESOLUTION DETAILING THE REPRESENTATIVE

GOVERNANCE FOR SOUTH SANTA CLARA COUNTY CITIES ON SANTA

CLARA VALLEY TRANSPORTATION AUTHORITY'S (VTA) BOARD OF

DIRECTORS
Recommendation:

Adopt the joint Morgan Hill and Gilroy resolution detailing the representative governance for South Santa Clara County Cities on Santa Clara Valley Transportation Authority's (VTA) Board of Directors.

October 23, 2024
7 REGULAR MEETING
6:00 p.m.

PUBLIC HEARINGS

10. ADOPT RESOLUTION TO ESTABLISH NEW AND UPDATED FEES FOR

PLANNING, BUILDING, AND LAND DEVELOPMENT ENGINEERING
Recommendation:

1. Open/Close Public Hearing; and

2. Adopt resolution to establish new and updated Planning, Building, and Land Development Engineering fees as proposed.

11. INTRODUCE ORDINANCE TO AMEND THE CITY OF MORGAN HILL

DOWNTOWN SPECIFIC PLAN DELETING THE CONDITIONAL USE PERMIT

REQUIREMENT FOR BARS ASSOCIATED WITH A RESTAURANT
Recommendation:

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

2. Introduce an Ordinance deleting from the Morgan Hill Downtown Specific Plan the conditional use permit requirement for bars associated with a restaurant.

OTHER BUSINESS

12. APPROVE PUBLIC ART FRAMEWORK AND DIRECT STAFF TO PREPARE

AN ORDINANCE REQUIRING PUBLIC ART IN NEW DEVELOPMENT

PROJECTS
Recommendation:

Approve Public Art Framework and direct staff to draft Public Art Ordinance.

13. ACCEPT MORGAN HILL TOURISM BUSINESS IMPROVEMENT DISTRICT (MHTBID) OWNERS ASSOCIATION ANNUAL REPORT (DBA VISIT

MORGAN HILL)
Recommendation:

Accept and file the Visit Morgan Hill Annual Report.

14. ACCEPT ELEVATE MORGAN HILL - ECONOMIC MOBILITY REPORT Recommendation:

Accept the ELEVATE Morgan Hill - Economic Mobility Report.

October 23, 2024
8 15. RECEIVE MONTHLY BUDGET UPDATE; SEPTEMBER 2024 FINANCIAL AND INVESTMENT REPORTS; AND CITY MANAGER AUTHORITY REPORT Recommendation:

Accept and file report.

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

ADJOURNMENT

October 23, 2024
9 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 described in the notice of this meeting during consideration of that item. If you wish to address the Council on any item on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk before the City Council discussion on the item. You are not required to give your name on the speaker card 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].

October 23, 2024
10

1 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Mario Ramirez, Police Captain
APPROVED BY: City Manager
ACCEPT GRANT FUNDING IN THE AMOUNT OF $115,700 FROM THE CALIFORNIA STATE OFFICE OF TRAFFIC SAFETY AND $100,000

FROM THE BYRNE DISCRETIONARY COMMUNITY FUNDING

PROJECT

RECOMMENDATION(S)

1. Authorize the City Manager to execute the Grant Agreement with the California State Office of Traffic Safety accepting grant funds from the Traffic Records Improvement Project in the amount of $28,700;

2. Authorize the City Manager to execute the Grant Agreement with the California State Office of Traffic Safety accepting grant funds from the Selective Traffic Enforcement Program in the amount of $87,000;

3. Accept the Byrne Discretionary Community Funding Project Grant in the amount of $100,000 for the purchase of two BMW motorcycles; and

4. Amend the Fiscal Year (FY) 2024-25 General Fund budget to recognize grant revenue and appropriate $215,700 in grant fund expenditures in FY 2024-25.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Preserving and Cultivating Public Trust
Advocating for Local, Regional, and State Legislative Initiatives 2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Public Safety Master Plan
Vision Zero
REPORT NARRATIVE:

The Police Department has received a grant award of $28,700 from the California State Office of Traffic Safety (OTS) for the Traffic Records Improvement Project (TRIP). The purpose of the TRIP is to provide traffic safety stakeholders with the ability to improve

1 the quality of the State's crash and citation data through various efforts such as purchasing equipment or software for electronic reporting of crash data, citation data reporting and collection, improving the compatibility of crash and/or citation data with the State and national data systems, enhancing the ability to analyze trends in crashes, crash outcomes, and contributing factors.

The Police Department will use the grant funds to transition from paper reporting to the State to electronic reporting. The grant funds will pay for software upgrades through our current citation and traffic collision software program, Crossroads. This upgrade will allow the Police Department to electronically submit traffic collision data to the California Highway Patrol (CHP) and the Statewide Integrated Traffic Records System (SWITRS).

This grant aligns with and supports the City's commitment to the implementation of Vision Zero Traffic Safety Initiative. The grant term begins on September 15, 2024 and ends on May 27, 2025.

In addition to the TRIP grant, the Police Department has received a grant award in the amount of $87,000 from the California Office of Traffic Safety (OTS) for the Selective Traffic Enforcement Program (STEP). The purpose of the STEP grant is to utilize best practices to reduce the number of persons killed or injured in traffic collisions involving alcohol and other primary collision factors. The Police Department will use a variety of enforcement and education strategies to take impaired drivers off our streets and enhance public awareness in Morgan Hill of the inherent dangers of impaired and/or distracted driving, and work to reduce the number of collisions.

The Police Department will use the grant funds for staffing overtime to conduct the activities outlined in the grant. These include two (2) Driving Under the Influence (DUI) Checkpoints, seven (7) Saturation Patrols targeting impaired drivers, one (1) DUI Warrant Enforcement operation, two (2) Court Operations, enforcing Suspended Driver's Licenses, nine (9) Traffic Enforcement operations in areas with a high number of vehicle collisions, three (3) Traffic Safety Presentations focusing on impaired driving, distracted driving, speeding, and safety, three (3) Distracted Driving Operations, and two (2) Know Your Limit Program campaigns. In addition, the grant will fund the purchase of equipment for our DUI Checkpoints, such as supplies and a portable light tower.

This grant aligns with and supports the City's commitment to the implementation of Vision Zero Traffic Safety Initiative. The grant term begins on October 1, 2024, and ends September 30, 2025.

Moreover, the Police Department has received a grant award of $100,000 from the U.S.

Department of Justice's Bureau of Justice Assistance (BJA)-Byrne Discretionary Community Funding Project; these funds are distributed to each congressional district to enhance the needs of each community.

The Police Department will use the grant funds to purchase two (2) BMW motorcycles

1 for our Traffic Enforcement Team to assist in their ability to navigate traffic and apprehend individuals operating a motor vehicle while driving under the influence of alcohol and/or drugs. Additionally, increased residential growth has correlated to a growing number of motorists driving under the influence, demonstrating the need for additional enforcement. The number of driving under the influence arrests over the past three years have steadily increased: 2021--115, 2022--216, 2023--238 (recognizing COVID had an impact on the number of drivers on the roadway).

This grant aligns with and supports the City's commitment to the implementation of Vision Zero Traffic Safety Initiative. The grant term begins on May 1, 2024 and ends on April 30, 2025.

COMMUNITY ENGAGEMENT:

This staff report serves to inform the community of the Police Department's grant awards.

ALTERNATIVE ACTIONS:

The City Council could elect not to accept the grants' funding.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Morgan Hill Police Department (MHPD) has received seven (7) grants through the Office of Traffic Safety (OTS). Below are the grant cycles and the amount awarded to MHPD from OTS.

YEAR AMOUNT
10/1/2007 to 9/30/2008 $9,536
10/1/2009 to 9/30/2010 $13,131
10/1/2010 to 9/30/2011 $18,895
10/1/2012 to 9/30/2013 $24,750
10/1/2013 to 9/30/2014 $36,800
10/1/2018 to 9/30/2019 $43,000
10/01/2023 to 9/30/2024 $60,000
Total Amount Awarded $206,112
This is the first year the Police Department has been awarded grant funding from the BJA-Byrne Discretionary Community Funding Project.

FISCAL AND RESOURCE IMPACT:

The total amount for the two OTS and the Byrne Discretionary Community Funding Project grants is $215,700. Notifications were received after the conclusion of the budget process and, therefore, were not included in the FY25 budget. A budget amendment is needed to recognize the grant revenue and increase the Field Patrol Division's appropriation by $215,700 for FY25.

1 CEQA (California Environmental Quality Act):

Not a Project - The grant entails government organizational or administrative activities and will not result in direct or indirect physical changes in the environment.

Application :: Page 1 of 9

1. 2.

3. 4.

Application Information
Application No: 25-005541
Application Type: Traffic
Records
Agency (City or
County):

Morgan Hill Police
Department
Department
(Police
Dept, DA
Office, etc):

Morgan Hill
Police
Department
Authorized
Representative:

DUNS/SAM
Number: CG4EJ16FEMD8

DUNS/SAM
Expiration
Date:
5/3/2024

DUNS/SAM
Registered Address:
17575 Peak
Ave. DUNS/SAM City: Morgan Hill DUNS/SAMZIP+4: 95037-4126 Application Summary
Grants Made Easy Application Titles and Descriptions are pre-populated. For General Grants, provide the Application Title and Application Description.

Application Title:

Traffic Records Improvement Project
Application Description:

State and local agencies need timely, accurate, complete, uniform, integrated, and accessible traffic records to identify and prioritize traffic safety issues, to choose appropriate safety countermeasures and evaluate their effectiveness. Traffic records improvement grants provide traffic safety stakeholders with the ability to improve the quality of the State's crash and citation data through various efforts such as: purchasing equipment or software for electronic reporting of crash data, citation data reporting and collection, improving the compatibility of crash and/or citation data with the state and national data systems, enhancing the ability to analyze trends in crashes, crash outcomes, and contributing factors, etc.

Problem Statement
Describe the problem(s) to be addressed by providing the following:

Describe the city, county, or jurisdiction this grant will impact.

Describe the problem(s) to addressed, supported by current and relevant crash data. (most recent calendar year data/stats)
Define the target population the grant intends to serve and how they are affected by the problem(s).

Do not include state or national information.

Application :: Page 2 of 9
Problem Statement:

The Morgan Hill Police Department is located in Santa Clara County at the southern end of what is known internationally as Silicon Valley. Our city comprises approximately 12 square miles nestled in between the cities of Gilroy to the south and San Jose, a large metropolitan area of over 1M residents, to the north. We have a concentration of high tech and manufacturing companies, but a majority of our residents travel daily to employment centers to the north and south of Morgan Hill. Our population is approximately 45,000.

Morgan Hill Police Department currently utilize Crossroads Software for our collision report writing and electronic ticket systems. The Crossroads software has helped in completing accurate CHP 555 and has made the process for our Officers and Supervisor substantially easier. However, Morgan Hill currently submits paper crash reports to CHP by mail. This delay of crash data entry into SWITRS affects the states, federal and local authorities' ability to identify problem area and plan for infrastructure improvements and implement countermeasures to reduce crashes on California roads. Currently, Crossroads Software allows for the reporting to SWITRS and has the interface to upload collision report data and document to the CHP SWITRS system.

Our Police Department is interested in transitioning to completing vehicle reports electronically. MHPD completes a vehicle report, commonly referred to as a CHP-180 form, on a triplicate paper form. We are requesting funding to update our software so the CHP 180 form can be electronically submitted. This is currently available through Crossroads Software and would be beneficial for Officers completing the report, the towing companies taking possession of the vehicle, our records department that handles the vehicle releases and most importantly our Dispatchers that enter the vehicle into SVS. Electronic submission of these vehicle reports from our Officers on scene to our Dispatchers would allow them to immediately enter felony, stolen, impounded or stored vehicles into SVS in more streamline fashioned.

Traffic Data Summary:

City Applicants: Complete the table below using the most current local data and update the 20XX years in the table (do not use the OTS Rankings or SWITRS).

County or State Applicants: Complete the table below using SWITRS data and update the 20XX years in the table.

Crash
Type 2021 2022 2023
CrashesVictims CrashesVictims CrashesVictims
Fatal 1 1 0 0 0 0
Injury 49 60 107 151 90 137

Application :: Page 3 of 9
Proposed Solution
Equity:

Morgan Hill Police Department (MHPD) and the City of Morgan Hill have committed to Vision Zero and its strategy to eliminate all traffic fatalities and injuries. Morgan Hill Police Department recognizes that to eliminate traffic fatalities and injuries, we must focus on the “Three E’s” being Engineering, Education and Enforcement. First, MHPD works closely with our city engineering to address traffic engineering concerns that may affect all our community members. Second, MHPD is committed to being unbiased in our enforcement and have educated all our personnel by attending racial bias and diversity training every two years. In respect to enforcement, MHPD utilizes technology and data driven enforcement.

Strategies:

Morgan Hill Police Department has utilized Crossroads Software for collision report writing since February of 2020. Crossroads Software already has the interface available for MHPD to transition to electronic submission of crash data to CHP and SWITRS. Since this is already available, the transition to electronic submissions would be seamless. Also, Crossroads also has the CHP 180 module available, and the integration would be immediate.

Agency Qualifications:

Morgan Hill Police Department is adequately staffed and our Records Department is comprised of one Records Supervisor and four full time Records Specialists.

The process for MHPD’s contract procurement relies on MHPD presenting the awarded contract to our City Council. MHPD is required to put the approved contract onto the Council’s calendar for review and it can be approved through consent. Once approved by our City Council, the grant is forwarded to our City Manager and Chief of Police for final signatures to accept the contract.

Community Collaboration and Engagement
Provide a description of the community collaboration and engagement activities that will be conducted by your department and addresses traffic safety. Community collaboration and engagement allows for the appropriate department personnel to engage in conversations to both share information and receive input from the community members regarding traffic safety.

Community Collaboration and Engagement:

The software interface for crash data reporting to SWITRS and CHP 180 electronic form would not require community collaboration and engagement.

Application :: Page 4 of 9
Goals
Description
Reduce the number of persons killed in traffic crashes.

Reduce the number of persons injured in traffic crashes.

Custom Description
Objectives
Included Target
Number Description
Yes 1
Purchase and implement a new electronic crash reporting solution or upgrade an existing electronic crash reporting solution to allow for submission of complete crash reports to the California Highway Patrol’s Statewide Integrated Traffic Records System (SWITRS), and/or to a departmental records management system (RMS) as applicable.

Yes 1
Purchase and implement a new complete electronic citation reporting solution or upgrade an existing electronic citation reporting solution that includes the capability of exporting data to both a departmental records management system (RMS) as well as to the local court records system, if and when the local court can receive electronic citation data.

Included Target Number Custom Description
Method of Procedure

Application :: Page 5 of 9
Phase 1 - Program Preparation:

Determine specific system requirements.

Determine specific equipment requirements.

Request vendor price quotation per host agency requirements.

Procure an electronic crash reporting system with the following functionalities:

System licensing with installation and training.

GIS based mapping.

Segment crash diagraming tool.

Ability to create or import crash reports.

Ability to import and export agency RMS files.

Ability to perform complete analysis of crash reports.

Secure database accessible by appropriate agency personnel.

Ability to export complete crash report to the California Highway Patrol’s Statewide Integrated Traffic Records System.

Procure an electronic citation system with the following functionalities:

System licensing with installation and training.

Ability to import and export to agency RMS files.

Ability to perform complete analysis of citation reports.

Secure database accessible by appropriate agency personnel.

Ability to export complete citation reports to the local county court.

Phase 1 - Program Preparation Addendum:

Morgan Hill Police Department has worked with Crossroads since February of 2020. A price quotation has been provided and attached to this grant. This interface through Crossroads already has the ability to export crash reports to CHP's SWITRS.

Phase 2 - Program Operations:

Select vendor for system development, implementation, and installation.

Monitor and oversee progress of system/software development.

Phase 2 - Program Operations Addendum:

Morgan Hill already selected Crossroads as our vender for electronic crash data reporting to CHP’s SWITRS and for the electronic reporting of CHP 180s.

Phase 3 - Data Collection:

Prepare and submit grant claims invoice (due January 30, April 30, July 30, and October 30).

Successful project completion and confirmation of successful electronic transmission of crash reports by the California Highway Patrol is required before submission of invoice claims seeking reimbursement from OTS.

Prepare and submit quarterly performance reports (due January 30, April 30, July 30, and October 30).

Collect and report quarterly appropriate data that supports the progress of goals and objectives.

Provide a summary of quarterly accomplishments and explanations for objectives not completed.

Collect, analyze, and report statistical data relating to the grant goals and objectives.

Phase 3 - Data Collection Addendum:

Funding of this grant would allow implementation and completion within the 1 Quarter of the st grant cycle.

Application :: Page 6 of 9
Budget
Personnel Costs
Hourly Rates - When requesting hours for personnel, enter them as straight time or overtime (for Enforcement Overtime, please use section below) and include the amount of hours that they will spend on grant operations.

Example: Personnel getting paid 100% by the grant working a full year at $41.00 per hour would be entered as Straight time, 2080 Units, $41.00 Unit cost or Rate, and 100% Percent Paid by Grant. This gives a total of $85,280.00 for the year.

Benefits – If requesting benefits for personnel, enter all benefits as a separate line item for each. Start the Item Name with the word 'Benefits', enter the corresponding straight time or overtime total amount in the Unit Cost or Rate, and enter the Benefits Rate to have the system calculate Benefit Costs. (Unit Cost) X (Benefits Rate) = Benefit Costs. To properly relate benefits to the correct personnel line item use the Display Order field, for example use 100.0 for Display Order for the personnel line item and 100.1 for Display Order for the associated Benefits.

Display
Order
Cost
Category
Item
Name
Position
Type
Benefit
Rate
Unit Cost or
Rate Units Percent Paidby Grant
Calculated Cost
to Grant
Display
Order
Cost
Category
Enforcement
Activity
Item
Name
Unit Cost or
Rate Units Calculated Cost toGrant
Personnel Costs: $0.00
Travel Expenses
Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant Travel Expenses: $0.00
Contractual Services
Do not include brand names or names of specific organizations.

Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant Contractual Services: $0.00
Equipment (must have Unit Cost of at least $5,000)
Do not include brand names or names of specific organizations.

Please include an equipment quote in the Upload Documents Tab.

NOTE : When creating a new "Equipment" budget item, the Standard Language Item drop down list may not be available. When this is the case, complete only the required fields and save the budget item. Once saved, select the Edit button (pencil icon); the Standard Language Item drop down list will be available for selection. Alternatively, if not requesting a Standard Language Item, please utilize the Custom Narrative field to enter an appropriate narrative.

Application :: Page 7 of 9
Display
Order
Cost
Category Item Name Unit Cost orRate Units Calculated Cost toGrant 400.0 D.

Equipment
Traffic Crash Database System
Interface $24,800.00 1 $24,800.00
Equipment: $24,800.00
Other Direct Costs (must have Unit Cost of less than $5,000, including tax and shipping) Do not include brand names or names of specific organizations.

NOTE : When creating a new "Other Direct Cost" budget item, the Standard Language Item drop down list may not be available. When this is the case, complete only the required fields and save the budget item. Once saved, select the Edit button (pencil icon); the Standard Language Item drop down list will be available for selection. Alternatively, if not requesting a Standard Language Item, please utilize the Custom Narrative field to enter an appropriate narrative.

Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant 500.0 E. Other Direct Costs Communications $3,900.00 1 $3,900.00 Other Direct Costs: $3,900.00
Indirect Costs
Item Name should indicate the % and the Cost Category for Indirect Costs e.g. 15% of Salaries and Benefits. Use the Percent Paid by Grant for the Indirect Rate and the Unit Cost or Rate field to indicate the total amount for which Indirect Costs will be claimed. The system will calculate the Cost to Grant.

Indirect Cost Rate must be supported by a federally approved indirect cost rate letter and uploaded to the application.

Display Order Cost Category Item Name Indirect Rate Amount Subject to Indirect Calculated Cost to Grant Indirect Costs: $0.00
Total Requested Funding: $28,700.00

Application :: Page 8 of 9
Narrative Review
Review and update Narrative for Budget Items
Cost
Category Item Narrative Custom Narrative
D.

Equipment
Traffic Crash
Database
System
Interface
Computer programming required to interface crash database with other existing agency, Records Management Systems, or CHP’s Statewide Integrated Traffic Records System database allowing the systems to be electronically integrated for transfer of data.

Interface to upload
collision report data
and documents to
the CHP SWITRS
system
E. Other
Direct
Costs
Communications
Costs of telephone service, cellular data for a tablet or laptop, mail/messenger service (excluding overnight priority mail) and communications services.

Crossroads
application site
license
Upload Documents (Optional)
Please try to include all information in the application itself, but if necessary, upload additional documents here
Document Name Update Date/Time
Crossroads CHP 180 Module - Morgan Hill.pdf 1/10/2024 3:28 PM Crossroads CHP SWITRS Upload Cost Proposal - Morgan Hill.pdf 1/10/2024 3:27 PM

Application :: Page 9 of 9
Evaluation, Support, and Submittal
Evaluation, Support, and Submittal
Method of Evaluation:

Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

Administrative Support:

This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

Total Requested Funding:
$28,700.00

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State of California – Office of Traffic Safety

GRANT AGREEMENT

GRANT NUMBER
PT25184

1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)

2. NAME OF AGENCY 3. Grant Period
Morgan Hill Police Department From:

To:
10/01/2024
09/30/2025 4. AGENCY UNIT TO ADMINISTER GRANT
Morgan Hill Police Department

5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect.

6. Federal Funds Allocated Under This Agreement Shall Not Exceed: $87,000.00

7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
 Schedule A – Problem Statement, Goals and Objectives and Method of Procedure  Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable)  Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable)  Exhibit A – Certifications and Assurances
 Exhibit B* – OTS Grant Program Manual
 Exhibit C – Grant Electronic Management System (GEMS) Access *Items shown with an asterisk (*), are hereby incorporated by reference and made a part of this agreement as if attached hereto.

These documents can be viewed at the OTS home web page under Grants: www.ots.ca.gov.

We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the above described Grant terms and conditions.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

8. Approval Signatures
A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Shane Palsgrove
Police Chief
[email protected]
(408) 776-7318
16200 Vineyard Boulevard
Morgan Hill, CA 95037
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Christina Turner
City Manager
[email protected]
(408) 776-7382
17575 Peak Avenue
Morgan Hill, CA 95037
(Signature) (Date) (Signature) (Date)
C. FISCAL OFFICIAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Dat Nguyen
Finance Director
[email protected]
(408) 776-7379
17575 Peak Avenue
Morgan Hill, CA 95037
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Barbara Rooney
Director
[email protected]
(916) 509-3030
2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
(Signature) (Date) (Signature) (Date)

9/30/2024 3:52:11 PM Page 2 of 17

10. PROJECTED EXPENDITURES
FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED

EXPENDITURES

AGREEMENT
TOTAL $87,000.00

AMOUNT ENCUMBERED BY THIS DOCUMENT
I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above.
$87,000.00

PRIOR AMOUNT ENCUMBERED FOR THIS

AGREEMENT
$ 0.00
OTS ACCOUNTING OFFICER’S SIGNATURE DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE $87,000.00
E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9. SAM INFORMATION NAME: Carolyn Vu SAM #:

REGISTERED
ADDRESS:

CITY:

ZIP+4:

CG4EJ16FEMD8
17575 Peak Avenue
Morgan Hill
95037-4126
ADDRESS: 2208 Kausen Drive, Suite 300
Elk Grove, CA 95758

9/30/2024 3:52:11 PM Page 3 of 17
State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule A

GRANT NUMBER
PT25184

1. PROBLEM STATEMENT
The Morgan Hill Police Department (PD) is located in Santa Clara County at the southern end of what is known internationally as Silicon Valley. Our city comprises approximately 12 square miles nestled in between the cities of Gilroy to the south and San Jose, a large metropolitan area of over one million residents, to the north. We are primarily a suburban community that is unique in that we have residential, commercial, and retail development as well as agricultural land that is actively cultivated. We have a concentration of high-tech and manufacturing companies, but a majority of our residents travel daily to employment centers to the north and south of Morgan Hill. Our population is approximately 45,000 and our resident demographic is primarily households with school age children.

The continued growth of residential development over the past several years within our town has increased significantly. As a result of AB 330, Morgan Hill has seen an influx in large high density housing projects.

Many of the high-density housing projects are located along our most traveled arterial roadway: Monterey Road. This has led to an increase in pedestrian and bicycle traffic in our jurisdiction, especially in our downtown business district. During all hours of the day, especially on the weekends, our downtown is lively and vibrant with varied activities from dinner theater and shopping to the choice of over a dozen restaurants, and bars. While the city benefits greatly from this development, the impacts to the Morgan Hill PD have increased the need for additional enforcement due to a growing number of motorists driving through the downtown business district as well as pedestrians enjoying what our downtown offers.

This increase in residential development in our jurisdiction, as well as other nearby jurisdictions has significantly impacted traffic during the peak morning and afternoon commute hours. US Highway 101 runs through Morgan Hill and is significantly impacted by this increased volume of vehicular traffic in the northbound direction between 0500-0900 hours and the southbound direction between 1400-1800 hours. To avoid this, many commuters from outside Morgan Hill use two of our NB/SB arterial streets: Monterey Road and Butterfield Boulevard to bypass US 101. Soon, the Hale Road extension project will create an additional NB/SB arterial roadway and it is expected that this roadway will encourage additional drivers to bypass the 101 and enter onto city streets. Many times, the use of wayfinding apps direct commuters to use our arterial and surface streets to avoid the congestion on the freeway. In November of 2023, the city of Morgan Hill contracted Hexagon Transportation Consultants, Inc. to conduct a regional cut-through analysis of major segments within our jurisdiction. This study confirmed that 41% of northbound regional traffic cut through our city streets during the morning commute hours. Conversely, Hexagon Transportation Consultants report that 26% of southbound regional traffic cuts through our city streets to avoid the US 101. Commuters from outside our city along with the influx of new residents has resulted in congestion, crashes, as well as physical wear and tear on our roadways.

The Morgan Hill PD recognizes the need to address the issues that are affecting our community. Using the Crossroads Analytics for 2023, the city Morgan Hill observed a trend in our crash data. In 2023, MHPD recorded 231 vehicle crashes on our roadways. Of the 231 crashes, 91 crashes involved injuries with a total of 137 victims. 16 of the 91 injury crashes involved alcohol with 28 victims. It should be noted that impaired driving was associated to 39 property damage only crashes. Addressing impaired drivers is paramount to this department. Other than identifying impaired drivers at the scene of these crashes, Morgan Hill PD is dedicated to apprehending impaired drivers. In 2023, a total of 247 motorists were arrested for driving under the influence of alcohol, drugs, or a combination of both.

While reviewing the crash data, it should be noted that unsafe speed and traffic signal/ sign violations were the leading causes of crashes. The Morgan Hill PD observed 19 injury crashes with 26 victims were a result of the at-fault driver traveling at an unsafe speed. Also, there were 19 injury crashes with 19 victims where the primary crash factor was a traffic signal or sign violation. These top three primary crash factors represented almost two thirds of our crashes.

To lower the number of victims of vehicle crashes, Morgan Hill PD has made it a priority to conduct directed enforcement and education. In 2023, the department issued 2,291 citations, with 1,480 citations for

9/30/2024 3:52:11 PM Page 4 of 17
moving/hazardous violations. We have seen our traffic index (moving violations/injury crashes) rise from

8.4% in 2022 to 16.3% in 2023. Our commitment to safe roadways will see our index increase and the directed enforcement and education will lower the number of injury crashes and victims.

By addressing impaired drivers, speeding motorists and drivers that fail to yield to traffic signals and signs, Morgan Hill PD will make our roads safer for our community. With continued partnership form the Office of Traffic Safety, the Morgan Hill PD is able to continue targeted enforcement of unsafe speed, driving under the influence, and traffic signals and signs violations and will lead to corrected behavior. In turn our community members and visitors to our city will enjoy safer roadways.

2. PERFORMANCE MEASURES
A. Goals:

1. Reduce the number of persons killed in traffic crashes.

2. Reduce the number of persons injured in traffic crashes.

3. Reduce the number of pedestrians killed in traffic crashes.

4. Reduce the number of pedestrians injured in traffic crashes.

5. Reduce the number of bicyclists killed in traffic crashes.

6. Reduce the number of bicyclists injured in traffic crashes.

7. Reduce the number of persons killed in alcohol-involved crashes.

8. Reduce the number of persons injured in alcohol-involved crashes.

9. Reduce the number of persons killed in drug-involved crashes.

10. Reduce the number of persons injured in drug-involved crashes.

11. Reduce the number of persons killed in alcohol/drug combo-involved crashes.

12. Reduce the number of persons injured in alcohol/drug combo-involved crashes.

13. Reduce the number of motorcyclists killed in traffic crashes.

14. Reduce the number of motorcyclists injured in traffic crashes.

15. Reduce hit & run fatal crashes.

16. Reduce hit & run injury crashes.

17. Reduce nighttime (2100 - 0259 hours) fatal crashes.

18. Reduce nighttime (2100 - 0259 hours) injury crashes.

B. Objectives: Target Number

1. Issue a press release announcing the kick-off of the grant by November 15. The kick-off press releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 7 days prior to the issuance date of the release.
1 2. Participate and report data (as required) in the following campaigns; Quarter 1:

National Pedestrian Safety Month, National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: National Speed Prevention Campaigns, NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month.
12 3. Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly. 12 4. Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training. 2 5. Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training. 2 6. Send law enforcement personnel to the Drug Recognition Expert (DRE) training (classroom and field training must be completed).
1 7. Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for 2

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each checkpoint. For combination DUI/DL checkpoints, departments should issue press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.

8. Conduct DUI Saturation Patrol operation(s). 7

9. Conduct Court Sting operation(s) to cite individuals driving to and from the court after having their driver's license suspended or revoked. 2 10. Conduct Warrant Service operation(s) targeting multiple DUI offenders who fail to appear in court.
1 11. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
9 12. Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
3 13. Conduct Traffic Safety educational presentation(s) with an effort to reach community members. Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
3 14. Conduct Know Your Limit campaigns with an effort to reach members of the community.
2 15. Send law enforcement personnel to DUI Checkpoint Planning and Management training.
2 3. METHOD OF PROCEDURE
A. Phase 1 – Program Preparation (1st Quarter of Grant Year)  The department will develop operational plans to implement the “best practice” strategies outlined in the objectives section.
 All training needed to implement the program should be conducted in the first quarter.  All grant related purchases needed to implement the program should be made in the first quarter.  In order to develop/maintain the “DUI BOLOs,” research will be conducted to identify the “worst of the worst” repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. The DUI BOLO may include the driver’s name, last known address, DOB, description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly.  Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.

Media Requirements:

Issue a press release approved by the OTS PIO announcing the kick-off of the grant by November 15, but no sooner than October 1. The kick-off release must be approved by the OTS PIO and only distributed after the grant is fully signed and executed. If you are unable to meet the November 15 deadline to issue a kick-off press release, communicate reasons to your OTS grant coordinator and OTS PIO.

B. Phase 2 – Program Operations (Throughout Grant Year) Media Requirements
The following requirements are for all grant-related activities:
 Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
 Send all Powerpoint presentations, online presentations and trainings for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Certified training courses are EXEMPT from the approval process.

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 The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the OTS grant coordinator.  Pre-approval is not required when using any OTS-supplied template for media advisories, press releases, social media graphics, videos or posts, or any other OTS-supplied educational material.

However, copy the OTS PIO at [email protected] and your OTS grant coordinator when any material is distributed to the media and public, such as a press release, educational material, or link to social media post. The OTS-supplied kick-off press release templates, and any kickoff press releases are an exception to this policy and require prior approval before distribution to the media and public.
 If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy to your OTS grant coordinator. Optimum lead time would be 7 days prior to the scheduled release date, but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
 Press releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are exempt from the OTS PIO approval process. The OTS PIO and your OTS grant coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
 Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are exempt from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your OTS grant coordinator with embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email.  Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval. Please send to the OTS PIO at [email protected] for approval and copy your grant coordinator at least 3 business days prior to the scheduled release date.
 Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
 Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS grant coordinator for approval prior to the production or duplication.  Use the following standard language in all press, media, and printed materials, space permitting:

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.  Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult your OTS grant coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.  Email the OTS PIO at [email protected] and copy your OTS grant coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage, so OTS has sufficient notice to arrange for attendance and/or participation in the event. If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grant-related event or program. Media and program highlights are to be reflected in QPRs.  Any press releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received OTS PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year.  For additional guidance, refer to the OTS Grants Materials Approval Process Guidelines and OTS Grants Media Approval Process FAQs on the OTS website.

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 Contact the OTS PIO or your OTS grant coordinator for consultation when changes from any of the above requirements might be warranted.

C. Phase 3 – Data Collection & Reporting (Throughout Grant Year)

1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)

2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
 Collect and report quarterly, appropriate data that supports the progress of goals and objectives.  Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
 Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
 Collect, analyze and report statistical data relating to the grant goals and objectives.

4. METHOD OF EVALUATION
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B

GRANT NUMBER
PT25184

FUND NUMBER CATALOG

NUMBER (CFDA)

FUND DESCRIPTION TOTAL AMOUNT
164AL-25 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$59,000.00
402PT-25 20.600 State and Community Highway
Safety
$28,000.00

COST CATEGORY FUND
NUMBER

UNIT COST OR
RATE

UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164AL-25 $13,000.00 2 $26,000.00
DUI Saturation Patrols 164AL-25 $2,150.00 7 $15,050.00
Warrant Service Operations 164AL-25 $1,450.00 1 $1,450.00 Court Stings 164AL-25 $1,450.00 2 $2,900.00
Traffic Enforcement 402PT-25 $1,700.00 9 $15,300.00
Know Your Limit 164AL-25 $1,375.00 2 $2,750.00
Distracted Driving 402PT-25 $2,000.00 3 $6,000.00
Traffic Safety Educational Presentations 402PT-25 $725.00 3 $2,175.00 Category Sub-Total $71,625.00
B. TRAVEL EXPENSES
In State Travel 402PT-25 $4,525.00 1 $4,525.00
$0.00
Category Sub-Total $4,525.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT
$0.00
Category Sub-Total $0.00
E. OTHER DIRECT COSTS
DUI Checkpoint Supplies 164AL-25 $4,000.00 1 $4,000.00
Portable Light Tower 164AL-25 $6,850.00 1 $6,850.00
Category Sub-Total $10,850.00
F. INDIRECT COSTS
$0.00
Category Sub-Total $0.00
GRANT TOTAL $87,000.00

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B-1

GRANT NUMBER
PT25184

BUDGET NARRATIVE

PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Warrant Service Operations - Overtime for grant funded Warrant Service Operations conducted by appropriate department personnel.

Court Stings - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Know Your Limit - Overtime for grant funded traffic safety presentations or campaigns conducted by appropriate department personnel.

Distracted Driving - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Traffic Safety Educational Presentations - Overtime for grant funded traffic safety educational presentations conducted by appropriate department personnel.

TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include Lifesavers in Long Beach and the OTS Traffic Safety Law Enforcement Forum. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.

Cost to send 1 Officer to DRE Training

CONTRACTUAL SERVICES
-

EQUIPMENT
-

OTHER DIRECT COSTS
DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device/Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies.

Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed. Each item must have a unit cost of less than $5,000 (including tax and shipping).

Portable Light Tower - High intensity light on a telescoping shaft and stabilized platform to illuminate a wide area for greater visibility during night time operations. Costs may include a generator, battery, cart, and accessories.

INDIRECT COSTS
-

STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant.

Nothing in this “agreement” shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.

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The OTS grant funded activities must be separate from the CHP Cannabis Tax Fund Grant Program activities and maintained under separate accounting/tracking/other codes (example: the same DUI checkpoint may not be funded by both the CHP and the OTS).

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Exhibit A

GRANT NUMBER
PT25184
Certifications and Assurances for Fiscal Year 2024 Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117-58) The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding. Applicable provisions include, but are not limited to, the following:

GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
 23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended;  Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58;  23 CFR part 1300—Uniform Procedures for State Highway Safety Grant Programs;  2 CFR part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
 2 CFR part 1201—Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

NONDISCRIMINATION
(applies to all subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). These include but are not limited to:
 Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
 49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964);  28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);  The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
 Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex);  Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27;  The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
 The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not);  Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38;  Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and LowIncome Populations (preventing discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations);
 Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (requiring that recipients of Federal financial assistance provide meaningful access for applicants and beneficiaries who have limited English proficiency (LEP));
 Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities through the Federal Government (advancing equity across the Federal Government); and  Executive Order 13988, Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation (clarifying that sex discrimination includes discrimination on the grounds of gender identity or sexual orientation).

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The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.

GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from DOT, including NHTSA.” The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.

SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:

1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in 49 CFR part 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.

2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
“The [name of Recipient], in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”

3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred in every contract or agreement subject to the Acts and the Regulations.

4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.

5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.

6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.

7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or b. the period during which the Recipient retains ownership or possession of the property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.

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By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any sub-recipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.

THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:

1. The dangers of drug abuse in the workplace;

2. The grantee's policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation, and employee assistance programs;

4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;

5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a);
c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will—

1. Abide by the terms of the statement;

2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction;
e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted—

1. Taking appropriate personnel action against such an employee, up to and including termination;

2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.

POLITICAL ACTIVITY (HATCH ACT)
(applies to all subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to all subrecipients as well as States)

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

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2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;

3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to all subrecipients as well as States)

INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)

1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.

4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.

6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.

7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or

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otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
(https://www.sam.gov/).

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS—

PRIMARY TIER COVERED TRANSACTIONS

1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency; b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.

2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.

INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or

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otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION—

LOWER TIER COVERED TRANSACTIONS

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.

CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)

GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:

1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.

2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.

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DISCLOSURE REQUIREMENTS
No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:

1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.

2. NHTSA will review the disclosure and may require additional relevant information from the recipient. If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.

3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.

PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to all subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.

POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website (www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.

POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving companyowned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving.

RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING AN AMENDMENT TO
THE CITY’S FISCAL YEAR 24-25 BUDGET
ACCEPTING GRANT PAYMENTS OF $215,700 FROM

CALIFORNIA STATE OFFICE OF TRAFFIC SAFETY AND

THE BYRNE DISCRETIONARY COMMUNITY PROJECT
AND APPROPRIATING $215,700 FOR OVERTIME

EXPENDITURES AND DUI CHECKPOINT SUPPLIES

RELATED TO DUI AND TRAFFIC ENFORCEMENT,
PURCHASE OF TWO BMW 1250 RT POLICE

MOTORCYCLES, AND A SOFTWARE UPGRADE TO THE

DEPARTMENTS TRAFFIC CITATION AND TRAFFIC

COLLISION SOFTWARE
WHEREAS, the City of Morgan Hill, a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (“City”), is authorized to enter into contracts and agreements for the benefit of the City; and WHEREAS, the reasons supporting the purchase described in, and that is the subject of, this Resolution are set forth in detail in that certain City Council Staff Report entitled Accept Grant Fund submitted for City Council consideration at its meeting of October 23, 2024, submitted to the City Council by the City Manager (the “Staff Report”), the contents of which Staff Report are incorporated herein by this reference; and
WHEREAS, recommended amendments are needed and proposed to the City’s previously adopted Annual Budget for Fiscal Year 24-25, as set forth to this Resolution, to appropriate the requisite funds to implement the actions authorized by this Resolution; and WHEREAS, the consideration by City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and has been placed upon the City Council Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council may have continued or deferred consideration of this Resolution, and on such date the City Council conducted a duly noticed public meeting at which meeting the City Council provided members of the public an opportunity to comment and be heard and considered any and all testimony and other evidence provided in connection with the adoption of this Resolution; and WHEREAS, the activities allowed under this Resolution do not constitute a project under the provisions of the California Environmental Quality Act of 1970 and WHEREAS, the City Council determines that the adoption of this Resolution is in the public interest.

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

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

Section 2. Approval and Authorization. The City Council does further resolve, order and/or

City of Morgan Hill
Resolution No. 24-XXX

direct as follows:
a. The City supports the payment for the overtime costs and DUI checkpoint supplies related to DUI and traffic enforcement, purchase of two 2024 BMW 1250 RT police motorcycles, and a software upgrade to the Police Department’s traffic citation and traffic collision software.
b. That the City’s previously adopted Fiscal Year 24-25 Budget, as the same has been amended to date, is hereby further amended in accordance with and as reflected on Exhibit A attached hereto and incorporated herein by this reference; and
c. That the City Clerk is hereby authorized and directed to forward a copy of this Resolution to the City’s Finance Director, who is hereby authorized and directed to take all actions necessary to implement the terms of this Resolution pertaining to the Fiscal Year 24-25 Budget of the City; and d. That the City Manager is hereby delegated authority to and is authorized to take all other ministerial actions that may be necessary or appropriate to implement the provisions of this Resolution.

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

PASSED AND ADOPTED by the City Council of the City of Morgan Hill at its meeting held on this 23rd day of October 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

DATE:

Mark Turner, MAYOR
➢ CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 24-XXX , adopted by the City Council at the meeting held on October 23, 2024.

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

DATE:

Michelle Bigelow, CITY CLERK

City of Morgan Hill
Resolution No. 24-XXX

EXHIBIT A

AGENDA BUDGET SCORECARD
FISCAL YEAR 2024-2025
ADJUSTMENT # 002
FUND: 010 General Fund
FUNCTION: 20 Public Safety
DEPARTMENT: 20 Police
DIVISION: 3210 Filed Operations
OBJECT: VARIOUS Various
AGENDA DATE: 10/23/24
AGENDA ITEM TITLE:
07/01/25
07/01/24 PROJECTED

PROJECTED AMENDED ENDING

BEGINNING FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 29,684,560 56,220,919 64,717,663 21,187,816 CUMULATIVE REVISIONS PRIOR - 53,123 53,123 -

TO RECOMMENDED ACTION
RECOMMENDED ACTION 215,700 215,700 -
RESULTOF RECOMMENDED ACTION 29,684,560 56,489,742 64,986,486 21,187,816 OTS and Byrne Grants

2 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Shane Palsgrove, Police Chief
APPROVED BY: City Manager
ADOPT RESOLUTION SUPPORTING PROPOSITION 36

RECOMMENDATION(S)
Adopt a resolution in support of Proposition 36: The Homeless, Drug Addition, and Theft Reduction Act.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Advocating for Local, Regional, and State Legislative Initiatives REPORT NARRATIVE:

In 2014, Proposition 47 changed the law so that some theft and drug crimes are charged as misdemeanors instead of as felonies. For example, shoplifting (stealing items worth $950 or less from a store) and drug possession generally become crimes charged as misdemeanors. Proposition 36, an initiative statute on the November 2024 ballot, makes several key changes related to punishments for theft and drug crimes.

Proposition 36 proposes the following key changes to California law as outlined in the California Legislative Analyst's Office Analysis (Attachment 1):

1. Increases punishment for some theft and drug crimes.

2. Creates a new treatment-focused court process for some drug possession crimes.

3. Requires courts to warn people convicted of selling or providing illegal drugs to others that they can be charged with murder if they keep doing so and someone dies.

Statewide, there is a growing coalition of elected officials, district attorneys, and law enforcement agencies supporting stronger penalties for retail theft and drug crimes via Proposition 36. The League of California Cities also supports Proposition 36.

Retail theft has impacted businesses in Morgan Hill. The following tables contain information regarding all thefts (including motor vehicle thefts and commercial

2 burglaries) organized by type from January 1, 2021 through September 24, 2024. At this time, data validation for 2024 is not complete.

Crime Type Sum of Property Loss
All Other Larceny $1,858,852
Burglary/Breaking and Entering $508,824
Motor Vehicle Theft $2,634,621
Pocket-Picking $49,776
Purse-Snatching $900
Shoplifting $382,246
Theft From Building $169,845
Theft From Coin-Operated Machine or
Device
$500
Theft From Motor Vehicle $526,193
Parts/Accessories From Motor Vehicle $96,546
Grand Total $6,228,303
Business Type
Sum of
Property
Loss
Auto Dealership
New/Used
$523,182
Clothing Store $32,025
Commercial/Office
Building
$1,461,910
Construction Site $435,266
Convenience Store $110,763
Department/Discount
Store
$227,062
Grocery/Supermarket $148,818
Hotel/Motel/Etc. $800,933
Parking/Drop
Lot/Garage
$2,127,948
Service/Gas Station $124,596
Specialty Store $187,290
Sporting Goods Store $48,510
Grand Total $6,228,303
Item Type Sum of Property
Loss
Alcohol $7,972
Artistic Supplies/Accessories $1,085
Automobiles $2,691,721
Bicycles $69,931

2 Building Materials $10,148
Camping/Hunting/Fishing
Equipment/Supplies
$206
Clothes/Furs $44,873
Computer Hardware/Software $91,463
Consumable Goods $16,704
Drug/Narcotic Equipment $211
Firearm Accessories $350
Firearms $10,158
Fuel $225
Heavy Construction/Industrial Equipment $377,957
Household Goods $13,597
Jewelry/Precious Metals/Gems $415,150
Law Enforcement Equipment $400
Lawn/Yard/Garden Equipment $16,569
Medical/Medical Lab Equipment $200,100
Merchandise $251,487
Money $87,081
Musical Instruments $2,700
Negotiable Instruments $1,200
Office-type Equipment $4,200
Other $970,346
Other Motor Vehicles $158,001
Photographic/Optical Equipment $3,150
Portable Electronic Communications $25,448
Purses/Handbags/Wallets $38,226
Radios/TVs/VCRs/DVD Players $11,078
Recreational/Sports Equipment $19,884
Structures Other $41,845
Structures Other Commercial/Business $25,275
Tools $331,275
Toys $290
Trailers $65,392
Trucks $73,000
Vehicle Parts/Accessories $149,557
Weapons Other $48
Grand Total $6,228,303
COMMUNITY ENGAGEMENT:

Inform - this report serves to inform the Community of the City's position on the upcoming ballot measure and how it will impact the City of Morgan Hill.

ALTERNATIVE ACTIONS:

The City Council may consider opposing Proposition 36, or take no formal stance, allowing individual members to advocate independently for their positions on the issue.

2 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

None.

FISCAL AND RESOURCE IMPACT:

If Proposition 36 is approved by voters, there may be fiscal impacts for the City of Morgan Hill, including:
• Increased Costs: The City may face increased costs related to law enforcement, legal processes, and correctional services due to more frequent felony charges and longer prison sentences for certain crimes.
• Reduced Savings: By undoing parts of Proposition 47, Proposition 36 reduces the state savings from Proposition 47. This would reduce the amount the state must spend on mental health and drug treatment, school truancy and dropout prevention, and victim services.

CEQA (California Environmental Quality Act):

Not a Project - administrative action/activity without an impact.

November 5, 2024 Ballot

PROPOSITION 36
Allows Felony Charges and Increases Sentences for Certain Drug and Theft Crimes. Initiative Statute.

ANALYSIS OF MEASURE

BACKGROUND
Punishment Depends on Seriousness of Crime and Criminal History Punishment for Felonies. A felony is the most serious type of crime. People can be sentenced to county jail or state prison for felonies, depending on the crime and their criminal history. In some cases, people can be supervised in the community by a county probation officer instead of serving some or all of their sentence in jail or prison. This is called county community supervision. The length of a sentence mostly depends on the crime. For example, murder can be punished by 15 years or more in prison. In contrast, selling drugs can be punished by up to five years in jail or prison, depending on the drug. Sentences can also be lengthened due to details of the crime. For example, sentences for selling certain drugs (such as fentanyl, heroin, cocaine, or methamphetamine) can be lengthened based on the amount sold.

Punishment for Misdemeanors. A misdemeanor is a less serious crime. Examples include assault and drug possession. People can be sentenced to county jail, county community supervision, and/or a fine for misdemeanors. Sentences can be up to one year in jail.

Proposition 47 Reduced Punishments for Some Theft and Drug Crimes In 2014, Proposition 47 changed some theft and drug crimes from felonies to misdemeanors.

For example, shoplifting (stealing items worth $950 or less from a store) and drug possession generally became misdemeanors.

PROPOSAL
Proposition 36 makes several key changes related to punishments for theft and drug crimes. First, it increases punishment for some of these crimes. Second, it creates a new treatment-focused court process for some drug possession crimes. Third, it requires courts to warn people convicted of selling or providing illegal drugs to others that they can be charged with murder if they keep doing so and someone dies.

November 5, 2024 Ballot

Increases Punishment for Some Theft and Drug Crimes
Proposition 36 increases punishment for some theft and drug crimes in three ways:
• Turns Some Misdemeanors Into Felonies. For example, currently, theft of items worth $950 or less is generally a misdemeanor. Proposition 36 makes this crime a felony if the person has two or more past convictions for certain theft crimes (such as shoplifting, burglary, or carjacking). The sentence would be up to three years in county jail or state prison. These changes undo some of the punishment reductions in Proposition 47. • Lengthens Some Felony Sentences. For example, Proposition 36 allows felony sentences for theft or damage of property to be lengthened by up to three years if three or more people committed the crime together.
• Requires Some Felonies Be Served in Prison. For example, as discussed above, sentences for selling certain drugs (such as fentanyl, heroin, cocaine, or methamphetamine) can be lengthened based on the amount sold. Currently, these sentences are served in county jail or state prison depending on the person’s criminal history. Proposition 36 generally requires these sentences be served in prison.

Creates New Court Process for Some Drug Possession Crimes Proposition 36 allows people who possess illegal drugs to be charged with a “treatment-mandated felony,” instead of a misdemeanor, in some cases. Specifically, this applies to people who (1) possess certain drugs (such as fentanyl, heroin, cocaine, or methamphetamine) and (2) have two or more past convictions for some drug crimes (such as possessing or selling drugs). These people would generally get treatment, such as mental health or drug treatment. Those who finish treatment would have their charges dismissed. Those who do not finish treatment could serve up to three years in state prison. This change undoes some of the punishment reductions in Proposition 47.

Requires Warning of Possible Murder Charges for Selling or Providing Drugs Proposition 36 requires courts to warn people that they could be charged with murder if they sell or provide illegal drugs that kill someone. This warning would be given to people convicted of selling or providing certain drugs (such as fentanyl, heroin, cocaine, and methamphetamine). This could make it more likely for them to be convicted of murder if they later sell or provide illegal drugs to someone who dies.

FISCAL EFFECTS
Proposition 36 would have various fiscal effects on the state and local governments. The size of these effects would depend on uncertain factors, such as what decisions local prosecutors would make.

Increases State Criminal Justice Costs. Proposition 36 would increase state criminal justice costs in two main ways.
• Increase in State Prison Population. It would require some people who now serve their sentences at the county level to serve them in state prison. Also, it lengthens some prison sentences. In total, the prison population could increase by around a few thousand people. (There are about 90,000 people in prison now.)

November 5, 2024 Ballot

• Increase in State Court Workload. This is because felonies usually take more time to resolve than misdemeanors. Also, treatment-mandated felonies would increase court workload.

In total, Proposition 36 would increase state criminal justice costs, likely ranging from several tens of millions of dollars to the low hundreds of millions of dollars each year (annually). This amount is less than one-half of 1 percent of the state’s total General Fund budget. (The General Fund is the account the state uses to pay for most public services, including education, health care, and prisons.)
Increases Local Criminal Justice Costs. Proposition 36 would increase local criminal justice costs in two main ways.
• Net Increase in County Jail and Community Supervision Population. In some ways, Proposition 36 would reduce the jail and community supervision population. This is because some people would go to state prison instead of the county level. In other ways, it would increase this population. This is because some people would spend more time in county jail or on community supervision. Overall, Proposition 36 likely would increase the county population. This increase could be around a few thousand people. (There are about 250,000 people at the county level now.) • Increase in Local Court-Related Workload. It would also increase workload for local prosecutors and public defenders. This is because felonies usually take more time to resolve than misdemeanors. Also, treatment-mandated felonies would create workload for some county agencies (such as probation or behavioral health departments).

In total, Proposition 36 would increase local criminal justice costs, likely by tens of millions of dollars annually.

Reduces Amount State Must Spend on Certain Services. Proposition 47 created a process in which the estimated state savings from its punishment reductions must be spent on mental health and drug treatment, school truancy and dropout prevention, and victim services. These estimated savings totaled $95 million last year. By undoing parts of Proposition 47, Proposition 36 reduces the state savings from Proposition 47. This would reduce the amount the state must spend on mental health and drug treatment, school truancy and dropout prevention, and victim services. This reduction likely would be in the low tens of millions of dollars annually.

Other Fiscal Impacts. Proposition 36 could have other fiscal effects on the state and local governments. For example, if the increased punishments or mandated treatment reduce crime, some state and local criminal justice costs could be avoided. However, it is unknown if these or other effects would occur.

November 5, 2024 Ballot

YES/NO STATEMENT
A YES vote on this measure means: People convicted of certain drug or theft crimes could receive increased punishment, such as longer prison sentences. In certain cases, people who possess illegal drugs would be required to complete treatment or serve up to three years in prison.

A NO vote on this measure means: Punishment for drug and theft crimes would remain the same.

SUMMARY OF LEGISLATIVE ANALYST’S ESTIMATE OF NET STATE AND

LOCAL GOVERNMENT FISCAL IMPACT
• Increased state criminal justice costs, likely ranging from several tens of millions of dollars to the low hundreds of millions of dollars annually, primarily due to an increase in the prison population.
• Increased local criminal justice costs, likely in the tens of millions of dollars annually, primarily due to county jail, community supervision, and court-mandated mental health and drug treatment workload.

BALLOT LABEL
Fiscal Impact: State criminal justice costs likely ranging from several tens of millions of dollars to the low hundreds of millions of dollars annually. Local criminal justice costs likely in the tens of millions of dollars annually.

RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL IN SUPPORT OF PROPOSITION 36:

THE HOMELESS, DRUG ADDICTION, AND THEFT

REDUCTION ACT
WHEREAS, while Prop 47 achieved notable success in making California’s criminal justice system more equitable, Prop 47 has also led to unintended consequences over the past decade; and
WHEREAS, unintended consequences of Prop 47 include repeat and often organized retail theft, inner-city store closings, and difficulty convincing people to seek drug and mental health treatment; and
WHEREAS, these unintended consequences can only be corrected by the voters at the ballot box with modest amendments to Prop 47; and
WHEREAS, Prop 36, the Homelessness, Drug Addiction, and Theft Reduction Act is a bi-partisan measure that provides common sense, targeted reforms to Prop 47 that legislative proposals alone are unable to deliver; and
WHEREAS, rampant retail theft is harming businesses and residents in California because those who commit these crimes know they’ll get away with it, even if they are caught; and
WHEREAS, this measure will hold repeat offenders accountable for the safety of our communities, rather than putting them back on the streets; and WHEREAS, the fentanyl crisis has reached alarming levels, and is now responsible for 20 percent of youth deaths in California; and
WHEREAS, Prop 36, the Homelessness, Drug Addiction, and Theft Reduction Act will define fentanyl as a hard drug, hold individuals convicted of trafficking fentanyl accountable, and grant judges greater discretion in sentencing drug traffickers; and WHEREAS, breaking the cycle of repeat offenders means addressing the many root causes of retail theft; and
WHEREAS, Prop 36, the Homelessness, Drug Addiction, and Theft Reduction Act provides critical mental health, drug treatment services, and job training within our justice system for people who are homeless and suffering from mental illness or struggling with substance abuse; and

City of Morgan Hill
Resolution No. 24-00_

WHEREAS, it’s time for meaningful reforms to our justice system that ensure our communities are safe;

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

The City of Morgan Hill formally expressed support for Prop 36, the Homelessness, Drug Addiction, and Theft Reduction Act and the benefit that it provides for our community’s safety.

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 23rd day of October, 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ ________________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No.24-XXX adopted by the City Council at the meeting held on the 23rd day of October, 2024.

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

City of Morgan Hill
Resolution No. 24-00_

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

3 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

David Gittleson, Associate Engineer
APPROVED BY: City Manager

APPROVE ACQUISITION OF SEWER EASEMENT FROM PG&E (APN
841-10-027 & 039) FOR THE SEWER RELIEF TRUNK LINE PROJECT

RECOMMENDATION(S)

1. Authorize the purchase of a sewer easement (9,476 square feet), APN 841-10- 027 and APN 841-10-039, for $23,000 plus escrow and closing costs from Pacific Gas and Electric (PG&E), for the Sewer Relief Trunk Line Project; and

2. Authorize the City Manager to execute all documents and make minor modifications as necessary in order to consummate the transaction and acquire the easement.

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
Morgan Hill 2035 General Plan
Wastewater System Master Plan
REPORT NARRATIVE:

As part of the Sewer Relief Trunk Line Project (Attachment 3-Project Location), the City needs to obtain three additional sewer easements along the proposed sewer trunk alignment prior to completing the design. One required easement is from PG&E at the PG&E substation at the end of Renz lane in Gilroy. The City has been working with PG&E since August 2022 to obtain the necessary easement and has finally reached an agreement to purchase the 9,476 square foot sewer easement for $23,000 (Attachment 1-PG&E Sewer Agreement).

The two remaining easements that need to be acquired for the project are from the

3 Nguyen Family and the City of Gilroy. Staff is in the process of finalizing the acquisition of the sewer easement from the Nguyen Family and the City of Gilroy and plan to seek City Council approval of the acquisition in the next two months.

Staff recommends that City Council approve the easement purchase as: 1) the easement is required for the project, 2) the property owner is a willing seller, and 3) the cost to litigate would be substantially greater. The purchase price is $23,000 plus escrow, closing costs, and title insurance.

COMMUNITY ENGAGEMENT:

Inform
Numerous community engagement and design meetings were held throughout the early planning and design phases of the project. In addition, the Environmental Report process also included opportunities for the community to provide input regarding the scope, content, and potential environmental impacts from the project. Staff will continue to provide updates throughout the design and construction phases on the City's website and through Nextdoor.

ALTERNATIVE ACTIONS:

No feasible alternative options. Without the sewer easement, the City would not be able to install the sewer relief trunk line as designed. The current alignment was previously approved by the City of Gilroy. Changing the alignment now would be cost prohibitive and would not guarantee that other easements would not be required.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On May 4, 2016, City Council approved a design agreement with HydroScience Engineers, Inc. for $651,760 for the preparation of design plans and specifications for the sewer trunk segment between Highland Avenue and Cohansey Avenue.

On April 19, 2017, City Council approved a First Amendment with Hydroscience Engineers, Inc. for $521,900 to accelerate and extend the design to Renz Lane in Gilroy.

On December 15, 2021, City Council approved a Fourth Amendment with Hydroscience Engineers, Inc. for an additional $75,000 and approved and certified the project's Mitigated Negative Declaration.

On November 16, 2022, City Council approved the acquisition of the Patel sewer easement for the Sewer Relief Trunk Line Project.

On August 23, 2023, City Council approved the acquisition of the Tsai sewer easement for the Sewer Relief Trunk Line Project.

FISCAL AND RESOURCE IMPACT:

Sufficient funds for the sewer easement acquisition plus escrow and closing costs have been budgeted for the project. Closing costs are estimated at $2,000, thus the total

3 price to acquire the easement is approximately $25,000. The project is budgeted in the approved Fiscal Year 2024-25 through 2029-30 Capital Improvement Program under CIP WW3008 in the Sewer Impact Fund (641).

CEQA (California Environmental Quality Act):

Not a Project
The sewer easement acquisition is not considered a project, as defined in Section 15378 of the State CEQA Guidelines. However, the Sewer Relief Trunk Line project itself is a project. David J. Powers prepared an Initial Study and the City Council approved and certified a mitigated negative declaration at the December 15, 2021 City Council meeting.

Grant of Easement, Third Party (REV 04/2023)
LD __________
_________________
Sewer Easement (_________________)

RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

PACIFIC GAS AND ELECTRIC COMPANY
300 Lakeside Drive, Suite 210
Oakland, CA 94612
Attn: Land Rights Library
Location: City of Gilroy
Recording Fee $0.00 (Government Code Section 27383)
Document Transfer Tax $0.00 (Revenue and Taxation Code Section 11922) [ ] This is a conveyance where the consideration and
Value is less than $100.00 (R&T 11911).
[ ] Computed on Full Value of Property Conveyed, or
[ ] Computed on Full Value Less Liens
& Encumbrances Remaining at Time of Sale
[ ] Exempt from the fee per GC 27388.1 (a) (2); This
document is subject to Documentary Transfer Tax

Signature of declarant or agent determining tax
(A portion of APN 841-10-027; 841-10-039)

EASEMENT AGREEMENT
(Sewer Line Easement)
This Easement Agreement (“Agreement”) is made and entered into this __________________________ (the “Effective Date”) by PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, hereinafter called “PG&E”, and CITY OF MORGAN HILL, a Municipal Corporation of the State of California hereinafter called “Grantee.”

RECITALS
A. PG&E owns certain real property within the County of Santa Clara State of California, commonly known as Llagas Substation, Assessor’s Parcel Number 841-10-027, 841-10- 039, State Board of Equalization No. 135-43-072A-2, 135-43-072A-1 and more particularly described in Exhibit A, attached hereto and made a part hereof (hereinafter, the “Property”).

B. Grantee proposes to construct a sewer line on the Property, and in connection therewith, Grantee has requested that PG&E grant an easement to excavate, construct, reconstruct, replace (of the initial or any other size), remove, maintain, inspect, and use

02898.228.0007.f Page 2
facilities and associated equipment for public sewer purposes, as shown in Exhibit B (hereinafter, the “Facilities”).

C. PG&E is willing to grant such easement(s) on the terms and subject to the conditions set forth herein.

Now, therefore, in consideration of Grantee’s agreement to pay the sum of Twenty-Three Thousand Dollars ($23,000), for good and valuable consideration, PG&E and Grantee agree as follows:

1. Grant of Easement(s): PG&E hereby grants to Grantee, upon the terms and conditions set forth in this Agreement, the following easement(s):
(a) Sewer Easement: A non-exclusive easement to excavate, construct, reconstruct, replace (of the initial or any other size), remove, maintain, inspect, and use facilities and associated equipment for public sewer purposes on and under a portion of the Property (the “Easement Area”) described in EXHIBIT A and shown upon EXHBIT B

1. Limitations on Use.
(a) The Easement Area, and any facilities permitted to be constructed thereon, are to be used by Grantee only for those uses permitted in Section 1 above, and for no other purpose.
(b) PG&E reserves the right to restrict access to the Easement Area or any portion or portions thereof in the event of fire, earthquake, storm, riot, civil disturbance, or other casualty or emergency, or in connection with PG&E’s response thereto, or if emergency repairs or maintenance are required to PG&E facilities within or in the vicinity of the Easement Area, or otherwise when PG&E deems it advisable to do so, including in connection with events and emergencies occurring or affecting PG&E’s business operations located elsewhere than in the immediate vicinity of the Property.

2. Condition of Easement Area. Grantee accepts the Easement Area in its existing physical condition, without warranty by PG&E or any duty or obligation on the part of PG&E to maintain the Easement Area. Grantee acknowledges that one or more of the following (collectively, “Potential Environmental Hazards”) may be located in, on or underlying the Property and/or the Easement Area:
(a) electric fields, magnetic fields, electromagnetic fields, electromagnetic radiation, power frequency fields, and extremely low frequency fields, however designated, and whether emitted by electric transmission lines, other distribution equipment or otherwise (“EMFs”);
(b) Hazardous Substances (as hereinafter defined). For purposes hereof, the term “Hazardous Substances” means any hazardous or toxic material or waste which is or becomes regulated by Legal Requirements (as hereinafter defined) relating to the protection of

02898.228.0007.f Page 3
human health or safety, or regulating or relating to industrial hygiene or environmental conditions, or the protection of the environment, or pollution or contamination of the air, soil, surface water or groundwater, including, but not limited to, laws, requirements and regulations pertaining to reporting, licensing, permitting, investigating and remediating emissions, discharges, releases or threatened releases of such substances into the air, surface water, or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of such substances. Without limiting the generality of the foregoing, the term Hazardous Substances includes any material or substance:
(1) now or hereafter defined as a “hazardous substance,” “hazardous waste,” “hazardous material,” “extremely hazardous waste,” “restricted hazardous waste” or “toxic substance” or words of similar import under any applicable local, state or federal law or under the regulations adopted or promulgated pursuant thereto, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§9601 et seq. (“CERCLA”); the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et seq.; the Clean Air Act, 42 U.S.C. §§7401 et seq.; the Clean Water Act, 33 U.S.C. §§1251 et seq.; the Toxic Substance Control Act, 15 U.S.C. §§2601 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. §§136 et seq.; the Atomic Energy Act of 1954, 42 U.S.C. §§2014 et seq.; the Nuclear Waste Policy Act of 1982, 42 U.S.C. §§10101 et seq.; the California Hazardous Waste Control Law, Cal. Health and Safety Code §§25100 et seq.; the Porter-Cologne Water Quality Control Act, Cal. Water Code §§13000 et seq.; the CarpenterPresley-Tanner Hazardous Substance Account Act (Health and Safety Code §§25300 et seq.); and the Medical Waste Management Act (Health and Safety Code §§25015 et seq.); or (2) which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous, and is now or hereafter regulated as a Hazardous Substance by the United States, the State of California, any local governmental authority or any political subdivision thereof, or which cause, or are listed by the State of California as being known to the State of California to cause, cancer or reproductive toxicity; or (3) the presence of which on the Property poses or threatens to pose a hazard to the health or safety of persons on or about the Property or to the environment; or (4) which contains gasoline, diesel fuel or other petroleum hydrocarbons; or
(5) which contains lead-based paint or other lead contamination, polychlorinated biphenyls (“PCBs”) or asbestos or asbestos-containing materials or urea formaldehyde foam insulation; or
(6) which contains radon gas;
(c) fuel or chemical storage tanks, energized electrical conductors or equipment, or natural gas transmission or distribution pipelines; and (d) other potentially hazardous substances, materials, products or conditions.

02898.228.0007.f Page 4
Grantee shall be solely responsible for the health and safety of, and shall take all necessary precautions to protect, its employees, contractors, consultants, agents and invitees (“Grantee’s Representatives”) from risks of harm from Potential Environmental Hazards. Grantee acknowledges that it has previously evaluated the condition of the Easement Area and all matters affecting the suitability of the Easement Area for the uses permitted by this Agreement, including, but not limited to, the Potential Environmental Hazards listed herein.

3. Grantee’s Covenants. Grantee hereby covenants and agrees:
(a) Construction of Improvements. Grantee agrees to construct and install, at no cost to PG&E, such facilities and improvements (“Improvements”) as may be necessary and appropriate for Grantee’s permitted use, as specified in Section 1. All such construction shall be performed in accordance with detailed plans and specifications (“Plans”) previously approved by PG&E and shall comply with all Legal Requirements. Before commencing construction of any Improvements, Grantee shall obtain all permits, authorizations or other approvals, at Grantee’s sole cost and expense as may be necessary for such construction. Without limiting the generality of the foregoing, Grantee shall be responsible for complying with any and all applicable requirements of the National Environmental Policy Act (“NEPA”) and the California Environmental Quality Act (“CEQA”) and satisfying, at Grantee’s sole expense, any and all mitigation measures under CEQA that may apply to Grantee’s proposed occupancy and use of the Easement Area, and to the construction, maintenance and use of Grantee’s proposed Improvements and facilities. Grantee shall promptly notify PG&E of any and all proposed mitigation measures that may affect PG&E or the Property. If PG&E determines in good faith that any such mitigation measures may adversely affect PG&E or the Property, or impose limitations on PG&E’s ability to use the Property as specified in Section 8, then PG&E shall have the right, without liability to Grantee, to give notice of termination of this Agreement to Grantee, whereupon this Agreement and the rights granted to Grantee shall terminate and revest in PG&E, unless within ten (10) days following delivery of such notice, Grantee gives notice to PG&E by which Grantee agrees to modify its proposed Project (as that term is defined under CEQA) so as to eliminate the necessity for such mitigation measures. In the event of such termination, PG&E and Grantee shall each be released from all obligations under this Agreement, except those which expressly survive termination. Grantee acknowledges and agrees that PG&E’s review of Grantee’s Plans is solely for the purpose of protecting PG&E’s interests, and shall not be deemed to create any liability of any kind on the part of PG&E, or to constitute a representation on the part of PG&E or any person consulted by PG&E in connection with such review that the Plans or the Improvements contemplated by such Plans are adequate or appropriate for any purpose, or comply with applicable Legal Requirements. Grantee shall not commence construction or installation of any Improvements without the prior written consent of PG&E, which consent shall not be unreasonably withheld, conditioned or delayed, and the prior consent, to the extent required by applicable law or regulation, of the California Public Utilities Commission (hereinafter, “CPUC”);
(b) Compliance with Laws. Grantee shall, at its sole cost and expense, promptly comply with (a) all laws, statutes, ordinances, rules, regulations, requirements or orders of municipal, state, and federal authorities now in force or that may later be in force, including, but not limited to, those relating to the generation, use, storage, handling, treatment, transportation or disposal of Hazardous Substances, as defined herein, or to health, safety, noise, environmental protection, air quality or water quality; (b) the conditions of any permit, occupancy certificate,

02898.228.0007.f Page 5
license or other approval issued by public officers relating to Grantee’s use or occupancy of the Easement Area; and (c) with any liens, encumbrances, easements, covenants, conditions, restrictions and servitudes (if any) of record, or of which Grantee has notice, which may be applicable to the Easement Area (collectively, “Legal Requirements”), regardless of when they become effective, insofar as they relate to the use or occupancy of the Easement Area by Grantee.

Grantee shall furnish satisfactory evidence of such compliance upon request by PG&E. The judgment of any court of competent jurisdiction, or the admission of Grantee in any action or proceeding against Grantee, whether or not PG&E is a party in such action or proceeding, that Grantee has violated any Legal Requirement relating to the use or occupancy of the Easement Area, shall be conclusive of that fact as between PG&E and Grantee. (c) Notice of Enforcement Proceedings. Grantee agrees to notify PG&E in writing within three (3) business days of any investigation, order or enforcement proceeding which in any way relates to the Property, or to any contamination or suspected contamination on, within or underlying the Property. Such notice shall include a complete copy of any order, complaint, agreement, or other document which may have been issued, executed or proposed, whether draft or final;
(d) Non-Interference. Grantee agrees not to interfere in any way or permit any interference with the use of the Property by PG&E and other entitled persons. Interference shall include, but not be limited to, any activity by Grantee that places any of PG&E’s gas or electric facilities in violation of any of the provisions of General Order Nos. 95 (Overhead Electric), 112 (Gas), and 128 (Underground Electric) of the CPUC or to any other Legal Requirements under which the operations of utility facilities are controlled or regulated. Grantee shall not erect, handle, or operate any tools, machinery, apparatus, equipment, or materials closer to any of PG&E’s highvoltage electric conductors than the minimum clearances set forth in the High-Voltage Electrical Safety Orders of the California Division of Industrial Safety; which minimum clearances are incorporated herein by reference; but in no event closer than ten (10) feet to any energized electric conductors or appliances. Grantee shall not drill, bore, or excavate within thirty (30) feet of any of PG&E’s underground facilities, including, but not limited to, gas pipelines, valves, regulators or electric conduits. Grantee shall provide notice to Underground Service Alert at 1-800-227-2600 at least two (2) business days prior to commencing any drilling, boring or excavating permitted hereunder to assist Grantee with locating any and all underground facilities, including, but not limited to, gas pipelines, valves, regulators or electric conduits; (e) Avoiding Dangerous Activities. Grantee agrees to conduct its activities and operations within and on the Easement Area in such a manner so as not to endanger the Property, PG&E’s utility facilities, the environment and human health and safety. Grantee shall not cause or permit any Hazardous Substances, as defined herein, to be brought upon, produced, stored, used, discharged or disposed of on, or in the vicinity of the Property, except in compliance with all applicable Legal Requirements. Grantee shall be responsible for the cost of remediating any discharge or release of Hazardous Substances resulting from or arising in connection with Grantee’s use of the Property and shall immediately notify PG&E and the appropriate regulatory authorities where required by law, of any such release. If PG&E determines that Grantee’s activities in any way endanger the Property, PG&E’s utility facilities, the environment, or human health and safety, PG&E may, in PG&E’s sole and absolute discretion, require that Grantee halt such activities until appropriate protective measures are taken to PG&E’s satisfaction. Grantee

02898.228.0007.f Page 6
shall hold PG&E harmless from any claims resulting from any delay under this paragraph.

PG&E’s right to halt activities under this paragraph shall not in any way affect or alter Grantee’s insurance or indemnity obligations under this Agreement, nor shall it relieve Grantee from any of its obligations hereunder that pertain to health, safety, or the protection of the environment; (f) Maintenance. Grantee agrees to maintain its facilities and Improvements in good condition and repair, and be responsible for the security of, the facilities installed hereunder; (g) Repairing Damage. Grantee agrees to repair any damage it may cause to PG&E’s facilities and improvements in or around said Easement Area; (h) Coordination. Grantee agrees to coordinate all activities regarding the easements granted herein to reasonably minimize any interference and inconvenience with the use by PG&E of the Easement Area and PG&E’s adjoining lands. (i) ; and
(j) PG&E Right to Cure. Grantee agrees that if Grantee fails to perform any act or other obligation on its part to be performed hereunder, and such failure is not remedied within fifteen (15) days following notice from PG&E (or in the case of an emergency, following such notice, if any, as may be reasonably practicable under the existing circumstances), PG&E may (but without obligation to do so, and without waiving or releasing Grantee from any of its obligations) perform any such act or satisfy such obligation, or otherwise remedy such emergency or such failure on the part of Grantee. All costs incurred by PG&E in responding to or remedying such failure by Grantee shall be payable by Grantee to PG&E on demand.

4. Indemnification; Release.
(a) Grantee shall, to the maximum extent permitted by law, indemnify, protect, defend and hold harmless PG&E, its parent corporation, subsidiaries and affiliates, and their respective officers, managers, directors, representatives, agents, employees, transferees, successors and assigns (each, an “Indemnitee” and collectively, “Indemnitees”) from and against all claims, losses (including, but not limited to, diminution in value), actions, demands, damages, costs, expenses (including, but not limited to, experts fees and reasonable attorneys’ fees and costs) and liabilities of whatever kind or nature (collectively, “Claims”), including Claims arising from the passive or active negligence of the Indemnitees, which arise from or are in any way connected with the occupancy or use of the Easement Area by Grantee or Grantee’s Representatives, or the exercise by Grantee of its rights hereunder, or the performance of, or failure to perform, Grantee’s duties under this Agreement, including, but not limited to, Claims arising out of: (1) injury to or death of persons, including but not limited to employees of PG&E or Grantee (and including, but not limited to, injury due to exposure to EMFs and other Potential Environmental Hazards in, on or about the Property); (2) injury to property or other interest of PG&E, Grantee or any third party; (3) violation of any applicable federal, state, or local laws, statutes, regulations, or ordinances, including all Legal Requirements relating to human health or the environment, and including any liability which may be imposed by law or regulation without regard to fault; excepting only with respect to any Indemnitee, to the extent of any Claim arising from the sole negligence or willful misconduct of such Indemnitee. Without limiting the generality of the foregoing, Grantee shall, to

02898.228.0007.f Page 7
the maximum extent permitted by law, indemnify, protect, defend and hold Indemnitees harmless from and against Claims arising out of or in connection with any work of improvement constructed or installed at or on, labor performed on, or materials delivered to, or incorporated in any improvements constructed on, the Easement Area by, or at the request or for the benefit of, Grantee. In the event any action or proceeding is brought against any Indemnitee for any Claim against which Grantee is obligated to indemnify or provide a defense hereunder, Grantee upon written notice from PG&E shall defend such action or proceeding at Grantee’s sole expense by counsel approved by PG&E, which approval shall not be unreasonably withheld, conditioned or delayed.
(b) Grantee acknowledges that all Claims arising out of or in any way connected with releases or discharges of any Hazardous Substance, or the exacerbation of a Potential Environmental Hazard, occurring as a result of or in connection with Grantee’s use or occupancy of the Easement Area or the surrounding Property, or any of the activities of Grantee and Grantee’s Representatives, and all costs, expenses and liabilities for environmental investigations, monitoring, containment, abatement, removal, repair, cleanup, restoration, remediation and other response costs, including reasonable attorneys’ fees and disbursements and any fines and penalties imposed for the violation of Legal Requirements relating to the environment or human health, are expressly within the scope of the indemnity set forth above. (c) Grantee’s use of the Property shall be at its sole risk and expense. Grantee accepts all risk relating to its occupancy and use of the Easement Area. PG&E shall not be liable to Grantee for, and Grantee hereby waives and releases PG&E and the other Indemnitees from, any and all liability, whether in contract, tort or on any other basis, for any injury, damage, or loss resulting from or attributable to any occurrence on or about the Easement Area, the condition of Easement Area, or the use or occupancy of the Easement Area. (d) Grantee shall, to the maximum extent permitted by law, indemnify, protect, defend and hold Indemnitees harmless against claims, losses, costs (including, but not limited to, attorneys’ fees and costs), liabilities and damages resulting from the failure of Grantee, or any of its contractors or subcontractors, to comply with the insurance requirements set forth in Exhibit C, attached hereto and made a part hereof. If Grantee fails to so indemnify, protect, defend or hold harmless any Indemnitee, then at PG&E’s option, this Agreement shall terminate, and the estate and interest herein granted to Grantee shall revert to and revest in PG&E, if such failure continues for five (5) days following the giving of written notice of termination to Grantee, unless within such time such failure is cured to the reasonable satisfaction of PG&E. (e) The provisions of this Section 5 shall survive the termination of this Agreement.

5. Additional Facilities. Grantee shall not install any additional facilities or improvements in, on, under or over the Easement Area without the prior written consent of PG&E, which consent may be granted or withheld in PG&E’s sole and absolute discretion, and the prior consent, to the extent required by applicable law or regulation, of the CPUC. Grantee shall submit plans for installation of any proposed additional facilities within the Easement Area to PG&E for its written approval at the address specified in Section 13.

02898.228.0007.f Page 8

6. [Term] Abandonment, Termination. In the event Grantee abandons the facilities installed hereunder, this Agreement shall terminate, and all of the easements and other rights of Grantee hereunder shall revert to PG&E. The non-use of such facilities for a continuous period of two (2) years, unless such nonuse is due to factors outside Grantee’s reasonable control, in which case such period is extended to four (4) years, shall be conclusive evidence of such abandonment.

Upon any termination of this Agreement, Grantee shall remove, at no cost to PG&E, such of Grantee’s facilities and equipment installed pursuant to this Agreement as PG&E may specify.

Upon any termination of this Agreement, Grantee shall execute, acknowledge and deliver to PG&E a quitclaim deed or such other documents or instruments, in a form reasonably acceptable to PG&E, as may be reasonably necessary to eliminate this Agreement as an encumbrance on the title to the Easement Area or any larger parcel of property containing the Easement Area.

7. Reserved Rights. Subject to the provisions of Section 10 below, PG&E reserves the right to use the Easement Area for any and all purposes which will not unreasonably interfere with Grantee’s facilities. Without limiting the generality of the foregoing:
(a) PG&E reserves the right to make use of the Easement Area for such purposes as it may deem necessary or appropriate if, and whenever, in the interest of its service to its patrons or consumers or the public, it shall appear necessary or desirable to do so. (b) Grantee acknowledges that PG&E may have previously granted, and may in the future grant, certain rights in and across the Easement Area to others, and the use of the word “grant” in this Agreement shall not be construed as a warranty or covenant by PG&E that there are no such other rights.
(c) Grantee shall not make use of the Easement Area in any way which will endanger human health or the environment, create a nuisance or otherwise be incompatible with the use of the Easement Area, the Property, or PG&E’s adjacent property, by PG&E or others entitled to use such property.
(d) This grant is made subject to all applicable provisions of General Order No. 95 (Overhead Electric), General Order 112 (Gas) and General Order No. 128 (Underground Electric) of the CPUC, in like manner as though said provisions were set forth herein.

8. Governmental Approvals. This Agreement shall not become effective, notwithstanding that it may have been executed and delivered by the parties, and Grantee shall not commence construction or other activities hereunder, unless and until PG&E notifies Grantee in writing of receipt of final, unconditional, and unappealable approval by the CPUC and that the terms and conditions of such CPUC approval are satisfactory to PG&E in its sole and absolute discretion. Grantee further acknowledges and agrees that PG&E makes no representation or warranty regarding the prospects for CPUC approval, and Grantee hereby waives all Claims against PG&E which may arise out of the need for such CPUC approval or the failure of the CPUC to grant such approval. This Agreement is made subject to all the provisions of such approval, as more particularly set forth in CPUC ( ☐ Disposition Letter ☐ Advice Letter ☐ Decision __ ____), in like manner as though said provisions were set forth in full herein.

02898.228.0007.f Page 9

9. Relocation. Subject to the provisions of this Section 10, the rights granted to Grantee herein shall forever be subordinate to PG&E’s right to replace, reconstruct, relocate, operate and maintain PG&E’s existing and/or future facilities. If PG&E’s use of its reserved rights described above necessitates the relocation of any of Grantee’s facilities, Grantee shall relocate such facilities to an alternate location, within the easement or adjacent PG&E owned property, mutually agreed upon between PG&E and Grantee, provided Grantee is given at least twenty (720) days prior written notice of such required relocation. The cost of Relocation of Grantee’s facilities shall be 50% at Grantee's expense and 50% PG&E's expense. Any such relocation of Grantee’s facilities shall be coordinated and scheduled between PG&E and Grantee so as to minimize, to the extent practicable, any interference with Grantee’s use and operation of its facilities resulting from such relocation

10. Compliance; Insurance. PG&E shall have a right to access and inspect the Easement Area at any time to confirm Grantee’s compliance with Legal Requirements and the provisions of this Agreement. Prior to the Effective Date of this Agreement, Grantee shall procure, and thereafter Grantee shall carry and maintain in effect at all times during the term of the Agreement, with respect to the Easement Area and the use, occupancy and activities of Grantee, its employees and agents on or about the Easement Area, the insurance specified in Exhibit C, attached hereto and made a part hereof by this reference, provided that PG&E reserves the right to review and modify from time to time the coverages and limits of coverage required hereunder, as well as the deductibles and/or self-insurance retentions in effect from time to time (but PG&E agrees that it will not increase required coverage limits more often than once in any five-year period). Prior to Grantee’s entry on the Property, and thereafter thirty (30) days prior to the expiration date of any policy, Grantee shall provide PG&E with evidence of the insurance coverage, or continuing coverage, as required by this Agreement. All insurance required under this Agreement shall be effected under valid, enforceable policies issued by insurers of recognized responsibility, as reasonably determined by PG&E, and shall be written on forms and with insurance carriers acceptable to PG&E. Grantee is also responsible for causing its agents, contractors and subcontractors to comply with the insurance requirements of this Agreement at all relevant times (provided, however, that Grantee, in the exercise of its reasonable judgment, may permit contractors and subcontractors to maintain coverages and limits lower than those required of Grantee, provided the coverages and limits required by Grantee are commercially reasonable in light of applicable circumstances). Any policy of liability insurance required to be maintained hereunder by Grantee may be maintained under a so-called “blanket policy” insuring other locations and/or other persons, so long as PG&E is specifically named as an additional insured under such policy and the coverages and amounts of insurance required to be provided hereunder are not thereby impaired or diminished. In addition, liability insurance coverages may be provided under single policies for the full limits, or by a combination of underlying policies with the balance provided by excess or umbrella liability insurance policies.

11. Mechanics’ Liens. Grantee shall keep the Property free and clear of all mechanics’, material suppliers’ or similar liens, or claims thereof, arising or alleged to arise in connection with any work performed, labor or materials supplied or delivered, or similar activities performed by Grantee or at its request or for its benefit. If any mechanics’ liens are placed on the Property in connection with the activities or facilities set forth in this Agreement, Grantee shall promptly cause such liens to be released and removed from title, either by payment or by recording a lien release bond in the manner specified in California Civil Code Section 8424 or any successor statute.

02898.228.0007.f Page 10

12. Notice. Any notices hereunder shall be in writing and shall be personally delivered, or sent by first class mail, certified or registered, postage prepaid, or by national overnight courier, with charges prepaid for next business day delivery, addressed to the addressee party at the address or addresses listed below, or to such other address or addresses as such party may from time to time designate in writing. Notices shall be deemed received upon actual receipt or refusal of the notice by the party being sent the notice. Any communication hereunder shall be in writing and can be personally delivered as described above or by email transmission.

If to PG&E by standard U.S. mail or by registered or certified mail or personal delivery or overnight courier, return receipt requested:

Pacific Gas and Electric Company
Land Management
300 Lakeside Drive, Suite 210
Oakland, CA 94612
Attn: Land Rights Library
With a copy to:

Pacific Gas and Electric Company
Law Department
P.O. Box 1018
Oakland, CA 94612-9991
Attn: Managing Counsel, Law Regulatory
Pacific Gas and Electric Company
Land Management
300 Lakeside Dr
Oakland, CA 94612
Attn: Land Agent
If to Grantee:

David Gittleson, P.E.

Associate Engineer
City of Morgan Hill
Engineering & Utilities
17575 Peak Avenue, Morgan Hill, CA 95037
P: 408.310.4642
[email protected]

13. Governing Law. This Agreement shall in all respects be interpreted, enforced, and governed by and under the laws of the State of California.

14. Entire Agreement. This Agreement supersedes all previous oral and written agreements between and representations by or on behalf of the parties and constitutes the entire agreement of the parties with respect to the subject matter hereof. This Agreement may not be amended except by a written agreement executed by both parties.

02898.228.0007.f Page 11

15. Binding Effect. This Agreement and the covenants and agreements contained herein shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, successors and assigns (subject to the provisions of Section 18). No assignment or delegation by Grantee, whether by operation of law or otherwise, shall relieve Grantee of any of its duties, obligations or liabilities hereunder, in whole or in part. The covenants of PG&E hereunder shall run with the land.

16. Assignment. Grantee shall not assign, convey, encumber (other than as may be specifically permitted by the terms of this Agreement), or otherwise transfer the easements and other rights herein conveyed, or any portion thereof or interest herein, without the prior written consent of PG&E. Such consent may be given or withheld by PG&E for any reason or for no reason, provided, however, that notwithstanding the foregoing, PG&E agrees that its consent will not be unreasonably withheld, delayed or conditioned in the case of: (a) a proposed transfer or dedication to a governmental agency, or (b) a proposed transfer to an Affiliate (as hereinafter defined) of Grantee [add the following optional clause (c) only if this easement is being granted to service a power plant or peaker plant for which the term “Plant” is being defined in Section 2] [, or (c) a proposed transfer to a public or private utility to which Grantee also transfers its interest in the Plant]. For purposes of the foregoing, an Affiliate of Grantee means an entity that controls, is controlled by, or is under common control with Grantee; the term “control” means the possession, directly or indirectly, of the power, whether or not exercised, to direct or cause the direction of the management or policies of an entity, whether through the ownership of voting securities, by contract or otherwise; and the term “controlled” and “common control” have correlative meanings. Grantee acknowledges and agrees that in any instance where PG&E is required not to unreasonably withhold its consent, it shall be reasonable for PG&E to withhold its consent if any regulatory agency having or asserting jurisdiction over PG&E or the Easement Area, or having or claiming a right to review and/or approve the proposed transfer, fails to grant approval thereof (or imposes conditions on such approval which are not acceptable to PG&E, in its reasonable discretion). Grantee further acknowledges and agrees that in any instance where PG&E is required not to unreasonably delay giving or withholding its consent, it shall be reasonable for PG&E to make application for approval to any regulatory agency having or asserting jurisdiction, and to defer the giving or withholding of consent, without liability hereunder for delay, during the pendency and for a reasonable time following the conclusion of any such regulatory proceedings.

17. Attorneys’ Fees. Should either party bring an action against the other party, by reason of or alleging the failure of the other party with respect to any or all of its obligations hereunder, whether for declaratory or other relief, then the party which prevails in such action shall be entitled to its reasonable attorneys’ fees (of both in-house and outside counsel) and expenses related to such action, in addition to all other recovery or relief. A party shall be deemed to have prevailed in any such action (without limiting the generality of the foregoing) if such action is dismissed upon the payment by the other party of the sums allegedly due or the performance of obligations allegedly not complied with, or if such party obtains substantially the relief sought by it in the action, irrespective of whether such action is prosecuted to judgment. Attorneys’ fees shall include, without limitation, fees incurred in discovery, contempt proceedings and bankruptcy litigation, and in any appellate proceeding. The non-prevailing party shall also pay the attorney’s fees and costs incurred by the prevailing party in any post-judgment proceedings to collect and enforce the judgment. The covenant in the preceding sentence is separate and several and shall

02898.228.0007.f Page 12
survive the merger of this provision into any judgment on this Agreement. For purposes hereof, the reasonable fees of PG&E’s in-house attorneys who perform services in connection with any such action shall be recoverable, and shall be based on the fees regularly charged by private attorneys with the equivalent number of years of experience in the relevant subject matter area of the law, in law firms in the City of San Francisco with approximately the same number of attorneys as are employed by PG&E’s Law Department.

18. No Waiver. No waiver with respect to any provision of this Agreement shall be effective unless in writing and signed by the party against whom it is asserted. No waiver of any provision of this Agreement by a party shall be construed as a waiver of any subsequent breach or failure of the same term or condition, or as a waiver of any other provision of this Agreement.

19. No Offsets. Grantee acknowledges that PG&E is executing this Agreement in its capacity as the owner of the Easement Area, and not in its capacity as a public utility company or provider of electricity and natural gas. Notwithstanding anything to the contrary contained herein, no act or omission of Pacific Gas and Electric Company or its employees, agents or contractors as a provider of electricity and natural gas shall abrogate, diminish, or otherwise affect the respective rights, obligations and liabilities of PG&E and Grantee under this Agreement. Further, Grantee covenants not to raise as a defense to its obligations under this Agreement, or assert as a counterclaim or cross-claim in any litigation or arbitration between PG&E and Grantee relating to this Agreement, any claim, loss, damage, cause of action, liability, cost or expense (including, but not limited to, attorneys’ fees) arising from or in connection with Pacific Gas and Electric Company’s provision of (or failure to provide) electricity and natural gas.

20. No Dedication. Nothing contained in this Agreement shall be deemed to be a gift or dedication of land or rights to the general public. The right of the public or any person, including Grantee, to make any use whatsoever of the Easement Area(s) or any portion thereof, other than as expressly permitted herein or as expressly allowed by a recorded map, agreement, deed or dedication, is by permission and is subject to the control of PG&E in its sole discretion.

21. No Third Party Beneficiary. This Agreement is solely for the benefit of the parties hereto and their respective successors and permitted assigns, and, except as expressly provided herein, does not confer any rights or remedies on any other person or entity.

22. Captions. The captions in this Agreement are for reference only and shall in no way define or interpret any provision hereof.

23. Time. Except as otherwise expressly provided herein, the parties agree that as to any obligation or action to be performed hereunder, time is of the essence.

24. Severability. If any provision of this Agreement shall be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each provision of this Agreement shall be valid and enforced to the full extent permitted by law, provided the material provisions of this Agreement can be determined and effectuated.

25. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument. Each Party may rely upon executed copies of this Agreement transmitted

02898.228.0007.f Page 13
in a portable document format (“pdf”) version by email and such copies shall be deemed to be the same force and effect as the original.

26. Other Documents. Each party agrees to sign any additional documents or permit applications which may be reasonably required to effectuate the purpose of this Agreement.

Provided, however, that PG&E will not be required to take any action or execute any document that would result in any cost, expense or liability to PG&E.

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

PACIFIC GAS AND ELECTRIC COMPANY,
a California corporation
By:

Name: ______________________________
Its: ______________________________
Date: ______________________________
City of Morgan Hill, a Municipal Corporation
of the State of California
By:

Name: Christina J. Turner
Its: City Manager
Date: ______________________________
Exhibits A, B and C attached

02898.228.0007.f Exhibit C, Page 1

EXHIBIT C

INSURANCE REQUIREMENTS
Grantee shall procure, carry and maintain in effect throughout the term of this Agreement the following insurance coverage. Grantee is also responsible for its contractors and subcontractors maintaining sufficient limits of the appropriate insurance coverages.

A. Workers’ Compensation and Employers’ Liability

1. Workers’ Compensation insurance indicating compliance with any and all applicable labor codes, acts, laws or statutes, state or federal.

2. Employer’s Liability insurance shall not be less than $1,000,000 for injury or death, each accident.

B. Commercial General Liability

1. Coverage shall be at least as broad as the Insurance Services Office (ISO) Commercial General Liability insurance “occurrence” form with no additional coverage alterations.

2. The limits shall not be less than $2,000,0001 per occurrence [and $3,000,000 aggregate] for bodily injury, property damage and products and completed operations. Defense costs are to be provided outside the policy limits.

3. Coverage shall include: a) an “Additional Insured” endorsement (ISO Additional Insured form CG 2010 11/85 or equivalent coverage) adding as additional insureds PG&E, its affiliates, subsidiaries, and parent company, and PG&E’s directors, officers, agents and employees with respect to liability arising out of work performed by or for Grantee. If the policy includes “blanket endorsement by contract,” the following language added to the certificate of insurance will satisfy PG&E’s requirement: “by blanket endorsement, PG&E, its affiliates, subsidiaries, and parent company, and PG&E’s directors, officers, agents and employees with respect to liability arising out of the work performed by or for the Grantee are included as additional insured”; and b) an endorsement or policy provision specifying that the Grantee’s insurance is primary and that any insurance or selfinsurance maintained by PG&E shall be excess and non-contributing.

C. Additional Insurance Provisions

1. Upon the Effective Date of the Easement Agreement Grantee shall furnish PG&E with two (2) sets of certificates of insurance including required endorsements. 1 See table B for required insurance coverages; note that some of the coverages listed may not be required in particular instances.

02898.228.0007.f Exhibit C, Page 2

2. Documentation shall state that coverage shall not be canceled except after thirty (30) days prior written notice has been given to PG&E.

3. The documents must be signed by a person authorized by that insurer to bind coverage on its behalf and submitted to:

Pacific Gas and Electric Company
300 Lakeside Dr
Oakland, CA 94612
Attn: Land Agent

4. Upon request, Grantee shall furnish PG&E evidence of insurance for its agents or contractors.

5. PG&E may inspect the original policies or require complete certified copies at any time.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING A PURCHASE
AGREEMENT FOR A SEWER EASEMENT (APN 841-10-
027 & 039) FROM THE PACIFIC GAS AND ELECTRIC

COMPANY, FOR THE SEWER RELIEF TRUNK LINE

PROJECT
WHEREAS, the Sewer Relief Trunk Line Project is included in the Fiscal Years 2022-23 Capital Improvement Program under CIP#308A08 with funding budgeted for purchasing right of way and design professional services. The subject property from the Pacific Gas and Electric Company (PG&E), is required in order to construct the project, and therefore in the public’s interest to acquire a portion of the real property for the public Project (Sewer Relief Trunk Line Project); and WHEREAS, on August 15, 2022, the City of Morgan Hill made a voluntary offer to purchase a sewer easement (9,476 square feet) from PG&E, as Trustee, for the appraised value of $23,000 from a state certified MAI appraiser; and
NOW, THEREFORE, City Council of the City of Morgan Hill, based upon the foregoing and all documents, statements and facts known to City Council, does hereby resolve:

SECTION 1. Approval of Easement Purchase Agreement. City Council approves the Easement Purchase Agreement to acquire a sewer easement (9,476 SF) for a total amount of $23,000 from PG&E, see Attachment 1. The Settlement amount of $23,000 plus the escrow, closing costs ($2,000 est.) are hereby approved.

SECTION 2. Authority to City Manager. City Council authorizes the City Manager to execute the Agreement and all documents necessary to consummate the transactions contemplated therein, including without limitation, accepting the Grant Deed. City Council further authorizes the City Manager to make minor modifications to the foregoing described documents which may be necessary to consummate the transactions.

SECTION 3. CEQA.

Not a Project
The sewer easement acquisition is not considered a project, as defined in Section 15378 of the State CEQA Guidelines. However, the Sewer Relief Trunk Line project itself is a project. David J.

Powers prepared an Initial Study and the City Council approved and certified a mitigated negative declaration at the December 15, 2021 City Council meeting.

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 23th day of October 2024 by the following vote:

City of Morgan Hill
Resolution No. 24-021

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

CERTIFICATION
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 24-xxx, adopted by the City Council at the meeting held on October 23, 2024.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

HARDING AVE SANTA TERESA BLVD

HIGHLAND AVE MONTEREY HWY
HWY 101

MURRAY AVE

LEAVESLEY RD

CHESTNUT ST

CAMINO ARROYO
DAY RD

LAS ANIMAS AVE

MASTEN AVE
7TH ST

COHANSEY AVE RENZ LN
MILLER SLOUGH TRUNK SEWER SOUTH OF HIGHLAND PROJECT AREA FIGURE 1 CITY OF MORGAN HILL

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, September 4, 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 Library, Culture, and Arts Commission interviews and conducting a closed session.

SPECIAL MEETING
5:00 p.m. Library, Culture, and Arts Commission interviews and Closed Session

September 4, 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, Yvonne Martinez Beltran, Mark Turner, Marilyn Librers
ABSENT None
Council Member Librers arrived at 5:06 p.m.

DECLARATION OF POSTING AGENDA
City Clerk Michelle Bigelow declared the posting of the agenda.

COMMISSION INTERVIEWS

1. INTERVIEW CANDIDATES TO FILL ONE (1) SEAT ON THE LIBRARY,

CULTURE, AND ARTS COMMISSION (LCAC)
Recommendation:

1. Mayor shares the characteristics/traits that a successful applicant would possess;

2. Conduct Interviews;

3. Council Members identify the top applicant(s) and provide recommendations to the Mayor; and

4. Discuss and/or appoint an applicant.

Mayor Turner shared the desired qualities of commissioners and the interview process.

The Council interviewed Mark Fiorenza, Kendra O'Donoghue, and Nadia Suleman.

CLOSED SESSION
City Attorney Larkin announced the closed session item.

CONFERENCE WITH LABOR NEGOTIATORS
Authority: Pursuant Government Code Section 54957.6
City Negotiators: Christina Turner, City Manager; Donald Larkin, City Attorney; Michael

September 4, 2024
3 Horta, Human Resources Director; Dat Nguyen, Finance Director Employee Organization: Morgan Hill Police Officers Association; AFSCME Local 101 Morgan Hill; Community Service Officers Association; Employees Covered under Management Resolution #23-051

OPPORTUNITY FOR PUBLIC COMMENT
Public comment opened at 5:43 p.m. There being no requests to speak, public comment closed.

ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 5:43 p.m.

REGULAR MEETING
Mayor Turner called the City Council meeting to order at 6:00 p.m.

City Clerk Bigelow announced that the Council appointed Mark Fiorenza to the Library, Culture, and Arts Commission.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Proclaiming the month of September as National Preparedness Month Proclaiming the month of September as Childhood Cancer Awareness Month Proclaiming September 17-23 as Constitution Week

CITY COUNCIL REPORTS
Mayor Pro Tem Librers shared that she was asked to join a round table group with Silicon Valley at Home. The event was very eye-opening and informative. In August, she spent five days in Washington, DC, attending a class on advanced leadership for elected officials. The class will continue online for the next six weeks.

September 4, 2024
4 CITY MANAGER'S REPORT
City Manager Turner shared that the City is very excited to announce the grand opening and ribbon cutting ceremony for our 4 new outdoor pickleball courts this Saturday, September 7th, at 10:00 a.m. at the Community Park. Also taking place on September 7th, the Leadership Morgan Hill Class of 2024 is holding a ribbon cutting of their class project, a new community picnic area at the Community and Cultural Center.

Enjoy live music and light refreshments and celebrate on Saturday, September 7th, at 11:00 a.m. She spoke about the transportation community survey. This is an online survey for the community to provide input and share their priorities on transportation in our community. This survey is available in English and Spanish through September 22, 2024. The City is nearing completion of its first comprehensive Transportation Master Plan. The Plan will set priorities for the City’s transportation efforts and provide a foundation for an update to the City’s General Plan Transportation Element. For more information, visit our Transportation Master Plan webpage or email [email protected]. She also shared that on Wednesday, September 18th at 5:00 p.m. we will have our Mid-Year Goal Check-in Workshop. Due to the Rosh Hashanah holiday and the CalCities conference, the next City Council meeting will be October 23rd.

CITY ATTORNEY'S REPORT
City Attorney Larkin announced that there was no reportable action from the closed session earlier in the meeting.

OTHER REPORTS
Council Member Martinez Beltran spoke about attending the Overdose Awareness event last Saturday and the profound impact the event had on the community. She also attended the opening of Voices Academy.

PUBLIC COMMENT
Public comment opened at 6:12 p.m.

Eli Robles was called to speak.

There being no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Council Member Borgioli

September 4, 2024
5 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 consent calendar items 2, 3, and 5 through 7.

RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Borgioli
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None

2. ADOPT RESOLUTION ACCEPTING THE SANTA CLARA COUNTY

MULTIJURISDICTIONAL LOCAL HAZARD MITIGATION PLAN UPDATE

INCLUDING THE CITY OF MORGAN HILL'S ANNEX
Recommendation:

Adopt resolution accepting the Santa Clara County Multijurisdictional Local Hazard Mitigation Plan Update including the City of Morgan Hill’s Annex.

3. AMEND CONFLICT OF INTEREST CODE REPORTING CATEGORIES Recommendation:

Adopt resolution amending the list of positions subject to the City’s Conflict of Interest Code.

5. APPROVE COST SHARE AGREEMENT WITH THE CITY OF GILROY FOR

JOINT WASTEWATER TRUNK LINE REPAIRS

September 4, 2024
6 Recommendation:

Authorize the City Manager to execute and administer a cost sharing agreement with the City of Gilroy for the design and repairs to the jointly owned wastewater trunk line for $1,814,455.

6. APPROVE THE AUGUST 28, 2024 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

7. APPROVE CONSULTANT AGREEMENT WITH SCHAAF & WHEELER
CONSULTING CIVIL ENGINEERS IN THE AMOUNT OF $74,472 FOR

BUTTERFIELD BASIN FEASIBILITY STUDY
Recommendation:

Authorize the City Manager to execute and administer a consultant agreement in the amount of $74,472 with Schaaf & Wheeler Consulting Civil Engineers for feasibility design work at the Butterfield Basin.

ITEM PULLED FOR DISCUSSION

4. APPROVE CONSULTANT AGREEMENT WITH JAYSON ARCHITECTURE IN THE AMOUNT OF $375,000 FOR DESIGN OF VILLA MIRA MONTE PHASE 1

IMPROVEMENTS
Recommendation:

Authorize the City Manager to execute a consultant agreement for design services totaling $375,000 for the Phase 1 Villa Mira Monte Improvements.

Public Services Director Chris Ghione provided a report.

Public comment opened at 6:31 p.m. There being no requests to speak, public comment closed.

MOTION:

Continue this item until an updated MOU is executed.

RESULT: Failed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Spring
AYES: Council Member Spring, Council Member Martinez Beltran NAYS: Council Member Borgioli, Mayor Turner, Mayor Pro Tem Librers ABSTAIN: None
ABSENT: None

September 4, 2024
7 MOTION:

Approving the recommended actions.

RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Mayor Pro Tem Librers
AYES: Council Member Borgioli, Mayor Turner, Mayor Pro Tem Librers NAYS: Council Member Spring, Council Member Martinez Beltran ABSTAIN: None
ABSENT: None

PUBLIC HEARINGS

8. ADOPT RESOLUTION TO ESTABLISH NEW AND UPDATED FEES FOR

PLANNING, BUILDING, AND LAND DEVELOPMENT ENGINEERING
Recommendation:

1. Open/Close Public Hearing; and

2. Adopt resolution to establish new and updated Planning, Building, and Land Development Engineering fees as proposed.

Assistant City Manager Edith Ramirez introduced the item and the Development Services Team presenting the report and presentation: Development Services Director Jennifer Carman, Building Official Eric Blomquist, Planning Consultant Andrew Crabtree, and Public Services Director Chris Ghione.

The Council moved to item 9 to allow time to address technical difficulties with Zoom on item 8.

MOTION:

Continuing item to October 23, 2024 and to not start this item before 6:00 p.m.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Council Member Martinez Beltran
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None

September 4, 2024
8 ABSENT: None

9. ADOPT RESOLUTION TO ESTABLISH NEW CARRY CONCEALED WEAPON (CCW) LICENSE RENEWAL FEE, FINGERPRINT ROLL AND LIVE SCAN

FEE, AND UPDATE LIVE ENTERTAINMENT ANNUAL PERMIT FEE
Recommendation:

Adopt resolution to establish new CCW license renewal fee, Fingerprint Roll and Live Scan fee, and update Live Entertainment Annual Permit fee.

Police Captain Mario Ramirez provided the report.

The public hearing opened at 6:53 p.m.

Kyle Merritt was called to speak.

There being no further requests to speak, the public hearing closed.

MOTION:

Approving the recommended actions
RESULT: Passed
MOVER: Council Member Martinez Beltran
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

OTHER BUSINESS

10. INTRODUCE ORDINANCE PROHIBITING SMOKING IN MULTIUNIT

RESIDENTIAL BUILDINGS
Recommendation:

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

2. Introduce new Ordinance prohibiting smoking in multiunit residential buildings.

City Attorney Donald Larkin, Deputy City Attorney Dorothy Ma, and Leslie Zellers from the County of Santa Clara provided the presentation and report.

September 4, 2024
9 Public comment opened at 7:58 p.m. The following people were called to speak:

Bryan Lark
Judy Scovel
Doug Muirhead
Jen Grans-Lejano (Zoom) - City Attorney Larkin read Jen's comments into the record.

Kate Rodman (Zoom) - City Attorney Larkin read Jen's comments into the record.

There being no further requests to speak, public comment closed.

MOTION:

Waiving the first and second reading of the ordinance.

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
MOTION:

Introducing the ordinance.

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

11. APPROVE SUPPORT OF THE CAL CITIES RESOLUTION TO BE
CONSIDERED AT THE 2024 ANNUAL CONFERENCE
Recommendation:

1. Confirm "support" for the resolution to be considered on "Fair and Equal

September 4, 2024
10 Treatment of All Government Officials at All Levels of Government"; and

2. Authorize the City's voting delegate(s) to vote on the resolution to be considered at the Cal Cities annual conference.

City Attorney Larkin provided the report.

Public comment opened at 8:25 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended actions.

RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Council Member Martinez Beltran
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None
The meeting recessed at 8:27 p.m. and reconvened at 8:38 p.m.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Spring requested an ordinance banning smoking in all residential properties.

Council Member Martinez Beltran requested a conversation about trash cans throughout the city.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:48 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

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, September 18, 2024 5:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

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, Yvonne Martinez Beltran, Mark Turner, Marilyn Librers
ABSENT None
Council Member Spring left at 8:01 p.m.

DECLARATION OF POSTING AGENDA
City Clerk Michelle Bigelow declared the posting of the agenda.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

September 18, 2024
2 PROCLAMATIONS
Proclaiming September 19, 2024 as Rich Firato Day

PRESENTATIONS

PG&E UPDATE

PUBLIC COMMENT
Public comment opened at 5:08 p.m.

Carlos Duran was called to speak.

There being no further requests to speak, public comment closed.

ADOPTION OF AGENDA

WORKSHOP

1. CITY COUNCIL MID-YEAR GOAL CHECK-IN WORKSHOP
Recommendation:

Review and discuss:

1. Team Morgan Hill Department Updates

2. 2024-2025 Sustainable Morgan Hill, including Vision, Ongoing Priorities, and Strategic Priorities

3. 2024-2025 Strategic Priorities Workplan

4. Future Council Initiated Agenda Items

5. Update on Encampments

6. City Council Disturbance Policy

7. City Council Conference, Travel, and Meeting Spending Policy City Manager Turner provided an overview of the evening's agenda. The Department Directors then provided departmental updates.

Christina Ramos of PG&E provided a presentation and answered questions on the status of PG&E in Morgan Hill.

The meeting recessed at 7:01 p.m. and reconvened at 7:15 p.m.

The Council moved to item 2. The Council then went back to the Goal Check-In Workshop items.

September 18, 2024
3 City Manager Turner reviewed the Sustainable Morgan Hill vision, priorities, and work plan items. The discussion then moved to the Future Council Initiated Agenda Items. City Attorney Larkin provided an update on encampments. The Council discussion then progressed to the City Council Disturbance Policy and City Council Conference, Travel, and Meeting Spending Policy.

Public comment opened at 8:26 p.m.

Doug Muirhead was called to speak.

There being no further requests to speak, public comment closed.

CONSENT CALENDAR (To be heard at 6:00 p.m. or later)
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.

2. ADOPT ORDINANCE NO. 2356, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL ADDING CHAPTER 8.42 (“SMOKING IN MULTIUNIT BUILDINGS”) OF TITLE 8 (“HEALTH AND SAFETY”) TO THE MORGAN HILL

MUNICIPAL CODE TO PROHIBIT SMOKING IN AND AROUND MULTIUNIT

RESIDENCES
Recommendation:

Waive the reading, adopt Ordinance No. 2356, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

Public comment opened at 7:16 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Borgioli
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:29 p.m.

September 18, 2024
4 Minutes Prepared by:

Michelle Bigelow, City Clerk

6 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager
AWARD BUTTERFIELD PARK – PHASE 1 PROJECT TO S&H
CONSTRUCTION, INC. IN THE AMOUNT OF $3,268,600

RECOMMENDATION(S)

1. Approve the Butterfield Park - Phase 1 Project Plans and Specifications;

2. Award contract to S&H Construction, Inc. for the Butterfield Park - Phase 1 Project in the amount of $3,268,600;

3. Authorize the expenditure of construction contingency funds not to exceed $326,860; and

4. Authorize the City Manager to execute and administer the construction contract with S&H Construction, Inc.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
2024-2025 Strategic Priorities
Economic Development and Tourism
Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

The initial development process for the Butterfield Park was conducted for an application to the State of California Department of Park and Recreation for its Statewide Parks Program. Unfortunately, due to the competitive nature of the grant program and the City's demographic makeup, the City's grant applications (in 2019 and 2020) for the program were not successful. However, during the grant application process, the City engaged potential partners on maintaining and operating the park. The City continued to see interest from prospective partners in the development of this property for both the benefit of the community and the partner organizations. Based on this interest, in 2022, the City released an "Invitation to Partner" to allow the City to more formally explore potential partners in the development and operation of the park

6 and recreation space. The City moved forward with investigating the site development with two potential partners and a design consultant to plan for the construction of a park facility with adjacent BMX and Baseball Field partners on the 8 acre site.

The planning work led to an update on the original grant funded design for the concept site plan (Attachment 2), which was reviewed by the Parks and Recreation Commission and the City Council. The concept plan demonstrated that there was adequate space for both partners on the site along with public park facilities. On March 15, 2023 the City Council approved a partnership agreement with the Foundation for a Better Ride/USA BMX to build a BMX track adjacent to the proposed park facility. Additionally, the Council approved an agreement with Verde Design to take the conceptual designs to construction documents for bidding. A partnership agreement was not completed with the baseball group. The final design is relatively the same as the original proposed design, without the baseball field component and with the bathrooms shifted to the west to reduce infrastructure costs.

The plans and specifications were completed in July 2024 and the project was advertised for bidding on July 26, 2024. The bid opening was held on October 2, 2024.

Thirteen (13) bids were received and are listed below:
1 S&H Construction, Inc. $3,268,600
2 Guerra Construction Group $3,597,450
3 Gradetech, Inc. $3,820,000
4 Azul Works Inc. $4,032,800
5 QLM-Inc. $4,063,000
6 Robert A Bothman Inc DBA Robert A Bothman
Construction
$4,375,000
7 Galeb Paving, Inc. $4,538,000
8 Suarez & Munoz Construction, Inc. $4,910,000
9 Schreder & Brandt MFG, Inc. $4,982,600
10 Brannon Corporation $5,171,395
11 Joseph J. Albanese, Inc. $5,238,363
12 KYA Service AKA The KYA Group $5,291,223
13 James Nicholson Enterprise/Dinsmore Landscape
(bid not responsive)
$ 410,198
The lowest responsive bidder, S&H Construction, Inc.'s bid amount of $3,268,600 is approximately 2.14% above the engineer's estimate of $3,200,000. S&H Construction, Inc. has experience working on landscape improvements, playgrounds, and HVAC and electrical work for school districts and a park district in the Bay Area. City staff have received strong positive references for S&H Construction. Staff recommends the award of the contract to S&H Construction, Inc. in the amount of $3,268,600. Staff also requests a ten (10) percent construction contingency for this project ($326,860). This project is scheduled to start in January 2025 and be completed by March 2026.

The plans and specifications are available for review on the City's webpage under the Government tab and Community Projects site:

6 https://www.morganhill.ca.gov/1436/Project-Plans-Specifications-and-Bid-Res.

COMMUNITY ENGAGEMENT:

Involve/Collaborate
Through the prior grant process, significant outreach to the community was performed on the design of the site. The original park design has remained similar to the proposed grant planned park site, but with the funding limitations, the baseball field will not be constructed in this phase and the City will be partnering on the BMX component of the park. The proposed collaboration with the community partners is critical for the financial feasibility of the project and the local BMX community has been involved with the City's partner (Foundation for a Better Ride) in the planning of the BMX component.

ALTERNATIVE ACTIONS:

City Council may elect not to award this construction contract and request the project be re-bid or canceled. Staff does not recommend re-bidding the project as competitive bids were received. Rebidding the project is not likely to result in significant savings, and it will delay the project approximately three to four months.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Developing new park and recreation facilities is a central tenet of the Bikeways, Trails, Parks and Recreation Master Plan that the Council adopted in July 2017. The City Council authorized a grant application for development of this park site in July 2019 and again in October 2020. The City Council received an update on the partnership opportunities on August 3, 2022. The Parks and Recreation Commission reviewed this item and recommended moving forward with partnership agreement negotiation on November 15, 2022. On March 15, 2023 the City Council approved a partnership agreement with the Foundation for a Better Ride/USA BMX to build a BMX track adjacent to the proposed park facility. On March 15, 2023, the Council also approved an agreement with Verde Design to take the conceptual designs to construction documents for bidding.

FISCAL AND RESOURCE IMPACT:

Funds for this project are budgeted within the approved FY24-25 Capital Improvement Budget under the Butterfield Park Project PR1009 from the Park Impact Fund (301) and Quimby Fund (375). Total contract costs of $3,595,460 ($3,268,600 base bid and $326,860 contingency) are within the project budget.

CEQA (California Environmental Quality Act):

Project
An environmental assessment, including an Initial Study and Mitigated Negative Declaration (MND), was prepared for the project by David J. Powers & Associates, Inc. in conformance with CEQA for the initial site plan and uses in 2019. In 2023 an Addendum to the Initial Study and MND was prepared for modifications to the site plan and uses.

7 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

AWARD MAINTENANCE SERVICE AGREEMENT TO PRECISION

EMPRISE, LLC DBA PRECISION CONCRETE CUTTING IN THE
AMOUNT OF $150,000 FOR ON-CALL CONCRETE CUTTING

SIDEWALK REPAIR SERVICES AND SIDEWALK ASSET

MANAGEMENT SURVEYING SERVICES

RECOMMENDATION(S)

1. Award maintenance service agreement to Precision Emprise, LLC dba Precision Concrete Cutting in the not-to-exceed amount of $150,000 for on-call concrete cutting sidewalk repairs and sidewalk asset management surveying services;

2. Determine that said purchase may be made cooperatively, as provided in Section

3.04.180 of the Morgan Hill Municipal Code;

3. Determine that competitive bids upon notice would not likely result in a lower price to the City from a responsible bidder or would cause unnecessary expense or delay under the circumstances as provided in Section 3.04.150 (2) of the Morgan Hill Municipal Code; and

4. Authorize the City Manager to execute and administer that certain construction contract with Precision Emprise, LLC dba Precision Concrete Cutting.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this item is to provide the City Council with an opportunity to consider the award of a maintenance service agreement to Precision Emprise, LLC dba Precision Concrete Cutting ("Precision Concrete Cutting") in the not-to-exceed amount of $150,000 to provide on-call concrete cutting services to remove tripping hazards from City sidewalks and, if needed, sidewalk asset management surveying services throughout Morgan Hill. The proposed agreement would have an initial two-year term

7 with a maximum of three one-year options to extend in amounts not to exceed 105% of the prior year's annual amount, subject to whether the City Council has appropriated sufficient funds.

Precision Concrete Cutting has pioneered and patented a new technique for repair of uneven sidewalks or uplifts that is compliant with the Americans with Disability Act (ADA) requirements. The company uses a saw-cutting method, which horizontally slices the trip hazard away, and matches the sidewalks at the control joint. This method preserves the existing infrastructure, and saves time and money by eliminating the immediate need for removal and replacement of sidewalk panels. Although the City has gone out to bid in the past for removal and replacement of sidewalks in order to repair tripping hazards, staff is recommending concrete cutting as a more time-efficient and cost-efficient approach to repairing tripping hazards.

Per the City of Morgan Hill Municipal Code Section 3.04.180, the purchasing officer has the authority to join with other public jurisdictions in cooperative purchasing plans or programs, including, but not limited to, California Communities Purchasing Program (CCPP), the California Department of General Services (CADGS), the California Multiple Award Schedule (CMAS), the National Association of Counties (NACo), or similar arrangements or plans, as determined by the purchasing officer to be in the City's best interest, and upon determination that competitive bids upon notice would not likely result in a lower price to the City from a responsible bidder or would cause unnecessary expense or delay under the circumstances as provided in Section

3.04.150 (2) of the Morgan Hill Municipal Code.

Precision Concrete Cutting submitted a proposal to the City according to pricing from the Texas Association of School Board, Inc. cooperative contract #657-21 through the BuyBoard National Purchasing Cooperative. The City of Morgan Hill is a member of the BuyBoard National Purchasing Cooperative, and may utilize the contract with the addition of ensuring that California laws and regulations must be followed, including payment of California Department of Industrial Relations (DIR) prevailing wages. The procurement process utilized for the cooperative contract was reviewed and meets the City of Morgan Hill requirements. Other northern California cities such as Monterey and Livermore have also utilized the BuyBoard National Purchasing Cooperative to enter into contract with Precision Concrete Cutting for concrete cutting/sidewalk repair services and sidewalk asset management surveying services.

In November 2023, the City Council awarded a consultant agreement to Infrastructure Management Services ("IMS") to conduct a citywide sidewalk assessment survey. As part of this effort, IMS is surveying sidewalks in the City and identifying sites with displaced sidewalks greater than 1/4 inch. The proposed contract with Precision Concrete Cutting would focus on those sidewalk locations with an elevation difference of 1/4 inch to up to two inches.

Staff recommends approving the on-call maintenance service agreement with Precision Concrete Cutting for $150,000 for its patented concrete cutting sidewalk repair services and sidewalk asset management surveying services based on the City Council's

7 determination that said purchase may be made cooperatively as provided in Section

3.04.180 of the Morgan Hill Municipal Code, and upon determination that competitive bids upon notice would not be likely to result in a lower price to the City from a responsible bidder or would cause unnecessary expense or delay under the circumstances as provided in Section 3.04.150 (2) of the Morgan Hill Municipal Code (Attachment 1).

COMMUNITY ENGAGEMENT:

Inform
As sidewalk maintenance and repair services are a regular and expected City service, no efforts were made to inform the community about this proposed agreement. The actual sidewalk maintenance work resulting from this agreement is shared via City communication tools, including the "The Scoop," weekly maintenance updates on the City of Morgan Hill website, and Nextdoor.

ALTERNATIVE ACTIONS:

The City Council could decide not to approve this agreement, and direct staff to proceed with a request for proposals (RFP) for sidewalk repair services in order to enter into an on-call maintenance services agreement. This is not recommended as the proposed use of the cooperative agreement through BuyBoard National Purchasing Cooperative allows for a more time-efficient and cost-efficient completion of uneven sidewalk repairs.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

While the City Council has not previously taken action on this particular item, conducting sidewalk repairs is an ongoing public safety activity, and the Council has approved numerous contracts for sidewalk repairs in the past.

FISCAL AND RESOURCE IMPACT:

If approved, the total funding authorization for the new contract with Precision Concrete Cutting will be a not-to-exceed amount of $150,000. The costs will be paid by the adopted Capital Improvement Program (CIP) project # SR5008, Fund 346 Public Facilities.

CEQA (California Environmental Quality Act):

Categorical Exemption
The activities described in this staff report are categorically exempt under CEQA, specifically pursuant to Section 15301 (c) of the CEQA guidelines (Existing Facilities), as the subject work involves the repair, maintenance or minor alteration of existing City facilities involving negligible or no expansion of use of those facilities.

1 Updated: August 2024

MAINTENANCE SERVICE AGREEMENT
Precision Emprise, LLC dba Precision Concrete Cutting
THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Precision Emprise, LLC dba Precision Concrete Cutting, a California limited liability company ("SERVICE PROVIDER") hereinafter referred to collectively as “Parties.” In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:

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

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

3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be on-call ADA compliant uneven sidewalk repair and sidewalk asset management surveying services as further described in Exhibit A.

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

4.1. Amount. $150,000.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed One Hundred Fifty Thousand dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for each subsequent extended one-year term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the immediately preceding prior year of service.

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

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

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

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

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

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

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

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

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

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

8.1. Insurance Types and Amounts.

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

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

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

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

8.1.5. Professional Liability.

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

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

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

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

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

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

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

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

01. 8.2.2. Workers Compensation.

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

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

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

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

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Certificate Holder address:

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

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

10. Compliance with Law.

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

10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite.

10.2.1. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.2.2. SERVICE PROVIDER must comply with the provisions of Labor Code Sections 1776 and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.

10.2.3. As applicable, if the Agreement Amount exceeds Thirty Thousand Dollars ($30,000.00), SERVICE PROVIDER 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.

10.2.4. SERVICE PROVIDER must comply with the provisions of Labor Code Section 1815 with respect to payment of overtime.

10.2.5. Under Labor Code Section 1813, SERVICE PROVIDER will forfeit to CITY as a penalty, the sum of Twenty-Five Dollars ($25.00) for each day during which a worker employed by SERVICE PROVIDER or any subcontractor is required or permitted to work more than eight (8) hours in any one (1) calendar day or more

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than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815.

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

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

Final Judgments, Decisions, and Orders: For purposes of this Section, a “final judgment, decision, or order” refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.

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

THIS AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY

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

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

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

City’s Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or

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government agency, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.

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

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

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

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

13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement including, without limitation, complying with California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.). SERVICE PROVIDER will further comply, and will ensure that its agents and its subcontractors comply, with California Government Code section 84308 (“Levine Act”) and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 – 18438.8).

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

Address of SERVICE PROVIDER is as follows:

Precision Emprise, LLC dba Precision Concrete Cutting
417 Harrison Street
Oakland, CA 94607
Address of CITY is as follows:

Public Services Dept. Director
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

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

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

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

17. Maintenance of Records.

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

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

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

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

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

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

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

22. Defense and Indemnification.

22.1. Defense and Indemnification. SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily

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injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

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

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

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

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

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

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

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

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

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

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

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

30. Counterpart Signatures. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement.

Signatures on the following page.

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

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

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

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

APPROVED AS TO FORM: PRECISION EMPRISE LLC dba PRECISION

CONCRETE CUTTING
City Attorney By:

Donald A. Larkin
Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
1032474 821353472
Contractor’s License Number(s) (if applicable) Contractor’s DIR Registration Number(s) (if applicable) Expiration Date(s) 11/30/2025 Expiration Date(s) 06/30/2026 U:\Legal Forms\Consultant Agreements\City Maintenance Service Agreement.Docx Marc Cussenot, CEO
9/13/2024

EXHIBIT A

SCOPE OF SERVICES
On-Call ADA Compliant Uneven Sidewalk Repair Services
& Sidewalk Asset Management Surveying Services
Service Provider shall provide full-service, on-call ADA compliant uneven sidewalk repair and sidewalk asset management surveying services throughout the city of Morgan Hill in compliance with all applicable laws, regulations, policies and procedures. The scope of services are described in the Buy Board National Purchasing Cooperative Contract #657-21 between the Texas Association of Schools Boards, Inc. and Precision Emprise, LLC dba Precision Concrete Cutting (PCC) dated December 1, 2021. The City of Morgan Hill is a member of the BuyBoard National Purchasing Cooperative. The the PCC contract is available to Cooperative members and estalishes an agreed upon set of services and costs for professional sidewalk assessments and uneven sidewalk repair services.

Scope of Services:
1) ADA Compliant Uneven Sidewalk Repair Services: $54/ Inch Foot (IF) PCC uses a patented technique for repair of uneven sidewalks or uplifts. The PCC technique is a saw-cutting method that, which horizontally slices the trip hazard away, and matches the sidewalks at the control joint. This method preserves the existing infrastructure and saves time and money by eliminating the need for the removal or replacement of sidewalk panels.

All materials, labor and equipment required to shave uplifted concrete edges at an angle within City of Morgan Hill code requirements will be provided. Service Provider shall mobilize within 72 hours and provide the necessary workforce and equipment when requested by the City of Morgan Hill. The project locations for sidewalk repairs are to be identified by the City of Morgan Hill staff by describing or marking the specific area to be repaired. a. PCC shall repair all sidewalk trip hazards from ¼” and up to 2” differential, as long as the integrity of the sidewalk is not compromised, within the project area identified and documented by City staff.
b. PCC shall remove hazards completely, from one end of the raised sidewalk joint to the other if applicable, leaving a zero point of differential between slabs. c. The PCC must completely and immediately clean up all debris after each hazard is repaired. All costs incurred for disposal of waste material shall be included in the unit cost. Service Provider shall not allow dispersal of dust during the process. At no additional charge the Service Provider shall properly collect, remove, and dispose of all shaving residue.
d. No water-cooling is allowed unless all slurry and contaminants are contained. Under no circumstances shall any slurry or contaminants enter storm drains or cause excessive environmental impact. PCC shall use a dust abatement system and demonstrate such a system to the satisfaction of the City.
e. At no additional charge the Service Provider shall properly remove and dispose of any existing temporary make-safes. Gutters and inlets shall be protected and cleaned of silt resulting from the Service Provider's operation. Service Provider shall not allow silt-laden water, generated from the cutting operations to flow into the public storm system or be 13 Updated: August 2024

deposited into the public right of way. Service Provider shall be responsible for removing silt material from the job site.
f. PCC shall guarantee specified repair slope (1:10 based upon requirements outlined in the Americans with Disabilities Act) is achieved. If a defined slope is not achieved, PCC shall repair to specification at no additional charge within 24 hours of discovery. g. PCC shall guarantee that the repaired trip hazard will have a uniform appearance and texture. The finished surface shall have a coefficient of friction of at least 0.6 and show via previous testing that the technique used yields the specified coefficient of friction. h. The hardware must be flush to the ground and capable of working at any angle and perform trip hazard removal in hard-to-reach areas, around obstacles, on narrow walkways, next to fences and retaining walls or buildings. i. Grinding or pulverization of the concrete is not acceptable or allowed, causing microcracks or weakening the concrete panel. PCC’s sidewalk defect repairs shall not leave ridges or grooves that could hold water and prevent drainage of rainwater or irrigation.
j. Dust collection device will be used in conjunction with high powered vacuums that use HEPA filters and collect 90% of dust.
k. Service Provider shall take all necessary precautions to isolate and protect the public from hazardous conditions by using protective barricades during trip hazard repairs at no additional charge to the City.
l. Other incidental and necessary work for performance of the above in conformance with the City of Morgan Hill Standard Details, the 2023 Caltrans Standard Specifications, and specified provisions of the 2023 Caltrans Standard Plans, all of which are incorporated by reference herein.

2. Sidewalk Asset Management Surveying: $300 / Sidewalk Mile PCC uses a proprietary software application to survey and record pedestrian infrastructure issues. The vertical height of an uneven sidewalk deflection is measured in the 8ths of an inch in order to determine the requisite slope required by the ADA to repair such location. This data is recorded and used to calculate the number of “inch feet” of concrete to be precisely cut away.

PCC can gather additional data points, or data on additional variables that are desired for the survey.

If requested by City staff, PCC shall walk and visually inspect every sidewalk panel in the project area, and PCC shall use data collection that records the details of the work. The data shall be transmitted electronically to the City Maintenance Representative. The data shall be provided in both MS Excel or in HML or HMZ format that is suitable for use as a Google Earth layer. The data must include an itemized summary of all repaired hazards, including the data indicated below:
a. Before and after photographs of each repair performed. These must be imbedded in or as hyperlinks in each data set.
b. The physical location (street address) of each repair. c. The GPS coordinates with precision/repeatability of 2 ft. or better. d. An indication whether the hazard is to be repaired by sidewalk slicing or by another method such as removal and replacement.
14

Limitations

1. PCC removes only those trip hazards specifically requested or approved by City, and only removes trip hazards within its capabilities as identified in the scope of work, PCC therefore makes no guarantee or representation that areas adjacent to the work performed are free of trip hazards after the work is completed.

2. It is the City’s responsibility to provide proper access and PCC assumes no liability for trip hazards that cannot be repaired due to parked vehicles or other obstacles preventing safe and practical access. Service Provider shall notify the City of the accessibility issue.

After City has cleared the obstacle and notified Service Provider, PCC will return once to attempt completion of the repairs that could not be completed the first time. 15

EXHIBIT B

SCHEDULE OF COMPENSATION
The total not-to-exceed amount for this two-year on-call maintenance service agreement is $150,000 per the following unit pricing:

1. ADA Compliant Uneven Sidewalk Repair Services Cost: $54 / Inch Foot (IF) Sidewalk Repair Billing Units: Services are billed in “Inch Feet.” An inch foot is calculated by measuring the average height of the sidewalk off-set and multiplying this average by the length of the cut.

Example: A sidewalk off-set on a 4-foot wide sidewalk that consists of a 0.5” rise on one side, and tapers down to a zero rise on the other is calculated as follows:

0.5” + 0” x 4ft = 1 inch-foot
2 2. Sidewalk Asset Management Surveying Cost: $300 /Sidewalk Mile Sidewalk Asset Management Services Billing Unit: Services are billed per Sidewalk Mile (“SW-Mile”). SW-Miles are calculated as twice the total mileage 16 Updated: August 2024

17 Updated: August 2024

EXHIBIT C

SCHEDULE OF PERFORMANCE
All work to be scheduled with Maintenance Services Manager, Maintenance Services Coordinator or other authorized City Project Manager designee.

8 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

David Gittleson, Associate Engineer
APPROVED BY: City Manager

AWARD MONTEREY ROAD UNDERPASS CONCRETE SPALL AND

CRACK REPAIR PROJECT TO ASHRON CONSTRUCTION AND
RESTORATION INC. IN THE AMOUNT OF $284,440

RECOMMENDATION(S)

1. Approve the Monterey Road Underpass Concrete Spall and Crack Repair Project Plans and Specifications;

2. Award contract to Ashron Construction and Restoration Inc. for the Monterey Road Underpass Concrete Spall and Crack Repair Project in the amount of $284,440;

3. Authorize expenditures of construction contingency not to exceed $28,444; and

4. Authorize the City Manager to execute and administer the construction contract with Ashron Construction and Restoration Inc.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Vision Zero
Guiding Documents
General Plan Circulation Element
REPORT NARRATIVE:

The City staff observed that the City owned underpass, which goes underneath the railroad tracks on Monterey Road, had developed cracking issues on the concrete bridge supports on either side of Monterey Road. In response, the City had the City's on-call structural engineering consultant, Biggs Cardosa Associates, inspect the concrete bridge supports for any failures. Upon inspection, Biggs Cardosa Associates determined that surface cracks had developed in the concrete and that the concrete was spalling in some areas, but that the structural integrity of the underpass was not

8 compromised. Biggs Cardosa Associates recommended that the concrete spalls be repaired and that the cracks be injected with epoxy. Thus, the City had Biggs Cardosa Associates, Inc. prepare plans and specifications to repair the problem areas on the bridge supports. The project's scope of work includes: mobilization, traffic control, job site management, meetings, water pollution control, repairing concrete spalled areas, repairing 4 inch deep concrete spalled areas, injecting cracks with epoxy, and painting concrete surfaces.

The Plans and Specifications were completed in July 2024 and the Notice Inviting Bids was advertised in the Morgan Hill Times on July 26th, 2024 and August 2, 2024. The bid opening was held on August 15, 2024, and four (4) bids were received as listed below:

1. Ashron Construction and Restoration, Inc. $284,440

2. Zara Construction, Inc. $287,300

3. Howard Ridley Co., Inc. $340,525

4. American Civil Constructors West Coast LLC $363,000
The lowest responsible bidder was Ashron Construction and Restoration, Inc. at $284,440. The low bidder's bid amount of $284,440 is approximately 12% lower than the engineer's estimate of $320,000. The low bidder, Ashron Construction and Restoration Inc., has 22 years of experience as a contractor and has performed structural/concrete repair work for the City of Fresno, County of Napa, Town of Los Gatos, City of Alameda, City of Pleasanton, and the City of Calistoga.

Staff recommends the award of the contract to Ashron Construction and Restoration, Inc. in the amount of $284,440. Due to the possibility of the expansion of the repair work area, staff is requesting a ten (10) percent construction contingency for the project of $28,444.

This project is scheduled to start in November/December 2024 and be completed within 90 days. The plans and specifications are available on the City's web page under the Government tab and on the Community Projects site.
https://www.morganhill.ca.gov/1436/Project-Plans-Specifications-and-Bid-Res COMMUNITY ENGAGEMENT:

While there may be inconveniences for residents close by, staff will work with the contractor to minimize these inconveniences and provide email and door notifications prior to any construction activities. Staff will also provide regular updated construction information weekly through Next-door and on the City’s website. Additionally, roadway signage will be used to inform drivers of planned lane closures on Monterey Road.

8 ALTERNATIVE ACTIONS:

City Council could decide not to award the construction contract. Doing so could reduce the life of the structure if the repairs are prolonged or not done at all. Staff recommends against this as competitive bids were received and rebidding is not likely to reduce prices.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

None.

FISCAL AND RESOURCE IMPACT:

Fiscal:

If approved, the total construction authorization for this project shall be $312,884, which includes a 10% contingency of $28,444. The City does not have any funding for large bridge maintenance projects. However, bridge projects such as this are required roadway maintenance projects to ensure City roadways remain open. City staff propose using a portion of the budgeted roadway and pavement restoration project funds allocated in the FY 24/25 through 2029/2030 Capital Improvement Budget under Pavement Restoration Project (SR5004), presented to the City Council on June 19, 2024.

CEQA (California Environmental Quality Act):

Project: Categorical Exemption
The project is categorically exempt per Section 15301(d)-Existing Facilities, restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety which involves negligible or no expansion of an existing use.

Engineering and Utilities Department
CIP Engineering Division

MONTEREY ROAD UNDERPASS

CONCRETE SPALL & CRACK REPAIRO
820 0 820 1,640 2,460 410
Feet
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
G:\R-14\Proj\GIS\Agustin\2023 pvmnt.mxd

PROJECT LOCATION

OLD MONTEREY RD

LLAGAS RD
BENDER
CIR

MONTEREY
RD
R.R
R.R

9 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Michelle Bigelow, City Clerk
APPROVED BY: City Manager

ADOPT A JOINT RESOLUTION DETAILING THE REPRESENTATIVE

GOVERNANCE FOR SOUTH SANTA CLARA COUNTY CITIES ON

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY'S (VTA)

BOARD OF DIRECTORS

RECOMMENDATION(S)
Adopt the joint Morgan Hill and Gilroy resolution detailing the representative governance for South Santa Clara County Cities on Santa Clara Valley Transportation Authority's (VTA) Board of Directors.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Advocating for Local, Regional, and State Legislative Initiatives 2024-2025 Strategic Priorities
Transportation
REPORT NARRATIVE:

The City of Morgan Hill participates with the City of Gilroy in representing the two South Santa Clara County cities on the Santa Clara Valley Transportation Authority (VTA) Board of Directors. VTA is a regional transportation authority that addresses regional transportation and congestion management throughout Santa Clara County.

The VTA is governed by its Board of Directors, a board comprising twelve voting members and six non-voting members. Five voting members are allocated to the City of San Jose, two to the County of Santa Clara, and the remaining five seats are divided among the small city groupings. The Cities of Gilroy and Morgan Hill (Cities) share one voting member and one alternate for the South County City Group, Group Four.

VTA delegated the determination of how each small city group would share representation and select their appointment to the cities within each group. Effective January 2012, the cities began self-determining the rotation of representation between cities. For Group Four, one city began providing the appointee, and the other provided the alternate. Every two years, the appointee and alternate would switch to the other city.

9 The auditors of a recent State audit of VTA identified the need to formally memorialize the shared representation structure.

Based on the identified need, staff has prepared a joint resolution between the Cities of Gilroy and Morgan Hill to memorialize the structure and the rotation of representation.

The two cities are expected to adopt this resolution and provide a signed version to VTA. Should changes be required in the future, an amendment or rescission of the resolution by both cities would be required to adopt any changes.

Due to the timing, the City of Gilroy will be adopting first on October 21, 2024.

COMMUNITY ENGAGEMENT:

This report serves to inform the community of the proposed resolution to codify the ongoing process for appointing representatives to the VTA board.

ALTERNATIVE ACTIONS:

The Council may amend or reject the joint resolution. This is not recommended, as the structure outlined in the resolution has been the practice of both cities in cooperation since the shared representation began in 2012. Any amendment would require the process of memorializing the structure to be postponed until the changes can be evaluated with the City of Gilroy as a partner in the representative structure.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Assignments to outside agencies are generally reviewed and updated annually.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with the adoption of this resolution.

CEQA (California Environmental Quality Act):

The adoption of this administrative resolution does not qualify as a project.

GILROY RESOLUTION NO. 2024-XX
MORGAN HILL RESOLUTION NO. XXXX

A JOINT RESOLUTION OF THE CITY COUNCILS OF THE

CITIES OF GILROY AND MORGAN HILL TO

MEMORIALIZE THE ESTABLISHED SCHEDULE OF

SHARED REPRESENTATION ON THE SANTA CLARA
VALLEY TRANSPORTATION AUTHORITY’S BOARD OF

DIRECTORS FOR THE SOUTH COUNTY CITIES GROUP
WHEREAS, the Santa Clara Valley Transportation Authority (VTA) is a regional transportation authority addressing regional transportation and congestion management throughout Santa Clara County; and
WHEREAS, the VTA is governed by its Board of Directors, a board comprised of twelve voting members, in addition to six non-voting members. Five of the voting members are allocated to the City of San Jose, two to the County of Santa Clara, and the remaining five seats are divided amongst the small city groupings; and WHEREAS, the Cities of Gilroy and Morgan Hill (Cities) share one voting member, and one alternate for the South County City Group, Group Four; and WHEREAS, the VTA delegated the determination of how each small city group would share representation and select their appointment to the cities within each group; and
WHEREAS, effective January of 2012, the Cities began self-determining the rotation of representation between the Cities, one city providing the appointee, the other providing the alternate. Every two years the appointee and alternate would switch to the other city; and
WHEREAS, the Cities would provide the name of the appointee and alternate to VTA on their appointment form; and
WHEREAS, in a recent State audit of VTA the need to formally memorialize the shared representation structure was identified by the auditors; and WHEREAS, the Cities desire to adopt this joint resolution to accomplish the purpose as stated above.

NOW, THEREFORE, BE IT RESOLVED by the City Councils of the Cities of Gilroy and Morgan Hill that:

1. The Cities shall share representation through rotation of appointments to the Board of Director Seat for the South County Small Cities Group, Group Four.

2. Representation shall rotate on two-year terms, commencing January 1st of each odd year.

3. One city shall provide the appointee to the VTA Board of Directors, and the alternate shall come from the other city of the South County Small City Group.

4. Based on the current schedule, the City of Morgan Hill will provide the Appointee, and the City of Gilroy will provide the Alternate, for the period of January 1, 2025 through December 31, 2026. Every January 1st of each odd

Gilroy Resolution No. 2024-XX
Morgan Hill Resolution No. XXXX
VTA Board of Directors South County Small Cities Group Shared Representation Gilroy City Council Regular Meeting | October 21, 2024
Morgan Hill City Council Regular Meeting | DATE

year thereafter, the cities providing the Appointee and the Alternate shall each switch.

5. The City of Gilroy will have their representative selected by their Mayor with their City Council’s approval in accordance with their existing Council policy.

6. The City of Morgan Hill will have their representative to the VTA Board selected by their Mayor in accordance with their existing Council policy.

PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 21st day of October, 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
__________________________
Marie Blankley, Mayor
ATTEST:
_______________________
Beth Minor, Interim City Clerk
PASSED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting duly held on the XX day of MONTH, 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
__________________________
Mark Turner, Mayor
ATTEST:

Gilroy Resolution No. 2024-XX
Morgan Hill Resolution No. XXXX
VTA Board of Directors South County Small Cities Group Shared Representation Gilroy City Council Regular Meeting | October 21, 2024
Morgan Hill City Council Regular Meeting | DATE

_______________________
Michelle Bigelow, City Clerk

10 CITY COUNCIL STAFF REPORT
MEETING DATE: October 23, 2024
PREPARED BY:

Andrew Crabtree, Development Services Consultant
APPROVED BY: City Manager

ADOPT RESOLUTION TO ESTABLISH NEW AND UPDATED FEES FOR

PLANNING, BUILDING, AND LAND DEVELOPMENT ENGINEERING

RECOMMENDATION(S)

1. Open/Close Public Hearing; and

2. Adopt resolution to establish new and updated Planning, Building, and Land Development Engineering fees as proposed.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
General Plan
Municipal Code
REPORT NARRATIVE:

Note: This item was originally scheduled for the September 4, 2024 City Council meeting. Due to technical difficulties within the City Council Chamber, the item was continued to this date.

The City of Morgan Hill is proposing to update the City’s fees for land development permits issued by Planning, Engineering Land Development (a part of the Public Services Department), and Building programs. The California Government Code allows cities to recover all or a portion of the cost of providing exchange-based services through the application of fees. The City of Morgan Hill accordingly requires the payment of a fee as part of the application for Planning, Building and Land Development Engineering permits administered through the City's Development Services program.

These fees reflect the cost to review and process applications required for new construction. The fees collected include compensation for time by City teammates on activities such as technical review, stakeholder meetings, communication and public

10 hearings, as well as costs incurred by the City such as noticing and general overhead expenses. These activities are intended to be 100% cost recovery, and therefore must be periodically reviewed to account for changes in personnel costs, overhead, internal service charges, and costs for supplies, technology, and services. Prior to the current analysis, planning and land development engineering permit fees were last reviewed in 2021 and building permit fees were last reviewed in 2017. The City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought the City's services by revising its schedule of development fees
Analysis
City fees are adjusted on an annual basis through a general cost of living percentage increase. Building permit fees are mostly based on project valuation, which increased due to increasing costs within the construction industry. However, it has been three years for Planning and Land Development Engineering and seven years for Building since the fees have been updated. The current fee study provides an opportunity to more accurately connect fees to actual operating costs, address changes in staffing since the last fee study, and reassess assumptions made in previous studies. The current fee study relies upon an analysis of the actual costs of service delivery for a typical permit using the established methodology previously employed by the City and the City's consultants.

The current fee study addresses the following:
1) updated staffing model
2) updated costs for salaries, benefits and overhead
3) adjustments to the number of hours required to deliver a particular service 4) updated public information staffing costs (counter service) Based on the Fee Study, staff is proposing to update the City’s fees for land development permits issued by Planning, Engineering Land Development (a part of the Public Services Department), and Building programs. Fees for service are determined based upon two primary variables:
• Fully Burdened Hourly Rate (FBHR)
• Number of hours to perform the service (Hours per Service) This study indicates that both the FBHR and the Hours per Service should be increased to implement a 100% cost recovery fee program. The FBHR is proposed to be adjusted based on changes to the current staffing composition, employee pay rates, program administrative costs, and Citywide overhead rates. The Hours per Service for each permit have been reviewed by staff and adjusted in this study to align with the amount of time currently spent by staff hours in the review and issuance of these permits.

10 In summary:
• Proposed FBHR increases are 53% for Planning, 49% for Engineering Land Development and 9% for the Building programs. (The Building Program includes Fire code permits.)
• Average permit fees increase by various amounts, ranging from 8% for Electrical permits issued by the Building Department up to 119% for Planning permits. • Based upon projected activity levels by permit type, fees collected are expected to increase on average by program from between 9% for Mechanical, Electrical and Plumbing permits to 131% for Planning permits.
• The proposed increases to the FBHR and permit fees correspond to a 100% cost recovery model as established in the following analysis.

Proposed Change to FBHR 2024
Current
2024
Proposed
%
Increase
Planning $253 $387 53%
Engineering Land
Development
$248 $370 49%
Building / Fire $234 $256 9%
Average Permit Fee Increase Unweighted Weighted
by Volume
Planning 119% 131%
Engineering Land
Development
62% 51%
Building Permits 27% 33%
Building Plan Check 110% 92%
Building - Mechanical 9% 9%
Building - Electrical 8% 9%
Building - Plumbing 9% 9%
Fire 40% 14%
Planning permit fees increase by the greatest margin due to the increased Planning program FBHR and a significant increase in Hours per Service for most planning permits. Planning staff carefully reviewed the Hours per Service used in the two prior Fee Studies and determined that they significantly underrepresented the actual amount

10 of time spent by staff to process each permit. Engineering Land Development fees also increased significantly, due in large part to the increased Engineering Land Development FBHR, along with more modest increases in the standard Hours per Service.

Building Permit fees have a less significant increase, correlating mostly with the modest increase in the Building program FBHR. However, plan check fees have increased more significantly, particularly for projects that include review by Engineering Land Development and Planning, due to increased FBHR for both programs and increased Hours per Service for Engineering Land Development. Fire reviews have also increased more significantly, due to increased Hours per Service.

The proposed fee update proposes to continue subsidizing fees for six planning permit types and recover less than 100% cost recovery, as adopted in 2022. These planning permits are Appeals, Temporary Use for Non-Profits, Tree Removals, Administrative Use Permits, Temporary Use Amendments, and Residential Private Livestock. The cost to process an Appeal is kept at less than cost recovery so that the fee will not become a potential obstacle to public participation in the planning process. Similarly, costs for the other identified permits are set at less than 100% cost recovery so that permit fees do not become an obstacle to code compliance and/or desirable land use activities for which the full cost recovery fee would be cost prohibitive. Providing these permit activities at less than 100% cost recovery requires that the City supplement the planning permit program with a General Fund contribution equivalent to the average amount of revenue lost with the reduced fees.

Proposed Fee Modifications
Based upon the input received from stakeholder outreach, and the comparison with other cities, the proposed fee structure was modified to create a reduced fee for an SB 330 Preliminary Application and to reduce the rate of escalation in fees for multifamily residential projects and large subdivisions based on the number of units and lots. The SB330 Preliminary Application vests residential applications with current fees and regulations in existence on the day fees are received for the application and starts a 180-day clock where that vesting will expire if a formal application is not filed. For the SB330 Preliminary Application Fee, it is recommended to create a tier system with one small fee equal to three (3) hours of review that vests the application with no staff feedback and the standard fee that includes detailed analysis of the proposal and a meeting with a departmental team as shown below. This fee is shown highlighted on the Planning Fee Schedule in Exhibit A to the Draft Resolution.

Permit Type Proposed Fee Tiered Proposed Fee Approach
SB330 Preliminary
Application
$26,666 Vesting Only fee: $1,161
Preliminary Review with
department wide review and
comment meeting: $26,666
Fee Comparisons
The City began an effort to compare the proposed fees with the fees for comparable permit processes in Gilroy, San Jose, Campbell, Sunnyvale and Palo Alto. It was clear

10 from the initial research that the majority of cities use "time and materials" or "hourly rate" for applications or flat rates that are subsidized by the General Fund and are not 100% cost recovery. The City did not find a comparable city that used an average processing time to base the full cost recovery rate at 100%.

Implementation
The proposed fee schedule positions the City to recover as close to 100% cost recovery as feasible. Council may choose to adopt the fee schedule as proposed or may consider phased implementation over time until 100% cost recovery is met. For example, 50% of the proposed fee increase could take effect upon adoption, with an additional 25% increase at the end of the next two fiscal years. Staff have observed two, three and five year phased-in implementation of new fees in different Bay Area municipalities. It is important to note that a phased approach will require General Fund subsidies until 100% cost recovery is met.

COMMUNITY ENGAGEMENT:

Public Notices related to development fee consideration by the City Council have been distributed and advertised in accordance with the provisions of Sections 66016 through 66018 of the California Government Code.

Two public meetings with developers and community members, one in person and one virtual, were held on August 13th and 14th, 2024. No one attended the in-person meeting, but the virtual meeting held on August 14th was attended by six (6) individuals representing the development community, including a participant from the Builder's Industry Association (BIA). A detailed summary of that meeting is included on Page 21 of the Fee Study.

Communication regarding the proposed fees was also received outside of the outreach meetings. For example, an email from Pete Larko of JP DiNapoli Companies, Inc. expressed concern about the fee increase, but further clarified that relative to the cost of the City’s impact fees, permit fees are not significant. The mention of impact fees was also a common point made in the development meeting on August 14th and represent a separate conversation. Impact fees do not follow the same formula as development application fees and are charged much later in the development process. Impact fees are a one-time charge to new development imposed under the Mitigation Fee Act.

These fees are charged to mitigate impacts resulting from the development activity and cannot be used to fund existing deficiencies.

A letter was also received from Dennis Martin of the Builders Industry Association (BIA) prior to the original meeting date. A comprehensive City response to the questions in the letter and subsequent questions via email are included as an attachment. Mr.

Martin submitted another letter and a Review of the City of Morgan Hill’s Development Services Fund 206 Analysis performed by DFA (Development and Financial Advisory) (attached) for this hearing.

10 ALTERNATIVE ACTIONS:

City Council can choose to maintain existing permit fees, adopt fees at a less than full cost recovery level, or implement a phased-in approach for the fees as proposed.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

No prior City Council actions have been taken on this proposed fee update. Planning and Land Development Engineering permit fees were last updated by the City Council in January 2022. Building permit fees were last updated in October 2017.

This item was scheduled for the September 4, 2024 City Council meeting. Due to technical difficulties within the City Council Chambers, the item was continued to a date certain.

FISCAL AND RESOURCE IMPACT:

The annual impact on the Development Services Special Revenue Fund is anticipated to be an increase in revenue that will recoup more of the reasonable costs for providing a given service. If revenues fall short of operating expenses for any of the planning, building, and/or land development engineering programs, the General Fund will have to provide subsidies for the program.

Should the Council adopt the proposed updated fee schedule on October 23, 2024, the new and updated fees would go into effect on December 22, 2024.

CEQA (California Environmental Quality Act):

Not a Project.

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

RESOLUTION NO. 24-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF MORGAN HILL ESTABLISHING NEW AND

UPDATED PLANNING, LAND DEVELOPMENT

ENGINEERING, AND BUILDING FEES
WHEREAS, the City Council, pursuant to Section 3.50.010 of the Morgan Hill Municipal Code (“Code”), requires the recovery of costs reasonably born from fees and charges levied in providing the regulation, products or services enumerated in Code Chapter

3.50 – Fee and Service Charge Revenue/Cost Comparison System; and WHEREAS, the City of Morgan Hill has conducted a fee analysis to calculate the costs reasonably borne to provide the specified Planning, Land Development Engineering, and Building services, which study has been available to the public for at least ten (10) days prior to the adoption of this Resolution; and
WHEREAS, an in-person public meeting and a virtual public meeting were held with members of the development community and other interested parties on August 13, 2024 and August 14, 2024 respectively; and
WHEREAS, the proposed establishment of the fees that are the subject of this Resolution was agendized for consideration by the City Council of the City of Morgan Hill at a duly noticed public hearing of the Council held on September 4, 2024 at which hearing all interested persons were afforded an opportunity to be heard on said proposed fees; and WHEREAS, the Council heard all relevant testimony and reviewed all written materials submitted in connection with its hearing on this Resolution.

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

1. The City Council has conducted an extensive analysis of its Planning, Land Development Engineering, and Building Fees, including the cost to the City for special services and development applications and the revenues produced by those paying Planning, Land Development Engineering, and Building Fees; and

2. Current Planning, Land Development Engineering, and Building Fees charged for the City's Services do not adequately recoup the City's costs of providing certain Services; and

3. The City Council finds that providing these Services is of special benefit to Applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these Services from Applicants who have sought the City's Services by revising its schedule of City-Wide Fees; and