Morgan Hill City Council
January 15, 2025

Regular Meeting Agenda
City Council
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Miriam Vega - Council Member
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Wednesday, January 15, 2025 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person with the option for the public to attend in-person or 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

January 15, 2025
2 Public comment may be offered verbally at the meeting or in writing before the meeting.

Public comment is limited to three minutes, but the Mayor may adjust time limits for individual or total comments while ensuring all viewpoints are heard, encouraging speakers to avoid repetition, and allowing a designated spokesperson for organized support or opposition to present longer if needed.

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

January 15, 2025
3 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.

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PRESENTATIONS
YAC Presentation

CITY COUNCIL REPORTS
Mayor Turner

CITY MANAGER'S REPORT

CITY ATTORNEY'S REPORT

OTHER REPORTS

PUBLIC COMMENT
This opportunity for public comment is for items that are not on the agenda. If you would like to make comments on an item that is on the agenda, please wait until we get to that item to offer your comments. Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. Public comment is intended for comments. Questions posed during public comment are not generally answered. If

January 15, 2025
4 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. APPROVE THE DECEMBER 4, 2024 AND THE DECEMBER 11, 2024 CITY

COUNCIL MEETING MINUTES
Recommendation:

Approve minutes.

2. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH TOOLE DESIGN FOR $220,250 FOR THE DEVELOPMENT OF A

COMPREHENSIVE SAFETY ACTION PLAN
Recommendation:

1. Authorize the City Manager to execute a consultant agreement with Toole Design for the development of a Comprehensive Safety Action Plan for the City of Morgan Hill; and

2. Adopt a resolution amending the FY24-25 Capital Improvement Program Budget appropriating $220,250 in expenses and $200,500 in grant revenue within the Traffic Impact Fund (309).

3. RATIFY THE CITY MANAGER'S EXECUTION OF THE FIRST AMENDMENT TO AGREEMENT WITH MONTEREY BAY OFFICE PRODUCTS, INC. FOR

THE PURCHASE AND MAINTENANCE OF THE CITY'S MULTI-FUNCTION

PRINTERS
Recommendation:

Ratify the City Manager's execution of the first amendment to the agreement with Monterey Bay Office Products, Inc. for the purchase of the City's multifunction printers.

4. RECEIVE MONTHLY BUDGET UPDATE AND NOVEMBER 2024 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

Recieve and file report.

January 15, 2025
5 PUBLIC HEARINGS

5. ADOPT RESOLUTION APPROVING COMMENCEMENT OF 2025 WEED

ABATEMENT PROGRAM
Recommendation:

1. Open/Close public hearing; and

2. Adopt a resolution authorizing Santa Clara County to commence hazardous vegetation abatement activities.

6. ADOPT RESOLUTION AMENDING THE TEXT OF THE MORGAN HILL 2035

GENERAL PLAN TO ELIMINATE THE FLOOR AREA RATIO FOR THE

MIXED USE FLEX LAND USE DESIGNATION AND INTRODUCE
ORDINANCE (ZA2024-0002) AMENDING CHAPTER 12.32 (RESTRICTIONS ON REMOVAL OF SIGNIFICANT TREES) WITHIN TITLE 12 (STREET,

SIDEWALKS AND PUBLIC PLACES) OF THE MUNICIPAL CODE OF THE

CITY OF MORGAN HILL AND VARIOUS CODE PROVISIONS WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL

IMPLEMENTING UPDATES TO ACCESSORY DWELLING UNIT
PROVISIONS TO COMPLY WITH SENATE BILL 477 AND SENATE BILL 1211; IMPLEMENTING REPRODUCTIVE HEALTH COMMUNITY CLINICS BY-RIGHT TO COMPLY WITH ASSEMBLY BILL 2085; UPDATES TO
PARKING PROVISIONS TO COMPLY WITH ASSEMBLY BILL 2097; AND

IMPLEMENTING MINOR AMENDMENTS DUE TO CLERICAL ERRORS AND

INCONSISTENCIES
Recommendation:

1. Open/close the public hearing;

2. Adopt a Resolution approving an amendment to the text of the Morgan Hill 2035 General Plan to eliminate the Floor Area Ratio for the Mixed Use Flex land use designation;

3. Waive first and second reading of the Ordinance Amendment; and

4. Introduce Ordinance Amendment.

OTHER BUSINESS

7. DOWNTOWN MORGAN HILL IMPROVEMENT DISTRICT 2024 ANNUAL REPORT
Recommendation:

Accept and file the Downtown Morgan Hill Improvement District Annual Report.

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

January 15, 2025
6 1. Open floor to nomination(s) for Mayor Pro Tempore; and

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

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

CLOSED SESSION
Conference with Legal Counsel – Existing Litigation (§ 54956.9) Cheryl Dominguez v. City of Morgan Hill: Workers Compensation Claim Nos. MHL1900016

OPPORTUNITY FOR PUBLIC COMMENT

ADJOURNMENT

January 15, 2025
7 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item 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].

January 15, 2025
8

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, December 4, 2024 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 6:00 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 Martinez Beltran participated remotely in accordance with AB 2449.

She was out of town to attend the Cal Cities Board Meeting. She announced that no one was in the room with her, other than employees of venue.

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

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

RECOGNITIONS

December 4, 2024
2 Recognizing our Police and Fire Teammates for their Successful Lifesaving Efforts

PRESENTATIONS
YAC Presentation

CITY COUNCIL REPORTS
Council Member Spring mentioned that he attended his last Santa Clara Valley Habitat Agency meeting. He is on the Implementation Board and the Chair of the Governing Board and encourages the community to check out what they are doing to preserve and protect the City's open space areas. He also noted that he would be attending the holiday parade on Saturday, December 7th for the last time as a Council Member.

CITY MANAGER'S REPORT
City Manager Christina Turner mentioned that the City of Morgan Hill will host a Special City Council Meeting on Wednesday, December 11th at 6:00 p.m., to farewell departing elected officials and welcome our newly elected and re-elected officials. She announced that there are many upcoming events this holiday season. For more information about these events, make sure you are subscribed to the City’s 411 weekly newsletter. In addition, the last Sidewalk Saturday event of the season will be on Saturday, December 14th, from 10:00 a.m. - 3:00 p.m. She concluded by sharing that City offices will be closed for furlough from December 23rd through January 3rd and that emergency services will be available during that time.

CITY ATTORNEY'S REPORT
None.

OTHER REPORTS
Council Member Martinez Beltran shared that she attended the Silicon Valley Clean Energy Executive Board meeting last week as well as an ABAG meeting. She mentioned that she attended the Interfaith Thanksgiving service that was held at Advent Lutheran.

PUBLIC COMMENT
Public comment opened at 6:19 p.m.

Krista Rupp from Visit Morgan Hill was called to speak
There being no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

December 4, 2024
3 RESULT: Passed
MOVER: Council Member Spring
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

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 1, 3, and 5 through 10.

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
Items 2 and 4 were heard after item 11.

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

Accept and file report.

3. ADOPT RESOLUTION APPROVING AND MAKING FINDINGS RELATED TO THE ASSEMBLY BILL (AB) 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR 2023-24
Recommendation:

1. Adopt resolution making findings for unexpended development impact

December 4, 2024
4 fees; and

2. Accept the annual development impact fee report.

5. ADOPT ORDINANCE NO. 2359, NEW SERIES, ESTABLISHING CHAPTER

18.78 (STANDARDS FOR PUBLIC ARTS) WITHIN TITLE 18 (ZONING) OF

THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL IMPLEMENTING

THE REQUIREMENT OF PUBLIC ART IN NEW LAND DEVELOPMENT

PROJECTS
Recommendation:

Waive the reading, adopt Ordinance No. 2359, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

6. APPROVE ACQUISITION OF SEWER EASEMENT (NGUYEN) APN 841-03- 062 FOR THE SEWER RELIEF TRUNK LINE PROJECT
Recommendation:

1. Authorize the City Manager to acquire the sewer easement (3,306 square feet), APN 841-03-062, for $17,000 plus escrow and closing costs from Hung Nguyen, Hong Le, Van Nguyen, and Long Nguyen for the Sewer Relief Trunk Line Project; and

2. Authorize the City Manager to execute all documents and make minor modifications, with the approval of the City Attorney, as necessary in order to consummate the transaction.

7. APPROVE THE FIRST AMENDMENT TO THE IMPROVEMENT AGREEMENT FOR THE BLUEWAVE EXPRESS CAR WASH PROJECT LOCATED AT 18625 MONTEREY ROAD (APN: 764-10-008)
Recommendation:

1. Approve the First Amendment to the Improvement Agreement for the BlueWave Express Car Wash Project;

2. Authorize the City Manager to execute the First Amendment to the Project’s Improvement Agreement with BW Morgan Hill, LLC; and

3. Authorize the recordation of the First Amendment to the Improvement Agreement.

8. APPROVE THE NOVEMBER 20, 2024 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

December 4, 2024
5 9. APPROVE CHANGE ORDER WITH LARRY S. KENT, INC. DBA KENT

CONSTRUCTION TO INSTALL A HAWK SIGNAL FOR BUTTERFIELD FIRE STATION PROJECT IN THE AMOUNT OF $322,205
Recommendation:

1. Approve and authorize the City Manager to execute a Change Order with Larry S. Kent, Inc. DBA Kent Construction in the amount of $322,205 for a HAWK signal at the Butterfield Fire Station Project; and

2. Approve and authorize the City Manager to add 10% contingency to the HAWK signal project in the amount of $32,221.

10. RECEIVE MONTHLY BUDGET UPDATE AND OCTOBER 2024 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

Accept and file report.

OTHER BUSINESS

11. REVIEW AND APPROVE TRANSPORTATION MASTER PLAN
Recommendation:

1. Review and provide comments on Transportation Master Plan; and

2. Approve Transportation Master Plan.

Assistant City Manager/Public Services Director Chris Ghione and Robert Del Rio, with Hexagon Transportation Consultants, provided a presentation and report.

Public comment opened at 7:13 p.m. The following people were called to speak:

Doug Muirhead
Nick Gaich
Armando Benavides (Zoom)
There being no further requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Council Member Martinez Beltran
AYES: Council Member Spring, Council Member Borgioli, Council Member

December 4, 2024
6 Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers NAYS: None
ABSTAIN: None
ABSENT: None
The meeting recessed at 7:38 p.m. and reconvened at 7:43 p.m.

ITEMS PULLED FOR DISCUSSION

4. ADOPT ORDINANCE NO. 2358, NEW SERIES, APPROVING A ZONING

AMENDMENT FOR A PLANNED DEVELOPMENT AND ASSOCIATED
MASTER PLAN (ZA2021-0001) FOR A 69.4-ACRE SITE LOCATED AT THE NORTHEAST QUADRANT OF HILL ROAD AND BARRETT AVENUE (APN:
817-20-031)
Recommendation:

Waive the reading, adopt Ordinance No. 2358, 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.

Senior Planner Tiffany Brown and Development Services Director Jennifer Carman provided a report.

Public comment opened at 8:02 p.m. The following people were called to speak:

Matt Igel
Darcy Foster
Liz Panetta Melone
Armando Benavides (Zoom)
Joe Baranowski (Zoom)
Marc Trourad-Riolle (Zoom)
There being no further requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

December 4, 2024
7 2. ACCEPT THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Recommendation:

Accept the City’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024.

Public comment opened at 8:36 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Spring
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

FUTURE COUNCIL INITIATED AGENDA ITEMS
None.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:38 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, December 11, 2024 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill. CA 95037

SPECIAL MEETING
A Special Meeting of the City Council was called at 6:00 p.m. for the purpose of conducting City business.

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 6:00 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

DECLARATION OF POSTING AGENDA

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

RECOGNITIONS

PUBLIC COMMENT
Public comment opened at 6:58 p.m. There being no requests to speak, public comment closed.

December 11, 2024
2 ADOPTION OF AGENDA

OTHER BUSINESS

1. ADOPT RESOLUTION APPROVING NOVEMBER 5, 2024, GENERAL

MUNICIPAL ELECTION - CERTIFIED STATEMENT OF ELECTION RESULTS Recommendation:

Adopt resolution reciting the facts of the General Municipal Election of November 5, 2024, and declaring the results of such other matters as provided by law.

Public comment opened at 7:00 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

OATHS OF OFFICE
Mark Turner, Mayor
Miriam Teresa Vega, Council Member District A
Soraida Iwanaga, Council Member District C
Cindy Murphy, Treasurer

ADJOURN TO RECEPTION
There being no further business, Mayor Turner adjourned the meeting at 7:20 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

2 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT
WITH TOOLE DESIGN FOR $220,250 FOR THE DEVELOPMENT OF A

COMPREHENSIVE SAFETY ACTION PLAN

RECOMMENDATION(S)

1. Authorize the City Manager to execute a consultant agreement with Toole Design for the development of a Comprehensive Safety Action Plan for the City of Morgan Hill; and

2. Adopt a resolution amending the FY24-25 Capital Improvement Program Budget appropriating $220,250 in expenses and $200,500 in grant revenue within the Traffic Impact Fund (309).

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Healthy Community
Guiding Documents
Transportation Master Plan
REPORT NARRATIVE:

The City of Morgan Hill successfully applied for grant funding from the Federal Safe Streets and Roads for All Program last year. The City will receive grant funding of $200,500 to develop a Comprehensive Safety Action Plan for its roadways, sidewalks and bike facilities. The Comprehensive Safety Action Plan will provide a valuable planning tool to the City, but just as importantly, will meet Federal requirements for the City to apply for grant funding to construct improvements.

As the City applied for funding, the City was already in the process of developing its Transportation Master Plan, which was recently approved by the City Council on December 4, 2024. Toole Design was a sub-consultant working on that Transportation

2 Master Plan and specifically worked in the development of the multi-modal safety components of the Transportation Master Plan. Based on the quality work that Toole provided during the Transportation Master Plan development and the fact they have a very detailed understanding of the City, staff are recommending that Toole Design be hired to complete this work. Tool Design will be able to start the Comprehensive Safety Action Plan quickly, which will be important to allow the City to apply for Federal Safe Streets and Roads for All funding as soon as possible.

The Comprehensive Safety Action Plan will build upon the existing Transportation Master Plan and will provide an even more in-depth review of the City's high collision corridors along with developing an overall safe routes to schools program.

COMMUNITY ENGAGEMENT:

Involve
Significant community engagement was conducted and is included in the development of the Transportation Master Plan development. That engagement will continue through the development of the Comprehensive Safety Action Plan.

ALTERNATIVE ACTIONS:

The City Council could choose to not authorize the City Manager to move forward with the funding of the development of the Comprehensive Safety Action Plan. This is not recommended as the plan is a prerequisite for future grant funding opportunities.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council approved the City's Transportation Master Plan on December 4, 2024.

FISCAL AND RESOURCE IMPACT:

The total cost of the agreement is $220,250, which will be offset by grant funding of $200,500 in grant funding, with a net cost of $19,750 to the Traffic Impact Fund (309).

CEQA (California Environmental Quality Act):

Categorical Exemption 15262:

A project involving only feasibility or planning studies for possible future actions which the agency, board, or commission has not approved, adopted, or funded does not require the preparation of an EIR or negative declaration but does require consideration of environmental factors. Significant environmental review will occur with the update to the Circulation Element of the General Plan, for which the Transportation Master Plan will provide the basis for.

1 Revised 1.6.2025

CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS
TDG ENGINEERING, INC.

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

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

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until December 31, 2025 . The City Manager is authorized to extend the term of this Agreement provided the compensation does not exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by CONSULTANT shall be development of a Comprehensive Safety Action Plan as further described in Exhibit A.

4. Compensation. CONSULTANT shall be compensated as follows:

4.1. Amount. $220,250.00. Total compensation to CONSULTANT under this Agreement during its initial term set forth in Section 2 above shall not exceed Two Hundred Twenty Thousand Two Hundred and Fifty dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to CONSULTANT, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement, and provided further that in no event shall such maximum compensation allowed for the term exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council.

4.2. Billing. CONSULTANT shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by CONSULTANT on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 13 Notices. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation 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. CITY shall pay CONSULTANT within thirty (30) days of receipt of a proper invoice. Should the CITY fail to make timely payment, CONSULTANT reserves the right to stop work until payment is received.

2 Revised 1.6.2025

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

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

6. Performance of Work. CONSULTANT represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by CONSULTANT in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified
of completed work, CONSULTANT certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. CONSULTANT shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. CITY'S City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance within the term of this Agreement. If CONSULTANT desires to leave or store any of equipment at a CITY site while CONSULTANT is performing work or service pursuant to this Agreement, CONSULTANT will first obtain the consent of CITY'S City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at sole risk.

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

7.1. Insurance Types and Amounts.

7.1.1. Commercial General Liability (CGL). CONSULTANT shall maintain CGL against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under

3 Revised 1.6.2025
whichever is greater.

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

7.1.3. . CONSULTANT shall
maintain Workers Compensation coverage, as required by law, in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under combined insurance policies (including . If CONSULTANT is selfinsured, CONSULTANT shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.

7.1.4. Pollution (Environmental) Liability. If the performance of work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, CONSULTANT shall procure and maintain Pollution Liability covering the liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement.

Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under combined insurance policies (including

7.1.5. Professional Liability.

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

4 Revised 1.6.2025

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

7.1.6. Sexual Abuse/Molestation Liability (SML): If the performance of work or service under this Agreement involves contact with minors, CONSULTANT shall procure and maintain Sexual Abuse and Molestation insurance in the minimum amount of: (i) two hundred thousand dollars ($200,000.00) each claim, or (ii) the maximum amount of such insurance available to CONSULTANT under combined insurance policies . 7.2. Endorsements. CONSULTANT shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:

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

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

7.2.1.2. - The insurer waives the right of
officials, boards, agencies, officers, agents, employees, and volunteers; and

7.2.1.3. Non- - Insurance shall be endorsed to be
primary and noninsurance or self-insurance and shall be at least as broad as ISO Form CG 20

01. 7.2.2. Workers Compensation.

If the performance of 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, presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

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

Best's financial st a

5 Revised 1.6.2025

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

Certificate Holder address:

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

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

9. Compliance with Law. 9.1. CONSULTANT and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. CONSULTANT and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon any basis prohibited by State or Federal law, including but not limited to, race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

9.2. Compliance with Wage and Hour Laws: Consultant, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state, and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act and the California Labor Code. refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.

Prior Judgments against CONSULTANT and/or its Subcontractors: BY SIGNING THIS

AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS DISCLOSED ANY FINAL

JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY FINDING IN THE FIVE (5) YEARS PRIOR TO EXECUTING

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

AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED

WITH OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE

6 Revised 1.6.2025

MANNER IN WHICH IT WILL SATISFY ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

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

CONSULTANT and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. The City reserves the right to require CONSULTANT to enter into an agreement with the City regarding the manner in which any such final judgment, decision, or order will be satisfied. to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, the City reserves the right to withhold payment to CONSULTANT until such judgment, decision or order has been satisfied in full.

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

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

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

11. Confidentiality. All data, documents, or other information received by CONSULTANT from CITY
confidential and shall not be disclosed to any third party by CONSULTANT without prior written consent by CITY.

12. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement 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.). CONSULTANT will further comply, and will ensure that its agents and its subcontractors of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 18438.8).

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

Address of CONSULTANT is as follows:

TDG Engineering, Inc.

Attn: Ellie Fiore
8484 Georgia Avenue, Suite 800
Silver Spring, MD 20910
Address of CITY is as follows:

Chris Ghione
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

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

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

15. Consultant's Proposal. If applicable, this Agreement shall include CONSULTANT'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

16. Maintenance of Records. 16.1. Maintenance. CONSULTANT shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. CONSULTANT shall maintain records for a period of at least 3 years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then CONSULTANT shall retain said records until such action is resolved.

16.2. Access to and Audit of Records. Following prior written notice, the CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONSULTANT and its subcontractors related to services under this Agreement.

Pursuant to Government Code Section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of the CITY or as part of any audit of the CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

16.3. Ownership of Work Product. All documents or other information developed or received by CONSULTANT for work performed under this Agreement shall be the property of CITY. CONSULTANT shall provide CITY with copies of these items upon demand or upon termination of this Agreement. Ownership shall not extend to CONSULTANT'S underlying means and methods used to create work product. Additionally, any preexisting intellectual property contained within CONSULTANT'S deliverables thereto

8 Revised 1.6.2025
belonging to CONSULTANT shall remain the property of CONSULTANT unless otherwise indicated in the scope of services. Should CITY reuse or modify CONSULTANT'S documents without prior consent, CITY shall indemnify and hold the CONSULTANT harmless from and against any claim, proceeding, cause of action, damage, cost or expense that directly results from any deviation from or changes to the

17. Familiarity with Work. By executing this Agreement, CONSULTANT represents that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement.

Should CONSULTANT discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONSULTANT'S risk, until written instructions are received from CITY.

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

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

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

21. Defense and Indemnification. 21.1. Defense and Indemnification for Design Professional Services. Consistent with California Civil Code Section 2782.8, for design professional services to be performed under this agreement by a design professional, as that term is defined under said Section 2782.8, CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employ
liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors in performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement to the extent of .

21.2. Defense and Indemnification for Non-Design Professional Services. For all services performed under this agreement not covered by Section 21.1 above, CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and lities, expenses,
liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by CONSULTANT, and/or its agents, .

9 Revised 1.6.2025

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

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

21.5. Right to Offset. CITY shall have the right to offset against any compensation due CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of failure to pay CITY promptly any indemnification arising under this Section (21) and any amount due CITY from CONSULTANT arising from failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

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

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

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

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

25. Notice of Security and/or Privacy Incident. If CONSULTANT, 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, CONSULTANT 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 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, CONSULTANT 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

10 Revised 1.6.2025
applicable state and federal agencies. CONSULTANT agrees that it shall reimburse CITY for all expenses, costs, reasonable
with such incident, breach, investigation and/or notification.

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

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

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

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 lectronic copy of a
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 Next Page]

11 Revised 1.6.2025

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: TDG Engineering, Inc.

Donald A. Larkin
City Attorney By:

Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or Vice
President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
U:\Legal Forms\Consultant Agreements\City Services Agreement For Design Professionals.Docx Roswell Eldridge, Executive Vice President
Ernie Boughman, Chief Financial Officer
01/06/25
01/07/25

12 Revised 1.6.2025

EXHIBIT A

SCOPE OF SERVICES
Scope of Work
Task 1 General Safety Needs and Requirements
This task will incorporate the analyses performed as part of the TMP and ensure that SAP addresses the federal requirements for the SS4A program and that the SAP will meet eligibility requirements for applying for implementation grant funding.

Task 1.1 Project Kickoff and Ongoing Project Management Task 1.1 will cover all project-management related tasks including the project kickoff meeting, regular coordination meetings, and monthly progress reporting.

Toole Design will participate in a kickoff meeting with the City of Morgan Hill staff after receiving a finalized contract or written notice to proceed. The kickoff meeting will focus on a discussion of project challenges and opportunities, scope and schedule, data needs, and project administration and communication protocols. After the kickoff meeting, we will revise and finalize the scope and schedule, circulate meeting notes, and prepare a data request memorandum.

Toole Design will facilitate bi-weekly, virtual project management meetings with City of Morgan Hill staff to discuss ongoing work, project milestones, upcoming deliverables, and to check in on scope, schedule, and budget. Toole Design will develop an agenda in advance of each meeting and will document meeting notes with a focus on key decisions.

Task 1.2 - Leadership Commitment and Goal Setting
Morgan Hill has a strong foundation of adopted plans and policies that support safe roadways.

At the beginning of the SAP process, the project team will work with City Council to review these policies and work collaboratively to establish a goal that includes a target year for achieving zero roadway facilities and serious injuries.

Task 1.3 - Planning Structure
The City will convene a Safety Action Plan Advisory Committee comprised of residents, interest group representatives, school community members, and other key stakeholders to meet at regular intervals and provide oversight of the SAP development. The purpose of the Safety Action Plan Advisory Committee is to build a common understanding of safety-related challenges and opportunities in Morgan Hill, generate project buy-in, get feedback on outreach and engagement efforts, present high-level findings, disseminate project information, establish general improvement priorities, and provide feedback on prioritized recommendations.

Additionally, the project team will consult periodically with city, county, and other public agency staff to review plan deliverables and advise on projects, implementation, and monitoring.

Task 1.4 - Safety Analysis
The project team will use the safety analysis, including the identified High Injury Network (HIN) for bicycle, pedestrian, and motor vehicle crashes, developed for the TMP, to inform the locations that will be evaluated further as part of the Safety Action Plan. Further data analyses may be performed to provide additional information on emerging priorities, such as the needs

13 Revised 1.6.2025
of vulnerable road users or the characteristics around school sites. Results will be compiled in a Safety Analysis Memorandum highlighting key findings from the TMP and any additional analysis.

Task 1.5 - Engagement and Collaboration
Upon project kickoff, the team will develop a brief Public Outreach and Engagement Plan memorandum that identifies key audiences and stakeholders to be involved in the development of the SAP. Outreach and engagement will focus primarily on the development of the Safe Routes to School Framework (Task 2) and the identification and development of Safe Routes to School Priority Projects (Task 3.2). The Outreach and Engagement Plan will outline the engagement tools and methods appropriate for each audience, including a project website, in-person and online surveys, walk/bike audits, pop-up events, small group/focus-group meetings, and larger-scale community activities.

The memorandum will also outline and describe the roles and responsibilities of the Safety Action Plan Advisory Committee, and appointed and elected City officials in the development, adoption, and implementation of the SAP. This scope of work includes up to four (4) virtual meetings with the Safety Action Plan Advisory Committee.

Task 1.6 - Equity Considerations
Equity will be considered throughout all stages of the project. The Safety Analysis and all outreach and engagement activities will be conducted with an equity lens to ensure the development of the SAP is inclusive and provides special consideration of underserved communities. Specifically, the project team will consider equitable access to schools and equitable distribution of bicycle and pedestrian facilities around schools in Morgan Hill. The project team will also conduct an equity analysis of draft projects and strategies to ensure funding and implementation resources are channeled to the highest-need roadways, neighborhoods, and populations.

Task 1.7 - Policy and Process Changes
The project team will conduct a thorough assessment of current policies, plans, guidelines, and standards to identify gaps and opportunities to strengthen roadway safety. This assessment will inform the development of draft SAP strategies and actions including policies, best practices, and design guidance, as well as enforcement and education programs.

Task 1.8 - Progress and Transparency
The project team will develop an excel-based tool that can easily be used by City staff and accessed by stakeholders to track and report on progress towards the SAP goal of zero fatalities and serious injuries. The tool will be designed to streamline annual reporting so that Task 1 Deliverables:

Project kickoff with City of Morgan Hill staff, including agenda and summary Finalized scope of work, schedule, and fee
Bi-weekly, online, project management meetings
Monthly progress reports, and invoices
Data request memorandum (if needed)
Draft and final Public Outreach Engagement Plan
Draft and final publicity materials (fact sheet, event flyers, website content) Outreach and engagement events, to be quantified in the Engagement Plan Draft and final Safety Analysis memorandum

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Up to four (4) online 1.5-hour Safety Action Plan Advisory Committee meetings, including agendas and summaries
Support for up two (2) in-person City Council presentations Excel-based progress tracking and reporting tool
Task 1 Assumptions:

Task 1.3 Planning Structure: Morgan Hill City staff will determine Safety Action Plan Advisory Committee Members and will ensure an equitable and diverse group of representatives. City staff will work with the project team to determine the best dates/times/locations to hold Advisory Committee meetings throughout the project duration.

Task 1.4 Safety Analysis: Toole Design will use work completed from the TMP to inform this task. The project team will work with City staff to determine if additional analysis is needed.

Task 1.5 Engagement and Collaboration: The Public Outreach and Engagement Plan will quantify the number of outreach and engagement events the project team will host and attend and will specify which events will be held in person or virtually. Toole Design will print necessary engagement and outreach materials and will bring materials to in person events.

Task 2 Safe Routes to Schools Framework
Task 2.1 Needs Assessment
Building on the work completed in the TMP, the project team will conduct a Safe Routes to Schools (SRTS) Needs Assessment. The Needs Assessment will be informed by feedback and data gathered during community outreach and engagement, and data analyses conducted for the TMP. The needs assessment will identify barriers and safety issues in Morgan Hill that discourage students from walking, biking, or rolling to schools, develop a list of projects that will improve safety around Morgan Hill schools, and recommend policies and programs to encourage students to safely walk, bike, and roll to school.

Task 2.2 Safe Routes to Schools and Traffic Calming Toolkit A Safe Routes to Schools and Traffic Calming Toolkit will be developed using results from Task 2.1 and will build on the Improvements Toolbox included in the TMP. This toolkit will include policies, programs, and design techniques to improve safety around schools and calm traffic in Morgan Hill.

Task 2 Deliverables:

Draft and Final Needs Assessment Memorandum, including a preliminary list of recommended projects and SRTS programs and policies
Draft and Final Safe Routes to Schools and Traffic Calming Toolkit Task 2 Assumptions:

The Safe Routes to Schools and Traffic Calming Toolkit will be included in the Final Plan but can act as a standalone document for City use.

Task 3 Project Recommendations
Task 3.1 High Injury Network Priority Projects
Building on the tasks above and the work conducted and the recommended projects in the TMP, the project team will further refine a set of grant-ready High Injury Network-related

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project recommendations, including design concepts and cost estimates, which address the specific safety needs of the City of Morgan Hill. The project list will reflect the Safe System Approach and include actions related to behavior change, operations, and infrastructure. The refined project recommendations will identify time frames, lead organizations, partnerships, and potential resources for implementation.

Task 3.2 Safe Routes to School Priority Projects
Building on the tasks above and the work conducted and the recommended projects in the TMP, the project team will develop a comprehensive set of grant-ready Safe Routes to Schools-related project recommendations that address the specific school-related safety needs of the City of Morgan Hill. The project list will reflect the Safe System Approach and include actions related to behavior change, traffic operations, and physical infrastructure.

Priority school locations and projects will be based on the prioritization criteria contained in the TMP, and will reflect community priorities, equity considerations, areas of high need identified in previous tasks, and input received during the community engagement and outreach tasks. Prioritized projects and strategies will identify time frames, lead organizations, partnership needs and opportunities, and potential resources for implementation.

Task 3 Deliverables:

Draft and Final High Injury Network Priority Projects Identification and Prioritization Memorandum (including list of prioritized safety projects, programs, and policies) Draft and Final Safe Routes to School Priority Projects Identification and Prioritization Memorandum (including list of prioritized safety projects, programs, and policies) Task 4 Plan Development
Task 4.1 Draft Plan
The project team will consolidate the findings and recommendations from all prior tasks into a Draft Plan. City staff and the Safety Action Plan Advisory Committee will review the document with a focus on structure, order, content, and text edits. City staff will provide the project team with comments, which will be integrated into the final plan.

Task 4.2 Final Plan
A Final Plan will be developed in InDesign with compelling graphic design, layouts, photography, and infographics. The Final Plan will include all findings and recommendations from prior tasks and will integrate City staff and Advisory Committee comments and feedback.

Task 4 Deliverables:

Draft Safety Action Plan (Word Document)
Final Safety Action Plan (InDesign/PDF Document)
Task 4 Assumptions:

This scope of work assumes the City of Morgan Hill will shepherd the Final Plan through the elected official adoption process.

16 Revised 1.6.2025

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
Task 1: General Safety Needs and Requirements $70,000.00 Task 2: Safe Routes to Schools Framework $50,000.00
Task 3: Project Recommendations $50,000.00
Task 4: Plan Development $40,000.00
Tasks Labor Total
Direct Expenses
TOTAL
$210,000.00
$10,250
$220,250.00

17 Revised 1.6.2025

EXHIBIT C

SCHEDULE OF PERFORMANCE
Task 1: General Safety Needs and Requirements January-September 2025 Task 2: Safe Routes to Schools Framework March-June 2025 Task 3: Project Recommendations May-July 2025
Task 4: Plan Development July-September 2025

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL APPROVING AN AMENDMENT TO THE
CITY’S FISCAL YEAR 2024-25 BUDGET ACCEPTING
GRANT PAYMENT OF $200,500 FROM THE FEDERAL SAFE

STREETS AND ROADS FOR ALL PROGRAM AND
APPROPRIATING $220,250 FOR CONTRACT SERVICES
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 “Authorize the City Manager to Enter Into a Contract with Toole Design” submitted for City Council consideration at its meeting of January 15, 2025, 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 direct as follows:

a. 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
b. That the City Clerk is hereby authorized and directed to forward a copy of this Resolution to the City’s Finance Director, who is hereby authorized and directed to take all actions necessary to implement the terms of this Resolution pertaining to the Fiscal Year 24-25 Budget of the City; and c. 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 15th day of January 2025 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.XXXX , adopted by the City Council at the meeting held on January 15, 2025.

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

DATE:

Michelle Bigelow, CITY CLERK

EXHIBIT A

AGENDA BUDGET SCORECARD
FISCAL YEAR 2024-2025
ADJUSTMENT # 004
FUND: 309 Traffic Impact Fund
DEPARTMENT: 40 Public Services
40 Public Services
8053 Traffic Impact
OBJECT: 42231 CONTRACT SERVICES
AGENDA DATE: 01/15/25
AGENDA ITEM TITLE:
07/01/24 06/30/25

AUDITED PROJECTED

BEGINNING AMENDED ENDING

FUND ESTIMATED APPROPRI- FUND

BALANCE REVENUES ATIONS BALANCE
ORIGINAL BUDGET 3,808,198 4,753,292 4,593,527 3,967,963

CUMULATIVE REVISIONS PRIOR - - - -

TO RECOMMENDED ACTION
RECOMMENDED ACTION 200,500 220,250 (19,750)
RESULT OF RECOMMENDED ACTION 3,808,198 4,953,792 4,813,777 3,948,213 Toole Design

3 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager

RATIFY THE CITY MANAGER'S EXECUTION OF THE FIRST

AMENDMENT TO AGREEMENT WITH MONTEREY BAY OFFICE
PRODUCTS, INC. FOR THE PURCHASE AND MAINTENANCE OF THE

CITY'S MULTI-FUNCTION PRINTERS

RECOMMENDATION(S)
Ratify the City Manager's execution of the first amendment to the agreement with Monterey Bay Office Products, Inc. for the purchase of the City's multi-function printers.

COUNCIL PRIORITIES, GOALS & STRATEGIES
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

On April 19, 2023, the City Council approved an agreement with the Monterey Bay Office Products, Inc. for the purchase of the City's multi-function printers in the amount of $212,006. The original agreement did not include the replacement of the Finance Department's multi-function printer.

Since then, the Finance Department's printer has broken twice, requiring third-party service. Staff analyzed the cost of repairs and concluded that it is more economical to purchase a replacement and maintenance services from the City’s other multi-function printer provider, Monterey Bay Office Products, Inc. Due to the urgent need for a multifunction printer by the Finance staff, the first amendment to the agreement was finalized on December 16, 2024. The inclusion of the Finance Department's multi-function printer and its 4-year maintenance increased the maximum amount of the agreement by $11,033, bringing the total to $223,039. Staff recommends that the City Council ratify the City Manager's execution of the first amendment to the agreement with Monterey Bay Office Products, Inc. for the purchase of the City’s multi-function printers.

COMMUNITY ENGAGEMENT:

Inform
This staff report serves to inform the community of the first amendment to the

3 agreement with the Monterey Bay Office Products, Inc. for the purchase of the City's multi-function printers.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On April 19, 2023, the City Council approved the agreement with the Monterey Bay Office Products, Inc. for the purchase of the City's multi-function printers in the amount of $212,006.

FISCAL AND RESOURCE IMPACT:

Funding to procure the printer and maintenance services is available in the FY24-25 Adopted Budget.

CEQA (California Environmental Quality Act):

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

1 FIRST AMENDMENT TO AGREEMENT
MONTEREY BAY OFFICE PRODUCTS, INC.

This FIRST AMENDMENT TO AGREEMENT is entered into and becomes effective on ______________________ (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and MONTEREY BAY OFFICE PRODUCTS, INC., a California Corporation ("SERVICE PROVIDER"), hereinafter referred to collectively as the “Parties".

RECITALS
The following recitals are a substantive part of this Agreement:

1. This First Amendment to Agreement is entered into based upon the authority of the City Manager pursuant to Chapter 3.04 of the Morgan Hill Municipal Code.

2. The CITY and SERVICE PROVIDER entered into that “Service Agreement” made as of May 2, 2023, for services for a maximum compensation of Two Hundred Twelve Thousand Five Dollars and Seventy-Three Cents ($212,005.73) (“SERVICE AGREEMENT”). The SERVICE AGREEMENT is attached as Exhibit “1” to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Amendments: All terms and conditions of the SERVICE AGREEMENT, as attached as Exhibit "1,” shall remain in full force and effect; except that the following amendments shall be made as set forth below:

A. Paragraph 3 shall be amended and replaced in its entirety by the following:
“3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be the removal and disposal of designated multi-functional printers (MFPs), purchase of 14 new replacement multi-functional printers (MFPs) for City facilities, maintenance and repair services and all supplies except for paper, as further described in Exhibit A and Exhibit A-1: Part 2, that is herein incorporated by this reference.”
B. Paragraph 4.1 shall be amended and replaced in its entirety by the following:
"4.1. Amount. Compensation under this Agreement shall not exceed TWO HUNDRED

TWENTY-THREE THOUSAND THIRTY-NINE DOLLARS AND ELEVEN CENTS ($223,039.11) and shall be billed based on the rate and basis set forth in Exhibit A-1 Part 2, and Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to CONSULTANT, 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.” Docusign Envelope ID: 50138058-8BDD-4E9A-9794-27AE1556D2C3 12/13/2024

2 C. Paragraph 13 shall be amended and replaced in its entirety by the following:
“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).” D. Exhibit A is amended to include one (1) additional Konica Minolta Bizhub C3321i Color A4 Printer/Copier/Scanner.

E. Exhibit B is amended to reflect the incorporation of Exhibit A-1 Part 2, the purchases of 14 MFPs, and the new cost of the Agreement of $223,039.11.

2. Notice Of Security and/or Privacy Incident. If SERVICE PROVIDER, or its subcontractor, suspect, discover or are notified of a data security incident or potential breach of security and/or privacy relating to CITY PII, PHI and/or PCI, SERVICE PROVIDER shall immediately, but in no event later than fortyeight (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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///
///
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[Signatures on the Next Page]
Docusign Envelope ID: 50138058-8BDD-4E9A-9794-27AE1556D2C3

3 3. 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.

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

5. Conflicts. In the event of a conflict between the terms and provisions of this First Amendment to Agreement and the terms and provisions of the SERVICE AGREEMENT, the terms of this First Amendment to Agreement shall govern and control.

TWO SIGNATURES ARE REQUIRED FOR 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
Michelle Bigelow, City Clerk Christina Turner, City Manager Date: Date:

APPROVED AS TO FORM: MONTEREY BAY OFFICE PRODUCTS, INC.

Donald Larkin, City Attorney
By:

Date: Title:

Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
By:

Title:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
Date:

By: DAVID PARARA, COO

11.22.2024
Kellie Murphy, President/CEO
11/22/24
Docusign Envelope ID: 50138058-8BDD-4E9A-9794-27AE1556D2C3 12/2/2024
12/16/2024 12/13/2024

# Site Address City Staff Selected Device Purchase Price w/ 9.125 % Sales Tax Estimated Annual Maintenance Notes 1 Centennial Recreation Center 171 Edmundson Ave., MH C650i 9,346.56 3,313.30 Add ons: 3-hole punch 2 Community & Cultural Center 17000 Monterey Rd., MH C450i 7,072.39 497.17 Add ons: 3-hole punch3 Aquatics Center 16200 Condit Rd, MH C450i 7,072.39 455.60 Add ons: 3-hole punch 4 City Hall - Workroom #1 17575 Peak Ave., MH C650i 9,902.00 684.03 Add ons: 3-hole, staple, tri-fold, envelope & postcards, brochures 5 City Hall -Workroom #2 17575 Peak Ave., MH C450i 7,598.37 1,913.33 Add ons: 3-hole, staple and tri-fold 6 City Hall Northeast - by Building Dept.- in hallway 17575 Peak Ave., MH C450i 7,598.37 1,913.33 Add ons: 3-hole, staple and tri-fold 7 Council Chamber Bldg. - Copy Room - East Side 17575 Peak Ave., MH C450i 7,598.37 1,913.33 Add ons: 3-hole, staple 8 Police -Admin 16200 Vineyard Blvd., MH C650i 10,427.99 1,529.67 Add ons: Fax, Staple, Email, envelope tray, USB port, Collate, Hole punch 9 Police Records 16200 Vineyard Blvd., MH C650i 10,427.99 1,538.49 Add ons: Fax, Staple, Email, envelope tray, USB port, Collate, Hole punch 10 Police - Patrol Briefing Room 16200 Vineyard Blvd., MH C450i 7,598.37 1,279.71 Add ons: Staple, Email, envelope tray, USB port, Collate, Hole punch 11 Police - Spec Ops/IT Space 16200 Vineyard Blvd., MH C450i 8,124.36 1,279.71 Add ons: Fax, Staple, Email, envelope tray, USB port, Collate, Hole punch 12 Police- Dispatch 16200 Vineyard Blvd., MH C3350i 1,980.62 2,000.04 Copy/Scan/Print/Fax Standard 13 Corporation Yard 100 Edes Ct., MH C450i 7,072.39 844.99 Add-ons: 3-hole punch Purchase Price $ 19,162.71 101,820.17 $ Annual Maintenance Cost $ 22,037.11 Annual Maintenance + 15% contingency
$ 110,185.56 5-Year Maintenance$ 212,005.73 SUBTOTAL (Purchase + 5 Yr. Maintenance) 14 Council Chambers - Finance 17575 Peak Avenue Bizhub C3321i 1,833.38 2,000.00 Purchase Price $ 1,833.38 $ Annual Maintenance + 15% contingency 2,300.00 $ 9,200.00 4-Year Maintenance
$ 11,033.38 SUBTOTAL (Purchase + 4 Yr. Maintenance)
Grand Total
$ Purchase Price 103,653.55
$ Annual Maintenance 24,337.11
$ 5-Year Maintenance 119,385.56$ 223,039.11 TOTAL (Purchase + 5 Yr. Maintenance) Monterey Bay Office Products, Inc. Service Agreement
Exhibit A-1: Part 2 Scope of Services & Pricing
City of Morgan Hill - Purchase of Multi-Function Devices for City Facilities & 5-Year Maintenance Service (May 2023) Purchase of Multi-Function Devices for Finance Dept & 4-Year Maintenance Service (Oct 2024) Docusign Envelope ID: 50138058-8BDD-4E9A-9794-27AE1556D2C3

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Docusign Envelope ID: 50138058-8BDD-4E9A-9794-27AE1556D2C3

4 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND NOVEMBER 2024

FINANCIAL AND INVESTMENT REPORTS

RECOMMENDATION(S)
Recieve and file report.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
REPORT NARRATIVE:

As part of the City Council’s expectation to maintain a high level of transparency and to be responsible stewards of public funds, staff is providing this monthly budget update, along with the November 2024 financial and investment reports.

November 2024 Financial Report
The Revenue and Expense Summary through November 2024 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $14.1 million or about 25% of the budget. Expenditures, including encumbrances, amounted to $27.7 million, of which approximately $4.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $26.0 million. This represents an increase of $1.7 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.4 million mainly due to overall cost increases.

Budget Update
There has been no material change since the last budget update to the Council on December 4, 2024. Regarding water revenue, Morgan Hill residents consumed approximately 9% more water through November compared to the prior three-year average. As a result, no revenue stabilization water rate was implemented.

COMMUNITY ENGAGEMENT:

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

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

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

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

FISCAL AND RESOURCE IMPACT:

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

CEQA (California Environmental Quality Act):

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

FINANCE DEPARTMENT

CITY OF MORGAN HILL
November 30, 2024 - 42% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2024-25
FOR THE MONTH ENDED NOVEMBER 2024 – 42% OF YEAR COMPLETE  General Fund – Revenues through November totaled $14.1 million, or about 25% of the budgeted amount as some of the major revenue categories such as property tax are received later in the fiscal year. With respect to the property tax revenue forecast, the County estimates the City will receive approximately $19.9 million in property tax revenue for the current fiscal year, slightly more than the budget of $19.4 million. However, adjusting for the excess ERAF set aside of 20% or $0.5 million, the revised property tax revenue matches the budget. As for sales tax, HdL, the City's sales tax consultant, further revised downward the City's current fiscal year sales tax revenue estimate (before tax rebates) to $12.2 million, a reduction of approximately $0.7 million from the current year's budget, partially attributable to lower tax receipts from vehicle sales.

The chart below shows historical General Fund revenues by major revenue category from FY20-21 through FY23-24 Actual, FY24-25 Budget, and YTD as of November 30, 2024.

General Fund expenditures and encumbrances through November totaled $27.7 million, of which approximately $4.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $26.0 million. This represents an increase of $1.7 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.4 million mainly due to overall cost increases.  Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of approximately $1.6 million as of November 30, 2024. Recreation Services revenues continue to recover from the pandemic and are on target with budget. $16.0 $16.7 $18.1 $19.1 $19.4
$11.0 $12.9 $12.7 $12.2 $12.8
$4.4
$5.9 $5.7 $6.0 $5.9 $5.6
$6.9 $8.1 $9.2 $10.3 $9.8
$9.7 $7.8
$9.4 $8.1 $46.8
$52.1 $52.4
$56.0 $56.5
$14.1
0 10
20 30
40 50
60 FY20-21 FY21-22 FY22-23 FY23-24 Budget
FY24-25
YTD
FY24-25
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2024-25
FOR THE MONTH ENDED NOVEMBER 2024 – 42% OF YEAR COMPLETE The chart below shows the historical net impact of Recreation Operations to the general fund.

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

The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
 Development Services Fund – Revenues through November totaled $2.6 million compared to the prior year to date amount of approximately $1.8 million. Expenditures, including encumbrances, totaled $2.9 million.
 Debt Service Funds – Expenditures through November totaled $0.6 million. The debt service for the first half of the year includes both interest and principal, while the second half of the year will include interest only. Debt service payments were all scheduled when the bonds were issued and are budgeted for in the months delineated in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues.
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Budget
Millions (S)
Historical Net GF Impact

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2024-25
FOR THE MONTH ENDED NOVEMBER 2024 – 42% OF YEAR COMPLETE • Wastewater Operations – Revenues through November 30, 2024 totaled $5.5 million. Expenditures and outstanding encumbrances totaled $6.9 million or 41% of the budget. The table below shows historical Wastewater Operations revenues and expenditures from FY20-21 through FY23-24 Actual, FY24-25 Budget, and YTD as of November 30, 2024.
(amount in millions) FY20‐21 FY21‐22 FY22‐23 FY23‐24
Budget
FY24‐25
YTD
FY24‐25
Revenues              13.3       14.9              15.3     15.2           16.6 5.5 Expenditures              13.3       14.8              16.0     14.9           16.8 6.9 Operating Margin    ‐         0.1               (0.7)       0.3            (0.2)                (1.4) Operating Margin
without Encumbrances    ‐         0.1               (0.7)       0.3            (0.2)                (1.4)  Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through November 30, 2024 totaled $8.4 million. Water Operations expenditures, including outstanding encumbrances, totaled $8.6 million. Morgan Hill residents consumed about 9% more water through November compared to the prior three-year average. As such, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY20-21 through FY23-24 Actual, FY24-25 Budget, and YTD as of November 30, 2024.
(amount in millions) FY20‐21 FY21‐22 FY22‐23 FY23‐24
Budget
FY24‐25
YTD
FY24‐25
Revenues 16.5            16.0            18.1      18.7               21.5                8.4 Expenditures         16.5   15.2            18.0      19.1               21.6                8.6 Operating Margin           ‐     0.8              0.1       (0.4)   (0.1)              (0.2) Operating Margin
without Encumbrances           ‐     0.8              0.1       (0.4)   (0.1)                0.4  Investments – Four securities were called, and six new securities were purchased. Total interest earnings received on investments were $458,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 14,078,826 $ 25% $ 27,702,141 43%
Development Services 2,590,845 43% 2,860,080 45%
Wastewater Operations 5,532,090 33% 6,905,084 41%
Wastewater Other 11,320,029 63% 8,910,671 47%
Water Operations 8,354,951 39% 8,597,383 40%
Water Other 5,796,795 40% 12,890,804 53%
Other Special Revenues * 2,104,871 24% 5,789,185 48%
Capital Projects & Streets 15,901,572 49% 30,839,235 61% Debt Service 287,167 42% 570,039 84%
Internal Service 5,626,868 39% 7,113,130 50%
TOTAL FOR ALL FUNDS 71,594,015 $ 38% $ 112,177,751 49%
* Includes all Special Revenue Funds except Development Services Fund and Street Funds.

REVENUES EXPENSES
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
General
Development
Services
Wastewater
Operations
Wastewater Other
Water Operations
Water Other
Other Special
Revenues *
Capital Projects
& Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
November 30, 2024 - 42% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
42%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 19,411,020 $ 1,852,630 $ 10% 1,661,403 $ 12% Sales Tax 12,816,469 2,972,531 23% 3,385,660 -12%
Franchise Tax 3,185,872 637,852 20% 687,037 -7%
Hotel Tax 2,678,000 932,878 35% 960,062 -3%
Other Agencies 1,601,204 481,577 30% 336,938 43%
Service Charges 10,323,751 4,396,996 43% 4,278,786 3%
Interest/Other 3,107,665 1,451,513 47% 1,041,510 39%
Transfers In 3,365,760 1,352,849 40% 1,208,173 12%
TOTAL REVENUES 56,489,742 $ 14,078,826 $ 25% 13,559,570 $ 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
November 30, 2024 - 42% of Year Complete
42%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 7,351,159 $ 2,913,035 40% 2,767,408 $ 5% Community Services 19,922,029 8,896,294 45% 8,058,855 10% Police 25,598,203 10,871,003 42% 9,249,131 18%
Fire 10,381,160 4,414,214 43% 4,023,577 10%
Transfers Out 1,458,230 607,596 42% 1,943,236 -69%
TOTAL EXPENDITURES $ 64,710,781 $ 27,702,141 43% 26,042,206 $ 6% 0% 10% 20% 30% 40% 50%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
November 30, 2024 - 42% of Year Complete
42%

City of Morgan Hill
Recreation Report - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete
% of
Budget November 2024 YTD Budget
Revenues
Membership Services & Rec Programs 6,222,399 $ 465,868 $ 2,683,783 $ Facility Rentals 1,197,395 102,183 620,775
Community Services 147,498 6,594 34,422
Transfers in 100,000 6,250 41,667
Total Revenues 7,667,292 $ 580,895 $ 3,380,647 $ 44%
Less: Expenditures
Membership & Program Services 8,040,818 $ 614,621 $ 2,999,552 $ Facility Rentals 633,051 63,225 236,746
Community Services 761,973 66,125 241,019
Total Expenditures 9,435,843 $ 743,970 $ 3,477,317 $ 37% Net Impact without encumbrances (1,768,551) $ (163,075) $ (96,671) $ Encumbrances - - 1,550,298
Net Impact with encumbrances (1,768,551) $ (163,075) $ (1,646,969) $

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

City of Morgan Hill
Monthly Investment Report ‐ November 30, 2024
The following are the snapshots of City's investment portfolio as of November 30, 2024. The first chart shows the portfolio composition by investment type:

LAIF ‐ $0.1M
<1% CA Class ‐ $27.7M
14%
Treasury  ‐
$11.7M
6%
Money
Market ‐
$7.7M
4%
Federal Agency Issues
‐ $142.7M
71%
Certificate of Deposits ‐
$1.0M
<1%
Bond Reserves/Trust ‐
$9.0M
4%
Cash & Other Deposits ‐ ($1.3M)
‐1%
Investment Portfolio Composition ‐ $198.6 Million
LAIF ‐ $0.1M
CA Class ‐ $27.7M
Treasury  ‐ $11.7M
Money Market ‐ $7.7M
Federal Agency Issues ‐
$142.7M
Certificate of Deposits ‐
$1.0M
Bond Reserves/Trust ‐
$9.0M
Cash & Other Deposits ‐
($1.3M)
General Fund, $26.1M Development Services,
$2.0M
Water ‐ Operations,
$2.8M
Water Other, $32.3M
Sewer ‐ Operations,
$1.1M
Sewer Other, $47.6M
Other Special
Revenue, $18.1M
Streets and Capital
Projects, $40.9M
Debt Service , $0.6M
Internal Service,
$26.3M
Agency Funds (assessment
dists./refundable deposits),
$0.8M
Cash Balances by Fund Type ‐ $198.6 Million

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

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

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Jul‐24
Aug‐24
Sep‐24
Oct‐24
Nov‐24
Yield Portfolio vs. Benchmarks
LAIF YIELD 2 Yr US‐Treasury

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%
0 100
200
300
400
500
600
700
800
900
1000
Nov‐22
Dec‐22
Jan‐23
Feb‐23
Mar‐23
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Jul‐24
Aug‐24
Sep‐24
Oct‐24
Nov‐24
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity YIELD
CITY

City of Morgan Hill
Investment Portfolio Detail
As of November 30, 2024
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $              61,817 $              61,817 0.0% $              61,944 4.48% California C L A S S          27,685,515          27,685,515 13.9% 27,685,515          4.83% WFB Money Market            5,582,029            5,582,029 2.8% 5,582,029 4.64% US Bank ‐ Portfolio of Securities
Dreyfus Treasury Agency MM 261908107            2,175,397            2,175,397 1.1%           2,175,397 4.51% Treasury Note 91282CCZ2 10/8/2021 1,987,656                        1,995,458 1.0%           1,883,440 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688                        1,957,829 1.0%           1,918,680 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719                        2,030,659 1.0%           1,979,920 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323                        1,991,822 1.0%           1,961,260 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536                        1,827,596 0.9%           1,793,600 3.61% 8/31/2028 8/31/2028 Treasury Note 31282CFJ5 10/7/2024 1,949,794                        1,945,115 1.0%           1,915,700 3.76% 8/31/2029 8/31/2029 FFCB Bond 3133ELC28 5/27/2020 2,000,000                        2,000,000 1.0%           1,964,620 0.73% 12/5/2024 5/27/2025 FHLMC Bond 3134GVYN2 6/3/2020 2,000,000                        2,000,000 1.0%           1,999,780 0.60% 12/3/2024 12/3/2024 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000                        2,000,000 1.0%           1,935,600 0.60% 1/20/2025 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000                        2,000,000 1.0%           1,934,120 0.63% 1/27/2025 10/27/2025 FFCB Bond 3133EMFR8 11/3/2020 2,000,000                        2,000,000 1.0%           1,928,680 0.54% 12/5/2024 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000                        2,000,000 1.0%           1,931,620 0.65% 11/18/2025 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000                        2,000,000 1.0%           1,928,080 0.64% 2/24/2025 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000                        1,000,000 0.5%               962,610 0.60% 12/5/2024 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000                        3,000,000 1.5%           2,892,780 0.63% 11/25/2025 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000                        2,000,000 1.0%           1,929,500 0.65% 2/26/2025 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000                        2,000,000 1.0%           1,920,600 0.47% 12/5/2024 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000                        2,000,000 1.0%           1,917,100 0.63% 2/22/2025 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000                        2,000,000 1.0%           1,915,880 0.55% 2/28/2025 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000                        2,000,000 1.0%           1,916,500 0.65% 2/28/2025 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000                        2,000,000 1.0%           1,914,540 0.75% 2/24/2025 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000                        2,000,000 1.0%           1,911,260 0.66% 2/25/2025 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000                        2,000,000 1.0%           1,911,420 0.65% 2/26/2025 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000                        2,000,000 1.0%           1,913,000 0.85% 12/10/2024 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000                        2,000,000 1.0%           1,908,200 0.70% 12/16/2024 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000                        2,000,000 1.0%           1,910,680 0.80% 12/16/2024 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021 2,000,000                        2,000,000 1.0%           1,903,440 1.08% 12/5/2024 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000                        2,000,000 1.0%           1,897,420 1.00% 12/30/2024 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000                        3,000,000 1.5%           2,847,630 1.13% 1/15/2025 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000                        2,000,000 1.0%           1,956,040 0.85% 1/15/2025 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000                        2,000,000 1.0%           1,884,060 0.80% 8/26/2025 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000                        3,000,000 1.5%           2,836,050 1.00% 2/26/2025 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000                        2,000,000 1.0%           1,887,380 0.90% 8/26/2025 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340                        2,036,841 1.0%           1,919,180 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960                        1,993,880 1.0%           1,883,260 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000                        3,000,000 1.5%           2,833,710 1.13% 12/5/2024 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000                        2,000,000 1.0%           1,882,020 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000                        3,000,000 1.5%           2,829,420 1.05% 12/30/2024 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000                        3,000,000 1.5%           2,827,860 1.02% 12/30/2024 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000                        2,000,000 1.0%           1,881,380 1.00% 1/19/2025 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000                        2,000,000 1.0%           1,886,820 1.30% 11/18/2025 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000                        2,000,000 1.0%           1,918,120 1.74% 1/19/2027 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000                        2,000,000 1.0%           1,965,860 1.51% 7/25/2025 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000                        2,000,000 1.0%           1,995,860 3.48% 12/10/2024 3/10/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000                        2,000,000 1.0%           1,980,920 3.28% 12/15/2025 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000                        2,000,000 1.0%           1,994,060 4.30% 1/28/2025 7/28/2027 FHLMCTN Bond 3134H1QG1 1/26/2024 3,000,000                        3,000,000 1.5%           3,002,520 4.66% 1/26/2025 1/26/2029 FHLMCTN Bond 3134H1UN1 2/26/2024 1,200,000                        1,200,000 0.6%           1,198,944 5.50% 2/26/2025 2/26/2029 FHLMCTN Bond 3134H1UN1 2/26/2024 2,000,000                        2,000,000 1.0%           1,998,240 5.50% 2/26/2025 2/26/2029 FHLB Bond 3130B22Z7 8/1/2024 2,000,000                        2,000,000 1.0%           1,999,820 5.55% 1/3/2025 7/30/2029 FHLB Bond 3130B2EG6 8/21/2024 2,000,000                        2,000,000 1.0%           2,000,520 5.20% 2/21/2025 8/21/2029 FHLB Bond 3130B2M85 9/6/2024 2,000,000                        2,000,000 1.0%           2,000,280 5.20% 12/6/2024 9/6/2029 FHLB Bond 3130B2KZ7 9/11/2024 2,000,000                        2,000,000 1.0%           2,000,040 5.00% 3/11/2025 9/11/2029

Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLMCMTN Bond 3134HAKY8 9/13/2024 2,985,210                        2,985,843 1.5% 2,941,710            4.11% 12/13/2024 9/13/2029 FHLB Bond 3130B2MK8 9/19/2024 2,000,000                        2,000,000 1.0%           1,999,760 5.00% 3/19/2025 9/19/2028 FHLMCMTN Bond 3134HALK7 9/19/2024 3,000,000                        3,000,000 1.5%           2,995,950 5.00% 12/19/2024 9/19/2029 FHLB Bond 3130B2P58 9/26/2024 2,003,014                        2,000,000 1.0%           1,975,440 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B2X59 9/27/2024 2,000,000                        2,000,000 1.0%           1,981,120 4.00% 9/18/2025 9/18/2028 FHLMCMTN Bond 3134HANZ2 10/1/2024 3,000,000                        3,000,000 1.5%           2,999,820 5.00% 12/1/2024 10/1/2029 FHLB Bond 3130B33T8 10/8/2024 2,500,000                        2,500,000 1.3%           2,499,350 5.00% 1/2/2025 10/2/2029 FHLB Bond 3130B35N9 10/8/2024 2,000,000                        2,000,000 1.0%           1,988,260 4.50% 10/1/2025 10/1/2029 FHLMCMTN Bond 3134HARE5 10/11/2024 2,000,000                        2,000,000 1.0%           1,999,960 4.75% 4/11/2025 10/11/2029 FNMA Bond 3135GAW98 10/15/2024 2,000,000                        2,000,000 1.0%           1,996,720 5.00% 4/1/2025 10/1/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000                        1,994,150 1.0%           1,976,620 4.32% 4/15/2026 10/15/2029 FHLB Bond 3130B3ER0 10/24/2024 2,000,000                        2,000,000 1.0%           2,000,000 5.00% 1/22/2025 10/22/2027 FHLMCMTN Bond 3134HAVE0 10/30/2024 2,000,000                        2,000,000 1.0%           1,996,840 5.25% 1/30/2025 10/30/2029 FHLMCMTN Bond 3134HAVX8 11/5/2024 2,000,000                        2,000,000 1.0%           1,993,760 5.25% 2/5/2025 11/5/2029 FHLMCMTN Bond 3134HAXT5 11/12/2024 2,000,000                        2,000,000 1.0%           2,000,860 5.00% 5/7/2025 11/7/2029 FHLMCMTN Bond 3134HAZW6 11/15/2024 2,000,281                        2,000,000 1.0%           1,998,480 5.43% 2/14/2025 11/14/2029 FHLMC Bond 3134HAD42 11/18/2024 2,000,000                        2,000,000 1.0%           2,000,080 5.03% 2/18/2025 11/18/2029 FHLMCMTN Bond 3134HAC92 11/19/2024 3,000,000                        3,000,000 1.5%           3,006,510 5.00% 5/19/2025 11/19/2029 FNMA Bond 3135GAYV7 11/26/2024 3,000,000                        3,000,000 1.5%           3,000,750 5.25% 2/26/2025 11/26/2029 CD ‐ Morgan Stanley Bank 61690DGT9 11/8/2023 250,000                                250,000 0.1%               258,963 5.05% 11/8/2028 11/8/2028 CD ‐ Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000                                250,000 0.1%               258,963 5.05% 11/8/2028 11/8/2028 CD ‐ American Express 02589AF98 11/8/2023 250,000                                250,000 0.1%               258,513 5.00% 11/8/2028 11/8/2028 CD ‐ State Bank India 8562834U7 11/24/2023 250,000                                250,000 0.1%               261,465 5.00% 11/24/2028 11/24/2028 Sub Total/Average $    157,584,918 $    157,634,589 79.4% 153,775,313 $    2.69% Total City Managed/Average $    190,914,278 $    190,963,949 96.1% 187,104,801 $    3.06% Bond Reserve Accounts ‐ Held By Trustees $         1,130,294 $         1,130,294 0.6% $        1,130,294 Cash/Deposits $       (1,338,183) $       (1,338,183) ‐0.7% $      (1,338,183) PARS and CALPERS CERBT Trust $         7,887,404 $         7,887,404 4.0% $        9,769,330 GRAND TOTAL/AVERAGE $    198,593,793 $    198,643,464 100.0% 196,666,242 $

Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 4.48% $ 61,817 0.0% $ 61,944 California CLASS All Funds Pooled 4.83% 27,685,515 13.9% 27,685,515 US Bank - Portfolio of Securities All Funds Pooled 2.69% 157,634,589 79.4% 153,775,313 WFB MMA All Funds Pooled 4.64% 5,582,029 2.8% 5,582,029 SUBTOTAL $ 190,963,949 96.1% 187,104,801 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 4.93% 249,367 0.1% 249,367 Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 4.93% 317,377 0.2% 317,377 BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 4.23% 295,782 0.1% 295,782 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 4.93% 0.1% 267,769 267,769 SUBTOTAL 1,130,294 0.6% 1,130,294
Other Cash/Deposits
General Checking All Funds (1,384,033) -0.7% (1,384,033) Workers' Comp Administrators Workers' Comp 30,000 0.0% 30,000 Petty Cash & Emergency Cash General Fund 15,850 0.0% 15,850 CALPERS CERBT - OPEB Trust 5,237,404 2.6% 6,534,919
PARS - PENSION Trust 2,650,000 1.3% 3,234,412
SUBTOTAL 6,549,221 3.3% 8,431,147
Total Cash and Investments $ 198,643,464 100.0% $ 196,666,242

CASH ACTIVITY SUMMARY
FY 2024-25
07/01/2024 Change in 11/30/2024
Fund Type Balance Cash Balance Balance
General Fund $ 30,617,860 $ (4,517,814) $ 26,100,046
Development Services 1,939,319 94,787 2,034,106
Water - Operations 2,386,837 408,079 2,794,917
Water Other 27,894,107 4,359,823 32,253,930
Sewer - Operations 1,178,576 (81,737) 1,096,840
Sewer Other 41,964,736 5,618,198 47,582,934
Other Special Revenue 17,038,062 1,070,931 18,108,993
Streets and Capital Projects 39,467,115 1,458,760 40,925,875 Debt Service 346,933 282,679 629,612
Internal Service 27,935,786 (1,622,988) 26,312,798
Agency Funds (assessment dists./refundable deposits) 7,240,095 (6,436,681) 803,414 Total $ 198,009,426 $ 634,038 $ 198,643,464
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.

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

Prepared by: ____________________________________ Approved by:

Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Cindy Murphy, Treasurer

CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF NOVEMBER 30, 2024
FOR THE FISCAL YEAR OF 2024-25

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 16,210,880 16,210,880 $ 1,807,137 11% $ 1,604,116 $ 203,021 13% Property Tax - RPTTF Residual Distribution 2,895,920 2,895,920 n/a - - n/a - Property Tax - Supplemental Roll 304,220 304,220 45,493 15% 57,287 (11,795) -21% Sales Tax 12,352,215 12,352,215 2,868,431 23% 3,280,401 (411,970) -13% Public Safety Sales Tax 464,254 464,254 104,100 22% 105,259 (1,159) -1% Transient Occupancy Taxes 2,678,000 2,678,000 932,878 35% 960,062 (27,184) -3% Franchise (Refuse ,Cable ,PG&E) 3,185,872 3,185,872 637,852 20% 687,037 (49,185) -7% Property Transfer Tax 600,000 600,000 208,368 35% 167,309 41,059 25% TOTAL TAXES 38,691,361 38,691,361 6,604,259 17% 6,861,472 (257,212) -4%

LICENSES/PERMITS
Business License 200,000 200,000 182,562 91% 157,658 24,904 16% Other Permits 80,750 80,750 36,670 45% 21,554 15,116 70% TOTAL LICENSES/PERMITS 280,750 280,750 219,232 78% 179,212 40,020 22%

FINES AND PENALTIES
Parking Enforcement 9,800 9,800 3,737 38% 4,432 (695) -16% Bails & Fines 55,000 55,000 9,546 17% 23,102 (13,556) -59% Administrative Citations 20,000 20,000 13,477 67% 15,605 (2,128) -14% TOTAL FINES AND PENALTIES 84,800 84,800 26,760 32% 43,138 (16,378) -38%

OTHER AGENCIES
Motor Vehicle in-Lieu 61,800 61,800 n/a - - n/a -
Other Revenue - Other Agencies 1,601,204 1,332,381 481,577 30% 336,938 144,639 43% TOTAL OTHER AGENCIES 1,394,181 1,663,004 481,577 29% 336,938 144,639 43%

CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 11,804 35% 13,673 (1,869) -14% Business License Application Review 82,400 82,400 23,809 29% 63,909 (40,100) -63% Membership Services & Rec Programs 6,222,399 6,222,399 2,683,783 43% 2,541,795 141,988 6% Facility Rentals 1,197,395 1,197,395 620,775 52% 654,108 (33,333) -5% Community Services 147,498 147,498 34,422 23% 12,778 21,643 169% General Administration Overhead 1,756,111 1,756,111 701,213 40% 735,946 (34,733) -5% Other Charges Current Services 884,448 884,448 321,191 36% 256,576 64,615 25% TOTAL CURRENT SERVICES 10,323,751 10,323,751 4,396,996 43% 4,278,786 118,211 3%

OTHER REVENUE
Use of money/property 1,375,045 1,375,045 701,377 51% 540,105 161,271 30% Other Revenues 705,270 705,270 295,776 42% 111,746 184,030 165% TOTAL OTHER REVENUE 2,080,315 2,080,315 997,153 48% 651,851 345,302 53%

TRANSFERS IN
One Time Transfer 165,000 165,000 68,750 42% 75,000 (6,250) -8% Public Safety Facilities Fund 50,000 50,000 20,833 42% 20,833 0% - Supplemental Law Enforcement Fund 100,000 100,000 41,667 42% - 41,667 n/a Countywide Solid Waste 540,328 540,328 225,137 42% 155,417 69,720 45% Streets 851,932 851,932 305,421 36% 292,715 12,706 4%
Park Maintenance 650,000 650,000 270,833 42% 270,833 n/a - Sewer Operations 413,700 413,700 172,375 42% 164,167 8,208 5% Water Operations 413,700 413,700 172,375 42% 164,167 8,208 5% Open Space 81,100 81,100 33,792 42% 33,792 n/a -
Park Development 100,000 100,000 41,667 42% 31,250 10,417 33% TOTAL TRANSFERS IN 3,365,760 3,365,760 1,352,849 40% 1,208,173 144,676 12% TOTAL GENERAL FUND 56,220,919 56,489,742 14,078,826 25% 13,559,570 519,256 4%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 851,932 851,932 302,282 35% 290,472 11,809 4% Interest / Other Revenue/Other Charges 2,135 2,135 3,140 147% 2,243 897 40% 202 STREET MAINTENANCE 854,067 854,067 305,421 36% 292,715 12,706 4%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 12,957 12,957 7,166 55% 3,978 3,188 80% Police Grant/SLEF/JAG 100,000 100,000 111,330 111% 102,826 8,505 8% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 112,957 112,957 118,496 105% 106,803 11,693 11% 206 DEVELOPMENT SERVICES
Building Fees 3,510,850 3,510,850 1,647,742 47% 1,302,963 344,779 26% Planning Fees 954,276 954,276 360,463 38% 267,816 92,646 35% Engineering Fees 942,327 942,327 495,511 53% 170,406 325,105 191% Other Revenue/Current Charges 550,599 550,599 87,129 16% 105,847 (18,718) -18% 206 DEVELOPMENT SERVICES 5,958,052 5,958,052 2,590,845 43% 1,847,033 743,812 40% 207 LONG RANGE PLANNING 1,751,005 1,751,005 374,282 21% 312,013 62,270 20% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 1,161 1,161 1,178 102% 731 61% 448 215 and 216 HCD BLOCK GRANT 1,161 1,161 1,178 102% 731 61% 448 225 ASSET SEIZURE 2,807 2,807 1,797 64% 1,120 60% 677
229 LIGHTING AND LANDSCAPE 206,415 206,415 3,839 2% 2,262 1,577 70% 230 COMMUNITY FACILITIES DISTRICT 28,828 28,828 2,826 10% 1,681 1,145 68% 232 ENVIRONMENTAL PROGRAMS 501,236 501,236 196,974 39% 237,957 (40,983) -17% 234 MOBILE HOME PARK RENT STAB. 2,872 2,872 1,387 48% 2,371 (985) -42% 236 HOUSING MITIGATION 2,762,629 2,762,629 702,129 25% 921,707 (219,578) -24% 240 EMPLOYEE ASSISTANCE 1,297 1,297 3,458 267% 3,365 3% 93 246 COUNTYWIDE SOLID WASTE 2,279,503 2,279,503 449,805 20% 526,793 (76,988) -15% 247 ENVIRONMENT REMEDIATION - - n/a - 1,539 (1,539) -100% 255 HOUSING SUCCESSOR AGENCY 463,881 463,881 248,589 54% 106,511 142,078 133% 260 PUBLIC ART 1,411 1,411 111 8% - 111 n/a
TOTAL SPECIAL REVENUE FUNDS 14,928,122 14,928,122 5,001,138 34% 4,364,601 636,537 15%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,999,271 1,999,271 1,774,067 89% 228,604 1,545,463 676% 302 PARK MAINTENANCE 15,507 15,507 46,429 299% 317,030 (270,601) -85% 303 LOCAL DRAINAGE 1,424,799 1,424,799 374,741 26% 243,785 130,955 54% 304 LOCAL DRAINAGE/NON AB1600 251,296 251,296 113,374 45% 15,377 97,997 637% 306 AGRICULTURE & OPEN SPACE PRESERVATION 18,459 18,459 404,476 2191% 64,510 339,967 527% 308 STREET CIP 3,886,877 3,886,877 1,410,256 36% 1,568,536 (158,279) -10% 309 TRAFFIC IMPACT 4,753,292 4,753,292 1,756,478 37% 333,574 1,422,905 427% 315 PUBLIC SAFETY FACILITIES IMPACT 3,203,214 12,153,214 4,777,113 39% 204,467 4,572,646 2236% 346 PUBLIC FACILITIES NON-AB1600 189,832 189,832 43,084 23% 166,842 (123,759) -74% 347 PUBLIC FACILITIES IMPACT 451,223 451,223 308,536 68% 59,021 249,516 423% 348 LIBRARY 1,414,286 1,414,286 1,261,969 89% 196,145 1,065,824 543% 350 UNDERGROUNDING 74,302 74,302 31,049 42% 18,772 12,276 65% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY - - - n/a 30,712 (30,712) -100% 360 COMMUNITY/REC IMPACT FUND 2,501,528 2,501,528 2,053,877 82% 346,425 1,707,452 493% 375 QUIMBY FEE 2,650,042 2,650,042 1,240,701 47% 796,882 443,819 56% TOTAL CAPITAL PROJECTS FUNDS 22,833,927 31,783,927 15,596,151 49% 4,590,682 11,005,469 240%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 300,467 300,467 126,055 42% 123,610 2,445 2% 441 POLICE FACILITY BOND 390,939 390,939 161,112 41% 162,860 (1,749) -1% TOTAL DEBT SERVICE FUNDS 691,406 691,406 287,167 42% 286,471 697 0%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

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

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 16,100,000 16,100,000 5,381,260 33% 5,009,134 372,125 7% Interest Income/Transfers 141,661 141,661 36,495 26% 21,840 14,655 67% Other Revenue/Current Charges 397,200 397,200 114,336 29% 106,092 8,244 8% 640 WASTEWATER OPERATION 16,638,861 16,638,861 5,532,090 33% 5,137,066 395,024 8% 641 WASTEWATER EXPANSION
Interest Income 275,047 275,047 381,742 139% 245,255 136,487 56% Development Impact Fee 11,546,118 11,546,118 7,873,405 68% 1,315,555 6,557,850 498% 641 WASTEWATER EXPANSION 11,821,165 11,821,165 8,255,147 70% 1,560,810 6,694,338 429% 642 WASTEWATER RATE STABILIZATION 108,613 108,613 54,782 50% 112,684 (57,902) -51% 643 WASTEWATER CAPITAL PROJECT 6,149,134 6,149,134 3,010,099 49% 2,310,673 699,426 30% TOTAL SEWER FUNDS 34,717,773 34,717,773 16,852,119 49% 9,121,233 7,730,886 85% 650 WATER OPERATION
Water Sales 19,620,000 19,620,000 7,549,920 38% 6,732,483 817,437 12% Meter Install & Service 107,000 107,000 47,663 45% 46,949 714 2% Transfers-In / Interest Income 894,617 894,617 354,989 40% 280,667 74,322 26% Other Revenue/Current Charges 926,109 926,109 402,379 43% 262,047 140,332 54% 650 WATER OPERATION 21,547,726 21,547,726 8,354,951 39% 7,322,146 1,032,805 14% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 92,467 92,467 82,876 90% 34,313 48,563 142% Development Impact Fee 3,829,384 3,829,384 2,829,105 74% 327,481 2,501,624 764% 651 WATER EXPANSION 3,921,851 3,921,851 2,911,982 74% 361,794 2,550,188 705% 652 WATER RATE STABILIZATION 115,840 115,840 59,266 51% 36,753 22,513 61% 653 WATER CAPITAL PROJECT 10,380,062 10,380,062 2,825,548 27% 3,045,948 (220,401) -7% TOTAL WATER FUNDS 35,965,479 35,965,479 14,151,746 39% 10,766,641 3,385,106 31% TOTAL ENTERPRISE FUNDS 70,683,252 70,683,252 31,003,866 44% 19,887,874 11,115,992 56%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,883,241 2,883,241 1,203,802 42% 1,045,238 158,564 15% 740 BUILDING MAINTENANCE 1,421,485 1,421,485 594,075 42% 698,790 (104,715) -15% 741 BUILDING REPLACEMENT 1,041,905 1,041,905 454,175 44% 394,939 59,236 15% 745 CIP ADMINISTRATION 2,582,015 2,582,015 634,017 25% 388,245 245,772 63% 760 UNEMPLOYMENT INSURANCE 10,206 10,206 4,812 47% 3,160 1,652 52% 770 WORKERS COMPENSATION 1,157,705 1,157,705 435,804 38% 366,226 69,578 19% 790 EQUIPMENT REPLACEMENT 1,680,580 1,704,881 775,333 45% 1,109,888 (334,554) -30% 791EMPLOYEE BENEFITS 1,183,215 1,183,215 479,135 40% 356,219 122,916 35% 795 GENERAL LIABILITY INSURANCE 2,519,216 2,519,216 1,045,714 42% 878,436 167,278 19% TOTAL INTERNAL SERVICE FUNDS 14,479,568 14,503,869 5,626,868 39% 5,241,141 385,727 7% TOTAL FOR ALL FUNDS $ 179,837,194 $ 189,080,318 $ 71,594,015 38% $ 47,930,338 $ 23,663,678 49%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 28,119 $ 520,395 $ 197,199 $ - $ 197,199 $ 38% 161,555 $ .

CITY ATTORNEY 113,054 1,134,397 409,105 93,607 502,711 44% 339,554 CITY MANAGER 74,808 1,007,624 228,222 3,281 231,503 23% 265,034 HUMAN RESOURCES 120,865 1,087,175 467,760 - 467,760 43% 325,583

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 64,675 609,913 231,550 - 231,550 38% 208,284 Elections 3,859 354,364 6,198 - 6,198 2% 11,752
COUNCIL SVCS & RECORDS MGMT 68,534 964,277 237,747 - 237,747 25% 220,035 FINANCE 216,035 2,637,291 804,390 471,723 1,276,114 48% 769,141 TOTAL ADMINISTRATION 621,416 7,351,159 2,344,424 568,611 2,913,035 40% 2,080,902 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 614,621 8,040,818 2,999,552 1,437,603 4,437,155 55% 2,659,464 Recreation Facility Rentals 63,225 633,051 236,746 53,220 289,966 46% 230,252 Innovative Transit 75,050 590,944 249,705 222,045 471,751 80% 228,980 Community Services 66,125 761,973 241,019 59,475 300,494 39% 217,458 Park Maintenance 121,973 1,472,380 443,249 9,075 452,324 31% 429,355 Environmental Services 66,810 1,067,544 248,896 13,934 262,830 25% 132,578 Countywide Solid Waste Program 55,943 540,327 200,515 - 200,515 37% 151,902 Street Maintenance 382,010 3,511,464 1,220,993 7,814 1,228,807 35% 892,794 Downtown Maintenance 30,890 378,065 103,257 9,939 113,196 30% 101,672 PD Building Maintenance 107,551 664,355 260,912 81,354 342,265 52% 188,447 Cable Television 7,880 91,234 37,824 - 37,824 41% 36,723 COMMUNITY SERVICES 1,592,078 17,752,155 6,242,668 1,894,460 8,137,127 46% 5,269,625 CODE COMPLIANCE 43,887 405,637 159,664 - 159,664 39% 76,979 INFRASTRUCTURE PLANNING & CONGESTION MGMT 555,166 42,233 163,182 - 163,182 29% 129,435 ECONOMIC DEVELOPMENT PROGRAMS 95,702 1,209,072 346,742 89,579 436,320 36% 405,228 TOTAL COMMUNITY SERVICES 1,773,899 19,922,029 6,912,255 1,984,039 8,896,294 45% 5,881,267 III. PUBLIC SAFETY
POLICE
PD Administration 190,546 2,296,286 734,229 45,080 779,309 34% 657,955 Field Operations 1,319,277 13,884,900 4,747,527 825,919 5,573,446 40% 4,442,905 Support Services 236,083 2,556,380 1,041,925 593,800 1,635,725 64% 1,133,292 Emergency Services/Haz Mat 28,826 275,047 100,684 - 100,684 37% 83,797 Special Operations 515,574 4,244,340 1,847,513 - 1,847,513 44% 1,477,701 Dispatch Services 254,602 2,341,249 934,327 - 934,327 40% 791,230 POLICE 2,544,909 25,598,203 9,406,205 1,464,798 10,871,003 42% 8,586,879 FIRE 841,978 10,381,160 4,368,537 45,676 4,414,214 43% 3,725,275 TOTAL PUBLIC SAFETY 3,386,887 35,979,363 13,774,743 1,510,475 15,285,217 42% 12,312,154 IV. TRANSFERS
Other 121,519 1,458,230 607,596 - 607,596 42% 1,943,236 TOTAL TRANSFERS 121,519 1,458,230 607,596 - 607,596 42% 1,943,236 TOTAL GENERAL FUND 5,903,721 64,710,781 23,639,017 4,063,124 27,702,141 43% 22,217,559

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 454 857,383 307,692 - 307,692 36% 294,878 205 PUBLIC SAFETY/SUPP.LAW 113 101,354 564 - 564 1% 537 206 DEVELOPMENT SERVICES FUND
Planning 173,848 1,700,561 649,762 1,137 650,899 38% 651,100 Building 428,721 3,055,890 1,205,784 169,629 1,375,413 45% 920,129 Engineering 172,220 1,644,092 617,394 216,375 833,769 51% 650,537 206 DEVELOPMENT SERVICES FUND 774,788 6,400,543 2,472,939 387,141 2,860,080 45% 2,221,766 207 LONG RANGE PLANNING 118,714 3,125,686 383,381 975,547 1,358,928 43% 330,087 215/216 CDBG 7 87 36 - 36 42% 35
225 ASSET SEIZURE 68 821 342 - 342 42% 326
229 LIGHTING AND LANDSCAPE 20,939 212,191 74,647 19,229 93,876 44% 56,149 230 COMMUNITY FACILITIES DISTRICT 2,213 23,511 10,119 - 10,119 43% 15,477 232 ENVIRONMENT PROGRAMS 39,128 453,818 158,482 8,492 166,974 37% 162,044 234 MOBILE HOME PARK 79 952 397 - 397 42% 378
236 HOUSING MITIGATION 162,099 2,214,529 566,903 778,346 1,345,249 61% 315,317 240 EMPLOYEE ASSISTANCE 83 20,993 3,914 - 3,914 19% 2,394 246 COUNTYWIDE SOLID WASTE PROGRAM 86,803 2,648,132 606,400 1,421,694 2,028,094 77% 293,502 255 HOUSING SUCCESSOR AGENCY 53,631 1,319,931 510,401 266,875 777,276 59% 522,671 260 PUBLIC ART 1,264 16,306 3,416 - 3,416 21% -
TOTAL SPECIAL REVENUE FUNDS 1,260,385 17,396,238 5,099,633 3,857,324 8,956,957 51% 4,215,560

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 64,957 3,460,007 471,404 174,215 645,618 19% 381,516 302 PARK MAINTENANCE 54,167 1,650,000 272,424 - 272,424 17% 421,998 303 LOCAL DRAINAGE 4,272 10,931,065 3,016,604 1,369,198 4,385,802 40% 255,187 304 LOCAL DRAIN. NON-AB1600 3,145 505,176 33,475 - 33,475 7% 151,868 306 AGRICULTURE & OPEN SPACE PRESERVATIO 128,157 10,680 53,399 - 53,399 42% 40,667 308 STREET CIP 895,058 4,992,517 2,965,846 1,635,719 4,601,566 92% 3,545,855 309 TRAFFIC IMPACT 43,275 4,593,527 385,206 5,487,622 5,872,828 128% 205,509 315 PUBLIC SAFETY FACILITIES IMPACT 517,989 8,993,315 3,480,448 3,889,553 7,370,000 82% 833,165 346 PUBLIC FAC.NON AB1600 9,731 1,652,085 29,660 215,744 245,405 15% 51,207 347 PUBLIC FACILITIES IMPACT 29,305 1,444,333 354,989 1,010,368 1,365,357 95% 77,199 348 LIBRARY IMPACT 226,135 2,713,615 1,130,673 - 1,130,673 42% 92,645 350 UNDERGROUNDING 117,358 401,505 117,769 - 117,769 29% 490 355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY - - - - - n/a 18,660 360 COMM/REC CENTER IMPACT 44,712 1,430,662 257,320 495,567 752,886 53% 112,370 375 QUIMBY FEE 87,445 6,807,980 1,048,861 2,635,480 3,684,341 54% 15,744 TOTAL CAPITAL PROJECTS FUNDS 2,108,229 49,703,945 13,618,077 16,913,465 30,531,543 61% 6,204,080

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 240,753 291,714 241,887 - 241,887 83% 237,948 441 POLICE FACILITY BOND DEBT 326,650 385,093 328,151 - 328,151 85% 322,809 TOTAL DEBT SERVICE FUNDS 567,403 676,807 570,039 570,039 - 84% 560,757

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete

CURRENT

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

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 3,259,657 16,796,487 6,863,093 41,990 6,905,084 41% 5,127,198 641 WASTEWATER CAPITAL EXPANSION 488,756 7,897,156 2,436,498 936,574 3,373,072 43% 584,394 642 WASTEWATER RATE STABILIZATION 164 1,966 819 - 819 42% 780 643 WASTEWATER CAPITAL PROJECTS 115,521 11,224,791 1,693,183 3,843,597 5,536,780 49% 1,423,548 TOTAL SEWER FUND(S) 3,864,098 35,920,399 10,993,593 4,822,162 15,815,755 44% 7,135,920 WATER
Water Operations 1,824,244 19,715,654 7,357,577 513,124 7,870,701 40% 6,928,689 Utility Billing 141,988 1,502,560 504,378 45,851 550,229 37% 375,854 Water Conservation 44,226 416,169 157,165 19,288 176,453 42% 154,114 650 WATER OPERATIONS 2,010,457 21,634,383 8,019,119 578,264 8,597,383 40% 7,458,657 651 WATER CAPITAL EXPANSION 64,628 4,406,112 312,277 3,121,430 3,433,706 78% 301,708 652 WATER RATE STABILIZATION 123 1,473 614 - 614 42% 585 653 WATER-CAPITAL PROJECTS 311,918 19,944,363 803,266 8,653,217 9,456,484 47% 1,029,947 TOTAL WATER FUND(S) 2,387,125 45,986,331 9,135,276 12,352,911 21,488,187 47% 8,790,897 TOTAL ENTERPRISE FUNDS 6,251,223 81,906,730 20,128,869 17,175,073 37,303,942 46% 15,926,816

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 239,728 2,961,976 1,063,200 34,786 1,097,986 37% 991,609 740 BUILDING MAINTENANCE 97,060 1,506,259 510,762 87,620 598,382 40% 369,206 741 BUILDING REPLACEMENT 8,252 1,351,684 601,638 160,300 761,939 56% 39,456 745 CIP ADMINISTRATION 263,196 2,584,581 960,765 5,092 965,857 37% 676,210 760 UNEMPLOYMENT - 15,000 3,922 - 3,922 26% 11,826
770 WORKERS COMPENSATION (36,923) 946,245 638,923 - 638,923 68% 630,680 790 EQUIPMENT REPLACEMENT 6,404 1,400,191 723,732 94,687 818,419 58% 77,382 791 EMPLOYEE BENEFITS FUND 19,283 1,000,000 152,066 - 152,066 15% 107,525 795 GEN. LIABILITY INSURANCE 32,165 2,411,618 2,075,637 - 2,075,637 86% 2,349,318 TOTAL INTERNAL SERVICE FUNDS 629,164 14,177,554 6,730,645 382,485 7,113,130 50% 5,253,211 REPORT TOTAL 16,720,124 $ 228,572,055 $ 69,786,280 $ 42,391,471 $ 112,177,751 $ 49% 54,377,982 $

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-24 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 31,122,294 $ 14,078,826 $ 25% 23,639,017 $ 37% (9,560,191) $ 4,063,124 $ 17,498,979 $ TOTAL GENERAL FUND $ 31,122,294 $ 14,078,826 25% $ 23,639,017 37% $ (9,560,191) $ 4,063,124 $ 17,498,979 202 STREET MAINTENANCE 72,734 $ 305,421 36% 307,692 $ 39% $ (2,271) $ - $ 70,463 205 PUBLIC SAFETY/SUPPL. LAW 415,174 118,496 105% 38% 117,932 564 533,106 - 206 DEVELOPMENT SERVICES (1,144,436) 2,590,845 43% 2,472,939 39% 117,906 387,141 (1,413,671) 207 LONG RANGE PLANNING 1,306,215 374,282 21% 383,381 12% (9,098) 975,547 321,570 215 / 216 CDBG 32,500 1,178 102% 42% 36 1,142 - 33,642
225 ASSET SEIZURE 104,495 1,797 64% 42% 342 1,455 105,950 - 229 LIGHTING AND LANDSCAPE 216,005 3,839 2% 74,647 35% (70,808) 19,229 125,968 230 COMMUNITY FACILITIES DISTRICT 162,519 2,826 10% 10,119 43% (7,293) 155,226 - 232 ENVIRONMENTAL PROGRAMS 488,875 196,974 39% 158,482 35% 38,492 8,492 518,875 234 MOBILE HOME PK RENT STAB. 81,475 1,387 48% 42% 397 990 - 82,465 235 SENIOR HOUSING 245,426 n/a - n/a - - 245,426 -
236 HOUSING MITIGATION 7,932,027 702,129 25% 566,903 26% 135,226 778,346 7,288,907 240 EMPLOYEE ASSISTANCE 62,481 3,458 267% 3,914 19% (456) - 62,025 246 COUNTYWIDE SOLID WASTE 323,153 449,805 n/a 606,400 23% (156,595) 1,421,694 (1,255,136) 247 ENVIRONMENT REMEDIATION - n/a - n/a - - - -
255 HOUSING SUCCESSOR AGENCY 3,818,193 248,589 54% 510,401 39% (261,812) 266,875 3,289,506 TOTAL SPECIAL REVENUE FUNDS $ 14,116,836 $ 5,001,138 34% $ 5,099,633 29% $ (98,495) $ 3,857,324 $ 10,161,016 301 PARK DEV. IMPACT FUND $ 2,008,148 $ 1,774,067 89% 471,404 $ 14% 1,302,664 $ $ 174,215 $ 3,136,597 302 PARK MAINTENANCE 2,489,205 46,429 299% 272,424 17% (225,995) 2,263,210 - 303 LOCAL DRAINAGE 9,621,788 374,741 26% 3,016,604 28% (2,641,863) 1,369,198 5,610,726 304 LOCAL DRAINAGE/NON-AB1600 1,233,420 113,374 45% 33,475 7% 79,899 1,313,319 - 306 AG. AND OPEN SPACE PRESERVATION 672,578 404,476 2191% 53,399 42% 351,078 1,023,656 - 308 STREET CIP 4,287,249 1,410,256 36% 2,965,846 59% (1,555,590) 1,635,719 1,095,939 309 TRAFFIC IMPACT FUND 3,808,198 1,756,478 37% 385,206 8% 1,371,272 5,487,622 (308,152) 315 PUBLIC SAFETY FACILITIES IMPACT (1,553,435) 4,777,113 39% 3,480,448 39% 1,296,666 3,889,553 (4,146,322) 346 PUBLIC FACILITIES NON-AB1600 2,184,388 43,084 23% 29,660 2% 13,423 215,744 1,982,067 347 PUBLIC FACILITIES IMPACT FUND 1,328,671 308,536 68% 354,989 25% (46,452) 1,010,368 271,850 348 LIBRARY IMPACT FUND 2,254,117 1,261,969 89% 1,130,673 42% 131,296 2,385,413 - 350 UNDERGROUNDING 1,768,551 31,049 42% 117,769 29% (86,721) 1,681,830 - 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY - n/a - n/a - - - -
360 COMM/REC CTR IMPACT FUND 2,297,534 2,053,877 82% 257,320 18% 1,796,558 495,567 3,598,525 375 QUIMBY FEE 3,984,952 1,240,701 47% 1,048,861 15% 191,840 2,635,480 1,541,312 TOTAL CAPITAL PROJECT FUNDS $ 36,385,364 $ 15,596,151 49% $ 13,618,077 27% $ 1,978,073 $ 16,913,465 $ 21,449,972 420 CIVIC CENTER DEBT $ 183,038 $ 126,055 42% 241,887 $ 83% (115,832) $ $ 249,367 $ (182,161) 441 POLICE FACILITY BOND DEBT 163,896 161,112 41% 328,151 85% (167,040) 317,377 (320,520) TOTAL DEBT SERVICE FUNDS $ 346,934 $ 287,167 42% $ 570,039 84% $ (282,871) $ 566,743 $ (502,681) 640 WASTEWATER OPERATIONS $ 3,983,038 $ 5,532,090 33% 6,863,093 $ 41% (1,331,003) $ 41,990 2,610,045 641 WASTEWATER IMPACT FUND* 18,629,828 8,255,147 70% 2,436,498 31% 5,818,650 936,574 23,511,903 642 WASTEWATER RATE STABILIZATION 3,121,932 54,782 50% 42% 53,963 819 3,175,895 - 643 WASTEWATER CAPITAL PROJECTS 17,703,049 3,010,099 49% 1,693,183 15% 1,316,916 3,843,597 15,176,368 650 WATER OPERATIONS 4,083,455 8,354,951 39% 8,019,119 37% 335,832 578,264 3,841,023 651 WATER IMPACT FUND* 3,852,318 2,911,982 74% 312,277 7% 2,599,705 3,121,430 3,330,593 652 WATER RATE STABILIZATION 3,337,806 59,266 51% 42% 58,652 614 3,396,458 - 653 WATER -CAPITAL PROJECT 18,694,610 2,825,548 27% 803,266 4% 2,022,281 8,653,217 12,063,674 TOTAL ENTERPRISE FUNDS $ 73,406,036 $ 31,003,866 44% $ 20,128,869 25% $ 10,874,996 $ 17,175,073 $ 67,105,960 730 INFORMATION SERVICES $ 656,565 $ 1,203,802 42% 1,063,200 $ 36% 140,602 $ $ 34,786 $ 762,381 740 BUILDING MAINTENANCE 94,619 594,075 42% 510,762 34% 83,313 87,620 90,312 741 BUILDING REPLACEMENT 5,083,004 454,175 44% 601,638 45% (147,463) 160,300 4,775,241 745 CIP ENGINEERING 8,329 634,017 25% 960,765 37% (326,748) 5,092 (323,511) 760 UNEMPLOYMENT 284,229 4,812 47% 3,922 26% 890 285,119 - 770 WORKERS COMPENSATION 2,381,319 435,804 38% 638,923 68% (203,118) 30,000 2,148,201 790 EQUIPMENT REPLACEMENT 8,727,549 775,333 45% 723,732 52% 51,602 94,687 8,684,464 791 EMPLOYEE BENEFITS FUNDS 26,248 479,135 40% 152,066 15% 327,069 353,317 - 795 GEN. LIABILITY INSURANCE 984,307 1,045,714 42% 2,075,637 86% (1,029,923) - (45,616) TOTAL INTERNAL SERVICE FUNDS $ 18,246,169 $ 5,626,868 39% $ 6,730,645 47% $ (1,103,776) $ 412,485 $ 16,729,908 Revenues Expenses Preliminary Ending Fund Balance

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended November 30, 2024
42% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-24 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Preliminary Ending Fund Balance

SUMMARY BY FUND TYPE
GENERAL FUND GROUP 31,122,294 $ 14,078,826 $ 25% 23,639,017 $ 37% (9,560,191) $ 4,063,124 $ 17,498,979 $ SPECIAL REVENUE GROUP 14,116,836 5,001,138 34% 5,099,633 29% (98,495) 3,857,324 10,161,016 DEBT SERVICE GROUP 346,934 287,167 42% 570,039 84% (282,871) 566,743 (502,681) CAPITAL PROJECTS GROUP 36,385,364 15,596,151 49% 13,618,077 27% 1,978,073 16,913,465 21,449,972 ENTERPRISE GROUP 73,406,036 31,003,866 44% 20,128,869 25% 10,874,996 17,175,073 67,105,960 INTERNAL SERVICE GROUP 18,246,169 5,626,868 39% 6,730,645 47% (1,103,776) 412,485 16,729,908 TOTAL ALL GROUPS 173,623,633 $ 71,594,015 $ 38% 69,786,280 $ 31% 1,807,735 $ 42,988,215 $ 132,443,153 $ For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.

5 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Nichole Martin, Community Services Coordinator
APPROVED BY: City Manager
ADOPT RESOLUTION APPROVING COMMENCEMENT OF 2025 WEED

ABATEMENT PROGRAM

RECOMMENDATION(S)

1. Open/Close public hearing; and

2. Adopt a resolution authorizing Santa Clara County to commence hazardous vegetation abatement activities.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land REPORT NARRATIVE:

On November 20, 2024, the City Council adopted Resolution 24-040 declaring hazardous vegetation growing in the City of Morgan Hill to be a public nuisance. The Resolution further established January 15, 2025 as the date for a public hearing on properties proposed for inclusion in the 2025 Weed Abatement Program (Program).

Program notices (Attachment 1) have been mailed to property owners in Morgan Hill whose properties have been identified as having, or potentially having, a problem with hazardous vegetation. In addition, notices of this public hearing have been published in the newspaper per Government Code Section 39566. The purpose of this hearing is to allow property owners to object to having their property in the 2025 Weed Abatement Management Program, have the City Council consider these objections, and/or provide general public comment regarding the program. The list of properties in the Program has been posted at City Hall for over ten days prior to this public hearing.

The City controls the growth of hazardous vegetation under the authority set out in Chapter 8.20 of the Morgan Hill Municipal Code and in Government Code Sections 39560 and following. The City has a contract with the Santa Clara County Consumer and Environmental Protection Agency (Agency) which provides for abatement of the property if the property owner does not maintain the property as required. If the work is completed by the Agency's contractor, costs for the work are assessed to the property owner. Properties on the Weed Abatement Program List have been inspected by Agency staff and have been found to have unsafe vegetation during the growing

5 season. Once a property is added to the Program, it remains on the program for a minimum of three years.

COMMUNITY ENGAGEMENT:

Empower
The weed abatement program relies on a full range of community engagement approaches. Much of it begins when the County Program or City Fire Department informs a property owner that a hazardous situation has been observed on their property. As noted in the attached packet mailed to the property owners, each property owner is given several months during which they may consult and work together with Program staff to understand the situation and the needed remedies. Ultimately, each property owner is invited and empowered to remedy the situation themselves in order to minimize their program charges while maintaining public safety. In addition, many of the properties on the original list are placed on the list as a result of a complaint from a community member about a hazardous situation.

ALTERNATIVE ACTIONS:

The Council can choose to adopt the resolutions as presented or to exclude any of the properties on the list. In addition, the Council can choose to delay action on the resolution. Delaying action could ultimately provide the affected property owners with less notice and time to plan for abating their hazardous vegetation.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council adopted the annual resolution in November 2024. This hearing and the abatement schedule are consistent with the actions taken by the Council for over a decade.

FISCAL AND RESOURCE IMPACT:

The Weed Abatement Program is user fee supported. The per-lot assessment includes costs for doing the weed and brush control work plus overhead County costs to administer the program. The City does not retain any revenue for this activity. In addition to charges for failed inspections and actual abatement work, an annual inspection fee of $105.00 is charged to all property owners in the Program. These fees are communicated to the property owners when they are annually notified about the Program. The actual total charge per parcel will vary based on whether or not the property owner abated their own weeds and whether or not they did so before the County's inspection, after the May 1 deadline. The County returns the actual proposed assessment list to the City in the summer for the assessment of program charges. Per the approach adopted by the Council, the program charges are discussed at a local prehearing with City staff and then imposed via an administrative hearing held by the County's Hearing Officer.

Item (Current County Fee)
Annual Inspection and Administration ($105 annually)
Noncompliant Fee charged to properties not in compliance by the May 1 deadline ($597)

5 Abatement Administration Fee charged to properties requiring County abatement (Contractor costs + $961)
As the County has found that its revenues in the past were not always adequate to support the program, the Board of Supervisors has adopted a fee schedule designed to achieve full cost recovery and has shifted ultimate fiscal responsibility to participating jurisdictions. If the County determines that program-wide revenues in a given year were insufficient to cover program-wide costs, the jurisdictions participating in the Program will be billed for their prorata share of the shortfall.

Administering this Program is an activity in the Public Services Department work program and budget.

CEQA (California Environmental Quality Act):

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

2025 Return Reply Form
IMPORTANT: Please complete this form and mail back to the Weed Abatement Program within 15 days of receipt of this notice.Thank you.

TRA: 03
14823 LGB LLC
Parcel Number Site Address
14823 LGB LLC
2600 EL CAMINO REAL STE 410
PALO ALTO CA 94306-1719
Please check the box that
applies for each parcel
(see explanations below):

ABC
*424-07-065*
424-07-065 14823 LOS GATOS LOS GATOS
Signature Name (please print) Date Day time phone
A
B
C
I am no longer the owner of this property, and the new owner information is listed below. Please return Reply Form immediately.

I intend to maintain this parcel in a manner consistent with the Minimum Fire Safety Standards from April 15, 2025 through the end of the fire season (typically runs through October). All parcels on the abatement list remain subject to inspection and fee to ascertain compliance. Non-compliance by the deadline will result in an Inspection fee and the abatement of weeds by the County contractor and the resulting charges added to the property tax.

I request that the County Contractor perform weed abatement work on this parcel. Charges for this work will be added to my property tax bill. (All County fees Apply)
( )
Please provide any additional information such as new owners, presence of piping, irrigation, crops or other improvement.

If your property is fenced/locked, please provide instructions on how to enter the property. If you are no longer the owner of the property identified by this mailing, please notify the County immediately. If you sell your property after December 1st ,2024, it is your responsibility to notify the new owner and to include the obligation to pay any abatement costs in your agreement of sale. Without taking this action, you will be liable for all hazard abatement charges assessed to the property.

Thank you
Please check if you feel this parcel is environmentaly sensitive SAMPLE

(over)
TRA 04
Notice to
Destroy
Weeds
NOTICE IS HEREBY GIVEN that on November 20, 2024, pursuant to the provisions of Section

8.20.030 of the Morgan Hill Municipal Code, the City Council of said City passed a resolution declaring that all weeds growing upon any private property or in any public street or alley, as defined in Section 8.20.010, constitute a public nuisance, which nuisance must be abated by the destruction or removal thereof.

NOTICE IS FURTHER GIVEN that property owners shall without delay, remove all such weeds from their property, and the abutting half of the street in front and alleys, if any, behind such property, and between the lot lines thereof as extended, or such weeds will be destroyed or removed and such nuisance abated by the City authorities, in which case the cost of such destruction or removal will be assessed upon the lots and lands from which, or from the front or rear of which, such weeds shall have been destroyed or removed; and such cost will constitute a lien upon such lots or lands until paid, and will be collected upon the next tax roll upon which general municipal taxes are collected. All property owners having any objections to the proposed destruction or removal of such weeds are hereby notified to attend a meeting of said City to be held in the Council Chambers of the City of Morgan Hill located at 17555 Peak Avenue, Morgan Hill, California, on Wednesday, January 15, 2025, at 7:00 p.m., or as soon thereafter as the matter can be heard, when their objections will be heard and given due consideration.

The language and format for this notice is required by California Health and Safety Code Sections 14891 Et. Seq.

(over)
TRA 04

MORGAN HILL WEED ABATEMENT PROGRAM SCHEDULE
January 15, 2025 Public hearing to consider objections to Abatement List.

May 1, 2025 PARCEL ABATEMENT DEADLINE
Parcel must be free from hazardous vegetation by this date or Inspector will order abatement.

July/August 2025 Assessment Hearing date to be scheduled by City Council. 2025 COUNTY WEED ABATEMENT FEES
Properties in the Weed Abatement Program, you will be responsible for an annual inspection fee of $105.00 per parcel.

Please be advised that the property owner of any parcel found to be non-compliant on or after the May 1st deadline will be charged a processing fee of $597.00 and the property will be scheduled for abatement by the County contractor. If you complete the abatement work before the County contractor performs the abatement, you will not incur further charges.

Should the abatement work be performed by a County contractor, you will be assessed the contractor’s charges plus a County administrative fee of $961.00 per parcel. For those parcels requiring a warrant a fee of $1,323.00 per parcel will be assessed. 2025 COUNTY CONTRACTOR’S WEED ABATEMENT PRICE LIST
A) Disc Work**
PARCEL SIZE: 1
st Disc + 2nd Disc = Total Discs
0-12,500 sq.ft. $TBD $ TBD $ TBD
12,501sq.ft.- 43,560sq.ft. $ TBD $ TBD $ TBD
Larger than 1 Acre $ TBD $ TBD $ TBD (PER ACRE)
** It is required that parcels be disced twice a year. The cost for the first discing is higher due to additional work normally required during the first discing.

B) HANDWORK $ TBD PER 100 Square Feet (SF)
C) FLAIL 6 Foot Mower $ TBD PER 1,000 SF
MOWING 12 Foot Mower $ TBD PER 1,000 SF
D) LOADER WORK $ TBD PER HOUR
E) DUMP TRUCK $ TBD PER HOUR
F) BRUSH WORK $ TBD PER 100 SF
G) DEBRIS REMOVAL $ TBD PER HOUR
H) DUMP FEE 100%
Added to orders with debris removal at 100% of the dump site charge. *Please note this program does not offer herbicide application as a method of abatement.

Fire safety is essential to protect lives,
preserve property, ensure the well-being
of our communities, and minimize the
environmental impact. Implementing fire
safety measures by removing fire
hazards from your parcel is a proactive
way to reduce the risk of injury, death,
and extensive damage caused by fires.

Effective prevention and preparedness
measures not only save lives but also
safeguard our environment and reduce
economic losses. Maintaining proper
clearance requirements is a shared
responsibility.

The Santa Clara County Consumer and
Environmental Protection Agency -
Weed Abatement Program (WAP) and
your city are working together to protect
your community from fire. We work with
all County cities except Saratoga,
Mountain View and Sunnyvale.

Fees will be assessed for any property
in the program and cover the cost of the
compliance inspection for the property.

Properties that fail the compliance
inspection will be charged a failed
inspection fee, even if the resident
completes the weed abatement. If the
property requires abatement by the
County contractor, the property owner
will be responsible for the actual cost of
abatement plus an administrative fee.

Properties that meet and maintain the
minimum fire safety standards will only
be charged the annual fee.

The following is a partial list of fire
resistant plants that you may choose
to use around your home to reduce
the risk of fire. Contact your local
nursery for selections appropriate to
your area. All grasses, including those
purportedly fire resistant, must be
maintained below 6” in height.

Trees:

African Sumac
California Pepper
Weed Abatement Program
Groundcover:

Aaron’s Bear
Australian Daisy
Candytuft
Sterile Capeweed
Freeway Daisy
Rock Rose
(except Gum Variety)
Q. Why have I received an Abatement Notice?
A. A Weed Abatement Inspector identified a
potential fire hazard on your property during fire
season. Fire Departments and other agencies also
submit complaints to the Weed Abatement
Program.

Q. What is required of me now that I am in the
program?
A. You are required to keep your property free of
fire hazards throughout the year.

Q. How long will I be in the program?
A. Your property will remain on the program for
three consecutive years. If no hazards are found
during that time, your property may be removed
from the program.

Q. What do I do if there are Burrowing Owls on
my property?
A. These owls are listed as a state Species of
Special concern and are protected by the federal
Migratory Bird Act. To abate your property, you
must use a form of weed abatement that does not
endanger the birds (mowing or weed eating).

Q. Where can I find more information?
A. We can help! Call us at 408-282-3145, send us
an email at [email protected], or check out our website at weedabatement.santaclaracounty.gov. There you
can find more information about the Minimum Fire
Safety Standards, as well as answers to many
frequently asked questions.

Our Goal is Voluntary Compliance
Shrubs
Bearberry
Carmel Creeper
Carolina Cherry
Catalina Cherry
Escallonia
Hopseed Bush
Lemonade Berry
African Sumac
Freeway Daisy
Escallonia
Fire Resistant Landscape FAQs

Parcelsoneacreorless shallbecompletelyabated.Parcelsoveroneacreuptofiveacres require30-foot clearancearoundstructuresandperimeterproperty lines.Additional30-foot cross fuelbreaksmayalsoberequired.

Parcels largerthanfiveacres require30-foot clearancearoundstructuresandperimeterproperty lines inadditionto 30-foot cross fuelbreaksasneededtoseparatetheremainingvegetationintosectionsnolargerthanfiveacres.

Weed Abatement
A Program of the Consumer and
Environmental Protection Agency
(CEPA)
Scan the QR code to learn more about
the Minimum Fire Safety Standards
408-282-3145
[email protected]
weedabatement.santaclaracounty.gov
Weed Abatement Program Minimum Fire Safety Standards

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL INSTRUCTING THE SANTA CLARA

COUNTY CONSUMER AND ENVIRONMENTAL

PROTECTION AGENCY TO ABATE NUISANCES ARISING

OUT OF HAZARDOUS VEGETATION GROWING UPON

LOTS OR IN FRONT OF PROPERTY IN THE CITY OF
MORGAN HILL AS REQUIRED BY TITLE 8, CHAPTER

8.20 OF THE MORGAN HILL MUNICIPAL CODE
WHEREAS, pursuant to Title 8, Chapter 8.20 of the Morgan Hill Municipal Code, the City Council hereto adopted Resolution No. 24-040 declaring hazardous vegetation growing in the City of Morgan Hill to constitute a public nuisance; and WHEREAS, a Public Hearing was held pursuant to Resolution No. 24-040 and Chapter

8.20 of the Morgan Hill Municipal Code in that time and manner required by law.

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

1. That the Santa Clara County Consumer and Environmental Protection Agency (Agency) is hereby ordered to abate the nuisance or cause the same to be abated by having the vegetation destroyed by cutting, discing or any other method as may be determined by the Agency for the properties on the attached list.

2. That any property owner shall have the right to destroy or remove at his or her expense prior to removal of said vegetation by the Agency.

3. That the Agency shall keep an account of the cost of removing said vegetation and document such account in a report and assessment list, and file the same with the City Clerk. Such report shall refer to each separate lot or parcel of land, together with the expense of removal of hazardous vegetation therefrom.

PASSED AND ADOPTED by the City Council of Morgan Hill on this 15th day of January 2025 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
________________________ ______________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. XX-XXX

 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. XX-XXX, adopted by the City Council at its meeting held on January 15, 2025.

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

DATE: _____________________ _______________________________ Michelle Bigelow, City Clerk

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2025 WEED ABATEMENT PROGRAM

COMMENCEMENT REPORT
CITY OF MORGAN HILL Exhibit A
1 726-02-012 WU, MEI-TSU K 1441 HUNTINGTON DR STE SOUTH PASADENA CA 91030 2 17364 WALNUT DR 726-07-021 DELUKE COMPANY LTD 535 ARRASTADERO RD PALO ALTO CA 94306 3 17361 SAINT ARCHER WY 726-07-090 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 4 17365 SAINT ARCHER WY 726-07-091 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 5 17369 SAINT ARCHER WY 726-07-092 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 6 17373 SAINT ARCHER WY 726-07-093 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 7 17378 SAINT ARCHER WY 726-07-094 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 8 17376 WALNUT DR 726-07-096 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 9 17374 WALNUT DR 726-07-097 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 10 17372 WALNUT DR 726-07-098 MAHIS INVESCO LLC 1102 LAUTREC TER SUNNYVALE CA 94087-2700 11 761 DAKOTA DR 726-09-103 YEAGER, TRAVIS W AND COURTNEY 761 DAKOTA DR MORGAN HILL CA 95037-0000 12 751 DAKOTA DR 726-09-104 DUNNE, MICHAEL F JR AND JONNA 775 DIANA AVE MORGAN HILL CA 95037 13 726-09-105 DUNNE, MICHAEL F JR AND JONNA 775 DIANA AVE MORGAN HILL CA 95037 14 726-09-106 DUNNE, MICHAEL F JR AND JONNA 775 DIANA AVE MORGAN HILL CA 95037 15 726-13-050 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 16 MCLAUGHLIN AVE 726-23-019 MINTON, SINGLETON W AND 1450 W STANFORD RANCH ROCKIN CA 95765 17 MONTEREY RD 726-23-020 ECA PARTNERS LLC 15700 WINCHESTER BLVD LOS GATOS CA 95030-3305 18 17620 MONTEREY RD 726-23-021 DELMAR CAPITAL INVESTMENTS 2544 WESTGATE AVE SAN JOSE CA 95125-4043 19 E CENTRAL AVE 726-24-001 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 20 17910 MONTEREY RD 726-25-001 AFFORDABLE HOUSING LAND P O BOX 260770 ENCINO CA 91424 21 325 DIGITAL DR 726-25-041 OPERATING ENGINEERS LOCAL 1620 S LOOP RD ALAMEDA CA 94502 22 726-25-091 MERSHO INVESTMENTS LLC 5752 COUNTRY CLUB PKWY SAN JOSE CA 95138-0000 23 726-25-092 MERSHO INVESTMENTS LLC 5752 COUNTRY CLUB PKWY SAN JOSE CA 95138-0000 24 18635 MADRONE PK 726-33-025 MERSHO INVESTMENTS LLC 5752 COUNTRY CLUB PKWY SAN JOSE CA 95138 24 records of 125 Santa Clara County Weed Abatement Program Page 1

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COMMENCEMENT REPORT
CITY OF MORGAN HILL Exhibit A
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COMMENCEMENT REPORT
CITY OF MORGAN HILL Exhibit A
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Situs APN CITY/STATE
2025 WEED ABATEMENT PROGRAM

COMMENCEMENT REPORT
CITY OF MORGAN HILL Exhibit A
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CITY OF MORGAN HILL Exhibit A
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6 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Adam Paszkowski, Principal Planner
APPROVED BY: City Manager

ADOPT RESOLUTION AMENDING THE TEXT OF THE MORGAN HILL
2035 GENERAL PLAN TO ELIMINATE THE FLOOR AREA RATIO FOR

THE MIXED USE FLEX LAND USE DESIGNATION AND INTRODUCE
ORDINANCE (ZA2024-0002) AMENDING CHAPTER 12.32
(RESTRICTIONS ON REMOVAL OF SIGNIFICANT TREES) WITHIN
TITLE 12 (STREET, SIDEWALKS AND PUBLIC PLACES) OF THE

MUNICIPAL CODE OF THE CITY OF MORGAN HILL AND VARIOUS
CODE PROVISIONS WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL

CODE OF THE CITY OF MORGAN HILL IMPLEMENTING UPDATES TO

ACCESSORY DWELLING UNIT PROVISIONS TO COMPLY WITH
SENATE BILL 477 AND SENATE BILL 1211; IMPLEMENTING

REPRODUCTIVE HEALTH COMMUNITY CLINICS BY-RIGHT TO
COMPLY WITH ASSEMBLY BILL 2085; UPDATES TO PARKING
PROVISIONS TO COMPLY WITH ASSEMBLY BILL 2097; AND

IMPLEMENTING MINOR AMENDMENTS DUE TO CLERICAL ERRORS

AND INCONSISTENCIES

RECOMMENDATION(S)

1. Open/close the public hearing;

2. Adopt a Resolution approving an amendment to the text of the Morgan Hill 2035 General Plan to eliminate the Floor Area Ratio for the Mixed Use Flex land use designation;

3. Waive first and second reading of the Ordinance Amendment; and

4. Introduce Ordinance Amendment.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Enhancing Diversity and Inclusiveness
2024-2025 Strategic Priorities

6 Affordable Housing and Homelessness
Economic Development and Tourism
Healthy Community
Guiding Documents
Climate Action Plan
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

General Plan Text Amendment:

Staff is proposing a General Plan text amendment to better align the intensity of allowed land uses within the Mixed Use Flex designation with recent changes in State law, the Monterey Corridor Form-Based Code, and the overall goals of the General Plan. The City adopted a comprehensive update of the City’s General Plan in 2016 which established the Mixed Use Flex land use designation primarily along the Monterey Road corridor, north and south of Downtown. The General Plan vision for the Monterey Corridor is as follows:
“North and south of Downtown will transform from its current predominantly strip commercial character to a vibrant mixed use corridor that encourages walking and biking. Buildings will front onto the street and a range of commercial and office uses will be located within close proximity to attached residential units. Density will decrease with distance from Downtown.”
Currently, the Mixed Use Flex designation limits new development to a maximum Floor Area Ratio (FAR) of 0.5. To achieve a 0.5 FAR, development would be limited to onestory for half of the site, two-story for one quarter of the site, and so on, with a ratio of total building area no more than 50% of the total site area. For commercial development, this would correspond to auto-oriented, low-intensity commercial uses.

The current FAR of 0.5 will not support the achievement of the walkable, mixed-use corridor of Monterey Road as envisioned within the General Plan or the Monterey Corridor Form-Based Code. Therefore, the proposed text amendment will better align the text of the General Plan with the City’s overarching vision for the Monterey Corridor.

Furthermore, the purpose of the proposed General Plan text amendment is to remove the Mixed Use Flex designation floor area ratio (FAR) in order to: 1) align with what State regulations promoting housing development already allow; 2) align with the development standards recently adopted through the Monterey Corridor Form-Based Code; and 3) provide equitable conditions for commercial and residential development.

Because State law allows higher densities of residential development along the Monterey Corridor than originally envisioned in the General Plan, it is necessary to make similar allowance for mixed-use and/or commercial development to achieve the overall vision for the corridor. If higher-density residential is allowed while commercial is constrained, market conditions will strongly favor residential over commercial use and over time the corridor will become completely residential. In contrast, the City’s vision is that the corridor would have both residential and commercial uses. The proposed text

6 amendment will grant commercial development the same density allowances as residential to provide equitable conditions for the two land uses.

The proposed text change can be considered routine in that it brings the General Plan into alignment with State law and/or the Monterey Corridor Form-Based Code. It is also important in that it provides clarity and equitable conditions for residential and commercial development and thereby helps the City to achieve its vision for the Monterey Corridor to be a “vibrant mixed-use corridor” as stated in the General Plan.

The Planning Commission held a public hearing regarding the proposed draft General Plan text amendment on August 27, 2024, and recommended approval of the amendments to the General Plan as presented by staff. Complete details of the proposed amendments are provided in the draft Resolution (Attachment 1) and in the Planning Commission staff report.

The proposed General Plan text amendment includes amending page CNF-13 of the 2035 General Plan regarding the description of the Mixed Use Flex Designation by removing the maximum Floor Area Ratio of 0.5 and revising it as follows:

Mixed Use Flex. The Mixed Use Flex designation, which is primarily applied to properties along the Monterey Road corridor north and south of downtown, allows for a mix of residential, commercial, and office uses applied either vertically (i.e., one structure with multiple uses) or horizontally (i.e., structures with different land uses located adjacent to one another). Density should transition from higher to lower at the ends of the Monterey corridor. The Mixed Use Flex designation allows 7 to 24 units per acre.

Zoning Text Amendment:

Following the implementation of the Zoning Code, staff has found several clerical errors, inconsistencies between sections, and the need to update certain portions of the Municipal Code to implement recent Senate and Assembly Bills providing updates to Accessory Dwelling Unit provisions to comply with Senate Bill 477 and Senate Bill 1211, to allow reproductive health community clinics by-right to comply with Assembly Bill 2085, and updates to parking provisions pursuant to Assembly Bill 2097 to not impose or enforce any minimum automobile parking requirement on residential, commercial, or other development projects if the project is located within one-half mile of public transit.

In addition, staff has proposed various other minor amendments throughout the Code to provide further clarification or to expand on certain topics within the Code. The purpose of the proposed Ordinance is to correct these issues. Staff regularly brings forward bundles of minor amendments as necessary to enhance, correct and/or refine the Code.

The following major amendments to the Municipal Code are proposed:
• Chapter 12.32 (Restrictions on Removal of Significant Trees) of Title 12 (Streets, Sidewalks and Public Places) is proposed to be renamed as the Protected and Significant Trees Chapter. Text within the Code is proposed to be revised to update language, provide internal consistency, and to be consistent with the Tree Removal Application process.

6 • Section 18.12.080 (Setbacks) of Chapter 18.12 (Rules of Measurement) is proposed to be amended to clarify definitions for setbacks and revising figures, thereby reducing interpretation by staff.
• Table 18.18-2 (Residential Attached Low Density Development Standards) and Table 18.18-3 (Residential Attached Medium Density and High Density Development Standards) within Section 18.18.030 (Development Standards) of Chapter 18.18 (Residential Attached Zoning Districts), as well as Table

18.40-2 (Medium Density Residential Development Standards) within Section

18.40.050 (Development Standards) of Chapter 18.40 (Alternative Standards for Medium Density Residential Development), are proposed to be modified to clarify that a zero-foot setback is acceptable for Duets along the property line on the shared building wall.
• Table 18.22-2 (Development Standards in Mixed Use Zoning Districts) within Section 18.22.040 (Development Standards) of Chapter 18.22 (Mixed Use Zoning Districts) is proposed to be amended to be consistent with the proposed General Plan text amendment to remove the maximum FAR and building coverage within the (Mixed Use Flex) MU-F zoning district. • Table 18.24-1 (Permitted Land Uses in the Commercial Zoning Districts) within Section 18.24.020 (Land Use Regulations) of Chapter 18.24 (Commercial Zoning Districts) is proposed to be amended to allow Reproductive Health Community Clinics by-right consistent with Government Code Section 65914.900 to comply with Assembly Bill 2085 within the Highway Commercial (CH) and Special Commercial (CS) zoning districts; in addition, a new land use for Cat Café’s is proposed by-right within the General Commercial (CG) zoning district.
• Table 18.29-2 (Permitted Land Uses in the Form-Based Zoning Districts) within Section 18.29.070 (Land Use Standards) of Chapter 18.29 (Monterey Corridor Form-Based Code) is also proposed to be amended to allow Cat Café’s by-right within the Neighborhood Form-Based (FB-N), Corridor FormBased (FB-C), and Urban General Form-Based (FB-UG) zoning districts. • Subsection G is proposed to be added to Section 18.72.030 (Required Parking Spaces) of Chapter 18.72 (Parking and Loading) pursuant to Assembly Bill 2097 to not impose or enforce any minimum automobile parking requirement on residential, commercial, or other development projects if the project is located within one-half mile of public transit. • Chapter 18.84 (Accessory Dwelling Units) proposes updates to Accessory Dwelling Unit provisions to comply with Senate Bill 477 and Senate Bill 1211 to allow up to eight detached accessory dwelling units on lots with existing multifamily dwellings, among other minor revisions.
• Subsection G of Section 18.88.020 (Definitions) of Chapter 18.88 (Signs) is proposed to be amended to provide definitions for Feather Signs and Political Signs.
• Subsection A of Section 18.88.040 (Signs Allowed Without Permits) of Chapter 18.88 (Signs) is proposed to be amended to allow one A-Frame Sign for each commercial business location per street frontage as long as the sign does not obscure or visually impair vehicular traffic, is not placed within the

6 right-of-way/publicly owned property, or does not affect access to a structure.

This Subsection also allows up to three feather signs for thirty days after the initial opening of a business or housing development. The amendments to this subsection also clarify that Political Signs related to a scheduled election are allowed without a permit.
• Subsection C of Section 18.88.120 (Temporary Signs) of Chapter 18.88 (Signs) clarifies that temporary political signs may be erected 90 days prior to the scheduled election and removed within ten days after the election. Table

18.88-3: Temporary Sign Duration Standards establishes the maximum duration that various signs may be erected during a twelve-month period. • The Medical Offices and Clinics definition listed within Subsection L of Section

18.124.030 (Public and Quasi-public Uses) of Chapter 18.124 (Land Use Definitions) is proposed to be amended to include reproductive health community clinics, consistent with Assembly Bill 2085.
• A definition for Cat Café is proposed within Subsection B (Animal-Related Uses) of Section 18.124.040 (Commercial Uses) of Chapter 18.124 (Land Use Definitions), of which it is proposed to be defined as an establishment whose principal business includes a restaurant/café at which cats may be adopted by patrons during normal business hours and boarded during off-business hours with a maximum of twenty (20) cats permitted at any time on the premises. • Subsection A of Section 18.152.030 (Definitions) of Chapter 18.152 (Agricultural Mitigation) is proposed to be updated to refer to the current map of the Farmland Mapping and Monitoring Program (FMMP) of the California Department of Conservation as Prime Farmland, Farmland of Statewide Importance, and Unique Farmland instead of the 2010 FMMP map.

The purpose of the proposed Ordinance is to implement and correct these issues. Staff regularly brings forward minor amendments as necessary to enhance, correct and/or refine the Code. The Planning Commission held a public hearing regarding the proposed draft Ordinance on December 10, 2024, and recommended approval of the amendments to the Municipal Code as presented by staff. Complete details of the proposed amendments are provided in the draft Ordinance (Attachment 2) and in the Planning Commission staff report.

Following the Planning Commission's recommended approval of the amendments, the City Attorney's Office advised of the need to amend the proposed language for political signs, specifically amending Section 18.88.040.A.14 to state pollical signs "are generally placed not sooner than 90 days prior to the scheduled election and are typically removed within 10 days after that election". In addition, the City Attorney's Office advised that all political signs need to be treated the same as other signs.

Therefore, Table 18.88-3 (Temporary Sign Duration Standards) within Section

18.88.120.C was amended to treat all temporary wall, freestanding, banner, and window signs the same, regardless of material used for the sign, to have a maximum duration of three months.

If the proposed Ordinance is approved, the Code Amendment becomes effective 30

6 days following the adoption of the Ordinance by the City Council. Pursuant to Section

18.114.060 (Findings for Approval), the City Council may approve a zoning code amendment if all the following findings are made:

1. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

2. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

3. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

The proposed amendments are consistent with the above findings as they implement updates to Accessory Dwelling Unit provisions to comply with Senate Bill 477 and Senate Bill 1211, allow reproductive health community clinics by-right to comply with Assembly Bill 2085, provide updates to parking provisions pursuant to Assembly Bill 2097, provide further clarification or expand on certain topics within the Municipal Code and implement minor amendments due to clerical errors and inconsistencies.

PLANNING COMMISSION ACTION:

The Planning Commission reviewed the proposed General Plan text amendments on August 27, 2024. Following discussion, the Planning Commission unanimously approved Resolution No. 24-08 recommending the City Council approve the proposed General Plan text amendments regarding the description of the Mixed Use Flex Designation as presented by staff.

The Planning Commission reviewed the proposed Zoning text amendments on December 10, 2024. Following discussion, the Planning Commission unanimously approved Resolution No. 24-16 recommending the City Council approve the proposed Municipal Code Amendments as presented by staff. The Commission also expressed that the City should explore the need for a future Heritage/Oak Tree ordinance as a future work item. Staff will evaluate the need for a Heritage/Oak Tree ordinance and will report back to the Planning Commission at a future meeting.

COMMUNITY ENGAGEMENT:

Inform
A 10-day public hearing notice was published in the Friday, January 3, 2025, edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notice was also provided on the website and email/social media with the City's 411 distribution.

On August 27, 2024, the Planning Commission held a public hearing regarding the proposed General Plan text amendments in which a 10-day public hearing notice was published in the Friday, August 16, 2024, edition of the Morgan Hill Times. On December 10, 2024, the Planning Commission held a public hearing regarding the proposed Municipal Code amendments in which a 10-day public hearing notice was published in the Friday, November 29, 2024, edition of the Morgan Hill Times.

ALTERNATIVE ACTIONS: