Regular Meeting Agenda
City Council
Mark Turner - Mayor
Yvonne Martínez Beltrán - Mayor Pro Tem
Miriam Vega - Council Member
Marilyn Librers - Council Member
Soraida Iwanaga - Council Member
Wednesday, April 2, 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
April 2, 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
April 2, 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
PROCLAMATIONS
Arts, Culture, and Creativity Month
Donate Life Month
Earth Day
Parkinson's Awareness Month
Women's History Month
PRESENTATIONS
YAC Presentation
VTA Presentation
CITY COUNCIL REPORTS
Council Member Iwanaga
CITY MANAGER'S REPORT
New Hire, Promoted, and Retired Employee Recognitions
CITY ATTORNEY'S REPORT
April 2, 2025
4 OTHER REPORTS
PUBLIC COMMENT
This opportunity for public comment is for items that are not on the agenda. If you would like to make comments on an item that is on the agenda, please wait until we get to that item to offer your comments. Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. Public comment is intended for comments. Questions posed during public comment are not generally answered. If you have questions, please send them to the City Clerk at [email protected] to receive a response. (See additional noticing at the end of this agenda)
Public Comment Supplements
ADOPTION OF AGENDA
CONSENT CALENDAR
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.
1. ACCEPT COMMUNITY LAW ENFORCEMENT FOUNDATION (CLEF)
DONATION IN THE AMOUNT OF $38,364
Recommendation:
Authorize the City Manager to accept a donation from the Community Law Enforcement Foundation (CLEF) in the amount of $38,364 for the purchases of new Police K9 - "Marco Polo" and new expenses related to K9 equipment and training; 60 trauma medical kits; and Police Department challenge coins.
2. ACCEPTANCE OF THE MADRONE CHANNEL TRAIL IMPROVEMENTS PHASE II PROJECT IN THE AMOUNT OF $472,324
Recommendation:
1. Accept as complete the Madrone Channel Trail Improvements Phase II Project;
2. Authorize the City Engineer to sign the Notice of Completion; and
3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.
April 2, 2025
5 3. APPROVE CONSULTANT AGREEMENT WITH MAZE & ASSOCIATES FOR
PROFESSIONAL AUDITING SERVICES
Recommendation:
1. Approve a three-year consultant agreement with Maze & Associates for professional auditing services for the not to exceed amount of $136,078; and
2. Authorize the City Manager to execute and administer the agreement.
4. APPROVE COST SHARE AGREEMENT WITH THE COUNTY OF SANTA CLARA FOR REPAVING OF EAST MAIN AVENUE FOR $341,495
Recommendation:
Authorize the City Manager to execute and administer a cost sharing agreement with the County of Santa Clara for the repaving of East Main Avenue from Condit Road to approximately 830 feet from Elm Road.
5. APPROVE THE MARCH 5, 2025 CITY COUNCIL MEETING MINUTES Recommendation:
Approve minutes.
6. AUTHORIZE WRITE-OFF OF CERTAIN UNCOLLECTIBLE RECEIVABLES IN
ACCORDANCE WITH THE CITY'S WRITE-OFF POLICY
Recommendation:
Authorize write-off of certain uncollectible receivables in the amount of $55,925 in accordance with the City's write-off policy.
7. AUTHORIZE THE CITY MANAGER TO SUBMIT THE APPLICATION FOR
WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT (WIFIA) LOAN WITH THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) TO
FINANCE THE CONSTRUCTION OF A NEW SEWER TRUNK LINE
Recommendation:
Authorize the City Manager to submit the application and address other matters related to the Water Infrastructure Finance and Innovation Act (WIFIA) loan with the U.S. Environmental Protection Agency (EPA) to finance the construction of a new sewer trunk line.
8. APPROVE THE FIRST AMENDMENT TO THE SERVICE MAINTENANCE AGREEMENT WITH PETERSON POWER SYSTEMS, INC. FOR
GENERATOR MAINTENANCE AND REPAIR
Recommendation:
Approve and authorize the City Manager to execute an amendment to increase the not to exceed amount of the generator maintenance agreement with Peterson Power Systems by $157,473. This increase will bring the not to exceed amount to $452,668.
April 2, 2025
6 9. PAVEMENT CONDITION UPDATE AND PAVEMENT REHABILITATION
PLANNING UPDATE
Recommendation:
Receive update.
10. RATIFY CITY POSITION ON PENDING LEGISLATION
Recommendation:
Ratify the City’s position supporting pending legislation, Senate Bill 456 (Ashby) Community Beautification Act.
11. RECEIVE MONTHLY BUDGET UPDATE AND FEBRUARY 2025 FINANCIAL
AND INVESTMENT REPORTS
Recommendation:
Receive and file reports.
OTHER BUSINESS
12. ADOPT RESOLUTION FURTHER REAFFIRMING THE CITY’S COMMITMENT
TO A DIVERSE, SUPPORTIVE, INCLUSIVE COMMUNITY AND PROTECTING
THE CONSTITUTIONAL RIGHTS OF ITS RESIDENTS
Recommendation:
Adopt resolution further reaffirming the City's commitment to a diverse, supportive, inclusive community and protecting its residents' constitutional rights.
FUTURE COUNCIL INITIATED AGENDA ITEMS
Note: in accordance with Government Code Section 54954.2(a), there shall be no discussion, debate and/or action taken on any request other than providing direction to staff to place the matter of business on a future agenda.
ADJOURNMENT
April 2, 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].
April 2, 2025
8
1 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Ray Ramos, Police Captain
APPROVED BY: City Manager
ACCEPT COMMUNITY LAW ENFORCEMENT FOUNDATION (CLEF)
DONATION IN THE AMOUNT OF $38,364
RECOMMENDATION(S)
Authorize the City Manager to accept a donation from the Community Law Enforcement Foundation (CLEF) in the amount of $38,364 for the purchases of new Police K9 - "Marco Polo" and new expenses related to K9 equipment and training; 60 trauma medical kits; and Police Department challenge coins.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Fostering a Positive Organizational Culture
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Public Safety Master Plan
REPORT NARRATIVE:
The Community Law Enforcement Foundation (CLEF) is a non-profit volunteer organization dedicated to supporting and promoting public safety through partnerships that provide resources to enhance the operation of the Police Department. The CLEF Board of Directors and volunteers work to raise funds for the purchase of equipment and materials that fall outside the Department's operating budget. The CLEF Board wishes to provide a donation in the amount of $38,364 for the purchases of new Police K9 - "Marco Polo" and new expenses related to K9 equipment and training; sixty (60) trauma medical kits; and police department challenge coins.
COMMUNITY ENGAGEMENT:
This staff report will serve to inform the community of a donation from CLEF in the amount of $38,364 for the purchases of new Police K9 - "Marco Polo" and new expenses related to K9 equipment and training; sixty (60) trauma medical kits; and police department challenge coins.
1 ALTERNATIVE ACTIONS:
City Council could decide not to accept the donation.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The Council has previously accepted donations from CLEF to enhance the Police Department’s operations every year since 2010. The total donations from CLEF to date have exceeded $300,000.
FISCAL AND RESOURCE IMPACT:
The CLEF donations and corresponding expenditures have been programmed in the current year's budget.
CEQA (California Environmental Quality Act):
Not a Project.
Continuing administrative activities, such as purchases of supplies and equipment, are not a project subject to environmental review.
2 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Kristian Wallace, Associate Engineer
APPROVED BY: City Manager
ACCEPTANCE OF THE MADRONE CHANNEL TRAIL IMPROVEMENTS
PHASE II PROJECT IN THE AMOUNT OF $472,324
RECOMMENDATION(S)
1. Accept as complete the Madrone Channel Trail Improvements Phase II Project;
2. Authorize the City Engineer to sign the Notice of Completion; and
3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
2024-2025 Strategic Priorities
Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Vision Zero
REPORT NARRATIVE:
On February 21, 2024, the Madrone Channel Trail Improvements Phase II Project was awarded to Beals Martin and Associates, Inc. in the amount of $497,324 with a contingency of $49,733. The project scope included the installation of approximately 1.8 miles of 7-foot-wide Class I asphalt concrete trail with a 2-foot-wide aggregate base shoulder from East Main Avenue to Tennant Avenue. The completion of this phase of the trail provides a non-motorized public pathway from Tennant Avenue to Cochrane Road along Madrone Channel and the completion of a key improvement identified in the City's Bikeways, Trails, Parks, and Recreation Master Plan.
Construction of this project began in May 2024 and was substantially complete in February 2025. One change order was authorized to reduce the contract price by $25,000 due to unused bid line items (see Attachment 2). The final construction contract
2 with Beals Martin and Associates, Inc. is $472,324. Staff recommends accepting this project as it has been completed in accordance with the plans and specifications.
Additionally, staff recommends directing the City Clerk to file the Notice of Completion for the project (see Attachment 3).
COMMUNITY ENGAGEMENT:
Inform
Prior to and during construction of this project, City Staff and the Contractor worked closely to notify the public of construction progress and trail closures via the media, social media, and the City's website. An Opening Ceremony was held on February 8, 2025.
ALTERNATIVE ACTIONS:
Accepting the project in accordance with the contract documents is a required process and enables the City to release any retained funds owed to the Contractor per California Public Contract Code Section 7107.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
July 20, 2017 - City Council adopted the Bikeways, Trails, Parks and Recreation Master Plan.
January 23, 2019 - City Council adopted Resolution Authorizing Santa Clara Valley Water District Safe, Clean Water Grant Application.
May 15, 2019 - City Council adopted Resolution Authorizing Transportation Development Act Article 3 Grant Application.
February 19, 2020 - City Council approved Funding Agreement and Budget Amendment for Madrone Channel Trail Impovements Project Grant.
February 21, 2024 - City Council awarded the Madrone Channel Trail Improvements Phase II Project to Beals Martin and Associates, Inc.
FISCAL AND RESOURCE IMPACT:
The final contract amount for the Madrone Channel Trail Improvements Phase II Project is $472,324. The project was awarded to Beals Martin and Associates, Inc. in the amount of $497,324 with a contingency of $49,733 (Total of $547,057). The project is funded within the FY 2023-24 and FY 2024-25 Capital Improvement Program Budget, under project #PR1003, funded by the Park Impact Fund (301).
This project is the recipient of two grants totaling $455,000. Valley Water's Safe, Clean Water Grant was rolled over from the Madrone Channel Trail Improvements Phase I Project and will reimburse $120,000, and Santa Clara Valley Transportation Authority (VTA) 2016 Measure B Bicycle and Pedestrian Capital Projects Competitive Grant Program will reimburse a total of $335,000 of project costs.
2 The unspent $74,733 will be returned to the Park Impact Fund (301).
CEQA (California Environmental Quality Act):
Categorically Exempt.
The proposed improvements of the Madrone Channel Trail Improvements Phase II Project are categorically exempt under CEQA Section 15304, Minor Alteration to Land, which covers minor public or private alterations to the condition of land, water, and/or vegetation which do not include the removal of healthy, mature, or scenic trees for forestry or agricultural purposes, including the creation of bicycle lanes on existing rightof-way.
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community Public Services Department
CIP Engineering Division
Madrone Channel Trail
Improvements Phase ll
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0 0.15 0.3 0.45 0.6 0.075
Miles Page 36 of 189
CIP Contract Acceptance
Funding Closeout Statement
Project:
Project No: PR1003
Date of Project
Award: 21-Feb-24 Project Award Amount: $497,324
Funding Source: F301
Contingency
Authorized: $49,733
Date of Project
Acceptance: 2-Apr-25 Total Authorized: $547,057
Actual Base
Contract Spent: $497,324
Change Orders
Description Date
Council Approval
Reqd? (Y/N)
C.O. #2: Deductive Supplemental Work 11-Feb-25 N -$25,000.00 Total C.O.: -$25,000.00
Additional Appropriations
Source Amount Date
Total
Construction
Amount (Base
Contract plus
CO's): $472,324.00
Construction Fund Balance: $74,733.00
None
Madrone Channel Trail Improvements Phase II
Recording Requested By:
___________________________
When Recorded Mail To:
___________________________
___________________________
___________________________
___________________________
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE
NOTICE OF COMPLETION
Civil Code §§ 8182, 8184, 9204, and 9208
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is the Owner or agent of the Project described below.
2. Owner’s full name is City of Morgan Hill .
3. Owner’s address is 17575 Peak Avenue, Morgan Hill, CA .
4. The nature of Owner’s interest in the Project is:
__ Fee ownership __ Lessee ✓ Other: Joint Use Agreement with Valley Water
5. Construction work on the Project performed on Owner’s behalf is generally described as follows: Installation of approximately 1.8 miles of paved 7-foot-wide Class I asphalt concrete trail with 2-foot-wide aggregate base shoulder and all appurtenances thereto.
6. The name of the original Contractor for the Project is: Beals Martin and Associates, Inc.
7. The Project was completed on: April 2, 2025 .
8. The Project is located at: Madrone Channel from East Main Avenue to Tennant Avenue.
Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct.
__________________________ ________________________________ Signature Date
Scott Creer – City Engineer
3 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
APPROVE CONSULTANT AGREEMENT WITH MAZE & ASSOCIATES
FOR PROFESSIONAL AUDITING SERVICES
RECOMMENDATION(S)
1. Approve a three-year consultant agreement with Maze & Associates for professional auditing services for the not to exceed amount of $136,078; and
2. Authorize the City Manager to execute and administer the agreement.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:
The existing professional auditing services contract with Maze & Associates (Maze) ended with the completion of the prior fiscal year audit. In December 2024, the City issued a Request for Proposals (RFP) to seek professional independent audit services from qualified certified public accounting firms to conduct the annual independent audit of the City's financial transactions and to express an opinion on the fairness of the presentation of the city's financial statements, agreed-upon procedures report on the appropriations limit worksheet, Transportation Development Act (TDA) grants audits and reports, as well as Single Audit for federal awards, as applicable.
Proposals were due on February 17, 2025, and four (4) proposals were received. The firms responding to the request for proposals, and the three-year cost proposals are as follows:
Maze & Associates $136,078
The Pun Group, LLP $161,566
SingerLewak LLP $180,400
Dimov Tax N/A*
*Dimov Tax only submitted a cost for FY 2024-25 of $48,000.
3 The evaluation committee, consisting of finance and public services staff, and the City Treasurer, unanimously recommended awarding the three-year professional auditing services contract, with an option to extend for up to two additional years, to Maze & Associates. Since Maze was the City's most recent auditor, the evaluation committee determined that an interview was unnecessary, as staff are already familiar with their work and are satisfied with the services provided.
Maze & Associates has a solid reputation as a CPA firm, specializing in municipal and non-profit audits. It has been in business over 40 years and annually serves over 200 municipalities, with many similar to Morgan Hill. Government code and Government Finance Officer’s Association’s (GFOA) best practices do not require municipal governments to engage the services of a different audit firm at the end of the audit contract, as the high level of specialized expertise needed to perform a quality audit of a municipal government often limits competition, which means that a requirement to change audit firms at the end of the audit contract could have the unintended effect of forcing a government to engage the services of a less qualified audit firm. Instead, Government Code Section 12410.6(b) requires that the audit partner responsible for reviewing the audit to be rotated after no more than six consecutive fiscal years and GFOA best practices also recommend such rotation to provide a fresh perspective. The current audit partner at Maze & Associates that oversees the Morgan Hill audit has been overseeing the City audit for the last two fiscal years. Staff plan to request a new overseeing audit partner once the current audit partner has reached the six-year threshold.
COMMUNITY ENGAGEMENT:
Inform
The RFP was posted on the city website, and the California Society of Municipal Finance Officers (CSMFO) RFP online service. Staff also emailed the RFP to the known certified public accounting firms.
ALTERNATIVE ACTIONS:
The City Council could decline to approve this agreement with Maze & Associates and direct staff to select an alternative audit firm. This would require additional staff time to conduct a background review of an alternative firm, may result in increased audit costs, and delay in the audit of the current fiscal year.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On September 4, 2019, the City Council approved the consultant agreement with Maze & Associates for professional auditing services.
FISCAL AND RESOURCE IMPACT:
There are sufficient funds in the adopted FY 2024-26 Finance’s operating budget for the next two fiscal year audit services. Subsequent years’ audit services will be budgeted during the biennial budget development process.
3 CEQA (California Environmental Quality Act):
Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
Selection Criteria Maze Pun Group Dimov SingerLewak
1. Mandatory Elements (0-15 points)a. The audit firm is independent and licensed to practice in Californiab. The audit firm’s professional personnel have received adequatecontinuing professional education within the preceding two yearsc. The firm has no conflict of interest about any other workperformed by the firm for the City of Morgan Hilld. The firm submits a copy of its most recent external quality controlreview report, and the firm has a record of quality audit worke. The firm adheres to the instructions in this request for proposals onpreparing and submitting the proposalf. Exception(s) to the City’s Standard Consultant Services Agreementg. Insurance requirements h. City Business License i. Wage Theft Prevention Bid Certification 15 14 4 14
2. Technical Qualification:a. Expertise and Experience (0-40 points) (1) The firm’s experience and performance on comparable government engagements (2) The quality of the firm’s professional personnel to be assigned to the engagementb. Audit Approach (0-25 points) (1) Adequacy of a proposed staffing plan for various segments of the engagement (2) Adequacy of sampling techniques and procedures (3) Preliminary schedule for performing key phases of the audit 61 60 18 57
3. Cost (0-20 points) 20 16 12 13
TOTAL 95 90 34 84
City of Morgan Hill RFP: Professional Auditing Services Summary of Evaluation Committee Scoring
4 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Yat Cho, Senior Project Manager
APPROVED BY: City Manager
APPROVE COST SHARE AGREEMENT WITH THE COUNTY OF SANTA
CLARA FOR REPAVING OF EAST MAIN AVENUE FOR $341,495
RECOMMENDATION(S)
Authorize the City Manager to execute and administer a cost sharing agreement with the County of Santa Clara for the repaving of East Main Avenue from Condit Road to approximately 830 feet from Elm Road.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:
As part of the 2025 Pavement Rehabilitation Project, one of the locations for paving repairs is along East Main Avenue from Condit Road to approximately 830' from Elm Road (Attachment 1 - Vicinity Map). At this location, approximately half of the roadway is City owned/maintained and the other half of the roadway is owned/maintained by the County of Santa Clara. Staff reached out to County of Santa Clara representatives to verify their interest in performing a joint project to repave this section of the roadway and the result is the attached cost share agreement to perform this work (Attachment 2).
The City of Morgan Hill will take the lead on this project and will incorporate this portion as part of the 2025 Pavement Rehabilitation Project. As per the joint use agreement, the County of Santa Clara will pay for their portion of work, any potential change orders, and an additional 10% of their overall costs for design and construction management of the project. The work will consist of cold planing existing pavement, new asphalt pavement, replacement of curb ramps, and replacement of affected traffic striping and other miscellaneous work.
4 COMMUNITY ENGAGEMENT:
Inform
If approved, this portion of the project will be part of the 2025 Pavement Rehabilitation Project.The project engineer, contractor, and other staff members will make best efforts to provide notification prior to and during the course of construction through citywide emails, social media posts, and regular updates on the City website. These updates will also include and inform the community of impacts, roadway closures and possible interruptions that may arise due to construction.
ALTERNATIVE ACTIONS:
The City Council may elect not to approve the agreement at this time and provide staff with alternate direction. This is not recommended as the roadway repavement work is necessary at East Main Avenue.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On January 17, 2024, the City Council received the Pavement Condition Update and Pavement Rehabilitation Planning Update.
FISCAL AND RESOURCE IMPACT:
Funding for this project has been planned and is available in the Capital Improvement Program FY25-26 Budget under project SR5004.
CEQA (California Environmental Quality Act):
Categorical Exemption
The activities described in this Staff Report are categorically exempt under CEQA, specifically pursuant to Section 15301 of the CEQA guidelines (Existing Facilities), as the subject work involves the repair, maintenance, or minor alteration of existing City facilities involving negligible or no expansion of use of those facilities.
Public Services Department
CIP Engineering Division
2025 Pavement Rehabilitation Project
(East Main Avenue) O
820 0 820 1,640 2,460 410
Feet
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community
G:\R-14\Proj\GIS\Agustin\2025 pavement e main.mxd
Project Location
Agreement between County and Page 1 of 12
City of Morgan Hill for
Repaving East Main Avenue
AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA
AND THE CITY OF MORGAN HILL
FOR THE REPAVING OF EAST MAIN AVENUE
This agreement is by and between the County of Santa Clara, a political subdivision of the State of California (“COUNTY”), and the City of Morgan Hill, a California municipal corporation, (“MORGAN HILL”) (“Agreement”). COUNTY and MORGAN HILL may be referred to herein individually as “Party,” or collectively as “Parties.” This Agreement is effective on the last date signed by all Parties (“Effective Date”).
RECITALS
WHEREAS:
A. COUNTY and MORGAN HILL contemplate repaving the following roadways or portions thereof over which COUNTY and MORGAN HILL have jurisdiction: East Main Avenue between Condit Road and 2605’ easterly of Condit Road (“ROAD”); B. It is in the public interest for COUNTY and MORGAN HILL to complete the portions of the PROJECT (as defined in Section 1, below) within their respective jurisdictions in a cooperative and economical manner by constructing both COUNTY and MORGAN HILL portions of the PROJECT together;
C. The Parties acknowledge MORGAN HILL is the California Environmental Quality Act (CEQA) Lead Agency for the PROJECT, and MORGAN HILL’s, compliance with CEQA is a precondition to construction of any portion the PROJECT, including COUNTY’s portion.
In consideration of the above referenced recitals and the following mutual covenants, agreements, and obligations of the parties, COUNTY and MORGAN HILL agree as follows:
AGREEMENT PROVISIONS
1. PROJECT DESCRIPTION:
The work to be performed on the ROAD will consist of cold planing existing pavement, new asphalt pavement, replacement of curb ramps, replacement of traffic markings, markers, and legends. The locations of work to be performed are more fully described in Exhibit A, “Scope of Work and Schedule of Performance,” and depicted on Exhibits B-1, all of which are attached hereto and incorporated by reference (“PROJECT”). COUNTY will be responsible for 100% of COUNTY PROJECT cost within its jurisdiction, as well as an administrative fee to compensate MORGAN HILL’s costs in administering the project.
2. COUNTY’S OBLIGATIONS:
COUNTY agrees as follows:
A. Pay MORGAN HILL for COUNTY’s share of the PROJECT costs plus an additional 10% for Project Delivery Costs (defined below), the total sum of which shall comprise the
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COUNTY Construction Cost for the entire PROJECT. COUNTY’s cost under this Agreement shall be in the total monetary sum of THREE HUNDRED FORTY-ONE THOUSAND FOUR HUNDRED NINETY FIVE dollars and TWENTY FIVE cents ($341,495.25) (“COUNTY Construction Cost”). The COUNTY Construction Cost shall comprise COUNTY’s total monetary obligation under this Agreement, subject to Subsection C, below.
B. “Project Delivery Costs” is defined as engineering, construction management, and all associated management and administrative services provided by MORGAN HILL for the PROJECT.
C. The Parties understand that the COUNTY Construction Cost is based in part upon the engineer’s estimates and prior to public works bidding for the PROJECT, as set forth in Exhibit B, and is subject to change. The Parties acknowledge that the final COUNTY Construction Cost will be based on actual amounts incurred by MORGAN HILL for work on COUNTY’s ROAD. To the extent the COUNTY Construction Cost needs to be modified by change order to the construction contract, MORGAN HILL will notify COUNTY at least seven working days in advance of the change order being executed.
D. To pay the COUNTY Construction Cost within forty-five (45) business days of receiving the detailed invoice from MORGAN HILL, provided that the following conditions are met:
1. The PROJECT has been completed and COUNTY has approved the portion of the work in its jurisdiction within a reasonable time. Acceptance by COUNTY shall be made in writing to MORGAN HILL. COUNTY may request documentation of such costs and may review the original invoices and weight certificates or request copies of same, which shall be provided within a reasonable time.
2. The detailed invoice sets forth the cost of construction of all PROJECT work based on the actual contract unit prices paid and negotiated change order(s), if any.
3. MORGAN HILL shall invoice COUNTY only one (1) time which shall occur after PROJECT completion, and this invoice shall be considered the final detailed invoice for the PROJECT, including the COUNTY Construction Cost.
E. To assign as the designated project manager for COUNTY for the duration of the PROJECT Gavin Finley (email: [email protected]). COUNTY’s project manager shall have all the necessary authority to review and approve and accept technical and professional work within the scope of the Agreement and shall serve as the principal point of contact for COUNTY.
3. MORGAN HILLS’S OBLIGATIONS:
MORGAN HILL agrees as follows:
A. To design and construct the PROJECT. Performance shall include preparation of specifications, contract documents, and cost estimate; notification of local businesses; coordination with various agencies; preparation of all necessary environmental documents; obtaining permits; soliciting and obtaining bids; awarding the construction agreement;
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administering the construction agreement; providing materials control and inspection services; and making progress payments to the contractor.
B. To promptly provide COUNTY with final specifications and contract documents for the PROJECT.
C. To cooperate with COUNTY should COUNTY raise any issues concerning the work in COUNTY’s jurisdiction that requires correction prior to acceptance or within the warranty period of the PROJECT.
D. To assign as the designated project manager for MORGAN HILL for the duration of the PROJECT Yat Cho or Nolen Ugalde (email: [email protected] or [email protected]). MORGAN HILL’s project manager shall have all authority to direct the work within the scope of the Agreement and shall serve as the principal point of contact for MORGAN HILL.
E. To keep and maintain a complete copy of all records regarding costs and expenditures relating to the PROJECT, together with a complete copy of all plans, specifications, reports, contracts, and other documents relating to the PROJECT, and the same shall be available for inspection by COUNTY at any time during MORGAN HILL business hours.
F. To allow COUNTY reasonable access to the PROJECT sites, at reasonable times and upon advance notice, to perform observation of any work on the COUNTY portion of the PROJECT.
G. To provide COUNTY with a copy of as-built record drawings for the PROJECT including specifically the COUNTY portion thereof.
H. To include in its contract with the construction contractor for the PROJECT, a requirement that the contractor include COUNTY, its officials, officers, employees, and agents as additional insureds, and that the contractor indemnify COUNTY, its officials, officers, employees, and agents to the same extent that MORGAN HILL is indemnified.
I. To include a clause in its contract with the construction contractor for the PROJECT that COUNTY is an intended third-party beneficiary of the construction contract.
J. To require that the construction contractor for the PROJECT obtain all required permits and approvals for all PROJECT work, including work associated with the COUNTY portion thereof.
K. To provide a final accounting of all PROJECT costs associated with the COUNTY portion of the PROJECT to COUNTY within thirty (30) calendar days after the Parties accept the PROJECT as complete.
4. TERM OF AGREEMENT:
A. Unless otherwise modified by a written amendment to this Agreement, the term of this Agreement shall be until PROJECT acceptance by both Parties and expire upon final payment of all outstanding balances.
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B. MORGAN HILL shall cause the construction contractor to provide a warranty period of at least one (1) year from the acceptance date.
5. OWNERSHIP AND MAINTENANCE:
A. Upon completion of all work under this Agreement, ownership and title to all materials, equipment, and appurtenances installed as a part of the PROJECT within COUNTY’s jurisdictional limits will automatically be vested in COUNTY, and all materials, equipment, and appurtenances installed within MORGAN HILL’s jurisdictional limits will be vested in MORGAN HILL, and no further agreement will be necessary to transfer ownership.
B. Nothing in this Agreement shall be construed to alter any authority or responsibility between COUNTY and MORGAN HILL with regard to maintenance, operation, or further repair responsibility for the ROAD.
6. CONTRACTOR SHALL BE AN INDEPENDENT CONTRACTOR:
Any contractor(s) hired by either Party to perform the work included in the PROJECT shall not be an agent or employee of either Party and will perform such work as an independent contractor.
All persons employed by or contracted with such contractor(s) to furnish labor and/or materials in connection with the work in the PROJECT shall not be employees of either Party in any respect.
7. TERMINATION:
Once MORGAN HILL has awarded the construction contract for the PROJECT, the Agreement can be terminated only upon the mutual written consent and terms acceptable to both Parties.
8. NO PLEDGING OF EITHER PARTY’S CREDIT:
Under no circumstances shall either COUNTY or MORGAN HILL have authority or power to pledge the credit of the other Party or incur obligation in the name of the other Party.
9. NO THIRD PARTY BENEFICIARIES:
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
10. AMENDMENTS:
No alternation or violation of the terms of this Agreement shall be valid unless made in writing and signed by the parties and incorporated into this Agreement.
11. NOTICES:
Notices are to be sent as follows:
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To MORGAN HILL: Yat Cho or Nolen Ugalde
Project Engineer
Public Services Department CIP Division
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
To COUNTY: Chris Lamm
Deputy Director
Roads and Airports Department
County of Santa Clara
101 Skyport Drive
San José, CA 95110
12. SEVERABILITY CLAUSE:
If one or more of the provisions contained herein shall, for any reason, be held invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, it shall not affect the validity of the other provisions which shall remain in full force and effect.
13. ENCROACHMENT PERMITS:
MORGAN HILLS’s construction contractor shall obtain all required encroachment permits for work on the PROJECT within COUNTY’s jurisdiction from COUNTY and COUNTY shall provide all such permits at no cost.
14. CAPTIONS:
The captions of the various sections, paragraphs, and subparagraphs of this Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation of this Agreement.
15. INDEMNIFICATION:
In lieu of and notwithstanding the pro rata risk allocation which might otherwise be imposed between the Parties pursuant to Government Code section 895.6, the Parties agree that all losses or liabilities incurred by Party shall not be shared pro rata but, instead, COUNTY and MORGAN HILL agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such party under this Agreement. No party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other Parties hereto, their officers, board members, employees, or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such other Parties under this Agreement.
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16. INSURANCE REQUIREMENTS:
MORGAN HILL shall require any contractor awarded a contract for any portion of the work to be done on the PROJECT to secure and maintain in full force and effect at all times during construction and performance of the PROJECT, and until said PROJECT is accepted by all Parties to this Agreement, and any other time periods specified in the 2025 Pavement Rehabilitation Project contract documents, insurance coverage described below, at no additional cost to either COUNTY or MORGAN HILL, with coverage amounts, required endorsements, certificates of insurance, and coverage verifications satisfactory and acceptable to all Parties. COUNTY, its Board of Supervisors, commissions, officers, employees, volunteers, and agents shall be added as additional insureds on the commercial general liability policy with respect to liability arising out of the contractor's work for MORGAN HILL on the PROJECT.
It is mutually understood that during the term of the construction activities on the PROJECT, MORGAN HILL will require the construction contractor to carry commercial general liability in amounts of not less than Two Million Dollars ($2,000,000) per occurrence; automobile liability in an amount not less than Two Million Dollars ($2,000,000) per accident; and a Workers' Compensation Insurance policy as required by the State of California, with Statutory and Employer’s Liability Insurance limits of not less than One Million Dollars ($1,000,000).
17. STATUTES AND LAW GOVERNING CONTRACT:
This Agreement shall be governed and construed in accordance with the statues and laws of the State of California. MORGAN HILL shall require that any contractor awarded a contract for any portion of the work to be done on the PROJECT comply with the requirements for prevailing wage under Labor Code section 1770, et seq. The PROJECT shall be paid for and constructed in accordance with all ordinances, resolutions, rules, regulations, and laws of the applicable jurisdiction.
18. WAIVER:
The Parties’ waiver of any term, condition or covenant, or breach of any term, condition or covenant shall not be construed as a waiver of any other term, condition or covenant or breach of any other term, condition, or covenant.
19. ENTIRE AGREEMENT:
This Agreement contains the entire Agreement between COUNTY and MORGAN HILL in relation to the PROJECT. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect.
20. COUNTERPARTS; ELECTRONIC SIGNATURES
This Agreement may be executed in any number of counterparts, and all of such counterparts so executed together shall be deemed to constitute one and the same agreement, and each such counterpart shall be deemed to be an original provided all of the Parties have fully executed the Agreement. Unless otherwise prohibited by law or COUNTY policy, the Parties agree that an
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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 COUNTY.
21. EFFECTIVE DATE:
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is intent of the Parties that this Agreement shall become operative on the effective date.
COUNTY:
By:______________________________
Otto Lee
President, Board of Supervisors
Date:_____________________________
MORGAN HILL:
By:______________________________
Christina Turner – City Manger
Date:_____________________________
Signed and certified that a copy of this document has been delivered by electronic or other means to the President, Board of Supervisors
ATTEST:
By:______________________________
Curtis Boone
Acting Clerk of the Board of Supervisors
Date:_____________________________
APPROVED AS TO FORM AND LEGALITY:
By:______________________________
John A. Castro
Deputy County Counsel
APPROVED AS TO FORM:
By:______________________________
Don Larkin
City Attorney
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EXHIBIT A
SCOPE OF WORK AND SCHEDULE OF PERFORMANCE
The PROJECT consists of cold planing existing pavement, new asphalt pavement, replacement of curb ramps, and replacement of affected traffic striping on the areas specified below:
1. Approximately 4,950 square yards of East Main Avenue between Condit Road and 2605’ easterly of Condit Road is within COUNTY’s jurisdiction.
MORGAN HILL is to deliver the PROJECT and prepare pavement design and striping plans within the PROJECT limits.
The work to be performed, including the PROJECT duration/schedule of performance, is fully described in MORGAN HILL’s 2025 Pavement Rehabilitation Project contract documents. The above-mentioned contract documents are herein incorporated to this Agreement by reference. To the extent there is any conflict between MORGAN HILL’s incorporated contract documents and this Agreement, the terms of this Agreement shall govern.
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EXHIBIT B
COST ESTIMATE - COUNTY
Bid Item Description Quantity Unit Unit
Price
Bid Item
Total
Mobilization (up to 5%) 1 LS $12,155.63 $12,155.63
Traffic Control Systems 1 LS $24,311.25 $24,311.25
Remove Pavement Striping, Markings, and Makers 1 LS $5,000.00 $5,000.00 3” Full Pavement Grind/Mill 44550 SF $1.15 $51,232.50
3” Fill (1/2” HMA Overlay) 850 TONS $155.00 $131,750.00 3” Asphalt Concrete Pavement Repair (Digout) 2230 SF $5.00 $11,150.00 Shoulder Backing 28 TONS $200.00 $5,600.00
Locate, Lower and Raise Monument Box and
Cover
12 EA $1,000.00 $12,000.00
Locate, Lower and Raise Water Valve Box and
Cover
12 EA $1,000.00 $12,000.00
Remove and Replace existing ADA Curb Ramp 1 EA $10,000.00 $10,000.00 High Visibility X-Walk Striping – 12” Yellow 24 LF $16.00 $384.00 High Visibility X-Walk Striping – 24” Yellow 30 LF $20.00 $600.00 Type IV (L) Arrow 1 EA $225.00 $225.00
Type I (10) Arrow 1 EA $225.00 $225.00
Yellow Word Marking "XING" 1 EA $275.00 $275.00
Yellow Word Marking "SCHOOL" 1 EA $275.00 $275.00
Yellow Word Marking "SLOW" 1 EA $275.00 $275.00
White Word Marking "35" 1 EA $275.00 $275.00
Caltrans Detail 22 94 LF $5.00 $470.00
Caltrans Detail 27B 1920 LF $3.00 $5,760.00
Caltrans Detail 29 86 LF $6.00 $516.00
Two-Way Blue Fire Hydrant Marker 5 EA $20.00 $100.00
SUBTOTAL $284,579.38
10% CONTINGENCY $28,457.94
10% ADMINISTRATION $28,457.94
TOTAL COUNTY CONSTRUCTION COST $341,495.25
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EXHIBIT B-1
Figure: East Main Avenue Project Limit and Location Map `
City Council
Meeting Minutes
Mark Turner - Mayor
Yvonne Martínez Beltrán - Mayor Pro Tem
Soraida Iwanaga - Council Member
Marilyn Librers - Council Member
Miriam Vega - Council Member
Wednesday, March 5, 2025 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 Mark Turner, Yvonne Martinez Beltran, Soraida Iwanaga, Marilyn Librers, Miriam Vega
ABSENT None
DECLARATION OF POSTING AGENDA
City Clerk Michelle Bigelow declared the posting of the agenda.
SILENT INVOCATION
PLEDGE OF ALLEGIANCE
PROCLAMATIONS
Youth Arts Month
March 5, 2025
2 PRESENTATIONS
YAC Presentation
CITY COUNCIL REPORTS
Council Member Vega shared that she attended the Advent Group Ministry grand opening of their new building in San Jose. She also attended Coffee with the Mayor where City staff talked about housing and development projects. She also attended the Sutter Health Care Center Grand opening.
CITY MANAGER'S REPORT
City Manager Christina Turner provided the following updates:
Morgan Hill welcomes its newest team member, K9 Marco Polo. This 2-year-old German Shepherd from the Czech Republic will undergo extensive training with K9 Officer Matt Gallagher for patrol and explosive detection. Once training is complete, you can expect to see them out in the community.
On February 23rd, the City discovered thieves had stolen copper wiring from streetlights along Butterfield Boulevard. The theft caused several streetlights to lose power, though traffic signals remained unaffected. Thanks to a City employee’s quick actions on February 25th, police arrested two suspects linked to the crime. The estimated damage exceeds $20,000. In a separate incident, officers responded to suspicious activity near NAPA Auto and arrested two suspects attempting a break-in.
They were found hiding nearby, covered in soot, with evidence connecting them to the crime.
The community is invited to attend Mayor Turner's State of the City Address on March 12th at the Granada Theater. Doors open at 5:30 p.m., with the program beginning at 6 p.m. For those unable to attend in person, a recording will be available on the City’s YouTube channel.
With the arrival of March, the City reminds residents that lawn watering is now limited to three days per week through October. Details on the watering schedule can be found on the City’s water conservation website. Meanwhile, road closures on Hale Avenue began on March 3rd as part of the Upper Llagas Flood Protection Project. This construction will impact traffic for the next eight months, with closures affecting Hale Avenue, Spring Avenue, and Cosmo Avenue. More information is available on the City’s CIP website.
Looking ahead, the Community Drop-Off Day is set for March 8th. Residents and businesses can dispose of electronic waste, mattresses, and tires for free. The event, hosted in partnership with the Morgan Hill Chamber of Commerce and Zero Waste Silicon Valley, will take place at the Community & Cultural Center from 9 a.m. to 1 p.m.
More details are available at ZeroWasteSV.org.
Finally, Morgan Hill’s Parks & Recreation summer activity guide will be available online
March 5, 2025
3 starting March 21st. Registration for camps and programs opens on March 24th, followed by swim lesson sign-ups on March 26th. Residents are encouraged to explore the many fun and healthy opportunities for youth, adults, and seniors.
CITY ATTORNEY'S REPORT
None.
OTHER REPORTS
Mayor Pro Tem Martinez Beltran shared that she attended the Cal Cities Board of Directors meeting in Ontario. She shared that there was discussion on legislation regarding copper wire theft that is happening throughout the state. She also attended the Latino Caucus meeting, the Chamber Board of Directors meeting for the Morgan Hill Chamber, a Silicon Valley Clean Energy executive meeting, the Sutter Health grand opening, and a play in pure sign language this weekend. She worked with Nueva Esperanza on another Know Your Rights workshop.
Council Member Librers shared that she participated in the Chamber of Commerce's Rock the Mock event.
PUBLIC COMMENT
Public comment opened at 6:24 p.m. The following people were called to speak:
Kathy Chavez Napoli
Steve Chappell
There were no further requests to speak, so the public comment was closed.
Public Comment Supplements
ADOPTION OF AGENDA
MOTION:
Adopting the agenda as posted.
RESULT: Passed
MOVER: Council Member Librers
SECONDER: Council Member Iwanaga
AYES: Mayor Turner, Mayor Pro Tem Martinez Beltran, Council Member Iwanaga, Council Member Librers, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None
March 5, 2025
4 CONSENT CALENDAR
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.
MOTION:
Approving the consent calendar items 1, 2, and 4 through 8.
RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
SECONDER: Council Member Librers
AYES: Mayor Turner, Mayor Pro Tem Martinez Beltran, Council Member Iwanaga, Council Member Librers, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None
1. ACCEPTANCE OF THE CONDIT ROAD SEWER CAPACITY UPGRADE PROJECT IN THE AMOUNT OF $1,895,930
Recommendation:
1. Accept as complete the Condit Road Sewer Capacity Upgrade Project;
2. Authorize the City Engineer to sign the Notice of Completion; and
3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.
2. ADOPT A RESOLUTION AUTHORIZING GRANT APPLICATIONS FOR
GRANT FUNDS FROM VALLEY WATER'S SAFE, CLEAN WATER AND
NATURAL FLOOD PROTECTION PROGRAM
Recommendation:
Adopt a resolution authorizing the City Manager to submit grant applications for grant funds from Valley Water's Safe, Clean Water and Natural Flood Protection Program.
4. ADOPT ORDINANCE NO. 2363, NEW SERIES 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, AMENDING SECTION 17.20.040 (FORM AND CONTENTS) OF CHAPTER 17.20 (MAP REQUIREMENTS-FIVE OR MORE PARCELS) AND SECTION 17.24.030 (FORM AND CONTENT) OF
March 5, 2025
5 CHAPTER 17.24 (MAP REQUIREMENTS-FOUR OR LESS PARCELS) WITHIN TITLE 17 (SUBDIVISIONS) OF THE MUNICIPAL CODE OF THE CITY OF
MORGAN HILL IMPLEMENTING MINOR AMENDMENTS DUE TO
INCONSISTENCIES, AND AMENDING 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) WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL CODE
OF THE CITY OF MORGAN HILL TO REMOVE THE MAXIMUM FLOOR AREA
RATIO (FAR) AND BUILDING COVERAGE WITHIN THE (MIXED USE FLEX)
MU-F ZONING DISTRICT
Recommendation:
Waive the reading, adopt Ordinance No. 2363, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.
5. APPROVE REVISIONS TO CITY COUNCIL POLICY CP 94-04, THE CITY'S
INVESTMENT POLICY
Recommendation:
Approve revisions to City Council Policy CP 94-04, the City's Investment Policy.
6. APPROVE THE FEBRUARY 7, 2025 GOAL REVIEW WORKSHOP MEETING MINUTES AND THE FEBRUARY 19, 2025 CITY COUNCIL MEETING
MINUTES
Recommendation:
Approve minutes.
7. AWARD ON-CALL GENERAL CONTRACTOR SERVICES CONTRACTS
Recommendation:
1. Award two-year on-call public works contracts for general contractor services to Castlewood Construction Company, Inc., Pueblo Construction, Inc. and Tucker Construction, Inc. in a not-to-exceed amount of $220,000 each; and
2. Authorize the City Manager to execute and administer the contracts.
8. RECEIVE MONTHLY BUDGET UPDATE AND JANUARY 2025 FINANCIAL
AND INVESTMENT REPORTS
Recommendation:
Receive and file reports.
March 5, 2025
6 ITEM PULLED FOR DISCUSSION
3. ADOPT EDITS TO THE SUSTAINABLE MORGAN HILL DOCUMENT
Recommendation:
Adopt edits to the Sustainable Morgan Hill document.
City Manager Christina Turner provided the report.
Public comment opened at 6:39 p.m. There were no requests to speak, so public comment was closed.
MOTION:
Adopting the updated Sustainable Morgan Hill Document with the addition of electricity to the second bullet of the healthy communities definition.
RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
SECONDER: Council Member Vega
AYES: Mayor Turner, Mayor Pro Tem Martinez Beltran, Council Member Iwanaga, Council Member Librers, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None
OTHER BUSINESS
9. CONSIDER ADOPTION OF A RESOLUTION AUTHORIZING THE DISPLAY
OF THE DONATE LIFE FLAG
Recommendation:
Adopt or do not adopt a resolution authorizing the display of the Donate Life Flag for the month of April.
Assistant City Manager/Public Services Director Chris Ghione provided the report.
Public comment opened at 6:43 pm. There were no requests to speak, and public comment was closed.
MOTION:
Adopting the resolution.
RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
March 5, 2025
7 SECONDER: Council Member Iwanaga
AYES: Mayor Turner, Mayor Pro Tem Martinez Beltran, Council Member Iwanaga, Council Member Librers, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None
10. ADOPT RESOLUTION FURTHER REAFFIRMING THE CITY’S COMMITMENT
TO A DIVERSE, SUPPORTIVE, INCLUSIVE COMMUNITY AND PROTECTING
THE CONSTITUTIONAL RIGHTS OF ITS RESIDENTS
Recommendation:
Adopt resolution further reaffirming the City's commitment to a diverse, supportive, inclusive community and protecting its residents' constitutional rights.
City Attorney Donald Larkin provided the report.
Public comment opened at 7:04 p.m. The following people were called to speak:
Kathy Chavez Napoli
Victoria Lam, Office of Supervisor Sylvia Arenas
Greer Rolin
Julee Klein
Armando Benavides
Sally Casas
Zain Yamma
Sarah Miller
Deborah Africa
Jeremy Barousse (Zoom)
Noshaba Afzal (Zoom)
Huy Tran (Zoom)
Wendy Greenfield (Zoom)
Najma Bachelani (Zoom)
There were no further requests to speak, so the public comment was closed.
MOTION:
Continue the item to the next meeting and direct staff to update the resolution incorporating changes proposed in writing by Mayor Pro Tem Martinez Beltran.
RESULT: Failed for lack of a second
MOVER: Mayor Pro Tem Martinez Beltran
SECONDER: None
MOTION:
Adopting the resolution, incorporating the following change proposed by Council Member Vega: "hereby reaffirms all previous resolutions, policies, and actions approved by past City Councils regarding the protection of immigrants, and they remain in full force."
March 5, 2025
8 RESULT: Substituted
MOVER: Council Member Vega
SECONDER: Council Member Iwanaga
SUBSTITUTE MOTION:
Continue the item to the next meeting and direct staff to update the resolution incorporating changes proposed in writing by Mayor Pro Tem Martinez Beltran and Council Member Vega.
RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
SECONDER: Council Member Librers
AYES: Mayor Pro Tem Martinez Beltran, Council Member Vega, Council Member Librers
NAYS: Mayor Turner, Council Member Iwanaga
ABSTAIN: None
ABSENT: None
The meeting recessed at 7:59 p.m. and reconvened at 8:08 p.m.
11. PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL
INITIATED AGENDA ITEM REGARDING USE OF CELL PHONES DURING
COUNCIL MEETINGS
Recommendation:
Determine if the majority of the City Council wants the following item agendized at a future meeting for discussion:
Prohibiting the use of cell phones by Council Members during Council meetings.
City Manager Christina Turner provided the report.
Public comment opened at 8:28 p.m. The following people were called to speak:
Julee Klein
Deborah Africa
Armando Benavides
Kathy Chavez Napoli
There were no further requests to speak, so the public comment was closed.
MOTION:
Review the policy and spell out texting during the meeting.
RESULT: Failed
MOVER: Council Member Librers
March 5, 2025
9 SECONDER: None
AYES: None
NAYS: None
ABSTAIN: None
ABSENT: None
FUTURE COUNCIL INITIATED AGENDA ITEMS
Mayor Pro Tem Martinez Beltran requested a conversation about land acknowledgment statement during City Council Meetings.
Mayor Pro Tem Martinez Beltran requested a Know Your Rights event partnering with the City and Nueva Esperanza.
Mayor Pro Tem Martinez Beltran requested a proclamation for the April 2nd City Council meeting to mark Women's History Month.
ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:42 p.m. in honor of former Mayor and Council Woman Lorraine Barke.
Minutes Prepared by:
Michelle Bigelow, City Clerk
6 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
AUTHORIZE WRITE-OFF OF CERTAIN UNCOLLECTIBLE
RECEIVABLES IN ACCORDANCE WITH THE CITY'S WRITE-OFF
POLICY
RECOMMENDATION(S)
Authorize write-off of certain uncollectible receivables in the amount of $55,925 in accordance with the City's write-off policy.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:
While Finance staff make every effort to collect unpaid receivables, some inevitably become uncollectible and must be removed from the general ledger. It is the City's policy to actively pursue collections, regularly review the status of past-due accounts, and write off amounts determined to be uncollectible. It is also best practice to write off (remove) uncollectible amounts from the general ledger account balances to prevent overstating the City's assets.
A recent review identified certain receivables which were deemed uncollectible and all efforts to recover the amounts owed have been exhausted. As a result, staff is recommending that the City Council authorize staff to write off $55,925 in uncollectible receivables.
COMMUNITY ENGAGEMENT:
Inform
This staff report serves to inform the community of the proposed write-off of certain uncollectible receivables.
ALTERNATIVE ACTIONS:
6 Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On June 21, 2023, City Council authorized the write-off of certain uncollectible receivables in the amount of $161,494.
FISCAL AND RESOURCE IMPACT:
The write-off amount of $55,925 would decrease the receivables in the General Fund.
CEQA (California Environmental Quality Act):
Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
Cust # Customer Name Invoice # Description Amount
12337 RAVIKANT JAIRAM IYER 325032 HYDRANT DAMAGE $5,482.72 12954 TIFFANY NICOLE BENNETTALEMAN 328717 PROP DAMAGE: LIGHT POLE $5,835.07 12878 ROJAS, MIKHALA MARIE 328413 PD VEHICLE DAMAGE $6,450.16 12929 LAKTINEH, ELIAS 328582 PROP DAMAGE: LIGHT POLE $7,066.95 13041 COLE CLAYTON 218 EMERGENCY RESPONSE $7,206.74
12894 THURSTON, DAVID 328470 PROP DAMAGE: LIGHT POLE $7,236.14 12955 IMELDA RODRIGUEZ PENA 328716 PROP DAMAGE: LIGHT POLE $8,090.41 12897 DIRECT DRILLING 328475 10" WATER MAIN $8,556.83
$55,925.02
7 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
AUTHORIZE THE CITY MANAGER TO SUBMIT THE APPLICATION
FOR WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT
(WIFIA) LOAN WITH THE U.S. ENVIRONMENTAL PROTECTION
AGENCY (EPA) TO FINANCE THE CONSTRUCTION OF A NEW
SEWER TRUNK LINE
RECOMMENDATION(S)
Authorize the City Manager to submit the application and address other matters related to the Water Infrastructure Finance and Innovation Act (WIFIA) loan with the U.S.
Environmental Protection Agency (EPA) to finance the construction of a new sewer trunk line.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
Economic Development and Tourism
Healthy Community
Guiding Documents
Wastewater System Master Plan
REPORT NARRATIVE:
The new parallel sewer trunk line, which will increase the current capacity, is included in the City of Morgan Hill's Adopted FY2024-25 to FY2029-30 Capital Improvement Program (CIP). The designs for the new trunk line are 99% complete, and staff plans to issue the request for proposals later this year. The project is estimated to cost $69 million, with 25% of the cost attributed to existing users, which will be funded by the Wastewater Operating Fund (640), and 75% attributed to future users, which will be funded by the Wastewater Impact Fee Fund (641).
7 Both the Adopted CIP and the 2024 Wastewater Rate Study plan for debt financing for the new trunk line project. The City has been invited to apply for a Water Infrastructure Finance and Innovation Act (WIFIA) loan through the U.S. Environmental Protection Agency (EPA). The WIFIA program, established by the Water Infrastructure Finance and Innovation Act of 2014, is a federal credit program administered by the EPA for eligible water and wastewater infrastructure projects. It offers long-term, low-cost supplemental loans for regionally and nationally significant projects.
A key feature of the program is that it only funds projects with a minimum project size of $20 million for large communities (population over 25,000), with a maximum funding amount of up to 49% of the total eligible project cost. This means the City is eligible to receive a loan of up to approximately $34 million of the total estimated project cost of $69 million.
There are several reasons why staff is seeking to finance the new sewer trunk line project with a WIFIA loan. These include a lower interest rate compared to standard bond issuance, a flexible loan term (up to 35 years), and a customizable repayment plan. Additionally, the WIFIA loan is a reimbursement-based loan rather than an advance funding loan. The City will only need to request reimbursement for eligible costs as needed, ensuring that it only finances and pays interest on the amount drawn.
Furthermore, the program allows for a one-time interest rate adjustment from the time the loan is approved until before the first loan drawdown.
COMMUNITY ENGAGEMENT:
Inform
The City has shared information on the sewer Trunk Line through its design process on the City website. The City is also working collaboratively with the County of Santa Clara and the City of Gilroy on permitting and future communication as the construction impacts will occur outside of Morgan Hill and within County and City of Gilroy jurisdiction. This staff report serves to inform the community of the proposed WIFIA loan application with the U.S. EPA to finance the construction of a new sewer trunk line.
ALTERNATIVE ACTIONS:
The City Council could direct City staff to seek financing from other funding sources for the new sewer trunk line. However, this is not recommended, as the WIFIA loan currently offers the most advantageous terms and flexibility.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On June 19, 2024, the City Council adopted the FY2024-25 through FY2029-30 Capital Improvement Program with the New Sewer Trunk Line (Project No. WW3008).
FISCAL AND RESOURCE IMPACT:
Submitting the loan application requires a refundable application fee of $100,000. The total cost of the loan typically ranges from $150,000 to $250,000 for most borrowers to
7 reimburse the EPA for the cost of providing credit assistance and retaining expert firms, including financial, engineering, and legal services, to assist in the underwriting and servicing of federal credit instruments in the field of municipal and project finance.
Sufficient funding is available in the Sewer Operating and Impact Fee Funds (640 and 641) to cover the initial application fee for the WIFIA loan.
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.
The WIFIA program accelerates investment in our nation’s water infrastructure by providing long-term, low-cost
supplemental loans for regionally and nationally significant projects. The WIFIA program was established by the Water Infrastructure Finance and Innovation Act of 2014.
ELIGIBILITY
Eligible borrowers
• Local, state, tribal, and federal government entities • Partnerships and joint ventures
• Corporations and trusts
• Clean Water and Drinking Water State Revolving Fund
(SRF) programs
WIFIA can fund development and
implementation activities for eligible projects
• Wastewater conveyance and treatment projects
• Drinking water treatment and distribution projects
• Enhanced energy efficiency projects at drinking water and wastewater facilities
• Desalination, aquifer recharge, and water
recycling projects
• Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project
• A combination of eligible projects secured by a common security pledge or submitted under one application by
an SRF program
FUNDING AVAILABILITY
EPA announces WIFIA funding availability
and application process details in the Federal
Register and on its website.
IMPORTANT PROGRAM FEATURES
$20
MI L
35 Y E AR S
Y
$5 49%
M I L
Minimum project size for large
communities.
$20
MI L
35 Y E AR S
5 Y E AR S
$5 49%
M I L
Minimum project size for small
communities (population of 25,000
or less).
$20
MI L
35 Y E AR S
5 Y E AR S
$5 49%
M I L
% Maximum portion of eligible project
costs that WIFIA can fund.
$20
MI L
35 Y E AR S
5 Y E AR S
$5 49%
M I L
% Maximum final maturity date from
substantial completion.
$20
MI L
35 Y E AR S
5 Y E AR S
$5 49%
M I L
%
$20
MI L
35 Y E AR S
5 Y E AR S
$5 49%
M I L
%
35 Y E AR S
5 Y E AR S
49%
%
35 Y E AR S
5 Y E AR S
$5 49%
M I L
%
Maximum time that repayment may
be deferred after substantial
completion of the project.
Interest rate will be equal or
greater to the US Treasury rate of
a similar maturity.
Projects must be creditworthy.
NEPA, Davis-Bacon, American Iron
and Steel, Buy America, Build
America, and all federal cross-cutter
provisions apply.
STAY IN TOUCH
WEBSITE: www.epa.gov/wifia E MAIL: [email protected]
Sign-up to receive announcements about the WIFIA program at https://tinyurl.com/wifianews
November 2016 EPA-830-F-16-003
02/24/2025
Mr. Chris Ghione
Assistant City Manager for Public Services
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
Subject: City of Morgan Hill Selection Notification
Dear Mr. Ghione,
Thank you for submitting your Water Infrastructure Finance and Innovation Act (WIFIA) letter of interest. We have reviewed these materials and are very pleased to inform you that the Sewer Trunk Line Project has been selected to submit an application and has been assigned the WIFIA ID number 24109CA.
You are being invited to apply for a loan for up to $33,940,053 but not to exceed 49 percent of total eligible project costs. We have administratively reserved funding for your project and will hold this funding as long as we receive your application by 3/31/2026. You may request an increase in your loan amount during the application process.
Loan increase requests will be reviewed on a case-by-case basis and are subject to the availability of funding.
We will soon be reaching out to you to schedule an initial pre-application meeting to discuss the WIFIA process in greater detail. Amelia Letnes will be your point of contact and is available by e-mail at [email protected] or by phone at (202) 564-5627 to answer any immediate questions you may have.
Once we receive your complete application, the WIFIA team will commence underwriting your transaction.
Receipt of a WIFIA loan remains subject to negotiation of an agreement on terms and conditions satisfactory to the Agency as well as the project’s compliance with Federal requirements, including the National Environmental Protection Act (NEPA) and domestic preference laws.
We look forward to working with you on this project.
Sincerely,
Jorianne Jernberg
Director, WIFIA Program
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 1 For the WIFIA Application Instructions
The U.S. Environmental Protection Agency (EPA) will invite selected applicants to submit an application for Water Infrastructure Finance and Innovation Act (WIFIA) loans. Unsolicited applications will not be considered. Following selection, each selected applicant will be assigned a transaction team led by an underwriter. The transaction team can answer the applicant’s questions regarding the application form, its attachments, and the project review, negotiation, and closing processes.
The applicant should answer all questions in this form. It may indicate if a requirement is not applicable to its project. Narrative answers can reference source documents by including the name of the document and relevant pages or sections and providing any referenced documents as attachments.
The applicant must sign the Certification in the appropriate space and submit a scanned version of the signature pages to EPA. If the applicant anticipates a delay in one or more source documents, it should discuss the situation with its transaction team and indicate the anticipated date of submitting that document in the application. Additionally, the applicant is required to notify and submit to EPA any updated application materials that become available during the review period. EPA may request additional items from applicants on a case-by-case basis.
The applicant may assert a Confidential Business Information (CBI) claim covering part or all of the information submitted to EPA as part of its letter of interest, in a manner consistent with 40 C.F.R.
2.203, 41 Fed. Reg. 36902 (Sept. 1, 1976), by placing on (or attaching to) the information a cover sheet, stamped or typed legend, or other suitable form of notice employing language such as trade secret, proprietary, or company confidential. The applicant should also state whether it desires confidential treatment until a certain date or until the occurrence of a certain event. Information covered by a business confidentiality claim will be disclosed by EPA only to the extent and only by means of the procedures set forth under 40 C.F.R. Part 2, Subpart B. Information that is not accompanied by a business confidentiality claim when it is received by EPA may be made available to the public by EPA without further notice to the applicant. More information about CBI is available in the WIFIA program handbook and frequently asked questions (FAQ) available at http://www.epa.gov/wifia.
The applicant must submit a non-refundable application fee. The application fee is $25,000 for an application for a project serving small communities (population of not more than 25,000 people). For all other project applications, the application fee is $100,000. For further information regarding the application fee, as well as the credit processing fee which will be charged at loan closing, and any other applicable fees, please see the WIFIA fee rule.
___________________________________________________________________________________ WIFIA Application Submission
The final application submission must include:
1. Completed application form;
2. All attachments requested and referenced in this form; and
3. The application fee.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 2 The applicant should reference the supporting document checklist provided on page 4 to ensure all needed information is provided in the application submission. Upon receipt of the application fee and materials, EPA will provide a confirmation email.
Application Form and Attachment Submittal: When finished, the application form and attachments must be uploaded to EPA’s SharePoint site. To be granted access to the WIFIA SharePoint site, the applicant should email the WIFIA Underwriter assigned to the applicant with the names and emails of all staff that need access.
Application Fee Submittal: The applicant should use of Pay.gov to make electronic payments to EPA. In Pay.gov, the applicant can track its payments to EPA and schedule recurring or automatic payments.
Although it is not mandatory to register for a user id to access and use Pay.Gov, registration is recommended to have access to all Pay.gov system functionality. To use Pay.gov, follow these instructions:
1. Access the Pay.gov system by going to https://www.pay.gov and search for WIFIA or click on the following hyperlink to directly launch the WIFIA Loan Collection & Fees Form.
2. Provide the following information on the payment to ensure proper credit:
• Remitter's contact phone number
• Company/Organization Name as it appears on EPA document • Complete address, including city, state, zip code
• Project Name
• Loan Number: this is EPA WIFIA Loan number, NOT the remitter's number • From the “Payment Type” drop down menu select “Application Fee (Fee01)” • Other Description: please enter the EPA WIFIA Loan number followed by -FEE01, for example 16123DC-FEE01
3. Follow the remaining on-screen instructions to successfully process the payment to EPA.
4. Send an email to [email protected] and [email protected] informing that a payment has been made.
The application fee may also be paid via FEDWIRE; for questions about payments, email to OCFO-OC[email protected] and [email protected]. For detailed payment instructions, contact the WIFIA program.
___________________________________________________________________________________ Burden
The public reporting and recordkeeping burden for this collection of information is estimated to average 200 hours per response. Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Regulatory Support Division, U.S.
Environmental Protection Agency (2822T), 1200 Pennsylvania Ave., NW, Washington, D.C. 20460.
Include the OMB control number in any correspondence. Do not send the completed form to this address.
Warning
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 3 Falsification or misrepresentation of information or failure to file or report information required to be reported may be the basis for denial of financial assistance by the Environmental Protection Agency.
Knowing and willful falsification of information required to be submitted and false statements to a Federal Agency may also subject you to criminal prosecution. See, for example, 18 U.S.C. §1001. _____________________________________________________________________________________ Additional information is available at https://epa.gov/wifia and by contacting [email protected].
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 4 SUPPORTING DOCUMENT CHECKLIST
The applicant should submit its completed application form plus all relevant supporting documents listed in the checklist as attachments.
Question Supporting Document(s)* Included
Application Fee – Refer to fee instructions on page 2
Section A: Key Applicant and Loan Information* (No attachments)
10. System for Award Management
(SAM) registration
• Screen shot verifying active SAM
registration1*
☐
Section B: Applicant Background
5. Capital Improvement Planning
Process
• Current year and previous 3 years
Capital Improvement Plans
☐
7. Liabilities • Liabilities Description ☐
8. System Condition • System Master Plan
• System Condition Assessment
☐
☐
12. Organization Chart • Organization Chart ☐
Section C: Financing Plan
4. Preliminary Rating Letter • Preliminary Rating Letter* ☐
5. Audited Financial Statements • Audited Financial Statements (3 years)* ☐
6. Cash flow pro forma(s) • Cash flow pro forma* ☐
7. Rate Setting Process • Rate Studies
• Rate Schedules
☐
☐
8. Flow of Funds • Flow of Funds ☐
9. Loan Agreement • Master Indenture
• Bond Ordinance
☐
☐
Section D: Federal Requirements
1.National Environmental Policy Act
(NEPA)/ Programmatic Environmental
Assessment Questionnaire
• Environmental Assessment (Draft or
Final)
• Environmental Impact Statement (Draft
or Final)
• Supporting Documentation
• Programmatic Environmental
Assessment Questionnaire
☐
☐
☐
☐
2. SRF Environmental Review • SRF Findings
• SRF Consultation Documentation
☐
☐
4. Cross-Cutter Consultation Agencies • State Historic Preservation Officer • Fish and Wildlife Service
• National Marine and Fisheries Service
• Coastal Zone Management Agency
• Other: Click or tap here to enter text..
☐
☐
☐
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5. Additional Permits • Click or tap here to enter text. ☐ 1 Applicants must have an active registration in SAM to do business with the Federal Government. Registration information is available at https://sam.gov/SAM/.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 5 • Click or tap here to enter text.
• Click or tap here to enter text.
☐
☐
7. Additional Forms
epa_form_6600_06.
pdf
SFLLL_2_0-V2.0
(1).pdf
epa_form_4700_4.p
df
☐
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8. Uniform Act • Narrative of Compliance ☐
Section E: Contract Information (Refer to Supplemental Spreadsheet) Complete Section E of spreadsheet and indicate which of the following attachments are included:
• Project Map
• Preliminary Engineering Report
• Preliminary Design Report
• Planning Document
• Executed Contract Documents
• Procurement Documents
• Detailed project schedule(s)*
• Engineer’s Cost Estimate associated with detailed project scope* • Existing Operation and Maintenance Plan
• Professional Service Contract or similar evidence of new Operation and Maintenance Plan to be developed
• Risk Mitigation Plan/Matrix
• Project Management Plan
• Evidence of Experience with similar projects
• Draft of Final Bid Specifications with required language • Sample of Final Bid Specifications with required language ☐
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Certifications ☐
*Required
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 6 APPLICATION FORM
Provide the following information in this form. Narrative answers can reference source documents (include the name of the document and relevant pages or sections). Provide any referenced documents as attachments.
Section A: Key Applicant and Loan Information
1. Legal name of prospective borrower:
Click or tap here to enter text.
2. Project name (for purposes of identification assign a short name to the project):
Click or tap here to enter text.
3. Has the project description changed since Letter of Interest selection? Yes No
If yes, please provide a brief updated project description.
Click or tap here to enter text.
4. Estimated total eligible project costs (in dollars):
Click or tap here to enter text.
☐ Check here if total eligible project costs have changed since the letter of interest submittal
5. Requested amount of the WIFIA loan (in dollars):
Click or tap here to enter text.
6. Anticipated Closing Date and what is driving date: Click or tap here to enter text.
7. Applicant Contact Information
Team Member Name and Title Email Phone Number
Authorized Signatory Click or tap here to enter
text.
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enter text.
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text.
WIFIA Point of
Contact
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text.
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enter text.
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text.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 7 8. Employer/taxpayer identification number (EIN/TIN):
Click or tap here to enter text.
9. Dun and Bradstreet Data Universal Number System (DUNS) number:
Click or tap here to enter text.
10. Is the applicant registered in the System for Award Management (SAM)? Yes No
If yes, provide a PDF or JPEG screenshot that shows evidence of the SAM registration and an “active status” for the entity receiving the WIFIA loan.
Financial Advisor Click or tap here to enter
text.
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enter text.
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text.
Bond Counsel Click or tap here to enter
text.
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enter text.
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text.
Project Manager Click or tap here to enter
text.
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enter text.
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text.
Environmental
Review Contact
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text.
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enter text.
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text.
Other: Click or tap
here to enter text.
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text.
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Other: Click or tap
here to enter text.
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enter text.
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text.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 8 Section B: Applicant Background
1. Describe the authorizing actions required by the applicant in order to enter into a loan agreement with the WIFIA program (e.g., board vote, local vote, ordinance).
Click or tap here to enter text.
2. Disclose any current, threatened, or pending litigation involving the applicant related to permitting, public involvement, environmental irregularities, construction defects, securities fraud, conflict of interest, failure to perform under a State or Federal contract, or other charges which may reflect on the applicant’s financial position or ability to complete the project(s).
Click or tap here to enter text.
3. List the historical, if available, or projected customer concentration analysis, including a breakdown of customers by class (residential, non-residential, commercial, bulk, etc.), usage, and revenues for the past 12 months and a list of the top ten (10) customers by percentage of revenues.
Click or tap here to enter text.
4. Provide the average residential customer combined water and sewer rates as a percentage of Median Household Income.
Click or tap here to enter text.
5. Describe the applicant’s capital improvement planning process. Include a capital improvement plan, other planning documents, and capital budgets produced in the current year and previous three (3) years as attachments.
Click or tap here to enter text.
6. Describe accounts receivables outstanding, including the 12-month trailing average of on-time payment amounts as a percentage of amount billed per period. Include a brief description of the process for collections.
Click or tap here to enter text.
7. Describe or provide an attachment with the status of liabilities and funding for pension contributions, defined benefits, and other post-employment benefits.
Click or tap here to enter text.
8. Provide the latest system condition assessment report or master plan available for the water and/or wastewater system this project supports. If a report or plan is unavailable, provide a
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 9 brief description of significant facilities (i.e. pump stations or treatment plants) within the system, including construction and major rehabilitation dates, and any asset management processes utilized for the system.
.Click or tap here to enter text.
9. If applicable, describe community outreach efforts conducted to date and planned for the project(s). Include community meetings, outreach sessions and groups contacted.
Click or tap here to enter text.
10. Provide a description of the environmental, societal, or quality of life benefits to the community as a result of the project, such as (but not limited to), improving system resiliency, mitigating climate change, supporting small and/or disadvantaged communities, improving access to safe water, addressing contaminants, developing the water workforce.
Click or tap here to enter text.
11. Will the project assist in complying with applicable regulatory requirements? Yes No
If yes, describe how the project assists with regulatory compliance.
Click or tap here to enter text.
For Project and Corporate Financing Transactions Only:
12. Provide a project-level organizational chart, include the major parties involved in planning, owning, financing, providing supply and/or offtake, constructing, operating, and/or maintaining the project(s). Include the major service contractors that have been, or will be, retained for the project (e.g., architects, developers, engineers, attorneys, financial advisors and underwriters, environmental consultants). Please also disclose if there is a financial relationship between the project sponsor and any key project partners.
Click or tap here to enter text.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 10 Section C: Financing Plan
1. Provide a sources and uses of funds table for the proposed project(s), including the proposed WIFIA assistance. For applicants other than Public Entities, please identify the amount and source(s) of project equity, letters of credit, and other sources of debt as applicable. Note any ineligible project costs. More information about eligible costs is available in the WIFIA program handbook. If other debt is being issued, including a SRF loan, describe the timing and certainty. *Previously Incurred Eligible Costs are project related costs incurred prior to the WIFIA loan’s execution.
Please see the WIFIA Program Handbook for additional information on Eligible Costs.
2. Describe the proposed credit terms of the WIFIA assistance. Complete the following table and include additional text below.
Sources Category Estimated Dollar Value
1. WIFIA Loan (cannot exceed 49% of eligible costs) Click or tap here to enter text.
2. Revenue Bonds Click or tap here to enter text.
3. SRF Loan Click or tap here to enter text.
4. Borrower Cash Click or tap here to enter text.
5. Previously Incurred Eligible Costs* Click or tap here to enter text.
6. Other (please specify) Click or tap here to enter text. Click or tap here to enter text.
TOTAL SOURCES Click or tap here to enter text.
Uses Category Estimated Cost
1. Construction Click or tap here to enter text.
2. Design Click or tap here to enter text.
3. Planning Click or tap here to enter text.
4. Land Acquisition Click or tap here to enter text.
5. Other Capital Costs Click or tap here to enter text.
6. Contingency Click or tap here to enter text.
7. Total Capital Costs Click or tap here to enter text.
8. Financing Costs Click or tap here to enter text.
8. Ineligible Costs (if applicable) Click or tap here to enter text.
9. Other (please specify) Click or tap here to enter text. Click or tap here to enter text.
10. Other (please specify) Click or tap here to enter text. Click or tap here to enter text.
TOTAL USES Click or tap here to enter text.
Credit
Term
Proposed Credit Term for WIFIA
Lien
Priority
Senior Lien: all debt for the project (including WIFIA) will be senior/first lien debt
Subordinate Lien: all debt for the project (including WIFIA) will be subordinated/second lien debt
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 11 3. Describe all dedicated revenue sources to be used to repay project financing, the expected rate(s), and the base to which such rates will be applied (e.g. average monthly consumption).
Include rate covenant requirements that may affect these revenue sources. If the dedicated source for repayment is different from the assets covered by the security pledge described in the above table, please specify this in the response.
Click or tap here to enter text.
4. Provide the file name for and submit a new or recent preliminary rating letter from a nationally recognized statistical rating organization opining on the proposed WIFIA financing and describing the applicant’s ability to obtain an investment grade rating on the project’s senior obligations. An existing rating may be used in place of a preliminary rating letter if it is recent and actively maintained. The applicant should discuss using an existing rating with its transaction team prior to application submittal. Note, this application will not be deemed complete without inclusion of a preliminary rating letter.
Click or tap here to enter text.
5. Provide the year-end audited financial statement for the applicant for past three (3) years, as an attachment, and enter the file names below.
Click or tap here to enter text.
6. Attach the financial model for the project(s) security structure (i.e. the system for system credits or project for P3/project financings) and provide its file name below. All amounts should be expressed on a cash (year-of-expenditure) basis and should clearly show assumptions used to arrive at such estimates. A sample pro forma can be found here. The pro forma(s) should include:
Subordinate Lien: all debt for the project (including WIFIA) will be subordinated/second lien debt
Subordinate Lien: WIFIA will be subordinated/second lien and other debt for the project will be senior/first lien debt (in this case, WIFIA will automatically spring to senior/first lien debt upon the occurrence of a bankruptcy related event)
Security
Pledge
Click or tap here to enter text.
WIFIA
Loan
Maturity
Date
Click or tap here to enter text.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 12 a. Details on projected revenues, operations and maintenance expense, capital expenditures and other key line items. Include rate changes and inflation factors as appropriate;
b. Estimated total debt service coverage. Also show senior and junior lien debt coverages separately, if applicable;
c. Disbursement and repayment schedule for all debt sharing the WIFIA security, addressing, as applicable, senior- and junior-lien debt. Same lien debt amounts may be aggregated;
d. Anticipated disbursement and repayment schedule of the requested WIFIA loan.
Click or tap here to enter text.
7. Describe the rate setting process, including regulations governing rate setting, approval requirements, timing for implementation, etc. Include 10 years of rate schedule history for the applicant and specify if recommended rate increases were ever rejected.
Click or tap here to enter text.
8. If available, provide a flow of funds diagram or description and summarize key obligations in the flow of funds.
Click or tap here to enter text.
9. Describe what document(s) will be the starting point for the WIFIA loan agreement:
Standard WIFIA loan agreement.
Existing Master Indenture or Bond Ordinance. Included as an attachment is the Existing Master Indenture or Bond Ordinance.
Customized loan agreement for the project(s) and applicant.
Other.
Click or tap here to enter text.
Additional notes for loan agreement: Click or tap here to enter text.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 13 Section D: Federal Requirements Compliance
1. Has the project completed or is in the process of completing an environmental review in accordance with the National Environmental Policy Act (NEPA)? Yes No
If yes, identify the lead federal agency for the NEPA review, and provide an agency staff contact name/email/phone number.
Click or tap here to enter text.
If no, please complete the Programmatic Environmental Assessment (PEA) Questionnaire unless one of the following exceptions are true:
• The proposed project is a pipeline replacement or rehabilitation project, or an upgrade or expansion of an existing facility
• The proposed project contains a large number of components in a wide geographic location
2. Is the project co-financed by the State Revolving Loan Fund? Yes No
If yes, is the scope of the SRF project the same as the scope of the WIFIA project? Yes No
If no, note scope differences.
Click or tap here to enter text.
3. Has the project completed or is in the process of completing an environmental review with the SRF?
Yes No
Not Applicable
If yes, identify the lead agency for the SRF environmental review, provide an agency staff contact name/email/phone number, and if applicable, submit the available SRF Findings and/or SRF consultation documentation.
Click or tap here to enter text.
If no, give an estimated timeline for the SRF environmental review and/or submittal of application materials to SRF.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 14 Click or tap here to enter text.
4. Identify any agencies with which cross-cutter consultations have been undertaken for the project and include supporting documentation as attachments. (Check all that apply) ☐ None
☐ State Historic Preservation Officer
☐ Fish and Wildlife Service
☐ National Marine and Fisheries Service
☐ Coastal Zone Management Agency
☐ Other Click or tap here to enter text.
5. Describe the status of any additional permits and approvals that the project(s) may require. Add additional rows as needed. If providing permit information as attachments, list the filenames below.
Major Permits or Approvals
Required
Approving Authority Status Expected
Approval Date
Enter text here. Enter text here. Enter text here. Enter date here.
Enter text here. Enter text here. Enter text here. Enter date here.
Enter text here. Enter text here. Enter text here. Enter date here.
Click or tap here to enter text.
6. Does the project involve a new or relocated discharge, either permanent or temporary, to surface or groundwater or are new or relocated water intakes expected? Yes No
Not Applicable
7. Additional forms will need to be completed and submitted prior to closing the WIFIA loan. Check all that are included with the application:
Form Included Not Applicable
epa_form_6600_06.
pdf
☐
SFLLL_1_2-V1.2.pdf
☐ ☐
Note: this form only needs to be
submitted to disclose lobbying activities
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 15 epa_form_4700_4.p
df
☐
8. If the project(s) include acquisition of real property, identify how the project complies or will comply with Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform Act).
Click or tap here to enter text.
Section E: Contract Information
Complete the “Section E: Supplemental Spreadsheet.” Instructions for each column are available on the first tab labeled “Instructions – Section E”. Provide answers for each project in the application using separate rows designated, “Contract 1, Contract 2, etc.”
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 16 CERTIFICATIONS
1. National Environmental Policy Act: The applicant acknowledges that any project receiving credit assistance under this program must comply with all provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
2. American Iron and Steel: The applicant acknowledges that any project receiving credit assistance under this program for the construction, alteration, maintenance, or repair of a project may only use iron and steel products produced in the United States and must comply with all applicable guidance.
3. Prevailing Wages: The applicant acknowledges that all laborers and mechanics employed by contractors or subcontractors on projects receiving credit assistance under this program shall be paid wages at rates not less than those prevailing for the same type of work on similar construction in the immediate locality, as determined by the Secretary of Labor, in accordance with sections 3141-3144, 3146, and 3147 of Title 40 (Davis-Bacon wage rules).
4. Credit Ratings: This applicant has received a preliminary rating opinion letter(s) on the project’s senior debt instrument, from one or more rating agencies. These letters or ratings are attached.
5. Credit Processing Fees: The undersigned certifies that it will reimburse EPA for its costs incurred in negotiating the credit agreement, irrespective of whether the credit agreement is executed.
6. Lobbying: Section 1352 of Title 31, United States Code provides that none of the funds appropriated by any Act of Congress may be expended by a recipient of a contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, or an employee of a Member of Congress in connection with the award or making of a Federal contract, grant, loan, or cooperative agreement or the modification thereof. EPA interprets this provision to include the use of appropriated funds to influence or attempt to influence the selection for assistance under the WIFIA program.
WIFIA applicants must file a declaration: (a) with the submission of an application for WIFIA credit assistance; (b) upon receipt of WIFIA credit assistance (unless the information contained in the declaration accompanying the WIFIA application has not materially changed); and (c) at the end of each calendar quarter in which there occurs any event that materially affects the accuracy of the information contained in any declaration previously filed in connection with the WIFIA credit assistance.
The undersigned certifies, to the best of his or her knowledge and belief, that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement,
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 17 the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
7. Debarment: The undersigned further certifies that it is not currently: 1) debarred or suspended from participating in any Federal programs; 2) formally proposed for debarment, with a final determination still pending; or 3) indicted, convicted, or had a civil judgment rendered against it for any of the offenses listed in the Regulations Governing Debarment and Suspension (Governmentwide Nonprocurement Debarment and Suspension Regulations: 2 C.F.R. Part 180 and Part 1532).
8. Default/Delinquency: The undersigned further certifies that neither it nor any of its subsidiaries or affiliates are currently in default or delinquent on any debt or loans provided or guaranteed by the Federal Government.
9. Other Federal Requirements: The applicant acknowledges that it must comply with all other federal statutes and regulations, as applicable. A non-exhaustive list of federal cross-cutting statutes and regulations can be found at: https://www.epa.gov/wifia/wifiaresources#complianceanchor.
10. Signature: By submitting this application, the undersigned certifies that the facts stated and the certifications and representations made in this application are true, to the best of the applicant’s knowledge and belief after due inquiry, and that the applicant has not omitted any material facts. The undersigned is an authorized representative of the applicant.
Signature: _________________________________________________________________________ Date Signed: ________________________________________________________________________ Name:
Title:
Organization:
Street Address:
City/State/Zip:
Phone:
E-mail:
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 18 KEY DEFINITIONS
(a) Administrator means the Administrator of EPA.
(b) Community water system has the meaning given the term in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f).
(c) Credit assistance means a secured loan or loan guarantee under WIFIA. (d) Credit agreement means a contractual agreement between EPA and the project sponsor (and the lender, if applicable) that formalizes the terms and conditions established in the term sheet (or conditional term sheet) and authorizes the execution of a secured loan or loan guarantee. (e) Eligible project costs mean amounts, substantially all of which are paid by, or for the account of, an obligor in connection with a project, including the cost of:
(1) Development-phase activities, including planning, feasibility analysis (including any related analysis necessary to carry out an eligible project), revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;
(2) Construction, reconstruction, rehabilitation, and replacement activities; (3) The acquisition of real property or an interest in real property (including water rights, land relating to the project, and improvements to land), environmental mitigation (including acquisitions pursuant to section 33 U.S.C. §3905(7)), construction contingencies, and acquisition of equipment; and
(4) Capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction. (f) Investment-grade rating means a rating category of BBB minus, Baa3, bbb minus, BBB (low), or higher assigned by a nationally recognized statistical rating organization (NRSRO) to project obligations offered into the capital markets.
(g) Iron and steel products means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials.
(h) Nationally Recognized Statistical Rating Organization (NRSRO) means a credit rating agency identified and registered by the Office of Credit Ratings in the Securities and Exchange Commission. (i) Project means:
(1) Any project for flood damage reduction, hurricane and storm damage reduction, environmental restoration, coastal or inland harbor navigation improvement, or inland and intracoastal waterways navigation improvement that the Secretary determines is technically sound, economically justified, and environmentally acceptable, including—
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 19 (A) a project to reduce flood damage;
(B) a project to restore aquatic ecosystems;
(C) a project to improve the inland and intracoastal waterways navigation system of the United States; and
(D) a project to improve navigation of a coastal or inland harbor of the United States, including channel deepening and construction of associated general navigation features.
(2) 1 or more activities that are eligible for assistance under section 1383(c) of this title, notwithstanding the public ownership requirement under paragraph (1) of that subsection. (3) 1 or more activities described in section 300j–12(a)(2) of title 42. (4) A project for enhanced energy efficiency in the operation of a public water system or a publicly owned treatment works.
(5) A project for repair, rehabilitation, or replacement of a treatment works, community water system, or aging water distribution or waste collection facility (including a facility that serves a population or community of an Indian reservation).
(6) A brackish or sea water desalination project, including chloride control, a managed aquifer recharge project, a water recycling project, or a project to provide alternative water supplies to reduce aquifer depletion.
(7) A project to prevent, reduce, or mitigate the effects of drought, including projects that enhance the resilience of drought-stricken watersheds.
(8) Acquisition of real property or an interest in real property— (A) if the acquisition is integral to a project described in paragraphs (1) through (6); or (B) pursuant to an existing plan that, in the judgment of the Administrator or the Secretary, as applicable, would mitigate the environmental impacts of water resources infrastructure projects otherwise eligible for assistance under this section. (9) A combination of projects, each of which is eligible under paragraph (2) or (3), for which a State infrastructure financing authority submits to the Administrator a single application. (10) A combination of projects secured by a common security pledge, each of which is eligible under paragraph (1), (2), (3), (4), (5), (6), (7), or (8), for which an eligible entity, or a combination of eligible entities, submits a single application. (j) Public entity means:
(1) a Federal, State, or local Governmental entity, agency, or instrumentality; or (2) a Tribal Government or consortium of Tribal Governments. (k) Publicly sponsored means the obligor can demonstrate, to the satisfaction of the Administrator that it has consulted with the affected State, local or Tribal Government in which the project is located, or is otherwise affected by the project, and that such government supports the proposed project.
Support can be shown by a certified letter signed by the approving municipal department or similar agency, mayor or other similar designated authority, local ordinance, or any other means by which local government approval can be evidenced.
US Environmental Protection Agency OMB Control No. 2040-0292 WIFIA Program EPA Form No. 6100-032
Application Approval expires 4/24/2023
____________________________________________________________________________________ 20 (l) Small Community means a community with a population of no more than 25,000 individuals. (m) State means any one of the fifty states, the District of Columbia, Puerto Rico, or any other territory or possession of the United States.
(n) State infrastructure financing authority means the State entity established or designated by the Governor of a State to receive a capitalization grant provided by, or otherwise carry out the requirements of, title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et. seq.) or section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12). (o) Term sheet means a contractual agreement between EPA and the project sponsor (and the lender, if applicable) that sets forth the key business terms and conditions of a Federal credit instrument.
Execution of this document represents a legal obligation of budget authority. (p) Treatment works has the meaning given the term in section 212 of the Federal Water Pollution Control Act (33 U.S.C. 1292).
(q) WIFIA means the Water Infrastructure Finance and Innovation Act of 2014, Pub. L. 113-121, 128 Stat, 1332, codified at 33 U.S.C. §§ 3901-3914.
8 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Inga Alonzo, Management Analyst
APPROVED BY: City Manager
APPROVE THE FIRST AMENDMENT TO THE SERVICE MAINTENANCE
AGREEMENT WITH PETERSON POWER SYSTEMS, INC. FOR
GENERATOR MAINTENANCE AND REPAIR
RECOMMENDATION(S)
Approve and authorize the City Manager to execute an amendment to increase the not to exceed amount of the generator maintenance agreement with Peterson Power Systems by $157,473. This increase will bring the not to exceed amount to $452,668.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Public Safety Master Plan
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:
REPORT NARRATIVE:
The City’s fleet of generators is required to provide electrical power back-up for well sites, booster stations, water storage tanks, sewer lift stations, 911 dispatching towers, the Police Department, and other City facilities in the event of power outages. It is crucial to maintain the constant readiness of these generators through annual servicing, ongoing repairs, parts (as needed), rentals for equipment downtime, and preventive maintenance on a three-year rotational servicing schedule. These generators are also permitted through the state of California and must meet the emissions and reporting requirements in order to continue the units when needed.
In March 2023, a detailed Request for Proposals (RFP) was posted to select a highly experienced and capable contractor for maintenance, repair, and emergency servicing for the City’s 28 standby generators and City Council awarded Peterson Power the
8 three-year agreement. The agreement total had $20,000 built in for repair services over the three years, but that has proven to be an exceedingly low estimate for the aging fleet of generators. Troubleshooting and repairs have been required on 15 of the units and have totaled $151,151 thus far and prompted the need for replacement of two generators at the Fire Stations. City staff are also working on a grant to replace the Police Department generator which has required multiple repairs under this agreement thus far. The agreement’s not to exceed amount has now been exhausted due to repair needs. The additional funds requested for this agreement are calculated as follows:
$ 9,113 Needed to finish Annual and PM3 services in 2025 $ 68,615 Annual Services 2026
$ 29,745 Preventative Maintenance Services (PM3) 2026
$ 50,000 Repairs and Emergency work (estimate for remainder of agreement) $157,473
COMMUNITY ENGAGEMENT:
Not Applicable
Since maintenance of the City’s facility, water, and wastewater generators is a regular operational function of the City, no efforts were made to inform the community about this proposed project.
ALTERNATIVE ACTIONS:
City Council could choose not to approve this increase and have the City do a new bid for services. This is not recommended as it would leave the City without service for a period of time and is not likely to result in a contract with added value. Generators are required to provide back-up power to water and wastewater facilities as well as City facilities in the event of a power outage and are necessary for the provision of essential services to the community. Ongoing maintenance and repair are crucial in assuring the generators are functioning properly at all times.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On June 21, 2023, City Council approved a three-year agreement with Peterson Power Systems for generator maintenance services in the amount of $295,195.
FISCAL AND RESOURCE IMPACT:
Funds for this agreement are budgeted within the specific areas serviced by the generators: Water Operations (48%, Fund 650), Sewer Operations (32%, Fund 640), Fire Operations (8%, Fund 010) and Building Maintenance (12%, Fund 740). No additional appropriation is needed, as sufficient funds are programmed in both the FY 2024-25 and FY 2025-26 budgets.
8 CEQA (California Environmental Quality Act):
Categorical Exemption
The planned maintenance and management of existing City infrastructure falls within the CEQA categorical exemption of Class 1, Existing Facilities.
1 FIRST AMENDMENT TO AGREEMENT
PETERSON POWER SYSTEMS, 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 PETERSON POWER SYSTEMS, 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 pursuant to the action of the Morgan Hill City Council taken on _________________, 2025.
2. The CITY and SERVICE PROVIDER entered into that “Maintenance Service Agreement” made as of July 4, 2023, for services for a maximum compensation of Two Hundred Ninety-Five Thousand One Hundred Ninety-Five Dollars ($295,195.00) (“MAINTENANCE SERVICE AGREEMENT”). The MAINTENANCE 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 MAINTENANCE 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 4.1 shall be amended and replaced in its entirety by the following:
"4.1. Amount. Compensation under this Agreement shall not exceed Four Hundred Fifty-Two Thousand Six Hundred Sixty-Eight Dollars ($452,668.00) and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for each subsequent extended one-year term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the immediately preceding prior year of service.” B. Paragraph 5 shall be amended and replaced in its entirety by the following:
“5. Termination. CITY or SERVICE PROVIDER shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager is authorized to terminate this
2 Agreement, in whole or in part, on behalf of CITY.
5.1. Non-Appropriations. Notwithstanding anything contained in this Agreement to the contrary, if insufficient funds are appropriated, or funds are otherwise unavailable in the budget for CITY for any reason whatsoever in any fiscal year, for payments due under this Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.
5.2. Temporary Suspension of Services. CITY’S need for services may be suspended due to unforeseeable or unavoidable circumstances beyond its control.
Such circumstances include, but are not limited to, earthquake, fire, explosion, flood, or other natural catastrophe; governmental legislation, condemnation, acts, orders, or regulation; war or acts of terrorism; strikes or labor difficulties; and quarantine, epidemic, or pandemic. CITY shall provide a 5-days’ written notice or less under urgent circumstances to temporarily suspend services at specific CITY facilities.
CITY reserves the right to request which CITY facilities are to be serviced or not serviced due to unforeseeable or unavoidable circumstances; and the level of service at each CITY facility. Upon suspension, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid up to the date of the suspension. No further payments will be made for services provided after the date of the suspension. CITY shall provide 5 days’ written notice when the circumstances for the suspension of specific facilities’ services are removed for SERVICE PROVIDER to commence providing services.” C. Paragraph 10.2 shall be amended and replaced in its entirety by the following:
“10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite.
10.2.1. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.
10.2.2. SERVICE PROVIDER must comply with the provisions of Labor Code Sections 1776 and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.
10.2.3. As applicable, if the Agreement Amount exceeds Thirty Thousand Dollars ($30,000.00), SERVICE PROVIDER is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference.
10.2.4. SERVICE PROVIDER must comply with the provisions of Labor Code Section 1815 with respect to payment of overtime.
3 10.2.5. Under Labor Code Section 1813, SERVICE PROVIDER will forfeit to CITY as a penalty, the sum of Twenty-Five Dollars ($25.00) for each day during which a worker employed by SERVICE PROVIDER or any subcontractor is required or permitted to work more than eight (8) hours in any one (1) calendar day or more than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815.” D. 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).” E. There is no change to the amounts to be charged for Tasks 1 and 2. The remaining funds budgeted for generator work shall be expended solely as requested by City staff in writing by City for Task 3, On Call Emergency and Non-Emergency Repairs.
F. All references in Exhibit A, Exhibit B, and Exhibit C to “Contractor” shall be updated to “Service Provider”.
2. Notice of Security and/or Privacy Incident. If SERVICE PROVIDER, or its subconsultant, suspect, discover or are notified of a data security incident or potential breach of security and/or privacy relating to CITY PII, PHI and/or PCI, SERVICE PROVIDER shall immediately, but in no event later than 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.
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 the Parties, constitute a single binding agreement.
4 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 MAINTENANCE 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: PETERSON POWER SYSTEMS, 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
507000 1000005682
Contractor’s License Number(s) (if applicable) Contractor’s DIR Registration Number(s) (if applicable)
Expiration Date(s) 3/31/2027 Expiration Date(s) 06/30/2025 Seal:
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4
MAINTENANCE SERVICE AGREEMENT
PETERSON POWER SYSTEMS, INC.
126-04-23-027
THIS AGREEMENT is entered into and becomes effective on 71412023 (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Peterson Power Systems, Inc. a California corporation ("SERVICE PROVIDER") hereinafter referred to collectively as "Parties." In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:
1. City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on June 21st, 2023.
2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until June 30.2027 at which time SERVICE PROVIDER'S services shall be completed.
The City Manager is authorized to extend the term of this Agreement for a maximum period of one year.
Any such extension shall be in writing and signed by both Parties to this Agreement.
3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be Generator Maintenance and Repair Services as further described in Exhibit A.
4. Compensation. SERVICE PROVIDER shall be compensated as follows:
4.1. Amount. $295,195.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Two Hundred Ninty-Five Thousand One Hundred Ninty-Five dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for the extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement.
4.2. Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY'S judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.
1 Updated: May 2023
EXHIBIT 1
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 B84
5. Termination. CITY or SERVICE PROVIDER shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager is authorized to terminate this Agreement, in whole or in part, on behalf of CITY.
5.1. Non-Appropriations. Notwithstanding anything contained in this Agreement to the contrary, if insufficient funds are appropriated, or funds are otherwise unavailable in the budget for CITY for any reason whatsoever in any fiscal year, for payments due under this Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.
6. Performance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by SERVICE PROVIDER in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of SERVICE PROVIDER'S profession. By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDER is liable for any property damage caused by SERVICE PROVIDER or its Subcontractors during performance of the services and shall notify the CITY of damage within 24 hours of the occurrence. SERVICE PROVIDER must promptly repair or replace any real or personal property damage and must promptly restore the property to its original or intended condition. CITY may repair or replace the real or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repairs or replacement may be deducted or offset from any compensation due to SERVICE PROVIDER.
6.1. Schedule. SERVICE PROVIDER shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. The City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance within the term of this Agreement.
6.2. Storage of Service Provider's Equipment. If SERVICE PROVIDER desires to leave or store any of SERVICE PROVIDER'S equipment at a CITY site while SERVICE PROVIDER is performing work or service pursuant to this Agreement, SERVICE PROVIDER will first obtain the consent of the City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at SERVICE PROVIDER'S sole risk.
7. Hazardous Materials. Without limiting any other requirement or obligation of SERVICE PROVIDER under this Agreement, if SERVICE PROVIDER needs to use any material or chemical considered to be a hazardous material under any federal, state or local law, regulation or policy, SERVICE PROVIDER agrees to fully and timely abide by and comply with all laws, regulations and policies pertaining to the use, transport, removal, handling, disposal or other activity related to any and all such materials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDER reasonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this Agreement, together with the reasonably anticipated quantities thereof, if requested by CITY. 2 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1A80-43EC-A60F-ADE8967E1884
8. Insurance Requirements. SERVICE PROVIDER shall procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of SERVICE PROVIDER, including its subcontractors, employees and agents, relating to or arising from the performance of any work or service under this Agreement, and must remain in full force and effect at all times during the period covered by this Agreement. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or "umbrella" policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and approved by City. SERVICE PROVIDER further understands that CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days' notice provided to SERVICE PROVIDER, at any time as deemed necessary to protect the interests of CITY.
8.1. Insurance Types and Amounts.
8.1.1. Commercial General Liability (CGL). SERVICE PROVIDER shall maintain CGL against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.
8.1.2. Automobile Liability. SERVICE PROVIDER shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if SERVICE PROVIDER does not own automobiles, then SERVICE PROVIDER shall maintain Hired/Nonowned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.
8.1.3. Workers' Compensation Insurance and Employer's Liability. SERVICE PROVIDER shall maintain Workers Compensation coverage, as required by law, in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater. If SERVICE PROVIDER is self-insured, SERVICE PROVIDER shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.
8.1.4. Pollution (Environmental) Liability. If the performance of SERVICE PROVIDER'S work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, SERVICE PROVIDER shall procure and maintain Pollution Liability covering the SERVICE PROVIDER'S liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million 3 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 B84 dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.
8.1.5. Professional Liability.
8.1.5.1. If the performance of SERVICE PROVIDER'S work or service under this Agreement involves professional and/or technical services (examples include, but are not limited to, architects, engineers, land surveyors, and appraisers), SERVICE PROVIDER shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater. Further, if SERVICE PROVIDER maintains a claims-made policy, SERVICE PROVIDER shall provide written evidence of such insurance to CITY for at least five (5) years after the completion of work performed under this Agreement.
8.1.5.2. If the performance of SERVICE PROVIDER'S work or service under this Agreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers, hardware engineers, or other systems consultants), SERVICE PROVIDER shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.
8.1.6. Sexual Abuse/Molestation Liability (SML): If the performance of SERVICE PROVIDER'S work or service under this Agreement involves contact with minors, SERVICE PROVIDER shall procure and maintain Sexual Abuse and Molestation insurance in the minimum amount of: (i) two hundred thousand dollars ($200,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.
8.2. Endorsements. SERVICE PROVIDER shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:
8.2.1. General Liability and pollution liability (when pollution liability applies).
8.2.1.1. "Additionally Insured" - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations.
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8.2.1.2. "Waiver of Rights of Subrogation" - The insurer waives the right of subrogation against the City of Morgan Hill and CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers; and
8.2.1.3. "Primary and Non-Contributing" - Insurance shall be endorsed to be primary and non-contributory and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as ISO Form CG 20
01. 8.2.2. Workers Compensation.
If the performance of SERVICE PROVIDER'S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER'S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.
8.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M.
Best's financial strength rating of "A" or better and a financial size rating of "VII" or better.
8.4. Certificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to SERVICE PROVIDER'S agreement with CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 8. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.
Certificate Holder address:
City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037
9. Non-Liability of Officials and Employees of CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement.
10. Compliance with Law.
10.1. SERVICE PROVIDER and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. SERVICE PROVIDER and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon any basis prohibited by State or Federal law, including but not limited to, race, color, creed, religion, gender, marital status, age, sexual 5 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4 orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.
10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any Subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.
10.3. DIR Registration. CITY will not accept a Bid Proposal from or enter into a contract with a SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that SERVICE PROVIDER and its subcontractors are registered with the California Department of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.
10.4. Compliance with Wage and Hour Laws: SERVICE PROVIDER, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act and the California Labor Code.
Final Judgments, Decisions, and Orders: For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.
Prior Judgments against SERVICE PROVIDER and/or its Subcontractors: BY SIGNING
THIS AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY
FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING - IN THE FIVE (5) YEARS
PRIOR TO EXECUTING THIS AGREEMENT - THAT SERVICE PROVIDER OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.
SERVICE PROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S)
HAS SATISFIED AND COMPLIED WITH - OR HAS REACHED AGREEMENT WITH
THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY - ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.
Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final 6 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 BB4 judgment, decision or order. SERVICE PROVIDER and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision or order within five (5) days of satisfying the final judgment, decision or order. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.
City's Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.
Material Breach: Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.
Notice to City Related to Wage Theft Prevention: Notice provided to the City Attorney as required under this Section shall be addressed to: City Attorney, City of Morgan Hill, 17575 Peak Avenue, Morgan Hill, CA 95037. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section.
11. Independent Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employee of CITY.
12. Confidentiality. All data, documents, or other information received by SERVICE PROVIDER from CITY or prepared in connection with SERVICE PROVIDER'S services under this Agreement are deemed confidential and shall not be disclosed to any third party by SERVICE PROVIDER without prior written consent by CITY.
13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.
14. Notices. All notices shall be personally delivered or mailed, via first class mail to the below listed address. These addresses shall be used for delivery of service of process. Notices shall be effective five (5) days after date of mailing, or upon date of personal delivery.
Address of SERVICE PROVIDER is as follows:
Peterson Power Systems, Inc.
2828 Teagarden Street
San Leandro, CA 94577
7 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4 Address of CITY is as follows:
Utilities Division
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:
City Clerk
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
15. Licenses, Permits and Fees. SERVICE PROVIDER shall obtain a City of Morgan Hill Business License, all permits and licenses to the extent required by ordinances, codes and regulations of the federal, state and local government.
16. Service Provider's Proposal. If applicable, this Agreement shall include SERVICE PROVIDER'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.
17. Maintenance of Records.
17.1. Maintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain records for a period of at least 3 years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then SERVICE PROVIDER shall retain said records until such action is resolved.
17.2. Access to and Audit of Records. CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546. 7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part of any audit of CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.
17.3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.
18. Familiarity with Work. By executing this Agreement, SERVICE PROVIDER represents that:
(1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should SERVICE PROVIDER discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at SERVICE PROVIDER'S risk, until written instructions are received from CITY.
19. Time of Essence. Time is of the essence in the performance of this Agreement.
20. No Assignment. Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDER, without prior written consent of CITY. Any attempted assignment not first approved by 8 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4 CITY shall be void and, at CITY'S option, shall terminate this Agreement effective as of the date of such attempted assignment.
21. Attorney Fees. In any legal action, dispute or arbitration arising out of or relating to this Agreement, the prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses incurred.
22. Defense and Indemnification.
22.1. Defense and Indemnification. SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers ("INDEMNITEES") from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors ("CLAIM").
22.2. Exceptions. SERVICE PROVIDER is not required to indemnify INDEMNITEES against liability for bodily injury, property damage or personal injury, or any other loss, damage or expense arising from the sole negligence or willful misconduct of CITY.
22.3. Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agreement apply to all CLAIMs alleged against an INDEMNITEE, regardless of whether any insurance policies are applicable. Policy limits do not act as a limitation upon the amount of indemnification or defense to be provided by SERVICE PROVIDER.
22.4. Right to Offset. CITY shall have the right to offset against any compensation due SERVICE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as a result of SERVICE PROVIDER'S failure to pay CITY promptly any indemnification arising under this Section (22) and any amount due CITY from SERVICE PROVIDER arising from SERVICE PROVIDER'S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.
22.5. Interpretation. This Section shall constitute an agreement or contract of indemnity, incorporating the interpretations under California Civil Code Section 2778. It is expressly understood and agreed that the obligation of SERVICE PROVIDER to indemnify the INDEMNITEE shall be as broad and inclusive as permitted by the laws of the State of California and shall survive termination of this Agreement.
23. Entire Agreement; Modification; Conflicting Provisions. This Agreement constitutes the entire Agreement between the Parties and supersedes any previous agreements, oral or written. This Agreement may be modified or provisions waived only by a subsequent mutual written agreement executed by CITY and SERVICE PROVIDER. If the provisions contained in the main body of this Agreement conflict with any provision contained in an exhibit to this Agreement, the provisions of the main body of this Agreement shall govern and control over any provision contained in an exhibit to this Agreement.
24. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara. Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County. 9 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4
25. Interpretation. This Agreement is a negotiated document and shall be deemed to have been drafted jointly by the Parties, and no rule of construction or interpretation shall apply against any particular Party based on a contention that the Agreement was drafted by one of the Parties including, but not limited to, California Civil Code § 1654, the provisions of which are hereby waived. This Agreement shall be construed and interpreted in a neutral manner.
26. Preservation of Agreement. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected or invalidated.
27. Binding Agreement. Notwithstanding the provisions of Section 20 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of SERVICE PROVIDER in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.
28. Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term "electronic copy of a signed contract" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the CITY.
II
II
[Signatures on Next Page]
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29. Authority to Execute. Those individuals who are signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.
IN WITNESS THEREOF, these Parties have executed this Agreement on the day and year shown below.
AS SET FORTH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.
D�ty .. City Clerk
Michelle Bigelow
Print Name
Date: 7/5/2023
APPROVED AS TO FORM:
City Att JE6F0273EA2464 ...
Donald A. Larkin
Print Name
Date: 6/26/2023
507000
Contractor's License Number(s) (if applicable)
Expiration Date( s) _
3o
_
13 _
11_
2 _
02 _
s ______ _
Seal:
CITY OF MORGAN HILL
DocuSigned by:
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Christina J. Turner
Print Name
Date: 7/4/2023
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Peterson Power Systems, Inc
"Slgoed by,
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Print Name and Title of Signer.
If Corporate: Chairman, President or Vice
President
Date: 6/23/2023
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Date:
CFO/Secretary
Print Name and Title of Signer.
If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
6/26/2023
1000005682
Contractor's DIR Registration Number(s) (if applicable) Expiration Date(s) _0_6_ !3_0_!2_0_25 _______ _
11 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1A80-43EC-A60F-ADE8967E1884
EXHIBIT A
SCOPE OF SERVICES
The scope of this contract is to provide routine, preventive, and emergency maintenance and repairs to the City of Morgan Hill's 28 generators at different location throughout the city. The contractor will be responsible for furnishing any and all necessary parts, labor, machine shop work, field work, shop and field welding, miscellaneous repair, travel time, expenses, and equipment necessary to do the work required.
Task 1 - Routine Annual Service
Routine annual service is performed once a year on every City generator listed in Attachment A, Task 1, and shall include the following services:
1. ENGINE LUBRICATING SYSTEM
A. Check oil level and top off
B. Check oil pressure using unit mounted gauge
C. Check engine for unusual oil leaks
2. FUEL SYSTEM
A. Check fuel pressure (if equipped)
B. Inspect fuel system for leaks
C. Check day tank fuel level & main tank (gage only)
3. INTAKE SYSTEM
A. Check all hoses and connections
B. Visually check air cleaner
4. GOVERNOR
A. Check all linkages & ball joints (if applicable)
B. Check oil in governor (if applicable)
C. Check any unusual oil/fuel leakage
5. COOLING SYSTEM
A. Check coolant level & inhibitor content, top off
B. Check temperature of jacket water heater
C. Check condition of all belts, hoses and connections
6. ENGINE ELECTRICAL STARTING SYSTEM
A. Check battery cap vents (lead acid only)
B. Check battery water levels & adj. (lead acid only)
C. Visually check batteries & connections
D. Check battery charging system for correct operation and adjust as needed
7. GENERATOR
A. Check generator & instruments under bldg. load (if possible) B. Check general appearance of air screen
8. ENGINE CONTROLS
A. Check generator and instruments under bldg. load (if possible) B. Check general appearance
12 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4
9. GENERAL
A. Visually check engine mounts
B. Visually check complete unit
10. GENERATOR SWITCHGEAR & EMERGENCY SOURCE FEEDERS
A. Operate generator circuit breaker manually
at time of visit (if possible)
11. RUNNING TEST
A. BEFORE STARTING ENGINE:
• Check engine oil level and coolant level.
• Check block heater-will maintain coolant temperature of about 90 degrees F in the block. Check fuel level in storage tank.
• Check battery water level and top as necessary.
• Check battery terminals for corrosion and connections for tightness (lead acid).
B. WITH ENGINE RUNNING:
• Check oil pressure.
• Check fuel pressure.
• Check oil level and add oil as required. Check RPM (frequency). • Check generated voltage.
• Check for leaks of unusual noises.
C. AFTER STOPPING ENGINE:
• Check/verify all switches are in proper positions for automatic start. Check fuel level in tank.
• Record battery charger volts, check for proper operation. Remove, clean and reinstall all battery connections (lead acid). Inspect generator for cleanliness. • Drain crankcase oil and replace with new oil. Remove and replace oil and fuel filters. • Inspect air filter(s) and replace as required.
• Start engine and load with contractor supplied resistive load bank. Run under load for at least one hour.
• Check generator output. Take oil sample for analysis.
12. REPORTING:
A. Provide the following reports for each generator to the Utilities Division in electronic form (Word, Excel, or PDF). Handwritten reports will not be accepted:
• Service report - report must include the following:
a. Work order number, date, employee name
b. Generator City ID number, manufacturer, model, serial number, location c. Status of all items and details on list 1-11 above
d. Any action items needed if status is not normal
• Load test - with full interpretation of results
• Oil Analysis - with full interpretation of results
B. Advise customer of any/all unusual situations or potential problems which will require further attention.
C. Advise when main fuel tank is below 3/4 full.
Routine annual services shall be performed on normal workdays defined as non-holiday Mondays through Thursdays, 6:30 AM through 4:00 PM and Fridays, 6:30 AM through 3:00 PM.
These services shall be scheduled in the months of October through December. Invoices for 13 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 BB4 annual services shall not be sent to the City without the service, load test, and oil analysis reports completed and attached.
Task 2 - Preventive Maintenance Services
Preventive Maintenance Service is a three-year rotational program (PM-3) in which the contractor shall include the following services on City generators per the rotational schedule per Attachment A. Task 2:
1. Replacement of fan and alternator drive belts.
2. Replacement of engine cooling system hoses.
3. Block heater hoses replaced with high temperature silicone hoses.
4. Replacement of standard ethylene glycol coolant.
5. Replacement of the batteries.
PM-3 and routine annual service shall be performed concurrently on those generators that are due for PM-3 maintenance in that fiscal year. Preventive maintenance and repair services shall be performed on normal workday hours defined as non-holiday Mondays through Thursdays, 6:30 AM through 4:00 PM and Fridays, 6:30 AM through 3:00 PM. Preventive maintenance services shall be scheduled in the months of October through December.
Task 3 - On-Call Emergency and Non-Emergency Repair Services Contractor shall provide on-call emergency and non-emergency repairs on a time and material basis. Hourly rates paid to under the agreement shall be only for actual productive hours on the job site. The City shall not be directly invoiced for the following:
• Travel and/or transportation of workers;
• Parts and materials acquisition including freight, handling, and delivery; and • Movement of Contractor owned or rented equipment,
For purposes of the agreement, these are considered overhead, and the costs shall be included in the fixed hourly rates in Attachment A, Task 3. All invoices to the City for on-call emergency and non-emergency repair services must include a breakdown of number of hours for all fixed rates charged and the original cost and mark up price for all parts and materials charged. The City shall reserve the right to request backup documentation for the contractor's original cost on parts and materials.
The City will not consider any proposal with a parts and materials markup in excess of 25%.
A. Non-Emergency Repair Services
Contractor shall provide written, "not to exceed," estimates on all non-emergency repairs.
These estimates shall include number of hours, hourly rate, number and type of employees required, estimated material costs, markup cost, and completion date. All work for nonemergency repairs shall be performed during regular operating hours and per the regular rates on Attachment A, Task 3. Contractor shall respond to email or phone requests for estimates within 24 hours and provide written estimates within three business days of the original request date. It shall be the Contractor's responsibility to ensure it has all information to prepare accurate estimates. No repair will be done without the written approval by the City's representative.
B. Emergency Repair/After Hours Services
14 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 B84 Contractor shall provide a fixed hourly rate for emergency/after-hours services. Contractor shall have the ability to respond to emergency repairs twenty-four hours a day, seven days per week. The contractor shall provide the City with a current directory its emergency response personnel including phone numbers and emails and/or details on how to contact them on a 24 hour basis. The contractor shall keep the City informed of any changes in emergency response personnel and provide updated contact information. Once the City initiates a communication for emergency service, the Contractor must be able to reach the site of the emergency within 2 hours of the initial communication. It will be at the sole discretion of the City to determine if a situation is an emergency or not. It is possible to have instances where an initial service is an emergency or after hour event, and the rest of the service is nonemergency.
Per Addendum 1 to the project RFP documents, three of the existing generators have been bid for replacement. The City does not know exactly when they will be replaced. They are all being replaced with Kohler brand generators. Therefore, the instructions for the Schedule of Compensation Rates for Routine Annual Services were included in the Addendum as follows:
For Routine Annual Services, the three affected line items are below. Contractor shall calculate the FY24 Service Cost for the manufacturer and model for the generator listed for that line on
cost for the replacement generator manufacturer and model listed below and record the cost in the appropriate field.
Line 6
Line 14
Line 16
Location
Jackson Booster
C Lift Station
I Lift Station
Address Manufacturer
3482 White Oak Ct. Kohler
3272 Quail Lane Kohler
19160 Saffron Drive Kohler
Model
200REOZJF
80REOZJF
30REOZK
15 Updated: May 2023
DocuSign Envelope ID: 92DCEF23-1 AB0-43EC-A60F-ADEB967E 1 B84
EXHIBIT B
SCHEDULE OF COMPENSATION RATES
Task 1 - Routine Annual Services - All Generators
As described in the scope of work, the annual services cost per unit must include all parts, materials, field work shoo work welding labor travel mileage and any other expenses required to do the work . . . , , FY24 Routine FV25 Routine FV26 Routine
Annual Service Annual Service Annual Service
UNIT # LOC ATION ADDRESS MANUFACTURER MODEL SERIAL # VEAR KW Cost Cost Cost 105 Edes Street
$2295 2495 2595 1 W19016 PORTABLE TRAILER• Bus Yard• Blue Star VD150-02FT4 7008485967 2019 150 1100 Diana Avenue $2295 $2495 $2595 2 W17014 PORT ABLE TRAILER• Diana #3 wen• Blue Star VD150-02FT4 103507 2017 150 1240 San Pedro Avenue
$2295 $2495 $2595 3 W16013 PORTABLE TRAILER• San Pedro Well• Blue Star VD150-02FT4 l-10981 2016 150 100 East Dunne Avenue
$2295 $2495 $2595 4 W13007 PORTABLE TRAILER• Dunne # l & 2 Wells• Doosan G190 451800UCXES7 2013 190 5 W05020 HOLIDAY RESERVOIR 3100 Lakeview Court Kohler lOROZ 2037908 $1655 $1795 $1950 2005 10
6 W06022 $2295 $2495 $2595 JACKSON BOOSTER 3482 White Oak Ct Katolight D200FRJ 4T2 106704-0405 2006 200 16360 Oak Canyon
$2295 $2495 $2595 7 W16005 JACKSON RESERVOIR Drive Kohler 150REOZIF SGM32GT36 2016 150 $3615 $3830 $3995 8 W92008 E. DUNNE BOOSTER 2375 East Dunne AvenuE Catapillar 3412 81211841 1992 500 200 Diana Avenue $2295 $2495 ;,2595 9 Wl5012 PORTABLE TRAILER" Diana #1 wen• Magnum 6068HFG95A PE6068R054060 2015 150 490 Llagas Road
$2295 $2495 $2595 10 W09023 PORTABLE TRAILER* llagas8ooster• Kohler lSOREOZJD 2259122 2009 150 470 East Main Avenue
$2295 $2495 $2595 11 Wl4011 PORTABLE TRAILER• Main Well* Doosan Gl90 461126UAYES7 2014 190 17002 Murphy Avenue
$2295 $2495 $2595 12 W19017 PORTABLE TRAILER• Nordstom Well* Blue Star VD 150-02FT4 7008495531 2019 150 105 Edes Street
$2295 $2495 $2595 13 W19024 PORTABLE TRAILER* Bus Yard• Blue Star VD 150-02FT4 7008499277 2019 150 $1955 $2130 $2295 14 S03006 C LIFT STATION 3272 Quial lane Kohler 80REOZJB 0768962 2003 80 $1650 $1795 $1995 15 503018 B LIFT STATION 17558 Holiday Drive Kohler 40REOZl8 0761654 2003 40 1E 504019 I LIFT STATION 19160 Saffron Drive Synergy 30JDA 00-210323-01 $1650 $1795 $1995 2004 30 OLYOOOOOKNPF35S $1650 $1795 $1995 17 S06021 G LIFT STATION 18615 Monterey Road Olympian DP40P2 2006 40 16035 Jackson Oaks
$1650 $1795 $1995 18 Sl8025 J LIFT STATION Drive Kohler 40REOZK4 33G3GMFN0007 2018 40 105 Edes Street
$1995 $2195 $2395 lS S14009 PORTABLE TRAILER* Bus Yard• Generac MMG75D 1409119 2014 75 105 Edes Street
$1995 $2195 $2395 20 S15010 PORTABLE TRAILER• Bus Yard• Magnum <i04SHFG92 PE404SR089480 2015 75 17670 Racoon Court
$1995 $2195 $2395 21 Sl 7003 PORTABLE TRAILER• A lift Station• Grand Watts TADS71VE 7005308517 2017 60 WOODLAND COMM SIT $1650 $1795 $1995 22 SG035 2275 Rolling Hills Drive Generac SG003SAG035 3001737818 2017 32 1305 West Dunne
$1650 $1795 $1995 23 B01002 El TORO RESERVOIR Avenue Generac 1554330100 2062789 2001 45 $2585 $2745 $2945 24 889004 CITY HALL 17555 Peak Avenue Catapillar 3408 78203200 1989 400 $2450 $2615 $2795 25 B85001 SCHOOL DIST/ CORP W 105 Edes Street DMT 250 G CUMMINS 860280 1985 250 16200Vineyard
$2585 $2745 $2945 26 899013 POLICE STATION Boulevard Generac 6063TK3SR 06R0774364 1999 350 2100 East Dunne Engine# 67057 $1650 $1795 $1995 27 #813 FIRE STATION Avenue Generac 9SA00415-S 2020473 so 18300 Old Monterey
$1650 $1795 $1995 28 11822 FIRE STATION Road Generac 95A004133-S 2022956 so • LOCATIONS CHANGE ON PORTABLE UNITS Annual Total $59,275 $64,250 $68,615 Three Year Total $194,075.00
16
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E18B4 Task 2- Preventive Maintenance Services (PM-3)*
The Preventive Maintenance Service is a 3-year rotational program. PM-3 maintenance costs shall include all parts, materials, field work, welding, labor, travel, mileage, and any other expenses required to do the work. PM-3 services and routine annual services shall be performed concurrently on those generators that are due for PM-3 maintenance in that fiscal year.
FY 23/24 PM-3 FY 24/25 PM-3 FY 25/26 PM-3
Cost/Unit Cost/Unit Cost/Unit
1 B01002 $2055 B85001 $4275 B89004 $4210
2 514009 $2875 B99013 $4225 506021 $2055
3 W17014 $3145 503018 $2055 515010 $2850
4 W92008 $4275 517003 $2850 W16013 $3145
5 W13007 $3310 518025 $2025 W19016 $3145
6 W14011 $3145 SG035 $2025 W19017 $3145
7 W15012 $3145 W05020 $1690 W19024 $3145
8 Fire #813 $1995 W06022 $3145 523006 $2850
9 Fire #822 $1995 W09023 $3145 523019 $2055
10 W23022 $3145
Total FY23/24 $25,940 FY24/25 $25,435 FY25/26 $29,745
PM-3 Total
Three years $81,120
Generator manufacturer and model information is listed on Page 16 except for units 523006, 523019, and W23022. Manufacturer and Model for those units listed below:
523006 - Kohler 80REOZJF
523019 - Kohler 30REOZK
W23022 Kohler 200REOZJF
*This is a revised version of page 17 and shall be used in place of the original page 17. 17
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 B84 Task 3 - On-Call Emergency and Non-Emergency Repairs
Time and material costs associated with emergency/after-hours and non-emergency generator repair services. The City shall not be directly invoiced for the following:
• Travel and/or transportation of workers;
• Parts and materials acquisition including freight, handling, and delivery; and • Movement of Contractor owned or rented equipment.
For purposes of the agreement, these are considered overhead, and the costs shall be included in the fixed hourly labor rates on this page. All invoices to the City for on-call emergency and non-emergency repair services must include a breakdown of number of hours for all fixed rates charged and the original cost and mark up price for all parts and materials charged. The City shall reserve the right to request backup documentation for the contractor's original cost on parts and materials.
NON-EMERGENCY REPAIR SERVICE FIXED HOURLY RATE
SUPERVISOR $ 2SJ. 75/HOUR
SERVICE PERSON $ 251.75/HOUR
SERVICEPERSON ASSISTANT $ 251.75/HOUR
SHOP WORK
SHOP LABOR $ 251.75/HOUR
EMERGENCY/ AFTER-HOURS REPAIRS
MONDAY-FRIDAY AFTER HOURS $ 378/HOUR
SATURDAY $ 378/HOUR
HOLIDAY /Sunday $ 480/HOUR
-- --
PARTS AND MATERIALS
MARK UP_ OVER COST on non CAT parts %20
18
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1BB4 If needed - Generator Rentals
Weekly rates shall include all costs to transport to and from the site and labor and materials for setup. The contractor shall confirm equipment and connection compatibility of rental generators with City facilities.
Generator Weekly Rates Through 2026
20 KW $ size not available
36 KW $ size not available
50KW $ size not available
60 KW $995
70 KW $ size not available
80 KW $ size not available
100 KW $1125
150 KW $1200
200 KW $1795
250 KW $ size not available
300KW $ size not available
350 KW $3175
400 KW $3300
19
DocuSign Envelope ID: 92DCEF23-1AB0-43EC-A60F-ADEB967E1 B84
EXHIBIT C
SCHEDULE OF PERFORMANCE
Routine annual services shall be performed on normal workdays defined as non-holiday Mondays through Thursdays, 6:30 AM through 4:00 PM and Fridays, 6:30 AM through 3:00 PM.
These services shall be scheduled in the months of October through December. Invoices for annual services shall not be sent to the City without the service, load test, and oil analysis reports completed and attached.
PM-3 and routine annual service shall be performed concurrently on those generators that are due for PM-3 maintenance in that fiscal year. Preventive maintenance and repair services shall be performed on normal workday hours defined as non-holiday Mondays through Thursdays, 6:30 AM through 4:00 PM and Fridays, 6:30 AM through 3:00 PM. Preventive maintenance services shall be scheduled in the months of October through December.
Non-Emergency Repairs - Contractor shall respond to email or phone requests for estimates within 24 hours and provide written estimates within three business days of the original request date. It shall be the Contractor's responsibility to ensure it has all information to prepare accurate estimates. Emergency Repairs - Once the City initiates a communication for emergency service, the Contractor must be able to reach the site of the emergency within 2 hours of the initial communication.
20 Updated: May 2023
9 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Chris Ghione, Public Services Director
APPROVED BY: City Manager
PAVEMENT CONDITION UPDATE AND PAVEMENT REHABILITATION
PLANNING UPDATE
RECOMMENDATION(S)
Receive update.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Transportation Master Plan
REPORT NARRATIVE:
The purpose of this update is two-fold. One, to share and provide a comprehensive report on pavement conditions and, two, to provide an update on future pavement condition planning for the City.
Pavement Condition Update
The City's most recent overall system-wide Pavement Condition Index (PCI) rating for the end of calendar year 2024 was 74. This is a slight reduction in the overall systemwide PCI rating of 75 at the end of 2023. Until 2024, the City has steadily improved the condition of its streets since 2018 through investment of City dollars, annual funding from State Senate Bill 1 (Road Repair and Accountability Act of 2017), and Measure B funding (2016 voter approved countywide half-cent sales tax to enhance transportation).
However, the City still does not have the adequate funds to improve the pavement condition into the future. In 2024, the City had a consultant complete a detailed Pavement Management Report and a survey of pavement conditions throughout the City. This report was funded through grant funding from MTC and is available online here:
www.morganhill.ca.gov/DocumentCenter/View/53950/Updated-Morgan-Hill-PTAP-25-
9 Rev01-for-Web
The survey of City streets was taken in late 2024 and the report was completed in January 2025. The report also identifies a backlog of $32.4 million in pavement rehabilitation. Comparatively, in 2017, the City had an estimated backlog of $23.2 million, which, with inflation in today's dollars, would be $29.8 million. This effectively means the City has seen a slight increase in its backlog since 2017. The report provides various details and scenarios on pavement conditions and the prediction of pavement conditions based on various funding scenarios.
Pavement Planning
The City prioritizes use of its limited funding in the repair of the City’s streets using the following criteria:
• Repairing and maintaining arterial and collector roadways ahead of residential streets.
• Pavement condition through review of the pavement condition index for each specific street segment.
• Grouping roadways that are adjacent to limit impacts to residents and achieve cost savings related to mobilization costs.
• Repairing roadways that are ongoing safety issues.
• Repairing street segments that reduce the ongoing and repeated maintenance needs for the City.
City staff are in the process of preparing the 2025 Pavement Rehabilitation Project. As planned, the project prioritizes the repair of the City’s arterial and collector roadways, while allocating available funds to the resurfacing of residential streets that are significantly degraded. It should be noted that the City is looking to rehabilitate residential streets in Woodland Estates, which has not seen a rehabilitation since being constructed in the late 1960's. The planned work for the coming five years is available on the City's Pavement Rehabilitation webpage
at: https://morganhill.ca.gov/2539/Pavement-Rehab-Street-Cut-Moratorium. It is also included graphically in Attachment 1. The pavement rehab plans for the next 3 years are included in the report below for convenience:
2025 Planned Pavement Rehabilitation
o Llagas Road - West of Llagas Court
o Streets within Woodland Acres Neighborhood, including Rolling Hills Drive, Woodland Avenue, Woodland Court, Rocky Ridge Road, Greenwood Avenue, Black Oak Court o Tilton Avenue - West of Dougherty
o Main Avenue - Condit Road east to the City Limit - Jointly funded with the County of Santa Clara
9 o Sunnyside Avenue - Spot repairs
o Arterial Street Sealing – Streets TBD
o Crack Sealing - Streets TBD
o Monterey Road from Cochrane Road to East Middle Avenue/City limit - Grant Project** **Project will include median work, sidewalk extensions, ADA ramp improvements and Bike Lane improvements. It will likely occur over a period of late 2025 through Summer 2026.
2026 Planned Pavement Rehabilitation
o Streets within western Jackson Meadows Neighborhoods, including Gallop Drive, Hay Loft Way, Hay Loft Court, Fountain Oaks Drive, Fountain Court, Saddleback Drive, Gitano Court, Huston Court, Pinto Court, Palomino Court, Buckskin Court, Sorrel Way, Cimarron Drive, Calero Court, Saddlehorn Way, Ranger Court, Arabian Court, Feliz Court, Ponderosa Court, Fountain Avenue
o John Telfer Drive from W Main Ave to the north end
o Arterial Street Sealing – Streets TBD
2027 Planned Pavement Rehabilitation
o Streets within the Calle Mazatan Area, including Calle Mazatan, Corte Arqueta, Corte Cabas, Calle Cabezal, Calle Del Sol Way, Calle Caballeria, Calle Atavio, Calle Asta, Calle Caballeria Ct, Bel Air Way, Corte Cabanil, Grand Prix Way, Caprice Court, Landau Court, La Sabre Court, Bel Air Court, Biscayne Court, Impala Court, and Diana Avenue from Butterfield Boulevard to Grand Prix Way
o Butterfield Boulevard from Cochrane Road to Watsonville Road o Arterial Street Sealing – Streets TBD
COMMUNITY ENGAGEMENT:
Inform
City staff work on a significant communication planning effort to be implemented ahead of the work, which is planned to occur during the summer months. City staff regularly receive requests for pavement repairs from throughout the community and these are reviewed and repaired by street maintenance staff if smaller in nature or incorporated into the larger pavement rehab planning if larger in nature. The City has a page dedicated to pavement rehabilitation on the City's website that outlines long term planning for pavement rehabilitation. The page is available at:
www.morganhill.ca.gov/2539/Pavement-Rehab-Street-Cut-Moratorium
9 ALTERNATIVE ACTIONS:
The City Council could provide staff with additional direction or feedback as deemed appropriate. Since it takes City staff a significant amount of time to design a project, Council would be able to provide comments or direct changes for the 2026 project and later without delaying project work.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On January 17, 2024, the City Council received an Update Regarding Pavement Rehabilitation Planning.
On May 15, 2024, the City Council adopted a resolution approving FY2024-25 list of street rehabilitation projects funded by Senate Bill (SB) 1: the Road Repair and Accountability Act.
On June 19, 2024, the City Council adopted the FY2024-25 through 2029-30 Capital Improvement Program Budget.
FISCAL AND RESOURCE IMPACT:
There is no fiscal impact associated with receiving the report. Award of future projects and appropriations will require additional action by the City Council.
CEQA (California Environmental Quality Act):
Categorical Exemption
The activities described in this Staff Report are categorically exempt under CEQA, specifically pursuant to Section 15301 of the CEQA Guidelines (Existing Facilities), as the subject work involves the repair, maintenance, or minor alteration of existing City facilities involving negligible or no expansion of use of those facilities.
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE DR
RUSTLING OAK CT
PALOMINO CT
SAN RAMON DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK VIEW CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAH CT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E DUNNE AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
CITY OF MORGAN HILL
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE
DR
RUSTLING OAK CT
PALOMINO CT
SAN
RAMON
DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK
VIEW
CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAHCT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND
CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E
DUNNE
AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
Printed: 2/18/2025
CITY OF MORGAN HILL
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE
DR
RUSTLING OAK CT
PALOMINO CT
SAN
RAMON
DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK
VIEW
CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAHCT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND
CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E
DUNNE
AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
Printed: 2/18/2025
CITY OF MORGAN HILL
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE
DR
RUSTLING OAK CT
PALOMINO CT
SAN
RAMON
DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK
VIEW
CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAHCT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND
CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E
DUNNE
AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
Printed: 2/18/2025
CITY OF MORGAN HILL
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE
DR
RUSTLING OAK CT
PALOMINO CT
SAN
RAMON
DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK
VIEW
CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAHCT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND
CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E
DUNNE
AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
Printed: 2/18/2025
CITY OF MORGAN HILL
SPARHAWK DR
CLAREMONT DR
SAN LUIS WAY
SAFFRON DRIVE
COCHRANE CIR
MATHILDA CT
SERENE DR
MONTEREY ST
LA RENA CT
NATIVE DANCER DR
WALNUT GROVE
DR
RUSTLING OAK CT
PALOMINO CT
SAN
RAMON
DR
SHADY HOLLOW DR
SAINT MARKS AVE
OAK
VIEW
CT
VIA DEL CASTILLE
RAILROAD AVE
SUTTER BLVD
SKIP AWAYCT
SAN ANTONIO WAY
SAVANNAHCT
MONTEREY ST
SORRELL WAY
MORGAN AVE
WOODLAND
CT
MEADOW CT
OAK CANYON DR
ROLLING HILLS DR
MAPLE AVE
E
DUNNE
AVE
FOOTHILL AVE
GLEN AYRE DR
BARRETT AVE
BURNETT AV
E MAIN AVE
HOLIDAY DR
W EDMUNDSON AVE
US 101
SPRING AVE
Current PCI Condition
Printed: 2/18/2025
CITY OF MORGAN HILL
10 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager
RATIFY CITY POSITION ON PENDING LEGISLATION
RECOMMENDATION(S)
Ratify the City’s position supporting pending legislation, Senate Bill 456 (Ashby) Community Beautification Act.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Enhancing Diversity and Inclusiveness
Advocating for Local, Regional, and State Legislative Initiatives REPORT NARRATIVE:
Per Resolution No. 20-010 (Attachment 1), the City Council recognizes occasional situations arise where communication indicating support or opposition on pending State, County, or other regional boards’ legislation or action that could be important and may occur prior to the next scheduled City Council meeting. Under these circumstances, the Mayor or City Manager is delegated the authority to prepare, execute and transmit written or verbal communications indicating a City’s position when any of the following criteria are met: a) the League of California Cities, or a similar organization, has requested the City to comment or take a position, b) the timing to express a position occurs prior to the next scheduled Council meeting, and c) the pending State, County, or other regional boards’ legislation or action clearly supports or clearly hinders the implementation or fulfillment of an adopted City Council Priority, Goal, or Strategy in a substantial manner such that it is in the best interest of the City to indicate its comment or position. When this occurs, a written report to the City Council for acceptance is required at the next possible meeting.
BACKGROUND
In 2023, the Contractors State License Board began notifying cities that muralists fall within the definition of a "contractor" and therefore must carry a license for projects exceeding $500. To do this, muralists must accumulate years of specialized experience, pass an examination, and pay annual fees.
On March 5, 2025 the League of California Cities issued a press release announcing they are co-sponsoring SB 456 (Ashby) with California Arts Advocates making it easier
10 for cities to commission murals by providing a narrow exemption to these state licensing requirements.
The City of Morgan Hill recognizes that public art and murals are proven drivers of community and economic health, attracting tourists, supporting jobs, generating revenue, and improving public safety and well-being. The City has previously hired muralists to perform on various City facilities, both large and small. Many of these muralists are local and are doing their art as secondary employment and/or passion projects. In many of these cases, under current state law, these artists would be unable to take the necessary steps to become licensed. This has and will continue to result in few local artists being able to create murals for the City.
For these reasons, on March 14, 2025, the City sent a letter in support of the Community Beautification Act (Attachment 2) via the California Legislature Position Portal. The full SB 456 Bill Text is included as Attachment 3.
COMMUNITY ENGAGEMENT:
Inform - this report serves to inform the Community on the City’s position on pending legislation that directly impacts the City of Morgan Hill.
ALTERNATIVE ACTIONS:
The City Council could rescind the position taken.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
City Council periodically ratifies City positions on various pending State, County or other regional board legislation or actions that have a direct impact on the City of Morgan Hill.
FISCAL AND RESOURCE IMPACT:
Tracking legislation is an activity included in the annual workplan of the City Manager’s Office.
CEQA (California Environmental Quality Act):
Not a Project - administrative action/activity without an impact.
17575 Peak Avenue
Morgan Hill, CA 95037-4128
TEL: (408) 779-7271
FAX: (408) 779-3117
www.morganhill.ca.gov
March 14, 2025
The Honorable Angelique Ashby
California State Senate
1021 O Street, Room 8630
Sacramento, CA 95814
RE: SB 456 (Ashby) Community Beautification Act.
Notice of SUPPORT (As Introduced 02/19/25)
Dear Senator Ashby,
The City of Morgan Hill is pleased to support SB 456 (Ashby), which would exempt muralists from having to obtain a contractors license through the California State Licensing Board (CSLB) before being commissioned for public and private art projects.
The City of Morgan Hill recognizes that public art and murals are proven drivers of community and economic health, attracting tourists, supporting jobs, generating revenue, and improving public safety and well-being.
However, in 2023, public notices began being issued to municipalities indicating that muralists fall within the definition of a "contractor" under Business and Professions Code section 7026. As a result, muralists must carry a contractor's license if they undertake a mural on a building for more than $500. Additionally, per Business and Professions Code section 7028.15 (e), city staff may be fined for knowingly hiring an unlicensed muralist. Due to these licensure requirements, cities across California have had to cease or stall the implementation of mural projects.
To qualify for these commercial licenses, muralists must accumulate four years of specialized experience under a licensed contractor, pass the Law and Business examination, and pay annual licensing fees. These requirements create unnecessary barriers to work on public art projects and expose city employees and artists to fines if such requirements are not met.
The City of Morgan Hill has previously hired muralists to perform on various City facilities, both large and small. Many of these muralists are local and are doing their art as secondary employment and/or passion projects. In many of these cases these artists would be unable to take the necessary steps to become licensed.
This has resulted in few local artists being able to create murals for the City.
Muralists provide a fundamentally different service than a painting contractor, as their work is an artistic expression rather than addressing the structural integrity of a building. It is appropriate to provide a narrow exception to the state’s licensing requirements for muralists, as SB 456 seeks to provide them with the flexibility to continue their artistic expression.
For these reasons, the City of Morgan Hill is pleased to support SB 456 (Ashby).
Sincerely,
Mark Turner
Mayor
cc: Assemblymember Gail Pellerin
Senator Dave Cortese
Montana Cruz, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected]
SENATE BILL No. 456
Introduced by Senator Ashby
(Coauthor: Senator Laird)
February 19, 2025
An act to amend Section 7044 of the Business and Professions Code, relating to professions and vocations.
legislative counsel’s digest
SB 456, as introduced, Ashby. Contractors: exemptions: muralists.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law makes it a misdemeanor for a person to engage in the business, or act in the capacity, of a contractor without a license, unless exempted. Existing law exempts from the Contractors State License Law, among other things, a nonprofit corporation providing assistance to an owner, as specified.
This bill would exempt from that law a muralist, as defined, who produces a mural, as defined, pursuant to an agreement with a person who could legally authorize the work.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 7044 of the Business and Professions line 2 Code is amended to read:
line 3 7044. (a) This chapter does not apply to any of the following:
99
line 1 (1) An owner who builds or improves a structure on his or her line 2 the owner’s property, provided that both of the following conditions line 3 are met:
line 4 (A) None of the improvements are intended or offered for sale. line 5 (B) The property owner personally performs all of the work or line 6 any work not performed by the owner is performed by the owner’s line 7 employees with wages as their sole compensation. line 8 (2) An owner who builds or improves a structure on his or her line 9 the owner’s property, provided that both of the following conditions line 10 are met:
line 11 (A) The owner directly contracts with licensees who are duly line 12 licensed to contract for the work of the respective trades involved line 13 in completing the project.
line 14 (B) For projects involving single-family residential structures, line 15 no more than four of these structures are intended or offered for line 16 sale in a calendar year. This subparagraph shall not apply if the line 17 owner contracts with a general contractor for the construction. line 18 (3) A homeowner improving his or her the homeowner’s line 19 principal place of residence or appurtenances thereto, provided line 20 that all of the following conditions exist:
line 21 (A) The work is performed prior to sale.
line 22 (B) The homeowner has actually resided in the residence for line 23 the 12 months prior to completion of the work.
line 24 (C) The homeowner has not availed himself or herself of claimed line 25 the exemption in this paragraph on more than two structures more line 26 than once during any three-year period.
line 27 (4) A nonprofit corporation providing assistance to an line 28 owner-builder, as defined in subdivision (a) of Section 50692 of line 29 the Health and Safety Code, who is participating in a mutual line 30 self-help housing program, as defined in Section 50078 of the line 31 Health and Safety Code.
line 32 (5) A muralist who produces a mural.
line 33 (A) For purposes of this section, a “muralist” means an artist line 34 who draws, paints, applies, executes, restores, conserves, or affixes line 35 visual art directly onto walls, ceilings, or other fixtures of a line 36 building or structure pursuant to an agreement with a person who line 37 could legally authorize the work.
line 38 (B) For purposes of this section, a “mural” means a unique line 39 work of visual art that is protected by copyright, trademark, label, line 40 or patent and that is drawn or painted by hand directly upon, or 99 SB 456 — 2 —
line 1 affixed directly to, an exterior or interior wall or ceiling of a line 2 building or structure.
line 3 (b) In all actions brought under this chapter, both of the line 4 following shall apply:
line 5 (1) Except as provided in paragraph (2), proof of the sale or line 6 offering for sale of a structure by or for the owner-builder within line 7 one year after completion of the structure constitutes a rebuttable line 8 presumption affecting the burden of proof that the structure was line 9 undertaken for purposes of sale.
line 10 (2) Proof of the sale or offering for sale of five or more line 11 structures by the owner-builder within one year after completion line 12 constitutes a conclusive presumption that the structures were line 13 undertaken for purposes of sale.
O
99 — 3 — SB 456
11 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND FEBRUARY 2025
FINANCIAL AND INVESTMENT REPORTS
RECOMMENDATION(S)
Receive and file reports.
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 February 2025 financial and investment reports.
February 2025 Financial Report
The Revenue and Expense Summary through February 2025 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $30.0 million or about 53% of the budget. Expenditures, including encumbrances, amounted to $40.9 million, of which approximately $2.8 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $38.3 million. This represents an increase of $2.6 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $3.4 million, mainly due to overall cost increases.
Budget Update
There has been no material change since the last budget update to the Council on March 5, 2025. Regarding water revenue, Morgan Hill residents consumed approximately 8% more water through February compared to the prior three-year average. As a result, no revenue stabilization water rate was implemented.
COMMUNITY ENGAGEMENT:
11 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
February 28, 2025 - 67% 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 FEBRUARY 2025 – 67% OF YEAR COMPLETE General Fund – Revenues through February totaled $30.0 million, or about 53% of the budget.
Regarding the property tax revenue forecast, the County estimates the City will receive approximately $20.0 million in property tax revenue for the current fiscal year, slightly exceeding 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 shows only a modest increase over 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 $11.9 million. This represents a reduction of approximately $1.0 million from the current year's budget, partially attributable to lower tax receipts from vehicle sales and one-time adjustments in the prior year’s receipts.
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 February 28, 2025.
General Fund expenditures and encumbrances through February totaled $40.9 million, of which approximately $2.8 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $38.3 million. This represents an increase of $2.6 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $3.4 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 $1.3 million as of February 28, 2025. 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
$8.9
$11.0 $12.9 $12.7 $12.2 $12.8
$6.2
$4.4
$5.9 $5.7 $6.0 $5.9
$2.7
$5.6
$6.9 $8.1 $9.2 $10.3
$6.8
$9.8
$9.7 $7.8
$9.5 $8.1
$5.4
$46.8
$52.1 $52.4
$56.0 $56.5
$30.0
0 10
20 30
40 50
60 FY20-21 FY21-22 FY22-23 FY23-24 Budget
FY24-25
YTD
FY24-25
Millions ($)
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 FEBRUARY 2025 – 67% 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 February totaled $3.9 million compared to the prior year to date amount of approximately $3.7 million. Expenditures, including encumbrances, totaled $4.2 million.
Debt Service Funds – Expenditures through February totaled $0.6 million. The debt service for the first half of the year includes both interest and principal, while the second half will include interest only. Debt service payments were scheduled when the bonds were issued and are budgeted for the months specified 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 FEBRUARY 2025 – 67% OF YEAR COMPLETE Wastewater Operations – Revenues through February 28, 2025 totaled $10.2 million. Expenditures and outstanding encumbrances totaled $11.0 million or 65% 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 February 28, 2025.
(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 10.2 Expenditures 13.3 14.8 16.0 14.9 16.8 11.0 Operating Margin ‐ 0.1 (0.7) 0.3 (0.2) (0.8) Operating Margin
without Encumbrances ‐ 0.1 (0.7) 0.3 (0.2) (0.8) Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through February 28, 2025 totaled $12.7 million. Water Operations expenditures, including outstanding encumbrances, totaled $13.4 million. Morgan Hill residents consumed about 8% more water through February 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 February 28, 2025.
(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 12.7 Expenditures 16.5 15.2 18.0 19.1 21.6 13.4 Operating Margin ‐ 0.8 0.1 (0.4) (0.1) (0.7) Operating Margin
without Encumbrances ‐ 0.8 0.1 (0.4) (0.1) (0.2) Investments – Five securities were called, and three new securities were purchased. Total interest earnings received on investments were $405,000 during the month.
% OF ACTUAL PLUS % OF
FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 30,021,077 $ 53% $ 40,935,146 63%
Development Services 3,870,001 65% 4,179,471 65%
Wastewater Operations 10,201,603 61% 10,963,983 65%
Wastewater Other 14,168,645 78% 10,778,542 56%
Water Operations 12,732,984 59% 13,448,864 62%
Water Other 7,666,409 53% 13,195,465 54%
Other Special Revenues * 4,023,109 47% 6,707,402 59%
Capital Projects & Streets 20,974,138 64% 29,989,618 59% Debt Service 456,939 66% 573,766 85%
Internal Service 9,259,244 64% 10,069,578 63%
TOTAL FOR ALL FUNDS 113,374,150 $ 60% $ 140,841,835 61% * 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
February 28, 2025 - 67% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
67%
% OF PRIOR YEAR % CHANGE FROM
REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 19,411,020 $ 8,856,061 $ 46% 8,847,308 $ 0% Sales Tax 12,816,469 6,243,211 49% 6,575,702 -5%
Franchise Tax 3,185,872 1,282,171 40% 1,371,910 -7%
Hotel Tax 2,678,000 1,415,821 53% 1,444,634 -2%
Other Agencies 1,601,204 1,062,660 66% 656,193 62%
Service Charges 10,323,751 6,830,160 66% 6,742,679 1%
Interest/Other 3,107,665 2,092,860 67% 1,585,954 32%
Transfers In 3,365,760 2,238,133 67% 2,145,310 4%
TOTAL REVENUES 56,489,742 $ 30,021,077 $ 53% 29,369,692 $ 2% 0% 10% 20% 30% 40% 50% 60% 70% 80%
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
February 28, 2025 - 67% of Year Complete
67%
ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 7,351,159 $ 4,495,750 61% 4,111,553 $ 9% Community Services 19,922,029 12,708,480 64% 12,147,827 5% Police 25,598,203 15,847,915 62% 14,842,048 7%
Fire 10,381,160 6,910,847 67% 6,289,335 10%
Transfers Out 1,458,230 972,153 67% 869,178 12%
TOTAL EXPENDITURES $ 64,710,781 $ 40,935,146 63% 38,259,940 $ 7% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
February 28, 2025 - 67% of Year Complete
67%
City of Morgan Hill
Recreation Report - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% of Year Complete
% of
Budget February 2025 YTD Budget
Revenues
Membership Services & Rec Programs 6,222,399 $ 459,456 $ 4,055,985 $ Facility Rentals 1,197,395 117,446 1,018,254
Community Services 147,498 2,410 116,352
Transfers in 100,000 6,250 66,667
Total Revenues 7,667,292 $ 585,562 $ 5,257,258 $ 69%
Less: Expenditures
Membership & Program Services 8,040,818 $ 448,664 $ 4,700,699 $ Facility Rentals 633,051 43,537 361,122
Community Services 761,973 49,537 373,606
Total Expenditures 9,435,843 $ 541,737 $ 5,435,426 $ 58% Net Impact without encumbrances (1,768,551) $ 43,824 $ (178,168) $ Encumbrances - - 1,107,067
Net Impact with encumbrances (1,768,551) $ 43,824 $ (1,285,235) $
The chart below shows cash balances by fund type reconciled to City's financial system:
City of Morgan Hill
Monthly Investment Report ‐ February 28, 2025
The following are the snapshots of City's investment portfolio as of February 28, 2025. The first chart shows the portfolio composition by investment type:
LAIF ‐ $0.1M
<1%
CA Class ‐ $21.8M
10% Treasury ‐
$13.7M
6%
Money
Market ‐
$10.9M
5%
Federal Agency Issues‐
$143.5M
70%
Certificate of Deposits ‐
$1.0M
<1%
Bond Reserves/Trust ‐
$15.4M
7%
Cash & Other Deposits ‐ ($1.5M)
<1%
Investment Portfolio Composition ‐ $204.9 Million
LAIF ‐ $0.1M
CA Class ‐ $21.8M
Treasury ‐ $13.7M
Money Market ‐ $10.9M
Federal Agency Issues‐
$143.5M
Certificate of Deposits ‐
$1.0M
Bond Reserves/Trust ‐
$15.4M
Cash & Other Deposits ‐
($1.5M)
General Fund, $26.6M Development Services,
$1.5M
Water ‐ Operations,
$2.9M
Water Other, $33.1M
Sewer ‐ Operations,
$1.2M
Sewer Other, $48.3M Other Special
Revenue, $17.7M
Streets and Capital
Projects, $38.1M
Debt Service , $0.8M
Internal Service,
$27.5M
Agency Funds (assessment
dists./refundable deposits),
$7.2M
Cash Balances by Fund Type ‐ $204.9 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%
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
Dec‐24
Jan‐25
Feb‐25
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
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
Dec‐24
Jan‐25
Feb‐25
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
CITY
City of Morgan Hill
Investment Portfolio Detail
As of February 28, 2025
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 $ 62,536 $ 62,536 0.0% $ 62,512 4.33% California C L A S S 21,743,716 21,743,716 10.6% 21,743,716 4.41% WFB Money Market 5,128,649 5,128,649 2.5% 5,128,649 4.28% US Bank ‐ Portfolio of Securities
Dreyfus Treasury Agency MM 261908107 5,773,265 5,773,265 2.8% 5,773,265 4.24% Treasury Note 91282CCZ2 10/8/2021 1,987,656 1,996,069 1.0% 1,904,300 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688 1,963,137 1.0% 1,933,900 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719 2,029,096 1.0% 1,988,280 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323 1,992,544 1.0% 1,971,400 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536 1,838,922 0.9% 1,814,620 3.61% 8/31/2028 8/31/2028 Treasury Note 31282CFJ5 10/7/2024 1,949,794 1,947,962 1.0% 1,927,420 3.76% 8/31/2029 8/31/2029 Treasury Note 91282CFY2 12/19/2024 1,959,077 1,956,799 1.0% 1,987,820 4.39% 11/30/2029 11/30/2029 FFCB Bond 3133ELC28 5/27/2020 2,000,000 2,000,000 1.0% 1,982,260 0.73% 3/5/2025 5/27/2025 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000 2,000,000 1.0% 1,954,520 0.60% 7/20/2025 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000 2,000,000 1.0% 1,953,380 0.63% 7/27/2025 10/27/2025 FFCB Bond 3133EMFR8 11/3/2020 2,000,000 2,000,000 1.0% 1,951,760 0.54% 3/5/2025 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000 2,000,000 1.0% 1,949,500 0.65% 11/18/2025 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000 2,000,000 1.0% 1,949,120 0.64% 5/24/2025 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000 1,000,000 0.5% 974,110 0.60% 3/5/2025 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000 3,000,000 1.5% 2,922,900 0.63% 11/25/2025 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000 2,000,000 1.0% 1,948,880 0.65% 5/26/2025 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000 2,000,000 1.0% 1,941,120 0.47% 3/5/2025 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000 2,000,000 1.0% 1,937,940 0.63% 5/22/2025 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000 2,000,000 1.0% 1,935,680 0.55% 5/28/2025 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000 2,000,000 1.0% 1,937,080 0.65% 5/28/2025 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000 2,000,000 1.0% 1,934,660 0.75% 5/24/2025 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000 2,000,000 1.0% 1,932,960 0.66% 5/25/2025 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000 2,000,000 1.0% 1,932,680 0.65% 5/26/2025 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000 2,000,000 1.0% 1,933,580 0.85% 3/10/2025 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000 2,000,000 1.0% 1,931,960 0.70% 3/16/2025 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000 2,000,000 1.0% 1,930,500 0.80% 3/16/2025 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021 2,000,000 2,000,000 1.0% 1,923,140 1.08% 3/5/2025 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000 2,000,000 1.0% 1,918,020 1.00% 3/30/2025 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000 3,000,000 1.5% 2,883,330 1.13% 7/15/2025 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000 2,000,000 1.0% 1,974,020 0.85% 7/15/2025 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000 2,000,000 1.0% 1,904,580 0.80% 8/26/2025 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000 3,000,000 1.5% 2,864,190 1.00% 5/26/2025 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000 2,000,000 1.0% 1,907,440 0.90% 8/26/2025 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340 2,031,784 1.0% 1,936,580 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960 1,994,722 1.0% 1,902,340 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000 3,000,000 1.5% 2,862,630 1.13% 3/5/2025 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000 2,000,000 1.0% 1,902,280 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000 3,000,000 1.5% 2,859,030 1.05% 3/30/2025 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000 3,000,000 1.5% 2,859,480 1.02% 3/30/2025 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000 2,000,000 1.0% 1,902,440 1.00% 7/19/2025 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000 2,000,000 1.0% 1,906,700 1.30% 11/18/2025 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000 2,000,000 1.0% 1,934,560 1.74% 1/19/2027 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000 2,000,000 1.0% 1,980,040 1.51% 7/25/2025 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000 2,000,000 1.0% 1,997,440 3.48% 3/10/2025 3/10/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000 2,000,000 1.0% 1,988,780 3.28% 12/15/2025 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000 2,000,000 1.0% 1,995,820 4.30% 7/28/2025 7/28/2027 FHLMCTN Bond 3134H1QG1 1/26/2024 3,000,000 3,000,000 1.5% 3,007,260 4.66% 7/26/2025 1/26/2029 FHLB Bond 3130B2M85 9/6/2024 2,000,000 2,000,000 1.0% 2,000,300 5.20% 3/6/2025 9/6/2029 FHLB Bond 3130B2KZ7 9/11/2024 2,000,000 2,000,000 1.0% 1,999,080 5.00% 3/11/2025 9/11/2029 FHLMCMTN Bond 3134HAKY8 9/13/2024 2,985,210 2,986,566 1.5% 2,945,640 4.11% 12/13/2025 9/13/2029 FHLB Bond 3130B2MK8 9/19/2024 2,000,000 2,000,000 1.0% 1,999,120 5.00% 3/19/2025 9/19/2028 FHLMCMTN Bond 3134HALK7 9/19/2024 3,000,000 3,000,000 1.5% 2,997,660 5.00% 3/19/2025 9/19/2029
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLB Bond 3130B2P58 9/26/2024 2,003,014 2,000,000 1.0% 1,968,440 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B2X59 9/27/2024 2,000,000 2,000,000 1.0% 1,978,120 4.00% 9/18/2025 9/18/2028 FHLMCMTN Bond 3134HANZ2 10/1/2024 3,000,000 3,000,000 1.5% 3,000,660 5.00% 2/1/2025 10/1/2029 FHLB Bond 3130B33T8 10/8/2024 2,500,000 2,500,000 1.2% 2,498,850 5.00% 7/2/2025 10/2/2029 FHLB Bond 3130B35N9 10/8/2024 2,000,000 2,000,000 1.0% 1,988,760 4.50% 10/1/2025 10/1/2029 FHLMCMTN Bond 3134HARE5 10/11/2024 2,000,000 2,000,000 1.0% 1,996,260 4.75% 4/11/2025 10/11/2029 FNMA Bond 3135GAW98 10/15/2024 2,000,000 2,000,000 1.0% 1,995,800 5.00% 4/1/2025 10/1/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000 1,994,443 1.0% 1,987,060 4.32% 4/15/2026 10/15/2029 FHLMCMTN Bond 3134HAVE0 10/30/2024 2,000,000 2,000,000 1.0% 1,999,980 5.25% 7/30/2025 10/30/2029 FHLMCMTN Bond 3134HAXT5 11/12/2024 2,000,000 2,000,000 1.0% 2,000,000 5.00% 5/7/2025 11/7/2029 FHLMCMTN Bond 3134HAZW6 11/15/2024 2,000,281 2,000,000 1.0% 1,995,440 5.43% 5/14/2025 11/14/2029 FHLMCMTN Bond 3134HAC92 11/19/2024 3,000,000 3,000,000 1.5% 3,009,900 5.00% 5/19/2025 11/19/2029 FNMA Bond 3135GAYV7 11/26/2024 3,000,000 3,000,000 1.5% 3,001,230 5.25% 3/26/2025 11/26/2029 FFCB Bond 3133ERF48 12/4/2024 2,000,000 2,000,000 1.0% 2,003,000 4.77% 12/4/2025 12/4/2028 FHLMCMTN Bond 3134HAM91 12/13/2024 2,000,000 2,000,000 1.0% 1,997,900 4.70% 6/13/2025 12/13/2027 FNMA Bond 3136GA4B2 12/20/2024 2,000,000 2,000,000 1.0% 2,000,860 5.01% 6/20/2025 12/20/2029 FNMA Bond 3136GA6M6 1/24/2025 2,000,000 2,000,000 1.0% 1,999,340 5.00% 7/24/2025 7/24/2028 FHLB Bond 3130B4MZ1 1/30/2025 2,000,000 2,000,000 1.0% 2,000,040 5.25% 7/22/2025 1/22/2030 FNMA Bond 3136GAAN9 2/13/2025 2,000,000 2,000,000 1.0% 2,001,900 5.05% 8/13/2025 2/13/2030 FNMA Bond 3136GABM0 2/25/2025 2,000,000 2,000,000 1.0% 1,998,800 5.06% 8/25/2025 2/25/2030 FHLB Bond 3130B5A73 2/26/2025 2,000,000 2,000,000 1.0% 1,999,740 4.75% 8/26/2026 2/26/2030 CD ‐ Morgan Stanley Bank 61690DGT9 11/8/2023 250,000 250,000 0.1% 256,518 5.05% 11/8/2028 11/8/2028 CD ‐ Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000 250,000 0.1% 256,518 5.05% 11/8/2028 11/8/2028 CD ‐ American Express 02589AF98 11/8/2023 250,000 250,000 0.1% 256,095 5.00% 11/8/2028 11/8/2028 CD ‐ State Bank India 8562834U7 11/24/2023 250,000 250,000 0.1% 258,813 5.00% 11/24/2028 11/24/2028 Sub Total/Average 163,941,863 $ $ 164,005,307 80.1% 161,037,517 $ 2.78% Total City Managed/Average 190,876,764 $ $ 190,940,208 93.2% 187,972,395 $ 3.01% Bond Reserve Accounts ‐ Held By Trustees 7,535,993 $ $ 7,535,993 3.7% 7,535,993 $ Cash/Deposits (1,490,101) $ $ ‐ (1,490,101) 0.7% (1,490,101) $ PARS and CALPERS CERBT Trust $ 7,887,404 $ 7,887,404 3.8% $ 9,733,607 GRAND TOTAL/AVERAGE $ 204,810,060 $ 204,873,504 100.0% 203,751,893 $
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 4.33% $ 62,536 0.0% $ 62,512 California CLASS All Funds Pooled 4.41% 21,743,716 10.6% 21,743,716 US Bank - Portfolio of Securities All Funds Pooled 2.78% 164,005,307 80.1% 161,037,517 WFB MMA All Funds Pooled 4.28% 5,128,649 2.5% 5,128,649 SUBTOTAL $ 190,940,208 93.2% 187,972,395 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 4.49% 249,367 0.1% 249,367 Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 4.49% 317,377 0.2% 317,377 BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 3.92% 6,557,544 3.2% 6,557,544 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 4.49% 0.2% 411,705 411,705 SUBTOTAL 7,535,993 3.7% 7,535,993
Other Cash/Deposits
General Checking All Funds (1,535,951) -0.7% (1,535,951) 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% 6,527,089
PARS - PENSION Trust 2,650,000 1.3% 3,206,518 **
SUBTOTAL 6,397,303 3.1% 8,243,506
Total Cash and Investments $ 204,873,504 100.0% $ 203,751,893 ** As of 01/31/2025
CASH ACTIVITY SUMMARY
FY 2024-25
07/01/2024 Change in 2/28/2025
Fund Type Balance Cash Balance Balance
General Fund $ 30,617,860 $ (4,016,963) $ 26,600,898
Development Services 1,939,319 (430,440) 1,508,880
Water - Operations 2,386,837 502,702 2,889,539
Water Other 27,894,107 5,188,801 33,082,908
Sewer - Operations 1,178,576 70,899 1,249,475
Sewer Other 41,964,736 6,330,708 48,295,443
Other Special Revenue 17,038,062 636,553 17,674,614
Streets and Capital Projects 39,467,115 (1,312,957) 38,154,158 Debt Service 346,933 448,711 795,644
Internal Service 27,935,786 (466,722) 27,469,064
Agency Funds (assessment dists./refundable deposits) 7,240,095 (87,214) 7,152,881 Total $ 198,009,426 $ 6,864,078 $ 204,873,504
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 FEBRUARY 28, 2025
FOR THE FISCAL YEAR OF 2024-25
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 $ 7,545,860 47% $ 7,698,342 $ (152,481) -2% Property Tax - RPTTF Residual Distribution 2,895,920 2,895,920 1,160,036 40% 1,020,900 139,136 14% Property Tax - Supplemental Roll 304,220 304,220 150,165 49% 128,067 22,098 17% Sales Tax 12,352,215 12,352,215 6,062,813 49% 6,357,589 (294,776) -5% Public Safety Sales Tax 464,254 464,254 180,398 39% 218,113 (37,715) -17% Transient Occupancy Taxes 2,678,000 2,678,000 1,415,821 53% 1,444,634 (28,813) -2% Franchise (Refuse ,Cable ,PG&E) 3,185,872 3,185,872 1,282,171 40% 1,371,910 (89,738) -7% Property Transfer Tax 600,000 600,000 325,536 54% 64,544 260,993 25% TOTAL TAXES 38,691,361 38,691,361 18,122,801 47% 18,500,548 (377,747) -2%
LICENSES/PERMITS
Business License 200,000 200,000 194,563 97% 169,249 25,314 15% Other Permits 80,750 80,750 57,490 71% 26,774 30,716 115% TOTAL LICENSES/PERMITS 280,750 280,750 252,052 90% 196,023 56,029 29%
FINES AND PENALTIES
Parking Enforcement 9,800 9,800 6,312 64% 6,533 (221) -3% Bails & Fines 55,000 55,000 19,049 35% 31,182 (12,133) -39% Administrative Citations 20,000 20,000 56% 11,277 (5,926) 17,203 -34% TOTAL FINES AND PENALTIES 84,800 84,800 36,638 43% 54,918 (18,280) -33%
OTHER AGENCIES
Motor Vehicle in-Lieu 61,800 61,800 73,134 118% 56,686 16,447 29% Other Revenue - Other Agencies 1,601,204 1,332,381 1,062,660 66% 656,193 406,467 62% TOTAL OTHER AGENCIES 1,394,181 1,663,004 1,135,794 68% 712,880 422,914 59%
CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 20,668 62% 24,216 (3,549) -15% Business License Application Review 82,400 82,400 36,758 45% 76,389 (39,630) -52% Membership Services & Rec Programs 6,222,399 6,222,399 4,055,985 65% 3,827,185 228,800 6% Facility Rentals 1,197,395 1,197,395 1,018,254 85% 1,048,244 (29,990) -3% Community Services 147,498 147,498 116,352 79% 48,643 67,710 139% General Administration Overhead 1,756,111 1,756,111 1,121,940 64% 1,171,663 (49,723) -4% Other Charges Current Services 884,448 884,448 460,202 52% 546,340 (86,138) -16% TOTAL CURRENT SERVICES 10,323,751 10,323,751 6,830,160 66% 6,742,679 87,480 1%
OTHER REVENUE
Use of money/property 1,375,045 1,375,045 890,889 65% 865,429 25,460 3% Other Revenues 705,270 705,270 514,609 73% 151,905 362,704 239% TOTAL OTHER REVENUE 2,080,315 2,080,315 1,405,499 68% 1,017,334 388,165 38%
TRANSFERS IN
One Time Transfer 165,000 165,000 110,000 67% 120,000 (10,000) -8% Public Safety Facilities Fund 50,000 50,000 33,333 67% 33,333 0% - Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 100,000 n/a - Countywide Solid Waste 540,328 540,328 360,219 67% 248,667 111,552 45% Streets 851,932 851,932 528,915 62% 492,682 36,233 7%
Park Maintenance 650,000 650,000 433,333 67% 433,333 n/a - Sewer Operations 413,700 413,700 275,800 67% 303,399 (27,599) -9% Water Operations 413,700 413,700 275,800 67% 309,830 (34,030) -11% Open Space 81,100 81,100 54,067 67% 54,067 n/a -
Park Development 100,000 100,000 67% 66,667 16,667 50,000 33% TOTAL TRANSFERS IN 3,365,760 3,365,760 2,238,133 66% 2,145,310 92,823 4% TOTAL GENERAL FUND 56,220,919 56,489,742 30,021,077 53% 29,369,692 651,385 2%
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 851,932 851,932 523,940 62% 490,324 33,616 7% Interest / Other Revenue/Other Charges 2,135 2,135 4,544 213% 5,007 (463) -9% 202 STREET MAINTENANCE 854,067 854,067 528,484 62% 495,331 33,153 7%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 9,707 75% 7,282 2,425 33% Police Grant/SLEF/JAG 100,000 100,000 136% 136,330 (1,464) 137,794 -1% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 112,957 112,957 146,037 129% 145,076 961 1% 206 DEVELOPMENT SERVICES
Building Fees 3,510,850 3,510,850 2,400,776 68% 2,057,665 343,111 17% Planning Fees 954,276 954,276 696,437 73% 1,072,334 (375,897) -35% Engineering Fees 942,327 942,327 587,552 62% 345,851 241,701 70% Other Revenue/Current Charges 550,599 550,599 185,236 34% 184,944 292 0% 206 DEVELOPMENT SERVICES 5,958,052 5,958,052 3,870,001 65% 3,660,794 209,207 6% 207 LONG RANGE PLANNING 1,751,005 1,751,005 656,194 37% 592,335 63,859 11% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 1,161 1,161 1,533 132% 1,276 20% 257 215 and 216 HCD BLOCK GRANT 1,161 1,161 1,533 132% 1,276 20% 257 225 ASSET SEIZURE 2,807 2,807 2,336 83% 1,954 20% 381
229 LIGHTING AND LANDSCAPE 206,415 206,415 115,954 56% 115,109 845 1% 230 COMMUNITY FACILITIES DISTRICT 28,828 28,828 18,241 63% 29,626 (11,386) -38% 232 ENVIRONMENTAL PROGRAMS 501,236 501,236 331,524 66% 399,228 (67,704) -17% 234 MOBILE HOME PARK RENT STAB. 2,872 2,872 5,335 186% 4,995 339 7% 236 HOUSING MITIGATION 2,762,629 2,762,629 1,061,214 38% 2,374,017 (1,312,803) -55% 240 EMPLOYEE ASSISTANCE 1,297 1,297 4,987 385% 5,528 (540) -10% 246 COUNTYWIDE SOLID WASTE 2,279,503 2,279,503 1,286,743 56% 1,580,378 (293,635) -19% 247 ENVIRONMENT REMEDIATION - - n/a - 2,685 (2,685) -100% 255 HOUSING SUCCESSOR AGENCY 463,881 463,881 392,681 85% 315,085 77,596 25% 260 PUBLIC ART 1,411 1,411 330 23% - 330 n/a
TOTAL SPECIAL REVENUE FUNDS 14,928,122 14,928,122 8,421,594 56% 9,723,418 (1,301,824) -13%
CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,999,271 1,999,271 1,799,328 90% 305,853 1,493,474 488% 302 PARK MAINTENANCE 15,507 15,507 56,892 367% 52,996 3,896 7% 303 LOCAL DRAINAGE 1,424,799 1,424,799 425,496 30% 411,773 13,723 3% 304 LOCAL DRAINAGE/NON AB1600 251,296 251,296 249,339 99% 25,686 223,653 871% 306 AGRICULTURE & OPEN SPACE PRESERVATION 18,459 18,459 420,221 2277% 149,259 270,961 182% 308 STREET CIP 3,886,877 3,886,877 3,313,265 85% 1,650,936 1,662,329 101% 309 TRAFFIC IMPACT 4,753,292 4,753,292 1,956,527 41% 687,889 1,268,638 184% 315 PUBLIC SAFETY FACILITIES IMPACT 3,203,214 12,153,214 5,950,194 49% 448,579 5,501,616 1226% 346 PUBLIC FACILITIES NON-AB1600 189,832 189,832 174,185 92% 192,814 (18,630) -10% 347 PUBLIC FACILITIES IMPACT 451,223 451,223 330,702 73% 184,474 146,228 79% 348 LIBRARY 1,414,286 1,414,286 1,286,598 91% 657,498 629,101 96% 350 UNDERGROUNDING 74,302 74,302 72,147 97% 249,337 (177,190) -71% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY - - - n/a 31,536 (31,536) -100% 360 COMMUNITY/REC IMPACT FUND 2,501,528 2,501,528 2,387,401 95% 1,122,448 1,264,953 113% 375 QUIMBY FEE 2,650,042 2,650,042 2,023,360 76% 2,876,579 (853,219) -30% TOTAL CAPITAL PROJECTS FUNDS 22,833,927 31,783,927 20,445,655 64% 9,047,657 11,397,998 126%
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 300,467 300,467 200,082 67% 197,012 3,070 2% 441 POLICE FACILITY BOND 390,939 390,939 256,857 66% 258,684 (1,827) -1% TOTAL DEBT SERVICE FUNDS 691,406 691,406 456,939 66% 455,696 1,243 0%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 9,955,743 62% 8,669,859 1,285,885 15% Interest Income/Transfers 141,661 141,661 45,120 32% 38,331 6,789 18% Other Revenue/Current Charges 397,200 397,200 200,739 51% 3,305 197,435 2% 640 WASTEWATER OPERATION 16,638,861 16,638,861 10,201,603 61% 8,905,624 1,295,979 15% 641 WASTEWATER EXPANSION
Interest Income 275,047 275,047 499,837 182% 415,604 84,233 20% Development Impact Fee 11,546,118 11,546,118 78% 9,036,600 4,834,815 4,201,785 115% 641 WASTEWATER EXPANSION 11,821,165 11,821,165 9,536,437 81% 4,617,389 4,919,048 107% 642 WASTEWATER RATE STABILIZATION 108,613 108,613 71,461 66% 185,567 (114,106) -61% 643 WASTEWATER CAPITAL PROJECT 6,149,134 6,149,134 4,560,748 74% 3,724,904 835,844 22% TOTAL SEWER FUNDS 34,717,773 34,717,773 24,370,249 70% 17,433,484 6,936,765 40% 650 WATER OPERATION
Water Sales 19,620,000 19,620,000 11,590,245 59% 10,392,709 1,197,536 12% Meter Install & Service 107,000 107,000 70,865 66% 76,003 (5,138) -7% Transfers-In / Interest Income 894,617 894,617 552,595 62% 451,842 100,753 22% Other Revenue/Current Charges 926,109 926,109 519,279 56% 84,327 434,951 19% 650 WATER OPERATION 21,547,726 21,547,726 12,732,984 59% 11,355,505 1,377,479 12% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 92,467 92,467 116,167 126% 61,241 54,925 90% Development Impact Fee 3,829,384 3,829,384 80% 3,047,343 1,947,386 1,099,957 177% 651 WATER EXPANSION 3 3,921,851 ,921,851 3,163,510 81% 1,161,198 2,002,311 172% 652 WATER RATE STABILIZATION 115,840 115,840 77,103 67% 64,176 12,927 20% 653 WATER CAPITAL PROJECT 10,380,062 10,380,062 4,425,797 43% 4,914,531 (488,735) -10% TOTAL WATER FUNDS 35,965,479 35,965,479 20,399,393 57% 17,495,412 2,903,982 17% TOTAL ENTERPRISE FUNDS 70,683,252 70,683,252 44,769,642 63% 34,928,895 9,840,747 28%
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,883,241 2,883,241 1,923,998 67% 1,668,704 255,294 15% 740 BUILDING MAINTENANCE 1,421,485 1,421,485 950,319 67% 1,118,363 (168,044) -15% 741 BUILDING REPLACEMENT 1,041,905 1,041,905 699,604 67% 641,275 58,329 9% 745 CIP ADMINISTRATION 2,582,015 2,582,015 1,332,835 52% 902,935 429,900 48% 760 UNEMPLOYMENT INSURANCE 10,206 10,206 6,218 61% 5,476 742 14% 770 WORKERS COMPENSATION 1,157,705 1,157,705 676,484 58% 632,656 43,828 7% 790 EQUIPMENT REPLACEMENT 1,680,580 1,704,881 1,234,780 72% 942,494 292,286 31% 791EMPLOYEE BENEFITS 1,183,215 1,183,215 763,027 64% 570,632 192,396 34% 795 GENERAL LIABILITY INSURANCE 2,519,216 2,519,216 1,671,979 66% 1,405,361 266,617 19% TOTAL INTERNAL SERVICE FUNDS 14,479,568 14,503,869 9,259,244 64% 7,887,896 1,371,348 17% TOTAL FOR ALL FUNDS 179,837,194 $ 189,080,318 $ 113,374,150 $ 60% 91,413,253 $ 21,960,897 $ 24%
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 20,543 $ 520,395 $ 310,616 $ - $ 310,616 $ 60% 268,693 $ .
CITY ATTORNEY 76,495 1,134,397 640,103 111,265 751,368 66% 577,518 CITY MANAGER 48,707 1,007,624 443,991 6 443,997 44% 441,709 HUMAN RESOURCES 72,027 1,087,175 617,131 - 617,131 57% 570,537
COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 44,692 609,913 367,304 - 367,304 60% 332,033 Elections 2,817 354,364 273,858 - 273,858 77% 20,593
COUNCIL SVCS & RECORDS MGMT 47,509 964,277 641,162 - 641,162 66% 352,626 FINANCE 357,767 2,637,291 1,485,572 245,904 1,731,476 66% 1,174,179 TOTAL ADMINISTRATION 623,048 7,351,159 4,138,576 357,174 4,495,750 61% 3,385,261 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 448,664 8,040,818 4,700,699 1,029,560 5,730,259 71% 4,496,557 Recreation Facility Rentals 43,537 633,051 361,122 41,720 402,842 64% 388,203 Innovative Transit 84,364 590,944 473,917 15,179 489,096 83% 390,693 Community Services 49,537 761,973 373,606 35,788 409,393 54% 373,177 Park Maintenance 113,862 1,472,380 755,690 44,632 800,322 54% 689,348 Environmental Services 58,313 1,067,544 411,302 13,934 425,236 40% 293,099 Countywide Solid Waste Program 43,041 540,327 317,816 - 317,816 59% 261,273 Street Maintenance 371,978 3,511,464 2,180,327 38,236 2,218,563 63% 1,589,267 Downtown Maintenance 17,081 378,065 176,764 22,105 198,869 53% 178,220 PD Building Maintenance 47,655 664,355 416,214 70,486 486,700 73% 331,197 Cable Television 7,569 91,234 60,428 - 60,428 66% 59,637 COMMUNITY SERVICES 1,285,601 17,752,155 10,227,884 1,311,640 11,539,524 65% 9,050,671 CODE COMPLIANCE 32,935 405,637 254,490 - 254,490 63% 172,763 INFRASTRUCTURE PLANNING & CONGESTION MGMT 555,166 29,210 281,498 - 281,498 51% 268,845 ECONOMIC DEVELOPMENT PROGRAMS 72,467 1,209,072 560,470 72,499 632,968 52% 641,804 TOTAL COMMUNITY SERVICES 1,420,213 19,922,029 11,324,341 1,384,139 12,708,480 64% 10,134,083 III. PUBLIC SAFETY
POLICE
PD Administration 104,833 2,296,286 1,054,625 43,267 1,097,892 48% 1,062,616 Field Operations 1,006,329 13,884,900 7,564,707 538,797 8,103,504 58% 7,359,160 Support Services 195,865 2,556,380 1,755,799 438,785 2,194,583 86% 1,837,900 Emergency Services/Haz Mat 26,833 275,047 164,829 - 164,829 60% 147,209 Special Operations 315,505 4,244,340 2,823,540 8,153 2,831,694 67% 2,462,561 Dispatch Services 199,327 2,341,249 1,455,413 - 1,455,413 62% 1,295,093 POLICE 1,848,692 25,598,203 14,818,913 1,029,002 15,847,915 62% 14,164,538 FIRE 895,586 10,381,160 6,880,221 30,626 6,910,847 67% 6,167,204 TOTAL PUBLIC SAFETY 2,744,278 35,979,363 21,699,134 1,059,628 22,758,762 63% 20,331,742 IV. TRANSFERS
Other 121,519 1,458,230 972,153 - 972,153 67% 869,178
TOTAL TRANSFERS 121,519 1,458,230 972,153 972,153 - 67% 869,178 TOTAL GENERAL FUND 4,909,059 64,710,781 38,134,204 2,800,942 40,935,146 63% 34,720,263
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 454 857,383 532,549 - 532,549 62% 496,144 205 PUBLIC SAFETY/SUPP.LAW 113 101,354 100,903 - 100,903 100% 100,859 206 DEVELOPMENT SERVICES FUND
Planning 143,622 1,700,561 1,044,272 1,045 1,045,316 61% 1,071,800 Building 210,832 3,055,890 1,812,653 156,720 1,969,373 64% 1,560,823 Engineering 113,112 1,644,092 987,015 177,767 1,164,782 71% 1,121,004 206 DEVELOPMENT SERVICES FUND 467,566 6,400,543 3,843,940 335,531 4,179,471 65% 3,753,628 207 LONG RANGE PLANNING 296,330 3,125,686 808,407 748,029 1,556,436 50% 532,825 215/216 CDBG 7 87 58 - 58 67% 55
225 ASSET SEIZURE 68 821 547 - 547 67% 521
229 LIGHTING AND LANDSCAPE 12,394 212,191 140,465 16,482 156,947 74% 113,908 230 COMMUNITY FACILITIES DISTRICT 1,638 23,511 15,891 - 15,891 68% 23,628 232 ENVIRONMENTAL PROGRAMS 27,731 453,818 245,176 4,523 249,699 55% 282,180 234 MOBILE HOME PARK 79 952 635 - 635 67% 605
236 HOUSING MITIGATION 127,079 2,214,529 799,516 762,938 1,562,454 71% 632,791 240 EMPLOYEE ASSISTANCE 83 20,993 4,162 - 4,162 20% 2,631 246 COUNTYWIDE SOLID WASTE PROGRAM 88,344 2,648,132 952,151 1,198,346 2,150,497 81% 1,048,971 255 HOUSING SUCCESSOR AGENCY 87,319 1,319,931 747,481 152,500 899,981 68% 823,384 260 PUBLIC ART 525 16,306 9,192 - 9,192 56% -
TOTAL SPECIAL REVENUE FUNDS 1,109,731 17,396,238 8,201,074 3,218,348 11,419,422 66% 7,812,130
CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 18,528 3,460,007 598,359 101,535 699,895 20% 468,543 302 PARK MAINTENANCE 54,205 1,650,000 435,439 - 435,439 26% 868,806 303 LOCAL DRAINAGE 10,566 10,931,065 3,539,047 556,819 4,095,865 37% 2,820,909 304 LOCAL DRAIN. NON-AB1600 264 505,176 75,590 3,930 79,520 16% 181,919 306 AGRICULTURE & OPEN SPACE PRESERVATIO 128,157 10,680 85,438 - 85,438 67% 65,067 308 STREET CIP 17,715 4,992,517 3,824,545 946,570 4,771,115 96% 4,590,621 309 TRAFFIC IMPACT 11,812 4,593,527 3,177,722 258,283 3,436,004 75% 934,752 315 PUBLIC SAFETY FACILITIES IMPACT 491,059 8,993,315 5,500,786 2,269,247 7,770,032 86% 2,106,225 346 PUBLIC FAC.NON AB1600 14,461 1,652,085 45,619 215,744 261,364 16% 231,974 347 PUBLIC FACILITIES IMPACT 2,458 1,444,333 362,362 1,010,368 1,372,730 95% 122,119 348 LIBRARY IMPACT 226,135 2,713,615 1,809,077 - 1,809,077 67% 148,233 350 UNDERGROUNDING 103 401,505 128,045 - 128,045 32% 783 355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY - - - - - n/a 24,582 360 COMM/REC CENTER IMPACT 5,684 1,430,662 326,622 435,558 762,180 53% 225,349 375 QUIMBY FEE 18,711 6,807,980 1,099,325 2,651,040 3,750,365 55% 23,882 TOTAL CAPITAL PROJECTS FUNDS 882,382 49,703,945 21,007,974 8,449,094 29,457,069 59% 12,813,764
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 284 291,714 243,508 - 243,508 83% 238,758 441 POLICE FACILITY BOND DEBT 375 385,093 330,258 - 330,258 86% 323,881 TOTAL DEBT SERVICE FUNDS 659 676,807 573,766 573,766 - 85% 562,639
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 1,355,950 16,796,487 10,943,141 20,843 10,963,983 65% 9,332,523 641 WASTEWATER CAPITAL EXPANSION 106,561 7,897,156 4,427,158 784,934 5,212,092 66% 5,743,817 642 WASTEWATER RATE STABILIZATION 164 1,966 1,311 - 1,311 67% 1,248 643 WASTEWATER CAPITAL PROJECTS 8,760 11,224,791 1,763,097 3,802,043 5,565,140 50% 2,700,492 TOTAL SEWER FUND(S) 1,471,435 35,920,399 17,134,706 4,607,819 21,742,526 61% 17,778,080 WATER
Water Operations 1,279,730 19,715,654 11,929,151 421,182 12,350,333 63% 11,586,325 Utility Billing 105,609 1,502,560 839,039 36,590 875,629 58% 743,950 Water Conservation 416,169 14,556 203,614 19,288 222,902 54% 232,081 650 WATER OPERATIONS 1,399,896 21,634,383 12,971,804 477,060 13,448,864 62% 12,562,356 651 WATER CAPITAL EXPANSION 166,624 4,406,112 694,646 2,929,712 3,624,358 82% 552,092 652 WATER RATE STABILIZATION 123 1,473 982 - 67% 982 935 653 WATER-CAPITAL PROJECTS 19,944,363 406,122 1,476,002 8,094,123 9,570,125 48% 1,478,153 TOTAL WATER FUND(S) 1,972,764 45,986,331 15,143,434 11,500,894 26,644,328 58% 14,593,536 TOTAL ENTERPRISE FUNDS 3,444,199 81,906,730 32,278,140 16,108,714 48,386,854 59% 32,371,616
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 147,800 2,961,976 1,503,050 30,240 1,533,290 52% 1,729,182 740 BUILDING MAINTENANCE 88,272 1,506,259 806,711 76,732 883,443 59% 651,542 741 BUILDING REPLACEMENT 60,377 3,059,856 959,274 542,770 1,502,044 49% 135,780 745 CIP ADMINISTRATION 204,874 2,584,581 1,530,993 4,723 1,535,716 59% 1,206,102 760 UNEMPLOYMENT 2,283 15,000 6,205 - 6,205 41% 11,826
770 WORKERS COMPENSATION 120,493 946,245 927,685 - 927,685 98% 737,559 790 EQUIPMENT REPLACEMENT 56,806 1,400,191 844,844 148,093 992,937 71% 304,785 791 EMPLOYEE BENEFITS FUND 2,913 1,000,000 560,342 - 560,342 56% 499,821 795 GEN. LIABILITY INSURANCE 9,140 2,411,618 2,127,915 2,127,915 - 88% 2,410,370 TOTAL INTERNAL SERVICE FUNDS 692,957 15,885,726 9,267,020 802,558 10,069,578 63% 7,686,967 REPORT TOTAL $ 11,038,986 $ 230,280,227 $ 109,462,178 $ 31,379,656 $ 140,841,835 61% 95,967,378 $
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 31,073,823 $ 30,021,077 $ 53% 38,134,204 $ 59% (8,113,127) $ 2,800,942 $ 20,159,754 $ TOTAL GENERAL FUND $ 31,073,823 $ 30,021,077 53% $ 38,134,204 59% $ (8,113,127) $ 2,800,942 $ 20,159,754 202 STREET MAINTENANCE 72,734 $ 528,484 62% 532,549 $ 59% $ (4,065) $ - $ 68,669 205 PUBLIC SAFETY/SUPPL. LAW 415,174 146,037 129% 100,903 60% 45,134 460,308 - 206 DEVELOPMENT SERVICES (1,144,436) 3,870,001 65% 3,843,940 60% 26,061 335,531 (1,453,906) 207 LONG RANGE PLANNING 1,306,215 656,194 37% 808,407 26% (152,213) 748,029 405,973 215 / 216 CDBG 32,500 132% 1,533 67% 58 1,475 - 33,975
225 ASSET SEIZURE 104,495 2,336 83% 67% 547 1,788 106,283 - 229 LIGHTING AND LANDSCAPE 216,005 115,954 56% 140,465 66% (24,510) 16,482 175,013 230 COMMUNITY FACILITIES DISTRICT 162,519 18,241 63% 15,891 68% 2,349 164,868 - 232 ENVIRONMENTAL PROGRAMS 488,875 331,524 66% 245,176 54% 86,348 4,523 570,700 234 MOBILE HOME PK RENT STAB. 81,475 186% 5,335 67% 635 4,700 - 86,175 235 SENIOR HOUSING 245,426 n/a - n/a - - 245,426 -
236 HOUSING MITIGATION 7,932,027 1,061,214 38% 799,516 36% 261,698 762,938 7,430,788 240 EMPLOYEE ASSISTANCE 62,481 385% 4,987 4,162 20% 825 - 63,306 246 COUNTYWIDE SOLID WASTE 323,153 1,286,743 n/a 952,151 36% 334,592 1,198,346 (540,601) 255 HOUSING SUCCESSOR AGENCY 3,818,193 392,681 85% 747,481 57% (354,800) 152,500 3,310,893 260 PUBLIC ART 48,471 23% 330 9,192 56% (8,862) - 39,609 TOTAL SPECIAL REVENUE FUNDS $ 14,165,307 $ 8,421,594 56% $ 8,201,074 47% $ 220,520 $ 3,218,348 $ 11,167,478 301 PARK DEV. IMPACT FUND $ 2,008,148 $ 1,799,328 90% 598,359 $ 17% 1,200,968 $ $ 101,535 $ 3,107,581 302 PARK MAINTENANCE 2,489,205 56,892 367% 435,439 26% (378,546) 2,110,659 - 303 LOCAL DRAINAGE 9,621,788 425,496 30% 3,539,047 32% (3,113,551) 556,819 5,951,419 304 LOCAL DRAINAGE/NON-AB1600 1,233,420 249,339 99% 75,590 15% 173,749 3,930 1,403,239 306 AG. AND OPEN SPACE PRESERVATION 672,578 420,221 2277% 85,438 67% 334,783 1,007,361 - 308 STREET CIP 4,287,249 3,313,265 85% 3,824,545 77% (511,280) 946,570 2,829,399 309 TRAFFIC IMPACT FUND 3,808,198 1,956,527 41% 3,177,722 69% (1,221,195) 258,283 2,328,721 315 PUBLIC SAFETY FACILITIES IMPACT (1,553,435) 5,950,194 49% 5,500,786 61% 449,408 2,269,247 (3,373,273) 346 PUBLIC FACILITIES NON-AB1600 2,184,388 174,185 92% 45,619 3% 128,565 215,744 2,097,209 347 PUBLIC FACILITIES IMPACT FUND 1,328,671 330,702 73% 362,362 25% (31,660) 1,010,368 286,643 348 LIBRARY IMPACT FUND 2,254,117 1,286,598 91% 1,809,077 67% (522,478) 1,731,639 - 350 UNDERGROUNDING 1,768,551 72,147 97% 128,045 32% (55,897) 1,712,654 - 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY - n/a - n/a - - - -
360 COMM/REC CTR IMPACT FUND 2,297,534 2,387,401 95% 326,622 23% 2,060,779 435,558 3,922,754 375 QUIMBY FEE 3,984,952 2,023,360 76% 1,099,325 16% 924,035 2,651,040 2,257,947 TOTAL CAPITAL PROJECT FUNDS $ 36,385,364 $ 20,445,655 64% $ 21,007,974 42% $ (562,320) $ 8,449,094 $ 27,373,950 420 CIVIC CENTER DEBT $ 183,038 $ 200,082 67% 243,508 $ 83% (43,426) $ $ 249,367 $ (109,755) 441 POLICE FACILITY BOND DEBT 163,896 256,857 66% 330,258 86% (73,401) 317,377 (226,881) TOTAL DEBT SERVICE FUNDS $ 346,934 $ 456,939 66% $ 573,766 85% $ (116,827) $ 566,743 $ (336,637) 640 WASTEWATER OPERATIONS $ 3,983,038 $ 10,201,603 61% 10,943,141 $ 65% (741,538) $ 20,843 3,220,658 641 WASTEWATER IMPACT FUND* 18,629,828 9,536,437 81% 4,427,158 56% 5,109,279 784,934 22,954,173 642 WASTEWATER RATE STABILIZATION 3,121,932 71,461 66% 1,311 67% 70,150 3,192,082 - 643 WASTEWATER CAPITAL PROJECTS 17,703,049 4,560,748 74% 1,763,097 16% 2,797,651 3,802,043 16,698,657 650 WATER OPERATIONS 4,083,455 12,732,984 59% 12,971,804 60% (238,820) 477,060 3,367,575 651 WATER IMPACT FUND* 3,852,318 3,163,510 81% 694,646 16% 2,468,863 2,929,712 3,391,469 652 WATER RATE STABILIZATION 3,337,806 77,103 67% 67% 76,121 982 3,413,927 - 653 WATER -CAPITAL PROJECT 18,694,610 4,425,797 43% 1,476,002 7% 2,949,795 8,094,123 13,550,282 TOTAL ENTERPRISE FUNDS $ 73,406,036 $ 44,769,642 63% $ 32,278,140 39% $ 12,491,502 $ 16,108,714 $ 69,788,824 730 INFORMATION SERVICES $ 656,565 $ 1,923,998 67% 1,503,050 $ 51% 420,948 $ $ 30,240 $ 1,047,273 740 BUILDING MAINTENANCE 94,619 950,319 67% 806,711 54% 143,608 76,732 161,495 741 BUILDING REPLACEMENT 5,083,004 699,604 67% 959,274 31% (259,670) 542,770 4,280,564 745 CIP ENGINEERING 8,329 1,332,835 52% 1,530,993 59% (198,158) 4,723 (194,552) 760 UNEMPLOYMENT 284,229 6,218 61% 6,205 41% 13 284,242 - 770 WORKERS COMPENSATION 2,381,319 676,484 58% 927,685 98% (251,201) 30,000 2,100,118 790 EQUIPMENT REPLACEMENT 8,727,549 1,234,780 72% 844,844 60% 389,935 148,093 8,969,391 791 EMPLOYEE BENEFITS FUNDS 26,248 763,027 64% 560,342 56% 202,685 228,933 - 795 GEN. LIABILITY INSURANCE 984,307 1,671,979 66% 2,127,915 88% (455,937) 528,370 - TOTAL INTERNAL SERVICE FUNDS $ 18,246,169 $ 9,259,244 64% $ 9,267,020 58% $ (7,776) $ 832,558 $ 17,405,835 Revenues Expenses Preliminary Ending Fund Balance
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended February 28, 2025
67% 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 31,073,823 $ 30,021,077 $ 53% 38,134,204 $ 59% (8,113,127) $ 2,800,942 $ 20,159,754 $ SPECIAL REVENUE GROUP 14,165,307 8,421,594 56% 8,201,074 47% 220,520 3,218,348 11,167,478 DEBT SERVICE GROUP 346,934 456,939 66% 573,766 85% (116,827) 566,743 (336,637) CAPITAL PROJECTS GROUP 36,385,364 20,445,655 64% 21,007,974 42% (562,320) 8,449,094 27,373,950 ENTERPRISE GROUP 73,406,036 44,769,642 63% 32,278,140 39% 12,491,502 16,108,714 69,788,824 INTERNAL SERVICE GROUP 18,246,169 9,259,244 64% 9,267,020 58% (7,776) 832,558 17,405,835 TOTAL ALL GROUPS 173,623,633 $ 113,374,150 $ 60% 109,462,178 $ 48% 3,911,972 $ 31,976,399 $ 145,559,205 $ 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.
12 CITY COUNCIL STAFF REPORT
MEETING DATE: April 2, 2025
PREPARED BY:
Donald Larkin, City Attorney
APPROVED BY: City Manager
ADOPT RESOLUTION FURTHER REAFFIRMING THE CITY’S
COMMITMENT TO A DIVERSE, SUPPORTIVE, INCLUSIVE
COMMUNITY AND PROTECTING THE CONSTITUTIONAL RIGHTS OF
ITS RESIDENTS
RECOMMENDATION(S)
Adopt resolution further reaffirming the City's commitment to a diverse, supportive, inclusive community and protecting its residents' constitutional rights.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Enhancing Diversity and Inclusiveness
REPORT NARRATIVE:
At the City Council Goal Setting Workshop on February 7, 2025, Mayor Pro Tem Martinez Beltran proposed that the City Council consider adopting another resolution affirming the City's commitment to protecting the rights and safety of immigrant communities as a "Future Council Initiated Agenda Item." On February 19, 2025, the City Council voted (item #14) to proceed with considering the adoption of a resolution as a future agenda item.
On March 5, 2025, the City Council discussed a draft resolution and voted 3-2 to continue the item to allow consideration of possible additions to the resolution proposed by Mayor Pro Tem Martinez Beltran at the next City Council Meeting. Mayor Pro Tem Martinez Beltran's motion also incorporated an edit proposed by Councilmember Vega.
Attachment 1 is a red line of the resolution considered at the March 5, 2025, City Council meeting, incorporating the changes recommended by Mayor Pro Tem Martinez Beltran and Councilmember Vega. Note, rather than including Councilmember Vega's change as an additional paragraph to the report, the City Attorney is recommending that Councilmember Vega's change simply replace the original paragraph 1 in order to avoid redundancy.
12 Attachment 2 (alternate resolution) is a red line of the resolution considered at the March 5, 2025, City Council meeting with Councilmember Vega's recommended change.
COMMUNITY ENGAGEMENT:
The City's commitment to a diverse, supportive, and inclusive community is strongest when all community members, partners, and stakeholders actively engage and uphold these shared values.
ALTERNATIVE ACTIONS:
The City Council may choose:
• To further amend the resolution's language
• Adopt the alternate resolution (the original resolution presented on March 5, including Councilmember Vega's edit)
• Decide not to adopt a resolution
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
• February 7, 2025 City Council Goal Setting - Council Member Martinez Beltran requested the resolution be considered as a future Council initiated agenda item. • February 19, 2025 City Council Meeting - Council approved staff returning with a draft resolution for formal discussion.
• March 5, 2025 City Council Meeting - Council continued the item and directed the City Attorney to return with a markup showing suggested changes.
FISCAL AND RESOURCE IMPACT:
No fiscal impact.
CEQA (California Environmental Quality Act):
Not a Project. Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORGAN HILL FURTHER REAFFIRMING THE CITY’S
COMMITMENT TO A DIVERSE, SUPPORTIVE, INCLUSIVE
COMMUNITY, AND TO PROTECTING THE CONSTITUTIONAL
RIGHTS OF ITS RESIDENTS REGARDLESS OF IMMIGRATION
STATUS
WHEREAS, On December 14, 2016, the Morgan Hill City Council issued a Statement of Support and Assurance to the community, assuring that hate crimes will not be tolerated in Morgan Hill, our Police will not be used for federal immigration enforcement, and our residents’ constitutional rights will be protected; and
WHEREAS, on May 3, 2017, the Morgan Hill City Council adopted a Resolution reaffirming the City’s commitment to a diverse, supportive, inclusive community, and to protecting the constitutional rights of its residents; and WHEREAS, on January 24, 2025, the Morgan Hill Police Department issued a message to the community reaffirming its commitment to support all community members, regardless of immigration status, and reaffirmed that all residents, regardless of immigration status, should feel safe reporting crimes or seeking assistance from local law enforcement; and WHEREAS, on February 7, 2025, the Morgan Hill City Council reaffirmed its Vision Statement: To sustain a safe, inclusive, socially responsible, environmentally conscious, and economically sound community; and
WHEREAS, a large percentage of Morgan Hill Residents are foreign-born and many continue to fear that changes to immigration rules or enforcement could result in discrimination, deportation, or separation of their families; and indiscriminate deportation decreases cooperation with law enforcement, withdrawal from public spaces such as schools, and worsening public health outcomes; and
WHEREAS, Morgan Hill’s immigrant population has and will continue to contribute to the City’s economic and social prosperity by maintaining its role as a significant part of the City’s workforce, by establishing and patronizing local businesses, by contributing to arts and culture, and through the achievement of significant educational accomplishments; and WHEREAS, establishing and maintaining a relationship of trust, respect, and open communication between City officials and residents is essential to the City’s mission of efficient delivery of public services in partnership with its community, an effort that ensures public safety and due process, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents; and protecting safety, well-being and dignity of everyone who calls our city home..
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY RESOLVE AS FOLLOWS:
1. Consistent with existing policy, the Morgan Hill City Council further reaffirms that all members of the city are valued regardless of religion, immigration status, ethnicity, disability, gender, sexual orientation, or gender identity; andThe City of Morgan Hill hereby reaffirms all previous resolutions policies and actions approved by past City Councils regarding the protection of immigrants, and those resolutions, policies and actions remain in full force; and
2. The City of Morgan Hill reaffirms its position that all law-abiding residents, regardless of immigration status, should feel safe interacting with all City officials and employees and/or obtaining City services without fear of arrest or deportation based on immigration status; and
1.3. The City Council of the City of Morgan Hill supports the longstanding Police Department Policy that its officers will not arrest or detain persons based on immigration status. Law-abiding residents should not fear arrest or deportation for coming forward to report a crime as a victim or a witness.
2.4.The City of Morgan Hill, including its elected and appointed officials, will continue to work proactively to protect and defend the rights and privileges of everyone in the city, regardless of religion, country of birth, immigration status, disability, gender, sexual orientation, or gender identity.
PASSED AND ADOPTED by the City Council of the City of Morgan Hill at its regular meeting held on this ____ day of _____________, 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 its regular meeting held on , 201_.
WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.
DATE: _____________________ ___________________________________ Michelle Bigelow, CITY CLERK
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORGAN HILL FURTHER REAFFIRMING THE CITY’S
COMMITMENT TO A DIVERSE, SUPPORTIVE, INCLUSIVE
COMMUNITY, AND TO PROTECTING THE CONSTITUTIONAL
RIGHTS OF ITS RESIDENTS
WHEREAS, On December 14, 2016, the Morgan Hill City Council issued a Statement of Support and Assurance to the community, assuring that hate crimes will not be tolerated in Morgan Hill, our Police will not be used for federal immigration enforcement, and our residents’ constitutional rights will be protected; and
WHEREAS, on May 3, 2017, the Morgan Hill City Council adopted a Resolution reaffirming the City’s commitment to a diverse, supportive, inclusive community, and to protecting the constitutional rights of its residents; and WHEREAS, on January 24, 2025, the Morgan Hill Police Department issued a message to the community reaffirming its commitment to support all community members, regardless of immigration status, and reaffirmed that all residents, regardless of immigration status, should feel safe reporting crimes or seeking assistance from local law enforcement; and WHEREAS, on February 7, 2025, the Morgan Hill City Council reaffirmed its Vision Statement: To sustain a safe, inclusive, socially responsible, environmentally conscious, and economically sound community; and
WHEREAS, a large percentage of Morgan Hill Residents are foreign-born and many continue to fear that changes to immigration rules or enforcement could result in discrimination, deportation, or separation of their families.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY RESOLVE AS FOLLOWS:
1. Consistent with existing policy, the Morgan Hill City Council further reaffirms that all members of the city are valued regardless of religion, immigration status, ethnicity, disability, gender, sexual orientation, or gender identity; and
1. The City of Morgan Hill hereby reaffirms all previous resolutions policies and actions approved by past City Councils regarding the protection of immigrants, and those resolutions, policies and actions remain in full force; and
2. The City of Morgan Hill, including its elected and appointed officials, will continue to work proactively to protect and defend the rights and privileges of everyone in the city, regardless of religion, country of birth, immigration status, disability, gender, sexual orientation, or gender identity.
PASSED AND ADOPTED by the City Council of the City of Morgan Hill at its regular meeting held on this ____ day of _____________, 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 its regular meeting held on , 201_.
WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.
DATE: _____________________ ___________________________________ Michelle Bigelow, CITY CLERK