Morgan Hill City Council
June 4, 2025

6 None
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On April 24, 2024, the City Council approved the 2023 Military Equipment Use Report as outlined in Government Code section 7070.

FISCAL AND RESOURCE IMPACT:

The use of controlled equipment for 2024 was $7,388. The projected cost of the controlled equipment for 2025 is $32,581 and is included in the Police Department's Fiscal Year (FY 25/26) budget.

Equipment Type Annual Maintenance
(2024)
Projections
(2025)
Unmanned Aircraft
System
$0 $0
Armored Rescue Vehicles N/A To be paid in 2026
The ROOK N/A N/A
Mobile Incident Command $5,459.00 $12,000.00
Long Range Acoustical
Device (LRAD) $0 $0
40 mm Less-Lethal
Launchers $250.00 $250.00
Less-Lethal Shotguns $0 $12,423.88
Diversionary Devices $1,579.00 $1,500.00
Rifles $0 $4,806.96
Chemical Agents and
Smoke Canisters $0 $1,500.00
PepperBall Launchers $100.00 $100.00
TOTAL $7,388.00 $ 32,580.84
The previously approved Armored Rescue Vehicle for approximately $410,000 was ordered in 2025 and is due for delivery in January 2026, which is just in time for the World Cup and Super Bowl Events.

CEQA (California Environmental Quality Act):

Not a Project--Administrative activity that has no potential to impact the environment directly or indirectly.

2024
Annual Report on
Controlled Equipment Use
Morgan Hill Police Department
January 1, 2024 to December 31, 2024

Annual Report on Controlled Equipment Use 2024
Table of Contents
Executive Summary……………………………………………………… 1
Introduction……………………………………………………………… 3
Summary of Controlled Equipment Usage……………………………… 4
Current Inventory of Controlled Equipment………………………...…… 7 Controlled Equipment Categories……………………….…….…. 8
Unmanned Aerial Systems ……………………………….………. 9
Armored Vehicle……………………………………….………… 11
The Rook……………………………………………….………… 13
Mobile Incident Command Vehicle……………………….……… 15
Long Range Acoustic Device……….…………………………… 17
40mm Less-Lethal Launchers and Munitions…………...………. 19
Diversionary Devices……………………………………….…… 24
Rifles and Munitions………………………………………………. 27
Chemical Agents and Smoke Canisters…………………………… 32
PepperBall Launcher and Projectiles……………………………. 37
Training Summary…………………………………………….………. 39
Equipment Costs…………………………………………….….………. 40
Fiscal Impact………………………………………………….………... 41
Projected Acquisitions for 2024…………………………….….………. 42
Consumable Controlled Equipment…………………………….………. 43
Non-Consumable Controlled Equipment………………….……………. 44
Department Transparency…………………………………. …..………. 50
Controlled Equipment Coordinator Report……………….…….……... 51 Conclusion………………………………………………………………. 52
Appendix………………………………………………………………… 53
Definitions………………………….…………….…….………… 53

Annual Report on Controlled Equipment Use 2024
1 Executive Summary
On September 30, 2021, the Governor of the State of California approved AB-481, requiring law enforcement agencies to obtain approval of the applicable governing body (Mayor and City Council) by adopting a military equipment use policy. The Department is required to seek City Council approval of their military equipment or controlled equipment use procedure by ordinance at a regular open meeting prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined.

The bill allows the governing body to approve the funding, acquisition, or use of military equipment or controlled equipment within its jurisdiction only if it determines that the controlled equipment meets specified standards. The ordinance is subject to an annual City Council review to determine whether, based on an annual controlled equipment report, the standards set forth in the approving ordinance have been met. The City Council may renew the authorizing ordinance, disapprove authorization for special controlled equipment where standards have not been met, or require modifications to the controlled equipment use procedure to address any non-compliance with standards.

Finally, the bill requires the publication of the controlled equipment use procedure and the annual controlled equipment report on the Department's website. The controlled equipment use procedure must be posted on the website at least thirty (30) days before the City Council meeting.

California Government Code section 7072 requires an annual report within a year of the policy approval and annually after that for as long as the controlled equipment is in use. The annual report must contain the following information:
(1) A summary of how the equipment was used and the purpose of its use. (2) A summary of any complaints or concerns from members of the public about the equipment. (3) The results of an internal audit, including any information about violations of the equipment use policy and any actions taken in response.
(4) The total annual cost for each type of equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing expenses; and from what source funds will be provided for the controlled equipment in the calendar year following submission of the annual report.
(5) The quantity possessed for each type of controlled equipment. (6) If the law enforcement agency intends to acquire additional controlled equipment next year, and the quantity sought for each type of qualifying equipment.

The Police Department shall hold at least one (1) well-publicized and conveniently located community engagement meeting. The public may discuss and ask questions regarding the annual report, the law enforcement agency's funding, acquisition, and/or the use of the controlled equipment.

Annual Report on Controlled Equipment Use 2024
2 The Morgan Hill Police Department recognizes the public's ongoing interest in how controlled equipment is used to protect our community. We are committed to maintaining our community's trust in providing professional and responsive police services. Therefore, the Morgan Hill Police Department has authored the following comprehensive Annual Report on Controlled Equipment Use to remain transparent with our community and in accordance with annual reporting requirements set forth by applicable California Law.

Annual Report on Controlled Equipment Use 2024
3 Introduction
The Morgan Hill Police Department is committed to the protection of lives and property by working with our community and providing professional and responsive police services. To accomplish our mission effectively and safely, the Morgan Hill Police Department possesses and utilizes certain specialized equipment (military equipment or controlled equipment) to safeguard the citizens of Morgan Hill and protect our first responders. While our inventory of controlled equipment varies, the mere possession of this equipment does not warrant its use. The merits and the totality of the circumstances of each unique incident are considered before controlled equipment is utilized in compliance with department policy and law.

The term "military equipment or controlled equipment," as used in Assembly Bill 481, does not necessarily indicate the equipment is or has been used by the military. Many items defined as "military equipment or controlled equipment" by the bill are often used by law enforcement to preserve life and enhance public and officer safety while remaining prepared to handle the various lethal and non-lethal challenges facing our communities. The Morgan Hill Police Department's use of controlled equipment is consistent with overall best practices employed by police departments nationwide.

Items used by the Morgan Hill Police Department that are considered military equipment or controlled equipment under Assembly Bill 481 include, but are not limited to, emergency response equipment such as command vehicles and armored rescue vehicles, less-lethal shotguns, less-lethal 40mm projectile launchers, precision weapons such as rifles, unmanned aircraft systems, and other select items. The continued access to and use of this equipment is vital in ensuring our officers have the appropriate tools to de-escalate situations, preserve life, ensure safety for all people, and protect civil liberties.

This Annual Report on Controlled Equipment Use outlines a summary of the equipment usage guidelines, inventory, fiscal impact, complaints, and reported community concerns for the calendar year 2024 (January 1, 2024, through December 31, 2024).

Annual Report on Controlled Equipment Use 2024
4 Summary of Controlled Equipment Usage
The Morgan Hill Police Department provides law enforcement services twenty-four hours a day, seven days a week, serving a city population of over 46,384. The Department is committed to de-escalating situations, and using force is reserved for instances where less intrusive options are not feasible. In 2024, the Morgan Hill Police Department responded to approximately 33,579 calls for service. Of those calls for service, officers used force on seven (7) occasions, representing .0002% of the total calls for service. (It should be noted that the Department saw a decrease in the number of use-of-force incidents in 2024 compared to 2023.) Officers utilized controlled equipment in two (2) cases involving the use of force.

Police events and critical incidents are often dynamic and unpredictable. The availability and use of specific equipment are necessary for incident commanders, officers, and specialized units to resolve incidents safely and effectively. It is incumbent upon incident commanders, supervisors, individual officers, and specialized teams to recognize the circumstances wherein specialized equipment should be deployed and to utilize the equipment within the confines of department policy and law. Each use of military equipment is later reviewed to ensure it was used appropriately based on the totality of the circumstances known to the officers at the time and with a special focus on maintaining community and officer safety, civil rights, California law, and information available at the time of use.

The Morgan Hill Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. While the Morgan Hill Police Department's inventory of military equipment is varied, the mere possession of the equipment does not warrant its use for every incident. The use of military equipment is restricted to use only in certain instances and, in some cases, only by certain units.

This section outlines the controlled equipment usage for 2024. Certain items of controlled equipment, particularly consumables (ammunition, diversionary devices, pepper balls, chemical agents, etc., are used throughout the year regularly for training to maintain proficiency. Training usage is not captured in this section. This section only provides data for the operational use of controlled equipment listed within this Annual Equipment Report.

The following is the data for military equipment usage by category for 2024:

Unmanned Aircraft System (UAS)
The UAS was utilized zero (0) times operationally in 2024.

Armored Rescue Vehicles
The armored rescue vehicle was utilized seventeen (17) times operationally in 2024. These deployments occurred during SWAT operations in the City of Gilroy and the City of Morgan Hill and during special events held in the City of Morgan Hill, such as the Mushroom Festival, the Freedom Fest, and Boot and Brews Music Festival. The armored rescue vehicle was obtained through mutual aid with the Santa Clara County Sheriff's Office and the Santa Clara Police Department.

Annual Report on Controlled Equipment Use 2024
5 NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) was utilized zero (0) times operationally in 2024. Currently, the Department does not possess an NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK); however, the Police Department continues to look for grant funding.

Mobile Command Vehicle (MCV)
The Mobile Command Vehicle (MCV) was utilized seventeen (17) times operationally in 2024.

Deployments occurred during SWAT operations in the City of Gilroy and Morgan Hill and for special events, such as the Morgan Hill Mushroom Festival, the Morgan Hill Freedom Fest, and Boot and Brews Country Music Festival.

Long Range Acoustic Device (LRAD)
The Long-Range Acoustic Device (LRAD) was utilized operationally zero (0) times in 2024. 40 MM Launchers and Rounds
The 40 MM Launchers and Rounds were utilized operationally for one (1) time in 2024. The usage is as follows:
• 04-16-2024: Officers responded to a call for service regarding a suspicious person who was walking in and out of the middle of the roadway, causing a traffic hazard. When officers attempted to contact the subject, the subject pulled out a pocketknife and brandished the knife at officers.

The subject began walking towards community members at a bus stop, still with the knife in their hand. The officers on scene gave multiple commands to the subject to drop the knife; however, the subject refused to obey any of the commands given. Due to this significant threat to the officers and the community, the 40 MM Launcher was used along with a less lethal shotgun were deployed.

The subject dropped the knife, and the officers were able to take the subject into custody without further incident.

Less Lethal Shotgun
A Less Lethal Shotgun was utilized one (1) time operationally in 2024. The usage is as follows:
• 04-16-2024: Officers responded to a call for service regarding a suspicious person who was walking in and out of the middle of the roadway, causing a traffic hazard. When officers attempted to contact the subject, the subject pulled out a pocketknife and brandished the knife at officers.

The subject began walking towards community members at a bus stop, still with the knife in their hand. The officers on scene gave multiple commands to the subject to drop the knife; however, the subject refused to obey any of the commands given. Due to this significant threat to the officers and the community, the Less Lethal Shotgun along with the 40 MM Launcher were deployed. The subject dropped the knife, and the officers were able to take the subject into custody without further incident.

Distraction Devices
Distraction Devices were utilized three (3) times in 2024. In these instances, the Distraction Devices were utilized as attention-getting devices related to SWAT callouts or high-risk warrant services.

Annual Report on Controlled Equipment Use 2024
6 Chemical Agent and Smoke Canisters
Chemical Agents and Smoke Canisters were utilized zero (0) times in 2024.

PepperBall Launcher and Related Munitions
PepperBall Launcher and Related munitions were utilized zero (0) times in 2024.

Rifles
The Colt Carbine AR-15 Rifle, Colt Carbine M4 rifle, and Remington 700 Rile were utilized operationally zero (0) times in 2024, as the Morgan Hill Police Department had zero officer-involved shootings in 2024.

Annual Report on Controlled Equipment Use 2024
7 Current Inventory of Controlled Equipment
The Morgan Hill Police Department is committed to remaining transparent about the Department's controlled equipment inventory and sharing the equipment's capabilities, uses, and other related information with our community and elected officials. The data provided in this report is accurate as of February 2024; however, inventory may have fluctuated by the time of this report's publication.

The inventory of controlled equipment, particularly consumable material (ammunition, diversionary devices, munitions, etc.), may fluctuate due to various factors, including but not limited to operational usage, operational deterioration, training, maintenance, expiration, and replenishment guidelines.

The following is a list of the various types, descriptions, and guidelines for the usage of controlled equipment currently employed by the Department:

NOTE: The descriptions and source photos in this report are for controlled equipment descriptive purposes only and are not endorsed by the City of Morgan Hill or the Morgan Hill Police Department of a product or vendor.

Annual Report on Controlled Equipment Use 2024
8 Controlled Equipment Categories
Assembly Bill 481 created Government Code 7070, which designated 15 categories of items deemed "military" or more accurately defined as controlled equipment:
* Category
1:

Unmanned, remotely piloted, powered aerial or ground vehicles * Category
2:

Mine-resistant ambush-protected vehicles or armored personnel carriers * Category
3:

High mobility multipurpose wheeled vehicles (HMMWV), two-and-onehalf-ton trucks, five-ton trucks, or wheeled vehicles that have breaching or entry apparatus attached
Category
4:

Tracked armored vehicles that provide ballistic protection to their occupants
* Category
5:

Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units Category
6:

Weaponized aircraft, vessels, or vehicles of any kind
* Category
7:

Battering rams, slugs, and breaching apparatuses that are explosive in nature
Category
8:

Firearms and ammunition of .50 caliber or greater, excluding standardissue shotguns and standard-issue shotgun ammunition * Category
9:

Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, except for standard-issued handguns * Category
10:

Any firearm or firearm accessory that is designed to launch explosive projectiles
* Category
11:

Noise-flash diversionary devices and explosive breaching tools * Category
12:

Munitions containing tear gas or pepper spray, excluding standard, service-issued handheld pepper spray
Category
13:

TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices
* Category
14:

Kinetic energy weapons and munitions
Category
15:

Any other equipment as determined by a governing body or a state agency to require additional oversight
* Indicates a category of controlled equipment previously approved by the governing body and utilized by the Morgan Hill Police Department.

Annual Report on Controlled Equipment Use 2024
9 Unmanned Aerial Systems (UAS) (Category 1)
An unmanned aerial system can sustain direct flight, whether remotely controlled or via pre-programming.

All the attached systems are designed for gathering information via photography, recording, or any other means.

Capability: The Morgan Hill Police Department owns one (1) Unmanned Aerial System (UAS) to enhance public safety. The UAS can be deployed when an overhead view would assist officers or incident commanders with planning and responding to a situation. Types of situations include, but are not limited to, infrastructure damage assessments, major traffic collision investigations, search for missing persons, natural disaster management, crime scene photography, SWAT, tactical or other public safety and lifepreservation missions, and/or in response to specific requests from local, State, or Federal fire authorities for fire response and/or prevention. All UAS used by the Department complies with all federal, state, and local laws.

Usage: Use is established under Morgan Hill Policy Manual Section 613 and FAA Regulation 14 CFR Part 107. It is the policy of the Morgan Hill Police Department to utilize UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, pursuant to State and Federal law. UAS usages include the collection of evidence in the form of aerial photography/video in support of an investigation (i.e., shooting scenes, homicide scenes); support of SWAT and Patrol during high-risk, tactical, or other public safety life preservation missions (i.e., interior visual assessments of structures or outdoor areas to gain intelligence prior to officers entering a dwelling or contacting a potentially armed or a resistive subject that may be hiding); to conduct aerial searches for missing persons; and provide aerial observation to assist in managing natural disasters (i.e., fires, floods, storms) or in any other manner to preserve life and enhance public safety.

Training Requirements: All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. Although not required by P.O.S.T. or the FAA, officers attend a 20- hour internal training course. Course topics include terminology, proper and safe flying techniques, privacy concerns, laws, and the Department's UAS policy review.

Annual Report on Controlled Equipment Use 2024
10 The Department currently utilizes the following UAS:

Skydio Two
Manufacturer: Skydio
Manufacturer Description: The Skydio 2+ weighs approximately 800 grams and can record video within approximately 27 minutes of flight time. This is a remotely operated battery-powered or autonomist aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator.

Cost $1,000 each
Quantity 1
Lifespan 3-5 Years
Funding Source Department Funds

Annual Report on Controlled Equipment Use 2024
11 Armored Vehicle (Categories 2 & 3)
Commercially produced 4-wheel drive vehicle designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

Capability: The Medevac is primarily used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, conduct highrisk rescue operations, training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and to delivering equipment in high-risk environments.

The Medevac can also be used to conduct rescue missions during disasters. Additionally, the vehicle is utilized for community engagement efforts and other applications deemed appropriate.

Usage: Use is established under Morgan Hill Policy Manual Section 708. It is the policy of the Department to utilize the armored vehicle only for official law enforcement purposes and pursuant to State and Federal law.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T. certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

PURCHASING NOTE: The Department has ordered a Lenco Bearcat and is currently waiting on delivery, which is projected to be in January 2026.

Annual Report on Controlled Equipment Use 2024
12 The Department currently utilizes the following Armored Vehicle:
2010 LENCO Bearcat MEDEVAC, G2
Cost $408,087
Quantity On-Order
Lifespan 25 Years
Funding Source City Funding
Manufacturer: LENCO
Manufacturer Description: The Lenco BearCat Medevac, also known as the Armored Rescue Vehicle (ARV), was designed to meet the combined requirements of SWAT & Tactical Emergency Medical Service Teams. The Medevac can be used as an armored Response & Rescue SWAT truck for dangerous callouts and is equipped to provide Tactical EMS with a safe & effective environment to deal with trauma cases. It seats 10-12 personnel with an open floor plan that allows for the rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor. The current Lenco BearCat utilized by the Department is owned by the Santa Clara County Sheriff's Office and is obtained through a mutual aid request.

Annual Report on Controlled Equipment Use 2024
13 NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) (Category 4)
A commercially produced Caterpillar tractor designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

Capability: The ROOK is primarily used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, conduct highrisk rescue operations and training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and to deliver equipment in high-risk environments. The ROOK can also be used to conduct rescue missions during disasters. Additionally, the vehicle is utilized for community engagement efforts and other applications deemed appropriate.

Usage: Use is established under Morgan Hill Policy Manual Section 709. It is the policy of the Department to utilize the armored vehicle only for official law enforcement purposes and pursuant to State and Federal law.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T. certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

Annual Report on Controlled Equipment Use 2024
14 The Department will be seeking grant funding for the following Armored Vehicle:

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) Cost N/A
Quantity N/A
Lifespan 25 Years
Funding Source Grant Funding
Manufacturer: NIJ
Manufacturer Description: ROOK is a custom "armored critical incident vehicle" built on the chassis of a CAT Bulldozer manufactured by Ring Power. The ROOK is built to increase job safety, versatility, and mission-specific response. The ROOK is equipped with powerful mission-specific attachments. The ROOK is capable of being used in tight areas both inside and outside, where traditional armored vehicles may not be able to enter.

Annual Report on Controlled Equipment Use 2024
15 Mobile Incident Command Vehicle (Category 5)
A completely self-contained command post was designed to provide shelter access to department computers for extended events. This vehicle can also manage/facilitate pre-planned or significant events requiring on-site planning and incident command personnel.

Capability: As a mobile base of operation, this vehicle contains specialized command, control, and communications equipment that can be used during critical incidents, large events, natural disasters, and community events. The command vehicle is equipped to function as a fully operational mobile Public Safety Answering Point (PSAP). It will serve as a backup to the existing Dispatch Center in the Police Department.

Usage: The command vehicle shall be used by trained personnel in a manner consistent with Department policy and training. Furthermore, only personnel who have completed the Departmental training and are properly licensed will be allowed to drive the command vehicle.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T. certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

Annual Report on Controlled Equipment Use 2024
16 The Department currently operates the following MICs:

Mobile Incident Command Vehicle
Manufacturer: LDV, Inc.

Manufacturer Description: The Mobile Command Vehicle (MCV) is a fully functioning Mobile Public Safety Answering Point (PSAP) and is a backup to our existing Dispatch Center. The MCV is a shared asset used by the Morgan Hill Police Department and the Gilroy Police Department during critical incidents, pre-planned large events, searching for missing persons, natural disasters, and community events.

Cost $ 690,132
Quantity 1
Lifespan 25 Years (Chassis)
6 Years (IT Systems)
Funding Source Grant Funding/
Department Funds

Annual Report on Controlled Equipment Use 2024
17 Long Range Acoustic Device (LRAD) (Category 13)
Long Range Acoustical Device (LRAD) is a high-intensity directional array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

Capability: Featuring an extended voice broadcast range of 600 meters, the LRAD 100X ensures voice messages are heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 100X to provide several hours of clear, continuous communication from a single battery charge.

Usage: To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects/ K9 deployments, etc.). The LRAD may also be used to issue a warning tone. Authorized Use: The LRAD shall only be used by officers trained in its deployment and used consistently with Department policy and training.

Training Requirements: All operators receive training prior to operating any of the LRAD's in the field to ensure proper deployment. It is the policy of the Morgan Hill Police Department to utilize the LRAD only for official law enforcement purposes and pursuant to State and Federal law.

Annual Report on Controlled Equipment Use 2024
18 The Department currently operates the following LRADs:

Long Range Acoustical Device (LRAD)
Manufacturer: LRAD
Manufacturer Description: Featuring an extended voice broadcast range of 600 meters, the LRAD 100X ensures voice messages are heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 100X to provide several hours of clear, continuous communication from a single battery charge.

Cost $ 17,558
Quantity 1
Lifespan 25 Years
Funding Source Grant Funding

Annual Report on Controlled Equipment Use 2024
19 40 MM Less-Lethal Launchers and Munitions
(Categories 10, 12, & 14)
A single-shot impact launcher can fire an array of less-lethal 40mm rounds.

Capability: De-escalate situations using less-lethal force and gain compliance from a safe distance. 40MM Less-Lethal Launchers have an effective range of up to 20 yards.

Usage: The 40mm less-lethal launcher may be deployed to gain compliance or de-escalate conflicts to help prevent a situation from becoming a lethal force situation. The system's effectiveness provides time and distance between officers and a suspect, reducing the threat's immediacy and allowing further deescalation. This system can be used to address self-destructive/suicidal, dangerous, and/or combative individuals; to gain a tactical advantage from a distance (i.e., breaking a window to get an unobstructed view of an individual or disabling a security camera); against potentially vicious animals; and for riot/crowd control and/or civil unrest incidents where the use of the 40mm is objectively reasonable.

Training Requirements: Officers utilizing 40MM less-lethal chemical agents or impact rounds are trained in their use by P.O.S.T. certified less-lethal chemical agent instructors. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

Annual Report on Controlled Equipment Use 2024
20 Manufacturer: Defense Technology
The Department utilizes the following 40 MM Less-Lethal Launcher and Munitions:

Defense Technologies 40 MM Single Shot Launcher #1425
Cost $810 each
Quantity 5
Lifespan 25 Years
Funding Source Department Funds
Manufacturer: Defense Technology
Manufacturer Description: The 40MM Single Launcher is a tactical single-shot launcher that features an adjustable Integrated Front Grip (IFG) with a rail-mounted holographic sight. It will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40MM less lethal round up to 131 feet and is only authorized to be used by trained personnel.

The Department currently possesses the following 40MM Munitions:

Defense Technology 40mm Exact Impact Sponge Round #6325 Cost $32 each
Quantity 53
Lifespan 5 Years
Funding Source Department Funds
Manufacturer Description: A less-lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose-built 40mm launcher with a rifled barrel at 325 FPS. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. The 30-gram foam projectile delivers 120 ft/lbs. of energy on impact.

Annual Report on Controlled Equipment Use 2024
21 Defense Technology 40MM Direct Impact Reloadable Training Kit #6530 Manufacturer: Defense Technology
Manufacturer Description: The 250-piece Direct Impact Reloadable Training Kit allows realistic training to be conducted at a fraction of the cost of using operational rounds. These reusable projectiles can be reloaded by hand in the field in less than ten (10) seconds without the need for presses or other reloading equipment. These rounds are not for use on humans.

Cost $1342 each
Quantity 1 kit
Lifespan No Expiration
Funding Source Department Funds

Annual Report on Controlled Equipment Use 2024
22 Less-Lethal Shotgun and Munitions (Categories 9 & 14) The less-lethal shotgun is a standard Remington Model 870, 12-gauge shotgun that has been converted to fire bean bag rounds as an alternative to lethal force when appropriate. The less-lethal shotgun has a distinctive, orange-colored stock and foregrip to distinguish it from lethal weapons.

Capability: The less-lethal shotgun can fire a 12-gauge Super-Sock Bean Bag Round with a maximum effective range of seventy-five (75) feet. The weapon system's range helps maintain space between officers and a suspect, reducing the threat's immediacy, which is a principle of De-Escalation.

Usage: The less-lethal shotguns can be deployed to de-escalate conflict and reduce the need for lethal force. The system's effectiveness allows time and distance between officers and a suspect, reducing the threat's immediacy and allowing further de-escalation. This system can be used to address selfdestructive/suicidal, dangerous, and/or combative individuals, to gain a tactical advantage from a distance (i.e., breaking a window to get an unobstructed view of an individual or disabling a security camera), against potentially vicious animals, riot/crowd control and/or civil unrest incidents where the use of the 40mm is objectively reasonable.

Training Requirements: Officers must complete a minimum of two hours of department training before deploying the less lethal shotgun. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

Annual Report on Controlled Equipment Use 2024
23 The Department possesses the following Less Lethal Shotguns and Munitions:

Mossberg 500 Less Lethal 12 Gauge Shotgun
Manufacturer: Mossberg
Manufacturer Description: The Mossberg 500 Less Lethal Shotgun is used to deploy the less lethal 12- gauge Super-Sock Beanbag Round up to 75 feet. The weapon system'srange helps maintain space between officers and a suspect, reducing the immediacy of the threat, a principle of De-Escalation.

Combined Systems Inc. Super-Sock Bean Bag Round #2581
Cost $32/box
Quantity 81 Rounds
Lifespan No Expiration
Funding Source General Funds
Manufacturer: Combined Systems Inc.

Manufacturer Description: A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and foregrip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target.

Cost $553.00 each
Quantity 13
Lifespan 25 Years
Funding Source General Funds

Annual Report on Controlled Equipment Use 2024
24 Diversionary Devices (Category 11)
A handheld device that can be deployed to emit a flash, sound, and/or smoke.

Capability: To produce atmospheric overpressure and brilliant white light that can cause short-term (6 to 8 seconds) physiological/psychological, sensory deprivation to give officers a tactical advantage. A diversionary device is ideal for distracting dangerous suspects during apprehensions, hostage rescues, room entry, or other high-risk arrest situations.

Usage: Diversionary devices shall only be used by officers who have been trained in the proper use. These devices can be deployed in hostage and barricaded subject situations; in high-risk (search/arrest) warrant services where there may be hazards to officers; during other high-risk situations where the use would be advantageous in preserving life and/or increasing officer safety; and during training exercises.

Training Requirements: Officers must attend diversionary device training before using this equipment.

P.O.S.T. certified instructors provide training in the safe handling, deployment, and documentation of the use of this equipment.

NOTE: Some orders of Diversionary Devices can only be ordered in minimum quantities. As a result, some inventories may occasionally exceed the needed amounts.

Annual Report on Controlled Equipment Use 2024
25 The Department currently possesses the following Diversionary Devices:

Combined Systems Inc. (CTS) Flash Bang, Steel Body-7290 Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The CTS 7290 is the standard for diversionary flash-bang devices. The patented design of the 7290 incorporates a porting system that eliminates movement of the body at detonation, even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output. The 7290 produces 165-180db and 6-8 million candelas of light output.

Special tactical units use flash bangs during hostage rescues and high-risk warrants. It is an ATFcontrolled Class-C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.

Combined Systems Inc. (CTS) Flash Bang, Steel Body-7290M Manufacturer: Combined Systems Inc. (CTS)
Cost 47.60 per
Quantity 11 in stock/ purchased
cases of 24
Lifespan 5 Years
Funding Source Department Funds
Cost $61.80 per
Quantity 20 in stock/ purchased
in cases of 12
Lifespan 5 Years (MFG 2024)
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
26 Manufacturer Description: The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all the same attributes as its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces, the new 7290M is approximately 30% lighter than the 7290 but still has the same 180db output as the 7290 and produces 6- 8 million candela of light. The patented design of the 7290M incorporates a porting system that eliminates movement of the body at detonation, even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.

Flash Bangs are used by special tactical units during hostage rescue and high-risk warrants. It is an ATFcontrolled Class-C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.

Annual Report on Controlled Equipment Use 2024
27 Rifles and Munitions (Category 9)
The rifle is a long-barreled firearm designed for greater accuracy over a long distance.

Capability: The rifle allows officers to engage hostile suspects from distances far greater than their handguns. The standard-issued rifles can have an effective range of 600 yards and offer increased accuracy over a handgun. However, rifles are not appropriate for every situation.

Usage: Officers may deploy the rifle in any circumstance where the officer can reasonably expect the rifle to be needed. Examples of some general guidelines for deploying the rifle may include, but are not limited to, the following:
• Situations where the officer reasonably anticipates an armed encounter. • When an officer is faced with a situation that may require the delivery of accurate and effective shot placement at long range.
• Situations where an officer reasonably expects the need to meet or exceed a suspect's weaponry. • When an officer reasonably believes there may be a need to deliver accurate shot placement on a barricaded suspect or a suspect with a hostage.
• When an officer reasonably believes a suspect may be wearing body armor.

Training Requirements: Officers must complete a 16-hour P.O.S.T. approved training course before deploying a rifle. Officers are required to pass a qualification course annually. P.O.S.T. certified instructors teach the course.

Annual Report on Controlled Equipment Use 2024
28 Manufacturer: Colt
The Department currently possesses the following rifles and munition:

Colt Tactical Carbine Model AR-15A3
Cost $1,099 each
Quantity 44
Lifespan Ten years
Funding Source Department Funds
Manufacturer Description: A rifle that fires an intermediate-power cartridge (.223) is more powerful than a standard pistol but less powerful than a standard rifle. Rifle has a 16" barrel. The magazine holds 30 rounds, and the rifle has a collapsible stock. The carbine allows officers to engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, AR-15 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation.

Colt Tactical Carbine Model M4
Manufacturer: Colt
Manufacturer Description: A rifle that fires an intermediate-power cartridge (.223) is more powerful than a standard pistol but less powerful than a standard rifle. Rifle has a 16" barrel. The magazine holds 30 rounds, and the rifle has a collapsible stock. The carbine allows officers to engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, M4 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation.

Cost $2,027 each
Quantity 8
Lifespan Ten years
Funding Source Department Funds

Annual Report on Controlled Equipment Use 2024
29 Remington Model 700 P Bolt Action Rifle
Manufacturer: Remington
Manufacturer Description: A semi-automatic shoulder-fired rifle with precision optics that fires a .308 Winchester cartridge. The .308 rifle allows SWAT Snipers to engage violent suspects at great distances.

The .308 rifles are used exclusively by officers assigned to the SWAT Sniper Team. These rifles are typically deployed with the SWAT Sniper Team during high-risk SWAT operations and special events or instances wherein Sniper Over Watch Teams are needed.

The Department currently possesses the following rifle munitions:

Federal American Eagle 9MM Luger 147 GR Full Metal Jacket Manufacturer: Federal
Manufacturer Description: This Federal American Eagle 9mm Luger ammunition is loaded with a 147- grain Full Metal Jacket bullet. The Full Metal Jacket bullet is for range practice and reducing fouling in the barrel. The jacket extends from the nose to the base, preventing bullet expansion and barrel leading.

This ammunition is a new production, non-corrosive ammo, featuring brass cases, boxer primed, and reloadable.

Cost $1099 each
Quantity 1
Lifespan Ten years
Funding Source Department Funds
Cost $295/ Case
Quantity 23,000 Round
Lifespan No Expiration
Funding Source Department Funds

Annual Report on Controlled Equipment Use 2024
30 Speer Gold DOT .223 62 Grain (GR) Rifle Round
Manufacturer: Speer Gold
Manufacturer Description: Remington ammo made by Speer is reloadable, features nickel-plated brass cases and Boxer primers, and is a non-corrosive round. In addition to its remarkable strength, Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity of jacket thickness. The Gold Dot LE ammunition joins the jacket and core one molecule at a time; thanks to this, Speer eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Speer Gold DOT .223 55 Grain (GR) Rifle Round
Manufacturer: Speer Gold
Manufacturer Description: Remington ammo made by Speer is reloadable, features nickel-plated brass cases and Boxer primers, and is a non-corrosive round. In addition to its remarkable strength, Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity of jacket thickness. The Gold Dot LE ammunition joins the jacket and core one molecule at a time; thanks to this, Speer eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Cost $260 Case
Quantity 11,000 Rounds
Lifespan No Expiration
Funding Source Department Funds
Cost $260/ Case
Quantity 26,000 Rounds
Lifespan No Expiration
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
31 Hornady .308 Winchester A-Max Tap Rifle Round
Manufacturer: Hornady
Manufacturer Description: This law enforcement cartridge offers match accuracy with a high ballistic coefficient, providing superior long-range performance. This load demonstrates expansion and fragmentation like the 168-gr.Load, but with a noticeable increase in penetration and retained bullet weight.

This bullet penetrates glass with minimal deflection and exhibits excellent expansion and fragmentation characteristics.

Cost $433 Case
Quantity 1200 Rounds
Lifespan No Expiration
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
32 Chemical Agents and Smoke Canisters (Category 12)
These canisters contain non-lethal chemical agents and/or smoke that are released when deployed.

Capability: Chemical agents and smoke canisters have a variety of individual capabilities and applications. Chemical agents and smoke canisters carry the agent into the environment in a variety of methods, including but not limited to powder, liquid mist, smoke, pyrotechnic devices, and vapor aerosols.

Exposure to chemical agents normally causes no lasting effects. This equipment has indoor and outdoor capabilities and uses.

Usage: The use of chemical agents causes mucous membranes and exposed skin to become inflamed, resulting in a burning sensation. It provides a temporary respiratory effect and induces discomfort on the skin. Chemical agents and smoke canisters may be utilized during confrontations with violent or potentially violent suspects as a less lethal option to assist with dispersing violent crowds and/or for the arrest of suspects. Smoke canisters are used to create a diversion or conceal the movement of a tactical team.

Training Requirements: Officers utilizing chemical agent canisters are certified by P.O.S.T. less-lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, as well as the terminology and documentation for the use of this equipment.

Annual Report on Controlled Equipment Use 2024
33 The Department currently possesses chemical agents:

Combined Systems Inc. (CTS) 6210-R Red Smoke
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: White and colored smoke grenades obscure tactical movement, signaling or marking a landing zone.

Outdoor Tactical Grenade CS- 8230
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: 8230 – The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. It can be hand-thrown or launched.

Specifically for outdoor use, it should not be deployed on rooftops, crawl spaces, or indoors due to fireproducing capability.

Cost $45.85 per
Quantity 23 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 26.40 per
Quantity 26 in stock
Lifespan 5 Years
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
34 40 MM Frangible Impact-CS Powder-4530
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: 40MM multi-effect munition delivering greater energy on the target with extreme accuracy and simultaneously dispersing a cloud of irritant or marking powder.

Launching Cup attachment
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The LC6 Launching Cups are designed for the 6200 series grenades. These can be fired from most 12ga smooth-bore shotguns. The cups can be attached to virtually any 12ga shotgun, and the munition is launched with our model 2600 launching cartridge.

Cost 30.00 per
Quantity 58 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 100.00 per
Quantity 2 in stock
Lifespan
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
35 Combined Systems Inc. (CTS) CS Baffled Canister Grenade, Pyro, Low Flame Potential- 5230(B) Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: Pyrotechnic grenade designed for indoor use, delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

Combined Systems Inc. (CTS) Launching Cartridge- 2600
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The LC5 & LC6 launching cups are designed for the 52 & 62 series grenades, respectively. The cups can be attached to virtually any 12ga shotgun, and the munitions are launched with our Model 2600 and 3600 launching cartridges.

Cost $60.56 each
Quantity 49
Lifespan 5 Years
Funding Source General Fund
Cost $8.50 each
Quantity 64
Lifespan 5 Years
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
36 Combined Systems Inc. (CTS) OC Vapor Grenade-6340
Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: This unique grenade delivers an invisible Oleoresin capsicum (OC) vapor and renders an intense respiratory effect to a non-compliant subject.

Cost 57.22 per
Quantity 21
Lifespan 5 Years
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
37 Pepper-Ball Launcher and Projectiles
A device that discharges projectiles containing non-lethal chemical agents, which are released upon impact.

Capability: The Defense Innovation is a compressed-air powered launcher designed to fire non-lethal PepperBall projectiles.

Usage: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Situations for the use of the less-lethal weapon systems may include but are not limited to:

1. Self-destructive, dangerous, and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

Training Requirements: Officers utilizing PepperBall launchers are trained in their use by P.O.S.T. certified less-lethal and chemical agent instructors.

Annual Report on Controlled Equipment Use 2024
38 The Department currently possesses the following PepperBall Launcher:

Defense Innovations PepperBall Launcher
Manufacturer: Defense Innovations
Manufacturer Description: This is a compressed-air powered launcher designed to fire non-lethal PepperBall projectiles. The device discharges projectiles containing non-lethal chemical agents, which are released upon impact. The PepperBall Defense Innovation is a single-feed system that uses a hopper.

PepperBall Projectiles
Manufacturer: Defense Innovations
Manufacturer Description: The basic PepperBall projectile contains 2% PAVA pepper powder and is designed for direct impact and area saturation, especially in confined interior spaces. The projectile contains 0.5% PAVA Powder. The projectile is discharged from a PepperBall Launcher and has a 200- 500 FPS velocity.

Cost $350.00
Quantity 2
Lifespan 20 years
Funding Source General Fund
Cost $75.00
Quantity 2
Lifespan Three years
Funding Source General Fund

Annual Report on Controlled Equipment Use 2024
39 Training Summary
Safely using certain military equipment requires ongoing training to maintain proficiency and required certifications. While the Department conducts most ongoing training internally through the Personnel and Training Division, external training courses and services are often also necessary. Training courses can vary yearly depending on operational needs and State or Federal mandates. Consumable and nonconsumable equipment are often used during training to ensure competency during actual operational use.

Funding sources for training include the Police Department's operating budget and/or grants.

Annual Report on Controlled Equipment Use 2024
40 Equipment Costs
The following table summarizes equipment-related expenditures for the calendar year 2024 and the projection of expenses for the calendar year 2025. Equipment expenditures include the acquisition of new equipment, the replacement of damaged equipment, and the ongoing maintenance of the controlled equipment.

Equipment Type Annual Maintenance
(2024)
Projections
(2025)
Unmanned Aircraft System $0 $0
Armored Vehicles N/A To be paid in 2026
The ROOK N/A N/A
Mobile Incident Command $5,459.00 $12,000.00
Long Range Acoustical
Device (LRAD) $0 $0
40 mm Less-Lethal
Launchers $250.00 $250
Less-Lethal Shotguns $0 $12,423.88
Diversionary Devices $1,579.00 $1,500.00
Rifles $0 $4,806.96
Chemical Agents and
Smoke Canisters $0 $1,500.00
PepperBall Launchers $100.00 $100.00
TOTAL $7,388.00 $ 32,580.84

Annual Report on Controlled Equipment Use 2024
41 Military Equipment Funds
Fiscal Impact
The Morgan Hill Police Department is budgeted for 67 full-time employees, including 42 full-time sworn officer positions and 25 full-time professional staff positions. During Fiscal Year 2024/2025, the Police Department had an operating budget of $25,391,085.00.

Although the City of Morgan Hill adopts its operating budget on a two-year fiscal basis (beginning July 1), the cost of controlled equipment expenditures is reflected in this report for the calendar year 2024 as required by Assembly Bill 481.

In 2024, the Morgan Hill Police Department spent approximately $7,388.00 for controlled equipment.

Some expenditures for military equipment were funded through State and/or Federal grants, reducing the impact of acquiring, utilizing, maintaining, and training with military equipment on the Department's operating budget. Although some of these expenditures were paid for with grant funding, the total expenditures represent only 0.03% of the Police Department's operating budget. $20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Controlled Equipment Budget Non-Employee Services Employee Services

Annual Report on Controlled Equipment Use 2024
42 Projected Acquisitions for 2024
Although most acquisitions can be anticipated, the unanticipated replacement of existing military equipment may be necessary due to loss or damage. Replacement of these items will be handled on a caseby-case basis dependent on operational need and in compliance with department policy for acquiring controlled equipment.

Annual Report on Controlled Equipment Use 2024
43 Consumable Controlled Equipment
Consumable military equipment acquisitions for 2024 will remain consistent with current replenishment schedules and policies. Acquisitions will only restore quantities previously approved by the governing body.

Categories of consumable military equipment include:
• Ammunition (All Calibers)
• Chemical Agent and Smoke Canisters
• Specialty Munitions (40mm Munitions and Less Lethal Munitions) • Diversionary Devices

Annual Report on Controlled Equipment Use 2024
44 Non-Consumable Controlled Equipment
Lenco G3 Bearcat
The Department has ordered a Lenco Bearcat G3. A second Bearcat in South County will help the Gilroy Police Department and Morgan Hill Police Department enhance their ability to provide protection and rapid response during emerging incidents. Currently, there is no dedicated bearcat vehicle in South County; however, the Gilroy Police Department has purchased a Bearcat with a delivery date later this year. Our Department's Bearcat has a delivery date of January, 2026.

The Department used funding from the Police Department's Unclaimed Account ($283,000) and the Vehicle Replacement Fund ($127,000), The funds used from vehicle replacement have been set aside to replace the current SWAT vehicle (purchased in 2003). However, the vehicle is still in good operating condition, has low mileage, and does not need to be replaced at this time. The projected cost for the equipment is listed below:

Lifespan: 25 years
Fiscal Impact: The annual maintenance for a Lenco G3 Bearcat will be approximately $5,000.00 a year.

Training: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T. certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The Department seeks to purchase an NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK). The ROOK will primarily be used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, conduct highrisk rescue operations and training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and for delivering equipment in high-risk environments.

The ROOK can also be used to conduct rescue missions during disasters. Additionally, the vehicle would be utilized for community engagement efforts and other applications deemed appropriate.

Funding for acquiring a ROOK will be from grant funding, as the Department is looking for grant funding or other funding options. The projected cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
NIJ Level IV Armored Caterpillar Multi-Terrain
Loader (The ROOK)
4 1 $400,000
TOTAL: $400,000
Lifespan: 25 years
Fiscal Impact: The annual maintenance for a ROOK will be approximately $8,000.00 a year.

Manufacturer Name and Model Category Quantity Cost
Lenco G3 Bearcat 2 & 3 1 $408,087
TOTAL: $408,087

Annual Report on Controlled Equipment Use 2024
45 Training: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T. certified driving instructors provide training consisting of safe driving practices and proper operation of the vehicle's equipment.

Heckler & Koch MP5
The Department currently possesses four (4) Heckler & Koch (H&K) MP5s that have not been in use since 2005. The Department plans on putting the four (4) H&K MP5s back in use; they will be used by trained members of the Department's SWAT team. Placing these firearms back in circulation will allow members of our SWAT team to have an alternative firearm for specific SWAT operations where a more compact firearm is needed. Prior to being placed in circulation, each firearm will go through a thorough inspection to ensure suitability.

Funding for maintaining the H&K MP5s will be from general fund funding. The project is using equipment currently owned by the Department as listed below:

Manufacturer Name and Model Category Quantity Cost
Heckler and Koch MP5 9 4 $0
TOTAL: $ 0
Lifespan: 15 Years
Fiscal Impact: The annual maintenance for the H&K MP5s will be approximately $500.00 a year.

Training: All SWAT operators will complete a minimum of two (2) hours of department training before deploying the H&K MP5. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

Colt AR-15
The Department will purchase an additional five (5) Colt AR-15 rifles. The additional rifles will allow the Department to outfit all the department officers with rifles and have spares that can be used during annual maintenance. These rifles are on backorder with the vendor with a delivery date in 2025.

The Department has set funding aside for the purchase of the Colt AR-15 rifles. The project cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
Colt AR-15 9 5 $8,885.00
TOTAL: $8,885.00
Lifespan: 10 Years
Fiscal Impact: The annual maintenance for the rifles will be approximately $250.00 a year.

Annual Report on Controlled Equipment Use 2024
46 Training: Officers must complete a 16-hour P.O.S.T. approved training course before deploying a rifle.

Officers are required to pass a qualification course annually. P.O.S.T. certified instructors teach the course.

Remington 870 Less Lethal Shotguns
The Department seeks to purchase (15) fifteen Remington 870 Less Lethal shotguns. This purchase will replace the Department's current less lethal shotguns as they have come to the end of life. These shotguns are on backorder with the vendor with a delivery date in 2025.

The Department has set funding aside for the purchase of the Remington 870 Less Lethal shotgun. The project cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
Remington 870 Less Lethal Shotgun 9 & 14 15 $15,911
TOTAL: $15,911
Lifespan: 15 Years
Fiscal Impact: The annual maintenance for the less lethal shotgun will be approximately $250.00 a year.

Training: All officers must complete a minimum of two (2) hours of department training before deploying the less lethal shotgun. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

Surefire Suppressors SOCOM556-RC2
The Department intends to acquire eight (8) Surefire Suppressors SOCOM556-RC2 for the Department’s SWAT team. The Surefire Suppressor SOCOM556-RC2 optimizes any 5.56 mm/.223-caliber weapon system with a minimum barrel length of 10 inches. It incorporates the latest in manufacturing techniques and materials to produce the most exceptional tool. Precision-built of advanced high-temp Inconel alloys and stainless steel, and CNC laser-welded for uncompromising durability, the RC2 can withstand harsh conditions while helping to maintain the reliability of the weapon due to unique internal baffling that reduces backpressure.

Funding for acquiring the Surefire Suppressors SOCOM556-RC2 will be from general fund funding. The project cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
Surefire Suppressor SOCOM556-RC2 9 & 14 8 $ 9592.00
TOTAL: $9592.00
Lifespan: 15 Years
Fiscal Impact: The annual maintenance for the Surefire Suppressor SOCOM556-RC2 will be approximately $50.00 a year.

Annual Report on Controlled Equipment Use 2024
47 Training: All SWAT operators must complete a minimum of two (2) hours of department training before deploying the Surefire Suppressor SOCOM556-RC2. Training includes a review of the Department's Use of Force Policy, nomenclature, familiarization of the system, and a qualification course.

Tomahawk Mini Burn Safe
The Department intends to acquire two (2) Tomahawk Mini Burn Safes for the deployment of CS Tactical Grenade Canisters during SWAT operations. The Tomahawk Mini Burn Safe is a compact and highly efficient incineration unit designed for the safe disposal of sensitive documents, small-scale waste, and combustible materials. Engineered with durability, security, and convenience in mind, this burn safe provides a controlled environment for incineration, ensuring minimal emissions and high combustion efficiency.

Funding for acquiring the Tomahawk Mini Burn Safes will be from general fund funding. The projected cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
Tomahawk Mini Burn Safe 12 2 $ 450.00
TOTAL: $450.00
Lifespan: 10 years
Fiscal Impact: The annual maintenance for a Tomahawk Mini Burn Safe is approximately $100.00.

Training: Officers utilizing chemical agent canisters are certified by P.O.S.T. less-lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, as well as the terminology and documentation for the use of this equipment.

Tomahawk Burn Safe Spear
The Department intends to acquire two (2) Tomahawk Burn Safe Spears for the deployment of CS Tactical Grenade Canisters during SWAT operations. The Tomahawk Burn Safe Spear is a robust and precisionengineered tool designed forsafe, efficient, and controlled incineration of various materials. Whether used for secure document disposal, controlled burning in outdoor environments, or tactical applications, this burn safe spear combines durability, high-temperature resistance, and user-friendly operation.

Funding for acquiring the Tomahawk Mini Burn Safes will be from general fund funding. The projected cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
Tomahawk Burn Safe Spear 12 2 $ 1570.00
TOTAL: $1570.00
Lifespan: 10 years
Fiscal Impact: The annual maintenance for a Tomahawk Burn Safe Spear is approximately $100.00.

Annual Report on Controlled Equipment Use 2024
48 Training: Officers utilizing chemical agent canisters are certified by P.O.S.T. less-lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, as well as the terminology and documentation for the use of this equipment.

A-RNVG - Gen III White Phosphor Articulating Dual Tube Night Vision Goggle w/ Wilcox G24
The Department intends to acquire eight (8) RNVG-A AB night vision goggles for the Department’s SWAT team members. The RNVG-A, also known as A-RNVG, (Articulating Ruggedized Night Vision Goggle) is an extremely tough, full featured night vision binocular. The housing is billet machined from aircraft grade aluminum and designed to handle challenging real-world environments.

The design includes push button switches for power and an Infrared Illuminator. The IR illuminator button is guarded by a fence with distinctive contours to prevent inadvertently activating the IR illuminator.

Indicators in the viewing area alert the user if the IR illuminator is on, or if the unit senses a low battery condition. The unit is powered by either an onboard 123 battery or auxiliary power from a battery pack using a 4-pin LEMO style connector.

RNVG-A optics feature a full range of adjustments. The mil-spec objectives allow the user to focus between 9.8 inches and infinity, while the mil-spec eyepieces offer a diopter adjustment range of -6 to +2. The articulating design allows the user to quickly adjust for an Interpupillary Distance from 47mm to over 80mm.

Each optical pod can be rotated up out of the user’s view as desired, freeing one or both eyes for natural sight as conditions demand. When the goggle is helmet mounted and in the stowed position, the optical pods can be folded back flat against the helmet to minimize neck strain and better protect the goggle, and the user, from impacting overhead objects. The optical pods automatically turn off when articulated up. This feature prevents illumination on the helmet when one side is articulated up and ensures that the image intensifiers are ‘off’ in the stowed position with the optical pods folded back against the helmet. The force required to swing the optical pods is user-adjustable using a coin.

Funding for acquiring the RNVG-A AB night vision goggles will be from grant funding, as the Department is looking for grant funding or other funding options. The projected cost for the equipment is listed below:

Manufacturer Name and Model Category Quantity Cost
AB Night Vision 15 8 $ 71,960.00
TOTAL: $71,960.00
Lifespan: 10 years
Fiscal Impact: The annual maintenance for a RNVG-A AB night vision goggles is approximately $250.00.

Annual Report on Controlled Equipment Use 2024
49 Training: All SWAT operators must complete a minimum of two (2) hours of department training before deploying the RNVG-A AB night vision goggles.

Annual Report on Controlled Equipment Use 2024
50 Department Transparency
Occasionally, the application and use of controlled equipment may prompt questions or cause concern among community members.

The Morgan Hill Police Department strives to provide transparency on police activities, department policies, agency practices, and the use of controlled equipment. Remaining accountable to our community builds trust and confidence while enhancing community relationships in alignment with the Pillars of 21st Century Policing.

Annual Report on Controlled Equipment Use 2024
51 Controlled Equipment Coordinator Report
Although the Department remains transparent with our community, we may occasionally receive complaints about our policies, practices, and/or the use of controlled equipment. The Morgan Hill Police Department is committed to completing thorough and fair investigations of complaints. Resolving complaints fairly, impartially, and expeditiously helps maintain community trust and ensures the Morgan Hill Police Department will continue to provide superior service to our community.

The Morgan Hill Police Department has a designated Controlled Equipment Coordinator responsible for conducting military equipment inspections and audits to ensure compliance with Assembly Bill 481. The Controlled Equipment Coordinator is also the designated point of contact for receiving citizen complaints and tracking policy violations related to the use of controlled equipment.

Inventory
The Controlled Equipment Coordinator conducted an inventory check and identified controlled equipment not included in the inventory itemization reported in 2024. The inventory itemization in this report has been corrected to reflect the equipment not previously included.

Complaints
The Morgan Hill Police Department did not receive any citizen complaints about using or possessing military equipment for 2024.

Policy Violations
The Morgan Hill Police Department did not identify any policy violations related to the deployment or use of controlled equipment for 2024.

Annual Report on Controlled Equipment Use 2024
52 Conclusion
The equipment, resources, and training this report outlines allows the Morgan Hill Police Department to protect our community by enhancing public and officer safety—the use of controlled equipment aids us in resolving critical incidents safely and effectively. Although controlled equipment is utilized infrequently, it must be readily available in rapidly evolving and dynamic situations where such equipment can be used effectively in our response to public safety threats.

When deciding how controlled equipment isfunded, acquired, or used, the Morgan Hill Police Department considers the public's welfare, safety, and civil liberties. This annual military equipment report reaffirms the Department's commitment to transparency, providing information to our community, and ensuring compliance with the law.

The Department welcomes meaningful public input regarding the use of controlled equipment to keep our community safe. Inquiries, complaints, or concerns can be submitted to the Morgan Hill Police Department's Controlled Equipment Coordinator via email at [email protected] .

Visit our website for more information, https://www.morganhill.ca.gov/129/Police-Department .

Annual Report on Controlled Equipment Use 2024
53 Appendix
Definitions

1. Governing Body- The legislative body of the City of Morgan Hill.

2. Controlled Equipment- Includes items defined by California Government Code section 7070, subsections (c)(1) through (c)(16).

3. "Military Equipment Impact Statement" means a publicly released, written document that includes, at a minimum, all of the following:
(a) Description: A description of each type of Controlled Equipment, the quantity sought, its capabilities, expected lifespan, intended uses and effects, and how it works, including product descriptions from the manufacturer of the Controlled Equipment. (b) Purpose: The purposes and reasons for which the Morgan Hill Police Department (hereinafter, "Police Department") proposes to use each type of Controlled Equipment. (c) Fiscal Cost: The fiscal cost of each type of Controlled Equipment, including the initial costs of obtaining the equipment, the estimated or anticipated costs of each proposed use, the estimated or anticipated costs of potential adverse impacts, and the estimated or anticipated annual, ongoing costs of the equipment, including operating, training, transportation, storage, maintenance, and upgrade costs.
(d) Impact: An assessment specifically identifying any potential impacts that the use of Military Equipment might have on the welfare, safety, civil rights, and civil liberties of the public and what specific affirmative measures will be implemented to safeguard the public from potential adverse impacts.
(e) Mitigations: Specific, affirmative technical and procedural measures that will be implemented to safeguard the public from such impacts.
(f) Alternatives: Alternative methods or methods by which the Police Department can accomplish the purposes for which the Military Equipment is proposed to be used, the annual costs of alternative method or methods, and the potential impacts of alternative method or methods on the welfare, safety, civil rights, and civil liberties of the public.

From: Mario Ramirez <[email protected]>
Sent: Monday, May 12, 2025 4:03 PM
To:

Subject: RE: [EXTERNAL] public comment 2024 Annual Report on Controlled Equipment Use Dear XXXXXXXXXXXX,
Thank you for your thoughtful message and for continuing to engage so consistently with the Morgan Hill Police Department's transparency and oversight processes. We appreciate the time and effort you dedicate to reviewing our reports and offering detailed feedback.

Your input plays an important role in encouraging ongoing dialogue and accountability.

We're sorry you won't be attending the upcoming community engagement meeting. As in previous years, a summary of the meeting will be included in the staff report presented to the City Council for their approval of the report.

We also appreciate your acknowledgment of the Department's use-of-force statistics and your recognition of the efforts made in 2024 to reduce such incidents. Regarding your concerns about the characterization of controlled equipment and the physical effects on individuals, we understand your perspective. The reporting requirements under Government Code Section 7072 define all reporting boundaries. We understand that some community members wish to have more information; however, these reporting requirements are in place to ensure the integrity of all investigations and the privacy of those involved.

You've raised several specific questions—ranging from policy clarity to deployment practices—and we are reviewing them closely. Where possible, we will work to incorporate clearer, more accessible explanations in our reporting. Some of the questions you've raised—such as those regarding the 40MM less-lethal launcher and the use of distraction devices in confined spaces—highlight important considerations. However, because each incident is unique and context-specific, it would not be appropriate to provide broad or generalized answers. That said, we are reviewing your concerns internally to determine where we may be able to offer further clarification.

Your ongoing participation and insight reflect the very purpose of AB 481—to involve the community in matters of oversight, trust, and public safety. We hope to continue this important conversation and welcome any future correspondence.

Sincerely,
Mario C. Ramirez
Police Captain
Engage With Us!

City of Morgan Hill
Morgan Hill Police Department
16200 Vineyard Boulevard Morgan Hill, CA 95037
P: 669-253-4987
[email protected]
morganhill.ca.gov | Facebook | Twitter
From: XXXXXXXXXXXXXXXXX
Sent: Monday, May 12, 2025 8:18 AM
To: Mario Ramirez <[email protected]>
Cc: CC Public Comment <[email protected]> Subject: [EXTERNAL] public comment 2024 Annual Report on Controlled Equipment Use public comment 2024 Annual Report on Controlled Equipment Use To: Department Controlled Equipment Coordinator:

[email protected]
CC: ccpubliccomment
Hello Captain Ramirez,
I will not be attending your one well-publicized and conveniently located community engagement meeting. In a previous year, City Clerk staff attended and said they would take notes. I never saw those notes published. Will someone be counting noses and taking notes to be made public at the May 14 meeting?
Before I raise again some of my concerns submitted against previous reports in 2022, 2023, and 2024, I do want to congratulate the Department:
"In 2024, the Morgan Hill Police Department responded to approximately 33,579 calls for service. Of those calls for service, officers used force on seven (7) occasions, representing .0002% of the total calls for service. (It should be noted that the Department saw a decrease in the number of use-of-force incidents in 2024 compared to 2023.) Officers utilized controlled equipment in two (2) cases involving the use of force."
The report device descriptions are from the point of view of the officer employing the device. What I have repeatedly argued for, and that the report fails (in my opinion) to describe fully, is to define the physical "Effects" from the civilian/recipient point of view.

MHPD considers my comments in this area to be
"outside the purview of Government Code Section 7072 requirements".

So the interpretation of the report contents in light of the

Appendix Definitions
(d) Impact: potential impacts ... on the welfare, safety, civil rights, and civil liberties of the public
(e) Mitigations:
(f) Alternatives:
must mean that "public" does not include the target of the police action.

In my 2023 comments, I compared the device descriptions in the report to those in MHPD Policy 709 Military Equipment. I have not re-visited that comparison for this year. Let me give one example of what I have noted in the past to help you understand my position.
40MM Less-Lethal Launchers and Munitions
The Manufacturer Description says the approved distance of not less than five (5) feet and as far as 131 feet. The 30-gram foam projectile delivers 120 ft/lbs of energy on impact. What is the effect on a person at 5 feet and at 130 feet? What parts of the body are approved targets? The Department states that it's use of controlled equipment is consistent with overall best practices employed by police departments nationwide.

To "qualify" the claim that these devices are best practices and have been tested in the field, I will remind you of the evolution of arson science.

A person was convicted in 1990 and released in 2015 as a result of long-held beliefs about arson science being debunked after decades of misuse, specifically folklore taken as science in court testimony until real scientific experiments revealed different truths.
[case of Han Tak Lee, a New York man serving a life sentence in Pennsylvania prison for a 1989 arson murder]
1) Summary of Controlled Equipment Usage
Comment: Unlike the details of deployment for
40 MM Launchers and Rounds utilized operationally one (1) time in 2024. and
Less Lethal Shotgun utilized one (1) time operationally in 2024. no details are provided for
Distraction Devices utilized three (3) times in 2024 as attention-getting devices related to SWAT callouts or high-risk warrant services.

We should at least know if they were used in confined spaces where "atmospheric overpressure" causes "physiological/psychological, sensory deprivation".
2) Current Inventory of Controlled Equipment
Diversionary Devices (aka FLASH-BANG) called Distraction Devices in Policy 709 and use is established under Policy 308.

Comment: What is the smallest enclosure in which this can be used?

For example, in a car? What is the minimum distance from a person when it explodes?
3) Current Inventory of Controlled Equipment
Mobile Incident Command Vehicle
The MCV is a shared asset used by the Morgan Hill Police Department and the Gilroy Police Department during ... natural disasters.

Comment: How would sharing work if both cities experience the same natural disaster (likely an earthquake)?]
4) Non-Consumable Controlled Equipment
Surefire Suppressors
The Department intends to acquire eight (8) Surefire Suppressors for the Department's SWAT team.

The Surefire Suppressor optimizes any 5.56 mm/.223-caliber weapon system with a minimum barrel length of 10 inches. It incorporates the latest in manufacturing techniques and materials to produce the most exceptional tool. Precision-built of advanced high-temp Inconel alloys and stainless steel, and CNC laser-welded for uncompromising durability, the RC2 can withstand harsh conditions while helping to maintain the reliability of the weapon due to unique internal baffling that reduces backpressure.

Comment: "word salad". Is this what TV crime watchers would call a "Silencer"? What is its purpose?
5) The purpose of AB 481, and a more focused effort by Supervisor Simitian at County for surveillance devices, is that "internal processes and oversight" are insufficient for transparency.

There is repeated use of "pursuant to State and Federal law".

Comment: This provides no actionable information to an ordinary person.

Nor do you provide any mechanism for informing us of changes in those laws. Remember back when state law required ALPR policy to be posted on web site; MHPD did so but without any attempt to notify the community.
6) Department Transparency
Comment: the whole section is just "word salad".

In closing, while I generally do not argue the opposition point-of-view, I am aware, from an impromptu conversation with Chief Palsgrove and Captain Ramirez following a City/School Liaison meeting, that two very different interpretations can arise from the same factual situation. I had said that when I see 3 or 4 officers surrounding a person, I think that this is unnecessary intimidation. Captain Ramirez then said that just the

presence of additional officers could tip the balance and have a suspect not resist and so was actually a de-escalation technique.

Submitted by Morgan Hill resident Doug Muirhead.

7 CITY COUNCIL STAFF REPORT
MEETING DATE: June 4, 2025
PREPARED BY:

Michelle Bigelow, City Clerk
APPROVED BY: City Manager

APPROVE CITY COUNCIL ASSIGNMENT UPDATE TO SILICON
VALLEY CLEAN ENERGY (SVCE) FOR 2025

RECOMMENDATION(S)

1. Approve the appointment of Mayor Mark Turner as the alternate representative to the Silicon Valley Clean Energy Authority (SVCE), replacing outgoing staff member Tanya Carothers; and

2. Direct the City Clerk to notify SVCE of the updated assignment and update the Form 806 as necessary.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Advocating for Local, Regional, and State Legislative Initiatives 2024-2025 Strategic Priorities
Fiscal Sustainability
Healthy Community
REPORT NARRATIVE:

As part of the City’s continued participation in regional agencies, staff recommends updating the City Council’s appointment to the SVCE Board to reflect staffing changes.

With the departure of Environmental Programs Administrator Tanya Carothers, Mayor Mark Turner will serve as the City’s alternate representative to SVCE. This update ensures continued representation and active engagement in regional clean energy policy discussions. The Mayor makes appointments with ratification by the City Council.

The SVCE Board plays a critical role in shaping local and regional decisions related to renewable energy procurement, grid reliability, and long-term sustainability efforts.

Mayor Turner’s appointment will help maintain the City’s influence in these key conversations and reinforce Morgan Hill’s commitment to clean energy goals and climate action priorities.

7 COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community of the update to the City Council assignment to SVCE.

ALTERNATIVE ACTIONS:

The council may recommend another council member for appointment.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council reviews and confirms the assignments to outside agencies annually.

FISCAL AND RESOURCE IMPACT:

The time necessary to prepare and present this staff report is accommodated in the Council Services and Records Management Operating Budget. The level of City Council and staff resources necessary to actively participate in each outside assignment varies with some requiring a significant amount of time.

CEQA (California Environmental Quality Act):

Not a Project
The preparation of the City Council assignments to outside agencies is an administrative task and as such, is not a project.

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Countywide
Santa Clara County Library
District Joint Powers Authority
1370 Dell Avenue
Campbell, CA 95008
Virginia Johnson,
Executive Assistant
[email protected]
408-293-2326 x3090
https://sccld.org/jpa/
Provide policy direction and
governance for the Santa Clara
County Library District. Cities of
Campbell, Cupertino, Gilroy, Los
Altos, Los Altos Hills, Milpitas,
Monte Sereno, Morgan Hill &
Saratoga.

Meets 4 times per
year typically on the
4th Thursday of
month;
12:00 pm
1370 Dell Avenue
Campbell, CA
95008
(P) Turner
(A) Borgioli

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Countywide
Silicon Valley Interoperability
Authority
Eric Nickel, Executive Director
[email protected]
(408) 615-5571
https://svria.org/
The Silicon Valley Regional
Interoperability Authority (SVRIA)
works to seamlessly integrate voice
and data communications between
law enforcement, the fire and rescue
service, emergency medical
services and emergency
management for routine operations,
critical incidents and disaster
response and recovery.

For 2023, meets at
4 pm:
• 1st Thursday in
February
• 4th Thursday in
March
• 2nd Thursday in
May
• 4th Thursday in
July
• 4th Thursday in
September
• 3rd Thursday in
November
(P) Tom Cline –
Gilroy
(A) Turner

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Environmental
Santa Clara Valley Habitat
Agency
Governing Board
535 Alkire Avenue, Suite 100
Morgan Hill, CA 95037
Ed Sullivan, Executive Officer
Edmund.sullivan@scvhabitatagency.org
(408) 779-7261
https://scvhabitatagency.org/31/Governan
ce-Policies
Serves as governing body for JPA
and makes all decisions except
those delegated to the
Implementation Board Staff.

Quarterly, 3rd
Thursday
3:00 pm - 5:00 pm
Morgan Hill City
Council Chamber
17555 Peak
Avenue
(P) Spring
(P) Librers
(A) Turner
(A) Borgioli
Environmental
Santa Clara Valley Habitat
Agency
Implementation Board
535 Alkire Avenue, Suite 100
Morgan Hill, CA 95037
Ed Sullivan, Executive Officer
Edmund.sullivan@scvhabitatagency.org
(408) 779-7261
https://scvhabitatagency.org/31/Governan
ce-Policies
Makes recommendations to the
Governing Board regarding fees and
budget, appoints executive officers
and hiring of other agency
personnel, services, and equipment,
makes decision regarding real
property acquisition and makes
recommendations to the executive
officers regarding grants and other
funding.

Bi-Monthly, 3rd
Thursday
3:00 pm - 5:00 pm
Morgan Hill City
Council Chamber
17555 Peak
Avenue
(P) Spring
(A) Turner
(A) Borgioli
(P) Carman
(A) Ramirez

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Environmental
Silicon Valley Clean Energy
Authority
333 W. El Camino Real, Suite
290
Sunnyvale, CA 94087
Andrea Pizano
andrea.pizano@svcleanenergy.
org
(408) 721-5301 x.1005
https://www.svcleanenergy.org/
board
The JPA created to collectively
study, promote, develop, conduct,
operate, and manage energy supply
and efficiency programs related to
the provision of clean power.

Recommended two year assignment
per SVCE
2nd Wednesday of
the month
7:00 pm
Cupertino
Community Hall
10350 Torre Ave
(P) Martinez
Beltran
(A) Turner
Flood Control
Pajaro River Watershed Flood
Prevention Authority
PO Box 809
Marina, CA 93933
Ana Flores
Regional Analysis & Planning
Services
[email protected]
(831)883-3750 ext. 300
http://www.pajaroriverwatershe
d.org
Identify, evaluate, fund, and
implement environmentally sound
flood prevention and control
strategies in the Pajaro River
Watershed, on an
intergovernmental, cooperative
basis as required by the Pajaro
River Watershed Flood Prevention
Authority Act.

Meet bi-monthly
1st Friday
9:00 am
Meeting locations
alternate between
the Cities of Gilroy,
Hollister, Salinas &
Watsonville
(P) Spring
(non-voting
member)
Chris Ghione,
Public Services
Director

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Flood Control
Santa Clara Valley Water
District Elected Officials
Quarterly Meeting (Llagas
Creek PL 566)
5750 Almaden Expressway
San Jose, CA 95118-3686
(mailing address)
Michelle King, Clerk of the
Board
[email protected]
(408) 265-2600
Specifically address Llagas Creek
flooding and Anderson Dam Retrofit
Project.

Quarterly on
Fridays
10:00 am
Currently held via
Zoom only
Morgan Hill City
Hall, Grand
Conference Room
17575 Peak Ave
(P) Spring
(P) Borgioli
(A) Martinez
Beltran
Chris Ghione,
Public Services
Director
Housing
Santa Clara County Housing &
Community Development
Advisory Committee (HCDAC)
Office of Supportive Housing
3180 Newberry Drive, Ste 150
San Jose, CA 95118
Alejandra Herrera Chavez,
Program Manager I
[email protected].
org
(408) 278-6414
David Leon – Clerk of the
Board contact
[email protected]
The role of the HCD Advisory
Committee is to be the policyrecommending body to the Board of Supervisors on the planning,
implementation, monitoring, and
evaluation of the Urban County HCD
Program. The Committee guides the
development of a coordinated
housing and community
development plan and hears project
proposals, reviews staff
recommendations, and makes
recommendations to the Board of
Supervisors for final approval and
forwarding to HUD.

As needed
70 West Hedding
Street, 1st Floor
Board Chambers
(P) Martinez
Beltran
(A) Librers
Rebecca
Garcia,
Housing
Director

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Local Partnership
City-School Liaison Committee
Morgan Hill Unified School
District;
15600 Concord Circle
or
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037-4128
Kelly Schriefer, Secretary to the
Superintendent, MHUSD
[email protected]
(408) 201-6001
Kim Mancera, Deputy City
Clerk
[email protected]
ov
(408) 310-4680
http://mhusd.org/board-ofeducation/cityschool-liaisoncommittee/ To facilitate communication between
the City and School District on
issues of common concern.

Every other month,
typically on Fridays
8:30 am
Meetings alternate
between the City of
Morgan Hill, City
Hall
17575 Peak Ave
and the Morgan Hill
Unified School
District Office
15600 Concord Cir
(P1) Turner
(P2) Martinez
Beltran
(A1) Librers
(A2) Borgioli
Christina
Turner, City
Manager
Shane
Palsgrove,
Police Chief
Chris Ghione,
Public Services
Director

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Local Partnership
South County Youth Task
Force – Policy Team
7301 Hanna Street
Gilroy, CA 95020
Sandra Cruz
South County Youth Task
Force Coordinator
[email protected]
(408) 846-0337
The South County Youth Task Force
is a collaboration of local
governments, school districts,
community and faith-based
organizations, and law enforcement
agencies in South County who are
committed to serving, supporting,
and uplifting our youth so that they
have the opportunity to thrive.

Meets bi-monthly or
six times per year
(P1) Turner
(P2) Borgioli
The Mayor and
one Council
Member are exofficio members
of the Policy
Team
Christina
Turner, City
Manager
Shane
Palsgrove,
Police Chief
Chris Ghione,
Public Services
Director

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Regional
Government
ABAG
375 Beale Street
San Francisco
Fred Castro, Clerk of the Board
[email protected]
(415) 820-7913
https://abag.ca.gov/overview/ga
.html
Council of governments
representing Cities & Counties in the
Bay Area; a comprehensive
planning agency addressing
regional social, environmental, and
economic issues.

Meets annually,
usually in April
Location varies
(Oakland or San
Francisco)
(P) Martinez
Beltran
(A) Turner
(P) Jennifer
Carman,
Community
Development
Director
(A) Edith
Ramirez,
Assistant City
Manager
Regional
Government
Cities Association of Santa
Clara County Board
PO Box 1079
Los Gatos, CA 95031
Audin Leung, Board Clerk
[email protected]
(408) 766-9534
http://citiesassociation.org/abou
t-us.php
Promotes cooperation, represents
the mutual interest, and presents a
unified voice for the fifteen cities of
Santa Clara County; each city in
Santa Clara County appoints the
Mayor or a Council Member to the
Board of Directors; advocates for
positive action to enhance the
quality of life for the people of our
county.

Monthly 2nd
Thursday
7:00 pm
456 W. Olive Ave
Sunnyvale
(P) Turner
(A) Librers
Mayor Pro Tem is
usually the
Alternate
None, unless
Morgan Hill
serves as
President, then
City Manager

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Regional
Government
Cities Association of Santa
Clara County Board
City Selection Committee
PO Box 1079
Los Gatos, CA 95031
Audin Leung, Board Clerk
[email protected]
(408) 766-9534
http://citiesassociation.org/abou
t-us.php
The committee makes
recommendations on appointments
to regional and countywide
organizations.

Meets as needed
before the Cities
Association Board
Meeting
456 W. Olive Ave
Sunnyvale
(P) Turner
(A) Librers
Mayor Pro Tem is
usually the
Alternate
Regional
Government
Cities Association of Santa
Clara County Board
Legislative Action Committee
PO Box 1079
Los Gatos, CA 95031
Audin Leung, Board Clerk
[email protected]
(408) 766-9534
http://citiesassociation.org/abou
t-us.php
The committee provides basic
legislative updates to cities with little
or no legislative staff, organizes
emergency responses to urgent
issues, and enables the Cities
Association to advocate on issues of
mutual interest.

Meets as needed
before the Cities
Association Board
Meeting
456 W. Olive Ave
Sunnyvale
(P) Turner
(A) Librers
Mayor Pro Tem is
usually the
Alternate
Regional
Government
League of California Cities
Peninsula Division
Seth Miller
P.O. Box 5630
San Francisco, CA 94080
[email protected]
(415) 595-8629
http://www.cacities.org/Member
-Engagement/RegionalDivisions/Peninsula
Comprised of the 36 cities from San
Francisco to Gilroy, division
members work together to enhance
the quality of life in our communities,
our region, and our state.
4 meetings per
year:
special meetings
added as needed
(P) Martinez
Beltran
(A) Librers

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Transportation
Caltrain Local Policy Maker
Group
1250 San Carlos Avenue
San Carlos, CA 94070
(650) 508-6200
Casey Fromson
[email protected]
(650) 508-6493
http://www.caltrain.com/projects
plans/CaltrainModernization/Me
etings.html
Advisory group comprised of elected
officials and provides a formal venue
to facilitate local input and guidance
on the Caltrain Modernization
Program.

Monthly 4th
Thursday
5:30 pm
Edward J.

Bacciocco
Auditorium, Second
Floor
1250 San Carlos
Ave
(P) Turner
(A) Martinez
Beltran
Edith Ramirez,
Assistant City
Manager
Tiffany Brown,
Senior Planner
Transportation
Comprehensive County
Expressway Planning Study
Policy Advisory Board
Santa Clara County Roads and
Airports
101 Skyport Drive
San Jose, Ca 95110-1302
Ellen Talbo
[email protected]
(408) 573-2462
http://sccgov.iqm2.com/citizens/
default.aspx?
Provides an elected officials’ forum
for policy input to the Expressway
Plan 2040 – a long range plan for
the improvement and maintenance
of the eight County expressways
and the Santa Teresa-Hale Corridor.

All areas of need are included:
capacity and operational
improvements, signal operations,
high-occupancy vehicle (HOV)
lanes, bicycle, and pedestrian
improvements, finishing elements,
and ongoing operating and
maintenance needs and funding
strategy recommendations.

As needed
70 West Hedding
Street, 1st Floor
Board Chambers
(P) Turner
(A) Borgioli
Chris Ghione,
Public Services
Director

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Transportation
Santa Clara Valley
Transportation Authority (VTA)
Policy Advisory Committee
(PAC)
3331 North First Street,
Building B-1st Floor
San Jose, CA 95134-1927
Steven Flynn
Advisory Committee
Coordinator
Elaine Baltao, Board Secretary
[email protected]
(408) 321-5680
http://www.vta.org/getinvolved/advisorycommittee/policy-advisorycommittee-pac Advises the Authority Board of
Directors on policy matters relating
to transportation and congestion
management.

Board Member cannot serve on the
PAC.
(Note: participation is Statemandated)
Monthly, 2nd
Thursday
4:00 pm
VTA River Oaks
Campus
1331 N. 1st Street
Room B-104
San Jose
(P) Martinez
Beltran
(A) Borgioli
Chris Ghione,
Public Services
Director
Edith Ramirez,
Assistant City
Manager
Transportation
Santa Clara Valley
Transportation Authority (VTA)
MG - Group 4
Cities of Morgan Hill and Gilroy
advises the PAC (see above) on
transportation policy and funding
issues. Discuss transportation items
of mutual interest to the cities of
Morgan Hill and Gilroy
Tuesday before
each Thursday
Board meeting,
9:00 am
Morgan Hill City
Hall
17575 Peak Ave
(P) Martinez
Beltran
(A) Borgioli
Christina
Turner, City
Manager
Chris Ghione,
Public Services
Director
Edith Ramirez,
Assistant City
Manager

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Transportation
Santa Clara Valley
Transportation Authority (VTA)
Board of Directors
3331 North First Street
San Jose, CA 95134-1906
Elaine Baltao, Board Secretary
[email protected]
(408) 321-5680
http://www.vta.org/getinvolved/board-of-directors
Reviews issues relating to
transportation and congestion
management.

Monthly, 1st
Thursday
5:30 pm
County
Government Center
70 W. Hedding St.

San Jose
(P) Marie
Blankley (Gilroy)
(A) Turner
(Alternates
between MH and
Gilroy every two
years based on
VTA preference –
sometimes longer
for continuity)
Christina
Turner, City
Manager
Chris Ghione,
Public Services
Director
Edith Ramirez,
Assistant City
Manager
Water/Wastewater
Santa Clara Valley Water
Commission
5750 Almaden Expressway
San Jose, CA 95118-3686
(mailing address)
Nicole Merritt
[email protected]
(408) 630-3262
Advises the District on water supply,
legislative issues, and integrated
water resource management.
(Note: Most issues relate to
imported water; Morgan Hill is 100%
ground water)
Santa Clara Valley
Water District
Headquarters
Building Boardroom
5700 Almaden
Expressway,
San Jose
(P) Borgioli
(A) Martinez
Beltran
James Sylvain,
Deputy
Director for
Utilities
Services
Tanya
Carothers,
Environmental
Programs
Administrator

CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCIES
Category AGENCY NAME PURPOSE MEETS DELEGATES
(P=Primary)
(A=Alternate)
STAFF
REP/S
(If applicable)
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Water/Wastewater
South County Regional
Wastewater Authority (SCRWA)
Board Meeting
1500 Southside Drive
Gilroy, CA 95020
Kerry Edmonds
[email protected]
Secretary/Clerk of the Board
(408) 848-0480
http://www.ci.gilroy.ca.us/561/S
outh-County-RegionalWastewater-Authori
The South County Regional
Wastewater Authority established by
Joint Powers Agreement (Cities of
Gilroy & Morgan Hill) to provide
common authority relating to Joint
Wastewater Gilroy/Morgan Hill
Sewage Treatment Plant located in
Gilroy.
1st Wednesday of
the Month,
Quarterly
8:00 am
1500 Southside
Drive
Gilroy
(P1) Spring
(P2) Martinez
Beltran
(A) Librers
(A) Martinez
Beltran
(A) Borgioli
James Sylvain,
Deputy
Director for
Utilities
Services
Chris Ghione,
Public Services
Director
Christina
Turner, City
Manager
Water/Wastewater
Joint Water Resource
Committee
5750 Almaden Expressway
San Jose, CA 95118-3686
(mailing address)
Max Overland
[email protected]
Deputy Clerk
Michelle King
[email protected]
Clerk of the Board
(408) 630-2711
http://www.valleywater.org/Abo
ut/CitiesofGilroyMorganHill.asp
x
Advance South County Water
interests. Ensure the continued
utilization of recycled water in South
County and promote the expansion
of water reuse in the region and to
advance recycled water production,
distribution, and wholesaling in
South County.

Meetings follow
SCRWA Board
Meetings - 1st
Wednesday of the
Month, Quarterly
(at the request of
the committee)
1500 Southside
Drive
Gilroy
(P1) Spring
(P2) Martinez
Beltran
(A) Librers
(A) Martinez
Beltran
(A) Borgioli
The members
from the two cities
will also represent
the South County
Regional
Wastewater
Authority
(SCRWA).

Christina
Turner, City
Manager
Chris Ghione,
Public Services
Director
James Sylvain,
Deputy
Director for
Utilities
Services

LIST OF CITY COUNCIL ADJUNCT COMMITTEES
S:\Commission & Committees\Rosters\City Council Assignments to outside agencies\2020-2025\Updated Council Member Assignments to Committees 2025 5-27-

25.docx

Mayor Mark Turner
• Morgan Hill Chamber of Commerce Board (Mayor is ex-officio member) • VTA Mobility Partnership Committee
• Cities Association, City Selection Committee LAFCO Alternate • Cities Association, Public Safety Policy Committee
• LAFCO Board Alternate, Santa County City Selection Committee

Council Member Yvonne Martinez Beltran
• City Liaison to the Sister City Committee
• Peninsula Division Executive Board Secretary, Cal Cities • Transportation, Communication, and Public Works Policy Committee for Cal Cities • Housing, Economic, and Community Development Policy Committee for Cal Cities Council Member Marilyn Librers
• Transportation, Communication, and Public Works Policy Committee for Cal Cities

Outside Agency Primary 1 Primary 2 Alternate 1 Alternate 2 Alternate 3 1 SCC Library District JPA Turner ------ Vega ------ ------ 2 Silicon Valley Interoperability Authority Cline (Gilroy) ------ Turner ------ ------ 3 SCV Habitat Agency Governing Board Librers Vega Turner Iwanaga ------ 4 SCV Habitat Agency Implementation Board Librers Vega Turner Iwanaga ------ 5 Silicon Valley Clean Energy Martinez Beltran ------ Turner ------ ------ 7 SCVWD Elected Officials PL566 Vega Iwanaga Martinez Beltran ------ ------ 8 SCC Housing & Community Development
Advisory Committee Martinez Beltran ------ Librers ------ ------ 9 City/School Liaison Committee Turner Vega Librers Martinez Beltran ------ 10 South County Youth Task Force Turner Librers ------ ------ 11 ABAG Martinez Beltran ------ Turner ------ ------
12 Cities Association Turner ------ Librers ------ ------ 13 Cities Association - City Selection Committee Turner ------ Librers ------ ------ 14 Cities Association - Legislative Action Committee Turner ------ Librers ------ ------ 15 LOCC Peninsula Division Librers ------ Turner ------ ------ 16 Caltrain Policy Maker Group Librers ------ Martinez Beltran ------ ------ 17 Comprehensive County Expressway Planning
Policy Advisory Board Turner ------ Librers ------ ------ 18 VTA Policy Advisory Committee Martinez Beltran ------ Librers ------ ------ 19 VTA MG-Group 4 Turner ------ Martinez Beltran ------ ------ 20 VTA Board of Directors Turner ------ Bozzo (Gilroy) ------ ------ 21 Valley Water Commission Martinez Beltran ------ Vega ------ ------ 22 South County Regional Wastewater Authority Martinez Beltran Iwanaga Turner Librers Vega 23 Joint Water Resource Committee Martinez Beltran Iwanaga Turner Librers Vega Totals
Primary Alternate
Turner 9 8
Iwanaga 3 2
Librers 5 9
Martinez Beltran 7 4
Vega 4 4

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, May 21, 2025
A special meeting was held at 5:00 p.m. at the address below:

City Hall, Grand Conference Room
17575 Peak Avenue, Morgan Hill, CA 95037
The regular meeting convened at 6:00 p.m. at the address below:

Council Chamber Building, West Conference Room
17555 Peak Avenue, Morgan Hill, CA 95037

SPECIAL/REGULAR MEETING
A special meeting of the City Council was called at 5:00 p.m. for the purpose of conducting a closed session.

SPECIAL MEETING
5:00 p.m. Closed Session

CALL TO ORDER
Mayor Turner called the Special Meeting to order at 5:00 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

May 21, 2025
2 Council Member Librers attended via Zoom.

Council Member Martinez Beltran arrived at 6:00 p.m. She was not present for the closed session.

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

CLOSED SESSION
City Attorney Donald Larkin announced the closed session.

Conference with Labor Negotiators
Authority: Pursuant Government Code Section 54957.6
City Negotiators: Christina Turner, City Manager; Donald Larkin, City Attorney; Michael Horta, Human Resources Director; Dat Nguyen, Finance Director; Chris Ghione, Assistant City Manager, Public Services
Employee Organization: Morgan Hill Police Officers Association; AFSCME Local 101 Morgan Hill; Community Service Officers Association; Employees Covered under Management Resolution #21-050

OPPORTUNITY FOR PUBLIC COMMENT
Public comment opened at 5:01 p.m. There being no requests to speak, public comment closed.

ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 5:01 p.m.

REGULAR MEETING
The regular meeting was called to order at 6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

RECOGNITIONS
Eagle Scout - Sean Wilmot
Ellie Weston

May 21, 2025
3 PROCLAMATIONS
Affordable Housing Month
American Red Cross Month
Foster Care/Resource Parent Month
Public Works Week

PRESENTATIONS
YAC Presentation and Recognitions

CITY COUNCIL REPORTS
Mayor Turner shared updates on several community and regional initiatives:
• Transportation: VTA approved $1.5 million toward a $2 million study for express lanes on Highway 101 to State Route 25. A groundbreaking for the 101/25 interchange work takes place tomorrow at 10:30 a.m. at Garlic World. • Library News: The Santa Clara County Library District unveiled new early learning play spaces—Morgan Hill’s theme is “Trusty Trails.” • Healthy Morgan Hill: The kick-off took place May 10 during Sidewalk Saturdays.

The next event, Walk with a Doc, is June 7 at 9:00 a.m. at the Magical Bridge Playground.
• Community Engagement: A meeting was held on water and fire preparedness.

Mayor Turner is also working with youth at Park Place Apartments to convert ball fields to turf and is seeking sponsors.
• Parks and Trails: Plans are underway to plant trees along the West Little Llagas Creek Trail. The Morgan Hill Rotary Club approved $25,000 in funding, with work expected to begin in the fall.
• Tourism and Events: The mayor is discussing farm tours with the wine trolley operators and is coordinating a regional pickleball tournament with Gilroy and San Martin.

May 21, 2025
4 CITY MANAGER'S REPORT
City Manager Christina Turner shared the following updates:
• New Leadership: She introduced Morgan Hill’s new Fire Chief, Marcus Hernandez.
• Youth Engagement: The Police Department will host a Teen Police Academy June 10–13 for local teens (ages 14–17) to explore law enforcement careers and community engagement.
• PD Recruitment: The Police Department is hiring for multiple roles, including Explorers (16–21), Cadets (18–21), Multi-Service Officers (21+), and Police Officers.
• Affordable Housing: A Manufactured Home Purchase Program Workshop will be held Wednesday, May 28, from 6:00–7:00 p.m., in partnership with the County. It will cover eligibility, financing, and the application process. • Public Art Planning: A Public Art Master Plan Workshop is scheduled for Tuesday, June 3, from 6:00–7:00 p.m. Community input will help shape the future of public art in Morgan Hill.

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

OTHER REPORTS
Mayor Pro Tem Martinez Beltran shared recent activities and committee work:
• Attended Congresswoman Lofgren’s Town Hall (April 4) and the Housing & Community Development Advisory Committee meeting (May 4). • Participated in several SVCE meetings and noted they’ve secured a new building on El Camino Real.
• As Chair of the VTA PAC, she attended multiple meetings and is advocating to bring Viva Calle to Morgan Hill.
• Attended Peninsula Meetings, with a fundraiser planned at Top Golf in San Mateo.
• Participated in an ABAG meeting and the City Leaders Summit in Sacramento with Council Members Vega, Iwanaga, and Librers.
• Also attended a Cal Cities board meeting.

Council Member Librers reported:
• Joined the City Leaders Summit in Sacramento.
• Participated in the LPMG Local Policy Committee for Caltrain and completed related training.
• Personally funded a 4-day trip to Washington D.C. to meet with legislators about

May 21, 2025
5 EV mandates.
• Congratulated staff on the success of the Open Streets event.

PUBLIC COMMENT
Public comment opened at 6:49 p.m. The following people were called to speak:

John McKay
Eric Rodriguez
Sarah Miller
There being no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda, moving item 25 to the September 17, 2025, City Council Meeting.

RESULT: Passed
MOVER: Council Member Vega
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

OTHER BUSINESS

1. PROVIDE RECOMMENDATIONS TO THE MAYOR FOR THE
REAPPOINTMENT OF TWO (2) COMMISSIONERS ON THE PLANNING

COMMISSION AND INTERVIEW CANDIDATES TO FILL THE REMAINING ONE (1) SEAT ON THE PLANNING COMMISSION
Recommendation:

1. Recommend Reappointment of Commissioners James Wilson and Mohammad Habib with terms ending June 1, 2029;

2. Mayor shares the characteristics/traits that a successful applicant(s) would possess;

3. Conduct Interviews;

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

May 21, 2025
6 The Mayor and Council interviewed the following applicants:

Elizabeth Pulido Carillo (Zoom)
Mark Chilcott
Pierre Dacunha
Danielle Davenport
David Lovato
Mike Rizzo
The meeting recessed at 7:26 p.m. and reconvened at 7:39 p.m.

MOTION:

Ratifying the Mayor's reappointment of James Wilson and Mohammad Habib and appointing David Lovato to four-year terms on the Planning Commission.

RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
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

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 content calendar items 2, 4, and 6 through 19.

RESULT: Passed
MOVER: Council Member Vega
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

May 21, 2025
7 2. AUTHORIZE THE CITY MANAGER TO EXECUTE A PURCHASE

AGREEMENT FOR COMPUTER EQUIPMENT WITH SAVANT SOLUTIONS
Recommendation:

Authorize the City Manager to execute a purchase agreement for computer equipment with Savant Solutions with an amount not to exceed $150,000.

4. ADOPT A RESOLUTION APPROVING FY 2025-26 LIST OF STREET REHABILITATION PROJECTS FUNDED BY SENATE BILL (SB) 1: THE

ROAD REPAIR AND ACCOUNTABILITY ACT
Recommendation:

Adopt a resolution approving a list of street rehabilitation projects for Fiscal Year 2025-26 funded by SB1, the Road Repair and Accountability Act of 2017.

6. ADOPT A RESOLUTION DECLARING THE SUMMARY VACATION OF A PORTION OF A PUBLIC SERVICE AND LANDSCAPE EASEMENT AT 250 JARVIS DRIVE (APN 726-25-095)
Recommendation:

1. Adopt a Resolution declaring the Summary Vacation of a portion of a Public Service and Landscape Easement at 250 Jarvis Drive (APN 726- 25-095); and

2. Direct the City Clerk to file a certified copy of the Resolution in the Office of the Recorder of Santa Clara County.

7. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE AND

ADMINISTER A CONSULTANT AGREEMENT FOR DESIGN

PROFESSIONALS WITH KIMLEY-HORN & ASSOCIATES TO PROVIDE

CONCEPTUAL DESIGN OF ROUNDABOUT INTERSECTION

IMPROVEMENTS AT WATSONVILLE ROAD AND SUNNYSIDE

AVENUE/SANTA TERESA BOULEVARD
Recommendation:

Approve and authorize the City Manager to execute and administer a Consultant Agreement for Design Professionals with Kimley-Horn & Associates for the conceptual design of Roundabout Intersection Improvements at the intersection of Watsonville Road and Sunnyside Avenue/Santa Teresa Boulevard in the amount of $175,096.

8. APPROVE FINAL MAP FOR CROSSWINDS PHASE 2 - TRACT NO. 10652 Recommendation:

May 21, 2025
8 1. Approve the Final Map; and

2. Authorize the recordation of the Final Map.

9. APPROVE FIRST AMENDMENT TO THE AGREEMENT FOR COUNTYWIDE

HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM
Recommendation:

Authorize the City Manager to execute the first amendment to the Agreement for the Countywide Household Hazardous Waste Collection Program.

10. APPROVE GEOGRAPHIC INFORMATION SYSTEM (GIS) ENTERPRISE

SOFTWARE AGREEMENT WITH ESRI
Recommendation:

Authorize the City Manager to execute a three-year small government enterprise agreement with Esri for GIS software licensing for a total amount of $126,600.

11. APPROVE OBJECTIVE DEVELOPMENT STANDARD WAIVER REQUEST

FOR THE DIANA - VALLEY OAK RESIDENTIAL PROJECT
Recommendation:

Adopt a resolution approving the request for one waiver to the City's objective Residential Development Design and Development Standards for residential development.

12. APPROVE SANTA CLARA VALLEY HABITAT AGENCY (SCVHA) HABITAT

PLAN AMENDMENT AND AUTHORIZE GOVERNING BOARD TO APPROVE

FINAL AMENDMENT
Recommendation:

1. Receive information on proposed amendments to the Santa Clara Valley Habitat Plan;

2. Authorize the Santa Clara Valley Habitat Agency to proceed with the Habitat Plan amendment; and

3. Authorize the Santa Clara Valley Habitat Agency Governing Board to approve the final Habitat Plan amendment.

13. APPROVE THE APRIL 2, 2025 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

14. AWARD 2025 SIDEWALK REPAIRS PROJECT TO ESTATE DESIGN AND

May 21, 2025
9 CONSTRUCTION, INC.

Recommendation:

1. Award contract to Estate Design and Construction, Inc. in the amount of $160,000; and authorize the expenditure of construction contingency funds not to exceed $16,000 for a total authorization of $176,000; and

2. Authorize the City Manager to execute and administer the construction contract with Estate Design and Construction, Inc.

15. AWARD 2025 PAVEMENT REHABILITATION PROJECT TO JV LUCAS PAVING
Recommendation:

1. Approve 2025 Pavement Rehabilitation plans and specifications;

2. Award contract to JV Lucas Paving for the 2025 Pavement Rehabilitation Project in the amount of $2,010,148;

3. Authorize the expenditure of construction contingency not to exceed $301,522; and

4. Authorize the City Manager to execute and administer the construction contract with JV Lucas Paving.

16. AWARD EAST DUNNE SEWER UPSIZE PROJECT TO WESTROCK

ENGINEERING
Recommendation:

1. Approve the East Dunne Sewer Upsize Project Plans and Specifications;

2. Award contract to WestRock Engineering for the East Dunne Sewer Upsize Project in the amount of $1,177,409;

3. Authorize expenditure of construction contingency funds not to exceed $117,741;

4. Authorize the City Manager to execute and administer the construction contract with WestRock Engineering.

17. INITIATE ANNUAL ASSESSMENT PROCESS FOR LANDSCAPE
ASSESSMENT DISTRICT NUMBER 1
Recommendation:

Approval of the resolutions to:

1. Initiate the proceedings for the levy of assessments for Fiscal Year 2025- 26;

2. Approve the Engineer’s Annual Report and the proposed assessment levy; and

May 21, 2025
10 3. Declare the City Council’s intention to levy the assessments in the District and to set the Public Hearing date for June 18, 2025.

18. RATIFY CITY POSITION ON PENDING LEGISLATION
Recommendation:

Ratify the City’s position supporting pending legislation, Senate Bill 496 (Hurtado) Advanced Clean Fleets.

19. APPROVE PACIFIC GAS AND ELECTRIC COMPANY AGREEMENT TO PROVIDE ELECTRIC SERVICE TO THE BUTTERFIELD PARK PHASE 1

PROJECT
Recommendation:

1. Approve the Pacific Gas and Electric Agreement to provide electric service to the Butterfield Park Phase 1 Project.; and

2. Authorize the City Manager to administer and execute the Pacific Gas and Electric Company Agreement in the amount of $236,456.

ITEMS PULLED FOR DISCUSSION

3. ADOPT RESOLUTION ACCEPTING METROPOLITAN TRANSPORTATION COMMISSION’S (MTC'S) TRANSIT ORIENTED COMMUNITIES (TOC)

PLANNING AND IMPLEMENTATION PROJECTS GRANTS AND

AUTHORIZING THE CITY MANAGER TO EXECUTE GRANT RELATED

AGREEMENTS AND DOCUMENTS
Recommendation:

Adopt resolution:

1. Accepting a grant award from MTC for $650,000 for Morgan Hill Zoning Densities and Floor Area Ratio TOC Policy Compliance; $200,000 for Morgan Hill Housing TOC Policy Development; $125,000 for Morgan Hill Parking Management TOC Policy Compliance; and $175,000 for Morgan Hill Station Access and Circulation TOC Policy Compliance in response to the MTC’s Call for TOC Planning and Implementation Projects; and

2. Authorizing the City Manager to negotiate and execute the City of Morgan Hill MTC TOC Planning and Implementation Grants application, the MTC TOC Planning and Implementation Grants documents, and any amendments thereto on behalf of the City as required by MTC for receipt of the MTC TOC Planning and Implementation Grants.

Development Services Director Jennifer Carman provided a report.

May 21, 2025
11 Public comment opened at 7:47 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Vega
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

5. ADOPT A RESOLUTION TO REQUEST THE METROPOLITAN

TRANSPORTATION COMMISSION FOR THE ALLOCATION OF FISCAL
YEAR 2025-2026 TRANSPORTATION DEVELOPMENT ACT ARTICLE 3

PEDESTRIAN/BICYCLE PROJECT FUNDING
Recommendation:

1. Authorize staff to prepare and submit a Transportation Development Act Article 3 Pedestrian Improvement Project grant application to the Santa Clara Valley Transportation Authority for implementation of the Monterey Road High-Intensity Activated Crosswalk Beacon Project; and

2. Adopt a resolution to request the Metropolitan Transportation Commission for the allocation of fiscal year 2025-2026 Transportation Development Act Article 3 Pedestrian/Bicycle project funding.

Assistant Engineer Nolan Ugalde provided a report.

Public comment opened at 7:49 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
SECONDER: Council Member Iwanaga
AYES: Mayor Turner, Mayor Pro Tem Martinez Beltran, Council Member Iwanaga, Council Member Librers, Council Member Vega

May 21, 2025
12 NAYS: None
ABSTAIN: None
ABSENT: None

PUBLIC HEARINGS

20. APPROVE SOLID WASTE MANAGEMENT RATE ADJUSTMENT FOR 2025 Recommendation:

Adopt resolution approving an adjustment to the maximum allowable solid waste charges effective July 1, 2025.

Environmental Program Administrator Tanya Carothers provided a report and presentation. Mike Kelly with Recology answered questions.

Public comment opened at 7:55 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

21. INTRODUCE ORDINANCE TO UPDATE AND DESIGNATE FIRE HAZARD

SEVERITY ZONES
Recommendation:

1. Open/close public hearing;

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

3. Introduce Ordinance adopting updated fire hazard severity zones.

Development Services Director Jennifer Carman provided a report and presentation.

Public comment opened at 8:02 p.m. There being no requests to speak, public

May 21, 2025
13 comment closed.

MOTION:

Waiving the first and second readings of the ordinance.

RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
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
MOTION:

Introducing the ordinance.

RESULT: Passed
MOVER: Mayor Pro Tem Martinez Beltran
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

OTHER BUSINESS

22. INTRODUCE AN ORDINANCE OF THE CITY OF MORGAN HILL AMENDING SECTIONS 3.04.240 (CONSULTANT CONTRACTS) AND 3.04.250 (REQUEST FOR PROPOSALS) OF CHAPTER 3.04 (PURCHASING) OF TITLE 3
(REVENUE AND FINANCE) OF THE MUNICIPAL CODE OF THE CITY OF

MORGAN HILL REGARDING PROCUREMENT OF ARCHITECTURAL,

LANDSCAPE ARCHITECTURAL, ENGINEERING, ENVIRONMENTAL, LAND

SURVEYING, AND CONSTRUCTION PROJECT MANAGEMENT SERVICES

PURSUANT TO ARTICLE XXII OF THE CALIFORNIA CONSTITUTION AND GOVERNMENT CODE § 4529.10 ET SEQ.

Recommendation:

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

May 21, 2025
14 2. Introduce Ordinance amending Chapter 3.04 (Purchasing).

Assistant City Attorney Cynthia Hasson provided a report.

Public comment opened at 8:09 p.m. There being no requests to speak, public comment closed.

MOTION:

Waiving the first and second readings of the ordinance.

RESULT: Passed
MOVER: Council Member Iwanaga
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
MOTION:

Introducing the ordinance.

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

23. INTRODUCE ORDINANCE AMENDING CHAPTER 5.32 (MASSAGE

ESTABLISHMENTS AND MASSAGE PROFESSIONALS PERMIT
REQUIREMENTS) OF TITLE 5 (BUSINESS LICENSES GENERALLY)

MODIFYING THE PERMITTING PROCEDURE FOR MASSAGE THERAPY

ESTABLISHMENTS AND SERVICES
Recommendation:

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

2. Introduce Ordinance amending Chapter 5.32 (Massage Establishments

May 21, 2025
15 and Massage Professionals Permit Requirements).

Assistant City Attorney Cynthia Hasson provided a report.

Public comment opened at 8:18 p.m.

Bonnie Kelley was called to speak.

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

MOTION:

Waiving the first and second readings of the ordinance.

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
MOTION:

Introducing the ordinance.

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

24. RECEIVE MONTHLY BUDGET UPDATE; MARCH 2025 FINANCIAL AND INVESTMENT REPORTS; AND CITY MANAGER AUTHORITY REPORT
Recommendation:

Receive and file reports.

Finance Director Dat Nguyen provided a report and presentation.

Public comment opened at 8:30 p.m. There being no requests to speak, public

May 21, 2025
16 comment closed.

Report received.

25. APPROVE REQUEST TO RENAME NOB HILL TRAIL PARK AFTER

COMMUNITY MEMBER MARTY CHEEK OR PROVIDE ALTERNATIVE

DIRECTION
Recommendation:

Approve or do not approve the renaming of the Nob Hill Trail Park in recognition of Marty Cheek.

Item continued to the September 17, 2025 City Council Meeting.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Mayor Pro Tem Martinez Beltran requested a review of the City Council meeting schedule.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:34 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

9 CITY COUNCIL STAFF REPORT
MEETING DATE: June 4, 2025
PREPARED BY:

Yat Cho, Senior Project Manager
APPROVED BY: City Manager
AWARD OF 2025 MORGAN HILL WATER MAIN REPLACEMENT
PROJECT TO DPI, INC.

RECOMMENDATION(S)

1. Approve the 2025 Morgan Hill Water Main Replacement Project Plans and Specifications;

2. Award 2025 Morgan Hill Water Main Replacement Project to DPI, Inc. in the amount of $537,800;

3. Authorize the expenditure of contingency in the amount of $107,560; and

4. Authorize the City Manager to execute and administer the construction contract with DPI, Inc.

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

The 2021 Water System Master Plan recommends an ongoing program to replace aging and failing pipelines through the City's water system. This includes improvements to mitigate existing water system deficiencies, increasing hydraulic reliability and/or replacing existing pipelines due to poor condition. The City-owned water main at the Hale Avenue/Main Avenue Shopping Center has had multiple breaks over the last few years and the proposed water main installation connecting White Oak Court and Hilltop Court water main system will allow for the abandonment of a section of failing water main at Hilltop Court to Jackson Oaks Drive (Attachment 1 - Vicinity Map) Staff began working on this project in August 2024 to produce a set of project plans and

9 specifications to replace the aging water main at the Hale Avenue/Main Avenue Shopping Center and to install a new water main between White Oak Court and Hilltop Court. The project's scope of work involves the abandonment of the existing water main and the installation of approximately 600 linear feet of new 8" water main at the Hale Avenue/Main Avenue Shopping Center. Furthermore, approximately 200 linear feet of 8" water main will be installed between White Oak Court to Hilltop Court. Other miscellaneous work includes water main connections to the existing main, new water services to the existing water meters, new fire hydrants, abandoning the existing main, testing and chlorination and trench restoration, slurry seal, and striping.

The plans and specifications were completed in February 2025 and the project was advertised for bidding in March 2025. The bid opening was held on April 29, 2025 and eight (8) bids were received and are as listed below:

Estate Design and Construction, Inc. $465,700 * (rejected) DPI, Inc. $537,800
WestRock Engineering $538,750
Monterey Peninsula Engineering, Inc. $586,800
Golden Bay Construction, Inc. $605,602
Granite Rock Company $655,300
Con-Quest Contractors, Inc. $677,100
Pacific Underground Construction, Inc. $925,935
At the bid opening, Estate Design and Construction, Inc. was deemed the apparent low bidder. But after further review of their bid proposal, their bid was rejected due to the omission of the addendum acknowledgments. Therefore, their bid was rejected. The next low bidder, DPI, Inc.'s bid amount of $537,800 is approximately 8% above the engineer's estimate of $495,000. DPI, Inc. is an experienced public contractor with good experience in underground utility projects. Staff recommends the award of the contract to DPI, Inc. in the amount of $537,800. Due to possible unforeseen conditions, staff is requesting a twenty (20) percent contingency for this project ($107,560). This project is tentatively scheduled to start in July 2025 with a completion date of October 2025.

The plans and specifications are available for review on the City's webpage under the Government tab and Community Projects site:
https://www.morganhill.ca.gov/1436/Project-Plans-Specifications-and-Bid-Res COMMUNITY ENGAGEMENT:

Inform
This project is located within both business and residential neighborhoods. Staff will work with the contractor to minimize inconveniences to both residents and business owners and provide email and door notifications prior to any construction activities. City Staff has already met with the owner of the Shopping Center to coordinate work and is planning nighttime work, with most work occurring after 9pm and before 5am, so businesses are not impacted during their daytime business hours. Staff will provide regular updates with construction information regularly through Nextdoor and on the City's website.

9 ALTERNATIVE ACTIONS:

City Council may elect not to award this construction contract and request the project be re-bid. Staff does not recommend this alternative as competitive bids were received.

Rebidding the project is not likely to result in significant savings and it will delay the project approximately three to four months.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On December 15, 2021, the City Council adopted the Water Systems Master Plan.

FISCAL AND RESOURCE IMPACT:

The total authorization for the project would be $645,360, which includes a 20% contingency of $107,560. The project is sufficiently funded in the Fiscal Year 2024-25 Capital Improvement Program (CIP) budget under CIP Project WA6005, Water Pipeline Repair and Replacement, utilizing Water Capital Project Funds (653).

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 work for this project involves the repair, maintenance, or minor alteration of existing City facilities involving negligible or no expansion of the use of those facilities.

Public Services Department
CIP Engineering Division
2025 Morgan Hill Water Main
Replacement Project (1 of 2) O
280 0 280 560 840 140
Feet
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
G:\R-14\Proj\GIS\Agustin\2025waterproject.mxd
Hale Ave
Project Location
W Main Ave
W Main Ave
Del Monte Ave
Hale Ave
Crest Ave
Peak Ave

Public Services Department
CIP Engineering Division
2025 Morgan Hill Water Main
Replacement Project (2 of 2) O
820 0 820 1,640 2,460 410
Feet
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
G:\R-14\Proj\GIS\Agustin\2025waterproject.mxd
Hill Top
Ct
Sara Jane Ln
E Dunne Ave
E
Dunne Ave
Holiday Dr
White Oak Ct
Jackson Oaks Ct
Project Location

10 CITY COUNCIL STAFF REPORT
MEETING DATE: June 4, 2025
PREPARED BY:

Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager

RATIFY CITY POSITION ON PENDING LEGISLATION

RECOMMENDATION(S)
Ratify the City’s position opposing pending legislation, Senate Bill 16 (Blakespear) Homeless Housing, Assistance, and Prevention program: housing element.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Advocating for Local, Regional, and State Legislative Initiatives 2024-2025 Strategic Priorities
Affordable Housing and Homelessness
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
On May 14, 2025, the League of California Cities issued an "Action Alert" to Peninsula Division agencies, calling attention to several bills passing through the Appropriations Committee. After review, staff recommended the City take an "Oppose Unless Amended" position on SB 16 (Blakespear) Homeless Housing, Assistance, and Prevention program: housing element, before the next scheduled legislative hearing on

10 May 23, 2025 when it passed and has been ordered to a third reading.

BILL SUMMARY
SB 16 aims to improve coordination between cities and counties in addressing homelessness and to ensure more accountability and effective use of funds in transitioning people from the streets into housing. Specifically, SB 16 would require all but 14 cities to provide detailed reports on available homelessness resources, actions taken to connect individuals to those resources, and various data points. For example, SB 16 requires cities to share information about the number of people who become homeless after exiting institutional settings, including jails, prisons, and hospitals, and the number of people who become unhoused after moving into permanent housing.

While well-intentioned, this bill limits local control and could impose unfunded mandates and significant reporting burdens on Morgan Hill. For these reasons, on May 21, 2025, the City sent a letter in opposition of SB 16 (Attachment 2) via the California Legislature Position Portal. The full SB 16 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
May 21, 2025
The Honorable Aisha Wahab
Chair, Senate Housing Committee
1021 O Street, Room 3330
Sacramento, CA 95814
RE: SB 16 (Blakespear) Homeless Housing, Assistance, and Prevention Program: Housing Element
Notice of OPPOSE UNLESS AMENDED
Dear Senator Wahab,
The City of Morgan Hill respectfully opposes SB 16 (Blakespear) unless amended to address cities’ concerns.

Currently, SB 16 places additional reporting mandates on all but 14 cities, targeting cities that already do not receive direct state homelessness funding.

The state’s flagship homelessness grant program, the Homeless Housing, Assistance, and Prevention (HHAP) Grant program, allocates funding to all 58 counties, 44 continuums of care, and cities with populations over 300,000. This means that only 14 cities in California are receiving direct state homelessness funding through HHAP.

To receive HHAP funding, grantees must submit a regionally coordinated homelessness action plan to the Housing and Community Development Department that includes specific system performance measures. SB 16 would copy these system performance measures from the HHAP regional plans and impose them as a separate, unequal reporting requirement only on cities not receiving state funding - forcing them to track these metrics in their housing elements.

Specifically, SB 16 would require all but 14 cities to provide detailed reports on available homelessness resources, actions taken to connect individuals to those resources, and various data points. For example, SB 16 requires cities to share information about the number of people who become homeless after exiting institutional settings, including jails, prisons, and hospitals, and the number of people who become unhoused after moving into permanent housing.

There is a reason these system performance metrics are currently in the regional planning process – because gathering this data requires collaboration with counties, prisons, hospitals, VAs, and other stakeholders. These requirements create significant administrative burdens for communities such as ours, that already do not receive financial support. Morgan Hill lacks the infrastructure to collect the data required by SB 16, making compliance nearly impossible.

The City of Morgan Hill understands the goal of increasing transparency around the efforts of smaller cities to address the state’s homelessness crisis. Currently, cities that do not receive HHAP funding are encouraged to take part in HHAP regional planning but are not required to participate. The City of Morgan Hill is requesting amendments that require smaller cities to have a seat at the table for the regional planning process. This will

accomplish the same goal, allowing transparency on the same system metrics that SB 16 includes, but instead through the same regional process that is already being used by California’s largest cities.

Each year, the Legislature introduces bills that change the rules mid-stream, significantly complicating cities’ efforts to secure housing element certification. These multiyear planning efforts are already complex, timeconsuming, and expensive. SB 16 would add yet another layer of reporting requirements - through a nonreimbursable state mandate - placing a disproportionate burden on smaller cities. For many, the challenge of collecting and reporting this data could further jeopardize their ability to achieve a compliant housing element.

The City of Morgan Hill urges amendments to SB 16 that create consistency with the existing reporting process and do not unfairly target California’s small cities that will continue to be left out of direct state homelessness funding. For these reasons, the City of Morgan Hill has an oppose unless amended position on SB 16 (Blakespear).

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]

AMENDED IN SENATE APRIL 24, 2025
AMENDED IN SENATE MARCH 25, 2025
SENATE BILL No. 16
Introduced by Senator Blakespear
December 2, 2024
An act to amend Section 65583 of the Government Code, to add Article 3 (commencing with Section 50245) to Chapter 6.5 of Part 1 of Division 31 of the Health and Safety Code, and to amend Section 5963.02 8257.1 of the Welfare and Institutions Code, relating to homelessness.
legislative counsel’s digest
SB 16, as amended, Blakespear. Homeless Housing, Assistance, and Prevention program: housing element: Integrated Plan for Behavioral Health Services and Outcomes. unsheltered and chronic homelessness:
assessment and financing plan.
(1)  The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Existing law requires the housing element to consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. Existing law requires the housing element to include, among other things, an assessment of housing needs and an inventory of resources and constraints that are relevant to meeting these needs. Existing law establishes the Homeless Housing, Assistance, and Prevention program (HHAP) for the purpose of providing jurisdictions with grant funds to support regional

97

coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified.

For a local government that does not receive funding to address the population of individuals who are unhoused pursuant to certain state programs, pursuant to HHAP, this bill would require the assessment to include, among other things, specified data regarding the population of individuals who are unhoused the most up-to-date data on the number of individuals who are unhoused and a description of key actions that will be taken to reduce the number of individuals who are unhoused based on the data. By imposing additional duties on local governments, this bill would impose a state-mandated local program.
(2)  Existing law establishes the Homeless Housing, Assistance, and Prevention program (HHAP) for the purpose of providing jurisdictions with grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Existing law provides for the allocation of funding under the program among continuums of care, cities, counties, and tribes in 6 rounds, which are administered by the Department of Housing and Community Development.

Upon appropriation by the Legislature, this bill would establish Round 7 of the HHAP program. To be eligible for a Round 7 base program allocation, the bill would require specified jurisdictions to apply as part of a region and be signatory to a Round 7 regionally coordinated homeless action plan that has been approved by the department. The bill would require the plan to include an inventory of existing and planned city-operated shelters, the expected cost for those shelters, and a commitment by counties to contribute 50% of the expected costs, as specified.

On or before the end of the 2025–26 fiscal year, the bill would require a grantee to submit to the department an update on its regionally coordinated homeless action plan activities for department review, as specified. The bill would authorize a board of supervisors of a county to adopt a resolution determining that contributing 50% of expected costs is financially infeasible, as specified. If a county adopts the resolution, the bill would require the department to determine the contribution percentage of the county, as specified. On or before the end of the 2025–26 fiscal year, the bill would require cities to submit to the department the actual operating cost of city-operated shelters and require counties to reimburse cities for any excess contributions. The 97 SB 16 — 2 —

bill would authorize the department to withhold 50% of funds from a grantee until the department has approved the update.
(3)  Existing law, the Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, funds a system of county mental health plans for the provision of mental health services, as specified. Existing law authorizes the MHSA to be amended by a 2⁄3 vote of the Legislature if the amendments are consistent with and further the intent of the MHSA. Existing law authorizes the Legislature to add provisions to clarify procedures and terms of the MHSA by majority vote. Existing law, the Behavioral Health Services Act (BHSA), a legislative act amending the MHSA that was approved by the voters as Proposition 1 at the March 5, 2024, statewide primary election, recast the MHSA. The BHSA requires each county to prepare and submit an integrated plan, including sections for specified programs and services, such as services provided through federal grants or other county mental health and substance use disorder programs, and annual updates to the Behavioral Health Services Oversight and Accountability Commission and the State Department of Health Care Services.

This bill would additionally require the integrated plan to include a section regarding programs and services relating to Round 7 of the HHAP program, as prescribed.
(2)  Existing law requires the Governor to create the Interagency Council on Homelessness to, among other things, identify mainstream resources, benefits, and services that can be accessed to prevent and end homelessness in California, to make policy and procedural recommendations to legislators and other governmental entities, and to serve as a statewide facilitator, coordinator, and policy development resource on ending homelessness in California. Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing.

Existing law states the intent of the Legislature to obtain trustworthy information to connect funding allocated to prevent and end homelessness with established sheltering and housing resources and to provide state agencies with accurate information to allow for more accurate forecasting to target future investments. For purposes of advancing those goals, existing law requires the council, upon appropriation, to conduct, or contract with an entity to conduct, a statewide homelessness assessment to identify certain programs and to 97 — 3 — SB 16

collect and analyze data, as specified. Existing law requires the council to submit an interim report and a final report to certain legislative committees by July 1, 2022, and December 31, 2022, respectively.

This bill would require the Department of Housing and Community Development to complete, or contract to complete, an assessment and financing plan to, in coordination with local jurisdictions, address unsheltered and chronic homelessness in the state over a 10-year period.

The bill would require the department to report to the Legislature on the assessment and financing plan by December 31, 2027. The bill would require the assessment to include specified information, including, among others, the number of people experiencing unsheltered homelessness and the number of people expected to fall into unsheltered homelessness over the next 10 years based on recent data on rates of Californians becoming unsheltered. The bill would require the department or contractor to, in completing the assessment and financing plan, consult with specified individuals and entities, including, among others, individuals with lived experience of homelessness, representatives of cities and counties, and specified working groups.

By requiring the department or contractor to consult with local entities, this bill would impose a state-mandated local program.
(4)
(3)  The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (5)
(4)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:
line 1 SECTION 1. (a)  The Legislature finds and declares all of the line 2 following:
97 SB 16 — 4 —

line 1 (1)  California has the largest number of residents who are line 2 unhoused, with over 123,000 people who are unhoused on a given line 3 night, which is almost 30 percent of the nation’s number, according line 4 to the United States Department of Housing and Urban line 5 Development’s Annual Homelessness Assessment Report. line 6 (2)  The state’s crisis of individuals who are unhoused is the line 7 product of the state’s affordable housing shortage. line 8 (3)  Innovative, cost-effective models for interim housing, which line 9 provide noncongregate spaces for people to live and sleep in safety, line 10 have been implemented in jurisdictions across the state. line 11 (4)  These interim housing models are a scalable, timely solution line 12 to the population of individuals who are unhoused while the state line 13 builds sufficient permanent affordable housing to address the state’s line 14 affordable housing shortage.
line 15 (5)  California’s counties manage and operate regional social line 16 service systems that deliver vital safety net programs and benefits line 17 to Californians in need.
line 18 (b)  Therefore, it is the intent of the Legislature that this act line 19 promotes collaboration between cities and counties on the operation line 20 of facilities serving individuals who are unhoused and further line 21 integrates those facilities into regional social service systems. line 22 SEC. 2.
line 23 SECTION 1. Section 65583 of the Government Code is line 24 amended to read:
line 25 65583. The housing element shall consist of an identification line 26 and analysis of existing and projected housing needs and a line 27 statement of goals, policies, quantified objectives, financial line 28 resources, and scheduled programs for the preservation, line 29 improvement, and development of housing. The housing element line 30 shall identify adequate sites for housing, including rental housing, line 31 factory-built housing, mobilehomes, and emergency shelters, and line 32 shall make adequate provision for the existing and projected needs line 33 of all economic segments of the community. The housing element line 34 shall contain all of the following:
line 35 (a)  An assessment of housing needs and an inventory of line 36 resources and constraints that are relevant to the meeting of these line 37 needs. The assessment and inventory shall include all of the line 38 following:
line 39 (1)  An analysis of population and employment trends and line 40 documentation of projections and a quantification of the locality’s 97 — 5 — SB 16

line 1 existing and projected housing needs for all income levels. These line 2 existing and projected needs shall include the locality’s share of line 3 the regional housing need in accordance with Section 65584. line 4 (2)  An analysis and documentation of household characteristics, line 5 including level of payment compared to ability to pay, housing line 6 characteristics, including overcrowding, and housing stock line 7 condition.
line 8 (3)  An inventory of land suitable and available for residential line 9 development, including vacant sites and sites having realistic and line 10 demonstrated potential for redevelopment during the planning line 11 period to meet the locality’s housing need for a designated income line 12 level, and an analysis of the relationship of zoning and public line 13 facilities and services to these sites, and an analysis of the line 14 relationship of the sites identified in the land inventory to the line 15 jurisdiction’s duty to affirmatively further fair housing. line 16 (4)  (A)  The identification of one or more zoning designations line 17 that allow residential uses, including mixed uses, where emergency line 18 shelters are allowed as a permitted use without a conditional use line 19 or other discretionary permit and that are suitable for residential line 20 uses. The identified zoning designations shall include sufficient line 21 sites meeting the requirements of subparagraph (H) with sufficient line 22 capacity, as described in subparagraph (I), to accommodate the line 23 need for emergency shelter identified in paragraph (7), except that line 24 each local government shall identify a zoning designation or line 25 designations that can accommodate at least one year-round line 26 emergency shelter. If the local government cannot identify a zoning line 27 designation or designations with sufficient capacity, the local line 28 government shall include a program to amend its zoning ordinance line 29 to meet the requirements of this paragraph within one year of the line 30 adoption of the housing element. The local government may line 31 identify additional zoning designations where emergency shelters line 32 are permitted with a conditional use permit. The local government line 33 shall also demonstrate that existing or proposed permit processing, line 34 development, and management standards that apply to emergency line 35 shelters are objective and encourage and facilitate the development line 36 of, or conversion to, emergency shelters.
line 37 (B)  Emergency shelters shall only be subject to the following line 38 written, objective standards:
line 39 (i)  The maximum number of beds or persons permitted to be line 40 served nightly by the facility.
97 SB 16 — 6 —

line 1 (ii)  Sufficient parking to accommodate all staff working in the line 2 emergency shelter, provided that the standards do not require more line 3 parking for emergency shelters than other residential or commercial line 4 uses within the same zone.
line 5 (iii)  The size and location of exterior and interior onsite waiting line 6 and client intake areas.
line 7 (iv)  The provision of onsite management.
line 8 (v)  The proximity to other emergency shelters, provided that line 9 emergency shelters are not required to be more than 300 feet apart. line 10 (vi)  The length of stay.
line 11 (vii)  Lighting.
line 12 (viii)  Security during hours that the emergency shelter is in line 13 operation.
line 14 (C)  For purposes of this paragraph, “emergency shelter” shall line 15 include other interim interventions, including, but not limited to, line 16 a navigation center, bridge housing, and respite or recuperative line 17 care.
line 18 (D)  The permit processing, development, and management line 19 standards applied under this paragraph shall not be deemed to be line 20 discretionary acts within the meaning of the California line 21 Environmental Quality Act (Division 13 (commencing with Section line 22 21000) of the Public Resources Code).
line 23 (E)  If a local government has adopted written, objective line 24 standards pursuant to subparagraph (B), the local government shall line 25 include an analysis of the standards in the analysis of constraints line 26 pursuant to paragraph (5).
line 27 (F)  A local government that can demonstrate, to the satisfaction line 28 of the department, the existence of one or more emergency shelters line 29 either within its jurisdiction or pursuant to a multijurisdictional line 30 agreement that can accommodate that jurisdiction’s need and the line 31 needs of the other jurisdictions that are a part of the agreement for line 32 emergency shelter identified in paragraph (7) may comply with line 33 the zoning requirements of subparagraph (A) by identifying a line 34 zoning designation where new emergency shelters are allowed line 35 with a conditional use permit.
line 36 (G)  A local government with an existing ordinance or ordinances line 37 that comply with this paragraph shall not be required to take line 38 additional action to identify zoning designations for emergency line 39 shelters. The housing element must only describe how existing 97 — 7 — SB 16

line 1 ordinances, policies, and standards are consistent with the line 2 requirements of this paragraph.
line 3 (H)  The zoning designation or designations where emergency line 4 shelters are allowed, as described in subparagraph (A), shall include line 5 sites that meet at least one of the following standards:
line 6 (i)  Vacant sites zoned for residential use.
line 7 (ii)  Vacant sites zoned for nonresidential use that allow line 8 residential development, if the local government can demonstrate line 9 how the sites with this zoning designation that are being used to line 10 satisfy the requirements of paragraph (1) are located near amenities line 11 and services that serve people experiencing homelessness, which line 12 may include health care, transportation, retail, employment, and line 13 social services, or that the local government will provide free line 14 transportation to services or offer services onsite. line 15 (iii)  Nonvacant sites zoned for residential use or for line 16 nonresidential use that allow residential development that are line 17 suitable for use as a shelter in the current planning period, or which line 18 can be redeveloped for use as a shelter in the current planning line 19 period. A nonvacant site with an existing use shall be presumed line 20 to impede emergency shelter development absent an analysis based line 21 on substantial evidence that the use is likely to be discontinued line 22 during the planning period. The analysis shall consider current line 23 market demand for the current uses, market conditions, and line 24 incentives or standards to encourage shelter development. line 25 (I)  The zoning designation or designations shall have sufficient line 26 sites meeting the requirements of subparagraph (H) to line 27 accommodate the need for shelters identified pursuant to paragraph line 28 (7). The number of people experiencing homelessness that can be line 29 accommodated on any site shall be demonstrated by dividing the line 30 square footage of the site by a minimum of 200 square feet per line 31 person, unless the locality can demonstrate that one or more line 32 shelters were developed on sites that have fewer square feet per line 33 person during the prior planning period or the locality provides line 34 similar evidence to the department demonstrating that the site can line 35 accommodate more people experiencing homelessness. Any line 36 standard applied pursuant to this subparagraph is intended only line 37 for calculating site capacity pursuant to this section, and shall not line 38 be construed as establishing a development standard applicable to line 39 the siting, development, or approval of a shelter. 97 SB 16 — 8 —

line 1 (J)  Notwithstanding subparagraph (H), a local government may line 2 accommodate the need for emergency shelters identified pursuant line 3 to paragraph (7) on sites owned by the local government if it line 4 demonstrates with substantial evidence that the sites will be made line 5 available for emergency shelter during the planning period, they line 6 are suitable for residential use, and the sites are located near line 7 amenities and services that serve people experiencing line 8 homelessness, which may include health care, transportation, retail, line 9 employment, and social services, or that the local government will line 10 provide free transportation to services or offer services onsite. line 11 (5)  An analysis of potential and actual governmental constraints line 12 upon the maintenance, improvement, or development of housing line 13 for all income levels, including the types of housing identified in line 14 paragraph (1) of subdivision (c), and for persons with disabilities line 15 as identified in the analysis pursuant to paragraph (7), including line 16 land use controls, building codes and their enforcement, site line 17 improvements, fees, and other exactions required of developers, line 18 local processing and permit procedures, historic preservation line 19 practices and policies and an assessment of how existing and line 20 proposed historic designations affect the locality’s ability to meet line 21 its share of the housing need pursuant to paragraph (1), and any line 22 locally adopted ordinances that directly impact the cost and supply line 23 of residential development. The analysis shall also demonstrate line 24 local efforts to remove governmental constraints that hinder the line 25 locality from meeting its share of the regional housing need in line 26 accordance with Section 65584 and from meeting the need for line 27 housing for persons with disabilities, supportive housing, line 28 transitional housing, and emergency shelters identified pursuant line 29 to paragraph (7).
line 30 (6)  An analysis of potential and actual nongovernmental line 31 constraints upon the maintenance, improvement, or development line 32 of housing for all income levels, including the availability of line 33 financing, the price of land, the cost of construction, the requests line 34 to develop housing at densities below those anticipated in the line 35 analysis required by subdivision (c) of Section 65583.2, and the line 36 length of time between receiving approval for a housing line 37 development and submittal of an application for building permits line 38 for that housing development that hinder the construction of a line 39 locality’s share of the regional housing need in accordance with line 40 Section 65584. The analysis shall also demonstrate local efforts 97 — 9 — SB 16

line 1 to remove nongovernmental constraints that create a gap between line 2 the locality’s planning for the development of housing for all line 3 income levels and the construction of that housing. line 4 (7)  (A)  An analysis of any special housing needs, such as those line 5 of the elderly; persons with disabilities, including a developmental line 6 disability, as defined in Section 4512 of the Welfare and line 7 Institutions Code; extremely low income households; large line 8 families; farmworkers; families with female heads of households; line 9 and families and persons in need of emergency shelter. The need line 10 for emergency shelter shall be assessed based on the capacity line 11 necessary to accommodate the most recent homeless point-in-time line 12 count conducted before the start of the planning period, the need line 13 for emergency shelter based on number of beds available on a line 14 year-round and seasonal basis, the number of shelter beds that go line 15 unused on an average monthly basis within a one-year period, and line 16 the percentage of those in emergency shelters that move to line 17 permanent housing solutions. The need for emergency shelter may line 18 be reduced by the number of supportive housing units that are line 19 identified in an adopted 10-year plan to end chronic homelessness line 20 and that are either vacant or for which funding has been identified line 21 to allow construction during the planning period. An analysis of line 22 special housing needs by a city or county may include an analysis line 23 of the need for frequent user coordinated care housing services. line 24 (B)  For the seventh and subsequent revisions of the housing line 25 element, the analysis required in subparagraph (A) shall also line 26 include an analysis of the housing needs of acutely and extremely line 27 low income households.
line 28 (8)  An analysis of opportunities for energy conservation with line 29 respect to residential development. Cities and counties are line 30 encouraged to include weatherization and energy efficiency line 31 improvements as part of publicly subsidized housing rehabilitation line 32 projects. This may include energy efficiency measures that line 33 encompass the building envelope, its heating and cooling systems, line 34 and its electrical system.
line 35 (9)  An analysis of existing assisted housing developments that line 36 are eligible to change from low-income housing uses during the line 37 next 10 years due to termination of subsidy contracts, mortgage line 38 prepayment, or expiration of restrictions on use. “Assisted housing line 39 developments,” for the purpose of this section, shall mean line 40 multifamily rental housing that receives governmental assistance 97 SB 16 — 10 —

line 1 under federal programs listed in subdivision (a) of Section line 2 65863.10, state and local multifamily revenue bond programs, line 3 local redevelopment programs, the federal Community line 4 Development Block Grant Program, or local in-lieu fees. “Assisted line 5 housing developments” shall also include multifamily rental units line 6 that were developed pursuant to a local inclusionary housing line 7 program or used to qualify for a density bonus pursuant to Section line 8 65916.
line 9 (A)  The analysis shall include a listing of each development by line 10 project name and address, the type of governmental assistance line 11 received, the earliest possible date of change from low-income line 12 use, and the total number of elderly and nonelderly units that could line 13 be lost from the locality’s low-income housing stock in each year line 14 during the 10-year period. For purposes of state and federally line 15 funded projects, the analysis required by this subparagraph need line 16 only contain information available on a statewide basis. line 17 (B)  The analysis shall estimate the total cost of producing new line 18 rental housing that is comparable in size and rent levels, to replace line 19 the units that could change from low-income use, and an estimated line 20 cost of preserving the assisted housing developments. This cost line 21 analysis for replacement housing may be done aggregately for line 22 each five-year period and does not have to contain a line 23 project-by-project cost estimate.
line 24 (C)  The analysis shall identify public and private nonprofit line 25 corporations known to the local government that have legal and line 26 managerial capacity to acquire and manage these housing line 27 developments.
line 28 (D)  The analysis shall identify and consider the use of all federal, line 29 state, and local financing and subsidy programs that can be used line 30 to preserve, for lower income households, the assisted housing line 31 developments, identified in this paragraph, including, but not line 32 limited to, federal Community Development Block Grant Program line 33 funds, tax increment funds received by a redevelopment agency line 34 of the community, and administrative fees received by a housing line 35 authority operating within the community. In considering the use line 36 of these financing and subsidy programs, the analysis shall identify line 37 the amounts of funds under each available program that have not line 38 been legally obligated for other purposes and that could be line 39 available for use in preserving assisted housing developments. 97 — 11 — SB 16

line 1 (10)  For a local government that does not receive funding line 2 pursuant to the Homeless Housing, Assistance, and Prevention line 3 program (Chapter 6 (commencing with Section 50216)) or the line 4 Regionally Coordinated Homelessness Housing, Assistance, and line 5 Prevention Program and (Chapter 6.5 (commencing with Section line 6 50230) of Part 1 of Division 31 of the Health and Safety Code), line 7 all of the following:
line 8 (A)  An itemized list of the specific federal, state, and local line 9 resources available to assist individuals who are unhoused, line 10 including interim and permanent housing, and mental and line 11 behavioral health services.
line 12 (B)  A description of the actions taken by the local government line 13 to connect individuals who are unhoused to the resources described line 14 in subparagraph (A).
line 15 (C)  (i)  Most up-to-date data on the population number of line 16 individuals who are unhoused, which shall include all of the line 17 following: unhoused.
line 18 (I)  The number of individuals who are unhoused. line 19 (II)  The average length of time individuals are unhoused. line 20 (III)  The number and percentage of individuals who are line 21 unhoused that moved into permanent housing.
line 22 (IV)  The number of people who become unhoused after moving line 23 into permanent housing.
line 24 (V)  The number of people who became unhoused for the first line 25 time.
line 26 (VI)  The number of people who become unhoused after exiting line 27 institutional settings, including, but not limited to, jails, prisons, line 28 and hospitals.
line 29 (ii)  The data specified in clause (i) shall be disaggregated by line 30 age, racial, and ethnic demographics.
line 31 (D)  A description of key actions that will be taken to reduce the line 32 number of individuals who are unhoused based on the data points line 33 described in subparagraph (C).
line 34 (E)  A description of key actions that will be taken to prevent line 35 individuals from becoming unhoused.
line 36 (E)
line 37 (F)  Actions taken to coordinate with cities in the region, counties line 38 or council of governments, and identification and analysis of the line 39 specific roles and responsibilities regarding outreach and site line 40 coordination, siting and use of available land, the development of 97 SB 16 — 12 —

line 1 shelter, interim, and permanent housing options, and the line 2 coordination and connection to the delivery of services to line 3 individuals who are unhoused, or at risk of becoming unhoused, line 4 including specifying roles and coordination plans in relation to the line 5 Mental Health Services Act or Behavioral Health Services Act, line 6 within the region. region and engagement in the regionally line 7 coordinated homelessness action plan required pursuant to the line 8 Homeless Housing, Assistance, and Prevention program (Chapter line 9 6 (commencing with Section 50216) and Chapter 6.5 (commencing line 10 with Section 50230) of Part 1 of Division 31 of the Health and line 11 Safety Code).
line 12 (F)  Identify programs that prevent individuals from becoming line 13 unhoused and other actions taken to prevent vulnerable populations line 14 from becoming unhoused, such as current and former foster youth, line 15 veterans, persons exiting the judicial system, and persons with line 16 special housing needs.
line 17 (G)  Actions taken to reduce barriers and expedite the approval line 18 processes for approving interim and permanent housing options. line 19 (b)  (1)  A statement of the community’s goals, quantified line 20 objectives, and policies relative to affirmatively furthering fair line 21 housing and to the maintenance, preservation, improvement, and line 22 development of housing.
line 23 (2)  It is recognized that the total housing needs identified line 24 pursuant to subdivision (a) may exceed available resources and line 25 the community’s ability to satisfy this need within the content of line 26 the general plan requirements outlined in Article 5 (commencing line 27 with Section 65300). Under these circumstances, the quantified line 28 objectives need not be identical to the total housing needs. The line 29 quantified objectives shall establish the maximum number of line 30 housing units by income category that can be constructed, line 31 rehabilitated, and conserved over a five-year time period. line 32 (c)  A program that sets forth a schedule of actions during the line 33 planning period, each with a timeline for implementation, that may line 34 recognize that certain programs are ongoing, such that there will line 35 be beneficial impacts of the programs within the planning period, line 36 that the local government is undertaking or intends to undertake line 37 to implement the policies and achieve the goals and objectives of line 38 the housing element through the administration of land use and line 39 development controls, the provision of regulatory concessions and line 40 incentives, the utilization of appropriate federal and state financing 97 — 13 — SB 16

line 1 and subsidy programs when available, and the utilization of moneys line 2 in a low- and moderate-income housing fund of an agency if the line 3 locality has established a redevelopment project area pursuant to line 4 the Community Redevelopment Law (Division 24 (commencing line 5 with Section 33000) of the Health and Safety Code). In order to line 6 make adequate provision for the housing needs of all economic line 7 segments of the community, the program shall do all of the line 8 following:
line 9 (1)  Identify actions that will be taken to make sites available line 10 during the planning period with appropriate zoning and line 11 development standards and with services and facilities to line 12 accommodate that portion of the city’s or county’s share of the line 13 regional housing need for all income levels that could not be line 14 accommodated on sites identified in the inventory completed line 15 pursuant to paragraph (3) of subdivision (a) without rezoning, and line 16 to comply with the requirements of Section 65584.09. Sites shall line 17 be identified as needed to affirmatively further fair housing and line 18 to facilitate and encourage the development of a variety of types line 19 of housing for all income levels, including multifamily rental line 20 housing, factory-built housing, mobilehomes, housing for line 21 agricultural employees, supportive housing, single-room occupancy line 22 units, emergency shelters, and transitional housing. line 23 (A)  Where the inventory of sites, pursuant to paragraph (3) of line 24 subdivision (a), does not identify adequate sites to accommodate line 25 the need for groups of all household income levels pursuant to line 26 Section 65584, a program for rezoning of those sites, subject to line 27 the following deadlines:
line 28 (i)  For the adoption of the sixth revision of the housing element, line 29 jurisdictions with an eight-year housing element planning period line 30 pursuant to Section 65588, including adoption of minimum density line 31 and development standards or, for a jurisdiction in the coastal zone, line 32 any necessary local coastal program amendments related to land line 33 use designations, changes in intensity of land use, zoning line 34 ordinances, or zoning district maps, consistent with Sections 30512, line 35 30512.2, 30513, and 30514 of the Public Resources Code, shall line 36 be completed no later than three years after either the date the line 37 housing element is adopted pursuant to subdivision (f) of Section line 38 65585 or the date that is 90 days after receipt of comments from line 39 the department pursuant to subdivision (b) of Section 65585, line 40 whichever is earlier, unless the deadline is extended pursuant to 97 SB 16 — 14 —

line 1 subdivision (f). Notwithstanding the foregoing, for a local line 2 government that fails to adopt a housing element that the line 3 department has found to be in substantial compliance with this line 4 article within 120 days of the statutory deadline in Section 65588 line 5 for adoption of the housing element, rezoning of those sites, line 6 including adoption of minimum density and development standards line 7 or, for a jurisdiction in the coastal zone, any necessary local coastal line 8 program amendments related to land use designations, changes in line 9 intensity of land use, zoning ordinances, or zoning district maps, line 10 consistent with Sections 30512, 30512.2, 30513, and 30514 of the line 11 Public Resources Code, shall be completed no later than one year line 12 from the statutory deadline in Section 65588 for adoption of the line 13 housing element.
line 14 (ii)  For adoption of the seventh and all subsequent revisions of line 15 the housing element, rezonings shall be completed no later than line 16 one year from the statutory deadline in Section 65588 for adoption line 17 of the housing element.
line 18 (iii)  Notwithstanding clause (ii), for the adoption of the seventh line 19 and all subsequent revisions of the housing element, rezonings line 20 shall be completed no later than three years and 90 days after the line 21 statutory deadline in Section 65588 for adoption of the housing line 22 element, unless the deadline is extended pursuant to subdivision line 23 (f). This clause shall apply only if the local government complies line 24 with all of the following:
line 25 (I)  The local government submits a draft element or draft line 26 amendment to the department for review pursuant to paragraph line 27 (1) of subdivision (b) of Section 65585 at least 90 days before the line 28 statutory deadline established in Section 65588 for adoption of the line 29 housing element.
line 30 (II)  The local government receives from the department findings line 31 that the draft element or draft amendment substantially complies line 32 with this article pursuant to paragraph (3) of subdivision (b) of line 33 Section 65585 on or before the statutory deadline set forth in line 34 Section 65588 for adoption of the housing element. line 35 (III)  The local government adopts the draft element or draft line 36 amendment that the department found to substantially comply with line 37 this article no later than 120 days after the statutory deadline set line 38 forth in Section 65588.
line 39 (B)  Where the inventory of sites, pursuant to paragraph (3) of line 40 subdivision (a), does not identify adequate sites to accommodate 97 — 15 — SB 16

line 1 the need for groups of all household income levels pursuant to line 2 Section 65584, the program shall identify sites that can be line 3 developed for housing within the planning period pursuant to line 4 subdivision (h) of Section 65583.2. The identification of sites shall line 5 include all components specified in Section 65583.2. line 6 (C)  Where the inventory of sites pursuant to paragraph (3) of line 7 subdivision (a) does not identify adequate sites to accommodate line 8 the need for farmworker housing, the program shall provide for line 9 sufficient sites to meet the need with zoning that permits line 10 farmworker housing use by right, including density and line 11 development standards that could accommodate and facilitate the line 12 feasibility of the development of farmworker housing for low- and line 13 very low income households.
line 14 (2)  (A)  Assist in the development of adequate housing to meet line 15 the needs of extremely low, very low, low-, and moderate-income line 16 households.
line 17 (B)  For the seventh and subsequent revisions of the housing line 18 element, the program shall also assist in the development of line 19 adequate housing to meet the needs of acutely low income line 20 households.
line 21 (3)  Address and, where appropriate and legally possible, remove line 22 governmental and nongovernmental constraints to the maintenance, line 23 improvement, and development of housing, including housing for line 24 all income levels and housing for persons with disabilities. The line 25 program shall remove constraints to, and provide reasonable line 26 accommodations for housing designed for, intended for occupancy line 27 by, or with supportive services for, persons with disabilities. line 28 Transitional housing and supportive housing shall be considered line 29 a residential use of property and shall be subject only to those line 30 restrictions that apply to other residential dwellings of the same line 31 type in the same zone. Supportive housing, as defined in Section line 32 65650, shall be a use by right in all zones where multifamily and line 33 mixed uses are permitted, as provided in Article 11 (commencing line 34 with Section 65650).
line 35 (4)  Conserve and improve the condition of the existing line 36 affordable housing stock, which may include addressing ways to line 37 mitigate the loss of dwelling units demolished by public or private line 38 action.
line 39 (5)  Promote and affirmatively further fair housing opportunities line 40 and promote housing throughout the community or communities 97 SB 16 — 16 —

line 1 for all persons regardless of race, religion, sex, marital status, line 2 ancestry, national origin, color, familial status, or disability, and line 3 other characteristics protected by the California Fair Employment line 4 and Housing Act (Part 2.8 (commencing with Section 12900) of line 5 Division 3 of Title 2), Section 65008, and any other state and line 6 federal fair housing and planning law.
line 7 (6)  Preserve for lower income households the assisted housing line 8 developments identified pursuant to paragraph (9) of subdivision line 9 (a). The program for preservation of the assisted housing line 10 developments shall utilize, to the extent necessary, all available line 11 federal, state, and local financing and subsidy programs identified line 12 in paragraph (9) of subdivision (a), except where a community has line 13 other urgent needs for which alternative funding sources are not line 14 available. The program may include strategies that involve local line 15 regulation and technical assistance.
line 16 (7)  Develop a plan that incentivizes and promotes the creation line 17 of accessory dwelling units that can be offered at affordable rent, line 18 as defined in Section 50053 of the Health and Safety Code, for line 19 very low, low-, or moderate-income households. For purposes of line 20 this paragraph, “accessory dwelling units” has the same meaning line 21 as “accessory dwelling unit” as defined in subdivision (a) of line 22 Section 66313.
line 23 (8)  Include an identification of the agencies and officials line 24 responsible for the implementation of the various actions and the line 25 means by which consistency will be achieved with other general line 26 plan elements and community goals.
line 27 (9)  Include a diligent effort by the local government to achieve line 28 public participation of all economic segments of the community line 29 in the development of the housing element, and the program shall line 30 describe this effort.
line 31 (10)  (A)  Affirmatively further fair housing in accordance with line 32 Chapter 15 (commencing with Section 8899.50) of Division 1 of line 33 Title 2. The program shall include an assessment of fair housing line 34 in the jurisdiction that shall include all of the following line 35 components:
line 36 (i)  A summary of fair housing issues in the jurisdiction and an line 37 assessment of the jurisdiction’s fair housing enforcement and fair line 38 housing outreach capacity.
line 39 (ii)  An analysis of available federal, state, and local data and line 40 knowledge to identify integration and segregation patterns and 97 — 17 — SB 16

line 1 trends, racially or ethnically concentrated areas of poverty and line 2 affluence, disparities in access to opportunity, and disproportionate line 3 housing needs, including displacement risk. The analysis shall line 4 identify and examine such patterns, trends, areas, disparities, and line 5 needs, both within the jurisdiction and comparing the jurisdiction line 6 to the region in which it is located, based on race and other line 7 characteristics protected by the California Fair Employment and line 8 Housing Act (Part 2.8 (commencing with Section 12900) of line 9 Division 3 of Title 2) and Section 65008.
line 10 (iii)  An assessment of the contributing factors, including the line 11 local and regional historical origins and current policies and line 12 practices, for the fair housing issues identified under clauses (i) line 13 and (ii).
line 14 (iv)  An identification of the jurisdiction’s fair housing priorities line 15 and goals, giving highest priority to those factors identified in line 16 clause (iii) that limit or deny fair housing choice or access to line 17 opportunity, or negatively impact fair housing or civil rights line 18 compliance, and identifying the metrics and milestones for line 19 determining what fair housing results will be achieved. line 20 (v)  Strategies and actions to implement those priorities and line 21 goals, which may include, but are not limited to, enhancing line 22 mobility strategies and encouraging development of new affordable line 23 housing in areas of opportunity, as well as place-based strategies line 24 to encourage community revitalization, including preservation of line 25 existing affordable housing, and protecting existing residents from line 26 displacement.
line 27 (B)  A jurisdiction that completes or revises an assessment of line 28 fair housing pursuant to Subpart A (commencing with Section line 29 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal line 30 Regulations, as published in Volume 80 of the Federal Register, line 31 Number 136, page 42272, dated July 16, 2015, or an analysis of line 32 impediments to fair housing choice in accordance with the line 33 requirements of Section 91.225 of Title 24 of the Code of Federal line 34 Regulations in effect before August 17, 2015, may incorporate line 35 relevant portions of that assessment or revised assessment of fair line 36 housing or analysis or revised analysis of impediments to fair line 37 housing into its housing element.
line 38 (C)  (i)  The requirements of this paragraph shall apply to housing line 39 elements due to be revised pursuant to Section 65588 on or after line 40 January 1, 2021.
97 SB 16 — 18 —

line 1 (ii)  The assessment required pursuant to this paragraph shall be line 2 completed before the planning agency makes its first draft revision line 3 of a housing element available for public comment pursuant to line 4 subdivision (b) of Section 65585.
line 5 (D)  (i)  The department shall develop a standardized reporting line 6 format for programs and actions taken pursuant to this paragraph. line 7 The standardized reporting format shall enable the reporting of all line 8 of the assessment components listed in subparagraph (A) and, at line 9 a minimum, include all of the following fields:
line 10 (I)  Timelines for implementation.
line 11 (II)  Responsible party or parties.
line 12 (III)  Resources committed from the local budget to affirmatively line 13 further fair housing.
line 14 (IV)  Action areas.
line 15 (V)  Potential impacts of the program.
line 16 (ii)  A local government shall utilize the standardized report line 17 format developed pursuant to this subparagraph for the seventh line 18 and each subsequent revision of the housing element. line 19 (d)  (1)  A local government may satisfy all or part of its line 20 requirement to identify a zone or zones suitable for the line 21 development of emergency shelters pursuant to paragraph (4) of line 22 subdivision (a) by adopting and implementing a multijurisdictional line 23 agreement, with a maximum of two other adjacent communities, line 24 that requires the participating jurisdictions to develop at least one line 25 year-round emergency shelter within two years of the beginning line 26 of the planning period.
line 27 (2)  The agreement shall allocate a portion of the new shelter line 28 capacity to each jurisdiction as credit toward its emergency shelter line 29 need, and each jurisdiction shall describe how the capacity was line 30 allocated as part of its housing element.
line 31 (3)  Each member jurisdiction of a multijurisdictional agreement line 32 shall describe in its housing element all of the following:
line 33 (A)  How the joint facility will meet the jurisdiction’s emergency line 34 shelter need.
line 35 (B)  The jurisdiction’s contribution to the facility for both the line 36 development and ongoing operation and management of the line 37 facility.
line 38 (C)  The amount and source of the funding that the jurisdiction line 39 contributes to the facility.
97 — 19 — SB 16

line 1 (4)  The aggregate capacity claimed by the participating line 2 jurisdictions in their housing elements shall not exceed the actual line 3 capacity of the shelter.
line 4 (e)  Except as otherwise provided in this article, amendments to line 5 this article that alter the required content of a housing element line 6 shall apply to both of the following:
line 7 (1)  A housing element or housing element amendment prepared line 8 pursuant to subdivision (e) of Section 65588 or Section 65584.02, line 9 when a city, county, or city and county submits a draft to the line 10 department for review pursuant to Section 65585 more than 90 line 11 days after the effective date of the amendment to this section. line 12 (2)  Any housing element or housing element amendment line 13 prepared pursuant to subdivision (e) of Section 65588 or Section line 14 65584.02, when the city, county, or city and county fails to submit line 15 the first draft to the department before the due date specified in line 16 Section 65588 or 65584.02.
line 17 (f)  The deadline for completing required rezoning pursuant to line 18 subparagraph (A) of paragraph (1) of subdivision (c) shall be line 19 extended by one year if the local government has completed the line 20 rezoning at densities sufficient to accommodate at least 75 percent line 21 of the units for lower income households and if the legislative line 22 body at the conclusion of a public hearing determines, based upon line 23 substantial evidence, that any of the following circumstances exists:
line 24 (1)  The local government has been unable to complete the line 25 rezoning because of the action or inaction beyond the control of line 26 the local government of any other state, federal, or local agency. line 27 (2)  The local government is unable to complete the rezoning line 28 because of infrastructure deficiencies due to fiscal or regulatory line 29 constraints.
line 30 (3)  The local government must undertake a major revision to line 31 its general plan in order to accommodate the housing-related line 32 policies of a sustainable communities strategy or an alternative line 33 planning strategy adopted pursuant to Section 65080. line 34 The resolution and the findings shall be transmitted to the line 35 department together with a detailed budget and schedule for line 36 preparation and adoption of the required rezonings, including plans line 37 for citizen participation and expected interim action. The schedule line 38 shall provide for adoption of the required rezoning within one year line 39 of the adoption of the resolution.
97 SB 16 — 20 —

line 1 (g)  (1)  If a local government fails to complete the rezoning by line 2 the deadline provided in subparagraph (A) of paragraph (1) of line 3 subdivision (c), as it may be extended pursuant to subdivision (f), line 4 except as provided in paragraph (2), a local government may not line 5 disapprove a housing development project, nor require a line 6 conditional use permit, planned unit development permit, or other line 7 locally imposed discretionary permit, or impose a condition that line 8 would render the project infeasible, if the housing development line 9 project, (A) is proposed to be located on a site required to be line 10 rezoned pursuant to the program action required by that line 11 subparagraph and, (B) complies with applicable, objective general line 12 plan and zoning standards and criteria, including design review line 13 standards, described in the program action required by that line 14 subparagraph. Any subdivision of sites shall be subject to the line 15 Subdivision Map Act (Division 2 (commencing with Section line 16 66410)). Design review shall not constitute a “project” for purposes line 17 of Division 13 (commencing with Section 21000) of the Public line 18 Resources Code.
line 19 (2)  A local government may disapprove a housing development line 20 described in paragraph (1) if it makes written findings supported line 21 by substantial evidence on the record that both of the following line 22 conditions exist:
line 23 (A)  The housing development project would have a specific, line 24 adverse impact upon the public health or safety unless the project line 25 is disapproved or approved upon the condition that the project be line 26 developed at a lower density. As used in this paragraph, a “specific, line 27 adverse impact” means a significant, quantifiable, direct, and line 28 unavoidable impact, based on objective, identified written public line 29 health or safety standards, policies, or conditions as they existed line 30 on the date the application was deemed complete. line 31 (B)  There is no feasible method to satisfactorily mitigate or line 32 avoid the adverse impact identified pursuant to paragraph (1), other line 33 than the disapproval of the housing development project or the line 34 approval of the project upon the condition that it be developed at line 35 a lower density.
line 36 (3)  The applicant or any interested person may bring an action line 37 to enforce this subdivision. If a court finds that the local agency line 38 disapproved a project or conditioned its approval in violation of line 39 this subdivision, the court shall issue an order or judgment line 40 compelling compliance within 60 days. The court shall retain 97 — 21 — SB 16

line 1 jurisdiction to ensure that its order or judgment is carried out. If line 2 the court determines that its order or judgment has not been carried line 3 out within 60 days, the court may issue further orders to ensure line 4 that the purposes and policies of this subdivision are fulfilled. In line 5 any such action, the city, county, or city and county shall bear the line 6 burden of proof.
line 7 (4)  For purposes of this subdivision, “housing development line 8 project” means a project to construct residential units for which line 9 the project developer provides sufficient legal commitments to the line 10 appropriate local agency to ensure the continued availability and line 11 use of at least 49 percent of the housing units for very low, low-, line 12 and moderate-income households with an affordable housing cost line 13 or affordable rent, as defined in Section 50052.5 or 50053 of the line 14 Health and Safety Code, respectively, for the period required by line 15 the applicable financing.
line 16 (h)  An action to enforce the program actions of the housing line 17 element shall be brought pursuant to Section 1085 of the Code of line 18 Civil Procedure.
line 19 (i)  Notwithstanding any other law, the otherwise applicable line 20 timeframe set forth in paragraph (2) of subdivision (b) and line 21 subdivision (d) of Section 21080.3.1 of the Public Resources Code, line 22 and paragraph (3) of subdivision (d) of Section 21082.3 of the line 23 Public Resources Code, for a Native American tribe to respond to line 24 a lead agency and request consultation in writing is extended by line 25 30 days for any housing development project application line 26 determined or deemed to be complete on or after March 4, 2020, line 27 and prior to December 31, 2021.
line 28 (j)  On or after January 1, 2024, at the discretion of the line 29 department, the analysis of government constraints pursuant to line 30 paragraph (5) of subdivision (a) may include an analysis of line 31 constraints upon the maintenance, improvement, or development line 32 of housing for persons with a characteristic identified in subdivision line 33 (b) of Section 51 of the Civil Code. The implementation of this line 34 subdivision is contingent upon an appropriation by the Legislature line 35 in the annual Budget Act or another statute for this purpose. line 36 SEC. 3. Article 3 (commencing with Section 50245) is added line 37 to Chapter 6.5 of Part 1 of Division 31 of the Health and Safety line 38 Code, to read:
97 SB 16 — 22 —

line 1 Article 3. Round 7 of the Homeless Housing, Assistance, and line 2 Prevention Program
line 3
line 4 50245. For the purposes of this article:
line 5 (a)  “City” means a city or city and county that is legally line 6 incorporated to provide local government services to its population. line 7 A city can be organized either under the general laws of this state line 8 or under a charter adopted by the local voters.
line 9 (b)  “City-operated shelter” means low barrier navigation centers, line 10 interim housing, safe parking sites, and safe camping sites that are line 11 owned or leased by a city and are operated by a city or by a line 12 nonprofit provider contracted by a city.
line 13 (c)  “Low barrier navigation center” means a low barrier line 14 navigation center, as defined in subdivision (a) of Section 65660 line 15 of the Government Code.
line 16 50246. (a)  Upon appropriation by the Legislature, Round 7 of line 17 the Homeless Housing, Assistance, and Prevention Program is line 18 hereby established.
line 19 (b)  The department shall administer all aspects of the program line 20 in accordance with this article.
line 21 50247. (a)  To be eligible for a Round 7 base program line 22 allocation, a jurisdiction that is not a tribe shall apply as part of a line 23 region and shall be signatory to a Round 7 regionally coordinated line 24 homelessness action plan that has been approved by the department. line 25 (b)  The department shall approve a Round 7 regionally line 26 coordinated homelessness action plan when the department line 27 determines that the plan meets all of the requirements of this line 28 section.
line 29 (c)  The Round 7 regionally coordinated homelessness action line 30 plan shall include all of the following components:
line 31 (1)  For each city, an inventory of existing and planned line 32 city-operated shelters. The inventory must include the location, line 33 size, and capacity of each shelter.
line 34 (2)  The expected costs for city-operated shelters listed in line 35 paragraph (1).
line 36 (A)  Counties shall coordinate with cities to determine the line 37 expected costs.
line 38 (B)  Cities shall provide counties with estimates of the annual line 39 total cost to operate the shelters.
97 — 23 — SB 16

line 1 (C)  Beginning on January 1, 2026, the expected costs shall not line 2 exceed 125 percent of the most recent three-year average of the line 3 annual cost to operate the city’s shelters.
line 4 (3)  (A)  A commitment by counties to contribute 50 percent of line 5 the expected costs described in paragraph (2). The contribution line 6 may include the value of resources provided to city shelters, line 7 including any of the following:
line 8 (i)  Social services provided to clients of city shelters. line 9 (ii)  Assistance with services, infrastructure, and capacity line 10 building under the Providing Access and Transforming Health line 11 (PATH) program pursuant to Section 14184.700 of the Welfare line 12 and Institutions Code. The value of the resource provided pursuant line 13 to this clause shall be incentive payments, grants, or other financial line 14 support made to cities pursuant to Section 14184.700 of the line 15 Welfare and Institutions Code as a result of the assistance. line 16 (iii)  Staff and contractors provided to city-operated shelters. line 17 The value of the resource provided pursuant to this clause shall be line 18 the cost of providing staff and contractors.
line 19 (B)  The Legislature finds and declares that the purpose of this line 20 paragraph is to:
line 21 (i)  Ensure counties provide funding to offset one-half of cities’ line 22 costs to operate their facilities serving individuals who are line 23 unhoused.
line 24 (ii)  Permit the value of services counties provide to support the line 25 operation of city shelters to be applied toward the mandatory line 26 funding counties provide. These services may include staffing, line 27 assistance with billing Medi-Cal managed care organizations, and line 28 benefits programs, including CalWORKS and CalFresh, provided line 29 to clients of cities’ homeless-serving facilities. line 30 (d)  The regionally coordinated homelessness action plan shall line 31 be reflected in a memorandum of understanding committing each line 32 signatory to participation in, and to comply with, the regionally line 33 coordinated homelessness action plan.
line 34 50248. (a)  (1)  On or before the end of the 2025–26 fiscal year, line 35 a grantee shall submit to the department an update on their Round line 36 7 regionally coordinated homelessness action plan activities, which line 37 shall include the contribution made pursuant paragraph (3) of line 38 subdivision (c) of Section 50247.
97 SB 16 — 24 —

line 1 (2)  The department shall, within 30 days, review the update and line 2 report its findings to the participating grantee pursuant to this line 3 subdivision.
line 4 (3)  If the department finds that the grantee has adhered to the line 5 requirements of this article, or concludes that the grantee has line 6 addressed any shortcomings in the update, the department shall line 7 approve the update.
line 8 (4)  (A)  If the department finds that a grantee failed to adhere line 9 to the requirements of this article, the department may require the line 10 participating jurisdictions in the region to make specific changes line 11 needed to meet the requirements of this article and may require line 12 the participating jurisdictions to provide a corrective action plan line 13 to the update to the regionally coordinated action plan to address line 14 these findings. Participating jurisdictions shall accomplish these line 15 changes or submit a corrective action plan, as applicable, within line 16 30 days of being notified by the department.
line 17 (B)  The department shall have 30 days to review the changes line 18 or corrective action plan, as applicable, to determine if they line 19 addressed the department’s concerns and approve the update, or line 20 to provide the grantee with additional guidance and a deadline for line 21 making changes or further amending the corrective action plan to line 22 address the department’s concerns.
line 23 (b)  (1)  A board of supervisors of a county may adopt a line 24 resolution determining that complying with paragraph (3) of line 25 subdivision (c) of Section 50247 is financially infeasible and the line 26 county has made attempts to obtain maximum funding available line 27 to the county.
line 28 (2)  If a board of supervisors adopt a resolution pursuant to line 29 paragraph (1), the department shall conduct a review of a county’s line 30 financial documents to determine the contribution percentage that line 31 is financially feasible.
line 32 (3)  A county shall contribute the contribution percentage line 33 determined by the department pursuant to paragraph (2). line 34 (c)  (1)  On or before the end of the 2025–26 fiscal year, cities line 35 shall submit to the department the actual operating cost of line 36 city-operated shelters.
line 37 (2)  If the counties’ contribution exceed the contribution required line 38 by paragraph (3) of subdivision (c) of Section 50247, cities shall line 39 reimburse the counties the excess contribution. 97 — 25 — SB 16

line 1 (d)  The department may withhold 50 percent of the funds from line 2 a grantee until the department has approved the update to the line 3 grantee’s Round 7 regionally coordinated homelessness action line 4 plan.
line 5 SEC. 4. Section 5963.02 of the Welfare and Institutions Code line 6 is amended to read:
line 7 5963.02. (a)  (1)  Each county shall prepare and submit an line 8 integrated plan and annual updates to the Behavioral Health line 9 Services Oversight and Accountability Commission and the line 10 department.
line 11 (2)  All references to the three-year program and expenditure line 12 plan mean the integrated plan.
line 13 (3)  Each county’s board of supervisors shall approve the line 14 integrated plan and annual updates by June 30 prior to the fiscal line 15 year or years the integrated plan or update would cover. line 16 (4)  A county shall not use the integrated plan to demonstrate line 17 compliance with federal law, state law, or requirements imposed line 18 by the department related to programs listed in subdivision (c). line 19 (b)  (1)  Each section of the integrated plan and annual update line 20 listed in subdivision (c) shall be based on available funding or line 21 obligations under Section 30025 of the Government Code and line 22 corresponding contracts for the applicable fiscal years and in line 23 accordance with established stakeholder engagement and planning line 24 requirements as required in Section 5963.03.
line 25 (2)  A county shall consider relevant data sources, including line 26 local data, to guide addressing local needs, including the prevalence line 27 of mental health and substance use disorders, the unmet need for line 28 mental health and substance use disorder treatment in the county, line 29 behavioral health disparities, and the homelessness point-in-time line 30 count, in preparing each integrated plan and annual update, and line 31 should use the data to demonstrate how the plan appropriately line 32 allocates funding between mental health and substance use disorder line 33 treatment services.
line 34 (3)  A county shall consider the population needs assessment of line 35 each Medi-Cal managed care plan, as defined in subdivision (j) of line 36 Section 14184.101, that covers residents of the county in preparing line 37 each integrated plan and annual update.
line 38 (4)  A county shall consider the community health improvement line 39 plan of the local health jurisdiction for the county in preparing line 40 each integrated plan and annual update.
97 SB 16 — 26 —

line 1 (5)  A county shall stratify data to identify behavioral health line 2 disparities and consider approaches to eliminate disparities, line 3 including, but not limited to, promising practices, models of care, line 4 community-defined evidence practices, workforce diversity, and line 5 cultural responsiveness in preparing each integrated plan and line 6 annual update.
line 7 (6)  A county shall report and consider the achievement of line 8 defined goals and outcomes measures of the prior integrated plan line 9 and annual update, in addition to other data and information as line 10 specified by the department pursuant to Section 5963.05, in line 11 preparing each integrated plan and annual update. line 12 (7)  A county with a population greater than 200,000 shall line 13 collaborate with the five most populous cities in the county, line 14 managed care plans, and continuums of care to outline respective line 15 responsibilities and coordination of services related to housing line 16 interventions described in Section 5830.
line 17 (8)  A county shall consider input and feedback into the plan line 18 provided by stakeholders, including, but not limited to, those with line 19 lived behavioral health experience, including peers and families. line 20 (c)  The integrated plan and annual updates shall include a section line 21 for each of the following:
line 22 (1)  (A)  Community mental health services provided pursuant line 23 to Part 2 (commencing with Section 5600).
line 24 (B)  Programs and services funded from the Behavioral Health line 25 Services Fund pursuant to Section 5890, including a description line 26 of how the county meets the requirements of paragraph (7) of line 27 subdivision (b).
line 28 (C)  Programs and services funded by the Projects for Assistance line 29 in Transition from Homelessness grant pursuant to Sections line 30 290cc-21 to 290cc-35, inclusive, of Title 42 of the United States line 31 Code.
line 32 (D)  Programs and services funded by the Community Mental line 33 Health Services Block Grant pursuant to Sections 300x to 300x-9, line 34 inclusive, of Title 42 of the United States Code. line 35 (E)  Programs and services funded by the Substance Abuse Block line 36 Grant pursuant to Sections 300x-21 to 300x-35, inclusive, of Title line 37 42 of the United States Code.
line 38 (F)  Programs and services provided pursuant to Article 5 line 39 (commencing with Section 14680) of Chapter 8.8 of Part 3 of 97 — 27 — SB 16

line 1 Division 9 and Chapter 8.9 (commencing with Section 14700) of line 2 Part 3 of Division 9.
line 3 (G)  Programs and services provided pursuant to Article 3.2 line 4 (commencing with Section 14124.20) of Chapter 7 of Part 3 of line 5 Division 9.
line 6 (H)  Programs and services provided pursuant to Section line 7 14184.401.
line 8 (I)  Programs and services funded by distributions from the line 9 Opioid Settlements Fund established pursuant to Section 12534 line 10 of the Government Code.
line 11 (J)  Services provided through other federal grants or other line 12 county mental health and substance use disorder programs. line 13 (K)  Programs and services provided pursuant to paragraph (3) line 14 of subdivision (c) of Section 50247 of the Health and Safety Code. line 15 (2)  A budget that includes the county planned expenditures and line 16 reserves for the county distributions from the Behavioral Health line 17 Service Fund and any other funds allocated to the county to provide line 18 the services and programs set forth in paragraph (1). The budget line 19 shall also include proposed adjustments pursuant to the line 20 requirements set forth in paragraph (c) of Section 5892. line 21 (3)  (A)  A description of how the integrated plan and annual line 22 update aligns with statewide behavioral health goals and outcome line 23 measures, including goals and outcome measures to reduce line 24 identified disparities, as defined by the department in consultation line 25 with counties, stakeholders, and the Behavioral Health Services line 26 and Oversight Accountability Commission, pursuant to Section line 27 5963.05.
line 28 (B)  Outcome measures may include, but are not limited to, line 29 measures that demonstrate achievement of goals to reduce line 30 homelessness among those eligible for housing interventions line 31 pursuant to Section 5830 and measures that demonstrate reductions line 32 in the number of people who are justice-involved in the county line 33 and who are eligible adults or older adults, as defined in Section line 34 5892, or eligible children and youth, as defined in Section 5892. line 35 (4)  A description of how the integrated plan aligns with local line 36 goals and outcome measures for behavioral health, including goals line 37 and outcome measures to reduce identified disparities. line 38 (5)  The programs and services specified in paragraph (1) shall line 39 include descriptions of efforts to reduce identified disparities in line 40 behavioral health outcomes.
97 SB 16 — 28 —

line 1 (6)  A description of the data sources considered to meet the line 2 requirements specified in paragraph (2) of subdivision (b). line 3 (7)  A description of how the county has considered the unique line 4 needs of LGBTQ+ youth, justice-involved youth, child line 5 welfare-involved, justice-involved adults, and older adults in the line 6 housing intervention program pursuant to Part 3.2 (commencing line 7 with Section 5830) and Full Service Partnership program pursuant line 8 to Part 4.1 (commencing with Section 5887).
line 9 (8)  A description of its workforce strategy, to include actions line 10 the county will take to ensure its county and noncounty contracted line 11 behavioral health workforce is well-supported and culturally and line 12 linguistically concordant with the population to be served, and line 13 robust enough to achieve the statewide and local behavioral health line 14 goals and measures. This description shall include how the county line 15 will do all of the following:
line 16 (A)  Maintain and monitor a network of appropriate, high-quality, line 17 culturally and linguistically concordant county and noncounty line 18 contracted providers, where applicable, that is sufficient to provide line 19 adequate access to services and supports for individuals with line 20 behavioral health needs.
line 21 (B)  Meet federal and state standards for timely access to care line 22 and services, considering the urgency of the need for services. line 23 (C)  Ensure the health and welfare of the individual and support line 24 community integration of the individual.
line 25 (D)  Promote the delivery of services in a culturally competent line 26 manner to all individuals, including those with limited English line 27 proficiency and diverse cultural and ethnic backgrounds and line 28 disabilities, regardless of age, religion, sexual orientation, and line 29 gender identity.
line 30 (E)  Ensure physical access, reasonable accommodations, and line 31 accessible equipment for individuals with physical, intellectual line 32 and developmental, and mental disabilities.
line 33 (F)  Select and retain all contracted network providers, including line 34 ensuring all contracted providers meet minimum standards for line 35 license, certification, training, experience, and credentialing line 36 requirements.
line 37 (G)  Ensure that the contractor’s hiring practices meet applicable line 38 nondiscrimination standards and demonstrate best practices in line 39 promoting diversity and equity.
97 — 29 — SB 16

line 1 (H)  Adequately fund contracts to ensure that noncounty line 2 contracted providers are resourced to achieve the behavioral health line 3 goals outlined in their contract for the purposes of meeting line 4 statewide metrics.
line 5 (I)  Conduct oversight of compliance of all federal and state laws line 6 and regulations of all contracted network providers. line 7 (J)  Fill county vacancies and retain county employees providing line 8 direct behavioral health services, if applicable. line 9 (9)  A description of the system developed to transition a line 10 beneficiary’s care between the beneficiary’s mental health plan line 11 and their managed care plan based upon the beneficiary’s health line 12 condition.
line 13 (10)  Certification by the county behavioral health director, that line 14 ensures that the county has complied with all pertinent regulations, line 15 laws, and statutes, including stakeholder participation requirements. line 16 (11)  Certification by the county behavioral health director and line 17 by the county chief administration officer or their designee that line 18 the county has complied with fiscal accountability requirements, line 19 as directed by the department, and that all expenditures are line 20 consistent with applicable state and federal law. line 21 (d)  The county shall submit its integrated plan and annual line 22 updates to the department and the commission in a form and line 23 manner prescribed by the department.
line 24 (e)  The department shall post on its internet website, in a timely line 25 manner, the integrated plan submitted by every county pursuant line 26 to this section.
line 27 (f)  This section shall become operative on July 1, 2026, if line 28 amendments to the Mental Health Services Act are approved by line 29 the voters at the March 5, 2024, statewide primary election. line 30 SEC. 2. Section 8257.1 of the Welfare and Institutions Code line 31 is amended to read:
line 32 8257.1. (a)  It is the intent of the Legislature to obtain line 33 trustworthy information to connect funding allocated to prevent line 34 and end homelessness with established sheltering and housing line 35 resources and to provide state agencies with accurate information line 36 to allow for more accurate forecasting to target future investments. line 37 To advance these goals, the coordinating council shall, upon line 38 appropriation by the Legislature, do all of the following:
line 39 (1)  Conduct, or contract with an entity to conduct, a statewide line 40 homelessness assessment that will do all of the following:
97 SB 16 — 30 —

line 1 (A)  Identify all programs a state agency funds, implements, or line 2 administers for the purpose of providing unsheltered outreach line 3 services, emergency shelter, housing or housing-based services to line 4 persons experiencing homelessness or at risk of homelessness and line 5 do all of the following:
line 6 (i)  Identify homelessness interventions and service categories line 7 available statewide and in geographically diverse regions across line 8 the state.
line 9 (ii)  Compile the amount of funding distributed to local line 10 jurisdictions and its stated intent by the administering entity. line 11 (iii)  Identify the intended uses for the funds identified pursuant line 12 to clause (ii) by type of intervention as stated by local jurisdictions line 13 requesting funding made available for housing- or line 14 homelessness-related services.
line 15 (iv)  Identify conditions or premise of the funds identified line 16 pursuant to clause (ii) as it relates to leveraging nonstate dollars. line 17 (v)  If applicable, reasons for the unavailability of data. line 18 (B)  Obtain the following information for each program identified line 19 in subparagraph (A) to the extent that data is available in local line 20 Homeless Management Information Systems (HMIS), the line 21 Homeless Data Integration System (HDIS) or other readily line 22 available data sources:
line 23 (i)  The number of permanent housing units that the program line 24 made available.
line 25 (ii)  The amount of rental subsides, vouchers, or other forms of line 26 financial support intended to prevent homelessness or to rehouse line 27 individuals that the program made available.
line 28 (iii)  The number of emergency shelter beds, vouchers, or units line 29 that the program made available.
line 30 (iv)  The wrap around services that the program offered. line 31 (C)  Collect data, to the extent data it is available, on the numbers line 32 and demographics of persons served through the identified services, line 33 including, but not limited to, a quantification of the disparities line 34 across age, race, ethnicity, and other demographics based on the line 35 following subpopulation categories to describe the homelessness line 36 population relative to the general population:
line 37 (i)  Young adults.
line 38 (ii)  Unaccompanied minors.
line 39 (iii)  Single adults experiencing either chronic or nonchronic line 40 patterns of homelessness, of first-time homelessness. 97 — 31 — SB 16

line 1 (iv)  Adults over 50 years of age.
line 2 (v)  Veterans.
line 3 (vi)  Families experiencing either chronic or nonchronic patterns line 4 of homelessness, or first-time homelessness.
line 5 (D)  For each program identified pursuant to subparagraph (A) line 6 that provides housing or homelessness-related services, collect line 7 and analyze the following data:
line 8 (i)  The number of persons served annually by service or line 9 intervention type by age, gender, and racial subgroupings. line 10 (ii)  Typical service mix use to develop portrait of the “types” line 11 of system clients to better understand the holistic needs of people line 12 experiencing homelessness and to forecast future uses and policies line 13 of resources intended to address homelessness.
line 14 (iii)  The service, services, or service mixes that are associated line 15 with individuals exiting homelessness.
line 16 (iv)  The duration and frequency individuals accessed services, line 17 on average, and the length of time from program intake to the date line 18 the individual moves into permanent housing or resolves line 19 homelessness.
line 20 (v)  Each type of housing and each type of intervention provided line 21 disaggregated by age, racial, and gender characteristics of line 22 recipients.
line 23 (vi)  The number of individuals whose homelessness was line 24 prevented after accessing homelessness prevention services line 25 (vii)  Information about the people who accessed the resources line 26 identified in subparagraph (B) and disaggregated by demographic line 27 characteristics described in subparagraph (C).
line 28 (viii)  Analyze the results of current permanent and interim line 29 housing programs by program type.
line 30 (ix)  Additional data necessary to provide a comprehensive view line 31 of the homelessness response system.
line 32 (E)  Provide the reasons for lack of data availability, if applicable. line 33 (2)  (A)  For purposes of collecting data to conduct the line 34 assessment pursuant to paragraph (1), evaluate available data, line 35 including, but not limited to, HDIS, data from state agencies line 36 administering homelessness funds, statewide and local homeless line 37 point-in-time counts and housing inventory counts, and available line 38 statewide information on the number or rate of persons exiting line 39 state-funded institutional settings, including, but not limited to, 97 SB 16 — 32 —

line 1 state prisons and, to the extent possible, local jails, into line 2 homelessness.
line 3 (B)  The coordinating council may work with a technical line 4 assistance provider from the federal Department of Housing and line 5 Urban Development to complete the assessment.
line 6 (C)  For purposes of collecting data pursuant to paragraph (1), line 7 a local government may collaborate with the coordinating council line 8 or the entity conducting the statewide assessment to, if available, line 9 share existing data from existing local analyses of system needs line 10 or gaps to complement other data requested.
line 11 (D)  The coordinating council shall submit an interim report by line 12 July 1, 2022, to the Assembly Housing and Community line 13 Development Committee, the Assembly Committee on Budget, line 14 Senate Committee on Housing, and Senate Committee on Budget line 15 and Fiscal Review. The report submitted pursuant to this paragraph line 16 shall comply with Section 9795 of the Government Code. line 17 (E)  The council shall report on the final assessment by December line 18 31, 2022, to the Assembly Housing and Community Development line 19 Committee, the Assembly Committee on Budget, Senate line 20 Committee on Housing, and Senate Committee on Budget and line 21 Fiscal Review. The report submitted pursuant to this paragraph line 22 shall comply with Section 9795 of the Government Code. line 23 (b)  (1)  The Department of Housing and Community line 24 Development shall complete, or contract to complete, an line 25 assessment and financing plan to, in coordination with local line 26 jurisdictions, address unsheltered and chronic homelessness in line 27 the state over a 10-year period. The department shall report to the line 28 Legislature on the assessment and financing plan by December line 29 31, 2027. The report submitted pursuant to this paragraph shall line 30 comply with Section 9795 of the Government Code. line 31 (2)  The assessment shall identify all of the following:
line 32 (A)  The number of people experiencing unsheltered line 33 homelessness and the number of people expected to fall into line 34 unsheltered homelessness over the next 10 years, based on recent line 35 data on rates of Californians becoming unsheltered. line 36 (B)  The unmet housing and services needs among the line 37 populations identified in subparagraph (A).
line 38 (C)  Evidence-based interventions required to meet the housing line 39 and services needs of the populations identified in subparagraph line 40 (A).
97 — 33 — SB 16

line 1 (D)  The funding required to offer evidence-based interventions line 2 at a scale great enough for populations identified in subparagraph line 3 (A) to exit homelessness over the 10-year period. line 4 (E)  Of the funding identified as required in subparagraph (D), line 5 existing resources that could be used to meet the unmet housing line 6 and services needs of the populations identified in subparagraph line 7 (A), including estimates of local funding available to serve these line 8 populations. This can include the funding available for a spectrum line 9 of interventions, from interventions to keep people safe while line 10 homeless to evidence-based interventions to end homelessness, line 11 including, but not limited to, additional shelters and interim and line 12 permanent housing services solutions.
line 13 (F)  Remaining resources required to end homelessness among line 14 the populations identified in subparagraph (A), after taking into line 15 consideration existing funding described in subparagraph (E). line 16 This can include the funding necessary for a spectrum of line 17 interventions, from interventions to keep people safe while line 18 homeless to evidence-based practices to end homelessness, line 19 including, but not limited to, additional shelters and interim and line 20 permanent housing solutions.
line 21 (G)  The actions that state and local governments need to take line 22 in order to create the resources identified in subparagraph (F) line 23 and recommendations to the Legislature for how and when to line 24 accomplish those actions.
line 25 (3)  In conducting the assessment and financing plan, the line 26 department or contractor shall consult with individuals with lived line 27 experience of homelessness, affordable housing and homelessness line 28 experts and advocates, researchers and housing data experts, line 29 housing authority representatives, representatives of homeless line 30 continuums of care, representatives of cities and counties, line 31 representatives of Native American tribes, homeless services and line 32 housing providers, and participants on the Interagency Council line 33 on Homelessness’ State Funding and Programs Working Group, line 34 Racial Equity Working Group, and Youth and Young Adults line 35 Working Group.
line 36 (b)
line 37 (c)  For purposes of this section, all of the following definitions line 38 apply:
97 SB 16 — 34 —

line 1 (1)  “Chronic homelessness” has the same definition as that in line 2 Section 578.3 of Title 24 of the Code of Federal Regulations, as line 3 that section read on January 1, 2020.
line 4 (2)  “State-funded institutional settings” include, but are not line 5 limited to, justice, juvenile justice, child welfare, and health care line 6 settings.
line 7 (3)  “Young adult” means a person 18 to 24 years of age, line 8 inclusive.
line 9 (4)  “Persons at risk of homelessness” means a person or family line 10 in the circumstances described in Section 11302(a)(5) of Title 42 line 11 of the United States Code.
line 12 (5)  “Homeless” has the same meaning as defined in Section line 13 578.3 of Title 24 of the Code of Federal Regulations, as that section line 14 read on January 10, 2019.
line 15 SEC. 5.
line 16 SEC. 3. The Legislature finds and declares that Section 2 1 of line 17 this act amending Section 65583 of the Government Code line 18 addresses a matter of statewide concern rather than a municipal line 19 affair as that term is used in Section 5 of Article XI of the line 20 California Constitution. Therefore, Section 2 1 of this act applies line 21 to all cities, including charter cities.
line 22 SEC. 6.
line 23 SEC. 4. If the Commission on State Mandates determines that line 24 this act contains costs mandated by the state, reimbursement to line 25 local agencies and school districts for those costs shall be made line 26 pursuant to Part 7 (commencing with Section 17500) of Division line 27 4 of Title 2 of the Government Code.

O
97 — 35 — SB 16

11 CITY COUNCIL STAFF REPORT
MEETING DATE: June 4, 2025
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND APRIL 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 commitment to maintaining a high level of transparency and being responsible stewards of public funds, staff is providing this monthly budget update, along with the April 2025 financial and investment reports.

April 2025 Financial Report
The Revenue and Expense Summary through April 2025 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $38.9 million or about 69% of the budget. Expenditures, including encumbrances, amounted to $50.2 million, of which approximately $2.5 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $48.1 million. This represents an increase of $2.1 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $2.5 million, primarily due to additional staffing, negotiated salary adjustments, and overall cost increases.

Budget Update
There has been no material change since the last budget update to the Council on May 21, 2025. Regarding water revenue, Morgan Hill residents consumed approximately 8% more water through April compared to the average for the prior three years. As a result, no revenue stabilization water rate was implemented.

11 COMMUNITY ENGAGEMENT:

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

ALTERNATIVE ACTIONS:

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
April 30, 2025 - 83% 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 APRIL 2025 – 83% OF YEAR COMPLETE
 General Fund – Revenues through April totaled $38.9 million, or about 69% 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, after 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, estimates the City's current fiscal year sales tax revenue (before tax rebates) at $12.0 million, slightly higher than previous estimate by about $0.1 million. Nevertheless, this still represents a reduction of approximately $0.9 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. Furthermore, the estimate for the next fiscal year has been further reduced to $12.2 million, down from the previous estimate of $12.4 million.

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 April 30, 2025.

General Fund expenditures and encumbrances through April totaled $50.2 million, of which approximately $2.5 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $48.1 million. This represents an increase of $2.1 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $2.5 million, primarily due to additional staffing, negotiated salary adjustments, and overall cost increases.
$16.0 $16.7 $18.1 $19.1 $19.4
$10.8
$11.0 $12.9 $12.7 $12.2 $12.8
$8.1
$4.4
$5.9 $5.7 $6.0 $5.9
$4.3
$5.6
$6.9 $8.1 $9.2 $10.3
$9.0
$9.8
$9.7 $7.8
$9.5 $8.1
$6.7
$46.8
$52.1 $52.4
$56.0 $56.5
$38.9
0 10
20 30
40 50
60 FY20-21 FY21-22 FY22-23 FY23-24 Budget
FY24-25
YTD
FY24-25
Millions ($)
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 APRIL 2025 – 83% OF YEAR COMPLETE
 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 $0.9 million as of April 30, 2025. Recreation Services revenues continue to recover from the pandemic and are on target with budget.

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 April totaled $5.3 million compared to the prior year to date amount of approximately $4.9 million. Expenditures, including encumbrances, totaled $5.2 million.
 Debt Service Funds – Expenditures through April 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 APRIL 2025 – 83% OF YEAR COMPLETE
 Wastewater Operations – Revenues through April 30, 2025 totaled $13.3 million. Expenditures and outstanding encumbrances totaled $13.7 million or 81% 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 April 30, 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               13.3 Expenditures 13.3                            14.8              16.0                14.9              16.8               13.7 Operating Margin                ‐                0.1               (0.7)                  0.3               (0.2)                (0.4) Operating Margin
without Encumbrances                ‐                0.1               (0.7)                  0.3               (0.2)                (0.4)  Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through April 30, 2025 totaled $15.5 million. Water Operations expenditures, including outstanding encumbrances, totaled $16.2 million. Morgan Hill residents consumed about 8% more water through April 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 April 30, 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                15.5 Expenditures              16.5              15.2              18.0               19.1               21.6                16.2 Operating Margin                ‐                0.8                0.1                (0.4)                (0.1)                 (0.7) Operating Margin
without Encumbrances                ‐                0.8                0.1                (0.4)                (0.1)                 (0.3)  Investments – Four securities were called, and four new securities were purchased. Total interest earnings received on investments were $513,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 38,929,630 $ 69% $ 50,251,111 78%
Development Services 5,336,408 90% 5,164,002 81%
Wastewater Operations 13,336,463 80% 13,687,366 81%
Wastewater Other 15,909,830 88% 11,843,443 62%
Water Operations 15,472,490 72% 16,224,147 75%
Water Other 9,122,457 63% 13,854,978 57%
Other Special Revenues * 5,913,610 72% 7,310,479 66%
Capital Projects & Streets 23,264,714 71% 32,332,554 64% Debt Service 571,151 83% 575,084 85%
Internal Service 11,408,861 79% 11,872,090 75%
TOTAL FOR ALL FUNDS 139,265,615 $ 74% $ 163,115,253 71% * Includes all Special Revenue Funds except Development Services Fund and Street Funds.

REVENUES EXPENSES
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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
April 30, 2025 - 83% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
83%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 19,411,020 $ 10,798,086 $ 56% 12,894,222 $ -16% Sales Tax 12,816,469 8,078,329 63% 8,518,676 -5%
Franchise Tax 3,185,872 2,530,671 79% 2,470,726 2%
Hotel Tax 2,678,000 1,764,787 66% 1,770,297 0%
Other Agencies 1,601,204 1,307,809 82% 732,782 78%
Service Charges 10,323,751 8,967,996 87% 8,721,268 3%
Interest/Other 3,107,665 2,713,237 87% 2,214,998 22%
Transfers In 3,365,760 2,768,715 82% 2,511,494 10%
TOTAL REVENUES 56,489,742 $ 38,929,630 $ 69% 39,834,461 $ -2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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
April 30, 2025 - 83% of Year Complete
83%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 7,351,159 $ 5,577,587 76% 5,405,287 $ 3% Community Services 19,922,029 15,215,011 76% 14,391,397 6% Police 25,598,203 19,723,249 77% 18,144,316 9%
Fire 10,381,160 8,520,072 82% 7,716,921 10%
Transfers Out 1,458,230 1,215,192 83% 2,486,473 -51%
TOTAL EXPENDITURES $ 64,710,781 $ 50,251,111 78% 48,144,393 $ 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
April 30, 2025 - 83% of Year Complete
83%

City of Morgan Hill
Recreation Report - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% of Year Complete
% of
Budget April 2025 YTD Budget
Revenues
Membership Services & Rec Programs 6,222,399 $ 517,389 $ 5,262,986 $ Facility Rentals 1,197,395 113,882 1,253,533
Community Services 147,498 3,394 126,934
Transfers in 100,000 6,250 83,333
Total Revenues 7,667,292 $ 640,914 $ 6,726,786 $ 88%
Less: Expenditures
Membership & Program Services 8,040,818 $ 457,073 $ 5,952,318 $ Facility Rentals 633,051 44,331 453,661
Community Services 761,973 60,984 489,370
Total Expenditures 9,435,843 $ 562,387 $ 6,895,349 $ 73% Net Impact without encumbrances (1,768,551) $ 78,527 $ (168,563) $ Encumbrances - - 738,737
Net Impact with encumbrances (1,768,551) $ 78,527 $ (907,300) $

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

City of Morgan Hill
Monthly Investment Report ‐ April 30, 2025
The following are the snapshots of City's investment portfolio as of April 30, 2025. The first chart shows the portfolio composition by investment type:

LAIF ‐ $0.1M
< 1%
CA Class ‐ $22.8M
11%
Treasury  ‐ $13.7M
7%
Money Market
‐ $6.8M
3%
Federal Agency Issues‐
$150.3M
71%
Certificate of Deposits ‐
$1.0M
< 1%
Bond Reserves/Trust ‐
$15.0M
7%
Cash & Other Deposits ‐ $0.1M
< 1%
Investment Portfolio Composition ‐ $209.8 Million
LAIF ‐ $0.1M
CA Class ‐ $22.8M
Treasury  ‐ $13.7M
Money Market ‐ $6.8M
Federal Agency Issues‐
$150.3M
Certificate of Deposits ‐
$1.0M
Bond Reserves/Trust ‐
$15.0M
Cash & Other Deposits ‐
$0.1M
General Fund, $27.3M
Development Services,
$1.6M
Water ‐ Operations,
$2.8M
Water Other, $34.0M
Sewer ‐ Operations,
$2.3M
Sewer Other, $49.0M Other Special Revenue,
$18.7M
Streets and Capital
Projects, $38.7M
Debt Service , $0.8M
Internal Service,
$27.9M
Agency Funds (assessment
dists./refundable deposits),
$6.7M
Cash Balances by Fund Type ‐ $209.8 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%
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
Mar‐25
Apr‐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
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
Mar‐25
Apr‐25
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
CITY

City of Morgan Hill
Investment Portfolio Detail
As of April 30, 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 $              63,225 $              63,225 0.0% $              63,279 4.28% California C L A S S         22,804,594         22,804,594 10.9% 22,804,594          4.39% WFB Money Market            6,658,310            6,658,310 3.2% 6,658,310 4.23% US Bank ‐ Portfolio of Securities
Dreyfus Treasury Agency MM 261908107               103,872               103,872 0.0%               103,872 4.20% Treasury Note 91282CCZ2 10/8/2021 1,987,656                        1,996,483 1.0%           1,921,720 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688                        1,966,735 0.9%           1,948,980 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719                        1,993,033 0.9%           1,990,780 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323                        1,846,598 0.9%           1,844,840 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536                        1,949,891 0.9%           1,955,540 3.61% 8/31/2028 8/31/2028 Treasury Note 31282CFJ5 10/7/2024 1,949,794                        2,028,036 1.0%           2,014,840 3.76% 8/31/2029 8/31/2029 Treasury Note 91282CFY2 12/19/2024 1,959,077                        1,958,317 0.9%           2,014,380 4.39% 11/30/2029 11/30/2029 FFCB Bond 3133ELC28 5/27/2020 2,000,000                        2,000,000 1.0%           1,994,780 0.73% 5/5/2025 5/27/2025 FHLMC Bond 3134GWZG4 10/20/2020 2,000,000                        2,000,000 1.0%           1,966,720 0.60% 7/20/2025 10/20/2025 FHLMC Bond 3134GW3X2 10/27/2020 2,000,000                        2,000,000 1.0%           1,964,400 0.63% 7/27/2025 10/27/2025 FFCB Bond 3133EMFR8 11/3/2020 2,000,000                        2,000,000 1.0%           1,962,760 0.54% 5/5/2025 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000                        2,000,000 1.0%           1,960,460 0.65% 11/18/2025 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000                        2,000,000 1.0%           1,959,800 0.64% 5/24/2025 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000                        1,000,000 0.5%               980,330 0.60% 5/5/2025 11/24/2025 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000                        3,000,000 1.4%           2,940,600 0.63% 11/25/2025 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000                        2,000,000 1.0%           1,959,960 0.65% 5/26/2025 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000                        2,000,000 1.0%           1,954,160 0.47% 5/5/2025 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000                        2,000,000 1.0%           1,950,080 0.63% 5/22/2025 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000                        2,000,000 1.0%           1,948,380 0.55% 5/28/2025 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000                        2,000,000 1.0%           1,950,640 0.65% 5/28/2025 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000                        2,000,000 1.0%           1,947,660 0.75% 5/24/2025 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000                        2,000,000 1.0%           1,945,940 0.66% 5/25/2025 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000                        2,000,000 1.0%           1,945,440 0.65% 5/26/2025 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000                        2,000,000 1.0%           1,946,420 0.85% 6/10/2025 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000                        2,000,000 1.0%           1,941,760 0.70% 6/16/2025 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000                        2,000,000 1.0%           1,944,060 0.80% 6/16/2025 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021 2,000,000                        2,000,000 1.0%           1,939,900 1.08% 5/5/2025 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000                        2,000,000 1.0%           1,933,360 1.00% 6/30/2025 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000                        3,000,000 1.4%           2,905,560 1.13% 7/15/2025 7/15/2026 FHLB Bond 3130AMYS5 7/15/2021 2,000,000                        2,000,000 1.0%           1,985,560 0.85% 7/15/2025 7/15/2025 FHLB Bond 3130ANJC5 8/26/2021 2,000,000                        2,000,000 1.0%           1,921,680 0.80% 8/26/2025 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000                        3,000,000 1.4%           2,889,030 1.00% 5/26/2025 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000                        2,000,000 1.0%           1,924,680 0.90% 8/26/2025 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340                        2,028,220 1.0%           1,950,300 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960                        1,995,314 1.0%           1,918,480 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000                        3,000,000 1.4%           2,888,550 1.13% 5/5/2025 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000                        2,000,000 1.0%           1,920,260 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000                        3,000,000 1.4%           2,884,380 1.05% 6/30/2025 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000                        3,000,000 1.4%           2,884,830 1.02% 6/30/2025 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000                        2,000,000 1.0%           1,920,000 1.00% 7/19/2025 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000                        2,000,000 1.0%           1,924,160 1.30% 11/18/2025 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000                        2,000,000 1.0%           1,951,960 1.74% 1/19/2027 1/19/2027 FHLB Bond 3130AQKT9 1/25/2022 2,000,000                        2,000,000 1.0%           1,987,780 1.51% 7/25/2025 7/25/2025 FHLB Bond 3130AR4F5 3/10/2022 2,000,000                        2,000,000 1.0%           1,996,900 3.48% 6/10/2025 3/10/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000                        2,000,000 1.0%           1,990,880 3.28% 12/15/2025 12/15/2025 FHLB Bond 3130ASPE3 7/28/2022 2,000,000                        2,000,000 1.0%           1,996,000 4.30% 7/28/2025 7/28/2027 FHLMCTN Bond 3134H1QG1 1/26/2024 3,000,000                        3,000,000 1.4%           3,004,380 4.66% 7/26/2025 1/26/2029 FHLB Bond 3130B2KZ7 9/11/2024 790,698                              790,698 0.4%               790,595 5.00% 5/5/2025 9/11/2029 FHLMCMTN Bond 3134HAKY8 9/13/2024 2,985,210                        2,987,075 1.4%           2,964,180 4.11% 12/13/2025 9/13/2029 FHLMCMTN Bond 3134HALK7 9/19/2024 3,000,000                        3,000,000 1.4%           2,999,910 5.00% 6/19/2025 9/19/2029 FHLB Bond 3130B2P58 9/26/2024 2,003,014                        2,000,000 1.0%           1,982,900 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B2X59 9/27/2024 2,000,000                        2,000,000 1.0%           1,990,080 4.00% 9/18/2025 9/18/2028

Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLMCMTN Bond 3134HANZ2 10/1/2024 3,000,000                        3,000,000 1.4% 3,001,050            5.00% 5/1/2025 10/1/2029 FHLB Bond 3130B33T8 10/8/2024 2,500,000                        2,500,000 1.2% 2,500,325            5.00% 7/2/2025 10/2/2029 FHLB Bond 3130B35N9 10/8/2024 2,000,000                        2,000,000 1.0% 1,993,640            4.50% 10/1/2025 10/1/2029 FHLMCMTN Bond 3134HARE5 10/11/2024 2,000,000                        2,000,000 1.0% 1,998,660            4.75% 7/11/2025 10/11/2029 FNMA Bond 3135GAW98 10/15/2024 2,000,000                        2,000,000 1.0%           1,997,480 5.00% 5/1/2025 10/1/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000                        1,994,650 1.0%           1,996,340 4.32% 4/15/2026 10/15/2029 FHLMCMTN Bond 3134HAXT5 11/12/2024 2,000,000                        2,000,000 1.0%           1,999,980 5.00% 5/7/2025 11/7/2029 FHLMCMTN Bond 3134HAZW6 11/15/2024 2,000,281                        2,000,000 1.0%           2,001,480 5.43% 5/14/2025 11/14/2029 FHLMCMTN Bond 3134HAC92 11/19/2024 3,000,000                        3,000,000 1.4%           2,999,310 5.00% 5/19/2025 11/19/2029 FNMA Bond 3135GAYV7 11/26/2024 3,000,000                        3,000,000 1.4%           2,999,160 5.25% 5/26/2025 11/26/2029 FFCB Bond 3133ERF48 12/4/2024 2,000,000                        2,000,000 1.0%           2,002,800 4.77% 12/4/2025 12/4/2028 FHLMCMTN Bond 3134HAM91 12/13/2024 2,000,000                        2,000,000 1.0%           1,998,260 4.70% 6/13/2025 12/13/2027 FNMA Bond 3136GA4B2 12/20/2024 2,000,000                        2,000,000 1.0%           2,000,260 5.01% 6/20/2025 12/20/2029 FNMA Bond 3136GA6M6 1/24/2025 2,000,000                        2,000,000 1.0%           1,999,320 5.00% 7/24/2025 7/24/2028 FHLB Bond 3130B4MZ1 1/30/2025 2,000,000                        2,000,000 1.0%           2,000,340 5.25% 7/22/2025 1/22/2030 FNMA Bond 3136GAAN9 2/13/2025 2,000,000                        2,000,000 1.0%           1,999,720 5.05% 8/13/2025 2/13/2030 FNMA Bond 3136GABM0 2/25/2025 2,000,000                        2,000,000 1.0%           2,001,640 5.06% 8/25/2025 2/25/2030 FHLB Bond 3130B5A73 2/26/2025 2,000,000                        2,000,000 1.0%           2,009,120 4.75% 8/26/2026 2/26/2030 FHLMCMTN Bond 3134HBBE0 3/11/2025 2,000,000                        2,000,000 1.0%           1,998,540 4.88% 12/11/2025 3/11/2030 FNMA Bond 3136GABW8 3/12/2025 2,000,000                        2,000,000 1.0%           2,005,860 5.00% 12/12/2025 3/12/2030 FHLB Bond 3130B5KK3 3/26/2025 2,000,000                        2,000,000 1.0%           2,000,640 5.21% 9/26/2025 3/26/2030 FHLMCMTN Bond 3134HBHG9 4/9/2025 2,000,000                        2,000,000 1.0%           1,998,660 4.50% 7/9/2025 4/9/2027 FHLMCMTN Bond 3134HBKF7 4/16/2025 2,000,000                        2,000,000 1.0%           1,998,700 4.50% 7/16/2025 4/16/2027 FFCB Bond 3133ETDL8 4/17/2025 2,000,000                        2,000,000 1.0%           2,000,880 4.87% 10/17/2025 10/17/2029 FHLB Bond 3130B64X1 4/30/2025 2,000,000                        2,000,000 1.0%           1,999,260 4.50% 10/17/2025 4/17/2028 CD ‐ Morgan Stanley Bank 61690DGT9 11/8/2023 250,000                              250,000 0.1%               257,460 5.05% 11/8/2028 11/8/2028 CD ‐ Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000                              250,000 0.1%               257,460 5.05% 11/8/2028 11/8/2028 CD ‐ American Express 02589AF98 11/8/2023 250,000                              250,000 0.1%               257,055 5.00% 11/8/2028 11/8/2028 CD ‐ State Bank India 8562834U7 11/24/2023 250,000                              250,000 0.1%               259,660 5.00% 11/24/2028 11/24/2028 Sub Total/Average $    165,063,168 $    165,138,924 78.7% 162,938,657 $    2.80% Total City Managed/Average $    194,589,297 $    194,665,053 92.8% 192,464,840 $    3.03% Bond Reserve Accounts ‐ Held By Trustees $        7,150,070 $        7,150,070 3.4% $        7,150,070 Cash/Deposits $            107,143 $            107,143 0.1% $           107,143 PARS and CALPERS CERBT Trust $        7,887,404 $        7,887,404 3.8% $        9,623,330 GRAND TOTAL/AVERAGE $    209,733,914 $    209,809,669 100.0% 209,345,383 $

Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 4.28% $ 63,225 0.0% $ 63,279 California CLASS All Funds Pooled 4.39% 22,804,594 10.9% 22,804,594 US Bank - Portfolio of Securities All Funds Pooled 2.80% 165,138,924 78.7% 162,938,657 WFB MMA All Funds Pooled 4.23% 6,658,310 3.2% 6,658,310 SUBTOTAL $ 194,665,053 92.8% 192,464,840 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 3.97% 249,367 0.1% 249,367 Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 3.97% 317,377 0.2% 317,377 BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 3.88% 6,173,740 2.9% 6,173,740 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 3.97% 0.2% 409,587 409,587 SUBTOTAL 7,150,070 3.4% 7,150,070
Other Cash/Deposits
General Checking All Funds 61,293 0.0% 61,293
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 2.5% 6,417,119
PARS - PENSION Trust 2,650,000 1.3% 3,206,212
SUBTOTAL 7,994,547 3.8% 9,730,473
Total Cash and Investments $ 209,809,669 100.0% $ 209,345,383

CASH ACTIVITY SUMMARY
FY 2024-25
07/01/2024 Change in 4/30/2025
Fund Type Balance Cash Balance Balance
General Fund $ 30,617,860 $ (3,312,097) $ 27,305,763
Development Services 1,939,319 (342,654) 1,596,665
Water - Operations 2,386,837 437,969 2,824,807
Water Other 27,894,107 6,086,801 33,980,908
Sewer - Operations 1,178,576 1,098,953 2,277,529
Sewer Other 41,964,736 7,018,827 48,983,562
Other Special Revenue 17,038,062 1,646,066 18,684,127
Streets and Capital Projects 39,467,115 (756,520) 38,710,595 Debt Service 346,933 462,438 809,371
Internal Service 27,935,786 31,587 27,967,372
Agency Funds (assessment dists./refundable deposits) 7,240,095 (571,125) 6,668,970 Total $ 198,009,426 $ 11,800,243 $ 209,809,669
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 APRIL 30, 2025
FOR THE FISCAL YEAR OF 2024-25

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% 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 $ 9,425,111 58% $ 11,667,659 $ (2,242,549) -19% 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 304,220 304,220 212,940 70% 205,663 7,277 4% Sales Tax 12,352,215 12,352,215 7,782,601 63% 8,220,501 (437,900) -5% Public Safety Sales Tax 464,254 464,254 295,728 64% 298,175 (2,447) -1% Transient Occupancy Taxes 2,678,000 2,678,000 1,764,787 66% 1,770,297 (5,510) 0% Franchise (Refuse ,Cable ,PG&E) 3,185,872 3,185,872 2,530,671 79% 2,470,726 59,945 2% Property Transfer Tax 600,000 600,000 400,790 67% 321,151 79,639 25% TOTAL TAXES 38,691,361 38,691,361 23,572,663 61% 25,975,071 (2,402,408) -9%

LICENSES/PERMITS
Business License 200,000 200,000 196,896 98% 168,143 28,753 17% Other Permits 80,750 80,750 71,597 89% 39,377 32,220 82% TOTAL LICENSES/PERMITS 280,750 280,750 268,493 96% 207,519 60,974 29%

FINES AND PENALTIES
Parking Enforcement 9,800 9,800 6,708 68% 7,765 (1,057) -14% Bails & Fines 55,000 55,000 30,278 55% 41,807 (11,528) -28% Administrative Citations 20,000 20,000 13,932 70% (13,180) 27,111 -49% TOTAL FINES AND PENALTIES 84,800 84,800 50,918 60% 76,683 (25,765) -34%

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 1,307,809 82% 732,782 575,027 78% TOTAL OTHER AGENCIES 1,394,181 1,663,004 1,380,942 83% 789,468 591,474 75%

CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 25,839 77% 25,938 0% (99) Business License Application Review 82,400 82,400 45,840 56% 85,094 (39,253) -46% Membership Services & Rec Programs 6,222,399 6,222,399 5,262,986 85% 4,973,327 289,659 6% Facility Rentals 1,197,395 1,197,395 1,253,533 105% 1,350,133 (96,600) -7% Community Services 147,498 147,498 126,934 86% 54,929 72,006 131% General Administration Overhead 1,756,111 1,756,111 1,402,425 80% 1,484,891 (82,466) -6% Other Charges Current Services 884,448 884,448 850,438 96% 746,956 103,482 14% TOTAL CURRENT SERVICES 10,323,751 10,323,751 8,967,996 87% 8,721,268 246,728 3%

OTHER REVENUE
Use of money/property 1,375,045 1,375,045 1,263,854 92% 1,198,259 65,595 5% Other Revenues 705,270 705,270 656,049 93% 354,700 301,349 85% TOTAL OTHER REVENUE 2,080,315 2,080,315 1,919,902 92% 1,552,958 366,944 24%

TRANSFERS IN
One Time Transfer 165,000 165,000 137,500 83% 150,000 (12,500) -8% Public Safety Facilities Fund 50,000 50,000 41,667 83% 41,667 0% - Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 100,000 n/a - Countywide Solid Waste 540,328 540,328 450,273 83% 310,833 139,440 45% Streets 851,932 851,932 657,192 77% 492,682 164,510 33% Park Maintenance 650,000 650,000 541,667 83% 541,667 n/a - Sewer Operations 413,700 413,700 344,750 83% 369,065 (24,315) -7% Water Operations 413,700 413,700 344,750 83% 375,496 (30,746) -8% Open Space 81,100 81,100 67,583 83% 67,583 n/a -
Park Development 100,000 100,000 83% 83,333 20,833 62,500 33% TOTAL TRANSFERS IN 3,365,760 3,365,760 2,768,715 82% 2,511,494 257,222 10% TOTAL GENERAL FUND 56,220,919 56,489,742 38,929,630 69% 39,834,461 (904,831) -2%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 851,932 851,932 651,691 76% 618,310 33,381 5% Interest / Other Revenue/Other Charges 2,135 2,135 5,502 258% 5,640 (139) -2% 202 STREET MAINTENANCE 854,067 854,067 657,192 77% 623,951 33,242 5%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% 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 12,720 98% 8,804 3,916 44% Police Grant/SLEF/JAG 100,000 100,000 195% 194,664 3,877 190,787 2% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 112,957 112,957 207,383 184% 199,591 7,793 4% 206 DEVELOPMENT SERVICES
Building Fees 3,510,850 3,510,850 3,419,938 97% 2,726,829 693,110 25% Planning Fees 954,276 954,276 911,732 96% 1,694,701 (782,969) -46% Engineering Fees 942,327 942,327 744,779 79% 474,722 270,057 57% Other Revenue/Current Charges 550,599 550,599 259,959 47% 18,720 241,239 1289% 206 DEVELOPMENT SERVICES 5,958,052 5,958,052 5,336,408 90% 4,914,971 421,437 9% 207 LONG RANGE PLANNING 1,751,005 1,751,005 994,613 57% 770,917 223,696 29% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 1,161 1,161 1,978 170% 1,550 28% 428 215 and 216 HCD BLOCK GRANT 1,161 1,161 1,978 170% 1,550 28% 428 225 ASSET SEIZURE 2,807 2,807 3,010 107% 2,373 27% 637
229 LIGHTING AND LANDSCAPE 206,415 206,415 117,132 57% 115,657 1,474 1% 230 COMMUNITY FACILITIES DISTRICT 28,828 28,828 19,276 67% 30,186 (10,910) -36% 232 ENVIRONMENTAL PROGRAMS 501,236 501,236 421,281 84% 505,211 (83,930) -17% 234 MOBILE HOME PARK RENT STAB. 2,872 2,872 5,884 205% 5,322 11% 562 236 HOUSING MITIGATION 2,762,629 2,762,629 2,013,543 73% 2,651,903 (638,360) -24% 240 EMPLOYEE ASSISTANCE 1,297 1,297 6,050 466% 6,718 (669) -10% 246 COUNTYWIDE SOLID WASTE 2,279,503 2,279,503 1,727,426 76% 1,580,378 147,048 9% 255 HOUSING SUCCESSOR AGENCY 463,881 463,881 395,454 85% 404,313 (8,859) -2% 260 PUBLIC ART 1,411 1,411 580 41% - 580 n/a
TOTAL SPECIAL REVENUE FUNDS 14,928,122 14,928,122 11,907,211 80% 11,816,304 90,907 1%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,999,271 1,999,271 1,968,039 98% 717,909 1,250,130 174% 302 PARK MAINTENANCE 15,507 15,507 69,261 447% 83,833 (14,572) -17% 303 LOCAL DRAINAGE 1,424,799 1,424,799 429,813 30% 452,637 (22,825) -5% 304 LOCAL DRAINAGE/NON AB1600 251,296 251,296 293,552 117% 30,778 262,774 854% 306 AGRICULTURE & OPEN SPACE PRESERVATION 18,459 18,459 1,046,634 5670% 154,405 892,228 578% 308 STREET CIP 3,886,877 3,886,877 3,757,988 97% 2,071,473 1,686,515 81% 309 TRAFFIC IMPACT 4,753,292 4,753,292 2,100,319 44% 838,595 1,261,724 150% 315 PUBLIC SAFETY FACILITIES IMPACT 3,203,214 12,153,214 6,330,668 52% 539,606 5,791,062 1073% 346 PUBLIC FACILITIES NON-AB1600 189,832 189,832 187,331 99% 204,496 (17,165) -8% 347 PUBLIC FACILITIES IMPACT 451,223 451,223 358,076 79% 224,681 133,395 59% 348 LIBRARY 1,414,286 1,414,286 1,388,640 98% 801,618 587,023 73% 350 UNDERGROUNDING 74,302 74,302 83,392 112% 257,141 (173,748) -68% 360 COMMUNITY/REC IMPACT FUND 2,501,528 2,501,528 2,539,146 102% 1,368,455 1,170,690 86% 375 QUIMBY FEE 2,650,042 2,650,042 2,054,661 78% 2,894,534 (839,873) -29% TOTAL CAPITAL PROJECTS FUNDS 22,833,927 31,783,927 22,607,522 71% 10,672,095 11,935,427 112%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 300,467 300,467 249,995 83% 246,019 3,975 2% 441 POLICE FACILITY BOND 390,939 390,939 321,156 82% 323,366 (2,210) -1% TOTAL DEBT SERVICE FUNDS 691,406 691,406 571,151 83% 569,386 1,765 0%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% 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 13,022,762 81% 11,100,257 1,922,505 17% Interest Income/Transfers 141,661 141,661 59,954 42% 46,020 13,934 30% Other Revenue/Current Charges 397,200 397,200 253,748 64% 3,566 250,182 1% 640 WASTEWATER OPERATION 16,638,861 16,638,861 13,336,463 80% 11,396,460 1,940,004 17% 641 WASTEWATER EXPANSION
Interest Income 275,047 275,047 649,978 236% 493,886 156,092 32% Development Impact Fee 11,546,118 11,546,118 82% 9,505,948 4,404,166 5,101,782 86% 641 WASTEWATER EXPANSION 11,821,165 11,821,165 10,155,926 86% 5,595,668 4,560,258 81% 642 WASTEWATER RATE STABILIZATION 108,613 108,613 92,383 85% 230,262 (137,879) -60% 643 WASTEWATER CAPITAL PROJECT 6,149,134 6,149,134 5,661,521 92% 4,644,898 1,016,623 22% TOTAL SEWER FUNDS 34,717,773 34,717,773 29,246,294 84% 21,867,288 7,379,006 34% 650 WATER OPERATION
Water Sales 19,620,000 19,620,000 14,087,754 72% 12,638,569 1,449,185 11% Meter Install & Service 107,000 107,000 70,865 66% 76,872 (6,007) -8% Transfers-In / Interest Income 894,617 894,617 693,524 78% 558,426 135,098 24% Other Revenue/Current Charges 926,109 926,109 620,347 67% (60,097) 680,445 -9% 650 WATER OPERATION 21,547,726 21,547,726 15,472,490 72% 13,954,312 1,518,179 11% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 92,467 92,467 157,789 171% 76,624 81,165 106% Development Impact Fee 3,829,384 3,829,384 3,301,871 86% 1,962,684 1,339,187 147% 651 WATER EXPANSION 3 3,921,851 ,921,851 3,459,659 88% 1,415,811 2,043,849 144% 652 WATER RATE STABILIZATION 115,840 115,840 99,479 86% 77,984 21,496 28% 653 WATER CAPITAL PROJECT 10,380,062 10,380,062 5,563,319 54% 6,139,260 (575,942) -9% TOTAL WATER FUNDS 35,965,479 35,965,479 24,594,948 68% 21,587,366 3,007,582 14% TOTAL ENTERPRISE FUNDS 70,683,252 70,683,252 53,841,242 76% 43,454,654 10,386,588 24%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 2,883,241 2,883,241 2,407,443 83% 2,082,319 325,124 16% 740 BUILDING MAINTENANCE 1,421,485 1,421,485 1,188,679 84% 1,397,930 (209,250) -15% 741 BUILDING REPLACEMENT 1,041,905 1,041,905 877,734 84% 799,114 78,620 10% 745 CIP ADMINISTRATION 2,582,015 2,582,015 1,571,078 61% 1,152,211 418,867 36% 760 UNEMPLOYMENT INSURANCE 10,206 10,206 7,973 78% 6,642 1,331 20% 770 WORKERS COMPENSATION 1,157,705 1,157,705 767,349 66% 790,120 (22,771) -3% 790 EQUIPMENT REPLACEMENT 1,680,580 1,704,881 1,540,783 90% 1,160,686 380,097 33% 791EMPLOYEE BENEFITS 1,183,215 1,183,215 955,113 81% 712,727 242,386 34% 795 GENERAL LIABILITY INSURANCE 2,519,216 2,519,216 2,092,710 83% 1,757,922 334,788 19% TOTAL INTERNAL SERVICE FUNDS 14,479,568 14,503,869 11,408,861 79% 9,859,671 1,549,190 16% TOTAL FOR ALL FUNDS 179,837,194 $ 189,080,318 $ 139,265,615 $ 74% 116,206,571 $ 23,059,045 $ 20%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% 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 25,652 $ 520,395 $ 378,591 $ - $ 378,591 $ 73% 375,888 $ .

CITY ATTORNEY 80,359 1,134,397 808,383 108,580 916,963 81% 716,371 CITY MANAGER 52,649 1,007,624 553,371 6 553,377 55% 570,376 HUMAN RESOURCES 88,609 1,087,175 787,829 - 787,829 72% 708,981

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 50,791 609,913 467,177 - 467,177 77% 420,784 Elections 3,174 354,364 280,131 - 280,131 79% 25,639
COUNCIL SVCS & RECORDS MGMT 53,965 964,277 747,308 - 747,308 77% 446,423 FINANCE 170,753 2,637,291 1,783,891 409,627 2,193,518 83% 1,873,398 TOTAL ADMINISTRATION 471,987 7,351,159 5,059,374 518,212 5,577,587 76% 4,691,437 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 457,073 8,040,818 5,952,318 694,732 6,647,050 83% 5,839,390 Recreation Facility Rentals 44,331 633,051 453,661 31,905 485,566 77% 481,421 Innovative Transit 2,513 590,944 502,975 3,221 506,195 86% 499,682 Community Services 60,984 761,973 489,370 12,100 501,470 66% 492,622 Park Maintenance 78,834 1,472,380 941,351 14,900 956,252 65% 873,951 Environmental Services 45,307 1,067,544 498,654 13,891 512,545 48% 394,012 Countywide Solid Waste Program 37,261 540,327 400,793 - 400,793 74% 327,314 Street Maintenance 256,432 3,511,464 2,766,769 25,971 2,792,740 80% 2,050,106 Downtown Maintenance 22,229 378,065 225,620 12,198 237,818 63% 214,290 PD Building Maintenance 31,230 664,355 491,451 60,138 551,589 83% 421,776 Cable Television 7,569 91,234 75,655 - 75,655 83% 73,700 COMMUNITY SERVICES 1,043,763 17,752,155 12,798,618 869,056 13,667,675 77% 11,668,264 CODE COMPLIANCE 32,944 405,637 323,459 - 323,459 80% 230,489 INFRASTRUCTURE PLANNING & CONGESTION MGMT 555,166 37,526 350,270 - 350,270 63% 335,792 ECONOMIC DEVELOPMENT PROGRAMS 67,257 1,209,072 809,450 64,157 873,607 72% 777,776 TOTAL COMMUNITY SERVICES 1,181,489 19,922,029 14,281,797 933,214 15,215,011 76% 13,012,321 III. PUBLIC SAFETY
POLICE
PD Administration 113,985 2,296,286 1,291,458 41,049 1,332,507 58% 1,313,518 Field Operations 992,471 13,884,900 9,622,520 577,894 10,200,414 73% 9,101,041 Support Services 210,874 2,556,380 2,176,140 438,785 2,614,925 102% 2,284,079 Emergency Services/Haz Mat 23,304 275,047 210,046 - 210,046 76% 196,648 Special Operations 312,998 4,244,340 3,512,758 8,153 3,520,911 83% 2,933,856 Dispatch Services 187,299 2,341,249 1,844,447 - 1,844,447 79% 1,645,044 POLICE 1,840,932 25,598,203 18,657,368 1,065,881 19,723,249 77% 17,474,186 FIRE 817,679 10,381,160 8,492,696 27,376 8,520,072 82% 7,560,486 TOTAL PUBLIC SAFETY 2,658,611 35,979,363 27,150,064 1,093,257 28,243,321 78% 25,034,671 IV. TRANSFERS
Other 121,519 1,458,230 1,215,192 - 1,215,192 83% 2,486,473 TOTAL TRANSFERS 121,519 1,458,230 1,215,192 - 1,215,192 83% 2,486,473 TOTAL GENERAL FUND 4,433,606 64,710,781 47,706,427 2,544,684 50,251,111 78% 45,224,901

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2024-25
For the Month Ended April 30, 2025
83% 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 454 857,383 657,192 - 657,192 77% 497,009 205 PUBLIC SAFETY/SUPP.LAW 113 101,354 101,128 - 101,128 100% 101,074 206 DEVELOPMENT SERVICES FUND
Planning 131,321 1,700,561 1,325,554 2,028 1,327,583 78% 1,325,370 Building 209,596 3,055,890 2,259,457 152,067 2,411,524 79% 1,965,328 Engineering 147,919 1,644,092 1,265,166 159,730 1,424,896 87% 1,404,780 206 DEVELOPMENT SERVICES FUND 488,836 6,400,543 4,850,178 313,824 5,164,002 81% 4,695,479 207 LONG RANGE PLANNING 70,512 3,125,686 956,231 748,029 1,704,260 55% 672,229 215/216 CDBG 7 87 73 - 73 83% 69
225 ASSET SEIZURE 68 821 684 - 684 83% 652
229 LIGHTING AND LANDSCAPE 5,731 212,191 155,041 13,735 168,776 80% 127,683 230 COMMUNITY FACILITIES DISTRICT 2,680 23,511 20,340 - 20,340 87% 35,380 232 ENVIRONMENTAL PROGRAMS 33,950 453,818 334,329 2,023 336,352 74% 342,364 234 MOBILE HOME PARK 79 952 793 - 793 83% 756
236 HOUSING MITIGATION 69,883 2,214,529 960,988 755,518 1,716,506 78% 764,884 240 EMPLOYEE ASSISTANCE 83 20,993 4,328 - 4,328 21% 4,288 246 COUNTYWIDE SOLID WASTE PROGRAM 46,042 2,648,132 1,046,776 1,196,212 2,242,988 85% 1,353,757 255 HOUSING SUCCESSOR AGENCY 125,521 1,319,931 965,883 38,125 1,004,008 76% 1,007,763 260 PUBLIC ART 525 16,306 10,243 - 10,243 63% -
TOTAL SPECIAL REVENUE FUNDS 844,484 17,396,238 10,064,207 3,067,466 13,131,673 75% 9,603,387

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 18,452 3,460,007 671,922 106,720 778,642 23% 516,089 302 PARK MAINTENANCE 54,212 1,650,000 543,817 - 543,817 33% 977,185 303 LOCAL DRAINAGE 19,147 10,931,065 5,569,493 540,230 6,109,723 56% 3,020,905 304 LOCAL DRAIN. NON-AB1600 3,650 505,176 80,035 290,930 370,965 73% 172,710 306 AGRICULTURE & OPEN SPACE PRESERVATIO 128,157 10,680 106,797 - 106,797 83% 81,333 308 STREET CIP 14,316 4,992,517 3,851,468 1,001,459 4,852,927 97% 4,715,952 309 TRAFFIC IMPACT 71,965 4,593,527 3,341,903 387,371 3,729,274 81% 1,087,505 315 PUBLIC SAFETY FACILITIES IMPACT 141,572 8,993,315 5,847,475 2,448,189 8,295,663 92% 3,508,917 346 PUBLIC FAC.NON AB1600 334,389 1,652,085 398,781 197,372 596,154 36% 1,035,810 347 PUBLIC FACILITIES IMPACT 5,219 1,444,333 370,039 1,010,368 1,380,407 96% 126,998 348 LIBRARY IMPACT 17,801 2,713,615 178,013 - 178,013 7% 185,291 350 UNDERGROUNDING 103 401,505 128,250 - 128,250 32% 139,242 360 COMM/REC CENTER IMPACT 45,012 1,430,662 381,179 386,675 767,855 54% 236,512 375 QUIMBY FEE 30,791 6,807,980 1,340,668 2,496,208 3,836,876 56% 270,412 TOTAL CAPITAL PROJECTS FUNDS 767,309 49,703,945 22,809,840 8,865,522 31,675,362 64% 16,102,865

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 284 291,714 244,075 - 244,075 84% 240,068 441 POLICE FACILITY BOND DEBT 375 385,093 331,009 - 331,009 86% 325,576 TOTAL DEBT SERVICE FUNDS 659 676,807 575,084 - 575,084 85% 565,645