Morgan Hill City Council
November 5, 2025

City Council
Special/Regular Meeting Agenda
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, November 5, 2025
5:00 p.m. Closed Session
6:00 p.m. Regular Session
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person with the option for the public to attend in-person or participate by teleconference/video conference. Information on how the public may observe and participate in the meeting is below.

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

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

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

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

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

November 5, 2025
2 minutes. Dial *6 to unmute.

PUBLIC COMMENT
Public comment may be offered verbally at the meeting or in writing before the meeting.

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

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

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

Written public comment may be submitted to the City Clerk:
• In person at the City Council Meeting;
• Via email to [email protected]; or
• Hand delivered or mailed to the City Clerk at 17575 Peak Avenue, Morgan Hill, CA 95037
Please email your comments to the City Clerk no later than 3:00 p.m. on Tuesday (the day before the City Council meeting) so that your comments can be submitted to the members of the City Council with sufficient time to review them. You may continue to provide written comments up to noon on Wednesday (the day of the meeting), although Council Members may not have sufficient time to review them before the meeting.

Public comments submitted to the City Clerk after noon (12:00 p.m.) the day of the meeting will be provided to the City Council as time allows.

Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City's website. It is recommended that you do not include any personal information that you do not want to be posted on the web. Please be advised that communications directed to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under the applicable law. Communications

November 5, 2025
3 will NOT be edited for redactions and will be printed/posted as submitted.

AMERICANS WITH DISABILITIES ACT (ADA)
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk's Office at (408)779-7259 or by email at [email protected]. Requests must be made as early as possible and at least two full business days before the start of the meeting.

SPECIAL/REGULAR MEETING
A special meeting of the City Council is 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

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

CLOSED SESSION

CONFERENCE WITH LABOR NEGOTIATORS
Authority: Pursuant to 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; Employees Covered under Management Resolution #23-051

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION

ADJOURN TO CLOSED SESSION

REGULAR MEETING
6:00 p.m.

November 5, 2025
4 SILENT INVOCATION

PLEDGE OF ALLEGIANCE

CITY COUNCIL REPORTS
Council Member Martinez Beltran

CITY MANAGER'S REPORT

CITY ATTORNEY'S REPORT

OTHER REPORTS

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
This opportunity for public comment is for items that are not on the agenda. If you would like to make comments on an item that is on the agenda, please wait until we get to that item to offer your comments. Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. Public comment is intended for comments. Questions posed during public comment are not generally answered. If you have questions, please send them to the City Clerk at [email protected] to receive a response. (See additional noticing at the end of this agenda)

ADOPTION OF AGENDA

CONSENT CALENDAR
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.

1. ACCEPTANCE OF 2023 INFLOW AND INFILTRATION SANITARY SEWER PROJECT IN THE AMOUNT OF $2,634,308
Recommendation:

1. Accept as complete the 2023 Inflow and Infiltration Sanitary Sewer Project;

2. Authorize the City Engineer to sign the Notice of Completion; and

November 5, 2025
5 3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.

2. APPROVE FINAL MAP FOR DIANA AVENUE SINGLE FAMILY HOMES - TRACT NO. 10669 AND RELATED SUBDIVISION IMPROVEMENTS

AGREEMENT
Recommendation:

1. Approve the Final Map;

2. Authorize the City Manager to execute the Subdivision Improvements Agreement with MH Diana 2025 Inc., a California Corporation; and

3. Authorize the recordation of the Final Map and the Subdivision Improvements Agreement.

3. APPROVE SECOND AMENDMENT TO HOUSING-RELATED CONSULTANT

AGREEMENT FOR LEGAL SERVICES
Recommendation:

Approve and authorize the City Manager to execute and administer a second amendment to the Burke, Williams & Sorensen, LLP housing-related consultant agreement for legal services to increase the amount from $60,000 to $220,000.

4. APPROVE MEMORANDUM OF UNDERSTANDING (MOU) WITH MORGAN

HILL AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL

EMPLOYEES (AFSCME) AND MOU WITH COMMUNITY SERVICE

OFFICERS' ASSOCIATION (CSOA) AND CORRESPONDING SALARY

SCHEDULES
Recommendation:

1. Approve a MOU with AFSCME effective December 21, 2025 - December 31, 2028 and corresponding salary schedules; and

2. Approve a MOU with CSOA effective December 21, 2025 - December 31, 2028 and corresponding salary schedules.

5. APPROVE THE OCTOBER 15, 2025 AND OCTOBER 22, 2025 CITY

COUNCIL MEETING MINUTES
Recommendation:

Approve the October 15 and October 22, 2025 City Council Meeting Minutes.

OTHER BUSINESS

November 5, 2025
6 6. APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE SANTA

CLARA VALLEY OPEN SPACE AUTHORITY FOR A PUBLIC ACCESS

PARTNERSHIP ON DEVELOPMENT OF THE EL TORO MOUNTAIN AREA Recommendation:

Authorize the City Manager to execute and administer a Memorandum of Understanding with the Santa Clara Valley Open Space Authority for a partnership on public access development of the El Toro Mountain area.

7. 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.

8. INTRODUCE ORDINANCE AMENDING CHAPTER 5.28 (AMUSEMENT AND

ENTERTAINMENT PREMISES) OF THE MUNICIPAL CODE
Recommendation:

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

2. Introduce the Ordinance.

PUBLIC HEARINGS

9. INTRODUCE ORDINANCES APPROVING THE FOLLOWING CITYINITIATED ZONING AMENDMENTS:

CONDIT - AUTO PARK: PLANNED DEVELOPMENT (PD) ZONING

AMENDMENT TO THE DEVELOPMENT PLAN FOR THE AUTO PARK

PLANNED UNIT DEVELOPMENT (PUD) LOCATED ON THE SOUTHWEST CORNER OF CONDIT ROAD AND DIANA AVENUE (ZA2025-0001)
CONDIT - CONDIT ROAD: PLANNED DEVELOPMENT (PD) ZONING

AMENDMENT TO THE DEVELOPMENT PLAN FOR THE CONDIT ROAD

PLANNED UNIT DEVELOPMENT (PUD) LOCATED ON THE WEST SIDE OF CONDIT ROAD BETWEEN E. DUNNE AVENUE AND TENNANT AVENUE
(ZA2025-0002)
LAUREL - HONDA: PLANNED DEVELOPMENT (PD) ZONING AMENDMENT

TO THE ALLOWED USES OF THE HIGHWAY COMMERCIAL - CH (PD)

OVERLAY ZONE ON THE EASTERLY TERMINUS OF LAUREL ROAD
(ZA2025-0005)
Recommendation:

November 5, 2025
7 1. Open/close public hearing;

2. Waive first and second reading of the Zoning Amendment ZA2025-0001:

Condit – Auto Park PUD;

3. Introduce Ordinance approving Zoning Amendment ZA2025-0001;

4. Waive first and second reading of the Zoning Amendment ZA2025-0002:

Condit – Condit Road PUD;

5. Introduce Ordinance approving Zoning Amendment ZA2025-0002;

6. Waive first and second reading of the Ordinance approving Zoning Amendment ZA2025-0005: Laurel Road – Honda PUD; and

7. Introduce Ordinance approving Zoning Amendment ZA2025-0005.

10. INTRODUCE ORDINANCE TO AMEND THE TENNANT STATION PLANNED

UNIT DEVELOPMENT (PUD) TO MODIFY THE MAXIMUM SQUARE

FOOTAGES ALLOWED FOR THREE MAJOR USES AND ADD AN

ADMINISTRATIVE FUNCTION TO MAKE MINOR CHANGES TO SQUARE

FOOTAGES IN THE FUTURE
Recommendation:

1. Open/close public hearing;

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

3. Introduce Ordinance amending the Tennant Station Planned Unit Development.

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

ADJOURNMENT

November 5, 2025
8 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item described in the notice of this meeting during consideration of that item. If you wish to address the Council on any item on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk before the City Council discussion on the item. You are not required to give your name on the speaker card to speak to the Council, but it is very helpful. When you are called, proceed to the podium, and the Mayor will recognize you. If you wish to address the City Council on any other item of interest to the public, you may do so during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less.

Please submit written correspondence to the Minutes Clerk, who will distribute correspondence to the City Council.

Persons interested in proposing an item for the City Council agenda should contact a member of the City Council who may request an item on the agenda for a future City Council meeting. Council discussion or action may not be taken until your item appears on an agenda. This procedure is in compliance with the California Public Meeting Law (Brown Act) Government Code §54950.

City Council Policies and Procedures (CP 03-01) outlines the procedure for the conduct of public hearings.

Notice is given, pursuant to Government Code Section 65009, that any challenge of Public Hearing Agenda items in court, may be limited to raising only those issues raised by you or on your behalf at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the Public Hearing on these matters.

The time within which judicial review must be sought of the action by the City Council, which acted upon any matter appearing on this agenda is governed by the provisions of Section 1094.6 of the California Code of Civil Procedure.

For a copy of City Council Policies and Procedures CP 97-01, please contact the City Clerk’s office (408) 779-7259, (408) 779-3117 (fax) or by email [email protected].

November 5, 2025
9

1 CITY COUNCIL STAFF REPORT
MEETING DATE: November 5, 2025
PREPARED BY:

Yat Cho, Senior Project Manager
APPROVED BY: City Manager
ACCEPTANCE OF 2023 INFLOW AND INFILTRATION SANITARY
SEWER PROJECT IN THE AMOUNT OF $2,634,308

RECOMMENDATION(S)

1. Accept as complete the 2023 Inflow and Infiltration Sanitary Sewer Project;

2. Authorize the City Engineer to sign the Notice of Completion; and

3. Direct the City Clerk to file said Notice of Completion with the County Recorder's Office.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
Guiding Documents
Wastewater System Master Plan
REPORT NARRATIVE:

On April 19, 2023, the 2023 Inflow and Infiltration Sewer Repair Project was awarded to Pacific Underground Construction, Inc. in the amount of $2,387,620 with an authorized contingency of $250,000. The project resulted in sewer main repairs at 19 locations within the City (See Attachment 1).

The project began in July 2023 and was substantially completed in July 2025. Four change orders were authorized in the amount of $246,688 (See Attachment 2) due to unforeseen conditions at various locations along with additional sewer main repair work in the Jackson Oaks Area and 16 mortar manhole rehabilitations at various locations within the City.

The final construction contract with Pacific Underground Construction is $2,634,308.

Staff recommends accepting this project as it is complete in accordance with the plans and specifications. By accepting this project, the City Clerk will file a Notice of Completion for the Project (See Attachment 3).

1 COMMUNITY ENGAGEMENT:

The 2023 Inflow and Infiltration Sewer Repair Project occurred within residential neighborhoods and businesses. Staff worked with the contractor to minimize inconveniences to residents and provide email and door notifications prior to any construction activities. Staff also provided regular updated construction information weekly through Nextdoor and on the City’s website.

ALTERNATIVE ACTIONS:

Accepting the project in accordance wth the contract documents is a required process that enables the City to release any retained funds owed to the contractor, as per California Public Contract Code Section 7107.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

June 17, 2020 - City Council adopted the Capital Improvement Budget which includes the proposed sewer projects.

April 19, 2023 - City Council awarded 2023 Inflow and Infiltration Sanitary Sewer Project.

FISCAL AND RESOURCE IMPACT:

The final contract amount for the 2023 Inflow and Infiltration Sewer Rehabilitation Project is $2,634,308 (including four change orders in the amount of $246,688). The project was awarded to Pacific Underground Construction, Inc. in the amount of $2,387,620 with an authorized contingency of $250,000 (Total of $2,637,620). The balance of $3,312 will be returned to the CIP Fund (643).

CEQA (California Environmental Quality Act):

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

Murphy Ave
(San Pedro Ave to Barrett Ave)
Condit Rd
(San Pedro Ave to Barrett Ave)
G:\R-14\Proj\GIS\Agustin\I&I.mxd
Engineering and Utilities Department
CIP Engineering Division
2023 Inflow and Infiltration
Sewer Project O
1,800 0 1,800 3,600 5,400 900
Feet
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community

1. 17519 Del Monte Ave.

2. 80 W. Central Ave.

3. Del Monte/ W 2nd St.

4. 17799 Florence Ct.
10 3
11 6
4 2
1 7
8 5

5. 18525 Old Monterey Rd.

6. 18663 Castle Lake Dr.

7. 17065 Creekside Cir.

8. 16310 Monterey Rd.

9. Cochrane Rd.

10. Eagle View Dr.

11. 18790 Alicante Cir.

12. 16650 Trail Dr.

13. 2245 Brega Ln.

14. Tassajara Cir.

15. Diana Ave.
9 12
13 14
15

G:\R-14\Proj\GIS\Agustin\2022 pvmnt.mxd
Engineering and Utilities Department
CIP Engineering Division
2023 Inflow and Infiltration
Sewer Project O
4,500 0 4,500 9,000 13,500 2,250
Feet
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community

16. El Pajaro Ct @ Trail.

17. 15800 Sunyside Ave.

18. 1140 Appian Way.

19. 8090 Tahoe Way.
16 17
19 18

CIP Contract Acceptance
Funding Closeout Statement
Project: 2023 Inflow and Infiltration Sanitary Sewer Project Project No: 302018
Date of Project
Award: 19-Apr-23 Project AwardAmount: $2,387,620
Funding Source: 643
Contingency
Authorized: $250,000
Date of Project
Acceptance: 5-Nov-25 Total Authorized: $2,637,620
Actual Base
Contract Spent: $2,387,620
Change Orders
Description Date
Council Approval
Reqd? (Y/N)
C.O. #1:

Mortar Manhole Rehab (16 locations),
Unforseen Condition at Various Locations,
Add/Deducts to Project Bid Schedule, and
additional 32 LF at Monterey Road/Barrett
Avenue
1-Jul-24 N $48,811.44
C.O. #2
Add Replacement of approximately 350' of 8"
Sewer Main at Oak Hill Court Open Space.

Unforseen Condition, and Add/Deduct to
Project Bid Schedule
1-Oct-24 N $105,688.47
C.O. #3: Work Related to Fisher Basin 11-Nov-24 N $56,985.00 C.O. #4:

Additional Time and Material Work at Oak Hill
Open Space and other time and material work to
complete project
29-Apr-25 N $35,203.02

Total C.O.: $246,687.93
Additional Appropriations
Source Amount Date
None
Total Construction
Amount (Base
Contract plus
CO's): $2,634,307.93
Construction Fund Balance: $3,312.07

Recording Requested By:
___________________________
When Recorded Mail To:
___________________________
___________________________
___________________________
___________________________
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

NOTICE OF COMPLETION
Civil Code §§ 9204 and 9208
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is the agent of the Owner of the Project described below.

2. Owner’s full name is City of Morgan Hill (“City”).

3. Owner’s address is 17575 Peak Ave., Morgan Hill, CA 95037.

4. The nature of Owner’s interest in the Project is:

XX Fee ownership __ Lessee __ Other:______________

5. Construction work on the Project performed on Owner’s behalf is generally described as follows: Sewer Main Repairs at various locations within the City of Morgan Hill.

6. The name of the original Contractor for the Project is: Pacific Underground Construction, Inc. located at 1817 Stone Avenue Morgan Hill, CA 95125.

7. The Project was accepted as completed on: November 5, 2025.

8. The Project is located within the City of Morgan Hill.

Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct.
__________________________ ________________________________ Date Signature
Scott Creer – City Engineer

EXEMPT FROM NOTARY ACKNOWLEDGMENT REQUIREMENTS PER
GOVERNMENT CODE § 27287 AND CIVIL CODE § 9208

2 CITY COUNCIL STAFF REPORT
MEETING DATE: November 5, 2025
PREPARED BY:

Nolen Ugalde, Assistant Engineer
APPROVED BY: City Manager

APPROVE FINAL MAP FOR DIANA AVENUE SINGLE FAMILY HOMES
- TRACT NO. 10669 AND RELATED SUBDIVISION IMPROVEMENTS

AGREEMENT

RECOMMENDATION(S)

1. Approve the Final Map;

2. Authorize the City Manager to execute the Subdivision Improvements Agreement with MH Diana 2025 Inc., a California Corporation; and

3. Authorize the recordation of the Final Map and the Subdivision Improvements Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Economic Development and Tourism
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

The Diana Avenue Single Family Homes - Tract No. 10669 (also known as the “Diana – Dividend Residential Project”) is a residential development consisting of 23 single-family homes. The project is located on the southeast corner of the intersection of Diana Avenue and Cayman Street at 730 Diana Avenue and the southern portion of 760 Diana Avenue, as shown on the attached Site Map (Attachment 1).

Subdivision Improvements Agreement
The project's Subdivision Improvements Agreement (Attachment 2) requires the development to construct various public improvements along Diana Avenue and the new Cayman Street extension, including, but not limited to, curb and gutter, sidewalk, and streetlights, etc. These improvements will need an offer of dedication to the City for appropriate rights-of-ways, easements, or other interests in real property.

2 Final Map
The Developer, MH Diana 2025 Inc., has completed all the conditions specified in the project's Tentative Map (Resolution 25-04) which was approved by the Planning Commission, and the conditions in the Design Permit (Approval Certificate 25-003), which the Development Services Director administratively approved.

The City Council is required to approve the Final Map (Attachment 3) if it conforms to all requirements of the Subdivision Map Act and any conditions of approval for the Tentative Map.

The Developer has furnished the City with the necessary documents to complete the processing of the Final Map and has made provisions to provide the City with the required fees, security, and insurance before the Final Map is recorded. The Final Map conforms to the requirements of the Subdivision Map Act, and the conditions of approval have been met.

Staff recommends that the City Council approve the Final Map and authorize the City Manager to sign the Subdivision Improvements Agreement pending review and approval by the City Attorney.

COMMUNITY ENGAGEMENT:

Inform
The Planning Commission approved the project's Tentative Map (Resolution 25-04) at its February 25, 2025 meeting. The project's Design Permit (Approval Certificate 25- 003) was separately approved, administratively, by the Development Services Director on March 7, 2025. The project was publicly noticed, including a mailing to property owners within 600 feet of the project.

ALTERNATIVE ACTIONS:

There is no feasible alternative action as the Developer has met the requirements of the Tentative Map conditions approved by the Planning Commission to file for a Final Map approval and has furnished the necessary documents to complete the processing of the Subdivision Improvements Agreement.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

November 6, 2024 — City Council approved Resolution No. 24-037 approving 18 development standard waivers and one concession request for the project containing 14 percent affordable units.

February 25, 2025 — The Planning Commission adopted Resolution No. 25-04 approving the project's Tentative Map.

FISCAL AND RESOURCE IMPACT:

Development review costs for this project are paid for from development processing fees.

2 CEQA (California Environmental Quality Act):

Project
A Modified Initial Study/15183 Checklist prepared for the Project was completed in compliance with CEQA Guidelines Section 15183 and the project was found to be exempt from further environmental review consistent with state and local guidelines implementing CEQA.

S T A T E OF CA L I FOR N I A

REGISTERED PROFESS IONAL ENGINE
R
No. 58879
CIVI L
SCOTT C. CRE
R

0 SCALE 1" = 40'
40 80
FEET

scale 1" = 20'
20 0 20
feet
40

3 CITY COUNCIL STAFF REPORT
MEETING DATE: November 5, 2025
PREPARED BY:

John Lang, Housing and Economic Mobility Director
APPROVED BY: City Manager

APPROVE SECOND AMENDMENT TO HOUSING-RELATED

CONSULTANT AGREEMENT FOR LEGAL SERVICES

RECOMMENDATION(S)
Approve and authorize the City Manager to execute and administer a second amendment to the Burke, Williams & Sorensen, LLP housing-related consultant agreement for legal services to increase the amount from $60,000 to $220,000.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Affordable Housing and Homelessness
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

The City of Morgan Hill’s Housing Program has historically contracted with Burke, Williams & Sorensen (BWS), LLP to prepare documents relating to Affordable Housing Agreements, Settlements, Loan Agreements, and, more recently, Inclusionary Housing Agreements, legal counsel for Rent Hearing panels, as well as assisting with the review of various real estate transfer documents. With an increase in the need for various housing-related legal services, staff is recommending a Second Amendment to the housing-related legal services agreement with Burke, Williams & Sorensen, LLP for an amount not to exceed $220,000, for services through June 30, 2026.

The services to be performed by Burke, Williams & Sorensen shall consist of the following:
• Review and drafting of loan agreements and related documents in connection with the City’s provision of financing of affordable housing developments. • Implementation of the Inclusionary Housing Ordinance. • Drafting of documents in connection with the effective maintenance of the City’s

3 affordable housing program.
• Providing legal counsel regarding compliance with state and federal housing law and regulations pertaining to affordable housing transactions, fair housing laws, etc.
• Review and negotiation of lender and investor documents, escrow processing, and closings for affordable housing transactions.
• Review and compliance of new housing legislation, general assistance to Housing and Development Services staff, and related services, as may be authorized by the City Attorney.

Within the calendar year, three areas required additional legal services, resulting in expenditures that exceeded traditional annual spending norms. For the first time in 16 years, the City received a request to conduct a Rent Hearing under the Mobile Home Rents Ordinance. Legal services were required to staff the hearing and provide legal guidance related to the City's ordinance. Additional legal services have been required to support the Below Market Rate (BMR) program for ownership homes being transferred and or rented in violation of the deed restriction. Lastly, Eden Housing closed financing on Magnolia's Housing project, which included a $600,000 loan from the City of Morgan Hill. Burke, Williams & Sorenson were instrumental in navigating the loan documents and other legal agreements associated with the project.

Legal services supporting the City's Affordable Housing program are funded through Housing funds, not the General Fund. The current contract with Burke, Williams & Sorenson is for $60,000, and the City has expended all funds. The proposed Amendment would increase the contract to $220,000.

COMMUNITY ENGAGEMENT:

This report services to inform the community of the proposed contract amendment to increase the dollar amount for outside legal services specific to the Housing Division.

ALTERNATIVE ACTIONS:

The Council could alternatively choose not to approve the contract amendment and direct staff to seek another qualified firm for these legal services.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 18, 2020, City Council approved a contract with Burke, Williams & Sorenson for $75,000 to provide legal services through June 30, 2022. Following June 30, 2022, annual contracts with Burke, Williams & Sorenson in the amount of $60,000 have been executed under the City Attorney's signature authority.

FISCAL AND RESOURCE IMPACT:

The legal services that support the housing program provided by Burke, Williams & Sorenson are funded through Housing funds, not through the General Fund. The Second Amendment would increase the maximum compensation to Burke, Williams & Sorenson from $60,000, for an amount not to exceed $220,000.

3 CEQA (California Environmental Quality Act):

Not a Project – CEQA does not apply to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

1 SECOND AMENDMENT TO AGREEMENT

BURKE, WILLIAMS & SORENSEN, LLP
This SECOND AMENDMENT TO AGREEMENT is entered into and becomes effective on ______________________ (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and BURKE, WILLIAMS & SORENSEN, LLP, a California limited liability partnership ("CONSULTANT"). CITY and CONSULTANT may sometimes be referred to collectively herein as the "Parties" and individually as a "Party."

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

1. This Second Amendment to Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on _________________, ______, 2025.

2. The CITY and CONSULTANT entered into that “CONSULTANT AGREEMENT FOR LEGAL SERVICES” made as of May 6, 2024, for consultant services for a maximum compensation of Sixty Thousand Dollars (“CONSULTANT AGREEMENT FOR LEGAL SERVICES”).

3. The CITY and CONSULTANT entered into a “First Amendment to Agreement” made as of June 23, 2025, under which the CONSULTANT’S the billing rates were increased and the term of the Agreement extended until June 30, 2026. The CONSULTANT AGREEMENT FOR LEGAL SERVICES and the First Amendment thereto are attached as Exhibit "1" to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

A. Paragraph 1 shall be amended to update the Effective Date of the Agreement to May 6, 2024, to reflect the most recent version of the Consultant Agreement for Legal Services.

The end date of the Agreement remains until June 30, 2026, as amended in the First Amendment to Agreement.

B. Paragraph 4.1 shall be amended to reflect the increased total compensation that shall not exceed TWO HUNDRED TWENTY THOUSAND DOLLARS ($220,000.00).

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

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

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

TWO SIGNATURES ARE REQUIRED FOR CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER, OR ASSISTANT TREASURER.

ATTEST: THE CITY OF MORGAN HILL
Michelle Bigelow, City Clerk Dorothy Ma, Deputy City Attorney Date: Date:

BURKE, WILLIAMS & SORENSEN,
LLP
By:

Title:

Date:

By:

Title:

Date:

Docusign Envelope ID: 50BA84C7-1F82-4 70F-8F29-5D71 C6C8D512

FIRST AMENDMENT TO AGREEMENT

BURKE, WILLIAMS & SORENSEN, LLP
This FIRST AMENDMENT TO AGREEMENT is entered into and becomes effective on 6/23/2025 (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and BURKE, WILLIAMS & SORENSEN, LLP, a California limited liability partnership, ("CONSULTANT"). CITY and CONSULTANT may sometimes be referred to collectively herein as the "Parties" and individually as a "Party."

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

1. This First Amendment to Agreement is entered into based upon the authority of the City Attorney pursuant to Chapter 2.09 of the Morgan Hill Municipal Code.

2. The CITY and CONSUL TANT entered into that "CONSUL TANT AGREEMENT FOR LEGAL SERVICES" made as of March 30, 2023, for consultant services for a maximum compensation of Sixty Thousand Dollars ($60,000.00) ("CONSUL TANT AGREEMENT FOR LEGAL SERVICES"). The CONSUL TANT AGREEMENT FOR LEGAL SERVICES thereto is attached as Exhibit "1" to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

A. Paragraph 1 shall be amended and replaced in its entirety by the following:
"1. Term of Agreement. This Agreement shall be effective and cover services rendered from March 30, 2023, until June 30, 2026, subject to the provisions of Section 4.4 [Termination] of this Agreement. The City Attorney is authorized to extend the term of this Agreement. Any such extension shall be in writing and signed by both parties to this Agreement." B. Paragraph 4.1 and 4.2. shall be amended to have all references to "Exhibit B" be updated to reference the revised rates and basis set forth in Exhibit "B-1" effective July 1, 2025, that is incorporated herein by this reference.

C. Paragraph 11 shall be amended and replaced in its entirety by the following:
"11.1 CONSUL TANT states that it does not represent clients with adverse interests to the CITY.

11.2 CONSUL TANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement including, without limitation, complying with California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations 1 EXHIBIT 1

Docusign Envelope ID: 50BA84C7-1F82-4 70F-8F29-5D71 C6C8D512 section 18700 et seq.).

11.3. CONSUL TANT will further comply and will ensure that its agents and its subcontractors comply, with California Government Code section 84308 ("Levine Act") and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 - 18438.8)." D. Paragraph 12 shall be amended to update the name and address to Lisa N. Maxwell, 1999 Harrison Street, Suite 1650, Oakland, CA 94612.

2. Conflicts. In the event of a conflict between the terms and provisions of this First Amendment to Agreement and the terms and provisions of the CONSUL TANT AGREEMENT FOR LEGAL SERVICES the terms of this First Amendment to Agreement shall govern and control.

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

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

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Docusign Envelope ID: 50BA84C7-1F82-4 70F-8F29-5D71 C6C8D512 5 ,Counterpart Signatures. This Agreement may re signed i1 multiple counterparts, which shall, when executed tty all the Parties, constitute a single binding agreement.

N WITNESS THEREOF, these parties have executed this Agreement 01 the day and year shown below.

TWO SIGNATURES ARE REQUIRED FOR CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER, OR ASSISTANT TREASURER.

ATTEST:

Signed by:
fLti� t,i,µJ>w
@l!tl�n�oB�, City Clerk
Date: 6/24/2025
3 THE CITY OF MORGAN HILL
�::;m�
rmf'd=�15t:.,�rkin, City Attorney
Date: 6/23/2025

BURKE, WILLIAMS & SORENSEN, LLP
By:

Tit I --.:.--�=-,;=.!....:.,.-'"'\--�'-'---"-'--""=---- � 1/ /,�
By: Lisa N. Maxwell
Title: .:.....=:....:;...;.;:;.;.__ ________ _ Partner
Date: 06/23/2025

Docusign Envelope ID: 50BA84C7-1F82-4 70F-8F29-5D71 C6C8D512 Partners:

Senior Associates
EXHIBIT B -1

HOURLY BILLING RATES
BURKE, WILLIAMS & SORENSEN, LLP Rates
for Legal Services, effective July 1, 2025
Rates Cost-Recovery Rates*
$430 per hour $510 per hour
(years 4+) $380 per hour $465 per hour
Junior Associates (years 1-3): $355 per hour $450 per hour Paralegals: $230 per hour $265per hour
*Cost-recovery rates apply to work done for a particular matter where a third-party pays or reimburses the City for its legal fees, e.g. inclusionary housing agreements, etc. 11

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1 EF873706FD2

CONSUL TANT AGREEMENT FOR LEGAL SERVICES

BURKE,WILLIAMS & SORENSEN, LLP
THIS AGREEMENT is made and entered into as of this __ day of 51612024 2024, ("Effective Date"), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and BURKE, WILLIAMS & SORENSEN, LLP, a limited liability partnership ("CONSUL TANT"). CITY and CONSULTANT may sometimes be referred to collectively herein as the "Parties" and individually as a "Party."

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

1. This Agreement is entered into pursuant to the authority of the City Attorney pursuant to Chapter 2.09 of the Morgan Hill Municipal Code.

2. CONSULTANT is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by CONSUL TANT in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of the CONSULTANT'S profession. By delivery of completed work, CONSUL TANT certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term of Agreement. This Agreement shall cover services rendered from the Effective Date until June 30, 2025, subject to the provisions of Section 4.4 [Termination) of this Agreement.

The City Attorney is authorized to extend the term of this Agreement. Any such extension shall be in writing and signed by both parties to this Agreement.

2. Services to be Provided. The services to be performed by CONSUL TANT shall consist of the following: assist with the review and drafting of loan agreements and related documents in connection with the CITY's provision of financing to and for affordable housing development, assist with the implementation of the lnclusionary Housing Ordinance and drafting of documents in connection with the effective maintenance of CITY' s affordable housing program, assist with the provision of advice regarding compliance with state and federal housing law and regulations pertaining to affordable housing transactions and fair housing law, assist with the review and negotiation of lender and investor documents, assist with escrow processing and closings in affordable housing transactions, assist with the review and compliance of new housing legislation, and provide general assistance to the CITY's Housing and Community Development Division.

3. Compliance with Outside Counsel Retention and Billing Policy. CONSULTANT agrees that it will abide by the Outside Counsel Retention and Billing Policy attached hereto and incorporated herein as Exhibit "A."
1 May 2022
EXHIBIT 1
128-04-24-033

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1 EFB73706FD2

4. 5.

Compensation: CONSULTANT shall be compensated as follows:

4.1. Amount. Compensation for all services, fees and expenses under this Agreement shall not exceed SIXTY THOUSAND DOLLARS ($60,000.00). Compensation shall be on an hourly billing rate, which rates are set forth in Exhibit "B," effective July 1 , 2024, attached hereto and incorporated herein by reference. No rate changes shall be made during the term of this agreement without prior written approval from the CITY. Services or work performed in excess of the total compensation set forth above without written approval of the City Attorney shall be at no cost to CITY.

The City Attorney shall have the authority to increase the maximum compensation allowed to be paid to CONSUL TANT during term of the Agreement, including any extended term, so long as City Council has appropriated sufficient funds therefor, and the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement.

4.2. Payment. For work under this Agreement, payment shall be made per monthly invoice. For extra work not a part of this Agreement, written authorization by CITY will be required, payment shall be based on hourly rates in Exhibit "B."

4.3. Records of Expenses. CONSULTANT shall keep accurate records of payroll, travel, and expenses. These records will be made available to CITY.

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

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

Insurance Requirements.

5.1. Commencement of Work. CONSULTANT shall not commence work under this Agreement until it has obtained CITY approved insurance as outlined below.

Insurance coverages shall remain in full force and effect at all times during the period covered by this Agreement. Any deductibles or self-insured retentions must be declared to and approved by CITY. CONSULTANT shall furnish CITY with copies of all certificates subject to this Agreement, whether new or modified, promptly upon receipt. In the event of a claim or legal action, CONSULTANT shall promptly furnish CITY with copies of all policies outlined herein. No policy subject 2 May 2022

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2 to this Agreement shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY by certified mail.

5.1.1 Insurance Types and Amounts.
a. Commercial general liability. CONSULTANT shall maintain insurance against claims and liabilities for personal injury, death, or property damage, providing protection of at least $1,000,000 combined single limit. Further, CONSULT ANT shall provide proof of the following separate endorsements:
• The CITY, its elected officials, officers, employees, agents, and representatives are named as additional insureds; and,
• the insurer waives the right of subrogation against CITY and CITY'S elected officials, officers, employees, agents, and representatives; and,
• insurance shall be primary non-contributing.
b. Automobile liability. CONSULTANT shall maintain insurance covering all owned, non-owned and hired automobiles against claims and liabilities for personal injury, death, or property damage, providing protection of at least $1,000,000 combined single limit. c. Workers Compensation. CONSULTANT and all subcontractors shall maintain Worker's Compensation Insurance, as required by law.

Further, if the performance of CONSULTANT's work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, CONSULTANT'S presence during site visits and meetings, then CONSULTANT shall provide CITY, prior to commencement of work, with the following separate endorsement:
• The insurer waives the right of subrogation against CITY and CITY'S elected officials, officers, employees, agents, and representatives.
d. Professional liability. CONSULTANT shall maintain either a claimsmade or occurrence liability insurance in the minimum amount of $1,000,000.00 each claim. Further, if CONSULTANT maintains a claims-made policy, CONSULTANT shall provide written evidence of such insurance to CITY for at least five (5) years after the completion of work performed under this Agreement.

5.1.2 Acceptability of Insurers. All insurance required by this Agreement shall be carried only by responsible insurance companies licensed to do business in California. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
3 May 2022

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2

5.1.3 Provision of Agreement to Insurers. CONSULTANT represents and warrants that they have provided a copy of this Agreement to their respective insurers, and the insurers are aware of all obligations pertaining to CONSUL TANT as stated in this Agreement.

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

7. Independent Contractor. It is agreed that CONSULTANT shall act and be an independent contractor and not an agent or employee of CITY. CONSULTANT shall be solely responsible for the performance of its employees, agents, or subcontractors under this agreement.

8. Compliance with Law.

9.1 CONSUL TANT and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement.

CONSUL TANT and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

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

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

Prior Judgments against CONSUL TANT and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING - IN THE FIVE (5) YEARS

PRIOR TO EXECUTING THIS AGREEMENT - THAT CONSULTANT OR ITS

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

SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH - OR HAS

REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN

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

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that CONSUL TANT or an subcontractor it employs to perform work under this Agreement has violated any applicable wage 4 May 2022

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2 and hour law, or CONSUL TANT learns of such a judgment, decision, or order that was not previously disclosed, CONSUL TANT shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. CONSUL TANT and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. The CITY reserves the right to require CONSUL TANT to enter into an agreement with the CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

City's Right to Withhold Payment: Where CONSUL TANT or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, the CITY reserves the right to withhold payment to CONSULTANT until such judgment, decision or order has been satisfied in full.

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

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

9. Maintenance of Records.

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

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

9.3. Ownership of Work Product. All documents or other information developed or received by CONSULTANT for work performed under this Agreement shall be the 5 May 2022

OocuSign Envelope ID: 4CD00517-FO09-4F8A-9C42-1EFB73706FD2 property of CITY. CONSULTANT shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

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

11. Conflict of Interest and Reporting. CONSUL TANT states that it does not represent clients with adverse interests to the CITY.

12. Notices. All notices shall be personally delivered or mailed via first class mail to the addresses listed below. These addresses shall be used for delivery of service of process.

Address of CONSULT ANT is as follows:

Susan E. Bloch
Burke, Williams & Sorensen, LLP
1999 Harrison Street, Suite 1650
Oakland, CA 94612
Address of CITY is as follows:

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

City Clerk
17575 Peak Avenue
Morgan Hill, CA 95037

13. Licenses, Permits and Fees. CONSULTANT shall obtain all permits and licenses to the extent required by ordinances, codes, and regulations of the federal, state, and local government.

14. Familiarity with Work. By executing this Agreement, CONSULTANT warrants that: (1) it has investigated the work to be performed, (2) it has the skills, knowledge, and experience to perform this work competently and fulfill all professional and ethical obligation of attorneys at law in the State of California; and (3) it understands the difficulties, and restrictions of the work under this Agreement. Should CONSULT ANT discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONSULTANT'S risk, until written instructions are received from CITY.

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

16. Limitations Upon Subcontracting and Assignment. Neither this Agreement nor any portion shall be assigned by CONSULTANT without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be void and, at CITY's option, shall terminate this Agreement effective as of the date of such attempted assignment.

17. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement.

18. Indemnification. CONSUL TANT agrees to protect, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, 6 May 2022

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1 EFB73706FD2 expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONSULTANT, CONSULTANT'S agents, officers, employees, subcontractors, or independent contractors hired by CONSUL TANT.

The only exception to CONSULTANT'S responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence of CITY. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT.

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

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

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

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

22. Preservation of Agreement. Should any provision of this Agreement be found invalid or unenforceable, the decision shall affect only the provision interpreted, and all remaining provisions shall remain enforceable.

23. Binding Agreement. Notwithstanding the provisions of Section 16 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of CONSUL TANT in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

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DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2

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

The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the CITY.

IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.
[TWO SIGNATURES ARE REQUIRED FOR CORPORATIONS: (1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER, OR ASSISTANT TREASURER.] ATTEST:
iooelleoBigelow, City Clerk
Date: 5/6/2024
8 THE CITY OF MORGAN HILL
• DocuSigned by:
[ki,v.LJ, lmilA,
oaal:dsA,4uarkin, City Attorney
Date: 5/6/2024
By:

Title: Susan E. Bloch, Partner
Date: April 29, 2024
By:

Title:

Date:

May 2022

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2 A. Retention

EXHIBIT A

CITY OF MORGAN HILL

OUTSIDE COUNSEL BILLING AND RETENTION POLICY
The role of retained counsel will be that of co-counsel with the retaining attorney. (City Attorney). All legal services provided will be pursuant to a written analysis (including strategy and budget) developed by retained counsel in cooperation with the retaining attorney, and approved by the retaining attorney before work on the specified project begins. Retained counsel will also:
1 . Obtain authorization from the retaining attorney before beginning work on any pleading, discovery, motion, or other legal paper, and before securing the services of any expert;

2. Review the above with the retaining attorney prior to use;

3. Provide written status reports on the progress of the litigation to the retaining attorney on the progress of the project as necessary, logical, or requested, but no less frequently than every 60 days;

4. Provide summaries of each deposition taken to the retaining attorney;

5. Coordinate with the retaining attorney to use the legal and paralegal services of the City Attorney's office to keep costs down;

6. Maintain a complete file and provide a copy of all documents generated to the retaining attorney;

7. Make a continuous and diligent attempt to resolve any litigation at the lowest possible cost, with the least expensive professional effort consistent with quality legal representation. To this end, the CITY will be billed for the time of only one attorney at depositions, hearings, trial, and interoffice conferences. Services performed without prior approval of the retaining attorney are not authorized and may not be approved for payment.

From time to time the retaining attorney may direct a departure from the requirements listed above, or may disapprove certain efforts proposed by retained counsel, or may direct efforts with which retained counsel disagrees. The retaining attorney is responsible for these decisions and will consult with the client as appropriate about such matters.

Exhibit A
9

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1EFB73706FD2 B. Billing Requirements
Retained counsel's services must be itemized individually and billed monthly. Each monthly statement must include 1) the name and billing rate of each attorney and paralegal who worked on the matter; 2) the date each service was performed; 3) a brief description of each service performed; 4) the time spent by each attorney and paralegal on each service performed, to the nearest tenth of one hour; 5) itemized costs; and 6) subtotal of fees and costs billed for the month and total for the matter to date.

Retained counsel will be reimbursed customary costs. When authorized, telephone, photocopy, electronic research, and expedited delivery charges may be billed at the actual net cost to retained counsel or a rate approved in advance by the retaining attorney. Charges for approved travel will be at coach rates and automobile mileage will be reimbursed at the CITY's current rate (reflects IRS).

Costs for the following items will not be reimbursed unless approved in advance by the retaining attorney:

Electronic research (Lexis, Westlaw, etc.)
Word processing and photocopying
Secretarial time
Secretarial and paralegal overtime
Express mail and messenger delivery
Travel time in excess of 3 hours per trip
Bills must be submitted to the attention of the retaining attorney, 17575 Peak Avenue, Morgan Hill, California, 95037, in the form discussed above.

C. Contract
Each retained counsel will be required to execute a consultant agreement in a form acceptable to the CITY.

Retained counsel may not bill in excess of the contracted amount without prior written approval from the City Attorney.

Exhibit A
10

DocuSign Envelope ID: 4CD00517-FD09-4F8A-9C42-1 EFB73706FD2

EXHIBIT B

HOURLY BILLING RA TES

BURKE, WILLIAMS & SORENSEN, LLP
Rates for Legal Services, effective July 1, 2024
Rates Rates Cost-Recoverv Rates*
Partners: Cl:A!V, n,:,r hni 1r $515 per hour
Senior Associates (years 4+): $385 per hour $475 per hour Junior Associates (years 1-3): $365 per hour $455 per hour Paralegals: $220 per hour $255 per hour
*Cost-recovery rates apply to work done for a particular matter where a third-party pays or reimburses the City for its legal fees, e.g. inclusionary housing agreements, etc.

Exhibit B
11

4 CITY COUNCIL STAFF REPORT
MEETING DATE: November 5, 2025
PREPARED BY:

Michael Horta, Human Resources Director
APPROVED BY: City Manager

APPROVE MEMORANDUM OF UNDERSTANDING (MOU) WITH

MORGAN HILL AMERICAN FEDERATION OF STATE, COUNTY, AND

MUNICIPAL EMPLOYEES (AFSCME) AND MOU WITH COMMUNITY

SERVICE OFFICERS' ASSOCIATION (CSOA) AND CORRESPONDING

SALARY SCHEDULES

RECOMMENDATION(S)

1. Approve a MOU with AFSCME effective December 21, 2025 - December 31, 2028 and corresponding salary schedules; and

2. Approve a MOU with CSOA effective December 21, 2025 - December 31, 2028 and corresponding salary schedules.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The City’s negotiating team and the AFSCME and CSOA bargaining units have respectively reached agreements related to Memorandums of Understanding (MOUs) for an additional three-year contract period. The new terms for the MOUs are December 21, 2025 through December 31, 2028.

The AFSCME agreement was ratified by AFSCME members on October 22, 2025 and is included as an attachment. The CSOA agreement was ratified by CSOA members on October 31, 2025 and the agreement will be supplemented prior to the City Council meeting. Both of the agreements fall within the negotiating economic parameters given by the City Council. These parameters were based on the “Employee Compensation Guiding Principles” that were adopted by the City Council on May 17, 2017, which

4 included seven guiding principles, including: (1) recruitment and retention, (2) fiscal sustainability, (3) compensation structure, (4) market-based compensation, (5) internal equity, (6) transparency and accountability, and (7) legal compliance.

The total compensation package offered to the bargaining unit members is competitive with that of our twelve local comparator government employers in this region and provides incentive for employees to continue employment with the City of Morgan Hill.

The compensation and benefits provided to our employees allow the City to continue to recruit and retain a quality workforce.

All provisions included in the AFSCME and CSOA MOUs, which affect wages, shall be implemented December 21, 2025.

AFSCME
A summary of the major components of the recommended AFSCME MOU is provided below.
• Base Salary Increases

3.00% effective December 21, 2025

2.00% effective December 20, 2026

1.00% effective December 19, 2027
• CALPERS Cost Sharing - Employee paid Employer Contribution Reduce by 2.00% effective December 21, 2025
Reduce by 3.00% effective December 20, 2026
Reduce by 1.12% effective December 19, 2027
• Deferred Compensation Program: City shall contribute an additional one percent (1.00%) of an employee’s base salary to a 457 Deferred Compensation plan per pay period effective December 19, 2027.
• Health: The City will contribute (monthly) to the City’s health plans up to the following amounts:
2026
Employee + Family $2,947.97
Employee + 1 $2,249.59
Employee Only $1,124.80
Health-In- Lieu (waive)$610
Up to a 6% increase matching the City's contribution to the Kaiser medical premium increase in 2027 and 2028.

4 • Boot Allowance: Increase to $300 per year from $250 per year. • 9/80 Extra Hours: Those working on a 9/80 schedule will be entitled to the number of hours regularly worked as paid time off in observance of the holidays listed. All other employees will receive the additional hours as floating holiday based on the number of holidays that fall on each specific year.

CSOA
A summary of the major components of the recommended CSOA MOU is provided below.
• Base Salary Increases

2.00% effective December 21, 2025

2.00% effective December 20, 2026

2.00% effective December 19, 2027
• CALPERS Cost Sharing- Employee paid Employer Contribution Reduce by 2.00% effective December 21, 2025
Reduce by 2.00% effective December 20, 2026
Reduce by 2.12% effective December 19, 2027
• Deferred Compensation Program: City shall contribute an additional one percent (1.00%) at year 5 and one percent (1.00%) at year 10 of an employee’s base salary to a 457 Deferred Compensation plan per pay period. • Health: The City will contribute (monthly) to the City’s health plans up to the following amounts:
2026
Employee + Family $2,969.65
Employee + 1 $2,392.59
Employee Only $1,126.07
Health-In- Lieu (waive)$715
Up to a 6% increase matching the City's contribution to the Kaiser medical premium increase in 2027 and 2028.
• Training Pay: Increase to 8.00% as a flat rate of base pay from 5.00% of base

4 pay.
• Tactical Dispatcher Pay: 5.00% pay once a month for training and when the employee is called out for tactical dispatch duties.
• Education Incentive Pay Program: Remove "Dispatch" from the P.O.S.T. certificate requirement to provide an incentive to those who qualify with an alternative P.O.S.T certificate.

COMMUNITY ENGAGEMENT:

Inform
The Human Resources Team will post the approved AFSCME and CSOA MOUs and corresponding salary schedules on the Human Resources website page as is the City’s practice for all labor agreements and salary information.

ALTERNATIVE ACTIONS:

Negotiations with represented bargaining units were conducted within the parameters set by the City Council.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 15, 2023, the City Council approved a two-year AFSCME MOU from December 24, 2023 – December 31, 2025, and corresponding salary schedules.

On November 15, 2023, the City Council approved a two-year CSOA MOU from December 24, 2023 – December 31, 2025, and corresponding salary schedules.

FISCAL AND RESOURCE IMPACT:

The fiscal impact of the MOUs and salary schedules are within the City Council’s approved parameters. For the current fiscal year (2025-26), staff anticipate savings from vacancies will sufficiently cover the net cost due to the above negotiated items.

Therefore, no budgetary appropriations are needed. The cost for future years will be built into the upcoming budget. For Fiscal Year (FY) 2026-27, the additional increase to the forecast is approximately $0.2 million to the General Fund and $0.4 million to other funds due to the above negotiated items. For Fiscal Year (FY) 2027-28, the additional increase to the forecast is approximately $0.4 million to the General Fund and $0.5 million to other funds due to the above negotiated items.

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.

4

MEMORANDUM OF UNDERSTANDING
American Federation of State, County,
and Municipal Employees
Local 101, District Council 57
December 2421, 20253 - December 31, 20285

AFSCME

MEMORANDUM OF UNDERSTANDING
December 2421, 20253 – December 31,
20285 TABLE OF CONTENTS
Preamble 3
Article I – Term 3
Article II – Representation 3
Meet & Confer Process 3
Release Time 3
Dues Deduction Process 4
Voluntary Union Dues Deductions 4
Indemnification, Defense and Hold Harmless for Dues Deduction 5 Agreement to Meet and Confer 5
Printing of MOU 5
Article III – Management Rights 5
Article IV – Definitions 6
Salaries, Wages, and Salary and Wages 6
Personnel Rules 6
Article V – Salaries, Wages, & Paid Benefits 6
Holiday Pay 6
Work Furlough 7
Other Pay 7
Certification Pay 7
Weekend and Weeknight Standby Pay 8
Out of Class Pay 9
Special Assignment Pay 9
Bilingual Pay 9
Overtime Pay/Compensatory Time 10
Base Work Schedules 11
Health Benefits 12
Article VI – Educational Incentive Pay Program 13
Educational Incentive Pay Program 13
Tuition Reimbursement 13
Article VII – Types of Leave 13
Sick Leave 13
AFSCME Local 101, Morgan Hill MOU December 214, 20253 – December 31, 20285 Page 1

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 2 20285
Vacation Accrual 14
Extended Leave Policy 15
Bereavement Leave 15
Article VIII – Miscellaneous Benefits 16
CalPERS Retirement Contributions 16
Deferred Compensation Plan 16
Life Insurance Program 16
Long Term Disability Program 17
Short Term Disability Program 17
IRS 125 Program 17
Article IX – Miscellaneous Policies and Procedures 17
Hepatitis B Vaccines 17
Uniforms 17
Light Duty Determination 18
Substance Abuse Policy 18
Class "A" License 18
City-Wide Safety Committee 18
Layoff Procedure 19
Work Stoppage, Any Job Action, Slowdown 20
Article X – Grievance Procedure 20
Informal and Formal Grievances 21
Employee Relations Panel 22
Article XI – Miscellaneous 23
Article XII – Ratification 23
Signature Page 23
Exhibits
Exhibit A Salary Schedule December 20253 25
Exhibit B Salary Schedule December 20264 27
Exhibit C Salary Schedule December 2027
Exhibit DC Educational Incentive Pay Program 29
Exhibit ED Drug and Alcohol Testing Program 43

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 3 20285
This Memorandum of Understanding (“MOU”) has been executed by representatives of the Morgan Hill City Council (“City”) and representatives of the American Federation of State, County and Municipal Employees Local 101 (“Union”).

ARTICLE I. – TERM

1.01 The term of this Agreement shall commence December 214, 20253, and end on December 31, 20285.

ARTICLE II. – REPRESENTATION

2.01 Union is a recognized employee organization within the meaning of City’s EmployerEmployee Relations Resolution No. 4955.

2.02 Union represents all regular full and part-time City employees excluding positions represented by the Police Officers’ Association (“POA”), the Community Service Officers’ Association (“CSOA”), and those identified in the Management/Confidential Resolution.

2.03 Regular Part-Time Employees – Regular part-time employees in Union represented classifications who work at least twenty (20) hours per week shall receive insurance, educational incentive, tuition reimbursement, and paid leave benefits provided for in this agreement on a pro-rated basis, according to the number of hours worked per week.

2.04 Meet & Confer Process

2.04.01 Union is the only employee organization which is entitled to meet and confer with City on behalf of represented employees as outlined in Item 2.02 above.

2.04.02 No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto, unless made and executed in writing by all parties hereto, and, if required, approved and implemented by City and Union.

2.05 Release Time

2.05.01 The Union President, Steward, or designee shall be allowed release time with pay on an as-needed basis to participate in meetings related to employee discipline as set forth in Section 11 of the City of Morgan Hill Personnel Rules. This includes meetings with City management which may lead to discipline of an employee, when the employee has requested representation by Union and the employee has a legal right to be represented.

No notation is required on the Union President, Steward, or designee’s timecard when using release time for the purposes described in this Section.

2.05.02 A total of up to forty (40) hours each fiscal year of release time with pay may be used by the Union President, Steward, or designee for the following purposes when representation is requested by the employee and the employee has a legal right to be represented:

A. Preparation for pre-disciplinary or disciplinary meetings;

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 4 20285
B. Processing formal grievances in accordance with the formal grievance procedure set forth in Section X of this MOU;
C. Meeting with employees regarding informal grievances and presenting informal grievance issues to City management; and
D. Attending Union sponsored trainings, meetings, conferences, or other functions. The forty (40) hours of release time are cumulative - the Union President, Steward, or designee together are allowed a total of forty (40) hours under this provision. The Union President, Steward, or designee shall note “Release Time” on their timecard when using release time for the purposes described in this Section.

2.05.03 The Union President, Steward, or designee shall be allowed release time with pay on an as-needed basis to participate in City-initiated meetings to discuss issues within the scope of representation. No notation is required on the Union President, Steward, or designee’s timecard when using release time for the purpose described in this Section.

2.05.04 The Union President, Steward, or designee shall first obtain permission from his or her supervisor or other appropriate management personnel before using release time, regardless of the purpose for which release time is needed. Permission to use release time may be delayed in circumstances when City work would be seriously compromised by the Union President, Steward, or designee stopping work. However, permission will be granted within a reasonable time frame and will not be unreasonably denied.

2.05.05 Union general membership meetings will continue to be held during lunch or after work.

2.05.06 City shall provide release time for three (3) Union employees selected by Union for attendance at formal meet and confer sessions.

2.06 Dues Deduction Process

2.07 Voluntary Union Dues Deduction

2.07.01 City shall deduct Union dues from the pay checks of members if Union follows the requirements of this paragraph. Union dues are the dues that Union charges members for membership in the Union, representation in collective bargaining and other employment related matters within the scope of representation and Union political activity.

2.07.02 City shall only deduct Union dues from an employee’s paycheck if the Union has submitted a signed authorization card to City clearly stating the employee’s desire for City to deduct Union dues. It is understood and agreed by both City and Union that Union accepts responsibility for submitting authorization cards to City and for informing City whenever an employee withdraws his or her authorization. Such deductions shall be made from each authorizing employee’s paycheck and remitted to Union each month.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 5 20285

2.09 Indemnification, Defense and Hold Harmless for Dues Deduction Union agrees that City undertakes these deductions as a convenience and courtesy and that City shall incur no liability for providing this courtesy service. Union further agrees to indemnify, defend and hold City harmless against any and all claims, suits, orders, judgments, costs or attorney’s fees, including, but not limited to, pre-litigation, administrative staff, retained outside counsel costs and any other matters for which City may seek indemnification for as a result of the action taken or not taken by City for any dues deduction.

2.10 Agreement to Meet and Confer
Should City change the terms and conditions of employment of any job classification(s) represented herein, City will meet and confer with Union no later than thirty (30) days before effective date of such change or changes for the purpose of negotiating appropriate salary adjustment(s) for the so changed classification(s) at a level appropriate to compensate for the increased duties, requirements or safety hazards.

2.11 Printing of MOU

2.11.01 City and Union will split the printing cost of the Agreement equally. Union will choose the printer.

ARTICLE III. – MANAGEMENT RIGHTS

3.01 The rights of City, as exercised by the City Council and the City administration include, but are not limited to, 1) the exclusive right to determine the mission of its constituent departments, commissions and boards, 2) set standards of service, 3) determine the procedures and standards of selection for employment, 4) direct its employees, 5) take disciplinary action, 6) relieve its employees from duty because of lack of work or other legitimate reasons, 7) maintain the efficiency of governmental operations, 8) determine the methods, means, and personnel by which government operations are to be conducted, 9) determine the content of job classifications, subject to any requirement to meet and confer or under current state law, 10) require that employees work overtime, and 11) exercise complete control and discretion over its organization and the technology of performing its work, except that any agreement between City and Union evidenced by a MOU pursuant to Government Code 3500 et. seq. shall take precedence over any of the above enumerated employee and management rights and that such MOU will be honored in good faith during the life of this contract, subject to City’s rights to determine when an emergency exists and to take all necessary action to carry out its mission in emergencies.

3.02 Nothing in this article shall be construed to limit, amend, decrease, revoke, or otherwise modify the rights vested in City by any law regulating, authorizing, or empowering City to act or refrain from acting.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 6 20285
ARTICLE IV. – DEFINITIONS

4.01 Salaries, Wages, and Salary and Wages

4.01.01 The terms “Salaries", "Wages" or "Salary and Wages” shall mean the gross monthly base pay prior to any deductions.

4.02 Personnel Rules

4.02.01 The term “Personnel Rules” as used in this Agreement means those regulations titled “City of Morgan Hill Personnel Rules” enacted as Resolution No. 6150 and thereafter and hereafter amended. In the event a conflict in interpretation between these Personnel Rules as included by reference and similar sections as contained in this MOU, the language in the MOU will be used for interpretation.

ARTICLE V. – SALARIES, WAGES & PAID BENEFITS

5.01 The Salaries and Wages paid by the City to employees represented by Union will be in accordance with the job classifications they hold with pay rates to be increased by five three percent (35%) effective December 214, 20253 (Exhibit A)

5.02 The Salaries and Wages paid by City to employees represented by Union will be in accordance with the job classifications they hold with pay rates to be increased by twofive percent (25%) effective the pay period December 202, 20264 (Exhibit B).

5.025.03 The Salaries and Wages paid by City to employees represented by Union will be in accordance with the job classifications they hold with pay rates to be increased by one percent (1%) effective the pay period December 19, 2027 (Exhibit C).

5.05 Holiday Pay

5.05.01 City will observe the following holidays: New Year’s Day, Martin Luther King Day, President’s Day, Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Day after Thanksgiving, Christmas Eve and Christmas. Employees will receive one (1) day holiday to be used during the furlough period or on the last work day before the furlough. City will maintain minimum staffing levels on these days and the Department Director will determine which day the employee may take off.

A. Each employee will receive two (2) floating holidays each fiscal year to be used during that fiscal year with the approval of the employee’s supervisor.

B. Recognized holidays of City will be aligned to coincide with school holidays in the Morgan Hill Unified School District.

C. Any hours worked on a holiday shall be compensated at double time. If a holiday falls on a Friday or a Monday, any hours worked on the weekend (Saturday or Sunday) connected to the holiday will be compensated at the holiday pay rate. This does not apply to employees who are regularly scheduled to work weekends.

D. Holiday standby shall be compensated at the rate of three (3) hours at double time.

E. Those employees working on teams where all are on a 9/80 schedule will be

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 7 20285
entitled to the number of hours regularly worked as paid time off in observance of the holidays listed. All other employees will receive the additional hours as floating holiday time based on the number of holidays that fall on each specific year. . The classifications are as follows:

F.

G. Electrician
H. Maintenance Worker I, II, III
I. Utility Worker I, II, III
J. Utility Supervisor
K. Senior Maintenance Worker
L. Senior Utility Worker
M. Water Quality Specialist

5.06 Work Furlough

5.06.01 City shall annually implement an end of year furlough that includes the time period of December 24th through January 1st of each year. The specific furlough dates and staffing requirements shall be determined by City. Furlough dates shall be provided to Union by November 1st of each year, and staffing requirements shall be finalized and published by December 1st of each year.

5.07 Other Pay

5.08 Certification Pay
All employees in the Utility classifications that are required to have certificates to perform their jobs, and who in fact possess the appropriate current certificate(s), will be entitled to receive a fixed amount of three percent (3%) of base salary.

A flat certification pay of $150 per month will be provided to employees in the following job classifications for the certificates described below:

Utility Worker
• Water Distribution 1-5 (Each Grade Counts as a separate Certificate) • Collections 1-5 (Each Grade Counts as a separate Certificate) • Treatment 1-5 (Each Grade Counts as a separate Certificate) • Backflow
Maintenance Worker
• Backflow
• State Applicators Permit additional category of Right of Way or Aquatics (Each Specialization Counts as a separate certificate)
• Playground Safety Inspection Certificate
Facility Maintenance Specialist
• Certified Pool Operator or Aquatics Facility Operator (Either, will not count as two certifications)
• Playground Safety Inspection Certificate
Assistant/Associate Engineer
• CAL OES Safety Assessment Program
Engineering Technician
• Land Surveyor in Training (LSIT)

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 8 20285
• ESRI Certificate
• Certified Public Infrastructure Inspector (CPII)
Development Service Technician
• ICC Permit Technician
• ICC Plans Examiner
• ICC Residential Building Inspector
• ICC Commercial Building Inspector
Building Inspector II
• CASp
• ICC Plans Examiner
• State Fire Marshal Fire Inspector 1
• State Fire Marshal Fire Inspector 2
Code Compliance Officer
• ICC Property Maintenance and Housing Code Inspector
• ICC Residential Building Inspector
• ICC Commercial Building inspector
• PC 832
Plan Check Engineer
• CASp
• ICC Commercial Building inspector
• Certified Building Official Certificate
• NFPA Certified Plans Examiner
• NFPA Certified Fire Alarm Plans Examiner
The City Manager may approve certifications for certificate pay during the duration of this Agreement, provided that the certificate is related to the duties of the classification for which the pay will be given.

Regardless of the number of certifications, the maximum certificate pay is $450 per month.

If the employee is promoted to classifications where a certificate is now required, the employee will no longer receive certificate pay for the required certificate.

5.09 Weekend and Weeknight Standby Pay

5.09.01 Weekend Standby (Friday (9/80 day off), Saturday or Sunday) shall be compensated at the rate of four (4) hours at time and one-half (1/2) for each twenty-four (24) hour period covered.

Shift:

Saturday – Starts 24 hours after start of work shift Friday until start of standby shift on Sunday.

Sunday – Starts 48 hours after start of work shift Friday until start of work shift on Monday.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 9 20285
9/80 Friday- Start of work shift Friday through 24 hours from start of work shift Friday

5.09.02 Weeknight Standby (Monday – Friday) shall be compensated at the rate of one and a half (1.50) hours at time and one-half (1/2) for each weeknight of standby.

Shift:

The weeknight standby period shall begin at the end of the regular work shift and end with the commencement of the regular work shift the following morning or if assigned Friday, 24 hours from the start of the work shift Friday.

Employees assigned standby must be able to report to the Corporation Yard within forty five (45) minutes from the time they are called.

5.10 Out of Class Pay

5.10.01 Whenever an employee is temporarily assigned in writing by their supervisor to work in a higher vacant classification to perform all of the duties of the higher classification for a period of more than ten (10) cumulative working days, the employee shall be entitled to out of class pay on the eleventh (11th) day of assignment. Having once satisfied the ten (10) day qualifying requirement, any subsequent such assignment shall be so compensated an additional five percent (5%) beginning with the first day of reassignment.

Any out of class assignment must meet CalPERS guidelines in order to be considered pensionable compensation. Out of class assignment are of a limited curation and shall not exceed 960 hours in any fiscal year.

5.10.02 Should the assignment last more than sixty (60) consecutive calendar days, the employee shall be compensated at a step within the normal range which is at least an additional five percent (5%) higher than that received in accordance with 5.10.01.

5.10.03 Special Assignment Pay
Special assignment pay may be granted to employees who have assumed, for an extended period,at least one work week, significant additional responsibilities outside their current classification. The request for special assignment pay shall describe the assignment, justify why it is to be performed by the designated employee, and give a specific duration for completion of the assignment with a start and end date. Special assignment pay is up to 10% above the employee’s normal pay rate. The special assignment and related compensation may be revoked at any time at the discretion of the Department Director, or the City Manager (or designee). Special assignment pay will be requested in advance by the Department Director and authorized by the City Manager or designee, and then processed by the Human Resources Division. Special assignment pay shall be discontinued on the date originally identified for completion of the assignment, unless an extension of specific duration is approved by the City Manager or designee prior to the end of the original assignment end date. Special assignment pay is not be considered pensionable compensation as defined by CalPERS.

5.11 Bilingual Pay

5.11.01 Union employees identified by a Department Director to use Spanish or American Sign Language in their work and who are certified by the process described below shall receive the following compensation:

A. Employees hired prior to June 30, 2013 shall receive five percent (5%) of base salary.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 10 20285
On July 1, 2013, that amount will be calculated and converted to a fixed amount, or one hundred and fifty dollars ($150.00) per month, whichever is greater.

B. Should there be subsequent adjustments to base salaries, the amount determined on July 1, 2013 shall remain the fixed amount in perpetuity.

C. Employees hired on or after July 1, 2013 shall receive a monthly stipend of one hundred and fifty dollars ($150.00).

D. The Certification process shall be completed by a provider contracted by Human Resources or a three (3) person panel (established by Human Resources) to determine conversational competence. Employees shall be subject to recertification every two (2) years unless waived by City.

E. An eligible employee may request to be tested for bilingual certification at any time and the test shall occur within a reasonable amount of time.

5.12 Overtime/Compensatory Time

5.12.01 Overtime/Compensatory time is defined as one-and-a-half (1.5) times an employee’s total hourly salary. Overtime/Comp time is paid for any amount of time exceeding fifteen (15) minutes more than the employee’s normal work shift, provided the employee is working an eight (8) hour or more work shift or any work time in excess of the forty (40) hour work week unless additional hours are worked as a result of a shift change. Full-Time employees who work fifteen (15) minutes or more of overtime will receive a minimum of half (1/2) hour of overtime pay. Overtime/Compensatory time for a regular part-time employee who works over his/her normal work schedule will accrue compensatory time at the employee’s normal rate of hourly salary for hours under forty (40) per week, and one-and-a-half (1.5) times for hours over forty (40) per week. All such time must be approved in advance with the employee’s supervisor or Department Director. Overtime is paid on completed fifteen (15) minute increments above the half (1/2) hour minimum. Time spent on paid sick leave, disability leave, vacation leave, military leave, compensatory time off, or other authorized paid leave shall be deemed time worked for the purposes of this Article.

5.12.02 Employees called back to work outside their regular work shift shall be compensated for a minimum of two (2) hours at time and one half (1/2) of their regular pay rate. For purposes of this provision, the job shall commence once an employee arrives on-site and shall be considered completed when either management or police dispatch is notified. City reserves the right to assign additional work within the two (2) hour period and subsequent call outs within the original two (2) hour call out do not receive an additional two (2) hour call out minimum. Consecutive work time which is past a two (2) hour call out shall be at time and one half (1/2) pay. Additional call-outs during the course of the day (once a two (2) hour call out is completed), and outside of a completed two (2) hour call out period, shall re-start the two (2) hour call out time.

5.12.03 Union personnel will have the option of receiving either paid overtime or compensatory time off. In the event that overtime pay is not available or authorized, the employee can either choose compensatory time off or decline working overtime. The compensatory time accrual limit shall be one hundred sixty (160) hours maximum.

5.12.04 During emergency situations (EOC activation) such as floods, earthquakes, severe storms,

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 11 20285
etc., City reserves the right to require that all overtime be compensated in pay, not compensatory time.

5.12.05 Employees working more than twelve (12) hours in a day shall receive double time for hours worked beginning with the thirteenth (13th) hour of work.

5.12.06 Employees who are contacted and consulted by telephone about a work-related problem outside their regular work shift, and who provide advice or direction, shall be compensated at an overtime rate for the actual time spent on the telephone, rounded up to the nearest thirty (30) minutes. The time will be recorded on timesheets as overtime.

5.13 Base Work Schedules

5.13.01 The work day, for pay purposes, shall be a twenty four (24) hour period commencing with the beginning of the employee’s regularly scheduled shift.

5.13.02 The normal work schedule shall be forty (40) hours consisting of five (5) consecutive days of eight (8) hours each, exclusive of a lunch period, Monday through Friday or any schedule identified in Administrative Policy VI-001 Section 4.

5.13.03 Should the normal work schedule need to be modified in terms of days or shift hours by the Department Director to facilitate the needs of City, such modification in normal work schedules will be discussed with Union representatives as to methods for changing or rotating assignments fifteen (15) days prior to any change, except in cases of emergencies.

A. The affected employee should be notified at least ten (10) full working days prior to any change. Such modification cannot exceed a forty (40) hour work week unless additional hours are worked as a result of a shift change or in cases of emergencies.

B. Recreation employees may choose to request schedule changes as needed rather than work overtime.

5.13.03 For the purposes of calculating overtime, compensatory time and defining payroll periods, the aforementioned schedules will apply.

5.13.04 Reporting for Duty
A. Employees who are unable to report for work at the beginning of their established shift shall notify their immediate supervisor at least thirty (30) minutes prior to the commencement of that shift. Employees shall follow departmental procedures for providing notice of their absence.

B. Failure to report to work for three (3) consecutive days (or shifts if applicable for which the employee is scheduled to work) without giving proper notice to City will be considered a voluntary resignation of employment even if a coworker or supervisor covers the shift or otherwise arranges for coverage of the shift. Such employee shall, however, be reinstated provided the employee satisfactorily shows that his/her failure to report was the result of reasonable extenuating circumstances beyond the employee’s control.

5.13.05 Except in the case of emergencies, employees shall receive a lunch break after four (4) hours of overtime worked.

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5.13.06 Any employee working eight (8) or more hours at the overtime rate during the sixteen (16) hour period immediately preceding the beginning of his/her regular work shift shall be entitled to a rest period of eight (8) consecutive hours on the completion of such overtime work with the following provisions:

A. No employee shall be required to work in excess of sixteen (16) hours without rest unless an emergency is investigated and continued work is deemed necessary to prevent extreme property damage or to preserve human life.

B. If the eight (8) hour rest period overlaps his/her regular work shift in whole or in part, he/she will be paid at the straight-time rate for the time that falls within his/her regular work shift.

C. If the eight (8) hour rest period overlaps a portion of the first half of his/her work shift, the employee may be excused from work until the beginning of the second half of said shift. If the eight (8) hour rest period overlaps a portion of the second half of his/her work shift, he/she may be excused from work until the following work shift. He/she will be paid, however, for that portion of the rest period that overlaps his/her normal working shift. He/she will not be paid for the time between expiration of the rest period and his/her reporting for work.

D. Hours worked prior to an eight (8) hour rest period shall not be included in determining another rest period.

E. If the employee is called back to work during his/her eight (8) hour rest period, a new rest period will commence at the conclusion of such work.

5.14 Health Benefits

5.14.01 The City will contribute to the City’s medical and dental health plans as follows:

A. For employees with family coverage, up to $2,574.54947.97/month in 20264, and up to $2,703.27 6% matching the Kaiser medical premium increase in 20275 and 2028.

B. For employees with employee plus one coverage, up to $1,964.632,249.59/month in 20264, and up to $2,062.86/month6% matching the Kaiser medical premium increase in 20275 and 2028.

C. For employees with employee only coverage, up to $982.321,124.80/month in 20264, and up to $1,031.446% matching the Kaiser medical premium increase in 20275 and 2028.

D. Employees enrolling in City health but not using the maximum amount available from the City for their premium category (ee only, ee+1, ee+family) shall not be entitled to the surplus. Employees enrolling in plans whose cost exceeds the maximum amount available from the City for their premium category shall have the difference deducted on a pre-tax basis from their paycheck.

E. Employees who waive medical coverage and annually provide proof of alternative medical coverage shall be entitled to a taxable cash in lieu payment of five hundred seventy dollars ($570.00) per month, Employees who waive dental coverage and annually provide proof of alternative dental coverage shall be entitled to a taxable cash

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in lieu payment of forty dollars ($40.00) per month.

F. In the event that health premiums increase six percent (6%) or more both the City and the Union agree to reopen the contract for the limited purpose of discussing changes to the City contribution rate.

5.14.02 City agrees to provide, at City's expense, up to 100 percent (100%) of the premium cost per employee for the Employee Assistance Program, as presently constituted.

5.14.03 All members shall have the option of continuing their current medical insurance at the employee’s own cost after retirement. This option can continue as long as there is no lapse in coverage and so long as the employee pays the monthly premium to the California Public Employees Retirement System (CalPERS) or to the Finance Department as per their billing requirements.

5.14.04 The CalPERS Medical insurance program shall remain in effect for the term of this agreement or unless the parties agree to terminate the agreement with CalPERS.

ARTICLE VI. – EDUCATIONAL INCENTIVE PROGRAM

6.01 Educational Incentive Pay Program (for employees hired before July 1, 2008)

6.01.01 See Exhibit C

6.02 Tuition Reimbursement

6.02.01 City shall provide a tuition reimbursement program of up to fifteen hundred dollars ($1,500.00) per fiscal year for the cost of books and tuition for classes beneficial to the employee’s career development. Mandatory fees required to attend classes and parking fees also may be reimbursed through tuition reimbursement. All classes must be approved in advance by the Department Director. Reimbursement will take place upon a successful completion or passing of the course.

ARTICLE VII. - TYPES OF LEAVE

7.01 Sick Leave

7.01.01 Sick Leave credit shall be accumulated on the basis of eight (8) hours per month. The employee’s accumulated sick leave is unlimited.

7.01.02 City will pay twenty-five percent (25%) of unused sick leave at the end of each calendar year. This payment will be based on semi-annual calculations, that will be processed with the first payroll in December. Employees who have a balance of at least one hundred sixty (160) hours of sick leave may choose to receive twenty-five percent (25%) or fifty percent (50%) of the unused sick leave earned that year. The balance of sick leave will be added to the employee’s accumulated sick leave.

A. The twenty-five percent (25%) payout will not be calculated or paid to any employee absent from work on a work related injury which is being covered by worker’s compensation.

7.01.03 Upon retirement, one hundred percent (100%) of the employees’ unused sick leave balance will be credited to the employees’ retirement eligibility. This amount would then be converted into time in service and added to the employee’s retirement eligibility. (Reference - City contract with CalPERS, Section 20862.8)

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7.01.04 Union employees shall be allowed to utilize two (2) Personal Leave Days totaling sixteen (16) hours per fiscal year chargeable to sick leave. Use of sixteen (16) hours of personal time during the calendar year will not impact the sick leave cash out in Section 7.01.02 for that calendar year, however it will affect the accumulated sick leave balance, one hundred sixty (160) hours, used to determine whether the employee qualified for the cash out of the unused sick leave earned that year.

7.01.05 Employees may use up to twenty-four (24) hours of compensatory time when ill or to attend a medical/dental appointment. All other time missed in a fiscal year due to illness or medical/dental appointments requires the use of sick leave. If the employee does not have sick leave and is not on an approved extended leave, the employee may choose to use vacation or compensation leave or may take that time off without pay. Vacation or compensatory time will not substitute for sick leave when the employee has available sick leave, with the exception of twenty four (24) hours of compensatory time per fiscal year as noted above. Per Section 7.01.04, employees may use sixteen (16) hours of personal time, which is charged to sick leave, for unforeseen appointments and unexpected absences.

7.02 Vacation Accrual

7.02.01 Vacation Accrual shall be as follows:

A. Eighty (80) hours per year from the date of hire through the second (2nd) year of employment.

B. Eighty eight (88) hours vacation during the third (3rd) year of employment.

C. One hundred and four (104) hours vacation during the fourth (4th) year of employment.

D. One hundred and twelve (112) hours vacation during the fifth (5th) year of employment.

E. One hundred and twenty (120) hours vacation during the sixth (6th) year of employment.

F. One hundred and twenty-eight (128) hours vacation during the seventh (7th) year of employment.

G. One hundred and thirty-six (136) hours vacation during the eighth (8th) year of employment.

H. One hundred and forty-four (144) hours vacation during the ninth (9th) year of employment.

I. One hundred and fifty-two (152) hours vacation during the tenth (10th) year of employment.

J. One hundred and sixty (160) hours vacation after the tenth (10th) year of service.

7.02.02 Maximum accumulation of vacation shall be no more than that earned for three (3) years annual accrual effective December 31, 2024 and (2) years annual accrual effective June

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30, 2025. This vacation accumulation maximum shall be enforceable on those dates each year. Employees may exceed the maximum prior to those dates. Any employee who has more than three (3) years annual accrual on the books January 1, 2025 and two (2) years annual accrual on the books on within the pay period that includes July 1, 2025 shall not accrue additional vacation until vacation usage drops below the allowable accrual.

7.02.03 City guarantees during the term of the MOU, that no employee will lose vacation accrued if the employee follows departmental guidelines for requesting time off.

7.02.04 Employees who have vacation or compensatory time off at least equal to two (2) weeks shall have the option, twice per fiscal year, of receiving pay in lieu of time off for a total of eighty (80) hours of the accrued time per fiscal year. For calendar year 2024 an additional forty (40) hours of accrued vacation and/or compensatory time may be cashed out for a maximum of 120 hours. Employees may elect this option by December 15th of each year for the cash-out of the following calendar year. The cash out election is irrevocable. City will follow IRS regulations regarding cash-out of leave and communicate the procedures for cashing-out to Association. The City will research if cash out can be placed directly into deferred compensation 457 plan.

7.03 Extended Leave Policy

7.03.01 In the event an employee is absent from work for illness or injury, unless notified otherwise, prior to the end of the affected pay period, the time off will be coded and deducted from (1) accumulated sick leave, (2) accumulated comp time, and (3) accumulated vacation time, in that order. If a determination is subsequently made by City that the injury was job related, all sick leave, comp time and vacation time used to cover the leave will be credited back to the employee in an amount up to the worker’s compensation determination. The amount of compensation from City may need to be offset by payments received from worker’s compensation. At no time shall the employee receive compensation and worker’s compensation payment in excess of their normal pay. Employees with insufficient time off credited to them will be coded on payroll as absent without pay. Extended leave is defined as two (2) weeks or more of consecutive time off due to illness or injury.

7.04 Bereavement Leave

7.04.01 Union members shall, per occurrence, be granted Bereavement Leave when a death occurs in the employee's or the employee's spouse's immediate family. For the purpose of this section, "immediate family" is defined as father, mother, brother, sister, spouse, natural or legally adopted child, step-child, in-laws, grandparents, and grandchildren.

Employees are granted up to five (5) days of bereavement leave. Up to three (3) days of Bereavement Leave shall be paid granted when the death and service are within the State of California and the other two (2) days would need to be supplemented with other leave time. and Uup to five (5) days are paid when the death or service is outside the State.

City paid Bbereavement Leave usage shall not be charged against the employee's Sick Leave or Vacation Time. Employees may also use up to two (2) additional days of Sick Leave to supplement their allotted Bereavement Leave if other circumstances require absence during that time.

7.04.02 Requests for additional Bereavement Leave beyond the allotted three (3) or five (5) days shall be subject to the approval of the employee's supervisor and deducted from the employee's accumulated Comp Time, Personal Leave, or Vacation Time. Special circumstances beyond this definition may be considered on a case-by-case basis and must

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be approved by the City Manager.

7.04.03 This leave will not affect the twenty-five percent (25%) or fifty percent (50%) cash out of sick leave for the same calendar year.

ARTICLE VIII. – MISCELLANEOUS BENEFITS

8.01 CalPERS Retirement Contributions

8.01.01 For employees hired on or before January 1, 2013, and “Classic Employees” as defined in Government Code section 7522.02(c) of the California Public Employees’ Pension Reform Act of 2012 (“PEPRA”) hired on or after January 1, 2013, City agrees to continue its CalPERS miscellaneous contract with for all applicable retirement benefits in effect on July 1, 2007 which will provide the single highest year and the 2.5% @ 55 basic retirement formula.

8.01.02 For employees that are considered “New Members” as defined in Government Code section 7522.04(f) of PEPRA hired on or after January 1, 2013, the PERS miscellaneous contract will provide for the three (3) highest years compensation average and the 2.0% @ 62 retirement formula.

8.01.03 Beginning with CalPERS rates effective July 1, 2014, City and Union members agreed to split any rate differences at a 50/50 ratio.

8.01.04 Effective July 1, 2013, Union members will pay the full employee contribution rate of eight percent (8%).

8.01.05 Effective July 1, 2022, Union Members will share the employer’s CalPERS contribution rate at 6.12%. The employee’s contribution towards employer’s share of pension cost will be capped at 6.12%. The City and Union members agree to split any rate decreases below the FY 2022-23 employer’s CalPERS contribution rate of 28.77% at a 50/50 ratio.

8.01.06 Effective December 21, 2025, the employee’s contribution towards employer’s share of pension cost will reduce to 4.12%.

8.01.07 Effective December 20, 2026, the employee’s contribution towards employer’s share of pension cost will reduce to 1.12%.

8.01.08 Effective December 19, 2027, the employee’s contribution towards employer’s share of pension cost will be eliminated.

8.02 Deferred Compensation Plan

8.02.1 City shall continue to contribute two percent (2%) of an employee’s base salary to a 457

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Deferred Compensation plan per pay period at the time of hire, an additional one percent (1%) after 5 years of service and an additional one percent (1%) after 10 years of service.

Effective December 19, 2027 all employees will receive an additional one percent (1%) city contribution. Employees may elect to contribute via payroll deduction to the City’s deferred compensation plans. Employees’ contributions can be a lump sum contribution or a percentage of base wages. Employees must submit a completed deferred compensation enrollment/change form to the Human Resources Division for changes in their deferred compensation contributions. Changes shall be effective consistent with the Human Resources submittal deadlines and effective dates.

8.03 Life Insurance Program

8.03.01 For the term of this agreement, City will maintain a Life Insurance Program for each employee represented by Union in the amount of one hundred thousand dollars ($100,000.00) effective August 1, 2008. This amount decreases when the employee reaches age 65, 70, and 75. The Life Insurance benefit will be paid to the employee’s beneficiary upon the death of the employee as outlined in the program documents. City will continue to pay 100 percent (100%) of the cost involved with this program. Any employee currently purchasing additional life insurance through the flexible benefits plan may continue to do so.

8.04 Long Term Disability Program

8.04.01 For the term of this agreement, City will maintain a Long Term Disability Program on all employees represented by Union. The amount of monthly coverage for the Long Term Disability will be sixty six and two thirds percent (662/3%) of the employee’s monthly earnings or a maximum benefit paid of four thousand dollars ($4,000.00) per month, reduced by any deductive benefits. The maximum benefit period is to age sixty-five (65) or twelve (12) months, whichever is longer. The elimination period is the sixty (60) days of total disability. Employees may be eligible for some benefits for partial disability as outlined in the Plan documents. City will continue to pay one hundred percent (100%) of the costs involved with this Long Term Disability Program.

8.05 Short Term Disability Program

8.05.01 For the term of this agreement, City will maintain a Short Term Disability Program on all employees represented by Union. The amount of weekly coverage for the Short Term Disability will be sixty six and two thirds percent (662/3%) of the employee’s weekly earnings or a maximum of nine hundred eighty-three ($983.00) per week with a duration of eight (8) weeks and the elimination period of eight (8) days. The employee must be totally disabled to qualify for benefits. Per Plan requirements, maternity benefits are included in the Short-Term Disability coverage. City will continue to pay 100 percent (100%) of the costs involved with this program.

8.06 IRS 125 Program

8.06.01 City shall maintain in effect the IRS-125 Program.

ARTICLE IX. – MISCELLANEOUS POLICIES AND PROCEDURES

9.01 Hepatitis B Vaccines

9.01.01 City agrees to provide Hepatitis-B shots for those employees represented by Union who regularly or occasionally perform field duties.

9.02 Uniforms

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9.02.01 City will provide uniforms for those employees in the Parks, Streets and Utility Divisions required to wear uniforms as a condition of employment. All divisions will be provided soft caps with the City logo attached. With the exception of City provided soft cap or safety helmet, no other caps, head gear, or hats are to be worn. City will also provide regular uniform cleaning. The uniform cleaning amount is $21.75 per pay period and will be PERSable under special compensation. Employees assigned uniforms are to report to work in uniforms that are neat and clean.

9.02.02 City will provide up to threewo hundred and fifty dollars ($25300.00) per fiscal year towards a one-time purchase of safety shoes for employees who regularly or occasionally perform field duties. This purchase will be made by City issued credit card. If the total cost of the safety shoe purchase is less than the amount provided by the City, the employee may apply the difference towards additional safety shoes or other safety-shoe related accessories at time of purchase, such as shoe protectant spray, shoelaces, insoles. Shoerelated accessories does not include socks. At no time, should the purchase exceed the $30250.00 limit. If the total cost does exceed the $30250.00 limit, the employee must use their personal credit card, debit card, or cash to pay the difference at the time of purchase.

Proof of purchase is required to be submitted to their department; once purchased, employees are required to wear the shoes at all times when applicable duties are performed. If a new employee receives their initial safety shoes between the months of January – July, their next safety shoe purchase will be the following July.

It is the employee’s responsibility to maintain safety shoes in proper working condition and replace them if necessary if they are damaged, worn, or unsafe. At any time, an employee’s supervisor or manager may determine that shoes are unsafe and require replacement.

9.03 Light Duty Determination

9.03.01 In the event an employee is injured and off the job for ten (10) working days or more and may be able to return to work but not able to perform all her/his normal job duty assignments, a temporary “light duty” assignment may be made by City. To be eligible for such a modified assignment, City may require the employee to provide the Human Resources Office with a medical statement from his/her treating physician that clearly states the medical limitations and abilities of the employee. City may require a second or third doctor’s determination at City expense. All light duty work requests shall be coordinated through the Human Resources Office. Light duty may be granted provide that:

A. A temporary modified work assignment is available and may be accommodated without adverse consequences to City or disruption in services or operations, B. City may change regular days off and work hours while the employee is assigned to the temporary modified work assignment,
C. No temporary modified work assignment shall extend for more than ninety (90) days with the approval of the City Manager, and
D. No temporary modified work assignment creates any employee entitlement to an assignment in a light duty position.

9.03.02 An employee receiving such a light duty determination could be reassigned to another assignment or other reduced work schedule up to a forty (40) hour work week upon the determination of the Department Director. Once the employee is certified by

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his/her treating physician or City doctor as no longer in need of light duty, he/she will be reassigned to their normal work assignment.

9.04 Substance Abuse Policy

9.04.01 City’s Substance Abuse Policy (Administrative Policy VI018) shall continue in effect for the term of this agreement.

9.05 Class “A” License

9.05.01 All Utility Worker and Maintenance Worker employees are required to maintain a Class “A” license. Pursuant to the Department of Transportation regulations, such employees are subject to the Department of Transportation Drug Policy. A copy of the Drug and Alcohol Testing Policy as agreed to by City and Union is attached Exhibit D).

9.06 City-Wide Safety Committee

9.06.01 City shall maintain a City-wide Safety Committee with Union appointing up to two (2) members. The Committee shall meet at least quarterly and shall review all accident reports and make recommendations thereon, review departmental safety programs and make recommendations thereon, and assist in planning and presenting safety programs.

Responsibility for and authority over safety continues to be vested in City Management.

9.07 Lay Off Procedure

9.07.01 The City Council may abolish any position in the Classified Service due to lack of funds, work or need.

9.07.02 If City implements a reduction in work force, City will administer the lay-off policy consistent with the following concepts:

A. ORDER: The order of lay-off shall be as follows:

1. Temporary (as-needed) employees;

2. Probationary employees; and

3. Permanent employees in inverse order of seniority within the classification series being reduced.

B. SENIORITY: Seniority shall be determined by the length of current continuous permanent service with City regardless of classification in which employed.

Continuous service shall be defined as that which has not been interrupted by separation of service from City. Seniority shall be retained, but shall not accrue, during any period of authorized leave without pay (more than thirty (30) days), except for military leave. The treatment of personnel employed by means of State or Federal grant monies shall be in accordance with regulations for retention as established by the grantor. In the absence of such regulations, the type of position (Classified or Exempt) shall govern treatment of such personnel. Part time employees shall only receive their total hours of credit and are only subject to combine their total hours for bumping another part-time employee. At no time shall apart time employee be eligible to bump a full-time employee, regardless of seniority. Should a full-time employee who is subject to lay off, be eligible or certified to work in a part time position, the full-time employee may bump into that position beginning with the least senior part time employee first.

C. NOTICE: Probationary and regular employees in the Classified Service, who are

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scheduled to be laid off, shall receive at least a twenty-one (21) day notice. When City determines that it must implement a reduction in work force, notice to the employee shall be in writing and the bargaining unit shall receive the following information, in addition to the opportunity to discuss with a representative of management:

1. Reason for layoff,

2. Effective date of layoff,

3. Conditions governing re-employment, and

4. Information regarding unemployment insurance.

9.07.03 In lieu of layoff, an employee may elect transfer or demotion to a vacant position in the Classified Service which City intends to fill and for which the employee is qualified. Such actions shall be governed by the terms of Section 10 of the Personnel Rules and in no event shall result in an employee being placed in a classification carrying a higher maximum rate of pay. If two (2) or more employees have requested transfer or demotion to the same vacant position and City has determined they are both qualified to fill it, the more senior employee shall receive preference. For purposes of this section, total time in the Classified Service shall be utilized in determining seniority.

9.07.04 Within ten (10) days from the date layoff notices are issued, an employee who would otherwise be laid off may elect to displace an employee in a classification carrying a lower or the same maximum rate of pay, provided that the displacing employee must have held regular status in such classification and have greater time in the classification and directly related higher classifications combined than the employee being displaced. For example, related classifications would mean Utility Worker I, Utility Worker II, Senior Utility Worker, etc.

9.07.05 A probationary or regular employee displaced in accordance with this paragraph shall, in turn, be provided the same notice and “bumping” privilege as set forth in that paragraph.

9.07.06 Regular and probationary personnel laid off in accordance with this Section shall, unless they request otherwise, be placed on a re-employment list for three (3) years. If an employee is re-employed from such a list, all service credits and sick leave accrued to the date of layoff shall be restored. In no event, however, shall City be required to restore credits for vacation and sick leave paid out at the time of layoff.

9.07.07 At the time of layoff, the employee’s name shall be removed from all promotional eligible lists, but, at the employee’s request, shall be retained on open-competitive lists subject to the provisions of Section 10 of the City’s Personnel Rules. If the employee is re-employed prior to the expiration of a promotional list, they shall be reinstated to the list.

9.07.08 Prior to the effective date of layoff, the Department Directorshall furnish the City Manager a final evaluation of the employee’s performance.

9.07.09 Management employees are not eligible to “bump down” into a Union represented position regardless of their previous seniority or status.

9.08 Work Stoppage, Any Job Action, Slowdown

9.08.01 During the life of this MOU, no work stoppage, strikes, or picketing shall be caused or sanctioned by Union and no lockouts shall be made by City.

9.08.02 In the event that any employee covered by this Agreement, individually or collectively,

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violates the provisions of this article and Union fails to exercise good faith in halting the work interruption, Union and the employees involved shall be deemed in violation of this article and City shall be entitled to seek all remedies available to it under applicable law.

9.08.03 Should City change or increase the duties, requirements, or safety hazards of any job classification(s) represented herein, City will meet and confer with Union no later than thirty (30) days before effective date of such change or changes for the purpose of negotiating appropriate salary adjustment(s) for the so changed classification(s) at a level appropriate to compensate for the increased duties, requirements or safety hazards.

ARTICLE X. – GRIEVANCE PROCEDURE

10.01 The following grievance procedure will be in effect:

10.02 A grievance is defined as any dispute involving the interpretation, application or alleged violation of:

A. A current Memorandum of Understanding between City and Union.

B. City’s Personnel Rules where the provision in dispute is within the scope of representation.

10.03 Disciplinary appeals are subject to the provisions of City's Personnel Rules. Disciplinary appeals are subject to the provisions of City's Personnel Rules.

10.04 Informal and Formal Grievances

10.04.01 Step 1. Union or an employee who has a grievance shall bring it to the attention of his/her immediate supervisor within twenty (20) working days of the occurrence of the act which is the basis for the dispute. If the employee and the immediate supervisor are unable to resolve the grievance within ten (10) working days of the date it is raised with the immediate supervisor, the employee shall have the right to submit a formal grievance which shall contain the following information:

A. The name of the grievant;
B. The grievant’s department and specific work site;
C. The name of the grievant’s immediate supervisor;
D. A statement of the nature of the grievance including the date and place of occurrence; E. The specific provision, policy, or procedure alleged to have been violated; F. The remedies sought by the grievant; and
G. The name of the individual or organization, if any, designated by the grievant to represent him/her in the processing of the grievance. However, in no event, shall an employee organization other than the one which formally represents the position occupied by the grievant be designated as the grievant’s representative.

10.04.02 Step 2. If Union or an employee is dissatisfied with the decision of the immediate supervisor in Step 1, they may submit the grievance to the appropriate Department Director within ten (10) working days from the date of the immediate supervisor’s

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decision. The Department Director shall respond to the Grievance in writing within seven (7) working days from the date of its receipt.

10.04.03 Step 3. If the employee is dissatisfied with the decision of the Department Director in Step 2, he/she may submit the grievance to the City Manager within ten (10) working days from receipt of the Department Director’s response. The City Manager or his/her designated representative shall respond to the Grievance in writing within the ten (10) working days of its receipt. Within this period, the City Manager or his/her designee, at his/her discretion, may conduct an informal hearing involving the parties to the dispute.

10.04.04 Step 4. If Union or the employee is dissatisfied with the decision of the City Manager, he/she may submit the grievance to an Employee Relations Panel as provided in Part C, listed below. Notice of such appeal must be filed in writing by the employee with the City Manager within fifteen (15) working days of receipt of the City Manager or his/her designee’s decision.

10.05 Employee Relations Panel

10.05.01 The Employee Relations Panel shall consist of three (3) members selected as follows:

A. A City Management official selected by the City Manager; B. A City employee selected by the grievant provided, however, that the participation of the employee so selected shall not constitute a conflict of interest nor subject that employee to any recriminations as a result of his/her participation; and C. A representative of the California State Mediation and Conciliation Service, or an individual chosen by the parties knowledgeable in public sector labor relations from any source reasonably likely to produce such an individual, including, but not limited to, a labor organization or management organization. This person shall serve as chairperson.
i. Where provided compensation, pay shall be shared by City and the grievant or Union.
ii. The majority decision of the panel shall be final and binding, subject only to ratification by the City Council if said decision mandates a capital expenditure or significant, unbudgeted expenditures. In those instances, the ruling shall be submitted to the City Council for action which may include modification or reversal. Denial of an award by the City Council does not constitute a waiver of Union's right to seek enforcement of the Award in the Courts.

10.05.02 The conduct of the Panel’s hearing shall be governed by the following ground rules.

A. All hearings shall be convened during regular established City hours to the participation in the hearing is required by the Panel, shall not suffer loss of wages for time devoted to this purpose.

B. All hearings shall be conducted in an expeditious manner, with the Chairperson retaining final authority to rule on procedural matters or on other points affecting the length and conduct of the hearing. Legal counsel, court reporters and briefs shall only be utilized upon agreement between City and Union or grievant and shall not serve to delay the Panel’s decision, except by mutual agreement.

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C. The Panel shall be committed to resolving the grievance in an objective, timely and equitable fashion and shall not permit either party to engage in any presentation or line of an argument which detracts from this purpose. Moreover, the Panel shall not accept evidence not presented in Step 3 of this procedure.

D. No hearing shall be convened unless both parties have stipulated in writing to the issue or issues to be heard by the panel.

10.05.03 General Conditions
A. Any time limit set forth in this procedure may be extended by written agreement between City and the grievant or Union.

B. Failure on the part of the grievant or their designated representative to comply with the time limits of this procedure or any extension thereto shall constitute a withdrawal of the grievance without further recourse for re- submittal under this procedure. Failure on the part of City to comply with prescribed time limits or extension thereto shall result in the grievance being moved to the next step of the procedure.

C. The grievant shall be entitled to have a representative of his own choosing, except as provided in Step 1, B-G., present at any grievance meeting with City.

D. A representative of a recognized employee organization which represents the grievant’s position shall be entitled to be present at any hearing held in conjunction with Step 3 and Step 4 of this procedure.

E. The City Manager or his/her designated representative shall serve as the central repository for all grievance records.

ARTICLE XI. – MISCELLANEOUS

11.01 City and Union consent to form a committee whose task shall be to create a program that provides for certain positions within City’s classifications to be designated as “flexibly staffed.” Flexibly staffed positions will afford City the opportunity to increase the capacity of the work force to deliver quality services to citizens and provides City employees with advancement opportunities within their job classification. Once the program is established, Human Resources shall be responsible for its oversight.

ARTICLE XII. – RATIFICATION

12.01 This MOU shall become effective December 214, 20253.

12.02 Unless mutually agreed otherwise by City and Union, Union shall provide City with its written requests on terms within the scope of representation for the period including January 1, 20285 no later than two (2) weeks prior to the start of negotiations. City and Union shall begin to meet and confer on or before August 1, 20285 and endeavor to complete negotiations on a successor MOU by the end of November 20285.

FOR THE CITY OF MORGAN HILL FOR AFSCME, LOCAL 101

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 24 20285
Christina Turner
City Manager
Date Osbaldo Esquivel
President
Date
______________________________________ _____________________________________ Donald Larkin Date Oracio VasquezGrant Murdock Date
City Attorney Vice PresidentAFSCME Negotiator
_______________________________________ _______________________________________ Michael Horta Date John Henry Amos Date
Human Resources Director Treasurer AFSCME Negotiator
_______________________________________ ________________________________________ Dat Nguyen Date Lisa CvitanichSteven Robles Date
Finance Director Secretary AFSCME Negotiator
________________________________________ __________________________________________ Edith RamirezChris Ghione Date Carol McEwan Date
Assistant City Manager for Development Public Services Union Representative, AFSCME Council 57

Effective: 12/21/2025 (3% increase) Monthly figures are rounded to the nearest $1.00 Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Accountant I 8,873 51.19 9,316 53.75 9,782 56.44 10,271 59.26 10,785 62.22 11,324 65.33 Accounting Asst. I 6,184 35.67 6,493 37.46 6,817 39.33 7,158 41.30 7,516 43.36 7,892 45.53 Accounting Asst. II 6,470 37.33 6,793 39.19 7,133 41.15 7,490 43.21 7,864 45.37 8,257 47.64 Accounting Technician 7,990 46.10 8,389 48.40 8,809 50.82 9,249 53.36 9,712 56.03 10,197 58.83 Assistant Planner 8,873 51.19 9,316 53.75 9,782 56.44 10,271 59.26 10,785 62.22 11,324 65.33 Assistant Engineer 9,857 56.87 10,350 59.71 10,867 62.70 11,411 65.83 11,981 69.12 12,580 72.58 Associate Planner 9,551 55.10 10,029 57.86 10,530 60.75 11,057 63.79 11,610 66.98 12,190 70.33 Associate Engineer 11,451 66.06 12,023 69.36 12,624 72.83 13,255 76.47 13,918 80.30 14,614 84.31 Business Assistant 6,800 39.23 7,140 41.19 7,497 43.25 7,872 45.41 8,265 47.68 8,678 50.07 Building Inspector II 9,905 57.15 10,401 60.00 10,921 63.00 11,467 66.15 12,040 69.46 12,642 72.94 Building Inspector Supervisor 11,652 67.22 12,235 70.59 12,847 74.12 13,489 77.82 14,163 81.71 14,872 85.80 Code Compliance Officer 8,972 51.76 9,420 54.35 9,891 57.06 10,386 59.92 10,905 62.91 11,450 66.06 Communication and Engagement Coordinator 9,098 52.49 9,553 55.11 10,031 57.87 10,532 60.76 11,059 63.80 11,612 66.99 Community Services Coordinator 7,466 43.07 7,840 45.23 8,232 47.49 8,643 49.86 9,075 52.36 9,529 54.98 Council Services Assistant 6,756 38.97 7,093 40.92 7,448 42.97 7,821 45.12 8,212 47.37 8,622 49.74 Custodian 4,521 26.08 4,747 27.39 4,985 28.76 5,234 30.20 5,496 31.71 5,770 33.29 Deputy City Clerk 7,836 45.21 8,228 47.47 8,639 49.84 9,071 52.33 9,525 54.95 10,001 57.70 Development Services Technician 7,836 45.21 8,228 47.47 8,639 49.84 9,071 52.33 9,525 54.95 10,001 57.70 Electrician 9,334 53.85 9,800 56.54 10,290 59.37 10,805 62.34 11,345 65.45 11,912 68.73 Engineering Technician I 6,928 39.97 7,274 41.97 7,638 44.07 8,020 46.27 8,421 48.58 8,842 51.01 Engineering Technician II 7,660 44.19 8,043 46.40 8,445 48.72 8,867 51.16 9,311 53.72 9,776 56.40 Environmental Programs Coordinator 8,873 51.19 9,316 53.75 9,782 56.44 10,271 59.26 10,785 62.22 11,324 65.33 Environmental Services Technician 6,928 39.97 7,274 41.97 7,638 44.07 8,020 46.27 8,421 48.58 8,842 51.01 Exec. Asst. to the Chief of Police 7,378 42.57 7,747 44.70 8,134 46.93 8,541 49.28 8,968 51.74 9,417 54.33 Facilities Maintenance Specialist 7,466 43.07 7,840 45.23 8,232 47.49 8,643 49.86 9,075 52.36 9,529 54.98 Fire/Building Inspector 9,905 57.15 10,401 60.00 10,921 63.00 11,467 66.15 12,040 69.46 12,642 72.94 Housing Program Coordinator 9,551 55.10 10,029 57.86 10,530 60.75 11,057 63.79 11,610 66.98 12,190 70.33 Information Services Technician 8,873 51.19 9,316 53.75 9,782 56.44 10,271 59.26 10,785 62.22 11,324 65.33 Junior Engineer 8,873 51.19 9,316 53.75 9,782 56.44 10,271 59.26 10,785 62.22 11,324 65.33 Maintenance Worker I 6,140 35.42 6,447 37.19 6,769 39.05 7,108 41.01 7,463 43.06 7,836 45.21 Maintenance Worker II 6,774 39.08 7,113 41.04 7,469 43.09 7,842 45.24 8,234 47.51 8,646 49.88 Maitenance Worker III 7,452 42.99 7,824 45.14 8,215 47.40 8,626 49.77 9,058 52.25 9,510 54.87 Maintenance Supervisor 9,840 56.77 10,332 59.61 10,848 62.59 11,391 65.72 11,960 69.00 12,558 72.45 Management Analyst 9,098 52.49 9,553 55.11 10,031 57.87 10,532 60.76 11,059 63.80 11,612 66.99 Multimedia Coordinator 6,800 39.23 7,140 41.19 7,497 43.25 7,872 45.41 8,265 47.68 8,678 50.07 Municipal Services Assistant 6,470 37.33 6,793 39.19 7,133 41.15 7,490 43.21 7,864 45.37 8,257 47.64 Office Assistant I 4,667 26.92 4,900 28.27 5,145 29.68 5,402 31.17 5,672 32.73 5,956 34.36 Office Assistant II 5,866 33.84 6,159 35.53 6,467 37.31 6,791 39.18 7,130 41.14 7,487 43.19 Plan Check Engineer 11,652 67.22 12,235 70.59 12,847 74.12 13,489 77.82 14,163 81.71 14,872 85.80 Plans Examiner 9,905 57.15 10,401 60.00 10,921 63.00 11,467 66.15 12,040 69.46 12,642 72.94 Police Analyst 10,033 57.88 10,535 60.78 11,062 63.82 11,615 67.01 12,196 70.36 12,805 73.88 Public Works Inspection Supervisor 11,652 67.22 12,235 70.59 12,847 74.12 13,489 77.82 14,163 81.71 14,872 85.80 Public Works Inspector 9,334 53.85 9,800 56.54 10,290 59.37 10,805 62.34 11,345 65.45 11,912 68.73 Recreation Services Coordinator 7,466 43.07 7,840 45.23 8,232 47.49 8,643 49.86 9,075 52.36 9,529 54.98 Senior Accountant 9,760 56.31 10,248 59.12 10,760 62.08 11,298 65.18 11,863 68.44 12,456 71.86 Senior Information Services Technician 9,539 55.03 10,016 57.78 10,516 60.67 11,042 63.70 11,594 66.89 12,174 70.23 Senior Maintenance Worker 8,214 47.39 8,624 49.75 9,055 52.24 9,508 54.85 9,984 57.60 10,483 60.48 Senior Public Works Inspector 10,033 57.88 10,535 60.78 11,062 63.82 11,615 67.01 12,196 70.36 12,805 73.88 Senior Recreation Services Coordinator 7,840 45.23 8,232 47.50 8,644 49.87 9,076 52.36 9,530 54.98 10,007 57.73 Senior Utility Worker 8,214 47.39 8,624 49.75 9,055 52.24 9,508 54.85 9,984 57.60 10,483 60.48 Support Services Supervisor 8,851 51.07 9,294 53.62 9,759 56.30 10,247 59.11 10,759 62.07 11,297 65.17 Unhoused Specialist 7,466 43.07 7,840 45.23 8,232 47.49 8,643 49.86 9,075 52.36 9,529 54.98 Utility Worker I 6,140 35.42 6,447 37.19 6,769 39.05 7,108 41.01 7,463 43.06 7,836 45.21 Utility Worker II 6,774 39.08 7,113 41.04 7,469 43.09 7,842 45.24 8,234 47.51 8,646 49.88 Utility Worker III 7,452 42.99 7,824 45.14 8,215 47.40 8,626 49.77 9,058 52.25 9,510 54.87 Utility Supervisor 10,001 57.70 10,502 60.59 11,027 63.62 11,578 66.80 12,157 70.14 12,765 73.64 Utilities Technology Specialist 8,248 47.58 8,660 49.96 9,093 52.46 9,548 55.08 10,025 57.84 10,526 60.73 Water Quality Specialist 8,248 47.58 8,660 49.96 9,093 52.46 9,548 55.08 10,025 57.84 10,526 60.73 CITY OF MORGAN HILL AFSCME LOCAL 101 MONTHLY SALARY FOR REGULAR EMPLOYEES BY CLASSIFICATION Exhibit A

Effective: 12/20/2026 (2% increase) Monthly figures are rounded to the nearest $1.00 Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Accountant I 9,050 52.21 9,503 54.82 9,978 57.56 10,477 60.44 11,001 63.47 11,551 66.64 Accounting Asst. I 6,307 36.39 6,623 38.21 6,954 40.12 7,301 42.12 7,666 44.23 8,050 46.44 Accounting Asst. II 6,599 38.07 6,929 39.98 7,276 41.98 7,640 44.07 8,022 46.28 8,423 48.59 Accounting Technician 8,150 47.02 8,557 49.37 8,985 51.84 9,434 54.43 9,906 57.15 10,401 60.01 Assistant Planner 9,050 52.21 9,503 54.82 9,978 57.56 10,477 60.44 11,001 63.47 11,551 66.64 Assistant Engineer 10,054 58.00 10,557 60.90 11,085 63.95 11,639 67.15 12,221 70.51 12,832 74.03 Associate Planner 9,742 56.21 10,229 59.02 10,741 61.97 11,278 65.06 11,842 68.32 12,434 71.73 Associate Engineer 11,680 67.38 12,264 70.75 12,877 74.29 13,521 78.00 14,197 81.90 14,906 86.00 Business Assistant 6,936 40.01 7,282 42.01 7,647 44.12 8,029 46.32 8,430 48.64 8,852 51.07 Building Inspector II 10,104 58.29 10,609 61.20 11,139 64.26 11,696 67.48 12,281 70.85 12,895 74.39 Building Inspector Supervisor 11,885 68.57 12,480 72.00 13,104 75.60 13,759 79.38 14,447 83.35 15,169 87.51 Code Compliance Officer 9,151 52.79 9,609 55.43 10,089 58.21 10,593 61.12 11,123 64.17 11,679 67.38 Communication and Engagement Coordinator 9,280 53.54 9,744 56.22 10,232 59.03 10,743 61.98 11,280 65.08 11,844 68.33 Community Services Coordinator 7,616 43.94 7,996 46.13 8,396 48.44 8,816 50.86 9,257 53.40 9,720 56.08 Council Services Assistant 6,891 39.75 7,235 41.74 7,597 43.83 7,977 46.02 8,376 48.32 8,795 50.74 Custodian 4,612 26.61 4,842 27.94 5,084 29.33 5,339 30.80 5,606 32.34 5,886 33.96 Deputy City Clerk 7,993 46.11 8,393 48.42 8,812 50.84 9,253 53.38 9,715 56.05 10,201 58.85 Development Services Technician 7,993 46.11 8,393 48.42 8,812 50.84 9,253 53.38 9,715 56.05 10,201 58.85 Electrician 9,520 54.92 9,996 57.67 10,496 60.55 11,021 63.58 11,572 66.76 12,151 70.10 Engineering Technician I 7,066 40.77 7,420 42.81 7,791 44.95 8,180 47.19 8,589 49.55 9,019 52.03 Engineering Technician II 7,813 45.08 8,204 47.33 8,614 49.70 9,045 52.18 9,497 54.79 9,972 57.53 Environmental Programs Coordinator 9,050 52.21 9,503 54.82 9,978 57.56 10,477 60.44 11,001 63.47 11,551 66.64 Environmental Services Technician 7,066 40.77 7,420 42.81 7,791 44.95 8,180 47.19 8,589 49.55 9,019 52.03 Exec. Asst. to the Chief of Police 7,526 43.42 7,902 45.59 8,297 47.87 8,712 50.26 9,148 52.77 9,605 55.41 Facilities Maintenance Specialist 7,616 43.94 7,996 46.13 8,396 48.44 8,816 50.86 9,257 53.40 9,720 56.08 Fire/Building Inspector 10,104 58.29 10,609 61.20 11,139 64.26 11,696 67.48 12,281 70.85 12,895 74.39 Housing Program Coordinator 9,742 56.21 10,229 59.02 10,741 61.97 11,278 65.06 11,842 68.32 12,434 71.73 Information Services Technician 9,050 52.21 9,503 54.82 9,978 57.56 10,477 60.44 11,001 63.47 11,551 66.64 Junior Engineer 9,050 52.21 9,503 54.82 9,978 57.56 10,477 60.44 11,001 63.47 11,551 66.64 Maintenance Worker I 6,263 36.13 6,576 37.94 6,905 39.84 7,250 41.83 7,613 43.92 7,993 46.11 Maintenance Worker II 6,910 39.87 7,255 41.86 7,618 43.95 7,999 46.15 8,399 48.46 8,819 50.88 Maitenance Worker III 7,601 43.85 7,981 46.04 8,380 48.34 8,799 50.76 9,239 53.30 9,701 55.97 Maintenance Supervisor 10,036 57.90 10,538 60.80 11,065 63.84 11,618 67.03 12,199 70.38 12,809 73.90 Management Analyst 9,280 53.54 9,744 56.22 10,232 59.03 10,743 61.98 11,280 65.08 11,844 68.33 Multimedia Coordinator 6,936 40.01 7,282 42.01 7,647 44.12 8,029 46.32 8,430 48.64 8,852 51.07 Municipal Services Assistant 6,599 38.07 6,929 39.98 7,276 41.98 7,640 44.07 8,022 46.28 8,423 48.59 Office Assistant I 4,760 27.46 4,998 28.83 5,248 30.28 5,510 31.79 5,786 33.38 6,075 35.05 Office Assistant II 5,983 34.52 6,283 36.25 6,597 38.06 6,926 39.96 7,273 41.96 7,636 44.06 Plan Check Engineer 11,885 68.57 12,480 72.00 13,104 75.60 13,759 79.38 14,447 83.35 15,169 87.51 Plans Examiner 10,104 58.29 10,609 61.20 11,139 64.26 11,696 67.48 12,281 70.85 12,895 74.39 Police Analyst 10,234 59.04 10,746 61.99 11,283 65.09 11,847 68.35 12,440 71.77 13,062 75.35 Public Works Inspection Supervisor 11,885 68.57 12,480 72.00 13,104 75.60 13,759 79.38 14,447 83.35 15,169 87.51 Public Works Inspector 9,520 54.92 9,996 57.67 10,496 60.55 11,021 63.58 11,572 66.76 12,151 70.10 Recreation Services Coordinator 7,616 43.94 7,996 46.13 8,396 48.44 8,816 50.86 9,257 53.40 9,720 56.08 Senior Accountant 9,955 57.43 10,453 60.31 10,976 63.32 11,524 66.49 12,101 69.81 12,706 73.30 Senior Information Services Technician 9,729 56.13 10,216 58.94 10,727 61.88 11,263 64.98 11,826 68.23 12,417 71.64 Senior Maintenance Worker 8,378 48.33 8,797 50.75 9,236 53.29 9,698 55.95 10,183 58.75 10,692 61.69 Senior Public Works Inspector 10,234 59.04 10,746 61.99 11,283 65.09 11,847 68.35 12,440 71.77 13,062 75.35 Senior Recreation Services Coordinator 7,997 46.14 8,397 48.45 8,817 50.87 9,258 53.41 9,721 56.08 10,207 58.89 Senior Utility Worker 8,378 48.33 8,797 50.75 9,236 53.29 9,698 55.95 10,183 58.75 10,692 61.69 Support Services Supervisor 9,028 52.09 9,480 54.69 9,954 57.43 10,451 60.30 10,974 63.31 11,523 66.48 Unhoused Specialist 7,616 43.94 7,996 46.13 8,396 48.44 8,816 50.86 9,257 53.40 9,720 56.08 Utility Worker I 6,263 36.13 6,576 37.94 6,905 39.84 7,250 41.83 7,613 43.92 7,993 46.11 Utility Worker II 6,910 39.87 7,255 41.86 7,618 43.95 7,999 46.15 8,399 48.46 8,819 50.88 Utility Worker III 7,601 43.85 7,981 46.04 8,380 48.34 8,799 50.76 9,239 53.30 9,701 55.97 Utility Supervisor 10,201 58.85 10,712 61.80 11,247 64.89 11,810 68.13 12,400 71.54 13,020 75.12 Utilities Technology Specialist 8,413 48.53 8,833 50.96 9,275 53.51 9,739 56.18 10,225 58.99 10,737 61.94 Water Quality Specialist 8,413 48.53 8,833 50.96 9,275 53.51 9,739 56.18 10,225 58.99 10,737 61.94 CITY OF MORGAN HILL AFSCME LOCAL 101 MONTHLY SALARY FOR REGULAR EMPLOYEES BY CLASSIFICATION Exhibit B

Effective: 12/19/2027 (1% increase) Monthly figures are rounded to the nearest $1.00 Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Accountant I 9,141 52.74 9,598 55.37 10,078 58.14 10,582 61.05 11,111 64.10 11,666 67.31 Accounting Asst. I 6,370 36.75 6,689 38.59 7,023 40.52 7,374 42.54 7,743 44.67 8,130 46.91 Accounting Asst. II 6,665 38.45 6,999 40.38 7,349 42.40 7,716 44.52 8,102 46.74 8,507 49.08 Accounting Technician 8,231 47.49 8,643 49.86 9,075 52.36 9,529 54.97 10,005 57.72 10,505 60.61 Assistant Planner 9,141 52.74 9,598 55.37 10,078 58.14 10,582 61.05 11,111 64.10 11,666 67.31 Assistant Engineer 10,155 58.58 10,662 61.51 11,196 64.59 11,755 67.82 12,343 71.21 12,960 74.77 Associate Planner 9,840 56.77 10,332 59.61 10,848 62.59 11,391 65.72 11,960 69.00 12,558 72.45 Associate Engineer 11,796 68.06 12,386 71.46 13,006 75.03 13,656 78.78 14,339 82.72 15,055 86.86 Business Assistant 7,005 40.41 7,355 42.43 7,723 44.56 8,109 46.78 8,515 49.12 8,940 51.58 Building Inspector II 10,205 58.87 10,715 61.82 11,251 64.91 11,813 68.15 12,404 71.56 13,024 75.14 Building Inspector Supervisor 12,004 69.25 12,604 72.72 13,235 76.35 13,896 80.17 14,591 84.18 15,321 88.39 Code Compliance Officer 9,243 53.32 9,705 55.99 10,190 58.79 10,699 61.73 11,234 64.81 11,796 68.05 Communication and Engagement Coordinator 9,373 54.08 9,842 56.78 10,334 59.62 10,851 62.60 11,393 65.73 11,963 69.02 Community Services Coordinator 7,692 44.38 8,076 46.59 8,480 48.92 8,904 51.37 9,349 53.94 9,817 56.64 Council Services Assistant 6,960 40.15 7,308 42.16 7,673 44.27 8,057 46.48 8,460 48.80 8,882 51.25 Custodian 4,658 26.87 4,891 28.22 5,135 29.63 5,392 31.11 5,662 32.66 5,945 34.30 Deputy City Clerk 8,073 46.57 8,476 48.90 8,900 51.35 9,345 53.92 9,813 56.61 10,303 59.44 Development Services Technician 8,073 46.57 8,476 48.90 8,900 51.35 9,345 53.92 9,813 56.61 10,303 59.44 Electrician 9,616 55.47 10,096 58.25 10,601 61.16 11,131 64.22 11,688 67.43 12,272 70.80 Engineering Technician I 7,137 41.18 7,494 43.23 7,869 45.40 8,262 47.67 8,675 50.05 9,109 52.55 Engineering Technician II 7,891 45.53 8,286 47.80 8,700 50.19 9,135 52.70 9,592 55.34 10,071 58.10 Environmental Programs Coordinator 9,141 52.74 9,598 55.37 10,078 58.14 10,582 61.05 11,111 64.10 11,666 67.31 Environmental Services Technician 7,137 41.18 7,494 43.23 7,869 45.40 8,262 47.67 8,675 50.05 9,109 52.55 Exec. Asst. to the Chief of Police 7,601 43.85 7,981 46.04 8,380 48.35 8,799 50.76 9,239 53.30 9,701 55.97 Facilities Maintenance Specialist 7,692 44.38 8,076 46.59 8,480 48.92 8,904 51.37 9,349 53.94 9,817 56.64 Fire/Building Inspector 10,205 58.87 10,715 61.82 11,251 64.91 11,813 68.15 12,404 71.56 13,024 75.14 Housing Program Coordinator 9,840 56.77 10,332 59.61 10,848 62.59 11,391 65.72 11,960 69.00 12,558 72.45 Information Services Technician 9,141 52.74 9,598 55.37 10,078 58.14 10,582 61.05 11,111 64.10 11,666 67.31 Junior Engineer 9,141 52.74 9,598 55.37 10,078 58.14 10,582 61.05 11,111 64.10 11,666 67.31 Maintenance Worker I 6,325 36.49 6,642 38.32 6,974 40.23 7,323 42.25 7,689 44.36 8,073 46.58 Maintenance Worker II 6,979 40.26 7,328 42.28 7,694 44.39 8,079 46.61 8,483 48.94 8,907 51.39 Maitenance Worker III 7,677 44.29 8,061 46.50 8,464 48.83 8,887 51.27 9,331 53.83 9,798 56.52 Maintenance Supervisor 10,137 58.48 10,644 61.41 11,176 64.48 11,735 67.70 12,321 71.08 12,937 74.64 Management Analyst 9,373 54.08 9,842 56.78 10,334 59.62 10,851 62.60 11,393 65.73 11,963 69.02 Multimedia Coordinator 7,005 40.41 7,355 42.43 7,723 44.56 8,109 46.78 8,515 49.12 8,940 51.58 Municipal Services Assistant 6,665 38.45 6,999 40.38 7,349 42.40 7,716 44.52 8,102 46.74 8,507 49.08 Office Assistant I 4,808 27.74 5,048 29.12 5,300 30.58 5,565 32.11 5,844 33.71 6,136 35.40 Office Assistant II 6,043 34.86 6,345 36.61 6,663 38.44 6,996 40.36 7,346 42.38 7,713 44.50 Plan Check Engineer 12,004 69.25 12,604 72.72 13,235 76.35 13,896 80.17 14,591 84.18 15,321 88.39 Plans Examiner 10,205 58.87 10,715 61.82 11,251 64.91 11,813 68.15 12,404 71.56 13,024 75.14 Police Analyst 10,336 59.63 10,853 62.61 11,396 65.75 11,966 69.03 12,564 72.48 13,192 76.11 Public Works Inspection Supervisor 12,004 69.25 12,604 72.72 13,235 76.35 13,896 80.17 14,591 84.18 15,321 88.39 Public Works Inspector 9,616 55.47 10,096 58.25 10,601 61.16 11,131 64.22 11,688 67.43 12,272 70.80 Recreation Services Coordinator 7,692 44.38 8,076 46.59 8,480 48.92 8,904 51.37 9,349 53.94 9,817 56.64 Senior Accountant 10,055 58.01 10,557 60.91 11,085 63.95 11,640 67.15 12,222 70.51 12,833 74.03 Senior Information Services Technician 9,827 56.69 10,318 59.53 10,834 62.50 11,376 65.63 11,944 68.91 12,542 72.36 Senior Maintenance Worker 8,462 48.82 8,885 51.26 9,329 53.82 9,795 56.51 10,285 59.34 10,799 62.30 Senior Public Works Inspector 10,336 59.63 10,853 62.61 11,396 65.75 11,966 69.03 12,564 72.48 13,192 76.11 Senior Recreation Services Coordinator 8,077 46.60 8,481 48.93 8,905 51.38 9,350 53.94 9,818 56.64 10,309 59.47 Senior Utility Worker 8,462 48.82 8,885 51.26 9,329 53.82 9,795 56.51 10,285 59.34 10,799 62.30 Support Services Supervisor 9,119 52.61 9,575 55.24 10,053 58.00 10,556 60.90 11,084 63.94 11,638 67.14 Unhoused Specialist 7,692 44.38 8,076 46.59 8,480 48.92 8,904 51.37 9,349 53.94 9,817 56.64 Utility Worker I 6,325 36.49 6,642 38.32 6,974 40.23 7,323 42.25 7,689 44.36 8,073 46.58 Utility Worker II 6,979 40.26 7,328 42.28 7,694 44.39 8,079 46.61 8,483 48.94 8,907 51.39 Utility Worker III 7,677 44.29 8,061 46.50 8,464 48.83 8,887 51.27 9,331 53.83 9,798 56.52 Utility Supervisor 10,304 59.44 10,819 62.42 11,360 65.54 11,928 68.81 12,524 72.25 13,150 75.87 Utilities Technology Specialist 8,497 49.02 8,921 51.47 9,368 54.04 9,836 56.75 10,328 59.58 10,844 62.56 Water Quality Specialist 8,497 49.02 8,921 51.47 9,368 54.04 9,836 56.75 10,328 59.58 10,844 62.56 CITY OF MORGAN HILL AFSCME LOCAL 101 MONTHLY SALARY FOR REGULAR EMPLOYEES BY CLASSIFICATION EExhibit C

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 29 20285

EXHIBIT DC
AFSCME, LOCAL 101

EDUCATIONAL INCENTIVE PAY PROGRAM
Effective: July 2, 1995
(Employees hired prior to July 1, 2008 are eligible for EIP) I. INTRODUCTION
Educational Incentive Pay (EIP) shall be paid in addition to regular pay when education is in addition to the regular requirements of their job as stated in City’s adopted job descriptions and said education is job-related. An employee may not receive more than a seven- and one-half percent (7.5%) increase above the employee’s base monthly salary.

II. PROGRAM GOALS
The goals of this program are:

A. To encourage employees to pursue education and programs which enhance their job performance and understanding.

B. To prepare employees for possible promotions to other positions or future openings within City.

C. To reward employees for their own initiative demonstrated through their participation in this program.

Any evaluation or decision regarding this program or an employee’s participation in the program will be made based on the intent of the above stated goals.

III. DEFINITIONS
A. “Job-Related” - A course or training program that directly relates to or enhances the employee’s ability to perform the duties of their classification.

B. “Degree Program” - A series of college level courses that when completed results in an Associate of Arts, Associate of Science, Bachelor of Arts, Bachelor of Science, Master of Arts, or Master of Science degree. Courses that qualify for a degree program are those courses identified by the college or university that count toward the specific degree program the employee has selected.

C. “Requalification” - The annual process that an employee must complete in order to continue receiving EIP for the following fiscal year.

D. “Minimum job requirements” - The minimum job qualifications listed on the job description for each job classification.

IV. RATES OF PAY FOR EDUCATION ABOVE STATED JOB REQUIREMENTS A. For classifications that have a minimum education requirement of high school diploma or the equivalent (GED), the following steps are available for attainment of up to seven- and one-half percent (7.5%) EIP:
(1) One and a quarter percent (1.25%) = fifteen (15) recognized semester college units, two hundred forty (240) hours of job-related training, or the equivalent.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 30 20285
(2) One and a quarter percent (1.25%) = thirty (30) recognized semester college units, four hundred eighty (480) hours of job-related training, or the equivalent.
(3) One and a quarter percent (1.25%) = forty-five (45) recognized semester college units, seven hundred twenty (720) hours of job-related training, or the equivalent.
(4) One and a quarter percent (1.25%) = sixty (60) recognized semester college units, nine hundred sixty (960) hours of job-related training, attainment of an Associate of Arts degree or Associate of Science degree, or the equivalent. (5) One and a quarter percent (1.25%) = ninety (90) recognized semester college units, one thousand four hundred forty (1440) hours of job-related training, or the equivalent.
(6) One and a quarter percent (1.25%) = one hundred twenty (120) recognized semester college units, one thousand nine hundred twenty (1920) hours of job-related training, attainment of a Bachelor of Arts degree or Bachelor of Science degree, or the equivalent.

B. For classifications that have a minimum education requirement of an Associate of Arts or Associate of Science degree or two (2) years of job-related college course work, the following steps are available for attainment of up to seven and a half percent (7.5%) EIP:
(1) One and a quarter percent (1.25%) = fifteen (15) recognized semester college units toward attainment of a Bachelor’s degree, two hundred forty (240) hours of job-related education or training, or the equivalent. (2) One and a quarter percent (1.25%) = thirty (30) recognized semester college units toward attainment of a Bachelor’s degree, four hundred eighty (480) hours of job-related education or training, or the equivalent. (3) One and a quarter percent (1.25%) = Attainment of a Bachelor of Arts or Bachelor of Science degree, nine hundred sixty (960) hours of job-related education or training, or the equivalent.
(4) One and a quarter percent (1.25%) = Following attainment of a Bachelor’s degree, fifteen (15) recognized semester units that qualify toward attainment of a Master of Arts or Master of Science degree, or the equivalent. (5) One and a quarter percent (1.25%) = Attainment of a Master of Arts or Master of Science degree or the equivalent.
(6) One and a quarter percent (1.25%) = Following attainment of a Bachelor’s degree or Master’s degree, an additional two hundred forty (240) hours of job-related education or training.

C. For classifications that have a minimum education requirement of a Bachelor of Arts or Bachelor of Science degree, the following steps are available for attainment of up to seven and a half percent (7.5%) EIP:
(1) One and a quarter percent (1.25%) = fifteen (15) recognized semester units that qualify toward attainment of a Master of Arts or Master of Science degree, or the equivalent.
(2) One and a quarter percent (1.25%) = Attainment of a Master of Arts or Master of Science degree or the equivalent.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 31 20285
(3) One and a quarter percent (1.25%) = Following attainment of a Bachelor’s degree or Master’s degree, an additional two hundred forty (240) hours of job-related education or training, or the equivalent.
(4) One and a quarter percent (1.25%) = Following attainment of a Bachelor’s degree or Master’s degree, four hundred eighty (480) hours of job-related education or training, or the equivalent.
(5) One and a quarter percent (1.25%) = Following attainment of a Master’s degree, seven hundred twenty (720) hours of job-related education or training, or the equivalent.
(6) One and a quarter percent (1.25%) = Following attainment of a Bachelor’s degree or Master’s degree, nine hundred sixty (960) hours of job-related education or training, or the equivalent.

D. “Equivalents” are defined in the requalification section of this policy.

E. Different certificates will qualify towards EIP based on the certificate’s degree of difficulty, hours required for completion, and the recommendation of the Department Director. Attachment A lists specific certificates and licenses, and the respective EIP points that qualify for EIP.

V. REVIEW PROCESS FOR CERTIFICATIONS
The following review process will be used for assessing how a certification, other than a college course, will count towards EIP:

A. Where possible, the formula found in the “Equivalents other than college units” section of this article will be used to evaluate the degree to which the certificate counts towards EIP.

B. If it is possible to obtain, the Human Resources Manager will contact the agency awarding the certificate and request a statement describing the number of preparation and/or course hours needed to obtain the certificate. This statement will then be converted to formula hours.

C. In the event a determination cannot be made using paragraphs A and B listed above, the employee will make a recommendation to their Department Director and to the Union President or in the absence of the Union President, the Vice-President. This recommendation by the employee shall be in writing and shall include the degree to which the employee feels the certificate should count towards EIP and the justification for such.

D. If these two (2) individuals agree with the employee’s recommendation or if they both agree with a modified recommendation, they will present such to the Human Resources Manager for final determination.

E. The Human Resources Manager, if he/she concurs with the recommendation, will see that such certification is counted towards the employee’s EIP.

F. If the Department Director and Union President cannot agree on a recommendation, the Human Resources Manager will, with both parties present, conduct an informal hearing and allow both individuals to state their recommendation along with appropriate justification.

The Human Resources Manager may decide to choose one of the recommendations presented or a modification of such. The decision of the Human Resources Manager will be final.

G. If both the Department Director and the Union President agree on a recommendation which the Human Resources Manager cannot endorse, the Human Resources Manager will explain

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 32 20285
his/her justifications and attempt to get the parties to modify their recommendation. If agreement cannot be reached the issue will be presented to the City Manager for determination.

H. If the employee is not satisfied with the decision of the City Manager, the employee may file a grievance pursuant to the grievance procedure contained in the AFSCME MOU. The grievance will be advanced to the final step in the grievance process as the City Manager review has already taken place.

VI. PROGRAM QUALIFICATIONS AND GUIDELINES
The following qualifications and guidelines exist to help administer this program:

A. An employee must have completed his/her initial probation before being eligible for this program. Employees on probationary status as a result of promotions shall be deemed eligible under this program.

B. The employee must demonstrate that the course or degree being sought and being considered for the EIP program will be directly related towards enhancing the employee’s present job skills or future promotional opportunities within City. The Human Resources Manager will make this determination after discussions with the employee and the Department Director. The burden of proof as to job relatedness of specific educational levels shall be upon employee. In addition, courses required as part of a degree program will also be considered.

C. Employees should contact their Department Director prior to enrollment in a course or class to receive confirmation that such a class would qualify for this program. The Department Director will contact the Human Resources Office to receive confirmation that a specific course or certification qualifies for EIP.

D. Upon Department Director approval, City will make every effort to reasonably accommodate employee course schedules provided employee workload, overtime budgets, etc. are not adversely impacted.

E. All attendance and participation in this program will be on the employee’s own time and at their own expense.

F. The tuition reimbursement program is a separate benefit contained in the MOU and employees may have the option of using the tuition reimbursement program towards the attainment of their education or professional development goals. Use of the tuition reimbursement program by the employee will not violate any provisions of this article.

G. To qualify for this program, the employee must complete the course(s) with a passing grade of “C” or better. If grades are not assigned, the employee must provide other written certification which demonstrates that the employee has successfully passed the course or obtained certification.

H. Payment of EIP will be effective on the first day of the payroll period following the date of the college degree, course certification, etc., provided the employee has made a timely request to the Human Resources Manager for such pay. In no circumstances will payroll periods be split to match the exact date appearing on the degree or certificate.

I. EIP is based upon education which is in addition to the regular requirements of the job as stated on City’s adopted job description. Employees should refer to each specific job description for the minimum educational requirements. These educational requirements are used as the starting point for EIP calculations.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 33 20285
VII. DOCUMENTATION OF EDUCATIONAL ACHIEVEMENT
A. City will provide an EIP Program form to be kept in the employee’s personnel file to track the employee’s participation in this program.

B. Evidence of successful completion of a degree, course or certificate shall consist of a diploma or certificate indicating the major field of study along with a copy of college transcripts.

C. The employee is responsible to furnish in a timely fashion all necessary documentation to the Human Resources Office.

VIII. TERMINATION OF EDUCATIONAL INCENTIVE PAY
A. EIP shall be terminated at such time as the employee receiving EIP is promoted to or otherwise placed in a position requiring the educational level which the employee already possesses or a higher educational level.

B. In cases where a promotion would cause an employee to lose their EIP due to a reclassification, the employee will receive a new base salary equal to or greater than an amount five percent (5%) above their old base salary and EIP combined.

C. EIP will also be terminated when an employee fails to requalify as per the guidelines outlined in this policy.

D. Once an employee fails to requalify, they will lose their EIP until such time as they have completed the outlined requalification requirements. At such time, the employee will then be able to return to the EIP level they enjoyed before they failed to requalify.

IX. REQUALIFICATION PROCESS
Requalification for continued receipt of EIP shall be training sessions provided by the City during each year of the contract as identified by the Human Resources Manager.

X. EMPLOYEES PREVIOUSLY ON LONGEVITY
A. Effective October 1, 1989, the City’s Longevity Pay Program will be replaced entirely with a special EIP for only those employees still on the Longevity Pay Program as of that date.

The terms of this special program will be as follows:
i. All eligible employees shall be converted to the special EIP program at the same pay as they enjoyed under the Longevity Pay Program. No employee will be allowed to begin receiving longevity pay who is not already receiving such pay prior to October 1, 1989. This special EIP Program assumes that these employees will continue to requalify under the City’s existing EIP program guidelines for continued receipt of EIP.
ii. An employee previously on the longevity pay program may use this special EIP program or they may convert at any time they choose to the regular EIP program outlined in this article. This is a one-way conversion. Once an employee elects the regular EIP Program, he/she may not return to this special EIP Program. iii. Employees covered under the previous longevity program may advance on their anniversary date to the various pay levels of five percent (5%) after ten (10) years Ec

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 34 20285
service, seven- and one-half percent (7.5%) after fifteen (15) years of service, and ten percent (10%) after twenty (20) years of service. Advancement is based upon the assumption that these employees will continue to requalify under the City’s existing EIP program guidelines for continued receipt of EIP pay.

B. Once an employee fails to requalify, they will lose their EIP until such time as they have completed the outlined requalification requirements. At such time, the employee will then be able to return to the EIP level they enjoyed before they failed to requalify.

C. Employees previously on the City longevity program who do not wish to continue to requalify annually may make a one-time decision to freeze their percentage benefit at its current rate.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 35 20285
Attachment A of AFSCME
Educational Incentive Pay Program
List of Qualifying Certificates and Point Values
EIP Point Equivalency

ISSUING

ORGANIZATION

CERTIFICATE NAME GRADE
NO.

EIP POINT
VALUE
State of California Water Treatment Operator I - V 6 points ea.

AWWA Water Distribution Operator I - IV 6 points ea.

AWWA Backflow Prevention Tester n/a 40 hours = 2.5
points
AWWA Cross Connection Specialist n/a 40 hours = 2.5
points
CWEA Collection System Maintenance I - IV 6 points ea.

CWEA Mechanical/Electrical/Instrumentation
Technologist
I - IV 6 points ea.

CSUS Homestudy
Program
Operation and Maintenance of
Wastewater Collection Systems Vol. 1
n/a 6 points
CSUS Homestudy
Program
Operation and Maintenance of
Wastewater Collection Systems Vol. 2
n/a 6 points
CSUS Homestudy
Program
Water Treatment Plant Operation Vol. 1
(90 hours)
n/a 6 points
CSUS Homestudy
Program
Water Treatment Plant Operation Vol. 2
(90 hours)
n/a 6 points
CSUS Homestudy
Program
Small Water System Operation and
Maintenance (90 hours)
n/a 6 points
CSUS Homestudy
Program
Water Distribution System Operation
and Maintenance (90 hours)
n/a 6 points
State of California Qualified Applicators License B 6 points CSUS Homestudy
Program
Manage for Success: Effective Utility
Leadership Practices (45 hours)
n/a 3 points
CSUS Homestudy
Program
Utility Management n/a 1.5 points

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 36 20285

ISSUING

ORGANIZATION

CERTIFICATE NAME GRADE
NO.

EIP POINT
VALUE
CSUS Homestudy
Program
Collection Systems: Methods for
Evaluation and Improving Performance
n/a 2 points
CSUS Homestudy
Program
Small Wastewater System Operation
and Maintenance Volume I (90 hours)
n/a 6 points
CSUS Homestudy
Program
Operation of Wastewater System
Treatment Plants Volume I (90 hours)
n/a 6 points
CSUS Homestudy
Program
Operation of Wastewater System
Treatment Plants Volume II (90 hours)
n/a 6 points
CSUS Homestudy
Program
Operations of Wastewater Treatment
Plants Volume I (90 hours)
n/a 6 points
CSUS Homestudy
Program
Operations of Wastewater Treatment
Plants Volume II (90 hours)
n/a 6 points
State of California Water Distribution Operator I - V 6 points ea.

AWWA Water Treatment Operator I - IV 6 points ea.

AWWA Water Conservation Practitioner n/a 2.5 points
State of California Journeyman Electrician Certification n/a 6 points International Society
of Arboriculture
Certified Arborist n/a 6 points
State of California Class A Drivers License n/a 6 points State of California Real Estate Salesperson License n/a 10 points State of California Real Estate Broker License n/a 25 points State of California Notary Public n/a 3.5 points
State of California General Contractors License n/a up to 4.5 points
IIMC Certified Municipal Clerk n/a up to 38.75
EIP points
ICC Plans Examiner n/a 4 points
ICC Building Inspector n/a 4 points

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 37 20285

ISSUING

ORGANIZATION

CERTIFICATE NAME GRADE
NO.

EIP POINT
VALUE
ICC Electrical Inspector n/a 4 points
ICC Building Code Accessibility/Usability
Specialist
n/a 4 points
ICC Housing Inspector n/a 4 points
ICC Zoning Inspector n/a 4 points
ICC Mechanical Inspector n/a 4 points
ICC Plumbing Inspector n/a 4 points
IICC Light Commercial Combination
Inspector
n/a 4 points
ICC Elevator Inspector n/a 4 points
ICC Special Inspector n/a 4 points
CABO One- and Two-Family Dwelling
Inspector
n/a 4 points
State of California Engineer in Training n/a 7.5 points State of California Professional Engineer n/a 12 points State of California Land Surveyor in Training n/a 7.5 points State of California Land Surveyor n/a 10.5 points
International Assn.
of Administrative
Professionals
Computer Concepts n/a 3
International Assn.
of Administrative
Professionals
Information Systems n/a 3
International Assn.
of Administrative
Professionals
Records Management n/a 3
International Assn.
of Administrative
Professionals
Business Communications n/a 3
International Assn.
of Administrative
Professionals
Human Resources Management n/a 3

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 38 20285

ISSUING

ORGANIZATION

CERTIFICATE NAME GRADE
NO.

EIP POINT
VALUE
International Assn.
of Administrative
Professionals
Accounting n/a 1
International Assn.
of Administrative
Professionals
Management or Supervision n/a 4
International Assn.
of Administrative
Professionals
Organizational Behavior n/a 3
International Assn.
of Administrative
Professionals
Communications n/a 3
International Assn.
of Administrative
Professionals
Leadership n/a 3

RATIONALE FOR ASSIGNING POINT VALUES
In general, certification/license requirements were equated to college units by using our standard formula of three (3) college semester units = forty-eight (48) hours of class time = three (3) EIP points.

None of the organizations listed above offered standard Continuing Professional Education (CPE) credits for the certifications/licenses, however, employees may take preparatory courses at institutions which do offer CPE credits. If such credits are offered, they count toward EIP, with one (1) CPE credit being equal to one (1) college semester unit.

EIP credit may also be given for home study which is not related to a preparatory class, provided that the employee keeps a detailed written log showing the hours of study and the specific topics studied.

For certifications which accept college courses or degrees in lieu of experience, employees will receive credit for the courses/degree under Section IV of the EIP Program.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 39 20285
Real Estate License
The State of California offers two (2) real estate licenses which might be obtained by City employees to benefit their job: a Real Estate Salesperson License, and a Real Estate Broker License. The requirements for each license are outlined below.

Real Estate Salesperson License EIP
Points
Real Estate Broker License EIP
Points
Must be 18 years old 0 Must be 18 years old 0
Must complete 1 3-semester unit
course on Real Estate Principles,
and 2 additional 3-unit courses
within 18 months of receiving the
license (9 semester units total
required)
9 college
units = 9
EIP points
Must take 8 3-unit classes and
have two years of full-time
licensed real estate sales
person experience or a 4-year
degree
24 college
units = 24
EIP points
Pass Real Estate Salesperson exam 1 Pass Real Estate Broker exam 1 TOTAL POINTS 10 TOTAL POINTS 25
Notary Public
The requirements for becoming a Notary Public in the State of California are outlined below.

Notary License EIP Points
Must be 18 years old, legal resident 0
Certified home study, up to 32 hours up to 2
Optional 8-hour preparatory class for the exam .5
Pass Notary exam 1
TOTAL POSSIBLE POINTS up top 3.5
General Contractors License
The requirements for obtaining a General Contractors License in the State of California are outlined below.

General Contractors License EIP Points
Must have 4 years of experience at the journey level (or a BS degree and 1 year of experience)
0 Certified home study, up to 32 hours up to 2
Optional 24-hour preparatory class for the exam 24 hours = 1.5 EIP points

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 40 20285
General Contractors License EIP Points
Pass General Contractors exam 1
TOTAL POSSIBLE POINTS up to 4.5
Certified Municipal Clerk
The process for becoming a Certified Municipal Clerk varies considerably depending on the work experience and educational level of the applicant. This table summarizes the primary ways individuals become a Certified Municipal Clerk and assigns EIP points for individuals working on this certification. A copy of the IIMC application for certification is available for review.

Certified Municipal Clerk EIP Points
Must be a City or Deputy City Clerk, a 3-year member of IIMC, accept the IIMC Code of Ethics, submit an application form, and have a letter from a Clerk sponsor
0 Educational Requirements: Must attend a 100-hour Clerks Institute, have a BA degree in Public Administration or a related field, or have an AA in Public Administration and 67 of Clerks Institute training
100 hours = 6.25 EIP
points
Experience Requirements: Must obtain 50 IIMC points based on a combination of work experience, Municipal Clerks Conferences, and relevant college/university course credits not included in educational qualifications.

Depends on method of
meeting the requirement
Up to 40 IIMC points for work experience: 4 points per year for a full-time Municipal or Deputy Clerk with administrative responsibility
0 EIP points for work
experience
Up to 20 IIMC points for attending IIMC Conferences (1 IIMC point per 6-hour day; total 120 hours)
up to 7.5 EIP points for
120 hours at conferences
Up to 25 IIMC points for college course credits, 1 pt=1 course hour
25 college credits = 25
EIP points
TOTAL POSSIBLE POINTS up to 38.75

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 41 20285
ICBO and CABO Certifications
The International Code Council (ICC) and the California Association of Building Officials (CABO) offer a number of different certifications (Plans Examiner, Building Inspector, Plumbing Inspector etc.) useful for the professional development in certain fields. The certification process for each of the certificates list above is the same and is summarized below.

ICC /CABO Certificates EIP Points
Certified home study, up to 32 hours up to 2
Optional 8-hour exam preparation class 8 hours = .5 EIP points Pass ICC /CABO exam 1.5
TOTAL POSSIBLE POINTS up to 4
Engineer-in-Training
The requirements to obtain an Engineer-in-Training certificate are outlined in the California Business and Professions Code and are summarized below.

Engineer-in-Training Certificate EIP Points
Three years of engineering experience or 3 years of college education (90 units) in an engineering curriculum
0 EIP points for
experience
Certified home study, up to 48 hours up to 3
Optional 42-hour exam preparation class 42 hours = 3 EIP points Pass EIT exam 3
TOTAL POSSIBLE POINTS up to 9 EIP points
Professional Engineer
The requirements to obtain a Professional Engineer certificate are outlined in the California Business and Professions Code and are summarized below.

Professional Engineer Certificate EIP Points
Six years of engineering experience or 4-year college degree in an engineering curriculum plus two years of experience
0 EIP points for
experience
Certified home study, up to 96 hours up to 6
Optional 42-hour exam preparation class 42 hours = 3 EIP points Pass PE exam 6
TOTAL POSSIBLE POINTS up to 15 EIP points

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 42 20285
Land Surveyor-in-Training
The requirements to obtain a Land Surveyor-in-Training certificate are outlined in the California Business and Professions Code and are summarized below.

Land Surveyor-in-Training Certificate EIP Points
Two years of land surveying experience or 2 years post-secondary education in land surveying (60 units)
0 EIP points for
experience
Certified home study, up to 48 hours up to 3
Optional 42-hour exam preparation class 42 hours = 3 EIP points Pass LSIT exam 3
TOTAL POSSIBLE POINTS up to 9 EIP points
Land Surveyor
The requirements to obtain a Land Surveyor certificate are outlined in the California Business and Professions Code and are summarized below.

Land Surveyor Certificate EIP Points
Six years of engineering experience or 4-year college degree in (120 units) in an engineering curriculum plus two years of experience
0 EIP points for
experience
Certified home study, up to 96 hours up to 6
Optional 42-hour exam preparation class 42 hours = 3 EIP points Pass Land Surveyor exam 3
TOTAL POSSIBLE POINTS up to 12 EIP points

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 43 20285
Exhibit ED

CITY OF MORGAN HILL & AFSCME,
LOCAL 101

DRUG AND ALCOHOL TESTING PROGRAM

PURSUANT TO THE DEPARTMENT OF

TRANSPORTATION REGULATIONS
EFFECTIVE DATE: November 3, 1997
REVISED: July 1, 2003

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 44 20285
Effective January 1, 1996, the City of Morgan Hill must comply with the United States Department of Transportation regulation implementing the Federal Omnibus Transportation Employee Testing Act (OTETA) of 1991. OTETA requires the City to establish alcohol and drug testing programs to help prevent the misuse of alcohol and drugs by drivers of commercial motor vehicles. Keeping in mind the basic objectives stated in the City of Morgan Hill Policy on Substance Abuse, which went into effect September 26, 1989, the City has established the following alcohol and drug testing procedures and program in compliance with the OTETA, hereafter referred to as "the program".1 Employees covered by this program are subject to pre-employment, cause, and random testing, and may be subject to post-accident, return-to-duty and unannounced follow-up testing. The testing procedures use an evidential breath test (EBT) device for alcohol testing. For drug testing, urine specimen collection and testing by a laboratory certified by the Department of Health and Human Services is required. If the Medical Review Officer (MRO) determines that an employee has misused alcohol or drugs in violation of this program, the City will remove the employee from safety-sensitive functions. The employee will not perform safety-sensitive functions until the employee meets the requirements established in this program which may include referral to a Substance Abuse Professional (SAP), participation in a rehabilitation program, return-to duty testing, and/or follow-up testing.

DEFINITIONS
Following are the definitions for the Drug and Alcohol Testing Program. This is a list of major definition areas and is not intended to be all inclusive of definition or terms.

WORD/PHRASE DEFINITION
Adulterated
Specimen
A specimen that contains a substance that is not expected to be present in human urine or contains a substance expected to be present but is at a concentration so high that it is not consistent with human urine.

Alcohol The intoxicating agent in beverage alcohol, ethyl alcohol, or other low molecular weight alcohol including methyl and isopropyl alcohol.

Alcohol
Concentration (or
Content)
The alcohol in a volume of breath expressed in terms of grams of alcohol per 210 liters of breath as indicated by an evidential breath test under this part.

Collection
Agency
State licensed service provider that follows procedures for the collection of urine samples in a split specimen process for delivery to a toxicological laboratory for testing.

Collection Site A place where individuals present themselves for the purpose of providing breath or urine samples to be analyzed for specified alcohol or drugs.
1This program meets the federal regulatory requirement that the City promulgate policies and procedures on the misuse of alcohol and use of controlled substances.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 45 20285

WORD/PHRASE DEFINITION
Commercial
Motor Vehicle
(CMV)
A motor vehicle or combination of motor vehicles used in commerce or transport passengers or property if the motor vehicle:

1. Has a gross vehicle weight rating of 26,001 or more
pounds; or

2. Has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle
weight rating of more than 10,000 pounds; or

3. Is designed to transport 16 or more passengers including the driver; or

4. Is of any size and is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act and which require the motor vehicle to be placarded under the Hazardous Materials
Regulations (49 CFR part 172, subpart F).

Controlled
Substance
Drugs as deemed under this policy include marijuana, cocaine, opiates, amphetamines, phencyclidine (PCP).

DOT Federal Department of Transportation
Driver Any person who operates a commercial motor vehicle. This includes, but is not limited to: full time, regularly employed drivers, casual, intermittent or occasional drivers, and leased drivers and independent, owner-operator contractors who are either directly employed by or under lease to the City or who operate a commercial motor vehicle at the direction of or with the consent of the City. For the purposes of preemployment/ pre-duty testing only, the term "driver" includes a person applying to the City to drive a commercial motor vehicle.

Drug Any substance (other than alcohol) that is a controlled substance as defined above and 49 CFR Part 40.

FHWA The Federal Highway Administration, U.S. Department of Transportation.

OwnerOperator (s)A driver(s) who has been contracted for services with the District. For the purposes of these procedures and the City's Alcohol and Controlled Substances Abuse Policy, owner-operators are not to be considered employees, but will be required to participate in the City's Alcohol and Controlled Substances Abuse Policy like all employee drivers.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 46 20285

WORD/PHRASE DEFINITION
Medical Review
Officer (MRO)
A licensed physician accredited by the Medical Review Officers' Association National with knowledge and expertise of the clinical and medical diagnosis and treatment of alcohol and drug related disorders.

On Duty Time All time from the time a driver begins to work or is required to be in readiness to work until the time the driver is relieved from work and all responsibility for performing work. "On duty time" shall include:

1. All time at a City facility or other City property, or on any public property, waiting to be dispatched, unless the driver has been relieved from duty by the City;

2. All time inspecting, servicing, or conditioning any
commercial motor vehicle at any time;

3. All driving time;

4. All time, other than driving time, in or upon any
commercial motor vehicle;

5. All time loading or unloading a vehicle, supervising, or assisting in the loading or unloading, attending a vehicle being loaded or unloaded, remaining in readiness to
operate the vehicle, or in giving or receiving receipts for shipments loaded or unloaded;

6. All time spent performing the driver requirements relating to accidents;

7. All time repairing, obtaining assistance, or remaining in attendance upon a disabled vehicle.

Performing (a
safety-sensitive
function)
A driver is performing a safety-sensitive function during any period in which the driver is actually performing, ready to perform or immediately available to perform any safety-sensitive functions.

Positive Test A test is only positive and reported to the City when the initial screening test is positive, the confirming test is positive, and the Medical Review Officer has discussed with the employee the results of the two tests and ascertained that the tests are accurate.

Provider Certified professional/agency contracted to provide services prescribed by this program.

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WORD/PHRASE DEFINITION
Reasonable
Suspicion
The City believes the actions or appearance or conduct of a commercial motor vehicle driver who is on duty as defined below, are indicative of the use of alcohol or drugs.

Refusal to Submit
(to an alcohol or
drug test)
A covered employee who (1) fails to arrive at the collection site within a reasonable time, as determined by the employer, (2) refuses to take an alcohol or drug test, (3) fails to provide adequate breath for testing without a valid medical explanation after he/she has received notice of the requirement for breath testing in accordance with FHWA regulations, (4) fails to provide adequate urine for drug testing without a valid medical explanation after he or she has received notice of the requirement for urine testing in accordance with FHWA regulations, (5) provides a Verified Adulterated or Substituted test, (6) engages in conduct that clearly obstructs the testing process, (7) fails to remain at the collection facility until all testing is completed, or (8) refuses to submit to a direct observation when required by the collector or employer. A refusal includes not providing a breath sample or urine as directed, refusing to sign appropriate control forms, not being readily available following an accident, using alcohol within eight hours of an accident, or tampering with a sample.

Safety-Sensitive
Function
Any of those on-duty functions set forth in 49 CFR section 395.2 and as defined under "On duty time."
Split-Specimen A division of the original urine sample that is stored by the lab when provided by the collection agency for a second test to be used when the primary test results are challenged.

Substance Abuse
Professional
(SAP)
A licensed physician, or a licensed or certified psychologist, social worker, employee assistance professional, or addiction counselor (certified by the National Association of Alcoholism and Drug Abuse Counselors Certification Commission) with knowledge of and clinical experience in the diagnosis and treatment of alcohol and drug related disorders.

Substituted
Specimen
A specimen with creatine and specific gravity values that are so diminished that they are not consistent with human urine.

Supervisor Any one of the following positions: Director of Public Works, Utility Systems Manager, Maintenance Supervisor, or in their absence, a designated trained individual.

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WORD/PHRASE DEFINITION
Toxicological
Laboratory
A drug abuse service laboratory licensed to perform alcohol and drug testing under the auspices of the federal government with specific expertise and chain of custody procedures, split specimen sampling, and drug/alcohol record-keeping methodologies. The agency must have all necessary personnel, materials, equipment, facilities and supervision to provide for the collection, security, temporary and long-term storage and transportation or shipment of the samples to a laboratory.

I. COVERED EMPLOYEES
A. Covered employees must comply with the alcohol and drug testing requirements of this program. "Covered employees" are those employees who are required to drive, may be required to drive, or have the potential to drive, and who meet any of the three (3) following qualifications:

1. They are required by the City to possess a Commercial Driver's License (Class A or B) to do their jobs.
a. This includes all regular, probationary, temporary, and work-out-of class assignments in job positions which require a Commercial Driver's License.
b. This also includes applicants to jobs with the City which require the possession of a Commercial Driver's License.

2. They operate a commercial motor vehicle.
“Commercial motor vehicle" means a motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the motor vehicle:
a. Has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than 10,000 pounds; or
b. Has a gross vehicle weight rating of 26,001 or more pounds; or c. Is designed to transport 16 or more passengers, including the driver; or

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d. Is of any size and is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act and which require the motor vehicle to be placarded and over 1,000 lbs. under the Hazardous Materials Regulations.2

3. They are performing safety-sensitive functions.
a. "Safety-sensitive function" means any of the following functions:
1) All time spent at the driving controls of a commercial motor vehicle in operation;
2) All time, other than driving time, in or upon any commercial motor vehicle except time spent resting in a sleeper berth; 3) All time loading or unloading a vehicle, supervising, or assisting in the loading or unloading, attending a vehicle being loaded or unloaded, remaining in readiness to operate the vehicle, or in giving or receiving receipts for shipments loaded or unloaded;
4) All time spent performing the requirements for covered employees who are involved in an accident, as further described in Section X;
5) All time repairing, obtaining assistance, or remaining in attendance upon a disabled vehicle;
6) All time inspecting, servicing or conditioning any commercial motor vehicle at any time.
b. A covered employee" performs a safety-sensitive function" during any period in which the employee is actually performing, ready to perform, or immediately available to perform any safety-sensitive function. c. Employees who have the required commercial license and who want to be immediately available to perform safety-sensitive functions in a temporary, stand-by, call back, or work-out-of-class status will be subject to the provisions of this program.

4. Covered employees will also include any employee who has a Commercial Driver's License where the medical examination and/or license fees are paid for by the City.
2 49 C.F.R. Section 390.5

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II. GENERAL PROVISIONS FOR ALL ALCOHOL AND DRUG TESTING PROGRAMS A. Notice to Covered Employees That Alcohol and Drug Testing is Required By Federal Law
Before performing an alcohol or drug test under this program, the City shall notify the employee that the alcohol or drug test is required by federal law.

B. Administration of the City's Alcohol and Drug Testing Program The City has designated the Drug Program Coordinator in the Human Resources Office to answer employee questions about the City's alcohol and drug testing program and procedures.

C. Record Retention Requirements
In compliance with the record retention requirements under the OTETA, the City shall maintain confidential records of its alcohol and drug misuse prevention program in a secure location with controlled access. Records of positive results, documentation of refusals to take test, calibration documentation for breath testing devices, and driver evaluation and referrals shall be maintained for five (5) years in accordance with federal law. The City or its service agent shall generate an annual calendar year summary of the results of its program, which will also be retained for five (5) years.

Records relating to the alcohol and drug collection process and training, including collection logbooks, documents relating to the random selection process, breath alcohol technician training, documents relating to reasonable cause tests, post-accident tests, and random tests, compliance, and evaluation, shall be maintained for up to five (5) years. The City or its service agent shall prepare an annual summary by March 15 for the previous year containing specific information as to the number of covered employees, employees who refused to submit to tests, the number of supervisors receiving training, the covered employees, the number and types of tests given, the results, the number of covered employees who refused to submit to tests, the number of supervisors receiving training, the covered employees who returned to duty after a positive test, and other similar information.

D. Access to Records
Covered employees are entitled, upon written request to the Human Resources Office, to obtain copies of any records pertaining to the employee's misuse of alcohol or drugs, including any records pertaining to his or her alcohol or drug tests. The City shall promptly provide the records requested by the employee.

Copies of or information in these records shall not be otherwise released to any other person except as follows:

1. To the Drug Program Coordinator and the City Manager who require access to

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these records to comply with the requirements of federal law and this program;

2. To federal, state or local officials with regulatory authority over the City or any of its covered employees and who have legitimate need for access;

3. To a decision maker in connection with a lawsuit, grievance, or other proceeding initiated by or on behalf of the employee, and arising from the results of an alcohol and/or drug test administered under this program, or from the City's determination that the covered employee engaged in conduct prohibited by Section III; or

4. To a person identified by the covered employee in accordance with the terms of the employee's written consent authorizing such release.

E. Confidentiality and Recordkeeping
The City desires to comply with the confidentiality and recordkeeping requirements.

As such, the City stipulates that with the exception of the Drug Program Coordinator or designee, Collection Facility, Testing Laboratory, MRO and SAP, the results of individual tests shall not be released to anyone without the expressed written authorization of the tested individual, unless ordered by means of proper legal procedure and appropriate legal authority, such as a court ordered subpoena, or in connection with a City disciplinary, grievance or arbitration proceeding initiated by or on behalf of the individual and arising from a certified positive alcohol or drug test.

To maintain confidentiality, records pertaining to program administration, the collection process and individual test records will not be a part of the individual personnel files. A separate test recordsretention system will be maintained by the Drug Program Coordinator.

The records will be secured and maintained by the Drug Program Coordinator. Access to the test records is restricted to the Drug Program Coordinator and the City Manager.

The release to City Management of such information from the Drug Program Coordinator, medical sources of MRO will require the signed release of the employee.

Unless noted, such records are permanent and are subject to examination by the Drug Program Coordinator, the City Manager or their designee.

However, information related to an employee's availability for work will be provided to the employee's supervisor to ensure that an employee is removed from a safetysensitive function when necessary or accommodated in a non-safety-sensitive function, when appropriate. In the case of reasonable cause testing, the supervisor will receive the results of the alcohol and/or drug tests.

Collection and test records of employees producing negative alcohol and drug tests must be retained for one (1) year. Collection and test records of employees producing

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positive alcohol tests of 0.02% Breath Alcohol Concentration (BAC) or greater must be retained for three (3) years and positive drug test must be retained for five (5) years.

The following lists of records shall be retained and maintained by the Drug Program Coordinator:

1. Supporting documents for pre-employment, post accident, reasonable cause or random testing decisions.

2. Records of 2 (2) year drug and alcohol testing histories of new hires.

3. Records of the collection process to indicate specimen identification, accountability and chain of custody.

4. Any individual reports or records provided directly to the tested employee by the MRO.

5. Records of test results and any information provided by the affected employee concerning split samples, retests, or follow-up tests.

6. Return to work test records.

7. All reports forwarded to reporting agencies.

8. Records and documents provided by the Drug Program Coordinator, Rehabilitation Agencies and any consultants.

III. PROHIBITIONS
A. It is UNLAWFUL for covered employees to do the following:

1. To perform safety-sensitive functions after a positive alcohol test result indicating a 0.04% BAC or a positive drug test result, regardless of when the alcohol or drug was ingested and regardless of whether the employee is under the influence of alcohol or drugs;

2. Report for duty or remain on duty requiring the performance of safety-sensitive functions while having an alcohol concentration of 0.04% or greater. No employer having actual knowledge that a driver has an alcohol concentration of 0.04% or greater shall permit the driver to perform or continue to perform safety-sensitive functions. (See Federal Register, Section 382.201);

3. Perform or continue to perform safety-sensitive functions with an alcohol concentration of 0.02% to 0.04% (see Federal Register, Section 382.505);

4. To use alcohol or products containing alcohol while performing safetyPage 125 of 257 AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 53 20285
sensitive functions;

5. To perform safety-sensitive functions within four (4) hours after using alcohol or products containing alcohol;

6. To use alcohol or products containing alcohol for eight (8) hours following an accident for which the employee isrequired to take a post-accident alcohol test;

7. To report for duty or remain on duty and perform safety-sensitive functions when the employee is currently using a drug, unless the use of the drug is prescribed by a physician. Employees who are taking prescribed medication that may impair their ability to perform safety-sensitive functions are required to inform their supervisor immediately and prior to performing any safety sensitive functions.

8. To refuse to submit to any of the alcohol or drug test required by OTETA (random, post-accident, reasonable cause, follow-up, return to duty test) and alcohol/drug testing rules as described in this program.

A "Refusal to submit" to an alcohol or drug test means that a covered employee:
a. Fails to arrive at the collection site within a reasonable time, as determined by the employer;
b. Refuses to take the test;
c. Fails to provide adequate breath for testing without a valid medical explanation after he or she has received notice of the requirement for breath testing in accordance with this program;
d. Fails to provide adequate urine for drug testing without a valid medical explanation after he or she has received notice of the requirement for urine testing in accordance with this program;
e. Provides a Verified Adulterated or Substituted test; f. Engages in conduct that clearly obstructs the testing process; g. Fails to remain at the collection facility until all testing is completed; or
h. Refusesto submit to a direct observation when required by the collector or the employer.

B. The following drugs are specified in the law and will be analyzed during drug testing:

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Drug Initial Screen (ng/ML) Confirmation Level
Marijuana 50 15
Cocaine 300 150
Amphetamines/
Methamphetamine
1,000 500
Opiates 300 300
Phencyclidine (PCP) 25 25

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IV. CONSEQUENCES TO ENGAGING IN ANY GENERAL PROHIBITION Any covered employee who engages in any action prohibited by this program under Section III will be subject to the following consequences.3
A. The employee shall be relieved from performing safety-sensitive functions.

B. The employee shall be immediately suspended according to Section VI.

C. The employee shall be evaluated by a SAP who shall determine what assistance, if any, the employee needs in resolving problems associated with the misuse of alcohol or drugs.

D. After the completion of the suspension period, the employee may return to work as soon as medically certified by the MRO/SAP. The employee must, however, provide a negative test result and be certified for return to duty no later than ninety (90) calendar days after notification of the positive test result.

The employee must, at a minimum, provide six (6) follow-up tests during the first year following the employee’s return to safety sensitive duties. The SAP will establish the number and frequency of follow-up tests and that follow-up testing may last up to five (5) years. Failure to be certified by the MRO/SAP or return to work shall result in termination.

1. The employee may use accumulated vacation, sick leave, personal leave, comp time or leave without pay while undergoing treatment/rehabilitation.

2. Leave accruals may not be used for discipline such as a suspension.

3. Any employee who is given an alcohol confirmation test according to 49 CFR

40.65 by the BAT and the BAC level is 0.02% or greater, but less than 0.04%, shall be required to take leave without pay or use vacation or personal leave, but not sick leave time, until the driver's next regularly scheduled duty period, but not less than twenty four (24) hours following administration of the test.

Any employee who is given an alcohol confirmation test by the BAT and the BAC level is 0.02% or greater, but less than 0.04%, on the second time shall be suspended without pay for five (5) regularly scheduled work days. The employee shall be referred to the SAP for evaluation and assessment of fitness for duty.

4. Any employee who has a BAC level that is 0.02% or greater, but less than

0.04%, on the third time within a five (5) year period will be treated as the second step in random testing.
3 For consequences to outside applicants, please see Section VIII (D)(4) of this program regarding preemployment testing.

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E. Any covered employee who refuses to submit to an alcohol or drug test required by this program shall be terminated.

F. The City's Drug Program Coordinator or designee will assist in advising the employee of the resources available to the employee in evaluating and resolving problems associated with the misuse of alcohol or drugs, including the names, addresses, and telephone numbers of SAPs and counseling and treatment programs.

V. SELF-IDENTIFICATION PROCEDURE
Covered employees are encouraged to advise the City if they are involved with the misuse of alcohol or for the use of drugs. This procedure is available only to covered employees who have not been notified of a random test, reasonable cause test, or a post-accident test. This procedure cannot be used by covered employees to avoid the consequences for a positive test or a refusal to test.

PROCEDURE
If an employee self-identifies a problem with misuse of alcohol or drugs, the City will refer the employee to a SAP. Prior to returning to a safety-sensitive position, the employee will be tested.

If the SAP determines that the employee requires participation in a rehabilitation program, the employee will be referred to his/her own medical insurance plan and/or the City's Employee Assistance Program (EAP). The City is not required to pay for treatment beyond the cost contributed for those programs as stated in the AFSCME MOU.

If an employee self-identifies a second time, it will be treated as a first incident of a positive test through random testing.

VI. PERSONNEL ACTIONS
A. Disciplinary Action for Misconduct
Any covered employee who engages in an act prohibited by Section III violates federal law. Employee violations of this program may constitute misconduct under the City of Morgan Hill's Personnel Rules and Regulations, Section 11, "Disciplinary Actions" as may be amended from time to time.

B. Nothing in this section shall be interpreted as interfering with the City's right to remove from the workplace an employee who poses a direct threat to another employee or others.

C. All disciplinary action under this program is subject to the disciplinary procedures contained in the City's Personnel Rules and Regulations.

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D. The following is a guideline for disciplinary action when an employee violates the City's alcohol and drug program. Discipline shall be based on the degree of the offense and in accordance with the following guidelines:

E. DISCIPLINARY GUIDELINES

RANDOM TESTING
1st Incident * Counseling
* Suspension (5 days)
* Participate and complete rehabilitation, if necessary * Last Chance Agreement
2nd Incident * Termination

POST ACCIDENT TESTING
1st Incident * Discipline (suspension or termination) dependent on seriousness of accident and/or the degree of disregard for safety
* “Last Chance” Agreement
* Participate and complete rehabilitation, if necessary 2nd Incident * Termination

REASONABLE SUSPICION
1st Incident * Counseling
* Suspension (5 days)
* “Last Chance” Agreement
* Participate and complete rehabilitation, if necessary 2nd Incident * Termination

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SELF-IDENTIFICATION
1st Incident * No discipline
* Referred to SAP
* Participate and complete rehabilitation, if necessary 2nd Incident * Termination

PROBATIONARY EMPLOYEES
Positive Drug Test * Termination of probation. However, at the City's option, if an employee has status in a previous classification, the employee's probationary appointment may be terminated, or the employee may remain on probation and be subject to these disciplinary guidelines depending on the severity of the case and the classification
Positive Alcohol Test
(.04 or greater)
* Termination of probation. However, at the City's option, if an employee has status in a previous classification, the employee's probationary appointment may be terminated, or the employee may remain on probation and be subject to these disciplinary guidelines depending on the severity of the facts of the case and the classification.

Positive Alcohol Test
(.02 to .04)
* Termination of probation. However, at the City's option, probationary employee may be referred to SAP and required to participate in rehabilitation, if necessary. Any second positive test for alcohol during probation will result in termination of probation. However, at the City's option, if an employee has status in a previous classification, the employee may remain on probation and be subject to these disciplinary guidelines depending on the severity of the case and the classification.

Any second positive test showing a result between 0.02% and 0.04% after completion of probation will be treated as the first step in the appropriate category.

OTHER FACTORS

1. If an employee has a confirmed positive test from follow-up testing, the employee will be given a last chance agreement unless he/she is already on a last chance agreement at whichpoint he/she will be terminated.

2. If an employee is required by the SAP to participate in rehabilitation and the employee refuses to participate in the required rehabilitation program, the employee will be terminated.

3. If an employee is required by the SAP to participate in rehabilitation and the employee fails to complete the required rehabilitation program, the employee will be terminated.

4. If an employee refuses to be tested under this program, the employee will be terminated.

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VII. DRUG AND ALCOHOL TESTING METHODOLOGY
A. Alcohol Testing
Alcohol testing shall be done based on an "evidential breath testing device" which is the testing method used by law enforcement officials in drunk driving cases. A breath alcohol technician shall explain the test to the employee being tested and properly administer the test to the employee.

B. Drug Testing
Drug testing shall be done based on a "split specimen" procedure of collecting and analyzing urine samples. The specimen taken will be divided into primary and secondary specimens. If the primary specimen test is positive, the employee shall be informed of their right to request a test of the secondary specimen by a separate laboratory or by the same laboratory, if they choose, at the employee's expense. The employee will be removed from the safety-sensitive function pending the outcome of the secondary sample test results. The employee has seventy-two (72) hours within which to make the request for the secondary sample test. If the secondary test result is negative, the City shall reimburse the employee for the cost of the secondary test and all references to the positive test will be expunged from all records. If the secondary test result is positive, the employee will be subject to the procedures in Personnel Rules Section VI.

C. Chain of Custody/Confidentiality
All alcohol and drug tests required to be administered to covered employees under this program shall be conducted by the City's service providers to ensure appropriate chain of custody and confidentiality of results.

VIII. PRE-EMPLOYMENT ALCOHOL AND DRUG TESTING
A. Preface
Prior to performing any safety-sensitive functions for the City, the employee or applicant shall undergo testing for alcohol and drugs. The City shall not allow a covered employee to perform safety-sensitive functions unless the employee has been administered an alcohol test with a result indicating an alcohol concentration less than

0.02% and has received a drug test result indicating a verified negative test result.

B. Procedures

1. All regular, probationary, temporary, limited term, and work-out-of class assignments in job positions which require a Commercial Driver's License and the performance of safety-sensitive functions are subject to pre-employment testing.

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2. All persons selected by the City Manager and offered a position from an appropriate employment list for a job position requiring a Commercial Driver's License and the performance of safety-sensitive functions are subject to preemployment testing. This section applies equally to current employees of the City and outside applicants. The drug samples may be collected during preemployment medical examinations and the samples will be provided to the City certified laboratory.

3. Every job announcement and internal transfer opportunities bulletin for a position requiring a Commercial Driver's License and the performance of safety-sensitive functions will include a written statement of the alcohol and drug testing requirement as stated above.

4. Pursuant to the City's Policy regarding Substance Abuse, all job positions are subject to pre-employment alcohol and drug testing.

5. All pre-employment alcohol and drug tests will be conducted by the City's service providers to ensure appropriate chain of custody and confidentiality of results.

C. Exceptions to Pre-Employment Testing

1. Persons employed by the City upon implementation of the program and who are in positions requiring the possession of a Commercial Driver's License and the performance safety-sensitive functions will not be required to submit to initial drug testing to continue in their jobs. Commencing on implementation of the program, all other persons who are entering into positions requiring the possession of a Commercial Driver's License and the performance of safetysensitive functions, for example, but not limited to, new hires, rehires, transfers, and return-to-duty from any leave of absence for 20 consecutive working days or more, shall be required to submit to pre-employment testing under this program.

2. Current employees in covered classes will not be required to submit to preemployment testing if they have been tested within the last twelve (12) months in their current position.

3. Current employees of the City who wish to be eligible for temporary or workout-of-class assignments and have previously passed pre-employment alcohol and drug tests and agreed to remain within the pool of employees from which random testing is conducted.

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D. Consequences

1. Any covered employee who tests positive on a drug test or has an alcohol test result of 0.04% BAC or greater will be removed from the safety-sensitive eligibility list and will be subject to the provisions in Section IV. The employee may, however, reapply for future safety-sensitive position with the City and will be subject to testing in accordance with this program at that time.

2. If the pre-employment alcohol test result indicates a BAC of 0.02% or greater but less than 0.04%, the employee will have the right to request retesting of the second split specimen at their expense. If the retest result is negative, the employee will be reimbursed the cost by the City and the employee will be considered for the safety sensitive position. If the retest is positive, the employee will be removed from the safety-sensitive eligibility list and will be subject to the provisions in Section IV. The employee may, however, reapply for future safety-sensitive positions with the City and will be subject to testing in accordance with this program at that time.

3. All outside applicants for positions with the City which require the possession of a Commercial Driver's License and the performance of safety-sensitive functions must submit to pre-employment alcohol and drug testing without exception. Any applicant who has a confirmed positive test for alcohol or drugs or refuses to take the test will not be hired.

IX. NEW HIRE DRUG AND ALCOHOL RECORD CHECK
A. Preface
The City is required to request information about safety-sensitive function employees from previous DOT-regulated employers who have employed the new hires during any period preceding the two (2) years before the date of the new hire’s application or transfer. After obtaining written consent from the employee, the City must request information from previous DOT-regulated employers regarding alcohol tests with results of 0.04% or higher concentration, verified positive drug tests, refusals to be tested and other violations of DOT agency and drug and alcohol testing regulations. In respect to any employee who violated a regulation, the City must obtain documentation of the employee’s successful completion of DOT return-to-duty requirements.

B. Procedures

1. The City will obtain the written consent of any employee seeking to begin performing safety-sensitive duties for the first time, such as a new hire or an employee transferring into a safety-sensitive position. If the employee refuses to provide this written consent, the City will not permit the employee to perform safety-sensitive functions.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 62 20285

2. The City will request the following information from the employee’s previous DOT-related employers:
a. Alcohol tests with a result of 0.04% or higher alcohol concentration. b. Verified positive drug tests.
c. Refusals to be tested (including verified adulterated or substituted drug test results).
d. Other violations of DOT agency drug and alcohol testing regulations. e. With respect to any employee who violated a DOT drug and alcohol regulation, documentation of the employee’s successful completion of DOT return-to-duty requirements including follow-up tests. If the previous employer does not have information about the return-to-duty process (e.g., an employer who did not hire an employee who tested positive on a pre-employment test) the City will seek to obtain this information from the employee.
f. This information obtained from a previous employer includes any drug or alcohol test information obtained from previous DOT-regulated employers. The City will obtain a release of information from the new hire. This release will accompany the request for information, and will maintain a written, confidential record of this information, including the date, the party to whom it was released, and a summary of the information provided.

3. The City will maintain a written, confidential record of the information obtained or of the good-faith effort made to obtain the information. The City will retain this information for three (3) years from the date of the employee’s first performance of safety-sensitive duties.

4. The City must ask the employee whether he or she has tested positive, or refused to test, on any pre-employment drug or alcohol test administered by an employer to which the employee applied for, but did not obtain, in safetysensitive work covered by DOT agency drug and alcohol testing rules during the preceding two (2) years. If the employee admits that he or she had a positive test or a refusal to test, the City will not use the employee to perform safetysensitive functions unless the employee documents successful completion of the return-to-duty process.

5. If the City has not obtained results pre-employment drug or alcohol testing or made a documented good-faith effort to obtain this information within thirty (30) days of the hire date, the employee must be removed from performance of safety-sensitive functions.

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6. The City must comply with requests for two (2) year drug and alcohol testing histories from any future employers of personnel covered by this policy.

X. RANDOM ALCOHOL AND DRUG TESTING
A. Preface
Covered employees are required to submit to alcohol and drug testing on a random basis. Twenty-five percent (25%) of the average number of covered employee positions shall be subject to random alcohol testing in each calendar year. Fifty percent (50%) of the average number of covered employee positions shall be subject to random drug testing in each calendar year. The City will change the minimum annual percentage testing rate in compliance with any change by the Federal Highway Administration (FHWA) Administrator to increase or decrease the annual violation rate. The FHWA annual violation rate is based on the reported rate for commercial drivers.

B. Procedures

1. The Provider shall randomly select a sufficient number of covered employees for alcohol and drug testing during each calendar year to equal an annual rate not less than the minimum annual percentage rate established by the FHWA Administrator.

2. The Provider shall select covered employees for random alcohol and drug testing by a scientifically valid method, such as a random number table of a computer-based random number generator matched with the covered employees' Social Security numbers, City identification numbers, or other comparable identifying number. Under the selection process used, each covered employee shall have an equal chance of being tested each time selections are made.

3. Random alcohol and drug tests shall be unannounced and the dates for administering random alcohol and drug tests shall be spread reasonably throughout the calendar year.

4. Each covered employee who is notified of selection for random alcohol or drug testing shall go to the test site immediately. If a notified employee is performing a safety-sensitive function, the employee shall cease to perform that safety-sensitive function and go to the testing site as soon as possible.

5. A covered employee shall only be tested for alcohol while the employee is performing safety-sensitive functions, four (4) hours before the employee is to perform safety-sensitive functions, or four (4) hours after the employee has

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 64 20285
ceased performing such functions. The employee will be on City paid time during the testing process

6. A covered employee may be tested for drugs at anytime while the employee is at work for the City.

7. The City shall not require any covered employee to submit to a random test while the employee is off work. If a covered employee is off work, the City will skip the employee's name and the next employee's name on the selection list will be selected and tested. The City shall document that the employee was off work and that the employee was in the random selection pool for that cycle.

If the employee's absence lasts for more than thirty (30) days, the preemployment testing provisions of this program shall apply.

8. Employees performing safety-sensitive functions may be tested for alcohol with a pre-trip inspection. . However, if the pre-trip inspection is not appropriate, the employee may be requested to perform other safety-sensitive functions (e.g., driving a truck or loading a truck) in order to comply with the requirements for alcohol testing.

9. Upon notification of a Negative Dilute, the City may immediately re-test the employee.

C. Consequences

1. Covered employees shall be subject to the referral, evaluation, and rehabilitation requirements in Section IV and may be subject to disciplinary action under Section VI if they refuse to submit to a random alcohol or drug test or if they have an alcohol test with a result indicating an alcohol concentration of 0.04% or greater or a drug test with a verified positive test result.

2. Any covered employee who has engaged in conduct in violation of Section III concerning the use of alcohol or who has had an alcohol test with a result of

0.02% to 0.04% BAC or greater shall not return to duty until the employee has submitted to a return to duty alcohol test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, if necessary, and may be subject to the referral, evaluation, and rehabilitation requirements in Section IV.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 65 20285
XI. POST-ACCIDENT ALCOHOL AND DRUG TESTING
A. Preface
As soon as practicable following an accident, the City shall test a surviving covered employee for alcohol and drugs where the accident has resulted in any one of the following conditions:

1. Death of a human being.

2. Bodily injury to a person who, as a result of the accident, receives medical treatment away from the scene of the accident.

3. The covered employee received a citation or there is a high probability that the covered employee will receive a citation for a moving traffic violation arising from performance of a safety-sensitive function with respect to the accident. In the case where it is not immediately known if the above criteria is met, the employee will provide a sample and the sample will not be tested until it is determined that the criteria for post-accident testing are met.

4. At least one (1) of the involved vehicles is required to be towed from the scene of the accident.

Following the accident, the covered employee will be tested as soon as possible, not to exceed eight (8) hours for alcohol and thirty-two (32) hours for drugs.

B. Procedures

1. These procedures do not supersede the Vehicle Use Policy contained in the City of Morgan Hill's Administrative Policy and Procedure Manual or any other departmental policy or procedure regarding reporting of vehicle accidents, incidents, citations, or damage.

2. The covered employee shall notify his or her supervisor as soon as possible following an accident. The covered employee shall refrain from using alcohol for eight (8) hours following the accident or until it is determined that a postaccident alcohol test is not required as provided below. Any employee leaving the scene of the accident without appropriate authorization prior to submitting to an alcohol or drug test or being released by the supervisor will be considered to have refused to test.

3. The supervisor at the site of an accident shall:
a. Attend to any emergency needs of employees, passengers, pedestrians, etc. by requesting medical, fire and/or police assistance and the presence of another supervisor;

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 66 20285
b. Take the covered employee involved in the accident aside and give the employee a direct verbal order to abstain from alcohol and drugs until after they have been tested or until after eight (8) hours for alcohol or thirty two hours (32) for drugs and to stand by at the site until the supervisor has determined if the accident is one requiring a postaccident alcohol and drug test; c. Evaluate the accident to determine whether a post-accident test is required under this program and document with written notes the supervisor's decision to require or to not require a post-accident alcohol and drug test.

4. If the supervisor at the site affirms that a post-accident alcohol or drug test of the covered employee is required, the supervisor shall take the following actions:
a. The supervisor shall inform the covered employee the test is required by the OTETA. The supervisor will also explain that by refusing to take the alcohol and drug tests, the employee will be subject to the mandatory referral, evaluation and rehabilitation requirements of Section IV. . Refusal to take the tests will subject the employee to disciplinary action in accordance with Section IV.

Any employee who refuses to submit to a post-accident test as required by federal law shall be terminated from employment pursuant to Section IV. The employee will be offered the opportunity to be safely transported home. If an employee appears to be impaired, refuses the post-accident alcohol and drug test, and intends or attempts to drive home, the City will inform the employee that it is required to notify the proper authorities.
b. The supervisor shall transport the employee to the designated collection site to take the necessary tests. The supervisor shall inform the employee that they have a right to request a steward. However, the process will proceed whether or not the steward is present. The supervisor transporting the employee will stay with the employee, verify the employee's identification at the collection site and later return the employee to the employee's division or work unit.
c. If the covered employee is injured and requires off-site treatment, the supervisor shall escort the employee to a hospital or other appropriate treatment facility. The hospital will be requested to collect the necessary specimen and provide safe-keeping until the sample is picked up by the City collection agency.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 67 20285
d. The supervisor shall ensure that the covered employee does not perform any safety-sensitive function until the employee is cleared by the postaccident test results. This includes ensuring that neither the covered employee nor any other employee involved in the accident operates the vehicle any further. If necessary, the supervisor will move the vehicle or request another employee not involved in the accident to do so.

5. If the supervisor at the site of the accident determines that the accident does not meet the criteria for a post-accident alcohol and drug test, the covered employee may continue to perform safety-sensitive functions.

6. If the covered employee is taken into police custody at the site of an accident and the site supervisor has affirmed that the accident is one requiring postaccident drug testing, the City's collection agency will be requested to test the employee for alcohol and drugs.

7. If a post- accident alcohol test is required and is not administered within two (2) hours following the accident, the City shall prepare and maintain on file a record stating the reasons the test was not promptly administered. If the alcohol test is not administered within eight (8) hours, the City shall cease attempts to administer an alcohol test and shall prepare and maintain the samerecord.

8. If a post-accident drug test is required and is not administered within thirtytwo (32) hours following the accident, the City shall cease attempts to administer a drug test and shall prepare and maintain on file a record stating the reasons the test was not promptly administered.

C. Consequences

1. Covered employees shall be subject to the referral, evaluation, and rehabilitation requirements in Section IV and shall also be subject to the disciplinary consequences of Section VI if they refuse to submit to a postaccident alcohol or drug test or if they have a post-accident alcohol test with a result indicating an alcohol concentration of 0.04% or greater or a drug test with a verified positive test result.

2. Any covered employee who has engaged in conduct in violation of Section III concerning the use of alcohol or who has had an alcohol test with a result of

0.02% to 0.04% BAC or greater shall not perform a safety-sensitive function until the employee has submitted to a return to duty alcohol test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, if necessary, and may be subject to the referral, evaluation, and rehabilitation requirements in Section IV.

XII. REASONABLE SUSPICION ALCOHOL AND DRUG TESTING

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 68 20285
A. Preface
The City shall require a covered employee to submit to an alcohol and/or drug test when the City has reasonable suspicion to believe that the employee is under the influence of alcohol or drugs.

B. Procedures

1. The City's decision to require a covered employee to submit to a reasonable suspicion alcohol and/or drug test shall be based on a supervisor's determination that reasonable suspicion exists that the employee is in violation of Section III . The City's determination must be based on:
a. Specific, personal, and articulate observations concerning the appearance, behavior, speech or performance of the employee; or b. Violation of a safety rule, or other unsafe work incident which, after further investigation of the employee's behavior, leads the supervisor(s) to believe that alcohol or drug use may be a contributing factor; or c. Other physical, circumstantial or contemporaneous indicators of alcohol or drug use
Suspicion based solely on third party observation, violation of safety rule or unsafe work incident is not reasonable suspicion for testing. However, such suspicion may be a basis for further investigation, or for action to protect the safety of others,such as ordering the employee to stop work.

No action shall be taken against a covered employee based solely on the employee's behavior and appearance, with respect to alcohol or drug use, without a positive test.

2. The supervisor will obtain the assistance of another supervisor, when feasible, to observe and document the above behavior or factors.

3. The supervisor shall inform the employee of the facts upon which the reasonable suspicion is based, advise the employee that the supervisor wishes to question the employee about the employee's behavior or conduct on which the reasonable suspicion is based, and advise the employee that he or she has the right to request the presence of a steward or other representative before answering the supervisor's questions.
a. If the employee chooses to be represented, the steward or other representative will be allowed up to one (1) hour to arrive. If no steward other representative is available within one (1) hour, thesupervisor should continue the procedure.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 69 20285
b. The supervisor shall request an explanation from the employee concerning the employee's behavior or conduct on which the reasonable suspicion is based. If a satisfactory explanation is not provided, the employee will be tested.
c. The supervisor must complete the Observation/Incident Report within one (1) hour of the incident. The supervisor will provide a copy of the completed Observation/Incident Report to the Union. A copy should be given to the steward or other representative, if present, and another sent to the Union president.

4. If the employee refuses to submit to the test, the employee will be terminated pursuant to Section VI. The employee shall be offered the opportunity to be safely transported home.

If an employee appears to be impaired, refuses the reasonable suspicion alcohol and drug test, and intends or attempts to drive home, the supervisor will inform the employee that the City is required to notify the proper authorities. Again, an employee who has refused to submit to a post-accident test will be disciplined in accordance with Section VI.

5. If the employee submits to the reasonable suspicion alcohol and/or drug test, the supervisor will assign the employee to non-safety-sensitive duties until the supervisor receives the test results, unless in the supervisor's judgment, the continued presence of the employee in the workplace poses a significant safety risk to the employee or others or is disrupting the workplace. In that event, the supervisor shall place the employee on sick leave or other accrued leave and arrange to safely transport the employee home.
a. If the alcohol and/or drug test is positive, the employee will be subject to the return to duty/follow-up testing program and procedures.

6. No supervisor shall physically search an employee or an employee's private property (purse, briefcase, car) based on the supervisor's reasonable suspicion that the employee has violated Section III.

7. The supervisor(s) or City official(s) who observe(s) the employee's behavior on which reasonable suspicion testing is based must have received at leastsixty (60) minutes of training on alcohol misuse and an additional sixty (60) minutes training on drug use. The training must cover the physical, behavioral, speech, and performance indicators of probable alcohol misuse and use of drugs.

8. No reasonable suspicion alcohol testing may be done except while the employee is performing a safety-sensitive function, four (4) hours before the employee is to perform a safety-sensitive function, or four (4) hours after the employee has ceased performing such function.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 70 20285

9. If an alcohol test is not conducted within two (2) hours of the observation, the City must prepare and maintain a record stating the reasons the alcohol test was not promptly administered. If eight (8) hours have passed, the City will not administer the test.

10. A written record must be made of the observations leading to an alcohol or drug reasonable suspicion test and signed by the supervisor or City official who made the observations, within one (1) hour of the observed behavior or before the results of the alcohol or drug test are received, whichever is earlier.

C. Consequences

1. Covered employees shall be subject to the referral, evaluation, and rehabilitation requirements contained herein and may be subject to the disciplinary consequences of Section VI if they refuse to submit to a reasonable suspicion alcohol or drug test or if they have a reasonable suspicion alcohol concentration of 0.04% or greater or a drug test with a verified positive test result.

2. Any covered employee who has engaged in conduct in violation of Section III concerning the use of alcohol or has had an alcohol test with a result of 0.02% to 0.04% BAC or greater shall not perform a safety-sensitive function until the employee has submitted to a return to duty alcohol test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, if necessary.

XIII. RETURN TO DUTY/FOLLOW-UP TESTING
A. Preface
Covered employees who have alcohol test results of 0.04% BAC or greater or who test positive for drugs are subject to return-to-duty testing and are also subject to unannounced follow-up alcohol and/or drug test following their return to duty.

B. Procedures

1. Return to duty test
a. Any covered employee who has engaged in conduct in violation of Section III concerning the use of alcohol or had an alcohol test with a result of 0.04% BAC or greater shall not return to duty until the employee has submitted to a return to duty alcohol test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, if necessary.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 71 20285
b. Any covered employee who has engaged in conduct in violation of Section III concerning the use of drugs or who has had a drug test with a positive result shall not return to duty until the employee has submitted to a return to duty drug test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, of necessary.

2. Follow-up testing
a. If an employee tests positive for either alcohol or controlled substances, he/she will be subject to unannounced follow-up alcohol and controlled substances tests following his/her return to duty. The number and frequency of such follow-up testing shall be as directed by the SAP and consist of at least six (6) tests in the first twelve (12) months following the employee's return to duty.
b. Follow-up testing shall not exceed sixty (60) months from the date of the employee's return. The SAP may terminate the requirement for follow-up testing at any time after the first six (6) tests have been administered if the SAP determines that such testing is no longer necessary.
c. Follow-up alcohol testing shall be conducted only when the employee is performing safety-sensitive functions, four (4) hours before the employee is to perform safety-sensitive functions, or (4) four hours after the employee has ceased performing safety-sensitive functions. d. Follow-up drug testing may be conducted at anytime while the employee is at work for the City.

C. Consequences

1. Covered employees shall be subject to the referral, evaluation, and rehabilitation requirements contained herein and may be subject to the disciplinary consequences of Section VI if they refuse to submit to a return-toduty or a follow-up alcohol or drug test or if they have a return-to-duty or follow-up alcohol test with a result indicating a BAC of 0.04% or greater or drug test with a verified positive test result.

2. Any covered employee who has engaged in conduct in violation of Section III concerning the use of alcohol or who has had an alcohol test with a result of

0.02% to 0.04% BAC or greater shall not return to duty until the employee has submitted to a return-to-duty alcohol test with a verified negative result. In addition, the employee will be evaluated by the SAP and develop a treatment methodology, if necessary. In addition, the employee may be subject to the

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 72 20285
disciplinary consequences of Section VI if they refuse to submit to a return-toduty or a follow-up alcohol or drug test or if they have a return-to-duty or follow-up alcohol test with a result indicating a BAC of 0.04% or greater or drug test with a verified positive test result.

XIV. DOCUMENT DISTRIBUTION AND TRAINING
A. City's Alcohol and Drug Testing Programs and Procedures Every employee who is covered by the federal alcohol and drug testing regulation as explained in this program shall be provided with a copy of this program prior to the start of alcohol and drug testing. Each employee is required to sign a statement certifying that he or she has received a copy of this program. The City will maintain the original of the signed document in the official personnel file and will provide a copy of the certificate to the employee.

B. Required Training for Covered Employee
Every covered employee will receive a one (1) hour training course on the City's Alcohol and Drug Testing Programs and Procedures. Each employee will sign an attendance roster and will receive a certificate of completion of this training. A copy of the certificate of completion will be placed in the employee's official personnel file.

Every subsequent year, refresher training will be provided.

C. Supervisory Training
All supervisors of covered employees will receive a minimum of one (1) hour of training for alcohol and one (1) hour for drugs related to the City's Alcohol and Drug Testing Program and Procedures. In addition, the supervisor will be trained on alcohol and drug usage and impairment with strategies for dealing with these types of issues.

Each supervisor will sign an attendance roster and will receive a certificate of completion of this training. A copy of the certificate of completion will be placed in the supervisor's official personnel file. Every subsequent year, refresher training will be provided.

AFSCME Local 101, Morgan Hill MOU December 214, 20253 - December 31, Page 73 20285

CERTIFICATE OF RECEIPT
OF CITY OF MORGAN HILL & AFSCME, LOCAL 101

DRUG AND ALCOHOL TESTING PROGRAM
I, , understand that I am employed
by the City of Morgan Hill in a position that is covered by the federal alcohol and drug testing regulations, and that I will be subject to the alcohol and drug testing programs described in this program which implements those federal alcohol and drug testing regulations. I hereby certify that the City has provided me with a copy of this program. I understand that the City will maintain the original of the signed certificate and that I will be provided a copy of the certificate. I also understand that federal law requires the City to ensure that I have been provided with a copy of the City's alcohol and drug testing program and also requires me to sign this statement certifying my receipt of a copy of this program.

Date
Signature of Employee
I hereby acknowledge that I asked for and received a copy of this certificate of receipt.

Date
Signature of Employee

CITY OF MORGAN HILL

LAST CHANCE AGREEMENT
This Last Chance Agreement is created to assist you in understanding the severity of the issues being confronted and the City's desire that you be successful in resolving of these concerns. Successful completion of this Agreement will prevent further disciplinary action toward you for the issues stated hereafter.

EMPLOYEE NAME:

EMPLOYEE CLASSIFICATION:

DEPARTMENT:

NATURE OF THE INCIDENT:

CREATED PROGRAM FOR REHABILITATION: This may include day treatment, night programs, residential programs or some form of counseling as developed by the Substance Abuse Professional in concert with the employee.

NUMBER OF TESTS REQUIRED FOR UNANNOUNCED TESTING IN COMPLIANCE WITH THIS AGREEMENT:

THE AGREEMENT:

I, , agree to comply with the guidelines and
procedures entailed in the City's Drug and Alcohol Testing Program and the conditions established in the rehabilitation program. I understand that periodic unannounced samples will be taken as a condition of continued employment. Any positive test as a result of unannounced testing will be considered a violation of this last chance agreement. Should Isuccessfully complete the rehabilitation program described above and successfully maintain negative test results for a duration of one (1) year for alcohol and five (5) years for drugs, this agreement shall be null and void and a notice of completion shall be placed in my alcohol and drug file. Another incident of drug and/or alcohol use after completion of this process shall not be subject to a second last chance agreement and I will be terminated as outlined in Section VI of the Program.

Signature of Employee Date

1 TERMS OF THE COMMUNITY SERVICE OFFICERS’

MEMORANDUM OF UNDERSTANDING
RATIFIED 10.31.2025
Term of agreement: December 21, 2025 – December 31, 2028 - 3 years Salaries: 2.0% in Year 1, 2.0% in Year 2 and 2.0% in Year 3 Cost Sharing: Reduce CALPERS cost sharing amount of employee paid employer contribution by 2.0% in year 1, 2.0% in year 2 and 2.12% in year 3.

Health: the City will contribute (monthly) to the City’s health plans up to the following amounts:
2026
Employee + Family $2,969.65
Employee + 1 $2,392.59
Employee Only $1,126.07
Health-In-Lieu (waive) $715
Up to a 6% increase matching the City’s contribution to the Kaiser medical premium increase in 2027 and 2028.

Deferred Compensation: City shall contribute an additional 1% at year 5 and 1% at year 10 of an employee’s base salary to a 457 deferred compensation plan per pay period.

Training Pay: Increase to 8% as a flat rate of base pay from 5% base pay during the hours that a Public Safety Dispatcher is training a new Public Safety Dispatcher.

Tactical Dispatcher Pay: 5% of base pay once a month for training and when the employee is called out for tactical dispatch duties.

Education Incentive Pay Program: Remove “Dispatch” from the P.O.S.T. certificate requirement to provide an incentive to those who qualify with an alternative P.O.S.T. certificate.

A supplement to this staff report will be provided with a copy of the agreement language

Effective 12/21/2025
2% Increase for All Classifications
Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Animal Services Officer $ 5,847.01 $ 33.73 $ 6,139.36 $ 35.42 $ 6,446.32 $ 37.19 $ 6,768.64 $ 39.05 $ 7,107.07 $ 41.00 $ 7,462.43 $ 43.05 Community Services Officer $ 6,928.86 $ 39.97 $ 7,275.31 $ 41.97 $ 7,639.07 $ 44.07 $ 8,021.03 $ 46.28 $ 8,422.08 $ 48.59 $ 8,843.18 $ 51.02 Police Records Specialist $ 6,322.97 $ 36.48 $ 6,639.11 $ 38.30 $ 6,971.07 $ 40.22 $ 7,319.62 $ 42.23 $ 7,685.60 $ 44.34 $ 8,069.88 $ 46.56 Property/Evidence Tech $ 7,004.44 $ 40.41 $ 7,354.66 $ 42.43 $ 7,722.40 $ 44.55 $ 8,108.52 $ 46.78 $ 8,513.94 $ 49.12 $ 8,939.64 $ 51.57 Public Safety Dispatcher $ 8,415.20 $ 48.55 $ 8,835.96 $ 50.98 $ 9,277.76 $ 53.53 $ 9,741.64 $ 56.20 $ 10,228.73 $ 59.01 $ 10,740.16 $ 61.96 PSD Supervisor $ 9,965.71 $ 57.49 $ 10,464.00 $ 60.37 $ 10,987.20 $ 63.39 $ 11,536.56 $ 66.56 $ 12,113.39 $ 69.88 $ 12,719.06 $ 73.38 Records Specialist Supervisor $ 7,488.56 $ 43.20 $ 7,862.99 $ 45.36 $ 8,256.14 $ 47.63 $ 8,668.94 $ 50.01 $ 9,102.39 $ 52.51 $ 9,557.51 $ 55.14 Effective 12/20/2026
2% Increase for All Classifications
Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Animal Services Officer $ 5,963.95 $ 34.41 $ 6,262.14 $ 36.13 $ 6,575.25 $ 37.93 $ 6,904.01 $ 39.83 $ 7,249.21 $ 41.82 $ 7,611.67 $ 43.91 Community Services Officer $ 7,067.44 $ 40.77 $ 7,420.81 $ 42.81 $ 7,791.85 $ 44.95 $ 8,181.45 $ 47.20 $ 8,590.52 $ 49.56 $ 9,020.04 $ 52.04 Police Records Specialist $ 6,449.42 $ 37.21 $ 6,771.90 $ 39.07 $ 7,110.49 $ 41.02 $ 7,466.01 $ 43.07 $ 7,839.32 $ 45.23 $ 8,231.28 $ 47.49 Property/Evidence Tech $ 7,144.53 $ 41.22 $ 7,501.76 $ 43.28 $ 7,876.85 $ 45.44 $ 8,270.69 $ 47.72 $ 8,684.22 $ 50.10 $ 9,118.43 $ 52.61 Public Safety Dispatcher $ 8,583.50 $ 49.52 $ 9,012.68 $ 52.00 $ 9,463.31 $ 54.60 $ 9,936.48 $ 57.33 $ 10,433.30 $ 60.19 $ 10,954.97 $ 63.20 PSD Supervisor $ 10,165.03 $ 58.64 $ 10,673.28 $ 61.58 $ 11,206.94 $ 64.66 $ 11,767.29 $ 67.89 $ 12,355.65 $ 71.28 $ 12,973.44 $ 74.85 Records Specialist Supervisor $ 7,638.33 $ 44.07 $ 8,020.25 $ 46.27 $ 8,421.26 $ 48.58 $ 8,842.32 $ 51.01 $ 9,284.44 $ 53.56 $ 9,748.66 $ 56.24 Effective 12/19/2027
2% Increase for All Classifications
Position A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly Animal Services Officer $ 6,083.23 $ 35.10 $ 6,387.39 $ 36.85 $ 6,706.76 $ 38.69 $ 7,042.09 $ 40.63 $ 7,394.20 $ 42.66 $ 7,763.91 $ 44.79 Community Services Officer $ 7,208.79 $ 41.59 $ 7,569.23 $ 43.67 $ 7,947.69 $ 45.85 $ 8,345.07 $ 48.14 $ 8,762.33 $ 50.55 $ 9,200.44 $ 53.08 Police Records Specialist $ 6,578.41 $ 37.95 $ 6,907.33 $ 39.85 $ 7,252.70 $ 41.84 $ 7,615.34 $ 43.93 $ 7,996.10 $ 46.13 $ 8,395.91 $ 48.44 Property/Evidence Tech $ 7,287.42 $ 42.04 $ 7,651.79 $ 44.14 $ 8,034.38 $ 46.35 $ 8,436.10 $ 48.67 $ 8,857.91 $ 51.10 $ 9,300.80 $ 53.66 Public Safety Dispatcher $ 8,755.17 $ 50.51 $ 9,192.93 $ 53.04 $ 9,652.58 $ 55.69 $ 10,135.21 $ 58.47 $ 10,641.97 $ 61.40 $ 11,174.06 $ 64.47 PSD Supervisor $ 10,368.33 $ 59.82 $ 10,886.74 $ 62.81 $ 11,431.08 $ 65.95 $ 12,002.64 $ 69.25 $ 12,602.77 $ 72.71 $ 13,232.91 $ 76.34 Records Specialist Supervisor $ 7,791.10 $ 44.95 $ 8,180.65 $ 47.20 $ 8,589.68 $ 49.56 $ 9,019.17 $ 52.03 $ 9,470.13 $ 54.64 $ 9,943.63 $ 57.37

EXHIBIT C

COMMUNITY SERVICE OFFICERS ASSOCIATION SALARY SCHEDULES

EXHIBIT A

COMMUNITY SERVICE OFFICERS ASSOCIATION SALARY SCHEDULES

EXHIBIT B

COMMUNITY SERVICE OFFICERS ASSOCIATION SALARY SCHEDULES

City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, October 15, 2025
5:00 p.m. Closed Session
6:00 p.m. Regular Session
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

SPECIAL/REGULAR MEETING
A special meeting of the City Council is 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 Pro Tem Librers called the City Council meeting to order at 5:00 p.m.

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

ROLL CALL ATTENDANCE
City Clerk Bigelow called the roll.

PRESENT Marilyn Librers, Soraida Iwanaga, Yvonne Martinez Beltran, Miriam Vega
ABSENT Mark Turner

October 15, 2025
2 Mayor Turner attended the closed session remotely.

CLOSED SESSION
City Attorney Larkin announced the closed session items.

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 #23-051
CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Government Code section 54956.9(d)(1)
Name of case: Martha Leticia Valdes, Claim No. 3108548

OPPORTUNITY FOR PUBLIC COMMENT
Public comment opened at 5:00 p.m. With no requests to speak, public comment closed.

ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 5:00 p.m.

REGULAR MEETING
The regular meeting convened at 6:04 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Proclaiming the month of October as Brain Health and Dementia Awareness Month

CITY COUNCIL REPORTS
Mayor Pro Tem Librers shared that she attended the Cal Cities Conference and especially enjoyed the keynote speaker. She also participated in the South County Youth Task Force meeting, chaired the Habitat Implementation Board and Governing Board meetings, and noted that she and a colleague attended a fundraising event for

October 15, 2025
3 Green Foothills.

CITY MANAGER'S REPORT
Last Saturday, October 11, about 30 volunteers from Community Christian dedicated several hours to beautifying Community Park and the area near the Centennial Recreation Center. They spread mulch around the skate park, painted picnic tables, picked up litter, and installed posts for new shade sails by the pickleball courts, with the sails to be added next week. Their continued efforts are deeply valued by the City.

Additionally, the second week of October marks Code Enforcement Officer Week, recognizing the hard work of Ozzie Esquivel, John Amos, and the team, including Daniel Cardwell and Eric Blomquist. This year, the team increased monitoring with some evening and weekend work, and their dedication aligns well with today’s Building Code update.

CITY ATTORNEY'S REPORT
City Attorney Larkin shared that City Council met in closed session earlier in the evening. On the matter of negotiations, there was no reportable action. The second matter was continued to the end of the regular meeting.

OTHER REPORTS
Council Member Martinez Beltran shared highlights from attending the Cal Cities Conference, which saw its highest attendance since COVID. She attended sessions focused on leveraging AI to expand reach and achieve cost savings. She participated in the Cal Cities Board meeting and the Peninsula Division lunch where she was sworn onto the board. She also attended the Latino Caucus Board meeting where they celebrated their 35th anniversary. Additional engagements included the ABAG meeting, a Santa Clara County Courts legislative event, and hosting an event on Measure A and Prop 50. She also joined the MHUSD Superintendent and City teammates for the MHUSD/San Jose State event, participated in PAC Board discussions for VTA, attended Silicon Valley Clean Energy and SCRWA meetings, and joined a transportation webinar with Senator Wiener on SB 79.

Council Member Vega attended the Habitat meeting and participated in the Cal Cities Conference, where she joined sessions on placing revenue measures on the ballot and addressing homelessness and mental health. She valued the opportunity to spend time with staff, build connections, and learn how other cities are tackling similar challenges.

Additionally, she volunteered at the Food and Wine Festival to support a chef and took part in the City/School Liaison Committee meeting.

Council Member Iwanaga shared that she attended the Cal Cities Conference for the first time, participating in sessions on homelessness and mass transit, noting that many proposed solutions are geared toward larger cities. She also attended the SCRWA meeting and was pleased to see several projects progressing toward completion. In addition, she attended the October 5th Food and Wine Festival, which benefited

October 15, 2025
4 MHUSD.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public comment opened at 6:24 p.m. With no requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

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

CONSENT CALENDAR
Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.

MOTION:

Approving consent calendar items 1, 3, 4, 5, and 7 through 11.

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

1. APPROVE THE SERVICE PROVIDER AGREEMENT RELATED TO THE ADMINISTRATION OF THE CITY'S 457(B) DEFERRED COMPENSATION

October 15, 2025
5 PLAN WITH SHUSTER ADVISORY GROUP
Recommendation:

1. Approve the service provider agreement related to the administration of the City's 457(b) Deferred Compensation Plan with Shuster Advisory Group; and

2. Appoint the City Manager as the Plan Administrator; and

3. Authorize the City Manager to execute and administer the related agreements.

3. APPROVE A THREE-YEAR AGREEMENT WITH MAGGIORA BROS
DRILLING, INC IN THE AMOUNT OF $750,000 FOR ON-CALL ROUTINE AND

EMERGENCY REPAIR, MAINTENANCE, AND REHABILITATION OF THE CITY’S WATER WELLS AND BOOSTER STATIONS
Recommendation:

Approve and authorize the City Manager to execute a three-year agreement with Maggiora Bros Drilling, Inc. in the total not-to-exceed amount of $750,000 for oncall routine and emergency repair, maintenance, and rehabilitation of the City’s water wells and booster stations.

4. APPROVE AMENDED AND RESTATED CONSULTANT AGREEMENT FOR

DESIGN PROFESSIONALS WITH HYDROSCIENCE ENGINEERS FOR

DESIGN SERVICES RELATED TO THE SEWER TRUNK LINE BETWEEN

MORGAN HILL AND GILROY
Recommendation:

1. Approve Amended and Restated Consultant Agreement for Design Professionals with HydroScience Engineers, Inc. to provide additional services for the New Sewer Trunk Line to Gilroy project for a total not-toexceed amount of $654,238; and

2. Authorize the City Manager to execute and administer the amended and restated consultant agreement.

5. APPROVE SECOND AMENDMENT TO DESIGN SERVICES AGREEMENT

WITH SCHAAF & WHEELER CONSULTING CIVIL ENGINEERS FOR THE

BUTTERFIELD BASIN ONLINE CONVERSION PROJECT FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $293,352
Recommendation:

1. Approve the Second Amendment to the Consultant Agreement with Schaaf & Wheeler Consulting Civil Engineers to provide additional services for the Butterfield Basin Online Conversion Project for a total notto-exceed amount of $293,352; and

October 15, 2025
6 2. Authorize the City Manager to execute and administer the amended consultant agreement.

7. APPROVE AND AUTHORIZE THE CITY MANAGER TO PURCHASE THREE

UTILITIES DIVISION REPLACEMENT VEHICLES
Recommendation:

1. Approve the purchase of a Ford T-350 E Transit Cargo Van from Rush Truck Center in the amount of $75,323 to replace vehicle W18163;

2. Approve the purchase of a Ford F-550 Truck with a Wachs valve turner up-fit from Rush Truck Center in the amount of $254,753 to replace vehicle W15117;

3. Approve the purchase of a Vac-Con Combo Jet/Vacuum Truck from Municipal Maintenance Equipment in the amount of $647,687 to replace vehicle S15112; and

4. Authorize the disposal of surplus vehicles in accordance with Section 3.04.400 of the City of Morgan Hill Municipal Code.

8. APPROVE OBJECTIVE DEVELOPMENT STANDARDS CONCESSION AND WAIVER REQUESTS FOR THE MYRTLE – MYRTLE INVESTMENTS

RESIDENTIAL PROJECT
Recommendation:

Adopt a resolution approving the applicant’s request for one concession to the City’s undergrounding requirement and four waivers to the City’s Objective Residential Development Design and Development Standards pursuant to California Density Bonus Law (Gov. Code §65915).

9. APPROVE SEPTEMBER 17, 2025, CITY COUNCIL MEETING MINUTES Recommendation:

Approve the September 17, 2025, City Council Meeting Minutes.

10. AWARD MAINTENANCE SERVICE AGREEMENT FOR ENGINEERED WOOD FIBER AND MULCH TO JET MULCH, INC. IN THE AMOUNT OF $120,000

FOR THE INITIAL TWO-YEAR TERM
Recommendation:

1. Award a maintenance service agreement to JET Mulch, Inc. in the amount of $120,000 for a two-year term, with the option to extend up to three additional consecutive one-year terms; and

2. Authorize the City Manager to execute and administer the agreement and

October 15, 2025
7 amendments.

11. RECEIVE MONTHLY BUDGET UPDATE AND AUGUST 2025 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

Receive and file reports.

ITEMS PULLED FOR DISCUSSION

2. APPROVE FIRST AMENDMENT TO THE FY 2025-26 COUNTYWIDE SOLID

WASTE SERVICES FOOD RECOVERY PROGRAM CONTRACT WITH JOINT

VENTURE SILICON VALLEY
Recommendation:

1. Approve the first amendment to the FY 2025-26 Joint Venture Silicon Valley consultant agreement to extend the effective date of services from December 31, 2025 to June 30, 2026 and increase the agreement amount by $296,801; and

2. Authorize the City Manager to execute and administer the first amendment to the agreement with Joint Venture Silicon Valley.

Public Services Director Ghione provided a report.

Public comment opened at 6:28 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended actions.

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

6. APPROVE AGREEMENT WITH GEOGRAPHIC TECHNOLOGIES GROUP FOR GIS SERVICES IN THE AMOUNT OF $238,173

October 15, 2025
8 Recommendation:

Approve an agreement with Geographic Technologies Group for GIS Services in the amount of $238,173.

GIS Manager van der Leeden provided a report.

Public comment opened at 6:37 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended actions.

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

OTHER BUSINESS

12. INTRODUCE AN ORDINANCE OF THE CITY OF MORGAN HILL AMENDING CHAPTERS 15.08 (BUILDING CODE), 15.12 (ELECTRICAL CODE), 15.16 (MECHANICAL CODE), 15.20 (PLUMBING CODE), 15.44 (FIRE CODE) AND TO ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING

STANDARDS CODES KNOWN AND DESIGNATED AS CALIFORNIA CODE OF REGULATIONS, TITLE 24
Recommendation:

1. Waive reading;

2. Introduce the ordinance by title; and

3. Set November 19, 2025, at 6:00 p.m. as the date and time for a public hearing to consider adoption of an ordinance.

Building Official Blomquist provided a presentation and report.

Public comment opened at 6:46 p.m. With no requests to speak, public comment closed.

MOTION:

Waiving the first and second reading of the ordinance.

October 15, 2025
9 RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Iwanaga
AYES: Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Mayor Turner
MOTION:

Introducing the ordinance.

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

Setting November 19, 2025, at 6:00 p.m. as the date and time for a public hearing to consider adoption of an ordinance.

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

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

October 15, 2025
10 Recommendation:

Accept and file the Visit Morgan Hill Annual Report.

Economic Development Director Mahood introduced Visit Morgan Hill Executive Director Krista Rupp who provided a presentation and report.

Public comment opened at 7:25 p.m. With no requests to speak, public comment closed.

Report received.

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

None.

The meeting adjourned to closed session at 7:25 p.m.

The meeting reconvened at 7:30 p.m.

There was no reportable action.

ADJOURNMENT
There being no further business, Mayor Pro Tem Librers adjourned the meeting at 7:30 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, October 22, 2025
5:00 p.m. Closed Session
6:00 p.m. Regular Session
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

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

SPECIAL MEETING
5:00 p.m. Closed Session

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 5:00 p.m.

ROLL CALL ATTENDANCE
Deputy City Clerk Rossi called the roll.

PRESENT Mark Turner, Marilyn Librers, Soraida Iwanaga, Yvonne Martinez Beltran, Miriam Vega
ABSENT None

DECLARATION OF POSTING AGENDA
Deputy City Clerk Rossi declared the posting of the agenda.

October 22, 2025
2 CLOSED SESSION
City Attorney announced the closed session item.

CONFERENCE WITH LABOR NEGOTIATORS
Authority: Pursuant Government Code Section 54957.6
City Negotiators: Christina Turner, City Manager; Donald Larkin, City Attorney; Michael 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 #23-051

PUBLIC COMMENT FOR CLOSED SESSION ITEMS
Public comment opened at 5:01 p.m. With no requests to speak, public comment closed.

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

REGULAR MEETING
The regular meeting convened at 6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

CITY COUNCIL REPORTS
Mayor Turner expressed his gratitude to Senator Dave Cortese for visiting the Reachout Food Pantry at St. Catherine’s of Alexandria Church to learn more about their critical work and food supply needs. He also thanked Assembly Member Gail Pellerin for delivering a Proclamation on October 2, 2025, in recognition of the Healthy Morgan Hill Initiative. The Mayor shared that he attended the MOHI Food and Wine event, where approximately 650 people attended to raise funds for the Morgan Hill Unified School District. He continues working with farmers, ranchers, and winery owners to coordinate with county supervisors regarding proposed amendments. Additionally, he participated in the Health Fair at St. Catherine’s last Sunday and the Wellness Fair at 5th Element Gym to promote the Healthy Morgan Hill Initiative launched in May 2025.

Lastly, he invited the community to the Pumpkins on 3rd Street event on October 23, 2025, from 4:00 p.m. to 7:30 p.m. at 3rd Street and Depot Street, featuring trick-ortreating, a pumpkin patch, vendors, pet costumes, and live music.

October 22, 2025
3 CITY MANAGER'S REPORT
City Manager Turner announced the appointment of Vicky Rossi as the new Deputy City Clerk. She mentioned that the 2025 Morgan Hill Halloween Haunt featured 25 decorated homes, with winners to be announced soon. The program is sponsored by the Morgan Hill Wine Trolley, and proceeds from ticket sales from their Halloween Haunt trolley tours will benefit Morgan Hill Parks and Recreation. You can view the participating homes on the map at www.morganhill.ca.gov/mhhaunt. The 5th Annual Morgan Hill Open Studios will take place on October 25 and October 26, 2025, with a preview reception at Colibri Art Gallery and a commendation from Supervisor Arenas’ office recognizing support for the arts. The next regular City Council meeting is scheduled for November 5, 2025, followed by a facilitated session on November 10, 2025, to discuss norms and ethics policy. She concluded with recognition of the Small Business and Entrepreneurship Cohort Class graduates from October 2, 2025.

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

OTHER REPORTS
Council Member Martinez Beltran attended several community and regional events, including the CAIR 30th Anniversary, labor union campaigns, and Congress Member Zoe Lofgren’s annual barbecue. She also celebrated the reopening of Britton Middle School’s gym, joined discussions on water rates at the Valley Water Commission meeting, and acknowledged new state legislation signed by the Governor. She closed by noting the County’s resolution prohibiting ICE enforcement on County property.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public comment opened, the following people were called to speak:

Greg Felios
Dmitry Novokhaskiy
With no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

RESULT: Passed
MOVER: Council Member Vega

October 22, 2025
4 SECONDER: Mayor Pro Tem Librers
AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None

OTHER BUSINESS

1. HOUSING UPDATE
Recommendation:

Receive report and provide feedback.

Assistant City Manager Ramirez introduced the conversation. Development Services Director Carman and Housing and Economic Mobility Director Lang provided a presentation and report.

Public comment opened at 7:43 p.m. The following people were called to speak:

Joe Guerra
Rocke Garcia
John McKay
Chris Borello
Armando Benavides (Zoom)
With no further requests to speak, public comment closed.

No action taken.

The meeting recessed at 8:05 p.m. and reconvened at 8:15 p.m.

2. ECONOMIC DEVELOPMENT UPDATE
Recommendation:

Receive report and provide feedback.

Economic Development Director Mahood provided a presentation and report.

Public comment opened at 9:16 p.m. The following people were called to speak:

Nick Gaich
Cenobio Albarran Mendoza
John McKay
Armando Benavides (Zoom)
With no further requests to speak, public comment closed.

No action taken.

October 22, 2025
5 FUTURE COUNCIL INITIATED AGENDA ITEMS
None.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 9:30 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

6 CITY COUNCIL STAFF REPORT
MEETING DATE: November 5, 2025
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE SANTA

CLARA VALLEY OPEN SPACE AUTHORITY FOR A PUBLIC ACCESS

PARTNERSHIP ON DEVELOPMENT OF THE EL TORO MOUNTAIN
AREA

RECOMMENDATION(S)
Authorize the City Manager to execute and administer a Memorandum of Understanding with the Santa Clara Valley Open Space Authority for a partnership on public access development of the El Toro Mountain area.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Supporting our Youth, Seniors, and Entire Community
Preserving our Community History
2024-2025 Strategic Priorities
Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

The effort to establish a public trail up El Toro Mountain is a long-standing initiative for the City of Morgan Hill, driven by the mountain's status as a city landmark and a popular, though historically informal, hiking destination. For many years, the mountain was a de facto hiking spot for locals, with a visible network of informal trails. The Morgan Hill Historical Society previously sponsored an annual community hike to the summit, which drew hundreds of participants. However, this access was not continued due to the existing pathways crossing private property and the trail not being formally designed.

With the popularity of the hike, the City began a formal process to create a sanctioned public trail in the early 2000s. However, the City's ability to acquire land via working with willing property owners has taken a significant amount of time. Significant planning work has occurred and the trail is included in the City's Bikeways, Trails, Parks and

6 Recreation Master Plan. In recent years, the City has been guided by the El Toro Trail Access Strategy, which was developed in 2015 and can be viewed online here:
https://www.morganhill.ca.gov/DocumentCenter/View/20003 The City has worked to develop this "Access Strategy" to determine the most viable and least impactful trail access points. While the City and Santa Clara Valley Open Space Authority (OSA) own considerable property on the El Toro Mountain, the access to this property at the base of the mountain has not been adequate to develop a public trail.

The City, in collaboration with the OSA, has been working to acquire additional property and secure agreements with private landowners to create a safe and legal trail. The most significant point of this ongoing effort has focused on finding an access near the area of Spring and DeWitt Avenues.

Over the last few months, a very significant positive turn has occurred for the project.

The West Hills Church off of DeWitt Avenue has granted the City and OSA an easement for trail access through their property in association with approval of their expansion project. With this new easement, the City and OSA are now planning to take additional steps to continue the partnership in developing a memorandum of understanding (MOU) to move forward in working to develop the trail system. The significant components of the MOU being proposed include the following:
• OSA and City will work cooperatively to plan for joint public access facilities at the Preserve (area around the trail) on a mutually agreed upon timeline. • City will lead efforts to secure rights to a property suitable for a trailhead staging area near DeWitt Avenue and Spring Avenue; and will plan, design, permit, and construct these facilities. Authority will reasonably support these efforts. • OSA will lead efforts to secure rights to property or trail easements to allow for a sustainable trail network on El Toro; and will plan, design, and construct these facilities. City will reasonably support these efforts. • City will cooperate with OSA to resolve issues that may arise during trail planning with the existing easements on City-owned property on the east side of El Toro. • City and OSA will work together to determine roles and responsibilities for environmental review required by the California Environmental Quality Act (CEQA), if any.
• City and OSA will develop a management agreement that establishes costsharing and other ongoing responsibilities related to long term maintenance and management of the trailhead staging area and trail facilities. Such agreement will include, but not be limited to, the following terms
o City will maintain and operate trailhead staging area facilities such as parking, restrooms, and trash collection.
o OSA will maintain and operate trails and trailside amenities on the Preserve (benches, interpretive signs, etc.), provide trail patrols, and conduct vegetation and habitat management and habitat restoration. o City will provide security response and emergency response (including Morgan Hill Police and Fire) for the trailhead staging area and trail facilities.
o The City will consider developing ordinances, as needed, for enforcement