Morgan Hill City Council
January 28, 2026

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, January 28, 2026
Closed Session 5:00 p.m.

Regular Session 6:00 p.m.

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 it before joining 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

January 28, 2026
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 first from those attending in person, with the submission of a speaker card. Once that is complete, we will move to those on Zoom who 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

January 28, 2026
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 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, 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
Public Employee Appointment (§ 54957)
Title: (City Attorney)

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION

ADJOURN TO CLOSED SESSION

REGULAR MEETING
6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PRESENTATIONS

January 28, 2026
4 YAC Presentation

RECOGNITIONS
El Toro Tours

CITY COUNCIL REPORTS
Council Member Librers

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 PLANNING COMMISSIONER RESIGNATION,

REAPPOINTMENT OF TWO COMMISSIONERS ON THE LIBRARY,

CULTURE, AND ARTS COMMISSION (LCAC), TWO COMMISSIONERS ON

THE PARKS AND RECREATION COMMISSION (PRC), APPOINTING AN

LCAC COMMISSIONER TO THE PRC, AND RECRUITMENT TO FILL

VACANCIES ON TWO COMMISSIONS
Recommendation:

January 28, 2026
5 1. Accept Planning Commissioner Wayne Tanda's resignation;

2. Reappointment of Commissioners Patrice Lyn and Cindy Blanton to the Library, Culture, and Arts Commission with terms ending April 1, 2030;

3. Reappointment of Commissioners Craig van Keulen and Harpreet Vittal to the Parks and Recreation Commission with terms ending April 1, 2030;

4. Appointment of LCAC Commissioner Julie Lucido to the Library, Culture, and Arts Commission with a term ending April 1, 2030; and

5. Direct staff to continue recruitment efforts to fill the one vacancy on the Planning Commission and the two vacancies on the Parks and Recreation Commission.

2. ADOPT RESOLUTION ADDING SECTION 20516 COST SHARE TO THE

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEES
RESOLUTION NO. 25-039
Recommendation:

Adopt resolution adding Section 20516 Cost Share to the Management, Professional, and Confidential Employees Resolution No. 25-039.

3. APPROVE THE DECEMBER 15, 2025, DECEMBER 17, 2025, AND JANUARY 16, 2026 CITY COUNCIL MEETING MINUTES
Recommendation:

Approve the December 15, 2025, December 17, 2025, and January 16, 2026, City Council Meeting Minutes.

4. APPROVE THE AMENDED AND RESTATED SUBDIVISION
IMPROVEMENTS AGREEMENT FOR WALNUT GROVE ESTATES – TRACT NO. 10422 LOCATED ON THE SOUTHEAST CORNER OF THE WALNUT GROVE DRIVE AND DIANA AVENUE INTERSECTION (APN: 726-07-090 - 726-07-098)
Recommendation:

1. Approve the Amended and Restated Subdivision Improvements Agreement for Walnut Grove Estates – Tract No. 10422;

2. Authorize the City Manager to execute the Amended and Restated Subdivision Improvements Agreement with Morgan Hill Mansions LLC (Subdivider); and

3. Authorize the recordation of the Amended and Restated Subdivision Improvements Agreement.

5. APPROVE FIRST AMENDMENT TO MAINTENANCE SERVICE AGREEMENT WITH MJR ELECTRIC, INC. TO INCREASE THE NOT TO EXCEED AMOUNT BY $160,000 FOR A TOTAL AGREEMENT AMOUNT OF $260,000 FOR ONCALL ELECTRICAL MAINTENANCE AND REPAIRS AT CITY FACILITIES

January 28, 2026
6 Recommendation:

1. Approve the First Amendment to the Maintenance Service Agreement with MJR Electric, Inc. for $160,000 for a total agreement amount of $260,000; and

2. Authorize the City Manager to execute and administer the First Amendment to the Maintenance Service Agreement with MJR Electric, Inc.

6. AUTHORIZE THE CITY MANAGER TO EXECUTE A PURCHASE

AGREEMENT FOR COMPUTER EQUIPMENT WITH SAVANT SOLUTIONS
Recommendation:

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

7. AWARD CENTENNIAL RECREATION CENTER POOL REPLASTERING

PROJECT
Recommendation:

1. Award contract to Earl Adams Tile-Coping & Plastering, Inc., dba Adams Pool Solutions in the amount of $112,976 and authorize the expenditure of up to 20% contingency funds not to exceed $22,595; and

2. Authorize the City Manager to execute and administer that certain construction contract with Earl Adams Tile-Coping & Plastering, Inc., dba Adams Pool Solutions.

OTHER BUSINESS

8. ACCEPT MORGAN HILL PROPERTY AND BUSINESS IMPROVEMENT

DISTRICT (MHPBID) OWNERS' ASSOCIATION ANNUAL REPORT (DBA

DOWNTOWN MORGAN HILL IMPROVEMENT DISTRICT)
Recommendation:

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

9. REPEAL CHAPTER 15.63 (PROHIBITION OF NATURAL GAS
INFRASTRUCTURE IN NEW BUILDINGS) OF TITLE 15 (BUILDINGS AND

CONSTRUCTION) OF THE MORGAN HILL MUNICIPAL CODE
Recommendation:

Waive the reading and introduce an Ordinance repealing Chapter 15.63 of the Morgan Hill Municipal Code regarding the prohibition of natural gas infrastructure in new buildings.

January 28, 2026
7 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

January 28, 2026
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].

January 28, 2026
9

1 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Michelle Bigelow, City Clerk
APPROVED BY: City Manager

ACCEPTANCE OF PLANNING COMMISSIONER RESIGNATION,

REAPPOINTMENT OF TWO COMMISSIONERS ON THE LIBRARY,

CULTURE, AND ARTS COMMISSION (LCAC), TWO COMMISSIONERS

ON THE PARKS AND RECREATION COMMISSION (PRC),

APPOINTING AN LCAC COMMISSIONER TO THE PRC, AND

RECRUITMENT TO FILL VACANCIES ON TWO COMMISSIONS

RECOMMENDATION(S)

1. Accept Planning Commissioner Wayne Tanda's resignation;

2. Reappointment of Commissioners Patrice Lyn and Cindy Blanton to the Library, Culture, and Arts Commission with terms ending April 1, 2030;

3. Reappointment of Commissioners Craig van Keulen and Harpreet Vittal to the Parks and Recreation Commission with terms ending April 1, 2030;

4. Appointment of LCAC Commissioner Julie Lucido to the Library, Culture, and Arts Commission with a term ending April 1, 2030; and

5. Direct staff to continue recruitment efforts to fill the one vacancy on the Planning Commission and the two vacancies on the Parks and Recreation Commission.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
2024-2025 Strategic Priorities
Community Engagement and Messaging
REPORT NARRATIVE:

Planning Commissioner Wayne Tanda recently submitted his resignation from the Planning Commission (PC), leaving a vacant seat with a term ending June 1, 2027.

Additionally, the Library, Culture, and Arts Commission (LCAC) has three seats with terms ending on April 1, 2026, and the Parks and Recreation Commission (PRC) has

1 four seats, with terms ending on April 1, 2026. Current LCAC commissioners Patrice Lyn and Cindy Blanton, and PRC commissioners Harpreet Vittal and Craig van Keulen, have expressed interest in reappointment. PRC Commissioner Julie Lucido has expressed interest in serving on the LCAC.

Staff recommends accepting Planning Commissioner Tanda’s resignation, the reappointment of Commissioners Lyn and Blanton to the LCAC, and Commissioners Vittal and van Keulen to the PRC, and the appointment of PRC Commissioner Lucido to the LCAC at the end of her current term, April 1, 2026, all with terms ending April 1, 2030.

LCAC Commissioner Mark Fiorenzo and PRC Commissioner Shweta Maniar do not wish to be reappointed to their seats following the end of their current term on April 1, 2026. Staff have begun the recruitment process to fill three commission vacancies: one on the PC, with a term ending June 1, 2027, and two on the PRC, with terms ending April 1, 2030. Interviews are scheduled for Wednesday, March 4, 2026, at 5:00 p.m., with a deadline to apply of Monday, February 23, 2026, at 5:00 p.m.

COMMUNITY ENGAGEMENT:

Involve
Recruitment efforts will be undertaken to encourage citizens to apply for consideration for City Council appointment to the PRC and the PC via the Morgan Hill Times, City Website, Government Access Channel, Facebook, NextDoor, outreach to community groups, and the weekly 411 emails.

ALTERNATIVE ACTIONS:

The City Council may choose not to reappoint Commissioners Lyn and Blanton to the LCAC; Commissioners van Keulen and Vittal to the PRC; and PRC Commissioner Lucido to the LCAC, and instead direct staff to conduct recruitment and interviews for all available seats with terms ending April 1, 2026.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Every year, recruitment efforts are conducted to maintain the commission seats.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with the actions to interview and appoint, as the recruitment and appointment process is accommodated in the Council Services and Records Management operating budget.

CEQA (California Environmental Quality Act):

Not a Project.

The interview and appointment of commissioners is not a project, as defined in Section 15378 of the State CEQA guidelines.

 





 





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Chapter 2.36 PLANNING COMMISSION*
Sections:

2.36.010 Created--Statutory authority.

2.36.020 Membership--Terms of office--Vacancies.

2.36.030 Meetings.

2.36.040 Powers and duties.
* Prior ordinance history: Ords. 470 N.S. and 483 N.S.

2.36.010 Created--Statutory authority.

The planning commission is established pursuant to the authority contained in Chapter 3 of Title VII of the California Government Code, entitled "Local Planning, " as existing or hereafter amended. Reference shall be made to said Chapter 3 for interpretation of this chapter. (Ord. 811 N.S. § 1 (II-3-1), 1987)

2.36.020 Membership--Terms of office--Vacancies.

A. The city planning commission shall consist of seven members. Members of the planning commission shall serve the following terms:

1. In the year 1998, three members shall be appointed to serve terms ending June 1, 2001;

2. The four members who were appointed in 1996 shall serve terms ending June 1, 1999;

3. Thereafter, all terms shall be for four years and shall expire on June 1st. (Ord. 1778 N.S. § 5, 2006: Ord. 1407 N.S. § 2, 1998; Ord. 1083 N.S. § 1, 1992; Ord. 811 N.S. § 1 (II-3-2), 1987)

2.36.030 Meetings.

The commission shall hold regular meetings at least twice a month or as otherwise deemed necessary by the commission. All meetings of the commission shall be held in the city council chambers at City Hall or other location designated by minute order of the city council or at a location deemed necessary or appropriate by the planning commission. (Ord. 1197 N.S. § 1 (part), 1994: Ord. 811 N.S. § 1 (II-3-3), 1987)

2.36.040 Powers and duties.

The planning commission shall have the powers and shall perform all the duties conferred and imposed upon city planning commissions by the applicable provisions of Chapter 3 of Title VII of the Government Code of the state and, in addition, the planning commission shall:

A. Perform all the functions assigned to the commission by the subdivision and zoning ordinances (Titles 17 and 18 of this code) of the city, and all general laws of the state of California;
B. Serve as an advisory body to the city council on matters related to city growth and development and on such other matters as may be requested by the council; C. Promote public interest in and understanding of the subdivision and zoning ordinances of the city, and also of all master plans and other official plans and regulations pertaining to planning which have been approved officially by the city council; D. Review and advise the city council on all proposed amendments to Title 17, Subdivisions, and Title 18, Planning and Land Use Regulations;
E. Approve or disapprove application for designation of cultural resources and historic districts pursuant to Chapter 18.75 of this code, or as amended;

F. Approve or disapprove permits sought to remove or demolish a cultural resource, cultural resource site or historic district pursuant to Chapter 18.75 of this code, or as amended. (Ord. 1111 N.S. §§ 2, 3, 1992; Ord. 899 N.S. § 18, 1989; Ord. 811 N.S. § 1 (II-3-4), 1987)

2 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
ADOPT RESOLUTION ADDING SECTION 20516 COST SHARE TO THE

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEES
RESOLUTION NO. 25-039

RECOMMENDATION(S)
Adopt resolution adding Section 20516 Cost Share to the Management, Professional, and Confidential Employees Resolution No. 25-039.

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

On December 17, 2025, the City Council adopted resolution number 25-039 adjusting the salary schedule for Management, Professional, and Confidential Employees (Resolution No. 25-039). The resolution also includes the phasing out of the employees sharing of employer's CalPERS rate.

Resolution No. 25-039 lacks the required language for Section 20516 Cost Share and CalPERS requires the City Council to adopt a new resolution adding Section 20516 Cost Share to the Resolution No. 25-039. This is one of the steps in the procedures to amend the City's CalPERS contract in order to ensure the accurate accounting of employees sharing of employer's CalPERS rate.

COMMUNITY ENGAGEMENT:

Inform
This staff report is to inform the community of the proposed adoption of the resolution to add Section 20516 Cost Share to the Management, Professional, and Confidential Employees Resolution No. 25-039.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

2 On December 17, 2025, the City Council adopted Resolution Number 25-039, adjusting the salary schedule for Management, Professional, and Confidential Employees.

FISCAL AND RESOURCE IMPACT:

None.

CEQA (California Environmental Quality Act):

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

RESOLUTION NO. -_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADDING GOVERNMENT CODE
SECTION 20516 COST SHARE (EMPLOYEES SHARING

ADDITIONAL COST) TO THE UNREPRESENTED

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL
EMPLOYEES RESOLUTION NO. 25-039
WHEREAS, the City Council of the City of Morgan Hill adopted a Resolution No. 25-039 adjusting the salary schedule for unrepresented Management, Professional, and Confidential employees on December 17, 2025; and
WHEREAS, one of the steps in the procedures to amend the California Public Employee’s Retirement System (CalPERS) contract is the adoption by the City Council of the City of Morgan Hill of a resolution that shall contain the Section 20516 Cost Share, and WHEREAS, the Section 20516 Cost Share shall contain the following summary:

Effective pay period beginning December 21, 2025 (or as soon as administratively possible with CalPERS after December 21, 2025), all Miscellaneous members (Classic and PEPRA) and Safety Classic members in the unrepresented Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 4.12%.

Effective pay period beginning December 21, 2025 (or as soon as administratively possible with CalPERS after December 21, 2025), Safety PEPRA members in the unrepresented Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 0%.

Effective pay period beginning December 20, 2026 (or as soon as administratively possible with CalPERS after December 20, 2026), all Miscellaneous members (Classic and PEPRA) and Safety Classic members in the unrepresented Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 1.12%.

Effective pay period beginning December 19, 2027 (or as soon as administratively possible with CalPERS after December 19, 2027), all Miscellaneous members (Classic and PEPRA) and Safety Classic members in the unrepresented Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 0%.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morgan Hill does hereby add Section 20516 Cost Share to the unrepresented Management, Professional, and Confidential Employees Resolution No. 25-039.

City of Morgan Hill
Resolution No. _____

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 28th day of January 2026 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ ___________________________ MARK TURNER, Mayor Michelle Bigelow, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. ______, adopted by the City Council at the meeting held on January 28, 2026.

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

DATE: _____________________ ___________________________________ Michelle Bigelow, City Clerk

RESOLUTIONNO. 25-039

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADJUSTING THE SALARY

SCHEDULE FOR MANAGEMENT, PROFESSIONAL, AND

CONFIDENTIAL EMPLOYEES (THIS RESOLUTION
RESCINDS RESOLUTION NO. 24-041)
WHEREAS, the City Manager has presented to the City Council of the City of Morgan Hill a recommended set of salary ranges and benefits for the Management, Professional, and Confidential employees; and
WHEREAS, the City Council of the City of Morgan Hill has reviewed said recommendations;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morgan Hill as follows:

SECTION 1 - SALARY RANGES
A. Effective December 21, 2025, base salaries for Groups 1-A, 1-B, 1-C, and 1-D, increase by 3%. See Salary Schedule attached as Exhibit A.

B. Effective December 20, 2026, base salaries for Groups 1-A, 1-B, 1-C, and 1-D, increase by 2%, See Salary Schedule attached as Exhibit B.

C. Effective December 19, 2027, base salaries for Groups 1-A, 1-B, 1-C, and 1-D, increase by 1%.

See Salary Schedule attached as Exhibit C.

D. Groups 1-A, 1-B, 1-C, and 1-D base salary ranges include the employee PERS contribution which isdeducted from payroll (See SECTION 3, E-H.)
SECTION 2 - ESTABLISHMENT OF COMPENSATION AND JOB DESCRIPTIONS FOR GROUPS 1-A, 1-B, 1-C, and 1-D
A. The City Manager will establish the monthly compensation for the classifications in Group 1­A.

In order to attract high quality executive managers, foster job security within a professional climate, and provide the flexibility to remain competitive within the area job market, the City Manager has authority to enter into individual employment agreements with each executive manager; provided that the terms of the employment agreement do not exceed the total compensation permitted by this Resolution.

Employees listed in Group 1-A may receive a severance allowance as provided for in an individual employment agreement when they are separated in good standing from employment; provided that such separation is not for cause, or for reasons listed in Government Code 19572, or for any employee who voluntarily resigns from City service for personal reasons.

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1. The City Manager shall establish an allowance amount, not to exceed six months’ salary, which is determined to be in the best interest of the city for the following executive classifications of the Group 1-A:

Assistant City Manager for Administrative Services
Assistant City Manager for Development Services
Assistant City Manager/Public Services Director
Chief of Police

2. The City Manager shall establish an allowance amount, not to exceed three months’ salary, which is determined to be in the best interest of the City for the remaining classifications of the Group 1-A.

3. This severance allowance is in addition to any unused vacation or administrative leave pay unused at the time of separation.

B. Each Department Director will recommend to the City Manager the proposed monthly salary to be paid to each of the employees whose classification appears in Group 1-B, 1-C, and 1-D.

Upon approval of the City Manager, the monthly salary will be set within the prescribed range for each classification. The City Manager has the authority to increase the monthly compensation for employees in Group 1-B, 1-C, and 1-D, by a maximum of 10% within the prescribed range each fiscal year based on each individual employee's performance.

C. The City will contribute 2% of an employee’s base salary to a City-sponsored IRS 457 deferred compensation program of the employee's choice 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 shall receive an additional one percent (1%) city contribution.

D. When it is proposed by the Personnel Officer that a new classification be created or an existing classification be changed, the City Manager shall submit justification for approval of that action to the City Council and if that action is approved, the City Manager will have the authority to approve new and revised job descriptions.

SECTION 3 - CONTRIBUTIONS TO THE CalPERS RETIREMENT SYSTEM, GROUPS 1-A, 1-B, 1-C, and 1-D
A. For "Classic Members" as defined by the Public Employees' Pension Reform Act of 2013 (PEPRA) and in the CalPERS retirementsystem:

1. Non-Safety (miscellaneous) employees listed in Groups 1-A, 1-B, 1-C, and 1-D will receive CalPERS retirement benefits under the 2.5% at age 55 plan.

2. Safety (sworn) employees listed in Groups 1-A and 1-B, will receive CalPERS retirement City of Morgan Hill
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benefits under the 3% at age 50 plan.

B. For "NewMembers" as defined by PEPRA and in the CalPERS retirement system:

1. Non-Safety (miscellaneous) employees listed in Groups 1-A, 1-B, 1-C, and 1-D will receive CalPERS retirement benefits under the 2.0% at 62 plan.

2. Safety (sworn) employees listed in Groups 1-A and 1-B will receive CalPERS retirement benefits under the 2.7% at age 57 plan.

C. CalPERS defines a "NewMember" as:

1. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public retirement system.

2. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system.

3. A member who established CalPERS membership prior to January 1, 2013, and who is hired by a different CalPERS employer after January 1, 2013, after a break in service of greaterthan six months.

4. CalPERS refers to all members that do not fit the definition of a "new member" as a "classic member.”
Non-Safety (Miscellaneous)
D. Non-Safety (miscellaneous) employees: Beginning with CalPERS rates effective July 1, 2013, the City and Non-Safety (miscellaneous) Management, Professional, and Confidential employees agreed to split future employer rate increases at a 50/50 ratio. This methodology will be used in subsequent years should CalPERS increase the Miscellaneous contribution rates.

E. The Miscellaneous “Classic Members” shall contribute, in addition to the “Classic Members” rate of

8.0%, an additional 5.165% towards the “Classic Members”CalPERS contribution rate for FY 2021-

22. The total “Classic Members” employee contribution obligation shall be 13.165%.

F. The Miscellaneous “New Members” shall contribute, in addition to the “New Members” rate of

7.0%, an additional 5.165% towards the “New Members” CalPERS contribution rate for FY 2020-

21. The total “New Members” employee contribution obligation shall be 12.165%.

G. Effective July 1, 2022 miscellaneous employees 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 employees agree to split any rate decreases below the FY 2022-23 employer’s CalPERS contribution rate of 28.77% at a 50/50 ratio.

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H. Effective pay period beginning June 26, 2022 (or as soon as administratively possible with CalPERS after June 26, 2022), all miscellaneous members (Classic and PEPRA) in the Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 6.12%.

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

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

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

Safety (Sworn)
L. Safety (sworn) PEPRA employees: Beginning with CalPERS rates effective July 1, 2013, at which time the City’s employer contribution PEPRA rate was 11.5%, the City and Association agreed that, beginning with CalPERS PEPRA rates effective July 1, 2013, safety (sworn) PEPRA employees would not pay less than 11.50% and would split future increases to the City’s employer PEPRA contribution rates, including both the normal cost and any unfunded actuarial liability at a 50/50 ratio. For example, the City’s employer CalPERS safety PEPRA obligation was 12.114% in FY 16-17 with the PEPRA employees’ obligation was at 11.50%.

Therefore, City paid half of the 0.614% increase over the base year City’s employer PEPRA cost of 11.50% (equal to 0.307%) and safety PEPRA employees paid the other half (also equal to 0.307%). This methodology has been used in each year subsequent to FY 2016-17 and will be used in future years should CalPERS increase the City’s employer Safety PEPRA contribution rates. The Safety PEPRA employees CalPERS contributions rate for 2021-22 shall be 14.709% (13.00% employee + 1.709% of the employer share). Effective July 1, 2023, Safety (sworn) PEPRA employees will share the employer’s CalPERS contribution rate at 1.02%.

Effective July 1, 2024, Safety (sworn) PEPRA employees will share the employer’s CalPERS contribution rate at 1.607%.

M. Safety (sworn) PEPRA employees: Effective December 21, 2025, the employee’s contribution towards employer’s share of pension cost will be eliminated.

N. Safety (sworn) Classic employees: Beginning December 30, 2018, the City and Safety (sworn) Management, Professional, and Confidential employees agreed, Safety (sworn) Classic employees shall share the employer’s CalPERS contribution rate at 6.12%.

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

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

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

SECTION 4 - HEALTH CARE CONTRIBUTIONS AND IRS 125 PLAN, GROUPS 1-A, 1-B, 1-C, and 1-D
A. The City will contribute to the City’s medical and dental plans as follows:

1. For employees with family coverage, up to $2,947.97/month in 2026 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028.

2. For employees with employee plus one coverage, up to $2,249.59/month in 2026 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028.

3. For employees with employee only coverage, up to $1,124.80/month in 2026 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028.

4. Employees enrolling in City health but not using the maximum amount available from the City for their premium category (employee only, employee + 1, employee + 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.

5. Employees who waive medical coverage and annually provide proof of alternate medical coverage shall be entitled to a taxable health in lieu payment of six hundred ten dollars ($610) per month.

6. If an employee waives medical and elects dental coverage, the employee will receive the taxable health in lieu payment of six hundred ten dollars ($610) per month but will pay the appropriate dental premium.

B. The City will continue to provide coverage under the Concern Employee Assistance Program.

C. The City will continue to offer an IRS Section 125 program.

SECTION 5 - GENERAL BENEFIT PROVISIONS, GROUPS 1-A, 1-B, 1-C, AND 1-D The City will comply with the requirements of the City Personnel Rules and Regulations and the Fair Labor Standards Act governing the use of taking and reporting time off work for management employees.

A. Holidays

1. The City will grant the following paid holidays to employees:
• New Year's Day
• Martin Luther King, Jr. Day
• President's Day
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• Cesar Chavez Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• Day after Thanksgiving
• Christmas Eve
• Christmas Day
One (1) day holiday to be used during the furlough period or on the last workday before the holiday.

Two floating holidays which must be used during the fiscal year.

2. Holidays are paid at a rate of eight hours of time off; employees on alternate work schedules must use additional leave balances to receive full pay on a holiday.

3. With the approval of the employee's supervisor, employees may "float" holidays to another day within the same fiscal year provided they work on the holiday.

4. Those employees in Group 1-D 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 additional hours equivalent to the additional vacation hours received by those working on a 9/80 schedule as floating holiday time based on the number of holidays that fall in each specific year.

B. Sick Leave Accrual

1. Sick Leave credit for employees will be accumulated on the basis of eight hours of sick leave per month (96 hours per year).

2. The City will, at the end of each calendar year, pay each employee twenty-five percent of the unused sick leave earned that year unless the employee requests not to receive such a payment.

3. The balance of the unused sick leave will then be accumulated on an unlimited basis.

4. Upon retirement, 100% of the employee's unused sick leave balance will be credited to the employee's 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)

5. Each employee may take 16 hours of personal leave time during the fiscal year which is charged against the current year's sick leave accrual.

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6. The City Manager may negotiate establishing a leave "bank" with new employees at time of hire.

C. Vacation Leave Accrual

1. Each employee will be credited vacation on the basis of 120 hours per year for the first five years of City service. After five years of service, vacation will be credited on the basis of 160 hours per year.

2. The maximum accumulation of vacation will be no more than that earned for two years annual accrual effective within the pay period that includes July 1st in any given year..

3. Additional vacation accrual will not be provided until the employee's vacation balance drops below the maximum accrual limit as of July 1st in any given year.

4. The City Manager may negotiate vacation accrual rates and/or establish a leave "bank" with new employees at time of hire.

D. Administrative Leave, Groups 1-A, 1-B, and 1-C

1. Employees listed in Groups 1-A, 1-B, and 1-C receive and may use up to 72 hours of administrative leave with pay per fiscal year.

2. Administrative leave time for employees in Groups 1-A, 1-B, and 1-C will be available for one additional year if not used in the fiscal year that it was initially available. If, however, the administrative leave time that was carried over to the following fiscal year is not used during the second year, it will be lost at the end of the second fiscal year. In effect, the maximum amount of administrative leave time that may be available to an employee at any given time is 144 hours.

3. Effective July 1, 2016, new employees who are hired during any month other than July, will initially receive prorated administrative leave hours of six (6) hours per month depending on date of hire and the hours will be banked at time of hire (i.e. employees hired in the month of August would receive 66 hours of administrative leave because they will be working a total of eleven (11) months in the fiscal year). All regular, full-time employees will receive 72 hours of administrative leave each fiscal year following their hire date. Part-time employees have prorated benefits and their total administrative leave hours will be prorated based on their position allocation.

E. Leave Cash Out
Employees listed in Groups 1-A, 1-B, 1-C and 1-D may cash out up to 120 hours of accrued vacation, administrative leave, or a combination of the two, per calendar year.

Employees must make an irrevocable election by December 1 of each year for the following calendar year stating their intent to cash out and the eligible number of hours.

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If employees do not request payment of the elected cash amount by November 1 of each year, Payroll will automatically cash out the amount designated by the employee on or after the pay period including November 1st.

F. Bereavement Leave
Management, Professional, and Confidential employees shall, per occurrence, be granted Bereavement Leave when a death occurs in the employee's or 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, 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 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. Up to five (5) days are paid when the death or service is outside the State. City paid bereavement 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 this time, subject to the approval of the employee’s supervisor and deducted from the employee’s other leave banks.

Special circumstances beyond this definition may be considered on a case-by-case basis and must be approved by the City Manager. This leave will not affect the twenty-five percent cash out of sick leave for the same calendar year.

G. Professional Development
It shall be the philosophy of the City to encourage employees to attend classes, seminars, conferences, etc. which will enable the employee to develop professionally. Such attendance must be approved by the Department Director or the City Manager. The City may request employees who complete such a course to report or train other employees in the skills they have attained.

1. Tuition Reimbursement Program
Employees are eligible to receive tuition reimbursement of up to $3,000 per fiscal year for the cost of books and tuition for classes or courses beneficial to the employee's career development. All classes must be approved in advance by the Department Director or City Manager. Reimbursement will take place upon a successful completion or passing of the course.

2. Membership Dues
For employees listed in Groups 1-A and 1-B, the City shall provide a personal membership dues reimbursement of up to $1,200 per fiscal year for costs associated with joining and participating in Morgan Hill community service organizations such as Rotary or Kiwanis. Reimbursement of membership dues for community service organizations requires the prior approval by the Department Director or the City Manager.

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H. Life and Disability Insurance
The City shall pay the premiums for short-term disability, long-term disability, and life insurance plans.

1. Life insurance levels shall be as follows for the employees listed in Section 1:

Group 1-A $250,000
Group 1-B $150,000
Group 1-C $100,000
Group 1-D $100,000
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.

2. Short-term disability coverage for employees shall be at the maximum rate of $1,384 per week based on 66⅔% of the actual weekly salary after an eight-day elimination period.

3. Long-term disability coverage for employees shall be at the maximum rate of $6,000 per month based on 66⅔% of the actual monthly salary after a 60-day elimination period.

I. RetirementMedicalPlan
Upon retirement, employees may continue enrollment in the medical insurance plans provided by CalPERS without an interruption of coverage. Such enrollment will be contingent upon the employee meeting the requirements of the medical plans provided by CalPERS and paying the monthly premium to CalPERS at the employee's expense. It will be the employee's responsibility to make sure the insurance premium is paid to CalPERS before the due date.

Failure to do so will result in the employee being terminated from their medical coverage.

J. Special Assignment Pay
Special Assignment Pay may be granted to employees who have assumed, for an extended period, significant additional responsibilities outside their current classification. The request for special assignment 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. This pay will not be considered additional compensation as defined by the California Public Employees’ Retirement Systems (CalPERS).

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K. Employee Uniform Allowance
Safety employees in Groups 1-A and 1-B will be eligible for the following uniform allowance:

Chief of Police and Police Captain: $1,400
Police Support ServicesManager: $810
L. Work Schedule
The City Manager will establish the standard work schedule for employees. Based on the needs of the City, the City Manager may at his/her discretion, change the work schedules of employees at any time.

M. Auto Allowance
The City Manager may establish a monthly allowance forselected employees listed in Groups 1-A and 1-B who use their personal vehicles on City business. Based on the needs of the City, the City Manager may, at his/her discretion, change the auto allowance of employees at any time. The current monthly allowance range is $225 - $325.

N. Cell Phone Allowance
The City Manager may establish a monthly allowance for selected employees who use their personal cell phones on City business. Based on the needs of the City, the City Manager may, at his/her discretion, change the cell phone allowance of employees at any time. The current monthly allowance is established in Administrative Policy III019.

O. Bilingual Pay
Employees identified by the City Manager/Department Head to use another language in their work and who are certified by the process described below shall receive the following compensation:
a. Employees shall receive a monthly stipend of $150.
b. The Certification process shall be completed by a provided contractor by Human Resources or a 3 person panel (established by Human Resources) to determine conversational competence. Employees shall be subject to recertification every 2 years unless waived by City.
c. 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.

SECTION 6 - EFFECTIVE DATE
This resolution shall be effective December 17, 2025. Compensation shall be made available to only those employees covered by this section who are still employed as a Management, Professional, or Confidential employee with the City as of the effective date of this agreement.

As of the effective date of this Resolution, Resolution No. 24-041 shall be superseded and rescinded.

City of Morgan Hill
Resolution 25-039
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Docusign Envelope ID: 9A93122A-3047-4037-8914-B2D9FFDFB74D

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 17th day of December 2025 by the following vote:

AYES: COUNCIL MEMBERS: Mark Turner, Marilyn Librers, Miriam Vega Soraida Iwanaga, Yvonne Martinez Beltran
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
APPROVED: ATTEST:
____________________________ ___________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 25-039, adopted by the City Council at the meeting held on December 17, 2025.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk
City of Morgan Hill
Resolution 25-039
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Docusign Envelope ID: 9A93122A-3047-4037-8914-B2D9FFDFB74D 1/12/2026

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $19,479 $25,595 Assistant City Manager for Development Services $19,479 $25,595 Assistant City Manager/Public Services Director $19,479 $25,595 Chief of Police $19,479 $25,595
Community Services Director * $17,180 $22,623
Development Services Director $17,180 $22,623
Economic Development Director $17,180 $22,623
Engineering and Utilities Director * $17,180 $22,623
Finance Director $17,180 $22,623
Housing and Economic Mobility Director $17,180 $22,623
Human Resources Director $17,180 $22,623
Communications and Engagement Director* $14,825 $19,481 Information Technology Director $14,825 $19,481
Group 1-B: Middle Management Bottom Top
Police Captain $15,874 $20,857
Assistant City Attorney $14,825 $19,481
Assistant Finance Director* $14,825 $19,481
Building Official $14,825 $19,481
City Clerk/Public Information Officer $14,825 $19,481
Deputy Director for Engineering $14,825 $19,481
Deputy Director for Utilities Services $14,825 $19,481
Housing Manager* $14,825 $19,481
Planning Manager * $14,825 $19,481
Program Administrator* $14,825 $19,481
Assistant to the City Manager * $13,890 $18,221
Building Manager $13,106 $17,190
Economic Development Manager* $13,106 $17,190
Environmental Services Administrator $13,106 $17,190
Maintenance Manager $13,106 $17,190
Principal Planner $13,106 $17,190
Recreation Manager $13,106 $17,190
Senior Civil Engineer $13,106 $17,190
Senior Project Manager $13,106 $17,190
Budget Manager $12,119 $15,939
Communications and Engagement Manager * $12,119 $15,939 Community Services Manager * $12,119 $15,939
Environmental Services Manager $12,119 $15,939
Information Services Manager * $12,119 $15,939
Network Architect $12,119 $15,939
Police Support Services Manager $12,119 $15,939
Public Services Administrative Manager $12,119 $15,939
Supervising Civil Engineer $12,119 $15,939
Utility Systems Manager $12,119 $15,939
Accounting Manager * $11,281 $14,827
Financial and Policy Analyst * $11,281 $14,827
Police Administrative Manager* $11,281 $14,827
Senior Planner $11,281 $14,827
Senior Recreation Supervisor $10,730 $13,692
Community Services Supervisor $10,219 $13,040
Council Services and Records Manager * $10,219 $13,040
Deputy City Attorney $10,219 $13,040
Economic Development Coordinator $10,219 $13,040
Emergency Services Coordinator $10,219 $13,040
GIS / Land Use Data Administrator $10,219 $13,040
Maintenance Services Coordinator $10,219 $13,040
Older Adult Services Supervisor* $10,219 $13,040
Public Services Facilities Security Coordinator $10,219 $13,040 Senior Human Resources Analyst $10,219 $13,040
Risk Management Analyst (.50 FTE) $4,872 $6,392
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $9,741 $12,782
Legal Specialist $8,764 $11,532
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $7,990 $10,197
Human Resources Technician $7,771 $10,197
Human Resources Assistant * $6,086 $7,960
Effective: December 21, 2025 * Currently Unfunded Positions Exhibit A
City of Morgan Hill
Resolution 25-039
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Docusign Envelope ID: 9A93122A-3047-4037-8914-B2D9FFDFB74D

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $19,869 $26,107 Assistant City Manager for Development Services $19,869 $26,107 Assistant City Manager/Public Services Director $19,869 $26,107 Chief of Police $19,869 $26,107
Community Services Director * $17,524 $23,075
Development Services Director $17,524 $23,075
Economic Development Director $17,524 $23,075
Engineering and Utilities Director * $17,524 $23,075
Finance Director $17,524 $23,075
Housing and Economic Mobility Director $17,524 $23,075
Human Resources Director $17,524 $23,075
Communications and Engagement Director* $15,121 $19,870 Information Technology Director $15,121 $19,870
Group 1-B: Middle Management Bottom Top
Police Captain $16,192 $21,274
Assistant City Attorney $15,121 $19,870
Assistant Finance Director* $15,121 $19,870
Building Official $15,121 $19,870
City Clerk/Public Information Officer $15,121 $19,870
Deputy Director for Engineering $15,121 $19,870
Deputy Director for Utilities Services $15,121 $19,870
Housing Manager* $15,121 $19,870
Planning Manager * $15,121 $19,870
Program Administrator* $15,121 $19,870
Assistant to the City Manager * $14,168 $18,586
Building Manager $13,368 $17,534
Economic Development Manager* $13,368 $17,534
Environmental Services Administrator $13,368 $17,534
Maintenance Manager $13,368 $17,534
Principal Planner $13,368 $17,534
Recreation Manager $13,368 $17,534
Senior Civil Engineer $13,368 $17,534
Senior Project Manager $13,368 $17,534
Budget Manager $12,361 $16,258
Communications and Engagement Manager * $12,361 $16,258 Community Services Manager * $12,361 $16,258
Environmental Services Manager $12,361 $16,258
Information Services Manager * $12,361 $16,258
Network Architect $12,361 $16,258
Police Support Services Manager $12,361 $16,258
Public Services Administrative Manager $12,361 $16,258
Supervising Civil Engineer $12,361 $16,258
Utility Systems Manager $12,361 $16,258
Accounting Manager * $11,506 $15,124
Financial and Policy Analyst * $11,506 $15,124
Police Administrative Manager* $11,506 $15,124
Senior Planner $11,506 $15,124
Senior Recreation Supervisor $10,945 $13,965
Community Services Supervisor $10,423 $13,301
Council Services and Records Manager * $10,423 $13,301
Deputy City Attorney $10,423 $13,301
Economic Development Coordinator $10,423 $13,301
Emergency Services Coordinator $10,423 $13,301
GIS / Land Use Data Administrator $10,423 $13,301
Maintenance Services Coordinator $10,423 $13,301
Older Adult Services Supervisor* $10,423 $13,301
Public Services Facilities Security Coordinator $10,423 $13,301 Senior Human Resources Analyst $10,423 $13,301
Risk Management Analyst (.50 FTE) $4,969 $6,520
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $9,936 $13,038
Legal Specialist $8,940 $11,762
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $8,150 $10,401
Human Resources Technician $7,926 $10,401
Human Resources Assistant * $6,207 $8,120
Effective: December 20, 2026 * Currently Unfunded Positions Exhibit B
City of Morgan Hill
Resolution 25-039
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Docusign Envelope ID: 9A93122A-3047-4037-8914-B2D9FFDFB74D

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $20,067 $26,368 Assistant City Manager for Development Services $20,067 $26,368 Assistant City Manager/Public Services Director $20,067 $26,368 Chief of Police $20,067 $26,368
Community Services Director * $17,699 $23,306
Development Services Director $17,699 $23,306
Economic Development Director $17,699 $23,306
Engineering and Utilities Director * $17,699 $23,306
Finance Director $17,699 $23,306
Housing and Economic Mobility Director $17,699 $23,306
Human Resources Director $17,699 $23,306
Communications and Engagement Director* $15,273 $20,069 Information Technology Director $15,273 $20,069
Group 1-B: Middle Management Bottom Top
Police Captain $16,354 $21,487
Assistant City Attorney $15,273 $20,069
Assistant Finance Director* $15,273 $20,069
Building Official $15,273 $20,069
City Clerk/Public Information Officer $15,273 $20,069
Deputy Director for Engineering $15,273 $20,069
Deputy Director for Utilities Services $15,273 $20,069
Housing Manager* $15,273 $20,069
Planning Manager * $15,273 $20,069
Program Administrator* $15,273 $20,069
Assistant to the City Manager * $14,310 $18,772
Building Manager $13,501 $17,709
Economic Development Manager* $13,501 $17,709
Environmental Services Administrator $13,501 $17,709
Maintenance Manager $13,501 $17,709
Principal Planner $13,501 $17,709
Recreation Manager $13,501 $17,709
Senior Civil Engineer $13,501 $17,709
Senior Project Manager $13,501 $17,709
Budget Manager $12,485 $16,420
Communications and Engagement Manager * $12,485 $16,420 Community Services Manager * $12,485 $16,420
Environmental Services Manager $12,485 $16,420
Information Services Manager * $12,485 $16,420
Network Architect $12,485 $16,420
Police Support Services Manager $12,485 $16,420
Public Services Administrative Manager $12,485 $16,420
Supervising Civil Engineer $12,485 $16,420
Utility Systems Manager $12,485 $16,420
Accounting Manager * $11,621 $15,275
Financial and Policy Analyst * $11,621 $15,275
Police Administrative Manager* $11,621 $15,275
Senior Planner $11,621 $15,275
Senior Recreation Supervisor $11,054 $14,105
Community Services Supervisor $10,528 $13,434
Council Services and Records Manager * $10,528 $13,434
Deputy City Attorney $10,528 $13,434
Economic Development Coordinator $10,528 $13,434
Emergency Services Coordinator $10,528 $13,434
GIS / Land Use Data Administrator $10,528 $13,434
Maintenance Services Coordinator $10,528 $13,434
Older Adult Services Supervisor* $10,528 $13,434
Public Services Facilities Security Coordinator $10,528 $13,434 Senior Human Resources Analyst $10,528 $13,434
Risk Management Analyst (.50 FTE) $5,019 $6,585
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $10,035 $13,168
Legal Specialist $9,029 $11,880
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $8,231 $10,505
Human Resources Technician $8,005 $10,505
Human Resources Assistant * $6,269 $8,201
Effective: December 19, 2027 * Currently Unfunded Positions Exhibit C
City of Morgan Hill
Resolution 25-039
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Docusign Envelope ID: 9A93122A-3047-4037-8914-B2D9FFDFB74D

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
Monday, December 15, 2025
12:00 p.m.

Community and Cultural Center
17000 Monterey Road, Morgan Hill, CA 95037

SPECIAL MEETING
A Special Meeting was called for the purpose of conducting a closed session.

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 12:05 p.m.

ROLL CALL ATTENDANCE
City Clerk Bigelow called the roll.

PRESENT Mark Turner, Marilyn Librers, Soraida Iwanaga, Yvonne Martinez Beltran, Miriam Vega
ABSENT None

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

CLOSED SESSION
City Clerk Bigelow announced the closed session item.

Public Employment (§ 54957)
Title: City Attorney

December 15, 2025
2 OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION
Public comment opened at 12:06 p.m. With no requests to speak, public comment closed.

ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 12:06 p.m.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 4:30 p.m. with no reportable action on the closed session item.

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, December 17, 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
Council Member Vega arrived at 5:58 p.m.

December 17, 2025
2 DECLARATION OF POSTING AGENDA
Deputy City Clerk Rossi declared the posting of the agenda.

CLOSED SESSION
City Attorney Larkin announced the closed session item.

REAL PROPERTY NEGOTIATIONS
Pursuant to: Government Code Section 54956.8
Property: APN – 81706002
Negotiating Parties: City Manager Christina Turner and Public Services Director Chris Ghione
Under Negotiation: Price and Terms

CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION
Initiation of litigation pursuant to § 54956.9(c)
(Unknown number of cases)
PUBLIC EMPLOYMENT (§ 54957)
Title: City Attorney

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION
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 5:01 p.m.

REGULAR MEETING
The regular meeting convened at 6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

RECOGNITION
Summer Brown

PRESENTATION
YAC Presentation - Developmental Asset #1: Family life provides high levels of love and support

December 17, 2025
3 Friends of the Senior Center Donation

CITY COUNCIL REPORT
Mayor Turner shared updates on his participation as a member of the VTA 2016 Measure B Caltrain Corridor Ad Hoc Committee, which met to discuss potential eligible 2016 Measure B projects, with additional items scheduled for discussion at future meetings. He highlighted the 12th year of Wreaths Across America, during which nearly 1,300 memorial wreaths were placed on veterans’ graves across South County. At Morgan Hill’s Mount Hope Cemetery, about 400 wreaths were placed with strong volunteer participation. He also shared that he spoke at the Hanukkah celebration at the CCC on December 14 and addressed attendees following the tragic shooting in Sydney, Australia. Additional updates included his participation in the Morgan Hill Historical Society's 15th Annual Holiday Tea events on December 6 and 7. He noted that Merry Morgan Hill activities were underway, acknowledged a successful Sidewalk Saturday, recognized the Morgan Hill Kiwanis Holiday Parade held on December 6 with appreciation to Margaret Graham and the Morgan Hill Kiwanis for their work, and highlighted holiday events including the Merry Morgan Hill Market at the Granada Theatre and the Morgan Hill Chamber of Commerce market at the CCC.

OTHER REPORTS
Council Member Librers marked her 11th year of appointment to the League of California Cities and expressed appreciation for the opportunity to serve and represent Morgan Hill at the state level, where she addressed issues related to housing, homelessness, families, food access, and related community needs. She shared that after two years on the Transportation Committee advocating for increased transportation resources for Morgan Hill, she was excited to return to the Community Services Committee, a personal passion.

Council Member Martinez Beltran shared updates on her regional and state-level service, including her role on the League of California Cities Board, where she participated in the League Leaders event and board meetings to establish statewide priorities for the year. She noted that the priorities included the financial health of cities, climate impacts such as wildfires and disasters, housing and affordability, and public safety, including police, fire, and public works. She also reported on her role as Chair of the Valley Transportation Authority’s Policy Advisory Committee, where she delivered her final board report for the year, and her participation on the Cal Cities Peninsula Division Board representing the Bay Area, San Mateo County, and Santa Clara County, where regional priorities and upcoming events were discussed. Additional updates included her attendance at a local immigration convening and her continued leadership of the 7th Annual Posada event at the Grange, which will take place on Friday and include community giveaways such as bicycles, food, and other resources.

December 17, 2025
4 CITY MANAGER'S REPORT
City Manager Turner shared employee recognitions and provided several community updates, including the launch of Balancing Act in December 2025, an online General Fund budget simulation tool that gathered early public input to help inform the City’s upcoming two-year budget. She also highlighted community events, including the Merry Morgan Hill Market on Thursday, December 18 at the Granada Theatre, the Posada at the Grange on Friday, December 19, and music and theatre performances at the Morgan Hill Community Playhouse and South Valley Civic Theatre on Saturday, December 20. She further noted a City-hosted Posada at the Community Cultural Center celebrating the adoption of the Healthy Neighborhoods for All Element, supported by South County H.E.A.L.S. and Santa Clara County Supervisor Sylvia Arenas. Additional updates included the opening of Philz Coffee on Cochrane Road and a reminder that City offices would be closed for the furlough period from December 22, 2025, through January 2, 2026, with recreation and aquatics facilities operating on limited schedules and closed on Christmas Day and New Year’s Day.

CITY ATTORNEY'S REPORT
City Attorney Larkin reported that the City Council met in closed session prior to the meeting to conduct a conference with real estate negotiators, Christina Turner and Chris Ghione, to discuss the price and terms of sale for City-owned property, APN - 81706002. He also noted that two additional closed session items scheduled for the evening were continued to a later date.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public comment opened at 6:28 p.m. With no requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

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

CONSENT CALENDAR

December 17, 2025
5 by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action.

MOTION:

Approving the consent calendar.

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

1. ACCEPT $40,000 DONATION FROM THE FRIENDS OF THE MORGAN HILL

SENIOR CENTER
Recommendation:

1. Accept $40,000 donation from the Friends of the Morgan Hill Senior Center to support services at the Centennial Recreation Senior Center; and

2. Authorize the City Manager to execute any agreements necessary for donation acceptance.

2. ACCEPTANCE OF COUNCIL CHAMBER BUILDING ROOF REPLACEMENT

PROJECT
Recommendation:

1. Accept as complete the Council Chamber Building Roof Replacement Project;

2. Authorize the Public Services Director to sign the Notice of Completion; and

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

3. APPROVE SECOND AMENDMENT TO DESIGN CONSULTANT AGREEMENT WITH VERDE DESIGN FOR $16,000 FOR ADDITIONAL UNANTICIPATED Items appearing on the Consent Calendar are considered routine and may be approved

December 17, 2025
6 Recommendation:

Authorize the City Manager to execute and administer an amendment to the design consultant agreement with Verde Design for the design of the Butterfield Park Site for an additional $16,000.

4. APPROVE IMPROVEMENT AGREEMENT AND SUBSEQUENT

DEVELOPMENT REIMBURSEMENT AGREEMENT FOR THE TENNANT -
TEN SOUTH ACQUISITIONS PROJECT LOCATED AT 740 TENNANT
AVENUE WITH ASSESSOR'S PARCEL NUMBER (APN) 817-08-032
Recommendation:

1. Approve an Improvement Agreement with 740 Tennant LP;

2. Approve a Subsequent Development Reimbursement Agreement with 740 Tennant LP; and

3. Authorize the City Manager to execute the Improvement Agreement and Subsequent Development Reimbursement Agreement.

5. APPROVE THE DECEMBER 3, 2025 CITY COUNCIL MEETING MINUTES Recommendation:

Approve the December 3, 2025 City Council Meeting Minutes.

6. APPROVE A SERVICE AGREEMENT WITH CATHOLIC CHARITIES OF

SANTA CLARA COUNTY FOR SOUTH COUNTY YOUTH TASK FORCE
YOUTH SUPPORT SERVICES FOR A TOTAL AMOUNT OF $135,531
Recommendation:

1. Authorize the City Manager to execute, administer, and further negotiate an agreement with Catholic Charities of Santa Clara County in the amount of $135,531 for the provision of youth support services in association with the South County Youth Task Force;

2. Authorize the City Manager to extend this agreement for two additional one year terms should funding be available and appropriated within future fiscal year budgets;

3. Authorize the City Manager to execute, negotiate, and administer any required agreements with the Morgan Hill Unified School District to receive funding for services associated with the South County Youth Task Force; and

4. Adopt a resolution amending the FY 2025/26 Operating Budget to increase revenue and expenses by $40,000 in the General Fund.

7. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE AND

SERVICES ASSOCIATED WITH THE BUTTERFIELD PARK CONSTRUCTION

December 17, 2025
7 ADMINISTER A SECOND AMENDMENT TO THE AGREEMENT WITH
SOLUTIONZ, INC., EXTENDING THE TERM OF THE AGREEMENT TO JUNE 30, 2026
Recommendation:

Approve and authorize the City Manager to execute and administer a second amendment to the Agreement with Solutionz, Inc., extending the term of the agreement to June 30, 2026.

8. APPROVE MEMORANDUM OF UNDERSTANDING (MOU) WITH MORGAN

HILL POLICE OFFICERS' ASSOCIATION (POA) AND CORRESPONDING

SALARY SCHEDULES, AND APPROVE MANAGEMENT, PROFESSIONAL,

AND CONFIDENTIAL EMPLOYEES RESOLUTION AND CORRESPONDING

SALARY SCHEDULES, AND PART-TIME TEMPORARY AND SEASONAL

EMPLOYEES SALARY SCHEDULE
Recommendation:

1. Approve a Memorandum of Understanding (MOU) with POA effective December 21, 2025 - December 31, 2028 and corresponding salary schedules;

2. Approve the Management, Professional, and Confidential Employees Resolution effective December 21, 2025 and corresponding salary schedules; and

3. Approve the Part-Time Temporary and Seasonal Employees salary schedule effective December 21, 2025.

9. AWARD LANDSCAPE MAINTENANCE SERVICE AGREEMENT TO

MEDALLION LANDSCAPE MANAGEMENT, LLC FOR CITY PARKS

MOWING, STREET MEDIANS, AND DOWNTOWN
Recommendation:

1. Award a Maintenance Service Agreement to Medallion Landscape Management, LLC in the amount of $379,392 for an initial two-year term ($189,696 annually) to service Group 1: Park Mowing at City Parks; Group 3: Street Medians, Streetscapes, and Parking Lots; and Group 6:

Downtown Area; and extra services;

2. Authorize the City Manager to extend the service agreement up to an additional three years subject to future annual budget appropriations by the City Council for a total term of five years; and

3. Authorize the City Manager to execute and administer said Agreement.

10. RECEIVE MONTHLY BUDGET UPDATE AND OCTOBER 2025 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

December 17, 2025
8 Receive and file reports.

OTHER BUSINESS

11. REVIEW AND APPROVE DESIGN OF A PROPOSED DOWNTOWN

GATEWAY ARCH BY THE DOWNTOWN MORGAN HILL IMPROVEMENT

DISTRICT (DMHID)
Recommendation:

Review and approve the design of a Downtown Gateway Arch as proposed by the Downtown Morgan Hill Improvement District.

Economic Development Director Mahood provided a presentation and report.

Public comment opened at 7:01 p.m. The following people were called to speak:

David Dindak
Nick Gaich
Dan McCranie
Krista Rupp (Zoom)
Joe Baranowski (Zoom)
With no further requests to speak, public comment closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Vega
SECONDER: Council Member Iwanaga
AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
The meeting recessed at 7:23 p.m. and reconvened at 7:29 p.m.

12. RECEIVE REPORT REGARDING MORGAN HILL POLICE DEPARTMENT'S

CALIFORNIA COMMISSION ON PEACE OFFICER STANDARDS AND

TRAINING MANAGEMENT STUDY
Recommendation:

Accept the report of Morgan Hill Police Department's California Commission on Peace Officer Standards and Training Management Study.

Police Chief Palsgrove provided a presentation and report.

December 17, 2025
9 Public comment opened at 7:53 p.m.

Doug Muirhead was called to speak.

With no further requests to speak, public comment closed.

Report received.

13. ADOPT PUBLIC ART MASTER PLAN
Recommendation:

Adopt the 2025 Public Art Master Plan.

Assistant City Manager Ramirez provided a presentation and report.

Public comment opened at 8:30 p.m. The following people were called to speak:

Nick Gaich
Rocke Garcia
With no further requests to speak, public comment closed.

MOTION:

Adopting the 2025 Public Art Master Plan.

RESULT: Passed
MOVER: Council Member Martinez Beltran
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

FUTURE COUNCIL INITIATED AGENDA ITEMS
Review of RFP language and process.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:56 p.m.

Minutes Prepared by:

Vicky Rossi, Deputy 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
Friday, January 16, 2026
12:00 p.m.

Community and Cultural Center
Madrone Room
17000 Monterey Road, Morgan Hill, CA 95037

SPECIAL MEETING
A Special Meeting was called for the purpose of conducting a closed session.

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 12:16 p.m.

ROLL CALL ATTENDANCE
City Attorney Larkin called the roll.

PRESENT Mark Turner, Marilyn Librers, Soraida Iwanaga, Yvonne Martinez Beltran, Miriam Vega
ABSENT None

DECLARATION OF POSTING AGENDA
City Attorney Larkin declared the posting of the agenda.

CLOSED SESSION
City Attorney Larkin announced the closed session items.

Public Employment (§ 54957)

January 16, 2026
2 Title: City Attorney
Conference with Legal Counsel – Existing Litigation (§ 54956.9) Name of Case: United States of America v. City of Morgan Hill; City of Petaluma Northern District, Case No. 5:26-CV-00056-BLF

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION
Public comment opened at 12:18 p.m.

Armando Benavides was called to speak.

With no further requests to speak, public comment closed.

ADJOURN TO CLOSED SESSION
The meeting adjourned to closed session at 12:21 p.m.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 4:58 p.m. with no reportable action on the closed session items.

Minutes Prepared by:

Michelle Bigelow, City Clerk

4 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Maria Angeles, Senior Civil Engineer
APPROVED BY: City Manager

APPROVE THE AMENDED AND RESTATED SUBDIVISION
IMPROVEMENTS AGREEMENT FOR WALNUT GROVE ESTATES –
TRACT NO. 10422 LOCATED ON THE SOUTHEAST CORNER OF THE
WALNUT GROVE DRIVE AND DIANA AVENUE INTERSECTION (APN:
726-07-090 - 726-07-098)

RECOMMENDATION(S)

1. Approve the Amended and Restated Subdivision Improvements Agreement for Walnut Grove Estates – Tract No. 10422;

2. Authorize the City Manager to execute the Amended and Restated Subdivision Improvements Agreement with Morgan Hill Mansions LLC (Subdivider); and

3. Authorize the recordation of the Amended and Restated Subdivision Improvements Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

Walnut Grove Estates - Tract No. 10422 is a nine-lot subdivision ("Project") located on the southeast corner of Walnut Grove Drive and Diana Avenue intersection as shown on the Site Map (Attachment 1). The Final Map for the Project was approved by the City Council on November 15, 2017, and the Final Map and original Subdivision Improvements Agreement were recorded on January 8, 2018.

The original owner and subdivider of the Project, Newland Homes, LLC, and the original builder, SiliconSage Builders, LLC, jointly executed the Subdivision Improvements Agreement (SIA) with the City that required the public improvements for the Project to be completed within eighteen (18) months from the date of the recording of the Final Map (no later than July 8, 2019). Due to project delays, the developer asked for and was granted on August 9, 2019 a six-month extension to the SIA by the City Manager,

4 through the execution of a first amendment to the SIA, as allowed by the terms of the original 2018 SIA. The first amendment to the SIA extended the completion date for the Project's public improvements to January 8, 2020.

The Project has changed hands multiple times since the recordation of the Final Map, which has contributed to further delays in completing the required public improvements. To date, the construction of the public improvements has yet to be started.

The current property owner, Morgan Hill Mansions LLC (new owner/subdivider) assumed ownership of the development on April 10, 2025). The new owner desires to enter into an amended Subdivision Improvements Agreement. An amended agreement is necessary for the new owner to proceed with the construction of the public improvements, and ultimately build out the residential lots.

Staff recommends that City Council approve the Amended and Restated Subdivision Improvements Agreement (Attachment 2) which sets the new owner's deadline to complete the public improvements for eighteen (18) months from the date of this City Council hearing (no later than July 28, 2027) to allow for the completion of the public improvements. The extension will also preserve the commitments made through the City's Residential Development Control System (RDCS) process which total approximately $191,000 in funding for school pedestrian safety and capital improvements.

The new owner has made provisions to provide the City with the required fees, security, and insurance prior to recordation of the Amended and Restated Subdivision Improvements Agreement.

COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community of the recommended Amended and Restated Subdivision Improvements Agreement for Walnut Grove Estates – Tract No. 10422.

ALTERNATIVE ACTIONS:

The City Council could conditionally approve the Amended and Restated Subdivision Improvements Agreement with modifications or new terms/conditions to be negotiated with the new owner. The City Council could also decide not to approve the Amended and Restated Subdivision Improvements Agreement. If the Amended and Restated Subdivision Improvements Agreement is not approved, staff will start the process of "reversion to acreage" and will obtain approval from the City Council to consolidate the lots/parcels into a single parcel and file a new map. This will result in the loss of the RDCS commitments from the project.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

4 November 15, 2017 – City Council approved the Final Map and authorized execution of the Subdivision Improvements Agreement by the City Manager for Walnut Grove Estates - Tract No. 10422.

FISCAL AND RESOURCE IMPACT:

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

CEQA (California Environmental Quality Act):

Project - Mitigated Negative Declaration was adopted on November 22, 2016 (Planning Commission Resolution No. 16-66).

RECORDING REQUESTED BY

WHEN RECORDED RETURN TO

CITY OF MORGAN HILL
City Clerk’s Office
17575 PEAK AVENUE
MORGAN HILL, CA 95037
(RECORD AT NO FEE PURSUANT TO
GOVERNMENT CODE SECTION 27383) THE AREA ABOVE IS RESERVED FOR RECORDER'S USE

AMENDED AND RESTATED SUBDIVISION IMPROVEMENTS AGREEMENT

MORGAN HILL MANSIONS LLC
WALNUT GROVE ESTATES – TRACT NO. 10422
This Amended and Restated Subdivision Improvements Agreement (“Agreement”) between the City of Morgan Hill, a municipal corporation (“City”), and Morgan Hill Mansions LLC, a California Limited Liability Company (“Subdivider”), is entered into this _____ day of ______________, 2026. City and Subdivider hereby acknowledge the following:

1. A Final Map for Tract No. 10422 was recorded on January 8, 2018 (“Final Map”) by Subdivider’s predecessor in interest for the subdivision known as Walnut Grove Estates (“Subdivision”).

2. City required, as part of the conditions of approval (“Conditions”) of the Final Map, that certain improvements be installed by Subdivider (“Improvements”) as shown on the City Engineer approved and signed Subdivision Improvement Plans entitled "Improvement Plans for Walnut Grove Estates, Tract No. 10422" (“Plans”).

3. Subdivider’s predecessor in interest entered into a Subdivision Improvements Agreement recorded on January 8, 2018 as document number 238844372, as amended on August 9, 2019 and recorded on August 22, 2019 as document number 24262132. This Agreement replaces and restates the original 2018 Subdivision Improvements Agreement, as amended.

4. Subdivider’s predecessor in interest was unable to complete, prior to filing of the Final Map, all of the Improvements required by City and failed to complete the Improvements after the recordation of the Final Map.

5. As the current owner of the Subdivision property, Subdivider desires to enter into this Agreement with the City to complete the Improvements.

6. Subdivider is required by the terms of the Morgan Hill Municipal Code (“Municipal Code”), to improve all streets, highways, or public areas which are part of the development, including but not limited to necessary paving, curbs, sidewalks, catch basins, water mains, culverts, storm drains, and sanitary sewers, in accordance with the plans and specifications on file with the City Engineer and to post certain securities to secure the completion of the Improvements.

7. To assure City that Subdivider will construct, install and complete all Improvements required for the Subdivision, the parties have entered into this Agreement.

8. This Agreement is executed pursuant to California Government Code Section 66410 et seq., and Chapter 17.32 of the Municipal Code in order to provide for the manner in which Improvements shall be constructed and completed.

NOW, THEREFORE, and in order to ensure satisfactory performance by Subdivider of Subdivider’s obligations under the Conditions, the Subdivision Map Act, and applicable ordinances of City, the parties hereto, for themselves, their successors, and assigns, hereby agree as follows:

Section 1. Incorporation by Reference
The Development Agreement between Subdivider and City, if applicable, the Conditions, the Final Map, all Plans as referenced in Section 2 below and all items submitted to the Planning Department, Planning Commission and City Council, all are incorporated herein by reference. In the event of any inconsistency between their representations in any incorporated documents and this Agreement, this Agreement shall govern.

Section 2. Construction of Improvements
(a) Subdivider shall construct, as provided for in the Conditions, the Improvements as shown fully executed in the Plans entitled “Improvement Plans for Walnut Grove Estates, Tract No. 10422” subject to the approval of City.
(b) Subdivider shall acquire and dedicate, or pay the cost of acquisition by City, of all rightsof-way, easements, and other interests in real property for the construction or installation of the Improvements, free and clear of all liens and encumbrances. (c) Survey Monumentation:
(1) Subdivider shall place survey monumentation as described on the Final Map. (2) Subdivider shall replace or repair all survey monumentation that is destroyed or damaged as a result of Subdivider’s activities. Any such repair or replacement shall be to the satisfaction and subject to the approval of City.
(d) Injury to Improvements, Public Property or Public Utilities Facilities. (1) Subdivider shall replace or have replaced, or repair or have repaired, as the case may be, all Improvements, public utilities facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any work under this Agreement. (2) Subdivider shall bear the entire cost of replacement or repairs of any and all public or public utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the State of California, or any agency or political subdivision thereof, or by City, or any public or private utility corporation, or by any combination of such

owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer.

Section 3. Modification of Plans
Subdivider agrees that, if during the construction of the Improvements, it is determined by City that revisions to the Plans are necessary in the interest of the public, Subdivider will undertake such design and construction changes required by City.

Section 4. Security
(a) Pursuant to California Government Code Section 66499.3(a), and the Municipal Code, Subdivider shall, concurrently with the execution hereof, furnish a surety bond in an amount equal to one hundred percent (100%) of the estimated construction cost of the Improvements as security guaranteeing the faithful performance of the Improvements and this Agreement (“Performance Bond”).

Improvements and the City Engineer’s Estimated Costs of Improvements as of September 4, 2025 are attached hereto as Exhibit “A”.

The Performance Bond shall be in a form substantially the same as Exhibit “B”. (b) Pursuant to California Government Code Section 66499.3(b), Subdivider shall, concurrently with the execution hereof, furnish a surety bond in an amount equal to one hundred percent (100%) of the estimated construction cost of the Improvements (as listed in Section 4(a) above) as security guaranteeing the payment to the contractors, subcontractors and persons furnishing labor, materials, or equipment in connection with this Agreement (“Labor and Materials Bond”). The Labor and Materials Bond shall be in a form substantially the same as Exhibit “C”. (c) Subdivider shall, upon completion of the Improvements, furnish a surety bond in an amount equal to fifty percent (50%) of the construction cost of the Improvements to secure the guarantee and warranty of the work for a period of one year following the completion and acceptance thereof by the City Council ("Warranty Period") against any defective work or labor performed, or defective materials furnished by Subdivider in connection with this Agreement (“Warranty Bond”). The Warranty Bond shall be in a form substantially the same as Exhibit “D”.
(d) Pursuant to Government Code Section 66499.9, any liability upon the security given for faithful performance of any act or agreement shall be limited to:
(1) The performance of the work covered by the Agreement or the performance of the required act.
(2) The performance of any changes or alterations in such work; provided that all changes or alterations do not exceed ten percent of the original estimated cost of the Improvements. (3) The guarantee and warranty of the work for a period of one year following completion and acceptance thereof, against any defective work or labor done or defective materials furnished in the performance of the Agreement or the performance of the act.

(4) Costs and reasonable expenses and fees, including reasonable attorneys’ fees. (e) The surety on each bond and the form thereof shall be satisfactory to City. The surety shall be furnished by a surety company authorized to write the same in the State of California and that is approved and accepted by the City’s risk manager.
(f) Subdivider agrees to furnish any bonds required by the State or County for Improvements outside the City’s jurisdiction.
(g) The release of any securities shall be governed by the provisions of Government Code Section 66499.7.

Section 5. Inspections
At least fifteen (15) calendar days prior to the commencement of any work hereunder, Subdivider shall notify City in writing of the fixed start date of construction so that City shall be able to provide inspection services. Subdivider shall at all times maintain proper facilities and provide safe access to all parts of the work site(s) for City inspections, including any workshops or plants where work related to the Improvements is being conducted.

Subdivider shall pay and reimburse City for all expenses incurred by City for inspecting and checking all work to be performed under the provisions of the Municipal Code or this Agreement. City Engineering plan checking and field improvement inspection costs are included in the Department of Public Works Fee Schedule which may be revised from time to time.

Upon completion of the work, the Subdivider’s Engineer shall file original sealed "as-built" plans with City Engineer and shall submit a sealed letter to City Engineer certifying that Subdivider's Engineer has inspected the Improvements throughout construction and that said Improvements are completed in conformance with the Improvement Plans and in accordance with this Agreement.

Section 6. Timing of Performance
Subdivider agrees to perform and complete all Improvements within eighteen (18) months from the date of the City Council approval of this Agreement; provided however, the City Manager may extend the deadline for completion by not more than six (6) months at his or her reasonable discretion and determination that granting the extension will not be detrimental to the public welfare. No extension of this deadline for completion shall be made except upon the basis of a written application made by Subdivider stating fully the ground for the application and the facts relied upon for an extension.

It is further agreed by and between Subdivider and City that any extension granted shall in no way affect the validity of this Agreement or release the surety(ies) on any bond attached hereto or the financial institution guaranteeing the same. Subdivider further agrees to maintain the securities described in Section 4 above in full force and effect during the terms of this Agreement, including any extensions of time as may be granted, and until such time as the Improvements have been accepted for maintenance by City.

Section 7. Work Performance and Warranty
(a) Subdivider shall construct, at Subdivider’s own expense, all of the Improvements in a good and workmanlike manner, and furnish all required materials incident thereto, in accordance with the Plans and to the satisfaction of City, including any changes required by City which in City’s opinion are necessary to complete the Improvements.
(b) All work shall be conducted and completed in accordance with the Plans and federal, state, Municipal Code, laws, ordinances, and regulations. For any Improvements partially completed prior to this Agreement, Subdivider agrees to complete the Improvements in accordance with this Agreement. (c) Neither Subdivider, nor any of Subdivider’s agents or contractors in connection with Subdivider’s obligations under this Agreement are, or shall be considered to be, employees or agents of City.
(d) The work performance for the Improvements shall not be deemed complete until such time as such Improvements have been accepted for maintenance by the City Council. (e) Subdivider warrants that: (1) it has investigated the work to be performed under this agreement, (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should Subdivider discover any conditions materially differing from those inherent in the Improvements or work or as represented by City, it shall immediately inform City and shall not proceed, except at Subdivider’s risk, until written instructions are received from City.
(f) Subdivider guarantees and warrants the work required by this Agreement and agrees to remedy any defects in the Improvements or work arising from faulty or defective materials or construction occurring within one year after its acceptance. Following notice, Subdivider shall, without delay or cost to City, repair, replace, or construct any defective or unsatisfactory portion of the Improvements. City may, at its sole option, perform the repair or replacement itself if Subdivider or its surety has failed to commence repair within twenty (20) days after City has mailed written notice to Subdivider. In such event, Subdivider or its surety agrees to pay the cost of repair and replacement to City, plus fifteen percent (15%); and City may recover such costs as a lien against the Subdivision. City may proceed immediately to make repairs should an emergency arise.

Section 8. Acquisition and Dedication of Easements or Rights-of-Way (a) No construction or installation of the Improvements shall be commenced before:
(1) The offer of dedication to City of appropriate rights-of-way, easements, or other interests in real property for the Improvements, which offer of dedication shall be irrevocable and remain open pursuant to California Government Code Section 66477.2, and authorization from the property owner to allow construction or installation of Improvements, or (2) The dedication to, and acceptance by, City of appropriate rights-of-way, easements, or other interests in real property, as determined by the City Engineer, or

(3) The issuance by a court of competent jurisdiction pursuant to state Eminent Domain Law of an order of possession.
(b) Except as otherwise provided by this Agreement, City rejects all lands, rights-of-way, and easements offered for dedication on the Final Map of the Subdivision. All such offers shall, however, remain open, and shall constitute irrevocable offers of dedication in accordance with Government Code Section 66477.2. All such offers may be accepted by City in its sole discretion at any later date without further notice to Subdivider as provided by law. By way of explanation only, it is the current intention of City to accept all or part of the irrevocable offers to dedicate upon acceptance of the Improvements called for in this Agreement.
(c) Nothing in this Section 8 shall be construed as authorizing or granting an extension of time to Subdivider.

Section 9. Indemnity
Subdivider hereby agrees to save harmless and indemnify, including, without limitation, City’s defense costs (including reasonable attorney’s fees), from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of any injuries or damages sustained by any person or property resulting or arising, or alleged to have resulted or arisen, from Subdivider or Subdivider’s contractors, subcontractors, agents, or employees activities, omissions or operations pursuant to this Agreement. Should City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, Subdivider will defend City, (at City’s request and with counsel satisfactory to City) and will indemnify City for any judgment rendered against it or any sums paid out in settlement or otherwise.

Subdivider shall defend, indemnify, and hold harmless the City and its elective and appointive boards, officials, officers, agents, employees and volunteers from any claim, action, or proceeding to review, set aside, void, or annul an approval of the City concerning the Final Map and acts made in respect thereof, provided any such action is brought within the time period provided for in California Government Code Section 66499.37.

City shall promptly notify Subdivider of any claim, action, or proceeding, and cooperate fully in the defense of any claim, action, or proceeding.

It is expressly understood and agreed that this Section 9 will survive termination of this Agreement.

Section 10. Insurance
Concurrent with the execution of this Agreement, Subdivider is required to procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of Subdivider and its Subcontractors relating to or arising from the performance of work associated with the Improvements, and must remain in full force and effect at all times during the period covered by the Agreement, including any extensions of time as may be granted, and until such time as the Improvements have been accepted for maintenance by the City. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or “umbrella” policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and

approved by City. If the Subdivider will utilize the services of a General Contractor to perform all of the work associated with the Improvements, then Subdivider may opt to have all coverages provided by Subdivider’s General Contractor, provided that a written contract is executed between Subdivider and the General Contractor whereby the written contract specifically required General Contractor to fulfill all of the City insurance requirements as outlined in this Agreement, including all endorsements in favor of the City. Verification of the written contract must be provided to City upon request. If Subdivider fails to provide any of the required coverage in full compliance with the requirements outlined in this Agreement City shall issue a stop work order, or terminate the Agreement for default. Subdivider further understands that the City reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to Subdivider, at any time as deemed necessary to protect the interests of the City. (a) Policies and Limits. The following insurance policies and limits are required for this Agreement:
(1) Commercial General Liability Insurance (“CGL”): Subdivider shall maintain CGL and shall include coverage for liability arising from Subdivider’s or its Subcontractor’s acts or omissions in the performance of work associated with the Improvements against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) five million dollars ($5,000,000.00) combined single limit each occurrence and either a general aggregate limit of ten million dollars ($10,000,000.00) or a general aggregate limit of five million dollars ($5,000,000) as applied on a “per project” or “per location” basis, or (ii) the maximum amount of such insurance available to Subdivider under Subdivider’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. Further, if CGL coverage is being provided by Subdivider’s General Contractor pursuant to Section 10, General Contractor may elect to insure the CGL exposures under an “Owners and Contractors Protective Liability Policy (OCP)” on which the City is included as an additional insured. a. CGL policy may not exclude explosion, collapse, underground excavation hazard, or removal of lateral support.
b. CGL policy must include blanket contractual and completed operations. c. CGL policy will apply as though separate policies have been issued to each insured (“separation of insureds”).
(2) Workers’ Compensation Insurance and Employer’s Liability: Subdivider shall maintain Workers Compensation coverage, as required by law. The policy must comply with the requirements of the California Workers’ Compensation Insurance and Safety Act and provide protection in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to Subdivider under Subdivider’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If Subdivider is self-insured, Subdivider must provide its Certificate of Permission to Self-Insure, duly authorized by the State of California Department of Industrial Relations.
(3) Automobile Liability: Subdivider shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if Subdivider does not own automobiles, then

Subdivider shall maintain Hired/Non-owned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit, or (ii) the maximum amount of such insurance available to Subdivider under Subdivider’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
(4) Pollution (Environmental) Liability: The performance of Subdivider’s work or service under this Agreement involves handling of hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials. Subdivider shall procure and maintain Pollution Liability covering the Subdivider's liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to Subdivider under Subdivider’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
(b) Required Endorsements. Subdivider shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below. Further, if coverages are being provided by Subdivider’s General Contractor pursuant to Section 10, endorsements may not be restricted to work performed “under a written contract” (i.e. “blanket endorsements”) (1) ALL Policies:
“Waiver of Subrogation” - Each required policy must include an endorsement providing that the carrier agrees to waive any right of subrogation it may have against the City of Morgan Hill and the City’s elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.
(2) ALL Policies except Workers Compensation:
a. “Additionally Insured” - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations and at least as broad as ISO Form CG 20 37 for completed operations.

b. “Primary and Non-Contributing” - Insurance shall be endorsed to be primary and non-contributory and will not seek contribution from the City’s insurance or selfinsurance and shall be at least as broad as ISO Form CG 20 01. (c) Subcontractors. Subdivider must ensure that each Subcontractor is required to maintain the same insurance coverage required under this Section 10 as appropriate based on each subcontractor’s scope of work, with respect to its performance of work associated with the Improvements, including those requirements related to the additional insureds and waiver of subrogation.

(d) Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M. Best's financial strength rating of “A” or better and a financial size rating of “VIII” or better. (e) Certificates. Subdivider shall furnish City with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, Subdivider shall promptly furnish City of Morgan Hill with copies of all policies outlined herein. No policy subject to the Subdivider’s agreement with the City shall be reduced, canceled, allowed to expire, or materially changed except after thirty (30) days' notice by the insurer to City, unless due to non-payment of premiums, in which case ten (10) days written notice must be made to City. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.

Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037
Section 11. Permits and Requisite Fees
(a) Subdivider shall pay all current fee obligations in the total amount of $793,752.34 due under City Resolution No. 5592, as amended, in accordance with the Department of Public Works Fee Schedule, as follows:
(1) $176,388.34 payable prior to approval of this Agreement, and (2) $617,364.00 payable on a pro-rata basis for each individual lot in the Subdivision prior to final inspection of each and every residence.
(3) All fees payable pursuant to this Subsection (a) constitutes valid and due consideration for City’s approval of the Final Map, and amounts set forth are estimates that are subject to change prior to the issuance of building permit(s), subject to resolution or ordinance of the City Council.

(b) Subdivider shall, at its expense, obtain all necessary permits and licenses for the construction of the Improvements, give all necessary notices, and pay all fees and taxes required by law. (c) Subdivider shall obtain a City of Morgan Hill Business License. (d) Subdivider agrees to procure, at its expense, any necessary permits for Improvements outside the City’s jurisdiction.

Section 12. On-Site Supervision
Subdivider shall designate an on-site supervisor, satisfactory to City, who shall be on the work site(s) at all times during the construction of the Improvements, and who has the authority to act on behalf of Subdivider when communicating with City personnel.

Section 13. Waiver
Waiver by City or Subdivider of any breach of any of the provisions of the Agreement shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of the same or any other provision of this Agreement. Acceptance by City of any work by Subdivider shall not be a waiver of any of the provisions of this Agreement.

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

Anoop Hegde
Morgan Hill Mansions LLC
1016 S. De Anza Blvd #E106
San Jose CA 95129

b. Address of City is as follows:

City Engineer
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
With a copy to:

City Clerk
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
Section 15. Noncompliance
If City determines that Subdivider is in violation of any federal, state, County or City laws, ordinances, rules, regulations, and requirements, and/or the terms and provisions of this Agreement, it may issue a cease and desist order, stop work order, or other action City deems necessary.

Section 16. Notice of Breach and/or Default
City may serve written notice upon Subdivider and surety of breach of this Agreement or of any portion thereof, and default of Subdivider for any of the following circumstances:
(a) Subdivider refuses or fails to complete the Improvements as required in Section 6 above. (b) Subdivider refuses or fails to perform or cure any defects in the Improvements as required in Section 7.

(c) Subdivider is insolvent, is subject to a receivership, or files any petition in bankruptcy, either voluntary or involuntary which Subdivider fails to discharge within thirty (30) days. (d) The commencement of a foreclosure action against the Subdivision or any portion thereof, or any conveyance in lieu of or in avoidance of foreclosure. (e) Subdivider or any of Subdivider’s contractors, subcontractors, agent, or employees materially violates any of the provisions of this Agreement and not cure the violation within a reasonable time.

Section 17. Performance by Surety or City
(a) In the event of a material breach and/or default by Subdivider, Subdivider’s surety shall have the duty to take over and complete the Improvements. (b) If the surety, within a reasonable time after receiving notice of Subdivider’s default does not provide City written notice to take over the performance of this Agreement or if the surety does not commence performance thereof within the time specified in such notice to City, City may take over the construction of the Improvements and prosecute the same to completion, by contract or by any method City may deem advisable, on behalf and at the expense of Subdivider, and Subdivider’s surety shall be liable to City for any excess cost or damages incurred by City thereby. In such event, City, without liability for so doing, may take possession of and utilize such materials, appliances, and other property belonging to Subdivider as may be on the work site(s) and necessary therefore to complete the Improvements. (c) City shall have the right to draw upon or utilize the appropriate security provided for in Section 4 to recover costs and damages to City damages. The right of City to draw upon or utilize the security is additional and not in lieu of any other remedy available to City at law or in equity. The parties agree that the estimated costs and security amounts may not reflect the actual cost of construction or installation of Improvements, and therefore, City damages for Subdivider’s default shall be measured by the cost of completing the required Improvements.
(d) Failure of Subdivider to comply with terms of this Agreement shall constitute consent to filing by City of a notice of violation against all lots in the Subdivision, or to rescind the approval or otherwise revert the Subdivision to acreage. The remedies provided in this Subsection (d) are in addition to and not in lieu of other remedies available to City. (e) In the event that Subdivider fails to perform any obligation under this Agreement, Subdivider agrees to pay all costs and expenses incurred by City in securing performance of such obligation, including the costs of suit and reasonable attorney’s fees. (f) The failure by City to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or subsequent default or breach.

Section 18. Successors in Interest
This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the parties.

It shall be recorded in the Office of the Recorder of Santa Clara County concurrently with the Final Map of the Subdivision and shall constitute a covenant running with the land and an equitable servitude upon

the real property within the Subdivision. It shall be the responsibility of City to cause the executed Agreement to be recorded. Sale of all or part of the lands of the underlying Subdivision shall not serve to transfer the obligations of the Subdivider under this Agreement. All obligations under this Agreement attach to Subdivider until all obligations of Subdivider are fulfilled or transferred by substitution of replacement agreement and replacement securities acceptable to City.

Section 19. Effective Date
This Agreement shall be effective as of the date and year first above written.

Section 20. Amendment of Agreement
This Agreement may only be amended by mutual consent of the original parties or their successors in interest, provided that any such amendment is executed in writing by the parties to be bound thereby.

Section 21. Execution
By signing this Agreement, the person signing states that he or she is authorized to enter into contracts on behalf of Subdivider. The undersigned, on behalf of Subdivider, binds Subdivider, its partners, successors, executors, administrators, and assigns with respect to the terms and conditions of this Agreement.

Section 22. 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.

Section 23. Law to Govern: Venue
The law of the State of California shall govern this Agreement. In the event of litigation between the parties, the action must be filed in the Santa Clara County Superior Court.

Section 24. Limitations Upon Subcontracting and Assignment.

Neither this Agreement or any portion shall be assigned by Subdivider without prior written consent of City. Subdivider shall provide City with written notice of any assignment or transfer of all or a portion of the Subdivision property no later than thirty calendar days prior to such action. The notice shall indicate the portion of the Subdivision to be assigned and describe, with supporting evidence, the proposed assignee's reputation, experience, financial resources and access to credit, and capability to successfully carry out the development of the Improvements to completion.

Section 25. Miscellaneous
(a) Compliance with Law: Subdivider shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government. (b) Non-Discrimination. Subdivider covenants there shall be no discrimination based upon race, color, creed, religion, gender, marital status, age, disability, national origin, ancestry, or sexual orientation in any activity pursuant to this Agreement. (c) Conflict of Interest and Reporting. Subdivider shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

(d) Time of Essence. Time is of the essence in the performance of this Agreement. (e) Interpretation. This Agreement shall be interpreted as though prepared by both parties. (f) 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.
(g) Negotiated Document. It is agreed and understood by the parties hereto, that this Agreement has been arrived at through negotiations and that neither party is deemed to be the party which prepared the Agreement within the meaning of Civil Code Section 1654.

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.]

CITY OF MORGAN HILL
By:
______________________________
Christina J. Turner, City Manager
Date: ____________________
"Subdivider"
Morgan Hill Mansions LLC, a
California Limited Liability
Company
By:
__________________________
ATTEST: Print Name and Title
By: (If Corporation, must be Chairperson of the
______________________________ Board, President, or Vice President) Michelle Bigelow, City Clerk
Date: ___________________
Date: _____________________
By:

APPROVED AS TO FORM: _____________________________
By: Print Name and Title
_____________________________ (If Corporation, must be Secretary, Assistant Donald A. Larkin, City Attorney Secretary, CFO, or Assistant Treasurer)

Date: _____________________ Date: _____________________

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)

EXHIBIT “A”

IMPROVEMENTS AND

ESTIMATED COSTS OF IMPROVEMENTS
AS OF SEPTEMBER 4, 2025
Quantity Unit Unit Price Total Cost
Schedule III - Onsite Streets & Earthwork (Public)
1 Existing curb and gutter removal 626 LF 16.00 $ 10,016.00 $ 2 Existing pavement removal 14210 SF 1.00 $ 14,210.00 $ 3 Existing sidewalk removal 935 SF 4.00 $ 3,740.00 $
4 Existing street light relocation 1 LS 4,000.00 $ 4,000.00 $ 5 Existing water service removal 1 LS 1,500.00 $ 1,500.00 $ 6 Existing drop inlet and 12" SD removal 1 LS 1,500.00 $ 1,500.00 $ 7 Existing curb inlet and 15" SD removal 1 LS 1,500.00 $ 1,500.00 $ 8 Street finish grading 36410 SF 1.00 $ 36,410.00 $
9 Sawcut existing pavement 698 LF 2.00 $ 1,396.00 $
10 AC pavement (4" AC on 12" AB) 26354 SF 10.00 $ 263,540.00 $ 11 City std curb and gutter 1491 LF 27.00 $ 40,257.00 $ 12 City std. valley gutter 41 LF 20.00 $ 820.00 $
13 Min 2" AC grind and overlay 3710 SF 5.40 $ 20,034.00 $ 14 City std street monument 2 EA 1,000.00 $ 2,000.00 $
15 Sidewalk incl. driveway approaches 6046 SF 20.00 $ 120,920.00 $ 16 Signing & striping 1 LS 6,000.00 $ 6,000.00 $
17 City std. electroliers 6 EA 6,225.00 $ 37,350.00 $
18 Stop signs and legend 1 EA 1,500.00 $ 1,500.00 $
Schedule IV - Water Improvements (Public)
1 8" water (DIP - class 50) 757 LF 150.00 $ 113,550.00 $ 2 City std. fire hydrants 1 EA 7,500.00 $ 7,500.00 $
3 1" water services 12 EA 1,800.00 $ 21,600.00 $
4 1 1/2" irrigation service w/RPBP 1 EA 2,600.00 $ 2,600.00 $ 5 Blow off valves 1 EA 3,000.00 $ 3,000.00 $
Schedule V - Sewer Improvements (Public)
1 8" sewer PVC (SDR-26) 520 LF 60.00 $ 31,200.00 $
2 City std. manholes 2 EA 10,000.00 $ 20,000.00 $
3 4" sewer laterals 9 EA 1,000.00 $ 9,000.00 $
Schedule VI - Drainage (Public)
1 15" RCP storm 210 LF 150.00 $ 31,500.00 $
2 City std curb inlet 5 EA 5,500.00 $ 27,500.00 $
3 City std storm manhole 1 EA 7,000.00 $ 7,000.00 $
4 36"x36" DI 1 EA 3,000.00 $ 3,000.00 $
Subtotal 844,143.00 $
10% Contigency 84,414.30 $
Total 928,557.30 $

Performance Bond Page 1 of 4
Version July 2017
EXHIBIT “B”

PERFORMANCE BOND
(100% of Engineer’s Estimate)
Bond No.:

Premium:

Whereas, the City Council of the City of Morgan Hill, State of California, and Morgan Hill Mansions LLC (hereinafter designated as "principal") have entered into an Amended and Restated Subdivision Improvements Agreement:

MORGAN HILL MANSIONS LLC
WALNUT GROVE ESTATES – TRACT NO. 10422
whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated ___________________, 2025, and identified as project Walnut Grove Estates – Tract No. 10422, is hereby referred to and made a part hereof; and Whereas, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement.

Now, therefore, we, the principal and _____________________________________________, as surety, are held and firmly bound unto the City of Morgan Hill hereinafter called ("City"), in the penal sum of Nine Hundred Twenty Eight Thousand Five Hundred Fifty Seven dollars ($928,557) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The Surety's office is located at_________________________, Telephone No.____________; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone number are as follows:

License No.:

Address:

Telephone No.: .

The non-resident agent for the Surety, if any, is a party to the transaction:

Name of non-resident agent:

Performance Bond Page 2 of 4
Version July 2017
Non-resident agent's office address:

Telephone No.:

The condition of this obligation is such that if the above bounded principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.

Executed this day of 20 .
[form document – do not execute] [form document – do not execute] Principal Principal
By: [form document – do not execute]
Surety
By: [form document – do not execute]
Attorney-in Fact

Performance Bond Page 3 of 4
Version July 2017
By: [form document – do not execute]
California Resident Agent
By: [form document – do not execute]
Non-resident Agent - Attorney-in-Fact
APPROVED:
[form document – do not execute]
Scott Creer, City Engineer
Date:

APPROVED AS TO FORM:

By: [form document – do not execute]
Donald A. Larkin, City Attorney
Date:
(Acknowledgment on following page.)

Performance Bond Page 4 of 4
Version July 2017
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)

Labor and Material Bond Page 1 of 4
Version 2017
EXHIBIT “C”

LABOR AND MATERIAL BOND
(100% of Engineer’s Estimate)
Bond No.:

Premium:

Whereas, the City Council of the City of Morgan Hill, State of California, and Morgan Hill Mansions LLC (hereinafter designated as "the principal") have entered into an Amended and Restated Subdivision Improvements Agreement:

MORGAN HILL MANSIONS LLC
WALNUT GROVE ESTATES – TRACT NO. 10422
whereby the principal agrees to install and complete certain designated public improvements, which agreement, dated ___________________, 2025, and identified as project Walnut Grove Estates – Tract No. 10422, is hereby referred to and made a part hereof; and Whereas, under the terms of the agreement, the principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Morgan Hill to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California.

Now, therefore, the principal and the undersigned as corporate surety, and their successors and assigns are held firmly bound unto the City of Morgan Hill and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of Nine Hundred Twenty Eight Thousand Five Hundred Fifty Seven dollars ($928,557), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City of Morgan Hill in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Labor and Material Bond Page 2 of 4
Version 2017
Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety's office is located at _________________________, Telephone No. __________; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone number as follows:

License No.:

Address:

Telephone No.: .

The following non-resident agent, if any, for the Surety is a party to the transaction:

Name of non-resident
agent: ,
Non-resident agent's office
address:

Telephone No.: .

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

Executed this day of 20 .
[form document – do not execute] [form document – do not execute] Principal Principal
By: [form document – do not execute]
Surety

Labor and Material Bond Page 3 of 4
Version 2017
By: [form document – do not execute]
Attorney-in Fact
By: [form document – do not execute]
California Resident Agent
By: [form document – do not execute]
Non-resident Agent - Attorney-in-Fact
APPROVED:
[form document – do not execute]
Scott Creer, City Engineer
Date:

APPROVED AS TO FORM:

By: [form document – do not execute]
Donald A. Larkin, City Attorney
Date:
(Acknowledgment on following page.)

Labor and Material Bond Page 4 of 4
Version 2017
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Santa Clara
On 20____, before me, a Notary Public in and for
said County and State, personally appeared
proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE OF NOTARY PUBLIC
(ABOVE AREA FOR NOTARY SEAL)

Warranty Bond Page 1 of 4
Version July 2017
EXHIBIT “D”

WARRANTY BOND
(50% of Cost of Construction)
Bond No.:

Premium:

Whereas, the City Council of the City of Morgan Hill, State of California (hereinafter designated as “City”), and Morgan Hill Mansions LLC (hereinafter designated as “Principal”) have entered into an Amended and Restated Subdivision Improvements Agreement (hereinafter “Agreement”):

MORGAN HILL MANSIONS LLC
WALNUT GROVE ESTATES – TRACT NO. 10422
whereby the Principal agrees to install and complete certain designated public improvements (hereinafter “Improvements”), which said Agreement, dated ___________________, 2025, and identified as project Walnut Grove Estates – Tract No. 10422, is hereby referred to and made a part hereof; and
Whereas, under the terms of said Agreement, the Principal is required to furnish a bond to guarantee and warrant the work required by said Agreement for a period of one year following the completion and acceptance by the City of the Improvements, against any defective work or labor performed, or defective materials furnished by Principal.

Now, therefore, we, the Principal and _________________________ as Surety, are held and firmly bound unto the City of Morgan Hill in the penal sum of Four Hundred Sixty Four Thousand Two Hundred Seventy Nine dollars ($464,279) for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

If Principal faithfully carries out and performs its guarantee and warranty under the Agreement, and, on due notice from City, repairs and make good at its sole expense any and all defects in materials and workmanship in the Project which are discovered during the Warranty Period, or if Principal promptly reimburses City for all loss and damage that City sustains because of Principal’s failure to makes such repairs in accordance with the Agreement requirements, then Surety’s obligations under this Bond will be null and void. Otherwise, Surety’s obligations will remain in full force and effect.

Surety waives the provisions of Civil Code Sections 2819 and 2845. Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement

5 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

APPROVE FIRST AMENDMENT TO MAINTENANCE SERVICE
AGREEMENT WITH MJR ELECTRIC, INC. TO INCREASE THE NOT TO EXCEED AMOUNT BY $160,000 FOR A TOTAL AGREEMENT AMOUNT
OF $260,000 FOR ON-CALL ELECTRICAL MAINTENANCE AND

REPAIRS AT CITY FACILITIES

RECOMMENDATION(S)

1. Approve the First Amendment to the Maintenance Service Agreement with MJR Electric, Inc. for $160,000 for a total agreement amount of $260,000; and

2. Authorize the City Manager to execute and administer the First Amendment to the Maintenance Service Agreement with MJR Electric, Inc.

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

The purpose of this report is to provide the City Council with an opportunity to consider a First Amendment to the City's Maintenance Service Agreement with MJR Electric, Inc. for on-call electrical maintenance and repair services. The First Amendment will increase the total amount of the agreement by $160,000 from $100,000 to $260,000.

The City has utilized MJR Electric's existing on-call agreement for several building maintenance renovations and repairs, including the conversion of the City Hall lobby to office space, the Council Chamber audiovisual upgrades, and the Police Department's downtown camera installation. City staff utilized MJR Electric over other electrical contractors because of their routinely lower pricing.

The City has contracted for electrical maintenance and repair services for many years on an on-call, as-needed basis, as the City does not have the staffing resources to perform the work internally. The original amount of MJR Electric's agreement was $100,000 for a two-year term from July 1, 2024, to June 30, 2026. There is currently a

5 balance of approximately $30,000 remaining on the agreement. This First Amendment will add $160,000 to the agreement to be used for energy-efficient lighting replacements to achieve cost savings, grant-funded electric vehicle charging station installation, and other as-needed on-call work. The revised total amount of the agreement will be $260,000.

COMMUNITY ENGAGEMENT:

Not Applicable
Contract electrical repairs are a routine maintenance component of operating the City's facilities, and, as such, no engagement on this contract amendment was undertaken.

ALTERNATIVE ACTIONS:

The City Council could decline to approve the amendment, but this is not recommended because this would limit the City's options when repairs and other work are needed.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council awarded the original agreement to MJR Electric, Inc. on May 15, 2024.

The original agreement was awarded through a competitive Request for Proposals (RFP) process conducted in March 2024.

FISCAL AND RESOURCE IMPACT:

The $160,000 contract amendment will be funded within various areas of facility maintenance in Fund 741 Building Replacement, General Fund 010, and Building Maintenance Fund 740 to support various city buildings. No additional appropriation is needed to support this contract amendment.

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 alterations of existing City facilities involving negligible or no expansion of use of those facilities.

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226

MAINTENANCE SERVICE AGREEMENT
MJR Electric, Inc.

IS AGREEMENT is entered into and becomes effective on 512212024 (Effective
Date), b and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and MJR Electric, I c. }
1 California\ corporation ("SERVICE PROVIDER") hereinafter referred to collectively as "Parties." In onsideration of the promises and the mutual covenants contained in this Agreement, the Parties a ree s follows:

J. Ci Y �uthorit,Y. This Agreement is entered into pursuant to the action of the Morgan Hill City Council�\
on May, 15, 2024.

2. T Jrm of A reement. This Agreement shall cover services rendered from the Effective Date of this Agre men un I une , 2026 at which time SERVICE PROVIDER'S services shall be completed.

The City an�ger is authorized to extend the term of this Agreement for a maximum of three one-year extension . A I y such extension shall be in writing and signed by both Parties to this Agreement.

3. electrical

4. C

4.1. 4.2
pe of Service. The services to be performed by SERVICE PROVIDER shall be on-call aintenance and repair services as further described in Exhibit A. �nsation. SERVICE PROVIDER shall be compensated as follows:

Amount. $100,000.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed OneHundred Thousand dollars and shall be billed based on the rate and basis set forth in Exl;libit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that �
xtended term period, so long as City Council has appropriated sufficient funds therefor, (
he Parties mutually agree to such amount in a writing signed by both Parties to this i'\greement and provided further that in no event shall such maximum compensation allowed for each subsequent extended one-year term exceed 105% of the maximum bompensation allowed to be paid to SERVICE PROVIDER for one year of service during f
he immediately preceding prior year of service.

I
Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if �uch expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a tnonthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section fl 4 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of �eceipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the fnonth). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY'S judgment 1,vere necessary and reasonable. Services for work performed and expenses incurred in Erxcess of the total compensation set forth in paragraph 4.1 above shall be at no cost to -ITY.
1 Updated: May 2023
EXHIBIT 1

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 I

5. T rmi ation. Cl"liY or SERVICE PROVIDER shall have the right to terminate this Agreement, without c us91
, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such terminati n, 8iERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which co�
pensation \has not been paid. CITY may require SERVICE PROVIDER to complete certain w rk Aroduct or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possessi n wthout additipnal compensation to SERVICE PROVIDER. The City Manager is authorized to termin te ttitis Agreement, in whole or in part, on behalf of CITY. I 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 thi� Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.

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

CITY shall provide a 5-days' written notice or less under urgent circumstances to tenworarily suspend services at specific CITY facilities. CITY reserves the right to request which CITY facilities are to be serviced or not serviced due to unforeseeable or unavoidable circumstances; and the level of service at each CITY facility. Upon suspension, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid up to the date of the suspensiof No further payments will be made for services provided after the date of he suspension. CITY shall provide 5 days' written notice when the circumstances for he suspen
1 \
sion of specific facilities' services are removed for SERVICE PROVIDER to commence providing services.

6. Pe or . ance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experienc , tr,ining, education, and expertise to accomplish these services. Services shall be performed by • ERVICE PROVIDER in accordance with professional practices in a manner consistent with a lev I of are, competence and skill exercised by qualified members of SERVICE PROVIDER'S profession By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requir ments 1
of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDE is iable for aty property damage caused by SERVICE PROVIDER or its Subcontractors during pe orn,ance of th1
e services and shall notify the CITY of damage within 24 hours of the occurrenc . S�RVICE P!OVIDER must promptly repair or replace any real or personal property damage, a d must promptly restore the property to its original or intended condition. CITY may repair or replace he eal or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repair or replacemeht may be deducted or offset from any compensation due to SERVICE

PROVIDE

6.1 , chedule. $ERVICE PROVIDER shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of P�rformance," : attached hereto and incorporated herein by this reference. The City �anager is1 authorized on behalf of CITY to modify the timeframes set forth on the : chedule o� Performance within the term of this Agreement. 2 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC4B4226 I

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

7. H zar, ous Materials. Without limiting any other requirement or obligation of SERVICE PROVID R u�
1 der this Agreement, if SERVICE PROVIDER needs to use any material or chemical considere to be a hazardous material under any federal, state, or local law, regulation or policy, SERVICE PR, VIDER agrees to fully and timely abide by and comply with all laws, regulations and policies p rtai�
ing to the use, transport, removal, handling, disposal, or other activity related to any and all such ateqials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDE re sonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this grl
ement, together with the reasonably anticipated quantities thereof, if requested by CITY.

8. In ura. ce Re uirements. SERVICE PROVIDER shall procure and provide proof of the insurance ov rage required by this section in the form of certificates and endorsements. The required insurance us1 cover the activities of SERVICE PROVIDER, including its subcontractors, employees, and agent , re ating to, or arising from, the performance of any work or service under this Agreement, and must emain in full force and effect at all times during the period covered by this Agreement. The coverages ma� be arranged under a single policy for the full limits required or by a combination of underlying polipies with the balance provided by excess or "umbrella" policies, provided each such policy com lie� with the requirements set forth herein. Any deductibles or self-insured retentions must be declare to and approved by City. SERVICE PROVIDER further understands that CITY reserves the right to m dity\ the insurance requirements set forth herein, with thirty (30) days' notice provided to

SERVICE ROI
VIDER, at any time as deemed necessary to protect the interests of CITY.

8.1 nsurance Types and Amounts. I
, .1.1.

I
.1.2.

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

Automobile Liability. SERVICE PROVIDER shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if SERVICE PROVIDER does not own automobiles, then SERVICE PROVIDER shall maintain Hired/Nonowned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater. 3 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC4B4226 I

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

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

8.1.5. Professional Liability.

8.1.5.1. If the performance of SERVICE PROVIDER'S work or service under this \ Agreement involves professional and/or technical services ( examples include, but are not limited to, architects, engineers, land surveyors, and app�aisers), SERVICE PROVIDER shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum am9unt of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amo1
unt of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" poli9ies), whichever is greater. Further, if SERVICE PROVIDER maintains a clai�s-made policy, SERVICE PROVIDER shall provide written evidence of such insu�ance to CITY for at least five (5) years after the completion of work perf0rmed under this Agreement. I

8.1.5.2. If the performance of SERVICE PROVIDER'S work or service under this tgreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers, hardrare engineers, or other systems consultants), SERVICE PROVIDER shall procure and maintain a claims made Errors and Omission liability insurance, incluring Cyber Liability and Data Breach, in the minimum amount of: (i) one milli9n dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurrnce available to SERVICE PROVIDER under SERVICE PROVIDER'S com�ined insurance policies (including any excess or "umbrella" policies), whichever is greater.
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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC484226

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

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

8.3. 8.4.

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

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

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

8.2.1.3. \ "Primary and Non-Contributing" - Insurance shall be endorsed to be pri�ary and non-contributory and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as ISO Form CG 20

01. I

8.2.e. Workers Compensation.

If the performance of SERVICE PROVIDER'S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER'S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers. , ualification of Insurers. All insurance required pursuant to this Agreement must be i�sued by a company licensed and admitted, or otherwise legally authorized to carry out irsurance business in the State of California, and each insurer must have a current A.M. 'est's financial strength rating of "A" or better and a financial size rating of "VI I" or better. tertificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim qr legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with dopies of all policies outlined herein. No policy subject to SERVICE PROVIDER'S �greement with CITY shall be canceled or materially changed except after thirty (30) 9ays' notice by the insurer to CITY. A "material change" is a change that results in nonompliance with any insurance requirements in this section 8. Certificates, including 5 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC484226

9. I
re�ewal c
1 ertificates, may be mailed electronically to [email protected] or de ivered o the Certificate Holder address provided herein.

Certificate Holder address:

Cit� of Morgan Hill
Atth: Risk Management I .
17$75 Peak Avenue
Mo�rgan Hill, CA 95037
personal!
N n-L abilit of Officials and Em lo ees of CITY. No official or employee of CITY shall be liat:>j'e for any default or liability under this Agreement.

10. C m liance with Law.
10 1.
10 ..
10 ..
10 ..

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

Without limiting the provisions of Section 10.1 above, each worker performing work nder this Agreement shall be paid at a rate not less than the prevailing wage as defined n Sections 1771 and 177 4 of the Labor Code. The prevailing wage rates are available pnline at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the �
pplicable prevailing rates at the Worksite. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any Subcontractor shall forfeit to CITY as a penalty up to two �undred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount hctllally paid to that worker.

IR Registration. CITY will not accept a Bid Proposal from or enter into a contract with � SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that I �ERVICE PROVIDER and its subcontractors are registered with the California lbepartment of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this �greement is subject to compliance monitoring and enforcement by the California !Department of Industrial Relations. I
�ompliancel with Wage and Hour Laws: SERVICE PROVIDER, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable ffderal, stat:e, and local wage and hour laws. Applicable laws may include, but are not I mited to, tHe Federal Fair Labor Standards Act and the California Labor Code.

Ffinal Judgments, Decisions, and Orders: For purposes of this Section, a "final judgment, ecision, or 1
order" refers to one for which all appeals have been exhausted or the time t appeal hg
1 s expired. Relevant investigatory government agencies include: the federal 6 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC4B4226 Department of Labor, the California Division of Labor Standards Enforcement, or any other gov�rnmental entity or division tasked with the investigation and enforcement of wage and \
hour laws.

Prior Judgments against SERVICE PROVIDER and/or its Subcontractors: BY SIGNING THIS AG�EEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIG�TORY GOVERNMENT AGENCY FINDING - IN THE FIVE (5) YEARS PRIOR Tq EXECUTING THIS AGREEMENT - THAT SERVICE PROVIDER OR ITS SUBCONlilRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.

SERVICE LROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATl::>FIED AND COMPLIED WITH - OR HAS REACHED AGREEMENT WITH

THE CITYI REGARDING THE MANNER IN WHICH IT WILL SATISFY - ANY SUCH JUDGMENTS, DECISIONS OR ORDERS. I
Judgment� or Decisions During Term of Contract: If at any time during the term of this Agreemen�. a court or investigatory government agency issues a final judgment, decision or order fi�ding that SERVICE PROVIDER or any subcontractor it employs to perform o�k underi this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDE� learns of such a judgment, decision, or order that was not previously isclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) �ays after \the judgment, decision or order becomes final or of learning of the final judgment, decision or order. SERVICE PROVIDER and its subcontractors shall promptly �atisfy and \comply with any such judgment, decision, or order, and shall provide the City �ttorney with documentary evidence of compliance with the final judgment, decision, or order withi� five (5) days of satisfying the final judgment, decision, or order. CITY eserves th� right to require SERVICE PROVIDER to enter into an agreement with CITY egarding t e manner in which any such final judgment, decision, or order will be atisfied.
t
ity's Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it mploys to perform work under this Agreement has been found in violation of any pplicable wage and hour law by a final judgment, decision or order of a court or �overnment agency, CITY reserves the right to withhold payment to SERVICE i
ROVIDERi 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 reach of this Agreement. Such breach may serve as a basis for immediate termination , f this Agreement and/or any other remedies available under this Agreement and/or law. �otice 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 Jeparate from any other notice provisions in this Agreement and, accordingly, only notice P,rovided to the above address satisfies the notice requirements in this Section.

11. Ind ejdelilt Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employe of f'TY.

12. Con identialit . Al1
1 data, documents, or other information received by SERVICE PROVIDER from CITY r pr pared in tnnection with SERVICE PROVIDER'S services under this Agreement are 7 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 deemed onfi ential and shall not be disclosed to any third party by SERVICE PROVIDER without prior written c nser by CITY.

13. C nflict of Interest and Re ortin . SERVICE PROVIDER shall at all times avoid conflict of interest o ap , earance of conflict of interest in performance of this Agreement.

14. N ticJs. All notices shall be personally delivered or mailed, via first class mail to the below listed address. he�e addressJs shall be used for delivery of service of process. Notices shall be effective five (5) d ys fter date ofl
mailing, or upon date of personal delivery.

Address of SERVICE PROVIDER is as follows:

MJR Electric, Inc.

P.O. Box 668
Morgan Hill, CA 95038
Attn: Michael Rauschnot, President
Address of CITY is as follows:

Keri 9 ussell, Ma int. Manager
City of Morgan Hill
17578i Peak Avenue
Morg�n Hill, CA 95037
with a copy to:

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

15. Li enses Permits and Fees. SERVICE PROVIDER shall obtain a City of Morgan Hill Business License, II p9irmits and licenses to the extent required by ordinances, codes, and regulations of the federal, st te, and local government.

16. Se icl Provider's Pro osal. If applicable, this Agreement shall include SERVICE PROVIDE 'S �roposal or bid which is incorporated herein. In the event of any inconsistency between the terms f th proposal and this Agreement, this Agreement shall govern.

17. 17 ..
17 ..
aintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain [
ecords for a period of at least 3 years after receipt of final payment under this �greement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then SERVICE PROVIDER �hall retain [said records until such action is resolved. �ccess to and Audit of Records. CITY shall have the right to examine, monitor and audit �II records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part �f any audit of CITY, to the examination and audit of the State Auditor pertaining to ratters connected with the performance of this Agreement for a period of three years . fter final payment under the Agreement.
8 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC484226 1 .3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

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

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

20. N Assi nment.1 Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDE , 1
ithout priori\ written consent of CITY. Any attempted assignment not first approved by CITY shall be foid and, at CITY'S option, shall terminate this Agreement effective as of the date of such attempted ass gnment.

21. At orn Fees. Im any legal action, dispute or arbitration arising out of or relating to this Agreemen , thy prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses ncu red.

22. De ense and Indemnification.

22. . Defense and Indemnification. SERVICE PROVIDER shall, to the fullest extent permitted by aw, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, ag nci s, officers, agents, employees, and volunteers ("INDEMNITEES") from and against any an all blaims, liabilities, expenses, liens, or damages of any nature, including liability for bodily inj ry, property damage or personal injury, and including reasonable attorneys' fees and ex ens[s, that arise out of, pertain to, or relate to the performance of this Agreement or the fail re to comply with any obligations contained in this Agreement by SERVICE PROVIDER, an /or is agents, officers, employees, subcontractors, or independent contractors ("CLAIM").

22. . Exceptions. SERVICE PROVIDER is not required to indemnify INDEMNITEES against liab lity lior bodily injury, property damage or personal injury, or any other loss, damage or ex ens arising from the sole negligence or willful misconduct of CITY.

22. . Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agr ement : apply to all CLAIMS alleged against an INDEMNITEE, regardless of whether any ins ran<l:e policies are applicable. Policy limits do not act as a limitation upon the amount of ind mnification or defense to be provided by SERVICE PROVIDER.

22. . �ight to Offset. CITY shall have the right to offset against any compensation due SE VldE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as re�ult of SERVICE PROVIDER'S failure to pay CITY promptly any indemnification arising und r t�is Section I (22) and any amount due CITY from SERVICE PROVIDER arising from SE v19E PROVl9ER'S failure either to (i) pay taxes on amounts received pursuant to this Agr ement or (ii) cqmply with applicable workers' compensation laws.

22. . I tenpretation. This Section shall constitute an agreement or contract of indemnity, inc rporating the interpretations under California Civil Code Section 2778. It is expressly 9 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 I
u der toad and agreed that the obligation of SERVICE PROVIDER to indemnify the IN E� NITEE shall be as broad and inclusive as permitted by the laws of the State of California a d s all !urvive termination of this Agreement.

23. E tire A reement· Modification- Conflictin Provisions. This Agreement constitutes the entire Ag e ent between the Parties and supersedes any previous agreements, oral or written. This Agreeme t m�y be modified or provisions waived only by a subsequent mutual written agreement executed by ilTY and SERVICE PROVIDER. If the provisions contained in the main body of this Agreeme t corflict with any provision contained in an exhibit to this Agreement, the provisions of the main bod of t
[
is !Agreement shall govern and control over any provision contained in an exhibit to this Agreeme t. \

24. G ver in Law and Venue. This Agreement shall be construed in accordance with the laws of the State f C lifornia. This Agreement was entered into and is to be performed in the County of Santa Clara. An act on or dispute arising out of this Agreement shall only be brought in Santa Clara County.

25. Int r etation. THis Agreement is a negotiated document and shall be deemed to have been drafted jointly by the Paries, and no rule of construction or interpretation shall apply against any particular arty based on
I
a contention that the Agreement was drafted by one of the Parties including, but not Ii ited to, California Civil Code § 1654, the provisions of which are hereby waived. This Agreemen sh�II be consttued and interpreted in a neutral manner.

26. Pr se�ation of� reement. If any term, provision, covenant, or condition of this Agreement is held by a ou� of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall II f, rce and effect and shall in no way be affected or invalidated.

27. Bi din A reement. Notwithstanding the provisions of Section 20 above, this Agreement shall bind any nd \ II successors in interest, legal representatives and/or other permitted assignees or transferee of SERVICE PROVIDER in the same manner as if those successors in interest, legal represent tive or other permitted assignees or transferees had entered into this Agreement originally.

28. El tronic Si natures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an el ctro�ic copy of a signed contract, or an electronically signed contract, has the same force and legal ffec� as a contract executed with an original ink signature. The term "electronic copy of a signed co trac " refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of a ori , inal signed contract in a portable document format. The term "electronically signed contract" ea s a contract that is executed by applying an electronic signature using technology approved y th CITY.

Ill
Ill
Signatures are on the following page.
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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC484226

29. A th .rit to Execute. Those individuals who are signing this Agreement on behalf of entities represen an warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind th en ities fully to each and all of the obligations set forth in this Agreement.

IN WI NESS THEREOF, these Parties have executed this Agreement on the day and year shown be ow.

AS SET OR IIH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPOR TIONS:
(1) CHAIR ERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECR TA lY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

Mich w
D t 5 22/2024 a e:

City Clerk

APPRO E
di AS TO FORM:

DocuSigne by:
. llA,
fA I
Donald . Llrkin
Date:
439357
Contractor' License Number(s) (if applicable)
Expiration ate Is) ---------- 05/31/2025
U:\Legal Forms\C nsult nt Agreements\Clty Maintenance Service Agreement.Docx 11 CITY OF MORGAN HILL
DocuSigned by:

CiAnstiM �
Christina J. Turner
Print Name
Date: 5/22/2024
�2:1�
MJR ELECTRIC, INC.

N
If
Print tcho\�s.

Corporate:

Name and
�\Jsdi()o::\:-
Title
Secretary,
of Signer. �
Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
Date:
1000033504
Contractor's DIR Registration Number(s) (if applicable) Expiration Date(s) ------------ 06/30/2024
Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC484226

EXHIBIT A

SCOPE OF SERVICES
Contract r win �rovidelull-service, on-call electrical maintenance and repair services at City facilities n compliance with all applicable laws, regulations, policies and procedures. Firms submitti g bids h,ust be prepared to immediately enter into a contract ("Agreement") for the services nd duties as �et forth in this RFP.

Services O br plrformJd Include the furnishing of all labor, materials, tools, equipment, supplies, seryicJs, task� and incidental and customary work necessary to competently perform n-call J1ectric�I maintenance and repair work at various City facilities {see Attachm nt 1>· \
The work willjinclude the provision of a total maintenance and repair program consisting of a variety of tasf
s ipcluding, but not limited to, laying out, installing, replacing, wiring and testing electrical seryic9i and electrical wire systems and components used to provide heat, light, power, ai co,ditioning, and refrigeration in municipal buildings and facilities. Services may also incl de ipst�lling and repairing conduit and other materials; connecting electrical machine , e�ui�ment and controls and transmission systems and servicing other electrical related is ue� as\ they arise and services necessary to insure safe, well maintained electrical systems r O,
ity �mployees and the public. The scope and number of projects and tasks are unknown t t e time of contract execution.

The Cont act r shall leave work areas free of all dirt, litter, lubricants, or other materials utilized to pe ort electrical maintenance.
r shall erect barricades, warning signs, and any other devices to prevent cc1ess by the public or unauthorized City staff to work areas.

The Contr cto�
r shall respond to all requests for repairs or unscheduled emergency repairs as required, 4 h ur� per day, 365 days per year, including holidays. All costs for labor and materials or t es
1 e calls shall be included in the proposal. Response time by the Contractor shall be w thi� four (4) hours of all requests.

The succ sf I ptposer will be responsible for providing labor, supervision, materials, equipmen , tr nsportation, service and the shop facilities necessary to perform high quality work. Con ra1
or rill also be responsible for discarding all used materials.

It is the in ent p
f the City of Morgan Hill to identify and establish long term partnerships with highly qu lifie cbntractors. To achieve the best level of service, the City believes that the relationsh p must\be based on mutual trust and respect. Teamwork, flexibility, and cooperation will be es nti I characteristics of the successful Contractor. 2-1 SC PE OF SERVICE The Contractor shall provide full-service on-call electrical maintenan e and repair services to City Facilities as outlined in this document. Contractor shall retai pr�fessional personnel who have successfully and competently provided municipal acility �lectrical maintenance and repair services on projects of similar scope and complexit . It �hall be the Contractor's responsibility to effectively repair and maintain, to the satisfactio of\the1 City representative, all aspects of electrical systems in City defined facilities with mini al downtime. All maintenance and repairs shall be provided in accordance with the 12 Updated: May 2023

I I
DocuSign Envelope ID: E6DBA3E2-EOCF-4AEF-9980-0022CC4B4226 highest tan arls of t, industry, skill, workmanship, applicable trade practices, shall meet warranti s a11 d le in co1
nformance to all applicable laws, codes and regulations. The success ul q�ntractor's electrical maintenance and repairs shall, at a minimum, include but not be Ii itei tol the sptcifications outlined herein.
2-2 S RV�CES TO B� PROVIDED It is the Proposer's responsibility to provide an appropri te l
i:
vel of stafing and provide appropriate tools and vehicles necessary to support all facilit eleftrip
al maintenance and repair functions during hours of operation and for respons after np
rmal 1orking hours. Proposer shall maintain the appropriate license and will comply ith ti other li9ense, insurance and permit requirements of the City, State and Federal governm nts asl well as all other requirements of the law. 2-3 T RM I F SERVICE The term of the contract will be from July 1, 2024 through June 30, 2026. Th coptr�
ct may\ be canceled or any portion thereof at any time during the term of service a d spc� cancepations shall be effective upon giving thirty (30) days written notice.

The City, t it_f option, "1ay renew this contract for up to three, one year periods, beginning on July 1, 20 6. l hi� option will be exercised only if the contractor has demonstrated superior performa ce n provisior of On-Call Electrical Maintenance and Repair Services to the City.

Pricing e tries in\ the Bi� Proposal apply to the period of July 1, 2024 to June 30, 2026. If the contract i re�ewed, a er
st escalation will be reviewed each subsequent year beginning on July 1, 20 6.
2-4 W RK HO1URS S , heduled maintenance and repairs shall typically occur during normal business ou s. Facility \business hours are:
- Aq ati , s Center i� open weekdays from 5:00 a.m. to 8:00 p. m., Saturdays from 7:00 I I a.m. to 1: 0 p. . (summer season to 6:30 p.m.), and Sundays 7:00 a.m. to 1 0:O0am. (summer season to 6:3 p.m.). \
- Ce ten ial1 Recreation Center is an active facility on Weekdays from 5:00 a.m. to 9:30 p.m., Satu daYi�
1 s a�
d Sun�ays from 6:30 a.m. to 5:00 p.m.
- Cit Ha I is open Monday-Friday 8:00 a.m. - 5:00 p.m.
- Ch mb rs Buildin:g is open Monday-Friday 8:00 a.m. - 5:00 p.m. - Th Cormunity and Cultural Center is open Monday-Friday 8:00 a.m. - 5:00 p.m. - Th Pol
1 ice Departhient is open Monday-Friday 8:00 a.m. - 5:30 p.m. - . Th Pu�
_
lie Works \�orporation Yard is open Monday-Thursday 6:30 a.m. - 4:00 p.m. and Fridays fr m 6.30 a.m. • 3.00 p.m.
- The Viii s are oper, Monday-Friday 8:00 a.m. - 5:00 p.m. - Co mu�
iti Park 'estrooms are open seven days a week 6:00 a.m. to 10:00 p.m.

Gal an r
ar� Restrpom are open seven days a week 6:00 a.m. to 10:00 p.m. - Rail oa Park Restroom are open seven days a week 6:00 a.m. to 10:00 p.m. twenty-fou ho rs a day, seven days a week basis with a response time not to exceed the following:

EMERGEN IE ···+······· .. \· ............. two-hour response time NON-EME GEtCIES ...... ............. four-hour response time Time to respon sla11 star when the City calls the problem Into Contractor's designated emergency ph ne \number. Additionally, the contractor shall provide the ability to respond 13 Updated: May 2023

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 immedia ely o �ituatio�s involving the health and safety of employees and/or the public and the com rt ndJoperational capability of any public meeting space. Routine repairs, service requests or ther non-�rgent tasks shall be completed by journey level staff within one (1) working ay I rotin the dete of request by City Representative. Contractor's inability to respond to emerg nc·es )" a tim
\
ely manner will result in a penalty fee of $100 per response. 2-6 T OU LE-CALUREPAIR SERVICE Should the City request the contractor to make unsched led e1ergen+y electrical system repairs, the City shall be responsible for labor and travel co ts ssC!>ciatedJtherewith. These costs, as listed in the proposal, will be a critical part of the bi ev,1uJtion in 1determining the lowest responsive and responsible contractor. Rates shall be ·rm for �he term of the contract. The City reserves the right to contract with others for trouble c lls�
nd repair$.

BL • Jf
>RK T�e Contractor shall not bill for unnecessary repairs, for repairs that were not o ple�ed satisfactorily, for repairs that did not fix an identified problem, or for faclllty vi its ha! are mtde by staff unqualified to complete needed repairs. 2-8 STAF IN4, WORKM�NSHIPAND QUALITY LEVEL The Contractor shall provide a staffing level to p rfofm on-call �lectrical maintenance and repair services at designated City facilities in a thor ug� an� professional manner, so that the City is provided with reliable and high quality el ctr�
cal\maintenance : at all times. The Contractor shall possess and maintain a C-10 General lectr
ical licen�e by the State of California Contractors Licensing Board through the term of t e contr'act. All personnel performing work under this Contract shall possess and maintain st�te journeYiman certification and be directly employed and supervised by the Contract r. A y assigned apprentice shall work directly under the supervision of a qualified journeym n. he\ Contr�ctor shall provide management and technical supervision through compete t s pe'i"isors �s required. The Contractor shall be responsible for the skills, methods nd actions of l
all employees, subcontractors and for all work done.
2-9 MAIN ENfN<i:E ANQ REPAIR LOCATIONS See Section 2-Attachment A S 4NJ EQU l�MENT The Contractor shall furnish and maintain all equipment necessa forj pr6perly servicing and maintaining electrical systems in City buildings. The City of Morga HiU re!erves lhe right to inspect equipment to be used to perform services under this contr ct. �ny equipfllent determined to be in poor condition must be replaced immediat ly, f� t�e contractor's expense. Failure to provide suitable equipment for carrying out all re uirements of t�is contract may be grounds for termination. 2-11 PAR S
�
\ND MATERIALS The Contractor shall furnish all parts and materials necessary for prope ly ain
1 tainin�1'and repairing electrical systems in City buildings. Mark-up on parts and mate ials ma� not eiceed 10% of Contractor's cost. Invoices must identify the work performe , co[
st of laborl parts/materials used, parts/materials cost, and parts/materials markup cost. I 2-12 INSP CT ONS AND\REMEDIES So as to ensure consistent quality of the work being performe , th' Ci�y Repriesentative will perform periodic inspections of electrical systems to ensure co pllance with the contract specifications. Inspections may be made by the City at any time t col
nfi�m that r,ork performed meets specifications. If corrective work is required, the City w II p ovi�e a w�itten list of items and the Contractor shall correct deficiencies as directed. I de ici�
ncies are not corrected in a timely manner, the City may perform the work using oth rs nd deduct the cost from the Contractor's payment. 14 Updated: May 2023

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 2-13 DA AG S �he Co�tractor will be responsible for all damages to the facility or contents caused b C;ntr\
actor, their staff or subcontractors during the performance of their duties. 2-14 SAF TY & SECURI
\
TY The Contractor and staff shall follow all established safety procedur s ard �hall take special care not to endanger themselves and the public in any way.

The Cont actr
r is respo:nsible for the security of all doors at the conclusion of work in each room. Al ex,
erior door, should remain locked at all times. Interior doors that are found open or unloc ed hall be left in the same position/condition in which they were found. I I 2-15 FIN ER,RINTING (Live Scan State of California Criminal Records Check): All Contractor staff who wil�I be lworkin� on City facilities must pass a State of California Department of Justice ( OJ�
) Criminal R
\
ecords and FBI Background Check at the contractor's expense. The backgrou d he'-
ks can be performed at a Live Scan State of California Criminal Records Check lo ati \
ns or at the City of Morgan Hill Police Department. If the Contractor choses to complete the barikgrou�d check at the Morgan Hill Police Department, the fingerprinting appointm nt� cah be scheduled by calling 408-776-7300 or via online at https://ca end
1 1y.9om/mh1pdrecords/30min . The Morgan Hill Police Department is located at 16200 Vin ya�
d Boulev�rd, Morgan Hill. The total fee is currently $69.00 per person ($20.00 for PD appoi tment �nd $32 for DOJ check and $17 for FBI check) payable at the time of the appointm nt. \ Th� Cont�actor is responsible for providing the City of Morgan Hill with updated records C eel iniormatir n for their employees.
2-16 EME G�Ncr SITUt TIONS For medical or public safety emergencies occurring at the Facilities all 9-1i1. For all building maintenance emergencies (water leaks, etc.) contact the Maintena ce t
a1ager ot designated staff to report the issue immediately (24-hours/day). 2-17 REP RTS / INVOICING
All invoic s shou11d inclLde a detailed summary of all work and repairs performed. Should a repair ne d to! be\made 6ver $1,000 a quote will need to be provided to the City before any work can e t
thorized. I
ATTACH EN1A

MUNICIPAL FACILITIES LOCATIONS
ELECTRI AL SY• TEMS rro BE MAINTAINED AT THESE LOCATIONS BUILDING FA�
IL� I ADDRESS SQUARE FOOTAGE
Aquatics enter (office area) 16200 Condit Road 5,294
Centennia Reb\ re�tion C�nter 171 West Edmundson Avenue 25,135 City Hall I 17575 Peak Avenue 13,900
Communi a
* Cultural Center and Playhouse 17000 Monterey Road 20,500; 5,000 Council C am er\
Buildi g 17555 Peak Avenue 12,104
Police De art e�t 16200 Vineyard Boulevard 43,286
Public Wo ks Corporatio Yard 100 Edes Court 4,583
The Villas I \ 535 Alkire Avenue 4,500
Dunne Hill Fir� Station 2100 East Dunne Avenue
El Toro Fi e Statidn 18300 Old Monterey Road
All other p rk I aJd City1wned properties
15 Updated: May 2023

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DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
Please s e h , ur y rates on the next page
16 Updated: May 2023

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226 Base Bid
Item#

1. 2.

3. 4.
s.

6. 7.

8. ATTACHMENT A

COST SCHEDULE
l lee ricaI l On-fall Maintenance Services at Morgan Hill City Facilities* N, me of Cohtractor: MJR Electric

I I -------------
Item
Shi i>p R
1 ate for Electrical Services -
Ap t>rerytice (s:qo a.m. to 5:00 p.m.)
Shi ,p Rate for Electrical Services- I I
Jot rneyman (8:po a.m. to 5:00 p.m.)
sh,
p Rate for 9ther Electrical ServicesDerri�e in Coniments Section Ovf rtiTe Rate for Electrical ServicesApprentice (S:op p.m. to 8:00 a.m.) Ovi!rtime Rate 1ior Electrical ServicesJourne�man (s:po p.m. to 8:00 a.m.) Ott
Cor
Sat
er Overtime Rate - Describe in
rimJnts Section I I
1Jrday, Sunday and Holiday Rate- I I Ap1,
1ren11ce
Sat urd�y, Sund➔y and Holiday RateJou ne�man
I
Hourly Rate Comments
$
$250
$ $300
n/a
$
$375
$
$450
$ n/a
$
$375
$
$450
*Please at1jach a separate 'rEquipment Rate Schedule": Describe Equipment Hourly Rate or Flat Rate 20

I I
DocuSign Envelope ID: E6DBA3E2-E0CF-4AEF-9980-0022CC4B4226

EXHIBIT C

SCHEDULE OF PERFORMANCE
Services to e schedul�d on an on-call basis with City Maintenance Staff. I 17 Updated: May 2023

6 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Spring Andrews, Information Technology Director
APPROVED BY: City Manager

AUTHORIZE THE CITY MANAGER TO EXECUTE A PURCHASE

AGREEMENT FOR COMPUTER EQUIPMENT WITH SAVANT

SOLUTIONS

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

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
GIS Strategic Plan
Morgan Hill 2035 General Plan
Public Safety Master Plan
REPORT NARRATIVE:

Background:

In order to more efficiently replace aged-out equipment, we are moving to a replacement cycle for workstation inventory. We are able to leverage more competitive pricing when buying annually in volume rather than multiple small purchases.

Current challenge:

Current workstations are no longer supported and have reached end-of-life.

Additionally, the workstation configurations do not support current business needs. Due to global supply constraints and pricing volatility, quotes are only valid for a limited time before being subject to increases or becoming void from lack of supply. Our current quote is only valid until 1/31/2026.

6 Proposal:

Leverage budgeted funds to replace end-of-life equipment that is no longer sustainable.

The new equipment will improve our teammates' work experience by leveraging faster processors, additional memory and storage. The new workstations are custom-built based on business needs to support new applications and initiatives.

The quote from Savant Solutions, in the amount of $148,799, utilizes a competitively solicited cooperative purchasing contract from the National Association of State Procurement Officials’ (NASPO), a nationally recognized public sector cooperative contracting vehicle that aggregates demand to secure best-value pricing, and is permissible under the City of Morgan Hill’s purchasing provisions, which allow procurement through cooperative contracts that have been competitively bid by another public agency as an exception to the City’s formal competitive bidding requirements.

Staff recommends that the City Council authorize the City Manager to execute a purchase agreement for computer equipment with Savant Solutions for an amount not to exceed $150,000.

COMMUNITY ENGAGEMENT:

This staff report serves to inform the Community of the City’s need to purchase equipment.

ALTERNATIVE ACTIONS:

Council could direct staff to seek and purchase with an alternative provider; however, this will likely result in additional costs. Re-engaging another vendor to purchase computer equipment would not only result in additional costs, but also pose significant delays due to price volatility and supply chain issues, furthering our risk of equipment failure.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

There has been no prior City Council action related to this purchase, however, the City routinely purchases computer equipment.

FISCAL AND RESOURCE IMPACT:

There is sufficient funding available for this purchase. The amount has been budgeted for in the 2025-26 fiscal year.

CEQA (California Environmental Quality Act):

Not a project.

This agreement will not result in direct or indirect physical changes to the environment.

7 CITY COUNCIL STAFF REPORT
MEETING DATE: January 28, 2026
PREPARED BY:

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

AWARD CENTENNIAL RECREATION CENTER POOL REPLASTERING

PROJECT

RECOMMENDATION(S)

1. Award contract to Earl Adams Tile-Coping & Plastering, Inc., dba Adams Pool Solutions in the amount of $112,976 and authorize the expenditure of up to 20% contingency funds not to exceed $22,595; and

2. Authorize the City Manager to execute and administer that certain construction contract with Earl Adams Tile-Coping & Plastering, Inc., dba Adams Pool Solutions.

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

The purpose of this item is to provide the City Council with an opportunity to consider the award of a contract to Earl Adams Tile-Coping & Plastering Inc. dba Adams Pool Solutions ("Adams Pool Solutions") in the amount of $112,976 to complete the replastering of the Centennial Recreation Center's (CRC) swimming pool. The scope of work for the CRC Pool Replastering project ("Project") includes all labor and materials necessary to replaster the pool's entire 3,418 SF surface including the removal and replacement of attached equipment, and materials including drain covers, grates, recessed ladder steps, LED lights installation, and rebuilding the west and east entry steps. The contractor will also be responsible for refilling the pool with the water connection provided by and paid for by the City.

7 The replastering project is scheduled to occur in March 2026. At the same time, the CRC will also have Heating, Ventilation & Air Conditioning (HVAC) work done by a separate contractor on adjacent areas of the pool deck. These projects were scheduled to be completed simultaneously to minimize the amount of time the CRC pool will be closed to the public. The CRC pool was last replastered in 2013, and replastering will ensure the long-term operation of this community asset.

In soliciting for this contract, the City published a Notice Inviting Bids in the Morgan Hill Times on November 21, 2025. On November 24th, the bid documents were posted on the City website, and the Public Purchase online service. The bid documents were also sent to the Builders' Exchange of Santa Clara County, San Francisco Builders' Exchange, Bay Area Builders' Exchange, Central Coast Builders' Association, and Dodge and Data Analytics. Contractors registered on the City's Informal Bidders list with the required Contractor State Licensing Board (CSLB) license Class C-53 (Swimming Pools) were also notified of the bid. A non-mandatory pre-bid meeting and job walk was held at the CRC on December 2, 2025 and three contractors attended. On December 17, 2025, four bids were received.

Bidder's Name Base Bid Amount
Adams Pool Solutions $112,976
BNO Builders, Inc. $193,000
Burkett's Pool
Plastering, Inc.
$127,507
USA Construction, LLC $149,640
The lowest responsive and responsible bidder was Adams Pool Solutions. This company has over 29 years of industry knowledge and experience in the replastering of commercial pools including replastering pools for jurisdictions including the City of Gilroy. City staff is recommending that the Council award the contract to Adams Pool solutions and authorize the City Manager to execute and administer the agreement (Attachment 1).

COMMUNITY ENGAGEMENT:

Inform
The CRC Pool Replastering project is scheduled to take place in March 2026.

Information on the pool closure will be shared directly with members via social media and email communications. Several weeks before the CRC pool replastering begins, signs will be posted at the CRC informing members of the upcoming project and pool closure. The CRC Welcome Desk staff will be kept fully informed of the construction schedule so that they can keep CRC members up to date on the progress of the project.

7 ALTERNATIVE ACTIONS:

The City Council could decide not to approve this project. Postponing this work is not recommended, as the replastering of the pool surface and the HVAC work at the CRC pool were scheduled to occur simultaneously to reduce the amount of time the CRC pool is closed to the public.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

No prior action taken on this item.

FISCAL AND RESOURCE IMPACT:

If approved, the total funding authorization for this contract will be $135,571, which includes the contract amount of $112,976, and a 20% contingency of $22,595. The contingency will support completing the project within the one-month planned pool closure window in order to best support customer service. This project will be funded by the Capital Improvement Project (CIP) Recreation Facility Renovation Fund (PR1005).

CEQA (California Environmental Quality Act):

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

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 1
Version: January 2025

GENERAL CONDITIONS
Table of Contents:

Article 1 – Definitions ............................................................................................1 Article 2 – Roles and Responsibilities...................................................................5 Article 3 – Contract Documents ............................................................................9 Article 4 – Bonds, Indemnity and Insurance........................................................11 Article 5 – Contract Time ....................................................................................16 Article 6 – Contract Modification .........................................................................21 Article 7 – General Construction Provisions........................................................24 Article 8 – Payment.............................................................................................32 Article 9 – Labor Provisions ................................................................................37 Article 10 – Safety Provisions .............................................................................39 Article 11 – Completion and Warranty Provisions...............................................40 Article 12 – Dispute Resolution...........................................................................43 Article 13 – Suspension and Termination ...........................................................48 Article 14 – Miscellaneous Provisions.................................................................50 Article 1
Definitions

1.1 Definitions. The following definitions apply to all of the Contract Documents unless otherwise indicated, e.g., additional definitions that apply solely to the Specifications or other technical documents. Defined terms and titles of documents are capitalized in the Contract Documents, with the exception of the following (in any tense or form): “day,” “furnish,” “including,” “install,” “work day,” or “working day.”
Allowance means a specific amount that must be included in the Bid Proposal for Work that may or may not be included in the Project, depending on conditions that will not become known until after bids are opened. If the Contract Price includes an Allowance and the cost of performing the Work covered by that Allowance is greater or less than the Allowance, the Contract Price will be increased or decreased accordingly.

Article, as used in these General Conditions, means a numbered Article of the General Conditions, unless otherwise indicated by the context.

Change Order means a written document duly approved and executed by City, which changes the scope of Work, the Contract Price, or the Contract Time.

City means the City of Morgan Hill, acting through its City Council, officers, employees, City Engineer, and any other authorized representatives.

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 2
Version: January 2025
City Engineer means the City Engineer for the City and his or her authorized delegee(s).

Claim means a separate demand by Contractor for a change in the Contract Time or Contract Price, that has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been rejected by City, in whole or in part; a written demand by Contractor disputing a unilateral Change Order or a portion thereof; or a written demand by Contractor objecting to the amount of Final Payment.

Contract means the signed agreement between City and Contractor for performing the Work required for the Project, and all documents expressly incorporated therein.

Contract Documents means, collectively, all of the documents listed as such in Section 2 of the Contract, including the Notice Inviting Informal Bids; the Instructions to Bidders; addenda, if any; the Bid Proposal, and attachments thereto; the Contract; the Notice of Award and Notice to Proceed; the payment and performance bonds; the General Conditions; the Special Conditions; the Project Plans and Specifications; any Change Orders; and any other documents that are clearly and unambiguously made part of the Contract Documents. The Contract Documents do not include documents provided “For Reference Only,” or documents that are intended solely to provide information regarding existing conditions.

Contract Price means the total compensation to be paid to Contractor for performance of the Work, as set forth in the Contract and as may be amended by Change Order or adjusted for an Allowance. The Contract Price is not subject to adjustment due to inflation or due to the increased cost of labor, material, or equipment following submission of the Bid Proposal. The Contract Price is deemed to include all applicable federal, state, and local taxes.

Contract Time means the number of days specified for complete performance of the Work, as set forth in the Contract and as amended by Change Order.

Contractor means the individual, partnership, corporation, or joint-venture that has signed the Contract with City to perform the Work.

Day means a calendar day unless otherwise specified.

Design Professional means the licensed individual(s) or firm(s) retained by City to provide architectural, engineering, or other design professional services for the Project. If no Design Professional has been retained for this Project, any reference to Design Professional is deemed to refer to the Engineer.

DIR means the California Department of Industrial Relations.

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 3
Version: January 2025
Drawings has the same meaning as Plans, and does not include Shop Drawings.

Engineer means the City Engineer for the City of Morgan Hill and his or her authorized delegee(s).

Excusable Delay is defined in Section 5.3(B), Excusable Delay.

Extra Work means new or unforeseen work added to the Project, as determined by the Engineer in his or her sole discretion, including Work that was not part of or incidental to the scope of the Work when the Contractor’s bid was submitted; Work that is substantially different from the Work as described in the Contract Documents at bid time; or Work that results from a substantially differing and unforeseeable condition.

Final Completion means Contractor has fully completed all of the Work required by the Contract Documents to the City’s satisfaction, including all punch list items, and any required commissioning or training, and has provided the City with all required submittals, including the instructions and manuals, product warranties, and as-built drawings.

Final Payment means payment to Contractor of the unpaid Contract Price, including release of undisputed retention, less amounts withheld or deducted pursuant to the Contract Documents.

Furnish means to purchase and deliver for the Project.

Government Code Claim means a claim submitted pursuant to California Government Code Section 900 et seq.

Hazardous Materials means any substance or material identified now or in the future as hazardous under any Laws, or any other substance or material that may be considered hazardous or otherwise subject to Laws governing handling, disposal, or cleanup.

Including, whether or not capitalized, means “including, but not limited to,” unless the context clearly requires otherwise.

Inspector means the individual(s) or firm(s) retained or employed by City to inspect the workmanship, materials, and manner of construction of the Project and its components to ensure compliance with the Contract Documents and all Laws.

Install means to fix in place for materials, and to fix in place and connect for equipment.

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 4
Version: January 2025
Laws means all applicable local, state, and federal laws, regulations, rules, codes, ordinances, permits, orders, and the like enacted or imposed by or under the auspices of any governmental entity with jurisdiction over any of the Work or any performance of the Work, including health and safety requirements.

Non-Excusable Delay is defined in Section 5.3(D), Non-Excusable Delay.

Plans means the City-provided plans, drawings, details, or graphical depictions of the Project requirements, but does not include Shop Drawings.

Project means the public works project referenced in the Contract.

Project Manager means the individual designated by City to oversee and manage the Project on City’s behalf and may include his or her authorized delegee(s) when the Project Manager is unavailable. If no Project Manager has been designated for this Project, any reference to Project Manager is deemed to refer to the Engineer.

Recoverable Costs is defined in Section 5.3(F), Recoverable Costs.

Request for Information or RFI means Contractor’s written request for information about the Contract Documents, the Work or the Project, submitted to City in the manner and format specified by City.

Section, when capitalized in these General Conditions, means a numbered section or subsection of the General Conditions, unless the context clearly indicates otherwise.

Shop Drawings means drawings, plan details or other graphical depictions prepared by or on behalf of Contractor, and subject to City acceptance, which are intended to provide details for fabrication, installation, and the like, of items required by or shown in the Plans or Specifications.

Specialty Work means Work that must be performed by a specialized Subcontractor with the specified license or other special certification, and that the Contractor is not qualified to self-perform.

Specifications means the technical, text specifications describing the Project requirements, which are prepared for and incorporated into the Contract by or on behalf of City, and does not include the Contract, General Conditions or Special Conditions.

Subcontractor means an individual, partnership, corporation, or joint-venture retained by Contractor directly or indirectly through a subcontract to perform a specific portion of the Work. The term Subcontractor applies to subcontractors, suppliers, fabricators, and equipment lessors of all tiers, unless otherwise

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 5
Version: January 2025
indicated by the context. A third party such as a utility performing related work on the Project is not a Subcontractor, even if Contractor must coordinate its Work with the third party.

Technical Specifications has the same meaning as Specifications.

Work means all of the construction and services necessary for or incidental to completing the Project in conformance with the requirements of the Contract Documents.

Work Day or Working Day, whether or not capitalized, means a weekday when the City is open for business, and does not include holidays observed by City.

Worksite means the place or places where the Work is performed, which includes, but may extend beyond the Project site, including separate locations for staging, storage, or fabrication.

CRC Pool Replastering Project GENERAL CONDITIONS
CSD2026-010 Page 6
Version: January 2025
Article 2
Roles and Responsibilities

2.1 City.
(A) City Council. The City Council has final authority in all matters affecting the Project, except to the extent it has delegated authority to the Engineer.
(B) Engineer. The Engineer, acting within the authority conferred by the City Council, is responsible for administration of the Project on behalf of City, including authority to provide directions to the Design Professional and to Contractor to ensure proper and timely completion of the Project. The Engineer’s decisions are final and conclusive within the scope of his or her authority, including interpretation of the Contract Documents. (C) Project Manager. The Project Manager assigned to the Project will be the primary point of contact for the Contractor and will serve as City’s representative, for daily administration of the Project on behalf of City.

Unless otherwise specified, all of Contractor’s communications to City (in any form) will go to or through the Project Manager. City reserves the right to reassign the Project Manager role at any time or to delegate duties to additional City representatives, without prior notice to or consent of Contractor.
(D) Design Professional. The Design Professional is responsible for the overall design of the Project, and to the extent authorized by City, may act on City’s behalf to ensure performance of the Work in compliance with the Plans and Specifications, including any design changes authorized by Change Order. The Design Professional’s duties may include review of Contractor’s submittals, visits to any Worksite, inspecting the Work, evaluating test and inspection results, and participation in Project-related meetings, including any pre-construction conference, weekly meetings, and coordination meetings. The Design Professional’s interpretation of the Plans or Specifications is final and conclusive.

2.2 Contractor.
(A) General. Contractor must provide all labor, materials, supplies, equipment, services, and incidentals necessary to perform and timely complete the Work in strict accordance with the Contract Documents, and in an economical and efficient manner in the best interests of City, and with minimal inconvenience to the public.
(B) Responsibility for the Work and Risk of Loss. Contractor is responsible for supervising and directing all aspects of the Work to facilitate

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the efficient and timely completion of the Work. Contractor is solely responsible for, and required to exercise full control over the Work, including the construction means, methods, techniques, sequences, procedures, safety precautions and programs, and coordination of all portions of the Work with that of all other contractors and Subcontractors, except to the extent that the Contract Documents provide other specific instructions.

Contractor’s responsibilities extend to any plan, method or sequence suggested, but not required by City or specified in the Contract Documents.

From the date of commencement of the Work until either the date on which City formally accepts the Project or the effective date of termination of the Contract, whichever is later, Contractor bears all risks of injury or damage to the Work and the materials and equipment delivered to any Worksite, by any cause including fire, earthquake, wind, weather, vandalism or theft, subject to the limitations of Laws, including Public Contract Code section 7105.
(C) Project Administration. Contractor must provide sufficient and competent administration, staff, and skilled workforce necessary to perform and timely complete the Work in accordance with the Contract Documents.

Before starting the Work, Contractor must designate in writing and provide complete contact information, including telephone numbers and email address, for the officer or employee in Contractor’s organization who is to serve as Contractor’s primary representative for the Project, and who has authority to act on Contractor’s behalf. A Subcontractor may not serve as Contractor’s primary representative.
(D) On-Site Superintendent. Contractor must, at all times during performance of the Work, provide a qualified and competent full-time superintendent acceptable to City, and assistants, as necessary, who must be physically present at the Project site while any aspect of the Work is being performed. The superintendent must have full authority to act and communicate on behalf of Contractor, and Contractor will be bound by the superintendent’s communications to City. City’s approval of the superintendent is required before the Work commences. If City is not satisfied with the superintendent’s performance, City may request a qualified replacement of the superintendent. Failure to comply may result in temporary suspension of the Work, at Contractor’s sole expense and with no extension of Contract Time, until an approved superintendent is physically present to supervise the Work. Contractor must provide written notice to City, as soon as practicable, before replacing the superintendent. (E) Standards. Contractor must, at all times, ensure that the Work is performed in an efficient, skillful manner following best practices and in full compliance with the Contract Documents, Laws, and applicable manufacturer’s recommendations. Contractor has a material and ongoing obligation to provide true and complete information, to the best of its

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knowledge, with respect to all records, documents, or communications pertaining to the Project, including oral or written reports, statements, certifications, Change Order requests, or Claims.
(F) Meetings. Contractor, its project manager, superintendent, and any primary Subcontractors requested by City, must attend a pre-construction conference, if requested by City, as well as weekly Project progress meetings scheduled with City. If applicable, Contractor may also be required to participate in coordination meetings with other parties relating to other work being performed on or near the Project site or in relation to the Project, including work or activities performed by City, other contractors, or other utility owners.
(G) Construction Records. Contractor will maintain up-to-date, thorough, legible, and dated daily job reports, which document all significant activity on the Project for each day that Work is performed on the Project.

The daily report for each day must include the number of workers at the Project site; primary Work activities; major deliveries; problems encountered, including injuries, if any; weather and site conditions; and delays, if any. Contractor will take date and time-stamped photographs to document general progress of the Project, including site conditions prior to construction activities, before and after photographs at offset trench laterals, existing improvements and utilities, damage and restoration.

Contractor will maintain copies of all subcontracts, Project-related correspondence with Subcontractors, and records of meetings with Subcontractors. Upon request by the City, Contractor will permit review of and/or provide copies of any of these construction records. (H) Responsible Party. Contractor is solely responsible to City for the acts or omissions of any Subcontractors, or any other party or parties performing portions of the Work or providing equipment, materials, or services for or on behalf of Contractor or the Subcontractors. Upon City’s written request, Contractor must promptly and permanently remove from the Project, at no cost to City, any employee, Subcontractor, or employee of a Subcontractor who the Engineer has determined to be incompetent, intemperate or disorderly, or who has failed or refused to perform the Work as required under the Contract Documents.
(I) Correction of Defects. Contractor must promptly correct, at Contractor’s sole expense, any Work that is determined by City to be deficient or defective in any way, including workmanship, materials, parts, or equipment. Workmanship, materials, parts, or equipment that do not conform to the requirements under the Contract Documents, as determined by City, will be considered defective and subject to rejection. Contractor must also promptly correct, at Contractor’s sole expense, any Work performed beyond the lines and grades shown on the Plans or established

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by City, and any Extra Work performed without City’s prior written approval.

If Contractor fails to correct or to take reasonable steps toward correcting defective Work within five days following notice from City, or within the time specified in City’s notice to correct, City may elect to have the defective Work corrected by its own forces or by a third party, in which case the cost of correction will be deducted from the Contract Price. If City elects to correct defective Work due to Contractor’s failure or refusal to do so, City or its agents will have the right to take possession of and use any equipment, supplies, or materials available at the Project site or any Worksite on City property, in order to effectuate the correction, at no extra cost to City.

Contractor’s warranty obligations under Section 11.2, Warranty, will not be waived nor limited by City’s actions to correct defective Work under these circumstances. Alternatively, City may elect to retain defective Work, and deduct the difference in value, as determined by the Engineer, from payments otherwise due to Contractor. This paragraph applies to any defective Work performed by Contractor during the one-year warranty period under Section 11.2.
(J) Contractor’s Records. Contractor must maintain all of its records relating to the Project in any form, including paper documents, photos, videos, electronic records, approved samples, and the construction records required pursuant to paragraph (G), above. Project records subject to this provision include complete Project cost records and records relating to preparation of Contractor’s bid, including estimates, take-offs, and price quotes or bids.
(1) Contractor’s cost records must include all supporting documentation, including original receipts, invoices, and payroll records, evidencing its direct costs to perform the Work, including, but not limited to, costs for labor, materials and equipment. Each cost record should include, at a minimum, a description of the expenditure with references to the applicable requirements of the Contract Documents, the amount actually paid, the date of payment, and whether the expenditure is part of the original Contract Price, related to an executed Change Order, or otherwise categorized by Contractor as Extra Work. Contractor’s failure to comply with this provision as to any claimed cost operates as a waiver of any rights to recover the claimed cost.
(2) Contractor must continue to maintain its Project-related records in an organized manner for a period of five years after City’s acceptance of the Project or following Contract termination, whichever occurs first. Subject to prior notice to Contractor, City is entitled to inspect or audit any of Contractor’s records relating to the Project or to investigate Contractor’s plant or equipment during Contractor’s normal business hours. Contractor’s records may also be subject to

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examination and audit by the California State Auditor, pursuant to Government Code Section 8546.7. The record-keeping
requirements set forth in this subsection 2.2(J) will survive expiration or termination of the Contract.
(K) Copies of Project Documents. Contractor and its Subcontractors must keep copies, at the Project site, of all Work-related documents, including the Contract, permit(s), Plans, Specifications, addenda, Contract amendments, Change Orders, RFIs and RFI responses, Shop Drawings, as-built drawings, schedules, daily records, testing and inspection reports or results, and any related written interpretations. These documents must be available to City for reference at all times during construction of the Project.

2.3 Subcontractors.
(A) General. All Work which is not performed by Contractor with its own forces must be performed by Subcontractors. City reserves the right to approve or reject any and all Subcontractors proposed to perform the Work, for reasons including the Subcontractor’s poor reputation, lack of relevant experience, financial instability, and lack of technical ability or adequately trained workforce. Each Subcontractor must obtain a City business license before performing any Work.
(B) Contractual Obligations. Contractor must require each Subcontractor to comply with the provisions of the Contract Documents as they apply to the Subcontractor’s portion(s) of the Work, including the generally applicable terms of the Contract Documents, and to likewise bind their subcontractors. Contractor will provide that the rights that each Subcontractor may have against any manufacturer or supplier for breach of warranty or guarantee relating to items provided by the Subcontractor for the Project, will be assigned to City. Nothing in these Contract Documents creates a contractual relationship between a Subcontractor and City, but City is deemed to be a third-party beneficiary of the contract between Contractor and each Subcontractor. Copies of subcontracts must be available to the Engineer upon request. Before a Subcontractor commences Work on the Project, Contractor must provide the Engineer a written statement with the name of the Subcontractor, a description of each portion of the Work performed by the Subcontractor, and the percentage of the overall Work to be performed by the Subcontractor.
(C) Termination. If the Contract is terminated, each Subcontractor’s agreement must be assigned by Contractor to City, subject to the prior rights of any surety, but only if and to the extent that City accepts, in writing, the assignment by written notification, and assumes all rights and obligations of Contractor pursuant to each such subcontract agreement.

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(D) Substitution of Subcontractor. If Contractor requests substitution of a listed Subcontractor under Public Contract Code Section 4107, Contractor is solely responsible for all costs City incurs in responding to the request, including legal fees and costs to conduct a hearing, and any increased subcontract cost to perform the Work that was to be performed by the listed Subcontractor. If City determines that a Subcontractor is unacceptable to City based on the Subcontractor’s failure to satisfactorily perform its Work, or for any of the grounds for substitution listed in Public Contract Code Section 4107(a), City may request removal of the Subcontractor from the Project. Upon receipt of a written request from City to remove a Subcontractor pursuant to this paragraph, Contractor will immediately remove the Subcontractor from the Project and, at no further cost to City, will either (1) self-perform the remaining Work to the extent that Contractor is duly licensed and qualified to do so, or (2) substitute a Subcontractor that is acceptable to City, in compliance with Public Contract Code Section 4107, as applicable.

2.4 Coordination of Work.
(A) Concurrent Work. City reserves the right to perform, have performed, or permit performance of other work on or adjacent to the Project site while the Work is being performed for the Project. Contractor is responsible for coordinating its Work with other work being performed on or adjacent to the Project site, including by any utility companies or agencies, and must avoid hindering, delaying, or interfering with the work of other contractors, individuals, or entities, and must ensure safe and reasonable site access and use as required or authorized by City. To the full extent permitted by law, Contractor must hold harmless and indemnify City against any and all claims arising from or related to Contractor’s avoidable, negligent, or willful hindrance of, delay to, or interference with the work of any utility company or agency or another contractor or subcontractor. (B) Coordination. If Contractor’s Work will connect or interface with work performed by others, Contractor is responsible for independently measuring and visually inspecting such work to ensure a correct connection and interface. Contractor is responsible for any failure by Contractor or its Subcontractors to confirm measurements before proceeding with connecting Work. Before proceeding with any portion of the Work affected by the construction or operations of others, Contractor must give the Project Manager prompt written notification of any defects Contractor discovers which will prevent the proper execution of the Work. Failure to give notice of any known or reasonably discoverable defects will be deemed acknowledgement by Contractor that the work of others is not defective and will not prevent the proper execution of the Work. Contractor must also promptly notify City if work performed by others, including work or activities performed by City’s own forces, is operating to hinder, delay, or interfere

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with Contractor’s timely performance of the Work. City reserves the right to backcharge Contractor for any additional costs incurred due to Contractor’s failure to comply with the requirements in this Section 2.4.

2.5 Submittals. Unless otherwise specified, Contractor must submit to the Engineer for review and acceptance, all schedules, Shop Drawings, samples, product data and similar submittals required by the Contract Documents, or upon request by the Engineer. Unless otherwise specified, all submittals, including Requests for Information, are subject to the general provisions of this Section, as well as specific submittal requirements that may be included elsewhere in the Contract Documents, including the Special Conditions or Specifications. The Engineer may require submission of a submittal schedule at or before a pre-construction conference, as may be specified in the Notice to Proceed.
(A) General. Contractor is responsible for ensuring that its submittals are accurate and conform to the Contract Documents.
(B) Time and Manner of Submission. Contractor must ensure that its submittals are prepared and delivered in a manner consistent with the current City-accepted schedule for the Work and within the applicable time specified in the Contract Documents, or if no time is specified, in such time and sequence so as not to delay the performance of the Work or completion of the Project.
(C) Required Contents. Each submittal must include the Project name and contract number, Contractor’s name and address, the name and address of any Subcontractor or supplier involved with the submittal, the date, and references to applicable Specification section(s) and/or drawing and detail number(s).
(D) Required Corrections. If corrections are required, Contractor must promptly make and submit any required corrections as specified in full conformance with the requirements of this Section, or other requirements that apply to that submittal.
(E) Effect of Review and Acceptance. Review and acceptance of a submittal by City will not relieve Contractor from complying with the requirements of the Contract Documents. Contractor is responsible for any errors in any submittal, and review or acceptance of a submittal by City is not an assumption of risk or liability by City.
(F) Enforcement. Any Work performed or any material furnished, installed, fabricated, or used without City’s prior acceptance of a required submittal is performed or provided at Contractor’s risk, and Contractor may be required to bear the costs incident thereto, including the cost of removing

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and replacing such Work or material, repairs to other affected portions of the Work or material, and the cost of additional time or services required of City, including costs for the Design Professional, Project Manager, or Inspector.
(G) Excessive RFIs. An RFI will be considered excessive or unnecessary if the City determines that the explanation or response to the RFI is clearly and unambiguously discernable from the Contract Documents. City’s costs to review and respond to excessive or unnecessary RFIs may be deducted from payments otherwise due to Contractor.

2.6 Shop Drawings. When Shop Drawings are required by the Specifications or requested by the Engineer, they must be prepared according to best practices at Contractor’s expense. The Shop Drawings must be of a size and scale to clearly show all necessary details. Unless otherwise specified by City, Shop Drawings must be provided to the Engineer for review and acceptance at least 30 days before the Work will be performed. If City requires changes, the corrected Shop Drawings must be resubmitted to the Engineer for review within the time specified by the Engineer. For all Project components requiring Shop Drawings, Contractor will not furnish materials or perform any Work until the Shop Drawings for those components are accepted by City. Contractor is responsible for any errors or omissions in the Shop Drawings, shop fits and field corrections; any deviations from the Contract Documents; and for the results obtained by the use of Shop Drawings. Acceptance of Shop Drawings by City does not relieve Contractor of Contractor’s responsibility.

2.7 Access to Work. Contractor must afford prompt and safe access to any Worksite by City and its employees, agents, or consultants authorized by City; and upon request by City, Contractor must promptly arrange for City representatives to visit or inspect manufacturing sites or fabrication facilities for items to be incorporated into the Work.

2.8 Personnel. Contractor and its Subcontractors must employ only competent and skillful personnel to perform the Work. Contractor and its Subcontractor’s supervisors, security or safety personnel, and employees who have unescorted access to the Project site must possess proficiency in English sufficient to read, understand, receive, and implement oral or written communications or instructions relating to their respective job functions, including safety and security requirements. Upon written notification from the Engineer, Contractor and its Subcontractors must immediately discharge any personnel who are incompetent, disorderly, disruptive, threatening, abusive, or profane, or otherwise refuse or fail to comply with the requirements of the Contract Documents or Laws, including Laws pertaining to health and safety. Any such discharged personnel may not be re-employed or permitted on the Project in any capacity without City’s prior written consent.

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Article 3 - Contract Documents

3.1 Interpretation of Contract Documents.
(A) Plans and Specifications. The Plans and Specifications included in the Contract Documents are complementary. If Work is shown on one but not on the other, Contractor must perform the Work as though fully described on both, consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results.

The Plans and Specifications are deemed to include and require everything necessary and reasonably incidental to completion of the Work, whether or not particularly mentioned or shown. Contractor must perform all Work and services and supply all things reasonably related to and inferable from the Contract Documents. In the event of a conflict between the Plans and Specifications, the Specifications will control, unless the Plan(s) at issue are dated later than the Specification(s) at issue. Detailed drawings take precedence over general drawings, and large-scale drawings take precedence over smaller scale drawings. Any arrangement or division of the Plans and Specifications into sections is for convenience and is not intended to limit the Work required by separate trades. A conclusion presented in the Plans or Specifications is only a recommendation. Actual locations and depths must be determined by Contractor’s field investigation.

Contractor may request access to underlying or background information in City’s possession that is necessary for Contractor to form its own conclusions.
(B) Duty to Notify and Seek Direction. If Contractor becomes aware of a changed condition in the Project, or of any ambiguity, conflict, inconsistency, discrepancy, omission, or error in the Contract Documents, including the Plans or Specifications, Contractor must promptly submit a Request for Information to the Engineer and wait for a response from City before proceeding further with the related Work. The RFI must notify the City of the issue and request clarification, interpretation, or direction. The Engineer’s clarification, interpretation, or direction will be final and binding on Contractor. If Contractor proceeds with the related Work before obtaining City’s response, Contractor will be responsible for any resulting costs, including the cost of correcting any incorrect or defective Work that results.

Timely submission of a clear and complete RFI is essential to avoiding delay. Delay resulting from Contractor’s failure to submit a timely and complete RFI to the Engineer is Non-Excusable Delay. If Contractor believes that City’s response to an RFI justifies a change to the Contract Price or Contract Time, Contractor must perform the Work as directed, but may submit a timely Change Order request in accordance with the Contract Documents. (See Articles 5 and 6.)

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(C) Figures and Dimensions. Figures control over scaled dimensions. (D) Technical or Trade Terms. Any terms that have well-known technical or trade meanings will be interpreted in accordance with those meanings, unless otherwise specifically defined in the Contract Documents. (E) Measurements. Contractor must verify all relevant measurements in the Contract Documents and at the Project site before ordering any material or performing any Work, and will be responsible for the correctness of those measurements or for costs that could have been avoided by independently verifying measurements.
(F) Compliance with Laws. The Contract Documents are intended to comply with Laws and will be interpreted to comply with Laws.

3.2 Order of Precedence. Information included in one Contract Document but not in another will not be considered a conflict or inconsistency. Unless otherwise specified in the Special Conditions, in case of any conflict or inconsistency among the Contract Documents, the following order of precedence will apply, beginning from highest to lowest, with the most recent version taking precedent over an earlier version:
(A) Change Orders;
(B) Addenda;
(C) Contract;
(D) Notice to Proceed;
(E) Attachment B- Federal Contract Requirements (only if used); (F) Special Conditions;
(G) General Conditions;
(H) Payment and Performance Bonds;
(I) Specifications;
(J) Plans;
(K) Notice of Award
(L) Notice Inviting Bids;
(M) Attachment A – Federal Bidding Requirements (only if used); (N) Instructions to Bidders;
(O) Contractor’s Bid Proposal and attachments;
(P) The City’s standard specifications, as applicable; and (Q) Any generic documents prepared by and on behalf of a third party, that were not prepared specifically for this Project, such as Caltrans Standard Specifications or Caltrans Special Provisions.

3.3 Caltrans Standard Specifications. Any reference to or incorporation of the Standard Specifications of the State of California, Department of Transportation (“Caltrans”), including “Standard Specifications,” “Caltrans Specifications,” “State

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Specifications,” or “CSS,” means the most current edition of Caltrans’ Standard Specifications, unless otherwise specified (“Caltrans Standard Specifications”), including the most current amendments as of the date that Contractor’s bid was submitted for this Project. The following provisions apply to use of or reference to the Caltrans Standard Specifications or Special Provisions:
(A) Limitations. None of the “General Provisions” of the Caltrans Standard Specifications, i.e., sections 1 through 9, applies to these Contract Documents with the exception of any specific provisions, if any, which are expressly stated to apply to these Contract Documents.
(B) Conflicts or Inconsistencies. If there is a conflict or inconsistency between any provision in the Caltrans Standard Specifications or Special Provisions and a provision of these Contract Documents, as determined by City, the provision in the Contract Documents will govern. (C) Meanings. Terms used in the Caltrans Standard Specifications or Special Provisions are to be interpreted as follows:
(1) Any reference to the “Engineer” is deemed to mean the City Engineer.
(2) Any reference to the “Special Provisions” is deemed to mean the Special Conditions, unless the Caltrans Special Provisions are expressly included in the Contract Documents listed in Section 2 of the Contract.
(3) Any reference to the “Department” or “State” is deemed to mean City.

3.4 For Reference Only. Contractor is responsible for the careful review of any document, study, or report provided by the City or appended to the Contract Documents solely for informational purposes and identified as “For Reference Only.” Nothing in any document, study, or report so appended and identified is intended to supplement, alter, or void any provision of the Contract Documents.

Contractor is advised that City or its representatives may be guided by information or recommendations included in such reference documents, particularly when making determinations as to the acceptability of proposed materials, methods, or changes in the Work. Any record drawings or similar final or accepted drawings or maps that are not part of the Contract Documents are deemed to be For Reference Only. The provisions of the Contract Documents are not modified by any perceived or actual conflict with provisions in any document that is provided For Reference Only.

3.5 Current Versions. Unless otherwise specified by City, any reference to standard specifications, technical specifications, or any City or state codes or

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regulations means the latest specification, code or regulation in effect on the date the Contract is signed.

3.6 Conformed Copies. If City prepares a conformed set of the Contract Documents following award of the Contract, it will provide Contractor with two hard copy (paper) sets and one copy of the electronic file in PDF format. It is Contractor’s responsibility to ensure that all Subcontractors, including fabricators, are provided with the conformed set of the Contract Documents at Contractor’s sole expense.

3.7 Ownership. No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from City. Contractor is deemed to have conveyed the copyright in any designs, drawings, specifications, Shop Drawings, or other documents (in paper or electronic form) developed by Contractor for the Project, and City will retain all rights to such works, including the right to possession.

Article 4
Bonds, Indemnity, and Insurance

4.1 Payment and Performance Bonds. Within ten days following issuance of the Notice of Award, Contractor is required to provide a payment bond and a performance bond, each in the penal sum of not less than 100% of the Contract Price, and each executed by Contractor and its surety using the bond forms included with the Contract Documents.
(A) Surety. Each bond must be issued and executed by a surety admitted in California. If an issuing surety cancels the bond or becomes insolvent, within seven days following written notice from City, Contractor must substitute a surety acceptable to City. If Contractor fails to substitute an acceptable surety within the specified time, City may, at its sole discretion, withhold payment from Contractor until the surety is replaced to City’s satisfaction, or terminate the Contract for default. (B) Supplemental Bonds for Increase in Contract Price. If the Contract Price increases during construction by five percent or more over the original Contract Price, Contractor must provide supplemental or replacement bonds within ten days of written notice from City pursuant to this Section, covering 100% of the increased Contract Price and using the bond forms included with the Contract Documents.

4.2 Indemnity. To the fullest extent permitted by law, Contractor must indemnify, defend, and hold harmless City, its Council, officers, officials, employees, agents, volunteers, and consultants, and Design Professional (individually, an “Indemnitee,” and collectively the “Indemnitees”) from and

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against any and all liability, loss, damage, claims, causes of action, demands, charges, fines, costs, and expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in bidding or performing the Work or in failing to comply with any obligation of Contractor under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. This indemnity requirement applies to any Liability arising from alleged defects in the content or manner of submission of Contractor’s bid for the Contract. Contractor’s failure or refusal to timely accept a tender of defense pursuant to this Contract will be deemed a material breach of this Contract. City will timely notify Contractor upon receipt of any third-party claim relating to the Contract, as required by Public Contract Code Section 9201. Contractor waives any right to express or implied indemnity against any Indemnitee. Contractor’s indemnity obligations under this Contract will survive the expiration or any early termination of the Contract.

4.3 Insurance. No later than ten days following issuance of the Notice of Award, Contractor must procure and provide proof of the insurance coverage required by this Section in the form of certificates and endorsements acceptable to City. The required insurance must cover the activities of Contractor and its Subcontractors relating to or arising from the performance of the Work, and must remain in full force and effect at all times during the period covered by the Contract through the date of City’s acceptance of the Project. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or “umbrella” policies, provided each such policy complies with the requirements set forth herein. If Contractor fails to provide any of the required coverage in full compliance with the requirements of the Contract Documents, City may, at its sole discretion, purchase such coverage at Contractor’s expense and deduct the cost from payments due to Contractor, or terminate the Contract for default. Contractor further understands that City reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to Contractor, at any time as deemed necessary to protect the interests of City. The procurement of the required insurance will not be construed to limit Contractor's liability under this Contract or to fulfill Contractor's indemnification obligations under this Contract. (A) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. If the City’s Risk Manager determines that the deductibles and/or self-insured

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retentions are unacceptably high, at City’s option, Contractor must either reduce or eliminate the deductibles and/or self-insured retentions as they apply to City and all required Additional Insured; or must provide a financial guarantee, to City’s satisfaction, guaranteeing payment of losses and related investigation, claim administration, and legal expenses. (B) Policies and Limits. The following insurance policies and limits are required for this Contract unless otherwise specified in the Special Conditions:
(1) Commercial General Liability Insurance (“CGL”).

Contractor shall maintain CGL and must include coverage for liability arising from Contractor’s or its Subcontractor’s acts or omissions in the performance of the Work against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) two million dollars ($2,000,000.00) combined single limit each occurrence and either a general aggregate limit of four million dollars ($4,000,000.00) or a general aggregate limit of two million dollars ($2,000,000.00) as applied on a “per project” or “per location” basis, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
a. CGL policy may not exclude explosion, collapse,
underground excavation hazard, or removal of lateral
support.
b. CGL policy must include contractor’s protected coverage, blanket contractual, and completed operations.

BUILDERS RISK NOT APPLICABLE
(2) Builder’s Risk Insurance: The Builder’s Risk Insurance policy must be issued on occurrence basis, for all-risk coverage (including Flood and Earthquake) on a one hundred percent (100%) completed value basis on the insurable portion of the Project for the benefit of City.
(3) Workers’ Compensation Insurance and Employer’s
Liability: Contractor shall maintain Workers Compensation coverage, as required by law. The policy must comply with the requirements of the California Workers’ Compensation
Insurance and Safety Act and provide protection in the
minimum amount of: (i) One Million Dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of

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such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If Contractor is self-insured, Contractor must provide its Certificate of Permission to SelfInsure, duly authorized by the Department of Industrial Relations.
(4) Automobile Liability: Contractor shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if Contractor does not own automobiles, then Contractor shall maintain Hired/Non-owned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) One Million Dollars ($1,000,000.00) combined single limit, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

POLLUTION LIABILITY NOT APPLICABLE
(5) Pollution (Environmental) Liability: If the performance of Contractor’s work or service under this Contract involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, Contractor shall procure and maintain Pollution Liability covering Contractor's liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Contract. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) One Million Dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater.
(6) Professional Liability:
a. If the performance of Contractor’s work or service under this Contract involves professional and/or technical services (examples include, but are not limited to, architects,
engineers, land surveyors, legal services, and appraisers), Contractor shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum amount of: (i) One Million Dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance

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available to Contractor under Contractor’s combined
insurance policies (including any excess or “umbrella”
policies), whichever is greater. Further, if Contractor maintains a claims-made policy, Contractor shall provide written evidence of such insurance to City for at least five (5) years after the completion of work performed under this Contract.
b. If the performance of Contractor’s work or service under this Contract relates to Information Technology or related
services (examples include, but are not limited to computer programmers, hardware engineers, or other systems
consultants), Contractor shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of:
(i) One Million Dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to Contractor under Contractor’s combined insurance policies (including any excess or “umbrella” policies), whichever is greater. (C) Required Endorsements. Contractor must provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:
(1) For all Policies except Builder’s Risk and Professional Liability:
a. “Waiver of Subrogation” endorsements providing that the carrier agrees to waive any right of subrogation it may have against the City of Morgan Hill and the City’s elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.
(2) General Liability, Automobile, and Pollution Liability:
a. “Additionally Insured” - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations and at least as broad as ISO Form CG 20 37 for completed operations.

b. “Primary and Non-Contributing” - Insurance shall be
endorsed to be primary and non-contributory and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as ISO Form CG 20 01;

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(3) General Liability:
a. “Separation of Insureds” endorsements stating that the inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.
(D) Subcontractors. Contractor must ensure that each Subcontractor is required to maintain the same insurance coverage required under this Section 4.3, with respect to its performance of Work on the Project, including those requirements related to the Additional Insureds and waiver of subrogation, but excluding pollution liability or builder’s risk insurance unless otherwise specified in the Special Conditions. A Subcontractor may be eligible for reduced insurance coverage or limits, but only to the extent approved in writing in advance by the City’s Risk Manager. Contractor must confirm that each Subcontractor has complied with these insurance requirements before the Subcontractor is permitted to begin Work on the Project. Upon request by the City, Contractor must provide certificates and endorsements submitted by each Subcontractor to prove compliance with this requirement. The insurance requirements for Subcontractors do not replace or limit the Contractor’s insurance obligations. (E) Qualification of Insurers. All insurance required pursuant to this Contract must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M. Best's financial strength rating of “A” or better and a financial size rating of “VIII” or better. (F) Certificates. Contractor must furnish City with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, Contractor shall promptly furnish City of Morgan Hill with copies of all policies outlined herein. Each certificate must state that coverage afforded by the policy subject to Contractor’s Contract with City shall not be reduced, canceled, allowed to expire, or materially changed except after 30 days' advance written notice by the insurer to City, unless due to non-payment of premiums, in which case ten days advance written notice must be made to City. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address as follows:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue

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Morgan Hill, CA 95037
(G) Contractor’s Responsibilities. This Section 4.3 establishes the minimum requirements for Contractor’s insurance coverage in relation to this Project, but is not intended to limit Contractor’s ability to procure additional or greater coverage. Contractor is responsible for its own risk assessment and needs and is encouraged to consult its insurance provider to determine what coverage it may wish to carry beyond the minimum requirements of this Section. Contractor is solely responsible for the cost of its insurance coverage, including premium payments, deductibles, or selfinsured retentions, and no Additional Insured will be responsible or liable for any of the cost of Contractor’s insurance coverage.

Article 5
Contract Time

5.1 Time is of the Essence. Time is of the essence in Contractor’s performance and completion of the Work, and Contractor must diligently prosecute the Work and complete it within the Contract Time. (A) General. Contractor must commence the Work on the date indicated in the Notice to Proceed, and must fully complete the Work, in strict compliance with all requirements of the Contract Documents, and within the Contract Time. Contractor may not begin performing the Work before the date specified in the Notice to Proceed
(B) Authorization. Contractor is not entitled to compensation or credit for any Work performed before the date specified in the Notice to Proceed, with the exception of any schedules, submittals, or other requirements, if any, that must be provided or performed before issuance of the Notice to Proceed.
(C) Rate of Progress. Contractor and its Subcontractors must, at all times, provide workers, materials, and equipment sufficient to maintain the rate of progress necessary to ensure full completion of the Work within the Contract Time. If City determines that Contractor is failing to prosecute the Work at a sufficient rate of progress, City may, in its sole discretion, direct Contractor to provide additional workers, materials, or equipment, or to work additional hours or days without additional cost to City, in order to achieve a rate of progress satisfactory to City. If Contractor fails to comply with City’s directive in this regard, City may, at Contractor’s expense, separately contract for additional workers, materials, or equipment or use City’s own forces to achieve the necessary rate of progress. Alternatively, City may terminate the Contract based on Contractor’s default.

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5.2 Schedule Requirements. Contractor must prepare all schedules using standard, commercial scheduling software acceptable to the City, and must provide the schedules in electronic and paper form as requested by the City. In addition to the general scheduling requirements set forth below, Contractor must also comply with any scheduling requirements included in the Special Conditions or in the Technical Specifications. (A) Baseline (As-Planned) Schedule. Within ten calendar days following City’s issuance of the Notice to Proceed (or as otherwise specified in the Notice to Proceed), Contractor must submit to City for review and acceptance a baseline (as-planned) schedule using critical path methodology showing in detail how Contractor plans to perform and fully complete the Work within the Contract Time, including labor, equipment, materials, and fabricated items. The baseline schedule must show the order of the major items of Work and the dates of start and completion of each item, including when the materials and equipment will be procured. The schedule must also include the work of all trades, reflecting anticipated labor or crew hours and equipment loading for the construction activities, and must be sufficiently comprehensive and detailed to enable progress to be monitored on a day-by-day basis. For each activity, the baseline schedule must be dated, provided in the format specified in the Contract Documents or as required by City, and must include, at a minimum, a description of the activity, the start and completion dates of the activity, and the duration of the activity. (1) Specialized Materials Ordering. Within five calendar days following issuance of the Notice to Proceed, Contractor must order any specialized material or equipment for the Work that is not readily available from material suppliers. Contractor must also retain documentation of the purchase order date(s).
(B) City’s Review of Schedules. City will review and may note exceptions to the baseline schedule, and to the progress schedules submitted as required below, to assure completion of the Work within the Contract Time. Contractor is solely responsible for resolving any exceptions noted in a schedule and, within seven days, must correct the schedule to address the exceptions. City’s review or acceptance of Contractor’s schedules will not operate to waive or limit Contractor’s duty to complete the Project within the Contract Time, nor to waive or limit City’s right to assess liquidated damages for Contractor’s unexcused failure to do so.
(C) Progress Schedules. After City accepts the final baseline schedule with no exceptions, Contractor must submit an updated progress schedule and three-week look-ahead schedule, in the format specified by City, for

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review and acceptance with each application for a progress payment, or when otherwise specified by City, until completion of the Work. The updated progress schedule must: show how the actual progress of the Work as constructed to date compares to the baseline schedule; reflect any proposed changes in the construction schedule or method of operations, including to achieve Project milestones within the Contract Time; and identify any actual or potential impacts to the critical path.

Contractor must also submit periodic reports to City of any changes in the projected material or equipment delivery dates for the Project. (1) Float. The progress schedule must show early and late completion dates for each task. The number of days between those dates will be designated as the “float.” Any float belongs to the Project and may be allocated by the Engineer to best serve timely completion of the Project.
(2) Failure to Submit Schedule. Reliable, up-to-date schedules are essential to efficient and cost-effective administration of the Project and timely completion. If Contractor fails to submit a schedule within the time periods specified in this Section, or submits a schedule to which City has noted exceptions that are not corrected, City may withhold up to five percent from payment(s) otherwise due to Contractor until the exceptions are resolved, the schedule is corrected and resubmitted, and City has accepted the schedule. In addition, Contractor’s failure to comply with the schedule requirements in this Section 5.2 will be deemed a material default and a waiver of any claims for Excusable Delay or loss of productivity arising during any period when Contractor is out of compliance, subject only to the limits of Public Contract Code Section 7102.
(D) Recovery Schedule. If City determines that the Work is more than one week behind schedule, within seven days following written notice of such determination, Contractor must submit a recovery schedule, showing how Contractor intends to perform and complete the Work within the Contract Time, based on actual progress to date.
(E) Effect of Acceptance. Contractor and its Subcontractors must perform the Work in accordance with the most current City-accepted schedule unless otherwise directed by City. City’s acceptance of a schedule does not operate to extend the time for completion of the Work or any component of the Work, and will not affect City’s right to assess liquidated damages for Contractor’s unexcused delay in completing the Work within the Contract Time.

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(F) Posting. Contractor must at all times prominently post a copy of the most current City-accepted progress or recovery schedule in its on-site office.
(G) Reservation of Rights. City reserves the right to direct the sequence in which the Work must be performed or to make changes in the sequence of the Work in order to facilitate the performance of work by City or others, or to facilitate City’s use of its property. The Contract Time or Contract Price may be adjusted to the extent such changes in sequence actually increase or decrease Contractor’s time or cost to perform the Work.
(H) Authorized Working Days and Times. Contractor is limited to working Monday through Friday, excluding holidays, during City’s normal business hours, except as provided in the Special Conditions or as authorized in writing by City. City reserves the right to charge Contractor for additional costs incurred by City due to Work performed on days or during hours not expressly authorized in the Contract Documents, including reimbursement of costs incurred for inspection, testing, and construction management services.

5.3 Delay and Extensions of Contract Time.
(A) Notice of Delay. If Contractor becomes aware of any actual or potential delay affecting the critical path, Contractor must promptly notify the Engineer in writing, regardless of the nature or cause of the delay, so that City has a reasonable opportunity to mitigate or avoid the delay. (B) Excusable Delay. The Contract Time may be extended if Contractor encounters “Excusable Delay,” which is an unavoidable delay in completing the Work within the Contract Time due to causes completely beyond Contractor’s control, and which Contractor could not have avoided or mitigated through reasonable care, planning, foresight, or diligence, provided that Contractor is otherwise fully performing its obligations under the Contract Documents. Grounds for Excusable Delay may include fire, natural disasters including earthquake or unusually severe weather, acts of terror or vandalism, epidemic, unforeseeable adverse government actions, unforeseeable actions of third parties, encountering unforeseeable hazardous materials, unforeseeable site conditions, or suspension for convenience under Article 13. The Contract Time will not be extended based on circumstances which will not unavoidably delay completing the Work within the Contract Time based on critical path analysis.
(C) Weather Delays. A “Weather Delay Day” is a Working Day during which Contractor and its forces, including Subcontractors, are unable to

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perform more than 40% of the critical path Work scheduled for that day due to adverse weather conditions which impair the ability to safely or effectively perform the scheduled critical path Work that day. Adverse weather conditions may include rain, saturated soil, and Project site cleanup required due to adverse weather. Determination of what constitutes critical path Work scheduled for that day will be based on the most current, City-approved schedule. Contractor will be entitled to a noncompensable extension of the Contract Time for each Weather Delay Day in excess of the normal Weather Delay Days within a given month as determined by reliable records, including monthly rainfall averages, for the preceding ten years (or as otherwise specified in the Special Conditions or Specifications).
(1) Contractor must fully comply with the applicable procedures in Articles 5 and 6 of the General Conditions regarding requests to modify the Contract Time.
(2) Contractor will not be entitled to an extension of time for a Weather Delay Day to the extent Contractor is responsible for concurrent delay on that day.
(3) Contractor must take reasonable steps to mitigate the consequences of Weather Delay Days, including prudent workforce management and protecting the Work, Project Site, materials, and equipment.
(D) Non-Excusable Delay. Delay which Contractor could have avoided or mitigated through reasonable care, planning, foresight, or diligence is “Non-Excusable Delay.” Contractor is not entitled to an extension of Contract Time or any compensation for Non-Excusable Delay, or for Excusable Delay that is concurrent with Non-Excusable Delay. NonExcusable Delay includes delay caused by:
(1) weather conditions which are normal for the location of the Project, as determined by reliable records, including monthly rainfall averages, for the preceding ten years;
(2) Contractor’s failure to order equipment and materials sufficiently in advance of the time needed for completion of the Work within the Contract Time;
(3) Contractor’s failure to provide adequate notification to utility companies or agencies for connections or services necessary for completion of the Work within the Contract Time;