Morgan Hill City Council
May 6, 2026

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(E) Other Remedies. City’s right to liquidated damages under this Section applies only to damages arising from Contractor’s Non-Excusable Delay or failure to complete the Work within the Contract Time. City retains its right to pursue all other remedies under the Contract for other types of damage, including damage to property or persons, costs or diminution in value from defective materials or workmanship, costs to repair or complete the Work, or other liability caused by Contractor.

Article 6 - Contract Modification

6.1 Contract Modification. Subject to the limited exception set forth in subsection (D) below, any change in the Work or the Contract Documents, including the Contract Price or Contract Time, will not be a valid and binding change to the Contract unless it is formalized in a Change Order, including a “no-cost” Change Order or a unilateral Change Order. Changes in Work will not operate to release, limit, or abridge Contractor’s warranty obligations pursuant to Article 11 or any obligations of Contractor’s bond sureties. (A) City-Directed Changes. City may direct changes in the scope or sequence of Work or the requirements of the Contract Documents, without invalidating the Contract. Such changes may include Extra Work as set forth in subsection (C) below, or deletion or modification of portions of the Work.

Contractor must promptly comply with City-directed changes in the Work in accordance with the intent of the original Contract Documents, even if Contractor and City have not yet reached agreement as to adjustments to the Contract Price or Contract Time for the change in the Work or for the Extra Work. Contractor is not entitled to extra compensation for cost savings resulting from “value engineering” pursuant to Public Contract Code Section 7101, except to the extent authorized in advance by City in writing, and subject to any applicable procedural requirements for submitting a proposal for value engineering cost savings.
(B) Disputes. In the event of a dispute over entitlement to or the amount of a change in Contract Time or a change in Contract Price related to Citydirected change in the Work, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute. Likewise, in the event that City and Contractor dispute whether a portion or portions of the Work are already required by the Contract Documents or constitute Extra Work, or otherwise dispute the interpretation of any portion(s) of the Contract Documents, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to

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diligently prosecute the performance and timely completion of the Work, including the Work in dispute, as directed by City. If Contractor refuses to perform the Work in dispute, City may, acting in its sole discretion, elect to delete the Work from the Contract and reduce the Contract Price accordingly, and self-perform the Work or direct that the Work be performed by others. Alternatively, City may elect to terminate the Contract for convenience or for cause. Contractor’s sole recourse for an unresolved dispute related to changes in the Work or performance of any Extra Work is to comply with the dispute resolution provisions set forth in Article 12, below. (C) Extra Work. City may direct Contractor to perform Extra Work related to the Project. Contractor must promptly perform any Extra Work as directed or authorized by City in accordance with the original Contract Documents, even if Contractor and City have not yet reached agreement on adjustments to the Contract Price or Contract Time for such Extra Work.

If Contractor believes it is necessary to perform Extra Work due to changed conditions, Contractor must promptly notify the Engineer in writing, specifically identifying the Extra Work and the reason(s) the Contractor believes it is Extra Work. This notification requirement does not constitute a Change Order request pursuant to Section 6.2, below. Contractor must maintain detailed daily records that itemize the cost of each element of Extra Work, and sufficiently distinguish the direct cost of the Extra Work from the cost of other Work performed. For each day that Contractor performs Extra Work, or Work that Contractor contends is Extra Work, Contractor must submit no later than the following Working Day, a daily report of the Extra Work performed that day and the related costs, together with copies of certified payroll, invoices, and other documentation substantiating the costs (“Extra Work Report”). The Engineer will make any adjustments to Contractor’s Extra Work Report(s) based on the Engineer’s records of the Work. When an Extra Work Report(s) is agreed on and signed by both City and Contractor, the Extra Work Report(s) will become the basis for payment under a duly authorized and signed Change Order. Failure to submit the required documentation by close of business on the next Working Day is deemed a full and complete waiver for any change in the Contract Price or Contract Time for any Extra Work performed that day.
(D) Minor Changes and RFIs. Minor field changes, including RFI replies from City, that do not affect the Contract Price or Contract Time and that are approved by the Engineer acting within his or her scope of authority, do not require a Change Order. By executing an RFI reply from City, Contractor agrees that it will perform the Work as clarified therein, with no change to the Contract Price or Contract Time.
(E) Remedy for Non-Compliance. Contactor’s failure to promptly comply with a City-directed change is deemed a material breach of the Contract, and in addition to all other remedies available to it, City may, at its

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sole discretion, hire another contractor or use its own forces to complete the disputed Work at Contractor’s sole expense, and may deduct the cost from the Contract Price.

6.2 Contractor Change Order Requests. Contractor must submit a request or proposal for a change in the Work, compensation for Extra Work, or a change in the Contract Price or Contract Time as a written Change Order request or proposal.
(A) Time for Submission. Any request for a change in the Contract Price or the Contract Time must be submitted in writing to the Engineer within 14 calendar days of the date that Contractor first encounters the circumstances, information or conditions giving rise to the Change Order request, even if the total amount of the requested change in the Contract Price or impact on the Contract Time is not yet known at that time. If City requests that Contractor propose the terms of a Change Order, unless otherwise specified in City’s request, Contractor must provide the Engineer with a written proposal for the change in the Contract Price or Contract Time within five working days of receiving City’s request, in a form satisfactory to the Engineer.
(B) Required Contents. Any Change Order request or proposal submitted by Contractor must include a complete breakdown of actual or estimated costs and credits, and must itemize labor, materials, equipment, taxes, insurance, subcontract amounts, and if applicable, Extra Work Reports. Any estimated cost must be updated in writing as soon as the actual amount is known.
(C) Required Documentation. All claimed costs must be fully documented, and any related request for an extension of time or delayrelated costs must be included at that time and in compliance with the requirements of Article 5 of the General Conditions. Upon request, Contractor must permit City to inspect its original and unaltered bidding records, subcontract agreements, subcontract change orders, purchase orders, invoices, or receipts associated with the claimed costs. (D) Required Form. Contractor must use City’s form(s) for submitting all Change Order requests or proposals, unless otherwise specified by City. (E) Certification. All Change Order requests must be signed by Contractor and must include the following certification:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order request are true and correct. Contractor warrants that this Change Order request is comprehensive and complete as to the Work or changes

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referenced herein, and agrees that any known or foreseeable costs, expenses, or time extension requests not included herein, are deemed waived.”

6.3 Adjustments to Contract Price. The amount of any increase or decrease in the Contract Price will be determined based on one of the following methods listed below, in the order listed with unit pricing taking precedence over the other methods. Markup applies only to City-authorized time and material Work, and does not apply to any other payments to Contractor. For Work items or components that are deleted in their entirety, Contractor will only be entitled to compensation only for those direct, actual, and documented costs (including restocking fees), reasonably incurred before Contractor was notified of the City’s intent to delete the Work, with no markup for overhead, profit, or other indirect costs.
(A) Unit Pricing. Amounts previously provided by Contractor in the form of unit prices, either in a bid schedule or in a post-award schedule of values pursuant to Section 8.1 Schedule of Values, will apply to determine the price for the affected Work, to the extent applicable unit prices have previously been provided for that type of Work. No additional markup for overhead, profit, or other indirect costs will be added to the calculation. (B) Lump Sum. A mutually agreed upon, all-inclusive lump sum price for the affected Work with no additional markup for overhead, profit, or other indirect costs;
(C) Time and Materials. On a time and materials basis, if and only to the extent compensation on a time and materials basis is expressly authorized by City in advance of Contractor’s performance of the Work and subject to any not-to-exceed limit. Time and materials compensation for increased costs or Extra Work (but not decreased costs or deleted Work), will include allowed markup for overhead, profit, and other indirect costs, calculated as the total of the following sums, the cumulative total of which may not exceed the maximum markup rate of 15%:
(1) All direct labor costs provided by the Contractor, excluding superintendence, project management, or administrative costs plus 15 percent markup;
(2) All direct material costs provided by the Contractor, including sales tax, plus 15 percent markup;
(3) All direct plant and equipment rental costs provided by the Contractor, plus 15 percent markup;

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(4) All direct additional subcontract costs plus ten percent markup for Work performed by Subcontractors; and
(5) Increased bond or insurance premium costs computed at 1.5% percent of the total of the previous four sums.

6.4 Unilateral Change Order. If the parties dispute the terms of a proposed Change Order, including disputes over the amount of compensation or extension of time that Contractor has requested, the value of deleted or changed Work, what constitutes Extra Work, or quantities used, City may elect to issue a unilateral Change Order, directing performance of the Work, and authorizing a change in the Contract Price or Contract Time for the adjustment to compensation or time that the City believes is merited.

Contractor’s sole recourse to dispute the terms of a unilateral Change Order is to submit a timely Claim pursuant to Article 12, below.

6.5 Non-Compliance Deemed Waiver. Contractor waives its entitlement to any increase in the Contract Price or Contract Time if Contractor fails to fully comply with the provisions of this Article. Contractor will not be paid for unauthorized Extra Work.

Article 7 - General Construction Provisions

7.1 Permits, Fees, Business License, and Taxes.
(A) Permits, Fees, and City Business License. Contractor must obtain and pay for all permits, fees, and licenses required to perform the Work, including a City business license. Contractor must cooperate with and provide notifications to all government agencies with jurisdiction over the Project, as may be required. Contractor must provide City with copies of all records of permits and permit applications, payment of required fees, and any licenses required for the Work.
(B) Taxes. Contractor must pay for all taxes on labor, material, and equipment, except Federal Excise Tax to the extent that City is exempt from Federal Excise Tax.

7.2 Temporary Facilities. Contractor must provide, at Contractor’s sole expense, any and all temporary facilities for the Project, including an onsite staging area for materials and equipment, a field office, sanitary facilities, utilities, storage, scaffolds, barricades, walkways, and any other temporary structure required to safely perform the Work along with any incidental utility services. The location of all temporary facilities must be approved by the City prior to installation. Temporary facilities must be safe and adequate for the intended use, and installed and maintained in accordance with Laws

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and the Contract Documents. Contractor must fence and screen the Project site and, if applicable, any separate Worksites, including the staging area, and its operation must minimize inconvenience to neighboring properties.

Additional provisions pertaining to temporary facilities may be included in the Specifications or Special Conditions.
(A) Utilities. Contractor must install and maintain the power, water, sewer and all other utilities required for the Project site, including the piping, wiring, internet and Wi-Fi connections, and any related equipment necessary to maintain the temporary facilities.
(B) Removal and Repair. Contractor must promptly remove all such temporary facilities when they are no longer needed or upon completion of the Work, whichever comes first. Contractor must promptly repair any damage to City’s property or to other property caused by the installation, use, or removal of the temporary facilities, and must promptly restore the property to its original or intended condition.

7.3 Noninterference and Site Management. Contractor must avoid interfering with City’s use of its property at or adjacent to the Project site, including use of roadways, entrances, parking areas, walkways, and structures.

Contractor must also minimize disruption of access to private property in the Project vicinity. Contractor must coordinate with affected property owners, tenants, and businesses, and maintain some vehicle and pedestrian access to their residences or properties at all times. Temporary access ramps, fencing or other measures must be provided as needed.

Before blocking access to a private driveway or parking lot, Contractor must provide effective notice to the affected parties at least 48 hours in advance of the pending closure and allow them to remove vehicles. Private driveways, residences and parking lots must have access to a roadway during non-Work hours.
(A) Offsite Acquisition. Unless otherwise provided by City, Contractor must acquire, use and dispose of, at its sole expense, any Worksites, licenses, easements, and temporary facilities necessary to access and perform the Work.
(B) Offsite Staging Area and Field Office. If additional space beyond the Project site is needed, such as for the staging area or the field office, Contractor may need to make arrangements with the nearby property owner(s) to secure the space. Before using or occupying any property owned by a third party, Contractor must provide City with a copy of the necessary license agreement, easement, or other written authorization from the property owner, together with a written release from the property owner holding City harmless from any related liability, in a form acceptable to the City Attorney.

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(C) Traffic Management. Contractor must provide traffic management and traffic controls as specified in the Contract Documents, as required by Laws, and as otherwise required to ensure public and worker safety, and to avoid interference with public or private operations or the normal flow of vehicular, bicycle, or pedestrian traffic.

7.4 Signs. No signs may be displayed on or about City’s property, except signage which is required by Laws or by the Contract Documents, without City’s prior written approval as to size, design, and location.

7.5 Project Site and Nearby Property Protections.
(A) General. Contractor is responsible at all times, on a 24-hour basis and at its sole cost for protecting the Work, the Project site, and the materials and equipment to be incorporated into the Work until the City has accepted the Project, excluding any exceptions to acceptance, if any.

Except as specifically authorized by City, Contractor must confine its operations to the area of the Project site indicated in the Plans and Specifications. Contractor is liable for any damage caused by Contractor or its Subcontractors to the Work, City’s property, the property of adjacent or nearby property owners and the work or personal property of other contractors working for City, including damage related to Contractor’s failure to adequately secure the Work or any Worksite.
(1) Subject to City’s approval, Contractor will provide and install safeguards to protect the Work; any Worksite, including the Project site; City’s real or personal property and the real or personal property of adjacent or nearby property owners, including plant and tree protections.
(2) City wastewater systems may not be interrupted. If the Work disrupts existing sewer facilities, Contractor must immediately notify City and establish a plan, subject to City’s approval, to convey the sewage in closed conduits back into the sanitary sewer system.

Sewage must not be permitted to flow in trenches or be covered by backfill.
(3) Contractor must remove with due care, and store at City’s request, any objects or material from the Project site that City will salvage or reuse at another location.
(4) If directed by Engineer, Contractor must promptly repair or replace any property damage, as specified by the Engineer.

However, acting in its sole discretion, City may elect to have the property damage remedied otherwise, and may deduct the cost to

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repair or replace the damaged property from payment otherwise due to Contractor.
(5) Contractor will not permit any structure or infrastructure to be loaded in a manner that will damage or endanger the integrity of the structure or infrastructure.
(B) Securing Project Site. After completion of Work each day, Contractor must secure the Project site and, to the extent feasible, make the area reasonably accessible to the public unless City approves otherwise. All excess materials and equipment not protected by approved traffic control devices must be relocated to the staging area or demobilized.

Trench spoils must be hauled off the Project site daily and open excavations must be protected with steel plates. Contractor and Subcontractor personnel may not occupy or use the Project site for any purpose during non-Work hours, except as may be provided in the Contract Documents or pursuant to prior written authorization from City.
(C) Unforeseen Conditions. If Contractor encounters facilities, utilities, or other unknown conditions not shown on or reasonably inferable from the Plans or apparent from inspection of the Project site, Contractor must immediately notify the City and promptly submit a Request for Information to obtain further directions from the Engineer. Contractor must avoid taking any action which could cause damage to the facilities or utilities pending further direction from Engineer. The Engineer’s written response will be final and binding on Contractor. If Engineer’s subsequent direction to Contractor affects Contractor’s cost or time to perform the Work, Contractor may submit a Change Order request as set forth in Article 6 above. (D) Support; Adjacent Properties. Contractor must provide, install, and maintain all shoring, bracing, and underpinning necessary to provide support to City’s property and adjacent properties and improvements thereon. Contractor must provide notifications to adjacent property owners as may be required by Laws. See also Section 7.15 Trenching of Five Feet or More.
(E) Notification of Property Damage. Contractor must immediately notify the City of damage to any real or personal property resulting from Work on the Project. Contractor must immediately provide a written report to City of any such property damage in excess of $500 (based on estimated cost to repair or replace) within 24 hours of the occurrence. The written report must include: (1) the location and nature of the damage, and the owner of the property, if known; (2) the name and address of each employee of Contractor or any Subcontractor involved in the damage; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder

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report, if applicable. If Contractor is required to file an accident report with another government agency, Contractor will provide a copy of the report to City.

7.6 Materials and Equipment.
(A) General. Unless otherwise specified, all materials and equipment required for the Work must be new, free from defects, and of the best grade for the intended purpose, and furnished in sufficient quantities to ensure the proper and expeditious performance of the Work. Contractor must employ measures to preserve the specified quality and fitness of the materials and equipment. Unless otherwise specified, all materials and equipment required for the Work are deemed to include all components required for complete installation and intended operation, and must be installed in accordance with the manufacturer’s recommendations or instructions.

Contractor is responsible for all shipping, handling, and storage costs associated with the materials and equipment required for the Work.

Contractor is responsible for providing security and protecting the Work and all of the required materials, supplies, tools and equipment at Contractor’s sole cost until City has formally accepted the Project as set forth in Section

11.1, Final Completion. Contractor will not assign, sell, mortgage, or hypothecate any materials or equipment for the Project, or remove any materials or equipment that have been installed or delivered. (B) City-Provided. If the Work includes installation of materials or equipment to be provided by City, Contractor is solely responsible for the proper examination, handling, storage, and installation in accordance with the Contract Documents. Contractor must notify City of any defects discovered in City-provided materials or equipment sufficiently in advance of scheduled use or installation to afford adequate time to procure replacement materials or equipment as needed. Contractor is solely responsible for any loss of or damage to such items which occurs while the items are in Contractor’s custody and control, the cost of which may be offset from the Contract Price and deducted from any payment(s) due to Contractor.
(C) Intellectual Property Rights. Contractor must, at its sole expense, obtain any authorization or license required for use of patented or copyrightprotected materials, equipment, devices or processes that are incorporated into the Work. Contractor’s indemnity obligations in Article 4 apply to any claimed violation of intellectual property rights.

7.7 Substitutions.
(A) “Or Equal.” Any Specification designating a material, product, or thing (collectively “item”) or service by specific brand or trade name,

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followed by the words “or equal,” is intended only to indicate the quality and type of item or service desired, and Contractor may request use of any equal item or service. Unless otherwise stated in the Specifications, any reference to a specific brand or trade name for an item or service that is used solely for the purpose of describing the type of item or service desired, will be deemed to be followed by the words “or equal.” A substitution will only be approved if it is a true “equal” item or service in every aspect of design, function, and quality, as determined by City, including dimensions, weight, maintenance requirements, durability, fit with other elements, and schedule impacts.
(B) Request for Substitution. A post-award request for substitution of an item or service must be submitted in writing to the Engineer for approval in advance, within the applicable time period provided in the Contract Documents. If no time period is specified, the substitution request may be submitted any time within 35 days after the date of award of the Contract, or sufficiently in advance of the time needed to avoid delay of the Work, whichever is earlier.
(C) Substantiation. Any available data substantiating the proposed substitute as an equal item or service must be submitted with the written request for substitution. Contractor’s failure to timely provide all necessary substantiation, including any required test results as soon as they are available, is grounds for rejection of the proposed substitution, without further review.
(D) Burden of Proving Equality. Contractor has the burden of proving, at Contractor’s sole cost, the equality of the proposed substitution. City has sole discretion to determine whether a proposed substitution is equal, and City’s determination is final.
(E) Approval or Rejection. If the proposed substitution is approved, Contractor is solely responsible for any additional costs or time associated with the substituted item or service. If the proposed substitution is rejected, Contractor must, without delay, install the item or use the service as specified by the City.
(F) Contractor’s Obligations. City’s approval of a proposed substitution will not relieve Contractor from any of its obligations under the Contract Documents. In the event Contractor makes an unauthorized substitution, Contractor will be solely responsible for all resulting cost impacts, including the cost of removal and replacement and the impact to other design elements.

7.8 Testing and Inspection.

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(A) General. All materials, equipment, and workmanship used in the Work are subject to inspection and testing by City at all times and at all locations during construction and/or fabrication, including at any Worksite, shops, and yards. All manufacturers’ application or installation instructions must be provided to the Inspector at least ten days prior to the first such application or installation. Contractor must, at all times, make the Work available for testing or inspection. Neither City’s inspection or testing of Work, nor its failure to do so, operate to waive or limit Contractor’s duty to complete the Work in accordance with the Contract Documents. (B) Scheduling and Notification. Contractor must cooperate with City in coordinating the inspections and testing. Contractor must submit samples of materials, at Contractor’s expense, and schedule all tests required by the Contract Documents in time to avoid any delay to the progress of the Work.

Contractor must notify the Engineer no later than noon of the Working Day before any inspection or testing and must provide timely notice to the other necessary parties as specified in the Contract Documents. If Contractor schedules an inspection or test beyond regular Work hours, or on a Saturday, Sunday, or recognized City holiday, Contractor must notify the Engineer at least two Working Days in advance for approval. If approved, Contractor must reimburse City for the cost of the overtime inspection or testing. Such costs, including the City’s hourly costs for required personnel, may be deducted from payments otherwise due to Contractor. (C) Responsibility for Costs. City will bear the initial cost of inspection and testing to be performed by independent consultants retained by City, subject to the following exceptions:
(1) Contractor will be responsible for the costs of any subsequent inspections or tests which are required to substantiate compliance with the Contract Documents, and any associated remediation costs. (2) Contractor will be responsible for inspection costs, at City’s hourly rates, for inspection time lost because the Work is not ready, or Contractor fails to appear for a scheduled inspection.
(3) If any portion of the Work that is subject to inspection or testing is covered or concealed by Contractor prior to the inspection or testing, Contractor will bear the cost of making that portion of the Work available for the inspection or testing required by the Contract Documents, and any associated repair or remediation costs. (4) Contractor is responsible for properly shoring all compaction test sites deeper than five feet below grade, as required under Section 7.15 below.

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(5) Any Work or material that is defective or fails to comply with the requirements of the Contract Documents must be promptly repaired, removed, replaced, or corrected by Contractor, at Contractor’s sole expense, even if that Work or material was previously inspected or included in a progress payment
(D) Contractor’s Obligations. Contractor is solely responsible for any delay occasioned by remediation of defective or noncompliant Work or material. Inspection or testing of the Work does not in any way relieve Contractor of its obligations to perform the Work as specified. Any Work done without the inspection(s) or testing required by the Contract Documents will be subject to rejection by City.
(E) Distant Locations. If required off-site testing or inspection must be conducted at a location more than 100 miles from the Project site, Contractor is solely responsible for the additional travel costs required for testing and/or inspection at such locations.
(F) Final Inspection. The provisions of this Section 7.8 also apply to final inspection under Article 11, Completion and Warranty Provisions.

7.9 Project Site Conditions and Maintenance. Contractor must at all times, on a 24-hour basis and at its sole cost, maintain the Project site and staging and storage areas in clean, neat, and sanitary condition and in compliance with all Laws pertaining to safety, air quality, and dust control. Adequate toilets must be provided, and properly maintained and serviced for all workers on the Project site, located in a suitably secluded area, subject to City’s prior approval. Contractor must also, on a daily basis and at its sole cost, remove and properly dispose of the debris and waste materials from the Project site.
(A) Air Emissions Control. Contractor must not discharge smoke or other air contaminants into the atmosphere in violation of any Laws.

Contractor must comply with all Laws, including the California Air Resources Board’s In-Use Off-Road Diesel-Fueled Fleets Regulation (13 CCR § 2449 et seq.).
(B) Dust and Debris. Contractor must minimize and confine dust and debris resulting from the Work. Contractor must abate dust nuisance by cleaning, sweeping, and immediately sprinkling with water excavated areas of dirt or other materials prone to cause dust, and within one hour after the Engineer notifies Contractor that an airborne nuisance exists. The Engineer may direct that Contractor provide an approved water-spraying truck for this purpose. If water is used for dust control, Contractor will only use the minimum necessary. Contractor must take all necessary steps to keep wastewater out of streets, gutters, or storm drains. See Section 7.19,

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Environmental Control. If City determines that the dust control is not adequate, City may have the work done by others and deduct the cost from the Contract Price. Contractor will immediately remove any excess excavated material from the Project site and any dirt deposited on public streets.
(C) Clean up. Before discontinuing Work in an area, Contractor must clean the area and remove all debris and waste along with the construction equipment, tools, machinery, waste, and surplus materials. (1) Except as otherwise specified, all excess Project materials, and the materials removed from existing improvements on the Project site with no salvage value or intended reuse by City, will be Contractor’s property.
(2) Hauling trucks and other vehicles leaving the Project site must be cleaned of exterior mud or dirt before traveling on City streets.

Materials and loose debris must be delivered and loaded to prevent dropping materials or debris. Contractor must immediately remove spillage from hauling on any publicly traveled way. Streets affected by Work on the Project must be kept clean by street sweeping. (D) Disposal. Contractor must dispose of all Project debris and waste materials in a safe and legal manner. Contractor may not burn or bury waste materials on the Project site. Contractor will not allow any dirt, refuse, excavated material, surplus concrete or mortar, or any associated washings, to be disposed of onto streets, into manholes or into the storm drain system.
(E) Completion. At the completion of the Work, Contractor must remove from the Project site all of its equipment, tools, surplus materials, waste materials and debris., presenting a clean and neat appearance. Before demobilizing from the Project site, Contractor must ensure that all surfaces are cleaned, sealed, waxed, or finished as applicable, and that all marks, stains, paint splatters, and the like have been properly removed from the completed Work and the surrounding areas. Contractor must ensure that all parts of the construction are properly joined with the previously existing and adjacent improvements and conditions. Contractor must provide all cutting, fitting and patching needed to accomplish that requirement. Contractor must also repair or replace all existing improvements that are damaged or removed during the Work, both on and off the Project site, including curbs, sidewalks, driveways, fences, signs, landscaping, utilities, street surfaces and structures. Repairs and replacements must be at least equal to the previously existing improvements, and the condition, finish and dimensions must match the previously existing improvements. Contractor must restore to original condition all property or items that are not designated for

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alteration under the Contract Documents and leave each Worksite clean and ready for occupancy or use by City.
(F) Non-Compliance. If Contractor fails to comply with its maintenance and cleanup obligations or clean up order, City may, acting in its sole discretion, elect to suspend the Work until the condition(s) is corrected with no increase in the Contract Time or Contract Price, or undertake appropriate cleanup measures without further notice and deduct the cost from any amounts due or to become due to Contractor.

7.10 Instructions and Manuals. Contractor must provide to City three copies each of all instructions and manuals required by the Contract Documents, unless otherwise specified. These must be complete as to drawings, details, parts lists, performance data, and other information that may be required for City to easily maintain and service the materials and equipment installed for this Project.
(A) Submittal Requirements. The instructions and manuals, along with any required guarantees, must be delivered to City for review, prior to requesting final inspection pursuant to Section 11.1(A), unless otherwise specified.
(B) Training. Contractor or its Subcontractors must train City’s personnel in the operation and maintenance of any complex equipment or systems as a condition precedent to Final Completion, if required in the Contract Documents.

7.11 As-built Drawings. Contractor and its Subcontractors must prepare and maintain at the Project site a detailed, complete, and accurate as-built set of the Plans which will be used solely for the purpose of recording changes made in any portion of the original Plans in order to create accurate record drawings at the end of the Project.
(A) Duty to Update. The as-built drawings must be updated as changes occur, on a daily basis if necessary. City may withhold the estimated cost for City to have the as-built drawings prepared from payments otherwise due to the Contractor, until the as-built drawings are brought up to date to the satisfaction of City. Actual locations to scale must be identified on the as-built drawings for all runs of mechanical and electrical work, including all site utilities, installed underground, in walls, floors, or otherwise concealed.

Deviations from the original Plans must be shown in detail. The exact location of all main runs, whether piping, conduit, ductwork, or drain lines, must be shown by dimension and elevation. The location of all buried pipelines, appurtenances, or other improvements must be represented by coordinates and by the horizontal distance from visible above-ground improvements.

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(B) Final Completion. Contractor must verify that all changes in the Work are depicted in the as-built drawings and must deliver the complete set of as-built drawings to City for review and acceptance as a condition precedent to Final Completion and Final Payment.

7.12 Existing Utilities.
(A) General. The Work may be performed in developed, urban areas with existing utilities, both above and below ground, including utilities identified in the Contract Documents or in other informational documents or records. Contractor must take due care to locate identified or reasonably identifiable utilities before proceeding with trenching, excavation, or any other activity that could damage or disrupt existing utilities. This may include excavation with small equipment, potholing, or hand excavation, and, if practical, using white paint or other suitable markings to delineate the area to be excavated. Except as otherwise provided herein, Contractor will be responsible for costs resulting from damage to identified or reasonably identifiable utilities due to Contractor’s negligence or failure to comply with the Contract Documents, including the requirements in this Article 7. (B) Unidentified Utilities. Pursuant to Government Code Section 4215, if, during the performance of the Work, Contractor discovers utility facilities not identified by City in the Contract Documents, Contractor must immediately provide written notice to City and the utility. City assumes responsibility for the timely removal, relocation, or protection of existing main or trunkline utility facilities located on the Project site, if those utilities are not identified in the Contract Documents. Contractor will be compensated in accordance with the provisions of the Contract Documents for the costs of locating, repairing damage not due to Contractor’s failure to exercise reasonable care, and removing or relocating such utility facilities not indicated in the Plans or Specifications with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Contractor will not be assessed liquidated damages for delay in completion of the Work, to the extent such delay was caused by City’s failure to provide for removal or relocation of the utility facilities.

7.13 Notice of Excavation. Contractor must comply with all applicable requirements in Government Code Sections 4216 through 4216.5, which are incorporated by reference herein. Government Code Section 4216.2 requires that, except in an emergency, Contractor must contact the appropriate regional notification center, or Underground Services Alert, at least two working days, but not more than fourteen calendar days before starting any excavation if the excavation will be conducted in an area that is known, or reasonably should be known, to contain subsurface installations. Contractor may not begin excavation until it has obtained and

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submitted to Engineer an inquiry identification number from Underground Services Alert.

7.14 Trenching and Excavations of Four Feet or More. As required by Public Contract Code Section 7104, if the Work includes digging trenches or other excavations that extend deeper than four feet below the surface, the provisions in this Section apply to the Work and the Project. (A) Duty to Notify. Contractor must promptly, and before the following conditions are disturbed, provide written notice to City if Contractor finds any of the following conditions:
(1) Material that Contractor believes may be a hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with the provisions of existing Laws;
(2) Subsurface or latent physical conditions at the Project site differing from those indicated by information about the Project site made available to bidders prior to the deadline for submitting bids; or (3) Unknown physical conditions at the Project site of any unusual nature, materially different from those ordinarily encountered and generally recognized as inherent in work of the character required by the Contract Documents.
(B) City Investigation. City will promptly investigate the conditions and if City finds that the conditions materially differ from those indicated, apparent, or reasonably inferred from information about the Project site made available to bidders, or involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, City will issue a Change Order. (C) Disputes. In the event that a dispute arises between City and Contractor regarding any of the conditions specified in subsection (B) above, or the terms of a Change Order issued by the City, Contractor will not be excused from completing the Work within the Contract Time, but must proceed with all Work to be performed under the Contract. Contractor will retain any and all rights provided either by the Contract or by Laws which pertain to the resolution of disputes between Contractor and City.

7.15 Trenching of Five Feet or More. As required by Labor Code Section 6705, if the Contract Price exceeds $25,000 and the Work includes the excavation of any trench or trenches of five feet or more in depth, a detailed plan must be submitted to City for acceptance in advance of the excavation. The detailed plan must show the design of shoring, bracing, sloping, or other

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provisions to be made for worker protection from the hazard of caving ground during the excavation. If the plan varies from the shoring system standards, it must be prepared by a California registered civil or structural engineer. Use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders is prohibited.

7.16 New Utility Connections. Except as otherwise specified, City will pay connection charges and meter costs for new permanent utilities required by the Contract Documents, if any. Contractor must notify City sufficiently in advance of the time needed to request service from each utility provider so that connections and services are initiated in accordance with the Project schedule.

7.17 Lines and Grades. Contractor is required to use any benchmark provided by the Engineer. Unless otherwise specified in the Contract Documents, Contractor must provide all lines and grades required to execute the Work.

Contractor must also provide, preserve, and replace if necessary, all construction stakes required for the Project. All stakes or marks must be set by a California licensed surveyor or a California registered civil engineer.

Contractor must notify the Engineer of any discrepancies found between Contractor’s staking and grading and information provided by the Contract Documents. Upon completion, all Work must conform to the lines, elevations, and grades shown in the Plans, including any changes directed by a Change Order.

7.18 Historic or Archeological Items.
(A) Contractor’s Obligations. Contractor must ensure that all persons performing Work at the Project site are required to immediately notify the Project Manager, upon discovery of any potential historic or archeological items, including historic or prehistoric ruins, a burial ground, archaeological or vertebrate paleontological site, including fossilized footprints or other archeological, paleontological or historical feature on the Project site (collectively, “Historic or Archeological Items”).
(B) Discovery; Cessation of Work. Upon discovery of any potential Historic or Archeological Items, Work must be stopped within an 85-foot radius of the find and may not resume until authorized in writing by City. If required by City, Contractor must assist in protecting or recovering the Historic or Archeological Items, with any such assistance to be compensated as Extra Work on a time and materials basis under Article 6, Contract Modification. At City’s discretion, a suspension of Work required due to discovery of Historic or Archeological Items may be treated as Excusable Delay pursuant to Article 5 or as a suspension for convenience under Article 13.

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7.19 Environmental Control. Contractor must not pollute any drainage course or its tributary inlets with fuels, oils, bitumens, acids, insecticides, herbicides or other harmful materials. Contractor must prevent the release of any hazardous material or hazardous waste into the soil or groundwater, and prevent the unlawful discharge of pollutants into City’s storm drain system and watercourses as required below. Contractor and its Subcontractors must at all times in the performance of the Work comply with all Laws concerning pollution of waterways.
(A) Stormwater Permit. Contractor must comply with all applicable conditions of the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Stormwater Runoff Associated with Construction Activity (“Stormwater Permit”).
(B) Contractor’s Obligations. If required for the Work, a copy of the Stormwater Permit is on file in City’s principal administrative offices, and Contractor must comply with the permit without adjustment of the Contract Price or the Contract Time. Contractor must timely and completely submit required reports and monitoring information required by the conditions of the Stormwater Permit. Contractor must also comply with all other Laws governing discharge of stormwater, including applicable municipal stormwater management programs.

7.20 Noise Control. Contractor must comply with all applicable noise control Laws. Noise control requirements apply to all equipment used for the Work or related to the Work, including trucks, transit mixers or transient equipment that may or may not be owned by Contractor.

7.21 Mined Materials. Pursuant to Public Contract Code § 20676, Contractor will not purchase any sand, gravel, or other minerals for the Work from an operation subject to the Surface Mining and Reclamation Act of 1975 (Public Resources Code Section 2710 et seq.), unless the Contractor certifies, under penalty of perjury, that the minerals are form a mining operation included on the AB 3098 List, which may be accessed online at:
https://www.conservation.ca.gov/smgb/Pages/AB-3098-List.aspx Article 8 - Payment

8.1 Schedule of Values. Prior to submitting its first application for payment, Contractor must prepare and submit to the Project Manager a schedule of values apportioned to the various divisions and phases of the Work, including mobilization and demobilization. If a Bid Schedule was submitted with Contractor’s bid, the amounts in the schedule of values must be consistent with the Bid Schedule. Each line item contained in the schedule

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of values must be assigned a value such that the total of all items equals the Contract Price. The items must be sufficiently detailed to enable accurate evaluation of the percentage of completion claimed in each application for payment, and the assigned value consistent with any itemized or unit pricing submitted with Contractor’s bid. (A) Measurements for Unit Price Work. Materials and items of Work to be paid for on the basis of unit pricing will be measured according to the methods specified in the Contract Documents.
(B) Deleted or Reduced Work. Contractor will not be compensated for Work that City has deleted or reduced in scope, except for any labor, material or equipment costs for such Work that Contractor reasonably incurred before Contractor learned that the Work could be deleted or reduced. Contractor will only be compensated for those actual, direct and documented costs incurred, and will not be entitled to any mark up for overhead or lost profits.

8.2 Progress Payments. Following the last day of each month, or as otherwise required by the Special Conditions or Specifications, Contractor will submit to Project Manager a monthly application for payment for Work performed during the preceding month based on the estimated value of the Work performed during that preceding month.
(A) Application for Payment. Each application for payment must be itemized to include labor, materials, and equipment incorporated into the Work, and materials and equipment delivered to the Project site, as well as authorized and approved Change Orders. Each payment application must be supported by the unit prices submitted with Contractor’s Bid Schedule and/or schedule of values and any other substantiating data required by the Contract Documents. Each application for payment shall be accompanied by completed “Contract Balance Form,” a copy of which is provided at the end of Article 8.
(B) Payment of Undisputed Amounts. City will pay the undisputed amount due within thirty days after Contractor has submitted a complete and accurate payment application, subject to Public Contract Code Section 20104.50. City will deduct a percentage from each progress payment as retention, as set forth in Section 8.5, below, and may deduct or withhold additional amounts as set forth in Section 8.3, below.

8.3 Adjustment of Payment Application. City may adjust or reject the amount requested in a payment application, including application for Final Payment, in whole or in part, if the amount requested is disputed or unsubstantiated.

Contractor will be notified in writing of the basis for the modification to the amount requested. City may also deduct or withhold from payment

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otherwise due based upon any of the circumstances and amounts listed below. Sums withheld from payment otherwise due will be released when the basis for that withholding has been remedied and no longer exists. (A) For Contractor’s unexcused failure to perform the Work as required by the Contract Documents, including correction or completion of punch list items. City may withhold or deduct an amount based on the City’s estimated cost to correct or complete the Work.
(B) For loss or damage caused by Contractor or its Subcontractors arising out of or relating to performance of the Work, or any failure to protect the Project site, City may deduct an amount based on the estimated cost to repair or replace.
(C) For Contractor’s failure to pay its Subcontractors and suppliers when payment is due. City may withhold an amount equal to the total of past due payments and may opt to pay that amount separately via joint check pursuant to Section 8.6(B), Joint Checks.
(D) For Contractor’s failure to timely correct rejected, nonconforming, or defective Work. City may withhold or deduct an amount based on the City’s estimated cost to correct or complete the Work.
(E) For any unreleased stop notice, City may withhold 125% of the amount claimed.
(F) For Contractor’s failure to submit any required schedule or schedule update in the manner specified or within the time specified in the Contract Documents, City may withhold an amount equal to five percent of the total amount requested until Contractor complies with its schedule submittal obligations.
(G) For Contractor’s failure to maintain or submit as-built documents in the manner specified or within the time specified in the Contract Documents; City may withhold or deduct an amount based on the City’s cost to prepare the as-builts.
(H) For Work performed without City-accepted Shop Drawings, when accepted Shop Drawings are required before proceeding with the Work, City may deduct an amount based on the estimated cost to correct unsatisfactory Work or diminution in value.
(I) For fines, payments, or penalties assessed under the Labor Code, City may deduct from payments due to Contractor as required by Laws and as directed by the Division of Labor Standards Enforcement.

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(J) For any other fines, payments, or penalties assessed against the City relating to Contractor’s acts or omissions, including violations of Laws, City may withhold or deduct such amounts from payment otherwise due to Contractor.
(K) For any other costs or charges that may be withheld or deducted from payments to Contractor, as provided in the Contract Documents, including liquidated damages, City may withhold or deduct such amounts from payment otherwise due to Contractor.

8.4 Early Occupancy. Neither City’s payment of progress payments nor its partial or full use or occupancy of the Project constitutes acceptance of any part of the Work.

8.5 Retention. City will retain five percent of the full amount due on each progress payment (i.e., the amount due before any withholding or deductions pursuant to Section 8.3, Adjustment of Payment Application), or the percentage stated in the Notice Inviting Bids, whichever is greater, as retention to ensure full and satisfactory performance of the Work. Contractor is not entitled to any reduction in the rate of withholding at any time, nor to release of any retention before 35 days following City’s recordation of the Notice of Completion, subject to the terms of Public Contract Code § 7107.. (A) Substitution of Securities. As provided by Public Contract Code Section 22300, Contractor may request in writing that it be allowed, at its sole expense, to substitute securities for the retention withheld by City. Any escrow agreement entered into pursuant to this provision must fully comply with Public Contract Code Section 22300, and will be subject to approval as to form by City’s legal counsel. If City exercises its right to draw upon such securities in the event of default pursuant to section (7) of the statutory Escrow Agreement for Security Deposits in Lieu of Retention, pursuant to subdivision (g) of Public Contract Code Section 22300 (“Escrow Agreement”), and if Contractor disputes that it is in default, its sole remedy is to comply with the dispute resolution procedures in Article 12 and the provisions therein. It is agreed that for purposes of this paragraph, an event of default includes City’s rights pursuant to these Contract Documents to withhold or deduct sums from retention, including withholding or deduction for liquidated damages, incomplete or defective Work, stop payment notices, or backcharges. It is further agreed that if any individual authorized to give or receive written notice on behalf of a party pursuant to section (10) of the Escrow Agreement are unavailable to give or receive notice on behalf of that party due to separation from employment, retirement, death, or other circumstances, the successor or delegee of the named individual is deemed to be the individual authorized to give or receive notice pursuant to section (10) of the Escrow Agreement.

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(B) Release of Undisputed Retention. All undisputed retention, less any amounts that may be assessed as liquidated damages, retained for stop notices, or otherwise withheld pursuant to Section 8.3 Adjustment of Payment Application will be released as Final Payment to Contractor no sooner than 35 days following recordation of the notice of completion, and no later than 60 days following acceptance of the Project by City’s governing body or authorized designee pursuant to Section 11.1(C) Acceptance, or, if the Project has not been accepted, no later than 60 days after the Project is otherwise considered complete pursuant to Public Contract Code Section 7107(c).

8.6 Payment to Subcontractors and Suppliers. Each month, Contractor must promptly pay each Subcontractor and supplier the value of the portion of labor, materials, and equipment incorporated into the Work or delivered to the Project site by the Subcontractor or supplier during the preceding month. Such payments must be made in accordance with the requirements of Laws pertaining to such payments, and those of the Contract Documents and applicable subcontract or supplier contract.
(A) Withholding for Stop Notice. Pursuant to Civil Code Section 9358, City will withhold 125% of the amount claimed by an unreleased stop notice, a portion of which may be retained by City for the costs incurred in handling the stop notice claim, including attorneys’ fees and costs, as authorized by law.
(B) Joint Checks. City reserves the right, acting in its sole discretion, to issue joint checks made payable to Contractor and a Subcontractor or supplier, if City determines this is necessary to ensure fair and timely payment to Subcontractor or supplier who has provided services or goods for the Project. As a condition to release of payment by a joint check, the joint check payees may be required to execute a joint check agreement in a form provided or approved by the City Attorney’s Office. The joint check payees will be jointly and severally responsible for the allocation and disbursement of funds paid by joint check. Payment by joint check will not be construed to create a contractual relationship between City and a Subcontractor or supplier of any tier beyond the scope of the joint check agreement.

8.7 Final Payment. Contractor’s application for Final Payment must comply with the requirements for submitting an application for a progress payment as stated in Section 8.2, above. Corrections to previous progress payments, including adjustments to estimated quantities for unit priced items, may be included in the Final Payment. If Contractor fails to submit a timely application for Final Payment, City reserves the right to unilaterally process and issue Final Payment without an application from Contractor in order to close out the Project. For the purposes of determining the deadline for Claim

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submission pursuant to Article 12, the date of Final Payment is deemed to be the date that City acts to release undisputed retention as final payment to Contractor, or otherwise provides written notice to Contractor of Final Payment or that no undisputed funds remain available for Final Payment due to offsetting withholdings or deductions pursuant to Section 8.3, Adjustment of Payment Application. If the amount due from Contractor to City exceeds the amount of Final Payment, City retains the right to recover the balance from Contractor or its sureties.

8.8 Release of Claims. City may, at any time, require that payment of the undisputed portion of any progress payment or Final Payment be contingent upon Contractor furnishing City with a written waiver and release of all claims against City arising from or related to the portion of Work covered by those undisputed amounts, subject to the limitations of Public Contract Code Section 7100. Any disputed amounts may be specifically excluded from the release.

8.9 Warranty of Title. Contractor warrants that title to all work, materials, or equipment incorporated into the Work and included in a request for payment will pass over to City free of any claims, liens, or encumbrances upon payment to Contractor.

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CONTRACT BALANCE FORM
________________________________________________
Note: A detailed invoice MUST be attached to this Contract Balance Form.

CONTRACTOR NAME: DATE:

MAILING ADDRESS: TELEPHONE NO.:

FAX NO.:

PROJECT NO.:

INVOICE NO.: _______________________

1. ORIGINAL CONTRACT AMOUNT: $

2. APPROVED CHANGE ORDERS TOTAL: $

3. REVISED CONTRACT AMOUNT: (1+2) $

4. PREVIOUS BALANCE PAID: $

5. REMAINING BALANCE: (3-4) $

6. CURRENT PROGRESS PAYMENT DUE: $
(before retention)

7. 5% RETENTION FROM WORK DONE: (-)$

8. CURRENT BALANCE DUE: (6-7) $

9. REMAINING BALANCE OF REVISED (5-8) $
(including retention)

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Article 9 - Labor Provisions

9.1 Discrimination Prohibited. Discrimination against any prospective or present employee engaged in the Work on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status is strictly prohibited. Contractor and its Subcontractors are required to comply with all applicable Laws prohibiting discrimination, including the California Fair Employment and Housing Act (Government Code Section 12900 et seq.), Government Code Section 11135, and Labor Code Sections 1735, 1777.5, 1777.6, and 3077.5.

9.2 Labor Code Requirements.
(A) Eight Hour Day. Pursuant to Labor Code Section 1810, eight hours of labor constitute a legal day’s work under this Contract. (B) Penalty. Pursuant to Labor Code Section 1813, Contractor will forfeit to City as a penalty, the sum of $25.00 for each day during which a worker employed by Contractor or any Subcontractor is required or permitted to work more than eight hours in any one calendar day or more than 40 hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815.
(C) Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference. (D) Notices. Pursuant to Labor Code Section 1771.4, Contractor is required to post all job site notices prescribed by Laws.

9.3 Prevailing Wages. Each worker performing Work under this Contract that is covered under Labor Code Sections 1720, 1720.3, or 1720.9, including cleanup at the Project site, must be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr.

Contractor must post a copy of the applicable prevailing rates at the Project site.
(A) Penalties. Pursuant to Labor Code Section 1775, Contractor and any Subcontractor will forfeit to City as a penalty up to $200.00 for each calendar day, or portion of a day, for each worker paid less than the applicable prevailing wage rate. Contractor must also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

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(B) Federal Requirements. If this Project is subject to federal prevailing wage requirements in addition to California prevailing wage requirements, Contractor and its Subcontractors are required to pay the higher of the currently applicable state or federal prevailing wage rates.

9.4 Payroll Records. Contractor must comply with the provisions of Labor Code Sections 1771.4, 1776, and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.
(A) Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct; and
(2) Contractor or Subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any Work performed by its employees on the Project.
(B) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.
(C) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or Subcontractor has ten days in which to comply with the requirements of this section. If Contractor or Subcontractor fails to do so within the ten-day period, Contractor or Subcontractor will forfeit a penalty of $100.00 per day, or portion of a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

9.5 Labor Compliance. Pursuant to Labor Code Section 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the DIR.

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9.6 Wage Theft Prevention. Compliance with Wage and Hour Laws:

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

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

Prior Judgments against Contractor and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, CONTRACTOR AFFIRMS THAT IT HAS

DISCLOSED ANY FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT –

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

AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY
REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Contractor or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or Contractor learns of such a judgment, decision, or order that was not previously disclosed, Contractor shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. Contractor and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision or order within five (5) days of satisfying the final judgment, decision or order. The City reserves the right to require Contractor to enter into an agreement with the City regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where Contractor or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, the City reserves the right to withhold

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payment to Contractor until such judgment, decision or order has been satisfied in full.

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

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

Article 10 - Safety Provisions

10.1 Safety Precautions and Programs. Contractor and its Subcontractors are fully responsible for safety precautions and programs, and for the safety of persons and property in the performance of the Work. Contractor and its Subcontractors must at all times comply with all applicable health and safety Laws and seek to avoid injury, loss, or damage to persons or property by taking reasonable steps to protect its employees and other persons at any Worksite, materials and equipment stored on or off site, and property at or adjacent to any Worksite.
(A) Reporting Requirements. Contractor must immediately notify the City of any death, serious injury or illness resulting from Work on the Project.

Contractor must immediately provide a written report to City of each recordable accident or injury occurring at any Worksite within 24 hours of the occurrence. The written report must include: (1) the name and address of the injured or deceased person; (2) the name and address of each employee of Contractor or of any Subcontractor involved in the incident; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder report, if applicable. If Contractor is required to file an accident report with a government agency, Contractor will provide a copy of the report to City.
(B) Legal Compliance. Contractor’s safety program must comply with the applicable legal and regulatory requirements. Contractor must provide City with copies of all notices required by Laws.

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(C) Contractor’s Obligations. Any damage or loss caused by Contractor arising from the Work which is not insured under property insurance must be promptly remedied by Contractor.
(D) Remedies. If City determines, in its sole discretion, that any part of the Work or Project site is unsafe, City may, without assuming responsibility for Contractor’s safety program, require Contractor or its Subcontractor to cease performance of the Work or to take corrective measures to City’s satisfaction. If Contractor fails to promptly take the required corrective measures, City may perform them and deduct the cost from the Contract Price. Contractor agrees it is not entitled to submit a Claim for damages, for an increase in Contract Price, or for a change in Contract Time based on Contractor’s compliance with City’s request for corrective measures pursuant to this provision.

10.2 Hazardous Materials. Unless otherwise specified in the Contract Documents, this Contract does not include the removal, handling, or disturbance of any asbestos or other Hazardous Materials. If Contractor encounters materials on the Project site that Contractor reasonably believes to be asbestos or other Hazardous Materials, and the asbestos or other Hazardous Materials have not been rendered harmless, Contractor may continue Work in unaffected areas reasonably believed to be safe, but must immediately cease work on the area affected and report the condition to City. No asbestos, asbestos-containing products or other Hazardous Materials may be used in performance of the Work.

10.3 Material Safety. Contractor is solely responsible for complying with Section 5194 of Title 8 of the California Code of Regulations, including by providing information to Contractor’s employees about any hazardous chemicals to which they may be exposed in the course of the Work. A hazard communication program and other forms of warning and training about such exposure must be used. Contractor must also maintain Safety Data Sheets (“SDS”) at the Project site, as required by Law, for materials or substances used or consumed in the performance of the Work. The SDS will be accessible and available to Contractor’s employees, Subcontractors, and City.
(A) Contractor Obligations. Contractor is solely responsible for the proper delivery, handling, use, storage, removal, and disposal of all materials brought to the Project site and/or used in the performance of the Work. Contractor must notify the Engineer if a specified product or material cannot be used safely.
(B) Labeling. Contractor must ensure proper labeling on any material brought onto the Project site so that any persons working with or in the vicinity of the material may be informed as to the identity of the material,

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any potential hazards, and requirements for proper handling, protections, and disposal.

10.4 Hazardous Condition. Contractor is solely responsible for determining whether a hazardous condition exists or is created during the course of the Work, involving a risk of bodily harm to any person or risk of damage to any property. If a hazardous condition exists or is created, Contractor must take all precautions necessary to address the condition and ensure that the Work progresses safely under the circumstances. Hazardous conditions may result from, but are not limited to, use of specified materials or equipment, the Work location, the Project site condition, the method of construction, or the way any Work must be performed.

10.5 Emergencies. In an emergency affecting the safety or protection of persons, Work, or property at or adjacent to any Worksite, Contractor must take reasonable and prompt actions to prevent damage, injury, or loss, without prior authorization from the City if, under the circumstances, there is inadequate time to seek prior authorization from the City.

Article 11 - Completion and Warranty Provisions

11.1 Final Completion.
(A) Final Inspection and Punch List. When the Work required by this Contract is fully performed, Contractor must provide written notification to City requesting final inspection. The Engineer will schedule the date and time for final inspection, which must include Contractor’s primary representative for the Project and its superintendent. Based on that inspection, City will prepare a punch list of any items that are incomplete, missing, defective, incorrectly installed, or otherwise not compliant with the Contract Documents The punch list to Contractor will specify the time by which all of the punch list items must be completed or corrected. The punch list may include City’s estimated cost to complete each punch list item if Contractor fails to do so within the specified time. The omission of any noncompliant item from a punch list will not relieve Contractor from fulfilling all requirements of the Contract Documents. Contractor’s failure to complete any punch list item within the time specified in the punch list will not waive or abridge its warranty obligations for any such items that must be completed by the City or by a third party retained by the City due to Contractor’s failure to timely complete any such outstanding item. (B) Requirements for Final Completion. Final Completion will be achieved upon completion or correction of all punch list items, as verified by City’s further inspection, and upon satisfaction of all other Contract requirements, including any commissioning required under the Contract Documents, and submission of all final submittals, including instructions

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and manuals as required under Section 7.10, and complete, final as-built drawings as required under Section 7.11, all to City’s satisfaction. (C) Acceptance. The Project will be considered accepted upon City Council action during a public meeting to accept the Project, unless the Engineer is authorized to accept the Project, in which case the Project will be considered accepted upon the date of the Engineer’s issuance of a written notice of acceptance. In order to avoid delay of Project close out, the City may elect, acting in its sole discretion, to accept the Project as complete subject to exceptions for punch list items that are not completed within the time specified in the punch list.
(D) Final Payment and Release of Retention. Final Payment and release of retention, less any sums withheld pursuant to the provisions of the Contract Documents, will not be made sooner than 35 days after recordation of the notice of completion. If Contractor fails to complete all of the punch list items within the specified time, City may withhold up to 150% of City’s estimated cost to complete each of the remaining items from Final Payment and may use the withheld retention to pay for the costs to selfperform the outstanding items or to retain a third party to complete any such outstanding punch list item.

11.2 Warranty.
(A) General. Contractor warrants that all materials and equipment will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials.

Contractor further warrants that the Work will be free from material defects not intrinsic in the design or materials required in the Contract Documents.

Contractor warrants that materials or items incorporated into the Work comply with the requirements and standards in the Contract Documents, including compliance with Laws, and that any Hazardous Materials encountered or used were handled as required by Laws. At City’s request, Contractor must furnish satisfactory evidence of the quality and type of materials and equipment furnished. Contractor’s warranty does not extend to damage caused by normal wear and tear, or improper use or maintenance.
(B) Warranty Period. Contractor’s warranty must guarantee its Work for a period of one year from the date of Project acceptance (the “Warranty Period”), except when a longer guarantee is provided by a supplier or manufacturer or is required by the Specifications or Special Conditions.

Contractor must obtain from its Subcontractors, suppliers and manufacturers any special or extended warranties required by the Contract Documents.

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(C) Warranty Documents. As a condition precedent to Final Completion, Contractor must supply City with all warranty and guarantee documents relevant to equipment and materials incorporated into the Work and guaranteed by their suppliers or manufacturers.
(D) Subcontractors. The warranty obligations in the Contract Documents apply to Work performed by Contractor and its Subcontractors, and Contractor expressly agrees to be co-guarantor of such Work. (E) Contractor’s Obligations. Upon written notice from City to Contractor of any defect in the Work discovered during the Warranty Period, Contractor or its responsible Subcontractor must promptly correct the defective Work at its own cost. Contractor’s obligation to correct defects discovered during the Warranty Period will continue past the expiration of the Warranty Period as to any defects in Work for which Contractor was notified prior to expiration of the Warranty Period. Work performed during the Warranty Period (“Warranty Work”) will be subject to the warranty provisions in this Section 11.2 for a one-year period that begins upon completion of such Warranty Work to City’s satisfaction. (F) City’s Remedies. If Contractor or its responsible Subcontractor fails to correct defective Work within ten days following notice by City, or sooner, if required by the circumstances, City may correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor must reimburse City for its costs in accordance with subsection (H) below. (G) Emergency Repairs. In cases of emergency where any delay in correcting defective Work could cause harm, loss or damage, City may immediately correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor or its surety must reimburse City for its costs in accordance with subsection (H), below.
(H) Reimbursement. Contractor must reimburse City for its costs to repair under subsections (F) or (G), above, within 30 days following City’s submission of a demand for payment pursuant to this provision. If City is required to initiate legal action to compel Contractor’s compliance with this provision, and City is the prevailing party in such action, Contractor and its surety are solely responsible for all of City’s attorney’s fees and legal costs expended to enforce Contractor’s warranty obligations herein in addition to any and all costs City incurs to correct the defective Work.

11.3 Use Prior to Final Completion. City reserves the right to occupy or make use of the Project, or any portions of the Project, prior to Final Completion if City has determined that the Project or portion of it is in a condition suitable for the proposed occupation or use, and that it is in its best interest to occupy or make use of the Project, or any portions of it, prior to Final Completion.

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City will notify Contractor in writing of its intent to occupy or make use of the Project or any portions of the Project, pursuant to this provision. (A) Non-Waiver. Occupation or use of the Project, in whole or in part, prior to Final Completion will not operate as acceptance of the Work or any portion of it, nor will it operate as a waiver of any of City’s rights or Contractor’s duties pursuant to these Contract Documents, and will not affect nor bear on the determination of the time of substantial completion with respect to any statute of repose pertaining to the time for filing an action for construction defect.
(B) City’s Responsibility. City will be responsible for the cost of maintenance and repairs due to normal wear and tear with respect to those portions of the Project that are being occupied or used before Final Completion. The Contract Price or the Contract Time may be adjusted pursuant to the applicable provisions of these Contract Documents if, and only to the extent that, any occupation or use under this Section actually adds to Contractor’s cost or time to complete the Work within the Contract Time.

11.4 Substantial Completion. For purposes of determining “substantial completion” with respect to any statute of repose pertaining to the time for filing an action for construction defect, “substantial completion” is deemed to mean the last date that Contractor or any Subcontractor performs Work on the Project prior to City acceptance of the Project, except for warranty work performed under this Article.

Article 12 - Dispute Resolution

12.1 Claims. This Article applies to and provides the exclusive procedures for any Claim arising from or related to the Contract or performance of the Work.
(A) Limitations. A Claim may only include the portion of a previously rejected demand that remains in dispute between Contractor and City. With the exception of any dispute regarding the amount of money actually paid to Contractor as Final Payment, Contractor is not entitled to submit a Claim demanding a change in the Contract Time or the Contract Price, which has not previously been submitted to City in full compliance with Article 5 and Article 6, and subsequently rejected in whole or in part by City. (B) Scope of Article. This Article is intended to provide the exclusive procedures for submission and resolution of Claims of any amount, and applies in addition to the provisions of Public Contract Code Section 9204

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and Sections 20104 et seq., which are incorporated herein by this reference.
(C) No Work Delay. Notwithstanding the submission of a Claim or any other dispute between the parties related to the Project or the Contract Documents, Contractor must perform the Work and may not delay or cease Work pending resolution of a Claim or other dispute, but must continue to diligently prosecute the performance and timely completion of the Work, including the Work pertaining to a Claim or other dispute. (D) Informal Resolution. Contractor will make a good faith effort to informally resolve a dispute before initiating a Claim, preferably by face-toface meeting between authorized representatives of Contractor and City.

12.2 Claims Submission. The following requirements apply to any Claim subject to this Article:
(A) Substantiation. The Claim must be submitted to City in writing by registered or certified mail with return receipt requested and clearly identified as a “Claim” submitted pursuant to this Article 12. The Claim must include all of the documents necessary to substantiate the Claim including the Change Order request that was rejected in whole or in part, and a copy of City’s written rejection that is in dispute. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Contract Documents, and a chronology of relevant events.

Any Claim for additional payment must include a complete, itemized breakdown of all known or estimated labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each component of claimed cost. Any Claim for an extension of time or delay costs must be substantiated with a schedule analysis and narrative depicting and explaining claimed time impacts. Contractor understands that submission of a Claim which has no basis in fact or which Contractor knows to be false may violate the False Claims Act (Government Code Section 12650 et seq.).
(B) Claim Format and Content. A Claim must be submitted in the following format:
(1) Provide a cover letter, specifically identifying the submission as a “Claim” submitted under this Article 12 and specifying the requested remedy (e.g., amount of proposed change to Contract Price and/or change to Contract Time).
(2) Provide a summary of each Claim, including underlying facts and the basis for entitlement, and identify each specific demand at issue,

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including the specific Change Order request (by number and submittal date), and the date of City's rejection of that demand, in whole or in part.
(3) Provide a detailed explanation of each issue in dispute. For multiple issues included within a single Claim or for multiple Claims submitted concurrently, separately number and identify each individual issue or Claim and include the following for each separate issue or Claim:
(a) A succinct statement of the matter in dispute, including Contractor’s position and the basis for that position;
(b) Identify and attach all documents that substantiate the Claim, including relevant provisions of the Contract
Documents, RFIs, calculations, and schedule analysis (see subsection (A), Substantiation above);
(c) A chronology of relevant events; and
(d) Analysis and basis for claimed changes to Contract Price, Contract Time, or any other remedy requested.
(4) Provide a summary of issues and corresponding claimed damages. If, by the time of the Claim submission deadline (below), the precise amount of the requested change in the Contract Price or Contract Time is not yet known, Contractor must provide a good faith estimate, including the basis for that estimate, and must identify the date by which it is anticipated that the Claim will be updated to provide final amounts.
(5) Include the following certification, executed by Contractor’s authorized representative:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Claim submittal are true and correct. Contractor warrants that this Claim submittal is comprehensive and complete as to the matters in dispute, and agrees that any costs, expenses, or delay not included herein are deemed waived.
(C) Submission Deadlines.
(1) A Claim disputing rejection of a request for a change in the Contract Time or Contract Price must be submitted within 21 days following the date that City notified Contractor in writing that a

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request for a change in the Contract Time or Contract Price, duly submitted in compliance with Article 5 and Article 6, has been rejected in whole or in part. A Claim disputing the terms of a unilateral Change Order must be submitted within 21 days following the date of issuance of the unilateral Change Order. These Claim deadlines apply even if Contractor cannot yet quantify the total amount of any requested change in the Contract Time or Contract Price. If the Contractor cannot quantify those amounts, it must submit an estimate of the amounts claimed pending final determination of the requested remedy by Contractor.
(2) With the exception of any dispute regarding the amount of Final Payment, any Claim must be filed on or before the date of Final Payment, or will be deemed waived.
(3) A Claim disputing the amount of Final Payment must be submitted within 21 days of the effective date of Final Payment, under Section 8.7, Final Payment, above.
(4) Strict compliance with these Claim submission deadlines is necessary to ensure that any dispute may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project.

Any Claim that is not submitted within the specified deadlines will be deemed waived by Contractor.

12.3 City’s Response. City will respond within 45 days of receipt of the Claim with a written statement identifying which portion(s) of the Claim are disputed, unless the 45-day period is extended by mutual agreement of City and Contractor or as otherwise allowed under Public Contract Code Section 9204. However, if City determines that the Claim is not adequately substantiated pursuant to Section 12.2(A), Substantiation, City may first request, in writing, within 30 days of receipt of the Claim, any additional documentation supporting the Claim or relating to defenses to the Claim that City may have against the Claim.
(A) Additional Information. If additional information is thereafter required, it may be requested and provided upon mutual agreement of City and Contractor. If Contractor’s Claim is based on estimated amounts, Contractor has a continuing duty to update its Claim as soon as possible with information on actual amounts in order to facilitate prompt and fair resolution of the Claim.
(B) Non-Waiver. Any failure by City to respond within the times specified above will not be construed as acceptance of the Claim in whole or in part, or as a waiver of any provision of these Contract Documents.

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12.4 Meet and Confer. If Contractor disputes City’s written response, or City fails to respond within the specified time, within 15 days of receipt of City’s response, or within 15 days of City’s failure to respond within the applicable 45-day time period under Section 12.3, respectively, Contractor may notify City of the dispute in writing sent by registered or certified mail, return receipt requested and demand an informal conference to meet and confer for settlement of the issues in dispute. If Contractor fails to notify of the dispute, and demand an informal conference to meet and confer City in writing within the specified time, Contractor’s Claim will be deemed waived. (A) Schedule Meet and Confer. Upon receipt of the demand to meet and confer, City will schedule the meet and confer conference to be held within 30 days, or later if needed to ensure the mutual availability of each of the individuals that each party requires to represent its interests at the meet and confer conference.
(B) Location for Meet and Confer. The meet and confer conference will be scheduled at a location at or near City’s principal office. (C) Written Statement After Meet and Confer. Within ten working days after the meet and confer has concluded, City will issue a written statement identifying which portion(s) of the Claim remain in dispute, if any. (D) Submission to Mediation. If the Claim or any portion remains in dispute following the meet and confer conference, within ten working days after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute, the Contractor may identify in writing disputed portion(s) of the Claim that will be submitted for mediation, as set forth below.

12.5 Mediation and Government Code Claims.
(A) Mediation. Within ten working days after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute, following the meet and confer, City and Contractor will mutually agree to a mediator, as provided under Public Contract Code Section 9204. Mediation will be scheduled to ensure the mutual availability of the selected mediator and all of the individuals that each party requires to represent its interests.

If there are multiple Claims in dispute, the parties may agree to schedule the mediation to address all outstanding Claims at the same time. The parties will share the costs of the mediator and mediation fees equally, but each party is otherwise solely and separately responsible for its own costs to prepare for and participate in the mediation, including costs for its legal counsel or any other consultants.
(B) Government Code Claims.

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(1) Timely presentation of a Government Code Claim is a condition precedent to filing any legal action based on or arising from the Contract. Compliance with the Claim submission requirements in this Article 12 is a condition precedent to filing a Government Code Claim. (2) The time for filing a Government Code Claim will be tolled from the time Contractor submits its written Claim pursuant to Section 12.2, above, until the time that Claim is denied in whole or in part at the conclusion of the meet and confer process, including any period of time used by the meet and confer process. However, if the Claim is submitted to mediation, the time for filing a Government Code Claim will be tolled until conclusion of the mediation, including any continuations, if the Claim is not fully resolved by mutual agreement of the parties during the mediation or any continuation of the mediation.

12.6 Tort Claims. This Article does not apply to tort claims and nothing in this Article is intended nor will be construed to change the time periods for filing tort-based Government Code Claims.

12.7 Arbitration. It is expressly agreed, under Code of Civil Procedure Section 1296, that in any arbitration to resolve a dispute relating to this Contract, the arbitrator’s award must be supported by law and substantial evidence.

12.8 Burden of Proof and Limitations. Contractor bears the burden of proving entitlement to and the amount of any claimed damages. Contractor is not entitled to damages calculated on a total cost basis, but must prove actual damages. Contractor is not entitled to speculative, special, or consequential damages, including home office overhead or any form of overhead not directly incurred at the Project site or any other Worksite; lost profits; loss of productivity; lost opportunity to work on other projects; diminished bonding capacity; increased cost of financing for the Project; extended capital costs; non-availability of labor, material or equipment due to delays; or any other indirect loss arising from the Contract. The Eichleay Formula or similar formula will not be used for any recovery under the Contract. The City will not be directly liable to any Subcontractor or supplier.

12.9 Legal Proceedings. In any legal proceeding that involves enforcement of any requirements of the Contract Documents, the finder of fact will receive detailed instructions on the meaning and operation of the Contract Documents, including conditions, limitations of liability, remedies, claim procedures, and other provisions bearing on the defenses and theories of liability. Detailed findings of fact will be requested to verify enforcement of the Contract Documents. All of the City's remedies under the Contract Documents will be construed as cumulative, and not exclusive, and the City

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reserves all rights to all remedies available under law or equity as to any dispute arising from or relating to the Contract Documents or performance of the Work.

12.10 Other Disputes. The procedures in this Article 12 will apply to any and all disputes or legal actions, in addition to Claims, arising from or related to this Contract, including disputes regarding suspension or early termination of the Contract, unless and only to the extent that compliance with a procedural requirement is expressly and specifically waived by City.

Nothing in this Article is intended to delay suspension or termination under Article 13.

Article 13 - Suspension and Termination

13.1 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct Work in accordance with the Contract Documents, including non-compliance with applicable environmental or health and safety Laws, City may immediately order the Work, or any portion of it, suspended until the circumstances giving rise to the suspension have been eliminated to City’s satisfaction.
(A) Notice of Suspension. Upon receipt of City’s written notice to suspend the Work, in whole or in part, except as otherwise specified in the notice of suspension, Contractor and its Subcontractors must promptly stop Work as specified in the notice of suspension; comply with directions for cleaning and securing the Worksite; and protect the completed and inprogress Work and materials. Contractor is solely responsible for any damages or loss resulting from its failure to adequately secure and protect the Project.
(B) Resumption of Work. Upon receipt of the City’s written notice to resume the suspended Work, in whole or in part, except as otherwise specified in the notice to resume, Contractor and its Subcontractors must promptly re-mobilize and resume the Work as specified; and within ten days from the date of the notice to resume, Contractor must submit a recovery schedule, prepared in accordance with the Contract Documents, showing how Contractor will complete the Work within the Contract Time. (C) Failure to Comply. Contractor will not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. (D) No Duty to Suspend. City’s right to suspend the Work will not give rise to a duty to suspend the Work, and City’s failure to suspend the Work

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will not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.

13.2 Suspension for Convenience. City reserves the right to suspend, delay, or interrupt the performance of the Work in whole or in part, for a period of time determined to be appropriate for City’s convenience. Upon notice by City pursuant to this provision, Contractor must immediately suspend, delay, or interrupt the Work and secure the Project site as directed by City, except for taking measures to protect completed or in progress Work as directed in the suspension notice, and subject to the provisions of Section

13.1(A) and (B), above. If Contractor submits a timely request for a Change Order in compliance with Articles 5 and 6, the Contract Price and the Contract Time will be equitably adjusted by Change Order pursuant to Articles 5 and 6 to reflect the cost and delay impact occasioned by such suspension for convenience except to the extent that any such impacts were caused by Contractor’s failure to comply with the Contract Documents or the terms of the suspension notice or notice to resume. However, Contract Time will only be extended if the suspension causes or will cause unavoidable delay in Final Completion. If Contractor disputes the terms of a Change Order issued for such equitable adjustment due to suspension for convenience, its sole recourse is to comply with the Claim procedures in Article 12.

13.3 Termination for Default. City may declare that Contractor is in default of the Contract for a material breach of or inability to fully, promptly, or satisfactorily perform its obligations under the Contract. (A) Default. Events giving rise to a declaration of default include Contractor’s refusal or failure to supply sufficient skilled workers, proper materials, or equipment to perform the Work within the Contract Time; Contractor’s refusal or failure to make prompt payment to its employees, Subcontractors, or suppliers or to correct defective Work or damage; Contractor’s failure to comply with the Laws, or orders of any public agency with jurisdiction over the Project; evidence of Contractor’s bankruptcy, insolvency, or lack of financial capacity to complete the Work as required within the Contract Time; suspension, revocation, or expiration and nonrenewal of Contractor’s license or DIR registration; dissolution, liquidation, reorganization, or other major change in Contractor’s organization, ownership, structure or existence as a business entity; unauthorized assignment of Contractor’s rights or duties under the Contract; or any material breach of the Contract requirements. (B) Notice of Default and Opportunity to Cure. Upon City’s declaration that Contractor is in default, due to a material breach of the Contract Documents, if City determines that the default is curable, City will afford Contractor the opportunity to cure the default within ten days of City’s notice

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of default, or within a period of time reasonably necessary for such cure, including a shorter period of time if applicable.
(C) Termination. If Contractor fails to cure the default or fails to expediently take steps reasonably calculated to cure the default within the time period specified in the notice of default, City may issue written notice to Contractor and its performance bond surety of City’s termination of the Contract for default.
(D) Waiver. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven calendar days from the date of the notice of termination, pursuant to paragraph (C), City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety will be jointly and severally liable for any additional cost incurred by City to complete the Work following termination, where “additional cost” means all cost in excess of the cost City would have incurred if Contractor had timely completed Work without the default and termination. In addition, City will have the right to immediate possession and use of any materials, supplies, and equipment procured for the Project and located at the Project site or any Worksite on City property for the purposes of completing the remaining Work.
(E) Compensation. Within 30 days of receipt of updated as-builts, all warranties, manuals, instructions, or other required documents for Work installed to date, and delivery to City of all equipment and materials for the Project for which Contractor has already been compensated, Contractor will be compensated for the Work satisfactorily performed in compliance with the Contract Documents up to the effective date of the termination pursuant to the terms of Article 8, Payment, subject to City’s rights to withhold or deduct sums from payment otherwise due pursuant to Section 8.3, and excluding any costs Contractor incurs as a result of the termination, including any cancellation or restocking charges or fees due to third parties.

If Contractor disputes the amount of compensation determined by City, its sole recourse is to comply with the Claim Procedures in Article 12, by submitting a Claim no later than 30 days following notice from City of the total compensation to be paid by City.
(F) Wrongful Termination. If Contractor disputes the termination, its sole recourse is to comply with the Claim procedures in Article 12. If a court of competent jurisdiction or an arbitrator later determines that the termination for default was wrongful, the termination will be deemed to be a termination for convenience, and Contractor’s damages will be strictly limited to the compensation provided for termination for convenience, under

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Section 13.4, below. Contractor waives any claim for any other damages for wrongful termination including special or consequential damages, lost opportunity costs or lost profits, and any award of damages is subject to Section 12.8, Burden of Proof and Limitations.

13.4 Termination for Convenience. City reserves the right, acting in its sole discretion, to terminate all or part of the Contract for convenience upon written notice to Contractor.
(A) Compensation to Contractor. In the event of City’s termination for convenience, Contractor waives any claim for damages, including for loss of anticipated profits from the Project. The following will constitute full and fair compensation to Contractor, and Contractor will not be entitled to any additional claim or compensation.
(1) Completed Work. The value of its Work satisfactorily performed as of the date notice of termination is received, based on Contractor’s schedule of values and unpaid costs for items delivered to the Project site that were fabricated for incorporation in the Work; (2) Demobilization. Demobilization costs specified in the schedule of values, or if demobilization costs were not provided in a schedule of values pursuant to Section 8.1, then based on actual, reasonable, and fully documented demobilization costs; and (3) Termination Markup. Five percent of the total value of the Work performed as of the date of notice of termination including reasonable, actual, and documented costs to comply with the direction in the notice of termination for convenience, and demobilization costs, which is deemed to cover all overhead and profit to date.
(B) Disputes. If Contractor disputes the amount of compensation determined by City pursuant to paragraph (A), above, its sole recourse is to comply with the Claim procedures in Article 12, by submitting a Claim no later than 30 days following notice from City of total compensation to be paid by City.

13.5 Actions Upon Termination for Default or Convenience. The following provisions apply to any termination under this Article, whether for default or convenience, and whether in whole or in part.
(A) General. Upon termination, City may immediately enter upon and take possession of the Project and the Work and all tools, equipment, appliances, materials, and supplies procured or fabricated for the Project.

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Contractor will transfer title to and deliver all completed Work and all Work in progress to City.
(B) Submittals. Unless otherwise specified in the notice of termination, Contractor must immediately submit to City all designs, drawings, as-built drawings, Project records, contracts with vendors and Subcontractors, manufacturer warranties, manuals, and other such submittals or Workrelated documents required under the terms of the Contract Documents, including incomplete documents or drafts.
(C) Close Out Requirements. Except as otherwise specified in the notice of termination, Contractor must comply with all of the following:
(1) Immediately stop the Work, except for any Work that must be completed pursuant to the notice of termination and comply with City’s instructions for cessation of labor and securing the Project and any other Worksite(s).
(2) Comply with City’s instructions to protect the completed Work and materials, using best efforts to minimize further costs. (3) Contractor must not place further orders or enter into new subcontracts for materials, equipment, services or facilities, except as may be necessary to complete any portion of the Work that is not terminated.
(4) As directed in the notice, Contractor must assign to City or cancel existing subcontracts that relate to performance of the terminated Work, subject to any prior rights, if any, of the surety for Contractor’s performance bond, and settle all outstanding liabilities and claims, subject to City’s approval.
(5) As directed in the notice, Contractor must use its best efforts to sell any materials, supplies, or equipment intended solely for the terminated Work in a manner and at market rate prices acceptable to City.
(D) Payment Upon Termination. Upon completion of all termination obligations, as specified herein and in the notice of termination, Contractor will submit its request for Final Payment, including any amounts due following termination pursuant to this Article 13. Payment will be made in accordance with the provisions of Article 8, based on the portion of the Work satisfactorily completed, including the close out requirements, and consistent with the previously submitted schedule of values and unit pricing, including demobilization costs. Adjustments to Final Payment may include deductions for the cost of materials, supplies, or equipment retained by

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Contractor; payments received for sale of any such materials, supplies, or equipment, less re-stocking fees charged; and as otherwise specified in Section 8.3, Adjustment of Payment Application.
(E) Continuing Obligations. Regardless of any Contract termination, Contractor’s obligations for portions of the Work already performed will continue and the provisions of the Contract Documents will remain in effect as to any claim, indemnity obligation, warranties, guarantees, submittals of as-built drawings, instructions, or manuals, record maintenance, or other such rights and obligations arising prior to the termination date.

Article 14 - Miscellaneous Provisions

14.1 Assignment of Unfair Business Practice Claims. Under Public Contract Code Section 7103.5, Contractor and its Subcontractors agree to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the Contract or any subcontract.

This assignment will be effective at the time City tenders Final Payment to Contractor, without further acknowledgement by the parties.

14.2 Provisions Deemed Inserted. Every provision of law required to be inserted in the Contract Documents is deemed to be inserted, and the Contract Documents will be construed and enforced as though such provision has been included. If it is discovered that through mistake or otherwise that any required provision was not inserted, or not correctly inserted, the Contract Documents will be deemed amended accordingly.

14.3 Waiver. City’s waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of the Contract Documents will not be effective unless it is in writing and signed by City.

City’s waiver of any breach, failure, right, or remedy will not be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless specified in writing by City.

14.4 Titles, Headings, and Groupings. The titles and headings used and the groupings of provisions in the Contract Documents are for convenience only and may not be used in the construction or interpretation of the Contract Documents or relied upon for any other purpose.

14.5 Statutory and Regulatory References. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that bids were due.

2026 Sidewalk Repairs & Replacement Project GENERAL CONDITIONS CSD2026-017 Page 85
Version: January 2025

14.6 Survival. The provisions that survive termination or expiration of this Contract include Contract Section 11, Notice, and subsections 12.1, 12.2,

12.3, 12.4, 12.5, and 12.6 of Section 12, General Provisions; and the following provisions in these General Conditions: Section 2.2(J), Contractor’s Records, Section 2.3(C), Termination, Section 3.7, Ownership, Section 4.2, Indemnity, Article 12, Dispute Resolution, and Section 11.2, Warranty.

END OF GENERAL CONDITIONS

2026 Sidewalk Repairs & Replacement Project SPECIAL CONDITIONS CSD2026-017 Page 1
Version: January 2025

SPECIAL CONDITIONS

1. Emergency Contact. Prior to the commencement of Work on the Project, Contractor must provide contact information to the Engineer for the person designated by Contractor to respond to any emergency that arises on the Worksite during the course of the Project. That person will be responsible for responding to the Worksite within thirty (30) minutes following notification of an emergency by City’s Police or Fire Department, regardless of the time of day.

END OF SPECIAL CONDITIONS

12 CITY COUNCIL STAFF REPORT
MEETING DATE: May 6, 2026
PREPARED BY:

Keri Russell, Maintenance Manager
APPROVED BY: City Manager

INITIATE ANNUAL ASSESSMENT DISTRICT PROCESS FOR
LANDSCAPE ASSESSMENT DISTRICT NUMBER 1

RECOMMENDATION(S)

1. Adopt resolution initiating the proceedings for the levy of assessments for Fiscal Year 2026-27;

2. Adopt resolution approving the Engineer’s Annual Report and the proposed assessment levy; and

3. Adopt resolution declaring the City Council’s intention to levy the assessments in the District and to set the Public Hearing date for June 3, 2026.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
REPORT NARRATIVE:

Landscape Assessment District No. 1 (District) was created to pay for the maintenance of the parks and common area landscaping in new neighborhoods benefiting from the open space. Per Government Code Sections 22623 to 22631, an Engineer's Annual Report (Attachment 1) is required to set the annual assessments in the Landscaping Assessment District and establish a Public Hearing date. This Public Hearing date has been scheduled for the City Council meeting on June 3, 2026.

The recommended assessment rate for each subarea, which is reflected in the Annual Report, has been proposed at a level that will enable the City to maintain each subarea and make reasonable improvements during the fiscal year. The Engineer's Annual Report details the proposed Fiscal Year 2026-27 assessments. The recommended assessment rates include increases for Belle Estates, Jackson 7, La Crosse, Llagas Obata, and Stone Creek subarea.

In the case of multiple subareas where the assessment cap does not increase annually,

12 and funding is limited, maintenance services continue to be minimized. The Landscape Assessment District law requires property owners in these areas to vote to approve assessment increases. In some cases, property owners are not willing to increase their assessments. Staff will continue to look for alternatives to effectively manage the District and plans to continue to engage residents across the District.

COMMUNITY ENGAGEMENT:

Ongoing resident outreach is occurring in several of the subareas and City staff are striving to increase the resident outreach. Some areas have more active homeowners groups that work with City staff in planning maintenance projects for their subareas, while residents of other subareas are less engaged. In recent years, City staff have successfully out reached to several areas. City teammates are closely working with active districts on the ongoing maintenance and budget for their district. Although outreach with residents is typically positive, not all residents are satisfied with the service being provided within their subarea. This dissatisfaction is often due to the limitations of funding available to the subarea without the associated increase in assessments levied.

Staff is recommending an increase to Belle Estates, Jackson 7, La Crosse, Llagas Obata, and Stone Creek subarea. Staff have had recent resident meetings to discuss the increases with residents in all these areas and has provided written notification ahead of those meetings.

ALTERNATIVE ACTIONS:

There is no other practical alternative action. The City Council could choose to provide staff with further direction on management of the District.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

In 1991, the City Council, under the Landscaping and Lighting Act of 1972, created the Fox Hollow/Murphy Springs Landscape Assessment District, and in 2010 chose to rename it to the City of Morgan Hill Landscape Assessment District No. 1. In May 2011, reserve targets for each subarea were established by the Council and in June 2025 the target reserves were increased.

The City Council adopts the annual assessments and the ordering of the levy for assessments for the District each year. This occurred most recently on June 18, 2025.

FISCAL AND RESOURCE IMPACT:

The cost for preparation of the Engineer's Annual Report will be paid for by the Landscape Assessment District Fund (229). It is anticipated that the District will generate $227,715 in revenues in Fiscal Year 2026-27. Expenses are budgeted at $243,298 meaning that overall the District's reserves are projected to be reduced by $15,583 in the upcoming fiscal year. Providing administrative oversight to the District is a core activity of the Public Services Department's work program.

12 CEQA (California Environmental Quality Act):

Categorical Exemption
The planned maintenance and management of the subareas within the lighting and landscape assessment district fall within the CEQA categorical exemption of Class 1, Existing Facilities.

Fiscal Year 2026/27 Engineer’s Report For:

Landscape Assessment District No. 1
March 2026

CITY OF MORGAN HILL
17575 Peak Avenue
Morgan Hill, CA 95037-4128
Phone: (408) 779-7271
Fax: (408) 778-1564

CITY COUNCIL
Mark Turner, Mayor
Marilyn Librers, Mayor Pro Tem
Soraida Iwanaga, Council Member
Yvonne Martinez Beltran, Council Member
Miriam Vega, Council Member

CITY STAFF
Christina Turner, City Manager
Chris Ghione, Public Services Director
Dat Nguyen, Finance Director
Keri Russell, Maintenance Manager
NBS
Ingrid Mijangos, Administrator
Melissa Ellico, Project Manager
Kristin Harvey, Client Success Ambassador

TABLE OF CONTENTS

1. Executive Summary ........................................................................................................ 7

2. Overview ........................................................................................................................ 8

2.1 Introduction .............................................................................................................. 8

2.2 Description of Boundaries ........................................................................................ 8

2.3 Description of Improvements and Services .............................................................. 8

3. Estimate of Costs ............................................................................................................ 9

3.1 Definitions of Budget Items ...................................................................................... 9

3.2 Zone Budgets .......................................................................................................... 10

4. Assessments ................................................................................................................. 11

4.1 Belle Estates Zone ................................................................................................... 11

4.2 Chang/Bertelone Zone ............................................................................................ 12

4.3 Conte Gardens Zone ............................................................................................... 12

4.4 Diana Estates Zone.................................................................................................. 12

4.5 Fox Hollow/Murphy Springs Zone .......................................................................... 13

4.6 Hamilton Square Zone ............................................................................................ 13

4.7 Jackson Meadows 6A/6B Zone ............................................................................... 14

4.8 Jackson Meadows Number 7 Zone ......................................................................... 14

4.9 La Grande Estates Zone .......................................................................................... 14

4.10 Lacrosse/Gera Zone ................................................................................................ 15

4.11 Llagas Creek Estates Zone ....................................................................................... 15

4.12 Llagas/Obata Zone .................................................................................................. 16

4.13 Mill Creek Zone ....................................................................................................... 16

4.14 Oak Creek I, II, III ..................................................................................................... 17

4.15 Parsons Corner Zone ............................................................................................... 17

4.16 Rose Haven Zone .................................................................................................... 17

4.17 Sandalwood Zone ................................................................................................... 18

4.18 Sparhawk Zone ....................................................................................................... 18

4.19 Stone Creek Zone .................................................................................................... 19

4.20 Sunnyside/Stone Gate Zone ................................................................................... 19

5. Assessment Diagrams ................................................................................................... 20

6. Assessment Roll ............................................................................................................ 21

7. Historical Actual Assessment Rates ............................................................................... 22

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 7

1. EXECUTIVE SUMMARY
WHEREAS, the City Council of the City of Morgan Hill (the “City”), State of California, directed NBS to prepare and file a report, in accordance with Chapter 1, Article 4 of the Landscaping and Lighting Act of 1972 (the “Act”), presenting the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the City’s Landscape Assessment District No. 1 (the “District”) for Fiscal Year 2026/27. The report includes a diagram for the District, showing the area and properties proposed to be assessed, an assessment of the estimated costs of the maintenance, operations and servicing the improvements, and the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received and;
WHEREAS, the assessment for each parcel is in compliance with the Proposition 218 Omnibus Implementation Act and Section 4 of Article XIII D of the California Constitution. The proposed assessments are not proposed to increase by more than the approved maximum allowable increases.

NOW THEREFORE, assessments have been levied in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:

Zone Units
FY 2026/27
Maximum
Assessment Rate
FY 2026/27 Actual
Assessment Rate
Total
Assessment (1)
Belle Estates 36 $502.22 $450.00 $16,200.00
Chang/Bertelone 8 1,215.00 550.00 4,400.00
Conte Gardens 11 477.82 365.00 4,015.00
Diana Estates 64 139.39 139.39 8,920.96
Fox Hollow (2) 75 262.49 173.53 13,014.75
Hamilton Square 38 425.54 425.00 16,150.00
Jackson Meadows #6 70 108.10 108.00 7,560.00
Jackson Meadows #7 10 314.58 275.00 2,750.00
La Grande Estates 32 88.00 88.00 2,816.00
Lacrosse/Gera 24 142.99 125.00 3,000.00
Llagas Creek (2) 71 353.45 343.00 24,353.00
Llagas/Obata 5 629.16 629.00 3,145.00
Mill Creek (2) 84 340.30 285.00 23,940.00
Oak Creek I, II, III 119 453.82 425.00 50,575.00
Parsons Corner (3) NOT APPLICABLE
Rose Haven 27 488.47 400.00 10,800.00
Sandalwood 11 450.00 450.00 4,950.00
Sparhawk (2) 18 530.45 500.00 9,000.00
Stone Creek (2) 35 587.58 525.00 18,375.00
Sunnyside/Stonegate (2) 10 765.06 375.00 3,750.00
Totals: 748 $227,714.71
(1) Actual amount placed on secured tax roll may be less due to Santa Clara County submittal requirements. Amounts placed on the tax roll must be rounded down to an even number.
(2) Maximum Assessment Rate increases by 3% annually.
(3) Detachment of Parsons Corner Zone was approved in April 2019.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 8

2. OVERVIEW

2.1 Introduction
In 1991, the City Council created the Fox Hollow/Murphy Springs Landscape Assessment District, under the Act, and in 2010 chose to rename it to the City of Morgan Hill Landscape Assessment District No. 1. The District was formed in order to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District. Following the initial formation, additional territory was annexed to the District as separate Zones. Currently, the District is comprised of 19 Zones (which decreased from 20 as a result of property owners within Parsons Corner electing to detach from the District in April 2019).

The District provides for and ensures the continued maintenance, servicing, administration, and operation of various landscaping improvements and associated appurtenances located within the public right-of-way and dedicated easements within the boundaries of the District.

2.2 Description of Boundaries
Exhibits from the Engineer’s Report at the formation of the District define the boundaries and maintenance areas of each Zone within the District. These exhibits are on file and available for review at the Office of the City Engineer and, in conjunction with the County of Santa Clara (the “County”) Assessor's maps of the areas annexed, comprise the assessment diagrams for the respective annexations. The Assessor's maps are on file in the office of the County Assessor and are, by reference, made a part of this Report.

2.3 Description of Improvements and Services
The improvements include the construction, operation, maintenance, and servicing of landscaping and appurtenant facilities; including, but not limited to, personnel, electrical energy, utilities such as water and gas, materials, contracting services, and other items necessary for the satisfactory operation of the following services:
“Landscape improvements provided within the District may include, but are not limited to:
ground cover, shrubs, plants and trees, irrigation and drainage systems, graffiti removal, entry monuments, and associated appurtenant facilities. Services provided include all necessary service, operations, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, and satisfactory condition.” Reference is made to the Plans and Specifications for the improvements, which is on file with the City.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 9

3. ESTIMATE OF COSTS

3.1 Definitions of Budget Items
The following definitions describe some of the services and costs that may be included in the Zone budgets:

Direct Expenses
Maintenance: Includes all regularly scheduled labor, material (i.e. pipe, fertilizer, insecticides, paint, etc.) and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities.

Extra Contract Costs: Includes all labor, equipment, and material costs associated with unscheduled repairs and improvements needed to ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities.

Water/Sewer: Includes the furnishing of water required for the operation and maintenance of the landscaping facilities.

Electricity Costs: Includes the furnishing of electricity required for irrigation systems for the operation and maintenance of the landscaping facilities.

Other Supplies: Includes costs that are generally unforeseen and not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism, storms, heavy frost, etc. Also included may be planned upgrades that provide a direct benefit to the District. These upgrades could include replacing plant materials and/or renovation of irrigation systems.

Administrative Expenses
Salaries: Includes the cost to particular departments and staff of the City to provide the coordination of District services, operations, and maintenance of the improvements, response to public concerns and education, and procedures associated with the levy and collection of assessments.

Postage/Advertising: Includes the cost of providing any mailed notice to the property owners and publishing and posting the Resolution of Intention as required by the Act.

Internal Services: Includes overhead costs allocated to the District for various City staff services.

Administrative/Engineering Contract: Includes the costs associated with contracting with professionals to provide services specific to the administration of the levy.

Contingency/Capital Replacement Fund Balance (Reduction)/Reserve Positive amounts are collected for various reasons that include, but are not limited to, any or all of the following:
 To maintain reserves which enable the City to pay for costs associated with the District during the first six months of the fiscal year,

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 10
Contingency/Capital Replacement Fund Balance (Reduction)/Reserve (continued)  To reduce the current fund balance deficit (if any) that exists as of the beginning of the fiscal year, and
 To plan for the replacement of capital improvements in the future.

3.2 Zone Budgets
The estimated costs of servicing, maintaining, repairing, and replacing the actual improvements for each Zone for Fiscal Year 2026/27 are shown on the following pages.

City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone
Belle Estates

DIRECT EXPENSES
Maintenance $6,457.50
Extra Contract Costs 1,000.00
Water/Sewer 3,708.00
Electricity Costs 0.00
Other Supplies 500.00
Subtotal Direct Expenses $11,665.50

ADMINISTRATIVE EXPENSES
Salaries $1,360.74
Postage/Advertising 10.03
Internal Services 953.80
Administrative/Engineering Contract 448.78
Subtotal Administrative Expenses $2,773.35
SUBTOTAL ZONE COST $14,438.85
Fund Balance (Reduction)/Reserve 1,761.15
TOTAL BALANCE TO LEVY $16,200.00
Number of Assessable Units 36
Assessment Rate per Unit $450.00
Estimated Beginning Fund Balance July 1, 2026 $7,411.71 Fund Balance Change 1,761.15
Estimated Ending Fund Balance June 30, 2027 $9,172.86
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Chang /
Bertelone
$3,357.90
500.00
943.48

0.00 0.00
$4,801.38
$302.39

2.23 211.96

99.73 $616.31
$5,417.69
(1,017.69)
$4,400.00
8 $550.00
$12,035.02
(1,017.69)
$11,017.33
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Conte Gardens
$0.00
1,000.00
2,900.00
240.00
500.00
$4,640.00
$415.78

3.06 291.44
137.13
$847.41
$5,487.41
(1,472.41)
$4,015.00
11 $365.00
$11,108.45
(1,472.41)
$9,636.04
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Diana Estates
$3,874.50
500.00

0.00 0.00

0.00 $4,374.50
$2,419.10

17.83 1,695.65
797.83
$4,930.41
$9,304.91
(383.95)
$8,920.96
64 $139.39
$9,382.83
(383.95)
$8,998.88
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Fox Hollow
$4,029.48
1,000.00
4,635.00

0.00 0.00
$9,664.48
$2,834.88

20.89 1,987.09
934.95
$5,777.81
$15,442.29
(2,427.54)
$13,014.75
75 $173.53
$12,630.91
(2,427.54)
$10,203.37
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Hamilton Square
$7,709.51
2,000.00
5,028.46
247.50
1,000.00
$15,985.47
$1,436.34

10.58 1,006.79
473.71
$2,927.42
$18,912.89
(2,762.89)
$16,150.00
38 $425.00
$8,012.38
(2,762.89)
$5,249.49
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Jackson
Meadows #6
$1,098.83

0.00 0.00

0.00 0.00
$1,098.83
$2,645.89

19.50 1,854.62
872.62
$5,392.63
$6,491.46
1,068.54
$7,560.00
70 $108.00
($1,795.88)
1,068.54
($727.34)
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Jackson
Meadows #7
$1,092.00

0.00 0.00

0.00 0.00
$1,092.00
$377.98

2.79 264.95
124.66
$770.38
$1,862.38
887.62
$2,750.00
10 $275.00
$1,566.50
887.62
$2,454.12
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
La Grande Estates
$0.00

0.00 0.00

0.00 0.00
$0.00
$1,209.55

8.91 847.83
398.91
$2,465.20
$2,465.20
350.80
$2,816.00
32 $88.00
($6,369.44)
350.80
($6,018.64)
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Lacrosse/Gera
$1,092.00

0.00 0.00

0.00 0.00
$1,092.00
$453.58

3.34 317.93
149.59
$924.44
$2,016.44
983.56
$3,000.00
24 $125.00
$271.99
983.56
$1,255.55
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Llagas Creek
$5,114.34
5,000.00
4,725.00

0.00 0.00
$14,839.34
$2,683.68

19.78 1,881.11
885.09
$5,469.66
$20,309.00
4,044.00
$24,353.00
71 $343.00
$16,468.50
4,044.00
$20,512.50
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Llagas/Obata
$1,885.59

0.00 257.50

0.00 0.00
$2,143.09
$188.99

1.39 132.47

62.33 $385.18
$2,528.27
616.73
$3,145.00
5 $629.00
$920.99
616.73
$1,537.72
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Mill Creek
$10,988.35
5,160.00
5,922.50
252.00
1,500.00
$23,822.85
$3,175.06

23.40 2,225.54
1,047.15
$6,471.15
$30,294.00
(6,354.00)
$23,940.00
84 $285.00
$11,305.51
(6,354.00)
$4,951.51
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Oak Creek I, II, III
$27,581.36
10,000.00
12,360.00
3,700.00
1,500.00
$55,141.36
$4,498.01

33.15 3,152.85
1,483.46
$9,167.47
$64,308.83
(13,733.83)
$50,575.00
119
$425.00
$46,553.35
(13,733.83)
$32,819.52
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Rose Haven
$8,790.68
1,000.00
1,493.50
270.90
400.00
$11,955.08
$1,020.56

7.52 715.35
336.58
$2,080.01
$14,035.09
(3,235.09)
$10,800.00
27 $400.00
$17,966.57
(3,235.09)
$14,731.48
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Sandalwood
$1,885.59

0.00 0.00

0.00 0.00
$1,885.59
$415.78

3.06 291.44
137.13
$847.41
$2,733.00
2,217.00
$4,950.00
11 $450.00
$20,671.42
2,217.00
$22,888.42
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Sparhawk
$2,415.11
250.00
2,832.50

0.00 0.00
$5,497.61
$680.37

5.01 476.90
224.39
$1,386.67
$6,884.28
2,115.72
$9,000.00
18 $500.00
$6,549.29
2,115.72
$8,665.01
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Stone Creek
$6,457.50
2,500.00
4,944.00

0.00 0.00
$13,901.50
$1,322.94

9.75 927.31
436.31
$2,696.31
$16,597.81
1,777.19
$18,375.00
35 $525.00
$6,008.36
1,777.19
$7,785.55
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Sunnyside /
Stone Gate
$2,197.67
400.00

0.00 0.00
400.00
$2,997.67
$377.98

2.79 264.95
124.66
$770.38
$3,768.05
(18.05)
$3,750.00
10 $375.00
$18,698.57
(18.05)
$18,680.52
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2026/27 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2026
Fund Balance Change
Estimated Ending Fund Balance June 30, 2027
Total of all Zones
$96,027.91
30,310.00
49,749.94
4,710.40
5,800.00
$186,598.25
$27,819.60
205.00
19,499.98
9,175.01
$56,699.59
$243,297.84
(15,583.14)
$227,714.71
748
N/A
$199,397.03
(15,583.14)
$183,813.89
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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 11

4. ASSESSMENTS
The amount of the actual assessment for the Fiscal Year 2026/27 apportioned to each parcel, as shown on the latest equalized roll at the County Assessor’s office, is listed in Section 6 of this Report. The description of each lot or parcel is part of the records of the County Assessor and such records are, by reference, made part of this Report.

Method of Apportionment
The assessments are levied in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation.

Pursuant to the Act and Article XIII D of the Constitution of the State of California, all parcels that have special benefit conferred upon them as a result of the maintenance and operation of improvements shall be identified and the proportionate special benefit derived by each identified parcel shall be determined in relation to the entire cost of the maintenance and operation of the improvements. Only parcels that receive direct special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received.

Several Zones have been annexed into the District and it has been determined that by reason of variations in the nature, location, and extent of the improvements, those areas will receive differing degrees of benefit from the improvements.

Within the Zones, each parcel is allocated a number of units, where each such unit is deemed to receive the same proportional special benefit from the maintenance and operation of the improvements within that Zone. The typical parcel, with a single-family residential use, will have one unit assigned. If the use or nature of a parcel confers special benefit in a greater or lesser degree than that typical use, that parcel may have greater than or less than one unit assigned.

4.1 Belle Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $502.22 per unit. There is currently no inflator associated with the Belle Estates Zone assessments.

There are currently 36 parcels within this Zone, and the total Zone costs are spread to each of the 36 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $16,200.00 Total Units 36
Fiscal Year 2026/27 Actual Assessment Per Unit $450.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $502.22 The change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2025/26 Actual Assessment Per Unit $310.00
Fiscal Year 2026/27 Actual Assessment Per Unit $450.00
Change in the Actual Assessment Rate $140.00

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 12

4.2 Chang/Bertelone Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $1,215.00 per unit. There is currently no inflator associated with the Chang/Bertelone Zone assessments.

There are currently 8 parcels within this Zone, and the total Zone costs are spread to each of the 8 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $4,400.00 Total Units 8
Fiscal Year 2026/27 Actual Assessment Per Unit $550.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $1,215.00 There is no change in the assessment rate from the previous fiscal year.

4.3 Conte Gardens Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $477.82 per unit. There is currently no inflator associated with the Conte Gardens Zone assessments.

There are currently 11 parcels within this Zone, and the total Zone costs are spread to each of the 11 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $4,015.00 Total Units 11
Fiscal Year 2026/27 Actual Assessment Per Unit $365.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $477.82 There is no change in the assessment rate from the previous fiscal year.

4.4 Diana Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $139.39 per unit. There is currently no inflator associated with the Diana Estates Zone assessments.

There are currently 64 parcels within this Zone, and the total Zone costs are spread to each of the 64 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $8,920.96 Total Units 64
Fiscal Year 2026/27 Actual Assessment Per Unit (1) $139.39 Fiscal Year 2026/27 Maximum Assessment Per Unit $139.39 (1) May be rounded down to even cents per parcel for County Tax Roll purposes.

There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 13

4.5 Fox Hollow/Murphy Springs Zone
The assessment rate originally approved at the time of District formation was $106.15 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate.

The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07.

There are currently 75 parcels within this Zone, and the total Zone costs are spread to each of the 75 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $13,014.75 Total Units 75
Fiscal Year 2026/27 Actual Assessment Per Unit(1) $173.53 Fiscal Year 2026/27 Maximum Assessment Per Unit $262.49 (1) May be rounded down to even cents per parcel for County Tax Roll purposes.

There is no change in the assessment rate from the previous fiscal year.

4.6 Hamilton Square Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $425.54 per unit. There is currently no inflator associated with the Hamilton Square Zone assessments.

There are currently 38 parcels within this Zone, and the total Zone costs are spread to each of the 38 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $16,150.00 Total Units 38
Fiscal Year 2026/27 Actual Assessment Per Unit $425.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $425.54 There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 14

4.7 Jackson Meadows 6A/6B Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $108.10 per unit. There is currently no inflator associated with the Jackson Meadows 6A/6B Zone assessments.

There are currently 70 parcels within this Zone, and the total Zone costs are spread to each of the 70 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $7,560.00 Total Units 70
Fiscal Year 2026/27 Actual Assessment Per Unit $108.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $108.10 There is no change in the assessment rate from the previous fiscal year.

4.8 Jackson Meadows Number 7 Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $314.58 per unit. There is currently no inflator associated with the Jackson Meadows Number 7 Zone assessments.

There are currently 10 parcels within this Zone, and the total Zone costs are spread to each of the 10 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $2,750.00 Total Units 10
Fiscal Year 2026/27 Actual Assessment Per Unit $275.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $314.58 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2025/26 Actual Assessment Per Unit $100.00
Fiscal Year 2026/27 Actual Assessment Per Unit $275.00
Change in the Actual Assessment Rate $175.00

4.9 La Grande Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $88.00 per unit. There is currently no inflator associated with the La Grande Estates Zone assessments.

There are currently 32 parcels within this Zone, and the total Zone costs are spread to each of the 32 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $2,816.00 Total Units 32
Fiscal Year 2026/27 Actual Assessment Per Unit $88.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $88.00
There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 15

4.10 Lacrosse/Gera Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $142.99 per unit. There is currently no inflator associated with the Lacrosse/Gera Zone assessments.

There are currently 24 parcels within this Zone, and the total Zone costs are spread to each of the 24 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $3,000.00 Total Units 24
Fiscal Year 2026/27 Actual Assessment Per Unit $125.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $142.99

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2025/26 Actual Assessment Per Unit $50.00
Fiscal Year 2026/27 Actual Assessment Per Unit $125.00
Change in the Actual Assessment Rate $75.00

4.11 Llagas Creek Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $140.84 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07.

There are currently 71 parcels within this Zone, and the total Zone costs are spread to each of the 71 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $24,353.00 Total Units 71
Fiscal Year 2026/27 Actual Assessment Per Unit $343.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $353.45

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 16

4.12 Llagas/Obata Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $629.16 per unit. There is currently no inflator associated with the Llagas/Obata Zone assessments.

There are currently 5 parcels within this Zone, and the total Zone costs are spread to each of the 5 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $3,145.00 Total Units 5
Fiscal Year 2026/27 Actual Assessment Per Unit $629.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $629.16 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2025/26 Actual Assessment Per Unit $450.00
Fiscal Year 2026/27 Actual Assessment Per Unit $629.00
Change in the Actual Assessment Rate $179.00

4.13 Mill Creek Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $186.82 per unit. In February 2020, the City conducted Proposition 218 proceedings to increase the maximum assessment rate and add an annual inflator of 3% for the Zone. Property owners approved the assessment rate increase to $285.00 per unit and the inflator. The rate increase took effect in Fiscal Year 2020/21 and the 3% inflator takes effect in Fiscal Year 2021/22.

There are currently 84 parcels within this Zone, and the total Zone costs are spread to each of the 84 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $23,940.00 Total Units 84
Fiscal Year 2026/27 Actual Assessment Per Unit $285.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $340.30 There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 17

4.14 Oak Creek I, II, III
The assessment rate originally approved at the time of annexing this Zone into the District was $453.82 per unit. There is currently no inflator associated with the Oak Creek I, II, III Zone assessments.

There are currently 119 parcels within this Zone, and the total Zone costs are spread to each of the 119 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $50,575.00 Total Units 119
Fiscal Year 2026/27 Actual Assessment Per Unit $425.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $453.82 There is no change in the assessment rate from the previous fiscal year.

4.15 Parsons Corner Zone
In April 2019, property owners in the Parsons Corner Zone voted to detach from the District. Therefore, there is no assessment for the Parsons Corner Zone.

4.16 Rose Haven Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $488.47 per unit. There is currently no inflator associated with the Rose Haven Zone assessments.

There are currently 24 parcels with a total of 27 units within this Zone, and the total Zone costs are spread to each of the 27 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $10,800.00 Total Units 27
Fiscal Year 2026/27 Actual Assessment Per Unit $400.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $488.47 There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 18

4.17 Sandalwood Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $192.39 per unit. In April 2018, the City conducted Proposition 218 proceedings to increase the maximum assessment.

Property owners approved the assessment rate increase to $450.00 per unit. There is currently no inflator associated with the Sandalwood Zone assessments.

There are currently 11 parcels within this Zone, and the total Zone costs are spread to each of the 11 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $4,950.00 Total Units 11
Fiscal Year 2026/27 Actual Assessment Per Unit $450.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $450.00 There is no change in the assessment rate from the previous fiscal year.

4.18 Sparhawk Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $174.77 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07. In June 2024, City Council approved the election results of a Proposition 218 proceeding to increase the maximum assessment rate to $500.00 with a 3% annual inflator. Property owners approved the rate increase and the inflator. The rate increase took effect in Fiscal Year 2024/25 and the 3% inflator took effect in Fiscal Year 2025/26.

There are currently 18 parcels within this Zone, and the total Zone costs are spread to each of the 18 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $9,000.00 Total Units 18
Fiscal Year 2026/27 Actual Assessment Per Unit $500.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $530.45 There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 19

4.19 Stone Creek Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $306.66 per unit. In July 2005, the City conducted Proposition 218 proceedings to add an annual inflator of 3% for the Zone. Property owners approved the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The inflator took effect in Fiscal Year 2005/06.

There are currently 35 parcels within this Zone, and the total Zone costs are spread to each of the 35 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $18,375.00 Total Units 35
Fiscal Year 2026/27 Actual Assessment Per Unit $525.00
Fiscal Year 2026/27 Maximum Assessment Per Unit (1) $587.58 (1) Assessment rate increase approved by property owners in July 2005.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2025/26 Actual Assessment Per Unit $388.46
Fiscal Year 2026/27 Actual Assessment Per Unit $525.00
Change in the Actual Assessment Rate $136.54

4.20 Sunnyside/Stone Gate Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $449.40 per unit. In July 2005, the City conducted Proposition 218 proceedings to add an annual inflator of 3% for the Zone. Property owners approved the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The inflator took effect in Fiscal Year 2005/06.

There are currently 10 parcels within this Zone, and the total Zone costs are spread to each of the 10 units as follows:

Estimated Fiscal Year 2026/27 Costs and Fund Adjustment $3,750.00 Total Units 10
Fiscal Year 2026/27 Actual Assessment Per Unit $375.00
Fiscal Year 2026/27 Maximum Assessment Per Unit $765.06 (1)
There is no change in the assessment rate from the previous fiscal year.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 20

5. ASSESSMENT DIAGRAMS
The Assessment Diagrams for each Zone in the District have been submitted to the City Clerk in the format required under the provisions of the Act. Copies of the diagrams are included herein. The lines and dimensions shown on maps of the County Assessor for the current year are, by reference, made part of this Report as well.

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 21

6. ASSESSMENT ROLL
The listing of Fiscal Year 2026/27 assessments is provided per Zone on the following pages. The description of each lot or parcel as part of the records of the County Assessor are, by reference, made part of this Report as well.

City of Morgan Hill
Belle Estates
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 726-16-043 $450.00 1 $0.00 $450.00
726-16-044 450.00 1 0.00 450.00
726-16-045 450.00 1 0.00 450.00
726-16-046 450.00 1 0.00 450.00
726-16-048 450.00 1 0.00 450.00
726-16-050 450.00 1 0.00 450.00
726-16-051 450.00 1 0.00 450.00
726-16-052 450.00 1 0.00 450.00
726-16-053 450.00 1 0.00 450.00
726-16-054 450.00 1 0.00 450.00
726-16-055 450.00 1 0.00 450.00
726-16-056 450.00 1 0.00 450.00
726-16-057 450.00 1 0.00 450.00
726-16-058 450.00 1 0.00 450.00
726-16-059 450.00 1 0.00 450.00
726-16-060 450.00 1 0.00 450.00
726-16-061 450.00 1 0.00 450.00
726-16-062 450.00 1 0.00 450.00
726-16-063 450.00 1 0.00 450.00
726-16-064 450.00 1 0.00 450.00
726-16-065 450.00 1 0.00 450.00
726-16-066 450.00 1 0.00 450.00
726-16-068 450.00 1 0.00 450.00
726-16-069 450.00 1 0.00 450.00
726-16-070 450.00 1 0.00 450.00
726-16-071 450.00 1 0.00 450.00
726-16-072 450.00 1 0.00 450.00
726-16-074 450.00 1 0.00 450.00
726-16-075 450.00 1 0.00 450.00
726-16-076 450.00 1 0.00 450.00
726-16-077 450.00 1 0.00 450.00
726-16-078 450.00 1 0.00 450.00
726-16-079 450.00 1 0.00 450.00
726-16-080 450.00 1 0.00 450.00
726-16-081 450.00 1 0.00 450.00
726-16-082 450.00 1 0.00 450.00
36 Accounts 36 $0.00 $16,200.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 27 03/22/2026 11:57:20AM

City of Morgan Hill
Chang/Bertelone
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-23-050 $550.00 1 $0.00 $550.00
764-23-051 550.00 1 0.00 550.00
764-23-052 550.00 1 0.00 550.00
764-23-053 550.00 1 0.00 550.00
764-23-057 550.00 1 0.00 550.00
764-23-058 550.00 1 0.00 550.00
764-23-059 550.00 1 0.00 550.00
764-23-060 550.00 1 0.00 550.00
8 Accounts 8 $0.00 $4,400.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Conte Gardens
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 728-10-010 $365.00 1 $0.00 $365.00
728-10-011 365.00 1 0.00 365.00
728-10-012 365.00 1 0.00 365.00
728-10-013 365.00 1 0.00 365.00
728-10-014 365.00 1 0.00 365.00
728-10-015 365.00 1 0.00 365.00
728-10-016 365.00 1 0.00 365.00
728-10-017 365.00 1 0.00 365.00
728-10-018 365.00 1 0.00 365.00
728-10-019 365.00 1 0.00 365.00
728-10-020 365.00 1 0.00 365.00
11 Accounts 11 $0.00 $4,015.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 3 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Diana Estates
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 726-07-042 $139.39 1 ($0.01) $139.38
726-07-043 139.39 1 (0.01) 139.38
726-07-044 139.39 1 (0.01) 139.38
726-07-045 139.39 1 (0.01) 139.38
726-07-055 139.39 1 (0.01) 139.38
726-07-056 139.39 1 (0.01) 139.38
726-07-057 139.39 1 (0.01) 139.38
726-07-058 139.39 1 (0.01) 139.38
726-07-059 139.39 1 (0.01) 139.38
726-07-060 139.39 1 (0.01) 139.38
726-07-061 139.39 1 (0.01) 139.38
726-07-062 139.39 1 (0.01) 139.38
726-07-063 139.39 1 (0.01) 139.38
726-07-064 139.39 1 (0.01) 139.38
726-07-065 139.39 1 (0.01) 139.38
726-07-066 139.39 1 (0.01) 139.38
726-07-067 139.39 1 (0.01) 139.38
726-07-068 139.39 1 (0.01) 139.38
726-07-069 139.39 1 (0.01) 139.38
726-07-070 139.39 1 (0.01) 139.38
726-07-071 139.39 1 (0.01) 139.38
726-07-072 139.39 1 (0.01) 139.38
726-07-073 139.39 1 (0.01) 139.38
726-07-074 139.39 1 (0.01) 139.38
726-07-075 139.39 1 (0.01) 139.38
726-07-077 139.39 1 (0.01) 139.38
726-07-078 139.39 1 (0.01) 139.38
726-07-080 139.39 1 (0.01) 139.38
726-07-081 139.39 1 (0.01) 139.38
726-07-082 139.39 1 (0.01) 139.38
726-07-083 139.39 1 (0.01) 139.38
726-07-084 139.39 1 (0.01) 139.38
726-07-085 139.39 1 (0.01) 139.38
726-07-086 139.39 1 (0.01) 139.38
726-07-087 139.39 1 (0.01) 139.38
726-08-031 139.39 1 (0.01) 139.38
726-08-032 139.39 1 (0.01) 139.38
726-08-033 139.39 1 (0.01) 139.38
726-08-034 139.39 1 (0.01) 139.38
726-08-035 139.39 1 (0.01) 139.38
726-08-036 139.39 1 (0.01) 139.38
726-08-046 139.39 1 (0.01) 139.38
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 4 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Diana Estates
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 726-08-047 139.39 1 (0.01) 139.38
726-08-048 139.39 1 (0.01) 139.38
726-08-049 139.39 1 (0.01) 139.38
726-08-050 139.39 1 (0.01) 139.38
726-08-051 139.39 1 (0.01) 139.38
726-08-052 139.39 1 (0.01) 139.38
726-08-053 139.39 1 (0.01) 139.38
726-08-054 139.39 1 (0.01) 139.38
726-08-055 139.39 1 (0.01) 139.38
726-08-056 139.39 1 (0.01) 139.38
726-08-057 139.39 1 (0.01) 139.38
726-08-058 139.39 1 (0.01) 139.38
726-08-059 139.39 1 (0.01) 139.38
726-08-060 139.39 1 (0.01) 139.38
726-08-061 139.39 1 (0.01) 139.38
726-08-062 139.39 1 (0.01) 139.38
726-08-063 139.39 1 (0.01) 139.38
726-08-064 139.39 1 (0.01) 139.38
726-08-065 139.39 1 (0.01) 139.38
726-08-066 139.39 1 (0.01) 139.38
726-08-067 139.39 1 (0.01) 139.38
726-08-068 139.39 1 (0.01) 139.38
64 Accounts 64 ($0.64) $8,920.32
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 5 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Fox Hollow
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-47-001 $173.53 1 ($0.01) $173.52
764-47-002 173.53 1 (0.01) 173.52
764-47-003 173.53 1 (0.01) 173.52
764-47-004 173.53 1 (0.01) 173.52
764-47-005 173.53 1 (0.01) 173.52
764-47-006 173.53 1 (0.01) 173.52
764-47-007 173.53 1 (0.01) 173.52
764-47-008 173.53 1 (0.01) 173.52
764-47-009 173.53 1 (0.01) 173.52
764-47-010 173.53 1 (0.01) 173.52
764-47-011 173.53 1 (0.01) 173.52
764-47-012 173.53 1 (0.01) 173.52
764-47-013 173.53 1 (0.01) 173.52
764-47-014 173.53 1 (0.01) 173.52
764-47-015 173.53 1 (0.01) 173.52
764-47-016 173.53 1 (0.01) 173.52
764-47-017 173.53 1 (0.01) 173.52
764-47-018 173.53 1 (0.01) 173.52
764-47-020 173.53 1 (0.01) 173.52
764-47-021 173.53 1 (0.01) 173.52
764-47-022 173.53 1 (0.01) 173.52
764-47-023 173.53 1 (0.01) 173.52
764-47-024 173.53 1 (0.01) 173.52
764-47-025 173.53 1 (0.01) 173.52
764-47-026 173.53 1 (0.01) 173.52
764-47-027 173.53 1 (0.01) 173.52
764-47-028 173.53 1 (0.01) 173.52
764-47-029 173.53 1 (0.01) 173.52
764-47-030 173.53 1 (0.01) 173.52
764-47-031 173.53 1 (0.01) 173.52
764-47-032 173.53 1 (0.01) 173.52
764-47-033 173.53 1 (0.01) 173.52
764-47-034 173.53 1 (0.01) 173.52
764-47-035 173.53 1 (0.01) 173.52
764-47-036 173.53 1 (0.01) 173.52
764-47-037 173.53 1 (0.01) 173.52
764-47-038 173.53 1 (0.01) 173.52
764-47-039 173.53 1 (0.01) 173.52
764-47-040 173.53 1 (0.01) 173.52
764-47-041 173.53 1 (0.01) 173.52
764-47-042 173.53 1 (0.01) 173.52
764-47-043 173.53 1 (0.01) 173.52
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 6 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Fox Hollow
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-47-044 173.53 1 (0.01) 173.52
764-47-045 173.53 1 (0.01) 173.52
764-47-046 173.53 1 (0.01) 173.52
764-47-047 173.53 1 (0.01) 173.52
764-47-048 173.53 1 (0.01) 173.52
764-47-049 173.53 1 (0.01) 173.52
764-47-050 173.53 1 (0.01) 173.52
764-47-051 173.53 1 (0.01) 173.52
764-47-052 173.53 1 (0.01) 173.52
764-47-053 173.53 1 (0.01) 173.52
764-47-054 173.53 1 (0.01) 173.52
764-47-055 173.53 1 (0.01) 173.52
764-47-056 173.53 1 (0.01) 173.52
764-47-057 173.53 1 (0.01) 173.52
764-47-058 173.53 1 (0.01) 173.52
764-47-059 173.53 1 (0.01) 173.52
764-47-060 173.53 1 (0.01) 173.52
764-47-061 173.53 1 (0.01) 173.52
764-47-062 173.53 1 (0.01) 173.52
764-47-063 173.53 1 (0.01) 173.52
764-47-064 173.53 1 (0.01) 173.52
764-47-065 173.53 1 (0.01) 173.52
764-47-066 173.53 1 (0.01) 173.52
764-47-067 173.53 1 (0.01) 173.52
764-47-068 173.53 1 (0.01) 173.52
764-47-069 173.53 1 (0.01) 173.52
764-47-070 173.53 1 (0.01) 173.52
764-47-071 173.53 1 (0.01) 173.52
764-47-072 173.53 1 (0.01) 173.52
764-47-073 173.53 1 (0.01) 173.52
764-47-074 173.53 1 (0.01) 173.52
764-47-075 173.53 1 (0.01) 173.52
764-47-079 173.53 1 (0.01) 173.52
75 Accounts 75 ($0.75) $13,014.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 7 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Hamilton Square
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 767-36-044 $425.00 1 $0.00 $425.00
767-36-045 425.00 1 0.00 425.00
767-36-046 425.00 1 0.00 425.00
767-36-047 425.00 1 0.00 425.00
767-36-048 425.00 1 0.00 425.00
767-36-049 425.00 1 0.00 425.00
767-36-050 425.00 1 0.00 425.00
767-36-051 425.00 1 0.00 425.00
767-36-052 425.00 1 0.00 425.00
767-36-053 425.00 1 0.00 425.00
767-36-054 425.00 1 0.00 425.00
767-36-055 425.00 1 0.00 425.00
767-36-056 425.00 1 0.00 425.00
767-36-057 425.00 1 0.00 425.00
767-36-058 425.00 1 0.00 425.00
767-36-059 425.00 1 0.00 425.00
767-36-060 425.00 1 0.00 425.00
767-36-061 425.00 1 0.00 425.00
767-36-062 425.00 1 0.00 425.00
767-36-063 425.00 1 0.00 425.00
767-36-064 425.00 1 0.00 425.00
767-36-065 425.00 1 0.00 425.00
767-36-066 425.00 1 0.00 425.00
767-36-068 425.00 1 0.00 425.00
767-36-069 425.00 1 0.00 425.00
767-36-070 425.00 1 0.00 425.00
767-36-071 425.00 1 0.00 425.00
767-36-072 425.00 1 0.00 425.00
767-36-073 425.00 1 0.00 425.00
767-36-074 425.00 1 0.00 425.00
767-36-075 425.00 1 0.00 425.00
767-36-076 425.00 1 0.00 425.00
767-36-077 425.00 1 0.00 425.00
767-36-078 425.00 1 0.00 425.00
767-36-079 425.00 1 0.00 425.00
767-36-080 425.00 1 0.00 425.00
767-36-081 425.00 1 0.00 425.00
767-36-082 425.00 1 0.00 425.00
38 Accounts 38 $0.00 $16,150.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 8 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Jackson Meadows #6
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 817-26-047 $108.00 1 $0.00 $108.00
817-26-048 108.00 1 0.00 108.00
817-26-049 108.00 1 0.00 108.00
817-26-066 108.00 1 0.00 108.00
817-26-067 108.00 1 0.00 108.00
817-26-068 108.00 1 0.00 108.00
817-26-069 108.00 1 0.00 108.00
817-26-070 108.00 1 0.00 108.00
817-26-071 108.00 1 0.00 108.00
817-26-072 108.00 1 0.00 108.00
817-26-073 108.00 1 0.00 108.00
817-26-075 108.00 1 0.00 108.00
817-26-076 108.00 1 0.00 108.00
817-26-077 108.00 1 0.00 108.00
817-26-078 108.00 1 0.00 108.00
817-26-079 108.00 1 0.00 108.00
817-26-080 108.00 1 0.00 108.00
817-26-081 108.00 1 0.00 108.00
817-26-082 108.00 1 0.00 108.00
817-26-083 108.00 1 0.00 108.00
817-26-084 108.00 1 0.00 108.00
817-26-085 108.00 1 0.00 108.00
817-26-086 108.00 1 0.00 108.00
817-26-087 108.00 1 0.00 108.00
817-26-088 108.00 1 0.00 108.00
817-26-089 108.00 1 0.00 108.00
817-26-090 108.00 1 0.00 108.00
817-26-091 108.00 1 0.00 108.00
817-26-092 108.00 1 0.00 108.00
817-26-093 108.00 1 0.00 108.00
817-26-095 108.00 1 0.00 108.00
817-26-096 108.00 1 0.00 108.00
817-26-097 108.00 1 0.00 108.00
817-26-098 108.00 1 0.00 108.00
817-26-099 108.00 1 0.00 108.00
817-26-100 108.00 1 0.00 108.00
817-26-101 108.00 1 0.00 108.00
817-26-102 108.00 1 0.00 108.00
817-26-103 108.00 1 0.00 108.00
817-26-104 108.00 1 0.00 108.00
817-26-105 108.00 1 0.00 108.00
817-26-106 108.00 1 0.00 108.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 9 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Jackson Meadows #6
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 817-26-107 108.00 1 0.00 108.00
817-26-108 108.00 1 0.00 108.00
817-26-109 108.00 1 0.00 108.00
817-26-110 108.00 1 0.00 108.00
817-26-111 108.00 1 0.00 108.00
817-26-112 108.00 1 0.00 108.00
817-26-113 108.00 1 0.00 108.00
817-26-114 108.00 1 0.00 108.00
817-26-115 108.00 1 0.00 108.00
817-26-116 108.00 1 0.00 108.00
817-26-117 108.00 1 0.00 108.00
817-26-118 108.00 1 0.00 108.00
817-26-119 108.00 1 0.00 108.00
817-26-120 108.00 1 0.00 108.00
817-26-122 108.00 1 0.00 108.00
817-26-123 108.00 1 0.00 108.00
817-26-124 108.00 1 0.00 108.00
817-26-125 108.00 1 0.00 108.00
817-26-126 108.00 1 0.00 108.00
817-26-127 108.00 1 0.00 108.00
817-26-129 108.00 1 0.00 108.00
817-26-130 108.00 1 0.00 108.00
817-26-131 108.00 1 0.00 108.00
817-26-132 108.00 1 0.00 108.00
817-26-133 108.00 1 0.00 108.00
817-26-134 108.00 1 0.00 108.00
817-26-135 108.00 1 0.00 108.00
817-26-136 108.00 1 0.00 108.00
70 Accounts 70 $0.00 $7,560.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 10 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Jackson Meadows #7
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 817-70-001 $275.00 1 $0.00 $275.00
817-70-002 275.00 1 0.00 275.00
817-70-003 275.00 1 0.00 275.00
817-70-004 275.00 1 0.00 275.00
817-70-005 275.00 1 0.00 275.00
817-70-006 275.00 1 0.00 275.00
817-70-007 275.00 1 0.00 275.00
817-70-008 275.00 1 0.00 275.00
817-70-009 275.00 1 0.00 275.00
817-70-017 275.00 1 0.00 275.00
10 Accounts 10 $0.00 $2,750.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 11 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
La Grande Estates
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 767-45-032 $88.00 1 $0.00 $88.00
767-45-033 88.00 1 0.00 88.00
767-45-034 88.00 1 0.00 88.00
767-45-037 88.00 1 0.00 88.00
767-45-038 88.00 1 0.00 88.00
767-45-039 88.00 1 0.00 88.00
767-45-040 88.00 1 0.00 88.00
767-45-041 88.00 1 0.00 88.00
767-45-042 88.00 1 0.00 88.00
767-45-043 88.00 1 0.00 88.00
767-45-044 88.00 1 0.00 88.00
767-45-045 88.00 1 0.00 88.00
767-45-046 88.00 1 0.00 88.00
767-45-047 88.00 1 0.00 88.00
767-45-048 88.00 1 0.00 88.00
767-45-049 88.00 1 0.00 88.00
767-45-050 88.00 1 0.00 88.00
767-45-051 88.00 1 0.00 88.00
767-45-052 88.00 1 0.00 88.00
767-45-053 88.00 1 0.00 88.00
767-45-054 88.00 1 0.00 88.00
767-45-055 88.00 1 0.00 88.00
767-45-056 88.00 1 0.00 88.00
767-45-057 88.00 1 0.00 88.00
767-45-058 88.00 1 0.00 88.00
767-45-059 88.00 1 0.00 88.00
767-45-060 88.00 1 0.00 88.00
767-45-061 88.00 1 0.00 88.00
767-45-062 88.00 1 0.00 88.00
767-45-063 88.00 1 0.00 88.00
767-45-064 88.00 1 0.00 88.00
767-45-065 88.00 1 0.00 88.00
32 Accounts 32 $0.00 $2,816.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 12 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Lacrosse/Gera
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 767-46-001 $125.00 1 $0.00 $125.00
767-46-002 125.00 1 0.00 125.00
767-46-003 125.00 1 0.00 125.00
767-46-004 125.00 1 0.00 125.00
767-46-005 125.00 1 0.00 125.00
767-46-006 125.00 1 0.00 125.00
767-46-007 125.00 1 0.00 125.00
767-46-008 125.00 1 0.00 125.00
767-46-009 125.00 1 0.00 125.00
767-46-010 125.00 1 0.00 125.00
767-46-011 125.00 1 0.00 125.00
767-46-012 125.00 1 0.00 125.00
767-46-013 125.00 1 0.00 125.00
767-46-014 125.00 1 0.00 125.00
767-46-015 125.00 1 0.00 125.00
767-46-018 125.00 1 0.00 125.00
767-46-019 125.00 1 0.00 125.00
767-46-020 125.00 1 0.00 125.00
767-46-021 125.00 1 0.00 125.00
767-46-022 125.00 1 0.00 125.00
767-46-023 125.00 1 0.00 125.00
767-46-024 125.00 1 0.00 125.00
767-46-025 125.00 1 0.00 125.00
767-46-026 125.00 1 0.00 125.00
24 Accounts 24 $0.00 $3,000.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 13 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Llagas/Obata
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-23-032 $629.00 1 $0.00 $629.00
764-23-033 629.00 1 0.00 629.00
764-23-034 629.00 1 0.00 629.00
764-23-035 629.00 1 0.00 629.00
764-23-036 629.00 1 0.00 629.00
5 Accounts 5 $0.00 $3,145.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 14 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Llagas Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-49-002 $343.00 1 $0.00 $343.00
764-49-003 343.00 1 0.00 343.00
764-49-004 343.00 1 0.00 343.00
764-49-005 343.00 1 0.00 343.00
764-49-006 343.00 1 0.00 343.00
764-49-007 343.00 1 0.00 343.00
764-49-008 343.00 1 0.00 343.00
764-49-009 343.00 1 0.00 343.00
764-49-010 343.00 1 0.00 343.00
764-49-011 343.00 1 0.00 343.00
764-49-012 343.00 1 0.00 343.00
764-49-013 343.00 1 0.00 343.00
764-49-014 343.00 1 0.00 343.00
764-49-015 343.00 1 0.00 343.00
764-49-016 343.00 1 0.00 343.00
764-49-017 343.00 1 0.00 343.00
764-49-018 343.00 1 0.00 343.00
764-49-019 343.00 1 0.00 343.00
764-49-020 343.00 1 0.00 343.00
764-49-021 343.00 1 0.00 343.00
764-49-022 343.00 1 0.00 343.00
764-49-023 343.00 1 0.00 343.00
764-49-024 343.00 1 0.00 343.00
764-49-025 343.00 1 0.00 343.00
764-49-026 343.00 1 0.00 343.00
764-50-001 343.00 1 0.00 343.00
764-50-002 343.00 1 0.00 343.00
764-50-003 343.00 1 0.00 343.00
764-50-004 343.00 1 0.00 343.00
764-50-005 343.00 1 0.00 343.00
764-50-006 343.00 1 0.00 343.00
764-50-007 343.00 1 0.00 343.00
764-51-001 343.00 1 0.00 343.00
764-51-004 343.00 1 0.00 343.00
764-51-005 343.00 1 0.00 343.00
764-51-010 343.00 1 0.00 343.00
764-51-011 343.00 1 0.00 343.00
764-51-012 343.00 1 0.00 343.00
764-51-013 343.00 1 0.00 343.00
764-51-014 343.00 1 0.00 343.00
764-51-015 343.00 1 0.00 343.00
764-52-001 343.00 1 0.00 343.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 15 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Llagas Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-52-002 343.00 1 0.00 343.00
764-52-003 343.00 1 0.00 343.00
764-52-004 343.00 1 0.00 343.00
764-52-005 343.00 1 0.00 343.00
764-52-006 343.00 1 0.00 343.00
764-52-008 343.00 1 0.00 343.00
764-52-009 343.00 1 0.00 343.00
764-52-010 343.00 1 0.00 343.00
764-52-011 343.00 1 0.00 343.00
764-52-012 343.00 1 0.00 343.00
764-52-013 343.00 1 0.00 343.00
764-52-014 343.00 1 0.00 343.00
764-52-015 343.00 1 0.00 343.00
764-52-016 343.00 1 0.00 343.00
764-52-017 343.00 1 0.00 343.00
764-52-018 343.00 1 0.00 343.00
764-52-019 343.00 1 0.00 343.00
764-52-020 343.00 1 0.00 343.00
764-52-021 343.00 1 0.00 343.00
764-52-022 343.00 1 0.00 343.00
764-52-023 343.00 1 0.00 343.00
764-52-024 343.00 1 0.00 343.00
764-52-025 343.00 1 0.00 343.00
764-52-026 343.00 1 0.00 343.00
764-52-027 343.00 1 0.00 343.00
764-52-028 343.00 1 0.00 343.00
764-53-003 343.00 1 0.00 343.00
764-53-004 343.00 1 0.00 343.00
764-53-005 343.00 1 0.00 343.00
71 Accounts 71 $0.00 $24,353.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 16 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Mill Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 767-47-001 $285.00 1 $0.00 $285.00
767-47-002 285.00 1 0.00 285.00
767-47-003 285.00 1 0.00 285.00
767-47-004 285.00 1 0.00 285.00
767-47-005 285.00 1 0.00 285.00
767-47-006 285.00 1 0.00 285.00
767-47-007 285.00 1 0.00 285.00
767-47-008 285.00 1 0.00 285.00
767-47-009 285.00 1 0.00 285.00
767-47-010 285.00 1 0.00 285.00
767-47-011 285.00 1 0.00 285.00
767-47-012 285.00 1 0.00 285.00
767-47-013 285.00 1 0.00 285.00
767-47-014 285.00 1 0.00 285.00
767-47-015 285.00 1 0.00 285.00
767-47-016 285.00 1 0.00 285.00
767-47-017 285.00 1 0.00 285.00
767-47-018 285.00 1 0.00 285.00
767-47-019 285.00 1 0.00 285.00
767-47-020 285.00 1 0.00 285.00
767-47-021 285.00 1 0.00 285.00
767-47-022 285.00 1 0.00 285.00
767-47-023 285.00 1 0.00 285.00
767-47-029 285.00 1 0.00 285.00
767-47-030 285.00 1 0.00 285.00
767-47-031 285.00 1 0.00 285.00
767-47-032 285.00 1 0.00 285.00
767-47-033 285.00 1 0.00 285.00
767-47-034 285.00 1 0.00 285.00
767-47-035 285.00 1 0.00 285.00
767-47-036 285.00 1 0.00 285.00
767-47-037 285.00 1 0.00 285.00
767-47-038 285.00 1 0.00 285.00
767-47-039 285.00 1 0.00 285.00
767-47-040 285.00 1 0.00 285.00
767-47-041 285.00 1 0.00 285.00
767-47-042 285.00 1 0.00 285.00
767-47-043 285.00 1 0.00 285.00
767-47-044 285.00 1 0.00 285.00
767-47-045 285.00 1 0.00 285.00
767-47-046 285.00 1 0.00 285.00
767-47-047 285.00 1 0.00 285.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 17 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Mill Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 767-47-048 285.00 1 0.00 285.00
767-47-049 285.00 1 0.00 285.00
767-47-050 285.00 1 0.00 285.00
767-47-051 285.00 1 0.00 285.00
767-47-052 285.00 1 0.00 285.00
767-47-053 285.00 1 0.00 285.00
767-47-054 285.00 1 0.00 285.00
767-47-055 285.00 1 0.00 285.00
767-47-057 285.00 1 0.00 285.00
767-47-058 285.00 1 0.00 285.00
767-47-059 285.00 1 0.00 285.00
767-47-060 285.00 1 0.00 285.00
767-47-061 285.00 1 0.00 285.00
767-47-062 285.00 1 0.00 285.00
767-47-063 285.00 1 0.00 285.00
767-47-064 285.00 1 0.00 285.00
767-47-065 285.00 1 0.00 285.00
767-47-066 285.00 1 0.00 285.00
767-47-067 285.00 1 0.00 285.00
767-47-068 285.00 1 0.00 285.00
767-47-069 285.00 1 0.00 285.00
767-47-070 285.00 1 0.00 285.00
767-47-071 285.00 1 0.00 285.00
767-47-072 285.00 1 0.00 285.00
767-47-073 285.00 1 0.00 285.00
767-47-074 285.00 1 0.00 285.00
767-47-075 285.00 1 0.00 285.00
767-47-076 285.00 1 0.00 285.00
767-47-077 285.00 1 0.00 285.00
767-47-078 285.00 1 0.00 285.00
767-47-079 285.00 1 0.00 285.00
767-47-080 285.00 1 0.00 285.00
767-47-081 285.00 1 0.00 285.00
767-47-082 285.00 1 0.00 285.00
767-47-083 285.00 1 0.00 285.00
767-47-084 285.00 1 0.00 285.00
767-47-085 285.00 1 0.00 285.00
767-47-086 285.00 1 0.00 285.00
767-47-087 285.00 1 0.00 285.00
767-47-088 285.00 1 0.00 285.00
767-47-089 285.00 1 0.00 285.00
767-47-090 285.00 1 0.00 285.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 18 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Mill Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 84 Accounts 84 $0.00 $23,940.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 19 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Oak Creek I, II, III
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 779-51-001 $425.00 1 $0.00 $425.00
779-51-002 425.00 1 0.00 425.00
779-51-003 425.00 1 0.00 425.00
779-51-004 425.00 1 0.00 425.00
779-51-005 425.00 1 0.00 425.00
779-51-006 425.00 1 0.00 425.00
779-51-007 425.00 1 0.00 425.00
779-51-008 425.00 1 0.00 425.00
779-51-009 425.00 1 0.00 425.00
779-51-010 425.00 1 0.00 425.00
779-51-011 425.00 1 0.00 425.00
779-51-012 425.00 1 0.00 425.00
779-51-013 425.00 1 0.00 425.00
779-51-014 425.00 1 0.00 425.00
779-51-015 425.00 1 0.00 425.00
779-51-016 425.00 1 0.00 425.00
779-51-017 425.00 1 0.00 425.00
779-51-018 425.00 1 0.00 425.00
779-51-019 425.00 1 0.00 425.00
779-51-020 425.00 1 0.00 425.00
779-51-021 425.00 1 0.00 425.00
779-51-022 425.00 1 0.00 425.00
779-51-023 425.00 1 0.00 425.00
779-51-024 425.00 1 0.00 425.00
779-51-030 425.00 1 0.00 425.00
779-51-031 425.00 1 0.00 425.00
779-51-032 425.00 1 0.00 425.00
779-51-033 425.00 1 0.00 425.00
779-51-034 425.00 1 0.00 425.00
779-51-035 425.00 1 0.00 425.00
779-51-036 425.00 1 0.00 425.00
779-51-037 425.00 1 0.00 425.00
779-51-038 425.00 1 0.00 425.00
779-51-039 425.00 1 0.00 425.00
779-51-040 425.00 1 0.00 425.00
779-51-041 425.00 1 0.00 425.00
779-51-042 425.00 1 0.00 425.00
779-51-043 425.00 1 0.00 425.00
779-51-044 425.00 1 0.00 425.00
779-51-045 425.00 1 0.00 425.00
779-51-046 425.00 1 0.00 425.00
779-51-047 425.00 1 0.00 425.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 20 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Oak Creek I, II, III
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 779-51-048 425.00 1 0.00 425.00
779-51-049 425.00 1 0.00 425.00
779-51-050 425.00 1 0.00 425.00
779-51-051 425.00 1 0.00 425.00
779-51-052 425.00 1 0.00 425.00
779-51-053 425.00 1 0.00 425.00
779-51-054 425.00 1 0.00 425.00
779-52-004 425.00 1 0.00 425.00
779-52-005 425.00 1 0.00 425.00
779-52-006 425.00 1 0.00 425.00
779-52-007 425.00 1 0.00 425.00
779-52-008 425.00 1 0.00 425.00
779-52-009 425.00 1 0.00 425.00
779-52-010 425.00 1 0.00 425.00
779-52-011 425.00 1 0.00 425.00
779-52-012 425.00 1 0.00 425.00
779-52-013 425.00 1 0.00 425.00
779-52-014 425.00 1 0.00 425.00
779-52-015 425.00 1 0.00 425.00
779-52-016 425.00 1 0.00 425.00
779-52-017 425.00 1 0.00 425.00
779-52-018 425.00 1 0.00 425.00
779-52-019 425.00 1 0.00 425.00
779-52-020 425.00 1 0.00 425.00
779-52-021 425.00 1 0.00 425.00
779-52-022 425.00 1 0.00 425.00
779-52-023 425.00 1 0.00 425.00
779-52-024 425.00 1 0.00 425.00
779-52-025 425.00 1 0.00 425.00
779-52-026 425.00 1 0.00 425.00
779-52-027 425.00 1 0.00 425.00
779-52-028 425.00 1 0.00 425.00
779-52-029 425.00 1 0.00 425.00
779-52-030 425.00 1 0.00 425.00
779-52-031 425.00 1 0.00 425.00
779-52-032 425.00 1 0.00 425.00
779-52-033 425.00 1 0.00 425.00
779-52-034 425.00 1 0.00 425.00
779-52-035 425.00 1 0.00 425.00
779-52-037 425.00 1 0.00 425.00
779-52-038 425.00 1 0.00 425.00
779-52-039 425.00 1 0.00 425.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 21 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Oak Creek I, II, III
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 779-52-040 425.00 1 0.00 425.00
779-52-041 425.00 1 0.00 425.00
779-52-047 425.00 1 0.00 425.00
779-52-055 425.00 1 0.00 425.00
779-52-056 425.00 1 0.00 425.00
779-52-057 425.00 1 0.00 425.00
779-52-058 425.00 1 0.00 425.00
779-52-059 425.00 1 0.00 425.00
779-52-060 425.00 1 0.00 425.00
779-52-061 425.00 1 0.00 425.00
779-52-062 425.00 1 0.00 425.00
779-52-063 425.00 1 0.00 425.00
779-52-064 425.00 1 0.00 425.00
779-52-065 425.00 1 0.00 425.00
779-52-066 425.00 1 0.00 425.00
779-52-067 425.00 1 0.00 425.00
779-52-068 425.00 1 0.00 425.00
779-52-069 425.00 1 0.00 425.00
779-52-070 425.00 1 0.00 425.00
779-52-071 425.00 1 0.00 425.00
779-52-072 425.00 1 0.00 425.00
779-52-073 425.00 1 0.00 425.00
779-52-074 425.00 1 0.00 425.00
779-52-075 425.00 1 0.00 425.00
779-52-076 425.00 1 0.00 425.00
779-52-077 425.00 1 0.00 425.00
779-52-078 425.00 1 0.00 425.00
779-52-079 425.00 1 0.00 425.00
779-52-080 425.00 1 0.00 425.00
779-52-081 425.00 1 0.00 425.00
779-52-082 425.00 1 0.00 425.00
779-52-083 425.00 1 0.00 425.00
779-52-084 425.00 1 0.00 425.00
779-52-085 425.00 1 0.00 425.00
779-52-086 425.00 1 0.00 425.00
119 Accounts 119 $0.00 $50,575.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 22 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Rosehaven
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 817-10-005 $400.00 1 $0.00 $400.00
817-10-006 400.00 1 0.00 400.00
817-10-007 400.00 1 0.00 400.00
817-10-008 400.00 1 0.00 400.00
817-10-010 400.00 1 0.00 400.00
817-10-011 400.00 2 0.00 800.00
817-10-012 400.00 1 0.00 400.00
817-10-013 400.00 1 0.00 400.00
817-10-014 400.00 1 0.00 400.00
817-10-015 400.00 1 0.00 400.00
817-10-016 400.00 1 0.00 400.00
817-10-017 400.00 1 0.00 400.00
817-10-018 400.00 1 0.00 400.00
817-10-019 400.00 1 0.00 400.00
817-10-020 400.00 1 0.00 400.00
817-10-021 400.00 2 0.00 800.00
817-10-022 400.00 1 0.00 400.00
817-10-023 400.00 1 0.00 400.00
817-10-024 400.00 1 0.00 400.00
817-10-025 400.00 1 0.00 400.00
817-10-026 400.00 2 0.00 800.00
817-10-027 400.00 1 0.00 400.00
817-10-028 400.00 1 0.00 400.00
817-10-029 400.00 1 0.00 400.00
24 Accounts 27 $0.00 $10,800.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 23 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Sandalwood
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 728-11-027 $450.00 1 $0.00 $450.00
728-11-028 450.00 1 0.00 450.00
728-11-029 450.00 1 0.00 450.00
728-11-030 450.00 1 0.00 450.00
728-11-031 450.00 1 0.00 450.00
728-11-032 450.00 1 0.00 450.00
728-11-033 450.00 1 0.00 450.00
728-11-034 450.00 1 0.00 450.00
728-11-035 450.00 1 0.00 450.00
728-11-036 450.00 1 0.00 450.00
728-11-037 450.00 1 0.00 450.00
11 Accounts 11 $0.00 $4,950.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 24 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Sparhawk
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 764-31-025 $500.00 1 $0.00 $500.00
764-31-026 500.00 1 0.00 500.00
764-31-027 500.00 1 0.00 500.00
764-31-028 500.00 1 0.00 500.00
764-31-029 500.00 1 0.00 500.00
764-31-030 500.00 1 0.00 500.00
764-31-031 500.00 1 0.00 500.00
764-31-032 500.00 1 0.00 500.00
764-31-033 500.00 1 0.00 500.00
764-31-034 500.00 1 0.00 500.00
764-31-035 500.00 1 0.00 500.00
764-31-036 500.00 1 0.00 500.00
764-31-037 500.00 1 0.00 500.00
764-31-038 500.00 1 0.00 500.00
764-31-039 500.00 1 0.00 500.00
764-31-040 500.00 1 0.00 500.00
764-31-041 500.00 1 0.00 500.00
764-31-042 500.00 1 0.00 500.00
18 Accounts 18 $0.00 $9,000.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 25 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Stone Creek
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 726-06-016 $525.00 1 $0.00 $525.00
726-06-017 525.00 1 0.00 525.00
726-06-018 525.00 1 0.00 525.00
726-06-019 525.00 1 0.00 525.00
726-06-020 525.00 1 0.00 525.00
726-06-021 525.00 1 0.00 525.00
726-06-022 525.00 1 0.00 525.00
726-06-023 525.00 1 0.00 525.00
726-06-024 525.00 1 0.00 525.00
726-06-025 525.00 1 0.00 525.00
726-06-026 525.00 1 0.00 525.00
726-06-027 525.00 1 0.00 525.00
726-06-028 525.00 1 0.00 525.00
726-06-029 525.00 1 0.00 525.00
726-06-030 525.00 1 0.00 525.00
726-06-034 525.00 1 0.00 525.00
726-06-035 525.00 1 0.00 525.00
726-06-036 525.00 1 0.00 525.00
726-06-037 525.00 1 0.00 525.00
726-06-038 525.00 1 0.00 525.00
726-06-044 525.00 1 0.00 525.00
726-06-045 525.00 1 0.00 525.00
726-06-046 525.00 1 0.00 525.00
726-06-047 525.00 1 0.00 525.00
726-06-048 525.00 1 0.00 525.00
726-06-049 525.00 1 0.00 525.00
726-06-050 525.00 1 0.00 525.00
726-06-051 525.00 1 0.00 525.00
726-06-052 525.00 1 0.00 525.00
726-06-053 525.00 1 0.00 525.00
726-06-054 525.00 1 0.00 525.00
726-06-055 525.00 1 0.00 525.00
726-06-056 525.00 1 0.00 525.00
726-06-057 525.00 1 0.00 525.00
726-06-058 525.00 1 0.00 525.00
35 Accounts 35 $0.00 $18,375.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 26 of 27 03/22/2026 11:57:21AM

City of Morgan Hill
Sunnyside/Stonegate
Primary Assessment Roll for Fiscal Year 2026/27
APN Rate Per Unit Units Rounding Adjustment 2026/27 Assessment 773-31-034 $375.00 1 $0.00 $375.00
773-31-035 375.00 1 0.00 375.00
773-31-036 375.00 1 0.00 375.00
773-31-037 375.00 1 0.00 375.00
773-31-038 375.00 1 0.00 375.00
773-31-039 375.00 1 0.00 375.00
773-31-040 375.00 1 0.00 375.00
773-31-043 375.00 1 0.00 375.00
773-31-044 375.00 1 0.00 375.00
773-31-045 375.00 1 0.00 375.00
10 Accounts 10 $0.00 $3,750.00
748 ($1.39) $227,713.32 745 Total Accounts
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 27 of 27 03/22/2026 11:57:21AM

City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2026/27 22

7. HISTORICAL ACTUAL ASSESSMENT RATES
The historical actual assessment rates levied per Zone are identified on the following pages.

City of Morgan Hill
Landscape Assessment District No. 1
Actual Historical Assessment Rates Per Zone
Zone
Belle
Estates
Chang/
Bertelone
Conte
Gardens
Diana
Estates
Fox Hollow/
Murphy Sp.

Hamilton
Square
Jackson
Meadows
#6
Jackson
Meadows
#7
La Grande
Estates
Lacrosse/
Gera
Annexation Number 93-03 93-05 92-10 94-01 Original 94-03 93-06 91-03 95-03 91-04 Original Rate $502.22 $1,215.00 $477.82 $139.39 $106.15 $425.54 $108.10 $314.58 $88.00 $142.99 Unit Count 36 8 11 64 75 38 70 10 32 24
1991/92 - - - $139.39 - - - $314.58 - $142.99
1992/93 - - - - - - - - - -
1993/94 - - - 69.80 - - - 77.35 - 8.93
1994/95 - - - 69.80 $106.15 - - 77.35 - 8.93
1995/96 $502.00 $1,215.00 $285.98 54.14 79.92 $425.54 $108.10 88.66 - 8.93 1996/97 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.93 1997/98 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.93 1998/99 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.93 1999/00 147.81 8.93 477.82 81.03 49.11 399.71 108.10 314.50 $88.00 8.93 2000/01 147.81 8.93 477.82 81.03 49.11 399.71 108.10 314.50 88.00 8.93 2001/02 147.80 8.92 477.82 54.80 49.10 399.70 86.38 314.50 88.00 8.92 2002/03 147.80 8.92 477.82 70.00 101.10 399.70 104.18 314.50 88.00 8.92 2003/04 175.00 8.92 477.82 80.00 101.10 399.70 104.18 314.50 88.00 8.92 2004/05 180.00 8.92 477.82 80.00 101.10 399.70 108.10 314.50 88.00 8.92 2005/06 180.00 94.92 477.82 105.00 141.10 399.70 108.10 314.50 88.00 8.92 2006/07 180.00 94.92 477.82 105.00 141.10 399.70 108.10 314.50 88.00 8.92 2007/08 194.00 94.92 477.82 135.00 141.10 399.70 108.10 314.50 88.00 8.92 2008/09 234.00 94.92 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2009/10 234.00 200.00 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2010/11 234.00 300.00 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2011/12 282.00 400.00 477.82 139.39 168.48 425.54 108.10 314.50 88.00 50.00 2012/13 282.00 400.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2013/14 320.00 500.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2014/15 320.00 500.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2015/16 320.00 550.00 400.00 139.39 173.53 425.54 108.00 140.00 88.00 50.00 2016/17 320.00 550.00 400.00 139.39 173.53 425.54 108.00 100.00 88.00 50.00 2017/18 320.00 550.00 400.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2018/19 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2019/20 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2020/21 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2021/22 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2022/23 310.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2023/24 310.00 550.00 365.00 139.39 173.53 425.00 108.00 100.00 88.00 50.00 2024/25 310.00 550.00 365.00 139.39 173.53 425.00 108.00 100.00 88.00 50.00 2025/26 310.00 550.00 365.00 139.39 173.53 425.00 108.00 100.00 88.00 50.00 2026/27 450.00 550.00 365.00 139.39 173.53 425.00 108.00 275.00 88.00 125.00

City of Morgan Hill
Landscape Assessment District No. 1
Actual Historical Assessment Rates Per Zone
Zone
Annexation Number
Original Rate
Unit Count
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
2026/27
Llagas Creek
Estates
Llagas/
Obata Mill Creek Oak Creek
Parsons
Corner Rose Haven Sandalwood Sparhawk Stone Creek
Sunnyside/
Stone Gate
91-05 91-07 93-01 94-04 95-02 95-01 96-01 91-06 94-02 91-01 $140.84 $629.16 $186.82 $453.82 $568.32 $488.47 $192.39 $174.77 $306.66 $449.40 71 5 84 119 10 27 11 18 35 10
$140.85 $629.16 - - - - - $174.77 - $449.40
- - - - - - - - - -

19.13 335.37 - - - - - 93.03 - 15.05

19.13 15.05 - - - - - 308.84 - 15.04

76.60 15.05 $186.82 $453.82 - - - 226.46 $306.66 15.04

59.54 8.93 64.57 47.67 $568.32 $488.47 - 147.33 146.66 8.93

59.54 8.93 64.57 47.67 457.40 189.73 - 147.33 146.66 8.93

59.54 8.93 64.57 337.09 457.40 189.73 - 147.33 146.66 8.93 140.85 8.93 95.83 320.52 457.40 189.73 $192.36 147.33 275.00 8.93 140.85 8.93 158.64 245.16 457.40 189.73 192.36 147.33 275.00 8.93 105.86 8.92 158.64 150.00 457.40 189.72 192.36 147.32 275.00 8.92 140.00 8.92 182.64 250.00 300.00 300.00 192.36 147.32 275.00 275.00 140.00 8.92 120.00 300.00 300.00 300.00 192.36 147.32 275.00 192.50 140.00 8.92 120.00 300.00 300.00 300.00 192.36 147.32 306.66 192.50 190.00 53.92 138.00 300.00 430.00 300.00 192.36 202.32 306.66 332.50 190.00 53.92 138.00 300.00 430.00 300.00 192.36 202.32 306.66 332.50 190.00 53.92 168.00 300.00 460.00 330.00 192.36 208.38 306.66 332.50 195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50 195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50 195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50 195.70 53.92 186.82 350.00 250.00 450.00 192.36 241.58 306.66 332.50 195.70 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 332.50 233.67 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 412.50 233.67 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 412.50 233.67 143.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 375.00 233.67 143.92 186.82 350.00 250.00 488.00 192.36 248.82 388.46 375.00 233.67 143.92 186.82 350.00 250.00 488.00 192.36 248.82 388.46 375.00 233.67 400.00 186.82 350.00 250.00 400.00 450.00 248.82 388.46 375.00 233.67 400.00 186.82 350.00 0.00 400.00 450.00 248.82 388.46 375.00 233.67 400.00 285.00 350.00 0.00 400.00 450.00 248.82 388.46 375.00 233.67 400.00 285.00 350.00 0.00 400.00 450.00 248.82 388.46 375.00 233.67 400.00 285.00 425.00 0.00 400.00 450.00 334.00 388.46 375.00 233.67 450.00 285.00 425.00 0.00 400.00 450.00 334.00 388.46 375.00 233.67 450.00 285.00 425.00 0.00 400.00 450.00 500.00 388.46 375.00 343.00 450.00 285.00 425.00 0.00 400.00 450.00 500.00 388.46 375.00 343.00 629.00 285.00 425.00 0.00 400.00 450.00 500.00 525.00 375.00

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, INITIATING PROCEEDINGS FOR THE

LEVY AND COLLECTION OF ASSESSMENTS FOR THE

CITY OF MORGAN HILL LANDSCAPE ASSESSMENT
DISTRICT NO. 1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council of the Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and,
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Annual Report: The City Council hereby orders NBS to prepare and file with the City Clerk the Annual Report concerning the levy and collection of assessments within the Assessment District for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

2. New Improvements or Changes to Existing Improvements: There are no changes to existing improvements, nor are there any items being added to the list of improvements previously approved at the formation of the Assessment District.

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 6th day of May 2026.

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 May 6th 2026.

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

DATE:______________________ _______________________________________ Michelle Bigelow, City Clerk

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, APPROVING THE ANNUAL REPORT FOR

THE CITY OF MORGAN HILL LANDSCAPE ASSESSMENT
DISTRICT NO. 1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council of the City of Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill’s (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and,
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report; and WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Approval of Report: The City Council approves the Annual Report concerning the levy of assessments for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 6th day of May 2026.

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 May 6th, 2026.

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

DATE:______________________ _______________________________________ Michelle Bigelow, City Clerk

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, DECLARING ITS INTENTION TO LEVY

AND COLLECT ASSESSMENTS FOR THE CITY OF
MORGAN HILL LANDSCAPE ASSESSMENT DISTRICT NO. 1
FOR FISCAL YEAR 2026/27
WHEREAS, the City Council of the City of Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the Improvements for the fiscal year commencing July 1, 2026 and ending June 30, 2027. The City Council finds that the public’s best interest requires such action.

2. Improvements: The Improvements include, but are not limited to: ground cover, shrubs, plants and trees, irrigation and drainage systems, graffiti removal, entry monuments, and associated appurtenant facilities. Services provided include all necessary service, operations, administration and maintenance required to keep the above mentioned improvements in a healthy, vigorous and satisfactory condition.

3. The City of Morgan Hill Landscape Assessment District No. 1 Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the office of the City Clerk, which assessment diagram is made a part hereof by reference.

4. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.

5. Notice of Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council.

The Public Hearing will be held on Wednesday June 3, 2026 at 6:00 PM or as soon thereafter as is feasible in the Council Chambers located at 17575 Peak Avenue, Morgan Hill, CA 95037. The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626 of the Act.

6. Increase of Assessment: The maximum assessment is not proposed to increase from the previous year maximum assessment above what was previously approved by the property owners (as “increased assessment” is defined in Section 54954.6 of the Government Code).

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 6th day of May 2026.

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 May 6th, 2026.

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

DATE:___________________ _____________________________________ Michelle Bigelow, City Clerk

13 CITY COUNCIL STAFF REPORT
MEETING DATE: May 6, 2026
PREPARED BY:

Mario Pichardo, Environmental Services Administrator
APPROVED BY: City Manager

APPROVE SOLID WASTE MANAGEMENT RATE ADJUSTMENT FOR
2026

RECOMMENDATION(S)
Adopt a resolution approving an adjustment to the maximum allowable solid waste collection rates effective July 1, 2026.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment
Strategic Priorities 2026-2027
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this report is to present Recology South Valley’s (Recology) request for an annual adjustment to the maximum allowable solid waste service rates within the City of Morgan Hill for City Council consideration. Under the City’s franchise agreement with Recology, annual rate adjustments are calculated using a formula that reflects changes in specific cost components. These components include the Consumer Price Index (CPI), compressed natural gas fuel costs, solid waste disposal costs, recycling processing costs, and exceptional costs incurred or anticipated for City-requested programs and regulatory compliance activities. Based on these factors, Recology has requested a 2.82% adjustment to solid waste collection rates effective July 1, 2026.

Recology submitted its request in accordance with the franchise agreement timeline, and staff has reviewed the application and supporting documentation. Staff determined that the proposed adjustment was calculated in accordance with the methodology established in the franchise agreement.

For residential customers, applying the 2.82% adjustment to the current basic residential service rate of $44.78 results in an increase of $1.26 per month, for a new monthly rate of $46.04. The hillside residential rate will increase from $48.71 to $50.08 per month. For commercial customers, a business utilizing a 3-yard dumpster serviced once per week will see the monthly rate increase from $492.57 to $506.46. Customers who qualify for reduced PG&E utility rates remain eligible to receive discounted solid waste service rates by providing documentation of their PG&E discount status to

13 Recology.

Staff recommends that the City Council adopt the resolution approving the adjustment to maximum allowable rates effective July 1, 2026.

SERVICE RATE CALCULATION COMPONENTS
Consumer Price Index (CPI)
The Consumer Price Index component adjusts the portion of rates associated with labor, equipment, maintenance, facilities, utilities, insurance, administrative costs, and other operational expenses. This component reflects changes in regional inflation affecting Recology’s operating costs.

Fuel
The fuel component reflects changes in the cost of compressed natural gas used to operate Recology’s collection vehicles. This adjustment accounts for fluctuations in fuel pricing and their impact on operating expenses.

Solid Waste Disposal
The disposal component adjusts rates based on changes in the cost of disposing of solid waste at the designated landfill facility. These costs are determined by disposal facility rate adjustments.

Recyclables Processing
This component adjusts rates based on changes in the cost of processing recyclable materials at recycling processing facilities. Market conditions and operational costs influence this component.

Exceptional Costs
Exceptional costs allow Recology to recover expenses associated with City-requested services and regulatory compliance activities. These costs may include:
• Performance audits
• Compost procurement requirements
• Homeless encampment cleanup services
• City-requested disposal vouchers
• Implementation funding for regulatory compliance programs Exceptional costs for FY 2026-27 total $715,894, which includes $560,355 in implementation funding, $52,752 for compost procurement, and $102,787 in City franchise fees. These costs represent an increase of $18,456 from the prior year, resulting in a 0.12% impact on the overall rate adjustment. Implementation funding for FY 2026-27 in the amount of $560,355 will support City compliance with State and federal regulatory requirements related to solid waste and stormwater programs.

COMMUNITY ENGAGEMENT:

Inform

13 The community will be notified of the approved rate adjustment through notices included in Recology billing statements prior to implementation.

ALTERNATIVE ACTIONS:

Not applicable as the City is contractually obligated to approve this amendment to the maximum rates for the normal annual adjustment.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has reviewed and approved annual solid waste rate adjustments for many years. In 2022, the City Council approved the current franchise agreement, which established the methodology used for calculating annual rate adjustments. The Council subsequently approved rate adjustments in 2023, 2024, and 2025 using the same methodology.

FISCAL AND RESOURCE IMPACT:

Approval of the proposed rate adjustment is anticipated to increase franchise fee revenue by approximately $95,000 annually from FY2025-26 to FY2026-27. Actual revenues may vary depending on customer activity and service levels. Franchise fees are deposited into the General Fund (010). Staff review and processing of this rate application are included within the Public Services Department’s existing work program.

CEQA (California Environmental Quality Act):

Not a Project
This action does not result in a direct or indirect physical change to the environment and therefore does not constitute a project under CEQA.

Rate change calculation formula X (1) - X (2)
X (2)
1) CPI Index Component
X (1) = October, 2025 358.280
X (2) = October, 2024 349.370
CPI = 358.28 - 349.37
349.370
CPI = 2.55%
Percentage Applicable 83.5%

83.5% of CPI = 2.13%
2) Fuel (PG&E Schedule G-NGV1)
X (1) = 12-mo Average ended Oct-25 1.272
X (2) = 12-mo Average ended Oct-24 1.261
Fuel = 1.272 - 1.261

1.261
Fuel = 0.87%
Percentage Applicable 3.5%

3.5% of Fuel = 0.03%
3) Disposal Component
X (1) = MSW Disposal Rate Oct-25 28.49
X (2) = MSW Disposal Rate Oct-24 28.06
Disposal Change = 28.49 - 28.06

28.06 Disposal Change = 1.53%
Percentage Applicable 10.5%

10.5% of Disposal = 0.16%
4) Recyclables Processing Component
X (1) = Recyclables unit cost per ton 12-mo ended Oct-25 23.59 X (2) = Recyclables unit cost per ton 12-mo ended Oct-24 20.45 Recyclables unit cost per ton Change = 23.59 - 20.45

20.45 Recyclables unit cost per ton Change = 15.35%
Percentage Applicable 2.5%

2.5% of Recyclables Processing = 0.38%
5) Exceptional Costs
Annualized Billed Revenue 15,539,049
Remove Prior Year Exceptional Costs (697,438)
Performance Audit 0
City requsted homeless encampment 0
and other clean-up events 0
City requested dispoals/compost vouchers 52,752
Annual Mandatory Implementation Funds 560,355
Add 15.5% City Fees 102,787
Current Year Exceptional Costs 715,894
TOTAL EXCEPTIONAL COSTS 18,456
Exceptional Costs Adjustment = 0.12%
Total rate adjustment (1+2+3+4+5) 2.82%

RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL

RATE ADJUSTMENT
EFFECTIVE JULY 1, 2026
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 1 2/25/2026 2:16 PM

Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2015 254.910 257.622 259.117 259.917 261.019 260.289 258.572 256.723 260.421 2016 262.600 264.565 266.041 267.853 270.306 269.483 266.344 263.911 268.777 2017 271.626 274.589 275.304 275.893 277.570 277.414 274.924 273.306 276.542 2018 281.308 283.422 286.062 287.664 289.673 289.896 285.550 282.666 288.435 2019 291.227 294.801 295.259 295.490 298.443 297.007 295.004 293.150 296.859 2020 299.690 298.074 300.032 300.182 301.736 302.948 300.084 299.109 301.059 2021 304.387 309.419 309.497 311.167 313.265 315.805 309.721 306.724 312.718 2022 320.195 324.878 330.539 328.871 332.062 331.222 327.060 323.408 330.711 2023 337.173 338.496 340.056 340.094 341.219 339.915 339.050 337.689 340.411 2024 345.151 351.247 351.064 349.290 349.370 348.001 348.417 347.857 348.977 2025 354.432 355.707 356.460 357.992 358.280 358.568 356.005 354.522 357.786 Year over Year % Change 2.55%
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSA0
Not Seasonally Adjusted
All items in San Francisco-Oakland-Hayward, CA,
all urban consumers, not seasonally adjusted
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2015 to 2025
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 2A 2/25/2026 2:16 PM

https://www.pge.com/tariffs/GRF.SHTML
Effective Date
Advice
Number
Customer
Charge
Procurement
Charge
Transportation
Charge
Total G-NGV1
Charge4/
Cap-and-Trade
Cost Exemption
Credit 5/
PPP
Surcharge4/
11/01/23 4821-G $0.44121 $0.64714 $0.63972 $1.28686 $0.11886 $0.04866 12/01/23 4828-G $0.44121 $0.84001 $0.63972 $1.47973 $0.11886 $0.04866 01/01/24 4847-G $0.44121 $0.67924 $0.86390 $1.54314 $0.17989 $0.05218 02/01/24 4858-G $0.44121 $0.59844 $0.88048 $1.47892 $0.17989 $0.05218 03/01/24 4872-G $0.44121 $0.37285 $0.88048 $1.25333 $0.17989 $0.05218 04/01/24 4882-G $0.44121 $0.04226 $0.90403 $0.94629 $0.17989 $0.05218 05/01/24 4900-G $0.44121 $0.06196 $0.90403 $0.96599 $0.17989 $0.05218 06/01/24 4919-G $0.44121 $0.14791 $0.90403 $1.05194 $0.17989 $0.05218 07/01/24 4926-G $0.44121 $0.33826 $0.90403 $1.24229 $0.17989 $0.05218 08/01/24 4947-G $0.44121 $0.47120 $0.90403 $1.37523 $0.17989 $0.05218 09/01/24 4962-G $0.44121 $0.35980 $0.94226 $1.30206 $0.19678 $0.05218 10/01/24 4975-G $0.44121 $0.26991 $0.94226 $1.21217 $0.19678 $0.05218 11/01/24 4988-G $0.44121 $0.36645 $0.94226 $1.30871 $0.19678 $0.05218 12/01/24 5003-G $0.44121 $0.44075 $0.94226 $1.38301 $0.19678 $0.05218 01/01/25 5012-G $0.44121 $0.42303 $0.97682 $1.39985 $0.14753 $0.06181 02/01/25 5026-G $0.44121 $0.37644 $0.97682 $1.35326 $0.14753 $0.06181 03/01/25 5037-G $0.44121 $0.25381 $0.97682 $1.23063 $0.14753 $0.06181 04/01/25 5046-G $0.44121 $0.15778 $0.97682 $1.13460 $0.14753 $0.06181 05/01/25 5061-G $0.44121 $0.20044 $0.97682 $1.17726 $0.14753 $0.06181 06/01/25 5071-G $0.44121 $0.25764 $0.97682 $1.23446 $0.14753 $0.06181 07/01/25 5080-G $0.44121 $0.25539 $0.97682 $1.23221 $0.14753 $0.06181 08/01/25 5089-G $0.44121 $0.24768 $0.97695 $1.22463 $0.14753 $0.06181 09/01/25 2102-G $0.44121 $0.30197 $0.97414 $1.27611 $0.14753 $0.06181 10/01/25 5115-G $0.44121 $0.33209 $0.97414 $1.30623 $0.14753 $0.06181 Nov-23 to Oct-24 Average $1.26100
Nov-24 to Oct-25 Average $1.27200
Year over Year % Change 0.87%
1/ Rate Schedule G-NGV1 was converted to Standard Status, rather than Experimental, effective August 30, 2008, due to Advice Letter 2945-G. 2/ Unless otherwise noted.
3/ The procurement rate includes a charge of $0.06258 per therm to reflect account balance amortizations in accordance with Advice Letter 3157-G.

Schedule G-PPPS (Public Purpose Program surcharge) needs to be added to the Total G-NGV1 Charge for bill calculation. 4/ See Schedule G-PPPS for details and exempt customers. 5/ The Cap-and-Trade Cost Exemption Credit is applicable to Covered Entities (i.e., customers that currently have a direct obligation to pay for allowances directly to the Air Resources Board for their Greenhouse Gas (GHG) emissions) who will see a line item credit on their bill equal to $0.10235 per therm times their monthly billed volumes. See tariff for further explanation.

November 1, 2023, to October 31, 2025
($/therm2/)
Pacific Gas and Electric Company
Schedule G-NGV1
Natural Gas Service for Compression1/
on Customers' Premises
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 2B 2/25/2026 2:16 PM

Disposal Component
Per JS Letter $ 28.49
Morgan Hill Rate Application - Effective 7-1-26Exhibit 2C 2/25/2026 2:16 PM

Disposal Component
Per JS Letter $ 28.06
Morgan Hill Rate Application - Effective 7-1-26Exhibit 2C 2/25/2026 2:16 PM

Recyclables Processing Component
Month Tons Cost/(Revenue) $/Ton
Nov-23 1,283.03 31,722.65 $ 24.72 $
Dec-23 1,372.17 42,779.40 $ 31.18 $
Jan-24 1,575.62 45,167.38 $ 28.67 $
Feb-24 1,192.30 43,407.28 $ 36.41 $
Mar-24 1,368.19 24,347.41 $ 17.80 $
Apr-24 1,338.81 21,054.18 $ 15.73 $
May-24 1,402.26 19,954.72 $ 14.23 $
Jun-24 1,277.42 22,510.05 $ 17.62 $
Jul-24 1,345.29 12,516.23 $ 9.30 $
Aug-24 1,321.59 19,593.68 $ 14.83 $
Sep-24 1,225.93 15,811.46 $ 12.90 $
Oct-24 1,331.77 29,085.44 $ 21.84 $
16,034.38 $ 327,949.88 $ 20.45
Month Tons Cost/(Revenue) $/Ton
Nov-24 1,292.96 36,207.99 $ 28.00 $
Dec-24 1,565.80 41,911.20 $ 26.77 $
Jan-25 1,479.24 33,130.18 $ 22.40 $
Feb-25 1,273.19 37,843.69 $ 29.72 $
Mar-25 1,239.86 34,426.79 $ 27.77 $
Apr-25 1,294.23 28,266.32 $ 21.84 $
May-25 1,337.24 27,413.50 $ 20.50 $
Jun-25 1,286.95 27,502.97 $ 21.37 $
Jul-25 1,907.46 39,984.31 $ 20.96 $
Aug-25 1,295.77 27,453.78 $ 21.19 $
Sep-25 1,325.19 29,373.88 $ 22.17 $
Oct-25 1,350.28 29,208.18 $ 21.63 $
16,648.17 $ 392,722.79 $ 23.59
YOY% 15.35%
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 2D 2/25/2026 2:16 PM

Exceptional Costs
Implementation Funding: $560,355
2025 Morgan Hill Compost Procurement
Transaction Number DATE FARM TONS Yard COST
Market
Rate per
Yard
Procurement
Requirement
Left (Tons)
2198
2025-1 1/17/2025 La Jolla Farming2000 4000 $48,000.00 $12 198 2025-2 4/3/2025 Keene's Greens4 8 $96.00 $12 194
2025-3 6/27/2025 Fred Palla Farms 194 388 $4,656.00 $12 0 TOTAL $52,752.00

MORGAN HILL
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 2E 2/25/2026 2:16 PM

Current Add New
DESCRIPTION Rates 2.82% Rates
Residential Rates
BASIC SINGLE FAMILY 44.78 1.26 46.04
SGL FAM - NO STREET SWEEPING 44.22 1.25 45.47
HILLSIDE RESIDENTIAL 48.71 1.37 50.08
HILLSIDE RESIDENTIAL - NO SWEEPING 48.02 1.35 49.37
LOW INCOME 35.98 1.01 36.99
LOW INCOME - NO ST SWEEPING 35.53 1.00 36.53

EX YW CONTAINER RENT
BULKY MATERIAL (1-3 ITEMS) 59.63 1.68 61.31
BULKY MATERIAL (EACH EXTRA ITEM) 23.82 0.67 24.49
SIDE/BACKYARD SERV 17.87 0.50 18.37
SIDE/BACKYARD SERV Disabled FREE FREE FREE
TOTER RENTAL 7.57 0.21 7.78
RETURNED TRIP COLLECTION 46.65 1.32 47.97
Commercial Rates
1 CAN COMM (32 GALLON) 27.39 0.77 28.16
2 CANS COMM (64 GALLON) 44.90 1.27 46.17
3 CANS COMM (96 GALLON) 62.50 1.76 64.26
4 CANS COMM (128 GALLON) 80.11 2.26 82.37
5 CANS COMM (160 GALLON) 97.70 2.76 100.46
6 CANS COMM (192 GALLON) 115.34 3.25 118.59
7 CANS COMM (224 GALLON) 132.85 3.75 136.60
8 CANS COMM (256 GALLON) 150.41 4.24 154.65
9 CANS COMM (288 GALLON) 168.00 4.74 172.74
10 CANS COMM (320 GALLON) 185.58 5.23 190.81
1 CAN COMM (32 GALLON) w/cart 34.96 0.99 35.95
2 CANS COMM (64 GALLON) w/cart 52.46 1.48 53.94
3 CANS COMM (96 GALLON) w/cart 70.06 1.98 72.04

ORGANICS
32 GALLON 1 X WEEK 21.92 0.62 22.54
32 GALLON 2 X WEEK 41.57 1.17 42.74
32 GALLON 3 X WEEK 61.20 1.73 62.93
32 GALLON 4 X WEEK 80.84 2.28 83.12
32 GALLON 5 X WEEK 100.49 2.83 103.32
32 GALLON CONTAMINATED Recycle and Organics 46.65 1.32 47.97 64 GALLON 1 X WEEK 35.92 1.01 36.93
64 GALLON 2 X WEEK 68.11 1.92 70.03
64 GALLON 3 X WEEK 100.28 2.83 103.11
64 GALLON 4 X WEEK 132.48 3.74 136.22
64 GALLON 5 X WEEK 164.66 4.64 169.30
64 GALLON CONTAMINATED Recycle and Organics 46.65 1.32 47.97 96 GALLON 1 X WEEK 49.99 1.41 51.40
96 GALLON 2 X WEEK 94.80 2.67 97.47
96 GALLON 3 X WEEK 139.57 3.94 143.51
96 GALLON 4 X WEEK 184.37 5.20 189.57
96 GALLON 5 X WEEK 229.15 6.46 235.61
96 GALLON CONTAMINATED Recycle and Organics 46.65 1.32 47.97

RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2026
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 3 2/25/2026 2:16 PM

Current Add New
DESCRIPTION Rates 2.82% Rates

RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2026
Commercial Rates

GARBAGE
1 YD 1 X WEEK 234.63 6.62 241.25
1 YD 2 X WEEK 444.88 12.55 457.43
1 YD 3 X WEEK 655.08 18.47 673.55
1 YD 4 X WEEK 865.33 24.40 889.73
1 YD 5 X WEEK 1,075.54 30.33 1,105.87
1 YD 6 X WEEK 1,284.21 36.21 1,320.42
2 YD 1 X WEEK 340.06 9.59 349.65
2 YD 2 X WEEK 644.74 18.18 662.92
2 YD 3 X WEEK 949.41 26.77 976.18
2 YD 4 X WEEK 1,254.11 35.37 1,289.48
2 YD 5 X WEEK 1,558.73 43.96 1,602.69
2 YD 6 X WEEK 1,861.17 52.48 1,913.65
1/2 3 YD 1 X WEEK (Grandfather) 246.27 6.94 253.21
3 YD 1 X WEEK 492.57 13.89 506.46
3 YD 2 X WEEK 938.01 26.45 964.46
3 YD 3 X WEEK 1,383.56 39.02 1,422.58
3 YD 4 X WEEK 1,828.94 51.58 1,880.52
3 YD 5 X WEEK 2,274.41 64.14 2,338.55
3 YD 6 X WEEK 2,719.86 76.70 2,796.56
4 YD 1 X WEEK 637.36 17.97 655.33
4 YD 2 X WEEK 1,211.25 34.16 1,245.41
4 YD 3 X WEEK 1,785.20 50.34 1,835.54
4 YD 4 X WEEK 2,359.16 66.53 2,425.69
4 YD 5 X WEEK 2,933.06 82.71 3,015.77
4 YD 6 X WEEK 3,506.99 98.90 3,605.89
6 YD 1 X WEEK 952.29 26.85 979.14
6 YD 2 X WEEK 1,822.45 51.39 1,873.84
6 YD 3 X WEEK 2,692.62 75.93 2,768.55
6 YD 4 X WEEK 3,562.84 100.47 3,663.31
6 YD 5 X WEEK 4,433.04 125.01 4,558.05
6 YD 6 X WEEK 5,303.21 149.55 5,452.76
SPECIAL COLLECTION 39.14 1.10 40.24

ORGANICS
1 YD 1 X WEEK 5.29 187.70 192.99
1 YD 2 X WEEK 10.04 355.88 365.92
1 YD 3 X WEEK 14.78 524.06 538.84
1 YD 4 X WEEK 19.52 692.27 711.79
1 YD 5 X WEEK 24.26 860.43 884.69
1 YD 6 X WEEK 28.97 1,027.36 1,056.33
1 YD CONTAMINATED Recycle and Organics 1.65 58.66 60.31 2 YD 1 X WEEK 7.67 272.05 279.72
2 YD 2 X WEEK 14.55 515.79 530.34
2 YD 3 X WEEK 21.42 759.52 780.94
2 YD 4 X WEEK 28.29 1,003.28 1,031.57
2 YD 5 X WEEK 35.17 1,246.99 1,282.16
2 YD 6 X WEEK 41.99 1,488.95 1,530.94
2 YD CONTAMINATED Recycle and Organics 2.40 85.02 87.42 3 YD 1 X WEEK 11.11 394.07 405.18
3 YD 2 X WEEK 21.16 750.42 771.58
3 YD 3 X WEEK 31.21 1,106.84 1,138.05
3 YD 4 X WEEK 41.26 1,463.16 1,504.42
3 YD 5 X WEEK 51.31 1,819.53 1,870.84
3 YD 6 X WEEK 61.36 2,175.87 2,237.23
3 YD CONTAMINATED Recycle and Organics 3.47 123.15 126.62 Morgan Hill Rate Application - Effective 7-1-26 Exhibit 3 2/25/2026 2:16 PM

Current Add New
DESCRIPTION Rates 2.82% Rates

RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2026
4 YD 1 X WEEK 14.38 509.89 524.27
4 YD 2 X WEEK 27.33 969.02 996.35
4 YD 3 X WEEK 40.27 1,428.16 1,468.43
4 YD 4 X WEEK 53.22 1,887.33 1,940.55
4 YD 5 X WEEK 66.17 2,346.45 2,412.62
4 YD 6 X WEEK 79.12 2,805.61 2,884.73
4 YD CONTAMINATED Recycle and Organics 4.49 159.34 163.83 6 YD 1 X WEEK 21.48 761.83 783.31
6 YD 2 X WEEK 41.11 1,457.96 1,499.07
6 YD 3 X WEEK 60.75 2,154.12 2,214.87
6 YD 4 X WEEK 80.38 2,850.26 2,930.64
6 YD 5 X WEEK 100.01 3,546.43 3,646.44
6 YD 6 X WEEK 119.64 4,242.57 4,362.21
6 YD CONTAMINATED Recycle and Organics 6.71 238.07 244.78 SPECIAL COLLECTION Per yard 0.88 31.29 32.17
REGULAR COMPACTOR (PER YARD) 61.82 1.74 63.56
RECYCLE COMPACTOR (PER YARD) 36.54 1.03 37.57
SUPER COMPACTOR (PER YARD) 123.60 3.49 127.09
20 YARD DEBRIS BOX 680.35 19.19 699.54
35 YARD DEBRIS BOX 971.95 27.41 999.36
40 YARD DEBRIS BOX 1,134.01 31.98 1,165.99

ORGANICS
20 YARD DEBRIS BOX 15.35 544.29 559.64
35 YARD DEBRIS BOX 21.93 777.56 799.49
40 YARD DEBRIS BOX 25.58 907.21 932.79
Debris Box Contaminated
20 YARD DEBRIS BOX Contaminated 19.19 680.35 699.54
35 YARD DEBRIS BOX Contaminated 27.41 971.95 999.36
40 YARD DEBRIS BOX Contaminated 31.98 1,134.01 1,165.99 Debris Box Return Trip Fee 2.48 87.87 90.35
PERM RENTAL 360.46 10.16 370.62
PERM DISPOSAL (PER YARD) 33.90 0.96 34.86
CARDBOARD COMPACTOR w/ garbage service FREE FREE FREE
20 YARD CARDBOARD w/ garbage service FREE FREE FREE
40 YARD CARDBOARD w/ garbage service FREE FREE FREE
20 YARD OTHER RECYCLABLES 347.77 9.81 357.58
40 YARD OTHER RECYCLABLES 579.66 16.35 596.01
20 YARD DEBRIS BOX HILLSIDE 848.29 23.92 872.21
40 YARD DEBRIS BOX HILLSIDE 1,301.31 36.70 1,338.01
Compactor Front Loader Service
2 YARD COMPACTOR 1 X WEEK 535.78 15.11 550.89
2 YARD COMPACTOR 2 X WEEK 1,071.52 30.22 1,101.74
2 YARD COMPACTOR 3 X WEEK 1,607.29 45.33 1,652.62
3 YARD COMPACTOR 1 X WEEK 803.66 22.66 826.32
3 YARD COMPACTOR 2 X WEEK 1,607.29 45.33 1,652.62
Super Compactor Front Loader Service
2 YARD COMPACTOR 1 X WEEK 1,071.29 30.21 1,101.50
2 YARD COMPACTOR 2 X WEEK 2,142.55 60.42 2,202.97
2 YARD COMPACTOR 3 X WEEK 3,213.84 90.63 3,304.47
3 YARD COMPACTOR 1 X WEEK 1,606.90 45.31 1,652.21
3 YARD COMPACTOR 2 X WEEK 3,213.84 90.63 3,304.47
Special Street Sweeping
M-F 8:00AM-5:00PM (PER HOUR) 87.87 2.48 90.35
ALL OTHER HOURS (MINIMUM + HOURLY) 585.78 16.52 602.30
Morgan Hill Rate Application - Effective 7-1-26 Exhibit 3 2/25/2026 2:16 PM

14 CITY COUNCIL STAFF REPORT
MEETING DATE: May 6, 2026
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE; MARCH 2026 FINANCIAL
AND INVESTMENT REPORTS; AND CITY MANAGER AUTHORITY
REPORT

RECOMMENDATION(S)
Receive and file reports.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
Strategic Priorities 2026-2027
Fiscal Sustainability
REPORT NARRATIVE:

As part of the City Council’s expectation to maintain a high level of transparency and to be responsible stewards of public funds, staff are providing this monthly budget update, along with the March 2026 financial and investment reports.

March 2026 Financial Report
The Revenue and Expense Summary through March 2026 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $34.0 million or about 59% of the budget. Expenditures and encumbrances through March totaled $46.8 million, of which approximately $2.3 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $45.8 million. This represents an increase of $1.0 million, including encumbrances, compared to the prior year. Excluding encumbrances, expenditures increased by about $1.3 million, primarily due to negotiated salary adjustments and overall cost increases.

Budget Update
The latest projections indicate that General Fund revenue for the fiscal year is expected to total approximately $59.2 million, which is about $1.2 million above budget. This favorable variance is partially attributable to a $0.5 million loan repayment from the Development Services Fund.

14 General Fund expenditures are projected to total approximately $63.7 million, compared to the amended budget of $66.2 million. Excluding $1.0 million in budgeted savings, the net expenditure budget is approximately $65.2 million, yielding an estimated favorable variance of $1.5 million.

Regarding water revenue, residents in Morgan Hill consumed approximately 5% more water through March compared to the prior three-year average. As a result, a revenue stabilization water rate was not implemented.

City Manager’s Authority Report
Pursuant to the City Council Policy 18-05 - Report on delegation of authority to City Manager, Page 21 of Attachment 1 lists the contracts and/or agreements entered into between January 21, 2026 through April 21, 2026 between the amounts of $25,000 to $75,000, or the limit of the California Uniform Public Construction Cost Accounting Act (CUPCCAA).

COMMUNITY ENGAGEMENT:

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

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

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

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

FISCAL AND RESOURCE IMPACT:

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

CEQA (California Environmental Quality Act):

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

15 CITY COUNCIL STAFF REPORT
MEETING DATE: May 6, 2026
PREPARED BY:

Monica Delgado, Budget Manager
Dat Nguyen, Finance Director
APPROVED BY: City Manager
INTRODUCE THE RECOMMENDED FY 2026-27 AND FY 2027-28
BIENNIAL OPERATING AND FY 2026-27 THROUGH FY 2031-32

CAPITAL IMPROVEMENT PROGRAM BUDGETS

RECOMMENDATION(S)
Receive the Introduction to the Recommended Budget Presentation.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
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
Advocating for Local, Regional, and State Legislative Initiatives Promoting a Healthy Community
Strategic Priorities 2026-2027
Fiscal Sustainability
Public Safety
Affordable Housing and Homelessness
Economic Development and Tourism
Transportation
Economic Mobility
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Communications, Outreach, and Engagement Plan
Economic Blueprint
Fire Services Standards of Coverage
GIS Strategic Plan

15 Morgan Hill 2035 General Plan
Public Safety Master Plan
Storm Drain Master Plan
Vision Zero
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

On Friday, May 1, the Recommended FY 2026-27 and FY 2027-28 Biennial Operating and FY 2026-27 through FY 2031-32 Capital Improvement Program (CIP) Budgets were distributed to the City Council and made available for public review.

The total Recommended Budget is $244.2 million in FY 26-27 and $221.4 million in FY 27-28. In FY 26-27, expenditures include $66.6 million in the General Fund, $92.7 million in CIP, and $84.9 million across all other funds. In FY 27-28, expenditures include $68.5 million in the General Fund, $61.8 million in CIP, and $91.1 million across all other funds. Additional details are provided in the Operating Department and CIP sections of the budget document.

This budget serves as a foundational roadmap for our Community, reflecting our core commitment to Fiscal Sustainability and Preserving and Cultivating Public Trust while maintaining the City services that the Community continues to expect during a period of financial transition and economic complexity.

Recommended FY 2026-27 and FY 2027-28 Biennial Operating and FY 2026-27 through FY 2031-32 Capital Improvement Program Budgets.

COMMUNITY ENGAGEMENT:

Involve
March 25, 2026 - Open Streets Budget Engagement with the Community In addition to introducing the Recommended Budget on May 6, the Community is invited to participate in the Budget Town Hall Meeting which is scheduled for May 16 at 10:00 am, and the City Council Budget Workshop which is scheduled for May 20 at 6:00 pm.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council received the last recommended biennial operating and CIP budgets in May 2024 which was subsequently adopted in June 2024.

FISCAL AND RESOURCE IMPACT:

The budget documents are the product of many employees working in a collaborative manner to strive to attain the Council's and Community's priorities in a cost-effective

15 manner while maintaining the City's goal of fiscal sustainability.

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.