Morgan Hill City Council
June 3, 2026

City Council
Regular Meeting Agenda
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, June 3, 2026
6:00 p.m
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person, with the option for the public to attend in person or participate by teleconference/video conference. Information on how the public may observe and participate in the meeting is below.

MEETING PARTICIPATION
Language Interpretation / Interpretación de idiomas
Live Digital Language Interpretation is available. To access the interpretation during the meeting, go to:
https://live.pocketalk.com/guest/S71BBUiWwiqXh3sPBf9Bfs2Ey4OYY9zgv8vZB5 or scan the QR code below:

Tenemos Interpretación digital en vivo. Para usar la interpretación durante la reunión, visite:
https://live.pocketalk.com/guest/S71BBUiWwiqXh3sPBf9Bfs2Ey4OYY9zgv8vZB5 o escanee el código QR a continuación:

You can use a headset on your phone for audio or read the transcript on your device.

June 3, 2026
2 Tablets and disposable headphones will be provided in person during the meeting to those who do not have their own devices.

Puede usar audífonos en su celular para escuchar el audio o leer la transcripción.

Durante la reunión, se prestarán tabletas y audífonos desechables para las personas que no tengan su propio aparato.

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

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

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

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

Remote participation is also available by calling (669) 900-9128 and entering webinar ID: 873 3200 8380#. Dial *9 to raise your hand, and be called upon to speak for up to 3 minutes. Dial *6 to unmute.

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

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

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

June 3, 2026
3 Remote public comment for items not on the agenda will not be accepted.

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

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

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

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

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

June 3, 2026
4 RECOGNITIONS
Morgan Hill Toros 12U

CITY COUNCIL REPORTS
Council Member Iwanaga

OTHER REPORTS

CITY MANAGER'S REPORT

CITY ATTORNEY'S REPORT

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

ADOPTION OF AGENDA

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

1. ACCEPT 2025 PAVEMENT REHABILITATION PROJECT
Recommendation:

1. Accept as complete the 2025 Pavement Rehabilitation Project;

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

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

June 3, 2026
5 2. APPROVE A CONSULTANT AGREEMENT WITH ADVANCED INTEGRATION & CONTROLS IN THE AMOUNT OF $277,920 FOR SCADA HMI

APPLICATION UPGRADES
Recommendation:

Award and authorize the City Manager to execute a Consultant Agreement with Advanced Integration & Controls, in the not to exceed amount of $277,920 for SCADA HMI Application Upgrades.

3. APPROVE A FOURTH AMENDMENT TO AGREEMENT WITH AKEL

ENGINEERING FOR ON-CALL WATER AND WASTEWATER SERVICES TO INCREASE THE NOT TO EXCEED AMOUNT BY $60,000
Recommendation:

Approve and authorize the City Manager to execute a fourth amendment to the agreement with Akel Engineering Group to increase the not to exceed amount by $60,000, for a contract total of $438,750.

4. APPROVE THE 2025 ANNUAL CONTROLLED EQUIPMENT USE REPORT Recommendation:

Approve the 2025 Annual Military Equipment Use Report and the continued use of the controlled equipment contained in the report.

5. APPROVE THE MAY 6, 2026 CITY COUNCIL AND THE MAY 20, 2026 CITY

COUNCIL MEETING MINUTES
Recommendation:

Approve the May 6, 2026 and the May 20, 2026 City Council Meeting Minutes.

6. APPROVE TRANSFER OF PROPERTY TO VALLEY WATER FOR FLOOD

PROTECTION PROJECT
Recommendation:

Authorize the City Manager to execute a grant deed and any other documents necessary to transfer the City owned property (APN 767-05-049) for flood protection purposes.

7. APPROVE UPDATED REIMBURSEMENT AGREEMENT WITH THE

LUMBERYARD DEVELOPER FOR COMPLETION OF TENANT

IMPROVEMENTS AT THE FUTURE CITY-OWNED NON-PROFIT CENTER

BUILDING
Recommendation:

Authorize the City Manager to execute and administer an updated reimbursement agreement with the MH Lumberyard 49, LLC. for the design and construction of tenant improvements at the future City-owned office space at 17020 Depot Street.

June 3, 2026
6 8. AWARD TOW AGREEMENT WITH DICK'S COMMUNITY TOWING AND

TRANSPORT FOR POLICE-GENERATED TOW SERVICES
Recommendation:

1. Award Tow Agreement with Dick's Community Towing and Transport for Police-Generated Tow Services; and

2. Authorize the City Manager to execute the Agreement.

9. AWARD POLICE AND PUBLIC SERVICES DEPARTMENTS FLEET SERVICE

AGREEMENT TO FRANK'S AUTO SERVICE
Recommendation:

1. Award Fleet Services Agreement to Frank's Auto Service for a total not to exceed amount of $300,000; and

2. Authorize the City Manager to execute the Agreement.

10. AWARD STREET LIGHTING AND TRAFFIC SIGNAL MAINTENANCE

SERVICE AGREEMENT
Recommendation:

1. Award an agreement to Cal-West Lighting and Signal Maintenance, Inc. in the amount of $1,000,000 to provide street lighting and traffic signal maintenance and repair services; and

2. Authorize the City Manager to execute and administer said agreement.

11. RECEIVE MONTHLY BUDGET UPDATE AND APRIL 2026 FINANCIAL AND

INVESTMENT REPORTS
Recommendation:

Receive and file reports.

OTHER BUSINESS

12. RECEIVE A REPORT ON CITY OF MORGAN HILL VACANCIES, AND

RECRUITMENT AND RETENTION EFFORTS
Recommendation:

Receive the informational report on City of Morgan Hill Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3 (AB 2561).

PUBLIC HEARINGS

June 3, 2026
7 13. ADOPT RESOLUTION ORDERING ANNUAL ASSESSMENTS AND

RELATED ACTIONS FOR CITY OF MORGAN HILL LANDSCAPE
ASSESSMENT DISTRICT NUMBER 1 (DISTRICT)
Recommendation:

1. Open and close the public hearing; and

2. Adopt resolution confirming Fiscal Year (FY) 2026-27 annual assessments and ordering the levy of assessments for the District.

14. ADOPT THE FISCAL YEAR (FY) 2026-27 AND 2027-28 OPERATING BUDGET, FY 2026-27 THROUGH 2031-32 CAPITAL IMPROVEMENT
PROGRAM BUDGET, ADOPT FY 2026-27 APPROPRIATIONS LIMIT,

AUTHORIZE THE ALLOCATION OF GENERAL FUND BUDGET SAVINGS TO EXCESS ERAF RESERVES; DELEGATE AUTHORITY TO THE CITY

MANAGER TO PURCHASE CITYWIDE COMPUTER REPLACEMENTS

INCLUDED IN THE ADOPTED BUDGET, AND APPROVE MANAGEMENT,

PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP SALARY

SCHEDULES
Recommendation:

1. Open/Close Public Hearing;

2. Adopt resolution to:
a. Adopt the FY 2026-27 and 2027-28 Operating Budget;
b. Adopt the FY 2026-27 through 2031-32 Capital Improvement Program Budget;
c. Adopt the 2026-27 Appropriations Limit and Appropriations Limit Adjustment Factors;

3. Authorize the allocation of General Fund Budget Savings to Excess Educational Revenue Augmentation Fund (ERAF) reserves;

4. Delegate authority to the City Manager to purchase citywide computer replacements included in the Adopted Budget; and

5. Approve the Management, Professional, and Confidential Employee Group salary schedules.

15. CONDUCT PUBLIC HEARING FOR INPUT ON THE 2025 URBAN WATER

MANAGEMENT PLAN (UWMP) AND ADOPTION OF THE UWMP AND THE

WATER SHORTAGE CONTINGENCY PLAN (WSCP)
Recommendation:

1. Conduct a public hearing to receive input on the 2025 Urban Water Management Plan;

2. Adopt a Resolution approving the 2025 Urban Water Management Plan and authorize its submittal to the Department of Water Resources; and

June 3, 2026
8 3. Adopt a Resolution approving the 2025 Water Shortage Contingency Plan and authorize its submittal to the Department of Water Resources.

OTHER BUSINESS

16. APPROVE LEADERSHIP MORGAN HILL CLASS OF 2026 PROJECT

PROPOSAL
Recommendation:

1. Approve the proposed Leadership Morgan Hill Class of 2026 (Class) Project to create a historical trail in partnership with the Morgan Hill Historical Society; and

2. Direct City staff to coordinate with the Class on the final implementation of the Project.

17. ADOPT POLICY REGARDING DISRUPTION OF TELEPHONIC,

AUDIO/VISUAL, OR INTERNET SERVICE DURING CITY COUNCIL

MEETINGS
Recommendation:

Adopt the City Council Policy regarding disruption of telephonic, audio/visual, or internet service during City Council meetings in compliance with Government Code section 54953.4.

18. PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL

INITIATED AGENDA ITEMS
Recommendation:

Determine if the majority of the City Council wants the following items agendized at a future meeting for discussion:

1. Establish a Formal Policy for Intergovernmental Agency and Organizational Briefings; and

2. Evaluate Banning Class 2 E-bikes Operated by Minors.

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

ADJOURNMENT

June 3, 2026
9 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

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

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

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

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

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

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

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

June 3, 2026
10

1 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

Yat Cho, Senior Project Manager
APPROVED BY: City Manager
ACCEPT 2025 PAVEMENT REHABILITATION PROJECT

RECOMMENDATION(S)

1. Accept as complete the 2025 Pavement Rehabilitation Project;

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

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

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

On May 21, 2025, the 2025 Pavement Rehabilitation Project was awarded to JV Lucas Paving in the amount of $2,010,148 with a construction contingency of $301,522. The project included pavement rehabilitation on the following streets (Attachment 1 - Vicinity Map).
• Llagas Road from City/County limit to Glen Ayre Drive • East Main Avenue from Condit Road to the City/County Limit • Tilton Avenue from Hale Avenue to Dougherty Avenue
• Streets within the Woodland Acres subdivision (Woodland Avenue, Woodland Court, Rolling Hills Drive, Greenwood Avenue, Rocky Ridge Road, and Black Oak Court)
• Deer Run Court
East Main Avenue from Condit Road to the City/County Limit is shared between the City

1 and the County of Santa Clara (County). The northern half of the roadway is Cityowned/maintained, while the southern half is owned/maintained by the County. Hence, a cost sharing agreement was executed with the County for the paving work on East Main Avenue.

The project began on July 21, 2025, and was substantially completed by May 2026. No change orders were authorized for this project (Attachment 2) and the final construction contract with JV Lucas is $1,940,221. Material quantities are estimated for bidding purposes and the contractor is paid based on the actual quantities used to complete the work. As a result, there were contract savings below the base bid in the amount of $69,927.

Staff recommends accepting this project as it is completed in accordance with the plans and specifications. Staff respectfully requests and directs the City Clerk to file the Notice of Completion (Attachment 3).

COMMUNITY ENGAGEMENT:

Inform
The project engineer, contractor, and other staff members made best efforts to provide notification prior to and during the course of construction through citywide emails, social media posts, and regular updates on the City website.

ALTERNATIVE ACTIONS:

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

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On April 2, 2025, the City Council approved the Cost Share Agreement with the County of Santa Clara for repaving of East Main Avenue for $341,495.

On April 2, 2025, the City Council received the Pavement Condition Update and Pavement Rehabilitation Planning Update.

On May 21, 2025, the City Council awarded the 2025 Pavement Rehabilitation Project to JV Lucas Paving.

FISCAL AND RESOURCE IMPACT:

The final contract amount for the 2025 Pavement Rehabilitation project is $1,940,221.

The project was awarded to JV Lucas Paving in the amount of $2,010,148 with an authorized contingency of $301,522 (Total $2,311,670). This project is funded in the adopted Capital Improvement Program Budget, under Project SR5004, Pavement Rehabilitation, funded by the Street CIP Fund (308). The balance of $371,449 will be returned to the Street CIP Fund (308). Additionally, the reimbursement from the County of Santa Clara for the cost share agreement in the amount of $292,697 will also be

1 returned to the Street CIP Fund (308).

CEQA (California Environmental Quality Act):

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

Public Services Department
CIP Engineering Division
2025 Pavement Rehabilitation Project
(Woodland Acres, Deer Run Ct, Llagas Rd)O
820 0 820 1,640 2,460 410
Feet G:\R-14\Proj\GIS\Agustin\2025 pavement.mxd
Source: Esri, Maxar, Earthstar Geographics, and the GIS User Community Project Location
Project Location
Deer Run Ct
Llagas Rd
Shadow Hollow Dr
Dahlberg Ct
Llagas Rd
Glen Ayre Dr

Public Services Department
CIP Engineering Division
2025 Pavement Rehabilitation Project
(East Main Avenue) O
820 0 820 1,640 2,460 410
Feet
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
G:\R-14\Proj\GIS\Agustin\2025 pavement e main.mxd
Project Location

101

101
E Main Ave
E Main Ave
Live Oak
High School
Diana Ave
Condit Rd
ElmRd
Half Rd
Mission View Dr

Public Services Department
CIP Engineering Division
2025 Pavement Rehabilitation Project
(Tilton Ave) O
820 0 820 1,640 2,460 410
Feet G:\R-14\Proj\GIS\Agustin\2025 pavement.mxd
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
Tilton Ave
Corlander Ave
Dougherty Ave
Monterey Rd
Hale Ave
Dougherty Ave
Burnett Ave
Project Location

CIP Contract Acceptance
Funding Closeout Statement
Project: 2025 Pavement Rehabilitation Project
Project No: SR5004
Date of Project
Award: 21-May-25 Project AwardAmount: $2,010,148
Funding Source: F308
Contingency
Authorized: $301,522
Date of Project
Acceptance: 3-Jun-26 Total Authorized: $2,311,670
Actual Base
Contract Spent: $1,940,221
Change Orders
Description Date
Council Approval
Reqd? (Y/N)
Total C.O.: $0.00
Additional Appropriations
Source Amount Date
None
Total Construction
Amount (Base
Contract plus
CO's): $1,940,221.09
Construction Fund Balance: $371,448.91

SR5004 2020 Form NOTICE OF COMPLETION
2024 Pavement Rehabilitation Project Page 1
Recording Requested By:

The City of ___________
When Recorded Mail To:
_____________________ <name, title>
_____________________ <street address>
_____________________ <city, state and zip>

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§ 6103, 27383
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

NOTICE OF COMPLETION
Civil Code §§ 8182, 8184, 9204, and 9208
NOTICE IS HEREBY GIVEN THAT:

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

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

3. City’s address is 17575 Peak Avenue Morgan Hill, CA 95037

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

XX Fee Ownership __ Lessee __ Other:__________________

5. Construction work on the Project performed on City’s behalf is generally described as follows:
2" Pavement Mill and Fill, 3" Pavement Mill and Fill, Full Depth Asphalt Concrete Pavement Repairs, ADA Curb Ramp Upgrade, Removal and Replacement of Existing Asphalt Concrete Curb, Crack Sealing, Vehicle Detector Loop Replacements, Replacement of all Existing Traffic Delineation and Markings, Replacement of Existing Flexible Bike lane Separator Posts, Utility Cover Adjustments, and all other related work on various streets within the City Limits.

6. The name of the original Contractor for the Project is: JV Lucas Paving

7. The Project was accepted as complete on: June 3, 2026

8. The Project is located at:
* Llagas Road from City/County limit to Glen Ayre Drive * East Main Avenue from Condit Road to the City/County Limit * Tilton Avenue from Hale Avenue to Dougherty Avenue
* Streets within the Woodland Acres subdivision (Wood Land Avenue, Woodland Court, Rolling Hills Drive, Greenwood Avenue, Rocky Ridge Road, and Black Oak Court)
* Deer Run Court
Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct.
__________________________ ________________________________ Signature Date
Scott Creer, City Engineer

EXEMPT FROM NOTARY ACKNOWLEDGMENT REQUIREMENTS PER
GOVERNMENT CODE § 27287 AND CIVIL CODE § 920

2 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

James Sylvain, Deputy Director Utility Services
Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE A CONSULTANT AGREEMENT WITH ADVANCED
INTEGRATION & CONTROLS IN THE AMOUNT OF $277,920 FOR

SCADA HMI APPLICATION UPGRADES

RECOMMENDATION(S)
Award and authorize the City Manager to execute a Consultant Agreement with Advanced Integration & Controls, in the not to exceed amount of $277,920 for SCADA HMI Application Upgrades.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

The Utilities Division’s existing Supervisory Control and Data Acquisition (SCADA) application was originally developed in 2014 using Wonderware InTouch. In 2022, the City upgraded its network system hardware, including servers, modems and switches, alongside updating the Human Machine Interface (HMI) software to AVEVA InTouch 2020 R2. The system supports monitoring and controlling approximately 50 sites distributed throughout the City infrastructure. These field sites primarily utilize Tesco Controls equipment with Tesco Programmable Logic Controllers (PLCs) as their core processors. The system currently manages about 26,000 pieces of information shown to operators and 2,500 pieces of information stored for long-term records. As the City’s operations continue to grow and change, the existing system application requires an upgrade. Updating the system will support modern operational needs, simplify how the software is licensed and organized, and ensure it remains reliable and sustainable for years to come.

2 City staff issued a Request for Proposal (RFP) in February 2026 to solicit qualified system integrators and solution providers for the upgrade of its SCADA HMI system.

The project requirements were developed to ensure the system is easier for staff to use, more reliable, and better suited for daily operations. While the current software is usable, it is not as intuitive for users and requires multiple separate licenses to operate its various components. Transitioning to software that provides these features as built-in capabilities offers a more effective solution and makes the system simpler for staff to manage and maintain.

Staff received seven proposals, but four were missing submittal documents and were deemed non-responsive. The other three submittals were evaluated by a team of four raters comprised of City and Valley Water staff using a weighted evaluation criteria outlined in Attachment 1. Advanced Integration & Controls (AIC) received the highest overall evaluation score, earning 80.3 out of a possible 100 points, significantly outperforming the other proposers in key categories including system capability, project approach, interview performance, and overall qualifications. Based on the evaluation results and the firm’s demonstrated understanding of the City’s operational needs, staff recommends awarding the contract to Advanced Integration & Controls.

COMMUNITY ENGAGEMENT:

Since maintenance of the City’s water and wastewater infrastructure is a regular operational function of the City, no efforts were made to inform the community about this proposed project.

ALTERNATIVE ACTIONS:

1. Council can decide not to move forward with the project. This action is not recommended as it will constrain staff’s ability to take full advantage of the system and limit the effective use of a tool that they rely upon for remote site monitoring to make critical operational decisions.

2. The Council could review scoring and decide to select one of the other vendors.

This action is not advisable because the product offered by AIC and recommended by the raters meets and is more in line with the City’s operational needs.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 3, 2021, Council approved an agreement with Tesco Controls for SCADA Systems Integration Services in the amount of $87,090. Later, on April 6, 2022, Council approved an amendment increasing the amount of the agreement to include an additional $130,100 for Tesco recommended hardware servers.

FISCAL AND RESOURCE IMPACT:

This project is budgeted 50% in water operations contractual services and 50% in

2 wastewater operations contractual services.

CEQA (California Environmental Quality Act):

Categorical Exemption
The planned maintenance and management of existing City infrastructure falls within the CEQA categorical exemption of Class 1, Existing Facilities.

SCADA HMI Applications Upgrade
Evaluation Weighted Scores
SCADA HMI Applications Update
Advanced Integration
& Controls Aspect Engineering Tesco Controls

1. Experience and Qualifications - Relevant technical
experience of company and expertise of its staff in SCADA systems. Demonstrated compliance with cybersecurity and industry standards.

POINTS 25 21.25 17.50 21.00

2. Capability - Quality, feasibility, and innovation of the proposed solution. Project management and
scheduling robustness.

POINTS 30 24.75 16.50 16.25

3. Morgan Hill SCADA experience - Firm (or Firm's
employee(s) has previous experience with Morgan Hill's
SCADA system setup.

POINTS 5 4.75 0.00 4.75

4. References - References and quality of the overall
proposal including compliance with proposal requirements.

POINTS 5 1.00 3.13 2.13

5. Interview - Answer City's Quesitons and has full
understanding of the project.

POINTS 10 8.75 6.75 4.50

6. Cost Schedule
POINTS 25 19.75 20.75 17.75
Total overall Score 80.3 64.6 66.4
Evaluation Weighted Scores

1 Updated August 2024

CONSULTANT AGREEMENT

ADVANCED INTEGRATION & CONTROLS
THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Advanced Integreation & Controls a California corporation ("CONSULTANT") hereinafter referred to collectively as “Parties.” In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:

1. City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on ___________, ____, 20___.

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until June 30, 2027 at which time CONSULTANT’S services shall be completed. The City Manager is authorized to extend the term of this Agreement provided the compensation does not exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by CONSULTANT shall be SCADA HMI Application Uprades as further described in Exhibit A.

4. Compensation. CONSULTANT shall be compensated as follows:

4.1. Amount. $277,920.00. Total compensation to CONSULTANT under this Agreement during its initial term set forth in Section 2 above shall not exceed Two Hundred Seventy-Seven Thousand Nine Hundred Twenty dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to CONSULTANT, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for the term exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council.

4.2. Billing. CONSULTANT shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by CONSULTANT on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 13 Notices. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY’s judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.

5. Termination. CITY or CONSULTANT shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, CONSULTANT shall submit to CITY an itemized statement of services performed for which compensation

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has not been paid. CITY may require CONSULTANT to complete certain work product or documents and CONSULTANT shall deliver to CITY all documents in its possession without additional compensation to CONSULTANT. The City Manager of CITY is authorized to terminate this Agreement, in whole or in part, on behalf of CITY.

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

6. Performance of Work. CONSULTANT represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by CONSULTANT in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of the CONSULTANT’S profession. By delivery of completed work, CONSULTANT certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws. CONSULTANT shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. CITY's City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance within the term of this Agreement. If CONSULTANT desires to leave or store any of CONSULTANT's equipment at a CITY site while CONSULTANT is performing work or service pursuant to this Agreement, CONSULTANT will first obtain the consent of CITY's City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at CONSULTANT's sole risk.

7. Insurance Requirements. CONSULTANT shall procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of CONSULTANT, including its subcontractors, employees and agents, relating to or arising from the performance of any work or service under this Agreement, and must remain in full force and effect at all times during the period covered by this Agreement. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or “umbrella” policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and approved by CITY. CONSULTANT further understands that the CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to CONSULTANT, at any time as deemed necessary to protect the interests of the CITY.

7.1. Insurance Types and Amounts.

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

7.1.2. Automobile Liability. CONSULTANT shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if CONSULTANT does not own automobiles, then CONSULTANT shall maintain Hired/Non-owned Automobile Liability) against claims and liabilities for personal injury, death, or property damage

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providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT's combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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

7.1.4. Pollution (Environmental) Liability. If the performance of CONSULTANT’S work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, CONSULTANT shall procure and maintain Pollution Liability covering the CONSULTANT’S liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials.

Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT's combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

7.1.5. Professional Liability.

7.1.5.1. If the performance of CONSULTANT’s work or service under this Agreement involves professional and/or technical services (examples include, but are not limited to, architects, engineers, land surveyors, and appraisers), CONSULTANT shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT's combined insurance policies (including any excess or “umbrella” policies), whichever is greater. Further, if CONSULTANT maintains a claims-made policy, CONSULTANT shall provide written evidence of such insurance to the CITY for at least five (5) years after the completion of work performed under this Agreement.

7.1.5.2. If the performance of CONSULTANT’s work or service under this Agreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers, hardware engineers, or other systems consultants), CONSULTANT shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT's combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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

7.1.7. Crime/Fidelity Bond. If the performance of CONSULTANT’S work or service under this Agreement relates to or involves handling of CITY monies, CONSULTANT shall procure and maintain Crime insurance, in the minimum amount of: (i) three hundred thousand dollars ($300,000.00) per occurrence, covering all CONSULTANT’S officers and employees, for loss of CITY monies caused by dishonesty and/or theft.

7.2. Endorsements. CONSULTANT shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:

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

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

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

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

7.2.2. Workers Compensation.

If the performance of CONSULTANT’S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, CONSULTANT’S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY’s elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

7.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M. Best's financial strength rating of “A” or better and a financial size rating of “VII” or better.

7.4. Certificates. CONSULTANT shall furnish CITY of Morgan Hill with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, CONSULTANT shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to the CONSULTANT’s agreement with the CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to

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CITY. A "material change" is a change that results in non-compliance with any insurance requirements in this section 7. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.

Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037

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

9. Compliance with Law.

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

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

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

Prior Judgments against CONSULTANT and/or its Subcontractors: BY SIGNING THIS

AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS DISCLOSED ANY FINAL

JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT – THAT CONSULTANT OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONSULTANT FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that CONSULTANT or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or CONSULTANT learns of such

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a judgment, decision, or order that was not previously disclosed, CONSULTANT 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. CONSULTANT 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 CONSULTANT 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 CONSULTANT or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, the City reserves the right to withhold payment to CONSULTANT until such judgment, decision or order has been satisfied in full.

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

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

10. Independent Contractor. CONSULTANT is an independent contractor and not an agent or employee of CITY.

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

12. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement including, without limitation, complying with California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.).

CONSULTANT will further comply, and will ensure that its agents and its subcontractors comply, with California Government Code section 84308 (“Levine Act”) and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 – 18438.8).

13. Notices. All notices shall be personally delivered or mailed, via first class mail to the below listed address. These addresses shall be used for delivery of service of process. Notices shall be effective five (5) days after date of mailing, or upon date of personal delivery.

Address of CONSULTANT is as follows:

Advanced Integration & Controls
525 W. Alluvial Avenue, Suite C

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Fresno, CA 93711
Address of CITY is as follows:

Utilities Division
City of Morgan Hill
100 Edes St.

Morgan Hill, CA 95037
with a copy to:

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

14. Licenses, Permits and Fees. CONSULTANT shall obtain a City of Morgan Hill Business License, all permits and licenses to the extent required by ordinances, codes and regulations of the federal, state and local government.

15. Consultant's Proposal. If applicable, this Agreement shall include CONSULTANT'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

16. Maintenance of Records.

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

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

16.3. Ownership of Work Product. All documents or other information developed or received by CONSULTANT for work performed under this Agreement shall be the property of CITY.

CONSULTANT shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

17. Familiarity with Work. By executing this Agreement, CONSULTANT represents that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should CONSULTANT discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONSULTANT'S risk, until written instructions are received from CITY.

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

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19. No Assignment. Neither this Agreement nor any portion shall be assigned by CONSULTANT, without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be void and, at CITY's option, shall terminate this Agreement effective as of the date of such attempted assignment.

20. Attorney Fees. In any legal action, dispute or arbitration arising out of or relating to this Agreement, the prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses incurred.

21. Defense and Indemnification.

21.1. Defense and Indemnification. CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

21.2. Exceptions. CONSULTANT is not required to indemnify INDEMNITEES against liability for bodily injury, property damage or personal injury, or any other loss, damage or expense arising from the sole negligence or willful misconduct of the CITY.

21.3. Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agreement apply to all CLAIMs alleged against an INDEMNITEE, regardless of whether any insurance policies are applicable. Policy limits do not act as a limitation upon the amount of indemnification or defense to be provided by CONSULTANT.

21.4. Right to Offset. CITY shall have the right to offset against any compensation due CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of CONSULTANT's failure to pay CITY promptly any indemnification arising under this Section (21) and any amount due CITY from CONSULTANT arising from CONSULTANT's failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

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

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

23. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara.

Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County.

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

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

26. Preservation of Agreement. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected or invalidated.

27. Binding Agreement. Notwithstanding the provisions of Section 19 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of CONSULTANT in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

28. ☐ Data Sharing. This Agreement requires access by CONSULTANT to CITY’s Geographic Information System (GIS) DATA for CONSULTANT to perform the work. CITY agrees to provide the GIS DATA to CONSULTANT solely for the purpose of performance of contracted work with the CITY upon the terms and conditions specified in Exhibit D, incorporated herein by this reference.

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

30. Counterpart Signatures. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. / //
/ //
[Signatures on Next Page]

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31. Authority to Execute. Those individuals who are signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.

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

AS SET FORTH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

ATTEST: CITY OF MORGAN HILL
City Clerk/Deputy City Clerk City Manager
Michelle Bigelow Christina J. Turner
Print Name Print Name
Date: Date:

APPROVED AS TO FORM: Advanced Integration & Controls
Donald A. Larkin
City Attorney By:

Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
U:\Legal Forms\Consultant Agreements\City Standard Consultant Agreement.Docx

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EXHIBIT A

SCOPE OF SERVICES
Consultant shall upgrade the SCADA HMI system application to improve performance, usability, and maintainability. The upgrade solution will be capable of simplifying the overall system architecture and minimizing the number of licenses required for essential features. The upgraded application will maintain compatibility with existing hardware, especially Tesco Controls PLC 2000 and 3000 series and other field devices. It will also enhance data acquisition efficiency, alarm management, and visualization capabilities and ensure compliance with industry standards and cybersecurity best practices.

Task 1 System Review and Assessment - Analyze the current SCADA system architecture, including hardware and software components. Evaluate the existing InTouch 2023 R2 application and infrastructure for potential migration or enhancement opportunities. AIC will establish a documented baseline of the current system and formally capture all stakeholder requirements before development begins.

Deliverables include:
» Architecture documentation: server configuration, Tesco driver setup, OS versions, network topology, tag inventory, historian configuration, alarm structure, and client workstation layout » Dedicated L3000g gateway assessment: current configuration, redundancy behavior between the two units, and HMI platform interface strategy - a prerequisite for Task 2 » Stakeholder interviews: operations, IT, and management to capture workflow needs, remote access requirements, and reporting requirements
» Security posture review: authentication, VPN configuration, network segmentation, and OS patch levels (integrated with Task 5)
» Key Findings and Recommendations Report: documented baseline, stakeholder requirements, L3000g findings, and recommended upgrade approach - City acceptance triggers Task 2 » Task 3 (System Integration and Compatibility) is addressed within Task 1. Tesco protocol compatibility confirmation is a required deliverable of the Task 1 report.

Task 2 HMI Application Upgrade and Development - AIC shall upgrade using the VTSCADA platform by Trihedral Engineering. This all-inclusive SCADA platform purpose-built for water and wastewater operations that directly addresses the City’s preference for a single-license solution. All features, historian, alarms, reporting, mobile thin client, redundancy, and 200+ drivers including the Tesco protocol, are included without separate add-on modules.

Task 2 is structured in two phases: A front-loaded workshop phase to lock design before development begins, followed by in-house application development using a reusable template driven approach that leverages the operational consistency across Morgan Hill’s approximately 50 remote sites.

Phase A - Design Workshops (4 Weeks): AIC shall facilitate structured workshops covering screen layouts and navigation, historian tag configuration and trending, alarm management philosophy, reporting requirements, remote access and mobile monitoring (targeting 12 users across laptops, tablets, and smartphones), and L3000g redundancy and communications strategy.

The concluding workshop produces City sign-off on a locked design. AIC recognizes that requirements evolve and are committed to flexibility throughout this phase; once design is locked, both teams will honor the approved baseline to protect schedule and budget, with any material scope changes handled through a transparent conversation about impacts.

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Phase B - In-House Development (12 Weeks): Following design lock, AIC will build the new application using a standardized graphics library of reusable components.

Development deliverables include:
» Updated tag database (~26,000 HMI tags, ~2,100 historian tags) » Approximately 200 screens (50 sites x 4 screens) using template driven development for consistency and efficiency
» Remote access and mobile thin client configuration for up to 12 concurrent users » Alarm configuration, trend displays, and operational reports per workshop defined requirements
» Security group and user permission model; redundant primary/secondary server configuration » City development workstation setup for staff familiarization and future in-house training Task 3 System Integration and Compatibility - Ensure integration with existing Tesco Controls field equipment and PLCs. Confirm network hardware compatibility with the upgraded system. AIC will integrate this task into Task 1.

Task 4 Testing and Validation - Perform rigorous testing phases including unit testing, integration testing, system testing, and user acceptance testing (UAT) with City staff. Demonstrate system performance under real-world operational loads. Set testing environment, station(s) for staff to develop, test, modify and launch HMI applications in the future.

Phase A - In-House Pre-Validation: Every tag, alarm, historian point, screen, report, security group, and redundancy failover will be tested internally before deployment on City hardware. Where feasible, AIC will configure the Tesco communications driver to optimize polling traffic and protect radio network bandwidth - viability will be confirmed during Task 1.

Phase B - Parallel Deployment and Validation: The new application will run in parallel with the existing system on City hardware. AIC shall provide structured City-facing test forms for independent staff verification; deficiencies are documented and tracked to resolution. This approach compresses on-site testing time and builds staff familiarity simultaneously.

Task 5 Security Compliance- Ensure secure authentication, authorization, and encryption for system access and data transmission. AIC shall strictly adhere to NIST SP 800-82 and IEC 62443 guidelines throughout the project lifecycle. Security assessment findings shall be documented by AIC in the Task 1 report, secure-by-design practices are applied throughout Task 2 development, and a post-installation security posture comparison report shall be delivered by AIC following golive. The report will also flag the aging radio infra-structure as a near-term capital planning consideration.

Task 6 Documentation and Training - Provide comprehensive technical documentation including system design, configuration, and operational procedures. Conduct training sessions for operators, administrators, and IT personnel.

Documentation deliverables include:
» Updated SCADA network architecture drawings
» Full application and configuration backups
» Five operational quick reference guides covering alarm management, report access, SCADA login and user administration, trend navigation, and remote access procedures.

AIC will deliver three structured four-hour training sessions conducted at City facilities using the development workstation and a dedicated training environment, ensuring the production system remains fully operational throughout:
» Session 1: SCADA Application - navigation, normal operations, setpoint adjustment, user management

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» Session 2: Alarming - acknowledgment workflow, alarm history, roster management, notification configuration
» Session 3: Remote Access, Reporting, and Trends - mobile access, report generation and scheduling, trend configuration
» IT Staff Technical Orientation (separate): system administration, back-up procedures, and development workstation configuration

EXHIBIT B

SCHEDULE OF COMPENSATION RATES

TASK TITLE INVOICE MILESTONE
(UPON CITY ACCEPTANCE OF:)

AMOUNT INVOICE
#
1 System Review and Assessment Key Findings and Recommendations Report $17,260 1 2 HMI Upgrade and Development 50% -- City sign-off on design lock $40,000 2 2 (continued) 50% -- City acceptance of completed
application in development environment
$46,200 3
2 VTScada License Dual Server Premium, 25K Tags, Unlimited Clients. All-inclusive: historian, alarms,
reporting, mobile thin client, 200+ drivers,
dual-server redundancy support.
$53,595 3
4 Testing and Validation City acceptance of parallel deployment and test documentation package
$43,100 4
5 Security Compliance Acceptance of post-installation security posture report
$17,260 5
6 Documentation and Training Acceptance of all documentation and completion of all training sessions
$25,840 6
-- Per Diem -- Travel and Lodging Invoiced as incurred with itemized receipts $9,400 --

TOTAL PROFESSIONAL
SERVICES + LICENSE + PER
DIEM
TOTAL $252,655
14 Updated August 2024
A 10% Contingency in the amount of $25,265 is being added to the agreement for any additional authorized work.

Work authorized beyond the defined task scope will be performed on a time-and-materials basis at AIC’s standard rate of $200/hr. All additional work requires prior written authorization from the City’s project manager.

EXHIBIT C

SCHEDULE OF PERFORMANCE
TASK MILESTONE / DELIVERABLE TYPE START DURATIONTARGET 1/3 Kickoff meeting: project schedule submitted Kickoff Week 1-2 1 Wk Wk 2 1 Key Findings and Recommendations Report delivered
(incl. L3000g assessment and Task 3 compatibility)
Deliverable Week 3-4 3 Wks Wk 6
1 City acceptance of Key Findings Report (triggers Invoice #1 and Task 2A start)
City OK Week 7 1 Wk Wk 7
5* Security assessment findings documented (concurrent) Deliverable Week 8 2 Wks Wk 9 2A Design workshops complete; City sign-off on design
lock (triggers Invoice #2)
City OK Week 8 4 Wks Wk 12
2B Completed HMI application delivered to development
environment (triggers Invoice #3)
Deliverable Week 13 12 Wks Wk 25
4 In-house pre-validation complete; parallel deployment initiated
Milestone Week 25 3 Wks Wk 28
4 City test documentation delivered; City-led testing
period
Deliverable Week 28 4-5 Wk Wk 33
4 Defect resolution complete; final cutover and go-live (triggers Invoice #4)
City OK Week 33 2 Wks Wk 35
5* Security posture report delivered and accepted (triggers Invoice #5; concurrent)
Deliverable Week 35 2 Wks Wk 37
6* All documentation delivered and accepted (concurrent) Deliverable Week 26 2 Wks Wk 39 6* All training sessions completed (triggers Invoice #6) Deliverable Week 38 2 Wks Wk 40 SUBSTANTIAL COMPLETION Complete Wk 40
* Concurrent tasks do not extend the overall schedule. City OKmilestones require timely City action

1. City Responsibilities
The schedule above assumes timely City participation. AIC will notify the City within five business days if a delay is projected to impact the overall schedule. Key City responsibilities include:
» Staff available for Task 1 interviews within the first two weeks of NTP » Written acceptance of the Key Findings Report within ten business days of delivery » Attendance of designated staff at all Task 2A design workshops and written sign-off on design lock within five business days of the final workshop
» City-led testing completed, and deficiencies returned to AIC within fifteen business days of test documentation delivery
» Training attendees designated, and session dates confirmed at least ten business days in advance

2. Schedule Modifications
AIC shall notify the City’s project manager in writing within five business days of any circumstance that may affect a milestone date. Schedule modifications require written agreement from both parties. Schedule extensions due to City-caused delay do not constitute a breach of this Agreement by AIC. 15 Updated August 2024

3 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

James Sylvain, Deputy Director Utility Services
Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE A FOURTH AMENDMENT TO AGREEMENT WITH AKEL

ENGINEERING FOR ON-CALL WATER AND WASTEWATER
SERVICES TO INCREASE THE NOT TO EXCEED AMOUNT BY $60,000

RECOMMENDATION(S)
Approve and authorize the City Manager to execute a fourth amendment to the agreement with Akel Engineering Group to increase the not to exceed amount by $60,000, for a contract total of $438,750.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

The Akel Engineering Group on-call agreement was part of a competitive Request for Proposals (RFP) conducted in August 2021 to obtain multiple on-call consultants to provide water and wastewater utility planning and engineering services to the City.

Typical projects awarded under these agreements include, but are not limited to, master planning, hydrologic and hydraulic modeling, asset condition assessments, water quality assessments, capacity analysis, project engineering and design. Staff utilize these agreements by asking for a proposal from the consultants for a specific service or project as needed and issuing a task order under the appropriate agreement.

The Akel Engineering Group has extensive knowledge of the City’s infrastructure as they have developed the City's water and wastewater master plans. In addition, Akel Engineering has developed and maintained the City's models for the City's water,

3 wastewater and stormwater systems and is currently working on finalizing the Urban Water Management Plan. The City has utilized Akel Engineering at a higher than anticipated rate for the last two years to perform modeling on numerous development projects related to residential applications. Costs associated with this residential development work is reimbursed to the City, but still requires expense on the contract.

Thus, the funds for the Akel agreement are close to being exhausted, but the agreement does not expire until December 2026. The City's Water System Master Plan (WSMP) is updated every five years and is currently due for an update. In order to fund the WSMP work and other anticipated tasks, $60,000 is needed on the agreement to cover the cost through December 2026. Staff recommends increasing the current not to exceed amount from $378,750 to $438,750.

COMMUNITY ENGAGEMENT:

Not Applicable
These consultant services support the ongoing maintenance and operation of the City’s water system, which is an expected activity by residents and businesses.

ALTERNATIVE ACTIONS:

The Council could decide not to approve the amendment. This is not recommended as staff would need to go out individually for certain projects instead of using a valid, nonexpired agreement that was competitively bid.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On December 15, 2021, City Council approved the on-call water and wastewater utility planning and engineering services agreement in the amount of $150,000 to Akel Engineering. Then, on November 1, 2023, Council approved a first amendment to the agreement increasing the not-to-exceed amount to $300,000.

FISCAL AND RESOURCE IMPACT:

Funds for this agreement come from multiple sources including Water and Wastewater Operations Funds, various CIP Projects, and reimbursements from developers for specific development related work. On-call work shall only be authorized when budgeted funds are available.

CEQA (California Environmental Quality Act):

Categorical Exemption
Continuing administrative activities and feasibility or planning studies for possible future actions that the agency has not approved, adopted, or funded are not considered projects for environmental review under CEQA.

1 FOURTH AMENDMENT TO AGREEMENT
AKEL ENGINEERING GROUP, INC.

This FOURTH AMENDMENT TO AGREEMENT is entered into and becomes effective on ______________________ (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and AKEL ENGINEERING GROUP, INC., a California Corporation ("CONSULTANT"), hereinafter referred to collectively as the “Parties".

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

1. This Fourth Amendment to Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on ___________, ____, 20___.

2. The CITY and CONSULTANT entered into that “CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS” made as of December 22, 2021, for consultant services, for a maximum compensation of One Hundred Fifty Thousand Dollars ($150,000.00) (“CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS”).

3. The CITY and CONSULTANT entered into a “First Amendment to Agreement” made as of November 26, 2023, under which the maximum compensation under the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, as amended, was increased to Three Hundred Thousand Dollars ($300,000.00).

4. The CITY and CONSULTANT entered into a “Second Amendment to Agreement” made as of December 13, 2024, under which the term of the Agreement was extended until December 31, 2025.

5. The CITY and CONSULTANT entered into a “Third Amendment to Agreement” made as of November 12, 2025, under which the maximum compensation under the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, as amended, was increased to Three Hundred Seventy-Eight Thousand Seven Hundred Fifty Dollars ($378,750.00) and the term of the Agreement extended until December 31, 2026. The CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, and the First, Second, and Third Amendments thereto are attached as Exhibit “1” to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

A. Paragraph 4.1 shall be amended to reflect the increased total compensation that shall not exceed Four Hundred Thirty-Eight Thousand Seven Hundred Fifty Dollars ($438,750.00).

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

2 means a contract that is executed by applying an electronic signature using technology approved by the CITY.

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

4. Conflicts. In the event of a conflict between the terms and provisions of this FOURTH AMENDMENT to Agreement and the terms and provisions of the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS or any earlier amendment, the terms of this FOURTH AMENDMENT to Agreement shall govern and control.

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

ATTEST: CITY OF MORGAN HILL
Michelle Bigelow, City Clerk

Christina Turner, City Manager
Date: Date:

APPROVED AS TO FORM: AKEL ENGINEERING GROUP, INC.

Elisa Tolentino, City Attorney By:

Date: Title:

Date:

Print Name and Title of Signer.

If Corporate: Chairman, President,
or Vice President
By:

Title:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer, or
Assistant Treasurer
Tony Akel, President
05/14/2026
Tony Akel, Secretary
05/14/2026

1 THIRD AMENDMENT TO AGREEMENT
AKEL ENGINEERING GROUP, INC.

This THIRD AMENDMENT TO AGREEMENT is entered into and becomes effective on Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, CITY") and AKEL ENGINEERING GROUP, INC., a California Corporation (" CONSULTANT"), hereinafter referred to collectively as the “Parties".

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

1. This Third Amendment to Agreement is entered into based upon the authority of the City Manager pursuant to Chapter 3.04 of the Morgan Hill Municipal Code.

2. The CITY and CONSULTANT entered into that “ CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS” made as of December 22, 2021, for consultant services, for a maximum compensation of One Hundred Fifty Thousand Dollars ($ 150,000.00) (“ CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS”).

3. The CITY and CONSULTANT entered into a “ First Amendment to Agreement” made as of November 26, 2023, under which the maximum compensation of the Agreement, as amended, was increased to Three Hundred Thousand Dollars ($ 300,000.00). The First Amendment to Agreement was entered into pursuant to the action of the Morgan Hill City Council taken on November 1, 2023.

4. The CITY and CONSULTANT entered into a “ Second Amendment to Agreement” made as of December 13, 2024, under which the term of the Agreement was extended until December 31, 2025. The CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, and the First and the Second Amendments thereto are attached as Exhibit “ 1” to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

A. Paragraph 2 shall be amended and replaced in its entirety by the following:

2. Term of Agreement. This Agreement shall be effective and cover services rendered from December 22, 2021, until December 31, 2026."
B. Paragraph 4.1 shall be amended to reflect the increased total compensation that shall not exceed Three Hundred Seventy- Eight Thousand Seven Hundred Fifty Dollars ($ 378,750.00).

C. The time period described in Exhibit B is hereby amended to conform to the new end date of the Agreement of December 31, 2026.

2. Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “ electronic copy of a signed Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5 11/12/2025

2 contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “ electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the CITY.

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

4. Conflicts. In the event of a conflict between the terms and provisions of this THIRD AMENDMENT to Agreement and the terms and provisions of the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS or any earlier amendment, the terms of this THIRD AMENDMENT to Agreement shall govern and control.

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

ATTEST: CITY OF MORGAN HILL
Michelle Bigelow, City Clerk Christina Turner, City Manager Date: Date:

APPROVED AS TO FORM: AKEL ENGINEERING GROUP, INC.

Donald A. Larkin, City Attorney
By:

Date: Title:

Date:

Print Name and Title of Signer.

If Corporate: Chairman, President,
or Vice President
By:

Title:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer, or
Assistant Treasurer
Tony Akel, President
Tony Akel, Secretary
11/10/25
11/10/25
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5 11/10/2025
202511/ 12/2025 11/12/

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5- 4793993B6C62

SECOND AMENDMENT TO AGREEMENT
AKEL ENGINEERING GROUP, INC.

This SECOND AMENDMENT TO AGREEMENT is entered into and becomes effective on 12/ 13/ 2024 ( Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, CITY") and AKEL ENGINEERING GROUP, INC., a California Corporation ("CONSULTANT"), hereinafter referred to collectively as the "Parties".

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

1. This Second Amendment to Agreement is entered into based upon the authority of the City Manager pursuant to Chapter 3.04 of the Morgan Hill Municipal Code.

2. The CITY and CONSULTANT entered into that " CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS" made as of December 22, 2021, for consultant services for a maximum compensation of One Hundred Fifty Thousand Dollars ($ 150,000.00) (" CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS").

3. The CITY and CONSULTANT entered into a " First Amendment to Agreement" made as of November 26, 2023, under which only the maximum compensation under the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, as amended, was increased to Three Hundred Thousand Dollars ($ 300,000.00). The First Amendment to Agreement was entered into pursuant to the action of the Morgan Hill City Council taken on November 1, 2023. The CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS and the First Amendment thereto are attached as Exhibit " 1" to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

A. Paragraph 2 shall be amended and replaced in its entirety by the following:

2. Term of Agreement. This Agreement shall be effective and cover services rendered from December 22, 2021, until December 31, 2025. The City Manager is authorized to extend the term of this Agreement for a maximum period of one, one-year extension. Any such extension shall be in writing and signed by both Parties to this Agreement." B. The time period described in EXHIBIT Bis hereby amended to conform to the new end date of the Agreement of December 31, 2025.

C. Paragraph 12 shall be amended and replaced in its entirety by the following:

12. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement including, without limitation, complying with California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the 1 EXHIBIT 1
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5- 4793993B6C62 Ill
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regulations of the Fair Political Practices Commission concerning disclosure and disqualification ( 2 California Code of Regulations section 18700 et seq.). CONSULTANT will further comply and will ensure that its agents and its subcontractors comply, with California Government Code section 84308 ("Levine Act") and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 - 18438.8)."

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

CONSULTANT agrees that it shall reimburse CITY for all expenses, costs, attorneys' fees, and resulting fines, penalties, and damages associated with such incident, breach, investigation and/or notification.

Signatures on the Next Page]
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3. thatan Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree electronic copy of a signed contract, or an electronically signed contract, has the same forceand of legal effect as a contract executed with an original ink signature. The term " electronic copy meansof signed contract" refers to a transmission by facsimile, electronic mail, or other electronic a copy of an original signed contract in a portable document format. The term " electronicallysigned contract" means a contract that is executed by applying an electronic signature usingtechnology approved by the CITY.

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

5. Conflicts. In the event of a conflict between the terms and provisions of this SECOND AMENDMENT to Agreement and the terms and provisions of the CONSUL TANT AGREEMENT FOR DESIGN PROFESSIONALS or any earlier amendment, the terms of this SECOND AMENDMENT to Agreement shall govern and control.

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

ATTEST:

Signed by:
irL1llL lnw
Biglow, City Clerk
Date: 12/ 16/ 2024
APPROVED AS TO FORM:

Donald A. Larkin, City Attorney
DocuSigned by:
l"" H
BFE66AF9672C451 ...

Date: 12/ 9/ 2024
3 CITY OF MORGAN HILL
lvisb1AA1v tW' lALV
ristifira9lil!Jrner, City Manager
Date: 12/ 13/ 2024
AKEL ENGINEERING GROUP, INC.

By:

Title:

Date:

By:

Title:

Date:

Tony Akel, President
Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
11/ 21/ 2024
Tony Akel, Secretary
Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
11/21/2024
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F EXHIBIT 1

FIRST AMENDMENT TO AGREEMENT
AKEL ENGINEERING GROUP, INC.

This FIRST AMENDMENT TO AGREEMENT is entered into and becomes effective on 11/ 26L2023 ( Effective Date). by THE CITY OF MORGAN HILL, a municipal corporation, CITY") and AKEL ENGINEERING GROUP, INC., a California Corporation (" CONSUL TANT"), hereinafter referred to collectively as the "Parties".

RECITALS
The following recitals are a substantive partof this Agreement:

1. This First Amendment to Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on November 1 , 2023.

2. The CITY and CONSULTANT entered into that " CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS" made as of December 22, 2021, for consultant services for a maximum compensation of One Hundred Fifty Thousand Dollars ($ 150,000.00) (" CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS"). The CONSUL TANT AGREEMENT FOR DESIGN PROFESSIONALS is attached as Exhibit " 1" to this Agreement.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

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

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A. Paragraph 4.1 shall be amended and replaced in its entirety by the following:

4.1. Amount. Compensation under this Agreement shall not exceed THREE HUNDRED THOUSAND DOLLARS ($ 300,000.00) and shall be billed based on the rate and basis set forth in Exhibit B. The fees schedule and the rates in Exhibit B remain the same through December 31, 2024, unless the Parties mutually agree to revise the fees and rates in a writing signed by both Parties to this Agreement."
Signatures on the Next Page]
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2. Etectronjc Signatures, Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effectas a contract executed with an original ink signature. The term "electronic copy of a signed contract" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the CITY.

3. Conflicts. In the event of a conflict between the terms and provisions of this FIRST AMENDMENT to Agreement and the terms and provisions of the CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS, the terms of this FIRST AMENDMENT to Agreement shall govern and control.

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

ATTEST:

Date: 11/ 27/ 2023
APPROVED AS TO FORM:

D l (µiii,\,
doA Ebaf-kin, City Attorney
Date: 11/ 16/ 2023
2 A&. FT4:lmer, City Manager
Date: 11/ 26/ 2023
By:

Title: : loNY A\.<..EL YAAStPruT'
Print Name and Title' of Sign· er.

By:

Title:

Date:

If Corporate: Chairman, President or
Vice President
23 Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
2li23--
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597- 459C-937E-68C5B7F29B5F OocuSignEnvelopeID: 1F1F0958- 3734- 40F5- A6CE- 47C38DB6C560 EXHIBIT 1

CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS
AKS. ENGINEERIN_G GROUP, INC.

THIS AGREEMENT Is entered Into and becomes effective on 12; 2212021 EffectJve Date), by and between theCITYOF MORGAN HILL, a municipal corporation, (''CITY"), and Akel Engineering Group, Inc. a California corporation f'CONSULTANT") hereinafter referred tocollectively as "Parties.• In consideration of the promises and themutual covenants contained In thisAgreement. the Parties agreeasfollows:

HIiiCity 1. CfbrAuthority. ThisAgreement Is entered Into pursuant totheaction of the MorganCouncil takenon December , . ll,_, 20..ll..

EffectiveDate 2. Termof Aareement. ThisAgreement shall cover services rendered from the shallbe of this Agreement until December 31, 2024 at which time CONSULTANT'S services completed. The City Manager Is authorized to extend the term of this Agreement for a bothParties maximum of twoone- yearextensions. / Vlysuch extension shall beIn writing and signed by tothisAgreement.
andWastewater 3.·_ Scoa,eof Serylce. The services to be performed by CONSUL TANT shall be WaterUtility Planning and Engineering Services as furtherdescribed in Exhibit A.

4., ComR. @naatlon. CONSUL TANT shall be compensated as follows:

4.1. Amount $150,000.00. Total compensation to CONSULTANT under thisAgreement during itsInitialtermset forthIn Section2 above shall not exceedOne Hundred FiftyThousand dollars and shall bebilled based on therate and basis set forthIn ExhibitB. If theCityManagerextendsthetermof thisAgreement pursuant to the provisions of Section 2 above, the City Manager shall have theauthority to Increase the maximum compensation allowed to be paid to CONSULTANT, so long as City Council has appropriated sufficientfundstherefor, the Partiesmutually agree to such amount In a writingsigned by bothParties to thisAgreement, and provided further that In no event shall such maximum compensation allowed for each subsequent extended one- year term exceed 105% of the maximum compensation allowed to be paidto CONSUL TANT forone year of serviceduring the Immediately preceding prior yearof service, unless otherwise authorized by CityCouncil.

4.2. BIiiing. CONSULTANT shall provide CITY with an Invoice containing the dated, detailed, and Itemized descriptions of all services performed and e, cpenses Incurred ( If such expenses are reimbursable pursuant to Exhibit B) by CONSULTANT on a monthly basis unless otherwise specified In Exhibit B. All Invoices shall be sent to the CITYaddressed to thedepartment head or project manager Identified belowIn Section13 Notices. Anyratecharged shall be prorated where services areInterrupted or not provided forany rate period (forexample, any monthly rate charge should be prorated when services were Interrupted or provided foronly partof the month). For services billed on an hourly rate, the minimum unitof billedtimeshallnot exteed one tenthof one hour. CITYshallpay for services and expenses ( If so provided In Exhibit B) up to the llmlt of compensation set forthabove, thatIn the CITY' sJudgment were necessary and reasonable. Services forworkperformed and expenses Incurred In excess of the totalcompensation setforthIn paragraph 4.1 above shall be at no costtoCITY. 1 Upd818dU8fdl2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6-D597-459C-937E-68C5B7F29B5F OocuSlgnEnvelope ID: 1F1F0958- 3734-- 40F54\ 6CE- 47C380B6C560

5. Tennlnaflon, CITY or CONSULTANTshall have therightto terminatethisAgreement.

Withoutcause, by giving thirty (30) days' writtennoticeor lessunder urgent circumstances. Upon such termination, CONSULTANT shall submit to CITY an Itemized statement of se, vicesperformed forwhich compensation has not been paid. CITY may require CONSULTANT tocomplete certainwork product or documents and CONSULTANT shall deliver to CITY all CityManager documents In its possession without additional compensation to CONSULTANT. Theof CITYisauthorizedto tennlnatethisAgreement, inwhole or In part, onbehalf of CITY.

5.1. NAD·AuroprlatJo[IL Notwithstanding anything contained In thisAgreementto the contrary, if Insufficient funds are appropriated, or funds are otherwise unavailable In thebudgetfor CITYfor any reasonwhatsoeverIn any fiscalyear, for payments due under this Agreement, CITY will Immediately notify CONSULTANT of such occurrence, and thisAgreementshall terminate afterthe last day duringthe fiscalyear forwhlch appropriationsshall have beenbudgeted forCITYor areotherwiseavailable forpayments.

6. Perfonnance ofWort<. CONSULTANT represents that it Is qualified by virtue of experience, training, education, and expertise to accomplish theseservices. Servicesshall be performed by CONSULTANT In accordance withprofessional practices In a manner consistentwith alevel of care, competenceand skillexercisedbyqualifiedmembersof the CONSULTANT' S profession. Bydelivery of completedwork. CONSULTANT certifiesthattheworkconformsto TANTshall therequirements of this Agreementand all applicablefederal, stateand local laws. CONSUL performallwork and servicesunder this AgreementIn conformancewiththetimeschedule bythis set forthon Exhibit C, "Scheduleof Performance," attached heretoand Incorporated herein reference. CITY' sCityManager Is authorizedonbehalfof CITYto modifythe timeframesset forthon theSchedule of Performance withinthe tennof thisAgreement. If CONSUL TANT desires to leave or store any of CONSULTANT' sequipment at a CITY site while CONSULTANT Isperforming workor servicepursuanttothisAgreement. CONSULTANTwill firstobtaintheconsent Inthe of CITY' sCity Manager, or his/herdelegate, todo so, and any suchstorageshall occuronlymanner and location allowedby suchCITYofficialand entirelyat CONSULTANrs sole risk.

7. Jnaurance Re,gulrements. CONSULTANT shall procure and provide proof of the Insurance Therequired coverage required by this section In theform of certificates and endorsements.

Insurance must cover theactivities of CONSULTANT, Including its subcontractors, employees underthis and agents, relatingto or arisingfromtheperformanceof any work or service Agreement, and must remainIn fullforceand effectat all timesduring theperiodcoveredby thisAgreement. The coverages may bearrangedunder a single policyforthe fulllimitsrequired or by a combination of underlying policies withthe balance provided by excess or •umbrella0 Anydeductibles policies, provided each such policy complies with the requirements set forth herein. or self-Insured retentions mustbedeclared to and approvedby City. CONSULTANT further setforth understands that theCITYreserves theright to modify the Insurance requirements herein, with thirty (30) days' notice provided to CONSULTANT, at any time as deemed necessary to protecttheInterestsof theCITY.

7.1. l,nsurancel)!pesand Amounts.

7.1.1. , Commercial General Liability ( CGU. CONSULTANT shall maintain CGL against claimsand liabilitiesforpersonalInjury, death, or propertydamage providing protection In theminimum amount of: (I) one million dollars ($ 1,000,000.00) combinedsingle limit forany one accident or occurrence, or (Ii) the maximumamount of such Insurance available to CONSULTANT 2 UpdatedManti2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597- 459C- 937E- 68C5B7F29B5F DocuStgnEnvelopeID: 1F1F0958- 3734- 40F5- A6CE- 47C38O86C56O under CONSULTANT' scombinedinsurancepolicies (Including any excess or •umbrella• policies), whicheverIs greater.
7 .1.2. AutomobUe LliJ21Uh'., CONSULTANT shall maintain Automobile Liability covering all owned, non- owned and hiredautomobiles (If CONSULTANT does not own automobiles, then CONSULTANT shall maintainHired/ Nonowned Automobile Liability) againstclaims and liabilities for personal Injury, death, or propertydamage providingprotectionIn theminimum amount of: ( oneaccident I)one million dollars ($1,000,000.00) combined single limit foranyor occurrence, or QI) the maximum amount of such Insurance available to CONSULTANT under CONSULTANT'Scombinedinsurance policies (Including any excessor •umbrella• policies), whicheverIs greater.

7.1.3. Workers' Compensation Insurance and Emglo er' s Uabllttx.

CONSULTANT shall maintain Workers Compensation coverage, as required by law, In the minimum amount of: ( I) one million dollars 1,000,000.00) forany one accidentor occurrence, or (ii} themaximum amount of such Insurance available to CONSULTANT under
CONSULTANT' S combined Insurance policies ( Including any excess or umbrella" policies), whicheverIsgreater. IfCONSULTANT isself-Insured, CONSULTANT shall provide ItsCertificate of Permission to Self-Insure, duly authorizedby the Departmentof lndusbial Relations. 7 .1.4. ,Pollution (Environmental) Uabj( lty. If theperfonnanceof CONSULTANT' S work or service under this Agreement Involves hazardous materials, contaminated soil disposal, and/ ora risk of accidental releaseof fueloil, chemicals or other toxic gases or hazardous materials, CONSULTANT shall procureand maintainPollutionLiabilitycoveringthe CONSULTANT'S liability for bodily Injury, property damage and environmental damage resultingfrompollutionand relatedcleanup costsarising out of the work or services to be perfonned under this Agreement. Coverage shall be provided forbothworkperfonnedon site, as wellasduring thetransportof hazardous materials. Such coverage shall be in the minimum amount ot ( i)onemillion dollars ($ 1, 000, 000. 00) forany oneaccidentor occurrence, or ( ANTunder II) themaximumamount of such insuranceavailableto CONSULT CONSULTANl' scombinedInsurancepolicies (Includingany excess or •umbrella• policies), whicheverIs greater.

7.1.5. , ProfessionalUabll,
7 .1.5.1. If the perfonnance of CONSULTANT' s work or service under thisAgreementInvolvesprofessionaland/ ortechnical services (examples Include, but arenot limited to, architects, engineers, land surveyors, and appraisers), CONSULTANT shall procure and maintain either a claims made or occurrenceErrorsand OmissionliabilityinsuranceIn theminimum amount of: (I) one million dollars ($1,000,000.00) each claim, or (II) the maximum amount ofsuch Insurance available to CONSULTANT under CONSUL TANrs combined insurance policies ( Including any excess or • umbrella" policies), whichever is greater. Further, if CONSUL TANTmaintains a claims- made policy, CONSULTANT shaU provide written 3 Updated Mardi 2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DocuSlgn Envelope ID: 1F1F0958- 3734- 40F5- A6CE- 47C38D86C56D evidenceof such InsurancetotheCITYforat least five (5) yearsafterthe completionof workpeffonnedunderthisAgreement.

7.1.5.2. If the pe,fonnance clCONSULTANT' S workor senrlce under this Agreement relates to lnfonnatlon Technology or related services examples Include, but are not llmlted to computerprogrammers, software designers, hardware engineers, or other systems consultants), CONSULTANT shall procure and maintain a claims made Errors and OmissionliabilityInsurance, IncludingCyber Liability and DataBreach, In theminimumamount of: (0 one mllllondollars ($1,000,000.00) eachclaim, or (10 themaximumamount ofsuch Insuranceavailable toCONSULTANT under CONSULTANT' s combinedInsurancepolicies (Including any excess or "umbrella" policies), whicheverIs greater.

7.1.6. S xua! Abuse/ Molestation LiabH ( 8Mb}: If the perfonnance of CONSULTANT' sworkor serviceunder this AgreementInvolvescontact with minors, CONSULTANTshall procureand maintain Sexual Abuse and MolestationInsuranceIn theminimum amount of: (0 twohundred thousand dollars ($200,000.00) each claim, or ( 10 the maximum amount of such Insurance available to CONSULTANTunder CONSULTANT' S combined Insurance pollcfes (Includingany excessor •umbrellaD policles), whichever is greater.

7.2. _____ CONSULTANT shall provide proof of the following endorsements, asoutlined listedfor each policy forwhichendorsements are required, below:

7.2.1. General LlabUitvandpoUuttonHabllitvlwhen . Q. OHutionUabllityagpnes). 7 .2.1.1. The City of Morgan HIii, Its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteersarenamed as additional insureds;

7.2.1.2. The Insurer waivestheright of subrogationagainst theCityof Morgan HIii and theCITY' selectedor appointedofficials, boards, agencies, officers, agents, employees, and volunteers; and,
7 .2.1.3. Insuranceshall beprimarynon-contributing.

1.2.2. WorkersCompensation,
If the performance of CONSULTANrS work or service under this Agreement Involves access to or activity on any property orpremises owned or occupied by the CITY, Including, but not limited to.

CONSULTANrs presence during site visitsand meetings, thenInsurer waives the rightof subrogation against the City of Morgan HIii and the CITY' s elected or appointed offlclals, boards, agencies, officers, agents, employees, and volunteers.

7.3. Quallflcatlon All Insurancerequiredpursuanttothis Agreementmust beIssued by a companylicensed and admitted, or otherwiselegally authorizedto Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F- 499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6-D597-459C-937E-68C5B7F29B5F DoC\ JSlgnEnvelope 10: 1F1F0958- 3734- 40F5- A6CE- 47C38O86C56O carry out insurance business in the State of California, and each insurer must have a current A.M. Best's financial strength rating of aN or better and a financial size rating of uvll" or better.

7.4. . Certificates. CONSULTANT shall furnish CITY of Morgan Hill with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, CONSULTANT shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to the CONSULT ANT' s agreement with the CITY shall be canceled or materially changed except afterthirty ( 30) days' notice by the insurer to CITY. A "material change" is a change that results in non-compliance with any insurance requirements in this section 7. Certificates, including renewal certificates, may be mailed electronically to rlskmgmt@morganhill. ca.qov or delivered to the Certificate Holder address provided herein.

Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037

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

9. Compliance with Law.

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

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

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

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

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

THIS AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS DIS CLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
5 Updated March2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8 -F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DocuSlgnEnvelOpe ID: 1F1F0958-3734-40F5- A6CE- 47C38O86C56D INVESTIGATORYGOVERNMENTAGENCY FINDING -IN THE FIVE (5) YEARS

PRIOR TO EXECUTINGTHIS AGREEMENT- THAT CONSULTANT OR ITS SUBCONTRACTOR($) HASVlOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONSULTANT FURTHER AFFIRMS THAT IT OR ITS
SUBCONTRACTOR($) HAS SATISFIED AND COMPLIED WITH - OR HAS REACHED AGREEMENT. WITHTHE CITY REGARDING THE MANNER IN

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

Judgments or DecisionsDuringTermof Contract If at any time duringtheterm of this Agreement, a court or Investigatory government agency Issues a final judgment, decision ororderfindingthat CONSULTANT or an subcontractor It employs to performworkunder this Agreementhas violated any applicablewage and hour law, or CONSULTANT learnsof such a judgment, decision, or order that wasnot previouslydisclosed, CONSULTANT shall Inform the CityAttorney, no morethanfifteen (15) days afterthejudgment, decisionor orderbecomesfinalor of leamlng of the final Judgment. decision or order. CONSUL TANT and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shallprovide theCityAttorneywithdocumentaryevidence of compliance with the finaljudgment, decision or order withinfive (5) days of satisfying the finaljudgment, decision ororder. The City reservesthe rightto require CONSULTANT toenterInto an agreement with the Cityregarding the manner In which any suchfinaljudgment. decision, or order willbe satisfied.

City' sRightto WithholdPayment WhereCONSULTANT or any subcontractorIt employs to performworkunderthisAgreementhas beenfound In violationof any applicablewage and hour law by a final Judgment, decisionororderof a courtor government agency, the City rves the right to withhold payment to CONSUL TANT until suchjudgment, decision or order has been satisfiedIn full.

Material Breach: Failure to complywithany part of this Section constitutes a material breach of this Agreement Such breach may serve as a basis for Immediate terminationofthis Agreement and/ or any other remedies available under this Agreementand/ orlaw.

Notice to City Related towage Theft Prevention: Notice providedtotheCity Attorneyas requiredunder this Sectionshall be addressed to: City Attorney, City of Morgan HIii, 17575 PeakAvenue, Morgan HIii, CA 95037. The Noticeprovisions of this Section are separatefromany othernotice provisions In thisAgreement and, accordingly, only noticeprovidedtothe above address satisfiesthenotice requirements In thisSection.

10., agentor lndeeendentContractor. CONSULTANT Is an Independentcontractorand not an employeeof CITY.

CONSULTANTfrom 11., Confldentlalftx. All data, documents, or otherinformation received by aredeemed CITYorprepared In connection withCONSULTANT' Sservices underthis Agreement priorwritten confidentialand shall notbe disclosedto any thirdpartyby CONSULTANT withoutconsentby CITY. 6 Upda!BdMaid\ 2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F Doet. tSfgnEnvelope ID: 1F1F0958- 3734-40F5- A6CE- 17C38D86C56D ofInterest 12. Confllct.of Interestand Reporting, CONSULTANT shall at all timesavoid conflict or appearanceof conflictofInterest In performanceof thisAgreement

13. Notices, All noticesshall be personallydeliveredor malled, via firstclassmall to thebelow beeffective listedaddress. Theseaddressesshall beusedfordeliveryofserviceof process. Noticesshallfive (5) days afterdate of mafflng, orupondateof personaldelivery.

AddressofCONSULTANT ls as follO\W:

AkelEngineeringGroup
7433NorthFirstStreet, Sutte103
Fresno, CA93720
Addressof CllYIsas follows:

UtilityDivision
Cityof MorganHIii
17575 Peak Avenue
MorganHIii, CA 95037
withacopyto:

CityClerk
Cityof Morgan HIii
17575 PeakAvenue
MorganHUI, CA95037
BusinessLicense, 14. bicensM. afeonftsand Fees. CONSULTANT shall obtain a CityofMorganHIii au permitsand licensesto theextentrequiredby ordinances, codesand regulationsof thefederal, stateand localgovernment

15. Consultant's Proposal. If applicable, thisAgreement shall Include CONSULTANrsproposal or bid which Is Incorporatedherein. In theeventofany Inconsistencybetweentheterms oftheproposaland this Agreement, thisAgreementshall govern.

16. Maintenance of Records.

16.1. Maintenance. CONSULTANT shall prepare, maintain, and preserve all reports and recordsthatmay berequiredby federal, state, and CITYrulesand ordinances relatedto servicesprovidedunder thisAgreement CONSULTANTshall maintain records fora period of at least 3 yearsafterreceiptof finalpayment under this Agreement. If any litigation, claim. negotiation, audit exception, or other action relating to this Agreement Is pending at the end of the 3- year period, then CONSULTANT shall retainsaidrecordsuntilsuch actionIs resolved.

16.2. Accessto andAuditofRecords. The CITYshall have the rightto examine, monitor and audit all records, documents, conditions, and activitiesof the CONSULTANT and Its subcontractors related toseNlces under this Agreement Pursuant to Government CodeSection 8546. 7, Ifthis AgreementInvolves theexpenditureof public fundsIn excessof $10,000, thePartiestothisAgreementmay be subject, at therequestof theCITYor as partof any audit of theCITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance ofthisAgreementfora periodofthreeyearsafterfinalpayment under the Agreement.

16.3. Ownership of Work Produm, All documents or other Information developed or receivedby CONSULTANT forworkperformedunder this Agreementshall be the 7 UpdaJBdMan:t12QZ1
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597- 459C-937E- 68C5B7F29B5F DocuS! gnEnvelope ID: 1F1F0956- 3734-40F5- A6CE- 47C38D86C56D property of CITY. CONSULTANT shall provide CITY with copiesof these Items upon demand or upontennlnatlonof thisAgreement

17., FamlllarttywithWork. By executingthis Agreement, CONSULTANT representsthat: ( 1) It has Investigated theworkto be performed; (2) It has Investigatedthe siteof theworkand is aware of all conditions there; and (3) It understands thedifficultiesand restrictions of thework under thisAgreement Should CONSULTANTdiscoverany conditions materially differing fromthose InherentIn theworkor as rep,ttSented byCITY, itshall lmmedlately InformCITYand shall not proceed, exceptat CONSULTANT'Srisk, untilwrittenln51ructlons arereceivedfromCITY. 18 . TimeofEssence. Time Is of the essenceIn the performance of this Agreement

19."' 40 Assignment Neither this Agreement nor any portion shall be assigned byCONSULTANT, without prior written consent of CITY. Any attempted assignment not first approvedby CITY shallbe void and, at CITY'soption, shallterminatethisAgreementeffectiveas of thedateof suchattempted assignment.

20. AttomeiFees. In any legalaction, dispute or arbitrationarising out of or relatingto this Agreement, the prevalllngpartyshall beentiUedtoan awardof itsreasonable attorneyfees, cos1s and expensesIncurred.

21. De{anseand Indemnification.

21.1. ,withCalifornia Defense and Indemnification forDesignProfessionalS_endces. Consistent CMI Code Section 2782.8, for design professional services to be performed under this agreementby a designprofessional, as thattermIs defined under saidSection2782.8, CONSULTANT shall, tothefullestextentpermittedby law, Indemnify, defendand hold harmlessCITY, Itselectedor appointedofficials, boards, agencies, offlce,s, agents, employees, and volunteers c•1NDEMNITEES•) fromand against any and all claims, liabllltles, expenses, liens, or damagesof any nature, Includingllablllty for bodilyInjury, propertydamage or personalInjury, and Includingreasonableattomeys' feesand expenses, thatariseoutof, pertainto, or relate to the negligence, recklessness, or willfulmisconduct of CONSULTANT, and/or Its agents, office,s, employees, subcontractors, or Independentcontractors In performance of workhereunderor Itsfailureto complywithany of Its obligations contained In this Agreement c•cLAJMi to the extent of CONSULTANT'S proportionatepercentageof fault.

21.2. Defense and Indemnification for Non-Design Professional Services. For all services performed under this agreement not covered by Section 21.1 above, CONSULTANT shall, to thefullestextentpermittedby law, Indemnify, defendand hold harmlessCITY, itselectedor appointedofficials, boards, agencies, officers, agents, employees, and volunteersc•1NDEMNITEES•) fromand against any and all claims, liabilities, expenses, liens, or damagesof any nature, Includingliability for bodily Injury, property damage or personal Injury, and Including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement orthe failure to comply with any obligations contained In this Agreement by CONSULTANT, and/or Its agents, officers, employees, subcontractors, orIndependentcontractors c• cLAJM1.

B
UpdallJdMaid! 2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DOCtlSignEnvelope 10: 1F1F0958- 3734- 40F5• A6CE- 47C38DB6C56D

21.3. Exceptions. CONSULTANT Is notrequiredto Indemnify INDEMNITEES against liability for bodily Injury, property damage or personal Injury, or any other loss, damage or expensearisingfromthe sole negligence, active negligenceor willful misconductof theCITY.

21.4. . Nollimited . bx, losumnce. The Indemnity, defenseand hold hannlessprovisionsof this Agreement applytoaffCLAIMSallegedagainst an INDEMNITEE, regardless of whether any Insurance policies are applicable. Polley limits do not actas a limitation upon the amount of Indemnification or defense to be provided by CONSULTANT.

21.5. Rightto Offset CITYshall have theright to offsetagainst any compensation due CONSUL TANT under thisAgreementany amount due CITYfromCONSUL TANT as a resultof CONSULTANT"sfailureto pay CITYpromptly anyIndemnification arising under thisSection (21) and any amount due CITYfrom CONSULTANT arising fromCONSULTANT'sfailureeitherto (I) pay taxeson amountsreceived pursuant to thisAgreement or (II) complywithapplicableworkers' compensation laws.

21.6. Jnterprelation. This Sectionshall constitutean agreementor contractofIndemnity, Incorporating theInterpretations under Cellfomla Civil CodeSection2778. It Is expressly understood and agreed that theobligation of the CONSUL TANT to Indemnify the INDEMNITEE shall beas broad and Inclusive as pennlttedbythe lawsof theStateof CaDfomla and shaNsurvivetennlnatfon of thisAgreement

22. EntireAgreementModlflcatlonaConflicting Provisions. ThisAgreement constitutesthe entire Agreement between the Parties and supersedes any previous agreements, oralor written. mutualwritten This Agreement may be modified or provisions waived only by a subsequent agreement executedby CITYand CONSULTANT. If the provisions containedIn themain bodyofthisAgreement conflictwithany provisioncontained In an exhibit to thisAgreement, theprovisions of the main body of this Agreement shall govern and control over any provision contained In an exhibitto this Agreement

23., Govemln9 LawandVenue. This Agreement shall be construed In accordancewiththe lawsof theStateof Callfomla. This Agreementwasentered Into and Is to be performed In theCounty ofSanta Clara. Anyactionor dispute arising out of thisAgreementshall onlybe brought In SantaClaraCounty.

24. havebeen Interpretation. ThisAgreementIs a negotiateddocument and shall be deemedto againstany draftedjointly by the Parties, and no rule ofconstructionor Interpretationshall apply PartiesIncluding, particular Partybased on a contentionthattheAgreementwasdraftedby one ofthebutnot llmlted to, Callfomla Cfvll Code § 1654, theprovisions of which are hereby waived. This Agreementshall be construed and InterpretedIn a neutralmanner.

25. Preservation of Agreement. If any term, provision, covenant, or condition of this AgreementIs held by a courtof competent jurisdlctiontobe Invalid or unenforceable, therestof the Agreement shall remainIn fullforceand effectand shall In no Wa' fbeaffectedor lnvalldated.

Agreementshall 26. Binding yreement. NotwithstandingtheprovisionsofSectlpn19 above, thisbind any and all successors In Interest, legal representatives and/or other permittedassignees or transfereesofCONSULT ANT In thesame manner as Ifthose successorsIn Interest, 9 Upd8t8dMardi2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DocuSlgn Envelope ID: 1F1F0958- 3734- 40F5- A6CE- 47C38D86C56D legalrepresentatives orotherpermittedassi gneesor transferees had entered IntothisAgreement originally.

27. 0 Data Sharing. This Agreement requires access by CONSULTANT to CITY'S Geographic CITYagrees lnfonnation System (GIS) DATA for CONSULTANT to perform the work. ofcontracted to provide the GIS.0ATA to CONSULTANTsolelyfor the purposeof performance workwiththeCITYuponthetermsand conditions specJfied In Exhibit 0, Incorporatedherein by thisreference.

Signatumson Next Page}
10 Updated Man:h2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E- 68C5B7F29B5F DocuSlgn Envelope ID: 1F1F0958- 3734- 40F5- A6CE- 47C3BDB6C56D

28. ofentities· Authoritl!'. to Execute. Those individuals who are signing this Agreement on behalf represent and warrant that they are, respectively. duly authorized to sign on behalf of theentities and to bind the entities fully to each and all of the obligations set forthin this Agreement.

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

AS SET FORTH IN CA. CORP. CODE§ 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND 2) SECRETARY. ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

ATTEST:

Gil:·-.,. _ J. yA City Clerk
MiclrelleBigelow
Print Name
Date: 12/ 22/ 2021
APPROVED AS TO FORM:
1 l i!Ac
Donald A. Larkin
Print Name
Date: 12/ 16/ 2021

CITY OF MORGAN HILL
uE 1'....,,,
Christina J. Turner
Print Name
Date:

By:
12/ 22/ 2021
roN'i A:½e.L pg., i?llli'S:

Print Name and Title o( Signer.

If Corporate: Chairman, President or
Vice President
Date: I2../ 7/ 2J
Date:

Totrt Mn fC'UlW-t
Print Name and Title Msigner.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
U:\ legal Fonns\ ConsullantAgreements\ CllySenilces Agreement For Design P10fe&slonal&. Docx 11 Updated March 2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8 -F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DocuSign Envelope ID: 1F1F0958- 3734- 40F6- A6CE- 47C38DB6C56D

EXHIBITA

SCOPE OF SERVICES
The services for thisagreementwill be to provideon- callwaterand wastewaterplannlng and engineering servicestothe City. The Citywlllask the consultant to providea proposals for specificservices or projectsasneeded and wlllIssuea noticetoproceed If theproposal Is accepted. Services may Include but arenot llmltedto thefollowlng; masterplanning, hydrologlc and hydraulicmodeling, assetcondition assessments, water quality assessments, capacityanalysis, projectengineering and design. Belowarethe anticipated worktasksthat theselectedconsultant teammay complete under this contract. The City reserves the right to expandorexclude scope Items, as neededduring this contract.

1. Prellmlnary utilityplanning lncludlng updatingcomprehensive plans alternativestudies, pennltdocument preparation and approval, environmental Impactstudies, and publlc hearings and meetings.

2. Coordination and preparation ofenvlronmental pennlttlngdocuments required toreceive thenecessary environmental approvalstoconstruct theassigned projects.

3. Coordination of all utllltyrelocations, Including priorrightsnegotiations, utilitydesignation and location services, and techni calreviewof proposed relocation plans.

4. Designservices for various projectsIncluding waterpipelines and pumpstations, was1Bwater plpellnes and Ifftstations, and sitedevelopment with small bulldlngs and parking facllltles.

6. Review and develop utllltydesignand constructionstandards. staffto 8. Provide peer reviewservicesfor documentsdesigned by otherflnnsor City assureadherence to accepted engineering practices and standards.

CityIncluding 7. WaterResources analysis to develop newwatersupply sourceswithinthesurfacewaterand groundWaterdevelopment, and reservoirsto meet projected demand.

8. Water system and wastewater systemcapacity analysis. andwater 9. Planning and designof watersystempump stations, waterstoragetanks, systemdistribution projects: and wastewater Ifftstations and wastDwatar collection systemprojects.

10. Preparation of ContractDocumentsfor bidding purposeslncludlng final plans, specifications, costestimates, constructablllty reviewsto detennlne contractduration, and necessary addenda.

11. Construction supportservices, Including reviewand approval dshop drawings, respond to Request for lnfonnatlon, periodicprogress meetings, and fieldconsultation as necessary. Provide specialtyconstruction engineering observations asrequested. 12 Upda! adMan: 2021h
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F- 499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597- 459C-937E-68C5B7F29B5F DocuSign Envelope ID: 1F1F0958- 3734- 40F5- A6CE- 47C38OB6C56O

12. Search and Identify sources for governmental grants thatwlllassist the City Infunding utlllty projects Including preparation of grant appllcatlons/ proposal on an as needed basis.

13. Presentations toand attendance at necessary staffand/ or CityCouncil meetings. 13 UpdatedMan:h20' 21
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6-D597-459C-937E-68C5B7F29B5F DocuSlgnEnvelope ID: 1F1F095B-3734- 40F5- A6CE- 47C38DB6C56D

EXHIBITS

SCHEDULE OF COMPENSATION RATES
consultant BillingJ_ates and Fe

ENGINEERING
AKEL
GROUP, INC.

FEE SCHEDULE
EffectiveThrough:

June 30, 2022
Category
Senior Principal Engineer
Principal Engineer
Senior Engineer
Associate Engineer
Assistant Engineer
Engineering Assistant
Senior GIS Technician
GIS Technician
Word Processing/Secretarial
Other Direct Expenses
Other Direct Cost
Hourly Rate
255
230
190
170
145
115
150
125
100
Cost plus 5%
Fee Schedule is subject to an annual increase at the end of the fiscal year Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F- 499D-BDC5- 4793993B6C62 DocuSign Envelope ID: 6A3B04F6- D597-459C-937E-68C5B7F29B5F DocuSlgnEnvelope ID: 1F1F0958- 3734- 40F5- A6CE- 47C38DB6C560 J' -, ::;..& ..... :!/: ---. . - .. .. -- ' P.7 in:--cuJ mt 13illi'ngL_! t 9.; f /- . l:. ;

KASRAJECONSULTING
Ventura, CA93003
Phone: ( BOS) 340·4744
eUBLIC WORKS PROJECTS

RATE SHEET
January1, 2021 through December 31, 2021
POSITTON mLE
1 2
4 5
6 GIS Specialist
7 8

MISCELENEOUS
Printing, reproduction, postage, deliveryand other services Mileage outsideVentura County
SubconsultantMarkup
Litigation/ExpertWitnessRate Adjustment
HOURLY
BIWNGRAlE
205
195
185
160
130
120
105
At Cost
At Current IRS Rate
15 Percent
175 Percent
Other direct and miscellaneous chargesencounteredin performanceof services, such as permits, supplies not normally used to performa specificjob, etc. are billed at costwith no additionalservicecharge.

Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

Docusign Envelope ID: 88DA74B8- F57F-499D-BDC5-4793993B6C62 DocuSign Envelope ID: 6A3B04F6-D597-459C-937E-68C5B7F29B5F DocuSlgnEnvelopeID: 1F1F0958-3734-40F5- A6CE- 47C38O86C56O 16 IJpdafadMaldi2021
Docusign Envelope ID: D9B40DBA- A55B-4D80-81E7-F612CCE8BAD5

4 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

Mario Ramirez, Police Captain
APPROVED BY: City Manager
APPROVE THE 2025 ANNUAL CONTROLLED EQUIPMENT USE
REPORT

RECOMMENDATION(S)
Approve the 2025 Annual Military Equipment Use Report and the continued use of the controlled equipment contained in the report.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Strategic Priorities 2026-2027
Fiscal Sustainability
Public Safety
Guiding Documents
Public Safety Master Plan
REPORT NARRATIVE:

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

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

Finally, the bill requires the publication of the controlled equipment use procedure and the

4 annual controlled equipment report on the Department's website. The controlled equipment use procedure must be posted on the website at least thirty (30) days before the City Council meeting.

California Government Code section 7072 requires an annual report within a year of the policy approval and annually after that for as long as the controlled equipment is in use.

The annual report must contain the following information:

1. A summary of how the equipment was used and the purpose of its use.

2. A summary of any complaints or concerns from members of the public about the equipment.

3. The results of an internal audit, including any information about violations of the equipment use policy and any actions taken in response.

4. The total annual cost for each type of equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing expenses; and from what source funds will be provided for the controlled equipment in the calendar year following submission of the annual report.

5. The quantity possessed for each type of controlled equipment.

6. If the law enforcement agency intends to acquire additional controlled equipment next year, and the quantity sought for each type of qualifying equipment.

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

The Morgan Hill Police Department recognizes the public's ongoing interest in how controlled equipment is used to protect our community. We are committed to maintaining our community's trust in providing professional and responsive police services. Therefore, the Morgan Hill Police Department has authored the following comprehensive Annual Report on Controlled Equipment Use to remain transparent with our community and in accordance with annual reporting requirements set forth by applicable California Law. The Police Department has completed its 2025 Annual Report on Controlled Equipment Use and presented it at a well-publicized Town Hall Meeting on May 13, 2026, in the City Council Chamber. The Annual Report is included as an attachment for review and approval. Five (5) community members came to the Town Hall Meeting and were given the opportunity to ask questions and receive clarification regarding the use of controlled equipment. No objections were raised by attendees concerning the continued use of controlled equipment by the Police Department.

COMMUNITY ENGAGEMENT:

On May 13, 2026, Morgan Hill Police Department held a Town Hall Meeting to discuss the

4 2025 Controlled Equipment Annual Report. The meeting was advertised in the City's 411 email, on the City's website, and other channels.

ALTERNATIVE ACTIONS:

None.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 4, 2025, the City Council approved the 2024 Controlled Equipment Use Report as outlined in Government Code section 7070.

FISCAL AND RESOURCE IMPACT:

The cost of the controlled equipment for 2025 was $428,153. The projected cost of the controlled equipment for 2026 is $58,991 and is included in the Police Department's Fiscal Year 2026-27 budget.

Equipment Type Equipment Cost
(2025)
Cost Projections
(2026)
Unmanned Aircraft System $0 $23,730
Armored Rescue Vehicle $405,987 2,000
The ROOK N/A N/A
Mobile Incident Command $10,700 $12,000
Long Range Acoustical
Device (LRAD)
$0 $0
40mm Less-Lethal
Launchers
$0 $250
Less-Lethal Shotguns $0 $15,911
Diversionary Devices $2,117 $1,500
Rifles $4,806 $2,000
Chemical Agents and
Smoke Canisters
$4,543 $1,500
PepperBall Launchers $0 $100
TOTAL $428,153 $58,991
It should be noted that the purchase of the Armored Rescue Vehicle was $405,987, representing 95% of the total amount spent on controlled equipment in 2025.

CEQA (California Environmental Quality Act):

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

2025

CONTROLLED EQUIPMENT USE

ANNUAL REPORT
Morgan Hill Police Department

1 Annual Report on Controlled Equipment Use 2025
Table of Contents
Executive Summary.................................................................................................................................. 2 Introduction............................................................................................................................................... 4 Summary of Controlled Equipment Usage ............................................................................................ 5 Current Inventory of Controlled Equipment......................................................................................... 7 Controlled Equipment Categories........................................................................................................... 9 Unmanned Aerial Systems (UAS).............................................................................................. 10 Armored Vehicle ......................................................................................................................... 12 Armored Caterpillar Multi-Terrain Loader (The ROOK) .................................................... 14 Mobile Incident Command Vehicle (MCV) ............................................................................. 16 Long Range Acoustic Device (LRAD)....................................................................................... 18 40mm Less-Lethal Launchers and Munitions.......................................................................... 20 Less-Lethal Shotgun and Munitions......................................................................................... 23 Diversionary Devices .................................................................................................................. 25 Rifles and Munitions................................................................................................................... 28 Chemical Agents and Smoke Canisters .................................................................................... 33 PepperBall Launcher and Projectiles ....................................................................................... 37 Training Summary.................................................................................................................................. 39 Equipment Costs..................................................................................................................................... 40 Fiscal Impact ........................................................................................................................................... 41 Projected Acquisitions for 2026............................................................................................................. 42 Consumable Controlled Equipment...................................................................................................... 42 Non-Consumable Controlled Equipment............................................................................................. 42 Department Transparency..................................................................................................................... 46 Controlled Equipment Coordinator Report......................................................................................... 46 Conclusion ............................................................................................................................................... 47 Appendix.................................................................................................................................................. 48

2 Annual Report on Controlled Equipment Use 2025
Executive Summary
On September 30, 2021, the State of California enacted Assembly Bill (AB) 481, which requires law enforcement agencies to develop and adopt a military equipment use policy and annually obtain approval from the agency’s applicable governing body for that policy, as well as for the funding, acquisition, or use of the military equipment within its jurisdiction. Approval may only be granted if the governing body determines that the military or controlled equipment meets specified standards.

This legislation also allows the agency’s governing body to approve the continued use of military equipment within its jurisdiction that was acquired prior to January 1, 2022.

As outlined in AB 481, California Government Code section 7072 requires agencies to publish an annual report within one (1) year of policy approval and annually thereafter for as long as the military equipment is available for use. The annual report must contain the following information:
(1) A summary of how the equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the equipment. (3) The results of an internal audit, any information about violations of the military equipment use policy, and any actions taken in response.
(4) The total annual cost for each type of equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing expenses; and from what source funds will be provided for the equipment in the calendar year following submission of the annual report.
(5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment next year, and the quantity sought for each type of qualifying equipment.

Additionally, AB 481 requires the publication of the agency’s military equipment use policy and an annual report regarding the agency’s military equipment use. These documents must be published thirty (30) days prior to the governing body’s approval hearing. A community engagement meeting regarding the agency’s annual report must also be held within thirty (30) days of the policy being published.

The Morgan Hill Police Department has established Policy 708 - Armed Rescue Vehicle and Policy 709 – Military Equipment. These policies are available on the Police Department’s website at https://www.morganhill.ca.gov/2275/Military-Equipment-Policies.

The Police Department will present these policies and the annual report of its military and controlled equipment and usage annually at a predetermined City Council meeting. At this meeting, the Council may review and determine whether the standards governing the equipment and its usage have been met, approve the continued use of the equipment, require modifications to the equipment or its use, or disapprove

3 Annual Report on Controlled Equipment Use 2025
authorization if the standards have not been met.

In addition, at least one (1) well-publicized and conveniently located community engagement meeting will be held to allow members of the public to discuss and ask questions regarding the Police Department’s annual military and controlled equipment report, including funding, acquisition, and/or use of the equipment.

Military equipment is a term used to describe specific items designed, developed, or modified for military application. Controlled equipment is a broader term that encompasses both specialized military hardware and civilian items that may have potential military application.

The Morgan Hill Police Department recognizes the public's ongoing interest in how military and controlled equipment is utilized to protect our community. We remain committed to maintaining the community's trust by providing professional, responsive police services. To support this commitment, the Morgan Hill Police Department has prepared the following comprehensive Annual Controlled Equipment Use Report to promote transparency and to comply with the annual reporting requirements established by California law.

4 Annual Report on Controlled Equipment Use 2025
Introduction
The Morgan Hill Police Department is committed to protecting lives and property through partnership with our community while providing professional and responsive police services. To effectively and safely accomplish our mission, the Department maintains specialized (military or controlled) equipment to safeguard the citizens of Morgan Hill and protect our first responders.

Although the Department maintains an inventory of specialized equipment, the mere possession of such equipment does not warrant its use. The decision to deploy military or controlled equipment is based on the merits and the totality of the circumstances of each unique incident and is done in compliance with Department policy and California law.

The term "military equipment or controlled equipment," as used in Assembly Bill (AB) 481, does not necessarily indicate that the equipment is or has been used by the military. Many items defined as military or controlled equipment under AB 481 are commonly used by law enforcement agencies to preserve life, enhance public and officer safety, and ensure preparedness for both lethal and less-lethal threats that may arise in our communities. The Morgan Hill Police Department's use of controlled equipment is consistent with established best practices utilized by law enforcement agencies nationwide.

Equipment used by the Morgan Hill Police Department that is considered military or controlled equipment under AB 481 includes, but is not limited to, emergency response equipment such as command vehicles and armored rescue vehicles, less-lethal shotguns, less-lethal 40mm projectile launchers, precision rifles, unmanned aircraft systems, and other specialized equipment. Continued access to and responsible use of this equipment ensures our officers have the appropriate tools to de-escalate situations, preserve life, maintain public safety, and protect civil liberties.

This Annual Controlled Equipment Use Report provides a summary of equipment usage guidelines, inventory, fiscal impact, complaints, and reported community concerns for the 2025 calendar year (January 1, 2025 through December 31, 2025).

5 Annual Report on Controlled Equipment Use 2025
Summary of Controlled Equipment Usage
The Morgan Hill Police Department provides law enforcement services twenty-four (24) hours a day, seven (7) days a week, serving a city population of approximately 46,384 residents. The Department is committed to de-escalation whenever possible, and the use of force is reserved for situations where less intrusive options are not feasible.

In 2025, the Morgan Hill Police Department responded to approximately 32,377 calls for service. Of those calls, officers used force on eleven (11) occasions, representing 0.03% of the total calls for service. It should be noted that four (4) of the use-of-force incidents occurred during an officer-involved shooting incident at a local Safeway store.

Police events and critical incidents are often dynamic and unpredictable. The availability of specialized equipment assists incident commanders, officers, and specialized units in resolving incidents safely and effectively. Incident commanders, supervisors, individual officers, and specialized teams are responsible for recognizing when specialized equipment should be deployed and for ensuring its use remains within the confines of Department policy and California law.

Each use of military or controlled equipment is subject to review to ensure it was deployed appropriately based on the totality of the circumstances known to the officers at the time of the incident. These reviews place particular emphasis on maintaining community and officer safety, protecting civil liberties, and ensuring compliance with applicable laws and departmental policies.

While the Morgan Hill Police Department maintains a variety of military and controlled equipment, the mere possession of the equipment does not warrant its use. Deployment is restricted to specific circumstances and, in some cases, limited to trained personnel or specialized units.

This section outlines the operational use of controlled equipment during the 2025 calendar year. Certain items of controlled equipment, particularly consumable items such as ammunition, diversionary devices, pepper balls, and chemical agents are used regularly for training purposes to maintain proficiency.

Training-related usage is not included in this section. This section provides data only for the operational deployment of controlled equipment identified in this Annual Controlled Equipment Report.

The following is the data for military equipment usage by category for 2025:

Unmanned Aircraft System (UAS)
An unmanned aircraft system was utilized operationally zero (0) times in 2025.

Armored Rescue Vehicle (ARV)
The armored rescue vehicle was utilized operationally twenty-two (22) times in 2025. • These deployments occurred during SWAT operations in the City of Gilroy and the City of Morgan Hill, as well as during special events in the City of Morgan Hill, such as the Morgan Hill Mushroom Festival, the Morgan Hill Freedom Fest, and Boots and Brews Country Music Festival.

The ARV was obtained through mutual aid with the Santa Clara County Sheriff's Office, the Santa Clara Police Department, and the Gilroy Police Department.

6 Annual Report on Controlled Equipment Use 2025
NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) was utilized operationally zero (0) times in 2025. Currently, the Department does not possess a NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK).

Mobile Command Vehicle (MCV)
The Mobile Command Vehicle (MCV) was utilized operationally twenty-two (22) times in 2025. • Deployments occurred during SWAT operations in the City of Gilroy and Morgan Hill, as well as for special events, such as the Morgan Hill Mushroom Festival, the Morgan Hill Freedom Fest, and the Boots and Brews Country Music Festival.

Long Range Acoustic Device (LRAD)
The Long-Range Acoustic Device (LRAD) was utilized operationally zero (0) times in 2025. 40 MM Launchers and Rounds
The 40 MM Launchers and Rounds were utilized operationally zero (0) times in 2025.

Less Lethal Shotgun
A Less Lethal Shotgun was utilized operationally one (1) time in 2025. • 04/18/25: Officers responded to an incident involving a male subject holding a knife and a wine bottle, walking around the Safeway Store on E. Dunne Avenue in Morgan Hill. Officers attempted to communicate with the subject to have him drop the knife and wine bottle; however, the subject retreated further into the store. During the incident, officers deployed the less-lethal shotgun multiple times to take the subject into custody as the subject threw bottles at the officers. This incident ended with an officer involved shooting. The subject was taken into custody and provided medical treatment.

Distraction Devices
Distraction Devices were utilized operationally fourteen (14) times in 2025. • In these instances, the Distraction Devices were used as attention-getters for SWAT callouts or high-risk warrant services. No medical attention was required because of the deployment of these devices.

Chemical Agent and Smoke Canisters
Chemical Agents and Smoke Canisters were utilized operationally two (2) times in 2025. • 07/22/25: The SWAT Team was initiated for a barricaded subject in Gilroy, who was holding other occupants captive in a residence. Officers attempted to communicate with the subject and requested they exit the residence and surrender; however, the subject refused to comply.

Eventually, the subject did release the other occupants of the residence, but they remained within the residence and refused to exit and surrender to the officers. At the time of the incident, the subject was wanted for assault with a deadly weapon, brandishing a weapon, and a probation violation. As the subject continued to refuse to exit the residence, chemical agents were deployed into the residence. After a few minutes, the subject exited the residence and attempted to flee on foot. After a foot pursuit, the subject was taken into custody and provided medical care.

7 Annual Report on Controlled Equipment Use 2025
• 12/10/25: Officers conducted a high-risk vehicle stop for a stolen vehicle. The vehicle's occupant refused to exit and follow the officers' commands. Officers continued to give the occupant multiple commands to exit the vehicle however, the occupant refused to comply or speak with the officers.

The rear window of the vehicle was broken with a break-bar, and the officers deployed Oleoresin Capsicum (OC) spray within the vehicle. The OC spray deployment was effective, and the occupant exited the vehicle and was taken into custody. The occupant was provided medical treatment on-scene by medical personnel.

PepperBall Launcher and Related Munitions
PepperBall Launcher and Related munitions were utilized operationally zero (0) times in 2025.

Rifles
The Colt Carbine AR-15 Rifle, Colt Carbine M4 Rifle, and Remington 700 Rifle were utilized operationally zero (0) times in 2025, as the Morgan Hill Police Department had zero officer-involved shootings involving rifles.

8 Annual Report on Controlled Equipment Use 2025
Current Inventory of Controlled Equipment
The Morgan Hill Police Department is committed to maintaining transparency regarding its controlled equipment inventory and sharing information about the equipment's capabilities, uses, and related details with our community and elected officials. The data provided in this report is accurate as of February 2025; however, inventory may have fluctuated by the time of this report's publication.

The inventory of controlled equipment - particularly consumable items such as ammunition, diversionary devices, and other munitions - may fluctuate due to factors such as operational use, deterioration, training, maintenance, expiration, and replenishment guidelines.
*NOTE: The descriptions and source photos in this report are for controlled equipment descriptive purposes only and the products and vendors are not endorsed by the City of Morgan Hill or the Morgan Hill Police Department.

The following table lists the various types, descriptions, and guidelines for the usage of controlled equipment currently employed by the Department.

9 Annual Report on Controlled Equipment Use 2025
Controlled Equipment Categories
California Government Code 7070, designates fifteen (15) categories of items deemed "military equipment" or more accurately defined as controlled equipment:
* Category
1:

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

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

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

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

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

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

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

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

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

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

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

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

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

Kinetic energy weapons and munitions
Category
15:

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

10 Annual Report on Controlled Equipment Use 2025
Unmanned Aerial Systems (UAS) (Category 1)
An unmanned aerial system can sustain direct flight, whether remotely controlled or via pre-programming.

All the attached systems are designed to gather information through photography, recording, or other means.

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

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

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

11 Annual Report on Controlled Equipment Use 2025
The Department currently utilizes the following UAS:

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

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

12 Annual Report on Controlled Equipment Use 2025
Armored Vehicle (Categories 2 & 3)
Commercially produced 4-wheel drive vehicle designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

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

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

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T.-certified driving instructors provide training in safe driving practices and proper operation of the vehicle equipment.

Purchasing Note: The Department received the Lenco Bearcat in December 2025.

13 Annual Report on Controlled Equipment Use 2025
The Department currently utilizes the following Armored Vehicle:
2023 LENCO Bearcat, G3
Manufacturer: LENCO
Manufacturer Description: The Lenco BearCat Medevac, also known as the Armored Rescue Vehicle (ARV), was designed to meet the combined requirements of SWAT & Tactical Emergency Medical Service Teams. The Medevac can be used as an armored Response & Rescue SWAT truck for dangerous callouts and is equipped to provide Tactical EMS with a safe & effective environment to deal with trauma cases. It seats 10-12 personnel with an open floor plan that allows for the rescue of down personnel. It can stop various projectiles, which provide greater safety to citizens and officers beyond the protection level of shield and personal body armor.

Cost $405,987
Quantity 1
Lifespan 25 Years
Funding Source City Funding

14 Annual Report on Controlled Equipment Use 2025
NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) (Category 4)
A commercially produced Caterpillar tractor designed for law enforcement that provides protection against bullets, shell fragments, and other projectiles.

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

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

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T.-certified driving instructors provide training in safe driving practices and proper operation of the vehicle equipment.

Purchasing Note: The Department is currently seeking grant funding opportunities for this purchase.

15 Annual Report on Controlled Equipment Use 2025
The Department will be seeking grant funding for the following Armored Vehicle:

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

Cost N/A
Quantity N/A
Lifespan 25 Years
Funding Source Grant Funding

16 Annual Report on Controlled Equipment Use 2025
Mobile Incident Command Vehicle (Category 5)
A completely self-contained command post was designed to provide shelter access to department computers for extended events. This vehicle can also manage/facilitate pre-planned or significant events requiring on-site planning and incident command personnel.

Capability: As a mobile base of operations, this vehicle contains specialized command, control, and communications equipment for use during critical incidents, large-scale events, natural disasters, and community events. The command vehicle is equipped to function as a fully operational mobile Public Safety Answering Point (PSAP). It will serve as a backup to the Police Department's existing Dispatch Center.

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

Training Requirements: All drivers/operators shall attend formal instruction and be trained in vehicle operation and practical driving techniques. P.O.S.T.-certified driving instructors provide training in safe driving practices and proper operation of the vehicle equipment.

17 Annual Report on Controlled Equipment Use 2025
The Department currently operates the following MCV:
2018 Mobile Incident Command Vehicle
Manufacturer: LDV, Inc.

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

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

18 Annual Report on Controlled Equipment Use 2025
Long Range Acoustic Device (LRAD) (Category 13)
Long Range Acoustic Device (LRAD) is a high-intensity directional array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

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

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

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

19 Annual Report on Controlled Equipment Use 2025
The Department currently operates the following LRADs
Long Range Acoustic Device (LRAD)
Manufacturer: LRAD
Manufacturer Description: Featuring an extended voice broadcast range of 600 meters, the LRAD 100X ensures voice messages are heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 100X to provide several hours of clear, continuous communication from a single battery charge.

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

20 Annual Report on Controlled Equipment Use 2025
40mm Less-Lethal Launchers and Munitions (Categories 10, 12, & 14) A single-shot impact launcher can fire an array of less-lethal 40mm rounds.

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

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

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

21 Annual Report on Controlled Equipment Use 2025
The Department utilizes the following 40mm Less-Lethal Launcher and Munitions:

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

The Department currently possesses the following 40mm Munitions:

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

Cost $810 each
Quantity 5
Lifespan 25 Years
Funding Source Department Funds
Cost $32 each
Quantity 44 Rounds
Lifespan 5 Years
Funding Source Department Funds

22 Annual Report on Controlled Equipment Use 2025
Defense Technology 40mm Direct Impact Reloadable Training Kit #6530 Manufacturer: Defense Technology
Manufacturer Description: The 250-piece Direct Impact Reloadable Training Kit allows realistic training to be conducted at a fraction of the cost of using operational rounds. These reusable projectiles can be reloaded by hand in the field in less than ten (10) seconds without the need for presses or other reloading equipment. These rounds are not for use on humans.

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

23 Annual Report on Controlled Equipment Use 2025
Less-Lethal Shotgun and Munitions (Categories 9 & 14)
The less-lethal shotgun is a standard Remington Model 870, 12-gauge shotgun that has been converted to fire bean bag rounds as an alternative to lethal force when appropriate. The less-lethal shotgun has a distinctive, orange-colored stock and foregrip to distinguish it from lethal weapons.

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

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

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

Purchasing Note: The Department has ordered fifteen (15) Remington 870 Less Lethal shotguns and is currently waiting for delivery of the shotguns.

24 Annual Report on Controlled Equipment Use 2025
The Department possesses the following Less Lethal Shotguns and Munitions:

Mossberg 500 Less Lethal 12-Gauge Shotgun
Manufacturer: Mossberg
Manufacturer Description: The Mossberg 500 Less Lethal Shotgun is used to deploy the less lethal 12- gauge Super-Sock Bean Bag Round up to seventy-five (75) feet. The weapon system's range helps maintain space between officers and suspects, reducing the immediacy of the threat, a principle of DeEscalation.

Combined Systems Inc. Super-Sock Bean Bag Round #2581
Manufacturer: Combined Systems Inc.

Manufacturer Description: A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second. CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and foregrip.

This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to seventy-five (75) feet from the target.

Cost $553.00 each
Quantity 13
Lifespan 25 Years
Funding Source General Funds
Cost $32/box
Quantity 85 Rounds
Lifespan No Expiration
Funding Source General Funds

25 Annual Report on Controlled Equipment Use 2025
Diversionary Devices (Category 11)
A handheld device that can be deployed to emit a flash, sound, and/or smoke.

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

Usage: Diversionary devices shall only be used by officers who have been trained in their proper use.

These devices can be deployed in hostage and barricaded subject situations; in high-risk (search/arrest) warrant services, where there may be hazards to officers; during other high-risk situations where their use would be advantageous for preserving life and/or increasing officer safety; and during training exercises.

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

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

Note: Some Diversionary Device orders can only be placed in minimum quantities. As a result, some inventories may occasionally exceed the amount needed.

26 Annual Report on Controlled Equipment Use 2025
The Department currently possesses the following Diversionary Devices:

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

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

Combined Systems Inc. (CTS) Flash Bang, Steel Body-7290M Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Model 7290M Flash-Bang exhibits all the same attributes as its larger counterpart but in a smaller and lighter package. Weighing 15 ounces, the Model 7290M is approximately 30% lighter than the CTS 7290 but still has the same 180db output as the CTS 7290 and produces 6-8 million candela of light. The patent design of the Model 7290M incorporates a porting system that eliminates movement of the body at detonation, even if the top or bottom of the device should be in contact with a hard surface.

In addition, internal adjustments have greatly reduced smoke output.

Cost 71.00 per
Quantity 10 in stock
Lifespan 5 Years
Funding Source Department Funds
Cost $46.00 per
Quantity 13 in stock/
Lifespan 5 Years (MFG 2024)
Funding Source General Fund

27 Annual Report on Controlled Equipment Use 2025
Flash Bangs are used by special tactical units during hostage rescue and high-risk warrants. It is an ATFcontrolled Class C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.

28 Annual Report on Controlled Equipment Use 2025
Rifles and Munitions (Category 9)
The rifle is a long-barreled firearm designed for greater accuracy over a long distance.

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

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

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

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

29 Annual Report on Controlled Equipment Use 2025
The Department currently possesses the following rifles and munitions:

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

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

Cost $1,099 each
Quantity 49
Lifespan Ten years
Funding Source Department Funds
Cost $2,027 each
Quantity 8
Lifespan Ten years
Funding Source Department Funds

30 Annual Report on Controlled Equipment Use 2025
Remington Model 700 P Bolt Action Rifle
Manufacturer: Remington
Manufacturer Description: A semi-automatic shoulder-fired rifle with precision optics that fires a .308 Winchester cartridge. The .308 rifle allows SWAT Snipers to engage violent suspects at great distances.

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

Heckler & Koch MP5
Manufacturer: Heckler & Koch
Manufacturer Description:

The Heckler & Koch MP5 is a renowned 9mm x 19 caliber submachine gun for police and special operations forces, known for its high reliability, accuracy, and ease of handling. The H&K MP5 allows SWAT officers to engage hostile suspects at a close distance during high-risk incidents requiring a SWAT team.

Cost $1099 each
Quantity 1
Lifespan Ten years
Funding Source Department Funds
Cost $500 each
Quantity 4
Lifespan Fifteen years
Funding Source Department Funds

31 Annual Report on Controlled Equipment Use 2025
The Department currently possesses the following rifle munitions:

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

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

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

Cost $295/ Case
Quantity 20,000 Round
Lifespan No Expiration
Funding Source Department Funds
Cost $260 Case
Quantity 16,500 Rounds
Lifespan No Expiration
Funding Source Department Funds

32 Annual Report on Controlled Equipment Use 2025
Speer Gold DOT .223 55 Grain (GR) Rifle Round
Manufacturer: Speer Gold
Manufacturer Description: Remington ammo made by Speer is reloadable, features nickel-plated brass cases and Boxer primers, and is a non-corrosive round. In addition to its remarkable strength, Gold Dot rifle ammunition asserts remarkable accuracy with exact tolerances and unparalleled bullet uniformity of jacket thickness. The Gold Dot LE ammunition joins the jacket and core one molecule at a time; thanks to this, Speer eradicates the potential for the leading cause of bullet failure (jacket/core separation). This process will guarantee extraordinary weight retention through barriers as strong as auto-glass.

Hornady .308 Winchester A-Max Tap Rifle Round
Manufacturer: Hornady
Manufacturer Description: This law enforcement cartridge offers match accuracy with a high ballistic coefficient, providing superior long-range performance. This load demonstrates expansion and fragmentation like the 168-gr. Load, but with a noticeable increase in penetration and retained bullet weight. This bullet penetrates glass with minimal deflection and exhibits excellent expansion and fragmentation characteristics.

Cost $260/ Case
Quantity 28,000 Rounds
Lifespan No Expiration
Funding Source General Fund
Cost $433 Case
Quantity 1200 Rounds
Lifespan No Expiration
Funding Source General Fund

33 Annual Report on Controlled Equipment Use 2025
Chemical Agents and Smoke Canisters (Category 12)
Canisters containing non-lethal chemical agents and/or smoke that are released when deployed.

Capability: Chemical agents and smoke canisters have a variety of individual capabilities and applications. Chemical agents and smoke canisters can be delivered to the environment in a variety of ways, including but not limited to powder, liquid mist, smoke, pyrotechnic devices, and vapor aerosols.

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

Usage: The use of chemical agents causes mucous membranes and exposed skin to become inflamed, resulting in a burning sensation. It provides a temporary respiratory effect and induces skin discomfort.

Chemical agents and smoke canisters may be utilized during confrontations with violent or potentially violent suspects as a less lethal option to assist with dispersing violent crowds and/or for the arrest of suspects. Smoke canisters are used to create a diversion or conceal the movement of a tactical team.

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

34 Annual Report on Controlled Equipment Use 2025
The Department currently has chemical agents:

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

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

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

Cost $45.85 per
Quantity 19 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 33.37 per
Quantity 25 in stock
Lifespan 5 Years
Funding Source General Fund

35 Annual Report on Controlled Equipment Use 2025
40mm Frangible Impact-CS Powder-4530
Manufacturer: Combined Systems Inc.

Manufacturer Description: 40mm multi-effect munition delivering greater energy on the target with extreme accuracy and simultaneously dispersing a cloud of irritant or marking powder.

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

Cost 30.00 per
Quantity 38 in stock
Lifespan 5 Years
Funding Source General Fund
Cost 100.00 per
Quantity 2 in stock
Lifespan
Funding Source General Fund

36 Annual Report on Controlled Equipment Use 2025
Combined Systems Inc. (CTS) CS Baffled Canister Grenade, Pyro, Low Flame Potential- 5230(B) Manufacturer: Combined Systems Inc. (CTS) Manufacturer
Description: Pyrotechnic grenade designed for indoor use, delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

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

Cost $60.56 each
Quantity 44
Lifespan 5 Years
Funding Source General Fund
Cost $8.50 each
Quantity 64
Lifespan 5 Years
Funding Source General Fund

37 Annual Report on Controlled Equipment Use 2025
Combined Systems Inc. (CTS) Oleoresin Capsicum (OC) Vapor Grenade-6340 Manufacturer: Combined Systems Inc. (CTS)
Manufacturer Description: This unique grenade delivers an invisible Oleoresin Capsicum (OC) vapor and renders an intense respiratory effect to a non-compliant subject.

Cost 57.22 per
Quantity 19
Lifespan 5 Years
Funding Source General Fund

38 Annual Report on Controlled Equipment Use 2025
PepperBall Launcher and Projectiles
A device that discharges projectiles containing non-lethal chemical agents, which are released upon impact.

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

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

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

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

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

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

39 Annual Report on Controlled Equipment Use 2025
The Department currently possesses the following PepperBall Launcher:

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

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

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

40 Annual Report on Controlled Equipment Use 2025
Training Summary
The safe use of certain military equipment requires ongoing training to maintain proficiency and required certifications. While the Department conducts training internally through the Personnel and Training Division, external training courses and services are often necessary as well. Training opportunities may vary from year to year based on operational needs and Federal or State mandates. Both consumable and non-consumable equipment are often utilized during training to ensure competency during actual operational use. Funding for training is provided through Police Department's operating budget and/or grant funding.

41 Annual Report on Controlled Equipment Use 2025
Equipment Costs
The following table summarizes equipment-related expenditures for the calendar year 2025 and projects expenses for calendar year 2026. Equipment expenditure includes the acquisition of new equipment, the replacement of damaged equipment, and the ongoing maintenance of the controlled equipment.

Equipment Type Annual Maintenance
(2025)
Projections
(2026)
Unmanned Aircraft System $0 $23,730
Armored Vehicles $405,987 2,000
The ROOK N/A N/A
Mobile Incident Command $10,700 $12,000
Long Range Acoustic
Device (LRAD) $0 $0
40mm Less-Lethal
Launchers $0 $250
Less-Lethal Shotguns $0 $15,911
Diversionary Devices $2,117 $1,500
Rifles $4,806 $2,000
Chemical Agents and
Smoke Canisters $4,543 $1,500
PepperBall Launchers $0 $100
TOTAL $428,153 $58,991

42 Annual Report on Controlled Equipment Use 2025
Fiscal Impact
The Morgan Hill Police Department is budgeted for 77 full-time employees, including 44 Sworn officers and 33 professional staff. During Fiscal Year 2025/2026, the Police Department had an operating budget of $25,794,022.

Although the City of Morgan Hill adopts its operating budget on a two-year fiscal basis (beginning July 1), the cost of controlled equipment expenditures is reflected in this report for the calendar year 2025 as required by Assembly Bill 481.

In 2025, the Morgan Hill Police Department spent approximately $428,153 on controlled equipment.

Some expenditures for military equipment were funded through Federal and/or State grants, reducing the impact of acquiring, utilizing, maintaining, and training with military equipment on the Department's operating budget. Although some of these expenditures were paid for with grant funding, the total expenditure represents only 1.63% of the Police Department's operating budget. It should be noted that the purchase of the BearCat was $405,987, representing 95% of the total amount spent on controlled equipment in 2025.

43 Annual Report on Controlled Equipment Use 2025
Projected Acquisitions for 2026
Although most acquisitions can be anticipated, the unanticipated replacement of existing military equipment may be necessary due to loss or damage. Replacement of these items will be handled on a caseby-case basis, dependent on operational need and in compliance with department policy for acquiring controlled equipment.

Consumable Controlled Equipment
Consumable military equipment acquisitions for calendar year 2026 will remain consistent with current replenishment schedules and policies. Acquisitions will only restore quantities previously approved by the governing body.

Categories of consumable military equipment include:
• Ammunition – All Calibers
• Chemical Agent and Smoke Canisters
• Specialty Munitions (40mm and Less Lethal Munitions)
• Diversionary Devices
Non-Consumable Controlled Equipment
NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK) The Department seeks to purchase an NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK). The ROOK will primarily be used by the Special Weapons and Tactics Team (SWAT) to safely transport personnel to and from critical incidents, extract citizens from volatile situations, conduct high-risk rescue operations and training, provide emergency medical staff and/or Tactical Emergency Medicine (TEM) personnel a safe working environment, and deliver equipment in high-risk environments.

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

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

Lifespan:
25 years
Fiscal Impact: The annual maintenance for a ROOK will be approximately $2,000 a year.

Manufacturer Name and Model Category Quantity Cost
NIJ Level IV Armored Caterpillar MultiTerrain Loader (The ROOK)4 1 $578,515 TOTAL: $578,515

44 Annual Report on Controlled Equipment Use 2025
Training: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving techniques. P.O.S.T.-certified driving instructors provide training in safe driving practices and proper operation of the vehicle equipment.

Remington 870 Less Lethal Shotguns
The Department seeks to purchase (15) fifteen Remington 870 Less Lethal shotguns. This purchase will replace the Department's current less-lethal shotguns, which have reached the end of their service life.

These shotguns are on order with the vendor, the original delivery date was to be determined in 2025, due to back-ordered stock.

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

Lifespan:
15 Years
Fiscal Impact: The annual maintenance for the less lethal shotgun will be approximately $250 a year.

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

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

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

Lifespan:
15 Years
Manufacturer Name and Model Category Quantity Cost
Remington 870 Less Lethal Shotgun 9 & 14 15 $15,911
TOTAL: $15,911
Manufacturer Name and Model Category Quantity Cost
Surefire Suppressor SOCOM556-RC2 9 & 14 8 $ 9,592.00
TOTAL: $9,592.00

45 Annual Report on Controlled Equipment Use 2025
Fiscal Impact: The annual maintenance for the Surefire Suppressor SOCOM556-RC2 will be approximately $50.00 a year.

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

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

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

Lifespan:
10 years
Fiscal Impact: The annual maintenance for a Tomahawk Mini Burn Safe is approximately $100.00 Training: Officers utilizing chemical agent canisters are certified by P.O.S.T. less-lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, as well as the terminology and documentation for the use of this equipment.

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

Manufacturer Name and Model Category Quantity Cost
Tomahawk Mini Burn Safe 12 2 $ 450.00
TOTAL: $450.00

46 Annual Report on Controlled Equipment Use 2025
Funding for acquiring the Tomahawk Mini Burn Safe will be from the general fund. The projected cost for the equipment is listed below:

Lifespan:
10 years
Fiscal Impact: The annual maintenance for a Tomahawk Burn Safe Spear is approximately $100.00 Training: Officers utilizing chemical agent canisters are certified by P.O.S.T. less-lethal chemical agent instructors. Sworn members are trained in the proper use of chemical agent canisters and smoke canisters, as well as the terminology and documentation for the use of this equipment.

Manufacturer Name and Model Category Quantity Cost
Tomahawk Burn Safe Spear 12 2 $ 1,570.00
TOTAL: $,1570.00

47 Annual Report on Controlled Equipment Use 2025
Department Transparency
The application and use of controlled equipment may raise questions or concerns by community members.

The Morgan Hill Police Department is committed to maintaining transparency regarding police activities, department policies, agency practices, and the use of controlled equipment. By being open and accountable we strengthen trust and confidence, foster positive community relationships, and uphold the principles outlined in the Pillars of 21st Century Policing.

Controlled Equipment Coordinator Report
Although the Morgan Hill Police Department is committed to transparency, we may occasionally receive complaints about our policies, practices, and/or the use of controlled equipment. The Department is committed to conducting thorough and impartial investigations into all concerns and complaints.

Addressing concerns fairly, objectively, and promptly helps maintain community trust and ensures the Department continues to provide exceptional service.

Our designated Controlled Equipment Coordinator is responsible for inspecting and auditing military equipment to ensure compliance with Assembly Bill (AB) 481. The coordinator also serves as the primary point of contact for receiving citizen complaints and monitoring policy adherence related to the use of controlled equipment.

Inventory
The Controlled Equipment Coordinator conducted an inventory check and identified controlled equipment not included in the 2025 inventory itemization. The inventory itemization in this report has been corrected to reflect the equipment not previously included.

Complaints
In 2025, the Morgan Hill Police Department did not receive any citizen complaints concerning the use or possession of military equipment.

Policy Violations
The Morgan Hill Police Department did not identify any policy violations related to the deployment or use of controlled equipment for 2025.

48 Annual Report on Controlled Equipment Use 2025
Conclusion
The equipment, resources, and training described in this report enable the Morgan Hill Police Department to protect our community by enhancing both public and officer safety. Controlled equipment supports the safe and effective resolution of critical incidents. Although controlled equipment is used infrequently, it must be readily available in rapidly evolving situations where it can be used effectively in our public safety responses.

When making decisions about funding, acquiring, or deploying controlled equipment, the Department carefully considers public welfare, safety, and civil liberties. This annual military equipment report reaffirms our commitment to transparency, providing the community with information and ensuring compliance with the State law.

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

Additionally, information about the Morgan Hill Police Department is available at https://www.morganhill.ca.gov/129/Police-Department.

49 Annual Report on Controlled Equipment Use 2025
Appendix

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

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

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

City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, May 6, 2026
6:00 p.m.

Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 6:00 p.m.

ROLL CALL ATTENDANCE
Deputy City Clerk Rossi called the roll.

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

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

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Affordable Housing Month

May 6, 2026
2 Foster/Resource Parents Month

RECOGNITIONS
Nyla and Aden Valencia, NCAA Accomplishments
Santa Clara Valley Science & Engineering Fair Winners
Oakwood School, Michelle Helvey
YAC Leaders
YAC Angel Sponsors: MICROTEL by Wyndham Morgan Hill, Johnson Lumber Ace Hardware, The Ford Store Morgan Hill, Oakwood School, and The Edward Boss Prado Foundation
The meeting recessed at 6:25 p.m. and reconvened at 6:30 p.m.

PRESENTATIONS
YAC Presentation - Developmental Asset #18: Youth Programs

CITY COUNCIL REPORTS
Council Member Martinez Beltran shared that she attended the Chamber of Commerce Mixer at the Grange, a Town Hall with Supervisor Arenas and Senator Cortese, the Silicon Valley Clean Energy Executive Board meeting, a Cal Cities Board meeting, the Kiwanis Turn Around Scholarship event, the Morgan Hill Police Department Reentry Resource Fair, the Building Trades Casino Night, a Bluegrass concert at the Grange, the AAUW Red Dress Day Exhibit at the Morgan Hill Library, Living History Day hosted by the Morgan Hill Historical Society, and the Woodland Estates’ 40th Anniversary celebration. She also reported attending Cal Cities City Leaders Summit conference in Sacramento.

CITY MANAGER'S REPORT
City Manager Turner recognized the City's new hires, promotions, and retirees. She also shared several housing initiatives underway to expand access to affordable housing, including a regional manufactured homeownership program in partnership with the City of Gilroy and Santa Clara County to assist low-income households and agricultural workers with purchasing manufactured homes, a senior home repair partnership with Rebuilding Together Silicon Valley, and a bilingual workshop to help residents navigate the City’s Below Market Rate homeownership program. She announced upcoming community events scheduled for May 16, including the Budget Town Hall and Open Streets Morgan Hill, as well as the City Council Budget Workshop on May 20. She also provided a community update on the Hale Avenue closure and the Valley Water Upper Llagas Flood Protection Project.

May 6, 2026
3 CITY ATTORNEY'S REPORT
None.

OTHER REPORTS
Council Member Iwanaga shared that she attended the Cal Cities City Leaders Summit conference in Sacramento, where she participated in classes and connected with officials from cities similar to Morgan Hill to discuss common challenges facing local governments. She also attended the 18th Annual Salt of the Earth Tequila Tasting benefiting the Latino Family Fund, highlighting the event’s support of programs that empower Latino families.

Council Member Vega shared that she attended the Salt of the Earth event, highlighted the inspiring story of a family continuing its agave farming legacy through the next generation, and the Woodland Estates’ 40th Anniversary celebration. She recognized Teacher Appreciation Week and expressed her gratitude to teachers for their lasting impact on students and the community, acknowledging several educators who positively influenced her life.

Mayor Turner shared his appreciation to Caltrans for their work repairing the on and off ramps near Tennant and Dunne Avenue. He reported attending a VTA Finance, Audit, and Administration Committee meeting, the Santa Clara County Library District Board meeting, and VTA and LAFCO workshops. He also attended the San Martin Neighborhood Alliance Town Hall meeting, the Latino Family Fund fundraiser, Living History Days event, Woodland Estates’ 40th anniversary celebration, the Kiwanis Turnaround Scholarship event, and the Parade for Paws at the Wine Walk event.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment For Items Not On The Agenda
Public comment opened at 7:02 p.m. With no requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

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

May 6, 2026
4 Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Mayor Pro Tem Librers

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

MOTION:

Approving consent calendar items 1 through 3, 5 and 7 through 12.

RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Vega
AYES: Mayor Turner, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Mayor Pro Tem Librers
Council Member Iwanaga recused herself from item 12 due to a Council conflict of interest.

1. APPOINT THE CITY ATTORNEY AS REPRESENTATIVE TO PLAN JPA

BOARD OF DIRECTORS
Recommendation:

Adopt a resolution designating the City Attorney position as the City's representative and the Risk Management Analyst position as the alternate to the PLAN JPA Board of Directors.

2. APPROVE FIRST AMENDMENT TO CONSULTANT AGREEMENT FOR

CONSTRUCTION SUPPORT AND NEW CONSULTANT AGREEMENT FOR

DESIGN SERVICES WITH KENNEDY/JENKS CONSULTANTS FOR THE

HOLIDAY LAKE IMPROVEMENTS PROJECT
Recommendation:

1. Approve First Amendment with Kennedy/Jenks Consultants for additional construction support services for the East Dunne Hillside Reservoir Project for an additional $197,757, for a total not to exceed amount of

May 6, 2026
5 $497,757;

2. Approve Consultant Agreement for Design Professionals with Kennedy/Jenks Consultants for the design of the Holiday Lake Booster Station and Piping Project for a not to exceed amount of $1,422,058; and

3. Authorize the City Manager to execute all documents and make minor modifications as necessary in order to consummate the above transactions with Kennedy/Jenks Consultants.

3. APPROVE FY 2026-27 COUNTYWIDE SOLID WASTE SERVICES FOOD RECOVERY PROGRAM AGREEMENT WITH JOINT VENTURE: SILICON

VALLEY NETWORK
Recommendation:

1. Approve the FY 2026-27 Joint Venture: Silicon Valley Network consultant agreement for the Food Recovery Program in the amount of $514,913; and

2. Authorize the City Manager to execute and administer the agreement with Joint Venture: Silicon Valley Network.

5. APPROVE AN AGREEMENT WITH UTILITY SERVICE PARTNERS PRIVATE LABEL, INC., DBA SLWA INSURANCE SERVICES, TO OFFER THE

HOMESERVE SERVICE LINE WARRANTY PROGRAM
Recommendation:

Authorize the City Manager to execute and administer an agreement with Utility Service Partners Private Label, Inc., dba SLWA Insurance Services, to provide the HomeServe Service Line Warranty Program for an initial term of three years.

7. APPROVE UPDATED ADA SELF-EVALUATION AND TRANSITION PLAN Recommendation:

Approve the City of Morgan Hill 2026 ADA Self-Evaluation and Transition Plan.

8. APPROVE THE APRIL 15, 2026 CITY COUNCIL MEETING MINUTES Recommendation:

Approve the April 15, 2026 City Council Meeting Minutes.

9. AUTHORIZE AMENDMENT TO THE CENTENNIAL RECREATION CENTER

OPERATING AGREEMENT WITH THE YMCA OF SILICON VALLEY FOR AN ADDITIONAL 5-YEAR TERM
Recommendation:

Authorize the City Manager to execute an Amended and Restated Centennial Recreation Center Operating Agreement with the YMCA of Silicon Valley to

May 6, 2026
6 extend the partnership through June 30, 2031.

10. AWARD BUTTERFIELD BASIN ONLINE CONVERSION PROJECT TO

GRANITEROCK COMPANY
Recommendation:

1. Approve the Butterfield Basin Online Conversion Project Plans and Specifications;

2. Award the contract to Graniterock Company for the Butterfield Basin Online Conversion Project in the amount of $1,970,825;

3. Authorize expenditure of construction contingency funds not to exceed $788,330; and

4. Authorize the City Manager to execute and administer the construction contract with Graniterock Company.

11. AWARD 2026 SIDEWALK REPAIRS AND REPLACEMENT PROJECT TO QLM, INC.

Recommendation:

1. Award contract to QLM, Inc. in the amount of $281,000 and authorize the expenditure of 10% contingency funds not to exceed $28,100 for a total authorization of $309,100; and

2. Authorize the City Manager to execute and administer that certain construction contract with QLM, Inc.

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

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.

ITEMS PULLED FOR DISCUSSION

4. APPROVE SECOND AMENDMENT TO THE AGREEMENT WITH THE

COUNTY OF SANTA CLARA FOR COUNTYWIDE HOUSEHOLD

May 6, 2026
7 HAZARDOUS WASTE COLLECTION PROGRAM
Recommendation:

Authorize the City Manager to execute the second amendment to the agreement with the County of Santa Clara for the Countywide Household Hazardous Waste Collection Program.

Public Services Director Ghione provided a report.

Public comment opened at 7:09 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

6. APPROVE PEEBLES - PEEBLES SQUARE, LLC CONCESSION FOR THE

APPROVED RESIDENTIAL PROJECT
Recommendation:

Adopt a resolution approving the applicant's request of a concession to the City's Objective Residential Development Design and Development Standards pursuant to California Density Bonus Law (Gov. Code §65915).

Senior Planner Brown provided a presentation and report.

Public comment opened at 7:13 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

May 6, 2026
8 Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Mayor Pro Tem Librers

PUBLIC HEARINGS

13. APPROVE SOLID WASTE MANAGEMENT RATE ADJUSTMENT FOR 2026 Recommendation:

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

Public Services Director Ghione provided a report.

Public comment opened at 7:25 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

OTHER BUSINESS

14. RECEIVE MONTHLY BUDGET UPDATE; MARCH 2026 FINANCIAL AND INVESTMENT REPORTS; AND CITY MANAGER AUTHORITY REPORT
Recommendation:

Receive and file reports.

Finance Director Nguyen provided a presentation and report.

Public comment opened at 7:36 p.m. With no requests to speak, public comment closed.

Report received.

May 6, 2026
9 15. 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:

Receive the Introduction to the Recommended Budget Presentation.

City Manager Turner provided a presentation and report.

The meeting recessed at 7:47 p.m. and reconvened at 8:00 p.m.

Public comment opened at 8:23 p.m. The following people were called to speak:

Doug Muirhead
Joe Baranowski (Zoom)
Armando Benavides (Zoom)
With no further requests to speak, public comment closed.

Report received.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Martinez Beltran requested a discussion on reports from other governmental organizations.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:41 p.m.

Minutes Prepared by:

Vicky Rossi, Deputy City Clerk

City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, May 20, 2026
6:00 p.m.

Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

CALL TO ORDER
Mayor Turner called the City Council meeting to order at 6:00 p.m.

ROLL CALL ATTENDANCE
City Clerk Bigelow called the roll.

PRESENT Mark Turner, Marilyn Librers, Soraida Iwanaga, Yvonne Martinez Beltran, Miriam Vega
ABSENT None
Mayor Pro Tem Librers participated remotely as a reasonable accommodation due to disability under the Americans with Disabilities Act.

Council Member Martinez Beltran arrived at 7:26 p.m.

MOTION:

Approving Mayor Pro Tem Librers' remote participation.

RESULT: Passed
MOVER: Council Member Iwanaga
SECONDER: Council Member Vega

May 20, 2026
2 AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Council Member Martinez Beltran

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

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Public Works Week
Jewish American Heritage Month: Rabbi Faith Joy Dantowitz with Congregation Emeth & Rabbi Mendel Liberow with Chabad South County Jewish Center

CITY COUNCIL REPORTS
Council Member Vega shared that her committees have not met recently and announced that she will be joining the Morgan Hill Unified School District as a culinary teacher, expressing excitement about the new role.

OTHER REPORTS
Mayor Turner reported attending VTA meetings, the National Day of Prayer in San Jose, the Cities Association meeting, the Senior Resource Fair, Open Streets, and a Mobility Partnership meeting. He also visited classrooms at Jackson Academy and attended the Farmers Market, where he highlighted the success of the new market location. In addition, he served as emcee for the Blue and Gold Luncheon in Gilroy, where Detective Kira Patton was recognized and honored for her investigative work.

Council Member Iwanaga reported attending an Empowerment Youth Program meeting and expressed appreciation for the high school students who participated in the 12 week program. She also toured the Teen Center at the Centennial Recreation Center and highlighted the expansion of the Farmers Market.

CITY MANAGER'S REPORT
City Manager Turner shared that in addition to Detective Kira Patton being recognized at the Blue and Gold Luncheon, Assistant Chief Nick Giampaoli was also honored for

May 20, 2026
3 his leadership and dedication to the safety of Morgan Hill and surrounding communities.

She highlighted his strategic oversight in launching the Butterfield Fire Station, strengthening emergency response capabilities in South County, and his management of the transition from the South Santa Clara County Fire District to the Central Fire Protection District while maintaining seamless public safety coverage. She noted that his professionalism and work ethic make him an invaluable asset to the Morgan Hill Fire Department.

CITY ATTORNEY'S REPORT
None.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public comment opened at 6:18 p.m. The following people were called to speak:

Tere Johnson
Cricket Rubino
With no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

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

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

MOTION:

Approving consent calendar items 1 through 5.

RESULT: Passed
MOVER: Council Member Iwanaga

May 20, 2026
4 SECONDER: Council Member Vega
AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: Council Member Martinez Beltran

1. ADOPT A RESOLUTION APPROVING FY 2026-27 LIST OF STREET REHABILITATION PROJECTS FUNDED BY SENATE BILL (SB) 1: THE

ROAD REPAIR AND ACCOUNTABILITY ACT
Recommendation:

Adopt a resolution approving a list of street rehabilitation projects for Fiscal Year 2026-27 funded by SB1, the Road Repair and Accountability Act of 2017.

2. AUTHORIZE THE CITY MANAGER TO SUBMIT A BID FOR THE PURCHASE

OF TWO USED FIRE ENGINES FROM THE CITY OF MOUNTAIN VIEW Recommendation:

1. Authorize the City Manager to submit a bid for the purchase of two used fire engines from the City of Mountain View at a price not to exceed 115% of the independently appraised value of the apparatus plus applicable taxes and fees; and

2. Authorize the City Manager to execute and administer the associated purchase agreement if the City’s bid is accepted.

3. APPROVE SOLID WASTE MANAGEMENT RATE ADJUSTMENT FOR 2026 Recommendation:

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

4. AWARD 2026 PAVEMENT REHABILITATION PROJECT TO O'GRADY PAVING, INC.

Recommendation:

1. Approve 2026 Pavement Rehabilitation plans and specifications;

2. Award contract to O’Grady Paving, Inc. for the 2026 Pavement Rehabilitation Project in the amount of $2,326,481;

3. Authorize the expenditure of construction contingency not to exceed $348,972; and

4. Authorize the City Manager to execute and administer the construction

May 20, 2026
5 contract with O’Grady Paving, Inc.

5. PAVEMENT REHABILITATION PLANNING UPDATE
Recommendation:

Receive update.

OTHER BUSINESS

6. REVIEW THE CITY MANAGER'S RECOMMENDED FY 2026-27 AND FY 2027- 28 BIENNIAL OPERATING AND FY 2026-27 THROUGH FY 2031-32 CAPITAL

IMPROVEMENT PROGRAM BUDGETS
Recommendation:

Review and discuss the Recommended Budgets
The meeting recessed at 6:26 p.m. and reconvened at 6:31 p.m.

City Manager Turner provided a presentation and report. Finance Director Dat Nguyen, Economic Development Director Matt Mahood, and Public Services Director Chris Ghione answered questions.

Public comment opened at 7:56 p.m.

Armando Benavides (Zoom) was called to speak.

With no further requests to speak, public comment closed.

Report received.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Mayor Turner requested a discussion to explore banning Class 2 E-Bikes for kids under the age of 18.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:11 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

6 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE TRANSFER OF PROPERTY TO VALLEY WATER FOR

FLOOD PROTECTION PROJECT

RECOMMENDATION(S)
Authorize the City Manager to execute a grant deed and any other documents necessary to transfer the City owned property (APN 767-05-049) for flood protection purposes.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
Guiding Documents
Storm Drain Master Plan
REPORT NARRATIVE:

The City of Morgan Hill owns approximately 8,973 square feet of property that connects Warren Avenue to West Little Llagas Creek. This property has been developed by Valley Water and includes the inlet structure for the tunnel which is a component of the Upper Llagas Creek Flood Protection Project. Since Valley Water will be operating and maintaining this infrastructure, the City and Valley Water are proposing a transfer of this property to Valley Water. The City will retain an easement to access the section of the creek that is still owned by the City.

COMMUNITY ENGAGEMENT:

None
No community engagement was conducted for this property transfer. Coordinated management of flood control infrastructure between government entities is a necessary function for the City.

ALTERNATIVE ACTIONS:

There is no feasible alternative action. Should the City retain ownership of the property, it would need to take on management and ownership of a flood control infrastructure operated and maintained by Valley Water.

6 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has approved many past actions related to the Upper Llagas Flood Protection Project, including the recent actions below:
• On March 6, 2019, the City Council received an update report on the Project from Valley Water.
• The City Council approved design consultant work with Woodard and Curran, Inc., on June 26, 2019, for $457,271 to design City improvements associated with Valley Water’s Flood Protection Project and an amendment for additional scope on September 23, 2020, for an additional $71,697. • The City Council approved a $748,000 cost-sharing agreement for Phase 1 of the Project on September 23, 2020, and a $3.5 million cost-sharing agreement for Phase 2A of the Project on November 18, 2020.
• On April 6, 2022, the City Council approved design consultant work with Mark Thomas and Company for $246,000 for consultant work associated with City improvements.
• On June 26, 2024, the City Council authorized the City Manager to execute and administer a cost-share agreement with Valley Water for the construction of improvements supporting the Upper Llagas Creek Flood Control Project for up to $4.5 million.

FISCAL AND RESOURCE IMPACT:

There is no significant fiscal impact associated with this transaction. The City will save nominal maintenance costs in maintaining the property.

CEQA (California Environmental Quality Act):

Environmental Impact Report
Valley Water certified an Environmental Impact Report for the Flood Control Project.

RECORD WITHOUT FEE UNDER

CALIFORNIA GOVERNMENT
CODE SECTION 6103
AFTER RECORDING RETURN TO:

REAL ESTATE SERVICES UNIT

SANTA CLARA VALLEY WATER

DISTRICT
5750 ALMADEN EXPRESSWAY
SAN JOSE, CALIFORNIA 95118
SPACE ABOVE THIS LINE FOR RECORDER’S USE
APN: 767-05-001 (portion) Grantee is exempt under section 11922 Revenue and Taxation Code of the state of California.

Declarant or Agent Determining Tax:

Name, Title
DOCUMENT NO.: 5027-164

GRANT DEED
CITY OF MORGAN HILL, a municipal corporation of the County of Santa Clara, State of California, hereinafter “Grantor,” do(es) hereby grant to the SANTA CLARA VALLEY WATER DISTRICT, a Special District, created by the California Legislature, hereinafter “Grantee,” all that real property in the City of Morgan Hill, County of Santa Clara, State of California, described in the attached Exhibit A.

Reserving therefrom an easement for the purpose of ingress and egress on, upon, over, and across the real property described in Exhibit A. Said easement area shall be kept clear of any type of building, fences, structure, pavement, or trees, other than those presently existing, unless prior written approval is obtained from Grantor.

Dated this day of , 2026.

City of Morgan Hill, a municipal corporation
of the County of Santa Clara, State of California
By:

Name: Christina Turner
Title: City Manager

DOCUMENT NO.: 5027-164

ALL-PURPOSE ACKNOWLEDGMENT
CIVIL CODE §1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF SANTA CLARA
On this ____ day of_______________, in the year 20__, before me______________________, Notary Public, personally appeared ________________________________________________ Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.
_________________________________
Notary Public in and for said County and State

CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the document.

Individual Trustee (s)
Corporate Officer(s): Guardian/Conservator
Partner(s) Limited General Other:

Attorney-In-Fact
Signer is Representing (Name of Person(s) or Entity (ies) ___________________________________ __________________________________ SS

DOCUMENT NO.: 502-164

CERTIFICATE OF CONSENT AND ACCEPTANCE
This is to certify that the interest in real property conveyed by the attached Deed or Grant to the Santa Clara Valley Water District, also referred to herein as the Grantee, is hereby accepted by the undersigned duly authorized agent on behalf of the Board of Directors of said Santa Clara Valley Water District, pursuant to authority conferred by Resolution No. 14-79 of said Board of Directors adopted on the 9th day of September 2014, and the Grantee consents to recordation thereof by its said duly authorized agent.

Dated: _______________, 20__ Santa Clara Valley Water District By: ________________________________
Chief Executive Officer/Clerk of the Board of Directors (Strike out inapplicable one)

Santa Clara Valley Water District
San Jose, CA 95118
PROJECT: UPPER LLAGAS CREEK RESU FILE NO.: 5027-164
BY: B. Quilatan
All of that certain parcel of land situate in the unincorporated area of Santa Clara County, State of California, more particularly described as follows:

Being a portion of the lands as described in that certain FINAL ORDER OF CONDEMNATION recorded as Document Number 25650463, filed on June 12, 2024, also being a portion of Lot 91, as shown on that certain Map entitled "Morgan Hill Ranch Map No. 3", filed on September 21, 1892 in Book "G" of Maps at Pages 20 and 21, both recorded in the Office of the Recorder, County of Santa Clara, State of California, more particularly described as follows:

BEGINNING at the most northerly comer of Parcel 1, as described in the Grant Deed from Coast Counties Gas and Electric Company to City of Morgan Hill, a municipal corporation, recorded on November 10, 1952 in Book 2522 of Official Records at Page 564, in the Office of the Recorder, County of Santa Clara, State of California; Thence along the northwesterly line of said Parcel 1, South 55° 51' 26" West, 28.03 feet to the most westerly comer of said Parcel 1;
Thence leaving said northwesterly line of said Parcel 1, North 34° 07' 45" West, 140.01 feet to the most northerly comer of the lands as described in that certain Deed recorded as Document Number 25586705, filed on January 16, 2024 in the Office of the Recorder, County of Santa Clara, State of California;
Thence along the northwesterly line of said lands as described in said deed, North·55° 51' 52" West, 47.89 feet to the most northwesterly comer of said lands; Thence leaving said northwesterly line, the following two (2) courses:
1) North 00° 30' 48" East, 6.45 feet to the beginning of a curve, concave northwesterly, and having a radius of 547.50 feet;
2) Northerly along said curve thru a central angle of 17° 18' 16", an arc distance of 165.36 feet to a point on the northeasterly line of aforesaid Lot 91 as shown on that certain Map entitled "Morgan Hill Ranch Map No. 3", filed on September 21, 1892 in Book "G" of Maps at Pages 20 and 21, both recorded in the Office of the Recorder, County of Santa Clara, State of California;

EXHIBIT A

7 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE UPDATED REIMBURSEMENT AGREEMENT WITH THE

LUMBERYARD DEVELOPER FOR COMPLETION OF TENANT

IMPROVEMENTS AT THE FUTURE CITY-OWNED NON-PROFIT

CENTER BUILDING

RECOMMENDATION(S)
Authorize the City Manager to execute and administer an updated reimbursement agreement with the MH Lumberyard 49, LLC. for the design and construction of tenant improvements at the future City-owned office space at 17020 Depot Street.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Promoting a Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

On April 15, the City Council approved a reimbursement agreement with the developer of the Lumberyard residential development to complete tenant improvements for the space being transferred to the City of Morgan Hill. That full report is available here:
https://morganhillca.portal.civicclerk.com/event/1348/files/report/1889 Following previous Council approval, the City, the developer, and the future tenant (the Santa Clara Valley Habitat Agency) met again and determined that minor revisions to the reimbursement agreement are required to satisfy all parties. These minor revisions include an updated layout for improvements, clearly outlining overhead cost reporting, and costs for delays in completing the project. These updates have been incorporated into the revised agreement, which is included as Attachment 1.

COMMUNITY ENGAGEMENT:

Inform
Significant public notice, engagement and Council discussion occurred during the

7 development process for the Lumberyard. This included specific meetings with the City Council on development of the City owned office space. No additional engagement has occurred specific to this item specially relating to the reimbursement agreement for tenant improvements.

ALTERNATIVE ACTIONS:

The City Council could choose to not approve the reimbursement agreement and provide City staff with atlerntaive direction.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
• April 14, 2026 - The City Council approved the reimbursement agreement that is proposed to be updated with this item.
• September 1, 2021 — The City Council approved an amendment to the Disposition and Development Agreement for the Lumberyard Project. • October 2, 2019 – City Council reviewed and approved the Design Review Permit for the project.
• September 10, 2019 – Planning Commission approved the Tentative Map for the project and recommended approval of the Design Review Permit to City Council. • October 3, 2018 – City Council approved a Disposition Development Agreement memorializing the realignment of Depot Street, the parking lot enhancements for the CCC, the development of office space within the mixed-use project site, and the vacation of Depot Street.
• September 5, 2018 – The City Council provided direction on purchasing the 3,000 sq ft office building for non-profits and received direction on future use of the Friendly Inn facility.
• August 21, 2018 – Presentation to the Parks and Recreation Commission for the opportunity to purchase the 3,000 square foot office space within the proposed development. The Parks and Recreation Commission recommended approval to the City Council.

FISCAL AND RESOURCE IMPACT:

Funding for these improvements and agreement has been approved and is available within the Capital Improvement Plan Project PR 1014, from the Community Recreation Center Impact Fund (360). The use of the space as a non-profit center will support additional cost recovery for the Parks and Recreation Division through collection of lease revenue while reducing costs for ongoing maintenance of the modular buildings at the Civic Center.

CEQA (California Environmental Quality Act):

Project
The construction of the office space where the tenant improvements will occur was included in the environmental review for the Lumberyard Development Project. The project has been constructed under the Final Master Environmental Impact Report

7 (FMEIR) for the Morgan Hill Downtown Specific Plan certified in November 2009, the 2016 Environmental Impact Report (EIR) for the Morgan Hill 2035 General Plan Update, and through Project Addendum that concluded it would not result in a substantial increase in the magnitude of any significant environmental impacts previously identified.

R E I M B U R S E M E N T A G R E E M E N T

THE LUMBERYARD
MH LUMBERYARD 49, LLC.

THIS AGREEMENT is made this day of , 2026, by the
CITY OF MORGAN HILL, a municipal corporation ("CITY"), and MH LUMBERYARD 49, LLC., a California Limited Liability Corporation ("DEVELOPER").

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

1. This Agreement is entered into pursuant to City Council approval on April 15, 2026.

2. The DEVELOPER is currently constructing a three thousand (3,000) square foot office space to be transferred to the City for use as a non-profit center for the Lumberyard Project (“Project”).

3. CITY and Latala Group, LLC entered into an Disposition and Development Agreement (“DDA”) on November 20, 2018, that was recorded with the Santa Clara County Recorder’s Office on November 29, 2018, document number 24072193.

4. CITY and Latala Group, LLC then entered into an Amendment to the Disposition and Development Agreement (“First Amendment”) on March 12, 2019, that was recorded with the Santa Clara County Recorder’s Office on June 6, 2019, document Number 24197079.

5. CITY and Latala Group, LLC, entered then into a Development Agreement (“DA”) on April 25, 2019, that was recorded on May 21, 2019, with the Santa Clara County Recorder as document number 24184437.

6. CITY and Latala Group, LLC, then entered into a Second Amendment to the Disposition and Development Agreement on September 1, 2021 (“Second Amendment”), that was approved by the Morgan Hill City Council on September 1, 2021 in Resolution No. 21-041.

7. On December 21, 2021, Latala Group LLC transferred the property to MH Lumberyard 49, LLC, a California limited liability company. The Deed of Trust was recorded with the Santa Clara County Recorder on December 21, 2021, as document number 25200594.

8. This construction is occurring under Development Agreement, Disposition and Development Agreement, First Amendment to Disposition and Development Agreement, and Second Amendment to Disposition and Development Agreement.

9. The current Development and Disposition and Development Agreements require the

DEVELOPER to turn over the new space in the form of a “warm shell”, which is lacking any interior finishes and not prepared for occupancy.

10. CITY desires the DEVELOPER to construct additional improvements within the facility to improve it to a level ready for use by future tenants.

11. DEVELOPER agrees, at its own cost and expense, to install these improvements ("IMPROVEMENTS").

12. DEVELOPER requests that CITY reimburse it for the cost to be incurred for the IMPROVEMENTS.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term of Agreement. This Agreement covers services to be rendered from the execution of this Agreement until such time as the amount or portion for reimbursement has been paid to DEVELOPER or its designee. This Agreement shall terminate upon full reimbursement.

2. Scope of Project. The project scope consists of the design and construction of the following improvements to prepare the future City office space for occupancy.

3. IMPROVEMENTS TO BE PROVIDED. IMPROVEMENTS to be performed by DEVELOPER consist of the following:
• PLANS: Architectural, Mechanical, Electrical, and Title 24 plans for the Tenant Improvement scope in substantial alignment with the City of Morgan Hill CONCEPT MARKUP (Exhibit A) of the Bassenian Lagoni floorplan and Harris & Sloan 3/12/26 mechanical plan markup, noting the Plans will be adjusted as necessary from the CONCEPT MARKUP to ensure constructability. CITY shall not make any changes to the scope specified in this Agreement that would cause an increase the overall cost of labor, materials and work specified in this Agreement.
• Wall Partitions / Drywall: 3 5/8” metal studs with drywall finished for painting. • Heating, Venting and Air Conditioning: Use existing equipment installed for the commercial warm shell per the approved Building 7 plans, with revised distribution as necessary to complete the PLANS.
• Electrical: two plugs and one data line per office, four plugs at conference room, two drops from the ceiling for cubicles, two four-foot strip lights at each office, one lot lighting at cubicle area, one 100 amp subpanel, OCC sensors per Title 24, Lighting and Title 24 controls, twelve circuits, and A/C circuit.
• Fire Sprinklers: design/build overhead fire sprinkler system to complete the PLANS. • Ceiling: Revised CertainTeed suspended ceiling system and Baroque 5/8" 2'x4' acoustical tile

or approved equivalent to match City of Morgan Hill 2/17/26 markup of the PLANS. • Finish Carpentry and Hardware: Therma Tru S81000 flush doors, Exterior MDF Jamb, Black Timely Frame, and Copper Creek Heavy duty grade 2 Erin levers (Passage & Classroom features) or approved equivalents, wall stops, deadbolt on open area door • Paint: priming and painting of interior tenant improvement drywalled surfaces, interior office / conference room doors, and office / conference room / cubicle area trim. • Flooring: MOK Fractional Ground 12x36 color 829 Focus or approved equivalent • Labor, supervision, overhead, materials, equipment, and insurance coverage to complete the work specified in the inclusions herein.
• Improvements provided by the developer shall specifically exclude:
o All permit / plan check / jurisdictional review / inspection costs o Costs for delays or interruptions due to strikes, accidents, jurisdictional review / approvals / permitting, or other events beyond the control of DEVELOPER, its owners, partnerships, joint ventures, managers, members, shareholders, agents, employees, assigns, successors, affiliates, and subsidiaries. The schedule of the work is as follows:

Plans Complete for Submittal to City: June 30,2026
City Plan Check to Plan Approval: July 7, 2026
Tenant Improvements Work Complete: August 31, 2026
o Any and all items not specified herein as an inclusion DEVELOPER has not commenced the construction of the IMPROVEMENTS.

4. Compensation. DEVELOPER will expend the following approximate amount in construction of IMPROVEMENTS:

4.1 Amount. Four Hundred Thousand One Hundred Forty-Seven dollars ($400,147.00).

4.2 Portion to be Reimbursed. Four Hundred Thousand One Hundred Forty-Seven dollars ($400,147.00).

4.3 Payment. CITY shall make payment for fifty percent (50%) of the Amount within thirty (30) days of execution of the Agreement. CITY shall make payment for the next forty percent (40%) of the Amount within sixty (60) days of execution of the Agreement if substantial completion of the improvements has occurred. CITY shall make payment for the final ten percent (10%) of the Amount upon completion of the work.

4.4 Records of Expenses. DEVELOPER shall keep records in which complete and correct entries are made of all construction costs related to IMPROVEMENTS. These records shall be made available to CITY upon request.

4.5 Termination. CITY and DEVELOPER shall have the right to terminate this Agreement, without cause, by giving not less than thirty (30) days written notice of termination as provided in Paragraph 11 below. CITY shall reimburse DEVELOPER for all costs incurred by DEVELOPER through termination for DEVELOPER’s performance of the terms of this Agreement.

5. Assignment of Payments.

5.1 Payment Stream. DEVELOPER may assign the payments upon written instruction to CITY as provided in Paragraph 12 below. CITY shall have no liability whatsoever for failure to follow these instructions or for any claim by any entity for the funds or for their assignment.

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

7. Non-Discrimination. DEVELOPER covenants there shall be no discrimination based upon race, color, creed, religion, gender, marital status, age, disability, sexual orientation, national origin, or ancestry, in any activity pursuant to this Agreement.

8. Independent Contractor. It is agreed to that DEVELOPER shall act and be an independent contractor and not an agent or employee of CITY.

9. Compliance with Law. DEVELOPER shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.

10. Conflict of Interest and Reporting. DEVELOPER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

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

MH Lumberyard 49, LLC
c/o Tim Fisher
391 N. Main Street Suite 301
Corona, CA 92878
b. Address of CITY is as follows: With a copy to:

Public Services Director City Clerk
City of Morgan Hill City of Morgan Hill
17575 Peak Avenue 17575 Peak Avenue
Morgan Hill, CA 95037 Morgan Hill, CA 95037

12. Licenses, Permits and Fees. DEVELOPER shall obtain a City of Morgan Hill Business License, all permits, and licenses as may be required by this Agreement. The CITY shall be responsible for all permit, plan check, jurisdictional review, and inspection costs to complete the IMPROVEMENTS.

13. Time of Essence. Time is of the essence in the performance of this Agreement. Any action or inaction by the CITY to cause the date of the completion of the work to occur after August 31, 2026 shall incur an additional cost of $438.40 per day payable by the CITY to DEVELOPER.

14. Limitations Upon Subcontracting and Assignment. Neither this Agreement nor any portion shall be assigned by DEVELOPER without prior written consent of CITY.

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

16. Indemnification. DEVELOPER shall indemnify the CITY as outlined in the Development Agreement, Disposition and Development Agreement, and Amendments referenced hereto between CITY and DEVELOPER. Moreover, the DEVELOPER agrees to protect, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by DEVELOPER, DEVELOPER'S agents, officers, employees, subcontractors, or independent contractors hired by DEVELOPER.

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

17. Modification. This Agreement constitutes the entire agreement between the parties and supersedes any previous agreements, oral or written. This Agreement may be modified or provisions waived only by subsequent mutual written agreement executed by CITY and DEVELOPER.

18. California Law. This Agreement shall be construed in accordance with the laws of the State of California. Any action commenced about this Agreement shall be filed in the central branch of the Santa Clara County Superior Court.

19. Interpretation. This Agreement shall be interpreted as though prepared by both parties.

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

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

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

CITY OF MORGAN HILL "DEVELOPER"
MH LUMBERYARD 49, LLC
By: ____________________________ By: _________________________________ Christina J. Turner, City Manager
Date: ____________ Date: ____________
ATTEST: APPROVED AS TO FORM:
________________________________ _____________________________________ Michelle Bigelow, City Clerk Donald A Larkin, City Attorney Date: ____________ Date: ____________

FILE NAME: 0024 A7.00 BLDG 7_SLAB PLOT DATE: 4-21-23 REVISIONS JOB NUMBER: 521-20024 COPYRIGHT BASSENIAN LAGONI ARCHITECTS C 2020 Date: 3RD SUBMITTAL 04-20-23 C23971 Exp. 01/31/25 ARCHITECT LICENSED TS AT E OF A RN O I IF CAL KENNETH CHESTER NIEMERSKI DRAWINGS ISSUED FOR BID PRIOR TO AGENCY APPROVAL MAY INCLUDE REVISIONS DUE TO ENGINEERING AND ARCHITECTURAL BACK CHECK AND / OR AGENCY REVIEW AND APPROVAL 2900 ADAMS STREET RIVERSIDE, CA 92504 PH:(951) 354-2121 FAX:(951) 354-2996 SUITE C-25 The Lumberyard 17020 Depot Street Morgan Hill, CA #MST-2022-0014 GENERAL SLAB INTERFACE NOTES SLAB INTERFACE LEGEND SLAB INTERFACE NOTES GENERAL INFORMATION AT GARAGE DOOR A CONCRETE STEP: UNIT TO GARAGE B CLEAR SPACE AT UTILITY CLOSET C BUILDING TYPE '7' ( 9 PLEX ) SLAB INTERFACE PLAN A7.0 SLAB INTERFACE PLAN Exhibit A

8 CITY COUNCIL STAFF REPORT
MEETING DATE: June 3, 2026
PREPARED BY:

Mario Ramirez, Police Captain
APPROVED BY: City Manager

AWARD TOW AGREEMENT WITH DICK'S COMMUNITY TOWING AND

TRANSPORT FOR POLICE-GENERATED TOW SERVICES

RECOMMENDATION(S)

1. Award Tow Agreement with Dick's Community Towing and Transport for PoliceGenerated Tow Services; and

2. Authorize the City Manager to execute the Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Strategic Priorities 2026-2027
Public Safety
Guiding Documents
Public Safety Master Plan
REPORT NARRATIVE:

The City contracts police tow services for all police-generated tows. The current contract expires on June 30, 2026. The purpose of this report is to summarize the results of the recent Request for Proposal (RFP) process and request the City Council’s approval and authorization to enter into a new agreement for police generated towing and vehicle storage services. The proposed term of the new service agreement is five (5) years, starting on July 1, 2026 and ending on June 30, 2031, with an option to extend for two (2) additional years.

In 2009, the City Council approved the implementation of the Franchise Tow Program (Program) designed to recover costs associated with the police-generated tow for the removal and impound of vehicles. The City executed Franchise Tow Agreements authorizing the towing, impounding, and release of vehicles as authorized by 22850.5 of the California Vehicle Code.

The Police Department issued a Request for Proposal in February 2026 for policePage 150 of 664 8 generated tows. The RFP was posted on the City of Morgan Hill's website. Dick’s Community Towing and Transport was the only tow company to submit a proposal and attend the mandatory pre-proposal conference. Based on the qualifications outlined in their proposal, Dick's Community Towing and Transport meet the criteria set forth in the RFP. Dick’s Community Towing and Transport is currently the only franchise tow service provider and has an Agreement with the City, with a term ending on June 30, 2026.

City staff evaluated current police-generated tow fee rates and the tow franchise fee to ensure 100% cost recovery. City staff is recommending an increase in police-generated tow fee rates and the tow franchise fee. Police-generated tow charges shall increase from $342.00 per hour to $345.00 per hour for an automobile, motorhome, or camping trailer. In addition, City staff is recommending an increase in impound storage fees from $132.00 to $135.00 per automobile and $200.00 per motorhome or camping trailer. In addition to the impound storage fees, after-hour storage gate fees will be $172.50. Any changes to the listed rates will follow the approved rate changes set forth by the California Highway Patrol (CHP) and submission of an approved CHP 234A form in that calendar year.

The tow franchise fee will be $165.00 per vehicle under this agreement. The City reserves the right to increase this fee during the extended term of this Agreement.

The primary changes to the proposed Agreement allow the tow company to increase its towing rates as set forth by the California Highway Patrol (CHP) and upon submission of an approved CHP 234A form within that calendar year.

City staff recommend entering into a new Agreement for five (5) years with Dick’s Community Towing and Transport. At the conclusion of the five (5) year term, the program will be reevaluated to ensure all City Council-directed program goals and objectives are being met. The new Agreement establishes rates for the tow company, requires background checks for tow company drivers, and maintains a fee structure that provides 100% cost recovery for the City to administer the program.

COMMUNITY ENGAGEMENT:

This report serves to inform the community of the proposed Tow Agreement between the City of Morgan Hill and Dick's Community Towing and Transport.

ALTERNATIVE ACTIONS:

Should the Council not approve this Agreement, the City would not maximize cost recovery for this program. The absence of this Agreement precludes the tow company from having to pay the franchise tow fee. Additionally, having this Agreement in place guarantees a tow response within thirty (30) minutes, which is necessary to clear traffic collisions, continue the flow of traffic, and maintain safety of the roadway.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

In 2009, the Council approved the implementation of the Franchise Tow Program to

8 recover the costs associated with police-generated tows. Agreements called for tow companies to pay the City 20% of the revenue received from the police- related tow.

In 2011, because the management of the tow program was overly labor-intensive, the program was modified to a flat fee, instead of the 20% share, per police-generated tow.

In 2020, the Council approved a five-year (5) agreement with Dick’s Community Towing and Transport for police-generated tow services.

FISCAL AND RESOURCE IMPACT:

This Agreement will help ensure 100% cost recovery for police-generated tows. The program has generated, on average, $70,000 a year in revenues for the last two fiscal years. The revenues are deposited into the General Fund (010), where the associated program administration expenditures are included.

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.

1 CITY OF MORGAN HILL

NON-EXCLUSIVE FRANCHISE AGREEMENT FOR POLICE TOWING SERVICES WITH DICK’S COMMUNITY TOWING & TRANSPORT
This Franchise and Service Agreement (“Agreement”) is effective as of July______, 2026 (“Effective Date”) between the City of Morgan Hill ("CITY"), and Dick’s Community Towing & Transport ("OPERATOR").

R E C I T A L S

1. CITY requires services for the towing, storage and release of vehicles impounded pursuant to the California Vehicle Code (“Program”) in the exercise of its police powers as necessary or appropriate for the general welfare of its citizens.

2. Chapter 5.52 (Tow Car Services) of the Morgan Hill Municipal Code (“Ordinance”) provides for the operation of a rotational tow program for Police-Generated Tows under the Program with tow car services that enter into franchise agreements with the CITY.

3. OPERATOR is a tow car service and desires to offer vehicle storage services, including storage facilities and vehicle release or lien sale services under the Program.

4. Under California Vehicle Code Section 22850.5, the City may recover administration and other costs in the staffing, administration, and operation of the Program.

5. The Ordinances authorizes franchise agreements for Police-Generated Tows, as defined in Section 3 of this Agreement, pursuant to the authority of California Vehicle Code 12110.

6. On ______________________, the City Council of the CITY directed the City Manager to execute an agreement.

7. This service will be provided on a rotating basis with other similarly qualified OPERATORS who have been granted franchises by CITY.

8. In consideration of OPERATOR'S promise to be available to provide the services as set forth herein, and abide by the terms of this Agreement; the CITY agrees to allow OPERATOR to provide vehicle storage services under the Program and grants OPERATOR a franchise to perform Police-Generated Tows within the City of Morgan Hill.

9. The parties have negotiated the terms pursuant to which OPERATOR will provide such services and have herein reduced such terms to writing.

2 TOW SERVICE AGREEMENT
NOW, THEREFORE, CITY and OPERATOR, in consideration of the mutual promises set forth herein, hereby agree as follows:

1. Effectiveness of Agreement. This Agreement shall commence on the Effective Date and shall terminate on June 30, 2031, unless terminated sooner or extended by CITY in accordance with the terms of this Agreement. The City, at its option, may renew this contract for up to one, two-year extension period, beginning on July 1, 2031 provided that performance is deemed acceptable, that the extension is agreeable to the tow service operator, and that a written amendment extending the agreement is executed prior to the termination of the agreement.

2. Exclusivity of Agreement. CITY agrees to limit tow car services for the Program and franchises to perform Police-Generated Tows to the named OPERATORS below:
• Dick’s Community Towing & Transport
CITY’S agreement in this paragraph is conditioned upon compliance of OPERATORS with the terms of this Agreement and is subject to the limitation of Section 22.1.

3. Scope of Service. The services to be performed by OPERATOR shall be:

3.1 Police-Generated Tows. OPERATOR shall be responsible for responding to any tow requested by the City of Morgan Hill Police Department in the course of official police activities for which a California Highway Patrol Form 180 is issued. Such requests include, but are not limited to, the tow of a vehicle that is subject to impound under the Program, driven by a driver who is arrested, detained, incapacitated or physically unable to drive the vehicle, involved in a traffic collision or accident, or abandoned and subject to towing under the Vehicle Code or Morgan Hill Municipal Code (“Police-Generated Tows”).

3.1.1: The request for a AAA tow does not constitute as a Police Generated Tow and does not count toward the Rotation Tow Program. If a AAA tow is requested, CITY, through its Police Department designee, will obtain the AAA Roadside Assistance Card number, prior to requesting any AAA Tow.

3.2 Vehicle Storage Services. OPERATOR shall be responsible for the provision of vehicle storage services; including storage facilities, releasing vehicles and personal property from stored vehicles, and conducting lien sale services under the Program.

3.3 Limitations. Except for owners of vehicles subject to a Mandatory Tow, owners of vehicles subject to a Police-Generated Tow may choose to use and negotiate the services of a tow operator or storage provider other than the operators listed in Section 2 of this Agreement. “Mandatory Tow” shall mean a tow of a vehicle that is subject to impound or storage under the Program, driven by a driver who is arrested, or detained, or abandoned and subject to towing under any applicable law.

3 4. Rotation Tow Program: Conditions and Regulations. The CITY shall maintain a list of all OPERATORS in the Rotation Tow Program as defined in Morgan Hill Municipal Code Section 5.52.010(B) (“List”). The List will govern which OPERATOR will respond to dispatches for police-generated tows, and the order of dispatch.

4.1. Hours of Operation. OPERATOR agrees to provide tow service on a twenty-four (24) hour basis, seven (7) days per week, including holidays, without extra charge.

4.2. Requirements. OPERATOR is responsible for providing prompt service, removal of any vehicle regardless of age or condition, and clearing an accident scene as further described in Section 6.10.

4.3. City Sole Dispatcher. Only the CITY shall dispatch an OPERATOR to provide services covered by this Agreement.

4.4. Notice of Unavailability. OPERATOR shall inform the Morgan Hill Police Department Communications Center (“Communication Center”) of any temporary unavailability due to staffing or equipment limitations. OPERATOR will be skipped in the call rotation until OPERATOR informs the Communications Center of their renewed availability.

4.5. Refusal or Failure to Respond. OPERATOR shall accept any and all requests for service unless OPERATOR has informed the Communications Center of its unavailability. An OPERATOR who refuses/fails to respond (including circumstances described in Section 6.2) shall be suspended from the List for twenty-four (24) hours.

An OPERATOR that repeatedly (more than 3 times) fails to respond in any thirty (30) day period shall be suspended for one (1) month from the List and subject to possible termination of this Agreement at the discretion of the CITY.

4.6. List Rotation. A call to an OPERATOR shall constitute one turn on the List and the OPERATOR shall then be moved to the bottom of the list. Telephone answering services of OPERATOR are deemed agents of OPERATOR and are required to comply with all provisions of this Agreement.

The CITY shall call the next OPERATOR on the List when an OPERATOR:
• fails to answer the phone
• is unable to provide a service
• is unable to respond
• is canceled due to excessive response time or refuses to provide service or respond.

4.7. Storage Space. An OPERATOR unable to provide storage space in response to a call will be suspended from the List for twenty-four (24) hours or until storage space is made available, whichever is greater.

4 4.8. Cancelled Calls. When the CITY determines that the OPERATOR dispatched is not needed or the call is canceled by the CITY or the vehicle’s registered owner or agent prior to the OPERATOR taking possession of the vehicle, there shall be no charge and the OPERATOR shall be placed back at the top of the List.

4.8.1. Pursuant to California Civil Code Section 3068.1(a), possession is deemed to arise when the vehicle is removed and is in transit or vehicle recovery operations or load salvage operations have begun.

4.9. Cancelled Rate. If OPERATOR has taken possession of the vehicle and service is canceled by the vehicle's owner or agent, charges shall not exceed one half of the regular towing charge for the actual time expended on the call.

4.10. Multiple OPERATORS. If two or more OPERATORS are required at the same incident, CITY, through its Police Department designee, shall have the discretion to assign OPERATORS to the vehicles to be towed.

4.11. Police Direction. CITY, through its Police Department designee, may direct an OPERATOR to move vehicles to help clear a roadway or for lifesaving operations.

OPERATORS shall provide the requested assistance at no charge.

4.12. Specific Request. Nothing in this Agreement shall prohibit CITY, through its Police Department designee, from requesting the next OPERATOR on the List when the necessary resources to clear a hazard are not available from the OPERATOR currently at the top of the List. If no OPERATORS on the List have the resources to respond to an incident, CITY may dispatch a tow company outside of the List rotation to respond to that incident.

4.13. Collection of Payment. The OPERATOR shall be responsible for the collection of payment of any charge for services rendered. Requests for payments shall be made to the owner of the vehicle or other lawful claimant, and no cost or expense or any part thereof shall be charged against the CITY.

5. Tow Drivers: Rules and Regulations. All tow truck drivers employed by OPERATOR (“Driver(s)”) shall attend and successfully pass, a certified tow truck driver training course meeting the requirements of the California Highway Patrol. The CITY may waive this requirement for a period of up to six months in instances where a company has no Drivers who have completed a certified tow truck driver-training course and the lack of training is due to a loss of trained employees. OPERATOR shall ensure that Drivers responding to calls have completed a certified tow truck drivers training course and are qualified and competent employees of OPERATOR. Drivers shall be at least 21 years old and possess the following minimum Class Driver's License:
• Class A Tow Truck - Valid Class C (3) license or A (1) license with valid medical certificate.

5 • Class B/C/D Tow Truck - Valid Class A (1) license with valid medical certificate, endorsed to allow operation of special vehicle configurations and/or special cargoes.

5.1. List of Drivers. The OPERATOR shall maintain a current list of Drivers and provide the list to the CITY.

5.1.1 OPERATOR shall notify the CITY within seven (7) days of any hiring of new Drivers or termination of current Drivers.

5.1.2 The OPERATOR shall provide a copy of the certified tow truck drivers training certificate to the CITY within thirty (30) days of any hiring of new Drivers or termination of current Drivers.

5.2. Required Driver Information. The OPERATOR, shall as a minimum, maintain the following information for each Driver: Full Name, Date of Birth, California Driver License Number, Copy of valid medical certificate, Job Title/Description, Current Home Address, Current Home Phone Number, Types of trucks the Driver is trained and instructed to operate, and a copy of the tow truck driver training course certificate.

5.3. EPN Program. All Drivers shall be enrolled in the Employer Pull Notice Program (EPN) with the Department of Motor Vehicles. The OPERATOR shall provide a copy of the current EPN Program report, or in the case of a newly hired Driver, proof of enrollment in the EPN Program.
• Upon the addition of new Drivers, OPERATOR will be granted a maximum of 30 days to enroll Drivers in the Pull Notice Program.
• Pull Notices shall be kept on file, signed, and dated by OPERATOR.

5.4. Background Checks. All Drivers will be fingerprinted as part of the background check process. Drivers will not be eligible to drive for the CITY until the fingerprinting has been completed and proof has been provided to the CITY. Drivers may operate in a “trainee” status with a certified driver pending the return of the results of the fingerprint check. Drivers found to have convictions for any of the violations specified in Vehicle Code Section 13377(a) shall not be permitted to drive a tow truck for an OPERATOR while providing services pursuant to this Agreement.

5.5. Uniforms. Drivers of OPERATOR shall wear an identifiable uniform displaying both the OPERATOR and Driver’s name. All Drivers shall wear the federally mandated traffic safety vests or reflectorized uniform shirts.

5.6. Identification Badges. Drivers shall carry an identification badge at all times which displays a photograph of the Driver and signature. The identification badge shall be presented upon demand to the person(s) for whom the services are offered or any Police Officer.

6 5.6. Personal Appearance. Drivers shall represent a professional image. An unacceptable representation would include: unbathed, excessively dirty/torn uniform, excessive or offensive body art or piercings.

5.7. Demeanor and Conduct. While providing services for CITY, the OPERATOR or Driver shall refrain from any acts of misconduct including, but not limited to any of the following behavior:
• Rude or discourteous
• Lack of Service, selective service or refusal to provide service which the Operator is capable of performing.
• Any act of sexual harassment or sexual impropriety.
• Unsafe driving practices.
• Exhibiting any objective symptoms of alcohol or drug use. • Appearing at the scene of a CITY rotation tow call with the odor of an alcoholic beverage emitting from his/her breath. The Driver shall submit to a preliminary alcohol screening test upon demand of the CITY if an odor of an alcoholic beverage is detected.

5.8 Violations. Any violations of the Driver rules and regulation shall result in a one (1) week suspension of OPERATOR from the List. Any safety related violation shall be governed by Section 23, with penalty up to and including termination of this Agreement.

6. Response To Calls.

6.1. Response Time. The OPERATOR shall respond to calls twenty-four (24) hours a day, seven (7) days a week, within the response time of twenty (20) minutes during the Operator’s office business hours (which shall be at least from 8a.m. to 5p.m. seven (7) days a week), and of thirty (30) minutes during all other times. At the time of notification the OPERATOR will advise the Communication Center when the OPERATOR is unable either to respond or to meet the response time.

6.1.1 The maximum response time may be adjusted based on a variety of factors, including location. Such adjustments are in the sole discretion of CITY, through its Police Department designee.

6.2. Inability to Respond. If, after accepting the call, the OPERATOR is unable to respond or will be delayed in responding, the OPERATOR shall immediately notify the Communications Center.

6.3. Response Requirements. An appropriately licensed Driver shall respond with a properly equipped tow truck of the class required to tow the vehicle and be in possession of the appropriate license and endorsements.

6.4. Failure to Respond. A failure to adequately respond to calls, and/or repeated (more than 3 times) failures to meet the response time requirements in any thirty (30)

7 day period, shall result in a one (1) month suspension from the List and possible termination of this Agreement at the discretion of the CITY.

6.5. Notice of Scheduled Unavailability. When an OPERATOR will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the OPERATOR shall notify the CITY at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability.

6.6. Appropriate Personnel. Only Drivers and equipment requested shall respond to a CITY rotation tow call, no other persons shall accompany Driver.

6.7. Requests for Assistance. There may be times when the OPERATOR assigned the initial call may require additional assistance. The OPERATOR may make a request for additional assistance to the Morgan Hill Police Officer managing the scene. Dispatch of assistance will be determined by the List.

6.8. CITY Assistance. When an OPERATOR who was not called to a scene comes upon a collision scene where a vehicle or vehicles are blocking a roadway, a Morgan Hill Police Officer may request OPERATOR'S assistance in clearing the roadway. In such a case, the OPERATOR may be requested to move the vehicle to a safe location, and leave it. There shall be no charge for this assistance. The assistance provided shall not change the OPERATOR'S place in the List rotation.

6.9. Disputes. If the OPERATOR questions or disputes the List rotation, the OPERATOR shall not contact the Communications Center. All questions and disputes shall be referred in writing to the Field Operations Captain (“Captain”) during business hours, Monday through Friday, excluding holidays.

6.10. Scene Cleanup. It shall be the responsibility of the Driver to remove or clean from the scene of the collision any non-hazardous liquid, glass, or debris from the scene excluding flammable substances. Failure to do so will result in a request for the Driver to return to the scene to complete the clean-up. Repeated complaints (more than 3 times) that the OPERATOR’S Drivers have failed to comply with this section shall result in a one (1) month suspension of OPERATOR from the List and possible termination of this agreement at the discretion of the CITY.

7. Tow Truck Requirements

7.1. Adequate Vehicles. OPERATOR must provide an adequate number of tow trucks dedicated to servicing the towing needs of the CITY.

7.2. Vehicle Equipment and Maintenance. OPERATOR shall equip and maintain tow trucks covered under this Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the conditions of this Agreement, and in a manner consistent with industry standards and practices.