Agenda packet — Morgan Hill City Council, June 17, 2026 (part 1 of 2)

City Council
Special/Regular Meeting Agenda
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, June 17, 2026
Closed Session 5:30 p.m.

Regular Session 6:00 p.m.

Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person, with the option for the public to attend in person or participate by teleconference/video conference. Information on how the public may observe and participate in the meeting is below.

MEETING PARTICIPATION
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:

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June 17, 2026
2 You can use a headset on your phone for audio or read the transcript on your device.

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

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3 comment period for that item.

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

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

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

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

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

SPECIAL/REGULAR MEETING
A special meeting of the City Council is called at 5:30 p.m. for the purpose of conducting a closed session.

SPECIAL MEETING
5:30 p.m. Closed Session

CALL TO ORDER

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June 17, 2026
4 ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

CLOSED SESSION
CONFERENCE WITH COUNSEL – EXISTING LITIGATION [Government Code § 54956.9(d)(1)]
Bertram Berns v. City of Morgan Hill, et al.

Superior Court of California, County of Santa Clara Case No. 25CV472644

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION

ADJOURN TO CLOSED SESSION

REGULAR MEETING
6:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PROCLAMATIONS
Parks and Recreation Month

CITY COUNCIL REPORTS
Mayor Turner

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

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5 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. ADOPT A RESOLUTION TO DEDICATE TWO EASEMENTS TO PACIFIC

GAS AND ELECTRIC COMPANY (PG&E) FOR THE UPPER LLAGAS CREEK FLOOD CONTROL AND HALE AVENUE EXTENSION PHASE 2B PROJECT Recommendation:

Adopt a resolution and authorize the City Manager to execute and administer two easement deeds to dedicate to Pacific Gas and Electric Company (PG&E) in order to underground overhead utilities along Hale Avenue.

2. APPROVE A CONSULTANT AGREEMENT WITH PLANET FUTSAL, INC.

DBA FUTSAL KINGZ TO PROVIDE YOUTH FUTSAL, SOCCER CLASSES, AND CAMPS FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $150,000
Recommendation:

Authorize the City Manager to execute a consultant agreement with Planet Futsal, Inc. DBA Futsal Kingz to provide youth futsal, soccer classes, and camps not-to-exceed $150,000.

3. APPROVE FINAL MAP FOR SPRING VIEW – TRACT NO. 10589 AND RELATED SUBDIVISION IMPROVEMENT AGREEMENT (335 SPRING

AVENUE)
Recommendation:

1. Approve the Final Map;

2. Approve a Subdivision Improvements Agreement with 335 Spring LLC, a California limited liability company;

3. Authorize the City Manager to execute the Subdivision Improvements Agreement; and

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

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June 17, 2026
6 4. APPROVE PACIFIC GAS AND ELECTRIC COMPANY (PG&E) AGREEMENT

TO UNDERGROUND DRY UTILITIES FOR THE UPPER LLAGAS CREEK FLOOD CONTROL AND HALE AVENUE EXTENSION PHASE 2B PROJECT Recommendation:

Approve and authorize the City Manager to execute and administer a Pacific Gas and Electric Company (PG&E) Agreement to underground dry utilities at the intersection of Hale and Wright Avenues for a not-to-exceed amount of $297,083.51.

5. APPROVE PURCHASE OF SOLAR SYSTEMS AT THE AQUATICS CENTER AND POLICE DEPARTMENT FOR UP TO $1.91 MILLION
Recommendation:

Authorize the City Manager to purchase the existing solar systems at the Police Department and Morgan Hill Aquatics Center for a purchase price of up to $1,910,000.

6. APPROVE SEVENTH AMENDMENT TO THE LEASE WITH THE MORGAN

HILL UNIFIED SCHOOL DISTRICT FOR TRANSPORTATION YARD

FACILITY
Recommendation:

Authorize the City Manager to enter into a Seventh Amendment to the lease agreement with the Morgan Hill Unified School District for the transportation yard facility.

7. APPROVE THE JUNE 3, 2026 CITY COUNCIL MEETING MINUTES Recommendation:

Approve the June 3, 2026 City Council Meeting Minutes.

8. APPROVE THIRD AMENDMENT TO ON-CALL REPAIR CONTRACT WITH

GOLDEN BAY CONSTRUCTION FOR A NEW TOTAL COMPENSATION UP TO $1,200,000
Recommendation:

Authorize the City Manager to execute a third amendment to the on-call water and sewer repair contract with Golden Bay Construction with compensation up to $1,200,000.

9. AUTHORIZE CITY MANAGER TO EXECUTE FIRST AMENDMENT TO

PROPERTY USE AGREEMENT WITH NEW CINGULAR WIRELESS FOR
CELL SITE AT 2275 ROLLING HILL DRIVE
Recommendation:

Authorize the City Manager to execute the First Amendment to New Cingular Wireless PCS's Property Use Agreement.

10. AWARD ON-CALL PLUMBING MAINTENANCE SERVICE AGREEMENTS

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June 17, 2026
7 Recommendation:

1. Award maintenance service agreements to Burr Plumbing and Pumping, Inc. and Stephen Ciari Plumbing & Heating, Inc. in the not-to-exceed amount of $100,000 each to provide on-call plumbing maintenance and repair services; and

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

PUBLIC HEARINGS

11. ADOPT RESOLUTION OF INTENTION AND INTRODUCTION OF

ORDINANCE TO AMEND THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’

RETIREMENT SYSTEM (CALPERS) AND THE CITY OF MORGAN HILL TO

PROVIDE FOR EMPLOYEES SHARING ADDITIONAL COSTS UNDER
GOVERNMENT CODE SECTION 20516 (EMPLOYEES SHARING

ADDITIONAL COSTS)
Recommendation:

1. Adopt Resolution of Intention of the City Council of the City of Morgan Hill stating its intent to amend the contract between the California Public Employees' Retirement System (CalPERS) and the City of Morgan Hill in order to provide for employees sharing additional cost under Government Code Section 20516 (Employees Sharing Additional Cost);

2. Open/close the public hearing;

3. Waive the first and second reading of the ordinance amending the City's contract with CalPERS; and

4. Introduce ordinance.

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

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June 17, 2026
8 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

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

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

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

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

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

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

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

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June 17, 2026
9

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1 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

David Gittleson, Associate Engineer
APPROVED BY: City Manager

ADOPT A RESOLUTION TO DEDICATE TWO EASEMENTS TO

PACIFIC GAS AND ELECTRIC COMPANY (PG&E) FOR THE UPPER

LLAGAS CREEK FLOOD CONTROL AND HALE AVENUE EXTENSION
PHASE 2B PROJECT

RECOMMENDATION(S)
Adopt a resolution and authorize the City Manager to execute and administer two easement deeds to dedicate to Pacific Gas and Electric Company (PG&E) in order to underground overhead utilities along Hale Avenue.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Transportation
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

The Upper Llagas Creek Flood Protection Project is scheduled to be completed by early 2027. Included in the project is the reconstruction of Hale Avenue and the undergrounding of the overhead utilities along the west side of Hale Avenue between Main Avenue and Wright Avenue. As part of the undergrounding work, PG&E requires easements to be provided in locations where the undergrounding improvements extend outside the existing street right-of-way. As such, there are two locations within Galvin Park where easements are needed by PG&E to accommodate the undergrounding work (See Attachment 1-Easement Location Map). Additionally, PG&E requires that the easements be conveyed to them via a resolution (See Attachment 2).

Therefore, staff is requesting City Council approve the resolution and authorize the City Manager to execute and administer the two easement documents in order to allow the undergrounding work to proceed.

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1 COMMUNITY ENGAGEMENT:

The City continues to engage the community on the work happening in association with Valley Water's Upper Llagas Creek Flood Control Project through updates on Nextdoor and the City's website.

ALTERNATIVE ACTIONS:

The City Council could elect not to dedicate the PG&E easements at this time. This is not recommended as PG&E requires the easements prior to the installing the underground wires and significant under-grounding infrastructure has been installed thus far.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City has taken numerous actions over the last several decades in support of undergrounding the overhead lines along Hale Avenue, Most recently:

On November 4, 2020, City Council approved a PG&E agreement to underground dry utilities for the Hale Avenue Extension Project for $384,876.

On August 17, 2022, City Council approved a PG&E agreement to underground dry utilities along the west side of Hale Avenue between Main and Wright for $589,199.

FISCAL AND RESOURCE IMPACT:

No fiscal impact.

CEQA (California Environmental Quality Act):

Environmental Impact Report & Categorical Exemption An Environmental Impact Report (EIR) was certified for the Hale Avenue Extension and Santa Teresa Corridor Widening and Realignment Project in accordance with the California Environmental Quality Act (CEQA). Valley Water certified an Environmental Impact Report for the Flood Control Project. Additionally, relocation of infrastructure and utility work along existing roadways and associated with the Valley Water Project is exempt from CEQA per categorical exemption of Class 1, Existing Facilities.

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1 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORGAN

HILL AUTHORIZING THE DEDICATION OF EASEMENTS FOR A

PUBLIC PROJECT (UPPER LLAGAS CREEK FLOOD CONTROL
AND HALE AVENUE EXTENSION PHASE 2B PROJECT)
WHEREAS, Pacific Gas and Electric Company is requiring the City to dedicate two easements for the right to excavate, construct, reconstruct, install, replace, remove, maintain, inspect and use facilities within the easement area including ingress and egress therefrom over and above the lands of the Grantor, situated in Morgan Hill, California.

WHEREAS, the easements use is as follows: underground and aboveground facilities, appurtenances, and associated equipment for the purpose of distribution of electric energy, conveyance of gas, communication, and other public utility purposes.

WHEREAS, undergrounding wires and infrastructure will improve utility infrastructure, safety and service to the public.

WHEREAS, it is in the public interest to grant the easements.

WHEREAS, the easements are located within the City of Morgan Hill, CA, Assessor’s Parcel Number 764-17-009, more particularly described in Exhibits A and B, attached hereto and incorporated herein by this reference, for the Upper Llagas Creek Flood Control and Hale Avenue Extension Phase 2B Project (“Project”); and

1. Dedicating the two easements for the purpose of undergrounding the overhead lines is necessary for the Project.

2. All environmental review required by law has been prepared and adopted.

WHEREAS, An Environmental Impact Report (EIR) was certified for the Hale Avenue Extension and Santa Teresa Corridor Widening and Realignment Project in accordance with the California Environmental Quality Act (CEQA). Valley Water certified an Environmental Impact report for the Flood Control Project. Additionally, relocation of infrastructure and utility work along existing roadways and associated with the Valley Water Project is exempt from CEQA per categorical exemption of Class 1, Existing facilities.

THEREFORE, BE IT RESOLVED by the City Council of the City of Morgan Hill that it finds and determines as follows:

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2 3. The City Manager is hereby authorized to execute the PG&E easement deeds as described in Exhibit A1.

PASSED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on the 17th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

Mark Turner, Mayor MICHELLE BIGELOW, City Clerk

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3 CERTIFICATION
I, Michelle Bigelow, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Resolution (or Ordinance) No. adopted by the City Council at the Regular City Council Meeting of June 17, 2026.

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

DATE:_________________ ______________________________
MICHELLE BIGELOW, City Clerk

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Distribution Electric and Gas Easement Version 1.1 (Rev.09/25) RECORDING REQUESTED BY AND RETURN TO:

PACIFIC GAS AND ELECTRIC COMPANY
300 Lakeside Drive, Suite 210
Oakland, CA 94612
Attn: Land Rights Library
Location: City/Uninc Morgan Hill
Recording Fee $_____________________________
Document Transfer Tax $ None
[X] This is a conveyance where the consideration and
Value is less than $100.00 (R&T 11911).
[ ] Computed on Full Value of Property Conveyed, or
[ ] Computed on Full Value Less Liens
& Encumbrances Remaining at Time of Sale
[ ] Exempt from the fee per GC 27388.1 (a) (2); This
document is subject to Documentary Transfer Tax
Signature of declarant or agent determining tax
(SPACE ABOVE FOR RECORDER'S USE ONLY)
LD# 2209-03-11503 EASEMENT DEED
CITY OF MORGAN HILL, a municipal corporation of the State of California, (“Grantors”), hereby grants to PACIFIC GAS AND ELECTRIC COMPANY, a California corporation (“Grantee”), the right from time to time to excavate for, construct, reconstruct, install, replace (of initial or any other size), remove, maintain, inspect and use facilities of the type hereinafter specified, together with a right of way therefor, within the easement area set forth below, and also ingress thereto and egress therefrom, over and across the lands of Grantor situated in the City of Morgan Hill, County of Santa Clara, State of California, described as follows:
(APN 764-17-009)
Lot 71 as shown upon the map entitled “Morgan Hill Ranch Map No. 3”, filed for record September 21, 1892 in Book “G” of Maps at page 20, Santa Clara County Records.

The facilities and easement area are described as follows:

Underground and aboveground facilities, appurtenances, and associated equipment, as Grantee deems necessary, for the distribution of electric energy, conveyance of gas, communication, and other public utility purposes, all to be located within the strip of land as described in Exhibit “A” and shown upon Exhibit “B”, attached hereto and made a part hereof.

Grantor further grants to Grantee the right, from time to time, to trim or to cut down, without Grantee paying compensation, any and all trees and brush now or hereafter within said easement area, and shall have the further right, from time to time, to trim and cut down trees and brush along each side of said easement area which now or hereafter in the opinion of Grantee may interfere with or be a hazard to EXHIBIT A1

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) the facilities installed hereunder, or as Grantee deems necessary to comply with applicable state or federal regulations.

Grantor also grants to Grantee the right to use such portion of said lands contiguous to said easement area as may be reasonably necessary in connection with the excavation, construction, reconstruction, replacement, removal, maintenance and inspection of said facilities.

Grantor hereby covenants and agrees not to place or construct, nor allow a third party to place or construct, any building or other structure, or store flammable substances, or drill or operate any well, or construct any reservoir or other obstruction within said easement area, or diminish or substantially add to the ground level within said easement area, or construct any fences that will interfere with the maintenance and operation of said facilities.

Grantor further grants to Grantee the right to apportion to another public utility (as defined in Section 216 of the California Public Utilities Code) the right to construct, reconstruct, replace, remove, maintain, inspect, and use the communications facilities within said easement area including ingress thereto and egress therefrom.

Grantor acknowledges that they have read the “Grant of Easement Disclosure Statement”, Exhibit “C”, attached hereto and made a part hereof.

This document may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

The provisions hereof shall inure to the benefit of and bind the successors and assigns of the respective parties hereto, and all covenants shall apply to and run with the land.

Dated: __________________, 2026.

CITY OF MORGAN HILL, a municipal
corporation of the State of California
By ______________________________
Christina J. Turner
City Manager I hereby certify that a resolution was adopted on the ____ day of _________, 20____, by the
_____________________________________
authorizing the foregoing grant of easement.

By__________________________________

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) State of California
County of )
On __________________________, before me, Notary Public,

Insert name
personally appeared
,
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.
(Seal)
Signature of Notary Public

CAPACITY CLAIMED BY SIGNER
[ ] Individual(s) signing for oneself/themselves
[ ] Corporate Officer(s) of the above named corporation(s) [ ] Trustee(s) of the above named Trust(s)
[ ] Partner(s) of the above named Partnership(s)
[ ] Attorney(s)-in-Fact of the above named Principal(s) [ ] Other
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.

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EXHIBIT “A”

LEGAL DESCRIPTION

PACIFIC GAS & ELECTRIC EASEMENT

BEING A PACIFIC GAS & ELECTRIC EASEMENT SITUATED IN THE CITY OF MORGAN HILL, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF PARCEL 71 AS SHOWN ON THAT CERTAIN MAP ENTITLED “MORGAN HILL RANCH MAP NO. 3”, RECORDED ON SEPTEMBER 21, 1892 IN BOOK G, PAGES 20 AND 21 AND BEING A PORTION OF THE DEED TO THE CITY OF MORGAN HILL, RECORDED FEBRUARY 24, 1959 IN BOOK 4332 AT PAGE 384, OFFICIAL RECORDS OF SANTA CLARA COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE INTERSECTION OF THE NORTHWESTERLY RIGHT OF WAY LINE OF WEST MAIN STREET (66 FEET WIDE) AND THE SOUTHWESTERLY RIGHT OF WAY LINE OF HALE AVENUE (66 FEET WIDE) AS SHOWN ON RECORD OF SURVEY, RECORDED NOVEMBER 18, 1959 IN BOOK 113, PAGE 54, OFFICIAL RECORDS OF SANTA CLARA COUNTY;
THENCE ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE NORTH 34° 52’ 00” WEST, 549.70 FEET TO THE POINT OF BEGINNING;
THENCE LEAVING SAID SOUTHWESTERLY RIGHT OF WAY LINE ALONG THE FOLLOWING THREE (3) COURSES AND DISTANCES:
1) SOUTH 55° 08' 00" WEST, 12.00 FEET,
2) NORTH 34° 52' 00" WEST, 45.00 FEET, AND
3) NORTH 55° 08' 00" EAST, 12.00 FEET TO SAID SOUTHWESTERLY RIGHT OF WAY LINE; THENCE ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE SOUTH 34° 52’ 00” EAST, 45.00 FEET TO THE POINT OF BEGINNING.

CONTAINING 540 SQUARE FEET OF LAND, MORE OR LESS.

BASIS OF BEARINGS: THE BEARING OF NORTH 34° 52' 00" WEST BEING THE SOUTHWESTERLY RIGHT OF WAY LINE OF HALE AVENUE AS SHOWN ON RECORD OF SURVEY, RECORDED NOVEMBER 18, 1959 IN BOOK 113, PAGE 54, OFFICIAL RECORDS OF SANTA CLARA COUNTY.

AS SHOWN ON EXHIBIT “B”, ATTACHED HERETO AND MADE A PART HEREOF.

KIER & WRIGHT CIVIL ENGINEERS & SURVEYORS, INC.
________________________ 12/8/2025
KC J. KELLER, P.L.S. 9731 DATE

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HALE AVENUE
PGE

EASEMENT

WEST MAIN AVENUE
1" = 60'
1 OF 1
2850 Collier Canyon Road
Livermore, CA 94551
Phone: (925) 245-8788
www.kierwright.com MORGAN HILL CALIFORNIA
BYJOB NO.DATE
KJK
A25110
NOVEMBER, 2025

SHEETSCALE

SANTA CLARA COUNTY
NORTH
EXHIBIT "B"

PACIFIC GAS & ELECTRIC

EASEMENT

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) Pacific Gas and Electric Company

EXHIBIT “C”

GRANT OF EASEMENT DISCLOSURE STATEMENT
This Disclosure Statement will assist you in evaluating the request for granting an easement to Pacific Gas and Electric Company (PG&E) to accommodate a utility service extension to PG&E’s applicant. Please read this disclosure carefully before signing the Grant of Easement. • You are under no obligation or threat of condemnation by PG&E to grant this easement. • The granting of this easement is an accommodation to PG&E’s applicant requesting the extension of PG&E utility facilities to the applicant’s property or project. Because this easement is an accommodation for a service extension to a single customer or group of customers, PG&E is not authorized to purchase any such easement.
• By granting this easement to PG&E, the easement area may be used to serve additional customers in the area. Installation of any proposed facilities outside of this easement area will require an additional easement.
• Removal and/or pruning of trees or other vegetation on your property may be necessary for the installation of PG&E facilities. You have the option of having PG&E’s contractors perform this work on your property, if available, or granting permission to PG&E’s applicant or the applicant’s contractor to perform this work. Additionally, in order to comply with California fire laws and safety orders, PG&E or its contractors will periodically perform vegetation maintenance activities on your property as provided for in this grant of easement in order to maintain proper clearances from energized electric lines or other facilities.
• The description of the easement location where PG&E utility facilities are to be installed across your property must be satisfactory to you.
• The California Public Utilities Commission has authorized PG&E’s applicant to perform the installation of certain utility facilities for utility service. In addition to granting this easement to PG&E, your consent may be requested by the applicant, or applicant’s contractor, to work on your property. Upon completion of the applicant’s installation, the utility facilities will be inspected by PG&E. When the facility installation is determined to be acceptable the facilities will be conveyed to PG&E by its applicant.

By signing the Grant of Easement, you are acknowledging that you have read this disclosure and understand that you are voluntarily granting the easement to PG&E. Please return the signed and notarized Grant of Easement with this Disclosure Statement attached to PG&E. The duplicate copy of the Grant of Easement and this Disclosure Statement is for your records.

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) Attach to LD: 2209-03-11503
Area 3, San Jose Division
Land Service Office: San Jose
Line of Business: Electric Distribution (43)
Business Doc Type: Easements
MTRSQ: (22.09.03.20.22) Rancho Ojo De Agua Del La Coche FERC License Number: N/A
PG&E Drawing Number: N/A
Plat No.: L2307 (Electric), 3541-G1 (Gas)
LD of Affected Documents: N/A
LD of Cross Referenced Documents: N/A
Type of interest: Electric Underground Easements (4), Communication Easements (6), Utility Easement (86)
SBE Parcel: N/A
% Being Quitclaimed: N/A
Order or PM: 31488619-0170
JCN: N/A
County: Santa Clara
Utility Notice Number: N/A
851 Approval Application No: N/A; Decision: N/A
Prepared By: mqpv
Checked By: kcv2

Page 22 of 286 ends

Distribution Electric and Gas Easement Version 1.1 (Rev.09/25) RECORDING REQUESTED BY AND RETURN TO:

Signature of declarant or agent determining tax
(SPACE ABOVE FOR RECORDER'S USE ONLY)
LD# 2209-03-10118 EASEMENT DEED
CITY OF MORGAN HILL, a municipal corporation of the State of California, (“Grantors”), hereby grants to PACIFIC GAS AND ELECTRIC COMPANY, a California corporation (“Grantee”), the right from time to time to excavate for, construct, reconstruct, install, replace (of initial or any other size), remove, maintain, inspect and use facilities of the type hereinafter specified, together with a right of way therefor, within the easement area set forth below, and also ingress thereto and egress therefrom, over and across the lands of Grantor situated in the City of Morgan Hill, County of Santa Clara, State of California, described as follows:
(APN 764-17-009)
Lot 70 as shown upon the map entitled “Morgan Hill Ranch Map No. 3”, filed for record September 21, 1892 in Book “G” of Maps at page 20, Santa Clara County Records.

The facilities and easement area are described as follows:

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) the facilities installed hereunder, or as Grantee deems necessary to comply with applicable state or federal regulations.

Grantor acknowledges that they have read the “Grant of Easement Disclosure Statement”, Exhibit “C”, attached hereto and made a part hereof.

This document may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

The provisions hereof shall inure to the benefit of and bind the successors and assigns of the respective parties hereto, and all covenants shall apply to and run with the land.

Dated: __________________, 2026.

By__________________________________

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) State of California
County of )
On __________________________, before me, Notary Public,

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.
(Seal)
Signature of Notary Public

Page 25 of 286 ends

EXHIBIT “A”

LEGAL DESCRIPTION

PACIFIC GAS & ELECTRIC EASEMENT

BEING A PACIFIC GAS & ELECTRIC EASEMENT SITUATED IN THE CITY OF MORGAN HILL, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF PARCEL 70 AS SHOWN ON THAT CERTAIN MAP ENTITLED “MORGAN HILL RANCH MAP NO. 3”, RECORDED ON SEPTEMBER 21, 1892 IN BOOK G, PAGES 20 AND 21 AND BEING A PORTION OF THE DEED TO THE CITY OF MORGAN HILL, RECORDED FEBRUARY 24, 1959 IN BOOK 4332 AT PAGE 384, OFFICIAL RECORDS OF SANTA CLARA COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE INTERSECTION OF THE NORTHWESTERLY RIGHT OF WAY LINE OF WEST MAIN STREET (66 FEET WIDE) AND THE SOUTHWESTERLY RIGHT OF WAY LINE OF HALE AVENUE (66 FEET WIDE) AS SHOWN ON RECORD OF SURVEY, RECORDED NOVEMBER 18, 1959 IN BOOK 113, PAGE 54, OFFICIAL RECORDS OF SANTA CLARA COUNTY;
THENCE ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE NORTH 34° 52’ 00” WEST, 913.46 FEET TO THE POINT OF BEGINNING;
THENCE LEAVING SAID SOUTHWESTERLY RIGHT OF WAY LINE ALONG THE FOLLOWING THREE (3) COURSES AND DISTANCES:
1) SOUTH 55° 08' 00" WEST, 12.00 FEET,
2) NORTH 34° 52' 00" WEST, 19.00 FEET, AND
3) NORTH 55° 08' 00" EAST, 12.00 FEET TO SAID SOUTHWESTERLY RIGHT OF WAY LINE; THENCE ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE SOUTH 34° 52’ 00” EAST, 19.00 FEET TO THE POINT OF BEGINNING.

CONTAINING 228 SQUARE FEET OF LAND, MORE OR LESS.

AS SHOWN ON EXHIBIT “B”, ATTACHED HERETO AND MADE A PART HEREOF.

KIER & WRIGHT CIVIL ENGINEERS & SURVEYORS, INC.
________________________ 12/8/2025
KC J. KELLER, P.L.S. 9731 DATE

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HALE AVENUE
PGE

EASEMENT

WEST MAIN AVENUE
1" = 60'
1 OF 1
2850 Collier Canyon Road
Livermore, CA 94551
Phone: (925) 245-8788
www.kierwright.com MORGAN HILL CALIFORNIA
BYJOB NO.DATE
KJK
A25110
DECEMBER, 2025

SHEETSCALE

SANTA CLARA COUNTY
NORTH
EXHIBIT "B"

PACIFIC GAS & ELECTRIC

EASEMENT

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) Pacific Gas and Electric Company

EXHIBIT “C”

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Distribution Electric and Gas Easement Version 1.1 (Rev. 09/2025) Attach to LD: 2209-03-10118
Area 3, San Jose Division
Land Service Office: San Jose
Line of Business: Electric Distribution (43)
Business Doc Type: Easements
MTRSQ: (22.09.03.20.22) Rancho Ojo De Agua Del La Coche FERC License Number: N/A
PG&E Drawing Number: N/A
Plat No.: L2307 (Electric), 3541-G1 (Gas)
LD of Affected Documents: N/A
LD of Cross Referenced Documents: N/A
Type of interest: Electric Underground Easements (4), Communication Easements (6), Utility Easement (86)
SBE Parcel: N/A
% Being Quitclaimed: N/A
Order or PM: 31488619-0170
JCN: N/A
County: Santa Clara
Utility Notice Number: N/A
851 Approval Application No: N/A; Decision: N/A
Prepared By: mqpv
Checked By: kcv2

Page 29 of 286 ends

2 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Jennie Tucker, Recreation Manager
APPROVED BY: City Manager

APPROVE A CONSULTANT AGREEMENT WITH PLANET FUTSAL,
INC. DBA FUTSAL KINGZ TO PROVIDE YOUTH FUTSAL, SOCCER

CLASSES, AND CAMPS FOR A TOTAL NOT-TO-EXCEED AMOUNT OF
$150,000

RECOMMENDATION(S)
Authorize the City Manager to execute a consultant agreement with Planet Futsal, Inc.

DBA Futsal Kingz to provide youth futsal, soccer classes, and camps not-to-exceed $150,000.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Promoting a Healthy Community
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

The Parks and Recreation Division regularly engages independent contractors for the delivery of recreational activities and programs to the Morgan Hill and surrounding community. Upon acceptance of a contractor proposal, staff works with the contractor to determine the specifications of the activity, facility availability, participant minimums and maximums, and participant age range. All contractors set their own prices and schedules for their activities or programs. The Division advertises the programs in the activity guide, provides facility space, and manages all enrollment and registration. The contractor invoices the City for sixty percent (60%) of the total class revenue. The use of contract instructors is critical to meet community needs and support the Recreation cost-recovery goal of the City Council.

Planet Futsal, INC. DBA Futsal Kingz has been providing their services to the City of Morgan Hill for the past several years and staff has received positive feedback from participants. Traditionally, all instructor agreements are executed to not exceed seventyPage 30 of 286 2 five thousand ($75,000), which is within the threshold for the City Manager's approval.

Due to the popularity of Futsal Kingz, the course offerings and enrollment have expanded and will now exceed the threshold for City Manager approval and therefore require City Council approval.

COMMUNITY ENGAGEMENT:

Involve
The success of classes and programs offered by independent contractors in the Parks and Recreation Division, relies heavily on participation from the community. The community is involved in the ultimate success of the program by continuing to enroll in classes and programs.

ALTERNATIVE ACTIONS:

The City Council could decide not to approve the agreement and direct staff to reduce the number of courses offered by this independent contractor, resulting in a negative impact on customer satisfaction and loss of revenue for the City.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council approved a previous two-year agreement at the June 19, 2024 Council meeting.

FISCAL AND RESOURCE IMPACT:

The agreement is subject to budget appropriation by City Council. Funding of the $150,000 is included in the Fiscal Year 2026-2027 and 2027-2028 Adopted Budget, in the General Fund (010), within the Parks and Recreation Division (010.2140.42226).

The expenditures are fully offset by revenue.

CEQA (California Environmental Quality Act):

Not a Project
This is an administrative program that will not result in a physical change ot the environment and therefore does not constitue a project under CEQA.

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CONSULTANT AGREEMENT
Planet Futsal, Inc. DBA Futsal Kingz
THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Planet Futsal, Inc. DBA Futsal Kingz 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, 2028 at which time CONSULTANT’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum of two two-year extensions; unless otherwise authorized by 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 to provide youth futsal and soccer classes and/or camps.

4. Compensation. CONSULTANT shall be compensated as follows:

4.1. Amount. 60% of the resident-member registration fees to CONSULTANT. Compensation under this Agreement during its initial term set forth in Section 2 above shall not exceed $150,000 (ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS). 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 extended term exceed 105% of the maximum compensation for two years of service during the immediately preceding two years of service.

4.2. Billing. CONSULTANT shall provide CITY with a monthly invoice containing the dated, detailed, and itemized descriptions of all services performed by CONSULTANT. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 14 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). CITY shall pay for services and expenses (if so provided) 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 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

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additional compensation to CONSULTANT. The City Manager of CITY is authorized to terminate this AGREEMENT, in whole or in part, on behalf of CITY.

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. 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 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

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3 Updated May 2026
any excess or “umbrella” policies), whichever is greater. If CONSULTANT is selfinsured, CONSULTANT shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.

7.1.4. 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.

7.2. 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.

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 self-insurance 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 an 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 CITY. A "material change" is a change that results in nonPage 34 of 286 4 Updated May 2026
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. Background Checks. CONSULTANT, as well as their employees, subcontractors, and volunteers (hereinafter collectively “STAFF”), must satisfy the following requirements, prior to providing in-person or virtual services contracted with the CITY:

8.1. CONSULTANT STAFF must pass a background check using LiveScan. If an individual has been convicted of a crime other than a minor traffic violation, the individual cannot work or be present in any CITY facility unless he/she receives a criminal record exemption from the CITY.

8.2. CONSULTANT must designate a human resources administrator responsible for attestation to background check requirement.

8.3. CONSULTANT designated human resources administrator shall not attest for their own background check. Background checks for these individuals shall be submitted to the CITY for review.

8.4. CONSULTANT shall not attest for their own, or for any person legally related to CONSULTANT, background check. Background checks for these individuals shall be submitted to the CITY for review.

8.5. CONSULTANTS with limited numbers of employees may request individual background check(s) through the City as an alternative to provisions 8.1 through 8.4 in this ection.

8.6. CONSULTANT is responsible for all costs associated with the background checks for its STAFF.

9. 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.

10. Compliance with Law

10.1. 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 and 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.

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10.2. 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 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.

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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.

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

12. 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.

13. 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).

14. 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:

Planet Futsal, Inc. DBA Futsal Kingz
14938 Camden Ave, Ste 93
San Jose, CA 95124
Address of CITY is as follows:

Public Services Director
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

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

15. 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.

16. 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.

17. Maintenance of Records.

17.1. 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

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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.

17.2. 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.

17.3. 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.

17.4. Public Record. The City, as a public agency, is subject to the disclosure requirements of the California Public Records Act (“CPRA”). This Agreement, including Consultant’s rates and fees, is a public record under the California Public Records Act. If Consultant has proprietary information contained in these documents, and Consultant wishes to claim that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, the City will make reasonable efforts to provide notice to Consultant prior to such disclosure.

18. 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.

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

20. 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.

21. 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.

22. Defense and Indemnification.

22.1. Defense and Indemnification. CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards,

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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”).

22.2. 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.

22.3. 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.

22.4. 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 22 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.

22.5. 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.

23. 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.

24. 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.

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

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9 Updated May 2026
expenses, costs, attorneys’ fees, and resulting fines, penalties, and damages associated with such incident, breach, investigation and/or notification.

26. 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.

27. 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.

28. Binding Agreement. Notwithstanding the provisions of Section 20 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.

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 Parties, constitute a single binding agreement. ///
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10 Updated May 2026
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11 Updated May 2026

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: Planet Futsal, Inc. DBA Futsal Kingz City Attorney By:

Elisa Tolentino
Name
& Title:

Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
Date:

By:

Name
& Title:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer

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3 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Maria Angeles, Senior Civil Engineer
APPROVED BY: City Manager
APPROVE FINAL MAP FOR SPRING VIEW – TRACT NO. 10589 AND RELATED SUBDIVISION IMPROVEMENT AGREEMENT (335 SPRING

AVENUE)

RECOMMENDATION(S)

1. Approve the Final Map;

2. Approve a Subdivision Improvements Agreement with 335 Spring LLC, a California limited liability company;

3. Authorize the City Manager to execute the Subdivision Improvements Agreement; and

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

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

Spring View – Tract No. 10589 is a 23-unit residential development consisting of 18 single-family attached units and five single-family detached units with associated improvements. The project site is located on the north side of Spring Avenue with a current address of 335 Spring Avenue, Morgan Hill, as shown on the attached Site Map (Attachment 1).

Subdivision Improvements Agreement
The project's Subdivision Improvements Agreement (Attachment 2) requires the development to construct public improvements along Spring Avenue, including, but not limited to, curb and gutter, sidewalk, street trees, a streetlight, and approximately 490 linear feet of public water line along the project site’s private driveway.

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3 Final Map
The Developer, 335 Spring LLC, has completed all the conditions specified in the project's Tentative Map (Resolution 21-11), which was approved by the Planning Commission, and the conditions in the Design Permit (Approval Certificate No. 21-008), which the Development Services Director administratively approved.

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

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

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

COMMUNITY ENGAGEMENT:

Inform
The Planning Commission approved the project's Tentative Map (SD2020-0010) at its October 12, 2021 meeting. The project's Design Permit (SR2020-0028) was separately approved administratively by the Development Services Director on November 1, 2021.

The project was publicly noticed including a mailing to property owners within 600 feet of the project. A subsequent time extension of the Design Permit was approved by the Development Services Director on November 5, 2024.

ALTERNATIVE ACTIONS:

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

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

October 12, 2021 - Planning Commission adopted Resolution 21-11 approving the project's Tentative Map.

FISCAL AND RESOURCE IMPACT:

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

CEQA (California Environmental Quality Act):

Categorical Exemption

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3 The project was found to be exempt from CEQA pursuant to Section 15332 – Infill Development.

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4 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

David Gittleson, Associate Engineer
APPROVED BY: City Manager

APPROVE PACIFIC GAS AND ELECTRIC COMPANY (PG&E)

AGREEMENT TO UNDERGROUND DRY UTILITIES FOR THE UPPER

LLAGAS CREEK FLOOD CONTROL AND HALE AVENUE EXTENSION
PHASE 2B PROJECT

RECOMMENDATION(S)
Approve and authorize the City Manager to execute and administer a Pacific Gas and Electric Company (PG&E) Agreement to underground dry utilities at the intersection of Hale and Wright Avenues for a not-to-exceed amount of $297,083.51.

For decades, the City has supported Valley Water in efforts to complete the Upper Llagas Creek Flood Protection Project. The completion of this project will provide flood control for the West Little Llagas Creek running through Morgan Hill, protecting homes and businesses. Valley Water is currently under construction with Phase 2B of the Flood Control Project and is scheduled to be complete by January 2027.

Included in the project is the reconstruction of Hale Avenue, the undergrounding of overhead utilities along the west side of Hale Avenue between Main Avenue and Wright Avenue, and the installation of a new traffic signal at the Wright Avenue and Hale Avenue intersection (Attachment 1-Project Location Map). In order to eliminate identified conflicts between the new traffic signal poles and the overhead electrical lines at the intersection, additional undergrounding work will need to be completed along the east side of Hale Avenue. To complete this work, the City is required to enter into a new agreement with Pacific Gas and Electric Company (PG&E) in the amount of

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4 $297,083.51 (Attachment 2-PG&E Agreement). As with most PG&E contracts, the vaults and conduits will be installed by Valley Water's electrical contractor and PG&E will install the cables, transformers and remove the overhead lines and poles.

Staff is requesting City Council approve the PG&E contract in order to remove the overhead utilities from the intersection and eliminate any potential conflicts with the traffic signal poles. The traffic signal installation is scheduled to begin in the Fall of 2026.

COMMUNITY ENGAGEMENT:

The City continues to engage the community on the work happening in association with Valley Water's Upper Llagas Creek Flood Control Project. Significant work has been completed thus far, with only a short section of box culvert remaining at Hale and Wright.

ALTERNATIVE ACTIONS:

The City Council could elect not to execute the PG&E agreement at this time. This is not recommended as the PG&E wires may be in conflict with the new traffic signal poles/arms at the Hale and Wright intersection.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City has taken numerous actions over the last several decades in support of undergrounding the overhead lines along Hale Avenue, Most recently:

On November 4, 2020, City Council approved a PG&E agreement to underground dry utilities for the Hale Avenue Extension Project for $384,876.

On August 17, 2022, City Council approved a PG&E agreement to underground dry utilities along the east side of Hale Avenue between Main and Wright for $589,199.

FISCAL AND RESOURCE IMPACT:

Funding for this project is allocated within the approved Capital Improvement Program in the Traffic Signal and Intersection Improvements Project/Fund 309.

CEQA (California Environmental Quality Act):

Environmental Impact Report & Categorical Exemption
An Environmental Impact Report (EIR) was certified for the Hale Avenue Extension and Santa Teresa Corridor Widening and Realignment Project in accordance with the California Environmental Quality Act (CEQA). Valley Water certified an Environmental Impact Report for the Flood Control Project. Additionally, relocation of infrastructure and utility work along existing roadways and associated with the Valley Water Project is exempt from CEQA per categorical exemption of Class 1, Existing Facilities.

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118358618
May 27, 2026
Customer Payment
Coupon
References
Notification # 118358618
Contract # 50145245 V1
E20C-PM # 35722675
Customer # 2530290
City of Morgan Hill
17575 Peak Ave.

MORGAN HILL, CA 95037
Customer Cost Summary

HALE ROAD, MORGAN HILL
Amounts Due Total Due
Rule 20C Non-Refundable Payment $297,083.51
$297,083.51
Important Payment Information
To complete your contract ONLINE
Follow the instructions provided with your electronic contract Submit payment at https://www.pge.com/contractpayments
To complete your contract BY MAIL
Please make check payable to: PG&E or Pacific Gas and Electric Complete, sign and return the enclosed agreement(s), the SACAC form and the customer payment coupon with your payment
Remit payment and SACAC form to:

PG&E CFM/PPC Department
PO BOX 997340
Sacramento, CA 95899-7340

IMPORTANT MESSAGE
Please review the enclosed information
and total due. This document needs
to be returned with the enclosed
agreements.

If you complete your contract ONLINE,
a copy will be saved to your Customer
Connections Online (CCO) account at
pge.com/cco.

To learn more about PG&E's gas and
electric safety initiatives and resources
please visit pge.com/safety.

Have Questions?
Please Call 1-800-422-0436

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Page 1 of 2 ends

* Automated document, Preliminary Statement, Part A
118358618
62-4527 (Rev 1/91)
Service Planning
Advice No. 1633-G/1342-E
Effective 4/02/91
Pacific Gas and Electric Company
Agreement to Perform
Tariff Schedule Related Work
DISTRIBUTION:

Applicant (Original)
Division (Original)
ACCTG. SVCS.

REFERENCES:

Notification # 118358618
R20-PM # 35722675
Contract # 50145245 V1
May 27, 2026
City of Morgan Hill, A GOVERNMENT AGENCY (Applicant) has requested PACIFIC GAS AND ELECTRIC COMPANY, a California corporation (PG&E), to perform the tariff schedule related work as located and described in paragragh 3 herein. PG&E agrees to perform the requested work and furnish all necessary labor, equipment, materials and related facilities required therefore, subject to the following conditions:

1. Whenever part or all of the requested work is to be furnished or performed upon property other than that of Applicant, Applicant shall first procure from such owners all necessary rights-of-way and/or permits in a form satisfactory to PG&E and without cost to it.

2. Applicant shall indemnify and hold harmless PG&E, its officers, agents and employees, against all loss, damage, expense and liability resulting from injury to or death of any person, including but not limited to, employees of PG&E, Applicant or any third party, or for the loss, destruction or damage to property, including, but not limited to property of PG&E, Applicant or any third party, arising out of or in any way connected with the performance of this agreement, however caused, except to the extent caused by the active negligence or willful misconduct of PG&E, its officers, agents and employees. Applicant will, on PG&E's request, defend any suit asserting a claim covered by this indemnity. Applicant will pay all costs that may be incurred by PG&E in enforcing this indemnity, including reasonable attorneys' fees.

3. The location and requested work are described as follows: (Describe in detail the materials and facilities to be furnished and/or work to be performed by PG&E. If more space is required, use other side and attach any necessary drawings as Exhibits A, B, C, etc):

LOCATION: HALE ROAD, MORGAN HILL
DESCRIPTION OF WORK: Rule 20C - Underground existing overhead electric facilities Engineering & Administrative Costs $72,579.16
Including Applicant Design Value of $0.00
Cost of Additional Applicant Design Plan Checks (+) $0.00 Value of 20C Underground System (+) $10,498.36
Tie-In of 20C by PG&E (+) $152,270.67
PG&E Land Rights Costs (+) $0.00
Inspection Fees (+) $1,381.93
Value of 20C Trench & Excavation (+) $32,803.59
Value of 20C Conduits & Substructures (+) $17,801.44
Rule 20C Trench Permits Obtained by PG&E (+) $966.00
less Salvage & Depreciation for Overhead Facilities (-) $1,597.78 SUB TOTAL (=) $275,956.11
Including Net Joint Pole Credit Value of ($10,747.26)
plus ITCC @ 24% (+) $66,229.46
plus Cost to Remove Overhead Line by PG&E $5,502.96
Value of 20C Trench, Excavation & Conduit for Others (no ITCC) (+) $0.00 SUB TOTAL (=) $347,688.53
less 20C Underground System Installed by Applicant (-) $0.00 less 20C Trench & Excavation Provided by Applicant (-) $32,803.59 less 20C Conduits & Substructures Installed by Applicant (-) $17,801.44 less Value of Applicant Design Work (-) $0.00
Electric Rule 20C Cash Payment (=) $297,083.50
#Form 62-4527#

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* Automated document, Preliminary Statement, Part A
118358618
62-4527 (Rev 1/91)
Service Planning
Advice No. 1633-G/1342-E
Effective 4/02/91

4. Applicant shall pay to PG&E, promptly upon demand by PG&E, as the complete contract price hereunder, the sum of Two hundred ninety-seven thousand eighty-three dollars and fifty-one cents $297,083.50 Upon completion of requested work, ownership shall vest in: PG&E Applicant Executed this #signDayWPA# day of #signMonWPA# #signYrWPA# City of Morgan Hill, A

GOVERNMENT AGENCY
Applicant

PACIFIC GAS & ELECTRIC COMPANY
By: #sigWPA# By: Brandon Tran
Christina Tuner
Print/Type/Name
Title: Title: Service Planning Supervisor
#titleWPA#
Mailing Address: 17575 Peak Ave.

MORGAN HILL, CA 95037

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5 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE PURCHASE OF SOLAR SYSTEMS AT THE AQUATICS
CENTER AND POLICE DEPARTMENT FOR UP TO $1.91 MILLION

RECOMMENDATION(S)
Authorize the City Manager to purchase the existing solar systems at the Police Department and Morgan Hill Aquatics Center for a purchase price of up to $1,910,000.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Climate Action Plan
REPORT NARRATIVE:

In July 2011, the City Council authorized the execution of a 20-year Power Purchase Agreement (PPA) with Borrego Solar to receive clean energy at the Police Department and the Aquatics Center without an upfront capital infrastructure investment. Under that agreement, the City committed to purchasing generated solar power at a fixed rate that escalated by 3% annually. Per the original PPA framework, the City retains an ongoing contractual right to buy out the systems prior to expiration based on an independent appraisal of their Fair Market Value (FMV). Purchasing these facilities also allows the City to retain optimal solar rates with PG&E, where constructing new systems would not. Independent professional appraisals were completed on May 5, 2026, by Partner Valuation Advisors to establish the current market value ("As Is" Fee Simple Going Concern) for both systems:
• Police Department Solar System (16200 Vineyard Boulevard): This project features a large-scale solar power system installed across the facility's roof and parking lot carports, utilizing a total of 1,078 solar panels and a centralized power inverter assembly. Based on its independent appraisal, the current market value of the system as an active, operational asset is $860,000.

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5 • Morgan Hill Aquatics Center Solar System (16200 Condit Road): This project consists of a large parking lot carport solar canopy made up of 1,176 individual solar panels connected to a centralized power inverter assembly. Based on its independent appraisal, the current market value of the system as an active, operational asset is $1,050,000.

The total combined appraised value of the municipal solar portfolio is $1.91 million, which serves as the baseline for the proposed City purchase price. Acquiring these systems transitions the City from a third-party PPA consumer to full owner-operators.

However, because both systems have been operating since 2012, the central inverters are nearing the end of their projected useful lives. Engineering field inspections noted that system re-engineering will be required post-acquisition, including the procurement of new inverter units. The technical appraisal has fully factored in the required reengineering and future operational costs into the final valuations.

COMMUNITY ENGAGEMENT:

Because this transaction constitutes a strictly administrative and financial shift from purchasing solar energy under an established PPA contract to owning the physical generation infrastructure, no physical adjustments to the surrounding community and environment will take place. The existing structures will continue generating power within the exact same footprints they are currently in. Community outreach was performed during the initial 2011 scoping. Since there are no visual changes or expanded footprints proposed, further public community engagement is not proposed for this transactional closing.

ALTERNATIVE ACTIONS:

The City Council could choose to decline to authorize the purchase and allow the existing PPA terms to continue through their natural expiration on June 1, 2036. Under this option, the City would not pay the $1.91 million capital costs but remains contractually locked into paying the top utility PPA tier energy rates and not realizing savings of an estimated $220,000 to $250,000 annually.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On December 15, 2010, the City Council reviewed regional vendor bids and selected Borrego Solar for the potential power purchase agreement.

On July 27, 2011, the City Council formally authorized the City Manager to sign the 20- year Solar Energy Power Purchase Agreement with Borrego Solar for the Police Department and Aquatics Center sites.

FISCAL AND RESOURCE IMPACT:

The purchase price to buy out the systems will not be more than $1,910,000. This total matches the fair market value concluded across the independent appraisals ($860,000 for the Police Department site and $1,050,000 for the Aquatics Center site). Funding for

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5 these acquisitions has been budgeted in the Capital Improvement Program for the Police Department within Project PF2002 in the Public Facilities Safety Impact Fund (315) and for the Aquatics Center within Project PR1005 in the Quimby Fund (375).

Financially, transitioning to full public ownership brings a substantial long-term fiscal advantage over maintaining standard PPA payments. Over the next 11 years, the appraisal anticipates a positive return on investment of approximately $600,000- $800,000. Additionally, with the use of Capital Funds for the purchase, the City will see an immediate savings of approximately $220,000 increasing annually to approximately $336,000 annually as PG&E rates increase. The City estimates additional one-time costs for renovation of the systems at $250,000 to $450,000, which will be funded within the existing CIP project.

CEQA (California Environmental Quality Act):

Categorical Exemption
Since the solar panels are existing, no changes to the physical environment shall occur.

The planned maintenance and management of city facilities falls within the CEQA categorical exemption of Class 1, Existing Facilities.

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6 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE SEVENTH AMENDMENT TO THE LEASE WITH THE

MORGAN HILL UNIFIED SCHOOL DISTRICT FOR TRANSPORTATION

YARD FACILITY

RECOMMENDATION(S)
Authorize the City Manager to enter into a Seventh Amendment to the lease agreement with the Morgan Hill Unified School District for the transportation yard facility.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Strategic Priorities 2026-2027
Fiscal Sustainability
REPORT NARRATIVE:

The City currently leases approximately 3.4 acres of space to the Morgan Hill Unified School District for use as its Bus Yard. The current lease term expires June 30, 2026.

The recommended action would extend this lease for an additional three years. The City and School District have collaborated on planning the future of the Corporation Yard site. Additionally, the District manages the fuel pumps at the site that are also utilized by the City. The proposed amendment would extend the lease an additional three years.

COMMUNITY ENGAGEMENT:

Not Applicable
This is an agreement between the City and School District. Community engagement has not been sought.

ALTERNATIVE ACTIONS:

The Council could elect to ask staff to change terms and renegotiate the extension.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council last extended the agreement February 3, 2021 granting a three-year term with an additional two-year option. The original lease agreement was executed in May 2000, although shared use of the site predates the current lease agreement. The City

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6 Council received the Corporation Yard Space Study on November 4, 2020, supporting long-term planning of the site.

FISCAL AND RESOURCE IMPACT:

The lease agreement will generate approximately $110,000 annually for the General Fund (010).

CEQA (California Environmental Quality Act):

Categorical Exemption
The planned management of existing city facilities falls within the CEQA categorical exemption of Class 1, Existing Facilities. Use of the lease space will be consistent with the use that has occurred in that location for decades.

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SEVENTH AMENDMENT TO LEASE

BETWEEN THE MORGAN HILL UNIFIED SCHOOL DISTRICT

AND THE CITY OF MORGAN HILL

CORPORATION YARD LEASE
This Seventh Amendment (“Amendment”) to the Corporation Yard Lease between Morgan Hill Unified School District (“District” or “Tenant”) and the City of Morgan Hill (“City” or “Landlord”), dated May 22, 2000 (“Lease”) is entered into as of ________________, 2026. Landlord and Tenant may be referred to collectively as the “Parties” in this Agreement.

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

1. Landlord is the owner of certain real property (the “Property”) described on Exhibit A to the Lease.

2. Pursuant to the Lease, Landlord has leased a portion of the Property (the “Premises”) as described on Exhibit B to the Lease, to Tenant.

3. The Parties entered into that certain First Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“First Amendment”) as of July 1, 2006, extending the term of the Lease to June 30, 2010, amending the payment schedule, and deleting the section regarding rent establishment upon extension.

4. The Parties entered into that certain Second Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“Second Amendment”) as of July 1, 2010, extending the term of the Lease to June 30, 2011, and amending the payment schedule.

5. The Parties entered into that certain Third Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“Third Amendment”) as of July 1, 2011, extending the term of the Lease to June 30, 2016, and amending the payment schedule and the right to enter section.

6. The Parties entered into that certain Fourth Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“Fourth Amendment”) as of July 1, 2016, extending the term of the Lease to June 30, 2021, amending the payment schedule, and adding a maintenance section.

7. The Parties entered into that certain Fifth Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“Fifth Amendment”) as of February 22, 2021, extending the term of the Lease to June 30, 2024.

8. The Parties entered into that certain Sixth Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill (“ Sixth Amendment”) as of April 16, 2024, extending the term of the Lease to June 30, 2026. The Lease and the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment thereto are attached to this Amendment collectively as Exhibit 1.

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9. Pursuant to the terms and conditions set forth below, the Parties desire to extend the term of the Lease of the Premises another three (3) years.

AGREEMENT
The Parties Mutually Agree as Follows:

1. Section 1.02 {erroneously referred to as Section 1102 in the lease dated May 22, 2000} of the Lease shall be amended in its entirety and replaced with the following provision:
“The term of this Lease shall expire June 30, 2029. On or before January 1, 2029, Tenant may notify Landlord that it wishes to extend the Lease for up to another two years. If Landlord consents to such extension, this Lease will be extended for up to a two-year period upon the same terms and conditions in this Lease as amended, except as jointly modified by the Parties in writing. This Lease may be terminated by Landlord or Tenant with or without cause prior to the expiration of the term of this Lease with at least three hundred sixty-five (365) days’ advance written notice to either Party. In the event of termination, Tenant shall pay Landlord a prorated amount from the beginning of that current year through the end of the termination period.”

2. Section 2.01 of the Lease shall be amended in its entirety and replaced with the following provision:
“Rent shall be paid quarterly as follows
Period Annual Payment Quarterly Payment
07/21 - 06/22 $90,255.00 $22,563.75
07/22 - 06/23 $97,810.00 $24,452.50
07/23 - 06/24 $105,849.96 $26,462.49
07/24 - 06/25 $106,982.56 $26,745.64
07/25 - 06/26 $109,443.16 $27,360.79
07/26 - 06/27 Rate determined by Local Control Funding
Formula Statutory cost-of-living adjustment
Beginning in the fiscal year starting in July 2017, Annual Payment shall be increased annually. The amount of increase shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government. Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 1 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 1 of the second preceding fiscal year, as reported by the State Department of Finance. The Parties' intention is to align the

Page 90 of 286 ends

annual increases to the cost-of-living adjustment provided to schools as defined in California Education Code Section 42238.1.

The rent shall be due to Landlord on the first day of the following months: January, April, Ju]y, and October, A onetime ten percent (10%) late fee shall apply on any amounts which remain unpaid sixty (60) days from the due date.”

3. Section 5.02 of the Lease is hereby amended and replaced in its entirety as follows:
“Section 5.02. Maintenance
The ongoing and routine operations, and the ongoing maintenance (including landscaping, ground maintenance, and custodian services) of the Premises’ facilities, furnishings, and equipment shall be the responsibility of the Tenant, with the exception of the fuel pump/fuel storage system.

Tenant is responsible for the recurring and routine maintenance to the fuel pump/fuel storage system. Landlord is solely responsible for major maintenance repairs to the fuel pump/fuel storage system. Landlord is not responsible for major maintenance repairs for any other portion of the Premises’ facilities, furnishings, nor equipment. Major maintenance repairs are characterized as repair projects that represent significant investment with an expenditure criteria not unlike that required for capitalizing an expenditure as a capital asset, normally more than $5,000.

Where there is a difference of opinion exists as to the nature of the proposed maintenance work (i.e. routine v. major), both Parties will use best efforts to come to an agreement. Absent an agreement, both Parties will agree upon an independent expert to determine the proper expense allocation. The cost of this independent expert will be split equally by the Parties”
///
///
///
///
///
///
///
///
[Signatures on the Next Page]

Page 91 of 286 ends

4. Except as amended by this Agreement, the Lease shall remain in full force and effect.

In WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth In the first paragraph.

CITY OF MORGAN HILL MORGAN HILL UNIFIED SCHOOL

DISTRICT
By:___________________________ By:________________________ CHRISTINA J. TURNER DR. CARMEN GARCIA
City Manager Superintendent
City of Morgan Hill Morgan Hill Unified School District APPROVED AS TO FORM:

By: ___________________________
Elisa Tolentino
City Attorney
City of Morgan Hill
ATTEST:

By: ___________________________

MICHELLE BIGELOW
City Clerk
City of Morgan Hill

Page 92 of 286 ends

DocuSign Envelope ID: 2FF51 A3C-7070-40A9-BD9F-974F9CDF3D63

SIXTH AMENDMENT TO LEASE

BETWEEN THE MORGAN HILL UNIFIED SCHOOL DISTRICT

AND THE CITY OF MORGAN HILL

CORPORATION YARD LEASE
This Sixth Amendment ("Amendment") to the Lease between Morgan Hill Unified School District ("District" or "Tenant") and the City of Morgan Hill ("City" or "Landlord"), dated May 22, 2000 ("Lease") is entered into as of April 16, 2024. Landlord and Tenant may be referred to collectively as the "Parties" in this Agreement.

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

1. Landlord is the owner of certain real property ( the "Property") described on Exhibit A to the Lease.

2. Pursuant to the Lease, Landlord leases to Tenant a portion of the Property (the "Premises") as described on Exhibit B to the Lease.

3. The Parties entered into that certain First Amendment to the Lease ("First Amendment") as of July 1, 2006, extending the term of the Lease to June 30, 2010, amending the payment schedule, and deleting the section regarding rent establishment upon extension.

4. The Parties entered into that certain Second Amendment to the Lease ("Second Amendment") as of July 1, 2010, extending the term of the Lease to June 30, 2011, and amending the payment schedule.

5. The Parties entered into that ce1tain Third Amendment to the Lease ("Third Amendment") as of July 1, 2011, extending the term of the Lease to June 30, 2016, and amending the payment schedule and the right to enter section.

6. The Parties entered into that certain Fourth Amendment to the Lease ("Fourth Amendment") as of July 1, 2016, extending the term of the Lease to June 30, 2021, amending the payment schedule, and adding a maintenance section.

7. The Parties entered into that certain Fifth Amendment to the Lease ("Fourth Amendment") as of February 2, 2021, extending the term of the Lease to June 30, 2024. The Lease and the First, Second, Third, Fourth, and Fifth Amendments thereto are attached to this Amendment collectively as Exhibit 1.

8. Pursuant to the terms and conditions set forth below, the Parties desire to extend the term of the Lease of the Premises another two (2) years.

AGREEMENT
The Parties Mutually Agree as Follows:

1. Section 1.02 ( erroneously referred to as Section 1102 in the Lease) of the Lease shall be amended in its entirety and replaced with the following provisions:
"The tenn of this Lease shall expire June 30, 2026. This Lease may be terminated by Landlord or Tenant with or without cause prior to the expiration of the term of this Lease with at least three hundred sixty-five (365) days' advance written notice to either Pruty. In the event of ten11ination, EXHIBIT 1

Page 93 of 286 ends

DocuSign Envelope ID: 2FF51A3C-7070-40A9-BD9F-974F9CDF3D63 Tenant shall pay Landlord a prorated amount from the beginning of that current year through the end of the tennination period."

2. Except as amended by this Amendment, the Lease shall remain in full force and effect.

3. 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 II electronic copy of a signed contractn refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term " electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the City.

In WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth in the first paragraph.

CITY OF MORGAN HILL FIED SCHOOL DISTRICT

APPROVED AS TO FORM
By:

ATTEST
By:

Page 94 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D

FIFTH AMENDMENT TO LEASE

BETWEEN THE MORGAN HILL UNIFIED SCHOOL DISTRICT

AND THE CITY OF MORGAN HILL

CORPORATION YARD LEASE
This Fifth Amendment ("Amendment") to the Lease between Morgan Hill Unified School District ("District" or "Tenant") and the City of Morgan Hill ("City" or "Landlord"), dated May 22, 2000 ("Lease") is entered into as of Feb 22. 2021. Landlord and Tenant may be referred to collectively as the "Parties" in this Agreement.

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

1. Landlord is the owner of certain real property ( the "Property") described on Exhibit A to the Lease.

2. Pursuant to the Lease, Landlord has leased a portion of the Property ( the "Premises") as described on Exhibit B to the Lease to Tenant.

3. The Parties entered into that certain First Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill ("First Amendment") as of July 1, 2006, extending the term of the Lease to June 30, 2010, amending the payment schedule, and deleting the section regarding rent establishment upon extension. , 4. The Parties entered into that certain Second Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill ("Second Amendment") as of July 1, 2010 extending the term of the Lease to June 30, 2011, and amending the payment schedule.

5. The Parties entered into that certain Third Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill ("Third Amendment") as of July 1, 2011 extending the term of the Lease to June 30, 2016, and amending the payment schedule and the right to enter section.

6. The Parties entered into that certain Fourth Amendment to the Lease between the Morgan Hill Unified School District and the City of Morgan Hill ("Fourth Amendment") as of July 1, 2016 extending the term of the Lease to June 30, 2021, amending the payment schedule and adding a maintenance section. The Lease and the First Amendment, Second Amendment, Third Amendment, and Fourth Amendment thereto are attached to this Amendment collectively as Exhibit 1.

6. Pursuant to the terms and conditions set forth below, the Parties desire to extend the term of the Lease of the Premises another three (3) years.

Ill
Ill

Page 95 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D

AGREEMENT
The Parties Mutually Agree as Follows:

1. Section 1.02 (erroneously referred to as Section 1102 in the Lease) of the Lease shall be amended in its entirety and replaced with the following provisions:
"The term of this Lease shall expire June 30, 2024. On or before January 1, 2024, Tenant may notify Landlord that it wishes to extend the Lease for up to another two years. If Landlord consents to such extension, this Lease will be extended for up to a two-year period upon the same terms and conditions in this Lease as amended, except as jointly modified by the Parties in writing. This Lease may be terminated by Landlord or Tenant with or without cause prior to the expiration of the term of this Lease with at least three hundred sixty-five (365) days' advance written notice to either Party. In the event of termination, Tenant shall pay Landlord a prorated amount from the beginning of that current year through the end of the termination period."

2. Except as amended by this Amendment, the Lease shall remain in full force and effect.

In WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth In the first paragraph.

CITY OF MORGAN HILL
CHRISTINA J. TURNER
City Manager
City of Morgan Hill
APPROVED AS TO FORM:
�
OocuSlgned by:

By: �'• a/J bad:iM
DON BE1f?'3�RKIN
City Attorney
City of Morgan Hill
ATTEST:
�OocuSlgned by:

By: y,�1,J\.. g,at.l°"'
MIC �'E•B16ffOW
Deputy City Clerk
City of Morgan Hill

MORGAN HILL UNIFIED SCHOOL

DISTRICT
By:

STEVE
�

BETANDO
Superintendent
Morgan Hill Unified School District

Page 96 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D EXHIBIT 1 FOURTH AMENDMENtt TO LEASE:

B£TWF:EN THEMORGAN HILL lJNIFlEO SCJ-l()OL DISTRICT
AND THE CITY·OF MORGAN HILL
'CORPORATION YARD LE.�SE
This Fourth Amendment ("Amendtnenf'J to the Lease between Morgan Hill On.ified School Dist· rictrrnstrict" or ''Tenant") ancl the CityofMorganlim (''City" or llLandlord'.'), dated May 2·21 2000 (',-Lease") is entered into as ofi]'uly 11 2.Ch6. Landlord and Tenant may he referred to collectively as the "Parties" fri this Amendment.

RIWITALS
The following . 1:ecitals are a substantive partofthls Amendment:

1. Landford is. the owner of certain real property{the ''Property'') described on Exhibit A to the Lease.

2. Puusuant to the LeaseJ,Landlord fra,sleased a portion gfthe Property (the

''.Premises") as described on Exhibit B to the Lease �o Tenant

3. Landlord and Tenant enter�d into that certain F;rst_ Amendt ;nent to the Lease
B�tween the Morgan Bill Unified School District and th� Cit y of Morgan Hill
("Fi.rstAmentlment") as ofJuly 1, 20061 extending .the term .of the Lease to June 30; 201:0, arnendingtne payment schedule, and deleting the section regarding rent establishment upon extension.

4. Landford and U'ena,�t entered •into that t:ertain·second Amendment to the Lease J3etween the Morgan . Hill Unified School Di�trict and the Cjty of Mor.gan Hill (''Second Amendment") a$ ofluly 1, 2010 extemding the term of the Lease .to June 30, 2011, and am�ndingthe·payment schedule.

5. • Landlord and Tenant en.terecUnto that certain Third Amendment to the Lease Between the Morgan Hill Unified School Distri.d: and the City of Morgan Hill ("Third Amendment") as ofJuly 1, 2011 :extending the tern1 of the Lease to June 30, 2016, and amending thepayment schedule and the rigllt to enter section.

The Lease and the First Amend-ment, 'Second Amendni.ent,. and Third Amendments thereto are atta.ched to this Amendment co11ectively as Exhibit A. 6, Pursuant to the terms and cohditions set forth below, the .Parties desire to extend the term of the Lease of the Premises another five (5) years and to make cert?in further a�endments to the Lease.

AGREEMENT
The 1Parties Mutually Agree as Follows:

1. Section 1,02 (erroneously referred to as Section 1102 in: the Lease) of the Lease shall be atnE:nded in its entitety and replaced with the following provision:
''The tertn of th.is Leaseishan expire June 30., 2021. This Lease,maybe terminated by Landlord or Tenant with or without caus,e prior to the expjration. ofthe term of this Lease with at least three hundred: sixty-five (36S) days' advance written notice to either Party. Ju the event oftennination, Tenant shall pay Landlord a ptorated amount from the beginning of that current year through-the end of the termination periocl."
1

Page 97 of 286 ends

DocuSign E!1velope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D 2, Section 2.01 of the Lease shall be amended ,in its entirety and repiac,ed with the following provision:
•iRent shall be paid quarterlya.s follows
Period Annual Payment Quarterly Payment
.7 /06 -6/07 $151,800.00 1
$37,950.00
7/07 -6/10 $155J0O0.0O· ·$38,750�0
7/10 -6/11 $155,000.0Q "$38,750.50
7 /11 - 6/16 $72;000.00 $18,000.00
7/16 - 6/17 $81,900.00 • $20,475:00
7/17 ... 6/21 Rate :determined by .lmpli�it Prjce Deflator for State and Local Government Purchases ofGQods a_nd Servic�s.

Beginning in the fiscal y(:!ar st�r:tipg inJuJy.2017, Annual Payment shall be increased annually; The amount ofinprease shall be the pet:centage <:hange in the annual -average vah1e oftfo� Implicit Price Def
lator for Stat� and Local Governrnent:
.Purchases .of Goods and Servic-es for the United States, as published 1bytlte United States Departmentof Commerce for the 12•month period ending in the third quarter of th.e prior fiscal year, This percentage c;hange shall be determined using the latest data available,as: of May 1 ofthl;! preceding flscal year compared with the annt
ial average value of the same (;leflator for the 12�month period �nding in the third quarter of the secm:id preceding fiscal year, 11sing the latest dat� availa�le as of May 1 .of the secqnd preceding'fiscal)reat; as reported by the State Department of Finance. 11he Partie_s' intention is to align the annua1 increases to th.e cost ot'living adjustment provfdecl. to-scliools as defined in California Education Code Section 42238.1.
'rhe rent shall' be d:ile to Landlord on the first day of the following months: January, Aprill Ju]y, and October, A onetime ten percent (10%) late fee shaU apply on an¥ amounts wbich remain unpaid sixt7 (60) days from the .due date:1

3. Sec:tion 5.02 shall be added to the Lease to include the f<)llowilig provision:
11Section 5.02. Maintenance
The ongoing and roqthie operations and maintenance (indud.i,ng land,scaping, grounds maintenance, and custodial services) of the Pl'ern.isef facilities, furnishings, and eguipment ar� the responsibility .of Tenant. Routine maintenance is that r€curri11gmaintenance to ,properly maintain a: �ystem or asset during its useful life, gl;!nerally of a less costly nature, and not involving a replacement of an entire system dueto an age-related failure. Examples of routine maintenance include replacing of filters on HVAC units, replacing light bulbs or ballasts., trimming of trees1 maintainingbf grass. and groundsi replacing irrigation components, and replacing w.indows, door Iocks.1 breakers,. or individual. parts ,pf aJiy systems not involving-a major component which nee.ds . to be replaced due to ,age-related or impending failure.

Landlord is responsible for major maintenance; which indudes the major repair or replacement of pl:umbing; heating, ventilation, air tondmoning, electrical, roofing, underground tanks, wan systems1 floor: systems, paving, �nid exterioi' and interior painting. Characteristically, these projects represent a. significant ihvestrn�nt with an expenditure criteria n:0t unlike that required for capitalizing an expendih1re as a cap"ital asset1 nonnaHy mm·e th.an $5,00.0.
2

Page 98 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D Where a difference of opinion exist,s as to the nature of the proposed maintenance work (routi.ne v.. major), both F�rties will use best effo11ts to come to an agreement.

Absent an agreetnent, both Partieswill.agre� upqn an independent expertto determine the proper expense allocation. The cost ofthis inclependen't expertwHI be split equ�Uyby·the Pa�ties."

4. Except as amended bytbisA.n)endrn�nt,tbeL¢ase sh:aH remain in full force:and effect.

The individuals executing this Amendment represent and. warrant that they have the leg� capacity and authority to do so on.behalf of their respective entities. lh WiTNESS WHEREOF, the J?arties have executed this Arilendment as ofthe effective date set forth above.

CITY OF MPR(iAN HJLL

STEVE RYMER
City Manager
City of Morgan HiU
APPR:OVED AS TO FORM:
...

A'l'?'E T· • J; l { '
By: • . r��lCHEL E
Deputy City Clerk
City of Morgan Hill
MQRGAN HILL UNlFJED SCHOOL
DISTRJ
�
CT
By,
STEVE
______
BE�'AN!DO
Superintendent
Mol'.gan mn Unified' School District

Page 99 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93O8-B70E5826AC6D Exhibit A

THIRD AMENDMENT
TO
LEASE
eawE�N MORGAN HILL llNIFfED SCHO.Ol DISTRICT
ANO
C1TY OF MORGAN H1L:L
CORPORATJON :YARD LEASJ:

Th!s thlrd�mendment (''Amehdmenf)t9,,fhe Lease between Morgan Hill Unltied School District and the CUy of Moigan Hill dated May 22, 2000 ('tease") is entered into a& of July 1, 2011.

Rec-ltafs
A. The Glty of Morgan Hill ("City• or"Landlor<i"} Is the owner of certain real propert
y ("Prop1;1rty") described co ExhlbltA lo 1he Lease.

B P�rsuanuo the Lease. landlord has leased � portion of the Property (the 0 Premlses•) as de$ctibed on Exhibit 8 to the Leas,e to the Morgan Hirl Unlfied School Djstrict {"01stritt8 or ·renanf'J.

C, The City anti the OjstrjQt,enlered intc, a First Amendment to the le-ase (•Rrst Amehdment"} a,s .Qf July t. 2006. extending the term of the t�ase to June 301 2010 on the same lerms and conditions as ·the tease.

O. The City.and the Districtenterecil intoa Second Amendment to the Lease (
PSeco11d·Amehdment•) as of July 1,_2010, extending the farm of th� L�ase to .June 801 2011., on the same terms and condition� as the Lease ..

E. Pur$uanno the tenns and<:onditions·$81f9rth below, the parties desire t-0 extend the term of the Lease of the ·Premis�s another year and to make certain further ·amendments to the lease,
Agr,ament

1. section 1.02 (erroneously referred to as Seciiori 1102 in the lease dated May 22j 2000) of 1he Lease shall. be amended inns entirety and replaced wlth the followlng provision:
�The term Of this Leas-e shaU expire June 301 2016. This. Agreement may be Jarrrunateq by Landlord or Tenant with or Wfthout cause prior to the expiration oMhe. term of this Agreement with at Jeast three hundred $i}(ty--flve (365) days advance written notice to either party. Ten.ant shi;lll .pay Landrord a prorated atnc,nmt from the beglhnlng oflhat current year through the end of the termination period."

2. Section 2!01' of the Lease shall be �mended Jn its entirety and rept�ced w1th the followln,g provision:

Page 100 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D "Rent �hall be paid quartetiy as Jol1ows:

Periog
7/06 -6/07
7107 ..- 6/10
7/10-6111
7}11-6116
.

Annyat Bgyment
$151.800.00
$16.5,00Q.00
$155,000.00
$72,000.00
Quarterly eavroftnf
$37,950,00
$38,750.50
$3�750.50
$18,000.00
The rent$hall'be due to the Landlord on the first day of the following months:

January. April,JUlyand October. AQne•time ten percent{10%) late fee shall apply on .any amounts which remalnunpald si,«y (60) days.from the due dale."

3. Section 3,04 pf lhe Lease shall be am�nded i.n its entirety and replaced with the follo�ing ,provision:
"Landlord reserves the right to enter and inspect the Premises and Property at any Um�. upon reasonable advance notice to the Tenant Furthermorej the L�ndlor<i retains ffie :right to access the portion of the Property north of the Premises at all times without ooUce. to the ien.ant."

4. Exoept as amended by this Amendment the Lease shall remain In full force and effect.

IN WITNESS WHEREOF, the parties have exeC4ted this An,endment as of the date set forth .in the first paragraph.

LANDLORD;
Cftyof�
Morgan H'
By: , ..
.
•. •.
� 'D 5reve-K.yr.�
Crty Manager
TENANf.:

Morgan HUI Unified 'School District
By; �--;L---- e/2:r,/JL
Dr. Wesley Smith
Superintendent
WVDanny
City Atlo
C\ tl1 'AHVv�--3
o1l\q \ \3
ATTEST:

City Cierk1 �

Page 101 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D

SECOND AMENDMENT
.TO
U:ASS
BETWEEN•MORGAN Hl'�L UNIFIED SOflOOL OIS1RICT
AND
CITY OF MORGAN HflL
CORPORATfON YARD LEASE
This second amendment {
11Amendmenf) to the Li:las$ between Morgan Hill
Unified School District and the City of Morgan Hm dated May 22, 2000 ("Lease") Is entered lpto as <,f July 1, 201 o.

Recftals
A. The City of Morgan Hill (''Citt or 11
landlord11
) Is 'the owner of certain real
property tProperty'') descrtbed on· Exhibit A to the Lease.

B Pursvant to the Lease, landlord has l,eased a portton of the Property (the "Prem.leas�} as dascrlbed on Exhlblt B to the Lease to the Morgan Hin Unified School Ol�trfct (
11O1s trtot.• or -r�nant•,�
C, The City and the District entered Into a Ftr:stAmendment to the Lease { 11Flrst
Amendment") a� of JtJly 1, 2006, extending iheterm , c,f 1he Lease to June· 30, 2010 on the same terms and conditions as the lease.

0. .Pursuant to the terms and oonditk>ns eat forth below, the p.arttes desire to extend the term of the Lease of the Premises another year and to make certain iurlher amendments to the Lea$e-.

Agreemeflt

1. Section 1.02 of the Lea&e shaH be amended Jn Its entirety and replaced with the following provision:
"The tenn of thls Lease shaUexplre June 30;1 2011.'1

2. SeoUon 2.01 of the Lease shall be amended In its entirety and replaced wlth the following provision�
,c..._....llJ!l�•"��•u1��•1l"'1'f.<,•rtlolittll1,..»��\IOOQom11,«i,1n,1 Ratify Renewal Of CQtporatlon Yiird Lease Agreement ATTACH .Oocx

Page 102 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D "Rent shall be patd quarterly as follows:

Period'
7/06-6/07
7/07-6/10
7l10-Blt1
8noua1 Paymtmt
$151,800.QO
$155,000.00
$155;000�00
Quarterly P?l)!ment
$37,950.00
$36.750.50
$38j750.50
The rent shall: be due to the landlord -on 1he first day of the foflpwlng months; ,Jantrar:y, April. July and October. A one--Ume ten peroent (10%)-tate fee shall apply on any amounts which ,remain unpalct sixty (60) days from 1he due date.

3. Seotipn 2.02 is deleted 1n Jts entirety.

4. Except as amended by thl$ Amendment. the J.,e�se shall remain In full force and effect.
iN WITNESS WHEREOF, the parties have executed this Amendment as of the date �et forth fr, the flrs.t paragraph.

LANDLORD:

City of Morgan Hill
By:...4t�;::::::L_ __ J" Edward Tewes
CUyManager
A
Approved as to Rlsk:
1� �-�
Kevin Riper
Rh?l< Mana9er
ATTEST:
rn �� &RAM�2-
By:-+-��====---..
�. -
Superintendent
�-.Md,.-llQN�btilkll.'l),11�,t...,mill'B�tdo-�\OIOQqtl'll\1imr�1-1• Ratify Renewal Of Corporation Yard Lease Agreement ATTACH.Pocx

Page 103 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D

FIRST AMENDMENT
TO
.. LEASE
BETWEEN MORGAN HILi-. UNJF1Eb SOliOOL OtST.�ICT
AND
¢1TY O.F MORG.AN HU .. L

CORPORATION YARD LEASE
TMs first amendment ("Amendmanr) to the le&se between Morg�n HIii Unified.

School 01strlct and the City of Morgan HUI dated May 22,. 2000 ,f1Lease") rs entered Into a.a of July. 1
.
, 2006.

Rec1�18
A. The Ctty CJf Morgan Mill (
11Clly11 or lllandlord") Is the owner of oertaln reat
property C'Property'1) described cm ExhlbltA to the tease.

B Pursuant to the Leas:&, Landlord ha& leased (;l portion Qftha f>r()pe"y (the 11Premlses"} a.a desor.lbed on Exhibit B to the t,&ase 10 tha Morgan lim Unlfted School District f'Olatc1oiw t1r "-ter\anf1).
c, The Lease :PT?Vldes .
that on or before July t, 2006, Tenant may notify
Landlord that It wish8$ to extend the lease for:ijnoth8r: one�year perl,od. l'ehaht 'has so n.otlffed Len�rord�
D. f>U1'$1Jant to 1he lenns and oond[tlons set forth below. the partfes desire to extend the term of the Lease of the Prem1ses and to make certaln further amendments to the.Lease.

Agreement

1. Section 1.02 of the Lease sh�ll be amended In lta entirety and replaoed wlth the following provlslon:
11Tfle term ,r,,f thls Lease shaU expire June 30, 2010_'_

2. Section 2.01 of lhe Le�se shall be .amended tn IIs ellllrety and replaced w1th the folfowing provision:

Corpc,ranon Yard Lease Am�omant
1Ul1012006

Page 104 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D 11fieht shall be patd qua,t$rly as: f.onows:

Period
7106-6/07
7/07-6/10
l;.nnual Payment
$151 isoo .oo
$155i000.00
QuarwrJv Pavmoot
$87.960.00
·$Sth750.50
The rent shall be due to the Landlord on the-first day of the following months� Januaryt April, �uly �nd Ootober. A 011e--t1me ten percent (10%) fate fee shall a·ppfy on any .amourr
ts which remi;!.ln unpl!;lic;f sixty {60) d�ys r rom me due da.te. 3, ,Sectloh 2_02 Is deleted In Its entirety,

4. Except �s atnended by♦hls Amendmant, the lease shall remain ln,full force and effect.
lN WITNESS WHEREOF, the parties have executed thl$ Mendment as of the date SE'.lt forth lo the nist para,gr�ph ..

LANDLORD:

ClfyofMorgc1n Hfll
fl\l; �ewes
City Manager
Approved ss to Form:
. �<-tt;;;t'T -
C.. J C.Kem
:ttorney
Corporation Yard Lepsa Alnet1dmsnl 2
10/10/200$
TENANT:

Page 105 of 286 ends

OocuSign Envelope ID: 43C2F2O�-7CD7-4748-93O8-B70E5826AC6O LEASE
• Blilt'WERN MORGAN HILL IJNIFlliD SCHOOL DISTlUCl'
AND
TBE CITY OF MORGAN HlLL
l'J.UMMBLE AND RECITALS
nus LEASE (
11Leese�1
) is ente�td infQ on Uus Z2nd day <>f May 2000. by and be.tween the City .ofMo.rgaQ Hf Ii C'LancUurd") and the Morgan HiJt Unified Scboo1 District ("Tenant,'.)- . .

A. Wl1eteasJ; LM.dlord is th� owner of certain real property (4'Propeny1') in tl1e county of Santa Ciera. :$tale of California� ·de.scdbed on Bj(bibit 4'A'' wh1�1� ls attached .w,d made �part of this lease. Landlord. desires to lease a portion oflhat Property .to Tenant) wmoh portion of 1he Property shall be referred fo in this lQlUie as � 1tbe
hemlses.'' The Prernis'es consist of �pJ)to�mateJy .3 -42 acres wllh a 9�900 square foot ,bui1dillg, a parking Jot and undergrolltld 1-torage tanks located at the lnmsporta"on S\\tvices Building, 105 Edes Cottf¼ Morgan Hill� Calif9rnia. The PR.mises are shown on B>thiblt 11B
1 \ attaobect hetet9 �d1 incorpornted herein,
13,. Whereas, the City �d District fanned the Coi:por.ation. Y�d Commission,, a joint powcts aufhority, in 1975. Jn inldlti{).n� in May l97SJ the City a110. Districtente1ed into a lease.agreement whereQy U1e Cil;Y le11!!,ed aponlon of:the Co1poration Yard to the.Dlsb'lct. ThaUeese has'been ex.tended on at least one•()pcasi(>h.

C. ,Wberees, Ten.ant desires to enter into a successor lease tQ lease the Premises for ui,e .us a. bus barn for fueling of gasoline and diesel fuel, bu11 and vehicle rna.interi�c�, parldng an9 waslilng.

Section 1.01.

AllTICLltt
LEA.SE OF PR.EMJSES ANDTEnM OF LEASE . - '
�
Agreement to Lease,
Lllhdl�.rd hereby agrees to lease tl1e P1emises 10 Tenau!, and 'fonant agrees to lease the Premises from Lttnd.lor<t on ihe tenns e.nd conditions set fortll in this: lease Tenant �olmowJedges tJ1et Lanalord has med� no represen1ation or warranty regarding 1h� coodition of the Premises ·or the Property. 'flle City has no knowledge of any hazardous condition on or under 1he property other than that which is the subject of �fo1gan Hill Unified School District v. 1',1inter & Fahy Construction Compaoy1 Inc., Santa Clara County Superior Court,, Case No. CV 772368.

Page 106 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D Section 1102. Tenn of Lease
The teun of this.Lease shaU be for a period of seven y.ears. com.mench1g on 1he <,ffeelive date set forth above. However, by July 1 of:finy year Tenant.may serve notic.e oflts Jntent to tenninnte .tha lease effective Januacy 1 of the next yea,r. On or·before Ju1y 1 in tbe year 2006, Tenant niay notify Landlord that it wishes to extend· the lease for another one."'.ye!ll period. If Landlo1tl c1.maents to suoh extention, this Lease will be .extended for a one-year period up1m th'3 sanie terms and conditions in this dQoument, ,except as jointly ntodified �Y. the parties in writing. The rent fcir �Y �dclit10m1l year lease period.shall be the fair market rental val1..1e at the beginning of the ·e){tension -as dctennin� by LMdlord and Tenant, Shcillld Landlord not consent to suQh extension, and desire to ·rent the Pnmuses to a 1hird party, Landlord must offer Tenant � first tight of'refusal to rent the Premh;es on "the sam.e terms and �n�itions as L1mdlord is wilUng 1o rent the Premises to ca third party, Te11antsbal1 bave thirty (30) r;lay$ from the-date ofn.otl�.ation. by Landlord ofits 'intention to rent to a tll
ird p.arty snd of tlw flccept11ble tem1s and conditio� to exercise tbe righLQf first .refusal. by notifying Land.lord in writing of its intent to nocept t1te tenns end eonditio.ns $et forth by L1l0dlord.

Section l -03. No J,>artnersblp or Joint Venture.
rortIJe pUrJlos� of '!liis J.,eare, nothing in this L�e sh!lll be conslrOed to render the Landlord and Teoant in any wiry or for- 1illY pwpose a partneJ:, Joint ventwer. or assoc\11-te. in wiy relationship with the other1 other than. that of tandlord �d Tenant, not shall this lease be construed to antborize either to act as agent for the other.

Section 2.01. Payments
ARTICLE2
REN'll
Within ten (l 0) days from execution of the Lease by all Pimies,. tenant .shaU pay Landlord a prop rated. amount from 1he date of execution to Decembet 31, 2000, based upon $45,000 per year tent1 for Jhc first year's Hmt. TI1ereafu:r1 rent shall he paid quarterJy as follQWa:
� Annual fmiment QuBJ16Jb' J,?ayment
2001 $ 62,800.00 $15,700.00
2002 $ 80,600.00 $20,150.00
2003 $ 98,400,00 $i4,600 .. 00
2004 .$116,200.00 $29,050.00
2005 $134,000.00 $33,5S1
>:00
2006 $151 ,soo.oo $37,950.00
2

Page 107 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D The rent shall be due to the Landlord on the fll'st day of the following m.onths: January, April, July and October. A one-time ten•perce.ni (10%) penalty sha11 apply 011 e.ny amoM� which remai.n. unpa1d sixty {60) days from the due <la1o,
Section 2.02. Rent Establi11hment upon Extension.

Should this lease �e extend�d pUWU!Ult to SecLton 1.02 :above1 the rental sbaU be set at the falr maxket valu� rental ("FMV"). If the parties tannot mutually Jlgt�e uptm the FMV, .it shall be' estabJished by an independent .ippraisaJ by an af>pµtlser muttmlly agreed upon by the parties.

Section 3 .o 1. Permitted Use.

ARTICLE3

USE OF PREMISES
Tenant shall use tbe Property end Premises solely for tbe purpose 1>fa bus barn. including fueling of gasoline and dieS:el fuel only, bus and vehicle nw.inlen1mce, patking and washing. Tenant shall not \lSe ol'. pern* 1be Property ?,nd J,>remises to be used for any otl,er puwose(s) without Landlord's written p.rior consent. Ally use by o.r fOJ the benefitofa priVate third party must.have 1he Landlord'·s :prior written con�ent� and Tenant sl1a.U ifidel'Qnifyi defench and hold harmless Landlorij :from iimy damag� arishJg o:utof such use. Land)Qrd ackno,vledges fuat Tenant bas, from ti.rn� to ti.me. allowed other goverrun.ental entities to ust, the fu,eling stations and majntenance operations. LMdlord agrees that such use may continue, however, T,enan:t s)udl tlme)y notify-the Landlord of tha ide:ntify of such entitles, and shall indemnify, defend and ht>id hami3ess Landlord from any d!Unages arising tmt ·of such use.

Secticm 3-02. ·Compliance: with l,aws llt'.ld fayment ofFees.

Tenant shaU, at Tenant':S own cost and expense} pomply w1tb all statutes, ordinances, regulations, and requirements of all gov.etnmental entities, both fedeuil and state and county or mwucipal, whether those statutes, ordinances. regulatlom, and requirements are now in force or are subsequently en�cted. I
f any license, pennit, -or other gov�
tnmental authorlzation is required for
the lnwful use or occupancy of the Premise� or any portion of tl1e Premises, the Tenant sl1aU pwcttre au� maintain it lhtoughout the term of tltis lease. 3

Page 108 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D Section 3.03. U�e of H�ous Materials.

Tenant shall uo1: cause or pertnit any Ha:tardous . material, as defined below, to be generated, brought onto, us.ed, stored, •tlr disposed of in.or about the Pr�mis�s or the P,.-operty by the Tenant or its agentsj e111eloyees, contx-acto.rs, or invitees, except for such subSliUlces tha:i are required in the ordinary conrse of TenrmVs use as defined in Section 3.01 :above, qr as otherwlse approved by Landlord, Which c,onse�hball nl.lt be reasonably withheld. Teua.nt shnll use, store and dispose of all such Hawdous matedal in .strict oompliance with aH ipplicable statutes, ordinances, and regulafforni t111rt xelafe to publie healthy, safety and protection of the environment. Tenant slmll comply with all environmental laws in effect during the tenn of this Lease. Lamltord acknowledges the pre-existing hazardous materials condition referred to 1n Section 1.011 and this seotlon shall not apply to this pre-�xistlng condition �xcept as suo'h condition is unlmown to C:ity f,IS tlf dale of e�eoutlon of tliis lease.

Section 3.03.02 . Notlce of Release or lnvestign1io1l,
.Jf, during the Lease tenn (including any ex�ensioJ1s)1 Tenant becomes aware of (a) any nchl.al or threatened release of any hazardous material :on, under, 01 about 1he Premises or Property wlrloh may result jn admlnJstratlv,e or coUlt ifl�tion, or (b) any inquhy, investigation, pro1:eedb)g1 or olnim by MY, governmental. agency or other person regardillg 1he presenc� ofhazardous mt1.\crial on1 unde.11. ox about the Premises or tliel'_l"opelfy. Tenant sludl give landlord written notice .ofthe release or investigation within five (S) <lays after leaming of Jt a,nd shall shnulta.neously furnish to Landford, oopjes qf any olaims. notlefl of VlOlation, reports, or other writings recelved by • Tenant tl1at concern the relense or investigation, Tenant agtees and aclmowledges that lt bears the responsibility of cletermining whether a particular acti1al or threatened release meets the orileda for reporting such release lo Landlord, arid agrees to assume all liability in connection with making suah determb11ltion.

Section 3 .03.02, Remediation Obligations.
lf the presence of any J1azardolls material brought onto tlle Premises or the Property by Tennnt or Tenanfs employees. agents, contractors, or invitees results in contamination, Tenant shaJI promptly t!llce all .necessary actions to remove or reroediate suoh hllZfl.rdous materials, at Tenant's sole ,expense. and shall rehnn the Premises or Property to the .condition U1at existed before the jnttoduction of sucl1 h�erdous materials. Tenant shall first obttiin Landl6rd1 s approval of the
proposed removal or remedial notlon1 which approval shall not be unreasonably wilhhe, ld. Thls provision does .no1 limit tlie iodemnificatioh agreement set forfh above. Landlord Eltknowledges U1e pre-existing l1azardoµs materfol condition referred to in Section l :o I, and thil'i secOon shall not apply to tllis pte-existfog condiHon except ti
s such condition Is \ID,known to City as of date of
execution ,of 11:us Lease. Teuant agrees and acknowledges that it bears the. responsibility of detemtlnlng whether a particular actual or threatened telease results in "r.ontaminalion,'' and ,agrees to assume ;ill liability in connection with making such dete1mination, 4

Page 109 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93O8-B70E5826AC6D Section J.03.03. Definition of'.'Hazardous Material(s)�" '
1Hazardci11s m�teria.l(sY' means any hazardous ot ·toxic i;ubs(an<!e, m!lterial, or waste of any ooncentration th11:t e�ceeds slate or federal maxi.mum concentrations or action levels as detemrlned by the appto_prle.te oversile committee, or that is ot becomes regulated by the, federal, state or_ any local. govemment authority, including as tl1e term ls defined in CER.CLA1 RCLA, mt)' fed�:ral1 state or local governmental definition� petroleum pro�uots, radioactive materials, :asbestos in any form or condition, MTBEs, PCBs and substaJ;ices or ,compounds containing PCBs.

Section 3.04. RJght to Enter and Inspect.

Landlord reserves the right to enter and inspect the Premises and Property at any time, upon reasonable advance notice to Tenant.

Section 4.0L Improvements.

ARTICL,E4

IMPROVEMENTS
Exbll>it °C11 contains a Ust. of existing improvements to ,the Property that shall be co;nsidered Tenallt>s at the end ofthe Lease and a list oHmprovementsthat shall be considered Landlom's at the eod of the Lease. Tenant may make improvements only witl1 the ptior wtt�n consent of the Landlord, and only those .improvemerits1 which are consistent with the uses, stated in.

Section 3.01 apove. Jury improveme1nts J:ennnt ma1ces to the Property aft�r the effective date of tfois Lease that are fixtures (e.g., those items wfixed lo the land by roots1 (?r imbedded in the land, such as a building or permanently attached to such items by means of cement, plaster, naili;, bolts or licrews) shall be considered Lmidlord's, uhless Landlord and Tenanl agree otl,)etwlse in writing. Any improvements 1l1at Tenant m�ea to the Property after the effective date of thls Lease that are not fixtures shall at Tenant
1 s option prior to the end of the Lease. be considered Tetiant1
s and may be removed by Tenant withln sixty (60) days of the end of the Lease at 1enant's cost; provided lmwever, that if Tenant does not remove these improvements wjtltln sixty (60) days of the end of 01e lease, the Improvements shall become the.property of Landlord. 5

Page 110 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D Section 5.0l.
·ARTICLES,
• UTILITIES> SAFE AND CLEAN CONDITIONS
AND �.l,LICATION OF INSURANCE PROCEEDS
Utilities, Safe and CJean Conditions and Application of Insurance Proceeds
Tenant ,shall pay or cause to be paid, and Jm)d Land.lord and the property of Landlord including the Premises free and haxmlcss from, all charges for the furnishing of gas, water, electricity, telephone service�-and other public utilities, including garbage and trash collection and custodial services wid any other such services to the Premises <luring tlie tem1 of this Lease. Payment for utilitie.s ui;�d by Tenant at the Prem�sos shall be the responsibility of Tcn8.Ilt.

Tena.tit shiul control the utilities for the }?1emises. At all times during the tenn of this Lease Tenant sliall, at Ten8.Ilrs sole cost 8.Ild eipensei keep and maln1a111 the Premises and all improvements to the- Premises in a safe and clean condition. Landlold sball have reasonable access to 1l1e Prentlses during business !lours and eme,g{'ncles for lnspection of the Property.

Any and all insurance proceeds that become payable at any 1ime during the tem1 of this Lease because of damage to or destruction of any improvements on the Premises shall be paid to Tenant and to Landlord,, and applied by Le,ndlord, toward the cost of repairlng and restoring the dntt:1aged OT destroyed improvements,
Section 6.01.

ARTICLE6
1NDEMN1TY AND INSURANCE
Indemnity Agreement.

Tenant agrees to indemnify. defend, and bold hannloss Landlord for any and all claims for liability or other claims for damagei; or claims for compensation, including but not limited to, any and all claims of llabHity for persona) Injury, death, contract daims and the like arising out of the negligent acts of omission 9r commission or willful act of Ten11J1t, Its agents, representatives, assigns or emp1oyees which occur during U1e term of thls Lense, including, wiU)out limitation, any liability, claim, loss, damage, or expense ansingby reason of:
a. The death or injury of any person, including any person who is an officer, employee, assii!n or pgent of Ten ant, or by renson of the damage to or destruction of WlY proJierly, inclnding property owned by Tenant or by any person who is an employee or agent of Temmt, while that person or prope1ly is in or on the Premises or in any way connected with the Premises or with MY of the improvements or personal property on the Premises;
6

Page 111 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D b. The death or injury of any person1 Including any person wbo is an officer, employee, assign or agent of Tenant, or by reason of the d?II1nge to or destructlo)'.} of any properly, ;ncluding property owned by 1 e)]ant or any person who is an emp1o)'ee or agent of Tenant, caused or allegedly caused by either {l) the condition of the Premises or some building or improvement on lt!e Premises, or (2) some �cl or omission on the Premises of Tenant ot any person in, on, or about the Prem.ises with the petmisslon and consent of T ennnt;
c. Any work perfonned on the Premises or materials fumished to the Pren1ises at the jnstance or request of Tenant or any person or entity �cting for or on behalf of Tenant; or
d. Teuant's failure to perform any provision of thls Lease or to comply with any requirement of law or any requirement imposed on Tenant or the Premises by e.ny duly authorized gove111ntental a_gency or political subdivision.

Tenant shall not be responsible for willfol or negligont acts of omission or commission leading 10 personal injury or otber liabllHy to tl1e extent caused by Landlord, lts agents, rep1esentatives, employees or assigns during the tenn of this Lease. However, any such liability shall be assessed on a proportionate fault basis between Lan�lord and Tenant.

Landlord agrees to indemnify, defend, and hold lumnless Tenant for �y and all chtims for liability or other claims for damages or claims for compensation; including but not limited to, any and all claims of liability for personal injury, death, contract claims and the like solely arising out of the negligent acts of omission or commission or wlUful act of Landlord, its agcJits, representatives, assigns or employees which occur during tbe term of this Lease, including, without lihlitalion, WlY liability, claim, loss, damage> or expense mislng by reason of:
a. The death or Injury of any person, including any person who is an officer, employee, assign or agent of Landlord or by reason of the damage to or destruction of any property, Including property ovmed by Landlord or by any person who is an employee or agent of Landlord, while th£1t person or property is in or on the Premises or in any way connected with the Premises or wlU1 any of the improvements or personal property on the P1emises;
b. The denth or injury of any person, including any person who is an officer, employee, assign or agent of Landlord, or hy reason of tho damage to or destruction of any property. including property owned by Landlord or any person who is an employee or agent of Landlord, caused or allegedly caused by ciU1er (I) the condition of the Premises or some building or improvement on the Premises or (2) some act or omission on the Premises of Landlord or any or any person in, on> or about the Premises with the permission and consent of Landlord;
7

Page 112 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D c. Any wori performed on the Premises or materials furnished to the Premises at the instance or request of Landlord or any person or entity acting for or on beha1f of Landlord; or
d. Landlord's failure to perform any provision· of tl_us Lease or to comply with auy requuement of law or any requirement imposed on Landlord OT the Premises by any duly authorized governmental agency or political subdivision, except as otherwise stated in this Lease,
Landlord snall not be responsible for willful or negligent acts of omission or com)nission leading to personal injury or other liability to fue extent caused by Tenant, its agents, representatives, employees or assigns during th� tenn ofthis Lease.

Section 6.02. Liabllily Insurance.

Tennnt shall obtain a separate policy ofinsurance, subject to Landlord's reasonable approval, for th� diesel and underground storage tanks, regardless of locntlon> including, but not limited Lo, above n,nd below gro1.md tanks, product delivery systems, pumps, lines, dispensers, and Dll apparatus and appurtenant thereto, which shall operate prospectively only and which Tenant shall maintain for the <lw:atlon ofthe Lease. Tenant shall pny 1111 premiums; Landlord shall pay nothing for such policy or premiwns or make any payments purs\lant tl1ereto. a. $2,000,000 for injury to or death of one person and1 subject to that limitation for the injury or death of one person, of not less thn,n $1,0001000 for injwy to or death of two or more persons as a result of any one accident or incident; and b. $2,000,000 for damages to or destruction of any property.

Th.ls insurance shaJl operate prospectively only. lt shall not cover any events occurring prior to tbe effective date of this Lease, nor shall it affect the rights, duties and obligations of Ln11dlord and Tenant willl respect to any Jitigation concerning events occurring prior to U1e effectlve date of this Lease.. Tilis Lease cannot be used for the purpose of exonerating or establishing liability for either Landlord or Tenant fo1 events occurring prior to the effective date of th.is Lease.

Section 6.03. Deposit of Insurance with Landlord.
tenant shall, wiUun JO days after the execution of this Lease and promptly thereafter when any such policy is replaced, rewritten, or renewed, delive( to Landlord a true and conect copy of e;:ach insurance policy re9-uired by this Article or a certificate executed by the insurance company or companies or their authorized agent evidencing that policy or policies.

Page 113 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D Section 6.04. Notice of Cancellafion of Insurance.

Each h1s1Uance policy required WJde): this Alticle sha.11 contain a• provision that it cannot be canceled for any reason unless at leE1sl 30 days prior written notice of t!le cancellation is given to Landlord in the manner required by 1bis Lease for service of notices on Landlord by Tenant Landlord, its officersi employees, agents and representatives, sl}a1I be !isled as co-insureds on all insurance Tenant is required to maintain l)\Usul!llt to 1hi� Lease.

Sec1ion 6.05. No Effect on Events, Obllgatlons, Rights, Duties or Litigation Ex.isling Prior to Effective Date of this Lease.

Notl1ing in th.is Lease slulll affect U1e rights, duties and obliga1ions of Landlord and Ten ant regru-ding any events that oocmred p1ior to the eff ecttve date of this Lease, No provision of this Lease shall affect the rights, duties and obligations of Landlord and Tenant with respect to any litigation concerning events ocouning p1 ior to the effective date of this Lease or be used for the purpose of exonerating or eslablishlng lia,bility for either Landlord or Tenant.

Section 7 .01.

ARTICLE7

ASSIGNMENT AND SUBLEASING
No Assignment without Landlord's Consent.

Tennnt may not assign this Lease or any interest in this Lease witl10ut the prior written consent of Landlord.

Section 8,0 I.

ARTICLES
DEFAUl,T AND REMEDlES
T ennination.

In the event of a Tenant default under this Lease, Landlord may terminate this Lease by sixty (60) days written notice to Tenant. AU covenants and terms contained in this Lease are declared to be conditions to this Lease, Should Tenant fall to perfmm any covenant, condition, or tenn contained in 1hls Lease and the default not be cured witl1in sixty (60) business days after written notice· of the default is served on Ten ant by Landlord or Landlord's representatlve or assignee of Landlord, then Tenant shall be in default under this Lease. 9

Page 114 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E5826AC6D Section 9 .0 J . Records.

AR'l'ICLE9
'RECORDS
Tenant shall m11infai11 accurate1 timely, and complete record� sufficient to demonstrate it has compljed with all its obligations under this Lease. The parties agree 1hat the standanis set forth in the audit repmt prepared by Dames & Moore, as modified by operation of statute or other regulation, regarding record maintenance on the fueling operations slmll be sufficient to meet the requirements of this pal'llgraph regarding 'tl1e fueling operations. Tenant slrnll allow Lnndlord access to :moh records upcin reasonable notice. Landlord shall have tlle right to perfonn nn audit on such records.

Section to.OJ.

ARTlCLElO_

MISCELLANEOUS
l�olices to Landlord.
.Except as otherwise expressly provided by law, any and all notices or other, communications required or permitted by th.is Lense or by )aw to be served on or given to Landlord shall be ii) writing and shall bo deemed duly served and g\ven when personally delivered or sent vla certified mail to the Ctty Clerk of the City (!f Morgan Hill, 17555 Peak Avenu.e, Morgan Hill, Califomla 95037-
Section l 0.02. Notices to Tenant.

Except as otherwise expressly provided by law, any and all notices or other ,commwi:ications required or permitted by this Lease or by law to be served on or given to Tenant by Landlord shall be in writing and shall be deemed duly served and given when personally delivered to Tenant, nny managing employee of Tenantj or, in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, addressed to Tenant at Morgan Hill Unified ScbooJ District, 15600 Concord Circle, Morgan Hill, California 95037, Al'tn: Director of Fiscal Services.

Section 10.03- Governing Lnw and lnterprelation.

Th.is Lease, and all matters re]ating to this Lease, shall be governed by the Jaws of the State of California in force at the time any need for intcrprelnlion of this Lease or any decision 01 .holding conccruing this Lease arises. Unless tlle context otherwise requires, 1l1e tem1 ' 1 day" sl1all refer to
calendar days. Subtitles are for convenience only and shall not be words of limitation regarding any provislott of this Leese. This Lease shall be deemed jointly drafted and reviewed by the parties, There shall be no presun1ption against the drafter of this Lease. Both parties sholl be deemed to have participated in the drafting of this Lease.

Page 115 of 286 ends

OocuSign Envelope ID: 43C2F2DD-7CD7-4748-93O8-B70E5826AC6D Section 10.04. Binding on Heirs and Successorn.

Subject to the restriction of assignment, I.his Lease shall be blndi11g on and sl1all inure to tlie benefit of the heirs. executors> administrators, successors, and assigos of the parties hereto, but )lOthing in this section shall be const.tued as a consent by Landlord to any assignment of th.is l,ease or any interest in tl1e Lease by Tenant .

Section l 0.05. . Partial Invalidity.

If any provision of this Lease is held by a court of competent judsdlction lo be either invalid, void, or unenforceable, tl1e remaining provisions of this Lease shall remain in full force and effect unimpaired by tl1e holding.

Sectlon 10.06. Sole and Only Agreement.

Jltis Lease, together with exhlbjts hereto, constitutes the sole and only agreement between Landlord end Tenant respecting the Premises and the leasing of the Pretnises to Ten ant and the Lerase te1ms set forth jn this Lease, and correctly sets forth the obligations of Landlord and Tenant to each other as of its effective dale. Any agreements or representations respecting the Premises, their leasing to Tenant by Landlord, or any other matter discussed in this Lense not expressly set forth in this instmment nre null and void.

EXEC'OTlON
This Agreement is executed t:in this 22m1 dny of May� 2000, at Morgan Hil11 Crulfomit:1.

LANDLORD:

APPROVED AS TO FORM:
�.-vul-/-.,�-
Helene L. Lcich1e1, Interim City Attorney
CcrpQtullcn Yard le.1,c drcf\, S/22/00 �dopllo11
II
TENANT:

M?rgan Hill Unified School District
By: _('t,�,v M��
Its: Superintendent
�&11)-- AITFJln �
lrma Torrez, Clty Cleu

Page 116 of 286 ends

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Page 117 of 286 ends

DocuSign Envelope ID: 43C2F2OD-7CD7-4748-93O8-B70E5826AC6D Exhibit "B',
Bounda,:y Description to Accompany Lease Aereement
Being a portion of Jots 8 and 9, as delineated upon that certain map entitled "Catherine Dunne Ranch Map No. 3°
, which map Was filed for record in the office of the Recorder of the County of Santa Clara, State of California, Book Hof Maps at page65, and more particularly described as follows:

BEGINNING at a point of common intersection of lots 8,9114, and 15 of said Catherine Dunne Ranch Map No.J; thence along lhe southwesterly line of said lot 81 North .24° 29' 00" Wesl 121,00 feet; thence North 65° 31' 00" East 420,00 feet; I hence South 24° 29' 00" East 352.00 feet; thence South 65° 311 OD" West 240.82 feet; thence southeasterly along the arc of a circular curv� to the right but not tangent thereto, with a radius of 50.00 feet, through a central angle of 18P0 00' 0011
• for an arc length of 157.08 feet; thence leaving said curve but not tangent thereto South 65° 31' 0011 West 79.10 feetj thence North 24° 291 ,QQ'' West 2.31.00 feet returning to said point ofbeginning, and containing
_

3.30 ncres ofland, more or less.

Page 118 of 286 ends

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Page 119 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-B70E5826AC6D ma-rmrr •
1c•
REMOVAL OF MORGAN HILL UNIFIED.SCHOOL DISTRICT

TRANSPORTATION PROPERTY
June 16, i999
The following preliminary list highlights equipment that would be removed from tl1e Corporation Y11rd Maintenance Facility (CYMF) prior to the facility reve_rting to the City of Morgan Hill;
Bus wash rack
Tire re.cks and shelves
Tire changer, bus coats hit 5000
Tire cba.nger auto FMC 76000
Tfre safety rack
Wheel balance FMC 5800
Tire spreader Branic (bus)
Snap on wheel balance·(bus)
Stock tires
All bus and automotive parts and supplies, belts, filters, etc.

Bulk oll tank nnd barrels
Upholstery and shelving
Benches and tables
Part washer
Fork lift
Hydraulic 30 ton jack
Shop tool box
Drill press
Mohawk lift LMF-12 12,000 LB lift
Sun Computer MCS4000 (scope)
Sun Smog Inspector
Bolts and nuts crib and shelves
Sun Alt Tester #1600
OTC 10 ton hydraulic shop ptess
Roc'kwell lathe
Hunter electronic balance
Baldor grinder #U 70 serial
Baldor grinder #fl577
Ammco
Sioux Valve grlnder#SB0
Ammco
auto brake )athe #7900
bus brake lathe #5000
J&T Ble dmm lift
Refiigerator, Signature .frostless 22
Wate{ cooler Elkay
Microwave ovens
Book shelves
Exhaust system
Steam cleaner
Four ship containers
Security cameras
Exhaust blowers

Page 120 of 286 ends

DocuSign Envelope ID: 43C2F2DD-7CD7-4748-93D8-870E�826AC6D

BOARJ) OF EDUCATION
MORGAN HiLL UNIFJED SCHOOL DISTRICT
Mnyf2.2000
Bonnie Branco, Assistant Su erintcndent of Buslness Services Presented by: Bonnie Branco, Assistant Su erintendent of Business Sexvfoes T e ofltem: Action
Over the course of tbe last several mcmtlis, the Corporation Yard Commission has met to prepare and review e draft lease for the propose] ofmait�laWng the transportation yard on the 3 42 acres Where tlie yard currently resides. Although the Disbict took action to extend the le.nse ou March 31, 1990, the current lease has been e>ltended by the District until the yeer May 7, 2002, 01e details of any extension were not enumerated.

The new draft lease specifies that the transportalion department will remain on th.is }lroperty for an additional seven years commencing on the effoctive date tWs contract is approved by tbe Board. This seven,-ycar lease may be extended annually on a year-to,,year basis with the City and the District in agreement on the 611DlO terms and ccmditions stated in this lease agteement1 or as jointly.modified by both pruties in mi ting. lf the District chooses to terminate this agreement, notification must be given to. the City of Morgan HiJJ by July 1 of its intent to tenninate the lease effective January l of the following year.

The City of Morgan Hill City Council approved this )ease on April 5, 2000. The final draft was presented for Board discussion at the Board meeting of May 8, 2000 and is returning for approval at the Board meeting of May 22, 2000. The contract will be dated to coincide with the Board adoption date.

RECOMMENDED ACTION:

Approve corporation yard lease for Ille transportation yard ADDITIONAL INFORMATION:

Attached: Draft of corporation yard lease with exhibits Available: Yes
BB:sr
000522 Corporcllon Y111d l�ll.\o ��lion
Item Number 414

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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, June 3, 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

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

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

RECOGNITIONS
Morgan Hill Toros 12U

Page 122 of 286 ends

June 3, 2026
2 CITY COUNCIL REPORTS
Council Member Iwanaga reported attending a Sister Cities Committee meeting, where updates were provided on ongoing activities and initiatives. She also participated in a South County Disaster Airlift Team (DART) event at the San Martin Airport, learning about regional emergency response coordination among neighboring communities and airports. Additionally, she attended a South County Regional Wastewater Authority meeting and toured the wastewater treatment facility, noting the extensive infrastructure, expertise, and operations required to provide recycled water services.

She also shared that she will attend an upcoming Upper Llagas Creek Flood Protection Project Committee meeting to receive updates on the project's progress.

OTHER REPORTS
Council Member Martinez Beltran recognized the 10-year anniversary of raising the Pride flag and provided an update regarding the proposed U.S. Immigration and Customs Enforcement (ICE) facility in South County. She reported on ongoing efforts over the past year and a half with state, county, and local leaders involving community outreach, resident education, and regional coordination.

Mayor Turner reported attending a VTA Subcommittee meeting, the Oakwood School graduation, and the Voices School end-of-year celebration. He also shared volunteering at the Morgan Hill Mushroom Festival, participated in the Mayor for a Day program with a student at City Hall, and attended a Santa Clara County Local Agency Formation Commission (LAFCO) meeting.

CITY MANAGER'S REPORT
City Manager Turner reported on a community workshop hosted by the Santa Clara County Local Agency Formation Commission (LAFCO) and shared that LAFCO has embarked on a countywide review of water and wastewater services. She also shared information about the upcoming Youth Action Council (YAC) leadership program for teens and recognized the recent graduation of participants from the Renaissance Entrepreneurship Program. She shared that the City will continue its partnership with the Renaissance Entrepreneurship Center for another year, offering business development, financial literacy, youth entrepreneurship, and access to capital programs.

CITY ATTORNEY'S REPORT
None.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public comment opened at 6:12 p.m.

Armando Benavides was called to speak.

With no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Page 123 of 286 ends

June 3, 2026
3 Adopting the agenda removing item 7.

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

MOTION:

Approving consent calendar items 1 through 5 and 9.

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

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.

2. APPROVE A CONSULTANT AGREEMENT WITH ADVANCED INTEGRATION

Page 124 of 286 ends

June 3, 2026
4 & 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.

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.

Item removed from the agenda.

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

Page 125 of 286 ends

June 3, 2026
5 2. Authorize the City Manager to execute the Agreement.

ITEMS PULLED FOR DISCUSSION

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.

City Manager Turner provided a report. Public Services Director Ghione answered questions.

Public comment opened at 6:21 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, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None

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.

City Manager Turner provided the report. Police Captain Ramirez answered questions.

Public comment opened at 6:26 p.m. With no requests to speak, public comment

Page 126 of 286 ends

June 3, 2026
6 closed.

MOTION:

Approving the recommended actions.

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.

City Manager Turner provided a report. Public Services Director Ghione answered questions.

Public comment opened at 6:34 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended actions.

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

Page 127 of 286 ends

June 3, 2026
7 11. RECEIVE MONTHLY BUDGET UPDATE AND APRIL 2026 FINANCIAL AND

INVESTMENT REPORTS
Recommendation:

Receive and file reports.

City Manager Turner provided a report.

Public comment opened at 6:35 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended actions.

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

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).

Human Resources Director Horta provided a report and presentation.

Public comment opened at 6:43 p.m. With no requests to speak, public comment closed.

Report Received.

PUBLIC HEARINGS

13. ADOPT RESOLUTION ORDERING ANNUAL ASSESSMENTS AND RELATED

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

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June 3, 2026
8 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.

Council Member Iwanaga stepped down and recused herself from the dais due to a conflict of interest.

Maintenance Manager Russell provided a report.

The public hearing opened at 6:45 p.m. With no requests to speak, the public hearing closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Vega
SECONDER: Council Member Martinez Beltran
AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: Council Member Soraida Iwanaga
ABSENT: None
The meeting recessed at 6:46 p.m. and reconvened at 6:50 p.m.

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

Page 129 of 286 ends

June 3, 2026
9 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.

City Manager Turner provided a report and presentation. Finance Director Nguyen, Budget Manager Delgado, Police Chief Palsgrove, and Public Services Director Ghione answered questions.

The public hearing opened at 7:17 p.m.

Doug Muirhead was called to speak.

With no further requests to speak, the public hearing was closed.

MOTION:

Approving the recommended actions.

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

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

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

Deputy Director for Utilities Services Sylvain provided a report and a

Page 130 of 286 ends

June 3, 2026
10 presentation. Tony Akel of Akel Engineering answered questions.

The public hearing opened at 7:52 p.m. The following people were called to speak:

Doug Muirhead
Armando Benavides
With no further requests to speak, the public hearing was closed.

MOTION:

Approving the recommended actions.

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.

Public Services Director Ghione provided an introduction to the item. Heather Gallegos and Anja Hamilton of the 2026 Leadership Morgan Hill Class presented their class project.

Public comment opened at 8:17 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

Page 131 of 286 ends

June 3, 2026
11 RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Iwanaga
AYES: Mayor Turner, Mayor Pro Tem Librers, Council Member Iwanaga, Council Member Martinez Beltran, Council Member Vega
NAYS: None
ABSTAIN: None
ABSENT: None

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.

City Clerk Bigelow provided a report.

Public comment opened at 8:27 p.m. With no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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

Page 132 of 286 ends

June 3, 2026
12 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.

City Manager Turner introduced the item.

Mayor Turner shared his concerns regarding Type 2 e-bikes and requested a future discussion on potentially banning the use of Type 2 e-bikes by minors under the age of 18. Council agreed to bring the topic back for further discussion.

Council Member Martinez Beltran requested a discussion of intergovernmental and other government agency presentations at City Council meetings. The Council did not agree to bring the topic back for discussion.

Public comment opened at 8:49 p.m.

Joe Baranowski (Zoom) was called to speak.

With no further requests to speak, public comment closed.

FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Martinez Beltran requested a discussion to review zoning code as it relates to environmental challenges.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 8:55 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

Page 133 of 286 ends

8 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE THIRD AMENDMENT TO ON-CALL REPAIR CONTRACT

WITH GOLDEN BAY CONSTRUCTION FOR A NEW TOTAL
COMPENSATION UP TO $1,200,000

RECOMMENDATION(S)
Authorize the City Manager to execute a third amendment to the on-call water and sewer repair contract with Golden Bay Construction with compensation up to $1,200,000.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Strategic Priorities 2026-2027
Fiscal Sustainability
Guiding Documents
Storm Drain Master Plan
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

In August 2023, the City entered into a contract with Golden Bay Construction, in addition to Anderson Pacific Engineering Construction, to provide on-call underground construction work supporting water, wastewater and storm water work. The intent of having multiple on-call contractors is to undertake emergency repairs while at the same time ensuring the best value for the City. The City requests cost estimates from on-call contractors prior to initiating work when possible.

Shortly after executing the agreement, the City utilized Golden Bay Construction to replace a sewer main beneath Main Avenue. CCTV inspections had identified significant deterioration in the sewer line between Main Avenue and the railroad tracks, requiring repair or replacement. The on-call contract allowed the City to complete the work ahead of a scheduled pavement project, avoiding the need to disturb newly

Page 134 of 286 ends

8 installed pavement in the future. During construction, additional deficiencies were discovered in service lines connected to the main, requiring supplemental work. The project was completed in October 2023 at a total cost of approximately $295,000, leaving approximately $105,000 available under the contract.

At the same time, the City continued to address infrastructure damage resulting from the severe storms that occurred in early 2023. By October 2023, one particularly challenging repair remained unresolved: a damaged sewer main impacted by a major hillside landslide. For approximately five months, City staff had been unable to secure a contractor willing to undertake the work due to difficult site access and challenging conditions. Staff contacted all City on-call contractors, as well as several specialized contractors, seeking assistance. Golden Bay Construction ultimately confirmed its ability to perform the work. Given the approaching rainy season and the potential risk to public infrastructure, staff determined the situation constituted an emergency and authorized Golden Bay to proceed.

On November 15, 2023, the City Council approved an increase to the Golden Bay Construction contract, raising the not-to-exceed amount to $750,000. The intent was to complete the landslide repair project while retaining some capacity under the on-call agreement for future needs. At the time the staff report was prepared, restoration work associated with the landslide repair had not yet been completed, and staff estimated the remaining work would cost approximately $350,000. However, restoration efforts proved significantly more extensive than anticipated due to substantial damage to private roadways that provided access to the project site. As a result, total project costs reached approximately $480,000. A portion of these costs was later offset by approximately $275,000 in reimbursement from the Federal Emergency Management Agency (FEMA) and the California Governor's Office of Emergency Services (Cal OES) for eligible storm-related repair expenses. Following completion of the work, the contract balance was fully exhausted. Consequently, on January 17, 2024, the City Council approved a second contract increase, raising the not-to-exceed amount to $950,000 to replenish funds for the remainder of the original agreement term, which is scheduled to expire on June 30, 2026.

The agreement currently authorizes the City Manager to extend the contract for one additional year, through June 30, 2027. However, only $15,234 remains available under the agreement. Staff is recommending a contract increase to ensure sufficient funding remains available for emergency repairs and other unforeseen infrastructure needs during the extension period. Golden Bay Construction has consistently demonstrated responsiveness and availability for emergency work and was the only contractor willing to undertake the complex landslide repair project. The company has also provided competitive on-call pricing. As with all on-call work, staff will continue to solicit estimates and quotes from the City's pool of qualified on-call contractors whenever practicable.

Accordingly, staff recommends increasing the Golden Bay Construction contract authority to $1,200,000. This increase will allow the City to continue utilizing the agreement through the one-year extension period and maintain adequate resources to respond to emergency and urgent infrastructure repair needs.

Page 135 of 286 ends

8 COMMUNITY ENGAGEMENT:

Not Applicable
Ongoing maintenance of City infrastructure, including emergency response, is an expected service provided by the City.

ALTERNATIVE ACTIONS:

The Council could choose not to approve the third amendment and have the City do a new bid for this work but this is not recommended as this would likely result in increased pricing due to current inflation.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council previously approved the initial on-call contract with Golden Bay Construction on August 23, 2023, amended the contract on November 15, 2023, and approved the Second Amendment on January 17, 2024.

FISCAL AND RESOURCE IMPACT:

Emergency on call work is funded through various City infrastructure funds. Funding for Water System and Wastewater work would be funded through Water and Sewer Enterprise funds. In the past, some of the funds expended on emergency repairs due to the noted landslides were reimbursed through FEMA.

CEQA (California Environmental Quality Act):

Categorical Exemption
This project is Categorically Exempt pursuant to Section 15301 of CEQA Guidelines because the work to be performed is the repair of existing City infrastructure involving no expansion of existing use.

Page 136 of 286 ends

1 THIRD AMENDMENT TO AGREEMENT
GOLDEN BAY CONSTRUCTION, 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 GOLDEN BAY CONSTRUCTION, INC., a California Corporation ("SERVICE PROVIDER" or “CONTRACTOR”), 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 pursuant to the action of the Morgan Hill City Council taken on ___________, ____, 20___.

2. The CITY and SERVICE PROVIDER entered into that “Maintenance Service Agreement” made as of September 8, 2023, for services for a maximum compensation of Four Hundred Thousand Dollars ($400,000.00) pursuant to the action by Morgan Hill City Council taken on August 23, 2023, (“MAINTENANCE SERVICE AGREEMENT”).

3. The CITY and SERVICE PROVIDER entered into a “First Amendment to Agreement” made as of November 26, 2023, under which the maximum compensation under the MAINTENANCE SERVICE AGREEMENT, as amended, was increased to Seven Hundred Fifty Thousand Dollars ($750,000.00). The First Amendment to Agreement was entered pursuant to the action by Morgan Hill City Council taken on November 15, 2023.

4. The CITY and SERVICE PROVIDER entered into a “Second Amendment to Agreement” made as of January 26, 2024, under which the maximum compensation under the MAINTENANCE SERVICE AGREEMENT, as amended, was increased to Nine Hundred Fifty Thousand Dollars ($950,000.00). The Second Amendment to Agreement was entered pursuant to the action by Morgan Hill City Council taken on January 17, 2023. The MAINTENANCE SERVICE AGREEMENT, 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 MAINTENANCE SERVICE AGREEMENT, 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. In the Second Amendment to Agreement, Paragraph 1 of the Recitals shall be amended to correctly reflect that the Agreement was entered into pursuant to the action of the Morgan Hill City Council taken on January 17, 2024, and not January 17, 2023.

B. Paragraph 2 shall be amended to reflect the extended term of the Agreement with an updated termination date of June 30, 2027.

C. Paragraph 4.1 shall be amended to reflect the increased total compensation that shall not exceed ONE MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000.00).

D. Paragraph 5 shall be amended to include the following subsection:

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2 “5.2. Temporary Suspension of Services. CITY’S need for services may be suspended due to unforeseeable or unavoidable circumstances beyond its control. Such circumstances include, but are not limited to, earthquake, fire, explosion, flood, or other natural catastrophe; governmental legislation, condemnation, acts, orders, or regulation; war or acts of terrorism; strikes or labor difficulties; and quarantine, epidemic, or pandemic. CITY shall provide a 5-days’ written notice or less under urgent circumstances to temporarily suspend services at specific CITY facilities. CITY reserves the right to request which CITY facilities are to be serviced or not serviced due to unforeseeable or unavoidable circumstances, and the level of service at each CITY facility. Upon suspension, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid up to the date of the suspension. No further payments will be made for services provided after the date of the suspension. CITY shall provide 5 days’ written notice when the circumstances for the suspension of specific facilities’ services are removed for SERVICE PROVIDER to commence providing services.” E. Paragraph 10.2 shall be amended and replaced in its entirety by the following:
“10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite.

10.2.1. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.2.2. SERVICE PROVIDER must comply with the provisions of Labor Code Sections 1776 and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.

10.2.3. As applicable, if the Agreement Amount exceeds Thirty Thousand Dollars ($30,000.00), SERVICE PROVIDER is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference.

10.2.4. SERVICE PROVIDER must comply with the provisions of Labor Code Section 1815 with respect to payment of overtime.

10.2.5. Under Labor Code Section 1813, SERVICE PROVIDER will forfeit to CITY as a penalty, the sum of Twenty-Five Dollars ($25.00) for each day during which a worker employed by SERVICE PROVIDER or any subcontractor is required or permitted to work more than eight (8) hours in anyone (1)

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3 calendar day or more than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815.” F. Paragraph 13 shall be amended and replaced in its entirety by the following:
“13. Conflict of Interest and Reporting. SERVICE PROVIDER 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.). SERVICE PROVIDER 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 SERVICE PROVIDER, 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, SERVICE PROVIDER 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. SERVICE PROVIDER 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, SERVICE PROVIDER 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. SERVICE PROVIDER 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.

3. 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.

4. 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 the Next Page]

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C

SECOND AMENDMENT TO AGREEMENT
GOLDEN BAY CONSTRUCTION, INC.

This SECOND AMENDMENT TO AGREEMENT is entered into and becomes effective on 1/26/2024 (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and GOLDEN BAY CONSTRUCTION, INC., a California Corporation ("SERVICE PROVIDER"), hereinafter referred to collectively as the "Parties".

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

1. This Second Amendment to Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on January , _!Z_, 20_ll_.

2. The CITY and SERVICE PROVIDER entered into that "Maintenance Service Agreement" made as of September 8, 2023, for services for a maximum compensation of Four Hundred Thousand Dollars ($400,000.00) ("SERVICE AGREEMENT").

3. The CITY and SERVICE PROVIDER entered into a "First Amendment to Agreement" made as of November 26, 2023, under which the maximum compensation under the SERVICE AGREEMENT, as amended, was increased to Seven Hundred Fifty Thousand Dollars ($750,000.00). The SERVICE AGREEMENT 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 SERVICE AGREEMENT, 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:
/II
/II
/II
Ill
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 NINE HUNDRED FIFTY THOUSAND DOLLARS ($950,000.00) 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 for up to one year pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER, during that extended term period, 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 extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement."
[Signatures on the Next Page]
1 EXHIBIT 1

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C

2. Conflicts. l.n the event of a conflict between the terms and prov1s1ons of this Second Amendment to Agreement and the terms and provisions Of the SERVICE AGREEMENT or any earlier amendment the terms of this Second Amendment to Agreement shall govern and control.

TWO SIGNATURES ARE REQUIRED FOR CORPORATIONS:
(1)
(2)

CHAIRPERSON

SECRETARY, AS
OF

SISTANT

THE BOARD,

SECRETA

PRESIDENT,

RY, CHIEF
OR
FINA
VICE
NCIAL
PRESIDENT;

OFFICER,
�
OR. ASSISTANT
TREASURER.

ATTEST:
�" � �� allii39d@elow, ......... . City Clerk
Date: 1/26/2024
�,.,.0000,.

APPROVED AS TO FORM:
,, al J /,a vii,�
lG:ikarlij.ra.City Attorney
Date: 1/25/2024
2 CITY OF MORGAN HILL
�-..
• • M tlJJIJMJ:'.' C � Afumer, City Manager
Date: 1/26/2024
Date:
• Print Name and Title of Signer.

If Corporate: Chairman, President,
or Vice President
1/11/2024
By:

Title: Brent Zan(:ltte - Secretary
Print Name and Title of $igner. •
tf Corporate: Secretary, Assjstant
Secretary, Chief Financial Officer; or
Assistant Treasurer
Date: 1/11/2024

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C EXHIBIT 1

FIRST AMENDMENT TO AGREEMENT
GOLDEN BAY CONSTRUCTION, INC.

This FIRST AMENDMENT TO AGREEMENT is entered into and becomes effective on 11/26/2023 (Effective Date), by THE CITY OF MORGAN HILL, a municipal corporation, ("CITY") and GOLDEN BAY CONSTRUCTION, INC., a California Corporation ("SERVICE PROVIDER"), hereinafter referred to collectively as the "Parties".

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

1. This First Amendment to Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on November , ---1.5-, 20_11_.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

Ill
Ill
Ill
Ill
Ill
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 SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00) 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 for up to one year pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, 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 extended term exceed· 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement. [Signatures on the Next page]
1

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C z. 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.

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 SERVICE AGREEMENT, 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; At:m, (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

ATTEST:

Date: 11/27/2023
APPROVED AS TO FORM:
kbibit�kiifle4Ctty Attorney
Date: 11;22;2023
2 CITY OF MORGAN HILL
Ch� 9TMm��oCity Manager
Date: 11/26/2023
By:

Title:

Date:

By:

Title:

Date:
-{y Zanette - President
rint Name and Title of Signer ..

If Corporate: Chairman. President or
Vice President
11/10/2023
Brent Zanette - Secretary
Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
11/10/2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C VV'-'UVl�II L..ll'WCIUt,IV IU, I.JI ..,UL.II "T"";.J'r,U'-'-\.l""'l'r,-u�...,-1 '-'1'11 '°'' V&. IV .... V EXHIBIT 1

MAINTENANCE SERVICE AGREEMENT
GOLDEN BAY CONSTRUCTION, .INC.

THIS AGREEMENT is entered into and becomes effective on 9/8/2023 (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ( 9CITY"), and Golden
Bay Construction, Inc. a California corporation ("SERVICE PROVIDER") 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 __ Augy st • --2.1,_, 20..2.l..

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until June 30, 2026, at which time SERVICE PROVIDER'S services shall be completed.

The City Manager is authorized to extend the term of this Agreement for a maximum period of one year.

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 SERVICE PROVIDER shall be on-call water and sewer repairs as further described in Exhibit A.

4. Comp!nsatlon. SERVICE PROVIDER shall be compensated as follows:

4.1. Amount. $400,000. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Four Hundred Thousand 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 SERVICE PROVIDER during that extended term period, 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 extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement.

4.2. Billing. SERVICE PROVIDER 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 SERVICE PROVIDER 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 14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the 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.
1 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uocu;:,19n cnve1ope 1u: 1::,, .,uur4-,:,1\Uo-..o-.f\-t:1t:1-.::>-r .,or f\ro.:·1 o-.u

5. Termination. CITY or SERVICE PROVIDERshall have the right to terminate this Agreement, withoutcause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager 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 SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.

6. Performance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by SERVICE PROVIDER in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of SERVICE PROVIDER'S profession. By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDER is liable for any property damage caused by SERVICE PROVIDER or its Subcontractors during performance of the services and shall notify the CITY of damage within 24 hours of the occurrence. SERVICE PROVIDER must promptly repair or replace any real or personal property damage and must promptly restore the property to its original or intended condition. CITY may repair or replace the real or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repairs or replacement may be deducted or offset from any compensation due to SERVICE PROVIDER.

6.1. Schedule. SERVICE PROVIDER 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. The 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.

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

7. Hazardous Materials. Without limiting any other requirement or obligaUon of SERVICE PROVIDER under this Agreement, if SERVICE PROVIDER needs to use any material or chemical considered to be a hazardous material under any federal. state or local law, regulation or policy, SERVICE PROVIDER agrees to fully and timely abide by and comply with all laws, regulations and policies pertaining to the use, transport, removal, handling, disposal or other activity related to any and all such materials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDER reasonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this Agreement, together with the reasonably anticipated quantities thereof, if requested by CITY. 2 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640

8. Insurance Requirements. SERVICE PROVIDER 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 SERVICE PROVIDER, 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. SERVICE PROVIDER further understands that CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days' notice provided to SERVICE PROVIDER, at any time as deemed necessary to protect the interests of CITY.

8. 1 . Insurance Types and Amounts.

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

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

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

8.1.4. Pollution (Environmental) Liability. If the performance of SERVICE PROVIDER'S work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, SERVICE PROVIDER shall procure • and maintain Pollution Liability covering the SERVICE PROVIDER'S liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million 3 Updated: May 2023

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DocuSign Envelope ID: 21036783-C2EE-450C-9134-0E35C9BC3C9C OocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640 dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.

8.1.5. Professional Liability.

8.1.5.1. If the performance of SERVICE PROVIDER'S work or service under this Agreement involves professional and/or technical services (examples include, but are not limited to, architects, engineers, land surveyors. and appraisers), SERVICE PROVIDER 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 SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater. Further, if SERVICE PROVIDER maintains a claims-made policy, SERVICE PROVIDER shall provide written evidence of such insurance to CITY for at least five (5) years after the completion of work performed under this Agreement.

8.1.5.2. If the performance of SERVICE PROVIDER'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), SERVICE PROVIDER 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 SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.

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

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

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

8.2.1.1. "Additionally Insured" - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations.
4 Updated: May 2023

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DocuSign Envelope ID: 21036783-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640

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

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

01. 8.2.2. Workers Com
If the performance of SERVICE PROVIDER'S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER'S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

8.3. 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.

8.4. Certificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to SERVICE PROVIDER'S agreement with CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 8. 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

9. Non-Llabllltv of Officials and Erriplovees of CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement.

10. Compliance with Law.

10.1. SERVICE PROVIDER and its officers,· employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. SERVICE PROVIDER 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 5 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640 orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any Subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.3. DIR Registration. CITY will not accept a Bid Proposal from or enter into a contract with a SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that SERVICE PROVIDER and its subcontractors are registered with the California Department of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

10.4. Compliance with Wage and Hour Laws: SERVICE PROVIDER, 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 SERVICE PROVIDER and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, SERVICE PROVIDER 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 SERVICE PROVIDER OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.

SERVICE PROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR($)

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 SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER 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 6 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uocuSign envelope IU: 15730UF4-9AU5-41l4A-t$�45-F35f-AF521540 judgment, decision or order. SERVICE PROVIDER 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. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

City's Right to Withhold Payment: Where SERVICE PROVIDER 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, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.

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.

11. lnde.e,endent Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employee of CITY.

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

13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

Address of SERVICE PROVIDER is as follows:

Golden Bay Construction, Inc.
3826 Depot Road
Hayward, CA 94545
7 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640 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

15. Licenses, Pennlts and Fees. SERVICE PROVIDER 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.

16. Service Provider's Proposal. If applicable, this Agreement shall include SERVICE PROVIDER'S proposai 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.

17. Maintenance of Records.

17.1. Maintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain 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 SERVICE PROVIDER shall retain said records until such action is resolved. 17 .2. Access to and Audit of Records. CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part of any audit of 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.
17 .3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

18. Familiarity with Work. By executing this Agreement, SERVICE PROVIDER 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 SERVICE PROVIDER 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 SERVICE PROVIDER'S risk, until written instructions are received from CITY.

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

20. No Assignment. Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDER, without prior written consent of CITY. Any attempted assignment not first approved by 8 Updated: May 2023

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22. Defense and Indemnification.

22.1. Defense and lodemoification. SERVICE PROVIDER 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 ( u
lNDEMNITEES") from and against any
and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or person.al 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 SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors ("CLAIM").

22.2. Exceptions. SERVICE PROVIDER 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 CITY.

22.4. Right to Offset. CITY shall have the right to offset against any compensation due SERVICE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as a result of SERVICE PROVIDER'S failure to pay CITY promptly any indemnification arising under this Section (22) and any amount due CITY from SERVICE PROVIDER arising from SERVICE PROVIDER'S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

22.5. lnternretation. 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 SERVICE PROVIDER 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.

23. 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 SERVICE PROVIDER. 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.

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25. 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.

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, th,e 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 20 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of SERVICE PROVIDER 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. 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.

II
II
[Signatures on Next Page)
10 Updated: May 2023

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29. 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:

OocuSigned by:

M1�\..Jlt. 8,·Jot.>
• �ty City Clerk
Michelle Bi elow
Print Name
Date: • 9/8/2023
APPROVED AS TO FORM:

Ooc Si ned by;
- -W�--------- .At •-7 ••••
Donald A Larkin
Print Name
Date: 9/6/2023
451401
Contractor's License Number(s) (if applicable)
Expiration Date(s) --- 1131/2024-------
Se a I:

CITY OF MORGAN HILL
Christina J. Turner
Print Name
Date: 9/8/2023
' ,,_,,I' _.,
Golden Ba� �
��on, Inc.
./";01.,, /".:�/•
By:;;/ Johnny Zanette - President
/, I •
By:

Print Name and Title of Signer.

If Corporate: Chairman. President or Vice
President
8/15/2023
Brent Zanette - Secretary
Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
Date: 8/15/2023
1000002870
Contractor's DIR Registration Number(s) (if applicable) Expiration Date(s) ....;6::.;/3::..:�::.:
2:..c..0�2 5'----------
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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640

EXHIBIT A

SCOPE OF SERVICES
This project is to provide water and sewer repairs on an on-call, as-needed, time-and-materials basis for a period of two (2) years with the option for three (3} additional single year extensions. The City's intent is to enter into agreements with one to three qualified contractors for the provision of these services. Any tasking shall be initiated solely by the City. Further, execution of the agreements by the City does not in any way guarantee that any tasking or request for on-call services will be issued to any party. Moreover, execution of the agreements by the City shall not entitle contracted parties to any form of payment or compensation from the City without first having issued tasking or request for services from a contractor.

Typical work to be performed under this contract includes repair of water service leaks, water main leaks, hydrant repair, valve replacement, water service replacement, meter installation, sewer main repairs, sewer lateral repair, manhole repair or installation, backfill of excavations, compaction, and final paving of streets. From time to time the City may request service for a backhoe with operator and/or laborers to assist the City repair crew. The Contractor also may be requested to do patch paving work. City staff and equipment will be made available for assistance with shutdowns and some activities.

The work to be performed under this contract consists of furnishing all tools, equipment, materials, supplies, and manufactured articles to complete the services as needed. It shall also include the furnishing of all transportation and services, including fuel, power, water, and essential communications, and for the performance of all labor, work, or other operations required for the fulfillment of the contract in strict accordance with the Contract Documents and City's Standard Details for Construction Standard Details for Construction -Link currently in effect.

The Contractor may utilize the services of specialty subcontractors on those parts of the work that, under normal contracting practices, are performed by specialty subcontractor. It is understood that at least SO percent of the work to be performed shall be performed by the successful Contractor. Any subcontractor used must adhere to the same terms and conditions as the successful contractor. The Contractor is representing to City that he/she and" any subcontractor has all appropriate licenses, certifications, and registrations to perform the work hereunder. The Contractor shall be fully responsible to the City for the performance of his/her subcontractors, and of persons either directly or indirectly employed by them.

City Responsibilities
City's personnel will identify and assess specific projects or repairs. The City will notify Contractor of general locations requiring construction or repair, and a general description of the field conditions at repair locations, and materials to be provided by the City. The City's Project Manager or designated representative will direct the general process to be followed but shall not generally direct the means or methods to be used by the Contractor. The City will provide base maps or record drawings of facilities when they are requested and available. All work to be completed will be agreed upon prior 12 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DOCU:Sign envelope ID: 157JODF4-!IAD5�H4A-t:!t:!45-F35FAF621640 to the commencement of work with a general scope of services. Drawings will be provided if applicable. The City will issue a written task order and attach the contractor's scope of work for projects that are not an emergency. Notification of residents whose service may be interrupted will be the responsibility of the City.

Contractor's Responsibilities
The Contractor will provide a scope of work for each project that is not an emergency. The scope of work will be the basis for the project and will serve as supplement to the contract documents for that particular project. The scope of work shall include a not to exceed amount for the project. The Contractor shall be responsible for providing the following to complete the services in a timely manner as outlined below:
• Qualified Labor
• Tools
• Equipment, including all necessary Safety Equipment
• Materials and Supplies
• Transportation
• Services (including fuel, power, water, and communications) • Sheeting and shoring as required
• Traffic control devices and measures
For an emergency repair the Contractor shall make every effort to begin the repair within four (4) hours of notification that a repair is needed. Notification of the repair will made in the form of a phone call. The City is aware that the Contractor may have other commitments. The Contractor shall notify the City if they do not have the manpower to mobilize a crew to begin the repair within the allotted time. If the Contractor cannot mobilize the City will contact the other Contractor on the list.

If none of the Contractors on the short list derived this solicitation can do the work within the time frame, the City reserves the right to seek assistance from another contracting firm.

Contractor is responsible for damage resulting from performing work and clean-up of effected area.

The Contractor shall incur these damage costs and not pass these charges to the City.

The Contractor shall be cautioned that the City has Asbestos Cement Pipe (ACP) in some areas of the water distribution system as well as the wastewater collection system. Some of the repairs may be on ACP lines. The Contractor and its employees shall be properly trained for working on these ACP lines. All current OSHA standards shall be followed.

As some of the infrastructure falls outside of City limits, the Contractor will have to obtain encroachment permits, if needed, in the jurisdiction where the work is taking place. 13 Updated: May 2023

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DocuSign Envelope ID: 21036783-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640 Repair Standards
The Contractor is responsible for meeting all contract conditions and City's Standard Details for Construction (link on page 9), specifications, and drawings. If the City's Inspectors determine that any repair work is substandard, the Contractor shall be advised thereof orally and in writing, and shall redo all such work at the expense of the Contractor. The City's Project Manager and Inspectors will determine a time when the re-work is to be completed and re-inspect the repair to determine if the repair has been performed satisfactorily. The Contractor shall comply with all Federal, State, and Local safety rules and regulations.

Materials and Supplies
At the time of notification, the City will provide the Contractor with a list of City supplied materials.

The Contractor is responsible for having a reliable supply chain in place to obtain, in a timely manner, all additional materials and supplies needed for the required repair. All materials and supplies obtained by the Contractor for the work must be new and free from defects. There will be no markup or other cost charged to the City for materials and supplies used from the City's inventory. The City will deliver small materials and fittings such as repair clamps, corp stops, etc. to the project site.

Any bulk materials such as aggregate base, temporary asphalt paving, etc. provided by the City shall be picked up by the Contractor at the City's Corporation Yard.

Disposal of Materials
All materials shall be disposed of in a manner that does not adversely affect the environment and is consistent with local, state, and federal laws and regulations.

Response Schedule
Emergency Repair - The Contractor will make every effort to begin emergency repairs.within the notification specified herein, or in accordance with a schedule approved by the City: Notification to the Contractor may be in the form of a telephone call, facsimile, or e-mail, depending on the urgency of the repair. The City reserves the rights, in its sole discretion, to require a more rapid response should it deem it to be necessary. A typical emergency repair will have a response time of four (4) hours. If repair cannot be started within this period, the City reserves the right to obtain the services of other Contractors.

Scheduled Repair - If a scheduled repair cannot be started within twenty-four (24) hours of the City's scheduled time of repair, the Contractor shall provide the City accurate estimate of when work can start. The City will work with the Contractor in regards to other commitments the Contractor may have. However, the City reserves the right to seek outside assistance from other Contractors if scheduling cannot be agreed upon and repairs are determined by the City, in its sole discretion, to be as required.

Physical Location of Underground Utilities
14 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uocu;:,rgn c:nverope ru: 10,.,uur'l-llAU:>◄O'IA-ct:1<1:>-r-,>:>rAroL·rO'lu The City is responsible for providing all utility maps or record drawings to perform repairs.

Facilities Shown or Indicated - Unless it is otherwise expressly provided in the section below, Protection of Existing Facilities, the City shall not be responsible for the accuracy or completeness of information or data shown on the City's water and sewer system base maps or any other utility information, and the Contractor shall have full responsibility for reviewing and checking all such information and data, for locating all Underground Utilities for coordination of the work with the owners of such Underground Utilities during construction, for the safety and protection thereof and repairing any damage thereto resulting from the work, the cost of which will be considered as having been included in the contract price. Existing utility lines that are shown, or the locations of which are made known to the Contractor prior to excavation and that are to be retained, and all utility lines that are constructed during excavation operations shall be protected from damage during excavation and back-filling and if damaged, shall be immediately repaired by the Contractor except as the owner of the utility or other facility may otherwise direct. All repairs due to damage are subject to inspection and approval by an authorized representative of the property owner before being concealed by backfill or other work. The obligations set forth in this paragraph and other paragraphs concerning underground work shall apply to such damage as may occur after back-filling or is not discovered until after completion of the back-filling.

Facilities Not Shown or Indicated - If an Underground Utility is uncovered or revealed at or contiguous to the site which was not shown or indicated in the City's water and sewer system base maps and not otherwise made known to the Contractor prior to excavation, which the Contractor could not reasonably have been expected to be aware of based on the presence of other visible facilities, such as buildings, meter and junction boxes, on or adjacent to the site of the repair, the Contractor shall identify the owner of such Underground Utility and give written notice thereof to the City in accordance with the requirements of the next section, Protection of Existing Facilities. In the event that the Contractor damages any existing utility lines that are not shown or the locations of which are not made known to the Contractor prior to excavation, a written report thereof shall be made immediately to the City. If directed by the City, repairs shalf be made by the Contractor.

To the extent required by Government Code section 4215, all costs of locating, repairing damage to, and removing or relocating such utility facilities not shown or indicated, and for the necessary idling of equipment on the project which was actually working on that portion of the work which was interrupted or idled by removal or relocation of such utility facilities not shown or indicated, which costs were not incurred due to the failure of the Contractor to exercise reasonable care, will be paid for as time and materials.

Protection of Existing Facilities
General -_The Contractor shall protect all existing utilities and improvements not designated for removal and shall restore damaged or temporarily relocated utilities and improvements to a condition equal to or better than they were prior to such damage or temporary relocation.

Restoration shall be to the reasonable satisfaction of the City or to the affected utility or franchisee. 15 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640 The Contractor shall verify the exact locations and depths of all utilities or improvements shown and the Contractor shall make exploratory excavations of all utilities or improvements that may interfere with the Work. The number of exploratory excavations required shall be that number which is sufficient to determine the alignment and grade of the utility or improvement. The Contractor shall notify and obtain concurrence with City staff of that number of exploratory excavations.

It shall be the Contractor's responsibility to see that all utilities or other improvements are adequately protected from damage due to such operations. The Contractor shall exercise care in all excavations to avoid damage to existing underground facilities. This shall include hand digging in those areas where underground facilities are known to exist until they have been sufficiently located to avoid damage to the facilities. No additional compensation shall be provided the Contractor for compliance with the provisions of this section or for the damage and repair of facilities due to the lack of such care.

Right-of-Way - The Contractor shall not do any work that would affect any oil, gas, sewer, or water pipeline; any telephone, telegraph, communication wire or cable, or electric transmission line; any fence; or any other structure, nor shall the Contractor enter upon the right-of-way involved until notified by the City's representative that the City has secured authority therefore from the appropriate authority. All oil and gasoline pipelines, power, and telephone or other communication cable ducts, gas and water mains, irrigation lines, sewer lines, storm drain lines, poles, and overhead power and communication wires and cables encountered along the line of the Work shall remain continuously in service during all the operations under the Contract, unless other arrangements satisfactory to the City are made with the owner of said pipelines, duct, main, irrigation line, sewer, storm drain, pole, or wire or cable.

In case it shall be necessary to move the property of any public utility or franchise holder, the Contractor shall provide written and just cause for utilities to be moved, and such utility company or franchise holder will, upon request of the Contractor, be notified in writing by the City to move such property within a specified reasonable time. When utility lines that are to be removed are encountered within the area of operations, the Contractor shall notify the City's Engineer a sufficient time in advance for the necessary measures to be taken to prevent interruption of service.

This procedure is intended to prevent the Contractor from arbitrarily deciding to cut through any other utility's or any franchisee's facilities. It allows the City to coordinate such work with those agencies and set the timeline and sequence of such work. After authorization has been obtained, the Contractor shall give said party due notice of its intention to begin work, and shall give said party convenient access and every facility for removing, shoring, supporting, or otherwise protecting such pipeline, transmission line, ditch, fence, or structure, and for replacing same. The Contractor shall provide such special protection as may be necessary to protect all known utilities and other improvements that may be impaired during construction operations and shall take all possible precautions for the protection of unforeseen utility lines or other improvements to provide for uninterrupted service.

Utilities to be Removed/Relocated - Where the proper completion of the repair work requires the temporary or permanent removal and/or relocation of an existing utility or other improvement that is 16 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uucu;:,1gn c11ve1upe 1u; 10,.,uur--t-�l\u:>-"to-.,-.-co-t:,-r-.,:,r-,-r-o.: 10'1u shown, the Contractor shall remove and, without unnecessary delay, temporarily replace or relocate such utility or facility. In all cases of such temporary removal or relocation, restoration to the former location shall be accomplished by the Contractor in a manner that will restore or replace the utility or improvement as nearly as possible to its former location and to as good or better condition than found prior to removal.

Restoration of Pavement:

A. General. All paved areas, including asphalt concrete berms, cut or damaged during construction, shall be replaced with in accordance with the specifications of the public authority that has jurisdiction over the site of the work. The City of Morgan Hill and the County of Santa Clara own public right of ways within the City's service area. All temporary and permanent pavements shall conform to the requirements of the affected pavement owner. All pavements that are subject to partial removal shall be neatly saw cut in straight lines per specifications.

8. Temporary Resurfacing.:. Wherever required by the public authority with jurisdiction over the site of the work, the Contractor shall place temporary surfacing promptly after back-filling and shall maintain such surfacing for the period of time fixed by said authority before proceeding with the final restoration of improvements.

C. Permanent Resurfacing. In order to obtain a satisfactory junction with adjacent surfaces, the Contractor shall comply with the applicable City or County Specifications, at its expense. The City will pay for initial testing. Any required re-testing and correction costs will be the responsibility of the Contractor.

D. Restoration of Sidewalks or Private Driveways. Wherever sidewalks or private roads have been removed for purposes of construction, the Contractor shall place suitable temporary sidewalks or roadways promptly after back-filling and shall_ maintain them in satisfactory condition for the period of time fixed by the authorities having jurisdiction over the affected portions before proceeding with the final restoration or, if no such period of times is so fixed, the Contractor shall maintain said temporary sidewalks or roadways until the final restoration thereof has been made.

Final restorations shall be in accordance with any applicable City and/or general construction codes.

Notification by the City - For routine repairs, the City shall notify Underground Service Alert (1-800- 642-2444) forty-eight (48) hours prior to any excavation in the vicinity of any existing underground facilities, including all water, sewer, storm drain, gas, petroleum products, or other pipelines; all buried electric power, communications, or television cables; all traffic signal and street lighting facilities; and all roadway and state highway rights-of-way.

Facility Access
Continuous access to the City's facilities shall be provided at all times during the Project. Such access shall be suitable for large vehicles, e.g. chemical delivery and sludge hauling trucks. Access routes shall be provided for each planned project.
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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C l)OCU:Sign Envelope IU: 157JOUF4-9AU5-41l4A-1:11:145-FJ5FAF621640 Water Quality Protection and Stormwater Quality
The Contractor shall take all necessary steps to protect the storm drain system from discharges of construction•related wastewater, including saw cutting slurry, concrete washout, sediment• contaminated and runoff, sewage overflows, and highly-chlorinated discharges from water line testing. This will require the use of Best Management Practices (BMPs) such as providing sediment controls on downstream storm drain inlets, collecting and removing saw cutting slurry, providing an area for concrete washout, and directing highly-chlorinated discharges to the sanitary sewer or by dechlorinating this water. The Contractor is responsible for damage resulting from performing repair and clean-up of effected area.

Trench Excavation
The maximum length of trench excavation in advance of the pipe laying operation shall be SO feet, and the maximum amount of trench remaining open without backfill shall be 50 feet. No trench in public areas shall be left open during periods when the Contractor is not at the site of work; trenches in these areas shall either be backfilled and temporarily paved, where applicable, or covered with steel trench plates as specified in the technical specifications.

Underground Facilities
The Contractor shall exercise care in all excavations to avoid damage to existing underground facilities. This shall include potholing and hand digging in those areas where underground facilities are known to exist until they have been sufficiently located to avoid damage to the facilities.

Prior to fabrication of any materials, the Contractor shall verify the locations and elevations of existing underground facilities to ensure proper connection and/or clearance.

The Contractor shall exercise care in maintaining those pipes and facilities to be abandoned and/or removed which are required for the continuing operation of the existing facilities until such time as they can be abandoned. The Contractor shall exercise extreme caution in working in any area adjacent to existing facilities. It is essential that the existing facilities be maintained in service until the new work is ready for full time operation and is placed in service.

No additional compensation shall be provided the Contractor for compliance with the provisions of this section for the damage and repair of such facilities due to the lack of care, and the Contractor shall be responsible for the direct and indirect costs resulting from the damage and repair of such facilities.

Working Hours
For Emergency Repairs working hours may be any day of the week at any time. The crews that respond to the efTlergency shall comply with applicable labor codes for hours worked. 18 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C

1..1u1.,,u..;,1�11 �11v-c1uf,lc; 1u. ,;.,,�ur-t•.:,Mu�-n,-.n-cD'"t�rJ;,,rl"\ru, ,u-.u For Scheduled Repairs normal City staff working hours are from 7:00 a.m. to 3:30 p.m., excluding weekends and City holidays. Unless otherwise approved in writing by the City, repair work shall be allowed only between the hours of 7:00 a.m. and 8:00 p.m. on weekdays and, when approved in writing in advance by the City, 9:00 a.m. to 6:00 p.m. on weekends and holidays. These working hours may be adjusted on a job by job basis depending on nature of the project and specific encroachment permit conditions for the project.

The Contractor shall notify the City at least 48 hours prior to any work outside the normal working hours defined above, on weekends or holidays.

Noise Abatement
All operations at the site of the repairs shall be performed so as to minimize unnecessary noise.

Special measures shall be taken to suppress noise during night hours. Noise levels due to Contractor's activities shall not exceed the levels specified by local ordinance.

Internal combustion engines used on the work shall be equipped with a muffler of a type recommended by the manufacturer. No internal combustion engine shall be operated without said muffler.

Warranty and Scheduled Maintenance
The Contractor hereby agrees to make, at its own expense, all repairs or replacements necessitated by defects in materials or workmanship, in those components provided, installed, replaced and/or modified by the Contractor, and pay for any damage to other works resulting from such defects, which becomes evident within one (1) year after the date of acceptance of installation work, or within such longer period of time as may be prescribed by law or by the terms of any applicable special guarantee required by the Agreement. This warranty shall include all parts and labor and the performance of all manufacturers' recommended maintenance. This in no way shall limit, amend, or reduce any manufacturer's warranty. The Contractor further assumes responsibility for a similar guarantee for all work and materials provided by subcontractors. This warranty shall not apply to existing equipment that was not modified or significantly adjusted so as to change its operation. The Contractor also agrees to indemnify, defend and hold the City harmless from liability of any kind arising from damage due to covered defects. Prior to the final acceptance of installation work, the Contractor shall provide phone numbers for around- the-clock notification of the need for emergency service repairs, a schedule showing specific dates for routine maintenance service calls.

The Contractor shall respond within four (4) hours of City's emergency service call after receipt of notice from the City, and promptly make all repairs arising out of defective materials, workmanship, or equipment. If a service response does not occur within four (4) hours, or diligent efforts are not made to effect repairs, the City will notify the Contractor (by fax or voice mail if no representative is available) of its intent to secure another service provider. Thereafter, the City is authorized to make such repairs, and the Contractor shall be liable for the cost thereof. In case of emergency, where, in 19 Updated: May 2023

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uocu::;1gn 1:nve1ope 1u: 1::,,.,uur-+l1AU:>-404A-t1t14:>-r-.,::,r-Ar-o:.!lt>4U the opinion of the City, delay could cause serious loss or damage, repairs may be made without notice being sent to the Contractor, and the expense in connection t The Contractor shall direct all of its equipment suppliers and/or manufacturers to promptly provide to it and to the City any and all information concerning product defects or other problems and shall promptly forward to the City any such information received, whether before, during, or after the warranty period.

Prior to the expiration of the warranty period, the City reserves the right to hold a meeting and require the attendance of the Contractor. The purpose of the meeting is to review warranties, bonds, and maintenance requirements, and determine required repair or replacement of defective items. 20 Updated: May 2023

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EXHIBITB

SCHEDULE OF COMPENSATION RATES
On-Call Services for Water and Sewer Repairs
Per Page 6 of this RFP, this work is subject to prevailing wage. The hourly wages to be paid laborers, workers, or mechanics shall not be less than the DIR e_revailin& wase rates for an hour's work in the same trade or occupation in Santa Clara County. Prevailing wage rates are available online at http://www.dir.ca.gov/dlsr.

Qe�lll .u.n· .l::iOlm.v...Rate

1. LABOR
a. Project Manager Hour s 163.00
b. Foreman/Superintendent Hour $ 128.00
c. Equipment Operator Hour $ 122.00
d. Journeyman Hour $ 105.00
e. Laborer or Equivalent Hour $ 98.00
Z. EQUIPMENT
a. Boom Truck Hour $ NIA
b. Service Vehicle (utility body pickup) or Hour s 37.00 Equivalent
c. Backhoe (Case 580E or comparable) Hour s 65.00
d. Welder Hour s N/A
e. Compressor (150 cfm) Hour $ 19.00
f. 5 yd Dump Truck Hour $ 51.00
g. 24-inch Vibratory Smooth Orum Roller Hour s 33.00

3. MOBILIZATION AND DEMOBILIZATION
21

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C uocu::,Ign t:nvetope 1u: 1:,, JUUt-4-!:II-\U:>-4D41-\-tSts4::>-t-J:>t-1-\t-o.n 04U Mobilization and Demobilization __% 7 (Fill In)
Overhead and Profit 20 % (Fill In)
S. MATERIALS MARKUP
Materials Markup - Cannot exceed 25%

6. SUBCONTRACTOR MARKUP
Subcontractor Markup
15 % (Fill In)
15 % (Fill In)
22

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DocuSign Envelope ID: 210367B3-C2EE-450C-9134-0E35C9BC3C9C DocuSign Envelope ID: 15730DF4-9AD5-484A-BB45-F35FAF621640

EXHIBITC

SCHEDULE OF PERFORMANCE
This is an on-call as needed agreement.

For each job under this agreement, the City will request a detailed task order proposal from the Contractor. The Contractor proposal shall include an Itemized breakdown of hourly labor and equipment rates as well as all materials and material mark up costs. The City's project manager will Issue a notice to proceed If the proposal Is accepted. The Contractor will Issue an Invoice at the ·completion of the each task order, and shall include a detalled breakdown of all hourly charges for labor and equipment, materials, and material mark up costs. 22 Updated: May 2023

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9 CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2026
PREPARED BY:

Mariah Dabel, Public Services Administrative Manager
APPROVED BY: City Manager

AUTHORIZE CITY MANAGER TO EXECUTE FIRST AMENDMENT TO

PROPERTY USE AGREEMENT WITH NEW CINGULAR WIRELESS FOR
CELL SITE AT 2275 ROLLING HILL DRIVE

RECOMMENDATION(S)
Authorize the City Manager to execute the First Amendment to New Cingular Wireless PCS's Property Use Agreement.

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

The purpose of this report is to request City Council's authorization for the City Manager to execute the First Amendment with New Cingular Wireless PCS for the Property Use Agreement at 2275 Rolling Hills Drive. The City of Morgan Hill routinely has allowed cellular installations at the City's communications and tank facilities. Currently, New Cingular Wireless PCS (dba AT&T Wireless) has a cell tower at 2275 Rolling Hills Drive adjacent to the utilities tank equipment operated by the City of Morgan Hill. The cell tower installation was first approved in 2013.

New Cingular's current agreement for the site expires on July 2, 2028. With the end of the agreement approaching, New Cingular approached the City to ask for an extension.

The following deal points are proposed: an initial 5-year term with up to four 5-year extensions resulting in a new expiration date of July 2, 2053 and continuation of payments increasing 3.5% annually.

With a time extension, New Cingular will have stability at the site and can invest in improvements that will maintain and enhance telecommunications services in the community. As the proposed amendment will increase City revenues and maintain services, staff recommends approval of the attached First Amendment.

COMMUNITY ENGAGEMENT:

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9 This report serves to inform the community of the recommended contract amendment.

ALTERNATIVE ACTIONS:

The Council could decline to approve the Amendment and provide direction to staff on alternative negotiation parameters or direction on decommissioning the site as a cell tower location. Decommissioning the site would result in a loss of cellular service to the Morgan Hill community and a loss of revenue to the City.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City's agreement with New Cingular for initial installation of the telecommunications equipment was approved by the City Council in 2013. The revenue is included in the City's five-year forecast. A very similar amendment providing a time extension at a different location (El Toro Mountain) was approved by the City Council in 2018.

FISCAL AND RESOURCE IMPACT:

The City's revenue from the property use agreement is $60,442 in FY 2025-26. This income is credited to the City's Fund 650 Water Operations and helps pay for services, offsetting service fees for water utility customers. With this amendment extending the term, the City's revenue would increase by 3.5% annually. By the end of the proposed term of the agreement, annual revenue will exceed $153,000.

The resources to negotiate and manage cellular tower property use agreements are included in the work plan of the Public Services Department.

CEQA (California Environmental Quality Act):

Not a Project
This Amendment is an administrative action that is not a project under the CEQA Guidelines. Any additional facilities located on the site will need to obtain a Conditional Use Permit and would engage in the CEQA process at that time.

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2026 Amendment
- 1 -
Market: San Francisco / Sacr / Reno
Cell Site Number: CCL00750
Cell Site Name: MCKEAN ROAD 2
Fixed Asset Number: 10151482

FIRST AMENDMENT TO INSTALLATION AND PROPERTY USE AGREEMENT BETWEEN

THE CITY OF MORGAN HILL AND
NEW CINGULAR WIRELESS PCS, LLC.

THIS FIRST AMENDMENT TO INSTALLATION AND PROPERTY USE AGREEMENT (“Amendment”) dated as of the latter signature date below (the “Effective Date”) is by and between City of Morgan Hill, a municipal corporation having a mailing address at 17575 Peak Avenue, Morgan Hill, CA 95037 (“City”) and New Cingular Wireless PCS, LLC, a Delaware limited liability company, duly authorized to do business in California and will remain so during the term of this Agreement, having a mailing address at 1025 Lenox Park Blvd NE, 3rd Floor, Atlanta, GA 30319 (“Company”).

WHEREAS, City and Company entered into an Installation and Property Use Agreement dated July 3, 2013, whereby City leased to Company certain Premises (“Premises”), therein described, that are a portion of the Property (“Property”) located at 2275 Rolling Hills Drive, Morgan Hill, CA 95037 (the “Agreement”); and WHEREAS, the Term of the Agreement will expire on July 2, 2028, and the parties mutually desire to renew the Agreement, memorialize such renewal period and modify the Agreement in certain other respects, all on the terms and conditions contained herein; and WHEREAS, City and Company desire to amend the Agreement to modify the notice section thereof; and
WHEREAS, City and Company desire to amend the Agreement to permit Company to add, modify and/or replace equipment in order to be in compliance with any current or future

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2026 Amendment
- 2 -
federal, state or local mandated application, including but not limited to emergency 911 communication services; and
WHEREAS, City and Company, in their mutual interest, wish to amend the Agreement as set forth below accordingly.

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Company agree as follows:

1. Extension Term. At the end of the final Extension Term presently set forth in the Agreement, the Term will automatically renew for five (5) separate consecutive additional periods of five (5) years each (each being defined as a “Extension Term”) upon the same terms and conditions of the Agreement, unless Company notifies City in writing of Company’s intention not to renew the Agreement at least sixty (60) days prior to the expiration of the existing Term.

2. Emergency 911 Service. In the future, without the payment of additional rent, or any other consideration, and at a location mutually acceptable to City and Company, City agrees that Company may add, modify and/or replace equipment in order to be in compliance with any current or future federal, state or local mandated application, including but not limited to emergency 911 communication services.

3. Acknowledgement. City acknowledges that: 1) this Amendment is entered into of the City’s free will and volition; 2) City has read and understands this Amendment and the underlying Agreement and, prior to execution of this Amendment, was free to consult with counsel of its choosing regarding City’s decision to enter into this Amendment and to have counsel review the terms and conditions of this Amendment; 3) City has been advised and is informed that should City not enter into this Amendment, the underlying Agreement between City and Company, including any termination or non-renewal provision therein, would remain in full force and effect.

4. Notices. Section 15 of the Agreement is hereby deleted in its entirety and replaced with the following:

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2026 Amendment
- 3 -
NOTICES. All notices, requests, payments of rent, demands, and other communications required or permitted hereunder shall be given as follows:

For Notices of Default to Company:
a) To Company’s Lease Administration Department at [email protected]; and
b) To Company’s Law Department via First Class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid:

New Cingular Wireless PCS, LLC
Attn.: Legal Dept – Network Operations
Re: Cell Site #: CCL00750; Cell Site Name: MCKEAN ROAD 2 (CA) Fixed Asset #: 10151482
208 S. Akard Street
Dallas, TX 75202-4206
For Notices of Default to City:
a) To City at
Mariah Dabel
City of Morgan Hill
17575 Peak Avenue,
Morgan Hill, CA 95037
[email protected];
and
b) To City’s Office of the City Attorney via First Class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid:

City Attorney’s Office
City of Morgan Hill

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2026 Amendment
- 4 -
17575 Peak Avenue,
Morgan Hill, CA 95037
[email protected]
All other Notices will be sent:
a) To Company’s Lease Administration Department at [email protected]; and
b) To City at [email protected]
Notices by email will be effective on the first calendar day after it was sent unless the sender receives an automated message that the email has not been delivered. Electronic mail shall be sent with a read receipt, but a read receipt shall not be required to establish that notice was given and received. All other Notices shall be effective when received unless returned undelivered. Either party hereto may change the place for the giving of notice to it by thirty (30) days’ prior written notice to the other party hereto as provided herein.

5. Section 24 is hereby deleted in its entirety and replaced its entirety with the following:
“COMPANY 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(CaliforniaGovernmentCode section 87100 et seq.) andtheregulations ofthe Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.). COMPANY 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).”

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2026 Amendment
- 5 -

6. Exhibit F of the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit F attached hereto.

7. Charges. All charges payable under the Agreement such as utilities and taxes shall be billed by City within one (1) year from the end of the calendar year in which the charges were incurred; any charges beyond such period shall not be billed by City and shall not be payable by Company. The foregoing shall not apply to annual rent which is due and payable without a requirement that it be billed by City. The provisions of this subsection shall survive the termination or expiration of the Agreement.

8. Other Terms and Conditions Remain. In the event of any inconsistencies between the Agreement and this Amendment, the terms of this Amendment shall control. Except as expressly set forth in this Amendment, the Agreement otherwise is unmodified and remains in full force and effect. Each reference in the Agreement to itself shall be deemed also to refer to this Amendment.

9. Capitalized Terms. All capitalized terms used but not defined herein shall have the same meanings as defined in the Agreement.

10. Public Record. The City, as a public agency, is subject to the disclosure requirements of the California Public Records Act (“CPRA”). This Agreement, including COMPANY’s rates and fees, is a public record under the California Public Records Act. If COMPANY has proprietary information contained in these documents, and COMPANY wishes to claim that such information falls within one or more CPRA exemptions, COMPANY must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, the CITY will make reasonable efforts to provide notice to COMPANY prior to such disclosure. [NO MORE TEXT ON THIS PAGE - SIGNATURES TO FOLLOW ON NEXT PAGE]

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2026 Amendment
- 6 -
IN WITNESS WHEREOF, the parties have caused this Amendment to be effective as of the last date written below.

CITY:

City of Morgan Hill,
a municipal corporation
COMPANY:

New Cingular Wireless PCS, LLC,
a Delaware limited liability company
By: AT&T Mobility Corporation
It’s: Manager
By: [NOT FOR EXECUTION] By: [NOT FOR EXECUTION]
Print Name: Print Name:

Its: Its:

Date: Date:

APPROVED TO FORM
________________________
Print Name: Elisa Tolentino
It’s: City Attorney
Date:___________________
ATTEST
________________________
Print Name: Michelle Bigelow
It’s: City Clerk
Date:___________________

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EXHIBIT F

1. INSURANCE.

COMPANY shall procure and maintain for the duration of the Agreement , insurance against claims for injuries to persons or damages to property, including the PROPERTY, which may arise from, or in connection with, the performance of the work hereunder by COMPANY, its agents, representatives, employees or subcontractors.

A. Minimum Scope of Insurance.

Coverage shall be at least as broad as:

Insurance Services Office (ISO) "occurrence" form CG 00 01, including

1. Explosion, Collapse & Underground (“X, C,U”) coverage.

2. Insurance Services Office form number CA 00 01 covering Business Automobile Liability, code 1 "Any Auto" (including without limitation "owned autos,” hired autos," and "non-owned autos.")

3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance.

4. "All-risk" or "Causes of Loss - Special Form" property insurance covering all risks of loss to any improvements or betterments installed or constructed by COMPANY on the PROPERTY, including without limitation the ANTENNA FACILITY, which may be self-insurance provided by COMPANY or a parent entity of COMPANY for such property insurance.

B. Minimum Limits of Insurance.

COMPANY shall maintain limits of at least:

1. Commercial General Liability: $1,000,000 per occurrence, $2,000,000 general aggregate, and $1,000,000 products and completed operations aggregate for bodily injury, personal injury, and property damage. The general aggregate limit shall apply separately to this project/location, or the general aggregate limit shall be doubled.

2. Automobile Liability: $1,000,000 each accident for bodily injury and property damage.

3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $100,000 per accident or disease.

4. Property Insurance: Full replacement cost with no co-insurance penalty provision or COMPANY's self-insurance program described in Section I(A)(4) above.

C. Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to, and approved by, the CITY.

At the option of the CITY, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officials, employees, agents and

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Morgan Hill City CouncilJune 17, 2026

Morgan Hill City Council
June 17, 2026