Market: San Francisco, Sacramento (South Bay), ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
required for health or safety in the construction or alteration of the LICENSED AREA, and as a result of COMPANY'S work on the LICENSED AREA or PROPERTY. As a condition of this AGREEMENT, COMPANY agrees to perform the covenants and conditions contained in any permit issued or to be issued to COMPANY by CITY's Chief Engineer or his designees.
E. COMPANY shall not commence physical installation of the ANTENNA FACILITY before approval of Plans and Specifications pursuant to Subsection 9.A, and obtaining approval of all applicable permits pursuant to Subsection 9.D. Approval of Plans and Specifications by CITY Departments shall not release COMPANY from the responsibility for, or the correction of, any errors, omissions or other mistakes that may be contained in Plans and Specifications. COMPANY agrees to perform any work at COMPANY'S sole cost and at COMPANY'S sole expense and in accordance with and in a manner CITY is satisfied conforms to Plans and Specifications as may be approved by CITY in furtherance of this AGREEMENT.
SECTION 10. INDEMNIFICATION.
COMPANY shall protect, defend, indemnify, and hold harmless CITY, its officers, employees and agents against any claim, loss or liability arising from or related to any damage, injury or loss caused by, or resulting from, the installation, maintenance, operation or use of the ANTENNA FACILITY, the provision of SERVICES, or resulting in any way from COMPANY's occupation or use of the PROPERTY or the LICENSED AREA, including, without limitation, that which is due, in whole or in part, to the willful misconduct or negligent acts (active or passive) or omissions by COMPANY, its officers, employees, consultants or agents. COMPANY's obligation to indemnify and hold harmless excludes only such claim, loss or liability that is due to the negligence or willful misconduct of CITY and/or its officers, employees, consultants or agents. All of COMPANY's obligations under this SECTION are intended to apply to the fullest extent permitted by law and shall survive the expiration or sooner termination of this AGREEMENT.
CITY shall protect, defend, indemnify and hold harmless COMPANY, its officers, employees and agents from and against any claim, loss or liability arising from or related to any damage, injury or loss caused by, or resulting from, CITY's installation, maintenance, operation or use of the PROPERTY, the provision of CITY's services, or resulting in any way from CITY's occupation or use of the Property including without limitation, that which is due, in whole or in part, to the willful misconduct or negligent acts (active or passive) or omissions of CITY and/or its officers, employees, consultants or agents. CITY's obligation to indemnify and hold harmless excludes only such claim, loss or liability that is due to the negligence or willful misconduct of COMPANY and/or its officers, employees, consultants or agents. All of CITY's obligations under this SECTION are intended to apply to the fullest extent permitted by law and shall survive the expiration or sooner termination of this AGREEMENT. 12
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
SECTION 11. TAXES.
A. COMPANY shall pay before delinquency any and all taxes, assessments, licenses, fees and other public charges which may be levied, assessed or imposed upon any of COMPANY's interests herein, upon COMPANY's businesses, upon COMPANY for the privilege of conducting business, or upon any property of COMPANY at the PROPERTY. COMPANY is advised that this AGREEMENT may, but is not intended to, create a possessory interest in the LICENSED AREA, for which COMPANY may be subject to payment of possessory interest taxes therefore, for which CITY shall not be liable. Payment of any possessory interest tax shall not reduce in any way any charges or other fees required to be paid by COMPANY hereunder.
B. COMPANY shall not permit or suffer any liens to be imposed upon the PROPERTY or any portion thereof, without promptly discharging the same, provided, however, that COMPANY may, if it so desires, contest the legality of same following prior written notice to CITY. In the event of a contest of a lien, COMPANY shall provide a bond in an amount and in a form reasonably acceptable to CITY immediately following request therefor by CITY.
SECTION 12. INSURANCE.
A. COMPANY, at COMPANY's own expense throughout the Term of this AGREEMENT, as extended, shall comply with the insurance requirements attached hereto as Exhibit F and incorporated by reference herein. The procuring of the policy or policies of insurance required by Exhibit F shall neither be construed to limit COMPANY's liability hereunder nor to fulfill the indemnification provisions and requirements of this AGREEMENT. Notwithstanding the policy or policies of insurance, COMPANY shall be obligated for the full and total amount of any damage, injury or loss caused by its negligence or willful misconduct arising out of this AGREEMENT or COMPANY's use of the PROPERTY or the LICENSED AREA.
B. COMPANY shall deposit with CITY, on or before the EFFECTIVE DATE, certificates of insurance and the required endorsements in forms reasonably satisfactory to CITY, indicating compliance with the insurance provisions of this AGREEMENT. COMPANY shall keep the insurance in effect, and the certificates evidencing the insurance on deposit with CITY, during the Term of the AGREEMENT and as the same may be extended.
SECTION 13. FREQUENCY INTERFERENCE.
A. COMPANY will not cause, permit or allow the installation, operation, maintenance or use of the ANTENNA FACILITIES or any other equipment installed pursuant to this AGREEMENT to interfere with: (1) any CITY use of the PROPERTY except that the foregoing shall not hinder or restrict COMPANY'S normal use of the LICENSED AREA as contemplated by this AGREEMENT and provided in Section 1; (2), CITY equipment used at the PROPERTY except that the foregoing shall not hinder 13
Market: San Francisco, Sacramento (South Bay). ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
or restrict COMPANY'S normal use of the LICENSED AREA as contemplated by this AGREEMENT and provided in Section 1; (3) CITY communications provided that the CITY communications operate and continue to operate within the applicable frequencies and in accordance with all applicable laws and regulations; and/or (4) or any pre-existing third party uses of the PROPERTY, including uses of communications equipment, which uses were authorized or planned by CITY prior to the execution of this AGREEMENT, provided that the third party communications users operate and continue to operate within the applicable frequencies and in accordance with all applicable laws and regulations. COMPANY shall immediately provide, in writing, to the CITY at the address set forth for notices in Section 15 herein, the frequencies utilized in the operation of the ANTENNA FACILITIES. COMPANY shall also provide the CITY, at the same address, with written notice of any intended changes in those frequencies, a description of those frequencies and the dates that those frequency changes are anticipated to occur, at least thirty (30) days prior to the date that those frequency changes are anticipated to occur. COMPANY shall not begin any work on the PROPERTY pursuant to this AGREEMENT until these frequencies have been approved in writing by CITY's Public Works Director or any other person that may be designated to make such approval by CITY's City Manager, which approval shall not be unreasonably withheld, conditioned or delayed.
B. Provided that the existing communications users (including the City) operate and continue to operate within their respective frequencies and in accordance with all applicable laws and regulations, COMPANY shall ensure that its use of the ANTENNA FACILITY does not interfere with any communication transmissions from the PROPERTY, including, if applicable and without limitation, the CITY's public safety transmissions, police and fire communications, CITY's internal or external communications, or communications by CITY's tenants or contractors.
C. If COMPANY's construction, installation, maintenance, operation, use or removal of the ANTENNA FACILITY violates this Section 13, COMPANY shall, within forty-eight (48) hours after receipt of written notice of such violation from CITY, eliminate such violation or interference. In the event any such violation or interference does not cease within the aforementioned cure period, COMPANY shall cease all operations which are suspected of causing such violation or interference ( except for intermittent testing to determine the cause of such interference) until the interference has been corrected.
D. Notwithstanding anything contained to the contrary herein, CITY will not use, nor will CITY permit its employees, tenants, licensees, invitees, agents or independent contractors to use, any portion of the PROPERTY in any way which interferes with the ANTENNA FACILITY, the operations of COMPANY or the rights of COMPANY under this AGREEMENT. CITY will cause such interference to cease within forty-eight (48) hours after receipt of written notice of interference from COMPANY. In the event any such interference does not cease within the aforementioned cure period, CITY shall cease all operations which are suspected of causing interference (except for 14
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
intermittent testing to determine the cause of such interference) until the interference has been corrected.
E. COMPANY shall use its best efforts to operate its communications equipment in a manner that is consistent with all applicable frequencies assigned to it by the Federal Communications Commission ("FCC"), if any, and, in any event, shall at all times operate in compliance with all applicable FCC rules and regulations.
SECTION 14. EMERGENCY.
A Notwithstanding Section 13, COMPANY agrees that in the event that an "emergency situation" (as defined below) occurs, and there are frequency interferences between CITY's communication equipment and that of COMPANY, CITY shall have the right to immediately shut off any power to the LICENSED AREA, and any equipment of COMPANY's located on the PROPERTY. CITY shall provide COMPANY immediate oral notice of the interference and power shut down and shall restore power as soon as reasonably possible once the frequency interference problem creating the emergency situation has been corrected. For purposes of this Section, CITY shall provide oral notice to AT&T Mobility Network Triage Center at 800-638-2822, Option #9 of COMPANY at the telephone number provided by COMPANY to PROJECT MANAGER. Except to the extent caused by the gross negligence or intentional acts or omissions of CITY and/or its agents, employees, and/or contractors, if an emergency situation occurs, and there are frequency interferences between CITY'S communication equipment and that of COMPANY, and as a result CITY shuts off power to the LICENSED AREA and any equipment of COMPANY's located on the PROPERTY, COMPANY agrees not to hold CITY responsible or liable for and shall protect, defend, indemnify and hold CITY harmless pursuant to SECTION 10 for any damage, loss, claim or liability of any nature suffered as a result of the loss of the use of, or of the power outage to, the LICENSED AREA or communication facilities on the LICENSED AREA at PROPERTY, including without limitation losses arising out of the inability to use facilities on the LICENSED AREA, including without limitation the ANTENNA FACILITY, and/or the inability of third parties to receive SERVICES, including SERVICES, from facilities located on the LICENSED AREA. At the CITY'S discretion, COMPANY agrees to install a master power "cut-off' switch on their equipment for the purpose of assisting CITY in such an emergency.
B. Unless otherwise specifically provided in a notice of termination of this AGREEMENT, CITY's exercise of the right to shut off any power to the ANTENNA FACILITY pursuant to this SECTION is not intended to constitute a termination of this AGREEMENT by either party. COMPANY and CITY shall meet after the CITY determines that an emergency situation has ended to establish the time and manner in which power shall be restored to the ANTENNA FACILITY.
C. For the purposes of this section, CITY shall have the sole discretion to determine what constitutes an "emergency situation" pursuant to this Section. These 15
Market: San Francisco, Sacramento (South Bay), ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
situations shall be limited to situations in which public safety or public utility communications are interrupted.
SECTION 15. NOTICES.
Except as otherwise specifically set forth and allowed under this AGREEMENT, all written notices, requests and demands herein required will be given by first class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid, to be effective when property sent and received, refused or returned undelivered. Notices will be addressed to the parties as follows:
To CITY:
With a copy to:
To COMPANY:
City Manager
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
Office of the City Attorney
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
New Cingular Wireless PCS, LLC
Attn: Network Real Estate Administration
Re: Cell Site#: CC0750
Cell Site Name: McKean Rd 2 (CA)
Fixed Asset#: 10151482
575 Morosgo Drive NE
Suite 13-F, West Tower
Atlanta, GA 30324
With a copy to AT & T Legal Department:
If sent via registered or certified mail to:
New Cingular Wireless PCS, LLC
AT & T Legal Department - Network Operations
Attn: Network Counsel
Re: Cell Site #:CC0750;
Cell Site Name: McKean Rd 2 (CA)
Fixed Asset#: 10151482
208 S. Akard Street
Dallas, TX 75202-4206
16
Market: San Francisco, Sacramento (South Bay), ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
If sent via nationally recognized overnight courier to:
New Cingular Wireless PCS, LLC
AT & T Legal Department - Network Operations
Attn: Network Counsel
Re: Cell Site #:CC0750
Cell Site Name: McKean Rd 2 (CA)
Fixed Asset #: 10151482
208 S. Akard Street
Dallas, TX 75202-4206
The copy sent to the AT&T Legal Department or to the Office of the City Attorney is an administrative step which alone does not constitute legal notice. Either party hereto may change the place for the giving of notice to it by thirty (30) days prior written notice to the other as provided herein.
SECTION 16. RIGHT TO USE SUBORDINATE.
The right to use the PROPERTY(excluding the LICENSED AREA) herein granted by CITY to COMPANY, and all rights and privileges hereunder, are and shall be subordinate to the rights of CITY and to other existing tenants to use and occupy, and to any occupancy by them of, the PROPERTY (excluding the LICENSED AREA.) SECTION 17. ASSIGNMENT.
COMPANY shall not voluntarily or by operation of law, assign, transfer, mortgage, sublet, or otherwise transfer or encumber all or any part of COMPANY's interest in this AGREEMENT or in the LICENSED AREA, without CITY's prior written consent, which will not be unreasonably withheld, delayed or conditioned; provided, however, COMPANY shall have the right to sublease or assign its rights under this AGREEMENT to any of its subsidiaries, affiliates or successor legal entities or to any entity acquiring substantially all of the assets of COMPANY.
SECTION 18. GOVERNING LAW.
This AGREEMENT shall be construed by, and in accordance with, the laws of the State of California.
SECTION 19. NO INTEREST IN PROPERTY.
Nothing herein shall be deemed to create a lease or easement of any property, or to grant any interest in the PROPERTY, other than a real property license to use the LICENSED AREA, terminable as set forth herein.
17
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
SECTION 20. INSPECTION.
The LICENSED AREA shall be at all times under control of the CITY, whose officials, employees and agents shall have the right to enter the LICENSED AREA, and all portions thereof on forty-eight (48) hours advance oral notice, for purposes of inspection (and other purposes contemplated by this AGREEMENT) at all times during the period covered by this AGREEMENT.
SECTION 21. UTILITIES.
COMPANY shall be solely responsible for ensuring that the LICENSED AREA has adequate electrical power and any other utility service necessary or useful to operation of the ANTENNA FACILITY. CITY is not obligated to make electricity or other utilities available if there is an interruption in such service to the LICENSED AREA or to the PROPERTY. COMPANY shall not do, nor shall it permit anything to be done, which may interfere with the effectiveness or accessibility of the utility, heating, ventilation, diesel exhaust or air conditioning systems or portions thereof of the PROPERTY.
CITY grants to any company providing utility or similar services, including electric power and telecommunications, to COMPANY a license over the Property, from an open and improved public road to the LICENSED AREA, and upon the LICENSED AREA, for the purpose of constructing, operating and maintaining such lines, wires, circuits, and conduits, associated equipment cabinets and such appurtenances thereto, as such companies may from time to time require in order to provide such services to the LICENSED AREA.
SECTION 22. NOT AGENT OF CITY.
Neither anything in this AGREEMENT nor any acts of COMPANY shall authorize COMPANY or any of its employees, agents or contractors to act as agent, contractor, joint venture or employee of CITY for any purpose.
SECTION 23. RESERVATION OF RIGHTS.
COMPANY understands, acknowledges and agrees that any and all authorizations granted to COMPANY under this AGREEMENT shall remain subject to all prior and continuing regulatory and proprietary rights and powers of CITY to regulate, govern and use CITY property, as well as any existing encumbrances, deeds, covenants, restrictions, easements, dedications and other claims of title that may affect CITY property. CITY and COMPANY agree that nothing contained in, or contemplated by, this AGREEMENT is intended to confer, convey, create or grant to COMPANY any perpetual interest in any CITY property or in any of CITY's public rights of way. 18
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
SECTION 24. CONFLICT OF INTEREST.
COMPANY shall avoid all conflict of interest or the appearance of conflict of interest in the performance of this AGREEMENT.
SECTION 25. ENVIRONMENTAL
A. CITY represents and warrants that to the best of its knowledge: (i) the PROPERTY, as of the date of this AGREEMENT, is free of hazardous substances, including asbestos-containing materials and lead paint, and (ii) the PROPERTY has never been subject to any contamination or hazardous conditions resulting in any environmental investigation, inquiry or remediation. Except for emergency back-up power supplies and cleaning solvents commonly used in telecommunication operations, COMPANY represents and warrants that COMPANY shall not bring any hazardous substances, including asbestos-containing materials and lead paint, onto any portion of the PROPERTY. CITY and COMPANY agree that each will be responsible for compliance with any and all applicable governmental laws, rules, statutes, regulations, codes, ordinances, or principles of common law regulating or imposing standards of liability or standards of conduct with regard to protection of the environment or worker health and safety, as may now or at any time hereafter be in effect, to the extent such apply to that party's activity conducted in or on the PROPERTY.
B. CITY and COMPANY agree to hold harmless and indemnify the other from, and to assume all duties, responsibilities and liabilities at the sole cost and expense of the indemnifying party for, payment of penalties, sanctions, forfeitures, losses, costs or damages, and for responding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or proceeding ("Claims"), to the extent arising from that party's breach of its obligations or representations under Section 25. CITY agrees to hold harmless and indemnify COMPANY from, and to assume all duties, responsibilities and liabilities at the sole cost and expense of CITY for, payment of penalties, sanctions, forfeitures, losses, costs or damages, and for responding to any Claims, to the extent arising from subsurface or other contamination of the PROPERTY with hazardous substances prior to the EFFECTIVE DATE of this AGREEMENT or from such contamination caused by the acts or omissions of CITY during the term. COMPANY agrees to hold harmless and indemnify CITY from, and to assume all duties, responsibilities and liabilities at the sole cost and expense of COMPANY for, payment of penalties, sanctions, forfeitures, losses, costs or damages, and for responding to any Claims, to the extent arising from hazardous substances brought onto the PROPERTY by COMPANY.
C. The indemnifications of this Section 25 specifically include reasonable costs, expenses and fees incurred in connection with any investigation of PROPERTY conditions or any clean-up, remediation, removal or restoration work required by any governmental authority. The provisions of this Section 25 will survive the expiration or termination of this AGREEMENT.
19
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
D. In the event COMPANY becomes aware of any hazardous materials or substances on the PROPERTY, or any environmental, health or safety condition or matter relating to the PROPERTY, that, in COMPANY's sole determination, renders the condition of the LICENSED AREA or PROPERTY unsuitable for COMPANY's use, or if COMPANY believes that the licensing or continued licensing of the LICENSED AREA would expose COMPANY to undue risks of liability to a government agency or third party, COMPANY will have the right, in addition to any other rights it may have at law or in equity, to terminate this AGREEMENT upon written notice to CITY.
SECTION 26. MISCELLANEOUS.
A. Whenever the singular number is used in this AGREEMENT and when required by the context, the same shall include the plural and the masculine gender shall include the feminine and neuter genders.
B. If there be more than one (1) entity designated in, or signatory to, this AGREEMENT, the obligations hereunder imposed upon COMPANY shall be joint and several; and the term COMPANY as used herein shall refer to each and every of said signatory parties, severally as well as jointly.
C. This instrument contains all of the agreements and conditions entered into and made by and between the parties and may not be modified orally, or in any manner, other than by an agreement in writing signed by all the parties hereto or their respective successors-in interest.
D. Time is, and shall be, of the essence for each term and provision of this AGREEMENT.
E. Each and every term, condition, covenant and provision of this AGREEMENT is and shall be deemed to be a material part of the consideration for CITY's entry into this AGREEMENT and any breach hereof by COMPANY shall be deemed to be a material breach. Each term and provision of this AGREEMENT performable by COMPANY shall be construed to be both a covenant and a condition.
F. The headings of the several paragraphs and sections of this AGREEMENT are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of any provisions of this AGREEMENT and shall not be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof.
G. In the event any covenant, condition or provision herein contained is held to be invalid by a court of competent jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained, provided the invalidity of any such covenant, condition or provision does not materially prejudice either CITY or COMPANY in its respective rights and 20
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
obligations contained in the valid covenants, conditions and provisions of this AGREEMENT.
H. All exhibits and addenda referred to herein, and any exhibits or schedules which may from time to time be referred to in any duly executed amendment hereto, are by such reference incorporated herein and shall be deemed a part of this AGREEMENT as if set forth fully herein.
I. This AGREEMENT shall be interpreted and construed only by the contents hereof, and there shall be no presumption or standard of construction in favor of or against either party.
J. Days, unless otherwise specified, shall mean calendar days.
K. Whenever in this AGREEMENT the approval or consent of a party is required, such approval or consent must be in advance, shall be in writing, and shall be executed by a person having the express authority to grant such approval or consent unless the terms of this AGREEMENT specifically allow an oral approval or consent of a party.
L. This AGREEMENT may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
M. The parties each agree that all activities undertaken and services provided pursuant to this AGREEMENT by that party shall be undertaken and provided by or on behalf of that party only in a manner that fully comports with all applicable laws.
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Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
SECTION 27. MEMORANDUM/SHORT FORM LICENSE.
Contemporaneously with the execution of this Agreement, the parties will execute a recordable Memorandum or Short Form of License in the form attached as Exhibit G (the "Memorandum"). Either party may record this Memorandum or Short Form License at any time during the term, in its absolute discretion; provided, however, that the recording party shall provide the other party to this AGREEMENT with a true, accurate and conformed copy of the recorded Memorandum within five (5) business days of its recordation. Thereafter during the term of this AGREEMENT, either party will, at any time upon thirty (30) business days' prior written notice from the other, execute, acknowledge and deliver to the other a recordable Memorandum or Short Form of License.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT as of the EFFECTIVE DATE.
ATTEST:
kLJJ)� 6f'y Clerk
Date: 1( �(I�
APPROVED:
�Daie: 7· · �/� j
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T :\Agreements-Contracts-Deeds\Cell Tower License Agreement.doc "COMPANY""
New Cingular Wireless PCS, LLC,
a Delaware limited liability
company
BY; AT&T Mobility Corporation
lts:Mana� By: 7- �el Guibord
Date: -z--2--i:S Director
Title: ConstructioA & Engineering
22
Market: San Francisco, Sacramento (South Bay) _________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
EXHIBIT A
PROPERTY DESCRIPTION
Location: 2275 Rolling Hills Drive, Morgan Hill, CA
The Property is legally described as: (See next page attached hereto and incorporated herein.)
23
Market: San Francisco, Sacramento (South Bay). ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
LEGAL DESCRIPTION
Real property in the City of Morgan Hill, County of Santa Clara, State of California, described as follows:
PARCEL 1:
BEGINNING AT THE EASTERLY TERMINUS Of THE LINE COMMON TO LOTS 101 AND 102, BEING A POINT IN THE CENTERLINE Of LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENillLED, "MORGAN HILL RANCH MAP NO. 3'', AND RECORDED IN BOOK G OF MAPS, PAGES 20 AND 21, SANTA CLARA COUNTY RECORDS, THENCE ALONG SAID COMMON LOT LINE THE FOLLOWING COURSES AND DISTANCES: NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° 57' 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST 534.04 FEET; NORTH 61° 14' 26" WEST, 347.00; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION; THENCE FROM SAID TRUE POINT Of BEGINNING, CONTINUING ALONG THE LAST MENTIONED LOT LINE, NORTH 61° 14' 26" WEST, 70.00 FEET; THENCE LEAVING SAID COMMON LOT LINE, NORTH 28° 45' 34" EAST, 60.00 FEET; THENCE SOUTH 61 ° 14' 26" EAST, 70.00 FEET; THENCE SOUTH 28° 45' 34" WEST, 60.00' TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION.
PARCEL 2:
A NON-EXCLUSIVE EASEMENT, FOR THE PURPOSE OF INGRESS AND EGRESS, AND THE
INSTALLATION AND MAINTENANCE OF WATER PIPELINES AND APPURTENANCES THERETO, APPURTENANT TO AND FOR THE BENEFIT OF PARCEL 1 HEREIN DESCRIBED, OVER THE FOLLOWING DESCRIBED PARCEL OF LAND:
BEGINNING AT THE EASTERLY TERMINUS OF THE LINE COMMON TO LOTS 101 AND 102,
BEING A POINT IN THE CENTERUNE OF LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENTITLED, "MORGAN HILL RANCH MAP NO. 3", AND RECORDED IN BOOK G OF MAPS PAGES 20 AND 21, SANTA CLARA COUNTY RECORDS, THENCE ALONG SAID COMMON LOT LINE THE FOLLOWING COURSES AND DISTANCES; NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° 57' 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST, 534.04 FEET; NORTH 61° 14' 26" WEST, 60.00 FEET; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION; THENCE LEAVING SAID TRUE POINT OF BEGINNING, CONTINUING ALONG THE LAST MENTIONED LOT LINE NORTH 61° 14' 26" WEST, 368.55 FEET; THENCE LEAVING SAID COMMON LOT LINE ALONG THE FOLLOWING COURSES AND DISTANCES; NORTH 61° 14' 26" WEST, 95.00 FEET; NORTH 27° 16' 00" EAST, 55.00 FEET; NORTH 88° 46' 00" EAST, 166.50 FEET; SOUTH 47° 28' 11" EAST, 328.66 FEET; SOUTH 27° 16' 00" WEST 60.00 FEET; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION.
EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PARCEL OF LAND.
BEGINNING AT THE EASTERLY TERMINUS Of THE LINE COMMON TO LOTS 101 AND 102,
BEING A POINT IN THE CENTERLINE OF LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENITTLED, "MORGAN HILL RANCH MAP NO. 3• AND RECORDED IN BOOK G OF MAPS, PAGES 20 AND 21, SANTA CLARA COUNTY RECORDS; THENCE ALONG SAID COMMON LOT LINE THE FOLLOWING COURSES AND DISTANCES: NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° sr 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST 534.04 FEET; NORTH 61° 14' 26" WEST, 417 FEET TO THE TRUE POINT OF BEGINNING OF THE PARCEL TO BE DESCRIBED; THENCE FROM SAID TRUE POINT OF BEGINNING NORTH 61° 14' 26" WEST, SO FEET; THENCE NORTH 28° 45' 34" EAST, 30 FEET; THENCE SOUTH 61° 14' 26" EAST, 50 FEET; THENCE SOUTH 28° 45' 34" WEST, 30 FEET TO THE TRUE POINT OF BEGINNING.
APN: 764-02-011
Market: San Francisco, Sacramento (South Bay). _________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
EXHIBIT B
DESCRIPTION OF THE SERVICES
Company shall provide services in connection with its federally licensed communications business including, but not limited to, two-way radio signal transmission and reception in its licensed frequencies disclosed to City per Section 13.A above, and in the manner permitted under its licensure by the Federal Communications Commission and the California Public Utilities Commission. 25
Market: San Francisco, Sacramento (South Bay) _________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number. 10151482
EXHIBIT C
DESCRIPTION OF LICENSED AREA
The LICENSED AREA includes both the concrete pad/equipment cabinet area and the monopole antenna. This includes at least 12 antennas and at least 240 square feet of ground space as shown and described in detail on Exhibit C-1, attached hereto and incorporated herein by reference.
26
�:it:�� s�;:�:�:cisi�·o�;�ramento (South Bay}, _________ _ CeU Site Name: McKean Rd 2
Fixed Asset Number: 10151482
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9 27
Market: San Francisco, Sacramento (South Bay) _________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
EXHIBIT D
ANTENNA FACILITY
Telecommunications facilities including, without limitation, a new 50' tall monopole with 12 antennas, as shown on the attached Exhibit D-1, attached hereto and incorporated herein by reference.
28
Marlcet San Francisco, Sacramento (South Bay)_
Celt Site Numbe1
Cell Site Name: �=o,===
Fixed Asset Number. 10151482_
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29
Market: San Francisco, Sacramento (South Bay). ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
1.2 RATE SCHEDULE
EXHIBIT E
CHARGES FOR ATTACHMENT OF TELECOMMUNICATION
ANTENNAS/EQUIPMENT TO CITY OF MORGAN HILL OWNED PROPERTIES* *
12 to 14 antennae and/or fenced area containing equipment or $40,000 per annum cabinet is less than 270 square feet
15 to 18 antennae and/or fenced area containing equipment or $48,000 per annum cabinet is 270 to 499 square feet
19 or more antennae and/or fenced area containing equipment $56,000 per annum or cabinet is 500+ square feet but not more than 24 antennas and 2000 square feet
Requests for facilities containing more than 24 antennae and/or foundation/surface area containing equipment in excess of 2000 square feet shall be reviewed and priced on a case-by-case basis
•Licensees which choose to pay for 5 years upon the Use Charge Commencement shall be charged the above rates less a 20% discount without any applicable annual increases. Notwithstanding anything to the contrary contained herein, the Use Charge shall be prorated for any partial portion of the 5 years (if this payment option is elected by COMPANY) or any partial year or month occurring after the commencement of the Use Charge. Nothing contained in this Exhibit E shall require, or shall be construed to require, CITY to approve any additional antenna beyond the ANTENNA FACILITY. 30
Market: San Francisco, Sacramento (South Bay), ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
EXHIBIT F
1. INSURANCE.
COMPANY shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to 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 form number GL 0002 covering commercial General Liability and Insurance Services Office form number GL 0404 covering Broad Form Commercial General Liability; or insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001), including, X, C, U.
1. Explosion, Collapse & Underground coverage.
2. Insurance Services Office form number CA 0001 (Ed. 12/90) covering Automobile Liability, code 1 "any auto" (including without limitation "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 for bodily injury, personal injury, and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage.
31
Market: San Francisco, Sacramento (South Bay). ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
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.
4. Property Insurance: Full replacement cost with no co-insurance penalty provision or COMPANY's self insurance program described in Section 1(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 contractors; or COMPANY shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in an amount specified by the CITY.
The parties to this AGREEMENT acknowledge and agree that at some point in the future COMPANY may determine that it is in COMPANY's best interests to move to a self-insurance program for other insurance in addition to its currently self-insured property insurance listed in Sections 1(A)(4) and 1(8)(4) above.. COMPANY shall timely and fully coordinate with CITY if COMPANY opts to move to a self insurance program in the future and shall in that case allow CITY a reasonable opportunity and period of time: ( 1) to perform reasonable due diligence to confirm that the criteria set forth in Section O.1.e set forth below would be met; and (2) to review such program in advance of making any such change. CITY reserves the right to require COMPANY to maintain the scope of insurance set forth in this EXHIBIT F, rather than move to a selfinsurance program if, in the CITY'S determination a proposed self insurance program would not adequately meet the criteria set forth in Section 0.1.e herein below.
D. Other Insurance Provisions.
The policies are to contain, or be endorsed to contain, the following provisions:
1. Commercial General Liability and Automobile Liability Coverage(s) a. The City of Morgan Hill, its officers, employees, agents and contractors are to be covered as additional insured(s) as respects: Liability arising out of activities performed by or on behalf of, COMPANY; products and completed operations of COMPANY; premises owned, leased or used by COMPANY; and automobiles owned, leased, hired or borrowed by COMPANY. Additional insured status shall: (i) be limited to bodily injury, property damage or personal and advertising injury caused, in whole or in part, by COMPANY, its employees, agents or independent contractors; (ii) not extend to claims for punitive or exemplary damages arising out of the acts or omissions of CITY, its officers, employees, agents or contractors or 32
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
where such coverage is prohibited by law, or to claims arising out of the gross negligence of CITY, its employees, agents or independent contractors; (iii) not exceed COMPANY's indemnification obligation under this AGREEMENT, if any. The coverage shall contain no other special limitations on the scope of protection afforded to CITY, its officers, employees, agents and contractors.
b. COMPANY's required insurance coverage shall be primary insurance as respects CITY, its officers, employees, agents and contractors. Any insurance or self-insurance maintained by CITY, its officers, employees, agents or contractors shall be excess of COMPANY's insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by COMPANY shall not affect coverage provided CITY, its officers, employees, agents, or contractors.
d. Coverage shall state that COMPANY's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. e. As provided for in Section C hereinabove, if COMPANY moves to a self-insurance program in the manner described in Section C hereinabove, and includes CITY as an additional insured, COMPANY shall: (i) maintain sufficient capital reserves as approved annually by Ernst & Young or any successor auditing firm; (ii) comply with applicable laws, including the timely filing of required government documents; (iii) ensure that COMPANY or any parent company providing such insurance maintains a net worth of at least $500,000,000 throughout the term of this AGREEMENT; and (iv) use an independent third party administrator to manage all claims.
In the event that COMPANY elects, under and in the manner provided for in this EXHIBIT F, to self-insure its obligation to include CITY as an additional insured, the following provisions apply: CITY shall (i) promptly and no later than thirty (30) days after notice thereof provide COMPANY with written notice of any claim, demand, lawsuit, or the like for which it seeks coverage pursuant to this Section and provide COMPANY with copies of any demands, notices, summonses, or legal papers received in connection with such claim, demand, lawsuit, or the like; (ii) not settle any such claim, demand, lawsuit, or the like without the prior written consent of COMPANY; and (iii) fully cooperate with COMPANY in the defense of the claim, demand, lawsuit, or the like.
33
Market: San Francisco, Sacramento (South Bay) ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
2. All Coverage(s)
Each insurance policy required by this AGREEMENT shall be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced in limits except after thirty (30) days' prior written notice has been given to CITY.
E. Acceptability of Insurers.
Insurance is to be placed with insurers rated at least A-VII by AM Best ..
F. Verification of Coverage.
COMPANY shall furnish CITY with certificates of insurance and with endorsements affecting coverage required by this AGREEMENT. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf.
Proof of insurance shall be mailed to the following address or any subsequent address as may be directed in writing by the Risk Manager:
G. Subcontractors.
CITY OF MORGAN HILL
Risk Manager
17555 Peak Avenue
Morgan Hill, California 95112-5509
COMPANY shall include all subcontractors as insured(s) under its policies or shall obtain separate certificates and endorsements for each subcontractor. 34
Market: San Francisco, Sacramento (South Bay), __________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
When Recorded Return to:
New Cingular Wireless PCS, LLC
Attn: Network Real Estate Administration
575 Morosgo Drive NE, 13F, West Tower
Atlanta, GA 30324
APN: 764 02 011
Cell Site#: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset #: 10151582
State: California
County: Santa Clara
EXHIBIT G
(Space Above This Line For Recorder's Use Only)
MEMORANDUM OF LICENSE
This Memorandum of License is entered into, effective on the latest signature date below, by and between City of Morgan Hill, a municipal corporation, having a mailing address of 17575 Peak Avenue, Morgan Hill, CA 95037 (hereinafter referred to as "City") and New Cingular Wireless PCS, LLC, a Delaware limited liability company, having a mailing address of 575 Morosgo Drive NE, 13F, West Tower, Atlanta, GA 30324 (hereinafter referred to as "Company").
1. City and Company entered into a certain Installation and Property Use Agreement ("Agreement") on the __ day of _______ , 20_, for the purpose of installing, operating and maintaining a communications facility and other improvements. All of the foregoing are set forth in the Agreement.
2. The initial term will be five (5) years ("Initial Term") commencing on the Effective Date, which is the last signature date on the signature page of the Agreement, with two (2) successive five (5) year options to renew.
3. The portion of the land being licensed to Company (the "Licensed") is described in Exhibit 1 annexed hereto.
4. This Memorandum of License is not intended to amend or modify, and shall not be deemed or construed as amending or modifying, any of the terms, conditions or provisions of the Agreement, all of which are hereby ratified and affirmed. In the event of a conflict between the provisions of this Memorandum of License and the provisions of the Agreement, the provisions of the Agreement shall control. The Agreement shall be binding upon and inure lo the benefit of the parties and their respective heirs, successors, and assigns, subject to the provisions of the Agreement.
35
Market: San Francisco, Sacramento (South Bay) __________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
IN WITNESS WHEREOF, the parties have executed this Memorandum of License as of the day and year written below.
CITY:
City of Morgan Hill,
a municipal corporation
By: _____________ _
Print Name:
Its: City Clerk
Date:
Prepared by:
Busch Law Firm
22525 SE 64'h Place, Suite 288
Issaquah, WA 98027
COMPANY:
New Cingular Wireless PCS, LLC,
a Delaware limited liability company
By: AT & T Mobility Corporation
Its: Manager
By: _____________ _
Print Name:
Its:
Date:
36
Market: San Francisco, Sacramento (South Bay), __________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
CITY ACKNOWLEDGEMENT
STATE OF CALIFORNIA
COUNTY OF ______ _
On--------=-----:---:------:--:----:-:- before me, _______________ , the undersigned, a Notary Public in and for said State, 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 PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________ _
Name __________ _
(typed or printed) (Seal)
37
Market: San Francisco, Sacramento (South Bay) __________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
COMPANY ACKNOWLEDGEMENT
STATE OF CALIFORNIA
COUNTY OF ______ _
On _______________ before me, _______________ , the
undersigned, a Notary Public in and for said State, 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 PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________ _
Name __________ _
(typed or printed) (Seal)
38
Market: San Francisco, Sacramento (South Bay) __________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
EXHIBIT l
DESCRIPTION OF LICENSED AREA
to the Memorandum of License dated _______ , 201_, by and between City of Morgan Hill, a municipal corporation, as City, and New Cingular Wireless PCS, LLC, a Delaware limited liability company, as Company.
The License Area is described and/or depicted as follows:
Property Legal Description: See next page attached hereto and incorporated herein by reference.
39
Market: San Francisco, Sacramento (South Bay). ________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482
LEGAL DESCRIPTION
Real property in the City of Morgan Hill, County of Santa Oara, State of California, described as follows:
PARCEL 1:
BEGINNING AT THE EASTERLY TERMINUS OF THE LINE COMMON TO LOTS 101 AND 102,
BEING A POINT IN THE CENTERLINE OF LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENTITLED, "MORGAN HILL RANCH MAP NO. 3", AND RECORDED IN BOOK G OF MAPS, PAGES 20 AND 21, SANTA CLARA COUNn' RECORDS, THENCE ALONG SAID COMMON LOT LINE THE FOLLOWING COURSES AND DISTANCES: NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° 57' 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST 534.04 FEET; NORTH 61° 14' 26" WEST, 347.UU; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION; THENCE FROM SAID TRUE POINT Of BEGINNING, CONTINUING ALONG THE LAST MENTIONED LOT LINE, NORTH 61 ° 14' 26" WEST, 70.00 FEET; THENCE LEAVING SAID COMMON LOT LINE, NORTH 28° 45' 34" EAST, 60.00 FEET; THENCE SOUTH 61° 14' 26" EAST, 70.00 FEET; THENCE SOUTH 28° 45' 34" WEST, 60.00' TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION.
PARCEL 2:
A NON-EXCLUSIVE EASEMENT, FOR THE PURPOSE OF INGRESS AND EGRESS, AND THE
INSTALLATION AND MAINTENANCE OF WATER PIPELINES AND APPURTENANCES THERETO, APPURTENANT TO AND FOR THE BENEAT OF PARCEL 1 HEREIN DESCRIBED, OVER THE FOLLOWING DESCRIBED PARCEL OF LAND:
BEGINNING AT THE EASTERLY TERMINUS OF THE LINE COMMON TO LOTS 101 AND 102,
BEING A POINT IN THE CENTERLINE OF LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENTITLED, "MORGAN HILL RANCH MAP NO. 3", AND RECORDED IN BOOK G OF MAPS PAGES 20 AND 21, SANTA CLARA COUNTY RECORDS, THENCf ALONG SAID COMMON LOT LINE THE FOLLOWING COURSES AND DISTANCES; NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° 57' 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST, 534.04 FEET; NORTH 61° 14' 26" WEST, 60.00 FEET; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION; THENCE LEAVING SAID TRUE POINT OF BEGINNING, CONTINUING ALONG THE LAST MENTIONED LOT LINE NORTH 61 ° 14' 26" WEST, 368.55 FEET; THENCE LEAVING SAID COMMON LOT LINE ALONG THE FOLLOWING COURSES AND DISTANCES; NORTH 61° 14' 26" WEST, 95.00 FEET; NORTH 27° 16' 00" EAST, 55.00 FEET; NORTH 88° 46' 00" EAST, 166.50 FEET; SOUTH 47° 28' 11" EAST, 328.66 FEET; SOUTH 27° 16' 00" WEST 60.00 FEET; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION.
EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PARCEL Of LANO.
BEGINNING AT THE EASTERLY TERMINUS Of THE LINE COMMON TO LOTS 101 AND 102, BEING A POINT IN THE CENTERLINE Of LLAGAS AVENUE AS SAID LOTS AND AVENUE ARE SHOWN ON THE MAP ENTITLED, "MORGAN HILL RANCH MAP NO. 3" AND RECORDED IN BOOK G OF MAPS, PAGES 20 AND 21, SANTA CLARA COUNn' RECORDS; THENCE ALONG SAID COMMON LOT UNE THE FOLLOWING COURSES AND DISTANCES: NORTH 73° 00' 00" WEST,
61.38 FEET; SOUTH 84° 32' 10" WEST, 859.53 FEET; NORTH 68° 57' 14" WEST, 1040.59 FEET; NORTH 59° 19' 11" WEST 534.04 FEET; NORTH 61° 14' 26" WEST, 417 FEET TO THE TRUE POINT OF BEGINNING OF THE PARCEL TO BE DESCRIBED; THENCE FROM SAID TRUE POINT OF BEGINNING NORTH 61° 14' 26" WEST, 50 FEIT; THENCE NORTH 28° 45' 34" EAST, 30 FEET; THENCE SOUTH 61° 14' 26" EAST, 50 FEET; THENCE SOUTH 28° 45' 34" WEST, 30 FEET TO THE TRUE POINT Of BEGINNING.
APN: 764-02-011
Market: San Francisco, Sacramento (South Bay), ____________ _ Cell Site Number: CC0750
Cell Site Name: McKean Rd 2
Fixed Asset Number: 10151482 _
4 3 2
(E) EQUIPMENT
SHELTER (BY
OTHERS)
PROPOSED AT&T MONOPOLE
AND ANTHINAS WITH
RELATED EQUIPMENT
LEASE EXHIBIT
JOll NUWID't
25736-6.35-AA CNU0750 L(Ol
B
A
41
ACORD9 CERTIFICATE OF LIABILITY INSURANCE I �
DA'TE (MM/DDIYYYYI
06/28/2013
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s).
PRODUCER
Marsh USA Inc.
701 Market Street, Suite 1100
St. Louis, MO 63101
Attn: [email protected]
018566-GAW,CRT-13-14 X X
INSURED
New Cingular Wireless PCS, LLC
One AT&T Plaza
208 South Akard,
Room 2731
Dallas, TX 75202
COVERAGES CERTIFICATE NUMBER·
CvnTACT
NAME:
PHONE
l&ll' .,n l'vtl• I
FAX
IA/C Nol:
E-MAIL
ADDRESS:
INSURER(SI AFFORDING COVERAGE
INSURER A : Old Republic Insurance Co
INSURERS:
INSURER C:
INSURER D:
INSURER E:
INSURER F:
CHl-00470775!Kl2 REVISION NUMBER·
NAIC#
24147
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. N01WlTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT 'MTH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE POLICY EFF POLICY EXP
LTR LIMITS , .. c .. ''""'"' POLICY NUMBER IMM/DOIYYYYI IMM/DOIYYYYI A GENERAL LIABILITY MWl'f 60244 06/01/2013 06/01/2014 EACH OCCURRENCE $ 1,000,000 COMMERCIAL GENERAL LIABILITY PREMISES IE���encel $ - 1,000,000 D CLAIMS-MADE 0 OCCUR MEO EXP (Any one person) $ N/A
PERSONAL & ADV INJURY s 1,000,000
GENERAL AGGREGATE $ 10,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 1,000,000 rn POLICY n �f,P,: n LOC $ A AUTOMOBILE LIABILITY MWT821932 06/01/2013 06/01/2014 fe���'ii��1 f1NGLE LIMIT
s 1,000,000
ANY AUTO - BODILY INJURY (Per person) s
ALLO',M,!ED � SCHEDULED
AUTOS AUTOS BODILY INJURY (Per accident) $
...._ NON-0',M,!ED rte��r'Tnt�AMAGE
HIRED AUTOS AUTOS
$
UMBRELLA LIAB H
OCCUR EACH OCCURRENCE $
EXCESS LIAB CLAIMS-MADE AGGREGATE $
DED I I RETENTION$ $
A WORKERS COMPENSATION MWC 118473 00 06/01/2013 06/01/2014 X I l;��TfJ,¥;; I j O
Jr- AND EMPLOYERS' LIABILITY YIN 1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE 0 E.L EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? NIA 1,000,000 (Mandatory In NH) E.L. DISEASE - EA EMPLOYEE $ iti��ftfi� 'b�PERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Addltlonol Remari<a Schedule, If more space Is required) Re: City of Morgan Hill, 17575 Peak Avenue, Morgan Hill, CA 95037 The City of Morgan Hill, its officers, employees, agenls and contractors are included as Additional Insured under the General Liability and Automobile Liability policies bul only with respecl lo the requirements of the contract belween the Certificate Holder and the Insured. This insurance is primary with respect to the interest of the Additional Insured and any other insurance maintained by Additional Insured is excess and noncontributory with this insurance.
CERTIFICATE HOLDER CANCELLATION
City of Morgan Hill SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Attn: City Manager THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 17575 Peak Ave. ACCORDANCE WITH THE POLICY PROVISIONS.
Morgan Hill, CA 95037
AUTHORIZED REPRESENTATIVE
of Marsh USA Inc.
I Manashi Mukherjee ...l>'lA-vu>okA �
© 1988-2010 ACORD CORPORATION. All rights reserved.
ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD
AGENCY CUSTOMER ID: _0-'--1_8...;.5_;_66 ______________ _ LOC #: St. Louis
ADDITIONAL REMARKS SCHEDULE Page 2 of 2
AGENCY NAMED INSURED
Marsh USA Inc. New Cingular Wireless PCS, LLC
One AT&T Plaza
POLICY NUMBER 208 South Akard,
Room 2731
Dallas, TX 75202
CARRIER I NAIC CODE
EFFECTIVE DATE:
ADDITIONAL REMARKS
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance Coverage evidenced applies to Subsidiaries of AT&T Inc., EXCLUDING Pacific Bell Telephone Company, Nevada Bell Telephone Company, Southwestern Bell Telephone Company, Illinois Bell Telephone Company, Indiana Bell Telephone Company, Michigan Bell Telephone Company, The Ohio Bell Telephone Company, Wisconsin Bell, Inc., The Southern New England Telephone Company and BellSouth Telecommunications, LLC, WITH THE EXCEPTION OF Workers' Compensation.
ACORD 101 (2008/01) © 2008 ACORD CORPORAT ION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NOTICE OF CANCELLATION TO CERTIFICATE HOLDERS
This endorsement modifies the notice of cancellation of insurance provided hereunder by adding the following:
A. In the event this policy is cancelled for any permissible reason, other than for nonpayment of premium, we shall endeavor to provide advance written notice of cancellation to certificate holders set out in the schedule on file with the Company, after notifying the first Named Insured of such cancellation. Notice of cancellation to certificate holders may be made by any commercially reasonable means, including mail, electronic mail, facsimile transmission or courier service.
B. This advance written notification of a cancellation of coverage is intended as a courtesy only. Our failure to provide such advance written notification will not extend the policy cancellation date, nor negate cancellation of the policy.
All other terms and conditions of this policy remain unchanged.
PIL 0291010
MWTB 21932 AT&T Inc. 06/01/2013 - 06/01/2014
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NOTICE OF CANCELLATION TO CERTIFICATE HOLDERS
This endorsement modifies the notice of cancellation of insurance provided hereunder by adding the following:
A. In the event this policy is cancelled for any permissible reason, other than for nonpayment of premium, we shall endeavor to provide advance written notice of cancellation to certificate holders set out in the schedule on file with the Company, after notifying the first Named Insured of such cancellation. Notice of cancellation to certificate holders may be made by any commercially reasonable means, including mail, electronic mail, facsimile transmission or courier service.
B. This advance written notification of a cancellation of coverage is intended as a courtesy only. Our failure to provide such advance written notification will not extend the policy cancellation date, nor negate cancellation of the policy.
All other terms and conditions of this policy remain unchanged.
PIL 029 10 10
MWZY60244 AT&T Inc. 06/01/2013 - 06/01/2014
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE POLICY
NOTICE OF CANCELATION TO CERTIFICATE HOLDERS
This endorsement modifies the notice of cancelation of insurance provided hereunder by adding the following:
A. In the event this policy ls canceled for any permissible reason, other than for nonpayment of premium, we shall endeavor to provide advance written notice of cancelation to certificate holders set out in the schedule on file with the Company, after notifying the Insured first named in item 1 of the Information Page of such cancelation. Notice of cancelation to certificate holders may be made by any commercially reasonable means, including mail, electronic mail, facsimile transmission or courier service.
8. This advance written notification of a cancelation of coverage is intended as a courtesy only. Our failure to provide such advance written notification will not extend the policy cancelation date, nor negate cancelation of the policy.
All other terms and conditions of this policy remain unchanged.
PC 0101010
AT&T Services, Inc., and Affiliates MWC118473 00 Policy Term: 6-1-13 - 6-1-14
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED WHERE REQUIRED
UNDER CONTRACT OR AGREEMENT
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
Paragraph 2. of SECTION II - WHO IS AN INSURED is amended to include any person or organization for whom you have agreed under contract or agreement to provide insurance. However, the insurance provided shall not exceed the scope of coverage or limits of this policy. Notwithstanding the foregoing sentence, in no event shall the insurance provided exceed the scope of coverage or limits required by said contract or agreement.
Where required by contract, we will consider our policy to be primary under any other insurance maintained by the additional insured for injury or damage covered by this endorsement and that their policy will be noncontributing with this insurance.
CA 739 003 0609
IIIWTB 21931 A TAT Inc. 06/01/1013 • 06/01,701'
ll 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
INSURANCE PRIMARY AS TO CERTAIN ADDITIONAL INSUREDS
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
SECTION IV - BUSINESS AUTO CONDITIONS, B. General Conditions, 5. Other Insurance, c. is amended by the addition of the following sentence:
The insurance afforded under this policy to an additional insured will apply as primary insurance for such additional insured where so required under an agreement executed prior to the date of accident. We will not ask any insurer that has issued other insurance to such additional insured to contribute to the settlement of •1oss• arising out of such accident. In no event shall the insurance provided exceed the scope of coverage or limits required by said contract or agreement.
All other terms and conditions remain unchanged.
CA .13\'l O 12 0600
MWTII 21931 ATUlm: ot,/Of/2013 -H/01.1201'
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED AMENDMENT - PRIMARY AND NON-CONTRIBUTORY This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
As respects any person(s) or organization(s) included as an additional insured and with whom you have agreed in a written contract, agreement or permit to provide primary insurance on a non-contributory basis, this insurance will be primary to and non-contributing with any other insurance available to such person(s) or organization(s). In no event shall the insurance provided exceed the scope of coverage or limits required by sald contract or agreement.
GL 739 042 0612
IIWZ'flOJU
�11!!!1:M>'lll:lll13!;'1!1ZICFll!llil-lZIW:IDIZ11r..,.,._ ________ _ AT&Tlnc. NIV11201J • otl'Of/2014
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED WHERE REQUIRED
UNDER CONTRACT OR AGREEMENT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
Paragraph 2. of SECTION II - WHO IS AN INSURED is amended to include any person or organization for whom you have agreed under contract or agreement to provide insurance. Hov.(ever, the insurance provided shall not exceed the scope of coverage or limits of this policy. Notwithstanding the foregoing sentence, in no event shall the insurance provided exceed the scope of coverage or limits required by said contract or agreement.
Where required by contract, we will consider our policy to be primary under any other insurance maintained by the additional insured for injury or damage covered by this endorsement and that their policy will be noncontributing with this insurance.
GL 739 006a 0609
AIWlY 60244 AT&T me 06/01/WfJ - 06.'f'1n014
9 CITY COUNCIL STAFF REPORT
MEETING DATE: September 16, 2026
PREPARED BY:
Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager
RATIFY CITY POSITION ON PENDING LEGISLATION
RECOMMENDATION(S)
Ratify the City’s position supporting pending legislation Assembly Bill 1821 (Pacheco) California Public Records Act: agency response time.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Advocating for Local, Regional, and State Legislative Initiatives REPORT NARRATIVE:
Per Resolution No. 20-010 (Attachment 1), the City Council recognizes that occasional situations arise where communication indicating support or opposition to pending State, County, or other regional boards’ legislation or action that could be important and may occur prior to the next scheduled City Council meeting. Under these circumstances, the Mayor or City Manager is delegated the authority to prepare, execute and transmit written or verbal communications indicating a City’s position when any of the following criteria are met: a) the League of California Cities, or a similar organization, has requested the City to comment or take a position, b) the timing to express a position occurs prior to the next scheduled Council meeting, and c) the pending State, County, or other regional boards’ legislation or action clearly supports or clearly hinders the implementation or fulfillment of an adopted City Council Priority, Goal, or Strategy in a substantial manner such that it is in the best interest of the City to indicate its comment or position. When this occurs, a written report to the City Council for acceptance is required at the next possible meeting.
Throughout the legislative session, the League of California Cities (League) Regional Public Affairs Manager provides relevant updates on bills that may affect local governments. Staff reviews these measures, evaluates their potential impacts on the City of Morgan Hill, and determines whether City action is warranted.
AB 1821 (Pacheco) California Public Records Act: agency response time Provides state and local agencies additional time to respond to California Public Records Act requests by changing the existing 10-day response deadline and allowable
9 14-day extension from calendar days to business days, while maintaining the requirement to promptly provide responsive public records.
Cities generally do not have staff available on weekends or holidays; however, California Public Records Act response deadlines continue to run during these periods.
Establishing a business-day standard ensures that cities have the full, intended number of working days to conduct thorough and accurate searches for disclosable records. For this reason, on August 27, 2026, the City communicated its support for AB 1821 by submitting a letter to the Governor urging him to sign the bill (Attachment 2). The full text of AB 1821 is included as Attachment 3.
COMMUNITY ENGAGEMENT:
Inform
This report serves to inform the Community on the City’s position on pending legislation that directly impacts the City of Morgan Hill.
ALTERNATIVE ACTIONS:
The City Council could rescind the position taken.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
City Council periodically ratifies City positions on various pending State, County or other regional board legislation or actions that have a direct impact on the City of Morgan Hill.
FISCAL AND RESOURCE IMPACT:
Tracking legislation is an activity included in the annual workplan of the City Manager’s Office.
CEQA (California Environmental Quality Act):
Not a Project
Administrative action/activity without an impact.
Attachment 1
Attachment 1
Attachment 1
17575 Peak Avenue
Morgan Hill, CA 95037-4128
TEL: (408) 779-7271
FAX: (408) 779-3117
www.morganhill.ca.gov
August 27, 2026
Governor Gavin Newsom
1021 O St, Suite 900
Sacramento, CA 95814
RE: AB 1821 (Pacheco) California Public Records Act: agency response time.
REQUEST FOR SIGNATURE
Dear Governor Newsom,
The City of Morgan Hill respectfully requests your signature on AB 1821 (Pacheco), which would shift from “calendar days” to “business days” for initial determinations and extensions. This is a common‑sense update that reflects the operational realities of cities. Cities generally do not have staff available on weekends or holidays, yet California Public Records Act deadlines continue to run during these periods. A business‑day standard ensures cities have the full, intended number of working days to conduct thorough and accurate searches for disclosable records.
Under existing law, cities must determine within 10 days whether a request seeks disclosable records, with a possible 14‑day extension in unusual circumstances. Neither time frame accounts for weekends or holidays when staff are unavailable. AB 1821 corrects this discrepancy by converting these periods to business days, helping cities comply with the law more effectively and consistently.
Modern government operations now generate far more electronic records, including emails, texts, and internal messages, which require extensive searching, review, and redaction of sensitive information such as attorney‑client communications, personal identifiers, and medical or criminal data. At the same time, cities have lost key revenue sources that once offset these costs: Proposition 42 eliminated state reimbursement for CPRA compliance, and a 2020 California Supreme Court ruling restricted cities from recovering staff time or technical costs associated with producing records. As a result, local governments must absorb the full cost of increasingly time‑intensive requests.
In 2025, the City of Morgan Hill received approximately 298 Public Records Act requests, many involving extensive email searches, police records, video, development records, and coordination among several departments. These requests are coordinated through the City Clerk’s Office and frequently require records and review from Police, Development Services, Finance, Information Technology, and the City Attorney’s Office. Because Morgan Hill operates with lean staffing, weekends and holidays can significantly reduce the time available to identify responsive records, coordinate departmental searches, complete necessary legal review, and protect confidential information. Calculating the response period in business days would provide a more practical timeframe while allowing the City to continue providing timely and accurate access to public records.
Attachment 2
The business‑day clarification in the bill is a narrow but meaningful improvement that will help cities comply with the law more effectively and consistently. For these reasons, the City of Morgan Hill respectfully requests your signature on AB 1821 (Pacheco).
Sincerely,
Mark Turner
Mayor
cc: Assemblymember Gail Pellerin
Assemblymember Blanca Pacheco
Senator Dave Cortese
Montana Cruz, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected] Attachment 2
ASSEMBLY BILL NO. 1821
ENROLLED AUGUST 27, 2026
PASSED IN SENATE AUGUST 25, 2026
PASSED IN ASSEMBLY AUGUST 25, 2026
AMENDED IN SENATE JUNE 25, 2026
AMENDED IN SENATE JUNE 10, 2026
AMENDED IN ASSEMBLY APRIL 06, 2026
AMENDED IN ASSEMBLY MARCH 16, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Introduced by Assembly Member Pacheco
February 11, 2026
An act to amend Section 7922.535 of the Government Code, relating to public records.
LEGISLATIVE COUNSEL'S DIGEST
AB 1821, Pacheco. California Public Records Act: agency response time.
Existing law, the California Public Records Act, requires each state or local agency, upon a request for a copy of records that reasonably describes an identifiable record or records, to make the records promptly available to any person upon payment of fees covering direct costs of duplication, or a statutory fee if applicable, except with respect to public records exempt from disclosure by express provisions of law.
Existing law requires each agency, within 10 days of a request for a copy of records, to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person of the determination and the reasons therefor. Existing law authorizes that time limit to be extended by no more than 14 days under unusual circumstances, as defined.
This bill would instead require each agency to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person as described above within 10 business days of a request for a copy of records. The bill would instead authorize the time period for each agency to respond to be extended by no more than 14 business days.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
Attachment 3
This bill would make legislative findings to that effect.
Digest Key
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no Bill Text
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:
SECTION 1. Section 7922.535 of the Government Code is amended to read:
7922.535. (a) Each agency, upon a request for a copy of records, shall, within 10 business days from receipt of the request, determine whether the request, in whole or in part, seeks copies of disclosable public records in the possession of the agency and shall promptly notify the person making the request of the determination and the reasons therefor. If the agency determines that the request seeks disclosable public records, the agency shall also state the estimated date and time when the records will be made available. (b) In unusual circumstances, the time limit prescribed in this article and Article 1 (commencing with Section 7922.500) may be extended by written notice from the head of the agency or a designee to the person making the request, setting forth the reasons for the extension and the date on which a determination is expected to be dispatched. The notice shall not specify a date that would result in an extension for more than 14 business days. (c) As used in this section, “unusual circumstances” means the following, but only to the extent reasonably necessary to the proper processing of the particular request:
(1) The need to search for and collect the requested records from field facilities or other establishments that are separate from the office processing the request.
(2) The need to search for, collect, and appropriately examine a voluminous amount of separate and distinct records that are demanded in a single request.
(3) The need for consultation, which shall be conducted with all practicable speed, with another agency having substantial interest in the determination of the request or among two or more components of the agency having substantial subject matter interest therein.
(4) The need to compile data, to write programming language or a computer program, or to construct a computer report to extract data.
(5) The inability of the agency, because of a cyberattack, to access its electronic servers or systems in order to search for and obtain a record that the agency believes is responsive to a request and is maintained on the servers or systems in an electronic format.
(A) This paragraph does not relieve the agency of its obligation to comply with subdivision (a) when the requested record is maintained in a location other than on the electronic server or system affected by the cyberattack, or maintained in a nonelectronic format.
(B) This paragraph applies only until the agency regains its ability to access its electronic servers or systems and search for and obtain electronic records that may be responsive to a request.
Attachment 3
(6) The need to search for, collect, and appropriately examine records during a state of emergency proclaimed by the Governor in the jurisdiction where the agency is located when the state of emergency currently and directly affects, due to the state of emergency, the agency’s ability to timely respond to requests due to staffing shortages or closure of facilities where the requested records are located. (A) This paragraph shall not apply to a request for records created during and related to the state of emergency proclaimed by the Governor.
(B) For purposes of this paragraph, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2).
SEC. 2. The Legislature finds and declares that Section 1 of this act, which amends Section 7922.535 of the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act balances the right of the public to access public records in a timely manner while acknowledging that state and local agencies provide a variety of public services and may need additional time to properly respond to requests.
SEC. 3. The Legislature finds and declares that Section 1 of this act, which amends Section 7922.535 of the Government Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act balances the right of the public to access public records in a timely manner while acknowledging that state and local agencies provide a variety of public services and may need additional time to properly respond to requests.
Attachment 3
10 CITY COUNCIL STAFF REPORT
MEETING DATE: September 16, 2026
PREPARED BY:
Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND AUGUST 2026
FINANCIAL AND INVESTMENT REPORTS
RECOMMENDATION(S)
Receive and file reports.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
Strategic Priorities 2026-2027
Fiscal Sustainability
REPORT NARRATIVE:
As part of the City Council’s commitment to maintaining a high level of transparency and being responsible stewards of public funds, staff is providing this monthly budget update, along with the August 2026 financial and investment reports.
August 2026 Financial Report
The Revenue and Expense Summary through August 2026 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $3.5 million or about 6% of the budget. Expenditures, including encumbrances, amounted to $12.4 million, of which approximately $2.9 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $11.5 million. This represents an increase of $0.9 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $0.1 million, primarily due to overall cost increases.
Budget Update
On September 2, 2026, the Superior Court issued a tentative ruling in favor of the County, finding that the State cannot reduce the allocation of the Excess ERAF to cities and counties. If the ruling is finalized and ultimately upheld, the potential impact to the City is approximately $700,000 per year in ongoing revenue, as well as approximately $2.7 million currently set aside in reserves for potential Excess ERAF repayment.
However, because the ruling is tentative and the litigation remains ongoing, there continues to be uncertainty regarding the ultimate fiscal impact.
10 Regarding water revenue, Morgan Hill residents consumed approximately 4% less water for the month of July compared to the average for the prior three years. As a result, no revenue stabilization water rate was implemented.
COMMUNITY ENGAGEMENT:
Inform
Finance staff prepares these financial reports to inform City officials, the Council, the community, and various lenders and stakeholders about the financial health of the organization, which assists each one of the interested parties in making sound financial and investment decisions.
ALTERNATIVE ACTIONS:
Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council receives and files the financial and investment report for each month.
At the September 16, 2015 meeting, City Council recommended monthly financial and investment reports be agendized under the Consent Agenda, and quarterly financial and investment reports be presented to City Council as an “Other Business” item.
FISCAL AND RESOURCE IMPACT:
The preparation of the report is a part of the Finance workplan.
CEQA (California Environmental Quality Act):
Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FINANCE DEPARTMENT
CITY OF MORGAN HILL
August 31, 2026 - 17% of Year Complete
Prepared by:
Monthly Financial and Investment Reports
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2026-27
FOR THE MONTH ENDED AUGUST 2026 – 17% OF YEAR COMPLETE
General Fund – Revenues through August totaled $3.5 million, or about 6% of the budgeted as some of the major revenue categories such as property tax are received later in the fiscal year. Regarding property tax, the City’s current fiscal year revenue estimate, net of the Excess ERAF set-aside, is $22.8 million. On September 2, 2026, the Superior Court issued a tentative ruling in favor of the County, finding that the State cannot reduce the allocation of these funds to cities and counties. If the ruling is finalized and ultimately upheld, the potential impact to the City is approximately $700,000 per year in ongoing revenue, as well as approximately $2.7 million currently set aside in reserves for potential Excess ERAF repayment. However, because the ruling is tentative and the litigation remains ongoing, there continues to be uncertainty regarding the ultimate fiscal impact. As for sales tax, there’s been no changes to prior forecast. The City's current fiscal year sales tax revenue estimate, before tax rebates, is $12.5 million.
The chart below shows historical General Fund revenues by major revenue category from FY22-23 through FY24-25 Actual, Un-audited FY25-26, FY26-27 Budget, and YTD as of August 31, 2026.
General Fund expenditures and encumbrances through August totaled $12.4 million, of which approximately $2.9 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $11.5 million. This represents an increase of $0.9 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $0.1 million, primarily due to overall cost increases. Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, show a negative impact to the General Fund of approximately $1.9 million as of August 31, 2026, including encumbrances. Excluding encumbrances, recreation operations generated approximately $0.3 million $18.1 $19.1 $19.1 $21.1 $22.8
$12.7 $12.2 $12.1 $13.0 $12.5
$5.7 $6.0 $6.2 $6.0 $6.3 $8.1 $9.2 $9.6 $11.2 $7.8 $12.1 $9.4 $10.2 $9.5 $52.4 $7.6 $56.0 $57.2 $59.7 $61.3
$3.5
0 10
20 30
40 50
60 70
FY22-23 FY23-24 FY24-25 Un-audited
FY25-26
Budget
FY26-27
YTD
FY26-27
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2026-27
FOR THE MONTH ENDED AUGUST 2026 – 17% OF YEAR COMPLETE
in revenues over expenditures through August. Overall, recreation operations are expected to remain on target with the adopted budget.
The chart below shows the historical net impact of Recreation Operations to the general fund.
Due to longstanding governmental accounting and budgeting convention, the City’s recreation operations are not charged for indirect costs (known in Morgan Hill as “General Fund Administration”) from the central services departments of City Attorney, City Manager, and Administrative Services.
The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
Development Services Fund – Revenues through August totaled $1.0 million compared to the prior year to date amount of approximately $1.1 million. Expenditures, including encumbrances, totaled $0.8 million.
Debt Service Funds – Expenditures through August totaled $1,412. The debt service for the first half of the year includes both interest and principal, while the second half will include interest only. Debt service payments were scheduled when the bonds were issued and are budgeted for the months specified in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues. ($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 Un-audited
FY26-27
Budget
Millions (S)
Historical Net GF Impact
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2026-27
FOR THE MONTH ENDED AUGUST 2026 – 17% OF YEAR COMPLETE
Wastewater Operations – Revenues through August 31, 2026 totaled $2.0 million. Expenditures and outstanding encumbrances totaled $2.6 million or 12% of the budget. The table below shows historical Wastewater Operations revenues and expenditures from FY22-23 through FY24-25 Actual, Un-audited FY25-26, FY26-27 Budget, and YTD as of August 31, 2026. (amount in millions) FY22-23 FY23-24 FY24-25
Un-audited
FY25-26
Budget
FY26-27
YTD
FY26-27
Revenues 15.3 15.2 18.2 21.2 22.8 2.0
Expenditures 16.0 14.9 18.1 20.2 22.6 2.6
Operating Margin (0.7) 0.3 0.1 1.0 0.2 (0.6)
Operating Margin
without Encumbrances (0.7) 0.3 0.1 1.3 0.2 (0.5)
Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through August 31, 2026 totaled $2.5 million. Water Operations expenditures, including outstanding encumbrances, totaled $3.3 million. Morgan Hill residents consumed about 4% less water for the month of July compared to the prior three-year average. As such, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY22-23 through FY24-25 Actual, Un-audited FY25-26, FY26-27 Budget, and YTD as of August 31, 2026.
(amount in millions) FY22-23 FY23-24 FY24-25
Un-audited
FY25-26
Budget
FY26-27
YTD
FY26-27
Revenues 18.1 18.7 21.5 22.4 23.5 2.5
Expenditures 18.0 19.1 21.5 22.1 23.6 3.3
Operating Margin (0.4) 0.1 - 0.3 (0.1) (0.8)
Operating Margin
without Encumbrances (0.4) 0.1 - 0.5 (0.1) 0.1
Investments – Four securities were either called or matured, and two new securities were purchased.
Total interest earnings received on investments were $368,000 during the month.
% OF ACTUAL PLUS % OF
FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 3,460,322 $ 6% $ 12,386,027 18%
Development Services 965,848 13% 817,484 11%
Wastewater Operations 1,976,690 9% 2,599,787 12%
Wastewater Other 2,060,012 5% 4,385,738 7%
Water Operations 2,451,786 10% 3,255,884 14%
Water Other 1,225,678 11% 5,387,113 27%
Other Special Revenues * 295,769 3% 2,775,657 14%
Capital Projects & Streets 1,191,713 4% 6,862,678 21%
Debt Service 113,424 17% 1,412 0%
Internal Service 2,087,528 13% 4,940,003 33%
TOTAL FOR ALL FUNDS $ 15,828,771 7% $ 43,411,783 17%
* Includes all Special Revenue Funds except Development Services Fund and Street Funds.
REVENUES EXPENSES
0% 5% 10% 15% 20% 25% 30% 35%
General
Development
Services
Wastewater
Operations
Wastewater Other
Water Operations
Water Other
Other Special
Revenues *
Capital Projects
& Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
August 31, 2026 - 17% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
17%
% OF PRIOR YEAR % CHANGE FROM
REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 22,780,000 $ 16,245 $ 0% 12,787 $ 27%
Sales Tax 12,474,064 - - N/A
Franchise Tax 3,531,135 - - N/A
Hotel Tax 2,800,000 272,024 10% 242,341 12%
Other Agencies 1,024,693 130,759 13% 47,852 173%
Service Charges 12,099,035 2,234,638 19% 2,062,128 8%
Interest/Other 3,493,740 498,448 14% 478,683 4%
Transfers In 3,054,013 308,207 10% 413,140 -25%
TOTAL REVENUES 61,256,680 $ 3,460,322 $ 6% 3,256,931 $ 6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
August 31, 2026 - 17% of Year Complete
17%
ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 7,716,943 $ 955,199 12% 1,032,424 $ -7% Community Services 19,993,112 5,001,923 25% 4,432,135 13% Police 27,147,242 3,911,515 14% 3,865,205 1%
Fire 11,808,075 2,305,119 20% 1,997,512 15%
Transfers Out 1,533,626 212,271 14% 209,846 1%
TOTAL EXPENDITURES $ 68,198,997 $ 12,386,027 18% 11,537,123 $ 7% 0% 10% 20% 30%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
August 31, 2026 - 17% of Year Complete
17%
City of Morgan Hill
Recreation Report - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
% of
Budget August 2026 YTD Budget
Revenues
Membership Services & Rec Programs 7,127,339 $ 749,238 $ 1,360,846 $ Facility Rentals 1,493,888 209,832 339,002
Community Services 318,500 49,128 53,817
Transfers in 100,000 8,333 16,667
Total Revenues 9,039,727 $ 1,016,532 $ 1,770,331 $ 20%
Less: Expenditures
Membership & Program Services 7,640,405 $ 907,402 $ 1,240,203 $ Facility Rentals 1,337,644 92,114 156,042
Community Services 973,023 65,610 114,183
Total Expenditures 9,951,074 $ 1,065,125 $ 1,510,429 $ 15% Net Impact without encumbrances (911,347) $ (48,593) $ 259,903 $ Encumbrances - - 2,192,564
Net Impact with encumbrances (911,347) $ (48,593) $ (1,932,661) $
The chart below shows cash balances by fund type reconciled to City's financial system:
City of Morgan Hill
Monthly Investment Report - August 31, 2026
The following are the snapshots of City's investment portfolio as of August 31, 2026. The first chart shows the portfolio composition by investment type:
LAIF - $10.0M
5% CA Class - $5.6M
3%
Treasury - $15.9M
8%
Money Market -
$3.1M
1%
Federal Agency Issues-
$157.1M
75%
Certificate of Deposits -
$1.8M
1%
Bond Reserves/Trust -
$14.3M
7%
Cash & Other Deposits - $0.1M
<1%
Investment Portfolio Composition - $209.9 Million
LAIF - $10.0M
CA Class - $5.6M
Treasury - $17.9M
Money Market - $3.1M
Federal Agency Issues-
$157.1M
Certificate of Deposits -
$1.8M
Bond Reserves/Trust -
$14.3M
Cash & Other Deposits -
$0.1M
General Fund, $27.2M
Development Services,
$2.9M
Water - Operations,
$2.0M
Water Other, $34.6M
Sewer - Operations,
$2.4M
Sewer Other, $56.7M
Other Special Revenue,
$17.6M
Streets and Capital
Projects, $32.9M
Debt Service , $0.5M
Internal Service,
$26.5M
Agency Funds (assessment
dists./refundable deposits),
$6.6M
Cash Balances by Fund Type - $209.9 Million
The following chart illustrates a yield comparison by month among the City's portfolio, LAIF and 2-Year US Treasury:
The chart below illustrates monthly average days to maturity of the City's portfolio along with the weighted average yield for the past two years:
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Yield Portfolio vs. Benchmarks
LAIF Yield 2 Yr US-Treasury
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
0 200
400
600
800
1000
1200
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
CITY
City of Morgan Hill
Investment Portfolio Detail
As of August 31, 2026
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $ 10,030,307 $ 10,030,307 4.8% $ 10,018,997 3.84% California C L A S S 5,596,601 5,596,601 2.7% 5,596,601 3.75% WFB Money Market 1,094,285 1,094,285 0.5% 1,094,285 3.59% US Bank - Portfolio of Securities
Dreyfus Treasury Agency MM 261908107 2,052,334 2,052,334 1.0% 2,052,334 3.56% Treasury Note 91282CCZ2 10/8/2021 1,987,656 1,999,796 1.0% 1,995,080 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688 1,995,517 1.0% 1,992,160 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719 2,019,559 1.0% 1,968,980 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323 1,996,950 1.0% 1,983,160 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536 1,908,009 0.9% 1,877,900 3.61% 8/31/2028 8/31/2028 Treasury Note 31282CFJ5 10/7/2024 1,949,794 1,965,329 0.9% 1,928,440 3.76% 8/31/2029 8/31/2029 Treasury Note 91282CFY2 12/19/2024 1,959,077 1,970,461 0.9% 1,966,480 4.39% 11/30/2029 11/30/2029 Treasury Note 91282CJM4 12/9/2025 2,057,023 2,046,859 1.0% 1,991,880 3.77% 11/30/2030 11/30/2030 Treasury Note 91282CNH0 6/8/2026 2,026,314 1,990,300 0.9% 1,984,060 4.16% 6/15/2028 6/15/2028 Treasury Note 91282CCV1 8/19/2026 1,892,994 1,884,376 0.9% 1,877,900 4.17% 8/31/2028 8/31/2028 FHLB Bond 3130A8XY4 9/13/2021 2,103,340 2,000,575 1.0% 1,998,900 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960 1,999,914 1.0% 1,998,480 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000 3,000,000 1.4% 2,993,280 1.13% 9/5/2026 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000 2,000,000 1.0% 1,995,220 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000 3,000,000 1.4% 2,993,250 1.05% 9/30/2026 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000 3,000,000 1.4% 2,993,190 1.02% 9/30/2026 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000 2,000,000 1.0% 1,992,460 1.00% 10/19/2026 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000 2,000,000 1.0% 1,988,800 1.30% 11/18/2026 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000 2,000,000 1.0% 1,986,300 1.74% 1/19/2027 1/19/2027 FHLB Bond 3130B2P58 9/26/2024 2,003,014 2,000,000 1.0% 1,962,220 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000 1,996,253 1.0% 1,974,700 4.32% 10/15/2026 10/15/2029 FAMCMTN Bond 31424WZC9 5/7/2025 3,000,000 3,000,000 1.4% 2,959,650 4.55% 11/7/2026 5/7/2030 FAMCMTN Bond 31424WB50 5/28/2025 2,000,000 2,000,000 1.0% 1,978,760 4.74% 11/28/2026 5/28/2030 FAMCMTN Bond 31424WG30 6/26/2025 1,200,000 1,200,000 0.6% 1,198,596 4.33% 9/26/2026 6/26/2028 FFCB Bond 3133ETMB0 6/27/2025 2,000,775 2,000,000 1.0% 1,986,000 4.65% 9/24/2026 6/24/2030 FAMCMTN Bond 31424WG55 7/1/2025 2,000,000 2,000,000 1.0% 1,989,900 4.60% 10/1/2026 7/1/2030 FFCB Bond 3133ETNA1 7/2/2025 2,000,000 2,000,000 1.0% 1,988,400 4.50% 9/5/2026 1/2/2030 FNMA Bond 3136GAM22 8/12/2025 2,988,270 2,998,634 1.4% 2,952,000 4.14% 2/12/2027 8/12/2030 FAMCMTN Bond 31424WN81 8/12/2025 2,000,000 2,000,000 1.0% 1,978,620 4.39% 11/12/2026 8/12/2030 FNMA Bond 3136GAQF9 9/3/2025 2,000,000 2,000,000 1.0% 1,970,560 4.25% 6/3/2027 6/3/2030 FFCB Bond 3133ETXY8 9/16/2025 2,000,000 2,000,000 1.0% 1,958,040 4.00% 9/16/2026 9/16/2030 FHLB Bond 3130B7SF2 9/18/2025 2,000,222 2,000,000 1.0% 1,956,040 4.00% 9/17/2026 9/17/2030 FNMA Bond 3136GAUR8 9/25/2025 2,000,000 2,000,000 1.0% 1,936,000 4.20% 9/18/2026 9/18/2030 FNMA Bond 3136GAVD8 9/26/2025 2,000,000 2,000,000 1.0% 1,974,440 4.13% 6/26/2027 9/26/2030 FHLB Bond 3130B7YU2 10/15/2025 2,000,000 2,000,000 1.0% 1,969,720 4.33% 9/5/2026 10/15/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 1.0% 1,960,380 4.12% 9/5/2026 10/21/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 1.0% 1,960,380 4.12% 9/5/2026 10/21/2030 FNMA Bond 3136GAYT0 10/22/2025 2,000,000 2,000,000 1.0% 1,969,220 4.00% 10/23/2026 10/23/2028 FNMA Bond 3136GAZ44 10/24/2025 2,000,000 2,000,000 1.0% 1,962,920 4.00% 10/15/2026 10/15/2030 FHLMCMTN Bond 3134HB3J8 11/3/2025 2,000,000 2,000,000 1.0% 1,981,640 4.00% 11/1/2026 11/1/2028 FNMA Bond 3136GC3B9 11/5/2025 2,000,000 2,000,000 1.0% 1,978,740 4.25% 9/5/2026 11/5/2030 FNMA Bond 3136GC2M6 11/6/2025 2,000,000 2,000,000 1.0% 1,973,000 4.08% 11/6/2026 5/6/2030 FNMA Bond 3136GC3V5 11/6/2025 2,000,000 2,000,000 1.0% 1,968,000 4.13% 11/6/2026 11/6/2030 FNMA Bond 3136GC5Z4 11/18/2025 2,000,000 2,000,000 1.0% 1,978,800 4.13% 11/18/2026 5/18/2029 FHLMCMTN Bond 3134HB6G1 11/20/2025 2,000,000 2,000,000 1.0% 1,985,320 4.00% 9/20/2026 11/20/2028 FHLMCMTN Bond 3134HB7G0 11/20/2025 2,000,000 2,000,000 1.0% 1,965,480 4.15% 11/13/2026 11/13/2030 FAMCMTN Bond 31424W3P5 11/25/2025 1,000,000 1,000,000 0.5% 995,130 4.13% 11/25/2026 11/25/2030 FHLMCMTN Bond 3134HCFN4 12/10/2025 2,000,000 2,000,000 1.0% 1,980,300 4.08% 9/10/2026 12/10/2029 FNMA Bond 3136GCAE5 12/11/2025 2,000,000 2,000,000 1.0% 1,961,340 4.03% 6/11/2027 12/11/2030 FHLMCMTN Bond 3134HCGL7 12/11/2025 2,000,000 2,000,000 1.0% 1,976,820 4.05% 9/11/2026 12/11/2028 FHLMCMTN Bond 3134HCGL7 12/11/2025 2,000,000 2,000,000 1.0% 1,976,820 4.05% 9/11/2026 12/11/2028 FFCB Bond 3133ET3X3 12/12/2025 2,000,000 2,000,000 1.0% 1,977,240 4.26% 9/5/2026 12/12/2030 FHLMCMTN Bond 3134HCCW7 12/15/2025 2,000,000 2,000,000 1.0% 1,963,920 4.25% 9/2/2026 12/2/2030
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FHLMCMTN Bond 3134HCFX2 12/23/2025 2,000,000 2,000,000 1.0% 1,964,520 4.18% 12/23/2026 12/30/2030 FFCB Bond 3133ET6F9 1/8/2026 2,000,000 2,000,000 1.0% 1,968,880 4.06% 9/5/2026 7/8/2030 FNMA Bond 3136GCD93 1/8/2026 2,000,000 2,000,000 1.0% 1,956,560 4.06% 1/8/2027 1/8/2031 FHLB Bond 3130B9A83 1/28/2026 2,000,000 2,000,000 1.0% 1,956,600 4.00% 1/28/2028 1/28/2031 FHLMCMTN Bond 3134HCRN1 1/28/2026 2,000,000 2,000,000 1.0% 1,976,940 4.15% 1/28/2027 1/28/2031 FHLB Bond 3130B9EP1 2/6/2026 2,000,000 2,000,000 1.0% 1,972,480 4.00% 9/6/2026 8/6/2029 FNMA Bond 3136GCP66 2/26/2026 2,000,000 2,000,000 1.0% 1,973,940 3.88% 11/26/2026 2/26/2029 FNMA Bond 3136GCPB5 2/27/2026 2,000,000 2,000,000 1.0% 1,970,480 4.00% 9/27/2026 2/27/2030 FHLMCMTN Bond 3134HCXT1 3/9/2026 2,000,000 2,000,000 1.0% 1,977,960 4.00% 9/9/2026 3/9/2029 FHLB Bond 3130B9RG7 3/9/2026 2,000,000 2,000,000 1.0% 1,976,280 4.00% 9/9/2026 3/9/2029 FNMA Bond 3136GCSX4 3/10/2026 1,500,000 1,500,000 0.7% 1,473,690 4.00% 9/10/2027 3/10/2031 FHLB Bond 3130B9SX9 3/11/2026 1,500,000 1,500,000 0.7% 1,480,650 4.13% 3/11/2027 3/11/2031 FHLMCMTN Bond 3134HCZA0 3/12/2026 2,000,000 2,000,000 1.0% 1,991,620 4.15% 9/12/2026 3/12/2029 FHLMCMTN Bond 3134HCZB8 3/16/2026 2,000,000 2,000,000 1.0% 1,988,960 4.00% 9/16/2026 3/16/2028 FHLMCMTN Bond 31428JEC7 3/23/2026 2,000,000 2,000,000 1.0% 1,973,780 4.00% 3/23/2027 3/23/2029 FHLB Bond 3130B9XA3 3/24/2026 2,000,000 2,000,000 1.0% 1,992,320 4.00% 9/24/2026 3/24/2028 FHLMCMTN Bond 3134HCZT9 3/24/2026 2,000,000 2,000,000 1.0% 1,972,220 4.25% 3/24/2027 3/24/2031 FHLMCMTN Bond 3134HCC64 3/26/2026 2,000,000 2,000,000 1.0% 1,984,700 4.20% 3/26/2027 3/26/2029 FFCB Bond 3133EWJQ4 3/27/2026 2,000,000 2,000,000 1.0% 1,993,540 4.39% 3/27/2028 3/27/2029 FFCB Bond 3133EWLL2 4/16/2026 2,000,000 2,000,000 1.0% 1,980,260 4.09% 4/16/2027 4/16/2029 FHLB Bond 3130BACG0 4/23/2026 2,000,000 2,000,000 1.0% 1,968,200 4.25% 4/23/2027 4/23/2031 FHLMCMTN Bond 3134HCP29 4/27/2026 2,000,000 2,000,000 1.0% 1,973,580 4.05% 4/27/2027 4/27/2029 FNMA Bond 3136GD4B6 4/28/2026 2,000,000 2,000,000 1.0% 1,986,580 4.00% 10/28/2026 4/28/2028 FHLB Bond 3130BAHC4 4/30/2026 2,000,000 2,000,000 1.0% 1,982,260 4.13% 10/30/2026 4/30/2029 FAMCMTN Bond 31428JGW1 5/4/2026 2,000,000 2,000,000 1.0% 1,975,720 4.07% 5/4/2027 5/4/2029 FHLB Bond 3130BAK22 5/8/2026 2,000,000 2,000,000 1.0% 1,965,440 4.22% 5/8/2028 5/8/2031 FHLB Bond 3130BAMR5 5/12/2026 2,000,000 2,000,000 1.0% 1,988,180 4.05% 5/12/2027 5/12/2028 FHLB Bond 3130BAQU4 5/20/2026 2,000,000 2,000,000 1.0% 1,989,340 4.13% 5/20/2027 11/20/2028 FFCB Bond 3133EWRD4 6/1/2026 2,000,000 2,000,000 1.0% 1,987,520 4.42% 6/1/2027 6/1/2029 FAMC Bond 31428JKC0 6/5/2026 2,000,000 2,000,000 1.0% 1,975,880 4.36% 6/5/2029 6/5/2031 FFCB Bond 3133EWVV9 7/13/2026 2,000,000 2,000,000 1.0% 1,998,960 4.13% 7/13/2027 7/13/2027 FHLB Bond 3130BBPG4 7/30/2026 2,000,000 2,000,000 1.0% 1,999,140 4.30% 1/27/2027 8/27/2027 FFCB Bond 3133EWZT0 8/26/2026 3,000,000 3,000,000 1.4% 2,997,420 4.09% 11/25/2026 8/25/2027 CD - Morgan Stanley Bank 61690DGT9 11/8/2023 250,000 250,000 0.1% 253,838 5.05% 11/8/2028 11/8/2028 CD - Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000 250,000 0.1% 253,838 5.05% 11/8/2028 11/8/2028 CD - American Express 02589AF98 11/8/2023 250,000 250,000 0.1% 253,580 5.00% 11/8/2028 11/8/2028 CD - State Bank India 8562834U7 11/24/2023 250,000 250,000 0.1% 253,615 5.00% 11/24/2028 11/24/2028 CD - JPMorgan Chase 46659CLN8 9/30/2025 250,000 250,000 0.1% 244,965 4.13% 9/30/2030 9/30/2030 CD - Sallie Mae 795451EE9 12/10/2025 250,000 250,000 0.1% 244,468 3.90% 12/10/2030 12/10/2030 CD - Toyotal Financial 89235MTV3 4/16/2026 250,000 250,000 0.1% 245,960 4.10% 4/16/2031 4/16/2031 Sub Total/Average $ 178,651,041 $ 178,774,868 85.2% $ 176,872,213 3.72% Total City Managed/Average $ 195,372,234 $ 195,496,062 93.2% $ 193,582,096 3.73% Bond Reserve Accounts - Held By Trustees $ 6,430,174 $ 6,430,174 3.1% $ 6,430,174 Cash/Deposits $ 40,123 $ 40,123 0.0% $ 40,123
PARS and CALPERS CERBT Trust $ 7,887,404 $ 7,887,404 3.8% $ 11,527,154 GRAND TOTAL/AVERAGE $ 209,729,936 $ 209,853,763 100.0% $ 211,579,547
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 3.84% $ 10,030,307 4.8% $ 10,018,997 California CLASS All Funds Pooled 3.75% 5,596,601 2.7% 5,596,601 US Bank - Portfolio of Securities All Funds Pooled 3.72% 178,774,868 85.2% 176,872,213 WFB MMA All Funds Pooled 3.59% 1,094,285 0.5% 1,094,285 SUBTOTAL $ 195,496,062 93.2% $ 193,582,096
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 3.33% 58 0.0% 58
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 3.33% 74 0.0% 74
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 3.30% 6,430,041 3.1% 6,430,041 SUBTOTAL 6,430,174 3.1% 6,430,174
Other Cash/Deposits
General Checking All Funds (5,727) 0.0% (5,727)
Workers' Comp Administrators Workers' Comp 30,000 0.0% 30,000 Petty Cash & Emergency Cash General Fund 15,850 0.0% 15,850 CALPERS CERBT - OPEB Trust 5,237,404 2.5% 7,758,337
PARS - PENSION Trust 2,650,000 1.3% 3,768,817 **
SUBTOTAL 7,927,527 3.8% 11,567,277
Total Cash and Investments $ 209,853,763 100.0% $ 211,579,547 ** As of 7/31/2026
CASH ACTIVITY SUMMARY
FY 2026-27
Unaudited
07/01/2026 Change in 7/30/2026
Fund Type Balance Cash Balance Balance
General Fund $ 30,297,897 $ (3,152,969) $ 27,144,928
Development Services 3,082,174 (142,375) 2,939,799
Water - Operations 1,355,647 621,545 1,977,191
Water Other 34,218,298 409,562 34,627,860
Sewer - Operations 5,019,269 (2,656,079) 2,363,190
Sewer Other 53,238,999 3,490,015 56,729,014
Other Special Revenue 18,519,935 (925,947) 17,593,988
Streets and Capital Projects 32,371,396 545,069 32,916,465 Debt Service 362,999 111,630 474,628
Internal Service 29,748,957 (3,257,832) 26,491,125
Agency Funds (assessment dists./refundable deposits) 6,596,569 (994) 6,595,574 Total $ 214,812,138 $ (4,958,375) $ 209,853,763
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.
I certify that information on the investment report has been reconciled to the general ledger and bank statements and that there are sufficient funds to meet the expenditure requirements of the City for the next six months. The portfolio is in compliance with the City of Morgan Hill Investment Policy and all State laws and regulations.
Prepared by: ____________________________________ Approved by:
Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Cindy Murphy, Treasurer
CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF AUGUST 31, 2026
FOR THE FISCAL YEAR OF 2026-27
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 19,166,000 19,166,000 $ n/a - $ - $ n/a - Property Tax - RPTTF Residual Distribution 3,257,000 3,257,000 n/a - - n/a - Property Tax - Supplemental Roll 357,000 357,000 16,245 5% 12,787 3,458 27% Sales Tax 12,014,063 12,014,063 n/a - - n/a -
Public Safety Sales Tax 460,001 460,001 n/a - - n/a -
Transient Occupancy Taxes 2,800,000 2,800,000 272,024 10% 242,341 29,683 12% Franchise (Refuse ,Cable ,PG&E) 3,531,135 3,531,135 n/a - - n/a - Property Transfer Tax 636,000 636,000 56,721 9% 61,549 (4,828) -8% TOTAL TAXES 42,221,199 42,221,199 344,990 1% 316,678 28,313 9%
LICENSES/PERMITS
Business License 215,000 215,000 30,735 14% 48,981 (18,246) -37% Other Permits 188,443 188,443 80,238 43% 92,670 (12,432) -13% TOTAL LICENSES/PERMITS 403,443 403,443 110,973 28% 141,650 (30,678) -22%
FINES AND PENALTIES
Parking Enforcement 6,800 6,800 2,582 38% 408 2,174 533% Bails & Fines 55,000 55,000 n/a - - n/a -
Administrative Citations 21,000 21,000 1,128 5% 3,700 (2,572) -70% TOTAL FINES AND PENALTIES 82,800 82,800 3,710 4% 4,108 (398) -10%
OTHER AGENCIES
Motor Vehicle in-Lieu 73,000 73,000 n/a - - n/a -
Other Revenue - Other Agencies 1,024,693 1,024,693 130,759 13% 47,852 82,908 173% TOTAL OTHER AGENCIES 1,097,693 1,097,693 130,759 12% 47,852 82,908 173%
CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 2,712 8% 1,266 1,446 114% Business License Application Review 67,000 67,000 13,405 20% 7,507 5,898 79% Membership Services & Rec Programs 7,127,339 7,127,339 1,360,846 19% 1,383,577 (22,731) -2% Facility Rentals 1,493,888 1,493,888 339,002 23% 293,640 45,361 15% Community Services 318,500 318,500 53,817 17% 9,788 44,029 450% General Administration Overhead 2,272,653 2,272,653 379,106 17% 280,559 98,546 35% Other Charges Current Services 786,155 786,155 85,750 11% 85,790 (40) 0% TOTAL CURRENT SERVICES 12,099,035 12,099,035 2,234,638 18% 2,062,128 172,510 8%
OTHER REVENUE
Use of money/property 1,426,142 1,426,142 289,904 20% 256,767 33,137 13% Other Revenues 872,355 872,355 37,141 4% 14,608 22,533 154% TOTAL OTHER REVENUE 2,298,497 2,298,497 327,045 14% 271,375 55,670 21%
TRANSFERS IN
One Time Transfer 165,000 165,000 27,500 17% 27,500 0% - Public Safety Facilities Fund 50,000 50,000 8,333 17% 8,333 0% - Supplemental Law Enforcement Fund 300,000 300,000 n/a - - n/a - Countywide Solid Waste 558,305 558,305 93,051 17% 93,994 (943) -1% Streets 904,768 904,768 n/a - - n/a -
Park Maintenance - - n/a - 108,333 (108,333) -100%
Sewer Operations 447,420 447,420 74,570 17% 72,398 2,172 3% Water Operations 447,420 447,420 74,570 17% 72,398 2,172 3% Open Space 81,100 81,100 13,517 17% 13,517 n/a -
Park Development 100,000 100,000 16,667 17% 16,667 n/a - TOTAL TRANSFERS IN 3,054,013 3,054,013 308,207 10% 413,140 (104,933) -25% TOTAL GENERAL FUND 61,256,680 61,256,680 3,460,322 6% 3,256,931 203,392 6%
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 899,368 899,368 81,471 9% 74,785 6,687 9% Interest / Other Revenue/Other Charges 10,605 10,605 414 4% 613 (199) -32% 202 STREET MAINTENANCE 909,973 909,973 81,885 9% 75,397 6,488 9%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 19,927 19,927 2,585 13% 2,322 11% 263
Police Grant/SLEF/JAG 200,000 200,000 n/a - - n/a -
205 SUPPLEMENTAL LAW ENFORCEMENT FUND 219,927 219,927 2,585 1% 2,322 11% 263 206 DEVELOPMENT SERVICES
Building Fees 4,187,600 4,187,600 776,322 19% 515,636 260,686 51% Planning Fees 1,559,395 1,559,395 58,750 4% 285,954 (227,204) -79% Engineering Fees 1,241,322 1,241,322 96,137 8% 192,566 (96,429) -50% Other Revenue/Current Charges 228,729 228,729 34,639 15% 65,146 (30,507) -47% 206 DEVELOPMENT SERVICES 7,217,046 7,217,046 965,848 13% 1,059,301 (93,454) -9% 207 LONG RANGE PLANNING 1,321,984 1,321,984 150,540 11% 146,741 3,799 3% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 1,214 1,214 295 24% 314 -6% (20) 215 and 216 HCD BLOCK GRANT 1,214 1,214 295 24% 314 -6% (20) 225 ASSET SEIZURE 3,829 3,829 446 12% 475 -6% (30)
229 LIGHTING AND LANDSCAPE 176,265 176,265 855 0% 911 -6% (56) 230 COMMUNITY FACILITIES DISTRICT 36,669 36,669 695 2% 742 -6% (46) 232 ENVIRONMENTAL PROGRAMS 507,935 507,935 77,632 15% 81,281 (3,649) -4% 234 MOBILE HOME PARK RENT STAB. 3,168 3,168 375 12% 387 -3% (12) 236 HOUSING MITIGATION 6,520,773 6,520,773 43,458 1% 287,885 (244,427) -85% 240 EMPLOYEE ASSISTANCE 1,349 1,349 694 51% 1,275 (582) -46% 246 COUNTYWIDE SOLID WASTE 1,734,132 1,734,132 1,904 0% 252,254 (250,350) -99% 255 HOUSING SUCCESSOR AGENCY 203,000 203,000 16,159 8% 21,200 (5,041) -24% 260 PUBLIC ART 1,035 1,035 131 13% 167 -21% (36)
TOTAL SPECIAL REVENUE FUNDS 18,858,300 18,858,300 1,343,502 7% 1,930,654 (587,152) -30%
CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 969,510 969,510 9,834 1% 127,943 (118,109) -92% 302 PARK MAINTENANCE - - n/a 45 8,385 (8,340) -99%
303 LOCAL DRAINAGE 3,805,189 3,805,189 172,254 5% 17,736 154,518 871% 304 LOCAL DRAINAGE/NON AB1600 201,413 201,413 32,018 16% 26,092 5,927 23% 306 AGRICULTURE & OPEN SPACE PRESERVATION 110,558 110,558 9,311 8% 47,877 (38,567) -81% 308 STREET CIP 8,235,362 8,235,362 350,851 4% 343,092 7,759 2% 309 TRAFFIC IMPACT 4,216,414 4,216,414 228,217 5% 77,241 150,977 195% 315 PUBLIC SAFETY FACILITIES IMPACT 1,241,789 1,241,789 37,270 3% 543,562 (506,292) -93% 346 PUBLIC FACILITIES NON-AB1600 36,153 36,153 7,036 19% 8,742 (1,706) -20% 347 PUBLIC FACILITIES IMPACT 927,831 927,831 12,109 1% 16,623 (4,514) -27% 348 LIBRARY 874,760 874,760 54,854 6% 78,784 (23,930) -30% 350 UNDERGROUNDING 65,092 65,092 50,060 77% 7,929 42,131 531% 360 COMMUNITY/REC IMPACT FUND 1,535,269 1,535,269 93,706 6% 97,575 (3,870) -4% 375 QUIMBY FEE 3,767,252 3,767,252 52,262 1% 30,730 21,532 70% TOTAL CAPITAL PROJECTS FUNDS 25,986,590 25,986,590 1,109,828 4% 1,432,311 (322,483) -23%
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 295,662 295,662 48,895 17% 50,384 (1,489) -3% 441 POLICE FACILITY BOND 390,836 390,836 64,529 17% 65,670 (1,141) -2% TOTAL DEBT SERVICE FUNDS 686,498 686,498 113,424 17% 116,054 (2,630) -2%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 22,282,370 22,282,370 1,933,460 9% 1,788,346 145,114 8% Interest Income/Transfers 158,753 158,753 11,567 7% 11,399 168 1% Other Revenue/Current Charges 340,740 340,740 31,664 9% 35,486 (3,822) -11% 640 WASTEWATER OPERATION 22,781,863 22,781,863 1,976,690 9% 1,835,231 141,460 8% 641 WASTEWATER EXPANSION
Interest Income 587,750 587,750 95,438 16% 100,377 (4,939) -5% Development Impact Fee 31,926,445 31,926,445 287,768 1% 201,479 86,289 43% 641 WASTEWATER EXPANSION 32,514,195 32,514,195 383,206 1% 301,856 81,350 27% 642 WASTEWATER RATE STABILIZATION - - 15,596 n/a 14,773 823 6% 643 WASTEWATER CAPITAL PROJECT 10,135,988 10,135,988 1,661,210 16% 1,087,823 573,387 53% TOTAL SEWER FUNDS 65,432,046 65,432,046 4,036,702 6% 3,239,682 797,020 25% 650 WATER OPERATION
Water Sales 21,306,370 21,306,370 2,091,627 10% 2,140,085 (48,457) -2% Meter Install & Service 110,000 110,000 22,399 20% 4,695 17,704 377% Transfers-In / Interest Income 983,141 983,141 148,282 15% 148,282 - n/a Other Revenue/Current Charges 1,131,860 1,131,860 189,478 17% 360,888 (171,410) -47% 650 WATER OPERATION 23,531,371 23,531,371 2,451,786 10% 2,505,668 (53,881) -2% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 126,578 126,578 20,062 16% 26,531 (6,469) -24% Development Impact Fee 3,714,094 3,714,094 75,784 2% 122,549 (46,765) -38% 651 WATER EXPANSION 3,840,672 3,840,672 95,846 2% 149,080 (53,234) -36% 652 WATER RATE STABILIZATION - - 14,800 n/a 15,801 (1,001) -6% 653 WATER CAPITAL PROJECT 7,593,238 7,593,238 1,115,032 15% 1,277,159 (162,127) -13% TOTAL WATER FUNDS 34,965,281 34,965,281 3,677,464 11% 3,947,707 (270,243) -7% TOTAL ENTERPRISE FUNDS 100,397,327 100,397,327 7,714,166 8% 7,187,389 526,777 7%
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 3,685,615 3,685,615 613,123 17% 505,971 107,153 21% 740 BUILDING MAINTENANCE 1,127,513 1,127,513 188,104 17% 213,229 (25,125) -12% 741 BUILDING REPLACEMENT 1,050,611 1,050,611 166,927 16% 172,765 (5,838) -3% 745 CIP ADMINISTRATION 2,891,624 2,891,624 n/a - - n/a - 760 UNEMPLOYMENT INSURANCE 9,668 9,668 1,079 11% 1,233 (153) -12% 770 WORKERS COMPENSATION 1,139,620 1,139,620 130,682 11% 9,416 121,266 1288% 790 EQUIPMENT REPLACEMENT 1,606,350 1,606,350 331,447 21% 263,931 67,516 26% 791EMPLOYEE BENEFITS 1,273,463 1,273,463 213,938 17% 198,750 15,188 8% 795 GENERAL LIABILITY INSURANCE 2,688,266 2,688,266 442,228 16% 459,997 (17,769) -4% TOTAL INTERNAL SERVICE FUNDS 15,472,730 15,472,730 2,087,528 13% 1,825,292 262,237 14% TOTAL FOR ALL FUNDS $ 222,658,125 $ 222,658,125 $ 15,828,771 7% $ 15,748,631 $ 80,140 1%
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 20,188 $ 639,153 $ 74,577 $ - $ 74,577 $ 12% 169,592 $ .
CITY ATTORNEY 74,300 1,280,586 129,062 58,723 187,784 15% 124,833 CITY MANAGER 51,301 1,080,707 91,067 6,510 97,577 9% 94,551 HUMAN RESOURCES 64,606 1,076,155 133,511 - 133,511 12% 153,327
COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 46,894 678,926 102,883 - 102,883 15% 84,037 Elections - 303,311 - - - n/a 5,160
COUNCIL SVCS & RECORDS MGMT 46,894 982,237 102,883 - 102,883 10% 89,197 FINANCE 162,944 2,658,105 280,487 78,380 358,867 14% 264,941 TOTAL ADMINISTRATION 420,233 7,716,943 811,586 143,613 955,199 12% 896,441 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 907,402 7,640,405 1,240,203 1,870,507 3,110,710 41% 1,320,514 Recreation Facility Rentals 92,114 1,337,644 156,042 152,897 308,939 23% 176,591 Community Services 65,610 973,023 114,183 169,160 283,343 29% 126,745 Park Maintenance 77,841 1,597,021 130,154 54,041 184,195 12% 140,913 Environmental Services 30,386 607,664 71,791 - 71,791 12% 93,650 Countywide Solid Waste Program 40,591 560,975 70,066 - 70,066 12% 66,997 Street Maintenance 251,618 3,853,462 399,917 37,834 437,751 11% 406,928 Downtown Maintenance 22,179 409,282 30,391 66,146 96,537 24% 34,184 PD Building Maintenance 50,805 638,253 73,998 89,281 163,279 26% 93,401 Cable Television 7,602 91,955 15,007 - 15,007 16% 14,978 COMMUNITY SERVICES 1,546,148 17,709,686 2,301,752 2,439,865 4,741,617 27% 2,474,900 CODE COMPLIANCE 34,635 448,036 61,183 - 61,183 14% 58,866 INFRASTRUCTURE PLANNING & CONGESTION MGMT 449,292 26,246 46,627 - 46,627 10% 52,260 ECONOMIC DEVELOPMENT PROGRAMS 70,651 1,386,099 119,148 33,348 152,497 11% 142,358 TOTAL COMMUNITY SERVICES 1,677,680 19,993,112 2,528,709 2,473,214 5,001,923 25% 2,728,384 III. PUBLIC SAFETY
POLICE
PD Administration 207,265 1,978,208 317,019 24,378 341,397 17% 281,525 Field Operations 1,047,325 15,163,839 2,096,229 135,761 2,231,990 15% 1,952,811 Support Services 222,299 3,001,327 418,972 60,000 478,972 16% 380,418 Emergency Services/Haz Mat - - - - - n/a 33,745
Special Operations 292,259 4,197,484 527,191 - 527,191 13% 590,927 Dispatch Services 176,943 2,806,384 331,965 - 331,965 12% 331,570 POLICE 1,946,092 27,147,242 3,691,376 220,139 3,911,515 14% 3,570,995 FIRE 1,208,506 11,808,075 2,240,450 64,669 2,305,119 20% 1,997,512 TOTAL PUBLIC SAFETY 3,154,598 38,955,317 5,931,826 284,808 6,216,634 16% 5,568,507 IV. TRANSFERS
Other 106,136 1,533,626 212,271 - 212,271 14% 209,846
TOTAL TRANSFERS 106,136 1,533,626 212,271 - 212,271 14% 209,846 TOTAL GENERAL FUND 5,358,647 68,198,997 9,484,392 2,901,634 12,386,027 18% 9,403,178
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 487 910,606 973 - 973 0% 927
205 PUBLIC SAFETY/SUPP.LAW 121 301,450 242 - 242 0% 230 206 DEVELOPMENT SERVICES FUND
Planning 113,823 1,912,290 199,744 - 199,744 10% 227,453 Building 232,385 3,542,365 400,028 - 400,028 11% 366,030 Engineering 128,270 1,930,099 217,712 - 217,712 11% 195,412 206 DEVELOPMENT SERVICES FUND 474,478 7,384,754 817,484 - 817,484 11% 788,895 207 LONG RANGE PLANNING 79,119 2,444,572 139,317 224,358 363,676 15% 129,050 215/216 CDBG 8 94 16 - 16 17% 15
225 ASSET SEIZURE 73 879 147 - 147 17% 140
229 LIGHTING AND LANDSCAPE 8,735 168,510 14,104 14,422 28,526 17% 13,356 230 COMMUNITY FACILITIES DISTRICT 1,788 30,661 3,241 - 3,241 11% 4,094 232 ENVIRONMENTAL PROGRAMS 31,635 484,176 61,250 - 61,250 13% 50,202 234 MOBILE HOME PARK 85 1,020 170 - 170 17% 162
236 HOUSING MITIGATION 82,044 2,283,807 249,184 100,348 349,533 15% 128,222 240 EMPLOYEE ASSISTANCE 89 21,064 1,826 - 1,826 9% 168
246 COUNTYWIDE SOLID WASTE PROGRAM 46,525 1,721,491 98,051 1,128,186 1,226,237 71% 93,994 255 HOUSING SUCCESSOR AGENCY 101,223 1,377,940 309,091 430,578 739,669 54% 339,851 260 PUBLIC ART 563 6,754 1,126 - 1,126 17% 1,072
TOTAL SPECIAL REVENUE FUNDS 826,971 17,137,777 1,696,222 1,897,892 3,594,114 21% 1,550,377
CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 25,446 3,305,205 35,267 94,968 130,236 4% 82,717 302 PARK MAINTENANCE - - - - n/a - 109,683
303 LOCAL DRAINAGE 448,548 7,560,309 749,490 2,342,951 3,092,440 41% 909,215 304 LOCAL DRAIN. NON-AB1600 283 479,031 565 62,780 63,346 13% 538 306 AGRICULTURE & OPEN SPACE PRESERVATIO 133,826 11,152 22,304 - 22,304 17% 21,462 308 STREET CIP 103,178 5,968,233 113,111 2,556,616 2,669,727 45% 24,128 309 TRAFFIC IMPACT 16,298 5,640,029 32,016 85,026 117,042 2% 82,398 315 PUBLIC SAFETY FACILITIES IMPACT 96,764 1,187,503 193,529 26,330 219,859 19% 116,601 346 PUBLIC FAC.NON AB1600 49,760 332,982 50,190 77,950 128,140 38% 7,497 347 PUBLIC FACILITIES IMPACT 2,484 287,848 4,969 1 4,969 2% 4,930 348 LIBRARY IMPACT 17,682 212,186 35,364 - 35,364 17% 35,914 350 UNDERGROUNDING 110 259,358 220 - 220 0% 210
360 COMM/REC CENTER IMPACT 1,497 4,612,824 2,994 105,025 108,019 2% 45,305 375 QUIMBY FEE 96,764 2,524,285 93,361 176,677 270,038 11% 250,395 TOTAL CAPITAL PROJECTS FUNDS 869,967 32,503,621 1,333,381 5,528,324 6,861,705 21% 1,690,992
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 304 289,331 607 - 607 0% 578
441 POLICE FACILITY BOND DEBT 402 384,875 804 - 804 0% 767 TOTAL DEBT SERVICE FUNDS 706 674,207 1,412 - 1,412 0% 1,345
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 1,281,160 22,569,719 2,450,666 149,121 2,599,787 12% 2,815,373 641 WASTEWATER CAPITAL EXPANSION (33,824) 33,467,553 133,573 1,138,839 1,272,412 4% 202,979 642 WASTEWATER RATE STABILIZATION 175 2,105 351 - 351 17% 335 643 WASTEWATER CAPITAL PROJECTS (80,051) 25,331,951 13,961 3,099,014 3,112,975 12% 65,526 TOTAL SEWER FUND(S) 1,167,461 81,371,328 2,598,551 4,386,974 6,985,525 9% 3,084,213 WATER
Water Operations 1,171,721 21,446,880 2,110,472 891,041 3,001,512 14% 2,600,719 Utility Billing 124,706 1,663,378 205,313 - 205,313 12% 183,160 Water Conservation 25,977 530,179 49,059 - 49,059 9% 37,981 650 WATER OPERATIONS 1,322,404 23,640,437 2,364,844 891,041 3,255,884 14% 2,821,860 651 WATER CAPITAL EXPANSION 222,422 3,088,525 280,927 1,459,921 1,740,849 56% 130,418 652 WATER RATE STABILIZATION 131 1,577 263 - 17% 263 250 653 WATER-CAPITAL PROJECTS 555,438 17,015,519 556,769 3,089,232 3,646,001 21% 73,498 TOTAL WATER FUND(S) 2,100,395 43,746,059 3,202,803 5,440,194 8,642,997 20% 3,026,025 TOTAL ENTERPRISE FUNDS 3,267,855 125,117,387 5,801,354 9,827,169 15,628,523 12% 6,110,238
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 308,277 3,676,411 698,494 - 698,494 19% 591,659 740 BUILDING MAINTENANCE 68,330 1,110,254 130,794 26,661 157,455 14% 148,707 741 BUILDING REPLACEMENT 78,022 1,493,055 98,855 154,135 252,990 17% 73,328 745 CIP ADMINISTRATION 203,947 2,887,989 359,272 - 359,272 12% 380,545 760 UNEMPLOYMENT - 15,000 - - n/a - 2,937
770 WORKERS COMPENSATION 51,164 1,053,973 739,128 - 739,128 70% 693,354 790 EQUIPMENT REPLACEMENT 432,652 1,207,000 432,652 4,606 437,258 36% 245,639 791 EMPLOYEE BENEFITS FUND 10,967 1,000,000 29,706 - 29,706 3% 93,549 795 GEN. LIABILITY INSURANCE 48,720 2,551,403 2,265,700 2,265,700 - 89% 2,350,056 TOTAL INTERNAL SERVICE FUNDS 1,202,079 14,995,084 4,754,601 185,402 4,940,003 33% 4,579,776 REPORT TOTAL $ 11,526,225 $ 258,627,073 $ 23,071,361 $ 20,340,421 $ 43,411,783 17% 23,335,907 $
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
Unaudited Beg Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-26 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 27,478,798 $ 3,460,322 $ 6% 9,484,392 $ 14% (6,024,070) $ 2,901,634 $ 18,553,094 $ TOTAL GENERAL FUND 27,478,798 $ 3,460,322 $ 6% 9,484,392 $ 14% (6,024,070) $ 2,901,634 $ 18,553,094 $ 202 STREET MAINTENANCE 145,544 81,885 $ 9% 973 $ 11% 80,912 $ - $ 226,456 $ 205 PUBLIC SAFETY/SUPPL. LAW 641,747 2,585 1% 242 11% 2,343 - 644,090 206 DEVELOPMENT SERVICES 643,411 965,848 13% 817,484 11% 148,364 - 791,775 207 LONG RANGE PLANNING 1,638,494 150,540 11% 139,317 6% 11,222 224,358 1,425,358 215 / 216 CDBG 36,790 295 24% 16 17% 279 - 37,069
225 ASSET SEIZURE 109,596 12% 446 17% 147 299 - 109,895 229 LIGHTING AND LANDSCAPE 226,644 855 0% 14,104 8% (13,249) 14,422 198,974 230 COMMUNITY FACILITIES DISTRICT 174,413 695 2% 3,241 11% (2,546) - 171,867 232 ENVIRONMENTAL PROGRAMS 704,472 77,632 15% 61,250 13% 16,382 - 720,854 234 MOBILE HOME PK RENT STAB. 92,563 12% 375 17% 170 205 - 92,768 235 SENIOR HOUSING 253,103 n/a - n/a - - - 253,103
236 HOUSING MITIGATION 10,836,166 43,458 1% 249,184 11% (205,726) 100,348 10,530,092 240 EMPLOYEE ASSISTANCE 63,995 51% 694 1,826 9% (1,133) - 62,862 246 COUNTYWIDE SOLID WASTE 516,767 1,904 0% 98,051 6% (96,147) 1,128,186 (707,566) 255 HOUSING SUCCESSOR AGENCY 2,913,405 16,159 8% 309,091 22% (292,932) 430,578 2,189,895 260 PUBLIC ART 32,709 13% 131 1,126 17% (994) - 31,715
TOTAL SPECIAL REVENUE FUNDS $ 19,029,819 $ 1,343,502 7% 1,696,222 $ 10% (352,720) $ $ 1,897,892 $ 16,779,207 301 PARK DEV. IMPACT FUND $ 2,318,386 $ 9,834 1% $ 35,267 1% (25,434) $ $ 94,968 $ 2,197,984 302 PARK MAINTENANCE 1,287,787 n/a 45 n/a - 45 1,287,832 - 303 LOCAL DRAINAGE 9,246,964 172,254 5% 749,490 10% (577,236) 2,342,951 6,326,778 304 LOCAL DRAINAGE/NON-AB1600 1,184,823 32,018 16% 565 0% 31,453 62,780 1,153,496 306 AG. AND OPEN SPACE PRESERVATION 2,434,272 9,311 8% 22,304 17% (12,993) - 2,421,279 308 STREET CIP 6,970,281 350,851 4% 113,111 2% 237,740 2,556,616 4,651,405 309 TRAFFIC IMPACT FUND 3,285,881 228,217 5% 32,016 1% 196,201 85,026 3,397,056 315 PUBLIC SAFETY FACILITIES IMPACT (6,506,799) 37,270 3% 193,529 16% (156,259) 26,330 (6,689,388) 346 PUBLIC FACILITIES NON-AB1600 1,723,797 7,036 19% 50,190 15% (43,154) 77,950 1,602,693 347 PUBLIC FACILITIES IMPACT FUND 156,023 12,109 1% 4,969 2% 7,141 1 163,163 348 LIBRARY IMPACT FUND 2,963,458 54,854 6% 35,364 17% 19,490 - 2,982,948 350 UNDERGROUNDING 1,860,758 50,060 77% 220 0% 49,840 - 1,910,598 360 COMM/REC CTR IMPACT FUND 4,313,060 93,706 6% 2,994 0% 90,711 105,025 4,298,747 375 QUIMBY FEE 2,207,922 52,262 1% 93,361 4% (41,099) 176,677 1,990,146 TOTAL CAPITAL PROJECT FUNDS 33,446,613 $ 1,109,828 $ 4% 1,333,381 $ 4% (223,553) $ 5,528,324 $ 27,694,736 $ 420 CIVIC CENTER DEBT 200,838 $ 48,895 $ 17% 607 $ 0% 48,288 $ 58 $ 249,067 $ 441 POLICE FACILITY BOND DEBT 169,161 64,529 17% 804 0% 63,725 74 232,812 TOTAL DEBT SERVICE FUNDS 369,999 $ 113,424 $ 17% 1,412 $ 0% 112,013 $ 132 $ 481,879 $ 640 WASTEWATER OPERATIONS $ 4,274,700 $ 1,976,690 9% 2,450,666 $ 11% (473,976) $ 149,121 3,651,603 641 WASTEWATER IMPACT FUND 23,137,645 383,206 1% 133,573 0% 249,633 1,138,839 22,248,439 642 WASTEWATER RATE STABILIZATION 3,396,212 15,596 n/a 17% 351 15,245 3,411,457 - 643 WASTEWATER CAPITAL PROJECTS 27,647,196 1,661,210 16% 13,961 0% 1,647,249 3,099,014 26,195,431 650 WATER OPERATIONS 4,884,865 2,451,786 10% 2,364,844 10% 86,942 891,041 4,080,767 651 WATER IMPACT FUND 4,801,388 95,846 2% 280,927 9% (185,082) 1,459,921 3,156,385 652 WATER RATE STABILIZATION 3,633,079 14,800 n/a 17% 263 14,537 3,647,616 - 653 WATER -CAPITAL PROJECT 24,437,411 1,115,032 15% 556,769 3% 558,263 3,089,232 21,906,442 TOTAL ENTERPRISE FUNDS $ 96,212,496 $ 7,714,166 8% 5,801,354 $ 5% 1,912,812 $ $ 9,827,169 $ 88,298,139 730 INFORMATION SERVICES $ 642,387 $ 613,123 17% 698,494 $ 19% (85,371) $ $ - $ 557,016 740 BUILDING MAINTENANCE 454,235 188,104 17% 130,794 12% 57,310 26,661 484,884 741 BUILDING REPLACEMENT 3,726,509 166,927 16% 98,855 7% 68,072 154,135 3,640,446 745 CIP ENGINEERING 5,652 n/a 359,272 - 12% (359,272) (353,620) - 760 UNEMPLOYMENT 279,519 1,079 11% n/a - 1,079 - 280,598 770 WORKERS COMPENSATION 2,478,849 130,682 11% 739,128 70% (608,446) 30,000 1,840,403 790 EQUIPMENT REPLACEMENT 10,687,804 331,447 21% 432,652 36% (101,205) 4,606 10,581,993 791 EMPLOYEE BENEFITS FUNDS 802,440 213,938 17% 29,706 3% 184,232 - 986,672 795 GEN. LIABILITY INSURANCE 1,162,608 442,228 16% 2,265,700 89% (1,823,471) (660,863) - TOTAL INTERNAL SERVICE FUNDS $ 20,240,003 $ 2,087,528 13% 4,754,601 $ 32% (2,667,073) $ $ 215,402 $ 17,357,528 Revenues Expenses Ending Fund Balance
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2026-27
For the Month Ended August 31, 2026
17% of Year Complete
Unaudited Beg Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-26 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Ending Fund Balance
SUMMARY BY FUND TYPE
GENERAL FUND GROUP 27,478,798 $ 3,460,322 $ 6% 9,484,392 $ 14% (6,024,070) $ 2,901,634 $ 18,553,094 $ SPECIAL REVENUE GROUP 19,029,819 1,343,502 7% 1,696,222 10% (352,720) 1,897,892 16,779,207 DEBT SERVICE GROUP 369,999 113,424 17% 1,412 0% 112,013 132 481,879 CAPITAL PROJECTS GROUP 33,446,613 1,109,828 4% 1,333,381 4% (223,553) 5,528,324 27,694,736 ENTERPRISE GROUP 96,212,496 7,714,166 8% 5,801,354 5% 1,912,812 9,827,169 88,298,139 INTERNAL SERVICE GROUP 20,240,003 2,087,528 13% 4,754,601 32% (2,667,073) 215,402 17,357,528 TOTAL ALL GROUPS $ 196,777,728 $ 15,828,771 7% 23,071,361 $ 9% (7,242,591) $ $ 20,370,554 $ 169,164,583 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.
11 CITY COUNCIL STAFF REPORT
MEETING DATE: September 16, 2026
CONSIDERATION OF A FORMAL CENSURE OF COUNCIL MEMBER
YVONNE MARTINEZ BELTRAN
RECOMMENDATION(S)
1. Receive Presentation of Censure Resolution from Outside Special Counsel (7 minutes);
2. Receive Response from Council Member Martinez Beltran (7 minutes);
3. Receive Rebuttal Comments from Outside Special Counsel (2 minutes);
4. Receive Public Comment;
5. Receive Council Comments; and
6. Consider adoption of Resolution entitled "A Resolution of the City Council of the City of Morgan Hill, California Approving Censure of Council Member Yvonne Martinez Beltran."
REPORT NARRATIVE:
For Council's consideration this evening is adoption of a Resolution Approving Censure of Council Member Yvonne Martinez Beltran. The draft Resolution is attached to this Report.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council met in Closed Session on August 19, 2026 regarding complaints of inappropriate conduct by Council Member Martinez Beltran. The Council gave direction to outside special counsel resulting in the September 16, 2026 meeting to consider a formal censure resolution.
CEQA (California Environmental Quality Act):
Not a Project. Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
13531572.1 MO145-019
RESOLUTION NO. 2026-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORGAN HILL, CALIFORNIA, APPROVING CENSURE OF
COUNCIL MEMBER YVONNE MARTINEZ BELTRAN
WHEREAS, the City of Morgan Hill has adopted City Council Policies and Procedures (City Council (CP) 97-01 and CP 05-01) and Consolidated Set of Norms (2023 and “Morgan Hill Approach to Public Service”), which provide guidance, procedures, and best practices to assist City Council Members to carry out their duties and responsibilities respectfully and effectively; and
WHEREAS, the City of Morgan Hill has adopted Administrative Policy VI007 prohibiting harassment and discrimination, including legal requirements related to the same, that it expects all City Council Members to not only comply with but to be role models for City employees and the public; and
WHEREAS CP 05-01 states that violations of this Policy may be …punishable, in the discretion of a majority of the City Council, by censure, public reproval, removal from appointed position…; and
WHEREAS, CP-97-01, Section 8.1 Decorum provides, Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the City Council; and
WHEREAS, CP-05-01 states in relevant part:
[I]t is imperative to foster the highest standards of personal integrity and honesty in discharging public duties.
It is the Council’s expectation that our city government will act in ways that inspire and retain the trust and confidence of the community we serve. Honesty. I am honest with my fellow elected officials, the public and others.
Respect. I treat my fellow officials…with patience, courtesy and civility, even when we disagree on what is best for the community. I respect others’ time by coming to meetings prepared and offering observations only when I believe it will move the discussion forward. I work to gain value from diverse opinions and build consensus. I am approachable, open-minded and willing to participate in dialog and I work to convey this to others…I convey the agency’s care for and commitment to its community members through my words and deeds. I am attuned to, and care about, the needs and issues of citizens, public officials and agency workers.
Fairness. I support the public’s right to know and participate in the conduct of the people’s business. I am impartial when making decisions. I make decisions based on the merits of the issue.
13531572.1 MO145-019
Examples of behavior not showing respect include:
o Being rude, and ridiculing others in public and in private. o Ascribing bad motives to those who disagree.
o Refusing to listen/meet/talk/have dialog/interchange. o Using a closed, irritated tone of voice and body language. o Unwilling to listen to others’ opinions.
o Engaging in intimidating behavior.
Examples of behavior not showing fairness include:
o Demeaning those who disagree with you.
o Being closed; don’t listen, reject out of hand, etc.; and WHEREAS, the Consolidated Set of Norms states in relevant part: We earn and preserve the community’s trust and investment through ethical conduct, professionalism, and integrity in every action…We create greater outcomes together by valuing diverse perspectives, building alignment, and working as one team in service to the community…We conduct the public’s business through orderly, civil…processes…Be respectful and patient with one another…Be professional; keep decorum of meeting throughout…; and
WHEREAS, the 2023 City Council Norms states in relevant part: Be respectful and patient with one another…Be honest and real…Be aware of how we represent the City as leaders in the community…Be accurate in statements…Be professional…; and WHEREAS, the City’s policy on prohibiting harassment defines “harassment” to include verbal comments based on a protected class, e.g., race and age (40 and over), that is insulting or derogatory; and
WHEREAS, in February 2025, the City retained outside attorney investigator Karen Kramer to conduct an independent investigation into Ms. Martinez Beltran’s allegations against Mayor Mark Turner resulting in a June 9, 2025 report, which was privileged and confidential under the attorney-client and attorney work-product privileges; and
WHEREAS, the City Council has waived the attorney-client privilege and work product privilege as to Ms. Kramer’s investigation report, which included the following:
Ms. Martinez Beltran made allegations against Mayor Mark Turner including that Mr. Turner mistreated Ms. Martinez Beltran based on her gender and race. Ms. Kramer determined that all of Ms. Martinez Beltran’s allegations against Mr. Turner were not sustained.
During her interview, one witness indicated: that during the campaign, Ms.
Martinez Beltran told her that Mr. Turner is a racist and not to trust him;
13531572.1 MO145-019
whenever Martinez Beltran addressed Mr. Turner, she did so in a sarcastic manner and with an undertone of dislike; Ms. Martinez Beltran attacked Mr. Turner during some Council meetings by falsely accusing him of saying or doing something that the witness knew he did not do or say; and that Mr. Turner is respectful toward Ms. Martinez Beltran but his respect is not reciprocated.
A witness indicated that Ms. Martinez Beltran said that two Council Members were “too old and too White to be on this Council.” During the investigation interview with Ms. Kramer, Ms. Martinez Beltran denied that Mr. Turner touched her stomach. However, Ms. Martinez Beltran previously told the Police Officer she was pushed by the Mayor in her stomach, that the push caused her to move backwards and pain, this constituted battery, and she desired criminal prosecution against Mr.
Turner. The Police Officer noted that Ms. Martinez Beltran’s statement was inconsistent with all other parties interviewed and the video recording of the February 7, 2025 incident.
Ms. Martinez Beltran claims she was removed from multiple committee assignments, evidencing Mr. Turner’s animus against her. However, the chart of committee assignments shows Ms. Martinez Beltran with seven committee assignments, while Ms. Librers, Ms. Vega, and Ms. Iwanaga are assigned to fewer committees than Ms. Martinez Beltran; and WHEREAS, the City’s outside special counsel Shelline Bennett was retained to review relatively recent concerns raised by Council Members against Ms. Martinez Beltran, which resulted in an attorney-client confidential and attorney work-product privileged June 12, 2026 Memorandum to the Mayor and Council; and WHEREAS, in a limited scope, the City Council has waived the attorney-client privilege and work product privileges only regarding the following from Ms. Bennett’s Memorandum:
After the City Council meeting on June 3, 2026, Ms. Iwanaga indicates she was confronted by Ms. Martinez Beltran about the way Ms. Iwanaga voted on a Council-agenda item. Ms. Martinez Beltran said, “What was up with that?”; “I don’t ever want to hear you complain.”; “You are only here for the Mayor.” Ms. Martinez Beltran accused Ms. Iwanaga of “Not thinking for yourself.”
Ms. Iwanaga indicates Ms. Martinez Beltran made her feel trapped, uncomfortable, and nervous.
Prior to the Council meeting, Ms. Vega indicates that Ms. Martinez Beltran tried to call her several times to see if she would support Ms. Martinez Beltran’s agenda item. Ms. Vega received a text from Ms. Martinez Beltran
13531572.1 MO145-019
asking her to support Ms. Martinez Beltran’s item. Ms. Vega responded with, “What’s your pitch?” and received no response.
Ms. Vega listened to what was presented and cast her vote on the item. After the City Council meeting, Ms. Vega states she was confronted by Ms. Martinez Beltran about the way she voted on the Council-agenda item.
Ms. Martinez Beltran said, “What was that about?” Ms. Vega indicates she does not like confrontation and did not respond. However, it did make her question her vote decision even though she never promised Ms.
Martinez Beltran anything.
Ms. Vega felt bullied by Ms. Martinez Beltran. Ms. Vega perceives that Ms. Martinez Beltran talks down to her during meetings. Ms. Librers witnessed both interactions noted above. Ms. Librers heard Ms.
Martinez Beltran say to Ms. Iwanaga, “You don’t have to vote with Mark.” Ms. Librers saw Ms. Martinez Beltran in Ms. Vega’s face waving her finger.
Ms. Libers [sic] states it appeared to be heated and an inappropriate conversation. Ms. Librers notes she would have hated to be on the receiving end of whatever that conversation was.
Assuming Ms. Martinez Beltran disputes the accusations, the perceptions belong to the individuals and are undisputed.
The perceptions of bullying, being spoken down to, being nervous and uncomfortable, feeling trapped, and inappropriate comments and behavior by Ms. Martinez Beltran are contrary to City policies and Council policies and result in undermining the Council’s ability to freely discuss and decide matters.
City Council Policies and Procedures, CP 97-01 states in relevant part, Members of the City Council value and recognize the importance of the trust invested in them by the public to accomplish the business of the City.
Council Members shall accord the utmost courtesy to each other…” Morgan Hill Approach to Public Service states in relevant part, “We earn and preserve the community’s trust and investment through ethical conduct, professionalism, and integrity in every action …;” “We create greater outcomes together by valuing diverse perspectives, building alignment, and working as one team in service to the community;” and “We conduct the public’s business through orderly, civil, transparent, and wellreasoned processes that ensure fairness and efficiency…” City Council Norms includes in relevant part, “Be respectful and patient with one another;” and “Be professional.” The City Council’s Ethics Policy, CP 05- 01 states in relevant part, “I treat my fellow officials…with courtesy and civility….
13531572.1 MO145-019
Ms. Martinez Beltran is reminded of these important Council policies and the respect, courtesy, professionalism, civility, and decorum that is mandated of the important role of a City Council Member, and it is requested that she refrain from similar conduct and statements to those noted above in the future. Failure to do so will likely result in follow up, including but not limited to consideration of public censure; and WHEREAS, the June 12 Memorandum was sent to Ms. Martinez Beltran on three separate occasions – June 12, August 14, and August 19 - with multiple email and text invitations for her to meet with Ms. Bennett to discuss the Memorandum; and WHEREAS, at no time did Ms. Martinez Beltran respond to Ms. Bennett, the Mayor, or her fellow Council Members acknowledging the June 12, 2026 Memorandum or offering justification, accountability, or apology for her conduct and what her fellow Council Members perceived as intimidation, bullying, confrontational, condescending, and demeaning conduct, and being spoken down to in a disrespectful manner. Ms.
Martinez Beltran has effectively ignored the concerns of her fellow Council Members and shown no signs of regret or changed behavior.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES RESOLVE AS FOLLOWS:
SECTION 1. That the recitals set forth are true and correct and are incorporated herein as if set forth in full.
SECTION 2. That the City Council defines censure as a method of official City Council reprimand to a Council Member who has willfully and deliberately acted against specifically outlined items in the City Council Policies and Procedures (CP 97-01 and CP 05-01), Consolidated Set of Norms (2023 and “Morgan Hill Approach to Public Service”), and the City’s harassment and discrimination policy.
SECTION 3. That the City Council has taken into account all of the evidence presented to it.
SECTION 4. That the City Council understands its responsibility of being a role model to City employees and the public in setting high ethical and professional standards and modeling appropriate behavior, both in not bullying and not tolerating bullying and intimidating behavior and taking a stand against such misconduct.
SECTION 5. That the City Council understands its foundational responsibility in being truthful, including but not limited to law enforcement.
SECTION 6. That the City Council has zero tolerance for harassment based on age, race, or any protected category.
SECTION 7. That Council Member Martinez Beltran’s actions as a City Council Member violated City Council policy and norms, and more specifically City Council Policies and Procedures (CP 97-01 and CP 05-01), Consolidated Set of Norms (2023
13531572.1 MO145-019
and “Morgan Hill Approach to Public Service”), and Administrative Policy VI007 as specifically noted above. Such conduct is disrespectful to the City Council, contrary to best practices, and is counterproductive to respectful and efficient City Council operations.
SECTION 8. Based upon the totality of circumstances, the City Council hereby disapproves, condemns, and dissociates itself from the actions noted in this Resolution of Council Member Yvonne Martinez Beltran and her violating City Council Policies and Norms and City Policy.
SECTION 9. As a result of this public censure, the Mayor is authorized and hereby does remove Ms. Martinez Beltran from any/all outside assignments for which the Mayor has authority to appoint and/or remove.
SECTION 10. The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 16th day of September 2026. ________________________________
Mark Turner, Mayor
ATTEST:
______________________________
Michelle Bigelow, City Clerk
13531572.1 MO145-019
STATE OF CALIFORNIA)
COUNTY OF SANTA CLARA) ss
CITY OF MORGAN HILL)
I, Michelle Bigelow, City Clerk, of the City of Morgan Hill, do hereby certify that the foregoing Resolution was adopted at a meeting of the City Council held on the 16th day of September, 2026, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
_______________________________________
Michelle Bigelow, City Clerk
12 CITY COUNCIL STAFF REPORT
MEETING DATE: September 16, 2026
PREPARED BY:
Jennifer Carman, Development Services Director
Elisa Tolentino, City Attorney
APPROVED BY: City Manager
CONSIDERATION OF ADOPTION OF AN INTERIM ORDINANCE
INSTITUTING A TEMPORARY 45-DAY MORATORIUM TO PROHIBIT
PROCESSING AND APPROVAL OF NEW LAND USE APPLICATIONS
FOR FREE STANDING DATA CENTERS AND GRID-SCALE BATTERY
ENERGY STORAGE SYSTEMS (BESS) WITHIN CITY LIMITS
RECOMMENDATION(S)
1. Determine the adoption of this Interim Ordinance is exempt from California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3);
2. Introduce by title only, adopt, and waive further reading of Interim Ordinance, imposing a 45-day moratorium prohibiting processing and approval of new land use applications for Free Standing Data Center or Grid-Scale Battery Storage Systems;
3. Direct staff to develop policy and regulations relating to free standing data center and grid-scale battery energy storage systems; and
4. Direct the Planning Commission to review draft policies and regulations and make recommendations to City Council in accordance with the Morgan Hill Municipal Code.
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
Preserving and Cultivating Public Trust
Strategic Priorities 2026-2027
Public Safety
Economic Development and Tourism
Guiding Documents
Economic Blueprint
12 Morgan Hill 2035 General Plan
REPORT NARRATIVE:
Communities throughout the state and country have experienced negative effects of Data Center and Grid-Scale Battery Storage Systems (BESS) land uses, including but not limited to intensive energy and water use, noise, crime and security issues, air quality, water and noise pollution, aesthetic impacts; and other related effects on property values and quality of life to surrounding neighborhoods.
These land uses often necessitate unique and/or abnormally large utility infrastructure connections to electrical, water, and sewage systems, where existing infrastructure is unable to support such land use nor load intensity of demand.
The Morgan Hill Municipal Code (“MHMC”) does not, at present, regulate Data Center or BESS land uses, including location, size and scope, and other development as the uses are not included within the standards in its Zoning Ordinance. Data Centers and BESS are currently undefined in the Municipal Code.
Under Government Code section 65858, a moratorium may be put in place on a temporary basis by adopting an interim ordinance as an urgency measure prohibiting a use that may conflict with a contemplated general plan, specific plan or zoning proposal that the City plans to study within a reasonable time. An interim ordinance requires a four-fifths vote of the City Council and must contain findings that there is a current and immediate threat to public health, safety, or welfare. An interim ordinance may be adopted for an initial 45-day period and may be extended for a total maximum length of two years.
Government Code section 65858 provides two alternative processes for adopting interim land use ordinances.
First, under Government Code section 65858(a), newspaper notice is not required prior to the initial consideration of the interim ordinance. After the expiration of the initial 45- day period, the interim ordinance may be extended for 10 months and 15 days. The interim ordinance may be extended a second time, for a time period of one year.
Alternatively, under Government Code section 65858(b), newspaper notice is required prior to the initial consideration of the interim ordinance. After the expiration of the initial 45-day period, the interim ordinance may be extended for 22 months and 15 days. No further extensions are authorized.
On August 26, 2026, City Council considered a proposed interim ordinance imposing a 45-day moratorium on the processing and approval of land use applications for freestanding data centers and grid-scale battery energy storage systems (BESS). After public comment and Council discussion, the Council voted 5-0 to introduce the ordinance with the intent that it take effect immediately under Government Code section
12 65858(a).
The action taken at the August 26 meeting inadvertently did not include a separate action expressly adopting the interim ordinance. Staff is therefore returning the interim ordinance to the Council for consideration and adoption.
Instead of proceeding under Government Code section 65858(a), as was the intent on August 26, the City is now proceeding with a new noticed public hearing under Government Code section 65858(b). This ensures a clear record of proceedings. As required by section 65858(b), the City has provided notice of this hearing in the September 4, 2026 edition of The Morgan Hill Times.
Proceeding under section 65858(b) allows for an extension of 22 months and 15 days.
In contrast, section 65858(a) allows for an extension of 10 months and 15 days, and a second extension of one year. Each extension requires notice, a public hearing, and approval of 4/5 of the City Council. The longer extension under section 65858(b) would give the City more time to better engage the public as it prepares and vets an ordinance addressing data center and BESS uses.
If the City Council adopts the interim ordinance, it will take effect immediately, and staff will notice a public hearing no later than October 21, 2026 for Council to consider extending the interim ordinance for 22 months and 15 days.
COMMUNITY ENGAGEMENT:
A display notice for this public hearing was printed in the September 4, 2026 edition of The Morgan Hill Times.
If the moratorium is adopted, Community Engagement will follow the City's process for zoning ordinance processing in the Municipal Code. This will include potential workshops, public hearings with both the Planning Commission and City Council, and public noticing.
ALTERNATIVE ACTIONS:
The City could continue with the interpretation that these uses are not allowed within the City due to their lack of inclusion within the Municipal Code.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On August 19, 2026, City Council considered a proposal under agenda item 18 related to future regulations for land uses that could have significant impact on City infrastructure and natural resources such as data centers. During public comment and the discussion on this item, it was determined a potential temporary moratorium would provide the City the needed time to develop future regulations. The City Council directed staff to return to the City Council meeting on August 26 with a draft interim ordinance.
On August 26, 2026, City Council considered and introduced an interim ordinance
12 imposing a 45-day moratorium on the processing and approval of land use applications for freestanding data centers and grid-scale battery energy storage systems (BESS).
Because the action taken at the August 26 meeting did not include an action adopting the interim ordinance, staff is now returning the interim ordinance to the Council for consideration and adoption under Government Code section 65858(b).
FISCAL AND RESOURCE IMPACT:
Once adopted, the moratorium will impose ongoing procedural requirements on the City, including preparation of required reports, publication and notice of public hearings, and preparation of future agenda items for City Council consideration. Compliance with these requirements will require staff time and related administrative expenses.
CEQA (California Environmental Quality Act):
Not a Project
The adoption of a temporary moratorium will not result in direct or indirect physical changes in the environment.
5.1 INTERIM ORDINANCE NO. XX
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORGAN HILL IMPOSING A 45-DAY TEMPORARY MORATORIUM ON THE PROCESSING
AND APPROVAL OF NEW LAND USE APPLICATIONS FOR FREE STANDING DATA
CENTERS AND GRID-SCALE BATTERY ENERGY STORAGE SYSTEMS (BESS)
WITHIN THE CITY LIMITS DURING THE CITY'S REVIEW AND ADOPTION OF
REGULATIONS FOR SUCH USES
WHEREAS, data centers are facilities used to house computer systems, servers, datastorage equipment, telecommunications equipment, and related components. Demand for largescale data centers has increased substantially due to the growth of cloud computing, digital commerce, artificial intelligence, and other data-intensive technologies; and WHEREAS, there is a growing demand for Battery Energy Storage Systems ("BESS") in the state of California due to increased demand for renewable electricity to reach the State's clean energy goals and mechanisms to ensure reliability of the State's electric system, among other purposes; and
WHEREAS, the City’s existing regulations do not provide for either data center or BESS uses and as such the City does not currently allow either use within City limits; and WHEREAS, the City of Morgan Hill does not have s p e c i f i c land use policies or standards in place to regulate the location and operation of Data Center or BESS facilities within the City of Morgan Hill which would address compatibility with surrounding uses and safety among other issues; and
WHEREAS, both large-scale data centers and BESS facilities may impose significant demands on public utilities and infrastructure and create unforeseen land use impacts; and WHEREAS, pursuant to its constitutional police power, the City Council has authority to enact and enforce ordinances and regulations necessary to protect the public peace, health, safety, and welfare of the City and its residents; and
WHEREAS, Government Code section 65858 authorizes the City Council, without following the procedures ordinarily required for the adoption of a zoning ordinance, to adopt as an urgency measure an interim ordinance prohibiting uses that may conflict with a contemplated general plan, specific plan, or zoning proposal that the City Council, Planning Commission, or Development Services Department is considering, studying, or intends to study within a reasonable time; and
WHEREAS, the City Council desires to temporarily prohibit the processing and approval of new land-use applications for free standing data centers and grid-scale BESS facilities while City staff evaluates the full scope and significance of their potential public health, environmental, infrastructure, and land-use impacts and considers whether, and to what extent, amendments to the City’s zoning regulations, development standards, or permitting requirements are appropriate.
5.1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF M O R G A N H I L L DOES ORDAIN AS FOLLOWS:
Section 1. The Council finds and declares that this interim ordinance is necessary to protect the public safety, health, and welfare, and to prevent the development of uses that may be in conflict with a contemplated general plan or zoning proposal that the City Council, Planning Commission, or the Development Services Department is considering or studying or intends to study within a reasonable time.
Section 2. The City Council of the City of Morgan Hill finds that all Recitals are true and correct and incorporated herein by reference.
Section 3. This Interim Ordinance is adopted pursuant to Government Code § 65858, and other applicable law.
Section 4. Findings. The City Council finds as follows:
1. Adoption of this interim ordinance is necessary to protect the City and its residents, businesses, and visitors from the potential public health, safety, and welfare impacts associated with free standing data center and grid-scale BESS land uses.
2. The moratorium will provide the City with sufficient time to study the scope and significance of potential impacts of data center and BESS development and prepare comprehensive regulations governing the location, design, operation, water and energy use, infrastructure requirements, and other development standards applicable to such uses.
3. Based on these findings and the evidence in the record, including the staff report accompanying this interim ordinance, the City Council finds that there is a current and immediate threat to the public health, safety, and welfare of the City, and that the approval of additional land use entitlements for free standing data centers and grid-scale BESS, including conditional use permits, building permits, or other applicable approvals required under the Morgan Hill Municipal Code, would result in that threat to the public health, safety, and welfare, within the meaning of Government Code section 65858, subdivision (c).
Section 5. California Environmental Quality Act. The City Council finds that adoption of this Interim Ordinance is exempt from environmental review under the California Environmental Quality Act (Public Resources Code section 21000 et seq.; “CEQA”) pursuant to CEQA Guidelines section 15061(b)(3). The Interim Ordinance establishes a temporary moratorium on the processing and approval of new land-use applications for free standing data centers and grid-scale BESS while the City studies potential regulatory amendments. It does not authorize any development, approve any land-use entitlement, or result in any physical change to the environment. Accordingly, it can be seen with certainty that adoption of the Interim Ordinance will not have a significant effect on the environment.
Section 6. Imposition of Moratorium. For the duration of this Interim Ordinance, including any extension thereof, the City shall not receive, accept, process, or approve any application for a free standing data center or grid-scale BESS land use.
This Interim Ordinance shall remain in effect for 45 days from the date of its adoption, unless extended
5.1 in accordance with Government Code section 65858.
Section 7. Report. Pursuant to Government Code § 65858, the City Manager, or designee, must prepare a report for City Council consideration describing the measures taken to address the conditions which led to adoption of this Interim Ordinance. This report must be provided to the City Council so that it may be considered and issued not later than 10 days before this Interim Ordinance expires.
Section 8. Severability. Should any provision of this Interim Ordinance be deemed unconstitutional or unenforceable by a court of competent jurisdiction, such provision shall be severed from the ordinance, and such severance shall not affect the remainder of this Interim Ordinance.
Section 9. Effective Date; Posting. This Interim Ordinance shall take effect immediately upon adoption. The City Clerk is hereby directed to publish this Interim Ordinance or a summary thereof in the manner required by law.
THE FORGOING INTERIM ORDINANCE WAS DULY ADOPTED AT A MEETING HELD ON THE 16TH DAY OF SEPTEMBER 2026, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED: ATTEST:
______________________________ ________________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
CERTIFICATE OF THE CITY CLERK
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 Interim Ordinance No.
XX, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the 16th day of September 2026.
WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.
DATE: _______________________
_________________________________
MICHELLE BIGELOW, City Clerk