Planning Commission - Regular Meeting

Is the door open?

I guess the door is open. It's kind of stuffy. Get in.

Well, we got Chris here. Maybe he could take care of the AC.

Question about, yeah, sorry to push it out.

Do we have an infrastructure project for this? Okay, good evening. Welcome to the May 12th Planning Commission meeting. I'm going to call the meeting order. Are there any comments on that?

No, we'll call it.

Well, I'll do that after, but thanks. I'm just following the agenda. Thanks, Joe, for that help. Jenna, can we do the roll call?

Thank you, Chair Wilson. Chair Wilson?

Here.

Vice Chair Hebbie?

Here.

Commissioners Lake?

Here.

Muller?

Here.

Downey?

Here.

Lovato?

Here.

Working off an old one. Adama?

Here.

Thank you, Jenna. Can we declare the posting?

Tonight's meeting agenda was duly noticed and posted in accordance with government code section 54954.2.

Thank you. Joseph, will you lead us in the pledge? I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. John Potter, Public comment, the Members of the public are entitled to address the planning Commission concerning any item within the Morgan planning Commission subject matter jurisdiction public comments are limited to no more than 30 minutes. Except for certain specific exceptions, the commission is prohibited from discussing or taking action on any item not appearing on the agenda. We have any.

So the day gentlemen chair, if we can go back just 1 moment.

Yes, ma'am.

I'm going to share a. QR code if we have any speakers on our. patrons online who would like to make comments online, feel free to email us at pcpubliccomment.ca.gov. And then we also, if you would like translation services that is available, let me see if I can share my screen here. Let's see, is that working? Let's see, hold on one moment for me. Okay. So for the people on Zoom, feel free to scan this QR code and you can choose the language you wish to view the meeting in. Thank you.

Thank you. Gentlemen, orders of the day, any changes or comments? No changes. No changes. Thank you. Public hearings. Do we have any speaker cards or anybody wants to comment on any non-agenda items?

There are no speaker cards.

Okay. Our first item, the review of the fiscal year 26-27 through 20-31-32, the draft capital improvement program. That's consistent. for consistency with the general plan. Russ, good evening.

Good evening, Commissioners. We have a little problem with HVAC. I was able to turn it down, but I have phoned a friend, and hopefully they'll get it turned down for you any second while I'm speaking. Thank you, President.

So if we turn this off, do we have an excuse? No. Do a darn good job.

Do I need to share it on Zoom first?

Yes.

I got it.

I think it's on. Well done, Chris.

Oh, you know what? We're not signed in.

I think you're in it already.

Oh, this is the wrong thing.

Okay.

Wait.

Oh, okay. You're in here.

All right.

All right. Good evening, commissioners. Happy to be here for my once every two years update to you all. I'm with Ms. Chione, public services director, assistant city manager, and I will be presenting our recommended capital improvement program for planning commission review tonight.

I can get it to move forward. There we go.

So the purpose of the meeting tonight is really to present the twenty six, twenty seven to thirty one, thirty two fiscal year's capital improvement budget. We'll be discussing program highlights going through the CIP, and what we're asking the Commission to do is really look at the first two years of the proposed CIP to find it consistent with the city's general plan. You can also provide any comments or any other recommendations you like as we take this to the city council during the upcoming process. So just a little background. We have six areas at CIP. That is our parks and recreation area, our public facilities area, streets and roads, includes right-of-ways, wastewater, water, and storm drain systems. I will note we are in a strange position as some commissioners are aware that we've had a shrinking capital improvement program over the last decade and a half. And that is basically due to us having the redevelopment agency eliminated, which funded much of the capital improvement program. And then as many of our longtime commissioners are aware, the elimination of our Residential growth control system by the state also eliminated a lot of the funding that we've had for capital improvements. So at this point, our capital improvement program is primarily to support new development through impact fees, as well as the use of some of the fees that are some of the funding sources we have, like pavement rehabilitation, as well as some of the parks and rec funding can be used for renovation. But we really don't have, as many other cities would say, like a free CIP where we have general fund that supported it so that you can make decisions to do projects you just want to do. You have to follow the funding sources that are available. And the ones that are more discretionary have... Gradually gone away from the city of Morgan Hill over the past several years. So, as we look at the guiding principles, when we develop the, we follow the government code and. Our projects should be consistent with the general plan. We look at the city council's priorities that they've set. We try to address maintenance deficiencies. And we look at available revenues, as I just mentioned, to pay for the project, because we might have a council goal in one area, but there's no funding source to pay for it. So oftentimes those capital improvement projects remain unfunded because we don't have a funding source. But we very much look at long term maintenance. And if we take on new projects, how will that affect the general fund long term? Because as the commission is aware, we are facing a crisis. significant general fund challenge, and we do listen to community input to support the planning. A lot of times that community input comes through our master plans and infrastructure plans as we work through them or work in other areas. So as we're talking about infrastructure planning, wanted to kind of share where we are with various plans that help us plan the CIP and as well as where updates are planned and that's included in the CIP. So in 2024, we completed our transportation master plan and then followed up, that was the end of 2024. And the beginning of 2026, the council adopted a comprehensive safety action plan as well that tears off of that transportation master plan and goes into more specific detail on that. With those plans recently being updated, there is no current plan to update those again. Moving down our wastewater master plan, we updated in 2024. Its next plan update is funded in 2930. We typically do those plans every five years, both the water and the wastewater, and they help to drive many other components, including rate studies that we do for water and wastewater as we move forward. as a cip is a big portion of of those areas our water system master plan was last completed in 2021 and it would be completed in 26 27 this upcoming fiscal year we're actually finishing our urban water management plan which we do prior to the water system master plan so that master plan we expect to occur over the next four months and be completed before the end of the year The storm system master plan was last updated in 2018, and we expect to do it not this coming fiscal year, but the next fiscal year. A big reason why that hasn't been updated and we're updating it a year later is we're waiting for completion of the Upper Yagas project. um, Creek flood control project that Valley water is working on. And because that's been the major component of our, our storm system, a master plan. And we feel like it's best to complete that because once that's completed, that actual CIP for storm drain is going to contract quite a bit because we've been doing a lot of work won't disappear. Um, for all the watersheds, but it'll be done differently. So in 27-28, we'll be updating that one. And then the 2017 Bikeways Trails Parks and Recreation Master Plan, we are proposing that will be updated this coming fiscal year too. We had actually intended to do during this current fiscal year, but we've been... I think we did not have the internal staff resources or capacity to get it started. So we'll do it. We're planning to do it next fiscal year. So as we jump into projects, we want to talk first about the first area, which is parks and recreation. And we have the projects listed on the page. So the parkland purchase and development project that is primarily looking at funding new park spaces that we buy and purchase ourselves. In that CIP, you'll find that we are looking to develop a second larger community type park, 10 acres or larger community. in the out years and that is identified for the east side of town. We have created a couple of new parks on the west side of town. One was a developer, a publicly accessible park that we We credited funding for, and that's at the, I'm going to get many of the projects names mixed up, but it's at the corner of Sutter and Butterfield. It's the new publicly accessible park opened a few years ago. And then the Butterfield Park at the corner of Monterey and Butterfield will be opening this summer. So there's a two, what we call smaller community parks, and we'll be targeting the third larger one is the next one. The West Little Yagas Creek Trail project is an ongoing project that We'll continue. Much of the trail has been built out. As many of you have seen, that trail was built down to Silvera Lake. What we're working on now, we are receiving grant funding from VTA, as I believe it was just approved, for some money to complete some environmental work and planning, as well as using our own money in this coming year. to finish the trail system that would go around Silvera Lake and then basically all the way from Montero Road west towards Santa Teresa and kind of the linkages in there. So that trail is continuing to be worked on. We don't have a lot of money dedicated to that of our own money, but we have been really successful in continually getting grants to extend that project. And I will note there is one section to the north between Spring and Cialino that will be completed with the Valley Water Project. FLOOD CONTROL PROJECT THAT'S OCCURRING NOW SO WE'LL GET THAT SECTION DONE WHEN THAT PROJECT'S FINISHED LATER THIS YEAR. PARK FACILITY EXPANSION AND RENOVATION AS WELL AS RECREATION FACILITY EXPANSION AND RENOVATION ARE FOCUSED ON EXACTLY THAT. WE'RE USING THE DOLLARS WE CAN USE FOR RENOVATION TO DO RENOVATIONS OF THOSE FACILITIES. WE'VE TARGETED ON PARKS TENNIS COURT RENOVATION AND ON as a big one that's coming up. This project also funded the addition of the pickleball courts previously at Community Park and so on. One we've made some progress on recently is the El Toro Trail. And I think you guys are aware of that because you helped us along with that. So the West Hills Church has granted us an access easement through the church property to develop that. So we have funding available and we're working with the Open Space Authority and we're actively looking to purchase that trailhead near the West Hills Church so that we can begin developing access there. So that's one that we've seen some progress on in the last year. We hope to keep that moving. Villa Miramonte project would be the expansion of Villa Miramonte with the Historical Society. That project is at almost full design. It's a building permit review right now. So we expect to bid that project for that phase one project. Um, later this year, um, sports facility development, that, um, project focuses on new sports facilities next to the outdoor sports center and the aquatic center, as well as next to Butterfield park should be a ball field site, more sports fields. Um, we do have that planned into our CP where that project is right now. Um, and I believe you guys will, um, have some review of this is we are looking at annexing the city-owned properties that are in the county adjacent to those. So we're working through that. Adam is leading that effort. And so we're working on that. That's a big thing that will happen over the next year before we can design and start building out in phases, those projects. And then the last one is a big grant-funded project for improving aquatic center energy efficiency and actually converting some of the pools to electric pool heating, which was exciting. And that's primarily funded from Silicon Valley Clean Energy. Public facilities. This is an area where we've made a lot of progress in the last couple of years, but this upcoming, we don't have very much in there. So, if you see some of the pictures on the screen, we are completing solar at many facilities, including city hall. Corporation yard, we opened a new fire station in the last couple of years as well as. expanded the police station and most of that expansion was internal, but that was completed. There used to be a tenant at the PD and they've expanded through that space. And then we've installed some EV chargers, as you see in the upper right picture. What we have in the upcoming years at the For our fleet there. So that's really what's in there. And that will be hopefully heavily grant funded. We've been successful in getting grant funding for the EV chargers fleet EV chargers we have here fully grant funded. And then the library expansion is actually near the end of the six year term. So we aren't even talking about starting the planning for a couple years on that project. So it's pretty far out. Store drain CIP. I won't go through everyone, but I'll hit on some of the exciting ones. Obviously, the Upper Yaga's flood control project, we're partnering with Valley Water there. However, when that project is completed, there's going to be, I would say, some fine tuning because it's basically going to open up this big channel, but we're still going to have to review how Our connections to it are working, and there may need to be some improvements in the areas just adjacent to it to make sure that we don't have constrictions ahead of it. We've already seen the major success of it at Watsonville Road. Doubt that we'll ever see flooding at Watsonville Road again. If you've been down there through the last winter... it's pretty much opened up the whole uh channel there and we expect that to go the whole way through but there's some minor improvements so expect work on that to continue on our end for the next two years um right now we are also bidding and will continue next year a big change of the butterfield basin which is south of butterfield the butterfield overpass and we're really converting that basin we got a big grant from the state to put it at change it to an online basin so it can be used for recharge and also trash capture which is a state mandated requirement for us so that's a big project that we'll see happening over the summer and we have a bunch of grand funding for that the other one that you'll see happening through the city are smaller trash capture devices as mandated by the state in certain areas of the city a lot of those will go into the storm drain inlets so we're installing those projects as well. um streets and roads um just kind of going through these our undergrounding project there is not anything in the near years it takes us a very long time to get money together to do an undergrounding project we have we do use some money occasionally to try and maximize those dollars and do reimbursement agreements with developers it's opportunity based where they say they can't afford the undergrounding or they are required to do the undergrounding we want to go a little further outside their frontage and we use that money so So we are opportunistic with that project, but a big project on our own is a couple of years out. Traffic signal and intersection improvements. The upcoming one that you'll see in association with the flood control project will be the signalization of right and hail. That'll be the next signal you'll see in town when that project opens. It might not have a signal right away, but the bones for the signal will be there and then it'll be popped up hopefully by year end. with a new signal there and the other piece that's in design the other big one that's in design is a roundabout at that we are going to construct at hale sorry Santa Teresa or Sunnyside and Watsonville. And that's the other one that's in design that you'll see in construction in the early years. And then there are other areas outlined in our transportation master plan that we'll continue to work on for improving congestion as well as safety. Pavement rehabilitation, continue that program. We have a five-year plan and that's on our city website. You can view at any time that we basically use The data we have on the condition of the streets, public input, as well as we try and cluster areas, as well as try and make sure our arterial and collector streets are maintained. And that's why some of the residential streets take longer for us to repave because we're focusing on those areas. So we continue that on and any member of the public can view what that five-year plan is at any time and just update it again on the website. You can check it out and see where your streets are at with the updates we've made in the last month. The next one, our bike and pedestrian safety project, that is a new project, and it's basically come from our transportation master plan and comprehensive safety action plan and how we implement that. We are currently updating our traffic impact fee that will allow it to be more flexibly used for multimodal improvements. We expect to hopefully have that updated fee go to the council in the next month. um, or early fall. Um, so there's several, um, things outlined there. And that also involves some significant grant funding, um, We all will be applying for significant amounts of grant funding over the next 2 months in that area. We've already received about a half a 1M dollars from the federal government for improvements next to schools. Typically that more, which are rectangular rectangular rapid flashing beacons as well as speed control signs and restriping of some areas. that were outlined in the comprehensive safety action plan. Small grant, because it was a demonstration grant, we'll be applying for hopefully a multimillion dollar grant coming up to take advantage of that funding while it still exists, as well as a few other grants. Sidewalk repair project. That is an area we have funded from remnant RDCS funds for many years. It's funded that project and we'll continue to fund it at about 150,000 a year for the next six years. and uh the last one is our downtown parking trash enclosure and that is a city-owned trash enclosure behind rosie's at the beach that we need to update to comply with state trash standards we will build it out the cip but We basically have the ability to charge the businesses that use it back to recover the costs. So that's what we'll be doing in that area. I should mention on the sidewalk repairs, we recently completed a citywide sidewalk assessment followed by an update to our ADA transition plan, which basically has given us a roadmap for all those repairs over the coming years, as well as additions and upgrades to curb ramps. All right, so getting to the really fun ones, our wastewater system. So we have some huge projects, actually be the biggest project we've ever completed in the history of Morgan Hill ourselves. Not as big as Valley Waters project, but for us, managing ourselves will be a new trunk line. And we have basically everything in place to bid this project. We are finalizing some federal projects. Uh, loan, uh, items we basically pretty much been approved for the loan and we're just finishing it up to get get our get the funding secured. And then we're finalizing some minor adjustments. The city of Gilroy wants the new trunk line will be an interesting project. We expect to be close to 70Million dollar project. It's going to be interesting because none of it's built in Morgan Hill. It'll be built from San Martin through Gilroy. So we're working with the county in Gilroy. So it'll be a fun project for our engineers to work on where they have to follow everyone else's rules. So that'll be exciting. In here as well are repairs to the existing trunk line, as well as... There is the sewer treatment plant. It's basically not a project we run, but we fund with the City of Gilroy, and it's nearing completion. It'll be online this fall, so the expanded treatment plant will be up and operational this fall. It's substantially complete. They're just going through the final components of getting it up and running. Those are the exciting ones there. We'll continue to improve our lift stations that we do on every – 15 years or so, we renovate those, and those are big projects as well. Small projects and location, but can sometimes be costly. So the next one is our water projects, which we know are the most exciting. I'm excited to show you these pictures. If anyone looks up to the east, has anyone seen the new tank being constructed on East Dunn out there? Well, if you look in the pictures on the screen, the picture on the top is the pad for the tank. So that's what it looks like up there. If you drive up towards East Dunn, you can see it being built on the hill. It's a nearly a million gallons of water that will support not only those areas over there, but support the city as a whole with redundancy in our water storage. And the second picture was actually from just a few days ago where we got to go inside the tank that's been built on that pad. And that picture is from inside there. So it's the first major storage project we built in more than a decade. The other big ones we're working on, we have a new groundwater well being drilled right now. Actually, drilling is almost done, and we'll be trying to move that project forward to the next phase, and that is another well near the Coyote Creek Trail, and then we'll be starting a second well site to be determined that we're working on sites, hopefully next fiscal year as well. So we'll continue to build those. The interesting thing about the new wells, our water use has really remained flat for many years, but it's still important for us to build these additional wells for redundancy because how the water is used is a little different, right? With landscaping water, dropping and then residential water increasing and that's really how things are staying flat. So the need for additional wells is still there for redundancy as well as things like our pump station capacity that moves water through. We'll have projects for that. We will have a second phase of the It's called our holiday lake improvements. The first phase got the water. We'll get the water up to this tank halfway up. The next phase builds a pump station and then pumps that water up to the holiday lakes tank. So we'll have kind of redundancy and getting water up there as well. Um, And then we'll have in the out years, as you look in the CFP, you'll see additional reservoir capacity improvements where the size of the reservoirs increase either through an additional tank being built or a tank being taken down and a larger tank being built there. And then we have maintenance-related projects as well that are primarily funded by our rate payers, and that is replacing existing water lines that are 50 or 60 years old with new ones, as well as recoding and rehabbing existing reservoirs that are not getting increased in size. So that really concludes the update to the CIP. Within your packet, you have a reference sheet that references the projects to the general plan policies and goals, which they support, as well as the infrastructure master plans they support. So that's in your packet to help you find the consistency. With that, I think I've talked enough. I will stop talking and be happy to take questions.

You want to start with me again? I just have a few questions sort of at random. Start with the Parks and Rec section of this. That's going to be reviewed by Parks and Rec's commission as well?

Yeah, they have reviewed it and recommended approval. They have one asked the council to... To look at one item, which is they'd like to add parks to existing or threat restrooms to existing parks. That wasn't in the recommendation from the city manager because of the operational costs of those, but they've made a request that the council look to find funding for those and staff look to find funding of those without us changing the capital improvement plan at this time.

So, would you say that. We don't necessarily have to focus on that because the Parks and Recs is another commission that has the same role as us, I think, but focused on Parks and Recs.

I would agree, and they have eyes on that, just like you may have eyes on everything else. They also do review some of their commission responsible for... Bikes, bikes, trails and pedestrians. We used to have a separate type committee that got eliminated and that got pushed to them. So they reviewed some of that as well. But yeah, so those are the areas they would review and you'd have double sets of eyes with with your review.

And then ultimately triple because the council looks as well. Right. Right. Yeah, so I think the only I mean, I'm absolutely. Going to support the acceptance of this report. It's very good work. Of course, Chris is very aware that I'm very proud of the work he does and all of. The city staff, they really are sharp know what they're doing. I think it's hard because there's so much in this report. And while I'd like to ask more questions, I started writing, just writing all over the report, my questions to myself, and then eventually I would answer them because I'd get a little bit later in the report and find that answer. So, the 1 thing I was going to comment on is, is an ask in the future. Can we see this before? Maybe have Chris do a presentation before the meeting where we're going to accept it. Because that will help us to understand the document better, like, to have heard your presentation before I even read the document. That might just be helpful and maybe we could even do that online or some other process where we get it a little earlier than the 3 day agenda. So, just 1 thought kind of an ask. You don't even have to answer right now. Unless you want to.

Yeah, I'd be happy to answer. I think the hard part, we kind of have to present this out to the community. So it's out there. And I think we could have given you notice that the CIP was published before the three day because it was published for the community because how we typically have done it. And we try and get it to you earlier. But even after, you know, Uh, we in public services finished the, it has to go through finance review and the city manager review. So we did publish it at the start of the month and we should have informed you all that you could have looked at it then. So we can definitely do that. And then I think in future years, I could come back even if the is not ready and give you kind of the. Kind of the discussion we had today somewhat so that you're more prepared. So it's like 2 meetings, even if we don't have it ready, we always strive to get it out a little earlier than this, but.

Sometimes don't make it. I totally appreciate and understand that. Um, so thank you. But, um, one thought too, is that it might be like a workshop kind of a session as opposed to a full on council session. Um, so it could be more of an interactive dialogue, sit around the table and talk about it kind of thing almost. But, um, And I just wanted to say that as I read through the document, one of the things that always came to mind when I looked at the various projects was, are we considering impacts to the general fund? And of course, we all know that's extra critical in these times because we are facing a deficit. It is in front of us. It is happening. And so I see in the report with every project, it comments on that consideration of the impact to the general fund. It doesn't necessarily spell out That you know it can happen, and I know that's going to come in in the future when the projects are actually awarded or taken action by the Council. But I would just want to caution that we do. I don't think it's really our role. I think it's more the Council's role in terms of the budget, but I think I would like to see us, or at least myself anyway, I would recommend that we're extra cautious these days because, again, with the budget deficit on the general plan, we really shouldn't be adding any more burden to the general fund. I mean, almost exaggerate that. Like, for example, the trailhead, which I think everybody's excited about, but maybe we shouldn't touch that at all until we solve that problem. And especially since if I read that right, it commented that those impacts are unknown to the general fund. So I'm not sure we should spend any money on that right now, because some of those monies might be used for projects that might reduce impacts to the general fund. Like when you build solar and you get savings from the solar, that helps the general fund use CIP funds. So I know there's not too many of those we can do. So that was one other comment. And then the other, as an example, when I was looking at the courtyard expansion, I see there's future planning occurring, master planning, and you're working with the city of Morgan Hills Unified School District. But we're starting with electrification for cars. I'm not sure how that supports the expansion of courtyard. That's a different incentive, right? That's about...

It's really not an incentive at all. We are mandated by the state to start converting our fleet, unfortunately. Oh, I like that. It's a state mandate as well. Okay. So currently, clean fleets, the clean fleet requirements for California is if we purchase a vehicle over 8,500 pounds, we have to purchase an electric vehicle over 85 pounds matching one for one or else we can't purchase a vehicle without significant penalties. Oh, my Lord.

Okay. Yeah. Another reason to pay attention to state legislation, I guess. And because you mentioned this, because sidewalks are in this plan, you and I have talked about sidewalks. I'm going to assume the commission is aware of that. City of San Jose and many cities don't do sidewalk repairs. It's the owner of the adjacent buildings. And I'm not sure, and that's more of a general fund impact question, I guess, not really our concern. But, you know, I would definitely throw a suggestion out there. We consider going to that model. to help the general fund. Again, not our purview, I guess. So Jim's going to tell me to shut up in a second.

I'd be happy to take that comment. We have internally as staff, and I think we presented it to the council previously, not as an option, but as information that most other cities kind of do it the other way. Instead of doing all the maintenance themselves, they have the entity or the property owner take responsibility and then will sometimes backfill to support that with dollars from the city through a grant program or a matching program. So that is something we have shared in the past, and I think we will continue to share, but if the Commission wants to make comment on that, you could definitely do that in what you want to share with the Council.

One last quick question. Sorry, I promise. There was one that you mentioned in your presentation. I can't remember which one it was, but I think I read another one where one of the projects funding source is a loan. Is the debt service for that loan from that same CIP fund or is that a general fund impact?

So, and we have a few in here. So we do on the CIP, we've done some internal, you're talking about our internal loans or external.

I'm not sure. It just said loans.

But no matter what the answer is, the debt service is always on the CIP. The fund that is getting the loan, so the debt service is always paid, whether it's external or internal. So just take our, we have. We have some bonds that we've done for wastewater and some of the. projects were related to the rape prayer projects. Some were related to the impact fund projects, but those are tracked by our finance department and the debt services paid even individually between those projects by the specific funding source. So that the one getting the loan always pays the debt service. Thank you. I'm done.

Before we go to David, I do have one general question, Chris. So for the first two years, how many of the projects you propose are fully funded?

So they're fully funded at the funding levels that are in there for the first two years. So if it shows that funding in the CIP project, that funding is expected to be there. And our plan would be that that is our budget and we can spend that money because that money is now appropriated. Beautiful. Thank you.

Okay, thank you chair. Chris, thank you. It's good to see you again. I just had quick clarity questions. Did I hear you right when you said the city web pages have like a real conditions index for the public to review? And is that listed in more of a priority or how is that listed?

Yeah, so we have a five year plan on the paving that we're going to do, and you can look and see what streets are in a five year plan. And additionally on that, and you can actually see what streets were done for previous years, because we have a five year street cut moratorium. So it's kind of that you're not supposed to cut into if you're if it's a newly paved street. In addition to that, we have our most recent recent. pavement report, which we'll be doing again this coming year, that shows all the conditions of our streets. So you can look up and see what the street conditions currently were or were within the last year and a half or so. And are the project listed in more priorities? Yes. Okay. So what we have done is prioritize a five-year plan. So if you're in that five-year plan, it's typically a higher priority will be in the earlier years. And that priority isn't just based on what your pavement condition is. It also has to do if it's an arterial street or collector street, those sort of things. Okay, great.

The other question was, you talked about bike lane improvements. Yes. With the increase of youth biking, whether it's e-bike or biking to and from wherever they want to go, what kind of bike improvements are we looking at? Are we talking about... more dedicated lanes or restripings. We've got a lot of share, share, share the road kind of situations. Yeah.

Yeah. So you can look at both our transportation master plan and our comprehensive safety action plan. And the idea is to get to more buffered bike lanes on key streets. Now, I, and I know you're very well aware. Well, there's a higher standard would be a protected bike lane where there's something in between. We have not, although there are recommendations for that, we have not, um, We are not considering implementing that at this time because that would require a different type of service to sweep the streets, which includes a dedicated smaller street sweeper, which you're aware of. So that comes back to the general fund kind of component of us not being able to fund those higher levels. Even if we were able to get a grant for those protected bike lanes, we have to consider if that will work. Now, with that said, if... If we get a buffered bike lane in place and we're restriping to there, if we have more funding in the future, that buffer can basically turn into a higher level of protected bike lane as well in many conditions. So we'd be looking at that.

Okay. Last question would just be, in addition to our bike lanes and our curbs, Is part of the plan to increase the last mile, first mile for all these new communities as far as safe school route? You know, with all these new communities popping up, more kids are going to be walking or biking to school. Are we going to connect those gaps?

Yeah, so the big ones are sidewalk gaps. So, yes, and that is outlined in the Transportation Master Plan, which really – identifies all the sidewalk gaps. And then we've also identified those gaps in our comprehensive safety action plan next to the schools. So as one of the grant I was talking about that would improve some of the corridors would also do gap closures. We also plan to try and apply for the, it's called the AT active transportation grant. And that was specifically in some areas, implement those safe routes to school items we found in the plan. So yes, we're actively going to be pursuing funding as well as using our own dollars for matching funding to kind of fill those sidewalk gaps.

Thank you.

Thank you, Chair.

Thank you, Chair.

So maybe just starting off, one of the the items on the list for the consistencies indicated policy COS. What is that policy? Is it specifically for the aquatics energy efficiency project?

Let me look it up for you because I don't have the general policies memorized, but I have the general plan up.

Okay. I can probably ask the next question if that's something you need to look up, or I can wait. Yeah, and the reason I was asking is because I typically just pull up a general plan. Um, and if there's any, like, indicated ones, like. The sewer master plan, um, and so on, but I just wasn't sure what the. I think that was.

Let me look at that. Give me 1 minute. Let's say reference. And you're saying it's not in the general plan?

Oh, I'm not sure. I just didn't see it. I don't know if it was separate or on that item. I believe that one's in the climate action plan, not in the general plan. Got you. Okay. So that COS policy is in the climate action plan. Correct. Okay.

Oh, yeah, it says it here. Climate action plan, GP clause 12 and 13, policy COS 12.12.

And a whole bunch of others that should be okay. So it's on the general. It's in the climax. Okay. Thank you. Um, the other question I had was in regards to the outdoor sports expansion. Um, project, this was the sports facility development. And we kind of indicated that it was still in the process of. I believe LAFCO, is that correct? And what's the current update on that? And do you think that's likely to happen given the historical nature of what LAFCO has done when it comes to annexing?

Yeah, so I'll answer the second part of your question and I'll let Adam answer the first part because he's actually running that project. Okay. although I'm working with them very closely. But I think we have a great opportunity. The properties we're talking about annexing are not like what we did before. It's not a significant annexation request. The ball field side of Monterey is surrounded on three sides by the city and the fourth side by the railroad tracks. So we almost consider it an island. The properties next to the Outboard Support Center and Aquatic Center have not been farmed in many years and are north of Tenet Avenue, where we're looking to preserve farmland to the south of that. And we've had conversations with not only the county, LAFCO doesn't really talk to us about these things until we're in process, which we have not submitted to them yet. But I know Adam's had some conversations with But we've also talked with many of the environmental groups that have opposed some of our requested annexations in the past. We've had long conversations even when we were purchasing these properties. So we don't know if they're going to push back against us, but we think we're in a much better situation. And the big key to it is there's no property within the city to build these type of facilities because within the city limits – there's there's just not that continuous property to build uh sports fields anywhere right um so so i think we have a better opportunity um coming up and adam do you want to speak to timing wise

Yeah, so timing-wise on annexation, so the process, it's a multi-year process. We are concluding the draft EIR soon for this analysis for annexing the city properties as well as with another project. And so we are expecting to release that EIR in the coming month for public review. And after that, it will... Once the final EIR is completed, come to the Planning Commission and City Council for a recommendation for us to submit the application to LAFCO for review. So... We are probably looking towards the end of this calendar year before it comes to planning commission. And then after that, it's going to be a process going through LAFCO. Providing a time frame to complete the entire process is a little difficult, but it would probably be another year, if not longer, to complete it with LAFCO.

And that couldn't have gone through the negative DEC process and needed a full EIR?

Correct. It could not. So with this, we do have a settlement agreement with LAFCO based on our 2016-2035 general plan, final EIR. And so with that settlement agreement, it requires us to do a environmental impact report for any type of annexation within the city. And so all annexations would have to do a.

Interesting, so any and all within the city of Morgan Hill are going to require. That initial work or the initial investment in the for it to even process. Correct. Okay. And I've been knowing whether it's going to be approved.

Correct. The same thing as any type of a development project that would require an EIR. Okay.

All right. And the other question I had, this is just maybe in general. So I know there's a couple of projects that maybe kind of cover this. This is in relation to the wildfire policy that we have that looks to mitigate or at least reduce risks based on the general plan. And so... I always think maybe if you can help me understand how we evaluate the consistency. So, for example, the El Toro Trail staging area, or I think the one that specifically indicated was the utility infrastructure access road off of Jackson Oaks, where it mentions it's a high-risk wildfire area. And it makes sense, too, because the roads, in essence, will... kind of mitigate fire risk by making a fire break. But when it comes to the policy itself, that's looking at reducing wildfire risk areas or access to wildfire risk areas. Do we look at some of those projects as ways to mitigate the wildfire risk or is that policy more so

of in conflict given that you're doing both you're creating access but you're also mitigating a wildfire risk yeah so the utility access road um projects i think it'd have to be project by project right and there has to be some discussion but so the utility access roads i mean we've had conversations with fire they're not going to be used by fire to put out fires because it If there's a fire there, they're not going to drive to those roads, but they do provide a natural fire break. So those would be supportive of that. The El Toro Trail, we've had lots of conversations with fire. It's not known that those trails will really be wide enough to serve as significant fire breaks, but there's something we can do. There's things we can do to improve that. And we would really be relying a lot on the open space authority in our partnership on the El Toro Trail. We're really building the staging area and they'll take responsibility for building and planning the trails. But that's something we can always look into. I don't believe that that trail will reduce wildfire risk there. I will note it's not included in the CIP, but we did receive a very large CAL FIRE grant of close to a million dollars to reduce wildfire. uh reduce fuel on in several areas of the city primarily on the um On the East side, but but. In other areas as well, actually, it's actually a big portion on the West side along August road too. That will be trying to implement over the next year. It's not within the is within our maintenance component and we really haven't. Completely budgeted yet, because we're trying to finish the grant agreement. Sure. But but we do have another project that wasn't listed here that we are. we hope to come to fruition in the next couple of years that will make a big difference.

Got it. Perfect. Yeah. And I know one of the components and I agree with the consistency. I know you've indicated several of the consistencies for many of the projects and I agree with those. I think it was also just kind of seeing the art, like in that case, some, some areas where you have maybe some, some conflicts to kind of work through. And it seems like that's something that the team has already looked at. And maybe just a comment too, is, you know, once that, um access does open up for the public i think it would be really important to work with cal fire work with the agencies responsible to help mitigate some of that risk especially as public is going to have access to it there's heavy vegetation in the area and so forth and i'm sure again that's part of the plan um as it goes forward but just a comment for myself And finally, I think I was going to bring just two items from the supplemental. I think Mr. Muirhead had actually submitted some supplemental questions, but just wanted to talk about two that I thought were, or maybe I'll just focus on one for now. And I'm sure maybe Mr. Muirhead might have some additional comments. And that one was specifically in regards to the library and its future expansion plans. And the question came was, what were the priorities for future expansions when it comes to the library expansion project?

We, since it's kind of far out in the CIP, we don't have those established yet. I don't have those from the, and that would really be working with the library district, but we haven't started that yet. I think that planning process would start in 27, 28 to give us. Okay. Thank you, Chris.

Appreciate it. Go ahead.

Chris, a couple of questions. So just to confirm what I think Jim was asking earlier, so I was trying to compare what was on your presentation versus the 130-page document we were sent, right? And a lot of those projects span across quite a number of years. Some have already started, for example. Is everything you put on your slides either already started or will be started and funded 26, 27?

No, there's some things on the site that are not. Like the library is a perfect example. I listed kind of every project that's in the CIP, but several of them. I mean, most of them are a lot. Most of them have portions starting in the first couple of years. Like for instance, so the library is not, but so the sports facility development is, we're funding the EIR and that planning process, but we don't expect to have anything happen there, design, you know, a following year and then a first phase is still three, four years out, right?

I'm asking more administratively because our function tonight is supposed to be to confirm but the next two years of projects that they comply. But if we can't tell which ones are in and which ones are not, if I help to say, if you could just tell us which ones are not included, because it sounds like most of them are included, right?

Yeah, but most of them are included. If you want, I can go through the slides and tell you which ones are not included.

I mean, do we want to know or does it matter to you guys? Does it matter?

Within the... All right. And that's an improvement we can take for next time. And what I can do the next time around is highlight which ones are in the first two years in the presentation. So I apologize for that. I think that'll work.

Yeah, that would help. I think you answered that. Yeah. OK. You also mentioned, Chris, and this is more of a curiosity question. You said something to the effect of since we lost the RDA funding, right? I know a lot of the projects you would typically try and do, where that funding would come from, have kind of dried up. So you have to kind of either not do things or rethink how you do things. Just curious. We're not the only person with that, but what's everybody else doing? Are they all in the same boat? Have they come up with other creative ideas? Have they found other sources?

We're definitely not all in the same boat. We were one of the, I would say, one of the... Most advanced users of the in the state we built the recreation facilities that we have as well as several other facilities. You know, we did major renovations to our downtown, which a lot of cities did, but not a lot of cities did what we did on recreation facilities. So, so the answer is, we're not on the same boat, but other cities do different things or cities that. that have a more steady general fund funding source. And what they do with their general fund reserve is they roll over the general fund surplus on a year-to-year basis. They have a general fund surplus. Instead of putting it back into the general fund or putting it to dedicated things like we do for roads, they push a big portion of that surplus into a general cip fund that they can use for anything because it's discretionary so there's a lot of cities that do that which is which is helpful which we don't we don't do we were until recently when we had a surplus rolling the money specifically into pavement emergency our pd and fire equipment replacement as well as park maintenance replacement because we were using former rdcs funds for that but we've never taken the approach that other cities do and then there are other cities that have dedicated funding sources for parks a park bond or a public safety facility tax where they can take that and put those some of those monies into their cip which we don't have so some of them deal with it that way and then i think there's other cities that are just like us that are just trying to deal with it the best best that they can

Okay, I'm just curious. On the parks and rec, well, actually maybe on a lot of them, but specifically on the parks and rec, I mean, most of the stuff in here is horrific. I'd love to see this and more. But to Steve brought the point up earlier, it's really concerning that the more you build, the more you have to maintain, right? And we can barely maintain what we have. I mean, don't get me wrong, we don't do a bad job, but I think we could do a better job at communicating some of the stuff we have. And we do all these projects, like, are we just putting more strain on the, like, because assuming maintenance is paid by the general fund, right, is it?

Um, yes, but most of these don't really have an income, right? No, many of them do have income. So, yeah. So, and some of them are, so when you look at the park renovation type projects, um, some of that and enhancement, like some of that will be to build new stuff, but a lot of it, we're going to renovate the existing tennis courts and that's going to come from that CIP. So we do have some opportunity that's offsetting operational costs because when things are renovated, they do that. The same thing. The priorities of the recreation center renovation will be on some of our facilities that are revenue generating, and those improvements would hopefully enhance revenue. The long-term sports facility development, we basically, we have this motto that we've used at the city for years when it comes to recreation, is balancing cost recovery with community access. We've been really successful with that at the Outdoor Sports Center. That partner actually operates that center with a net. When that net comes back, that positive net, that net doesn't go to the city's general fund. Some of it goes to the operator to help their reserves, but most of it goes into... a reserve specifically for maintaining that facility so when we expand we really want to look at partnerships like that to help improve the use of the new butterfield park site very similar right so we're building the park site for the community next to it we have this bmx track which we think is a great thing for the community but they're actually going to pay a major portion if and get up and running of the cost of the general park. So we're trying to find things like that when we do many of these projects. So a big portion of that list is hopefully not going to be things that cost us money. Aquatic Center Energy Efficiency Project, we hope to save more money there, and it's funded by a grant. Some of the things that will cost us more money, El Toro Trail, West of the August Tree Trail. Trails typically don't have any way to pay back. Parks, there's limited opportunity to continue revenues, to gain revenue from. So those are the ones that are the areas that will be more difficult for us to cover costs. Now, anytime we move forward with a project to the council, we're going to have to figure out how to fund it. But take, for example, a trail project like West Little Yagas Creek Trail. There could be portions of it that we can add without adding significant costs, where if we go past the further point, then we're going to have garbage cans and maintenance on a whole other section. And we'd have to look at that, how that really can be managed. We have a trial dog park that's over next to the fire station. And the council said, we're not going to move forward with making this a permanent dog park. We're going to get rid of it unless you find a way to fund the ongoing operations, which was less than 10,000 a year. And we found sponsors to take care of that. So we're going to move forward with that. And that's not just a sponsor for one time. That's an ongoing sponsor contracts for five years. So we're working on finalizing those. So we're trying to speak out the box.

There's a dilemma in that. to Steve's point earlier, which was, you know, when you look, everything's funded, right? Yeah. And you've got funding from very creative places, right? But I assume if you don't spend it, you lose the funding, right? But once you spend it, there's a cost to maintain it. And I would assume, to take products and records as an example, I was trying to work out the numbers, but it was a little complicated. But I would guess at the end of the day, if you do everything on this list, even though some are revenue generating, the net is that it's going to cost the city more.

Yes, I would agree.

Money that we already don't have, right?

Right. Yeah. I mean, the one thing, if we decided we're not going to build anything, we'd have to stop collecting those fees and that'd be a problem. Oh, I understand.

I understand the dilemma. I get it. I'm just saying that. We need to understand that there's a cost to run these things, cost and money that we don't really have.

Absolutely.

Okay. A couple other... Let me see here. Oh, last one. So... Probably the most disappointing thing in this report, which wasn't a whole lot, pavement rehabilitation and sidewalk repair. $150,000? What's that, like 150 linear feet? I mean, I'm serious, right? We know how much concrete is these days, right? It's nothing. We have no other way to get funds to do pavement rehabilitation and sidewalk repair?

Yeah, so there are some things that are occurring. So pavement rehabilitation, several million. Which one? Pavement rehab.

Sorry, sidewalk repair was $150,000, right? Yeah, yeah. Yeah, so the pavement retention is $7 million. But even that, for the size of the city.

Yeah, we need about a million more dollars a year in pavement rehab money to start maintaining and potentially slightly increasing our PCI. So it's about a million dollars based on our last pavement report.

Where does that money come from?

The million we're missing?

Where does any of it come from?

Yeah, so pavement rehab, we get significant funding from the state through SB1 as well as initial gas taxes. That's well over a million a year. BTA's Measure B, 2016 Measure B, we get well over a million dollars a year for pavement rehab there. We have other small funding sources for pavement rehab. So we have several million a year budgeted for pavement rehab every year, and we do projects every year. And then we have a transfer from the general fund and some of that's non-discretionary money that has to go to pavement because it's... Is it fair to say we're behind? We're about... We need about a million dollars more to... If we... Per... pretty much most of the plans that we have on that. When we do our pavement report and we look at our PCI, we do a projection of how much money we need. We would probably need the last report. We need about a million dollars or more a year to balance. However, with that said, what we don't, what's not included in that projection is grant funding. So we have several million dollars that we're going to use in an OBAG project to repay Monterey road. And it also doesn't include other projects. When we find ways to do pavement cheaper, and sometimes that's partnering with a developer to do a reimbursement agreement. So that more payment does. So we've done pretty well in maintaining our PCI over the last several years in the, in the, from the mid to low seventies. We've done really well compared to all the other cities that we've. flown up the chart on our pavement level compared to other cities. So we're doing okay. Do we need more money? Yes, but it's not one of my biggest areas of concern on the pavement side. The sidewalk side, we just did a sidewalk assessment. Now, we need more money for that for sure, but we've also been experimenting with new technologies, which is like sidewalk cutting instead of just replacing.

I thought you were going to say levitating scaffolding.

I would love to do that. But so we're experimenting with new technologies that cuts the costs on certain repairs very significantly. So we actually get quite a bit done with that little bit of money that we have. And where does that money come from? That money is remnant RDCS money.

So the city has no other funds to do sidewalk repair?

Not at this time. However, in addition to sidewalk repair, we do use pavement money when we're doing the pavement projects to replace curb ramps. So that helps us get updates on curb ramps and those AD areas. So yeah, but there's no other dedicated funding source. We could pull money to replace sidewalks, except right now the general fund, or if we get grant funds.

Okay, I understand that it's a little disappointing that we don't have a bit more funds for that, but I understand the concern. That's it, Jim. Thanks. Thank you. Joe?

So I'm going to ask a question about one. The West Yavis Creek flood project. How long will it take for the flood map to be changed?

I believe Valley Water is starting the process before the project's finished, but I believe it's three to four years.

Okay. That's a little quicker than what I thought it was.

Yeah. I could be wrong, and I can get back to you guys through Jennifer and Adam with a more clear picture from Valley Water, but that's what I recall.

Yeah. I just think because that affects insurance for property, ought to be clear when that might happen.

Right. What we've heard is that it's approximately four years after the project is completed and everything is submitted to FEMA for the maps to be redrawn and everything.

Okay. And Valley Water is trying to push ahead before?

Yeah. But I can verify it.

Yeah, we need to have a set of clear explanation that The other one is the El Toro Trail is highly anticipated and been that way for several decades. The question, I guess, I know the trailhead that I think we play a bigger role in, one of the big issues is where to have parking.

Yeah, and that's what we're really working on, whether it's acquiring, we want to acquire property from an existing property owner near the church or the church, but more than likely a property owner across the street next to it. But to Commissioner Dowdy's point, once we open that, that'll also be a cost to maintain it.

Right, right. And Just because we had a project that opted out, how do we get money for undergrounding

Mind. So it's so we used to get more money from PG&E. That program is coming to an end and we used and take money that we had with that to match it. And then we have projects that opt out and pay an in lieu fee. But basically, almost every project that's coming through through residential now is finding ways to get out of the underground requirement. whether it's concessions or waivers or just because the cost to do it is so significant compared to the cost of their project because of the cost with PG&E that it wouldn't be legal to charge it. So we do collect some in lieu fees, and that's where we would get money for our projects. And then we do still try and make some projects when we can do the undergrounding.

So we really don't have a funding source.

We don't have a consistent funding source at all.

Okay. That just seems like...

Underground lines are a lot better than... We 100% agree. And Adam and Jennifer will attest that the engineering is fighting them on undergrounding lines on every single project that comes forward. But we also understand that the state law is not in our favor in many cases when it comes to requiring undergrounding, especially on these infill projects.

Okay. And now I got one because I just don't remember. from the other studies that we did in the last couple of years. How can we fill in the gaps to Sobrato High School, which is mainly along Monterey, I believe?

The sidewalk on Monterey. Going north.

Yeah.

Yeah. So, I mean, a lot of that's getting filled in with new developments.

Yeah.

We're filling in a lot of the sidewalks. So that can be a gap fill project. We can apply for grants for and look for that. Those are expensive, but it's absolutely something we can do.

Because as I recall from working with the interns, that was one of their big issues was that was the bike and the safety of riding bicycles along Monterey without all that kind of stuff. It came over and above, and they were actually trying to figure out a way to go from Mission View up at Target and then going through there. But there's not a real path.

You can walk through there and through the county park pretty easily. I ride through there on my bike all the time.

Don't let the kids hear about that because I think there's some private property in there.

Well, so you can get to it without private property if you take the trail, the Coyote Creek Trail. If you leave off of the end of Mission View, then you're going through private property.

If you're willing to deal with the punchers, Chris, some of that trail is very rough. Some of that trail is pretty rough coming to the back way into Sobrato High School.

Yeah, he's talking about coming over Burnett and going over the Burnett overpass. I mean, it's not perfect. There's not sidewalks. It's something – I mean, I think our general plan, transportation element calls for that street to go all the way through, connect to Burnett, and then you'd have sidewalk all the way through. But that's probably – A lot of fun. Not during my career, but we continue to plan for it.

So I don't know. Maybe that's something to consider because that was, again, the interns looking for what it is to get us involved.

We do in our Trails Master Plan. And what we want to do is we want to work with Valley. Well, there's two things. One, like a trail through at Mission View would be good. And also there's if you wanted to walk down towards the front of Target, the Madrone Channel Trail, there's a potential pathway kind of on between Target and the highway where a trail could connect from there up to Burnett. That's something we continue to look at to try and improve. Yeah, because there's lots of options that we do need to gap fill on Monterey Road is a big one that would likely be something we can get funding for. So I've noted that as well.

I thought I had one more, but I think that's it.

We can come back to you, Joe, if you remember.

Great report. Only question I have is, can you talk a bit about, I was curious about the Gilroy-San Martin sewage infrastructure, because you said it was a lot of money. but we aren't playing much of a role. It's mostly Gilroy and San Martin. Can you give us like an overview of that?

No, it's a big, the areas it goes through is Gilroy and San Martin, but it's completely our project because it's going to be upsizing of a trunk line. So basically we've upsized and added new trunk lines from the southern end of the city near Monterey and Silvera Lake all the way down to Harding and Highland. And from there, we're going to this next we'll kind of complete that and we'll build a trunk line that travels from San Martin. And it's our wastewater all the way down to the city of Gilroy and connects near Costco, where we've already cost shared to build a new line from the treatment plant that ends up at Costco. We paid for about half of that with Gilroy probably 15 years ago. So it's sitting there waiting for us to build this connection. So it's kind of a final connection for this new trunk line that we will build. Yeah, and we're funding that. We've been collecting impact fees to fund this project for many years, some rate-funded, most primarily impact fees. And we have a huge amount of money in the bank, but when this trunk line is built, it's going to support new development for decades to come. So we borrow some money to finish it, and then the impact fund will pay it back for the new development occur and uses it in the future.

Cool. You mentioned that it ends at Costco, but I shop at Costco. You mean it ends near Costco?

Yeah. Where we have to connect, where the existing trunk line is, is that PG&E substation next to Costco.

Right in the TV section of Costco, right there.

I just want to make sure because I buy fast food chicken from Costco.

You won't smell it. You won't notice it. That's it.

Joe, do you remember? No. Okay. Chris, excellent report. I have a couple questions related to projects that we're going to be able to recover some of the costs through rate payers or impact fees. I'm assuming like in the wastewater, the sewers, obviously we're all going to get a bump at some point. The lift stations?

Yes. For your rates, we have wastewater rates are currently going to be in effect for a couple more years, but I believe we've had some significant rates increases. And they will balance out after this term because we are getting through a huge amount of our capital projects. And after the next couple of years, we don't expect large rate increases going forward because we basically have a... You know, very old system. But over the last decade, we have spent a significant amount of money repairing it and upgrading lift stations. And we have put away money for this trunk line. So I think we're in good shape on the wastewater side. So you'll see some increases for the next couple of years. But after that, it should really level off.

Okay. And then the same question on the water. Yeah. It looks like we're going to spend quite a bit on the expansion of that. And then a follow-up question to that, it's probably not a CIP, but is the city considering being more strict on landscaping? Because we spend an enormous amount of water on lawns and non-drought tolerant land.

Yeah, we're actually kind of a leader in the county at that compared to other areas, although we're starting with average yard sizes that might be bigger than other places in the county. But we have a non-functional turf as part of our water waste ordinance. So non-functional turf is not allowed in new development except for... single family backyards or which would be considered functional or functional turf, which is turf people use to play sports on or do things on. So our current non-functional turf ordinance doesn't apply to a single family But existing uses, like for commercial that has non-functional turf, they're supposed to remove it. Now, we have not been hard enforcing that, but we have been significantly, through our environmental programs, getting reductions in that across the city. And you've seen it. You've seen like... The Vineyard Shopping Center, they converted a bunch of that turf that was working with the city. We are working with the Madrona Business Park right now to do some, hopefully some significant reductions there. So we've been gradually doing that. And if we get to a drought situation, then basically what happens is we enforce it and they can't water it and it dies. So what we're trying to do is get people to convert it using existing rebates on their own timeframes before that happens so that we can really have that use reduced in the future.

Okay. And then I hate to admit it, but I think I agree with both Liam and Steve on the sidewalk. I think the city should actually consider. That we should use the model of San Jose and recapture those costs. I think we need to do it or seriously consider it.

Gilroy does it, but the problem is they do the work and then they build the resident, but they really struggle to collect

They'll collect it eventually. And then I do have one comment for David. The asphalt condition report on the website is excellent. Steve and I have spent years looking at asphalt condition reports, and it's really well done.

And I just looked. It is updated. Nice job.

We value input from the community.

Joe has one more question. Maybe it's a clarification on the pavement status. We were low for many years, right? And it was getting down to where the threshold to the repair cost was going to accelerate.

Yeah, and we're still in that situation where we're struggling, but we have some good projects and fixed some major areas where we've been in the good. So we've been in the low 70s, which is pretty admirable, low to mid 70s. The highest was 75. We dropped down to 74. We're a little lower today. Some of that's because we didn't spend as much money in the last two years because we've been saving money for that big OBAG project and we'll have more money in the next couple of years. So we've been maintaining pretty well in that low 70s range, despite many of the reports telling us we were going to drop with the funding levels we had. And we at Morgan Hill, we take a lot of pride in how we do our pavement projects. Our city engineer is one of the things he pays the most attention to. And we don't use a lot of outside consultants. We design all our projects in-house. And we don't just follow the report. We look at... We go out there and we look at the treatment that's needed, and we think we save some money by doing it that way on what's expected because we don't ever waste a penny on doing something that doesn't need to be done, where if you just look at the report in the book, you could. So we try and do that. We try and experiment with treatment. So I think we get our bang for our buck, and that's what's kept us in that range for some good years.

So what I thought I heard you said, though, is we're really not – A little bit of a structural problem. We're not, we don't have enough money coming in from our revenue sources to really maintain that.

Right, right. I think that we haven't got to the point where, I mean, I'd like to see us into the low 80s, and then we start, and then we can stop looking at, like, we're sealing and maintaining versus rehabbing, which is grinding and overlaying the roads. So we're not to that point, but we're not where some of the cities are in the in the 50s or 60s that are just struggling where you see half the city streets look like they're falling apart.

Yeah. Because I know a former planning commissioner was pretty experienced at where that number he thought should be. Okay. So we do have a problem.

Yeah, absolutely.

Right. And it's about a million dollars?

Yeah, I mean, we'll have a new number when we complete the updated review or the pavement report after our survey this coming year, but that's where we were based on the previous report.

Okay.

If we had that million dollars additional, we could be looking to improve our PCI, our pavement condition index, a little bit.

Anything else, Joe? No, that's it. Okay, we've had a very patient resident, so we need to open the public comment.

We have Doug Muirhead.

Nice job. Good evening, Commissioners. My name is Doug Muirhead, Morgan Hill resident. I appreciate that one of my written comments made it to the commissioners to ask and get answers. The subject of interest to me, what are we doing in terms of library expansion? Now I have a little bit of detail, but I'll have to wait some years. I'm going to go out on a limb and say that the review by the Park and Run Commission of their portion of the CIP is not at all similar to what you've just done, because I don't recall any PB, David Ensign he or him, Actual discussion of consistency with the general plan, we talked about projects, but it's up to you folks to actually put that imprint of this is okay. PB, David Ensign he or him, I think it's kind of a big difference, but maybe that's just me. I don't understand this three or four years for FEMA flood maps notice a map revisions we built a farm worker housing project called Royal Oaks on Watsonville by the creek will actually the channel at that point. And it seems to me they got their map revision pretty shortly after that. The reason they don't flood is they built their apartments on Little Islands above where the floodwaters are, and that's going away with it. It's really fun to watch these caterpillars and other construction equipment moving dirt around. It's just right where I live. I just love seeing that. The other thing I wanted... HAB-Jacques Juilland, Take a little bit of issue with with the city and they're glowing PC is they have a very nice number. HAB-Jacques Juilland, At some time, I don't I don't know what's on the website, but we we used to have a map every couple of years, it was color coded that which all the streets and their ranges of PC eyes. HAB-Jacques Juilland, And the city likes to brag about its PCI and they maintain that high number I constantly replay the arterials. Now, that's, from a financial sense, that makes sense. But for me as a resident out on all those other streets, it's misleading. And then finally, something I said in my written comments, I really don't understand why we're doing an EIR and trying to do annexations when, as one of the commissioners said, we're struggling. both the budget mentioned that we'll have to, if we had to do parks, we'll have to reduce services on the other parks. It just doesn't make any sense to me. The timing is wrong. We can fight about whether we want to annex land or not. But anyway, I really enjoyed the questions. And of course, I always compliment Mr. Deoni on the job he does. Thank you. Yes.

Thank you. Is it any do you know do we have anybody online.

I don't see any other speakers.

Okay number close what comment.

I was going to make a motion to go ahead and say I was going to make a motion to recommend or fight make the findings that we first 2 years of the 6 years yet be consistent with the general plan you speak into the mind. I'm reading motion to. uh make the findings that the first two years of the cip and are consistent with the general plan and also for accepting the cip is that correct thank you second second second who is the seconder

It was a tie.

Yeah. Mr. Wilson.

So, can we.

May I take a couple more minutes of our time?

You may.

Thank you. I wanted to ask earlier when the projects indicate that there is a transfer or some kind of expenditure from the general fund. Is it possible to indicate. Roughly what that number might be either on a percentage basis, or is it a 1Million dollars or a 100,000 dollars. in the future reports. Oh, yeah. It's just a number. When I see that, I'm curious how much. Okay. OK, if that makes sense.

Yeah.

Yeah. I also on the sewer. I've heard that some of our builder remedy projects in the county that are coming to Morgan Hill or maybe coming to Morgan Hill, that those projects, even though when you can see online, they show onsite sewer. I'm told they're actually not going to do that because it's been a change. And so might that impact our sewer? And are we ready for that?

Um, so any time that a project comes online that. Even whether it's outside the city or limits, well, we don't have those, but if they did, or they're inside the city limits, but they've changed like the density of housing based on, uh. State law that allows them to build more dense housing or something with a higher sewer level where they're maybe building more units and we're projected in the general plan. They have to do an individualized, uh. wastewater and water capacity study and tell us exactly how it's going to impact us and then we have to basically add that to our models for the overall models for our system and see what it does so we're looking at them that way um yeah so that would be the same approach that would have to happen with the builders uh remedy projects for them to um connect and obviously there's a lot more that goes into it than that but right on the capacity side okay um

Is the sports complex something that truly serves Morgan Hill or is it like serving our entire county? Because, I mean, it's one of the largest in our county, right?

It's an excellent question. And if I could have three minutes to tell a story or even two minutes. So when I started here, the sports center was, the land was owned by the city, but it was operated by CYSA, the soccer organization for Northern California. And there were no city kids on that field unless you were playing in a tournament on the weekend. So the city, when we kind of took back the site from them and constructed the artificial turf fields, we said that needs to change. And through all of our agreements going forward, what we've done is it's really about cost recovery and community access. Now cost recovery from the sports center, and it goes into Mr. Muirhead's comments about expanding those facilities. They drive tourism here. It's one of our biggest tourism drivers is the tournaments, but they're only doing those tournaments about half the weekends out of the year. The other half are available for local residents and primarily all the weekdays are used by local residents. Now we don't have a lot of city park fields. So when you go there on Saturday, Monday through Friday, you'll see a bunch of people out there and that is primarily Morgan Hill residents. And you'll see the lights out there with the Morgan Hill Raiders and Orchard Valley Soccer and our high school teams that don't have enough space to practice at the high schools because they don't have enough space for all their teams at once. So it really is local weekdays and some weekends and then regional on weekends, which helps us, which helps the site operator cost recovery.

Okay, thank you. And then lastly, just something you might be able to point me towards or maybe other members of the public reading the report. In the community engagement piece on the page two or whatever it is, it mentions workshops and outreach events are scheduled. I don't see them, but maybe I'm looking in the wrong place.

For specifically for the CIP?

Yeah.

It was, and that might be a typo, it was for our budget workshops in general. Okay.

And that that's what we've had with that same operating budget workshops. You're right.

Yeah. So, it says their schedules only budget workshops and I don't hit on this typically hit on the a little bit of those workshops in the city manager's presentation, but not detailed like we did tonight. Right. Okay. Thank you.

Any other discussion. I don't know Jennifer Jennifer.

Could I ask for one point? So I did hear from multiple commission members that you wanted us to mention the capturing costs on sidewalks. I'd be happy to bring that forward along with your recommendation if that's consensus of the commission.

Yeah, I mean, I don't know when you report this out, do you give a summary of how this meeting went in terms of the general consensus? No. And maybe the general maintenance of annexing land and building stuff, where is that funding? If you could express at least, that was our concern, not that there's much they could do about it maybe, but.

Yeah, I will absolutely do that. And I think in Parks and Rec, and then sometimes it passed in the Planning Commission, you guys have included those sort of things with your motion, but you don't have to, as long as I know there's consensus, I'll make sure that it gets into the updates to the council.

Yeah, let's mention sidewalk. Do you have something?

Yeah, just on the resolution, so looking at the resolution that. Look at the resolution that we are. Going through, it does mention that the proposed capital improvement program is found to be exempt from and. I was, I know we're some of the components of it requires the, um, and so. How do we make that finding? Is that finding for the program itself, not necessarily the projects within them?

Yes, because this is a budget administrative action. So typically it will be exempt from CEQA, but the projects themselves are not exempt. And some of them are in various phases of environmental review. Pretty much all of them are not exempt. All of them have to go through the individual review or as... components of a master plan, those sort of things.

Okay. I think if you look at this guideline you cited, that's because that basically says why it's exempt, which is because it's administrator or whatever.

If you feel like Googling that. Got it. Thank you. Appreciate the clarification.

Any other questions or comments? Do we remember the motion? Yes, we do. Okay. Let's do a vote.

All in favor? Hi, nice motion passes unanimously.

Thank you, Joe. Thank you.

Director of support, I'll turn it over to Jennifer. I.

Go ahead. There we go.

Sorry to jump the gun on coming up here. I thought you were farther along than you were. Then you jumped to discussion, but that's okay. I wanted to announce that our planning division has done a reorg. And we've had a retirement and another planner leave for another city. And we took that opportunity to really rethink our structure. And as part of that, we have promoted Adam to planning manager. PB, Lupita D Montoya, New name pack is it still says principal planner. PB, Lupita D Montoya, you've also seen roshni sex in a hearing or two she's been promoted to associate planner. So we're currently advertising for our assistant and our development services technician, Elaine, retired for those who knew her. We also created a senior planner position in our long range division, and we're going to be recruiting for that as well. So if you know anyone out there who's interested, All of our new planner positions, they're directly supervised by Adam. So it gives him a great opportunity to jump in and now he will live on the dais, except when he's not here, then I won't take his place. Also wanted to announce that we did get our new population estimate from the state. We're at 47,074. For 2026, which we're still right under where we should be if it was a linear progression and we also got the head numbers for our income. We haven't gotten the broken down version yet from the state and the county. But for the first time, our AMI in this area is over $200,000. It is at $205,200. And the circus mirror still exists. So which makes our low-income folks really moderate. That's just because of the Silicon Valley salaries bumping up the overall AMI. I'll turn it back over to Adam for any other announcements.

Thank you. So I have a couple other announcements. There has been other changes. So if you notice, we haven't had someone from our city attorney present in the past couple of meetings. That's because, as you are aware, Don Larkin, our previous city attorney, is retired. He works for Burke Williams and he's been on call services. We have hired a the city has hired a new city attorney, Elisa Tolentino. And so our next meeting will have either Elisa, our new city attorney, or our assistant city attorney present during that meeting.

Do we have an assistant city attorney?

Yes. So we've had an assistant city attorney for a while. I'm not sure how long, but has it been a year?

I think she attended one meeting, Dorothy Moll.

Dorothy Moll, yeah.

She did? Yeah, I think she did. Actually, I think she did.

She was an anonymous. Oh, I thought she was like a consulting attorney or something, but she's an actual employee. Correct. Okay. Okay.

So other than that, I also want to announce that this Saturday is our Open Streets event. For Morgan Hill, that's going to be on Saturday, May 16th from 9 a.m. to 1 p.m. at the CCC. So there's going to be a bike rodeo, bike courses in the parking lot at the CCC. There's going to be some bike safety and reliability bike repairs. There's going to be a bunch of kids activities as well. And also on Saturday, there's going to be a budget workshop, a town hall meeting also on May 16th at 10am. It's going to be also at the CCC at the Poppy Jasper room, if anyone's interested in attending that. And also last week we had the city council meeting 1 item that was on there was the people's people squares. Residential project is about a 23 or 24 units. Residential unit project, where there is a concession request that was on consent to have a concession to not underground overhead utilities. So that was approved. And then finally, as I mentioned, for our next planning commission needed is. going to be on May 26 and we will be having a public hearing item for that for 100% affordable housing project called AMG on Monterey Road right next to the adult school.

The interesting thing about Pables is it was a post-entitlement concession. And so the process allows projects to ask for concessions or waivers anywhere in the process, even if they're in building permit. It's a really strange aspect of density bonus. And we are also tracking changes to density bonus law that are currently working through the legislature where they may actually increase the number of concessions that would be available from five to seven. That would be for 100% affordable. They're doing a lot of tweaking of density bonus law. We'll keep you all informed what we hear.

And with that, I don't have any other announcements.

Anything else, Chance?

Nope.

Thank you.