Morgan Hill City Council
March 2, 2022

Meeting Minutes
City Council
Rich Constantine - Mayor
Gino Borgioli - Mayor Pro Tem
John McKay - Council Member
Yvonne Martinez Beltran - Council Member
Rene Spring - Council Member
Wednesday, February 16, 2022 5:30 PM
Virtual Meeting
Link to join the meeting can be found below

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

SPECIAL MEETING
5:30 p.m. Workshop

CALL TO ORDER
Mayor Constantine called the meeting to order at 5:30 p.m.

ROLL CALL ATTENDANCE
City Clerk Michelle Bigelow called the roll.

PRESENT Rich Constantine, Rene Spring, Gino Borgioli, John McKay, Yvonne Martinez Beltran
ABSENT None

DECLARATION OF POSTING AGENDA

February 16, 2022
2 Per Government Code Section 54954.2- City Clerk Michelle Bigelow declared the posting of the agenda.

WORKSHOP

1. CITY COUNCIL REDISTRICTING WORKSHOP
Recommendation:

1. Review and discuss draft maps; and

2. Provide direction to staff on which maps and/or changes to bring forward at the March 2, 2022, public hearing for review and adoption.

City Clerk Michelle Bigelow and Dr. Justin Levitt of National Demographics Corporation provided the report and presentation.

Public comment opened at 5:54 p.m. The following people were called to speak:

Armando Benavides
Kathy Napoli
Roberto Aguirrez
Doug Muirhead
Yolanda
Delia Gomez
Joe Baranowski
Patricia Darling
Sally Casas
There being no further requests to speak, public comment closed.

Council directed staff to bring maps 103, 104, 106, 108, and NDC green to the next City Council meeting for review and discussion.

The meeting recessed at 7:09 p.m. and reconvened at 7:15 p.m.

REGULAR MEETING
7:00 p.m.

The regular meeting convened at 7:15 p.m.

CITY COUNCIL REPORTS
Council Member McKay spoke about his outside community engagements. He attended the South County Youth Task Force meeting. It was focused on the Youth Diversion Program. He said that it is a really good program that involves the communities of Gilroy, Morgan Hill, and the County working to make sure our youth

February 16, 2022
3 have a chance to redirect from some bad habits and a bad future. He is also on the City/School Liaison Committee. Last week's meeting was focused on how we are going to unite and try to make sure that we are treated fairly with Reid Hillview airport closing in San Jose and the redirection of traffic through Morgan Hill over our schools and City.

They also talk continuously about how we are all handling the COVID pandemic as far as testing and students back in person. He said that at the South County Regional Wastewater Authority (SCRWA) meeting Council Member Spring was elected as Chair and now represents us in the Chair position. They have reports on the expansion of the sewage treatment plant and we discussed the budget which they are doing quite well with. They had a Joint Water resource committee meeting and a report on a Technical working group where the Cities of Gilroy and Morgan Hill work together with the Valley Water District to make sure that we are getting the best out of our water usage. He is also on the League of California Cities Board of Directors Pennisula Divisionring the meeting they established this year's goals which are very much in line with our local community. Those are to increase the supply of affordable housing and increase the local control to get there, increase funding to help prevent homelessness, improve preparedness and resiliency for climate change, and start to work on tax increment tools, which means they may get some additional funding in the way of tax increment.

CITY MANAGER'S REPORT
City Manager Christina Turner shared that on January 28 and 29, 2022, the City Council held its annual Goal Setting Workshop virtually via Zoom. The City Council reaffirmed the current vision, ongoing priorities, and strategic priorities with a few amendments. The Council updated one of the ongoing priorities to “Maintaining and enhancing infrastructure”. During the workshop, the Council also spent time reviewing, discussing, validating, and committing to the City Council Norms, Policies, Procedures, and Protocols. The Council also received updates on the budget, significant development projects, and discussed topics on the horizon.

CITY ATTORNEY'S REPORT
None.

OTHER REPORTS
None.

RECOGNITIONS

PROCLAMATIONS
Proclaiming the month of February 2022 as Black History Month.

PRESENTATIONS
YAC Presentation
Developmental Asset #26 - Caring

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. (See additional noticing at the end of this agenda) Public comment opened at 7:36 p.m.

Jose DeCastro was called to speak.

There being no further requests to speak, public comment closed.

ADOPTION OF AGENDA
MOTION:

Adopting the agenda as posted.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Mayor Pro Tem Borgioli
AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member McKay, Council Member Martinez NAYS: Beltran None
ABSTAIN: None
ABSENT: None

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

Time Estimate for Consent Calendar: 1 - 10 Minutes
Public comment opened at 7:43 p.m.

Joe Baranowski was called to speak.

There being no further requests to speak, public comment closed.

MOTION:

Approving consent calendar items 2 through 6.

February 16, 2022
4 Page 404 of 558
February 16, 2022
5 RESULT: Passed
MOVER: Mayor Pro Tem Borgioli
SECONDER: Council Member McKay
AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member McKay, Council Member Martinez NAYS: None Beltran
ABSTAIN: None
ABSENT: None

2. RECEIVE ANNUAL REPORT ON 2021 CITY ENGINEER ACCEPTANCES OF

PUBLIC IMPROVEMENTS COMPLETED BY PRIVATE DEVELOPMENT

PROJECTS
Recommendation:

Accept and file Annual Report on 2021 City Engineer acceptances of public improvements completed by private development projects.

3. APPROVE CITY OF MORGAN HILL'S EMERGENCY OPERATIONS PLAN UPDATE 2022
Recommendation:

Authorize the approval, distribution, and use of the updated Emergency Operations Plan.

4. APPROVE GOVERNMENT CODE 65915 DENSITY BONUS CONCESSION FOR A MARKET RATE HOUSING DEVELOPMENT PROJECT (SR2021-
0014/SD2021-0004/EA2021-0012 MONTEREY-KERLEY (DENOVA HOMES)) Recommendation:

Adopt resolution approving the request for the following density bonus concession, pursuant to Government Code: Increase in floor area ratio.

5. APPROVE THE DECEMBER 1, 2021, DECEMBER 15, 2021, AND JANUARY 19, 2022 CITY COUNCIL MEETING MINUTES
Recommendation:

Approve the December 1, 2021, December 15, 2021, and January 19, 2022 City Council Meeting Minutes.

6. ADOPT RESOLUTION DETERMINING THAT CONDUCTION OF IN-PERSON

MEETINGS WOULD PRESENT A PUBLIC HEALTH RISK AND CONTINUING

TELECONFERENCE MEETINGS

February 16, 2022
6 Recommendation:

Adopt resolution to continue holding City Council and commission meetings by teleconference.

PUBLIC HEARINGS

7. ADOPT RESOLUTION APPROVING COMMENCEMENT OF 2022

HAZARDOUS VEGETATION ABATEMENT PROGRAM
Recommendation:

1. Open/Close public hearing; and

2. Adopt resolution authorizing Santa Clara County to commence hazardous vegetation abatement activities on the attached list.

Program Administrator Anthony Eulo provided the report.

The public hearing opened at 7:56 p.m. There being no request to speak, the public hearing closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Council Member Martinez Beltran
AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member McKay, Council Member
Martinez Beltran
NAYS: None
ABSTAIN: None
ABSENT: None

8. CONDUCT TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA)

HEARING APPROVING ISSUANCE OF BONDS FOR ROYAL OAK VILLAGE APARTMENTS AT 15440 MONTEREY ROAD WITHIN THE CITY OF MORGAN HILL
Recommendation:

1. Open/close public hearing consistent with the requirements of the Federal

February 16, 2022
7 Tax and Equity Fiscal Responsibility Act ("TEFRA") and Section 147 (f) of the Internal Revenue Code of 1986, as amended (the “Code”); and

2. Adopt resolution approving the issuance of bonds by the California Statewide Communities Development Authority (CSCDA), for the acquisition, construction, improvement and equipping of a multifamily rental housing facility known as Royal Oak Village, located at 15440 Monterey Road (the “Project”).

Housing Director Rebecca Garcia provided the report and presentation.

The public hearing opened at 8:03 p.m. There being no request to speak, the public hearing closed.

MOTION:

Approving the recommended action.

RESULT: Passed
MOVER: Council Member Spring
SECONDER: Council Member Martinez Beltran
AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member McKay, Council Member
Martinez Beltran
NAYS: None
ABSTAIN: None
ABSENT: None

9. APPROVE EDEN HOUSING'S (EHI) REQUEST TO WAIVE THE 2020

ANNUAL SURPLUS PAYMENT FOR VILLA CIOLINO AFFORDABLE

APARTMENTS TO MAKE NECESSARY REPAIRS
Recommendation:

Authorize the approval of a waiver for the receipt of the 2020 annual payment from Villa Ciolino's surplus cash in the amount of $44,777 due to the City to support the property's more immediate urgent rehabilitation needs.

Housing Director Rebecca Garcia provided the report.

Public comment opened at 8:07 p.m. There being no requests to speak, public comment closed.

MOTION:

Approve the recommended action.

RESULT: Passed
MOVER: Mayor Pro Tem Borgioli
SECONDER: Council Member McKay

February 16, 2022
8 AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member McKay, Council Member
Martinez Beltran
NAYS: None
ABSTAIN: None
ABSENT: None

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

Mayor Pro Tem Borgioli requested a noise ordinance in Downtown Morgan Hill.

Council Member McKay requested an update regarding noise in the parking garage.

ADJOURNMENT
There being no further business, Mayor Constantine adjourned the meeting at 8:12 p.m.

Minutes Prepared by:

Michelle Bigelow, City Clerk

13 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
MONTHLY BUDGET UPDATE AND JANUARY 2022 FINANCIAL AND

INVESTMENT REPORTS

RECOMMENDATION(S)
Accept and file report.

Estimated Time: 10 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2020-2021 Strategic Priorities
Community Engagement and Messaging
REPORT NARRATIVE:

As part of the City Council’s expectation to maintain a high level of transparency and to be responsible stewards of public funds, staff is providing this monthly budget update, along with the January 2022 financial and investment reports.

January 2022 Financial Report
The Revenue and Expense Summary through the month of January 2022 is included on the page 4 of the monthly financial report. Overall, General Fund revenues total $22.0 million or about 43% of the budget. Expenditures, including encumbrances, amounted to $28.8 million or 57% of the budget.

Budget Update
There has been no material change to the City’s revenue since the last budget update to the Council on January 29, 2022. As previously shared with the Council and the community, Recreation Services revenues continue trending below budget. The indoor mask mandate which serves as an important tool to prevent the spread of coronavirus, regardless of vaccination status, is having a negative impact to the membership drive.

13 In addition, facility rental revenue for the year is expected to be minimal compared to prior years. However, staff is hopeful that the net impact won’t be significant as staff expects to further implement cost containment strategies to offset the reduction in revenue.

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.

Beginning in FY 2020-21, budget reports are presented to the Council monthly.

FISCAL AND RESOURCE IMPACT:

The preparation of the report is a part of the Finance workplan. Staff does not recommend any budget adjustments at this time.

CEQA (California Environmental Quality Act):

Not a Project.

This report is not a project, as defined in Section 15378 of the State CEQA Guidelines.

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

FINANCE DIVISION

CITY OF MORGAN HILL
January 31, 2022 - 58% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED JANUARY 2022 – 58% OF YEAR COMPLETE  General Fund – Revenues through January totaled $22.0 million, or about 43% of the budgeted revenues. With respect to the property tax revenue forecast, on August 20, 2021, the ControllerTreasurer’s Department of the County of Santa Clara notified the cities and agencies within the County that the State of California Controller’s Office agreed with the County’s methodology of calculating excess Educational Revenue Augmentation Fund (ERAF), therefore, set aside provision is no longer required. The City of Morgan Hill is expecting to receive an additional $650,000 in excess ERAF for FY2021-22. However, the County cautioned cities and agencies in planning and budgeting this source of revenue as future legislation could impact the calculation methodology. The increase in excess ERAF distribution is mainly due to the growth of property tax outpacing the growth of school funding requirement and this revenue stream is becoming a large revenue category for the City in recent years.

Morgan Hill begun to receive excess ERAF distribution in FY2013-14 in the amount of $13,000 and it has grown to about $1.9 million in FY2020-21.

As for sales tax, the latest projection from our sales tax revenue consultant estimated this year’s revenue, before sales tax rebates, to be about $12.0 million versus about $11.0 million budgeted.

Pandemic based economic recovery contributed significantly to this upside forecast as well as the addition of a car dealership. One of the industries hit hardest across the state during the pandemic was the restaurants group which has experienced a strong rebound.

The chart below shows historical General Fund revenues by major revenue category from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of January 31, 2022.

$11.4 $12.8 $14.5 $16.0 $15.8
$7.4
$10.7 $10.7 $9.7 $11.0 $11.1
$5.0
$4.9 $5.1 $4.6 $4.4 $4.6
$2.3
$9.3 $9.9 $8.3 $5.7 $8.2
$4.4
$5.4 $4.9 $3.6
$9.7
$11.2
$3.0
0 10
20 30
40 50
60 FY17‐18 FY18‐19 FY19‐20 FY20‐21 Budget
FY21‐22
YTD
FY21‐22
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED JANUARY 2022 – 58% OF YEAR COMPLETE General Fund expenditures and encumbrances as of January 31, 2022 totaled $28.8 million, of which approximately $1.8 million is attributable to outstanding encumbrances.  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, shows a negative impact to the General Fund of approximately $1.7 million as of January 31, 2022. The large budgeted operating loss for recreation operations reflects the restrictions and limited opening of recreation facilities since March 2020 due to the shelter-in-place order as a result of the coronavirus pandemic and the continued indoor mask mandate which is having a negative impact to the membership drive.

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 Community Development, 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 Federal government’s 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 represent best practice for nongrant funded City operations like utilities and information services.  Development Services Fund – Revenues through January totaled $2.6 million. Expenditures, including encumbrances, totaled $3.3 million. The fund is budgeted at a higher revenue at $5.3 million compared to recent years’ actuals primarily due to the higher fees anticipated from the completion of the updated fee study.
 Debt Service Funds – Expenditures through January totaled $0.5 million. The debt service for the first half of the year includes both interest and principal, while the second half of the year will include interest only. Debt service payments were all scheduled when the bonds were issued, and are budgeted for in the months delineated 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.
($2.5)
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY12‐13 FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 FY18‐19 FY19‐20 FY20‐21 FY21‐22 Budget
Millions (S)
Historical Net GF Impact

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2021-22
FOR THE MONTH ENDED JANUARY 2022 – 58% OF YEAR COMPLETE  Wastewater Operations – Revenues from Sewer Operations through January totaled $7.4 million.

Expenditures and outstanding encumbrances totaled $7.6 million or 54% of the budget. The table below shows historical Sewer Operations revenues and expenditures from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of January 31, 2022.
(amount in millions) FY17‐18 FY18‐19 FY19‐20 FY20‐21
Budget
FY21‐22
YTD
FY21‐22
Revenues 10.3               11.4             11.9             13.3               14.1               7.4 Expenditures 10.8               11.4             12.3             13.3               14.0               7.6 Operating Margin (0.5)                ‐               (0.4)              ‐                 0.1                             (0.2) Operating Margin
without Encumbrances               (0.3)                 (0.1) 0.4                                 ‐                0.1 0.0  Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues from Water Operations through January totaled $8.3 million. Water Operations expenditures, including outstanding encumbrances, totaled $9.2 million through January. The table below shows Water Operations revenues and expenditures from FY17-18 through FY20-21 Actual, FY21-22 Budget, and YTD as of January 31, 2022.
(amount in millions) FY17‐18 FY18‐19 FY19‐20 FY20‐21
Budget
FY21‐22
YTD
FY21‐22
Revenues 13.0               14.2             15.3             16.5             16.3                               8.3 Expenditures              12.1            14.3            16.4 16.5             16.4                               9.2 Operating Margin                 (0.1) 0.9                          (1.1)                ‐                (0.1)                (0.9) Operating Margin
without Encumbrances                1.4                 (0.1) 0.8                                ‐                (0.1)                   0.0  Investments – Four securities were purchased. Total interest earnings received on investments were $43,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 22,030,613 $ 43% $ 28,785,477 57%
Development Services 2,620,633 50% 3,292,587 59%
RDA Successor Agency 6,246,678 88% 490,200 7%
Housing Successor Agency 284,662 132% 802,877 80%
Sewer Operations 7,380,535 52% 7,560,100 54%
Sewer Other 4,840,677 40% 7,344,808 16%
Water Operations 8,251,245 51% 9,182,182 56%
Water Other 3,390,498 48% 1,348,355 14%
Other Special Revenues * 2,470,094 46% 2,549,083 42%
Capital Projects & Streets 18,360,779 81% 33,757,397 50% Debt Service 402,544 58% 546,437 79%
Internal Service 5,946,421 46% 7,223,504 54%
TOTAL FOR ALL FUNDS 82,225,379 $ 53% $ 102,883,009 44%
* Includes all Special Revenue Funds except Community Development, Street Funds, and RDA and Housing Successor Agencies.

REVENUES EXPENSES
0% 20% 40% 60% 80% 100% 120% 140%
General
Development Services
RDA Successor Agency
Housing Successor Agency
Sewer Operations
Sewer Other
Water Operations
Water Other
Other Special Revenues *
Capital Projects & Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
January 31, 2022 - 58% of Year Complete
Revenues to Budget Expenses to Budget
58%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 15,771,000 $ 7,372,660 $ 47% 7,392,312 $ 0% Sales Tax 11,098,601 5,025,846 45% 3,532,485 42%
Franchise Tax 2,375,000 971,018 41% 898,869 8%
Hotel Tax 2,235,300 1,310,992 59% 736,955 78%
Licenses 198,825 167,142 84% 135,452 23%
Other Agencies 653,658 242,263 37% 239,700 1%
Service Charges 8,164,851 4,358,318 53% 3,004,549 45%
Interest/Other 7,230,495 873,932 12% 905,853 -4%
Transfers In 3,093,579 1,708,442 55% 1,522,153 12%
TOTAL REVENUES 50,821,309 $ 22,030,613 $ 43% 18,368,328 $ 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Licenses
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
January 31, 2022 - 58% of Year Complete
58%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 5,913,826 $ 2,906,392 49% 2, $ 592,745 12% Community Services 13,952,469 7,717,042 55% 6, 935,861 11% Police 19,133,242 10,672,459 56% 9, 755,081 9%
Fire 7,788,401 4,443,458 57% 4, 079,515 9%
Transfers Out 4,083,681 3,046,125 75% 333,179 814%
TOTAL EXPENDITURES $ 50,871,618 $ 28,785,477 57% 23, $ 696,381 21% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
January 31, 2022 - 58% of Year Complete
58%

City of Morgan Hill
Recreation Report - Fiscal Year 2021-22
For the Month and Seven Months Ended January 31, 2022
58% of Year Complete
% of
Budget January 2022 YTD Budget
Revenues
Membership Services & Rec Programs 4,713,801 $ 307,035 $ 2,400,054 $ Facility Rentals 506,683 51,072 312,322
Community Services 79,000 508 98,830
Transfers in 75,000 6,250 43,750
Total Revenues 5,374,484 $ 364,865 $ 2,854,957 $ 53%
Less: Expenditures
Membership & Program Services 5,648,211 $ 294,346 $ 2,877,255 $ Facility Rentals 1,313,549 41,007 307,660
Community Services 641,554 52,378 288,050
Total Expenditures 7,603,315 $ 387,730 $ 3,472,965 $ 46% Net Impact without encumbrances (2,228,831) $ (22,866) $ (618,008) $ Encumbrances - - 1,068,465
Net Impact with encumbrances (2,228,831) $ (22,866) $ (1,686,474) $

The chart below shows cash balances by fund type reconciled to City's financial system:

City of Morgan Hill
Monthly Investment Report - January 31, 2022
The following are the snapshots of City's investment portfolio as of January 31, 2022. The first chart shows the portfolio composition by investment type:
$176,699,898
General Fund,
$21,700,809
Community
Development,
$679,364
RDA Successor
Agency (except
Housing), $6,264,903
Housing Successor
Agency/ CDBG,
$4,421,788
Water - Operations,
$2,891,436
Water Other,
$17,739,918
Sewer - Operations,
$2,583,406
Sewer Other,
$55,321,596
Other Special
Revenue, $8,109,738
Streets and Capital
Projects (except RDA),
$34,098,816
Debt Service ,
$193,398
Internal Service,
$19,889,617
Agency Funds
(assessment
dists./refundable
deposits), $2,805,108
Cash Balances by Fund Type
LAIF - $67.8M
38%
Treasury Note - $6.4M
4%
Money Market-
$.02M
<1%
Federal Agency
Issues- $89.1M
50%
Certificate of
Deposits- $0.5M
<1%
Bond Reserves/Trust-
$11.5M
7%
Cash & Other
Deposits - $1.4M
1%
Investment Portfolio Composition - $176.7 Million
LAIF - $67.8M
Treasury Note - $6.4M
Money Market- $.02M
Federal Agency Issues-
$89.1M
Certificate of Deposits-
$0.5M
Bond Reserves/Trust-
$11.5M
Cash & Other Deposits -
$1.4M

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%
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Yield Portfolio vs. Benchmarks
LAIF City 2 Yr US-Treasury

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%
0 100
200
300
400
500
600
700
800
900
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield

City of Morgan Hill
Investment Portfolio Detail
As of January 31, 2022
Investment Settlement Book % of Market YTM Next Call Date of Type Date Value Portfolio Value at Cost Date Maturity
L A I F $ 67,800,048 38.37% $ 67,626,420 0.23%
City Managed
Treasury Note 4/30/2018 4,440,242 3.28% 4,532,535 2.73% 3/31/2023 3/31/2023 Treasury Note 10/8/2021 1,988,437 1.25% 1,934,760 0.88% 9/30/2026 9/30/2026 Treasury Note 1/4/2022 1,999,173 1.25% 1,984,380 0.77% 12/31/2023 12/31/2023 Treasury Note 1/19/2022 1,989,862 1.25% 1,984,380 1.02% 12/31/2023 12/31/2023 FFCB Bond 4/8/2020 2,000,000 1.13% 1,985,000 0.88% 4/8/2022 4/8/2024 FFCB Bond 5/27/2020 2,000,000 1.13% 1,945,640 0.73% 5/27/2022 5/27/2025 FHLMC Bond 6/3/2020 2,000,000 1.13% 1,956,020 0.60% 6/3/2022 12/3/2024 FHLMC Bond 10/20/2020 2,000,000 1.13% 1,934,780 0.60% 4/20/2022 10/20/2025 FHLMC Bond 10/27/2020 2,000,000 1.13% 1,936,900 0.63% 4/27/2022 10/27/2025 FHLMC Bond 11/2/2020 2,000,000 1.13% 1,971,080 0.32% 5/2/2022 11/2/2023 FFCB Bond 11/3/2020 2,000,000 1.13% 1,926,460 0.54% 5/3/2022 11/3/2025 FNMA Bond 11/18/2020 2,000,000 1.13% 1,938,700 0.65% 5/18/2022 11/18/2025 FHLMC Bond 11/24/2020 2,000,000 1.13% 1,931,600 0.64% 5/24/2022 11/24/2025 FFCB Bond 11/24/2020 1,000,000 0.57% 963,990 0.60% 5/24/2022 11/24/2025 FHLMC Bond 11/25/2020 3,000,000 1.70% 2,916,150 0.63% 5/25/2022 11/25/2025 FHLMC Bond 11/30/2020 2,000,000 1.13% 1,944,960 0.65% 5/26/2022 11/26/2025 FFCB Bond 12/22/2020 2,000,000 1.13% 1,916,720 0.47% 6/22/2022 12/22/2025 FHLB Bond 1/22/2021 2,000,000 1.13% 1,939,500 0.63% 7/22/2022 1/22/2026 FNMA Bond 1/28/2021 2,000,000 1.13% 1,933,920 0.55% 7/28/2022 1/28/2026 FHLB Bond 1/28/2021 2,000,000 1.13% 1,940,760 0.65% 7/28/2022 1/28/2026 FHLB Bond 2/24/2021 2,000,000 1.13% 1,928,540 0.75% 2/24/2022 2/24/2026 FHLB Bond 2/25/2021 2,000,000 1.13% 1,939,720 0.66% 2/25/2022 2/25/2026 FHLB Bond 2/26/2021 2,000,000 1.13% 1,924,500 0.65% 2/26/2022 2/26/2026 FHLB Bond 3/10/2021 2,000,000 1.13% 1,948,220 0.85% 3/10/2022 3/10/2026 FHLB Bond 3/16/2021 2,000,000 1.13% 1,941,280 0.70% 3/16/2022 3/16/2026 FHLB Bond 3/16/2021 2,000,000 1.13% 1,944,500 0.80% 3/16/2022 3/16/2026 FHLB Bond 6/9/2021 2,000,000 1.13% 1,963,520 1.08% 6/9/2022 6/9/2026 FHLB Bond 6/30/2021 2,000,000 1.13% 1,955,480 1.00% 6/30/2022 6/30/2026 FHLB Bond 7/15/2021 3,000,000 1.70% 2,944,200 1.13% 7/15/2022 7/15/2026 FHLB Bond 7/15/2021 2,000,000 1.13% 1,965,000 0.85% 7/15/2022 7/15/2025 FHLB Bond 8/26/2021 2,000,000 1.13% 1,946,400 0.80% 2/26/2022 8/26/2026 FHLB Bond 8/26/2021 3,000,000 1.70% 2,936,760 1.00% 2/26/2022 8/26/2026 FHLB Bond 8/26/2021 2,000,000 1.13% 1,945,700 0.90% 2/26/2022 8/26/2026 FHLB Bond 9/13/2021 2,095,408 1.19% 2,022,020 0.82% 3/11/2022 9/11/2026 FFCB Bond 9/28/2021 1,984,136 1.12% 1,929,560 0.98% 3/10/2022 9/10/2026 FHLB Bond 9/29/2021 3,000,000 1.70% 2,929,920 1.13% 3/29/2022 9/29/2026 FHLB Bond 9/30/2021 2,000,000 1.13% 1,943,620 0.88% 3/30/2022 9/30/2026 FHLB Bond 9/30/2021 3,000,000 1.70% 2,931,000 1.05% 3/30/2022 9/30/2026 FHLB Bond 9/30/2021 3,000,000 1.70% 2,927,880 1.02% 3/30/2022 9/30/2026 FHLB Bond 10/19/2021 2,000,000 1.13% 1,944,980 1.00% 4/19/2022 10/19/2026 FHLB Bond 11/18/2021 2,000,000 1.13% 1,974,800 1.30% 5/18/2022 11/18/2026 FHLB Bond 12/29/2021 2,000,000 1.13% 1,986,060 0.75% 6/29/2022 12/29/2023 FHLB Bond 1/19/2022 2,000,000 1.13% 1,984,920 1.74% 7/19/2022 1/19/2027 FHLB Bond 1/25/2022 2,000,000 1.13% 1,994,840 1.51% 7/25/2022 7/25/2025 CD - Goldman Sachs Bank USA 5/13/2020 250,000 0.14% 250,265 0.50% 5/13/2022 5/13/2022 CD - American Nat'l Bank 5/20/2020 250,000 0.14% 250,205 0.40% 5/20/2022 5/20/2022 Sub Total/Average $ 95,997,258 55.45% $ 93,872,125 0.93% Money Market $ 23,144 0.01% $ 23,144 0.01%
Total City Managed/Average $ 163,820,450 93.83% $ 161,521,689 0.64% Bond Reserve Accounts - Held By Trustees $ 6,780,648 3.84% $ 6,780,648 Cash/Deposits $ 1,411,396 0.80% $ 1,411,396
PARS and CALPERS CERBT Trust $ 4,687,404 2.65% $ 5,811,342 GRAND TOTAL/AVERAGE $ 176,699,898 100% $ 175,525,075

CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF JANUARY 31, 2022
FOR THE FISCAL YEAR OF 2021-22
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 0.23% $ 51,294,165 29.03% $ 51,162,806 2015 Wastewater Rev Bonds - CIP Wastewater Fund 0.23% 16,505,883 9.34% 16,463,614 Federal Issues All Funds Pooled 0.87% 89,068,579 50.41% 88,839,120 US Treasury Notes All Funds Pooled 1.68% 6,428,679 3.64% 4,532,535 Certificate of Deposits All Funds Pooled 0.45% 500,000 0.28% 500,470 Dreyfus Treas Cash Management Acct All Funds Pooled 0.01% 23,144 0.01% 23,144 SUBTOTAL $ 163,820,450 92.71% $ 161,521,689
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 0.01% 3 0.00% 3
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 0.01% 4 0.00% 4
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Successor Fund 0.01% 6,262,932 3.54% 6,262,932 Zions Bank - MH Ranch 2015
Blackrock Liq Funds Fed Fund -DI -2015 Agency Fund 0.01% 255,218 0.14% 255,218 Zions Bank - Madrone Bus Park Taxable/ Tax Exempt 2015
Blackrock Liquidity Temp Fund-2015 Agency Fund 0.01% 262,492 0.15% 262,492 SUBTOTAL 6,780,648 3.84% 6,780,648
Other Cash/Deposits
General Checking All Funds 1,374,284 0.78% 1,374,284
Workers' Comp Administrators Workers' Comp 30,000 0.02% 30,000 Petty Cash & Emergency Cash General Fund 7,112 0.00% 7,112 CALPERS CERBT - OPEB Trust 3,487,404 1.97% 4,249,175
PARS - PENSION Trust 1,200,000 0.68% 1,562,168 **
SUBTOTAL 6,098,800 3.45% 7,222,738
Total Cash and Investments $ 176,699,898 100.00% $ 175,525,075 ** As of 12/31/21

CASH ACTIVITY SUMMARY
FY 2021-22
07/1/21 Change in 1/31/2022
Fund Type Balance Cash Balance Balance
General Fund $ 19,007,873 $ 2,692,935 $ 21,700,809
Community Development 1,077,499 (398,135) 679,364
RDA Successor Agency (except Housing) 508,427 5,756,475 6,264,903 Housing Successor Agency/ CDBG 4,307,419 114,369 4,421,788 Water - Operations 2,573,349 318,088 2,891,436
Water Other 15,405,786 2,334,132 17,739,918
Sewer - Operations 1,593,140 990,266 2,583,406
Sewer Other 57,221,072 (1,899,475) 55,321,596
Other Special Revenue 7,425,644 684,093 8,109,738
Streets and Capital Projects (except RDA) 37,931,830 (3,833,015) 34,098,816 Debt Service 337,123 (143,725) 193,398
Internal Service 19,378,242 511,375 19,889,617
Agency Funds (assessment dists./refundable deposits) 3,356,940 (551,832) 2,805,108 Total $ 170,124,346 $ 6,575,552 $ 176,699,898
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.

I certify the information on the investment reports on pages 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 Caitlin Jachimowicz, Treasurer

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Seven Months Ended January 31, 2022
58% 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 $ 13,485,000 13,485,000 $ 6,492,699 48% $ 6,036,360 $ 456,339 8% Property Tax - RPTTF Residual Distribution 2,144,000 2,144,000 808,731 38% 1,123,570 (314,839) -28% Property Tax - Supplemental Roll 142,000 142,000 71,230 50% 232,383 (161,152) -69% Sales Tax 10,699,601 10,699,601 4,834,237 45% 3,407,731 1,426,507 42% Public Safety Sales Tax 399,000 399,000 191,608 48% 124,755 66,854 54% Transient Occupancy Taxes 2,235,300 2,235,300 1,310,992 59% 736,955 574,037 78% Franchise (Refuse ,Cable ,PG&E) 2,375,000 2,375,000 971,018 41% 898,869 72,149 8% Property Transfer Tax 541,000 541,000 388,040 72% 346,656 41,384 12% TOTAL TAXES 32,020,901 32,020,901 15,068,556 47% 12,907,277 2,161,278 17%

LICENSES/PERMITS
Business License 159,135 159,135 163,512 103% 132,833 30,679 23% Other Permits 39,690 39,690 9% 2,619 3,630 1,011 39%
TOTAL LICENSES/PERMITS 198,825 198,825 167,142 84% 135,452 31,690 23%

FINES AND PENALTIES
Parking Enforcement 8,240 8,240 1,977 24% 1,868 109 6%
Bails & Fines 75,854 75,854 21,340 28% 21,406 (66) 0%
Administrative Citations 10,331 10,331 - n/a 12,703 (12,703) -100% TOTAL FINES AND PENALTIES 94,425 94,425 23,318 25% 35,977 (12,660) -35%

OTHER AGENCIES
Motor Vehicle in-Lieu 26,026 26,026 n/a - 6,286 (6,286) -100% Other Revenue - Other Agencies 437,794 653,658 242,263 37% 239,700 2,563 1% TOTAL OTHER AGENCIES 463,820 679,684 242,263 36% 245,986 (3,723) -2%

CHARGES CURRENT SERVICES
Police False Alarm Charge 31,340 31,340 16,879 54% 29,719 (12,840) -43% Business License Application Review 38,007 38,007 24,377 64% 25,903 (1,526) -6% Membership Services & Rec Programs 4,238,989 4,713,801 2,400,054 51% 1,554,929 845,126 54% Facility Rentals 945,931 506,683 312,322 62% 84,996 227,327 267% Community Services 126,449 79,000 98,830 125% 4,082 94,748 2321% General Administration Overhead 1,825,440 1,825,440 1,068,844 59% 1,038,842 30,002 3% Other Charges Current Services 970,580 970,580 45% 266,079 437,011 170,932 64% TOTAL CURRENT SERVICES 8,176,736 8,164,851 4,358,318 53% 3,004,549 1,353,768 45%

OTHER REVENUE
Use of money/property 823,436 823,436 301,834 37% 224,954 76,880 34% Other Revenues 5,961,472 5,745,608 3% 291,979 160,740 (131,239) -45% TOTAL OTHER REVENUE 6,784,908 6,569,044 462,574 7% 516,933 (54,359) -11%

TRANSFERS IN
One Time Transfer 180,000 180,000 61,250 34% 119,574 (58,324) -49% Public Safety Facilities Fund 25,000 25,000 58,324 233% 100,000 (41,676) -42% Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 58,000 42,000 72% Countywide Solid Waste 324,763 649,526 325,000 50% 325,000 - n/a Streets 699,735 699,735 324,267 46% 408,156 (83,889) -21% Park Maintenance 650,000 650,000 379,169 58% 379,169 n/a - Sewer Operations 357,159 357,159 208,341 58% 206,752 1,589 1% Water Operations 357,159 357,159 208,341 58% 206,752 1,589 1% Park Development 75,000 75,000 43,750 58% 43,750 n/a -
TOTAL TRANSFERS IN 2,768,816 3,093,579 1,708,442 55% 1,522,153 186,289 12% TOTAL GENERAL FUND 50,508,431 50,821,309 22,030,613 43% 18,368,328 3,662,285 20%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 699,735 699,735 319,937 46% 379,547 (59,610) -16% Interest / Other Revenue/Other Charges - - 394 n/a 775 (381) -49% 202 STREET MAINTENANCE 699,735 699,735 320,331 46% 380,322 (59,990) -16% FUND

REVENUE
SOURCE

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Seven Months Ended January 31, 2022
58% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
FUND

REVENUE
SOURCE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 858 858 589 69% 741 (151) -20%
Police Grant/SLEF/JAG 100,000 100,000 94,618 95% 90,060 4,558 5% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 100,858 100,858 95,207 94% 90,801 4,407 5% 206 DEVELOPMENT SERVICES
Building Fees 3,195,787 3,195,787 1,648,906 52% 1,341,007 307,899 23% Planning Fees 766,776 766,776 497,986 65% 740,848 (242,862) -33% Engineering Fees 999,810 999,810 361,430 36% 268,951 92,478 34% Other Revenue/Current Charges 330,747 330,747 34% 75,055 112,311 37,256 50% 206 DEVELOPMENT SERVICES 5,293,120 5,293,120 2,620,633 50% 2,425,862 194,771 8% 207 LONG RANGE PLANNING 869,266 869,266 406,411 47% 376,653 29,758 8% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 3,173 3,173 167 5% 278 (111) -40% 215 and 216 HCD BLOCK GRANT 3,173 3,173 167 5% 278 (111) -40% 225 ASSET SEIZURE 1,931 1,931 361 19% 611 (250) -41%
229 LIGHTING AND LANDSCAPE 2,573 2,573 104,867 4076% 104,175 692 1% 230 COMMUNITY FACILITIES DISTRICT 1,240 1,240 11,766 949% 20,282 (8,516) -42% 232 ENVIRONMENTAL PROGRAMS 481,008 481,008 307,233 64% 283,425 23,808 8% 234 MOBILE HOME PARK RENT STAB. 757 757 7,982 1054% 3,690 4,292 116% 235 SENIOR HOUSING 3,869 3,869 600 16% 1,000 (400) -40% 236 HOUSING MITIGATION 2,446,028 2,596,028 772,692 30% 1,289,159 (516,467) -40% 237 BEGIN - - 54,180 n/a 718 53,461 7445%
238 CAL HOMES - - 208 n/a 81,037 (80,829) -100%
240 EMPLOYEE ASSISTANCE 29,089 29,089 6,984 24% 8,683 (1,699) -20% 246 COUNTYWIDE SOLID WASTE 1,324,763 699,112 53% - 699,112 n/a 247 ENVIRONMENT REMEDIATION 2,448 2,448 1,225 50% 1,095 130 12% 250 COMH-SUCCESSOR AGENCY-MHRDA 7,100,496 7,100,496 6,246,678 88% 889,017 5,357,660 603% 255 HOUSING SUCCESSOR AGENCY 215,318 215,318 284,662 132% 298,696 (14,034) -5% 260 PUBLIC ART - - 1,100 n/a - 1,100 n/a
TOTAL SPECIAL REVENUE FUNDS 17,250,910 18,725,673 11,942,398 64% 6,255,503 5,686,895 91%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 1,748,480 7,131,498 5,934,606 83% 1,439,407 4,495,199 312% 302 PARK MAINTENANCE 360,613 360,613 458,182 127% 53,699 404,483 753% 303 LOCAL DRAINAGE 1,675,036 1,675,036 585,911 35% 787,472 (201,561) -26% 304 LOCAL DRAINAGE/NON AB1600 80,692 80,692 86,905 108% 6,947 79,958 1151% 306 AGRICULTURE & OPEN SPACE PRESERVATION 180,385 180,385 120,474 67% 123,468 (2,994) -2% 308 STREET CIP 4,050,523 4,050,523 3,110,049 77% 979,420 2,130,629 218% 309 TRAFFIC IMPACT 1,468,388 1,468,388 6,726,984 458% 853,873 5,873,112 688% 315 PUBLIC SAFETY FACILITIES IMPACT 864,417 864,417 148,515 17% 247,232 (98,718) -40% 346 PUBLIC FACILITIES NON-AB1600 611,488 911,488 35,760 4% 884,407 (848,647) -96% 347 PUBLIC FACILITIES IMPACT 265,536 265,536 35,706 13% 106,125 (70,419) -66% 348 LIBRARY 1,077,617 1,077,617 161,665 15% 455,779 (294,115) -65% 350 UNDERGROUNDING 86,073 86,073 403,828 469% 4,147 399,681 9637% 355 SCHOOL PEDESTRIAN/TRAFFIC SAFETY 591,967 591,967 29,720 5% 299,402 (269,682) -90% 360 COMMUNITY/REC IMPACT FUND 1,730,018 1,730,018 202,144 12% 695,714 (493,569) -71% 375 QUIMBY FEE 1,623,552 1,623,552 - n/a - - n/a
TOTAL CAPITAL PROJECTS FUNDS 16,414,785 22,097,803 18,040,448 82% 6,937,092 11,103,356 160%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 307,385 307,385 178,367 58% 181,102 (2,736) -2% 441 POLICE FACILITY BOND 385,639 385,639 224,177 58% 324,289 (100,112) -31% TOTAL DEBT SERVICE FUNDS 693,024 693,024 402,544 58% 505,391 (102,847) -20%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2021-22
For The Seven Months Ended January 31, 2022
58% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
FUND

REVENUE
SOURCE

ENTERPRISE FUNDS
640 SEWER OPERATION
Sewer Service Fees 13,812,501 13,812,501 7,176,755 52% 6,515,062 661,692 10% Interest Income/Transfers 37,425 37,425 5,723 15% 14,872 (9,149) -62% Other Revenue/Current Charges 268,241 268,241 198,057 74% 128,279 69,779 54% 640 SEWER OPERATION 14,118,167 14,118,167 7,380,535 52% 6,658,213 722,322 11% 641 SEWER EXPANSION
Interest Income 220,194 220,194 60,975 28% 97,141 (36,166) -37% Development Impact Fee 6,845,919 6,845,919 1,930,692 28% 2,245,100 (314,408) -14% 641 SEWER EXPANSION 7,066,113 7,066,113 1,991,667 28% 2,342,241 (350,573) -15% 642 SEWER RATE STABILIZATION 195,311 195,311 94,487 48% 11,482 83,005 723% 643 SEWER-CAPITAL PROJECT 4,707,648 4,707,648 2,754,522 59% 2,605,463 149,059 6% TOTAL SEWER FUNDS 26,087,239 26,087,239 12,221,212 47% 11,617,399 603,813 5% 650 WATER OPERATION
Water Sales 15,179,148 15,179,148 7,422,512 49% 8,064,148 (641,636) -8% Meter Install & Service 25,215 25,215 36,611 145% 52,054 (15,443) -30% Transfers-In / Interest Income 546,952 546,952 284,872 52% 270,508 14,364 5% Other Revenue/Current Charges 585,381 585,381 507,250 87% 478,277 28,973 6% 650 WATER OPERATION 16,336,696 16,336,696 8,251,245 51% 8,864,987 (613,742) -7% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 64,003 64,003 8,764 14% 13,862 (5,098) -37% Development Impact Fee 1,782,143 1,782,143 341,051 19% 783,540 (442,489) -56% 651 WATER EXPANSION 1 1,846,146 ,846,146 349,815 19% 797,402 (447,587) -56% 652 Water Rate Stabilization 141,222 141,222 81,093 57% 38,144 42,950 113% 653 Water Capital Project 5,047,350 5,047,350 2,959,590 59% 2,848,568 111,022 4% TOTAL WATER FUNDS 23,371,414 23,371,414 11,641,743 50% 12,549,100 (907,357) -7% TOTAL ENTERPRISE FUNDS 49,458,653 49,458,653 23,862,955 48% 24,166,499 (303,544) -1%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 1,952,577 2,247,577 1,312,657 58% 1,099,523 213,134 19% 740 BUILDING MAINTENANCE 3,409,334 3,409,334 659,621 19% 1,999,732 (1,340,111) -67% 741 BUILDING REPLACEMENT 745,508 755,508 410,063 54% 397,716 12,347 3% 745 CIP ADMINISTRATION 1,798,889 1,798,889 1,106,214 61% 801,451 304,763 38% 760 UNEMPLOYMENT INSURANCE 2,513 2,513 840 33% 58,750 (57,910) -99% 770 WORKERS COMPENSATION 913,504 913,504 444,608 49% 420,211 24,397 6% 790 EQUIPMENT REPLACEMENT 1,086,223 1,086,223 654,094 60% 782,053 (127,959) -16% 791EMPLOYEE BENEFITS 1,043,858 1,043,858 355,179 34% 349,443 5,736 2% 795 GENERAL LIABILITY INSURANCE 1,504,188 1,737,188 1,003,144 58% 503,857 499,287 99% TOTAL INTERNAL SERVICE FUNDS 12,456,594 12,994,594 5,946,421 46% 6,412,737 (466,316) -7% TOTAL FOR ALL FUNDS 146,782,397 $ 154,791,056 $ 82,225,379 $ 53% 62,645,550 $ 19,579,829 $ 31%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Seven Months Ended January 31, 2022
58% 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 42,092 $ 468,850 $ 224,067 $ 75,664 $ 299,731 $ 64% 175,763 $ CITY ATTORNEY 53,700 802,889 401,870 90,451 492,321 61% 376,100 CITY MANAGER 48,353 638,262 362,885 16,250 379,135 59% 289,030 HUMAN RESOURCES 61,430 830,904 404,758 - 404,758 49% 370,623

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 41,568 672,320 351,760 3,200 354,960 53% 327,844 Elections 2,037 28,180 13,941 - 13,941 49% 101,438
COUNCIL SVCS & RECORDS MGMT 43,605 700,500 365,700 3,200 368,900 53% 429,282 FINANCE 123,427 2,472,421 907,710 53,836 961,546 39% 815,934 TOTAL ADMINISTRATION 372,608 5,913,826 2,666,991 239,401 2,906,392 49% 2,456,733 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 294,346 5,648,211 2,877,255 985,539 3,862,794 68% 2,598,361 Recreation Facility Rentals 41,007 1,313,549 307,660 18,753 326,413 25% 555,339 Community Services 52,378 641,554 288,050 64,174 352,224 55% 249,332 Park Maintenance 70,495 1,179,250 598,513 48,121 646,633 55% 595,441 Environmental Services 15,879 349,129 120,516 2,240 122,756 35% 113,344 Countywide Solid Waste Program 16,312 303,550 95,925 95,925 - 32% Street Maintenance 172,883 2,662,248 1,235,007 130,038 1,365,046 51% 1,194,132 Downtown Maintenance 15,980 318,869 155,309 35,649 190,958 60% 125,285 Cable Television 2,737 34,272 19,173 - 19,173 56% 12,651 COMMUNITY SERVICES 682,017 12,450,632 5,697,408 1,284,513 6,981,921 56% 5,443,885 CODE COMPLIANCE 14,679 174,873 101,686 101,686 - 58% 91,119 INFRASTRUCTURE PLANNING & CONGESTION MGMT 356,583 25,000 172,923 - 172,923 48% 203,759 ECONOMIC DEVELOPMENT PROGRAMS 40,920 970,380 411,432 49,079 460,512 47% 362,212 TOTAL COMMUNITY SERVICES 762,616 13,952,469 6,383,450 1,333,592 7,717,042 55% 6,100,975 III. PUBLIC SAFETY
POLICE
PD Administration 137,351 1,421,383 981,936 32,921 1,014,857 71% 930,945 Field Operations 805,860 9,314,988 5,300,715 139,909 5,440,624 58% 4,655,201 Support Services 202,181 2,596,110 1,498,329 - 1,498,329 58% 1,284,845 Emergency Services/Haz Mat 15,139 202,072 111,419 - 111,419 55% 102,084 Special Operations 194,934 3,700,816 1,560,573 15,671 1,576,244 43% 1,692,855 Dispatch Services 149,029 1,897,873 1,030,987 - 1,030,987 54% 928,548 POLICE 1,504,494 19,133,242 10,483,958 188,502 10,672,459 56% 9,594,477 FIRE 702,407 7,788,401 4,441,733 1,725 4,443,458 57% 4,058,581 TOTAL PUBLIC SAFETY 2,206,900 26,921,643 14,925,691 190,227 15,115,918 56% 13,653,058 IV. TRANSFERS
Other 910,559 4,083,681 3,046,125 - 3,046,125 75% 333,179 TOTAL TRANSFERS 910,559 4,083,681 3,046,125 3,046,125 - 75% 333,179 TOTAL GENERAL FUND 4,252,683 50,871,618 27,022,256 1,763,220 28,785,477 57% 22,543,945

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Seven Months Ended January 31, 2022
58% 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 324,628 704,068 326,794 - 326,794 46% 410,620 205 PUBLIC SAFETY/SUPP.LAW 100,604 107,245 104,228 - 104,228 97% 104,123 206 DEVELOPMENT SERVICES FUND
Planning 162,761 1,956,314 1,161,783 27,668 1,189,451 61% 886,390 Building 176,358 2,233,914 1,230,970 1,726 1,232,696 55% 1,138,080 Engineering 121,168 1,366,129 863,597 6,843 870,440 64% 716,846 206 DEVELOPMENT SERVICES FUND 460,288 5,556,357 3,256,350 36,237 3,292,587 59% 2,741,315 207 LONG RANGE PLANNING 44,022 861,202 349,241 61,183 410,424 48% 583,031 215/216 CDBG 458 5,499 3,206 - 3,206 58% 3,129
225 ASSET SEIZURE - 54,232 14,232 14,232 - 26% -
229 LIGHTING AND LANDSCAPE 18,692 168,130 93,356 15,404 108,760 65% 101,918 230 COMMUNITY FACILITIES DISTRICT 3,172 42,093 15,236 15,236 - 36% 14,398 232 ENVIRONMENT PROGRAMS 35,042 508,715 231,632 4,123 235,755 46% 225,988 234 MOBILE HOME PARK 37 449 259 - 58% 259 259
236 HOUSING MITIGATION 57,790 1,495,875 396,427 83,325 479,753 32% 251,627 240 EMPLOYEE ASSISTANCE 1,597 28,531 9,613 - 9,613 34% 8,132 246 COUNTYWIDE SOLID WASTE PROGRAM 105,285 1,324,763 615,036 548,587 1,163,624 88% - 250 COMH-SUCCESSOR AGENCY-MHRDA 587 6,939,408 490,200 490,200 - 7% 4,161,712 255 HOUSING SUCCESSOR AGENCY 85,445 1,003,785 644,544 158,333 802,877 80% 702,211 260 PUBLIC ART - 23,500 3,993 - 3,993 17% -
TOTAL SPECIAL REVENUE FUNDS 1,237,649 18,823,852 6,554,350 907,193 7,461,543 40% 9,308,463

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 355,443 9,738,856 4,149,377 2,479,259 6,628,635 68% 2,780,342 302 PARK MAINTENANCE 55,245 745,776 394,165 394,165 - 53% 379,169 303 LOCAL DRAINAGE 6,990 6,997,265 37,090 42,558 79,648 1% 270,633 304 LOCAL DRAIN. NON-AB1600 645 833,046 2,085 48,585 50,670 6% 173,027 306 AGRICULTURE & OPEN SPACE PRESERVATIO 2,249 5,480,009 5,400,261 5,400,261 - 99% 15,596 308 STREET CIP 41,944 6,587,142 2,894,890 131,769 3,026,659 46% 2,792,326 309 TRAFFIC IMPACT 426,037 30,480,782 6,634,065 9,088,932 15,722,997 52% 1,264,453 315 PUBLIC SAFETY FACILITIES IMPACT 19,734 565,180 138,922 138,922 - 25% 136,675 346 PUBLIC FAC.NON AB1600 2,466 1,127,968 88,029 44,322 132,351 12% 143,766 347 PUBLIC FACILITIES IMPACT 2,277 27,331 15,939 15,939 - 58% 34,340 348 LIBRARY IMPACT 18,187 216,704 128,041 128,041 - 59% 613,232 350 UNDERGROUNDING 95 139,398 665 - 0% 665 644
355 SCHOOL PEDESTRIAN & TRAFFIC SAFETY 31,630 1,160,466 1,149,060 31,456 1,180,516 102% 1,033,980 360 COMM/REC CENTER IMPACT 25,884 1,454,834 218,671 312,349 531,020 37% 1,443,807 375 QUIMBY FEE 9 600,000 114 - 0% 114 -
TOTAL CAPITAL PROJECTS FUNDS 988,836 66,154,756 21,251,373 12,179,229 33,430,603 51% 11,081,991

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 886 304,947 233,828 233,828 - 77% 231,304 441 POLICE FACILITY BOND DEBT 338 389,497 312,609 312,609 - 80% 304,854 TOTAL DEBT SERVICE FUNDS 1,224 694,444 546,437 546,437 - 79% 536,158

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2021-22
For the Month and Seven Months Ended January 31, 2022
58% 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 SEWER OPERATIONS 864,037 14,126,884 7,365,690 194,410 7,560,100 54% 6,344,487 641 SEWER CAPITAL EXPANSION 40,505 22,987,165 297,983 524,140 822,123 4% 324,264 642 SEWER RATE STABILIZATION 95 1,138 665 - 665 58% 558 643 SEWER-CAPITAL PROJECTS 515,860 22,004,075 5,251,172 1,270,848 6,522,020 30% 2,109,414 TOTAL SEWER FUND(S) 1,420,497 59,119,262 12,915,510 1,989,399 14,904,908 25% 8,778,723 WATER
Water Operations 1,074,466 15,292,037 7,766,859 764,070 8,530,929 56% 6,689,516 Utility Billing 66,613 985,735 505,300 34,180 539,480 55% 408,705 Water Conservation 6,808 157,768 62,719 49,054 111,773 71% 32,703 650 WATER OPERATIONS 1,147,887 16,435,540 8,334,878 847,304 9,182,182 56% 7,130,924 651 WATER CAPITAL EXPANSION 77,751 2,281,063 480,220 3,029 483,250 21% 310,545 652 WATER RATE STABILIZATION 31 371 217 - 58% 217 180
653 WATER-CAPITAL PROJECTS 23,566 7,534,033 543,193 321,695 864,889 11% 121,998 TOTAL WATER FUND(S) 1,249,235 26,251,006 9,358,509 1,172,029 10,530,537 40% 7,563,647 TOTAL ENTERPRISE FUNDS 2,669,732 85,370,268 22,274,018 3,161,427 25,435,446 30% 16,342,370

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 122,125 2,612,628 1,004,905 928,829 1,933,734 74% 888,320 740 BUILDING MAINTENANCE 85,954 3,507,595 603,732 86,241 689,972 20% 1,146,870 741 BUILDING REPLACEMENT 125,113 610,000 181,156 53,217 234,373 38% 45,239 745 CIP ADMINISTRATION 140,290 1,735,361 981,273 6,764 988,037 57% 788,644 760 UNEMPLOYMENT - 20,000 3,846 - 3,846 19% -
770 WORKERS COMPENSATION 35,184 876,877 707,534 707,534 - 81% 482,358 790 EQUIPMENT REPLACEMENT 263,620 1,546,014 423,735 212,867 636,602 41% 682,663 791 EMPLOYEE BENEFITS FUND 177,834 625,000 536,268 536,268 - 86% 295,244 795 GEN. LIABILITY INSURANCE 10,067 1,724,061 1,493,139 1,493,139 - 87% 1,192,755 TOTAL INTERNAL SERVICE FUNDS 960,188 13,257,537 5,935,587 1,287,918 7,223,504 54% 5,522,093 REPORT TOTAL $ 10,110,311 $ 235,172,476 $ 83,584,022 $ 19,298,987 $ 102,883,009 44% 65,335,020 $

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2021-22
For The Seven Months Ended January 31, 2022
58% of Year Complete
Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund 06-30-21 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 24,896,179 $ 22, $ 43% 27, 030,613 $ 022,256 53% (4, $ 991,643) $ 1,763,220 $ 18,141,315 TOTAL GENERAL FUND $ 24,896,179 $ 22,030,613 43% $ 27,022,256 53% $ (4,991,643) $ 1,763,220 $ 18,141,315 202 STREET MAINTENANCE 6,241 $ 320,331 46% $ 326,794 55% $ (6,463) $ - $ (222) 205 PUBLIC SAFETY/SUPPL. LAW 195,819 95,207 94% 104,228 63% (9,021) - 186,798 206 DEVELOPMENT SERVICES (484,553) 2,620,633 50% 3,256,350 59% (635,717) 36,237 (1,156,508) 207 LONG RANGE PLANNING 1,250,193 406,411 47% 349,241 41% 57,169 61,183 1,246,180 215 / 216 CDBG 34,893 167 5% 3,206 58% (3,039) - 31,854 225 ASSET SEIZURE 143,259 361 19% 14,232 n/a (13,872) - 129,387229 LIGHTING AND LANDSCAPE 172,706 104,867 4076% 93,356 56% 11,511 15,404 168,813 230 COMMUNITY FACILITIES DISTRICT 137,840 11,766 949% 15,236 36% (3,470) - 134,370 232 ENVIRONMENTAL PROGRAMS 213,442 307,233 64% 231,632 46% 75,601 4,123 284,920 234 MOBILE HOME PK RENT STAB. 58,766 7,982 1054% 58% 259 7,723 - 66,489 235 SENIOR HOUSING 234,588 600 16% n/a - 600 - 235,188
236 HOUSING MITIGATION 5,407,291 772,692 30% 396,427 27% 376,264 83,325 5,700,230 237 BEGIN 320,727 54,180 n/a n/a 54,180 - - 374,907238 CAL HOMES 276 208 n/a n/a - 208 484240 EMPLOYEE ASSISTANCE 62,190 6,984 24% 9,613 34% (2,630) - 59,560 246 COUNTYWIDE SOLID WASTE 699,112 50% 615,036 46% 84,075 548,587 (464,512) 247 ENVIRONMENT REMEDIATION 135,927 1,225 50% n/a - 1,225 - 137,152 250 COMH-SUCCESSOR AGENCY-MHRDA (493,066) 6,246,678 88% 490,200 7% 5,756,478 6,262,932 (999,520)255 HOUSING SUCCESSOR AGENCY 4,287,939 284,662 132% 644,544 64% (359,882) 158,333 3,769,724 260 PUBLIC ART 70,772 1,100 n/a 3,993 (2,893) - 67,879
TOTAL SPECIAL REVENUE FUNDS $ 11,755,250 $ 11,942,398 64% $ 6,554,350 35% $ 5,388,048 $ 7,170,124 $ 9,973,174 301 PARK DEV. IMPACT FUND $ 270,918 $ 5,934,606 83% 4, $ 149,377 43% 1, $ 785,229 $ 2,479,259 $ (423,112) 302 PARK MAINTENANCE 2,815,081 458,182 127% 394,165 53% 64,017 - 2,879,098 303 LOCAL DRAINAGE 10,947,520 585,911 35% 37,090 1% 548,821 42,558 11,453,783 304 LOCAL DRAINAGE/NON-AB1600 1,268,597 86,905 108% 2,085 0% 84,820 48,585 1,304,832 306 AGRICULTURE AND OPEN SPACE PRESERVA 6,011,689 67% 5, 120,474 99% (5, 400,261 279,787) - 731,902 308 STREET CIP 3,538,596 3, 77% 2, 110,049 44% 894,890 215,159 131,769 3,621,986 309 TRAFFIC IMPACT FUND 2,217,293 6,726,984 458% 6,634,065 22% 92,919 9,088,932 (6,778,720) 315 PUBLIC SAFETY FACILITIES IMPACT 3,650,943 17% 148,515 25% 9,593 138,922 - 3,660,536 346 PUBLIC FACILITIES NON-AB1600 1,100,016 35,760 4% 88,029 8% (52,270) 44,322 1,003,424347 PUBLIC FACILITIES IMPACT FUND 1,034,272 35,706 13% 15,939 58% 19,767 - 1,054,039348 LIBRARY IMPACT FUND 1,487,275 15% 161,665 59% 33,624 128,041 - 1,520,899 350 UNDERGROUNDING 1,073,838 403,828 469% 665 0% 403,163 - 1,477,001 355 SCHOOL PEDESTRIAN/TRAFFIC SFTY 181,922 29,720 5% 1, 99% (1, 149,060 119,340) 31,456 (968,874) 360 COMM/REC CTR IMPACT FUND 1,353,501 202,144 12% 218,671 15% (16,527) 312,349 1,024,625 375 QUIMBY FEE - n/a - 114 0% (114) - (114)
TOTAL CAPITAL PROJECT FUNDS $ 36,951,461 $ 18,040,448 82% $ 21,251,373 32% $ (3,210,926) $ 12,179,229 $ 21,561,306 420 CIVIC CENTER DEBT $ 165,528 $ 178,367 58% $ 233,828 77% (55, $ 461) $ 3 $ 110,064 441 POLICE FACILITY BOND DEBT 171,762 224,177 58% 312,609 80% (88,432) 4 83,327TOTAL DEBT SERVICE FUNDS $ 337,290 $ 402,544 58% $ 546,437 79% $ (143,893) $ 6 $ 193,391 Revenues Expenses Ending Fund Balance

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2021-22
For The Seven Months Ended January 31, 2022
58% of Year Complete
Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund 06-30-21 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Ending Fund Balance
640 SEWER OPERATIONS $ 3,602,581 $ 7,380,535 52% 7, $ 365,690 52% 14,845 $ 194,410 3,423,016 641 SEWER IMPACT FUND* 22,121,700 1,991,667 28% 297,983 1% 1,693,685 524,140 23,291,244 642 SEWER RATE STABILIZATION 2,692,314 94,487 48% 58% 93,822 665 - 2,786,136 643 SEWER-CAPITAL PROJECTS 29,354,687 2,754,522 59% 5,251,172 24% (2,496,650) 1,270,848 25,587,189 650 WATER OPERATIONS 3,580,575 8,251,245 51% 8,334,878 51% (83,633) 847,304 2,649,638 651 WATER IMPACT FUND* 2,979,950 349,815 19% 480,220 21% (130,406) 3,029 2,846,515 652 WATER RATE STABILIZATION 3,162,416 81,093 57% 58% 80,876 217 - 3,243,292 653 WATER -CAPITAL PROJECT 8,134,534 2,959,590 59% 543,193 7% 2,416,397 321,695 10,229,235 TOTAL ENTERPRISE FUNDS $ 75,628,757 $ 23,862,955 48% $ 22,274,018 26% $ 1,588,937 $ 3,161,427 $ 74,056,266 730 INFORMATION SERVICES $ 849,651 $ 1,312,657 58% 1, $ 004,905 38% $ 307,753 $ 928,829 $ 228,575 740 BUILDING MAINTENANCE 6,945 659,621 19% 603,732 17% 55,889 86,241 (23,407) 741 BUILDING REPLACEMENT 3,561,339 410,063 54% 181,156 30% 228,908 53,217 3,737,030 745 CIP ENGINEERING 55,476 1,106,214 61% 981,273 57% 124,941 6,764 173,653 760 UNEMPLOYMENT 328,958 840 33% 3,846 19% (3,006) - 325,952 770 WORKERS COMPENSATION 2,115,661 444,608 49% 707,534 81% (262,926) 30,000 1,822,735 790 EQUIPMENT REPLACEMENT 5,996,455 654,094 60% 423,735 27% 230,359 212,867 6,013,947 791 EMPLOYEE BENEFITS FUNDS (28,785) 355,179 34% 536,268 86% (181,089) 4,187,404 (4,397,278) 795 GEN. LIABILITY INSURANCE 1,236,516 1,003,144 58% 1,493,139 87% (489,995) - 746,521 TOTAL INTERNAL SERVICE FUNDS $ 14,122,216 $ 5,946,421 46% $ 5,935,587 45% $ 10,834 $ 5,505,322 $ 8,627,729

SUMMARY BY FUND TYPE
GENERAL FUND GROUP 24,896,179 $ $ 22,030,613 43% 27, $ 022,256 53% (4, $ 991,643) $ 1,763,220 $ 18,141,315 SPECIAL REVENUE GROUP 11,755,250 11,942,398 64% 6,554,350 35% 5,388,048 7,170,124 9,973,174 DEBT SERVICE GROUP 337,290 402,544 58% 546,437 79% (143,893) 6 193,391 CAPITAL PROJECTS GROUP 36,951,461 18,040,448 82% 21,251,373 32% (3,210,926) 12,179,229 21,561,306 ENTERPRISE GROUP 75,628,757 23,862,955 48% 22,274,018 26% 1,588,937 3,161,427 74,056,266 INTERNAL SERVICE GROUP 14,122,216 5,946,421 46% 5,935,587 45% 10,834 5,505,322 8,627,729 TOTAL ALL GROUPS $ 163,691,153 $ 82,225,379 53% 83, $ 584,022 36% (1, $ 358,643) $ 29,779,329 $ 132,553,181 For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.2 Amount restricted for debt service payments and AB1600 capital expansion projects as detailed in the City's five year CIP Plan and bond agreements.

14 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Michelle Bigelow, Deputy City Clerk
APPROVED BY: City Manager
ADOPT RESOLUTION CERTIFYING THE INITIATIVE PETITION TITLED:

CITIZENS’ INITIATIVE AMENDING THE GENERAL PLAN TO REQUIRE

VOTER APPROVAL OF ANY FUTURE MONTEREY ROAD LANE

REDUCTION AND DIRECT STAFF TO PREPARE AN IMPACT REPORT

RECOMMENDATION(S)

1. Adopt resolution accepting the City Clerk’s Certificate of Sufficiency for the Initiative Petition Titled: Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction; and

2. Direct staff to prepare an impact report under Elections Code section 9212 within 30 days and no later than April 1, 2022, for City Council consideration at the April 6, 2022 City Council meeting.

Estimated Time: 15 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
REPORT NARRATIVE:

Certification:

On June 9, 2021, proponents submitted a Notice of Intention, written text of initiative, and the reasons for the proposed initiative.

On December 22, 2021, the City of Morgan Hill (City) requested that the Santa Clara County Registrar of Voters Office (ROV) conduct a random sampling of the signatures on the referendum petitions (Attachment 1).

On January 20, 2022, the City was notified by the ROV that the random sampling results fell between 95% and 110%, necessitating a full count. On February 23, 2022, the City was notified by the ROV that 2,814 signatures were found to be sufficient

14 (Attachment 2).

Pursuant to state law, to qualify for further action, an initiative petition must contain the signatures of at least 10% of the registered voters of the City of Morgan Hill. The ROV indicated that as of February 17, 2021, there were 27,956 registered voters in the City of Morgan Hill, such that at least 2,796 valid signatures would be required on the initiative petition. The ROV reviewed and examined the signatures contained on the initiative petition and the signature verification resulted in the verification of a total of 3,379 signatures, of the 3,528 signatures submitted, with 2,814 signatures found valid.

Therefore, the City Clerk has prepared and issued a Certificate of Sufficiency of Initiative Petition (Attachment 3) for City Council consideration and acceptance.

Impact Report:

Upon City Council adoption of the resolution (Attachment 4) accepting the City Clerk's Certificate of Sufficiency of Initiative Petition, California Elections Code sections 9211, 9212, and 9114 provide that the City Council may refer the proposed initiative measure to any City agency or agencies for a report on its effect on municipal operations. Staff recommends that the Council refer the initiative measure for a report on the following in accordance with Elections Code section 9212:

1. The fiscal impact of the measure;

2. The effect of the measure on consistency with the City’s general and specific plans;

3. Its impact on funding for infrastructure;

4. Its impact on the community’s ability to attract and retain business and employment;

5. Its impact on vacant parcels of land;

6. Its impact on traffic congestion, existing business districts, and developed areas designated for revitalization; and

7. Any other matters the City Council would like to be in the report.

If requested, the report will be submitted to the Council no later than April 1, 2022 for consideration at the April 6, 2022 City Council meeting. At the April 6, 2022 City Council meeting, the Council would be required to either 1) adopt the ordinance contained in the initiative measure without alteration; or) place the initiative measure on the ballot at the next regular municipal election, November 8, 2022.

COMMUNITY ENGAGEMENT:

Involve
As a General Law City, Morgan Hill is governed by Government and Election Codes for the purpose of electing municipal officers (e.g., Mayor, Council Members, and City Treasurer), ballot measures and the initiative and referendum processes.

By City Council adoption of the attached resolution, it will be accepting the City Clerk’s

14 Certificate of Sufficiency of the Initiative Petition Titled: Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction.

ALTERNATIVE ACTIONS:

The Council could choose not to request an impact analysis for the initiative and could instead adopt the ordinance without alteration or place the measure on the ballot for the November 8, 2022, general municipal election.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council previously acted on the Monterey Road Complete Streets/Lane Reduction Program on August 5, 2015. The City Council directed the re-establishment of two travel lanes in each direction following the trial of the Program. The Council did request the item be revisited at a later date, should circumstances change. Prior to August 2015, the Council made several actions leading to the Pilot.

On June 3, 2020, the City Council provided direction on the Monterey Road Complete Streets/Lane Reduction Program and business use of Downtown spaces. The Council did not elect to move forward with the Complete Streets/Lane Reduction Program.

Due to the COVID-19 pandemic and requests from local business owners, on May 19, 2021, the City Council provided direction for staff to return with the design of an Improved Lane Reduction Program and associated Place Branding Design for the Downtown.

On August 18, 2021, the City Council authorized staff to apply for and negotiate Transportation Development Act Grant Funds for bicycle lane improvements.

On January 19, 2022, the City Council approved all seven recommendations outlined in the staff report approving the Traffic Mitigation Implementation Schedule, approving the re-design of the traffic lanes Downtown, directing staff to install pedestrian safety bollards at specific locations Downtown, directing staff to bring forward a review of the Parklet Program and to develop a Parklet Fee Financing Assistance Program, directing staff to explore the creation of a community parklet, directing staff to bring forward a contract for the implementation of Property-Based Improvement District, and amending the FY 2021-2022 budget and appropriating $210,530 from the General Fund.

FISCAL AND RESOURCE IMPACT:

The City of Morgan Hill has not yet been invoiced to perform the count of the initiative petitions. Depending on the action(s) taken by the Council, additional costs will vary:

Impact Report: Due to the nature and breadth of the analysis, staff recommends engaging the services of Strategic Economics and Keyser Marsten & Associates to develop, review and confirm impact analysis. Given the time limitations, staff will work with consultants to complete as much analysis as possible in the next three weeks. No budget amendment or scorecard is necessary as the anticipated cost of this work will be absorbed within the budget and will be done within the City Manager’s signature

14 authority.

Election Cost: If the Council elects to place the initiative on the ballot, it will be placed on the ballot for the next regular municipal election scheduled for November 8, 2022. The estimated cost to place a measure on the ballot for the November 8, 2022 election is $61,502. Ballot measure costs are in addition to the regularly scheduled election costs of two Council district seats, and one Mayoral seat, which is estimated to be $197,081.

Resource Impact: Thus far, staff has been able to accommodate the additional work due to the initiative petition within its existing workplan. Staff will add the facilitation of the impact analysis to its current workplan.

CEQA (California Environmental Quality Act):

Not a Project
Certification of an initiative petition is not a project under CEQA.

City Clerk’s Office
17575 Peak Avenue
Morgan Hill, CA 95037-4128
(408)776-7380 (Phone)
(408)779-3117 (Fax)
[email protected]
December 22, 2021
Shannon Bushey
Registrar of Voters
County of Santa Clara
1555 Berger Drive, Building 2
San Jose, CA 95112
Subject: Submittal of Initiative Petition Titled: Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction.

Dear Ms. Bushey:

On June 8, 2021, Armando Benavides on behalf of Sally Casas a citizen of Morgan Hill submitted a Notice of Intention, written text of initiative, and the reasons for the proposed initiative.

The last report from the Santa Clara County Registrar of Voters to the Secretary of State dated February 17, 2021 states that there were 27,956 registered voters in Morgan Hill. To find the Initiative Petition to be sufficient, 10% of the 27,956 qualified registered voters in Morgan Hill would need to sign the petition (2,796 signatures).

On December 21, 2021, I was presented with 76 Sections of the Initiative Petition. My prima facie review resulted in the Petitions containing 3,467signatures; exceeding the 2,796 signatures required to qualify.

The City of Morgan Hill is requesting that the Santa Clara County – Registrar of Voters conduct a Random Sampling of 500 signatures on the Referendum Petition. Should the random selections result in 95% to 110% valid signatures, and necessitate a 100% signature verification, the City of Morgan Hill requests that the Registrar of Voters Office verify up to the 2,796 signatures required to declare the Referendum Petition sufficient.

Ms. Shannon Bushey
December 22, 2021
Page – 2 –
The City of Morgan Hill will reimburse the Registrar of Voters Office for the services rendered to certify the results of the Referendum Petition.

Please contact me for any questions you may have at (408) 310-4678 or e-mail:
[email protected].

Sincerely yours,
Michelle Bigelow
City Clerk
Enclosures: 1) Referendum Petitions
2) Petition Worksheet Breakdown
3) Two (2) blank copies of the Referendum Petition

Petition Result Breakdown
JobE40 City of Morgan Hill -Citizen's Initiative Amending the General Plan to Require Voter Approval of any Future Monterey Rd Lane Reducti JobE40 City of Morgan Hill -Citizen's Initiative Amending the General Plan

RESULT ABBR RESULT DESCRIPTION
Sigs Invalid
Sample Size
Sigs Checked
Sigs Valid
Sigs Not Checked 149

83.3 16.7
%
%
2,814
3,379
3,528
Raw Count 3,528
565 %
%
%
Percent of Sigs
Checked
Percent of
Sample Size

4.2 79.8

16.0 Non-duplicate Invalids
Duplicated 59
506 %
%
%

1.7 1.7 %

15.0 14.3
Signatures Required 2796
Approved Approved 2,814 83.3 %
NotReg Not Registered 176 5.2 %
OutOfDist Out of District 69 2.0 %
Duplicate Signed more than once 59 1.7 %
RegLate Registered Late 8 0.2 %
RegDiffAdd Registered at a Different Address 159 4.7 %
CantIdntfy Cannot Identify 1 0.0 %
NoResAdd No Residence Address Given 14 0.4 %
NoSig No Signature 2 0.1 %
PrintedSig Printed Signature 2 0.1 %
SigNoMatch Signatures Don't Match 41 1.2 %
NotCompBySignr Not Completed by Signer 33 1.0 %
Inv Invalid-See Doc 1 0.0 %
STATISTICS SUMMARY Value % Raw % Req
Pages Processed
Total Checked
Uncorrected Valid
Duplicate Adjustment
Estimated Valid
76 3379
0 2814
2814
100.0 %

79.8 95.8

79.8 %
%
%
120.9
100.6
100.6
%
%
%
Min Required (95%):

Min Required to pass
Based on Sample (110%):
2656.2
3075.6
PCMR012 - Petition Result Breakdown
Printed: 2/22/2022 1:58:38PM

CERTIFICATE OF SUFFICIENCY OF PETITION
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, County of Santa Clara, State of California, hereby certify that:

The petition entitled “Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction” was filed with the City Clerk Department on December 21, 2021.

That said petition consists of 76 sections;
That each section contains signatures purporting to be signatures of qualified electors of the City of Morgan Hill, California;
That attached to this petition at the time it was filed, was an affidavit purporting to be the affidavit of the person who solicited the signatures, and containing the dates between which the purported qualified electors signed this petition;
That the affiant stated his or her own qualification, that he or she had solicited the signatures upon that Section, that all of the signatures were made in his or her presence, and that to the best of his or her own information and belief, each signature to that section was the genuine signature of the person whose name it purports to be;
That after the proponents filed this petition and based on the County of Santa Clara Registrar of Voters’ Signature Verification Certificate, I have determined the following facts regarding this petition:

1. Total number of signatures filed by proponent raw count: 3,528

2. Total number of signatures verified: 3,379

3. Number of signatures found sufficient: 2,814

4. Number of signatures found insufficient: 565

5. Number of signatures insufficient because duplicate: 59

6. Number of unverified signatures: 149
Based on the above, the petition is deemed to be sufficient.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Morgan Hill, this 2nd day of March 2022.

Michelle Bigelow, City Clerk
City of Morgan Hill

RESOLUTION NO. 22-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ACCEPTING THE CITY CLERK'S

CERTIFICATE OF SUFFICIENCY FOR THE INITIATIVE
PETITION TITLED: CITIZENS’ INITIATIVE AMENDING

THE GENERAL PLAN TO REQUIRE VOTER APPROVAL

OF ANY FUTURE MONTEREY ROAD LANE REDUCTION

SIGNATURE COUNT AND VERIFICATION
WHEREAS, the City of Morgan Hill, a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (“City”), is authorized to take those actions required of or authorized by legislative bodies of cities as the legislative body of the City of Morgan Hill;
WHEREAS, the reasons supporting the adoption of this Resolution are set forth in more detail in that certain City Council Staff Report entitled “Adopt resolution certifying the initiative petition titled: Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction Signature Count and Verification” (Initiative) submitted for City Council consideration at its meeting of March 2, 2022, submitted to the City Council by the City Clerk (the “Staff Report”), the contents of which Staff Report are incorporated herein by this reference; and
WHEREAS, the consideration by City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and has been placed upon the City Council Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council may have continued or deferred consideration of this Resolution, and on such date the City Council conducted a duly noticed public meeting at which meeting the City Council provided members of the public an opportunity to comment and be heard and considered any and all testimony and other evidence provided in connection with the adoption of this Resolution; and WHEREAS, the activities allowed under this Resolution do not constitute a project under the provisions of California Environmental Quality Act of 1970 as such activities result in no change in the physical environment; and
WHEREAS, on December 21, 2021, the City Clerk (also referred to herein as the Elections Official) received the Initiative; and
WHEREAS, after a prima fascie review by the City Clerk, the Initiative was deemed filed on December 21, 2021; and
WHEREAS, pursuant to California Elections Code section 9215, an initiative petition must be signed by at least 10% of the registered voters of the City based upon the county election official's last official report of registrations to the Secretary of State; and

City of Morgan Hill
Resolution No. 22-XXX

WHEREAS, on February 23, 2022 the Santa Clara County Registrar of Voters concluded and determined that the Referendum petition contained at least 2,796 sufficient signatures of registered voters in the City of Morgan Hill based on a full count, and notified the City Clerk of this information pursuant to that certain correspondence attached hereto as Exhibit A and incorporated herein by this reference; and
WHEREAS, the Santa Clara County Registrar of Voters last official report of registration of voters to the Secretary of State for the City of Morgan Hill was 27,956 registered voters, such that 10% of said registration of voters would equal 2,976 as the number of valid signatures required to qualify the Referendum for further action; and
WHEREAS, the City Clerk has prepared and submitted a Certificate of Sufficiency of Initiative Petition for consideration by City Council in accordance with California Elections Code section 9114, which Certificate is attached hereto as Exhibit B and incorporated herein by this reference.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

Section 1. Recitals. The City Council does hereby find, determine, and resolve that all of the foregoing recitals are true and correct.

Section 2. Acceptance. The City Council further resolves that the Council hereby accepts the Certificate of Sufficiency for the Initiative Petition prepared by the City Clerk for the Initiative Petition titled: Citizens’ initiative amending the General Plan to require voter approval of any future Monterey Road lane reduction Signature Count and Verification, which Certificate is attached hereto as Exhibit B.

Section 3. This Resolution shall take effect immediately upon adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the of the City of Morgan Hill at a Regular Meeting held on the 2nd day of March 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ _______ ________________________________ RICH CONSTANTINE, Mayor MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 22-XXX

 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 22-XXX, adopted by the City Council at a regular meeting held on March 2, 2022.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 22-XXX

EXHIBIT A

City of Morgan Hill
Resolution No. 22-XXX

City of Morgan Hill
Resolution No. 22-XXX

City of Morgan Hill
Resolution No. 22-XXX

EXHIBIT B

15 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Michelle Bigelow, Deputy City Clerk
APPROVED BY: City Manager

REVIEW AND ADOPT NEW CITY COUNCIL DISTRICT MAP

RECOMMENDATION(S)

1. Review and discuss draft maps 103, 104,105, 106,108, and NDC Green, including what about the maps work and does not work and what communities of interest would be protected or potentially divided; and

2. Adopt resolution adopting a City Council District map.

Estimated Time: 60 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
2020-2021 Strategic Priorities
Fiscal Sustainability
Community Engagement and Messaging
REPORT NARRATIVE:

At the February 16, 2022 City Council Redistricting Workshop, the Council reviewed and discussed the draft maps. At the workshop, Council directed staff to bring maps 103, 104, 106, 108, and NDC Green to the public hearing for further review, discussion, and possible adoption of one. In reviewing the maps, staff has also included draft map 105 for review, discussion, and possible adoption. Since map 105 is the only map submitted that was drafted and submitted by an established civil rights organization, the Mexican American Legal Defense and Educational Fund (MALDEF), and the only map that specifically identified a community of interest, staff felt it was important to include it in the discussion.

Every ten years, cities with by-district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have

15 changed. This process, called redistricting, ensures all districts have a nearly equal population. The redistricting process for the City of Morgan Hill must be completed by April 15, 2022.

The City adopted its current district boundaries on September 6, 2017, based on 2010 census data as required by law. The districts must now be redrawn using the 2020 census data and in compliance with the FAIR MAPS Act, adopted by the California legislature as AB 849, which took effect January 1, 2020.

Under the Act, the City Council shall draw and adopt boundaries using the following criteria in the listed order of priority (Elections Code 21601(c)):

1. Comply with the US Constitution, the California Constitution, and the federal Voting Rights Act of 1965, including the federal requirement that districts maintain equal populations.

2. Geographically contiguous

3. Undivided neighborhoods and “communities of interest” (socio-economic geographic areas that should be kept together)

4. Easily identifiable boundaries

5. Compact (do not bypass one group of people to get to a more distant group of people)

6. Shall not favor or discriminate against a political party Once the prioritized criteria are met, other traditional districting principles can be considered, such as:

1. Minimize the number of voters delayed from voting in 2022 to 2024

2. Respect voters’ choices/continuity in office

3. Future population growth
Elections Code Section 21607.1 directs that the City must conduct at least four (4) public hearings throughout the redistricting process; one (1) Public Hearing before maps are drawn, at least two (2) Public Hearings after draft maps are drawn, and one (1) public hearing scheduled on an evening or weekend, at which time the public is invited to provide input regarding the composition of the districts.

The purpose of this public hearing is to consider and discuss draft Council District Maps 103, 104, 105, 106, 108, and NDC Green (see attached maps) and to receive public input on the composition of Council District boundaries and draft maps, and adopt a resolution adopting a City Council District Map.

COMMUNITY ENGAGEMENT:

Consult.

The City Clerk’s Office and Communications Team have implemented the following

15 community outreach plan:

Public Messaging via Social Media, City’s Website, Press Releases, newsletters, and other public communications, in English and Spanish, including:
 At least four City Council Public Hearings
 Social media engagement on Facebook, Instagram, Twitter, and NextDoor  Updated webpage on City’s website for redistricting updates and information  Information provided via website newsflashes, eblasts, “Morgan Hill Weekly 411,” and print
 Press releases sent to various outlets and groups, including individuals and churches who have connections to our Spanish-speaking community  Public notices posted at City facilities
 Display advertisements on local public access network by using Channel 17  Informational tables at the Farmer’s Market, Friday Night Music Series, local coffee shops, St Catherine's Church following the English and Spanish mass, and other public spaces
 Virtual Town Halls
 Online Interactive Tools:
o Updated online interactive mapping tools were available to allow residents to draw their district boundary lines. The City’s consulting demographer provided training for the public on how to use the new online mapping tools.

ALTERNATIVE ACTIONS:

The Council could not adopt a map and direct staff to bring specific draft maps to the March 16, 2022 City Council meeting for additional review and discussion.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
 January 29, 2021, Annual Goal Setting Workshop - City Council received a presentation outlining the requirements and process for redistricting.  May 5, 2021, City Council Meeting - the City Council voted to move forward with a staff-led redistricting process.
 August 6, 2021, Mid-Year Goal Review Workshop - City Council received an update on the redistricting process.
 August 18, 2021, City Council Meeting- The City Council held the first of four required public hearings in the redistricting process to receive an update on the process and request feedback on Communities of Interest.  October 20, 2021, City Council Meeting- The City Council held the second of four required public hearings in the redistricting process to receive an update on the state-adjusted Census data, and receive a demonstration on available mapping tools.
 December 15, 2021, City Council Meeting - The City Council held the third of four

15 required public hearings in the redistricting process to review the draft maps submitted to date.
 February 16, 2022, City Council Redistricting Workshop - The City Council and community reviewed and discussed the draft maps and Council directed staff to bring maps 103, 104, 106, 108, and NDC green to the March 2, 2022 Public Hearing for discussion and possible adoption.

FISCAL AND RESOURCE IMPACT:

For the FY 2021-2022 redistricting process, staff estimates that the currently budgeted funds will be sufficient.

CEQA (California Environmental Quality Act):

Not a Project
The reformatting of electoral districts is not a project as defined in Section 15060(c) of the State CEQA Guidelines.

A
B C D
101
101
E Dunne Ave
Peebles Ave
Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
National Demographics Corporation, December 15, 2021
City of Morgan HillRedistricting 2021 Public Map 103
This map is not contiguous
(Corrected 12/15/2021)
©2021 CALIPER

District A B C D Total
2020 2020 Census (Raw) 11,509 11,174 11,117 11,766 45,566 Deviation from ideal 118 -218 -275 375 649
% Deviation 1.03% -1.91% -2.41% 3.29% 5.70%
% Hisp 39% 35% 39% 21% 33%
% NH White 43% 40% 40% 52% 44%
% NH Black 3% 3% 2% 3% 3%
% Asian-American 12% 19% 16% 21% 17%
Total 7,020 7,628 7,083 8,175 29,905
% Hisp 25% 26% 28% 18% 24%
% NH White 56% 52% 53% 62% 56%
% NH Black 3% 3% 2% 2% 2%
% Asian/Pac.Isl. 14% 18% 16% 16% 16%
Total 6,807 6,829 6,468 8,015 28,119
% Latino est. 25% 27% 27% 17% 24%
% Spanish-Surnamed 23% 25% 24% 16% 22%
% Asian-Surnamed 5% 10% 9% 11% 9%
% Filipino-Surnamed 1% 2% 2% 1% 2%
% NH White est. 66% 59% 62% 69% 64%
% NH Black 3% 2% 2% 2% 2%
Total 4,151 3,784 3,900 5,184 17,019
% Latino est. 20% 23% 22% 15% 20%
% Spanish-Surnamed 19% 21% 21% 14% 18%
% Asian-Surnamed 4% 8% 7% 8% 7%
% Filipino-Surnamed 1% 2% 1% 1% 1%
% NH White est. 72% 65% 68% 74% 70%
% NH Black 3% 2% 2% 2% 2%
Total 5,806 5,770 5,428 7,114 24,118
% Latino est. 24% 26% 25% 16% 22%
% Spanish-Surnamed 22% 24% 23% 15% 21%
% Asian-Surnamed 6% 10% 9% 11% 9%
% Filipino-Surnamed 1% 2% 2% 1% 2%
% NH White est. 67% 60% 64% 70% 66%
% NH Black est. 3% 2% 2% 2% 2%
ACS Pop. Est. Total 10,604 11,285 11,219 11,412 44,520
age0-19 29% 28% 27% 27% 28%
age20-60 50% 54% 53% 52% 52%
age60plus 22% 18% 20% 21% 20%
immigrants 17% 21% 22% 14% 18%
naturalized 54% 63% 52% 71% 59%
english 74% 65% 66% 77% 70%
spanish 18% 22% 20% 8% 17%
asian-lang 6% 8% 8% 9% 8%
other lang 2% 5% 6% 6% 5%
Language Fluency Speaks Eng. "Less
than Very Well" 8% 12% 16% 6% 11%
hs-grad 36% 42% 43% 35% 39%
bachelor 34% 25% 21% 32% 28%
graduatedegree 12% 12% 14% 20% 15%
Child in Household child-under18 35% 40% 36% 43% 39%
Pct of Pop. Age 16+ employed 65% 68% 67% 67% 67%
income 0-25k 8% 12% 6% 4% 7%
income 25-50k 12% 16% 15% 6% 12%
income 50-75k 11% 10% 15% 7% 11%
income 75-200k 44% 41% 45% 43% 43%
income 200k-plus 25% 21% 19% 40% 26%
single family 82% 81% 79% 98% 85%
multi-family 18% 19% 21% 2% 15%
rented 28% 31% 36% 11% 27%
owned 72% 69% 64% 89% 73%
Total population data from the California adjustment to the 2020 Decennial Census. Surname-based Voter Registration and Turnout data from the California Statewide Database. Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC.

Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

Housing Stats
Household Income
Education (among those
age 25+)
2020 Total Pop
City of Morgan Hill - Public Map 103
Language spoken at home
Immigration
Citizen Voting Age Pop
Age
Voter Registration (Nov
2020)
Voter Turnout (Nov
2018)
Voter Turnout (Nov
2020)

A
C
B
D
101
101
E Dunne Ave
Peebles Ave
Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
National Demographics Corporation, February 8, 2022
City of Morgan HillRedistricting 2022 Public Map 104
©2021 CALIPER

Public Map 104
District A
Total Pop 11,174
Deviation from ideal -218
% Deviation -1.91%
% Hisp 38.8%
% NH White 43%
% NH Black 3%
% Asian-American 11%
Total 6,992
% Hisp 25%
% NH White 57%
% NH Black 4%
% Asian/Pac.Isl. 14%
Total 6,657
% Latino est. 25%
% Spanish-Surnamed 23%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 66%
% NH Black 3%
Total 5,663
% Latino est. 24%
% Spanish-Surnamed 22%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 68%
% NH Black 3%
Total 4,058
% Latino est. 19%
% Spanish-Surnamed 18%
% Asian-Surnamed 4%
% Filipino-Surnamed 1%
% NH White est. 73%
% NH Black est. 3%
ACS Pop. Est. Total 10,413
age0-19 29%
age20-60 50%
age60plus 21%
immigrants 18%
naturalized 55%
english 73%
spanish 19%
asian-lang 6%
other lang 2%
Language Fluency Speaks Eng. "Less than Very Well" 9%
hs-grad 37%
bachelor 35%
graduatedegree 12%
Child in Household child-under18 36%
Pct of Pop. Age 16+ employed 65%
income 0-25k 8%
income 25-50k 13%
income 50-75k 12%
income 75-200k 43%
income 200k-plus 24%
single family 81%
multi-family 19%
rented 30%
owned 70%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

B
11,801
409

3.59%
30%
42%
3%
21%
7,187
25%
53%
2%
17%
7,376
24%
22%
12%
2%
61%
2%
6,333
23%
21%
12%
2%
62%
2%
4,044
20%
18%
9%
2%
67%
2%
10,715
28%
54%
18%
20%
61%
68%
18%
9%
4%
10%
38%
26%
17%
44%
65%
10%
9%
9%
39%
33%
89%
11%
17%
83%
C
11,117
-275
-2.41%
39%
40%
2%
16%
7,083
28%
53%
2%
16%
6,468
27%
24%
9%
2%
62%
2%
5,428
25%
23%
9%
2%
64%
2%
3,900
22%
21%
7%
1%
68%
2%
11,219
27%
53%
20%
21%
52%
66%
20%
8%
6%
16%
43%
21%
14%
36%
67%
6%
15%
15%
45%
19%
79%
21%
36%
64%
D
11,474
82 0.72%
26%
50%
3%
18%
8,643
19%
60%
2%
17%
7,618
20%
18%
10%
2%
68%
2%
6,694
19%
17%
9%
2%
69%
2%
5,017
18%
16%
8%
1%
72%
2%
12,172
27%
53%
21%
16%
71%
74%
12%
8%
6%
8%
39%
31%
16%
39%
69%
7%
11%
8%
46%
29%
90%
10%
23%
77%
Total
45,566
684

6.00%
33%
44%
3%
17%
29,905
24%
56%
2%
16%
28,119
24%
22%
9%
2%
64%
2%
24,118
22%
21%
9%
2%
66%
2%
17,019
20%
18%
7%
1%
70%
2%
44,520
28%
52%
20%
18%
59%
70%
17%
8%
5%
11%
39%
28%
15%
39%
67%
7%
12%
11%
43%
26%
85%
15%
27%
73%
02/08/2022 9:54 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats

A
C
B
D
101
101
E Dunne Ave
Peebles Ave
Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
Monterey Rd
National Demographics Corporation, February 8, 2022
City of Morgan HillRedistricting 2022 Public Map 105
©2021 CALIPER

Public Map 105
District A
Total Pop 11,213
Deviation from ideal -179
% Deviation -1.57%
% Hisp 31.7%
% NH White 50%
% NH Black 2%
% Asian-American 12%
Total 7,443
% Hisp 21%
% NH White 63%
% NH Black 2%
% Asian/Pac.Isl. 13%
Total 7,190
% Latino est. 21%
% Spanish-Surnamed 19%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 71%
% NH Black 2%
Total 6,283
% Latino est. 19%
% Spanish-Surnamed 18%
% Asian-Surnamed 6%
% Filipino-Surnamed 1%
% NH White est. 73%
% NH Black 2%
Total 4,696
% Latino est. 16%
% Spanish-Surnamed 15%
% Asian-Surnamed 4%
% Filipino-Surnamed 1%
% NH White est. 76%
% NH Black est. 2%
ACS Pop. Est. Total 11,079
age0-19 29%
age20-60 48%
age60plus 23%
immigrants 16%
naturalized 50%
english 76%
spanish 17%
asian-lang 4%
other lang 3%
Language Fluency Speaks Eng. "Less than Very Well" 7%
hs-grad 37%
bachelor 33%
graduatedegree 14%
Child in Household child-under18 35%
Pct of Pop. Age 16+ employed 63%
income 0-25k 8%
income 25-50k 10%
income 50-75k 12%
income 75-200k 46%
income 200k-plus 25%
single family 85%
multi-family 15%
rented 26%
owned 74%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

B
11,445
53 0.47%
29%
42%
2%
24%
7,088
26%
50%
2%
20%
7,172
23%
21%
13%
2%
60%
2%
6,194
22%
20%
13%
2%
62%
2%
3,996
19%
18%
10%
2%
67%
2%
10,617
28%
53%
18%
20%
64%
68%
17%
10%
5%
10%
38%
27%
17%
45%
64%
9%
8%
8%
39%
36%
92%
8%
14%
86%
C
11,337
-55
-0.48%
46%
34%
3%
14%
6,538
33%
48%
3%
14%
6,033
33%
31%
8%
2%
56%
3%
4,882
31%
29%
8%
2%
57%
3%
3,244
28%
26%
6%
1%
62%
2%
10,537
27%
55%
18%
23%
53%
63%
23%
9%
4%
17%
42%
22%
12%
36%
70%
6%
19%
15%
43%
18%
74%
26%
41%
59%
D
11,571
179

1.57%
26%
50%
3%
18%
8,836
19%
61%
3%
16%
7,724
20%
18%
9%
1%
68%
2%
6,759
19%
17%
9%
2%
69%
2%
5,083
17%
16%
7%
1%
72%
2%
12,286
27%
53%
21%
16%
71%
74%
12%
8%
6%
8%
39%
31%
15%
39%
69%
7%
12%
9%
45%
28%
88%
12%
25%
75%
Total
45,566
358

3.14%
33%
44%
3%
17%
29,905
24%
56%
2%
16%
28,119
24%
22%
9%
2%
64%
2%
24,118
22%
21%
9%
2%
66%
2%
17,019
20%
18%
7%
1%
70%
2%
44,520
28%
52%
20%
18%
59%
70%
17%
8%
5%
11%
39%
28%
15%
39%
67%
7%
12%
11%
43%
26%
85%
15%
27%
73%
02/08/2022 9:58 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats

A
C
B
D
101
101
E Dunne Ave
Peebles Ave
Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
Monterey Rd
National Demographics Corporation, February 8, 2022
City of Morgan HillRedistricting 2022 Public Map 106
©2021 CALIPER

Public Map 106
District A
Total Pop 11,340
Deviation from ideal -52
% Deviation -0.46%
% Hisp 38.8%
% NH White 43%
% NH Black 3%
% Asian-American 11%
Total 7,084
% Hisp 25%
% NH White 57%
% NH Black 4%
% Asian/Pac.Isl. 14%
Total 6,739
% Latino est. 26%
% Spanish-Surnamed 23%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 66%
% NH Black 3%
Total 5,722
% Latino est. 24%
% Spanish-Surnamed 22%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 67%
% NH Black 3%
Total 4,094
% Latino est. 20%
% Spanish-Surnamed 18%
% Asian-Surnamed 4%
% Filipino-Surnamed 1%
% NH White est. 72%
% NH Black est. 3%
ACS Pop. Est. Total 10,586
age0-19 29%
age20-60 50%
age60plus 21%
immigrants 18%
naturalized 55%
english 73%
spanish 19%
asian-lang 6%
other lang 2%
Language Fluency Speaks Eng. "Less than Very Well" 9%
hs-grad 37%
bachelor 34%
graduatedegree 12%
Child in Household child-under18 36%
Pct of Pop. Age 16+ employed 65%
income 0-25k 8%
income 25-50k 13%
income 50-75k 12%
income 75-200k 43%
income 200k-plus 24%
single family 80%
multi-family 20%
rented 31%
owned 69%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

B
11,030
-362
-3.18%
29%
43%
3%
22%
6,769
26%
52%
2%
17%
6,928
23%
21%
12%
2%
61%
2%
5,983
22%
20%
12%
2%
63%
2%
3,896
19%
18%
9%
2%
68%
2%
10,114
29%
53%
18%
20%
62%
69%
17%
9%
5%
9%
38%
27%
17%
45%
64%
10%
8%
8%
39%
35%
91%
9%
14%
86%
C
11,761
369

3.24%
39%
40%
2%
16%
7,416
28%
54%
2%
15%
6,861
27%
25%
9%
2%
62%
2%
5,743
25%
23%
9%
2%
63%
2%
4,026
22%
21%
7%
1%
68%
2%
11,673
27%
53%
20%
21%
52%
65%
21%
8%
5%
16%
43%
21%
14%
36%
68%
6%
16%
15%
44%
19%
79%
21%
36%
64%
D
11,435
43 0.38%
26%
50%
3%
18%
8,637
19%
60%
2%
17%
7,591
20%
18%
9%
2%
68%
2%
6,670
19%
17%
9%
2%
69%
2%
5,003
17%
16%
8%
1%
72%
2%
12,147
27%
53%
21%
15%
71%
74%
12%
8%
6%
8%
39%
31%
16%
39%
69%
7%
11%
8%
46%
29%
90%
10%
23%
77%
Total
45,566
731

6.42%
33%
44%
3%
17%
29,905
24%
56%
2%
16%
28,119
24%
22%
9%
2%
64%
2%
24,118
22%
21%
9%
2%
66%
2%
17,019
20%
18%
7%
1%
70%
2%
44,520
28%
52%
20%
18%
59%
70%
17%
8%
5%
11%
39%
28%
15%
39%
67%
7%
12%
11%
43%
26%
85%
15%
27%
73%
02/09/2022 0:14 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats

A
C
B
D
101
101
E Dunne Ave
Peebles Ave
Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
National Demographics Corporation, February 14, 2022
City of Morgan HillRedistricting 2022 NDC Map 108
©2021 CALIPER

NDC 108
District A
Total Pop 11,167
Deviation from ideal -225
% Deviation -1.98%
% Hisp 38.0%
% NH White 43%
% NH Black 3%
% Asian-American 12%
Total 6,804
% Hisp 24%
% NH White 57%
% NH Black 3%
% Asian/Pac.Isl. 14%
Total 6,669
% Latino est. 25%
% Spanish-Surnamed 23%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est. 66%
% NH Black 3%
Total 5,695
% Latino est. 23%
% Spanish-Surnamed 22%
% Asian-Surnamed 6%
% Filipino-Surnamed 1%
% NH White est. 68%
% NH Black 3%
Total 4,092
% Latino est. 19%
% Spanish-Surnamed 18%
% Asian-Surnamed 4%
% Filipino-Surnamed 1%
% NH White est. 73%
% NH Black est. 3%
ACS Pop. Est. Total 10,206
age0-19 29%
age20-60 50%
age60plus 22%
immigrants 18%
naturalized 55%
english 75%
spanish 18%
asian-lang 6%
other lang 2%
Language Fluency Speaks Eng. "Less than Very Well" 8%
hs-grad 36%
bachelor 35%
graduatedegree 13%
Child in Household child-under18 35%
Pct of Pop. Age 16+ employed 65%
income 0-25k 8%
income 25-50k 11%
income 50-75k 11%
income 75-200k 44%
income 200k-plus 25%
single family 83%
multi-family 17%
rented 27%
owned 73%
Total population data from the 2020 Decennial Census.

Surname-based Voter Registration and Turnout data from the California Statewide Database.

Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

B
11,445
53 0.47%
29%
42%
2%
24%
7,088
26%
50%
2%
20%
7,172
23%
21%
13%
2%
60%
2%
6,194
22%
20%
13%
2%
62%
2%
3,996
19%
18%
10%
2%
67%
2%
10,617
28%
53%
18%
20%
64%
68%
17%
10%
5%
10%
38%
27%
17%
45%
64%
9%
8%
8%
39%
36%
92%
8%
14%
86%
C
11,383
-9
-0.08%
40%
41%
2%
14%
7,177
29%
55%
2%
13%
6,554
28%
26%
8%
2%
62%
2%
5,470
26%
24%
8%
2%
64%
2%
3,848
23%
21%
6%
1%
69%
2%
11,411
27%
53%
19%
21%
50%
65%
22%
8%
5%
16%
43%
21%
13%
36%
68%
6%
16%
15%
44%
18%
76%
24%
39%
61%
D
11,571
179

1.57%
26%
50%
3%
18%
8,836
19%
61%
3%
16%
7,724
20%
18%
9%
1%
68%
2%
6,759
19%
17%
9%
2%
69%
2%
5,083
17%
16%
7%
1%
72%
2%
12,286
27%
53%
21%
16%
71%
74%
12%
8%
6%
8%
39%
31%
15%
39%
69%
7%
12%
9%
45%
28%
88%
12%
25%
75%
Total
45,566
404

3.55%
33%
44%
3%
17%
29,905
24%
56%
2%
16%
28,119
24%
22%
9%
2%
64%
2%
24,118
22%
21%
9%
2%
66%
2%
17,019
20%
18%
7%
1%
70%
2%
44,520
28%
52%
20%
18%
59%
70%
17%
8%
5%
11%
39%
28%
15%
39%
67%
7%
12%
11%
43%
26%
85%
15%
27%
73%
02/15/2022 9:50 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats

A
C
B
D
101
101
E Dunne Ave
Peebles Ave Cochrane
Rd
Llagas Rd
Monterey St
W Main Ave
Watsonville
Rd
National Demographics Corporation, December 7, 2021
City of Morgan HillRedistricting 2021 NDC Green Map
©2021 CALIPER
Este mapa muestra un enfoque mínimo de cambios en el mapa.

District A B C D Total
2020 2020 Census (Raw) 11,509 11,093 11,117 11,847 45,566 Deviation from ideal 118 -299 -275 456 754
% Deviation 1.03% -2.62% -2.41% 4.00% 6.62%
% Hisp 39% 30% 39% 26% 33%
% NH White 43% 43% 40% 50% 44%
% NH Black 3% 3% 2% 3% 3%
% Asian-American 12% 22% 16% 18% 17%
Total 7,020 6,784 7,083 9,019 29,905
% Hisp 25% 26% 28% 19% 24%
% NH White 56% 54% 53% 60% 56%
% NH Black 3% 2% 2% 3% 2%
% Asian/Pac.Isl. 14% 17% 16% 17% 16%
Total 6,807 6,989 6,468 7,855 28,119
% Latino est. 25% 24% 27% 20% 24%
% Spanish-Surnamed 23% 22% 24% 18% 22%
% Asian-Surnamed 5% 12% 9% 9% 9%
% Filipino-Surnamed 1% 2% 2% 2% 2%
% NH White est. 66% 61% 62% 67% 64%
% NH Black 3% 2% 2% 2% 2%
Total 4,151 3,840 3,900 5,128 17,019
% Latino est. 20% 20% 22% 17% 20%
% Spanish-Surnamed 19% 18% 21% 16% 18%
% Asian-Surnamed 4% 9% 7% 8% 7%
% Filipino-Surnamed 1% 2% 1% 1% 1%
% NH White est. 72% 68% 68% 72% 70%
% NH Black 3% 1% 2% 2% 2%
Total 5,806 6,004 5,428 6,880 24,118
% Latino est. 24% 23% 25% 19% 22%
% Spanish-Surnamed 22% 21% 23% 17% 21%
% Asian-Surnamed 6% 12% 9% 9% 9%
% Filipino-Surnamed 1% 2% 2% 2% 2%
% NH White est. 67% 62% 64% 68% 66%
% NH Black est. 3% 2% 2% 2% 2%
ACS Pop. Est. Total 10,604 10,116 11,219 12,581 44,520
age0-19 29% 29% 27% 27% 28%
age20-60 50% 53% 53% 53% 52%
age60plus 22% 18% 20% 21% 20%
immigrants 17% 18% 22% 17% 18%
naturalized 54% 62% 52% 71% 59%
english 74% 68% 66% 74% 70%
spanish 18% 18% 20% 12% 17%
asian-lang 6% 9% 8% 8% 8%
other lang 2% 4% 6% 6% 5%
Language Fluency Speaks Eng. "Less
than Very Well" 8% 10% 16% 8% 11%
hs-grad 36% 38% 43% 39% 39%
bachelor 34% 26% 21% 31% 28%
graduatedegree 12% 17% 14% 15% 15%
Child in Household child-under18 35% 45% 36% 39% 39%
Pct of Pop. Age 16+ employed 65% 65% 67% 69% 67%
income 0-25k 8% 9% 6% 7% 7%
income 25-50k 12% 9% 15% 12% 12%
income 50-75k 11% 9% 15% 9% 11%
income 75-200k 44% 39% 45% 45% 43%
income 200k-plus 25% 34% 19% 28% 26%
single family 82% 90% 79% 89% 85%
multi-family 18% 10% 21% 11% 15%
rented 28% 17% 36% 25% 27%
owned 72% 83% 64% 75% 73%
Total population data from the California adjustment to the 2020 Decennial Census. Surname-based Voter Registration and Turnout data from the California Statewide Database. Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC.

Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.

Housing Stats
Household Income
Education (among those
age 25+)
2020 Total Pop
City of Morgan Hill - NDC Green Map
Language spoken at home
Immigration
Citizen Voting Age Pop
Age
Voter Registration (Nov
2020)
Voter Turnout (Nov
2018)
Voter Turnout (Nov
2020)

RESOLUTION NO. 22-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADOPTING A REVISED ELECTORAL
DISTRICT MAP FOLLOWING THE 2020 FEDERAL
CENSUS
WHEREAS, the City Council must review and if needed adjust city council district boundaries every ten years using decennial census data so that the districts remain substantially equal in population as required by federal law—a process commonly known as redistricting; and
WHEREAS, the 2020 Census data shows that Morgan Hill’s current districts are population balanced, with a deviation between District A (the least populated district) and District D (the most populated district) of nearly 6%. However, District D as drawn does not meet the FAIR MAPS Act requirement of contiguity and as such, the City must adjust its district boundary lines by adopting a final district map before the statutory deadline of April 17, 2022; and
WHEREAS, between August 18, 2021, and February 16, 2022, the City Council held three public hearings, and a workshop to review 11 map submissions from members of the public. The City Council considered input from workshops, town halls, public comments, and communities of interest submission on the draft map; and WHEREAS, on February 16, 2022, the City Council held a workshop to review eleven maps. After considering public input, they recommended five maps be brought to the March 2, 2022 public hearing for consideration; and
WHEREAS, on February 23, 2022, the City published the maps recommended by the Council on its redistricting website and made the maps available to the public; and WHEREAS, on March 2, 2022, the City Council held a public hearing Pursuant to Elections Code Section 10010(a)(2) to receive public comment on the recommended maps; and WHEREAS, after considering the draft maps and public input, the City Council desires to adopt updated city council electoral district maps to ensure that the City’s districts comply with the law.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORGAN HILL THAT:

1. The City Council electoral district map attached as Exhibit A is hereby approved and adopted.

City of Morgan Hill
Resolution No. 22-XXX

2. The City Council districts specified in Exhibit A shall remain in effect until modified.

3. This Resolution and its Exhibit shall be published and available on the City website for as long as the City Council districts approved by this resolution are in effect.

4. The City Clerk or designee, in conjunction with the Demographer, is hereby authorized and directed to provide a copy of this resolution to and work with the Santa Clara County Registrar of Voters to conduct any additional acts necessary to complete the redistricting process in a timely fashion to permit implementation of this district map in connection with the election to be held on November 8, 2022, including, without limitation, minor adjustments to the adopted map as may be necessary for its implementation.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on the March 2, 2022.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
_____________________________ ________________________________ RICH CONSTANTINE, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 22-XX, adopted by the City Council at a regular meeting held on March 2, 2022.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

16 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Matthew Mahood, Economic Development Director
APPROVED BY: City Manager

ADOPT INDUSTRIAL PRESERVATION AND OPTIMIZATION POLICY

RECOMMENDATION(S)
Adopt an Industrial Land Preservation and Optimization Policy

Estimated Time: 30 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
2020-2021 Strategic Priorities
Fiscal Sustainability
Economic Development
Guiding Documents
Morgan Hill 2035 General Plan
Economic Blueprint
REPORT NARRATIVE:

POLICY CONSIDERATION:

The City is proposing an Industrial Land Preservation and Optimization Policy that would be implemented through amendments to the zoning code.

BACKGROUND:

In April 2017, the City Council unanimously adopted the 2017 Morgan Hill Economic Blueprint; an economic development strategy intended to foster economic growth by attracting investment, development, and jobs that will ensure fiscal sustainability and vitality for the community. The Economic Blueprint identifies four industries that are key to Morgan Hill’s future growth and further fiscal sustainability. The four key industries are:

1. Innovation and Advanced Manufacturing -- Grow existing companies, attract new industry and grow professional jobs.

2. Retail -- Grow retail offerings and strengthen commercial nodes.

3. Tourism -- Grow leisure, agriculture, wine country & recreational tourism.

4. Health Care -- Grow and foster the medical service and diagnostics industry by

16 attracting services and facilities.

The Economic Blueprint identified four core industries, 13 strategies and 35 action items. Amongst these items, the Economic Blueprint recommended adopting an employment (Industrial) land preservation policy (Action #1), and strengthening General Plan language to prevent the conversion of Industrial lands (Action #2).

To support the work outlined in the Economic Blueprint, in July 2020, the Economic Development Team, in partnership with the Urban Land Institute (ULI) and the Silicon Valley Economic Development Alliance (SVEDA), hosted four independent seminars with industry experts, and planning and economic development professionals to better understand today’s market at a national, regional and local level. The seminars examined the future of the industrial and retail sectors, especially post-Covid-19, and identified tactical strategies for Morgan Hill to consider that would support our industrial preservation and retail concentration goals. In addition, Strategic Economics performed an analysis of the City’s remaining industrial and commercial vacant properties. The findings and results from these presentations were shared at the September 22, 2020 Planning Commission Meeting.

On March 9, 2021, the Planning Commission conducted an Industrial Preservation Policy Workshop to review proposed changes to the Zoning Code to support goals associated with industrial preservation. The proposed policy takes into consideration the Planning Commission’s feedback and community feedback over the last year in regard to the Industrial Ordinance and rules and regulations for distribution facilities.

On February 8, 2022, the Planning Commission heard and adopted the proposed Industrial Preservation & Optimization Policy with one minor change. The original text of Goal E read, "Encourage conversion of Commercial Lands to Industrial Lands where appropriate." The Planning Commission expressed concern with the word "encourage" and requested to replace it with " consider" or "explore." Staff has made the amendment to Goal E to now read, "Explore conversion of Commercial Lands to Industrial Lands where appropriate." PROJECT DESCRIPTION: The City’s 2017 Morgan Hill Economic Blueprint identifies Innovation and Advanced Manufacturing as one of the four core industries key to Morgan Hill’s future growth and fiscal sustainability. One of the key strategies is to preserve Industrial Lands. Specifically, Action #1 calls for the adoption of an employment (Industrial) land preservation Policy, and Action #2 calls to strengthen the General Plan language to prevent conversion of Industrial lands. This Industrial Land Preservation and Optimization Policy, in conjunction with the City’s General Plan, Zoning Ordinance, and Economic Blueprint, aims to preserve the City’s limited supply of industrial land that is critical to the City’s economic vitality. The Industrial Land Preservation and Optimization Policy identifies five key goals (see below) that provide direction and guidance when developing, implementing, and managing policies, programs, and projects; including implementation of the Zoning Code and General Plan as it relates to industrial uses and industrial business parks.

FINDINGS:

16 The Importance of Jobs
Morgan Hill is a predominantly residential suburb and job exporter, with only 25.1 percent of Morgan Hill residents working within the City Limits. With 21,775 employed residents and 18,428 jobs in Morgan Hill, the ratio of jobs to resident workers is 0.85.

This seems to indicate that there is not the “right” balance between the types of jobs, and the skills of residents. Moreover, nearly 75 percent of commuting residents drive alone despite High-Occupancy Vehicle (HOV) lanes existing most of the distance between San Jose and Morgan Hill. A majority of commuting residents drive longer than 30 minutes to and from work. This pattern negatively impacts quality of life, stresses the City's and region’s transportation infrastructure, and is environmentally unsustainable.

There are several industry categories where the makeup of Morgan Hill business does not mirror the rest of Silicon Valley. Information, professional, scientific, education, and healthcare service careers are under-represented in Morgan Hill. Expanding job opportunities in these sectors, as well as continuing to attract advanced manufacturers, can help improve the match between resident skill sets and the jobs offered in Morgan Hill. To address the housing to jobs ratio, the City needs to continue to protect employment lands while growing high-quality jobs.

Loss of Employment Lands
Factors that can impact the City’s future job inventory, are the conversion of industrial land to commercial or residential uses and the granting of conditional use permits (CUP) to non-traditional industrial uses. Over the past 15 years, a significant amount of the City’s industrial land has been lost to conversion. In 2013, there were 294 acres of vacant industrial land available. Today, Morgan Hill has approximately 120 acres of industrial land available for development and virtually no existing product available for lease or sale with vacancy rates in office and research and development (R&D) at a historic low of 2.9 percent. In less than eight years, the total number of available industrial acreage within the City has declined 59.1 percent, reducing any future supply to a 19–95-year window depending upon market absorption. It is possible that within the current time horizon of the newly adopted Morgan Hill 2035 General Plan, all available industrial land will be exhausted.

In addition, over the last 15 years, the City has issued 25 CUP's which have repurposed a total of 68 acres of property in industrial areas to low intensity or non-industrial uses, predominately mini-storage, recreation uses, community assembly, and medical offices.

Lastly, considering the existing housing crisis and increasing challenges to meet the growing housing demand, pressure to convert industrial land to residential will only intensify. Currently, the California State Legislature is considering various legislation that could potentially allow the conversion of unused or under-utilized commercial lands to residential lands. Senate Bill 6 (SB6) is just one example of this type of pending and proposed legislation.

In 2020, the City Council approved Zoning Code Amendments that prohibit stand-alone large fulfillment centers and parcel sorting centers. This action endorses the focus on high-value employers in advanced manufacturing, R&D, innovation, and office uses.

16 When City staff engaged with industry subject-matter-experts and the Planning Commission to identify strategies and tactics to help protect employment lands and the City’s economic sustainability, the following recommendations were shared:

1. Use it. The best way to preserve industrial/employment lands is to use them for their industrial purposes.

2. Revisit Policy CNF-17.1 language within the General Plan and replace ‘discourage’ with “prohibit” the conversion of industrial lands.

3. Limit discretion of CUP uses in employment generating uses.

4. Hold the line. Prioritize wanted uses such as OEM (original equipment manufacturer).

5. Brand, market, and promote industrial parks.

6. Incentivize Industrial Uses. Explore how fee structures and taxes align with land use outcomes. Explore ways to incentivize industrial development.

7. Activate the ground floor of industrial with a mix of uses. Allow for mixed uses within industrial. Consider office or other uses.

8. Consider post-COVID-19 uses. The pandemic may create new products and uses that are not currently articulated in city codes. Be flexible to allow for industries and new operations.

CONCLUSION:

The proposed Industrial Land Preservation and Optimization Policy further clarifies the City’s goals as it relates to Industrial Lands. This policy, once adopted, in conjunction with the City’s General Plan, Zoning Ordinance and Economic Blueprint, will support the preservation and optimization of the City’s limited supply of industrial land that is critical to the City’s economic vitality. The proposed Industrial Land Preservation and Optimization Policy identifies five key goals that provide direction and guidance when developing, implementing, and managing policies, programs, and projects; including implementation of the Zoning Code and General Plan as it relates to industrial uses and industrial business parks.

The five key goals are:

A. Encourage the attraction and expansion of Research and Development, Office and Advanced Manufacturing uses.

B. Prohibit stand-alone e-commerce Warehouse and Distribution uses.

C. Prohibit General Plan conversions of Industrial lands that cause a net loss of industrial employment lands.

D. Protect existing Industrial lands and business parks by prohibiting non-compatible uses such as community assembly and recreational uses.

E. Explore conversion of Commercial Lands to Industrial Lands where appropriate.

The Industrial Land Preservation and Optimization Policy supports amending the current zoning code to minimize and reduce incompatible uses within the industrial lands, while expanding compatible uses in the medical, healthcare, and medical office and clinic industries that meets current market demand, creates quality jobs and improves the quality of life for residents.

The team seeks the City Council's adoption of the Industrial Land Preservation and

16 Optimization Policy as amended by the Planning Commission.

COMMUNITY ENGAGEMENT:

Community engagement on this topic has taken place since July 2020 with the ULI and SVEDA seminars on Industrial Lands Utilization and Policy. The Planning Commission held meetings on this topic on September 22, 2020 and March 9, 2021. Staff presented the proposed policy at the Morgan Hill Chamber of Commerce Economic Development Committee meeting on January 13, 2022 and via a virtual City of Morgan Hill Townhall meeting on January 27, 2022. Information has been shared through the City’s Citywide 411 Newsletter, the Choose Morgan Hill Economic Development eNewsletter and emails have been sent to stakeholders including industrial property owners, businesses, and commercial real estate brokers. In addition, this item was heard and the policy was adopted with one minor edit at the February 8, 2022 Planning Commission meeting.

ALTERNATIVE ACTIONS:

The City Council may choose to amend the proposed policy language or to not adopt the policy.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

See above for Planning Commission actions.

FISCAL AND RESOURCE IMPACT:

No request of funds or negative impact to general fund.

CEQA (California Environmental Quality Act):

This policy is categorically exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as a City Policy is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This policy is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.

1 CP-22-___
SUBJECT: INDUSTRIAL LAND PRESERVATION & OPTIMIZATION POLICY EFFECTIVE DATE:

ORIGINATING DEPARTMENT: ECONOMIC DEVELOPMENT DEPARTMENT The City of Morgan Hill seeks to support a diverse local economy and an expanded tax base by preserving existing job-generating land. The City’s General Plan identifies strategies to diversify the economy, increase quality and quantity of job opportunities to support the community’s well-being.

Industrial lands are critically important to the economic health of the city and the community, by providing local jobs and supporting industry that contribute to the local economy.

The city seeks to have a job/housing balance, at a 1:1 ratio, that offers a job for every resident able to work in the city. Today, there are 21,775 employed residents, and 18,428 jobs in Morgan Hill - the ratio of jobs to resident workers is 0.85.

Industrial land supply has reduced over the years with conversions of industrial land to housing or allowance of non-industrial uses within the industrial parks. In eight years, available industrial land has declined by 59.1%. Today, Morgan Hill has approximately 120 acres of industrial land available for development and a historically low 2.6% vacancy rate. Additionally, non-industrial uses such as schools, recreational facilities, community assembly further threaten the ability to attract and retain industrial users due to conflicts with sensitive receptors.

The City’s 2035 General Plan’s Economic Development Element provides guidance on the type of jobs, uses, and activities that support the City’s economic vitality and long-term sustainability. The Economic Blueprint identifies Innovation and Advanced Manufacturing as a key industry for Morgan Hill’s future growth and further fiscal health.

This Industrial Land Preservation & Optimization Policy, in conjunction with the City’s General Plan, Zoning Ordinance, and Economic Blueprint, aims to preserve the City’s limited supply of industrial land that is critical to the City’s economic vitality. The Industrial Land Preservation & Optimization Policy identifies five key goals that provide direction and guidance when developing, implementing, and managing policies, programs, and projects; including implementation of the Zoning Code and General Plan as it relates to industrial uses and industrial business parks. To preserve and optimize the City’s limited industrial land inventory, the City should:

A. Encourage the attraction and expansion of Research and Development, Office, and Advanced Manufacturing uses

CITY OF MORGAN HILL

CITY COUNCIL POLICIES AND PROCEDURES

2 Given the limited availability of industrial lands and to maximize job and revenue-generating potential, the City through its Zoning Code, policies, and programs, should encourage and support innovation, advanced manufacturing, R&D, and office uses. To support the goals of the Economic Blueprint and to grow medical and healthcare amenities, medical office and clinics should be considered within the light industrial zoning.

Supporting General Plan Policy & Goal:

ED-3.1 Business Retention, Expansion, and Attraction Efforts. Encourage retention and expansion of existing businesses, and attract new businesses, that:
 generate revenue to the City General Fund (such as retail and point-of-sale manufacturing)  help provide greater financial strength and stability to the City  add industry diversity to the local economy
 stimulate other businesses to develop in the city
ED-8.1 Office and Industrial Development: Support the development of office and industrial facilities to meet local demand, compete for regional growth opportunities, and create high-quality jobs that match with local housing opportunities.

Goal, ED-1. High quality jobs for residents that support household incomes in line with local housing costs and higher-education institutions that enhance skills and increase access to high-quality education.

B. Prohibit stand-alone e-commerce Warehouse and Distribution uses Logistics, warehouse, and distribution uses are one of the fastest growing sectors. While these uses are part of the eco-system that support retail, manufacturing, R&D and other desired uses in Morgan Hill; stand-alone distribution and warehouse uses are not desired uses. The limited inventory of available industrial land should maximize the job and revenue potential of these sites.

Additionally, warehouse and distribution uses generate traffic, have impact to the City’s infrastructure and have limited benefit to the economic health of the city or quality of life of the community. Finally, large distribution and warehouse uses do not fit the small-town aesthetic that Morgan Hill seeks to retain.

C. Prohibit General Plan conversions of Industrial lands that cause a net loss of industrial employment lands
As vacant land becomes more constrained, pressure to convert industrial land to residential will intensify to meet the growing housing demand. To protect the City’s future economic sustainability, the City should update the General Plan language to prohibit the conversion of industrial lands to non-industrial uses unless there is a concurrent conversion of property ensuring there is a no net loss of industrial designated land.

Supporting General Plan Policy:

Policy CNF-17.1 Industrial Land Conversion. Discourage the conversion of property designated for industrial to non-industrial uses.

Policy, Ed-3.2 Employment Land Supply. Preserve the city’s supply of industrial and commercial lands to support the City’s goals and policies related to economic development and jobs-housing balance.

D. Protect existing Industrial lands and business parks by prohibiting non-compatible uses such as community assembly and recreational uses.

To protect the health of the longevity of the industrial parks and ensure current and future industrial users can locate in these parks, the City should minimize conflicts with sensitive receptors that may

3 adversely impact industrial activity. To prevent future non-compatible uses, the Zoning Code should prohibit specific non-compatible uses, including community assembly and commercial recreation uses by eliminating conditional use permits in these zones.

Supporting General Plan Policy:

Policy CNF-17.2 Industrial Land Use Conflicts. Ensure proposed new uses adjacent to industrial uses do not introduce land use conflicts that would adversely impact industrial activities.

Policy ED-3.7 Flexible Business District Zoning. Maintain flexibility within industrial, business park, and office zoning districts that support modern industry uses and that are integrated appropriately with other land uses and attract a broad range of users.

E. Explore conversion of Commercial Lands to Industrial Lands where appropriate To grow our available industrial lands inventory, when appropriate, the City should work with property owners to identify possible property sites that can be converted from commercial to industrial and facilitate the conversion.

Supporting General Plan Policy:

General Plan, Policy ED-1.2, Jobs/Housing Balance. Balance jobs and housing supplies to minimize traffic congestion, and commute times, and to optimize economic diversity and capacity to provide services.

General Plan, Policy ED-3.2 – Employment Land Supply: Preserve the City’s supply of industrial and commercial lands to support the City’s goals and policies related to economic development and jobhousing balance.

17 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Rich Buikema, Contract Planner
APPROVED BY: City Manager
ADOPT ZONING CODE AMENDMENT TO SECTION 18.26.020 (LAND
USE REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL ZONING
DISTRICTS) OF TITLE 18 (ZONING) TO MODIFY THE LAND USES

PERMITTED IN THE INDUSTRIAL ZONING DISTRICTS

RECOMMENDATION(S)

1. Open/close the public hearing.

2. Waive first and second reading of the Ordinance Amendment; and

3. Introduce Ordinance Amendment as recommended by staff and amended by the Planning Commission.

Estimated Time: 30 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
2020-2021 Strategic Priorities
Fiscal Sustainability
Economic Development
Guiding Documents
Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

An Industrial Land Preservation and Optimization Policy has been developed for City Council consideration and supports amending the current zoning code to minimize and reduce incompatible uses within the industrial lands, while expanding opportunities for compatible uses in the medical, healthcare, and medical office and clinic industries that meet current market demand, creates quality jobs, and improves the quality of life for residents. A draft ordinance is being proposed that would amend the Industrial Land Use Regulations. The proposed amendments would implement the Morgan Hill General Plan, 2017 Morgan Hill Economic Blueprint and the pending Industrial Land Preservation and Optimization City Council Policy.

17 The proposed staff recommended amendments to Section 18.26.020 (Land Use Regulations) of the Municipal Code are described as follows:
a. Prohibit the following non-industrial uses in both the IG (General Industrial) and IL (Light Industrial) zoning districts.
i. Community Assembly
ii. Commercial Recreation, Indoor
iii. Home Improvement Centers
b. Prohibit the following non-industrial uses in the IG (General Industrial) zoning district. i. Colleges/Trade Schools
ii. Parks and Recreational Facilities
iii. Adult Businesses
iv. Public Safety Facilities
v. Mini-Storage
vi. Large Commodity Retail
vii. Professional Offices
c. Allow Medical Offices and Clinics of less than 20,000 square feet as a Permitted use in the LI (Light Industrial), CI (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.
d. Allow Medical Offices and Clinics of 20,000 square feet or more as a Conditional use in the IL(Light Industrial) zoning district and as a permitted use in the CI (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.

Planning Commission Action
The Planning Commission reviewed the proposed amendments on February 8, 2022.

Following discussion, the Planning Commission unanimously approved Resolution No. 22-03 recommending the City Council approve the proposed Amendments as presented by Staff with the following exceptions;

1. Maintain the requirement that Home Improvement Centers obtain a Conditional Use Permit in the IL-Light Industrial Zoning District
 Staff had recommended that Home Improvement Centers be prohibited. The Commission indicated that given the potential economic benefit of a home improvement center, those uses should continue to be allowed in the IL-Light Industrial zone, subject to a Conditional Use Permit by the Planning Commission.

2. Require an Administrative Use Permit for Medical Office and Clinics of less than 20,000 square feet.
 Staff had recommended allowing Medical Offices and Clinics as a permitted use

17 at 20,000 square feet. When the idea of requiring an Administrative Use Permit was raised, staff suggested consideration of the following:
 5,000 square feet or less - Permitted by right
 5,001-20,000 square feet - Administrative Use Permit
 20,000 square feet or more - Conditional Use Permit
 After further discussion, the Commission indicated that discretionary review was needed to address the potential for a Medical Office or Clinic being proposed next to an incompatible use or a concentration of those uses. The Commission recommended that an Administrative Use Permit, issued by the Community Development Director provided the appropriate level of review to address their concern. Administrative Use Permits can also be elevated to the Planning Commission.

COMMUNITY ENGAGEMENT:

Community engagement on this topic has taken place since July 2020 with the ULI and SVEDA seminars on industrial lands utilization & policy. The Planning Commission held meetings on this topic on September 22, 2020 and March 9, 2021. Information has been shared through the City’s Citywide 411 Newsletter, the Choose Morgan Hill Economic Development eNewsletter, and emails have been sent to stakeholders including industrial property owners, businesses, and commercial real estate brokers.

A 10-day public hearing notice was published in the Friday, February 18, 2022 edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notice was also provided on the website and social media. On February 8, 2022, the Planning Commission held a public hearing regarding the proposed ordinance amendments in which a 10-day public hearing notice was published in the Friday, January 28, 2022 edition of the Morgan Hill Times.

On February 8, 2022, the Morgan Hill Planning Commission heard and adopted the proposed zoning amendments with two exceptions noted above.

ALTERNATIVE ACTIONS:

If the City Council does not take action on the proposed ordinance amendments, the Municipal Code will remain as-is, including the allowed uses within the industrial zoning districts. The Council may also adopt staff's original recommendation, make modifications to the proposed amendments, or not approve certain amendments that the Council deems appropriate.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 6, 2018, the City Council adopted Ordinance No. 2277 N.S., a comprehensive update of Title 18 – Zoning of the City of Morgan Hill Municipal Code. The update included an amendment to the City’s official zoning map consistent with the Morgan Hill 2035 General Plan.

17 FISCAL AND RESOURCE IMPACT:

Staff regularly brings forward bundles of minor amendments as necessary to enhance, correct and/or refine the Code; and therefore, the cost is borne, and work is accommodated, within the respective division's annual workplan and budget.

CEQA (California Environmental Quality Act):

This ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.

4 PLANNING COMMISSION STAFF REPORT
MEETING DATE: February 8, 2022
PREPARED BY:

Rich Buikema, Contract Planner
APPROVED BY: Jennifer Carmen
ZA2021-0008: MUNICIPAL CODE AMENDMENT AMENDING SECTION 18.26.020 (LAND USE REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL ZONING DISTRICTS) OF TITLE 18 (ZONING) TO MODIFY THE LAND USES PERMITTED IN THE INDUSTRIAL ZONING

DISTRICTS

RECOMMENDATION(S)

1. Open/close public hearing; and,

2. Adopt Resolution recommending City Council approval of the Municipal Code Amendment.

PROJECT INFORMATION:

A draft ordinance is being proposed that would amend the Industrial Land Use Regulations. The proposed amendments would implement the Morgan Hill General Plan, 2017 Morgan Hill Economic Blueprint and the pending Industrial Land Preservation and Optimization City Council Policy.

BACKGROUND:

In April 2017, the City Council unanimously adopted the 2017 Morgan Hill Economic Blueprint that identified industrial preservation as a key strategy for long-term economic sustainability. A component of this strategy is to restrict non-industrial uses that have the potential to inhibit the operation of industrial uses and discourage new industrial users from locating in Morgan Hill.

In July 2020, the City’s Economic Development Team, in partnership with the Urban Land Institute (ULI) and the Silicon Valley Economic Development Alliance (SVEDA), hosted four independent seminars with industry experts, and planning and economic development professionals to better understand today’s market at a national, regional, and local level. The seminars took a deep dive into the future of industrial and retail sectors, especially post-Covid19, and identified tactical strategies for Morgan Hill to consider that support the City's industrial preservation and retail concentration goals.

On September 22, 2020, the Planning Commission conducted the first Industrial Preservation Policy Workshop. The findings of the July 2020 ULI and SVEDA seminars were shared during this meeting. The Planning Commission accepted the report and provided feedback on the industrial preservation concentration policies.

On March 9, 2021, the Planning Commission conducted a second Industrial Preservation Policy Workshop to review proposed changes to the Zoning Code to support an industrial preservation strategy. The Planning Commission reviewed, discussed, and provided feedback on the proposed changes to Section 18.26.020 (Land Use Regulations) of the Industrial Zoning Districts Chapter for alignment with industrial preservation goals. The Planning Commission was generally supportive of the proposed Zoning Code amendments. However, concerns were expressed by the Commission regarding higher rents due to locating commercial recreation uses, such as a gymnastics facility, outside of industrial areas. Staff responded that the need to preserve industrial land was of greater concern.

An Industrial Land Preservation and Optimization Policy has been developed for City Council consideration and supports amending the current zoning code to minimize and reduce incompatible uses within the industrial lands, while expanding compatible uses in the medical, healthcare, and medical office and clinic industries that meet current market demand, creates quality jobs, and improves the quality of life for residents. The policy document will be considered as a separate item.

4 PROJECT DESCRIPTION:

The City proposes the following amendments to Section 18.26.020 (Land Use Regulations) of the Industrial Zoning Districts Chapter to preserve the City’s limited supply of industrial land, prevent incompatible uses, and to accommodate additional medical services:
a. Prohibit the following non-industrial uses in both the IG (General Industrial) and IL (Light Industrial) zoning districts.
i. Community Assembly
ii. Commercial Recreation, Indoor
iii. Home Improvement Centers
b. Prohibit the following non-industrial uses in the IG (General Industrial) zoning district. i. Colleges/Trade Schools
ii. Parks and Recreational Facilities
iii. Adult Businesses
iv. Public Safety Facilities
v. Mini-Storage
vi. Large Commodity Retail
vii. Professional Offices
c. Allow Medical Offices and Clinics less than 20,000 square feet as a permitted use in the LI (Light Industrial), CI (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.
d. Allow Medical Offices and Clinics of 20,000 square feet or more as a conditional use in the IL (Light Industrial) zoning district and as a permitted use in the CI (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.

ANALYSIS:

The proposed ordinance implements the General Plan, 2017 Morgan Hill Economic Blueprint and the pending Industrial Land Preservation and Optimization City Council Policy. A chart displaying an overall summary of the proposed zoning amendments is attached (Attachment 3).

Prohibiting Nonindustrial Uses in Industrial Zones
The draft ordinance proposes to amend the Industrial Land Use Regulations to prohibit certain nonindustrial uses that are either currently permitted or that would be allowed with a Conditional Use Permit (CUP). Allowing non-industrial uses within industrial areas depletes the supply of industrial land, inhibits the operation of existing industrial uses, and potentially discourages new industrial businesses from locating or expanding in Morgan Hill. The proposed zoning amendment will avoid the establishment of “sensitive receptors” within the industrial zoned land that could be adversely affected from noise, dust, odor, and emissions typical of heavy industrial uses.

With no foreseeable expansion to the supply of industrial lands, prohibiting non-industrial uses will help extend the lifespan of the industrial land supply. While certain non-industrial uses are currently allowed only with a CUP, eliminating the CUP option will send a clear message of the importance of preserving industrial areas for primarily industrial uses.

Most of the changes are within the permitted use category in IG (General Industrial) zoning district (approximately 70 acres, of which six (6) acres are vacant) and IL (Light Industrial) zoning district (approximately 590 acres, of which 115 acres are vacant ). The use limitations are proposed because of the nature of heavy industrial operations and the potential for conflict non-industrial uses.

4 Below are the definitions of the non-industrial uses that are proposed to be prohibited in the IG (General Industrial) and/or IL (Light Industrial) zoning districts, as defined in the Zoning Code:

Community Assembly. Facilities that provide space for public or private meetings or gatherings.

Includes places of worship, community centers, meeting space for clubs and other membership organizations, social halls, union halls, banquet centers, and other similar facilities.

Commercial Recreation, Indoor. A commercial recreation facility primarily located indoors. Includes gymnasiums, health clubs, bowling alleys, indoor tennis and racquet courts, indoor swimming pools, laser tag and other similar games. Excludes "instructional services." Colleges and Trade Schools. Institutions of higher education provide curricula of a general, religious or professional nature, typically granting recognized degrees. Includes junior colleges, business and computer schools, management training, vocational education, and technical and trade schools.

Home Improvement Centers. A retail establishment which carries a full line of building materials, appurtenances, and decorator items primarily for homeowners (not contractors) to improve and maintain individual dwellings.

Colleges and Trade Schools. Institutions of higher education providing curricula of a general, religious, or professional nature, typically granting recognized degrees. Includes junior colleges, business and computer schools, management training, vocational education, and technical and trade schools.

Parks and Recreational Facilities. Non-commercial facilities that provide open space and/or recreational opportunities to the public. Includes parks, community gardens, community centers, passive and active open space, wildlife preserves, playing fields, tennis courts, swimming pools, gymnasiums, and other similar facilities.
"Adult businesses" include but are not limited to adult bookstores, adult video stores, adult novelty stores, adult arcades, adult motels, adult theaters, adult entertainment enterprises, adult cabarets, escort agencies, massage parlors, nude modeling studios; or places which engage in or allow couch dancing, topless dancing, nude or semi-nude mud wrestling or similar businesses.

Large Commodity Retail. A retail use where more than seventy-five percent of the gross floor area is used for display, sales, and related storage of bulky commodities, and which typically generate a demand for fewer parking spaces than do other types of retail uses. Includes retail sail of carpeting

4 and floor covering; catalog and mail order sales; construction equipment and machinery; garden and farm equipment; heating, ventilating, air conditioning, and other mechanical equipment and supplies; kitchen, bathroom and plumbing appliances, equipment, and supplies; lumber and building materials; office furniture, equipment, and machinery, including computers; and household furniture.

Professional Offices. A place of employment occupied by businesses providing professional, executive, management, or administrative services. Includes offices for accountants, architects, advertising agencies, insurance agents, attorneys, commercial art and design services, non-retail financial institutions, real estate agents, news services, photographers, engineers, employment agencies, real-estate agents, and other similar professions. Excludes "medical offices and clinics." Allowing Medical Offices and Clinics in Industrial Zones The draft ordinance proposes to amend the Industrial Land Use Regulations to:
 Allow Medical Offices and Clinics less than 20,000 square feet as a permitted use in the IL (Light Industrial), CI (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.
 Allow Medical Offices and Clinics of 20,000 square feet or more as a conditional use in the IL (Light Industrial) zoning district and as a permitted use in the IC (Commercial Industrial), IO (Light Office Industrial) and IC (Campus Industrial) zoning districts.

The proposed allowance of Medical Offices and Clinics in the industrial districts will be in addition to their present allowance in the commercial zoning districts (Administrative Use Permit required in CH (Highway Commercial).

The ordinance is proposed because the existing prohibition of medical offices and clinics within light industrially zoned areas is not aligned or consistent with City Council and community priorities to attract and grow medical services in Morgan Hill. Specifically, General Plan Policy SSI-11.3 encourages the provision of a full range of medical services in the City, including an acute care hospital. Additionally, over the past several months, there have been several inquiries for medical uses looking to locate in Morgan Hill. Nearly all the inquires have been on land, or within buildings, designated as Light Industrial which does not currently allow for this use. The proposed ordinance will further facilitate new investments in Morgan Hill for specialized medical practices, rehabilitative care, imaging, and urgent care.

The proposed requirement for a CUP for medical offices and clinics more than 20,000 square feet is to provide the Planning Commission the opportunity to address the potential over-concentration of medical uses in the IL (Light Industrial) zoning district. Based on a sampling of medical office spaces currently on the market, the average medical office unit space is approximately 2,500 square feet, within a 20,000 square foot building.

Legal Nonconforming Uses
Upon adoption of the proposed ordinance amendments, previously allowed and conditional uses that are no longer allowed will become “legal non-conforming” uses. Section 18.68.060 (Nonconforming Use of Structures) of the Zoning Code will apply to any uses that are nonconforming upon adoption of the proposed ordinance.

18.68.060 Nonconforming use of structures.

A. Change in Ownership, Tenancy, or Management. A change in ownership, tenancy, or management of a nonconforming use shall not affect its legal nonconforming status.

B. Resuming a Nonconforming Use. A nonconforming use changed to a conforming

4 use shall not return to a nonconforming use.

C. Replacement of a Nonconforming Use. A nonconforming use may not be replaced by another nonconforming use.

D. Intensification of Use.

1. The enlargement of a structure or site occupied by a nonconforming use, or the intensification in any way of the operation of a nonconforming use, shall require the approval of an administrative use permit.

2. To approve a proposed intensification to a nonconforming use, the Community Development Director shall make all administrative use permit findings (Section 18.108.020) in addition to the findings in Section 18.68.080 (Findings).

E. Discontinuation of Use. A nonconforming use discontinued for six consecutive months or for twelve months during any two-year period shall not be reestablished and may be replaced only by a conforming use.

F. Uses Without Required Permits. A legally established use which is allowed in a zoning district, but which lacks a required permit (e.g., administrative use permit, conditional use permit) shall be considered a nonconforming use until the use receives the permit as required by the zoning code.

FINDINGS:

The proposed Zoning Amendment has been analyzed with respect to consistency with the: 1) General Plan; 2) Zoning Ordinance; and 3) California Environmental Quality Act.

1. General Plan
The proposed amendments are consistent with the General Plan as the amendments implement the following Goals and Policies:

GOAL CNF-17 Adequate land for maintaining and focusing industrial development in economically and geographically strategic locations.

Policy CNF-17.1 Industrial Land Conversion. Discourage the conversion of property designated for industrial to non-industrial uses.

Policy CNF-17.2 Industrial Land Use Conflicts. Ensure proposed new uses adjacent to industrial uses do not introduce land use conflicts that would adversely impact industrial activities.

GOAL HC-7 Access for all residents to health care facilities and other important community health amenities.

Policy ED-3.1 Business Retention, Expansion, and Attraction Efforts. Encourage retention and expansion of existing businesses, and attract new businesses, that:
• Generate revenue to the City General Fund (such as retail and point-of-sale manufacturing).
• Help provide greater fiscal strength and stability to the City; • Add industry diversity to the local economy.

4 • Stimulate other businesses to develop in the city.
• Augment or provide a service/amenity presently needed or lacking in the community, including higher education and medical services opportunities; and • Offer higher-paying, quality jobs for local residents.

Policy SSI-11.3 Medical Services. Encourage provision of a full range of medical services in the city, including an acute care hospital.

The proposed text amendments will implement many General Plan Goals and Policies and protect public health through the further restriction of potentially incompatible uses within industrial areas and increase access to health services for Morgan Hill residents.

2. Zoning Ordinance
The purpose of the Zoning Code is to implement the General Plan and to protect the public health, safety, and welfare. The City may approve a Zoning Amendment only if the following findings are made:
a. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

Consistent
The proposed text amendments will implement many General Plan Goals and Policies, including those aimed at preserving industrial land and encouraging medical services as described above. b. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

Consistent
The proposed text amendments will protect public health through the further restriction of potentially incompatible uses within industrial areas and increase the access to health services for Morgan Hill residents.
c. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

Consistent
The proposed text amendments will not create any internal inconsistencies with any other zoning code provisions, including the permitted uses in the Industrial and Commercial zoning districts.

CONCLUSION:

The proposed Zoning Code amendments will further support Morgan Hill's Industrial Preservation and Optimization Policy to protect and maximize the City’s limited supply of industrial (employment) land that is critical to the City’s future economic vitality and sustainability and provide greater opportunity for medical uses to locate in Morgan Hill.

CEQA (California Environmental Quality Act):

This ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.;

4 COMMUNITY ENGAGEMENT:

Proposed changes to the allowed uses in the Industrial zoning districts were discussed with the Planning Commission on September 22, 2020, and March 9, 2021. A 10-Day public hearing notice was published in the January 28, 2022 edition of the Morgan Hill Times pursuant to Government Code sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media. Staff also shared the proposed Zoning Code changes at the Morgan Hill Chamber of Commerce Economic Development Committee on January 13, 2022 and via a virtual City of Morgan Hill Townhall meeting on January 27, 2022.

RESOLUTION NO. 22-03

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF MORGAN HILL RECOMMENDING

APPROVAL OF MUNICIPAL CODE AMENDMENT
(ZA2021-0008) TO TITLE 18, DIVISION I, ZONING CODE
AMENDING SECTION 18.26.020 (LAND USE
REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL

ZONING DISTRICTS) TO MODIFY THE LAND USES
PERMITTED IN THE INDUSTRIAL ZONING DISTRICTS.

WHEREAS, this proposed Ordinance (Zoning Amendment ZA2021-0008) was considered by the Planning Commission of the City of Morgan Hill at its regular meeting of February 8, 2022;
WHEREAS, the Planning Commission has reviewed recommendations contained in the February 8, 2022, staff report on this item;
WHEREAS, the amendments proposed by this Ordinance are necessary to aid in preserving the City’ limited supply of Industrial Land and; WHEREAS, this ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.; and
WHEREAS, testimony received at a duly noticed public hearing, along with exhibits and other materials have been considered in the review process.

NOW, THEREFORE, THE MORGAN HILL PLANNING COMMISSION DOES RESOLVE AS FOLLOWS:

SECTION 1. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

City of Morgan Hill
Resolution No. 22-03

The proposed text amendments will implement many General Plan Goals and Policies including those aimed at preserving industrial land and encouraging medical services.

SECTION 2. The proposed amendments will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

The proposed text amendments will protect public health through the further restriction of potentially incompatible uses within industrial areas and increase the access to health services for Morgan Hill residents.

SECTION 3. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

The proposed text amendments will not create any internal inconsistencies with any other zoning code provisions including the permitted uses in the Industrial and Commercial zoning districts.

SECTION 4. The Planning Commission hereby recommends approval of changes to the text of the Morgan Hill Municipal Code amending section 18.26.020 (land use regulations) of chapter 18.26 (Industrial Zoning Districts) to modify the land uses permitted in the industrial zoning districts which are shown by strike-out text for deletions and underline text for additions. All text amendments recommended to be made as shown in the draft ordinance (Attachment 2 of the staff report).

PASSED AND ADOPTED THIS 8th DAY OF FEBRUARY 2022, AT A REGULAR MEETING OF THE PLANNING COMMISSION BY THE FOLLOWING VOTE:

AYES: COMMISSIONERS:

NOES: COMMISSIONERS:

ABSTAIN: COMMISSIONERS:

ABSENT: COMMISSIONERS:

ATTEST: APPROVED:
_______________________________
JENNA LUNA, Deputy City Clerk MALISHA KUMAR, Chair
Date:

ORDINANCE NO. , NEW SERIES

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL AMENDING TITLE 18, DIVISION I,
ZONING CODE SECTION 18.26.020 (LAND USE
REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL

ZONING DISTRICTS) TO MODIFY THE LAND USES
PERMITTED IN THE INDUSTRIAL ZONING DISTRICTS.

THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES ORDAIN AS FOLLOWS:

Section 1. Section 18.26.020 (Land Use Regulations) of Chapter 18.26 (Industrial Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows (additions in underline, deletions in strikeout):

18.26.020 Land use regulations.

A. Permitted Land Uses. Table 18.26-1 identifies land uses permitted in the industrial zoning districts.

Table 18.26-1 Permitted Land Uses in the Industrial Zoning Districts Key
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit required
— Use not allowed
Zoning District Additional
Regulations

CI IO IC IL IG
Residential Uses
Caretaker Quarters — — — C C
Public and Quasi-Public Uses
Colleges and Trade Schools C C C C C —
Community Assembly C — — C — C —
Instructional Services A — — — —
Medical Offices and Clinics

≤ 20,000 sq. ft. AP —P —P P —
> 20,000 sq. ft. AP —P —P C —
Parks and Recreational Facilities C — — C C —
Public Safety Facilities C — — C C —
Commercial Uses
Adult Businesses — — P P C — 18.92.020
Animal-Related Commercial Uses
Animal Boarding C — — C C
Veterinarian Clinics and Hospitals A A A C C
Banks and Financial Institutions C [4] — — — —
Business Support Services P C P P P
Cinemas and Theaters A — — — —
Commercial Recreation, Indoor
≤ 15,000 sq. ft. P C C C — C —
> 15,000 sq. ft. C C C C — C —
Eating and Drinking Uses
Restaurants, Fast Food C [4] —
[5]
—
[5]
—
[5]
—
[5]
Restaurants, Sit-Down C [4] —
[5]
—
[5]
—
[5]
—
[5]
Tasting Rooms P [6] — — A [6] A [6]
Lodging Facilities
Hotels and Motels P — — — —
Mini-Storage — — — C C — 18.92.100
Personal Service C [4] — — — —

[5] [5] [5] [5]
Plant Nurseries C — — P P
Professional Offices P P P P P —
Retail
Building Materials C — — P P
Convenience Markets C [4] —
[5]
—
[5]
—
[5]
—
[5]
General Retail C [4] —
[5]
—
[5]
—
[5]
—
[5]
Home Improvement Centers C — — C — C —
Large Commodity Retail C — — C — C —
Vehicle-Related Uses
Salvage and Wrecking — — — — C
Towing and Impound — — — C P
Vehicle Repair and Maintenance,
Major
— — — C P
Vehicle Repair and Maintenance,
Minor
— — — P P [1]
Vehicle Storage, Outdoor — — — C C 18.52.080.C
Wholesaling P — — P P
Industrial Uses
Construction and Material Yards C C C P P 18.26.030.C
Food and Beverage Production
< 5,000 sq. ft. [7] A [2] A [2] A [2] P [2] P [2]
5,000 sq. ft. to 10,000 sq. ft. [7] C [2] C [2] C [2] P [2] P [2] > 10,000 sq. ft. C C C P P

[2,8] [2,8]
Manufacturing, Light P C [3] C P P
Manufacturing, General — — — — C
Research and Development P P P P P
Warehousing and Distribution
Warehousing and Distribution,
Large
C C [3] C [3] C P
Warehousing and Distribution,
Small
C C [3] C [3] P P
Warehousing and Distribution
with Outdoor Storage
C — — C C
Heavy Distribution — — — — —
Parcel Sorting Facilities — — — — —
Parcel Hub Small < 75,000 sq. ft. — — — — —
Parcel Hub Large > 75,000 sq. ft. — — — — —
Recycling Facilities
Reverse Vending Machine P C C P P
Recycling Collection Facility C — — C C
Recycling Processing Facility — — — — C
Utilities, Major — — — C C
Wireless Communications Facilities See Chapter 18.96
Agriculture and Natural Resource
Uses
Crop Cultivation — —
Other Uses
Accessory Uses See Chapter 18.44

Temporary Uses See Section 18.92.150
Section 2. Severability. Should any provision of this 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 the ordinance.

Section 3. Effective Date; Posting. This Ordinance shall take effect on ____ ______, 20__. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.

This ordinance was introduced at a meeting of the City Council held on the _____ day of _____, 20__, and adopted at a meeting held on the _____ day of ________, 20__, 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:

ATTEST: APPROVED:
______________________________ _______________________________ MICHELLE BIGELOW, City Clerk RICHARD CONSTANTINE, Mayor

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 Ordinance No. , New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2021.

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

DATE: _____________________ _____________________________ MICHELLE BIGELOW, City Clerk

Land Use Existing Proposed Existing Proposed Existing Proposed Existing Proposed Existing Proposed Community Assembly CUP Not Permitted CUP Not Permitted CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Commercial Rec. Indoor< 15,000 sq. ft. CUP Not Permitted CUP Not Permitted Permitted Permitted CUP CUP CUP CUP>15,000 sq. ft. CUP Not Permitted CUP Not Permitted CUP CUP CUP CUP CUP CUPColleges/Trade Schools CUP Not Permitted CUP CUP CUP CUP CUP CUP CUP CUPParks & Rec. CUP Not Permitted CUP CUP CUP CUP Not Permitted Not Permitted Not Permitted Not PermittedAdult Businesses Permitted Not Permitted Permitted Permitted Not Permitted Not Permitted Not Permitted Not Permitted Permitted PermittedPublic Safety Facilities CUP Not Permitted CUP CUP CUP CUP Not Permitted Not Permitted Not Permitted Not PermittedMini-Storage CUP Not Permitted CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Not permitted Not PermittedHome Improvement Ctr. CUP Not Permitted CUP Not Permitted CUP CUP Not Permitted Not Permitted Not permitted Not PermittedLarge Commodity Retail CUP Not Permitted CUP CUP CUP CUP Not Permitted Not Permitted Not Permitted Not PermittedProfessional Offices Permitted Not Permitted Permitted Permitted Permitted Permitted Permitted Permitted Permitted PermittedMedical Office & Clinics<20,000 sq. ft. Not Permitted Not Permitted Not Permitted Permitted AUP Permitted AUP Permitted AUP Permitted≥ 20,000 sq. ft. Not Permitted CUP Permitted Permitted Permitted Permitted - Use allowed by right in Zoning. CUP - Conditional Use Permit Required AUP - Administrative Use Permit Required Proposed Change Proposed Industrial Zoning Changes
IG - General Industrial IL - Light Industrial CI - Commercial Industrial IO - Industrial Office IC - Campus Industrial INDUSTRIAL ZONING DISTRICTSGeneral Industrial (IG). The purpose of the IG zoning district is to provide areas for general industrial, manufacturing, wholesale and service uses needed by the city and region subject to regulations necessary to protect other nearby usesfrom hazards and noise and other disturbances.Light Industrial (IL). The purpose of the IL zoning district is to provide areas for research, administrative, lighter manufacturing, wholesale and heavy service commercial uses not suitable in commercial districts.

Commercial Industrial (CI). The purpose of the CI zoning district is to promote job-generating development of lands by allowing flexibility in the mix of industrial, office, and commercial uses that are compatible with existing development.Lodging uses (e.g., hotels) that support primary job generating uses within business districts are allowed.Light Office Industrial (IO). The purpose of the IO zoning district is to provide areas for mixed administrative and executive office uses in appropriate areas within the community.Campus Industrial (IC). The purpose of the IC zoning district is to provide an environment exclusively for and conducive to the development and protection of modern administrative facilities, research institutions and specialized manufacturing operations..

USE DEFINITIONS
Community Assembly. Facilities that provides space for public or private meetings or gatherings. Includes places of worship, community centers, meeting space for clubs and other membership organizations, social halls, union halls, banquet centers,and other similar facilities.Commercial Recreation, Indoor. A commercial recreation facility primarily located indoors. Includes gymnasiums, health clubs, bowling alleys, indoor tennis and racquet courts, indoor swimming pools, laser tag and other similar games.Excludes "instructional services."Manufacturing, General. Manufacturing of products from extracted or raw materials or recycled or secondary materials, or bulk storage and handling of such products and materials. Includes operations such as agriculture processing, apparel manufacturing; photographic processing plants; wood product manufacturing; paper manufacturing; chemical manufacturing."Adult businesses" include but are not limited to: adult bookstores, adult video stores, adult novelty stores, adult arcades, adult motels, adult theaters, adult entertainment enterprises, adult cabarets, escort agencies, massage parlors, nude modeling studios; or places which engage in or allow couch dancing, topless dancing, nude or semi-nude mud wrestling or similar businesses.

Large Commodity Retail. A retail use where more than seventy-five percent of the gross floor area is used for display, sales, and related storage of bulky commodities, and which typically generate a demand for fewer parking spaces than do other types of retail uses. Includes retail sail of carpeting and floor covering; catalog and mail order sales; construction equipment and machinery; garden and farm equipment; heating, ventilating, air conditioning, and othermechanical equipment and supplies; kitchen, bathroom and plumbing appliances, equipment, and supplies; lumber and building materials; office furniture, equipment, and machinery, including computers; and household furniture.

Home Improvement Centers. A retail establishment which carries a full line of building materials, appurtenances, and decorator items primarily for homeowners (not contractors) to improve and maintain individual dwellings.Excludes building supply yards and lumberyards for contractors and home builders.Medical Offices and Clinics. Facilities where medical, mental, dental, or other personal health services are provided on an outpatient basis using specialized equipment. Includes offices for physicians, dentists, and optometrists,diagnostic centers, blood banks and plaza centers, and emergency medical clinics offered exclusively on an out-patient basis. May include educational aspects such as medical instruction and/or training as well as house a laboratory, radiology/imaging, pharmacy, rehabilitation and other similar services as accessory uses. Excludes "hospitals."

From: Craig Erb
To: PC Public Comment
Subject: [EXTERNAL] Planning Commission 2/8/22
Date: Thursday, February 3, 2022 2:25:29 PM
Some people who received this message don't often get email from [email protected]. Learn why this is important
It appears Warehousing and Distribution, Large C C [3] C [3] C P is permitted or conditionally permitted according to proposed amendment to Section 18.26.020 (Land Use Regulations) and contrary to the "2020
City Council approved Zoning Code Amendments that prohibit stand-alone large fulfillment centers and parcel sorting centers".

WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, gift card numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.

Item # 4
AGENDA DATE: 01/8/22
SUPPLEMENTAL # 1

Industrial Preservation Workplan
Planning Commission
February 8, 2022

Economic Development’s Role
The Economic Development Element
establishes policy guidance to support
the community’s economic well-being.

Its strategies include diversifying the
local economy, increasing the quality
and quantity of available job
opportunities, decreasing the need for
commuting, creating a thriving
Downtown, and enhancing Morgan
Hill’s appeal as a tourist destination.
2035 General Plan
• Develop & maintain high-quality public
infrastructure & services
• Position Morgan Hill as a compelling
choice for companies by providing
flexibility
• Retain and attract businesses by
providing a business-friendly climate
• Create fiscal sustainability by cultivating
a diversified tax base
• Increase economic opportunity through
a robust and diverse range of business
activity

The Economic Blueprint identified 4 core industries, 13 strategies and 35 specific action items.
• Action #1: Adopting an employment (Industrial) land preservation policy, and
• Action #2: To strengthening General Plan language to prevent the conversion of Industrial lands.
2017 Economic Blueprint

Industrial
Preservation
• Economically Sustainable
• Jobs & Revenue
• Maintain Industrial Lands for Jobgenerating Uses
• Prevent incompatible uses

Industrial Preservation Meetings &
Action History
2020

ULI, SVEDA & PC
Workshops
Oct 2020
Council Prohibits
e-Commerce
Uses
April 2021
Council adopts
Urgency
Ordinance

• Morgan Hill continues to be an attractive destination for industrial users, including manufacturers, machine shops, and assembly businesses.
• Morgan Hill Ranch and Madrone Business Parks continue to be the strongest location for future industrial, R&D, and warehouse uses. • Demand for industrial buildings has outpaced building supply for manufacturing, machining, and assembly businesses.
• Morgan Hill firms have left to expand elsewhere, due to lack of industrial space availability.
• New construction is expensive and takes approximately 2 years to complete (plan, permit, construct).

Strategic Economics Study
Industrial Findings

• Vacant industrial (employment) land supply can accommodate 25 to 165 years of projected demand
• When currently entitled projects are considered, excluding Redwood Tech 101, the available land horizon drops to 19 to 95 years • Today, there are only 120 acres of industrial (employment) land remaining (vacant)
• 86.5 acres Light Industrial (IL)
• 6 acres General Industrial (IG)
• 27.5 acres Redwood Tech 101- planned and permitted
Strategic Economics Study
Industrial Findings

Industrial Land Preservation Strategies
➢ Use it. The best way to preserve industrial/employment lands is to use them for their industrial purpose.
➢ Revisit Policy CNF-17.1 language within the General Plan and replace ‘discourage’ with “prohibit” the conversion of industrial lands. ➢ Limit discretion of CUP uses in employment generating uses. ➢ Hold the line. Prioritize wanted uses such as OEM (original equipment manufacturer).
➢ Brand, market, and promote industrial parks.
➢ Incentivize industrial development. Explore how fee structures and taxes align with land use.
➢ Allow for mixed uses within industrial. Consider office or other uses. ➢ Consider post COVID-19 uses. The pandemic may create new products and uses that are not currently articulated in city codes. Be flexible to allow for industries and new operations.

In November 2020, the City
Council City Council adopts
Ordinance 2317 amending the
City's Industrial Zoning Code
prohibiting fulfillment centers,
defining Large Scale Projects and
moving review and approval
authority from City staff to
Planning Commission.

Addressed via Zoning Code
What actions has City taken?
✓ Fulfillment Centers Prohibited
✓ Sorting Centers Prohibited
✓ Last-mile (local) distribution Prohibited
✓ Large projects defined as >100 units or
>75,000 sq ft_
✓ Large projects now require public hearing
✓ Review & Approval authority for large
projects moved to Planning Commission

In April 2021, City Council
passed Urgency Ordinance
2320.

Addressed via Building Type
What actions has City taken?
✓ Changed/created definitions for:
• Dock-High-Door
• Dock-High-Door to Square Foot Ratio
• Ceiling Height
• Light Manufacturing
✓ Added Section 18.76.140 – Maximum Dock
High Door Ratio for a facility that has a floor
area of 75,000 square feet or greater and a
ceiling height of more than thirty-four (34)
feet over more than twenty-five (25) percent
of the floor area is 1 Dock-High-Door:25,000
square feet

Industrial
Ordinance
Replace existing Urgency
Ordinance 2320, which
sunsets April 2022, with
an adopted Industrial
Ordinance
Place a measure on the
November 2022 Ballot for
voter affirmation of the
adopted Industrial
Ordinance
Industrial
Preservation &
Optimization Policy
Encourage Innovation and
Manufacturing
Prohibit Stand-alone eCommerce Distribution &
Warehousing
Prohibit Conversions from
Industrial Land to non-job
generating uses
Encourage Conversions
from Commercial Land to
Industrial Land
Zoning Clean Up
Supports Industrial
Preservation &
Optimization Policy
Minimize incompatible
uses & CUPs
Encourage Conversions
from Commercial Land to
Industrial Land
Industrial Preservation Workplan

1 2
Industrial Preservation & Optimization
Policy
• In conjunction with the 2035 General Plan, Zoning Ordinance ZA2020-0003, and the Economic Blueprint, the policy will protect the City’s limited supply of industrial/employment land to support long term economic vitality.
• Identifies five key goals that provide direction and guidance when developing, implementing, and managing policies, programs, and projects, including implementation of the Zoning Code and General Plan, as they relate to industrial uses and industrial business parks. • Supports amending the current zoning code to minimize and reduce incompatible uses within the industrial lands.

1 3
Industrial Preservation & Optimization
Policy

1. Encourage the attraction and expansion of R&D, Office, and Advanced Manufacturing uses.

2. Prohibit stand-alone e-commerce Warehouse and Distribution uses.

3. Prohibit General Plan conversions of Industrial lands that cause a net loss of industrial employment lands.

4. Protect existing Industrial lands and business parks by prohibiting noncompatible uses such as community assembly and recreational uses, while expanding compatible uses.

5. Encourage conversion of Commercial Lands to Industrial Lands where appropriate.

1 4
Industrial Preservation & Optimization
Policy

STRATEGY ACTIONS
Encourage the attraction and expansion of R&D, Office, and Advanced Manufacturing uses.

Marketing, Messaging & Outreach
Development of Incentive
Programs
Prohibit stand-alone e-commerce Warehouse and Distribution uses. Industrial Ordinance Zoning Code
Prohibit General Plan conversions of Industrial lands that cause a net loss of industrial employment lands.

General Plan
Protect existing Industrial lands and business parks by prohibiting non-compatible uses such as community assembly and recreational uses, while expanding compatible uses.

Zoning Code
Explore conversion of Commercial Lands to Industrial Lands where appropriate.

Marketing, Messaging & Outreach
City-initiated GP Conversions

• Minimize and reduce incompatible uses
• Minimize CUPs in industrial zoned areas
• Expand opportunity for medical office and healthcare
Updating Zoning Code

IG - General Industrial IL - Light Industrial
Land Use Existing Proposed Existing Proposed
Community Assembly CUP Not Permitted CUP Not Permitted
Commercial Rec. Indoor
< 15,000 sq. ft. CUP Not Permitted CUP Not Permitted
>15,000 sq. ft. CUP Not Permitted CUP Not Permitted
Colleges/Trade Schools CUP Not Permitted CUP CUP
Parks & Rec. CUP Not Permitted CUP CUP
Adult Businesses Permitted Not Permitted Permitted Permitted Public Safety Facilities CUP Not Permitted CUP CUP
Mini-Storage CUP Not Permitted CUP CUP
Home Improvement Ctr. CUP Not Permitted CUP CUP
Large Commodity Retail CUP Not Permitted CUP CUP
Professional Offices Permitted Not Permitted Permitted Permitted Manufacturing, General CUP CUP Not Permitted Not Permitted Medical Office & Clinics
< 20,000 sq. ft. Not Permitted Not Permitted Not Permitted AUP > 20,000 sq. ft. Not Permitted CUP
Proposed Zoning Code Changes

CI - Commercial Industrial IO - Industrial Office IC - Campus Industrial Land Use Existing Proposed Existing Proposed Existing Proposed Community Assembly CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Commercial Rec. Indoor
< 15,000 sq. ft. Permitted Permitted CUP CUP CUP CUP
>15,000 sq. ft. CUP CUP CUP CUP CUP CUP
Colleges/Trade Schools CUP CUP CUP CUP CUP CUP
Parks & Rec. CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Adult Businesses Not Permitted Not Permitted Not Permitted Not Permitted Permitted Permitted Public Safety Facilities CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Mini-Storage Not Permitted Not Permitted Not Permitted Not Permitted Not permitted Not Permitted Home Improvement Ctr. CUP CUP Not Permitted Not Permitted Not permitted Not Permitted Large Commodity Retail CUP CUP Not Permitted Not Permitted Not Permitted Not Permitted Professional Offices Permitted Permitted Permitted Permitted Permitted Permitted Manufacturing, General Not Permitted Not Permitted Not Permitted Not Permitted Not Permitted Not Permitted Medical Office & Clinics
< 20,000 sq. ft. AUP Permitted AUP Permitted AUP Permitted > 20,000 sq. ft. Permitted Permitted Permitted
Proposed Zoning Code Changes

No Changes
(effective November 2020)

USE IL IG
Warehousing & Distribution
Warehousing and Distribution, Large C P
Warehousing and Distribution, Small P P
Warehousing and Distribution with Outdoor Storage C C
Heavy Distribution Not Allowed Not Allowed
Parcel Sorting Facilities Not Allowed Not Allowed
Parcel Hub Small Not Allowed Not Allowed
Parcel Hubs Large Not Allowed Not Allowed

1. Placed RG4MH Initiative on the ballot;

2. Adopted the collaborative ordinance as an “urgency ordinance”; and

3. Directed Planning Commission to review collaborative ordinance as a permanent ordinance and consider placement on ballot.

April 7, 2021 City Council Action
19 Industrial
Ordinance

Adds Section 18.76.140 – Maximum Dock High Door Ratio for a facility that has a floor area of seventy-five thousand (75,000) square feet or greater and a ceiling height of more than thirty-four (34) feet over more than twentyfive (25) percent of the floor area is 1 Dock-High-Door:25,000 square feet Change/create definitions for:
» Dock-High-Door
» Dock-High-Door to Square Foot Ratio
» Ceiling Height
» Light Manufacturing
Same as Urgency Ordinance
20 Industrial
Ordinance

2022 Schedule
21 Business &
Community
Outreach
January
Planning
Commission
February
City Council
March
City Places
Industrial
Ordinance
on
November
Ballot
MHRGC
Removes
Initiative
from
November
Ballot
Election
November 8

Questions

RESOLUTION NO. 22-03

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF MORGAN HILL RECOMMENDING

APPROVAL OF MUNICIPAL CODE AMENDMENT
(ZA2021-0008) TO TITLE 18, DIVISION I, ZONING CODE
AMENDING SECTION 18.26.020 (LAND USE
REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL

ZONING DISTRICTS) TO MODIFY THE LAND USES
PERMITTED IN THE INDUSTRIAL ZONING DISTRICTS.

WHEREAS, this proposed Ordinance (Zoning Amendment ZA2021-0008) was considered by the Planning Commission of the City of Morgan Hill at its regular meeting of February 8, 2022;
WHEREAS, the Planning Commission has reviewed recommendations contained in the February 8, 2022, staff report on this item and recommeded the following revisions; 1) Maintain the requirement that Home Improvement Centers obtain a Conditional Use Permit in the IL-Light Industrial Zoning District.
2) Require an Administrative Use Permit for Medical Office and Clinics of less than 20,000 square feet in the IL -Light Industrial zoning district.

WHEREAS, the amendments proposed by this Ordinance are necessary to aid in preserving the City’ limited supply of Industrial Land and; WHEREAS, this ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.; and
WHEREAS, testimony received at a duly noticed public hearing, along with exhibits and other materials have been considered in the review process.

City of Morgan Hill
Resolution No. 22-03

NOW, THEREFORE, THE MORGAN HILL PLANNING COMMISSION DOES RESOLVE AS FOLLOWS:

SECTION 1. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

The proposed text amendments will implement many General Plan Goals and Policies including those aimed at preserving industrial land and encouraging medical services.

SECTION 2. The proposed amendments will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

The proposed text amendments will protect public health through the further restriction of potentially incompatible uses within industrial areas and increase the access to health services for Morgan Hill residents.

SECTION 3. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

The proposed text amendments will not create any internal inconsistencies with any other zoning code provisions including the permitted uses in the Industrial and Commercial zoning districts.

SECTION 4. The Planning Commission hereby recommends approval of changes to the text of the Morgan Hill Municipal Code amending section 18.26.020 (land use regulations) of chapter 18.26 (Industrial Zoning Districts) to modify the land uses permitted in the industrial zoning districts which are shown by strike-out text for deletions and underline text for additions. All text amendments recommended to be made as shown in the draft ordinance (Attachment 2 of the staff report).

PASSED AND ADOPTED THIS 8
th DAY OF FEBRUARY 2022, AT A REGULAR
MEETING OF THE PLANNING COMMISSION BY THE FOLLOWING VOTE:

AYES: COMMISSIONERS: KUMAR, GONZALEZ-ESCOTO, MUELLER,

TANDA, DOWNEY, HABIB
NOES: COMMISSIONERS: NONE
ABSTAIN: COMMISSIONERS: NONE
ABSENT: COMMISSIONERS: NONE

City of Morgan Hill
Resolution No. 22-03

ATTEST: APPROVED:
_______________________________
JENNA LUNA, Deputy City Clerk MALISHA KUMAR, Chair
Date:

Malisha Kumar (Feb 11, 2022 09:39 PST) Feb 11, 2022 Page 534 of 558 Resolution No. 22-03 (Final)
Final Audit Report 2022-02-11
Created: 2022-02-11
By: Jenna Luna ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAO62byXbKJi3PcNRmLb9urb1dxS8KVOxX "Resolution No. 22-03 (Final)" History
Document created by Jenna Luna ([email protected]) 2022-02-11 - 3:16:15 PM GMT- IP address: 68.189.124.146 Document emailed to Malisha Kumar ([email protected]) for signature 2022-02-11 - 3:16:45 PM GMT
Email viewed by Malisha Kumar ([email protected]) 2022-02-11 - 3:36:43 PM GMT- IP address: 172.225.89.145 Document e-signed by Malisha Kumar ([email protected]) Signature Date: 2022-02-11 - 5:39:27 PM GMT - Time Source: server- IP address: 71.95.130.164 Agreement completed.
2022-02-11 - 5:39:27 PM GMT

ORDINANCE NO. , NEW SERIES

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF MORGAN HILL AMENDING TITLE 18, DIVISION I,
ZONING CODE SECTION 18.26.020 (LAND USE
REGULATIONS) OF CHAPTER 18.26 (INDUSTRIAL

ZONING DISTRICTS) TO MODIFY THE LAND USES
PERMITTED IN THE INDUSTRIAL ZONING DISTRICTS.

THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES ORDAIN AS FOLLOWS:

Section 1. Section 18.26.020 (Land Use Regulations) of Chapter 18.26 (Industrial Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows (additions in underline, deletions in strikeout):

18.26.020 Land use regulations.

A. Permitted Land Uses. Table 18.26-1 identifies land uses permitted in the industrial zoning districts.

Table 18.26-1 Permitted Land Uses in the Industrial Zoning Districts Key
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit required
— Use not allowed
Zoning District Additional
Regulations

CI IO IC IL IG
Residential Uses
Caretaker Quarters — — — C C
Public and Quasi-Public Uses
Colleges and Trade Schools C C C C C —
Community Assembly C — — C — C —
Instructional Services A — — — —
Medical Offices and Clinics

≤ 20,000 sq. ft. AP —P —P A —
> 20,000 sq. ft. AP —P —P C —
Parks and Recreational Facilities C — — C C —
Public Safety Facilities C — — C C —
Commercial Uses
Adult Businesses — — P P C — 18.92.020
Animal-Related Commercial Uses
Animal Boarding C — — C C
Veterinarian Clinics and Hospitals A A A C C
Banks and Financial Institutions C [4] — — — —
Business Support Services P C P P P
Cinemas and Theaters A — — — —
Commercial Recreation, Indoor
≤ 15,000 sq. ft. P C C C — C —
> 15,000 sq. ft. C C C C — C —
Eating and Drinking Uses
Restaurants, Fast Food C [4] —
[5]
—
[5]
—
[5]
—
[5]
Restaurants, Sit-Down C [4] —
[5]
—
[5]
—
[5]
—
[5]
Tasting Rooms P [6] — — A [6] A [6]
Lodging Facilities
Hotels and Motels P — — — —
Mini-Storage — — — C C — 18.92.100
Personal Service C [4] — — — —

[5] [5] [5] [5]
Plant Nurseries C — — P P
Professional Offices P P P P P —
Retail
Building Materials C — — P P
Convenience Markets C [4] —
[5]
—
[5]
—
[5]
—
[5]
General Retail C [4] —
[5]
—
[5]
—
[5]
—
[5]
Home Improvement Centers C — — C— C —
Large Commodity Retail C — — C — C —
Vehicle-Related Uses
Salvage and Wrecking — — — — C
Towing and Impound — — — C P
Vehicle Repair and Maintenance,
Major
— — — C P
Vehicle Repair and Maintenance,
Minor
— — — P P [1]
Vehicle Storage, Outdoor — — — C C 18.52.080.C
Wholesaling P — — P P
Industrial Uses
Construction and Material Yards C C C P P 18.26.030.C
Food and Beverage Production
< 5,000 sq. ft. [7] A [2] A [2] A [2] P [2] P [2]
5,000 sq. ft. to 10,000 sq. ft. [7] C [2] C [2] C [2] P [2] P [2] > 10,000 sq. ft. C C C P P

[2,8] [2,8]
Manufacturing, Light P C [3] C P P
Manufacturing, General — — — — C
Research and Development P P P P P
Warehousing and Distribution
Warehousing and Distribution,
Large
C C [3] C [3] C P
Warehousing and Distribution,
Small
C C [3] C [3] P P
Warehousing and Distribution
with Outdoor Storage
C — — C C
Heavy Distribution — — — — —
Parcel Sorting Facilities — — — — —
Parcel Hub Small < 75,000 sq. ft. — — — — —
Parcel Hub Large > 75,000 sq. ft. — — — — —
Recycling Facilities
Reverse Vending Machine P C C P P
Recycling Collection Facility C — — C C
Recycling Processing Facility — — — — C
Utilities, Major — — — C C
Wireless Communications Facilities See Chapter 18.96
Agriculture and Natural Resource
Uses
Crop Cultivation — —
Other Uses
Accessory Uses See Chapter 18.44

Temporary Uses See Section 18.92.150
Section 2. Severability. Should any provision of this 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 the ordinance.

Section 3. Effective Date; Posting. This Ordinance shall take effect on ____ ______, 20__. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.

This ordinance was introduced at a meeting of the City Council held on the _____ day of _____, 20__, and adopted at a meeting held on the _____ day of ________, 20__, 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:

ATTEST: APPROVED:
______________________________ _______________________________ MICHELLE BIGELOW, City Clerk RICHARD CONSTANTINE, Mayor

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 Ordinance No. , New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2021.

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

DATE: _____________________ _____________________________ MICHELLE BIGELOW, City Clerk

18 CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2022
PREPARED BY:

Jennifer Carman, Development Services Director
APPROVED BY: City Manager
ADOPTION AND RATIFICATION OF ORDINANCE NO. 2320

PREVIOUSLY ADOPTED AS AN URGENCY ORDINANCE

RECOMMENDATION(S)

1. Open/close the public hearing;

2. Waive first and second reading of the Ordinance;

3. Introduce Ordinance; and

4. Adopt resolution placing Ordinance on the November 2022 ballot.

Estimated Time: 15 Minutes

COUNCIL PRIORITIES, GOALS & STRATEGIES
Preserving and Cultivating Public Trust
REPORT NARRATIVE:

Since 2020, the City of Morgan Hill has taken steps to amend industrial sections of the Zoning Code to prevent standalone e-commerce uses. In November, 2020, the City Council adopted Ordinance 2317 amending the City's industrial sections of the Zoning Code prohibiting fulfillment centers, defining large-scale projects and moved review authority from City staff to the Planning Commission for projects of a certain size.

On March 3, 2021, the City Council certified the sufficiency of the Morgan Hill Responsible Growth Coalition’s (RG4MH) Initiative Petition. The City Council also directed staff to work with the Morgan Hill Responsible Growth Coalition (MHRGC) to clarify language and develop an ordinance that meets the Initiative’s intent while reducing impacts to existing businesses. Since the March 3rd meeting, City staff and the MHRGC collaborated and developed an ordinance that further protects Morgan Hill from potential large truck/high traffic uses.

The collaborative Ordinance was passed on April 7, 2021 as Urgency Ordinance 2320, prohibiting certain types of buildings that meet three cumulative characteristics of dockhigh-doors, dock-high-door to square foot ratio and ceiling height. The urgency ordinance also amended the definition of Light Manufacturing. Section 18.76.140 was

18 added limiting buildings to a maximum Dock-High-Door Ratio for a facility that has a floor area of 75,000 square feet or greater and a ceiling height of more than thirty-four (34) feet over more than twenty-five (25) percent of the floor area to one (1) Dock-HighDoor for every 25,000 square feet. These building-type restrictions aim to limit the possibility of distribution/e-commerce type of uses. The Urgency Ordinance sunsets in April 2022 and this proposed Ordinance replaces the Urgency Ordinance with a permanent Zoning Amendment. The City Council has the ability to place the ordinance on the ballot as part of their consideration. A resolution that places the Ordinance on the ballot is included as an attachment.

The ratification ordinance brings forward the original language used in Ordinance 2320.

It creates a new Section under Chapter 18.76 "Performance Standards" to create a maximum dock-high door ratio that reads as follows: 18.76.140 - Maximum Dock High Door Ratio The maximum Dock High Door to Square Foot Ratio for a facility that has a floor area of seventy-five thousand (75,000) square feet or greater and a ceiling height of more than thirty-four (34) feet over more than twenty-five (25) percent of the floor area is 1:25,000. The addition of this prevents any building that would encompass all three elements - size, ceiling height and more dock doors than 1 per 25,000 square feet from being built in the City.

The following definitions were also added to Section 18.128.020 of the Zoning Ordinance with the Urgency Ordinance:
 Ceiling Height. The clear vertical distance from the finished floor to the finished ceiling. If the ceiling is unfinished, the ceiling height is the distance from the floor to the lowest projecting beams, joists, or truss work.
 Dock-High-Door. An opening to the outside of a building used to interface with trucks for the loading and/or unloading of goods, products, merchandise or wares of any type and where the bottom of the opening is not at ground level but rather elevated by twenty-four (24) inches or more.
 Dock-High-Door-to-Square-Foot Ratio. The ratio of the total number of DockHigh-Doors that a building has to the total square feet of building floor area.

The Urgency Ordinance also updated the definition of Light Manufacturing in Section

18.124.050 to clarify the meaning of Assembly as follows:

D. Manufacturing, Light. The manufacture, predominantly from previously prepared materials, of finished products or parts, including processing, fabrication, assembly, treatment, and packaging of such products, and incidental storage, sales and distribution of such products, but excluding basic industrial processing and custom manufacturing. Includes manufacture of electric and electronic instruments and devices.

Excludes saw and planing mill sand manufacturing uses involving primary production of wood, metal or chemical products from raw materials. For purpose of this definition, the term "Assembly" includes creation of a component or end item made from a number of parts and subassemblies. Assembly does not include the putting together of kits, gift baskets, or packaging items produced elsewhere for purposes of e-commerce or of

18 wholesale trading.

COMMUNITY ENGAGEMENT:

A 10-Day public hearing notice was published in the February 18, 2022 edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media. Staff also shared the information at the Morgan Hill Chamber of Commerce Economic Development Committee on January 13, 2022 and via a virtual City of Morgan Hill Townhall meeting on January 27, 2022.

ALTERNATIVE ACTIONS:

City Council could choose not to ratify Ordinance 2320 into a permanent Ordinance.

The Urgency Ordinance expires on April 7, 2022. Without adoption of the permanent Ordinance, the Ordinance cannot be placed on the ballot. The original Ordinance created by the MHRGC via the initiative process would then move on to the voters for consideration in November 2022.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On September 22, 2020, the Planning Commission recommended changes to the Zoning Ordinance that included language implementing provisions of the Initiative related to the review of large projects. The September 22 recommendation also prohibited all large-scale e-commerce distribution uses but would have allowed some local delivery.

On October 28, 2020, the City Council introduced a Zoning Ordinance amendment adopting the Planning Commission’s recommendations and prohibiting local ecommerce delivery uses. This ordinance was adopted on November 18, 2020.

On March 3, 2021, the City Council certified the sufficiency of the Morgan Hill Responsible Growth Coalition’s (RG4MH) Initiative Petition.

On April 7, 2021, the City Council passed Urgency Ordinance 2320, prohibiting certain types of buildings that meet three cumulative characteristics of dock-high-doors, dock-high-door to square foot ratio and ceiling height and adopted a resolution placing the Morgan Hill Responsible Growth Coalition Initiative petition on the November 2022 ballot.

On February 8, 2022, Planning Commission unanimously approved Resolution 22-04 recommending approval of the ratification Ordinance.

FISCAL AND RESOURCE IMPACT:

Election Cost: If Council elects to place the Initiative on the ballot, it will be placed on the next regular municipal election scheduled for November 2022. The cost for the November 2022 ballot measure is unknown at this time. In November 2020, the estimated cost for placing a ballot measure was approximately $60,000. It is safe to assume the additional ballot measure cost in November 2022 would likely be more, if not similar. Ballot measure costs are in addition to the regularly scheduled election

18 costs of two Council members and one Mayor, estimated to be $150,000 or more. Costs will be added in the next budget cycle.

Resource Impact: Thus far, staff has been able to accommodate the additional work due to the urgency ordinance within its existing workplan.

Ordinance Impact: At Council’s direction, staff focused efforts on collaborating with the Morgan Hill Responsible Growth Coalition.

CEQA (California Environmental Quality Act):

This ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.

RESOLUTION NO. 22-04

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF MORGAN HILL RECOMMENDING

APPROVAL OF AN ORDINANCE PERMANENTLY
ADOPTING AND RATIFYING ORDINANCE NUMBER 2320

PREVIOUSLY ADOPTED AS AN URGENCY ORDINANCE
ADDING SECTION 18.76.140 (" MAXIMUM DOCK HIGH
DOOR RATIO") TO CHAPTER 18.76 PERFORMANCE
STANDARDS") AND AMENDING SECTIONS 18. 124.050
("INDUSTRIAL USES") OF CHAPTER 18.124 (" LAND USE
DEFINITIONS") AND 18.128.020 (“DEFINITIONS") OF
CHAPTER 18.128 ("GENERAL TERMS") OF TITLE 18
("ZONING") OF THE MORGAN HILL MUNICIPAL CODE TO

CREATE A MAXIMUM DOCK - HIGH -DOOR RATIO FOR
CERTAIN STRUCTURES AND TO ADD DEFINITIONS.

WHEREAS, this proposed Ordinance (Zoning Amendment ZA2021-0008) was considered by the Planning Commission of the City of Morgan Hill at its regular meeting of February 8, 2022;
WHEREAS, the Planning Commission has reviewed recommendations contained in the February 8, 2022, staff report on this item;
WHEREAS, this ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.; and
WHEREAS, testimony received at a duly noticed public hearing, along with exhibits and other materials have been considered in the review process.

NOW, THEREFORE, THE MORGAN HILL PLANNING COMMISSION DOES RESOLVE AS FOLLOWS:

City of Morgan Hill
Resolution No. 22-04

SECTION 1. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

The proposed text amendments will implement many General Plan Goals and Policies including those aimed at orderly development and a balanced community.

SECTION 2. The proposed amendments will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

The proposed text amendments will prevent land uses that may create conflicts within the industrial areas of the City.

SECTION 3. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

The proposed text amendments will not create any internal inconsistencies with any other zoning code provisions including the permitted uses in the Industrial and Commercial zoning districts.

SECTION 4. The Planning Commission hereby recommends approval and ratification of Urgency Ordinance 2320 (Attachment 1).

PASSED AND ADOPTED THIS 8
th DAY OF FEBRUARY 2022, AT A REGULAR
MEETING OF THE PLANNING COMMISSION BY THE FOLLOWING VOTE:

AYES: COMMISSIONERS: KUMAR, GONZALEZ-ESCOTO, MUELLER,

TANDA, DOWNEY, HABIB
NOES: COMMISSIONERS: NONE
ABSTAIN: COMMISSIONERS: NONE
ABSENT: COMMISSIONERS: NONE
ATTEST: APPROVED:
_______________________________
JENNA LUNA, Deputy City Clerk MALISHA KUMAR, Chair
Date:

5 PLANNING COMMISSION STAFF REPORT
MEETING DATE: February 8, 2022
PREPARED BY:

Jennifer Carman, Development Services Director
APPROVED BY: Jennifer Carmen
ZA2022-0001 - ADOPTION AND RATIFICATION OF ORDINANCE NO. 2320 PREVIOUSLY

ADOPTED AS AN URGENCY ORDINANCE

RECOMMENDATION(S)

1. Open/close public hearing; and,

2. Adopt Resolution recommending City Council approval and ratification of the proposed Ordinance.

PROJECT INFORMATION:

A draft ordinance is being proposed that would amend the Industrial Land Use Regulations. The proposed amendments would implement the Morgan Hill General Plan, 2017 Morgan Hill Economic Blueprint and the pending Industrial Land Preservation and Optimization City Council Policy.

BACKGROUND:

Since 2020, the City of Morgan Hill has taken steps to amend industrial sections of the Zoning Code to prevent standalone e-commerce uses. In November, 2020, the City Council adopted Ordinance 2317 amending the City's industrial sections of the Zoning Code prohibiting fulfillment centers, defining large-scale projects and moved review authority from City staff to the Planning Commission for projects of a certain size. On April 7, 2021, the City Council passed Urgency Ordinance 2320, prohibiting certain types of buildings that meet three cumulative characteristics of dock-high-doors, dock-high-door to square foot ratio and ceiling height. The urgency ordinance also amended the definition of Light Manufacturing.

Section 18.76.140 was added limiting buildings to a maximum Dock-High-Door Ratio for a facility that has a floor area of 75,000 square feet or greater and a ceiling height of more than thirty-four (34) feet over more than twenty-five (25) percent of the floor area to one (1) Dock-High-Door for every 25,000 square feet. These building-type restrictions aim to limit the possibility of distribution/e-commerce type of uses.

The Urgency Ordinance sunsets in April 2022 and this proposed Ordinance replaces the Urgency Ordinance with a permanent Zoning Amendment. The City Council has the ability to place the ordinance on the ballot as part of their consideration.

PROJECT DESCRIPTION:

The Urgency Ordinance creates a new Section under Chapter 18.76 "Performance Standards" to create a maximum dock-high door ratio that reads as follows:

18.76.140 - Maximum Dock High Door Ratio
The maximum Dock High Door to Square Foot Ratio for a facility that has a floor area of seventy-five thousand (75,000) square feet or greater and a ceiling height of more than thirty-four (34) feet over more than twenty-five (25) percent of the floor area is 1:25,000
The addition of this prevents any building that would encompass all three elements - size, ceiling height and more dock doors than 1 per 25,000 square feet from being built in the City.

The following definitions were also added to Section 18.128.020 of the Zoning Ordinance with the Urgency Ordinance:

5  Ceiling Height. The clear vertical distance from the finished floor to the finished ceiling. If the ceiling is unfinished, the ceiling height is the distance from the floor to the lowest projecting beams, joists, or truss work.
 Dock-High-Door. An opening to the outside of a building used to interface with trucks for the loading and/or unloading of goods, products, merchandise or wares of any type and where the bottom of the opening is not at ground level but rather elevated by twenty-four (24) inches or more.  Dock-High-Door-to-Square-Foot Ratio. The ratio of the total number of Dock-High-Doors that a building has to the total square feet of building floor area.

The Urgency Ordinance also updated the definition of Light Manufacturing in Section 18.124.050 to clarify the meaning of Assembly as follows:

D. Manufacturing, Light. The manufacture, predominantly from previously prepared materials, of finished products or parts, including processing, fabrication, assembly, treatment, and packaging of such products, and incidental storage, sales and distribution of such products, but excluding basic industrial processing and custom manufacturing. Includes manufacture of electric and electronic instruments and devices. Excludes saw and planing mill sand manufacturing uses involving primary production of wood, metal or chemical products from raw materials. For purpose of this definition, the term "Assembly" includes creation of a component or end item made from a number of parts and subassemblies. Assembly does not include the putting together of kits, gift baskets, or packaging items produced elsewhere for purposes of e-commerce or of wholesale trading.

FINDINGS:

The proposed Zoning Amendment has been analyzed with respect to consistency with the: 1) General Plan and 2) Zoning Ordinance.

1. General Plan
The proposed amendments are consistent with the General Plan as the amendments implement the following Policies:

Policy CNF-2.1 Orderly Development. Promote the orderly development of the City, with concentric growth and infill of existing developed areas.

Policy CNF-2.2 A Balanced Community. Plan for the needs of all socioeconomic segments of the community, encouraging a balance and match in jobs and housing within the City.

The proposed ordinance will implement General Plan Goals and Policies and would prevent uses that create potential land use conflicts within the City.

2. Zoning Ordinance
The purpose of the Zoning Code is to implement the General Plan and to protect the public health, safety, and welfare. The City may approve a Zoning Amendment only if the following findings are made:
a. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by Government Code Section 65860.

Consistent
The proposed text amendments will implement many General Plan Goals and Policies including those aimed at orderly development and a balanced community. b. The proposed amendment will not be detrimental to the public interest, health, safety,

5 convenience, or welfare of the City.

Consistent
The proposed text amendments will prevent land uses that may create conflicts within the industrial areas of the City.
c. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

Consistent
The proposed text amendments will not create any internal inconsistencies with any other zoning code provision including the permitted uses in the Industrial and Commercial zoning districts.

CONCLUSION:

The proposed Ordinance will further support Morgan Hill's Industrial development and prevents future developments from being constructed with all the physical characteristics of a Distribution Center. This is directly in line with the goals to protect and maximize the City’s limited supply of industrial (employment) land that is critical to the City’s future economic vitality and sustainability.

CEQA (California Environmental Quality Act):

This ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, as the proposed text amendments to the Morgan Hill Zoning Code is not a project with potential for causing a significant effect on the environment requiring California Environmental Quality Act (CEQA) analysis. Additionally, on July 27, 2016, the City Council certified an environmental impact report (EIR) for the Morgan Hill 2035 General Plan. This ordinance is consistent with, and implements, the General Plan and therefore was analyzed in the EIR for the 2035 General Plan. Pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act is required.

COMMUNITY ENGAGEMENT:

A 10-Day public hearing notice was published in the January 28, 2022 edition of the Morgan Hill Times pursuant to Government Code Sections 65090-65096. Notices were also provided on the City’s 411, City’s website, and via social media. Staff also shared the proposed Zoning Code changes at the Morgan Hill Chamber of Commerce Economic Development Committee on January 13, 2022 and via a virtual City of Morgan Hill Townhall meeting on January 27, 2022.

ORDINANCE NO. , NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL

PERMANENTLY ADOPTING AND RATIFYING
ORDINANCE NUMBER 2320 PREVIOUSLY ADOPTED

AS AN URGENCY ORDINANCE ADDING SECTION

18.76.140 (" MAXIMUM DOCK HIGH DOOR RATIO")
TO CHAPTER 18.76 PERFORMANCE STANDARDS")
AND AMENDING SECTIONS 18. 124.050
("INDUSTRIAL USES") OF CHAPTER 18.124 (" LAND
USE DEFINITIONS") AND 18.128.020 (“DEFINITIONS")
OF CHAPTER 18.128 ("GENERAL TERMS") OF TITLE
18 ("ZONING") OF THE MORGAN HILL MUNICIPAL

CODE TO CREATE A MAXIMUM DOCK - HIGH -

DOOR RATIO FOR CERTAIN STRUCTURES AND TO
ADD DEFINITIONS.

THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES ORDAIN AS FOLLOWS:

Section 1. Section 18.76.140 ("Maximum Dock High Door Ratio") of Chapter 18.76 ("Performance Standard") of Title 18 ("Zoning") is hereby added to read as follows (additions in underline, deletions in strikeout):

18.76.140 - Maximum Dock High Door Ratio
The maximum Dock High Door to Square Foot Ratio for a facility that has a floor area of seventy-five thousand (75,000) square feet or greater and a ceiling height of more than thirtyfour (34) feet over more than twenty-five (25) percent of the floor area is 1:25,000 Section 2. Subsection (D) ("Manufacturing, Light") of Section 18.124.050 ("Industrial Uses") of Chapter 18.124 ("Land Use Definitions") of Title 18 ("Zoning") is hereby amended to read as follows:

D. Manufacturing, Light. The manufacture, predominantly from previously prepared materials, of finished products or parts, including processing, fabrication, assembly, treatment, and packaging of such products, and incidental storage, sales and distribution of such products, but excluding basic industrial processing and custom manufacturing. Includes manufacture of electric and electronic instruments and devices. Excludes saw and planing mill sand manufacturing uses involving primary production of wood, metal or chemical products from raw materials. For purpose of this definition, the term "Assembly" includes creation of a component or end item made from a number of parts and subassemblies.

Assembly does not include the putting together of kits, gift baskets, or packaging items produced elsewhere for purposes of e-commerce or of wholesale trading.

City of Morgan Hill
Ordinance No. , New Series

Section 3. Subsection (C) ("'C' Terms") of Section 18.128.020 ("Definitions") of Chapter 18.128 ("General Terms") of Title 18 ("Zoning") is hereby amended to read as follows:

C. "C" Terms.

1. California Room. A room or space in a building where one or more sides is open and exposed (without a wall or windows) to adjacent outdoor space.

2. Ceiling Height. The clear vertical distance from the finished floor to the finished ceiling.

If the ceiling is unfinished, the ceiling height is the distance from the floor to the lowest projecting beams, joists, or truss work.

3. Cessation of Use. The discontinuation of a use, either temporarily or permanently, whether with the intent to abandon such use or not.

4. City Geologist. A registered professional geologist certified by the state of California in the specialty of engineering geology (C.E.G.) who is either a city staff member or a consultant retained by the city.

5. Clear Triangle. A triangular area bounded by the street right-of-way lines of a corner lot and a line joining points along said street lines 20 feet from the point of intersection.

6. Commercial. Any activity on or use of land which involves the buying, selling, processing or improving of things not produced on the land, and having financial gain as the primary aim of the activity or use, whether or not such activity or use is for hire or on account of the buyer, seller, processor or improver.

7. Conditional Use. A use that requires approval of a conditional use permit or an administrative use permit.

8. Condominium. Individual ownership of a dwelling unit within a multiple-unit structure exclusive of the land underlying such structure.

9. Condominium Development. A structure and appurtenant premises divided in ownership by the existence of the condominiums as defined in Section 783 of the California Civil Code. Includes instances where ownership is divided following prior single ownership of the entire structure and premises, as well as new structures divided in ownership.

Section 4. Subsection (D) ("'D' Terms") of Section 18.128.020 ("Definitions") of Chapter

18.128 ("General Terms") of Title 18 ("Zoning") is hereby amended to read as follows:

D. "D" Terms.

City of Morgan Hill
Ordinance No. , New Series

1. Deck. A platform, either freestanding or attached to a building, that is supported by piers, pillars or posts.

2. Dock-High-Door. An opening to the outside of a building used to interface with trucks for the loading and/or unloading of goods, products, merchandise or wares of any type and where the bottom of the opening is not at ground level but rather elevated by twentyfour (24) inches or more.

3. Dock-High-Door-to-Square-Foot Ratio. The ratio of the total number of Dock-HighDoors that a building has to the total square feet of building floor area.

4. Driveway. A permanently surfaced area on a lot designed and required to provide direct access for vehicles between a street and a private garage, carport or other parking space, parking area, or loading area.

5. Driveway Aisle, Major. A driveway providing principal access to the parking area or the driveway providing principal circulation throughout the parking areas or premises.

6. Driveway Apron. A paved area providing principal access from a drive aisle or street right-of-way to a garage or other covered parking space.

7. Dwelling. A building or portion thereof designed or used exclusively as the residence or sleeping place of one or more persons. Excludes tents, cabins, trailers and trailer coaches.

8. Dwelling Unit. A room or group of rooms including living, sleeping, eating, cooking and sanitation facilities, constituting a separate and independent housekeeping unit, occupied or intended for occupancy by one family on a non-transient (less than thirtyday stay) basis and having not more than one kitchen.

9. Density. The number of dwelling units permitted per net lot area.

Section 5. Severability. Should any provision of this 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 the ordinance.

Section 6. Effective Date; Posting. This Ordinance shall take effect on ____ ______, 2022.

The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.

This ordinance was introduced at a meeting of the City Council held on the _____ day of _____,2022__, and adopted at a meeting held on the _____ day of ________,2022__, and said

City of Morgan Hill
Ordinance No. , New Series

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:

ATTEST: APPROVED:
______________________________ _______________________________ MICHELLE BIGELOW, City Clerk RICHARD CONSTANTINE, Mayor

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 Ordinance No. , New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2022.

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

DATE: _______________________ _____________________________ MICHELLE BIGELOW, City Clerk

RESOLUTION NO. 22-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL, CALIFORNIA SUBMITTING TO THE

VOTERS OF THE CITY AN ORDINANCE CHANGING

ZONING REGULATIONS THROUGHOUT THE CITY OF

MORGAN HILL TO PROHIBIT BUILDINGS WITH

CHARACTERISTICS THAT COULD BE USED FOR NEW

STORAGE AND DISTRIBUTION USES IN ALL AREAS OF

THE CITY
WHEREAS, pursuant to authority provided by Division 9, Chapter 3, Article 1 (commencing at S 9200) of the Elections Code of the State of California, a petition was filed with the City Council of the City of Morgan Hill signed by more than ten percent (10%) of the registered voters of the City, according to the Santa Clara County Registrar of Voters last official report of registration to the Secretary of State, to submit a proposed ordinance to the voters changing zoning regulations throughout the city of Morgan Hill to prohibit certain new storage and distribution uses in all areas of the City and amending the review process for large-scale development projects; and WHEREAS, the qualified initiative was placed on the November 22, 2022 ballot on April 7, 2021
WHEREAS, a collaborative discussion of the goals of the initiative was held between the City and the Morgan Hill Responsible Growth Coalition to examine the potential for nonconforming designations on existing buildings and a revised ordinance was developed and adopted as Urgency Ordinance 2320 on April 7, 2021; and
WHEREAS, Urgency Ordinance 2320 was adopted and ratified as a permanent ordinance on March 2, 2022; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORGAN HILL AS FOLLOWS:

Section 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. Election. The City Council hereby calls a General Municipal Election for Tuesday, November 8, 2022 (the “Election”) and orders, pursuant to Section 9222 of the Elections Code, that Ordinance XX changing zoning regulations throughout the city of Morgan Hill to prohibit building with characteristics that could be used for new storage and distribution uses in all areas of the City.

Section 3. Ballot Question. The question submitted under Section 3 of this Resolution shall appear on the ballot as follows:

City of Morgan Hill
Resolution No. 18-057

YES
Shall the ordinance, changing zoning regulations throughout the city of Morgan Hill to prohibit buildings with characteristics that could be used for new storage and distribution uses in all areas of the City be adopted?
NO
Section 4. Approval. Pursuant to Article XIII C of the Constitution, this measure requires approval by a majority (50% plus 1) of those casting ballots on the measure.

Section 5. Consolidation. Pursuant Section 10400 et seq. of the Elections Code, the Board of Supervisors of Santa Clara County (Board of Supervisors) is requested to consolidate the Election with other elections held on the same day in the same territory or in the territory that is in part the same.

Section 6. Canvass. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.

Section 7. Conduct of Election. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the Santa Clara County Registrar of Voter’s Office to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures.

Section 8. Filing with County. The City Clerk shall file a certified copy of this Resolution with the Board of Supervisors.

Section 9. Analysis and Argument. The City Council authorizes all members of the City Council to file written argument(s) In Favor of, or Against the measure described in Section 3 above, not exceeding 300 words, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the ballot measure may be submitted to the City Clerk.

The City Attorney shall prepare an impartial analysis of the measure. Any person or persons may file an argument either for or against the ballot measure. An argument for or against the measure shall not exceed 300 words in length. If more than one argument is submitted for the measure, or more than one argument against the measure, the City Clerk shall select the argument to be included with the ballot materials. Rebuttal arguments shall be permitted pursuant to applicable law.

Section 10. In accordance with Elections Code section 9280, the entire text of the measure referenced in Section 3 above, shall not be placed in the voter information sample ballot and instead there shall be printed immediately below the impartial analysis, in no less than 10- point type, the following: "The above statement is an impartial analysis of the Ordinance of The City of Morgan Hill, California changing zoning regulations throughout the city of Morgan Hill to prohibit building with characteristics that could be used for new storage and distribution uses in all areas of the City. If you desire a copy of the measure, please visit http://www.morgan-hill.ca.gov, email the City Clerk at [email protected], or call the City Clerk at (408)779-7271 and a copy will be mailed or e-mailed at no cost to you.”

City of Morgan Hill
Resolution No. 18-057

Section 11. The primary arguments for and against the measure shall be submitted to the City Clerk by five o'clock p.m. on August 16, 2022 to meet the deadline established by the Santa Clara County Registrar of Voters for primary arguments. The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement to Be Filed by Author(s) of Argument to be provided by the City Clerk.

Section 12. In accordance with Elections Code section 9285(b), the City of Morgan Hill hereby authorizes the filing of rebuttal arguments as set forth below and in accordance with state law.

The elections official shall send a copy of an argument in favor of the proposition to the authors of any argument against the measure and a copy of an argument against the measure to the authors in any argument in favor of the measure immediately upon receiving the arguments.

The author, or a majority of the authors, of any argument relating to the measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument.

A rebuttal argument may not be signed by more than five authors.

The rebuttal arguments shall be filed with the City Clerk, signed with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement to be provided by the City Clerk and to be filed by the author(s) of the argument.

Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

Rebuttal arguments for and against the measure shall be submitted to the City Clerk by five o'clock p.m. on August 23, 2022 to meet the deadline established by the Santa Clara County Registrar of Voters for rebuttals.

Section 13. Effective Date. This Resolution shall be effective immediately upon adoption.

Section 14. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law.

City of Morgan Hill
Resolution No. 18-057

PASSED AND ADOPTED by the City Council of Morgan Hill at the meeting held on this 2nd day of March 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:

RICH CONSTANTINE, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 22-0xx, adopted by the City Council at the meeting held on March 2, 2022.

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

DATE:

MICHELLE BIGELOW, City Clerk
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