Morgan Hill City Council
September 28, 2022

Special/Regular Meeting Agenda
City Council
Rich Constantine - Mayor
Gino Borgioli - Mayor Pro Tem
John McKay - Council Member
Yvonne Martinez Beltran - Council Member
Rene Spring - Council Member
Wednesday, September 28, 2022 6:00 PM
Virtual Meeting
Link to join the meeting can be found below

VIRTUAL MEETING GUIDELINES AND PUBLIC COMMENT
In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed.

Physical meetings will not be in the City Council Chamber until further notice.

City Council meetings will be live-streamed on Channel 17, on the City’s website, and on the City’s Facebook page. Those members of the community that would like to participate in the meetings remotely may do so by joining the virtual meeting at:
https://bit.ly/MHCityCouncilMeeting or by calling (669) 900-9128, then enter the webinar id: 873 3200 8380#.

Public comment may be provided in the following ways:
 Join the virtual City Council meeting via the link above, when public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes (YOU MUST BE RUNNING THE MOST CURRENT VERSION OF ZOOM TO BE

UNMUTED)
 Join the virtual meeting by calling the number above, dial *9 to raise your hand, and be called upon to speak for up to 3 minutes
 Send public comments in writing to the City Clerk at
[email protected]
* Please note that comments made on Facebook are not considered public comment.

SPECIAL/REGULAR MEETING

September 28, 2022
2 A special meeting of the City Council is called at 6:00 P.M. for the purpose of conducting a closed session.

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

SPECIAL MEETING
6:00 P.M. Closed Session

CLOSED SESSION

OPPORTUNITY FOR PUBLIC COMMENT

ADJOURN TO CLOSED SESSION
THREAT TO PUBLIC SERVICES OR FACILITIES (§ 54957)
Consultation with: Morgan Hill Police Department, Chief of Police

REGULAR MEETING
7:00 P.M.

RECOGNITIONS
Recognizing the Alzheimer’s Association Walk to End Alzheimer’s

PROCLAMATIONS
Proclaiming September 10, 2022 as Suicide Prevention Day Proclaiming September 30, 2022 as Lewy Body Dementia Awareness Day Proclaiming the week of September 17-23, 2022 as Constitution Week Proclaiming the month of September 2022 as Childhood Cancer Awareness Month Proclaiming the month of September 2022 as Latinx Heritage Month

CITY COUNCIL REPORTS
Council Member Spring

September 28, 2022
3 CITY MANAGER'S REPORT

CITY ATTORNEY'S REPORT

OTHER REPORTS

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

ADOPTION OF AGENDA

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

Time Estimate for Consent Calendar: 1 - 10 Minutes

1. ADOPT RESOLUTION DETERMINING THAT CONDUCTION OF IN-PERSON

MEETINGS WOULD PRESENT A PUBLIC HEALTH RISK AND CONTINUING

TELECONFERENCE MEETINGS
Recommendation:

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

2. ACCEPTANCE OF EAST FIFTH STREET SEWER MAIN PROJECT IN THE AMOUNT OF $1,334,087
Recommendation:

1. Accept as complete the East Fifth Street Sewer Main Project;

September 28, 2022
4 2. Authorize the City Engineer to sign the Notice of Completion; and

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

3. ADOPT RESOLUTION OF INTENTION TO FORM THE MORGAN HILL

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, AND AUTHORIZING

THE CITY MANAGER TO SIGN BALLOT, AND OTHER DOCUMENTS FOR

ALL CITY-OWNED PROPERTIES IN SUPPORT OF THE FORMATION OF THE

MORGAN HILL PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
Recommendation:

1. Adopt Resolution of Intention to Form the Morgan Hill Property and Business Improvement District; and

2. Authorize the City Manager to sign the ballot and other related documents for all City-owned properties in support of the formation of the Morgan Hill Property and Business Improvement District.

4. APPROVE PARCEL MAP AND RELATED SUBDIVISION IMPROVEMENTS

AGREEMENT AND SUBSEQUENT DEVELOPMENT REIMBURSEMENT
AGREEMENT FOR THE REDWOOD TECH AT 101 PROJECT (NORTHERN

INTERSECTION OF HALF ROAD AND CONDIT ROAD WITH ASSESSOR PARCEL NUMBERS 728-30-006 AND 728-30-009)
Recommendation:

1. Approve the Parcel Map for the Redwood Tech at 101 Project;

2. Approve a Subdivision Improvements Agreement with TC Morgan Hill Venture, LLC;

3. Approve a Subsequent Development Reimbursement Agreement with TC Morgan Hill Venture, LLC; and

4. Authorize the City Manager to execute the Subdivision Improvements Agreement and Subsequent Development Reimbursement Agreement.

5. APPROVE CONSULTANT SERVICES AGREEMENT WITH JAYSON

ARCHITECTURE FOR THE CONCEPTUAL DESIGN PLANNING OF THE

VILLA MIRA MONTE EXPANSION
Recommendation:

Authorize the City Manager to execute a professional consultant agreement with Jayson Architecture for $300,000 for the conceptual design of the Villa Mira Monte Expansion.

6. APPROVE PURCHASE OF REPLACEMENT PUMPS FOR LIFT STATION A Recommendation:

September 28, 2022
5 Approve and authorize the City Manager to execute a purchase order to Shape Inc. in the amount of $64,166 for Lift A Station replacement pumps.

7. APPROVE COMMISSION WORK PLANS
Recommendation:

1. Approve the proposed Parks and Recreation Commission FY 2022-23 Work Plan; and

2. Approve the proposed Library, Culture and Arts Commission FY 2022-23 Work Plan.

8. APPROVE THE AUGUST 3, 2022 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

9. APPROVE THE AUGUST 17, 2022 CITY COUNCIL MEETING MINUTES Recommendation:

Approve minutes.

10. AUTHORIZE PURCHASE OF THREE POLICE VEHICLES TO INCLUDE

BUILD-OUT OF COMMUNICATION AND SAFETY EQUIPMENT
Recommendation:

1. Authorize the purchase and build-out of two unmarked police vehicles:
2023 Toyota Tacoma and 2023 Toyota Sienna, for a total amount not to exceed $116,409, which includes a 10% contingency of $10,583 from Priority 1 Public Safety Equipment;

2. Authorize the purchase and build-out of one Ford Explorer for use as Municipal Services Officer Patrol Vehicle for an amount not to exceed $98,435, which includes a 10% contingency of $8,949 from Priority 1 Public Safety Equipment;

3. Authorize the purchase of police radio equipment from Motorola for an amount not to exceed $25,611; and

4. Authorize the repurposing of two vehicles as pool cars: 2014 Ford Fusion (VIN ending in 007) and 2014 Honda Accord (VIN ending in 850).

11. AWARD TREE MAINTENANCE SERVICE AGREEMENT
Recommendation:

1. Award a Maintenance Service Agreement to West Coast Arborists, Inc. for up to $652,000 ($326,000 annually for a two-year period) subject to future annual budget appropriations by the City Council; and

September 28, 2022
6 2. Authorize the City Manager to execute and administer the said agreement.

12. RELEASING UNCLAIMED CREDITS LESS THAN $15
Recommendation:

Adopt resolution to release unclaimed credits less than $15.

PUBLIC HEARINGS

13. INTRODUCE AN ORDINANCE TO AMEND THE TEXT OF TITLE 14 RELATED TO INCLUSIONARY HOUSING AND TITLE 18 RELATED TO THE DENSITY

BONUS LAW
Recommendation:

1. Open/close the public hearing;

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

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

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

HEARING APPROVING ISSUANCE OF BONDS FOR MORGAN HILL SENIOR

APARTMENTS LOCATED DIRECTLY SOUTH OF SAN PEDRO AVENUE,

EAST OF MONTEREY ROAD AND WEST OF CHURCH STREET WITHIN THE

CITY OF MORGAN HILL
Recommendation:

1. Open/close public hearing consistent with the requirements of the Federal 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 Municipal Finance Authority (CMFA), for the acquisition, construction, improvement and equipping of a 82-unit multifamily rental housing project located on a 1.89-acre parcel situated directly south of San Pedro Avenue, east of Monterey Road and west of Church Street, in the City of Morgan Hill, California (the “City”).

OTHER BUSINESS

15. RECEIVE MONTHLY BUDGET UPDATE AND AUGUST 2022 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

September 28, 2022
7 Accept and file report.

16. COMMUNITY FUNDING POLICY REVIEW AND UPDATE
Recommendation:

Review policy and direct staff to make any updates to the Community Funding Policy.

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

ADJOURNMENT

September 28, 2022
8 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful.

When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item of interest to the public, you may do so during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less.

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

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

City Council Policies and Procedures (CP 03-01) outlines the procedure for the conduct of public hearings. Notice is given, pursuant to Government Code Section 65009, that any challenge of Public Hearing Agenda items in court, may be limited to raising only those issues raised by you or on your behalf at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the Public Hearing on these matters.

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

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

AMERICANS WITH DISABILITIES ACT (ADA)
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk's Office at (408)779-7259, (408)779-3117 (fax) or by email [email protected]. Requests must be made as early as possible and at least two-full business days before the start of the meeting.

September 28, 2022
9

1 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Angie Gonzalez, Deputy City Clerk
APPROVED BY: City Manager
ADOPT RESOLUTION DETERMINING THAT CONDUCTION OF INPERSON MEETINGS WOULD PRESENT A PUBLIC HEALTH RISK AND

CONTINUING TELECONFERENCE MEETINGS

RECOMMENDATION(S)
Adopt resolution to continue holding City Council and commission meetings by teleconference.

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

In light of the existing state of emergency and the County Health Officer’s recommendation, the attached Resolution has been prepared to enable all legislative bodies of the City of Morgan Hill to continue to meet remotely in accordance with AB 361. The Resolution directs all legislative bodies subject to the Brown Act, including the City Council, Planning Commission, Parks and Recreation Commission, and the Library, Culture, and Arts Commission, to continue to only meet remotely in accordance with AB 361. The Resolution also makes the necessary findings under AB 361 by finding that a state of emergency continues to exist relating to COVID-19 and this necessitates that legislative bodies continue to meet remotely. The Resolution is consistent with the County Health Officer's recommendation that legislative bodies continue to meet remotely to promote social distancing to reduce the risk of COVID-19 transmission.

COMMUNITY ENGAGEMENT:

This report serves to inform the Community of the recommendation to continue teleconferenced meetings.

ALTERNATIVE ACTIONS:

The Council could choose not to adopt the proposed resolution and continue its September 28, 2022 meeting to a date certain for an in-person meeting. All meetings of

1 the City and its commissions going forward would also be in-person.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

Each month since October 6, 2021, the City Council has adopted a resolution determining that conducting in-person meetings would present an imminent risk to attendees’ health and electing to continue conducting meetings using teleconferencing.

FISCAL AND RESOURCE IMPACT:

Continued use of teleconferencing software has a minimal fiscal impact.

CEQA (California Environmental Quality Act):

Not a Project.

Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are not projects that require environmental review.

RESOLUTION NO. 22-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL DETERMINING THAT CONDUCTING

IN-PERSON MEETINGS OF THE CITY COUNCIL AND ITS

BOARDS AND COMMISSIONS WOULD PRESENT
IMMINENT RISKS TO ATTENDEES’ HEALTH, AND

ELECTING TO CONTINUE CONDUCTING MEETINGS

USING TELECONFERENCING IN ACCORDANCE WITH
GOVERNMENT CODE SECTION 54953(e) (AB 361)
WHEREAS, on March 4, 2020, Governor Newsom declared a state of emergency related to the COVID-19 global pandemic, a state of emergency that is ongoing; and WHEREAS, on March 13, 2020, the City Manager in her capacity as Emergency Services Director declared a local emergency due to the spread of COVID-19, and that emergency declaration was ratified on March 18, 2020; and
WHEREAS, the City of Morgan Hill remains in a state of emergency due to the continuing spread of COVID-19; and
WHEREAS, the Centers for Disease Control and Prevention recommends physical distancing of at least six (6) feet whenever possible, avoiding crowds, and avoiding spaces that do not offer fresh air from the outdoors, particularly for people who are not fully vaccinated, or are at a higher risk of severe illness due to COVID-19; and
WHEREAS, the City’s public meeting facility is indoor and not designed to ensure circulation of fresh/outdoor air, and not designed to ensure that attendees can remain six (6) feet apart; and
WHEREAS, holding in-person meetings would encourage community members to come to City facilities to participate in local government, and some of them would be at high risk of severe illness due to COVID-19; and
WHEREAS, technology exists that allows full participation from members of the public without requiring in-person attendance at a City Council meeting.

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. Approval and Authorization. The City Council does further resolve, order and/or direct as follows:

City of Morgan Hill
Resolution No. 22-XXX

1. The conduct of in-person public meetings would pose imminent risks to the health of attendees.

2. Public health and safety and the public right to participate in local government are both critically important. The City of Morgan Hill is committed to balancing both by making City Council and commission meetings accessible through multiple formats and by allowing real-time public comment through teleconferencing solutions.

3. The City Council will renew these findings at least every thirty (30) days in accordance with Government Code section 54953(e) until the state of emergency related to COVID-19 has been lifted or until the City Council determines that in-person meetings no longer pose imminent risks to the health of attendees, whichever comes first.

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

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on September 28, 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-XXX, adopted by the City Council at a regular meeting held on September 28, 2022.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

2 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Yat Cho, Senior Project Manager
APPROVED BY: City Manager

ACCEPTANCE OF EAST FIFTH STREET SEWER MAIN PROJECT IN
THE AMOUNT OF $1,334,087

RECOMMENDATION(S)

1. Accept as complete the East Fifth Street Sewer Main Project;

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

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

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Economic Development
Guiding Documents
Wastewater System Master Plan
REPORT NARRATIVE:

On June 23, 2021,the East Fifth Street Sewer Main Project was awarded to Pacific Underground Construction, Inc. in the amount of $1,226,730 with a contingency of $122,673. The scope of work for the East Fifth Street Sewer Main Project includes replacing the existing sewer main along East Fifth Street between Monterey Road and Depot Street with a 12" sewer main and extending a new 15” sewer main east of Depot Street through the Hale Lumber site and under the UPRR right-of-way (via bore and jack method). Additional work as part of the project included sewer lateral connections, trench restoration, new sewer manholes, manhole rehabilitation and a 2” asphalt concrete overlay on East Fifth Street (between Monterey Road and Depot Street), and all other incidental work to complete the project. The completion of this project has reduced the potential for sewer spills on Monterey Road south of Dunne Avenue by diverting the sewer flow coming through the Downtown to the 15” sewer trunk line on the east side of the UPRR right-of-way (See attachment 1 for Vicinity Map).

2 The construction of this project began in December 2021 and was substantially completed by September 2, 2022. Three change orders were authorized in the amount of $107,357.38 due to plan changes and unforeseen conditions (See attachment 2).

The final construction contract with Pacific Underground Construction, Inc. is $1,334,087.38. Staff recommends accepting this project as it has been completed in accordance with the plans and specifications. Additionally, staff recommends directing the City Clerk to file the Notice of Completion for the project (Attachment 3).

COMMUNITY ENGAGEMENT:

Inform
Prior to and during construction of this project, staff and contractor worked closely to keep immediate residents informed of daily construction activities. Furthermore, staff have informed the community regarding the progress of this project using the media, social media, and the City’s website.

ALTERNATIVE ACTIONS:

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

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

October 18, 2017 - City Council adopted the 2017 Sewer System Master Plan.

November 1, 2017 – City Council approved design agreement with Mott Macdonald for the Tennant Avenue and Dunne Avenue Sewer Project.

June 17, 2020 - City Council adopted the FY 2020-21 through FY 2025-26 Capital Improvement Budget which identifies funding for the proposed sewer projects through bond proceeds.

November 20, 2020 - City Council adopted a resolution authorizing the execution of an installment purchase agreement to provide financing of the City’s anticipated projects through the sale of $20 million in sewer revenue bonds.

June 23, 2021 - City Council awarded project to Pacific Underground Construction for the construction of the East Fifth Street Sewer Main Project.

FISCAL AND RESOURCE IMPACT:

The final contract amount for the East Fifth Street Sewer Main Project is $1,334,087.38.

The project was awarded to Pacific Underground Construction, Inc. in the amount of $1,226,730 with an authorized contingency of $122,673 (Total of $1,349,403). The project is funded within the FY 2020-21 Budget for this project (302T17). Funding for the 2” asphalt concrete overlay on East Fifth Street between Monterey Road and Depot Street will come from Fund 308. The remaining budget of $15,315.62 will be returned to Sewer CIP Fund (Fund 643).

2 CEQA (California Environmental Quality Act):

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

MONTEREY RD

DEPOT ST

DIANA AVE

BUTTERFIELD BLVD

CHURCH ST

SPRING AVE

E DUNNE AVE

DEL MONTE AVE

SAN PEDRO AVE

E MAIN AVE

W DUNNE AVE

MAST ST

BARNELL AVE

CALLE MAZATAN
E 5TH ST

BISCEGLIA AVE
E 4TH ST
W 5TH ST

MYRTLE AVE

CIOLINO AVE

RAILROAD AVE
E 3RD ST
W 3RD ST
W 2ND ST
E 1ST ST

CALLE DEL SOL
E 2ND ST
W 1ST ST

CHARGIN WAY

FOOTHILL CT

CORY DR

LONE HILL DR

CALLE CABEZAL

MARKROSS CT

CALLE CABALLERIA

MANOR CT

GRAND PRIX WAY

MC GRAW AVE

ROSEMARY CIR

SAN JOSE DR

CORTE CABANIL
W 4TH ST

SAINT JOSEPH DR

DEL MONTE AVE

E DUNNE AVE

CREEKSIDE LN

MASON LN

CREEKSIDE CIR

MCLAUGHLIN AVE

SAN SIMEON DR

TRIGGS LN

SHERMAN LN

VINEYARD BLVD

ABETO LN

BRISCOE LN

STERLING LN

LEWIS LN

CIPRES LN

ROHAN LN

OLMO LN

PICKWICK LN

CREEKVIEW DR

SAINT ANNE LN

SAN SIMEON CT

LOS CASTANOS DR

SAINT CECILIA LN

SAINT AGATHA LN

HENCKEN OAKS LN

HUNTINGTON LN

PEBBLE CREEK CT

CREEKBED CT
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community O
0 250 500 1,000 1,500 2,000
Feet

EAST FIFTH STREET

SEWER MAIN PROJECT
Engineering and Utilities Department
CIP Engineering Division
G:\R-14\Proj\GIS\John\Yat_5th St Sewer Proj.mxd
EAST FIFTH ST. SEWER

MAIN PROJECT

CIP Contract Acceptance
Funding Closeout Statement
Project: East Fifth Street Sewer Main Project
Project No: 302T17
Date of Project
Award: 23-Jun-21 Project Award Amount: $1,226,730
Funding Source: F308
Contingency
Authorized: $122,673
Date of Project
Acceptance: 28-Sep-22 Total Authorized: $1,349,403
Actual Base
Contract Spent: $1,226,730
Change Orders
Description Date
Council Approval
Reqd? (Y/N)
C.O. #1: Miscellaneous Changes 20-Apr-22 N $56,974.00
C.O. #2: Lowering of Manholes and Additional
Concrete Flatwork 10-May-22 N $33,083.38
C.O. #3: Contract add and deducts 3-Jun-22 N $17,300.00 Total C.O.: $107,357.38
Additional Appropriations
Source Amount Date
Total
Construction
Amount (Base
Contract plus
CO's): $1,334,087.38
Construction Fund Balance: $15,315.62
None

Recording Requested By:
___________________________
When Recorded Mail To:
___________________________
___________________________
___________________________
___________________________
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

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

1. The undersigned is the Owner or agent of the Project described below.

2. Owner’s full name is City of Morgan Hill.

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

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

XX Fee ownership __ Lessee __ Other:

5. Construction work on the Project performed on Owner’s behalf is generally described as follows: The scope of work for the East Fifth Street Sewer Main Project includes replacing the existing sewer main along East 5th Street between Monterey Road and Depot Street with a 12” sewer main and extending a new 15” sewer main east of Depot Street through the Hale Lumber site and under the UPRR right-of-way (via bore and jack method).

6. The name of the original Contractor for the Project is: Pacific Underground Construction, Inc.

7. The Project was completed on: September 2, 2022

8. The Project includes the construction of a 12” sewer main along East 5th Street between Monterey Road and Depot Street and extending a new 15” sewer main east of Depot Street through the Hale Lumber site and under the UPRR right-of-way (via bore and jack method).

Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct. __________________________ ________________________________ Date and Place Signature
________________________________
Scott Creer, City Engineer

3 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Matthew Mahood, Economic Development Director
APPROVED BY: City Manager

ADOPT RESOLUTION OF INTENTION TO FORM THE MORGAN HILL

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, AND

AUTHORIZING THE CITY MANAGER TO SIGN BALLOT, AND OTHER

DOCUMENTS FOR ALL CITY-OWNED PROPERTIES IN SUPPORT OF

THE FORMATION OF THE MORGAN HILL PROPERTY AND BUSINESS

IMPROVEMENT DISTRICT

RECOMMENDATION(S)

1. Adopt Resolution of Intention to Form the Morgan Hill Property and Business Improvement District; and

2. Authorize the City Manager to sign the ballot and other related documents for all City-owned properties in support of the formation of the Morgan Hill Property and Business Improvement District.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
2022-2023 Strategic Priorities
Economic Development
Guiding Documents
Economic Blueprint
Morgan Hill 2035 General Plan
Vision Zero
REPORT NARRATIVE:

POLICY CONSIDERATION:

Should the City invest in improving cleanliness and safety in Downtown Morgan Hill in partnership with other property owners through a Property and Business Improvement District?

3 Background:

A Property-based Business Improvement District (PBID) is a unique funding tool which allows business district property owners to pool their financial resources by assessing themselves to pay for certain district-wide activities and improvements. There are over 100 PBIDs throughout California and upwards to 1,500 throughout the country.

On March 2, 2022, the City Council approved and authorized the City Manager to execute and administer a consulting agreement with Civitas Advisors to form a Morgan Hill Downtown Property Business Improvement District (PBID) and provided direction to the City Manager to sign the MHDPBID petition, indicating the City’s support of the PBID formation. The PBID could fund programs that improve the safety and cleanliness in Downtown, fund capital improvements and art installations, beautification efforts and marketing, promotions and special events. A PBID can assist the City in funding the growing needs of the Downtown district by working with other property owners and sharing in the costs of area-wide improvements and programs.

Over the last six months, staff has been working alongside Civitas Advisors and a Downtown Property Owner's Steering Committee on the creation of the Management District Plan, the PBID assessment formula, and the Owner's Association formation. In addition to working with the Steering Committee, an extensive outreach effort has been underway to connect with all 59 Downtown property owners. The outreach included one-on-one meetings, mailers and an in-person meeting held on September 19, 2022.

The PBID formation requires a majority (51%) support of the Downtown property owners through a formal ballot process. Since the City of Morgan Hill is a significant property owner in the district, owning twenty-three (23) parcels, and 47.75% of the District assessment, the City Council directed staff to seek 51% of the private property owners' support for the PBID before moving forward with the ballot. A PBID formation petition was issued on August 16, 2022, and as of September 19, 2022, the City has received 53% support from the non-government property owners in the District. Staff is requesting City Council support of the MHPBID program by granting the City Manager the authority to sign the ballots in favor of formation and sign all documents necessary on behalf of City-owned properties during the formation process. Information on the proposed MHPBID Management District Plan, including assessment rates, City's contribution and benefits to the District is detailed below.

MANAGEMENT DISTRICT PLAN
The MHPBID will be governed in accordance with a written Management District Plan, pursuant to Streets and Highways Code Section 36622. The Plan sets guidelines for the District including the assessment rate, service plan, collection provisions, and governance (Attachment 1).

The Management District Plan includes the proposed boundary of the MHPBID, a service plan, assessment methodology, budget, proposed means of governance, and Engineer’s Report. The MHPBID includes parcels north of Dunne, east of Del Monte, south of Main, and west of Butterfield, as shown in the Management District Plan.

Within the District, there are 98 properties, 59 individual property owners, of which

3 three (3) are non-profit organizations. No single family, multi-family, vacant land or open space properties are subject to the assessment.

The MHPBID will have a five (5) year-life beginning January 1, 2024, or as soon as possible thereafter, through December 31, 2028, or five (5) years after the start date.

Once per year, beginning on the anniversary of MHPBID formation, there is a 30-day period in which property owners may protest and begin proceedings to terminate the MHPBID.

As provided by State Law, the MHPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Santa Clara (County). Parcels which do not receive property tax bills will be invoiced by the County. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Santa Clara shall distribute funds collected to the City of Morgan Hill which shall forward them to the MHPBID. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the MHPBID assessments. The City shall be paid an administration fee to cover its costs of collection and administration.

The MHPBID proposed assessment rate (cost to the parcel owner) is based on parcel type and square footage, and in some cases, linear frontage. The initial annual assessment rate applied to commercial parcels will be $0.10 per square foot per year.

The three non-profit parcels will be issued a reduced assessment of $0.04 per square foot per year. Frontage rates are applied to high traffic areas and parcels fronting Monterey Rd., Depot St., and East 3rd St. Frontage rates are applied based on a parcel’s linear frontage. Commercial parcels will be assessed at $5.00 per linear foot of frontage and non-profit parcels will be assessed at a reduced rate of $2.00 per linear foot of frontage. City parcels will be assessed at a commercial rate. Assessment rates may be subject to an increase of no more than three percent (3%) per year. The total MHPBID assessment is expected to be $282,680. In addition to the assessed funds, the MHPBID is required to secure an annual non-assessment fund of approximately $31,630. These monies are outside the assessment and can be made through grants, event revenue, and/or donations.

Under “The Right to Vote on Taxes Act” (also known as Proposition 218) all public agencies are required to pay the same assessments for public property that applies to private property unless they can demonstrate by clear and convincing evidence that the public property does not receive a benefit. The Management District Plan provides that the City and other public entities should pay their “fair share” of all assessments.

District formation requires submittal of signed petitions from property owners representing at least 50 percent of the total annual assessment, followed by a ballot vote of the property owners. The “Right to Vote on Taxes Act” requires that more than 50% of the ballots received, weighted by assessment, be in support of the district. The Draft Management Plan and related documents were shared with the Dowtown property owners and as of September 23, 2022, the City has received 57.8% support from the non-government property owners within the District. The final formation of the District

3 boundaries and reading of the ballot vote is expected to take place in front of the City Council on November 16, 2022, or later, depending on the timing of the ballot mailings and collection. Assuming the approval of the MHPBID, the first assessment will be in January 2024.

MHPBID DISTRICT MANAGEMENT
The MHPBID shall be governed by the Downtown Morgan Hill Improvement District (DMHID) Board, with oversight from the Morgan Hill City Council. DMHID, shall serve as the Owners’ Association described in the Streets and Highways Code §36612. DMHID will be formed as a new 501(c)(6) not-for-profit organization. The DMHID Board of Directors and its staff are charged with the day-to-day operations of the MHPBID. The Owners’ Association is charged with managing funds in accordance with this Management District Plan and must submit an annual report to the City. The DMHID Board of Directors will include representation of Downtown property owners, business owners, residents, and the City. The proposed Board make up includes up to two City seats similar to the Visit Morgan Hill (TBID) Board of Directors. DMHID will assist in administering the approximate $106,000 remaining funds from the previous PBID assessment in accordance with the previous PBID Management District Plan. In addition to managing the District's property assessments, the Owner's Association will also have the responsibility to manage and source non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds.

ARTICLE V- DIRECTORS
The proposed articles of incorporation for the Downtown Morgan Hill Improvement District (DMHID) Board requires a five (5) to nine (9) person Board, serving a minimum of a three (3) year term. The board shall have at a minimum three (3) Directors representing property owners within the District, two (2) Directors from the City of Morgan Hill staff members representing Public Services and Economic Development; and up to four (4) Directors that may represent a combination of property owners, business owners, or community residents within the District.

MHPBID FORMATION PROCESS
Following the issuance of the PBID petition, the City has received 53% of nongovernment property owner support for the formation of the PBID. At the September 28, 2022 City Council meeting, the Morgan Hill City Council will hold a Resolution of Intention Hearing and consider initiating proceedings to form a district by the adoption of a resolution expressing its intention to form a district. If the Council proceeds with the Adoption of a Resolution of Intention to Form the Morgan Hill Property and Business Improvement District and authorizes the City Manager to sign the ballot and other related documents for all City-owned properties in support of the formation of the Morgan Hill Property and Business Improvement District, formal Notices and Proposition 218 Ballots will be immediately issued on September 29, 2022. Per the Property and Business Improvement District Law of 1994 and Proposition 218, the City will mail written notice and assessment ballots to the owners of all property proposed to be assessed within the MHPBID. Mailing the notice and assessment ballot begins a mandatory forty-five (45) day period in which owners may cast ballots.

3 On November 16, 2022, the City Council will hold the final public hearing and receive public testimony. At the end of testimony, the Council will close the public hearing and direct tabulation of assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment. A majority protest exists if the ballots in opposition to the proposed assessment exceed the ballots in support of the proposed assessment, weighted by the amount each owner will pay. If there is no majority protest, the Council may adopt a resolution declaring the results of the majority protest proceedings and forming the MHPBID.

In 2006, the City Council created a Downtown PBID to support Downtown improvements. This PBID supported efforts such as benches, trash cans, banners, events, and other enhancements. The PBID was terminated in 2013. Downtown Morgan Hill is a growing business district with a range of new mixed-use projects and new businesses. The City's vision to make Downtown the heart of the community is reinforced by the influx of private investment. Downtown is now generating more income for the City through sales tax collected from Downtown restaurants and businesses, competing with grocery-anchored shopping centers. This growth also requires additional attention to keep up with cleanliness and safety needs. The growing Downtown's needs can be best supported through a partnership with other property owners that equally benefit from the thriving District. Staff recommends the City Council support the creation of a Downtown PBID by adopting a Resolution of Intention to Form the Morgan Hill Property and Business Improvement District and authorizing the City Manager to sign the ballot and other related documents for all City-owned properties in support of the formation of the Morgan Hill Property and Business Improvement District.

COMMUNITY ENGAGEMENT:

Inform/ Involve/ Collaborate
 In November and December 2021, City staff engaged Downtown property owners to gauge interest in a Downtown PBID formation. A survey of needs and wants identified the top issues property owners would like to see addressed, including safety, maintenance, and beautification.
 City staff conducted three Steering Committee Meetings with Downtown property owners and City staff to develop the Management District Plan.  City staff has reached out to all 59 Downtown property owners, and we have been in direct communication with 36 property holders in the Downtown District.  In July and August 2022, City staff provided updates to the Morgan Hill Downtown Association on the process and status of the PBID formation.  On August 18, 2022, City staff mailed PBID awareness and marketing materials to every assessed Downtown property owner.
 On September 7, 2022, City staff presented an update on the PBID formation process to the Morgan Hill Chamber of Commerce.
 On September 19, 2022, City staff conducted an outreach meeting, inviting all Downtown Property Owners to participate.

3 ALTERNATIVE ACTIONS:

The City Council may provide alternative direction for staff or choose not to adopt the resolution, resulting in the City not establishing the Property Based Improvement District.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On March 2, 2022, the City Council approved and authorized the City Manager to execute and administer a consulting agreement with Civitas Advisors to form a Morgan Hill Downtown Property Business Improvement District. During that time, City Council also gave direction to the City Manager to sign the MHDPBID petition, indicating the City’s support of the PBID formation.

On January 19, 2022, the City Council directed staff to bring forward a consulting contract to implement a Property Based Improvement District (PBID) for Downtown.

In July 2017, the City Council adopted the Economic Blueprint which identified the reestablishment of a PBID as action item # 21, and reads as follows: "Downtown needs continual care and nurturing. Unlike shopping centers that have one or limited number of owners, Downtowns are comprised of many owners, both property owners and business owners. This makes it complicated to care for the Downtown business district.

Often property owners or business associations need to come together to promote and enhance the Downtown. The City should work with the Downtown property owners and Downtown businesses to create a Business Improvement District (BID) to Support Downtown Improvements and Programming (Action #21)."
In 2006, the City of Morgan Hill worked with the Downtown property owners to establish a Property Based Improvement District (PBID) and entered into an agreement with the Morgan Hill Downtown Property Business Improvement District (MHDPBID) non-profit to govern the district. In 2011, the PBID was renewed for an additional five years, after receiving approval by the Downtown commercial property owners. The PBID assessments were used to fund capital improvements, pedestrian security and safety, economic development, marketing, and to support public policy and advocacy. In July 2013, the City Council terminated the PBID management agreement due to a lapse in MHDPBID’s tax-exempt corporation status. The incurred tax liability was resolved. The prior non-profit will be dissolved. A new 501c6 owner's association is being formed to manage the MHPBID moving forward.

FISCAL AND RESOURCE IMPACT:

There is no immediate financial impact.

If the MHPBID formation is successful, then the City’s annual contribution would be $134,991.70, beginning in Fiscal Year 2023-2024. While the City will need to contribute to the PBID, the City may be able to save on current one-time expenses by having the PBID fund these types of project expenses in the future.

3 If the MHPBID formation is successful, a next step will be to execute a contract between the City and the MHPBID Owner’s Association since the City will be responsible for collecting and forwarding the assessments to DMHID Owner's Association. The City will be paid two percent (2%) of the amount of assessment collected to cover its costs of collection and administration. Through this contract the City can stipulate the repayment of the commitments made by the Downtown property owners, including repayment of the costs associated with the creation of the MHPBID ($64,500).

CEQA (California Environmental Quality Act):

Not a Project
Pursuant to CEQA, organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are therefore exempt activities.

Morgan Hill PBID Management District Plan
August 9, 2022 i
2024-2028
August 9, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

MORGAN HILL

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN AND ENGINEER’S REPORT

Morgan Hill PBID Management District Plan
August 9, 2022 ii
Contents
I. Overview......................................................................................................................... 1 II. Impetus........................................................................................................................... 3 III. Background ..................................................................................................................... 4 IV. Boundaries ...................................................................................................................... 5 V. Service Plan & Budget ..................................................................................................... 6 VI. Assessment Rate............................................................................................................ 10 VII. Governance ................................................................................................................... 11 VIII. Engineer’s Report.......................................................................................................... 12 Appendix 1 – Maximum Annual Assessment Rates........................................................................ 26 Appendix 2 – PBID Law................................................................................................................ 27 Appendix 3 – Map ......................................................................................................................... 39 Appendix 4 – Parcel Assessment Calculations................................................................................ 40 Appendix 5 – Total Estimated Maximum Cost Of Improvements, Maintenance, And Activities ... 52 Prepared by Civitas
www.civitasadvisors.com
(800)999-7781

August 9, 2022
Morgan Hill PBID Management District Plan

I. OVERVIEW
Developed by a growing coalition of property owners, the Morgan Hill Property and Business Improvement District (MHPBID) is a benefit assessment district whose main goal is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, increased occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to form the MHPBID.

Location: The MHPBID includes parcels north of Dunne, east of Del Monte, south of Main, and west of Butterfield, as shown on the map in Section IV.

Purpose: The purpose of the MHPBID is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. The MHPBID will provide Clean and Safe programs, Capital Improvements and Art Installations, Marketing and Special Events, and related Management and Administration directly and only to assessed parcels within its boundaries.

Budget: The MHPBID annual assessment budget for the initial year of its five (5) year operation is anticipated to be $282,680.72. The annual assessment budget may be subject to an increase in assessment rates of no more than three percent (3%) per year.

The assessment funds will be supplemented by non-assessment funds (such as grants and event income), so that the total budget for the initial year is estimated at $314,310.98. The amount of non-assessment funds is the minimum amount necessary to pay for the general benefit provided by MHPBID programs. Further detail on the separation of special and general benefit is provided in Section VIII.

Cost: The assessment rate (cost to the parcel owner) is based on parcel type, parcel square footage, and in some cases, linear frontage. To determine a parcel’s assessment, the applicable square footage and linear frontage rates in the table below is applied to the parcels within the MHPBID. Frontage rates are applied to parcels fronting East 3rd St, after Monterey Rd. intersection, Monterey Rd., and Depot St. Frontage rates are applied based on a parcel’s frontage street. The initial annual assessment rates are shown below. Assessment rates may be subject to an increase of no more than three percent (3%) per year.

Parcel type Square Footage
Assessment rate (sq. ft.)
Linear Frontage
Assessment rate (ln. ft.)
Commercial $0.10 $5.00
Non-profit $0.04 $2.00
Formation: MHPBID formation requires submittal of petitions from property owners representing more than 50% of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than 50%

August 9, 2022
Morgan Hill PBID Management District Plan

of the ballots received, weighted by assessment, be in support of the MHPBID formation.

Duration: The MHPBID will have a five (5)year-life beginning January 1, 2024, or as soon as possible thereafter, through December 31, 2028, or five (5) years after the start date.

Near the expiration of the MHPBID, the petition, ballot, and City Council hearing process must be repeated for the MHPBID to be renewed.

Management:The Downtown Morgan Hill Improvement District (DMHID) will serve as the Owners’ Association for the MHPBID. The Owners’ Association is charged with managing funds in accordance with this Plan and must submit an annual report to the City.

August 9, 2022
Morgan Hill PBID Management District Plan

II. IMPETUS
There are many benefits to the Downtown property owners to form the MHPBID, including:

1. Downtown Morgan Hill has become a Destination for Residents and Visitors alike.

While the City of Morgan Hill provides basic maintenance and repair in the Downtown district, the City’s aging landscape infrastructure, City parks, and new parking garage all demand more attention. Additionally, an increase in use and visitor trips cause even greater wear and tear; increased demand on public safety, and increased outdoor dining requires enhanced sidewalk cleaning and more consistent litter abatement.

2. Property Based Improvement Districts are good investments.

Property Business Improvement Districts ensure there are adequate services for growing districts and support activities that local municipalities cannot or are not able to fund. The Downtown Morgan Hill business district is maturing and has become a growing sales tax producing district within the City.

In order to protect and grow this investment, and to support continued sales tax growth within the Downtown district, parcel owners must be partners in the process that determines the level and frequency of services, and how new improvements and projects are implemented. The MHPBID will allow these owners to lead and shape future services and improvements through the MHPBID.

3. An Opportunity to Create a Private/Public Partnership with a Unified Voice for Downtown Morgan Hill.

Because parcel owners would be investing financial resources through the MHPBID, they will be looked upon as a strong partner in negotiations with the City and other public agencies. This partnership will have the ability to leverage the parcel owners’ investment with additional public and private investment in Downtown Morgan Hill.

4. An Opportunity to Establish Private Sector Management and Accountability.

Pursuant to an agreement with the City, a non-profit, private organization formed for the sole purpose of improving Downtown Morgan Hill will manage the services provided to the MHPBID. Annual MHPBID work plans and budgets are developed by a board composed of Downtown Morgan Hill property owners and stakeholders. Improvements and activities provided by the MHPBID are subject to performance standards, controls, and accountability.

August 9, 2022
Morgan Hill PBID Management District Plan

III. BACKGROUND
The International Downtown Association estimates that more than 1,500 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties.

PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are concentrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment.

Although funds are collected by the local government, they are then directed to a private nonprofit.

The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID.

PBIDs all over the globe have been proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes.

The MHPBID will be established pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California. Key provisions of the law include:
➢ Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID;
➢ Requires property owner input and support throughout the renewal process; ➢ Requires written support on both a petition and ballot from property owners paying 50% of proposed assessments;
➢ Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City; ➢ Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and
➢ Requires the PBID be renewed after a certain time period, making it accountable to property owners.

The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 2 of this document.

August 9, 2022
Morgan Hill PBID Management District Plan

IV. BOUNDARIES
The service area includes approximately 98 properties with 59 property owners. The MHPBID boundary is illustrated by the map below. A larger map is available on request by calling (916)437- 4300 or (800)999-7781 or visit https://www.choosemorganhill.com/mhpbid.

August 9, 2022
Morgan Hill PBID Management District Plan

V. SERVICE PLAN & BUDGET
A. Establishment
Property and business owners in Downtown Morgan Hill have been concerned about the need for coordinated supplemental services in the area for several years. City services and efforts in the area have been welcomed, but limited resources have not allowed for a more comprehensive approach to managing the Downtown and commercial area.

A service plan to provide special benefits to assessed properties was developed using several methods.

A series of property owner meetings, a survey of property owners, and an analysis of current property conditions and needs were all conducted. The primary needs identified were: Clean and Safe programs, Capital Improvements and Art Installations, and Marketing and Special Events. The MHPBID can provide these services to the District and directly benefit the assessed parcels within its boundaries.

B. Improvements, Maintenance, and Activities
The MHPBID will provide supplemental improvements, maintenance, and activities that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the MHPBID are provided by the City or other government agencies. The improvements, maintenance and activities will be provided directly and only to assessed parcels; they will not be provided to parcels that are not assessed. Each and every service is unique to the MHPBID, thus the benefits provided are particular and distinct to each assessed parcel.

1. Clean & Safe Programs
Safety and security services may include dedicated efforts to improve safety in Downtown. Programs may include installation of security cameras, additional Morgan Hill Police Department (MHPD) patrols, expanded MHPD Cadet Program services, or supplemental private security patrols. The patrol could serve as both a deterrent by creating a visible presence, and a respondent to incidences that occur. This program can offer concierge-type services to the Downtown visitors. The goal of the program is to increase usability of assessed parcels and address issues which discourage property owners, tenants, and customers from visiting assessed parcels, ultimately constituting and providing unique, special benefits to assessed parcels. These services may include, but are not limited to:
• Enhanced partnerships with local law enforcement to provide property and business owners direct communication with local law enforcement;
• A safety and patrol program to deter and report illegal street vending, illegal dumping, and street code violations. This program could address a myriad of quality-of-life problems including: public intoxication, panhandling, loitering, trespassing, and scavenging; • A safety program may be implemented to improve day and evening safety in the MHPBID by controlling vagrancy, property damage, encampment, and petty crimes; • Support crime prevention on assessed parcels by working closely with local law enforcement; and
• Respond and work to reduce nuisance behaviors which can deter tenants and customers on assessed parcels.

August 9, 2022
Morgan Hill PBID Management District Plan

The Clean & Safe program will make the MHPBID cleaner, more accessible, and more attractive to potential tenants and customers, and a safer place to do business through enhanced maintenance services. A regular schedule would be established for most of the maintenance services. Some maintenance services could be provided on an as-needed basis, while others could be provided on a regular basis. Maintenance services may include, but are not limited to:
• Installation of decorative lights;
• Regular litter removal services, including garbage, debris, and leaves; • Removal of bulky items and street sweeping services;
• On-demand graffiti removal services;
• Washing sidewalks adjacent to assessed properties on an as needed basis; and • Maintenance of landscaping, including the trimming and planting of trees and flowers.

2. Capital Improvements and Art Installations
The Capital Improvements and Art Installation program may use a multi-faceted approach to planning, design, and management of public spaces in the MHPBID. MHPBID funds could be leveraged to create a unique sense of place, which may include ongoing installation and maintenance of the twinkle lighting on street trees, rooftop lighting, wayfinding signage, seasonal banners and enhanced parking lot and street lighting, parking lot maintenance, and other public space improvements. Capital improvements will be funded to make the MHPBID more accessible, inviting, and useable. Small-scale improvements may include landscaping features, trash receptacles, and art installations and/or removal of concrete benches and raised planters; these funds will also be leveraged to seek additional money for large-scale projects. In order to pay for large-scale improvements, this portion of the budget may be held in reserve until such time as the balance is sufficient to pay for the improvement.

3. Marketing and Special Events
Marketing and Special Events would be provided to create an image of the MHPBID as a single destination with a set of unique opportunities. Further, the marketing program garners positive media coverage of the MHPBID and its services and attempts to improve the overall image of the MHPBID.

The program developed by the property owners will also include several tools to support the efforts of individual property owners and brokers to attract and retain tenants. The MHPBID will facilitate consistent and frequent communications with property owners and tenants. The marketing program may feature advertising, direct mail, special events and promotions designed to promote the assessed parcels, increase sales, and boost occupancy and lease rates.

4. Administration
The administration portion of the budget will be utilized for administrative costs associated with providing the activities and improvements for the MHPBID. These costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses.

5. Contingency/Reserve
The budget also includes a prudent fiscal reserve. Changes in data, lower than anticipated collections, higher than expected program costs, and other issues may change the revenue and expenses. In order to buffer the MHPBID for unexpected changes in revenue, and/or allow the Owners’ Association to fund other overhead or renewal costs, the reserve is included as a budget item. Should contingency

August 9, 2022
Morgan Hill PBID Management District Plan

funds remain at the expiration of the MHPBID, and property owners wish to renew the MHPBID, the remaining funds may be used for the costs of renewal.

6. Collection Fee
The City of Morgan Hill will retain two percent (2%) of the assessment to cover its actual costs in collecting and administering the assessment.

C. Annual Assessment Budget
A projected five (5)year assessment budget for the MHPBID is provided below. The overall assessment budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the MHPBID. The annual assessment budget is based on the following assumptions and guidelines:

1. The cost of providing improvements, maintenance, and activities may vary depending upon the market cost for those improvements, maintenance, and activities. Expenditures may require adjustment up or down to continue the intended level of improvements, maintenance, and activities.

2. The Owners’ Association and their Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year.

Any change will be submitted by the Owners’ Association and submitted with the Annual Report.

3. Funds not spent in any given year may be rolled over to the next year.

4. The assessment rate may be subject to annual increases that will not exceed three percent (3%) per year. Increases will be determined by the Owner Associations’ Board and will vary each year. The projections in the chart in Section E below illustrate the maximum annual three percent (3%) increase for all budget items.

D. Service Budget
The total improvements, maintenance, and activities assessment budget for 2024 that would be funded by property assessments is $282,680.72. In addition to the assessment revenue, the programs will be supplemented by non-assessment funds. The total of non-assessment funds, and the determination of special and general benefit, is included in the Engineer’s Report. The total of assessment and nonassessment funds is provided in Appendix 5. Below is an illustration of the estimated total assessment budget allocations for each budget category for the initial year of the five (5) year life of the MHPBID Non-assessment funds may be shifted between budget categories as needed by the Owners’ Association Board of Directors.……………………………………………

August 9, 2022
Morgan Hill PBID Management District Plan

E. Annual Maximum Budget
The budget below assumes the maximum annual increase of three percent (3%) is enacted and that there are no changes to the categorical budget allocations.

Year Clean & Safe
Capital
Improvements &
Art Installations
Marketing &
Special Events Administration Contingency/Reserve
Collection
Fee Total
2024 $169,608 $42,402 $28,268 $28,268 $8,480 $5,654 $282,681 2025 $174,697 $43,674 $29,116 $29,116 $8,735 $5,823 $291,161 2026 $179,938 $44,984 $29,990 $29,990 $8,997 $5,998 $299,896 2027 $185,336 $46,334 $30,889 $30,889 $9,267 $6,178 $308,893 2028 $190,896 $47,724 $31,816 $31,816 $9,545 $6,363 $318,160 Total $900,474 $225,119 $150,079 $150,079 $45,024 $30,016 $1,500,790 Clean & Safe,
$169,608.43, 60%
Capital Improvements
and Art Installations,
$42,402.11, 15%
Marketing and Special
Events, $28,268.7, 10%
Administration,
$28,268.07, 10%
Contingency/Reserve,
$8,480.42, 3%
Collection Fee,
$5,653.62, 2%
Total Assessment Budget: $282,680.72

August 9, 2022
Morgan Hill PBID Management District Plan

VI. ASSESSMENT RATE
A. Assessment Formula
Individual assessed parcels shall be assessed a rate according to each assessed parcel’s proportionate special benefit derived from the services provided to each assessed parcel, as shown in the table below.

Parcel type Square Footage
Assessment rate (sq. ft.)
Linear Frontage
Assessment rate (ln. ft.)
Commercial $0.10 $5.00
Non-profit $0.04 $2.00
B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size If the zoning, ownership, building square footage, or parcel size within the MHPBID boundary changes during the term of the MHPBID, the assessment amount may be modified according to the assessment methodology detailed in this Plan that is applicable to the parcel. These changes may be a result of land adjustments (including but not limited to lot splits, consolidations, right away setbacks, etc.), new construction, new ownership, or changes in zoning.

C. Assessment Ballot and Public Notice
During the hearing process, an Assessment Ballot and a Public Notice will be sent to owners of each parcel in the MHPBID. The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or type differ from those used to calculate the amount shown on the Assessment Ballot. A list of parcels to be included in the MHPBID is provided in Appendix 1.

D. Time and Manner for Collecting Assessments
As provided by State Law, the MHPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Santa Clara (County). Parcels which do not receive property tax bills will be invoiced by the County. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Santa Clara shall distribute funds collected to the City of Morgan Hill which shall forward them to the MHPBID. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the MHPBID assessments.

E. Bonds
Bonds shall not be issued.

August 9, 2022
Morgan Hill PBID Management District Plan

VII. GOVERNANCE
A. Owners’ Association
The MHPBID shall be governed by Downtown Morgan Hill Improvement District (DMHID) Board, with oversight from the Morgan Hill City Council. DMHID, shall serve as the Owners’ Association described in the Streets and Highways Code §36612. The Board of Directors of the DMHID and its staff are charged with the day-to-day operations of the MHPBID.

A majority of the Board of Directors of the DMHID must be parcel owners paying the assessment.

In addition, the Board of Directors must represent a variety of interests within the MHPBID and respond to the needs of all properties within the MHPBID.

B. Brown Act & Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act (“Brown Act”) and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association must act as a legislative body under the Brown Act (Government Code §54950 et seq.). Thus, meetings of the Owners’ Association Board of Directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The Owners’ Association shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 2). The annual report is a prospective report for the upcoming year and must include:

1. Any proposed changes in the boundaries of the MHPBID or in any benefit zones or classification of property within the district;

2. The improvements, maintenance, and activities to be provided for that fiscal year;

3. The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year;

4. The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year;

5. The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and

6. The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this Plan.

7. A statement confirming that all required annual federal and state filings to ensure corporate good standing and to maintain tax-exempt status are completed and up-to-date.

August 9, 2022
Morgan Hill PBID Management District Plan

VIII. ENGINEER’S REPORT
The MHPBID’s parcel assessments will be imposed in accordance with the provisions of Article XIII D of the California Constitution. Article XIII D provides that “only special benefits are assessable,”1 and requires the City to “separate the general benefits from the special benefits conferred on a parcel.”2 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public-at-large.”3 Conversely, a general benefit is “conferred on real property located in the district or to the public-at-large.”4 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”5
The Engineer determined the total cost of the improvements and activities, quantified the general benefit accruing to the public-at-large and non-assessed parcels adjacent to and within the MHPBID, and separated that amount from the special benefit accruing to the assessed parcels. Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements, maintenance, and activities accordingly. The Engineer’s determinations and detailed calculations are summarized in this report.

A. Separation of General and Special Benefits
Each of the improvements and activities, and the associated costs and assessments within the MHPBID, were reviewed, identified, and allocated based on special and general benefits pursuant to Article XIII D of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parcels located within the MHPBID boundaries as determined below.

1. General Benefits
Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non-assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the MHPBID’s boundaries have been narrowly drawn, programs have been carefully designed to provide special benefits, and activities and improvements will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the MHPBID’s activities and improvements.

The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.”6 “Generally, this separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”7 The first step that must be undertaken to separate general and special benefits provided by the MHPBID’s activities and improvements is to identify and quantify the general benefits. There are two bodies who can receive general benefits: the public-at-large within the MHPBID, and non-assessed parcels within and surrounding the MHPBID. 1 Cal. Const., art. XIII D, §4(a)
2 Cal. Const., art. XIII D, §4(a)
3 Id, §2(i)
4 Cal Const., art XIII D §2(i)
5 Cal. Const., art. XIII D, §4(a)
6 Cal. Const., art XIII D §4(a)
7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416

August 9, 2022
Morgan Hill PBID Management District Plan

a. General Benefit to the Public-at-Large
Although the activities and improvements are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public-at-large within the MHPBID. State law indicates that “Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.”8 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”9 Further, “the value of any incidental or collateral effects that arise from the improvements, maintenance or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.”10 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by activities and improvements that provide special benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels.

Intercept surveys conducted in similar districts have found that approximately 97.3% of pedestrian traffic within PBID boundaries is engaged in business on assessed parcels, while the remaining approximately 2.7% is simply passing through and not engaging in business on the assessed parcels11.

The 2.7% of traffic passing through does not have any connection to the assessed parcels, and therefore does not represent a special benefit to the assessed parcels. The 2.7% will, however, receive a derivative and indirect general benefit as a result of the activities and improvements being provided in the MHPBID. Therefore, it is estimated that 2.7% of the benefit created by the MHPBID’s services is general benefit provided to the public-at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of activities and improvements will be paid for with funds not obtained through assessments. Using the 2.7% figure, based on the initial year activity and improvement budget, the value of this general benefit to the public-at-large is $8,486.40 ($314,310.98*0.027).
b. General Benefit to Non-Assessed Parcels
Although they are only provided directly to the assessed parcels, the MHPBID’s activities and improvements may also confer general benefits upon non-assessed parcels within and surrounding the MHPBID. One study examining property values in PBID areas found “no evidence of spill-over impacts (either good or bad) on commercial properties located just outside the PBID’s boundaries;”12 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”13 It is reasonable to conclude that activities and improvements within the MHPBID will have an incidental impact on non-assessed parcels surrounding or within the MHPBID boundaries. Although the legislature has indicated that “the value of any incidental or collateral effects that arise from the improvements, 8 Streets and Highways Code section 36601(h)(2)
9 Ibid
10 Streets and Highways Code Section 36622(k)(2)
11 Surveys conducted in: North Park, San Diego (January 2015); Mack Road, Sacramento (July 2014); and Sunrise MarketPlace, Citrus Heights (December 2013)
12 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4
13 Beutz v. Riverside (2010) 184 Cal.App.4th 1516

August 9, 2022
Morgan Hill PBID Management District Plan

maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit,”14 the California Court of Appeals has noted that “the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement.”15 Those derivative and indirect impacts are considered general benefits and will be quantified and separated.

In this Engineer’s opinion, because activities and improvements are provided only within the MHPBID and on its perimeter, parcels separated from the MHPBID by either at least one intervening parcel or an impassable physical barrier such as a wall, freeway, or ditch will not receive spill over benefits. Parcels separated from the MHPBID will not benefit because they are physically removed from the actual location of activities and improvements provided, and do not face serviced parcels.

Therefore, this analysis considers non-assessed parcels within the MHPBID’s boundaries and surrounding parcels that are immediately adjacent to and accessible from the MHPBID’s boundaries.

The total MHPBID activity and improvement budget for the first year is $314,310.98. After reducing the activity and improvement budget by the general benefit to the public-at-large ($8,486.40), the remaining benefit to parcels is $305,824.58. This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public-at-large has been proportionally allocated to the MHPBID’s activity and improvement categories as shown in the following table.

Category Benefit to Parcels Benefit to
Public-at-Large Total
Clean & Safe $184,010.57 $5,106.15 $189,116.72
Capital Improvements & Art
Installations $45,271.89 $1,256.26 $46,528.15
Marketing & Special Events $30,668.43 $851.03 $31,519.46 Administration $30,582.46 $848.64 $31,431.10
Contingency/Reserve $9,174.74 $254.59 $9,429.33
Collection Fee $6,116.49 $169.73 $6,286.22
Total $305,824.58 $8,486.40 $314,310.98
To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group.
14 Streets and Highways Code section 36622(k)(2)
15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077

August 9, 2022
Morgan Hill PBID Management District Plan

i. Benefit Factors
All parcels within and adjacent to the MHPBID have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each. The determination of benefit factors for each type of activity and improvement follows.

Improvements
The improvements to be provided by the MHPBID provide two types of special benefits:
• Improvement – The primary special benefit provided by the MHPBID’s improvements is the improvements themselves, which are available to tenants and customers of assessed parcels. • Proximity – The MHPBID’s improvements also provide the special benefit of being in proximity to a parcel that is benefitting from an improvement, as parcels will enjoy the spillover benefits of neighboring parcels utilizing the improvements.

The majority of the benefit is the improvements themselves; proximity is a lesser benefit. It is this Engineer’s estimation that eighty-five percent (85%) of the special benefit from the MHPBID’s improvements is the improvement, while the proximity special benefit accounts for fifteen percent (15%) of the special benefit. Assessed parcels will receive both benefits; non-assessed parcels within and adjacent to the MHPBID will not be directly improved, and therefore only receive the general benefit of proximity.

Tangible Activities
The tangible activities (those that are physically provided via a person or people working throughout the district) to be provided by the MHPBID generate three types of special benefits:
• Service – The primary special benefit provided by the MHPBID’s physical activities is the actual service. That is, the actual cleanliness and safety created by security and maintenance clean and safe personnel.
• Presence – The MHPBID’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well-maintained and safe. The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained. There are studies which link the perception of cleanliness to a perception of increased security.
• Proximity – The MHPBID’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness.

The majority of the benefit received by the parcels is the results of the MHPBID’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy-five percent (75%) of the special benefit from the MHPBID’s physical activities is the service, while the presence and proximity benefits each account for twelve and one-half percent (12.5% presence, 12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non-assessed parcels within and adjacent to the MHPBID will not be directly serviced and therefore only receive the general benefit of proximity.

August 9, 2022
Morgan Hill PBID Management District Plan

Intangible Activities
Some of the MHPBID’s activities, such as marketing, are distinct in that they are not provided to a targeted area within the MHPBID, rather they are provided via internet, radio, and other forms of media and targeted at an audience outside the MHPBID in an effort to bring the audience into the MHPBID. These activities provide two types of special benefits:

Direct Exposure – The primary special benefit provided by the MHPBID’s intangible activities is exposure. The intangible activities increase awareness of the MHPBID as a commercial and business destination and lead to increased patronage.

Incidental Exposure – The MHPBID’s intangible activities will also have a secondary special benefit of incidental exposure, such as word-of-mouth exposure, that results from the direct exposure and increases awareness of the MHPBID as a commercial and business destination.

The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten percent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non-assessed parcels within and adjacent to the MHPBID will not be directly marketed and therefore only receive the general benefit of incidental exposure.

Factors Determined
Based on the foregoing analysis, all assessed parcels within the MHPBID specially benefit from the MHPBID’s activities and improvements, and have been assigned a benefit factor of 1.0. Parcels that are not assessed have been assigned benefit factors based on the portion of the benefit they will receive, as described above. The non-assessed parcels will benefit from fifteen percent (15%) of the improvements, twelve and one-half percent (12.5%) of the tangible activities, and ten percent (10%) of the intangible activities; therefore they have been assigned benefit factors of 0.15, 0.125, and 0.10 respectively.
ii. Non-Assessed Benefit Characteristics
There are two types of parcels that are not assessed; those within the MHPBID and those immediately adjacent to and accessible from the MHPBID. Because they generally benefit in a differing manner, distinct parcel characteristics are used to quantify the general benefit to each type. • Inside – Non-assessed parcels inside of the MHPBID are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefit of proximity. These parcels are impacted on more than one side by the MHPBID’s activities and improvements and activities and improvements are provided all around them. Because these parcels are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measure the general benefit they receive. • Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels. These parcels generally benefit differently than those inside the MHPBID, because these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently. To account for this

August 9, 2022
Morgan Hill PBID Management District Plan

difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive. The linear footage is the length of parcels fronting public streets.

The amount listed for “assessed linear feet” is the value for all assessed parcels within the MHPBID and the amount listed for “non-assessed linear feet” is the value for all non-assessed parcels adjacent to the district boundary.
iii. Calculations
To quantify and separate the general benefit to non-assessed parcels, the following calculations were undertaken for each budget category.

1. The total service budget for each category was determined and the amount of general benefit to the public-at-large was subtracted from the category budget.

2. The benefit factor applicable to each activity or improvement was multiplied by the parcel square footage or linear frontage of assessed and non-assessed parcels, to determine the number of benefit units received by each parcel group.

3. The benefit units for all parcel groups were summed, and the percentage of benefit units attributable to each parcel group was calculated.

4. The total remaining activity and improvement budget, less the amount already determined to be general benefit to the public-at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology.

5. The special and general benefit resulting from the administration and contingency / reserve portions of the budget were determined based on the proportional allocation of benefits derived from activities and improvements.

Clean & Safe
The Clean & Safe budget, minus the amount of general benefit to the public-at-large, is $184,010.57.

The calculations below determine the amount of general benefit to non-assessed parcels within the MHPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 2,478,944 X1.000 =2,478,944 94.82% X$184,010.57 =$174,483.42 NonAssessed 1,082,843 X0.125 =135,355.38 5.18% X$184,010.57 =$9,527.15 The Clean & Safe budget, minus the amount of general benefit to the public at-large and non-assessed parcels within the MHPBID, is $174,483.42. The calculations below determine the amount of general benefit to parcels adjacent to the MHPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 17,461 1.000 =17,461.00 97.21% X$174,483.42 =$169,615.33 Adjacent 4,015 0.125 =501.88 2.79% X$174,483.42 =$4,874.99 Therefore, the allocation of the clean & safe budget is as follows:

August 9, 2022
Morgan Hill PBID Management District Plan

General Benefit – Public At Large $5,106.15
General Benefit – Inside Parcels $9,527.15
General Benefit – Adjacent Parcels $4,874.99
Special Benefit $169,608.43
Total $189,116.72
Capital Improvements & Art Installations
The capital improvements & art installations budget, minus the amount of general benefit to the public-at-large, is $45,271.89. The calculations below determine the amount of general benefit to nonassessed parcels within the MHPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 2,478,944 X1.000 =2,478,944.00 95.815% X$45,271.89 =$43,377.11 NonAssessed 1,082,843 X0.100 =108,284.3 4.185% X$45,271.89 =$1,894.78 The capital improvements & art installations budget, minus the amount of general benefit to the public at-large and non-assessed parcels within the MHPBID, is $43,377.11. The calculations below determine the amount of general benefit to parcels adjacent to the MHPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 17,461 X1.000 =17,461.00 97.75% X$43,377.11 =$42,402.11 Adjacent 4,015 X0.100 =401.50 2.25% X$43,377.11 =$975.00 Therefore, the allocation of the capital improvements & art installations budget is as follows:

General Benefit – Public At Large $1,256.26
General Benefit – Inside Parcels $1,894.78
General Benefit – Adjacent Parcels $975.00
Special Benefit $42,402.11
Total $46,528.15
Marketing & Special Events
The marketing & special events budget, minus the amount of general benefit to the public-at-large, is $30,668.43. The calculations below determine the amount of general benefit to non-assessed parcels within the MHPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget

August 9, 2022
Morgan Hill PBID Management District Plan

Assessed 2,478,944 X1.000 =2,478,944.00 94.82% X$30,668.43 =$29,080.57 NonAssessed 1,082,843 X0.125 =135,355.38 5.18% X$30,668.43 =$1,587.86 The marketing & special events budget, minus the amount of general benefit to the public at-large and non-assessed parcels within the MHPBID, is $29,080.57. The calculations below determine the amount of general benefit to parcels adjacent to the MHPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 17,461 1.000 =17,461.00 97.21% X$29,080.57 =$28,268.07 Adjacent 4,015 0.125 =501.88 2.79% X$29,080.57 =$812.50 Therefore, the allocation of the marketing & special events budget is as follows:

General Benefit – Public At Large $851.03
General Benefit – Inside Parcels $1587.86
General Benefit – Adjacent Parcels $812.50
Special Benefit $28,268.07
Total $31,519.45
Administration, Contingency/Reserve, and Collection Fee The administration, contingency/reserve and collection fee budget line items relate to the activities and improvements provided. These costs have been allocated proportionally based on the special and general benefit provided by each category.

Special Benefit to
Parcels
General Benefit to
Parcels
Clean & Safe $169,608.43 $14,402.14
Capital Improvements & Art
Installations $42,402.11 $2,869.78
Marketing & Special Events $28,268.07 $2,400.36
Activity Totals $240,278.61 $19,672.28
Percent 92.43% 7.57%
Administration,
Contingency/Reserve, & Collection
Fee
$42,402.11 $3,471.58
Total Parcel Benefits $282,680.72 $23,143.86
iv. Total Benefits

August 9, 2022
Morgan Hill PBID Management District Plan

Based on the foregoing calculations, the total benefits to assessed parcels, non-assessed parcels, and the general public are:

Special
Benefit to
Parcels
General
Benefit to
Parcels
General
Benefit to
Public Total
Clean & Safe $169,608.43 $14,402.14 $5,106.15 $189,116.72 Capital Improvements & Art Installations $42,402.11 $2,869.78 $1,256.26 $46,528.15 Marketing & Special Events $28,268.07 $2,400.36 $851.03 $31,519.46 Administration, Contingency/Reserve, &
Collection Fees $42,402.11 $3,471.58 $1,272.96 $47,146.65 Total $282,680.72 $23,143.86 $8,486.40 $314,310.98
c. Non-Assessment Funding
The programs funded by the MHPBID receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds. These funding sources are anticipated to equal or exceed the amount of general benefit conferred annually by the MHPBID’s activities and improvements, $31,630.26. These non-assessment funds will be used to pay for the general benefit provided by the MHPBID’s activities and improvements, ensuring that parcel assessments will only be used to provide special benefits and “any additional costs of providing general benefits [are] not included in the amounts assessed.”16

2. Special Benefit
The activities and improvements to be provided by the MHPBID constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.”17 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”18 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.”19 To determine the total special benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($31,630.26) from the total value of the activities and improvements ($314,310.98). The remaining $282,680.72 is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided by the activities and improvements. The Total Assessment has been proportionally divided among the assessed parcels so that no assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same proportionate special benefit pay the same assessment.”20 16 Streets and Highways Code section 36632(a)
17 Cal. Const., art XIII D §4(a)
18 Ibid
19 Streets and Highways Code section 36615.5
20 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057

August 9, 2022
Morgan Hill PBID Management District Plan

Service Provided
Total Benefit
Value
General
Benefit Value
to Public
Benefit Value
to Parcels
(Special &
General)
Special
Benefit to
Assessed
Parcels
Clean & Safe $189,116.72 $5,106.15 $14,402.14 $169,608.43 Capital Improvements & Art
Installations $46,528.15 $1,256.26 $2,869.78 $42,402.11 Marketing & Special Events $31,519.46 $851.03 $2,400.36 $28,268.07 Administration $31,431.10 $848.64 $2,314.38 $28,268.07
Contingency/Reserve $9,429.33 $254.59 $694.32 $8,480.42 Collection Fee $6,286.22 $169.73 $462.88 $5,653.62
TOTAL $314,310.98 $8,486.40 $23,143.86 $282,680.72
B. Assessment Methodology

1. Base Formula
Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel type and parcel square footage. These variables are appropriate measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables.

Determination of Assessment Rates
“Because not all parcels in the district are identical in size…some will receive more special benefit than others.”21 Each of the variables used relates directly to the service level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long-term value implications of the MHPBID. The larger a parcel, the more services and benefit the parcel will receive.

Parcel frontage footage along East 3
rd Street after Monterey Road intersection, Monterey Road, and Depot Street is the length of the side of a parcel that fronts East 3 rd Street after Monterey Road
intersection, Monterey Road, and Depot Street, measured in linear feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long-term value implications of the MHPBID.

Because not all parcels in the MHPBID are identical in use, some will receive more special benefit than others. For example, a commercial parcel will benefit to a lesser degree than a retail trade use parcel, because it will not enjoy the benefits of increased commerce resulting from the services.

Further detail on the benefit to each parcel type is in the following pages. To determine the assessment rates, the assessed parcels were classified by the estimated benefit each type of parcel receives, the estimated special benefit value of the activities and improvements provided to each type was 21 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708

August 9, 2022
Morgan Hill PBID Management District Plan

determined based on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by each parcel type was determined.

To determine the assessment rates, the estimated special benefit value for each parcel type was divided by the total assessable parcel square footage, parcel linear footage, and parcel type, as shown in the tables below.

Parcel Type
Parcel types were categorized based on their typical amount of foot and vehicle traffic on the various parcels. Retail trade use parcels will receive the highest level of services because their owners aim to benefit from increased customers or increased use by visitors and receive the highest volume of foot and vehicle traffic. However, parcels with low traffic, such as private tax-exempt parcels, will receive a lower level of services, because their owners primarily aim to benefit from increased cleanliness and security and receive the lowest level of foot and vehicle traffic. The approximate cost of special benefit services by parcel type was determined. Then, the special benefit cost of services by type was divided by the frontage and square footage of those parcels to determine the assessment rates.

Parcel Size and Linear Frontage along East 3rd Street after Monterey Road intersection, Monterey Road, and Depot Street
The MHPBID’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size and parcel frontage along East 3
rd Street after Monterey Road intersection, Monterey Road, and Depot Street. The frontage budget for each parcel type will be tied to frontage activities. Frontage is the length of that portion of the parcel which touches East 3 rd Street after Monterey Road intersection,
Monterey Road, and Depot Street, measured in linear feet. Frontage is relevant to each parcel’s special benefit received from services provided along its perimeter. The more frontage a parcel has, the more services and benefit it will receive.

Parcel Type Initial Parcel
Size Budget
Parcel
Square
Footage
Initial Parcel
Assessment Rate
($/sqft/yr)
Commercial $244,246.60÷
2,442,466
= $0.10
Non-Profit $1,459.12 ÷ 36,478 = $0.04
Parcel Type
Initial Parcel
Size Budget
Parcel
Frontage
Initial Parcel
Assessment Rate
($/ft/yr)
Commercial $36,735.00 ÷ 7347 = $5.00
Non-Profit $240.00 ÷ 120 = $2.00
Summary of Assessment Rates
Therefore, for the initial year, the maximum annual assessment rates to parcels are as shown below and in Appendix 1. Maximum annual assessment rates may be subject to an increase of no more than three percent (3%) per year as shown in Appendix 1. Pursuant to Streets and Highways Code §36622(f), bonds shall not be issued.

August 9, 2022
Morgan Hill PBID Management District Plan

If you would like more information about parcel assessments, please call Civitas at (916)437-4300 or (800)999-7781.

Parcel type Square Footage
Assessment rate (sq. ft.)
Linear Frontage
Assessment rate (ln. ft.)
Commercial $0.10 $5.00
Non-profit $0.04 $2.00
Sample assessment calculations are shown in Appendix 4.

Parcel Categorization
Assessment categories for each parcel were determined based on the parcel’s land use code as shown in the Assessor’s Records and supplemented by other available information. In general, the assessment category for each parcel reflects the use of the parcel as described by its land use code.

Parcels with multiple uses, such as strip malls with retail storefronts and commercial use buildings on the same parcel, are assessed at the rate applicable to the use that occupies the largest portion of the building square footage. In cases where the land use code and actual use differ, the actual use prevails for classification purposes.

1. Commercial
Commercial parcels will receive and benefit from all MHPBID services, which are aimed to attract and increase customers and visitors to assessed parcels. These parcels have a commercial component because their owners aim to benefit from tenant rents, increased customers, or increased use by visitors. The primary purpose of the MHPBID is to provide property owner services which generate special benefits to parcels with commercial uses.

2. Non-Profit
Parcels owned and operated by non-profit organizations will receive and benefit from a portion of the MHPBID’s services. They will not, however, receive the same degree of special benefit that is received by commercial parcels as they are not used for commercial purposes. These parcels will receive and benefit from a portion of the MHPBID’s clean and safe programs. They will not receive nor benefit from capital improvements & art installation or marketing & special events services. Due to their lower pedestrian traffic and non-commercial nature, these parcels have a lower need for services; therefore, they will receive services less frequently and less intensively that commercial parcels. Thus, non-profit parcels will be assessed at a rate commensurate with the degree of special benefit.

3. Government-Owned Parcels
The California Constitution, in Article XIII D, provides that “parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” No public agency owning parcels in the district has made such a demonstration. Government-owned parcels within the MHPBID will receive special benefit from the full range of MHPBID services and will therefore be assessed at the full commercial rate, commensurate with the degree of special benefit. There are twenty-three (23) City of Morgan Hill parcels and one (1) County of Santa Clara parcel.

August 9, 2022
Morgan Hill PBID Management District Plan

4. Exempted Parcels/Non-Assessed
There are 337 parcels within the MHPBID that will not be assessed. These parcels will not specially benefit from or directly receive the MHPBID’s activities and improvements. These parcels are accounted for in the analysis of general benefit provided to non-assessed parcels within the MHPBID.

These parcels have the following use:
• Residential Condominium Parcels: The state legislature has determined that “properties zoned exclusively for residential use…are conclusively presumed not to benefit from the improvements and services funded through these assessments, and shall not be subject to any assessment.”22 The activities and improvements to be provided are designed to specially benefit commercial and parking parcels via increased commerce, occupancy, and lease rates.

None of these benefits apply to residential parcels, which will not be serviced or benefit from the MHPBID’s activities. Residential parcels include single family residential, condominiums and multi-family parcels.
• Vacant Parcels: Vacant means a parcel that has no building, is an undeveloped property, and is not an improved parking lot, utility, park, or similar parcel that is designed to be used without a building. Vacant parcels will not benefit from MHPBID services. Vacant parcels are those parcels with no commercial activity, and thus will not benefit from being maintained through clean and safe programs, capital improvements & art installations, or marketing & special events.

5. Changes in Data
Every effort has been made to ensure each parcel included in the MHPBID is clearly identified and that all parcels included in the MHPBID are consistent in the boundary map and the assessment calculation table. However, errors in data can and may arise or data may change after formation of the MHPBID. Inconsistencies may include updated parcel sizes or parcel splits. If inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map.

If the parcel size or type of a parcel changes during the term of the MHPBID, the assessment calculation may be modified accordingly.

Categorization Appeals
The category determined for each parcel is shown in Appendix 4. The use for each parcel is established at formation and may be updated upon each renewal. If a parcel owner believes their parcel has been mis-classified or has changed, they may appeal in writing to the City of Morgan Hill for re-consideration. Appeals must be received by the City no later than June 1 of each year. Appeals must include the parcel number, current classification, requested classification, and the evidence upon which the appeal is based (for instance if a parcel is occupied by a non-profit, but classified as commercial, a current photo of the non-profit showing the building number). Appeals will not provide retroactive reductions.

Appeals should be made to:

Economic Development Director
17575 Peak Avenue, Morgan Hill, CA 95037
22 Streets and Highways Code § 36632(c)

August 9, 2022
Morgan Hill PBID Management District Plan

C. Assessment Notice
During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the MHPBID. The Assessment Ballot provides an estimated assessment for each parcel. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage, linear front footage, or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 4.

D. Time and Manner for Collecting Assessments
As provided by State Law, the MHPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Santa Clara. Alternatively, the MHPBID assessment may be collected by the City of Morgan Hill if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Santa Clara shall distribute funds to the City of Morgan Hill who shall then distribute funds collected to DMHID. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the MHPBID assessments.

E. Bonds
Bonds will not be issued to finance services as a part of this MHPBID.

F. Engineer’s Certification
I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Downtown Morgan Hill Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report.

Review of this Morgan Hill Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by:
__________________________
Ross Peabody
State of California
__
Date
This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 3) and the Boundary Map. Reproduction and distribution of only Section VII of this Management District Plan violates the intent of this stamp and signature.

August 9, 2022
Morgan Hill PBID Management District Plan

APPENDIX 1 – MAXIMUM ANNUAL ASSESSMENT RATES
The table below illustrates the maximum annual assessment rates with the assumption that the rates will be increased annually by three percent (3%). The maximum rates listed are a required disclosure and not the anticipated course of action.

Square Footage
Year Commercial Non-Profit
2024 $0.100 $0.040
2025 $0.103 $0.041
2026 $0.106 $0.042
2027 $0.109 $0.044
2028 $0.113 $0.045
Linear Frontage
Year Commercial Non-Profit
2024 $5.000 $2.000
2025 $5.150 $2.060
2026 $5.305 $2.122
2027 $5.464 $2.185
2028 $5.628 $2.251

August 9, 2022
Morgan Hill PBID Management District Plan

APPENDIX 2 – PBID LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property.

August 9, 2022
Morgan Hill PBID Management District Plan

(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

August 9, 2022
Morgan Hill PBID Management District Plan

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9

August 9, 2022
Morgan Hill PBID Management District Plan

(commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

August 9, 2022
Morgan Hill PBID Management District Plan

36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing

August 9, 2022
Morgan Hill PBID Management District Plan

with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code.

August 9, 2022
Morgan Hill PBID Management District Plan

(b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,

August 9, 2022
Morgan Hill PBID Management District Plan

as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and

August 9, 2022
Morgan Hill PBID Management District Plan

penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

August 9, 2022
Morgan Hill PBID Management District Plan

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

August 9, 2022
Morgan Hill PBID Management District Plan

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

August 9, 2022
Morgan Hill PBID Management District Plan

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

August 9, 2022
Morgan Hill PBID Management District Plan
39 APPENDIX 3 – MAP

August 9, 2022
Morgan Hill PBID Management District Plan
40 APPENDIX 4 – PARCEL ASSESSMENT CALCULATIONS
APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72604007 42,180 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613004 4,800 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613008 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613009 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613010 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613011 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613012 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613013 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613014 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613015 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613016 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613019 5,600 $0.00 40 0 0 40 $0.00 $0.00 SFR
72613020 5,600 $0.00 40 0 0 40 $0.00 $0.00 SFR
72614002 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614003 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614004 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614005 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614006 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614016 11,200 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614017 8,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614018 8,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614021 5,040 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614022 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614023 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614039 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614040 4,080 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614045 6,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614046 6,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614053 7,462 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614055 4,440 $0.00 0 0 0 0 $0.00 $0.00 SFR
72614057 6,000 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707005 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707008 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707015 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707018 5,460 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707021 4,000 $0.00 0 0 0 0 $0.00 $0.00 SFR

August 9, 2022
Morgan Hill PBID Management District Plan
41 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
76707022 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707023 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707034 8,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707035 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707036 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707037 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707038 7,700 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707039 12,000 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707040 12,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707043 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707053 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707054 21,700 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707056 18,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707060 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76707061 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708001 8,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708012 31,080 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708021 12,000 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708025 8,000 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708028 4,200 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708039 11,218 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708040 9,717 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708041 12,400 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708044 10,000 $0.00 80 0 0 80 $0.00 $0.00 SFR
76708047 22,651 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708048 2,202 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708049 1,695 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708050 1,694 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708051 2,193 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708052 2,193 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708053 1,694 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708054 1,694 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708055 2,071 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708056 7,903 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708057 3,840 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708058 3,497 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708059 3,156 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708060 1,865 $0.00 0 0 0 0 $0.00 $0.00 SFR

August 9, 2022
Morgan Hill PBID Management District Plan
42 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
76708061 1,620 $0.00 0 0 0 0 $0.00 $0.00 SFR
76708062 0 $0.00 0 0 0 0 $0.00 $0.00 SFR
76748008 1,543 $0.00 0 0 0 0 $0.00 $0.00 SFR
72613022 22,400 $0.04 0 0 0 0 $2.00 $896.00 NP
76708014 7,281 $0.04 40 0 0 40 $2.00 $371.24 NP
76708015 6,797 $0.04 80 0 0 80 $2.00 $431.88 NP
72613023 816 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72613024 780 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72613025 840 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72613026 840 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72613027 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72613028 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651002 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651003 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651004 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651005 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651006 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651007 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651008 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651009 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651010 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651011 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651012 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651013 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651014 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651015 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651057 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651058 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651059 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651060 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651061 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651062 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651063 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651064 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651065 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651066 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651067 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651068 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
43 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72651069 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651070 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651071 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651072 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651073 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651074 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651075 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651076 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651077 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651078 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651079 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651081 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651082 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651083 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651084 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651085 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651086 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651087 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651088 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651090 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651091 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651092 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651093 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651094 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651095 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651096 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651097 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651098 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651099 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651100 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651101 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651102 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651104 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651105 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651106 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651107 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651108 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651109 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
44 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72651110 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651111 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651112 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651113 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651114 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651115 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651116 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651117 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651118 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651119 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651120 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651121 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651122 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651123 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651124 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651125 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651126 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651127 580 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651128 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651129 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651130 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651131 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651132 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651133 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651134 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651135 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651136 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651137 712 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651138 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651139 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651140 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651141 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651142 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651143 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651144 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651145 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651146 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651147 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
45 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72651148 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651149 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651150 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651151 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651152 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651153 861 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651154 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651155 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651156 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651157 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651158 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651159 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651160 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651161 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651162 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651163 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651164 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651165 809 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651166 614 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651167 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651168 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72651169 875 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652001 1,788 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652002 1,552 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652003 1,463 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652004 1,463 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652005 1,552 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652006 1,552 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652007 1,463 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652008 1,463 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652009 1,552 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652010 1,753 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652011 1,383 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652012 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652013 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652014 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652015 1,183 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652016 1,183 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
46 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72652017 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652018 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652019 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652020 1,382 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652021 1,380 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652022 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652023 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652024 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652025 1,183 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652026 1,183 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652027 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652028 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652029 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652030 1,386 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652031 1,425 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652032 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652033 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652034 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652035 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652036 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652037 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652038 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652039 1,242 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72652040 1,475 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654001 778 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654002 583 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654003 773 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654004 601 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654005 563 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654006 770 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654007 574 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654008 770 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654009 808 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654010 615 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654011 600 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654012 717 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654013 463 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654015 697 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
47 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72654016 596 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654017 565 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654018 714 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654019 697 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654020 596 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654021 565 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654022 714 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654023 742 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654024 591 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654025 660 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654026 557 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654027 736 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654028 338 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654029 334 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72654030 514 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655001 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655002 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655003 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655004 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655005 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655006 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655007 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655008 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655009 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655010 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655011 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655012 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655013 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655014 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655015 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72655016 1,390 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748001 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748002 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748003 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748004 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748005 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748006 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748007 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO

August 9, 2022
Morgan Hill PBID Management District Plan
48 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
76748009 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
76748010 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
72604001 98,058 $0.10 0 0 0 0 $5.00 $9,805.80 COM
72604008 34,816 $0.10 0 0 0 0 $5.00 $3,481.60 COM
72604015 54,450 $0.10 0 0 0 0 $5.00 $5,445.00 COM
72612005 105,826 $0.10 0 0 0 0 $5.00 $10,582.60 COM
72612006 354,578 $0.10 0 0 0 0 $5.00 $35,457.80 COM
72613017 5,600 $0.10 20 0 0 20 $5.00 $660.00 COM
72613018 5,600 $0.10 40 0 0 40 $5.00 $760.00 COM
72613021 16,600 $0.10 120 0 0 120 $5.00 $2,260.00 COM
72613031 8,276 $0.10 0 40 0 40 $5.00 $1,027.60 COM
72613034 5,600 $0.10 0 0 0 0 $5.00 $560.00 COM
72613035 1,600 $0.10 0 0 0 0 $5.00 $160.00 COM
72613036 4,000 $0.10 40 0 0 40 $5.00 $600.00 COM
72613037 11,200 $0.10 80 0 0 80 $5.00 $1,520.00 COM
72613041 6,000 $0.10 0 0 75 75 $5.00 $975.00 COM
72613047 40,946 $0.10 0 402 0 402 $5.00 $6,104.60 COM
72613049 21,780 $0.10 0 862 0 862 $5.00 $6,488.00 COM
72613050 11,605 $0.10 0 0 0 0 $5.00 $1,160.50 COM
72613052 300,059 $0.10 427 531 0 958 $5.00 $34,795.90 COM 72613055 42,852 $0.10 0 0 155 155 $5.00 $5,060.20 COM
72613056 7,875 $0.10 88 0 90 178 $5.00 $1,677.50 COM
72613057 10,525 $0.10 73 0 0 73 $5.00 $1,417.50 COM
72613058 71,702 $0.10 0 281 245 526 $5.00 $9,800.20 COM 72613059 6,776 $0.10 0 0 0 0 $5.00 $677.60 COM
72613060 6,880 $0.10 0 60 0 60 $5.00 $988.00 COM
72614007 5,600 $0.10 0 0 40 40 $5.00 $760.00 COM
72614008 3,200 $0.10 0 0 40 40 $5.00 $520.00 COM
72614009 3,800 $0.10 40 0 95 135 $5.00 $1,055.00 COM
72614010 4,356 $0.10 40 0 5 45 $5.00 $660.60 COM
72614011 5,600 $0.10 40 0 0 40 $5.00 $760.00 COM
72614012 5,600 $0.10 40 0 0 40 $5.00 $760.00 COM
72614013 5,662 $0.10 40 0 0 40 $5.00 $766.20 COM
72614014 11,200 $0.10 80 0 0 80 $5.00 $1,520.00 COM
72614015 5,600 $0.10 0 0 0 0 $5.00 $560.00 COM
72614019 5,840 $0.10 0 59 0 59 $5.00 $879.00 COM
72614020 2,400 $0.10 0 0 0 0 $5.00 $240.00 COM
72614027 4,737 $0.10 41 0 0 41 $5.00 $678.70 COM

August 9, 2022
Morgan Hill PBID Management District Plan
49 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72614028 11,530 $0.10 80 0 0 80 $5.00 $1,553.00 COM
72614041 8,527 $0.10 0 80 0 80 $5.00 $1,252.70 COM
72614042 13,600 $0.10 0 80 0 80 $5.00 $1,760.00 COM
72614047 12,800 $0.10 0 0 0 0 $5.00 $1,280.00 COM
72614048 6,720 $0.10 48 0 0 48 $5.00 $912.00 COM
72614049 21,280 $0.10 152 0 0 152 $5.00 $2,888.00 COM
72614050 13,872 $0.10 86 0 0 86 $5.00 $1,817.20 COM
72614051 13,509 $0.10 0 0 0 0 $5.00 $1,350.90 COM
72614052 13,851 $0.10 0 0 0 0 $5.00 $1,385.10 COM
72614074 47,600 $0.10 160 0 0 160 $5.00 $5,560.00 COM
72614075 31,609 $0.10 0 455 0 455 $5.00 $5,435.90 COM
72614076 46,995 $0.10 0 484 0 484 $5.00 $7,119.50 COM
72615003 1,141 $0.10 0 0 0 0 $5.00 $114.10 COM
72615004 23,031 $0.10 0 0 0 0 $5.00 $2,303.10 COM
72615070 40,306 $0.10 0 0 0 0 $5.00 $4,030.60 COM
72615071 264,409 $0.10 0 0 0 0 $5.00 $26,440.90 COM
72615072 77,536 $0.10 0 0 0 0 $5.00 $7,753.60 COM
72654014 2,770 $0.10 0 0 0 0 $5.00 $277.00 COM
72654031 1,810 $0.10 0 0 0 0 $5.00 $181.00 COM
72654032 585 $0.10 0 0 0 0 $5.00 $58.50 COM
72654033 585 $0.10 0 0 0 0 $5.00 $58.50 COM
76707004 12,400 $0.10 0 0 0 0 $5.00 $1,240.00 COM
76707006 11,200 $0.10 0 0 0 0 $5.00 $1,120.00 COM
76707007 11,200 $0.10 0 0 0 0 $5.00 $1,120.00 COM
76707010 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707011 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707014 12,400 $0.10 0 0 0 0 $5.00 $1,240.00 COM
76707016 5,600 $0.10 0 0 0 0 $5.00 $560.00 COM
76707017 5,600 $0.10 0 0 0 0 $5.00 $560.00 COM
76707027 4,995 $0.10 40 0 0 40 $5.00 $699.50 COM
76707028 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707029 5,002 $0.10 40 0 0 40 $5.00 $700.20 COM
76707030 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707031 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707041 21,700 $0.10 0 0 0 0 $5.00 $2,170.00 COM
76707042 7,405 $0.10 0 0 0 0 $5.00 $740.50 COM
76707047 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707048 15,000 $0.10 120 0 0 120 $5.00 $2,100.00 COM

August 9, 2022
Morgan Hill PBID Management District Plan
50 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
76707049 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76707050 10,000 $0.10 80 0 0 80 $5.00 $1,400.00 COM
76707055 9,000 $0.10 0 0 0 0 $5.00 $900.00 COM
76707057 5,405 $0.10 47 0 0 47 $5.00 $775.50 COM
76707058 8,395 $0.10 73 0 0 73 $5.00 $1,204.50 COM
76707059 30,494 $0.10 0 0 0 0 $5.00 $3,049.40 COM
76707064 21,200 $0.10 75 0 0 75 $5.00 $2,495.00 COM
76707065 25,353 $0.10 0 0 0 0 $5.00 $2,535.30 COM
76707066 12,117 $0.10 80 0 0 80 $5.00 $1,611.70 COM
76708003 5,600 $0.10 0 0 0 0 $5.00 $560.00 COM
76708004 10,000 $0.10 80 0 0 80 $5.00 $1,400.00 COM
76708006 6,000 $0.10 80 0 0 80 $5.00 $1,000.00 COM
76708007 11,200 $0.10 0 0 0 0 $5.00 $1,120.00 COM
76708008 94,089 $0.10 0 0 0 0 $5.00 $9,408.90 COM
76708009 6,750 $0.10 0 0 0 0 $5.00 $675.00 COM
76708010 6,750 $0.10 0 0 0 0 $5.00 $675.00 COM
76708011 5,434 $0.10 0 0 0 0 $5.00 $543.40 COM
76708016 10,000 $0.10 80 0 0 80 $5.00 $1,400.00 COM
76708017 10,000 $0.10 80 0 0 80 $5.00 $1,400.00 COM
76708018 11,200 $0.10 0 0 0 0 $5.00 $1,120.00 COM
76708033 9,680 $0.10 80 0 0 80 $5.00 $1,368.00 COM
76708034 16,932 $0.10 138 0 0 138 $5.00 $2,383.20 COM
76708045 5,000 $0.10 40 0 0 40 $5.00 $700.00 COM
76708046 33,000 $0.10 200 0 0 200 $5.00 $4,300.00 COM
76708063 4,403 $0.10 0 0 0 0 $5.00 $440.30 COM
76708064 4,403 $0.10 0 0 0 0 $5.00 $440.30 COM
72604013 60,548 $0.00 0 0 0 0 $0.00 $0.00 APT
72613005 9,600 $0.00 0 0 0 0 $0.00 $0.00 APT
72613006 9,600 $0.00 0 0 0 0 $0.00 $0.00 APT
72613045 18,030 $0.00 0 139 0 139 $0.00 $0.00 APT
72614024 6,400 $0.00 0 0 0 0 $0.00 $0.00 APT
72614032 5,600 $0.00 0 0 0 0 $0.00 $0.00 APT
72614033 5,600 $0.00 0 0 0 0 $0.00 $0.00 APT
72614034 4,800 $0.00 0 0 0 0 $0.00 $0.00 APT
72614035 4,800 $0.00 0 0 0 0 $0.00 $0.00 APT
72614036 5,320 $0.00 0 40 0 40 $0.00 $0.00 APT
72614037 5,360 $0.00 0 40 0 40 $0.00 $0.00 APT
72614038 5,480 $0.00 0 40 0 40 $0.00 $0.00 APT

August 9, 2022
Morgan Hill PBID Management District Plan
51 APNLOT
SQFT

LOT SIZE
RATE

FRONTAG
E ON

MONTERE
Y

FRONTAG
E ON
DEPOT

FRONTAG
E ON 3RD
TOTAL

FRONTAG
E

FRONTAG
E RATE

ASSESSME
NT

CATEGORY
72614043 7,200 $0.00 0 0 0 0 $0.00 $0.00 APT
72614044 6,400 $0.00 0 0 0 0 $0.00 $0.00 APT
72614054 11,040 $0.00 0 0 0 0 $0.00 $0.00 APT
72614056 10,220 $0.00 0 70 0 70 $0.00 $0.00 APT
76707002 6,200 $0.00 0 0 0 0 $0.00 $0.00 APT
76707003 6,200 $0.00 0 0 0 0 $0.00 $0.00 APT
76707020 8,320 $0.00 0 0 0 0 $0.00 $0.00 APT
76707024 5,600 $0.00 0 0 0 0 $0.00 $0.00 APT
76707071 5,600 $0.00 0 0 0 0 $0.00 $0.00 APT
76707072 5,600 $0.00 0 0 0 0 $0.00 $0.00 APT
76708002 12,480 $0.00 0 0 0 0 $0.00 $0.00 APT
76708013 16,800 $0.00 0 0 0 0 $0.00 $0.00 APT
76708019 9,800 $0.00 0 0 0 0 $0.00 $0.00 APT
76708020 12,600 $0.00 0 0 0 0 $0.00 $0.00 APT
76708024 8,000 $0.00 0 0 0 0 $0.00 $0.00 APT
76708026 8,000 $0.00 0 0 0 0 $0.00 $0.00 APT
76708042 9,000 $0.00 0 0 0 0 $0.00 $0.00 APT
76708043 9,600 $0.00 0 0 0 0 $0.00 $0.00 APT
76748011 16,932 $0.00 0 0 0 0 $0.00 $0.00 APT
COM = Commercial
NP = Non-profit
SFR = Single-family Residential
CONDO = Condominium
APT = Apartment

August 9, 2022
Morgan Hill PBID Management District Plan
52 APPENDIX 5 – TOTAL ESTIMATED MAXIMUM COST OF

IMPROVEMENTS, MAINTENANCE, AND ACTIVITIES
The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the proposed MHPBID. The costs below are estimated; the actual line item costs will fluctuate. The table below shows expenditures from assessment and non-assessed funds.

Assessment funds are governed by Section V. There is no limit on reallocation of non-assessment funds by the Owners’ Association. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes result in parcels being assessed at a higher rate due to a higher estimated benefit.

Year Clean &
Safe
Capital
Improvements
& Art
Installations
Marketing
and Special
Events
Administration Contingency
/ Reserve
Collection
Fee
Total
2024 $189,116.72 $46,528.15 $31,519.46 $31,431.10 $9,429.33 $6,286.22 $314,310.98 2025 $194,790.22 $47,923.99 $32,465.04 $32,374.03 $9,712.21 $6,474.81 $323,740.30 2026 $200,633.93 $49,361.71 $33,438.99 $33,345.25 $10,003.58 $6,669.05 $333,452.51 2027 $206,652.95 $50,842.57 $34,442.16 $34,345.61 $10,303.68 $6,869.12 $343,456.09 2028 $212,852.53 $52,367.84 $35,475.42 $35,375.98 $10,612.79 $7,075.20 $353,759.76 Total $1,004,046.35 $247,024.26 $167,341.07 $166,871.97 $50,061.59 $33,374.40 $1,668,719.64

APN STREET ADDRESS OWNER

ASSESSMENT
GROUP LOT SQ.FT. PERCENT ASSESSMENT
76708011 DEL MONTE MORGAN HILL CITY OF COM 5,434 0.19% $ 543.40 76708008 100 W 3RD ST MORGAN HILL CITY OF COM 94,089 3.29% $ 9,408.90 76708003 30 W 3RD ST MORGAN HILL CITY OF COM 5,600 0.20% $ 560.00 76707065 65 W 3RD ST CITY OF MORGAN HILL COM 25,353 0.89% $ 2,535.30 76707050 17305 MONTEREY ST CITY OF MORGAN HILL COM 10,000 0.49% $ 1,400.00 76707042 2ND ST MORGAN HILL CITY OF COM 7,405 0.26% $ 740.50 76707011 17555 MONTEREY RD MORGAN HILL, CITY OF COM 5,000 0.24% $ 700.00 76707010 17575 MONTEREY RD CITY OF MORGAN HILL COM 5,000 0.24% $ 700.00 72615072 17295 BUTTERFIELD BLVD CITY OF MORGAN HILL COM 77,536 2.71% $ 7,753.60 72615071 17295 BUTTERFIELD BLVD CITY OF MORGAN HILL COM 264,409 9.25% $ 26,440.90 72615070 MORGAN HILL CITY OF COM 40,306 1.41% $ 4,030.60 72615004 MORGAN HILL REDEVELOPMENT AGENCY COM 23,031 0.81% $ 2,303.10 72615003 MORGAN HILL CITY OF COM 1,141 0.04% $ 114.10
72614076 DEPOT ST MORGAN HILL CITY OF COM 46,995 2.49% $ 7,119.50 72614042 85 E 1ST ST CITY OF MORGAN HILL COM 13,600 0.62% $ 1,760.00 72614041 17545 DEPOT ST MORGAN HILL CITY OF COM 8,527 0.44% $ 1,252.70 72614008 25 E 3RD ST CITY OF MORGAN HILL COM 3,200 0.18% $ 520.00 72614007 35 E 3RD ST CITY OF MORGAN HILL COM 5,600 0.27% $ 760.00 72613055 50 E 3RD ST CITY OF MORGAN HILL COM 42,852 1.77% $ 5,060.20 72613052 17060 MONTEREY RD CITY OF MORGAN HILL COM 300,059 12.17% $ 34,795.90 72613047 17130 DEPOT ST CITY OF MORGAN HILL COM 40,946 2.14% $ 6,104.60 72612005 MORGAN HILL REDEVELOPMENT AGENCY COM 105,826 3.70% $ 10,582.60 72604001 CITY OF MORGAN HILL COM 98,058 3.43% $ 9,805.80

47.75% $ 134,991.70

RESOLUTION NO. 2022-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORGAN HILL

DECLARING ITS INTENTION TO FORM THE MORGAN HILL PROPERTY AND

BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., authorizes cities to form property and business improvement districts to provide improvements and activities which specially benefit assessed properties; and WHEREAS, incorporated herein by this reference is the Morgan Hill Property and Business Improvement District (“MHPBID”) Management District Plan (hereafter “Plan”), which provides for improvements and activities which will specially benefit assessed properties; and WHEREAS, owners of properties within the proposed MHPBID have submitted petitions asking that the City Council form the MHPBID. Included with each petition was a Plan summary including a map showing the boundaries of the MHPBID. The petitions, the boundary map, and the Plan are on file with the City Clerk; and
WHEREAS, the Plan provides for the following improvements and services within the MHPBID, all of which are intended to provide and constitute special benefits to assessed properties: Clean and Safe programs, Capital Improvements and Art Installations, Marketing and Special Events, and related Management and Administration. The Plan proposes to fund these improvements and services through the levy of a benefit assessment on real property within the MHPBID.

BASED ON THE FOREGOING RECITALS, THE CITY COUNCIL OF THE CITY OF MORGAN HILL RESOLVES AS FOLLOWS:

Section 1. The recitals set forth herein are true and correct.

Section 2. The City Council finds that property owners who will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed petitions. The City Council accepts the petitions and intends to form the MHPBID and to levy an assessment on real property within the MHPBID boundaries in accordance with the Property and Business Improvement District Law of 1994. In the initial year of the five (5) year term, the total proposed assessment budget is approximately $282,680.72.

Section 3. The assessment will be imposed on real property at the following rates:

Parcel type Square Footage
Assessment rate (sq. ft.)
Linear Frontage
Assessment rate (ln. ft.)
Commercial $0.10 $5.00
Non-profit $0.04 $2.00
Section 4. The City Council finds that the Plan satisfies all requirements of Streets and Highway Code section 36622.

Section 5. The exterior boundaries of the MHPBID are shown on the map attached hereto as Exhibit A.

Section 6. Bonds shall not be issued for the MHPBID.

Section 7. The time and place for the public hearing on the formation of the MHPBID and the levy of the proposed assessment are set for 7:00 PM on November 16, 2022, at 17575 Peak Avenue, Morgan Hill, CA 95037. The City Council may continue the public hearing from time to time.

Section 8. The City Clerk is directed to give notice of the time and place of the public hearing in accordance with Streets and Highways Code section 36623. The City Clerk is to do this by mailing (or causing to be mailed) written notices and assessment ballots in the time, form, and manner provided by Government Code section 53753 to all persons who own real property within the formed MHPBID and will be subject to the proposed assessment, no later than September 29, 2022. The City Clerk is further directed to file an affidavit with the City Council when all notices and ballots have been mailed, setting forth the time and manner of their compliance with the requirements of law for mailing the notices and ballots.

Section 9. At the public hearing, the City Council will consider all objections or protests to the proposed assessment, and any interested person will be permitted to present written or oral testimony.

At the conclusion of the public hearing, all ballots submitted and not withdrawn will be tabulated in accordance with Government Code section 53753.

I HEREBY CERTIFY that the foregoing Resolution of Intention was introduced and adopted at a regular meeting of the City Council on the 28th day of September 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
_____________________
Mayor
ATTEST:
_____________________

CITY CLERK

EXHIBIT A – MAP

733\12\174097.1 1
RESOLUTION NO. _______

A RESOLUTION OF THE MORGAN HILL CITY COUNCIL

AUTHORIZING THE CITY MANAGER TO SIGN THE BALLOT

AND OTHER DOCUMENTS FOR ALL CITY-OWNED

PROPERTIES IN SUPPORT OF THE FORMATION OF THE

MORGAN HILL PROPERTY & BUSINESS IMPROVEMENT
DISTRICT.

WHEREAS, the property owners within the downtown commercial core propose formation of the Morgan Hill Property and Business Improvement District (MHPBID) pursuant to the Property and Business Improvement Law of 1994, California Streets and Highways Code section 36600 et seq., which authorizes cities to establish property and business improvement districts for the purposes of promoting economic revitalization and financing activities and services to improve the overall economic climate in said districts; and WHEREAS, the City owns several properties within the proposed MHPBID, a list of which is attached as Exhibit A; and
WHEREAS, City-owned properties will have a total first-year annual assessment of approximately $134,991.70. Future assessment rates may be subject to an increase of no more than three percent (3%) annually; and WHEREAS, the City Council has determined that the public interest will be served by having these City properties participate in the MHPBID.

NOW, THEREFORE, BE IT RESOLVED, that the City Manager is authorized to sign all documents on behalf of ALL City-owned parcels in support of the MHPBID:
---------------------------------------
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Morgan Hill City Council at a regular meeting held on , 2022, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

733\12\174097.1 2
______________________________
City Clerk
Approved:
_____________________________
Mayor
Approved as to Form:
_____________________________
City Attorney

4 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Maria Angeles, Senior Civil Engineer
APPROVED BY: City Manager

APPROVE PARCEL MAP AND RELATED SUBDIVISION

IMPROVEMENTS AGREEMENT AND SUBSEQUENT DEVELOPMENT
REIMBURSEMENT AGREEMENT FOR THE REDWOOD TECH AT 101

PROJECT (NORTHERN INTERSECTION OF HALF ROAD AND CONDIT
ROAD WITH ASSESSOR PARCEL NUMBERS 728-30-006 AND 728-30- 009)

RECOMMENDATION(S)

1. Approve the Parcel Map for the Redwood Tech at 101 Project;

2. Approve a Subdivision Improvements Agreement with TC Morgan Hill Venture, LLC;

3. Approve a Subsequent Development Reimbursement Agreement with TC Morgan Hill Venture, LLC; and

4. Authorize the City Manager to execute the Subdivision Improvements Agreement and Subsequent Development Reimbursement Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land 2022-2023 Strategic Priorities
Economic Development
Guiding Documents
Morgan Hill 2035 General Plan
Storm Drain Master Plan
Wastewater System Master Plan
Water System Master Plan
REPORT NARRATIVE:

On May 25, 2021, the Planning Commission considered and approved the Vesting Tentative Parcel Map (SD2020-0011) and Design Permits (SR2020-0029 through SR2020-0033) for the Redwood Tech at 101 Project (“Project”) proposed by TC Morgan

4 Hill Venture, LLC (“Developer”). Subsequently, the City Council approved and adopted Resolution 21-034 on June 23, 2021 which denied an appeal of the Planning Commission’s decision on the project’s Vesting Tentative Parcel Map and Design Permit approvals and reaffirmed and approved the Planning Commission’s decision.

The project is a proposed industrial park containing five (5) industrial buildings on four (4) parcels located on a 29+/- acre site at the northern intersection of Condit Road and Half Road (APNs: 728-30-006 and 728-30-009) as shown on the attached Site Map (Attachment 1).

Under Section 17:20.390 of the Morgan Hill Municipal Code, the City Council must approve the Parcel Map if it complies with Title 17 ("Subdivisions") and the California Subdivision Map Act. Staff has determined that the Parcel Map complies with all of the relevant requirements.

The conditions of approval for the Developer’s Vesting Tentative Map and Design Permits require the Developer to design, construct, and install the following public improvements:

Cochrane Road Improvements:

1. Widening of the south side of Cochrane Road to the ultimate street width along the project’s frontage which will add a dedicated right-turn pocket along eastbound Cochrane Road.

2. Traffic Signal Modifications at the intersection of Cochrane Road and De Paul Drive.

3. Other street improvements along Cochrane Road that include curb and gutter, sidewalk, landscaping, street paving, utilities, stormwater post-construction facilities, and streetlighting.

De Paul Drive Improvements:

1. City Standard half street improvements (2/3 street width) along the undeveloped portion of De Paul Drive to the proposed cul-de-sac to the south, terminating at Half Road.

2. Extension of the existing 12” diameter public water main from the southerly end of the existing main at De Paul Drive to Half Road, per the City’s Water System Master Plan.

3. Installation of street improvements to the north of the project site, along the western portion of De Paul Drive, up to Cochrane Road.

4. Other street improvements along De Paul Drive include curb and gutter, sidewalk, driveways, landscaping, full cul-de-sac at the southerly end of the street next to Half Road, other utilities, undergrounding, stormwater postconstruction facilities, and streetlighting.

Half Road Improvements:

4 1. New storm drain improvements along Half Road, including a proposed outfall to Madrone Channel, per the City's Storm Drainage System Master Plan.

2. Other street improvements along Half Road include curb and gutter, sidewalk, landscaping, partial street knuckle at the westerly end of the street, street paving, other utilities, stormwater post-construction facilities, and streetlighting.

Sanitary Sewer Main Extension:

1. Re-route sanitary sewer flows south to Condit Road and Main Avenue, originally proposed to connect to sewer main at Cochrane Road, based on the amendment to the City’s Sewer System Master Plan. The work includes installation of a 10” diameter sanitary sewer gravity main beginning at De Paul Drive, approximately 270’ north of Half Road; then continues in a southbound direction to Half Road; then west along Half Road up to Condit Road; then follows Condit Road and ends at a connection to the existing 10” sewer main at Main Avenue.

Developer Reimbursements/Credits
Pursuant to Municipal Code Section 17.32.165, whenever an applicant/developer is required, as a condition of approval for a development permit, to construct any facility or improvement (or a portion thereof) which facility or improvement is determined by the City to exceed the need directly attributable to and reasonably related to the given development project, a reimbursement provision shall be offered to the applicant/developer.

The Developer is requesting reimbursement for the costs of constructing the portion of the public improvements that exceed the need directly attributable to the project. There are two proposed methods to reimburse the Developer:

1. Reimbursement Through a Credit Applied Against the Project’s Impact Fees:

The improvements to be credited and are included in the attached Subdivision Improvements Agreement are:
a. Traffic signal improvements at the intersection of Cochrane Road and De Paul Drive;
b. Upsizing of a new storm main along Half Road above 24" diameter pipe and for a new outfall to Madrone Channel per the City's Storm Drainage System Master Plan; and
c. Upsizing of a new sanitary sewer main from 8" diameter pipe (Developer’s responsibility) to 10" diameter pipe per the City’s amended Sewer System Master Plan.

2. Subsequent Reimbursement to the Developer by Owners of Adjacent Properties that Benefit from the Developer installed Improvements:

4 a. A portion of the public Improvements to be installed by the developer will benefit the owners of two adjacent, undeveloped properties abutting De Paul Drive: (1) The Crosswinds at Morgan Hill LLC (APNs 728-30-001, -002, -003 & -004); and (2) Jeffery Lee Trustee (APN 728-30-008). The improvements to be subsequently reimbursed when the adjacent properties develop are the portions of the De Paul Drive improvements and sanitary sewer improvements which are fully described in the attached Subsequent Development Reimbursement Agreement.

Subdivision Improvements Agreement and Parcel Map
The Subdivision Improvements Agreement has a reimbursement provision (Section 12 of the agreement) that outlines the terms and conditions for reimbursing the Developer for the completion of a portion of the public improvements.

The Developer has completed all the conditions specified by the Planning Commission in the approval of the project’s Vesting Tentative Parcel Map and Design Permits. The City Council is required to approve the map if it conforms to all the requirements of the Subdivision Map Act, and any conditions of approval for the Vesting Tentative Parcel Map.

The Developer has furnished the City with the necessary documents to complete the processing of the Parcel Map and has made provisions with a Title Company for the recordation of the map. The Parcel Map conforms to the requirements of the Subdivision Map Act, and conditions of approval have been met. Staff recommends that City Council approve the Parcel Map and authorize the City Manager to sign a Subdivision Improvements Agreement pending review and approval by the City Attorney.

Subsequent Development Reimbursement Agreement
Staff is recommending that the City enter into a Subsequent Development Reimbursement Agreement with the Developer for subsequent reimbursement by owners of the properties benefiting from the Developer installed public improvements.

The attached Subsequent Development Reimbursement Agreement contains an estimate of the total cost of the public Improvements for the project including design costs and permit fees ($9,447,742), along with the maximum reimbursable amount owed to the Developer for costs attributable to the two benefitting parcels ($1,536,060).

COMMUNITY ENGAGEMENT:

The project’s Vesting Tentative Parcel Map and Design Permits were publicly noticed in May 2021 including a mailing to property owners within 600 feet of the project and to all property owners within the northeastern portion of the City including the Borello Ranch Estates, Mission Ranch, Coyote Estates, Alicante, and San Sabastian, and a display ad in the newspaper for the minimum 10-day period.

ALTERNATIVE ACTIONS:

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

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On May 25, 2021, the Planning Commission considered and approved the Vesting Tentative Parcel Map (SD2020-0011) and Design Permits (SR2020-0029 through SR2020-0033) for the project.

On June 23, 2021, the City Council approved and adopted Resolution 21-034 which denied an appeal of the Planning Commission’s decision on the project’s Vesting Tentative Parcel Map and Design Permit approvals and reaffirmed and approved the Planning Commission’s decision.

FISCAL AND RESOURCE IMPACT:

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

As part of the project’s Subdivision Improvements Agreement, a portion of the Developer’s reimbursement will be applied as a credit against the Traffic Impact Fees, Storm Impact Fees, and Sanitary Sewer Impact Fees due from the project. A budget amendment is not proposed for Council approval as the project’s Traffic, Storm, and Sewer Impact Fees due are enough to cover the reimbursement cost.

CEQA (California Environmental Quality Act):

Project: On July 27, 2016, the City Council certified an Environmental Impact Report (EIR) for the Morgan Hill 2035 General Plan. The EIR for the General Plan was prepared as a program EIR under the provisions of Section 15168 of the State CEQA Guidelines. As a program EIR, the document adopted by the City Council adequately addressed the potential environmental impacts associated with the comprehensive update of the City’s constitution for growth including certain implementation activities and provided for streamlining of the environmental review process for projects proposed subsequent to the certification of the EIR.

The proposed project entails dividing the subject property and constructing buildings consistent with the General Plan. The division and development of parcels consistent with the General Plan was addressed in the program EIR for the 2035 General Plan and, therefore, pursuant to Section 15162 and Section 15183 of the State CEQA Guidelines, no additional review under the California Environmental Quality Act was required for the proposed project.

County of Santa Clara; Sanborn Map Company
Engineering and Utilities Department
Land Development Engineering Division
O
HIGHWAY 101
REDWOOD TECH @ 101

HALF ROAD

COCHRANE ROAD

DE PAUL DRIVE

CONDIT ROAD
0 510 1,020 1,530 2,040 255
Feet
Redwood Tech @ 101
Site

MISSION VIEW DRIVE
Area of additional
Offsite Improvement
Area of additional
Offsite Improvement
E. MAIN AVENUE
APN: 728-30-006
728-30-009

5 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE CONSULTANT SERVICES AGREEMENT WITH JAYSON

ARCHITECTURE FOR THE CONCEPTUAL DESIGN PLANNING OF THE

VILLA MIRA MONTE EXPANSION

RECOMMENDATION(S)
Authorize the City Manager to execute a professional consultant agreement with Jayson Architecture for $300,000 for the conceptual design of the Villa Mira Monte Expansion.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Supporting our Youth, Seniors, and Entire Community
Preserving our Community History
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

The City's Parks and Recreation Master Plan and current Capital Improvement Program call for the expansion of the Historical Villa Mira Monte site. The inclusion of the project in the plan was prioritized over several years of work and partnership between the Historical Society and the City of Morgan Hill. The intent of the design services is to develop a conceptual plan for the use of the undeveloped space on the Villa Mira Monte property.

The City has a very long history associated with Villa Mira Monte, dating back several decades. While the property is owned by the Morgan Hill Historical Society, the property's ownership would transfer to the City of Morgan Hill should the organization ever dissolve. The City's former Redevelopment Agency expended significant dollars on the site, but since the dissolution of redevelopment, the Historical Society has managed the site primarily on their own. In 2017, the City entered into a formal MOU with the organization to provide limited funding, enhance collaboration, and operate the site as part of the City's Parks and Recreation System.

Past proposals from the Society for the expansion have proposed development of the

5 site as an event venue. However, after analysis from a long-term sustainability perspective (cost recovery, revenue generation, and operations and maintenance), the current proposed expansion is intended to support the development of the site with the primary goal of the preservation of historical resources. The secondary priority is developing the expansion that supports a high level of cost efficiency in maintenance and operations.

The City issued a request for proposals in May 2022. Proposals were due at the end of July and reviewed in August. The City received three proposals, from three very qualified firms. A review panel made up of six members, three from the Historical Society and three City staff members, reviewed the written proposals and conducted interviews with the firms. Jasyon Architecture scored the highest overall and has been recommended by the panel to conduct the work. The scoring of the firms is available in Attachment 2. The City proposes a contract for $300,000 to complete Villa Mira Monte Expansion conceptual design work. The proposed professional services agreement with the scope of work is included in Attachment 1.

COMMUNITY ENGAGEMENT:

Collaborate
The City has partnered with the volunteers of the Historical Society on the development of the RFP and the selection of an architect. Moving forward, the Historical Society and members of the general public will have opportunities to collaborate on the design process and future plans for the Villa Mira Monte site.

ALTERNATIVE ACTIONS:

The City Council could choose not to move forward with hiring Jayson Architecture at this time and provide City staff and the Historical Society with feedback and alternate direction.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City has a long history associated with Villa Mira Monte. Most recently, the City Council approved a Memorandum of Understanding to formally partner with the Morgan Hill Historical Society in June 2017.

The City Council approved the Bikeways, Trails, Parks and Recreation Master Plan in July 2017, which includes the expansion of Villa Mira Monte.

The City Council received the report on the use of Villa Mira Monte as an event venue on May 19, 2020.

FISCAL AND RESOURCE IMPACT:

Funding for this project is available within the Capital Improvement Program, Project 144017 Villa Mira Monte Improvements, within the Recreation Centers Impact Fund (360). Funding of $300,000 includes the base fee of $274,383 and design contingency of $25,617.

5 CEQA (California Environmental Quality Act):

Categorical Exemption
The initial design work for the Villa Mira Monte Expansion is exempt from CEQA under Public Resources Code § 21102, 21150 (Feasibility or planning studies for possible future actions that the agency has not approved, adopted, or funded). The initial design work will support the environmental work needed to meet CEQA requirements.

1 Updated July 2022

CONSULTANT AGREEMENT FOR DESIGN PROFESSIONALS

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

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

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until June 30, 2024 at which time CONSULTANT’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum period of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by CONSULTANT shall be architectural design for the Villa Mira Monte site as further described in Exhibit A.

4. Compensation. CONSULTANT shall be compensated as follows:

4.1. 4.2.

Amount. $30,000.00. Total compensation to CONSULTANT under this Agreement during its initial term set forth in Section 2 above shall not exceed three hundred thousand dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to CONSULTANT, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement, and provided further that in no event shall such maximum compensation allowed for the term exceed the City Manager's authority pursuant to Chapter 3.04 of the Morgan Hill Municipal Code, unless otherwise authorized by City Council.

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

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

2 Updated July 2022
compensation has not been paid. CITY may require CONSULTANT to complete certain work product or documents and CONSULTANT shall deliver to CITY all documents in its possession without additional compensation to CONSULTANT. The City Manager of CITY is authorized to terminate this Agreement, in whole or in part, on behalf of CITY.

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

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

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

7.1. Insurance Types and Amounts.

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

3 Updated July 2022

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

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

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

Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

7.1.5. Professional Liability.

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

7.1.5.2. If the performance of CONSULTANT’S work or service under this Agreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers,

4 Updated July 2022
hardware engineers, or other systems consultants), CONSULTANT shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to CONSULTANT under CONSULTANT’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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

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

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

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

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

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

01. 7.2.2. Workers Compensation.

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

7.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M.

Best's financial strength rating of “A” or better and a financial size rating of “VII” or better.

7.4. Certificates. CONSULTANT shall furnish CITY of Morgan Hill with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, CONSULTANT shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to the CONSULTANT’S

5 Updated July 2022
agreement with the CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 7. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.

Certificate Holder address:

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

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

9. Compliance with Law.

9.1. CONSULTANT and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. CONSULTANT and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

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

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

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

AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS DISCLOSED ANY FINAL

JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT – THAT CONSULTANT OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONSULTANT FURTHER

AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision

6 Updated July 2022
or order finding that CONSULTANT or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or CONSULTANT learns of such a judgment, decision, or order that was not previously disclosed, CONSULTANT shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision, or order.

CONSULTANT and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. The City reserves the right to require CONSULTANT to enter into an agreement with the City regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where CONSULTANT or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, the City reserves the right to withhold payment to CONSULTANT until such judgment, decision or order has been satisfied in full.

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

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

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

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

12. Conflict of Interest and Reporting. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

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

Address of CONSULTANT is as follows:

Jayson Architecture
50 29th Street
San Francisco, CA 94110

7 Updated July 2022
Address of CITY is as follows:

Chris Ghione
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

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

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

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

16. Maintenance of Records.

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

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

16.3. Ownership of Work Product. All documents or other information developed or received by CONSULTANT for work performed under this Agreement shall be the property of CITY. CONSULTANT shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

17. Familiarity with Work. By executing this Agreement, CONSULTANT represents that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement.

Should CONSULTANT discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONSULTANT'S risk, until written instructions are received from CITY.

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

19. No Assignment. Neither this Agreement nor any portion shall be assigned by CONSULTANT, without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be

8 Updated July 2022
void and, at CITY'S option, shall terminate this Agreement effective as of the date of such attempted assignment.

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

21. Defense and Indemnification.

21.1. Defense and Indemnification for Design Professional Services. Consistent with California Civil Code Section 2782.8, for design professional services to be performed under this agreement by a design professional, as that term is defined under said Section 2782.8, CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors in performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement (“CLAIM”) to the extent of CONSULTANT’S proportionate percentage of fault.

21.2. Defense and Indemnification for Non-Design Professional Services. For all services performed under this agreement not covered by Section 21.1 above, CONSULTANT shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by CONSULTANT, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

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

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

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

9 Updated July 2022

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

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

23. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara. Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County.

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

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

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

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

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

10 Updated July 2022

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

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

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

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

APPROVED AS TO FORM: Jayson Architecture
City Attorney By:

Donald A. Larkin
Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or Vice
President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
U:\Legal Forms\Consultant Agreements\City Services Agreement For Design Professionals.Docx Architecture
Abraham Jayson, Principal, CEO
9/22/2022
9/22/2022
Abraham Jayson, Principal, CFO

EXHIBIT A

SCOPE OF SERVICES
Task 1 Project Initiation
An organization and scoping meeting will be held with City Project Team:

1. Introduce the City Project Team to the Consultant Design Team

2. Review objectives of the Project

3. Confirm overall Project Budget

4. Confirm Project Schedule with key milestones

5. Review scope of services

6. Confirm Project areas/boundaries

7. Collect available date and published material

8. Prepare meeting and presentation schedule

9. Establish communication channels with all parties involved

10. Consultant to review and list all applicable design and planning standards

11. Discuss coordination with City departments and other agencies.

Task 2 Program Priority Development

1. Consultant to conduct interviews with stakeholders to understand program needs in support of the development of priorities for the expansion. Consultant should plan for the following meetings during this task.
a. 4-8 Meetings with the City Project Team
b. 1-2 Meetings with the Historical Society Board and Key Representatives c. 1 Public Meeting for the General Community
d. 3 Commission Meetings

2. Development of a written schedule of priorities of components desired to be included in the expansion.

3. High level evaluation of ongoing maintenance and operational costs and impacts by component.

Task 3 Space Plan and Site Analysis Review
(Some Items in Task 3 May occur simultaneously with Task 2) Analyze existing and built elements within the proposed project areas to guide design.

1. Natural Site Elements
a. Topographic Survey: The design consultant is responsible to have a topographic survey performed for the project site. Survey to provide information of grades to the nearest 0.1 ft., boundary lines, easements, existing vegetation, utility lines, manholes, valve cans, fences, curbs, sidewalks, streetlights, and other site elements that could impact the design.
b. Geotechnical Report: The design consultant is responsible to have a soils report produced for the project site.

2. Built Site Elements
a. Existing Infrastructure: Investigate and plan for all needed changes to existing site infrastructure.
b. Pedestrian Access: Review existing pedestrian and bike access to and through the sites.

EXHIBIT A

SCOPE OF SERVICES
c. Permits, agreements and easements: Investigate all requirements for construction. Create a checklist of all permits required and impacts to schedule related to these permits.

3. Develop design program based on meetings and findings during Tasks 1 and 2. a. Develop space programming based on project priorities, existing site elements and anticipated construction costs.
b. Evaluate and discuss site alternatives with City staff. c. Discuss design approach in moving forward with multiple concepts for Task 3.

4. Develop 3 graphical site layouts showing potential alternatives for review and selection by the City Project Team.
a. Site layouts should provide alternatives for implementation of various options of top program priorities.
b. Layouts do not have to be full concept designs but should provide space plans that will allow the City Project Team to evaluate and select an alternative to move forward for development in Task 4.
c. Budget Cost Estimates to be provided on site layouts.

Task 4 Develop Final Concept/Schematic Design
Utilize the selected site layout to create a concept/schematic design for the expansion. The concept design should include phasing plans that will allow the highest priorities to be developed sooner. Finalized concept/schematic designs will include at minimum the following items:

1. Site layouts and renderings.

2. Lighting Study: The design consultant is responsible to perform a lighting study for the existing and proposed site conditions.

3. Budget level cost estimates itemized construction costs for budgeting purposes.

4. Development of itemized operating cost impacts for budgeting purposes.

5. Finalize schedules and project milestones including bidding and construction schedules.

6. Based upon a mutually agreed-upon program for site development, define schedule and construction of budget requirements, produce schematic level site plan, floor plan, elevations, sections, diagrams and narratives to describe structural, mechanical, and electrical designs.

7. Consultant shall review, analyze and identify environmental impacts, including but not limited to, removing and removal of vegetation, demolishing curb, gutter and pavement areas, visual, tree canopy, parking, lighting and construction impacts. Consultant shall be responsible for providing all documentation to the City’s Environmental consultant relating to the physical attributes of the Project as it relates to meeting CEQA clearance requirements.

8. Consultant shall review, analyze and identify storm water infrastructure to comply with City and State regulations relating to storm water.

9. Prepare selected concept for review by City Commissions, Council and Community Meetings.
a. Upon selection of final concept by the City staff, the consultant shall update and prepare a final concept design.
b. The final concept designs will be presented to the public at up to two community meetings.

EXHIBIT A

SCOPE OF SERVICES
c. Final concept design shall be presented to the Parks and Recreation Commission.
d. Exterior renderings of the final concept design shall be prepared for the Planning Commission.
e. Adjustments to the final concept design shall be made in coordination with city staff following the two previously listed meetings.
f. Final concept design, exterior renderings, and a concept level cost estimate shall be prepared and presented to the City Council.

10. Prepare all necessary documents for the start of an environmental review.

Task 5 Environmental Documentation Support
Support the City and City Consultant in development of required environmental documents.

Consultant shall utilize concept design to provide required information on physical attributes associated with the site and proposed design.

Additional Services
Additional services will be provided only as authorized in writing and on an hourly basis unless otherwise approved. Additional services must be brought to the attention of the City prior to commencement of the particular task and/or activity.

CITY’S Responsibilities.

City shall furnish such information as is reasonably required for the Project and requested in writing by the consultant.

City shall provide prompt notice to the consultant if City becomes aware of any fault or defect in the Project, including any errors, omissions or inconsistencies in the Consultant’s Instruments of Service.

H. ARCHITECTURAL FEE
JAYSON

ARCHITECTURE
50 29th Street
San Francisco CA 94110
jaysonarch.com
PREͲDESIGN (TASKS 1Ͳ3)
SCHEMATIC DESIGN (TASK 4)
ENVIRONMENTAL SUPPORT (TASK 5)
TOTALS
Basic Service Consultant
Architectural Services JAYSON $28,000 $102,750 $6,000 $136,750 Structural Engineering MAR $0 $13,200 $0 $13,200
Mechanical Engineering ALTER $0 $4,400 $0 $4,400
Plumbing Engineering ALTER $0 $1,100 $0 $1,100
Electrical Engineering RIJA $0 $3,300 $0 $3,300
Landscape Architect JLJA $7,354 $49,990 $0 $57,343
Civil Engineering BKF $0 $6,600 $0 $6,600
Cost Estimating TBD $3,850 $5,500 $0 $9,350
Subtotal Basic Services $39,204 $186,840 $6,000 $232,043 $1,000 $3,000 $500 $4,500
Supplemental Services Consultant
Geotechnical Engineering CLEARY $20,240 $0 $0 $20,240
Survey BKF $16,500 $0 $0 $16,500
Lighting RIJA $0 $1,100 $0 $1,100
Subtotal Supplemental Services $36,740 $1,100 $0 $37,840 Total Proposed Fee $274,383
Exclusions:

Geotechincal Engineering Plan Review
Geotechincal Seismic Design Parameter Analysis
Geotechnical Environmental Soil Screening & Review
Reimbursable Expense Allowance

FEE PROPOSAL
&9)*#*5
#
4$)&%6-&
0'
$0.1&/4"5*0/
3"5&4

Jayson Architecture Billing Rates:2022
x Principal:   $185/hr
x Project Manager:  $160/hr
x Project Architect:  $140/hr
x Project Designer:  $120/hr
x Design Staff:   $110/hr
Jayson Architecture Billing Rates:2023
x Principal:   $200/hr
x Project Manager:  $175/hr
x Project Architect:  $150/hr
x Project Designer:  $130/hr
x Design Staff:   $120/hr
These rates are fixed through December 31st, 2023.Jayson Architecture reserves the right to adjust fees on an annual basis by a maximum of 10% each year, starting January 1st 2024.

Reimbursable Expenses
The following items will be billed directly to Client as reimbursable expenses, billed at cost +10%:
• Large format printing
• Large format scanning
• Mileage at federal mileage rate
• Other items agreed to in advance by Client
Subconsultant Fees
Proposals will be obtained for additional scope as requested by client, billed at cost +10%.

10 ID Task Name Duration Start Finish Predecessors
1 TASK 1: PROJECT INITIATION 1 wk Mon 10/17/22 Fri 10/21/22 2 Kickoff Meeting 0 days Mon 10/17/22 Mon 10/17/223 Project Initiation 1 wk Mon 10/17/22 Fri 10/21/22 2 4 Task 2: PROGRAM PRIORITY DEVELOPMENT 7 wks Mon 10/24/22 Fri 12/9/22 5 Stakeholder Interviews 2 wks Mon 10/24/22 Fri 11/4/22 3 6 Commission Meetings 2 wks Mon 11/7/22 Fri 11/18/22 57 Holidays: Thanksgiving 1 wk Mon 11/21/22 Fri 11/25/22 8 Program Priority Development 2 wks Mon 11/28/22 Fri 12/9/22 7 9 Community Meeting 0 days Fri 12/9/22 Fri 12/9/22 8
10 Task 3: SPACE PLAN AND SITE ANALYSIS REVIEW 12 wks Mon 12/12/22 Fri 3/3/23 11 Survey 4 wks Mon 12/12/22 Fri 1/6/23 9
12 Holidays 2 wks Mon 12/26/22 Fri 1/6/23
13 Site Concepts 4 wks Mon 1/9/23 Fri 2/3/23 11
14 Cost Estimation 2 wks Mon 2/6/23 Fri 2/17/23 1315 Geotech 3 wks Mon 2/6/23 Fri 2/24/23 1316 Client Review 4 wks Mon 2/6/23 Fri 3/3/23 1317 Task 4: CONCEPT/SCHEMATIC DESIGN 18 wks Mon 3/6/23 Fri 7/7/23 18 Conceptual Design 4 wks Mon 3/6/23 Fri 3/31/23 16
19 Community Meeting 0 days Fri 3/31/23 Fri 3/31/23 1820 Schematic Design 6 wks Mon 4/3/23 Fri 5/12/23 1921 Community Meeting 0 days Fri 5/12/23 Fri 5/12/23 2022 Commission Presentations 2 wks Mon 5/15/23 Fri 5/26/23 2123 Cost Estimation 3 wks Mon 5/29/23 Fri 6/16/23 2224 Client Review 4 wks Mon 5/29/23 Fri 6/23/23 2225 Finalize Schematic Design 2 wks Mon 6/26/23 Fri 7/7/23 2426 City Council Presentation 0 days Fri 7/7/23 Fri 7/7/23 2527 Task 5: ENVIRONMENTAL DOCUMENT SUPPORT 24 wks Mon 7/10/23 Fri 12/22/23 28 Support City CEQA Process 6 mons Mon 7/10/23 Fri 12/22/23 26 10/17
12/9
3/31
5/12
7/7
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2023 2024
D. SCOPE OF WORK
&9)*#*5
$
4$)&%6-&
0'
1&3'03."/$&

Attachment 2 – Scoring
Comparison Possible
Points
Siegel and
Strain
Jayson Page and
Turnbull
Demonstrates professional quality in proposal 10 8.00 8.50 7.00 Team and Subconsultants assigned to the project demonstrate breadth and flexibility in design experience overall
15 12.75 13.63 11.00
Relevant past experience with similar historical projects 20 16.00 16.00 17.75 No significant legal actions held against the firm or significant eceptions to the City's consulting agreement.
5 4.00 5.00 4.00
Cost Proposal 10 8.00 10.00 6.00
Total Score
60 48.75 53.13 45.75 Page 158 of 284
6 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE PURCHASE OF REPLACEMENT PUMPS FOR LIFT

STATION A

RECOMMENDATION(S)
Approve and authorize the City Manager to execute a purchase order to Shape Inc. in the amount of $64,166 for Lift A Station replacement pumps.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Wastewater System Master Plan
REPORT NARRATIVE:

The City’s wastewater system consists of 14 lift stations for servicing the community’s varied topography. The Utilities Division maintains an ongoing, annual, submersible pump replacement schedule of one lift station per year for this primary mechanism used for moving waste from higher elevations. As a redundant feature in the event of failure, each lift station has two submersible pumps. The pumps operate on an alternating daily basis, and both are replaced at the same time.

Waterwater staff installs, maintains, and repairs these pumps. Therefore, the City has standardized these pumps with a specific brand of pump, Flygt. Standardizing these pumps has these advantages:
 Staff do not need to learn how to install and troubleshoot multiple systems. They are experts on one system.
 Parts are interchangeable among units. Old units are utilized for spare parts.  Cost savings on training and parts.

6 Shape Inc. is a sole source authorized distributor of Flygt pumps (letter attached). Staff obtained a quote (attached) for the replacement of Lift A Station pumps which is budgeted and scheduled for this fiscal year. Staff recommends approving and authorizing the City Manager to execute a purchase order for these two pumps.

COMMUNITY ENGAGEMENT:

Not Applicable
Ongoing maintenance of the City’s water and wastewater infrastructure is an expected service provided by the City.

ALTERNATIVE ACTIONS:

The Council could elect to instruct staff to prepare a request for proposals for the pumps. This is not recommended because of the forementioned standardization reasons. The pumps are on a replacement schedule that incorporates the life cycle of the pumps. It is not recommended to surpass the life cycle to prevent pump failure.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

None.

FISCAL AND RESOURCE IMPACT:

Replacement of Lift A Station pumps is budgeted in Fund 640. The quote is $1,416 over the estimated budget amount but there is sufficient savings in Fund 640 to cover the difference for this purchase.

CEQA (California Environmental Quality Act):

Categorical Exemption
This project is Categorically Exempt pursuant to Section 15301 of CEQA Guidelines, Class 1 Existing Facilities, because the work to be performed is implementation and upgrade of existing water and wastewater infrastructure involving no expansion of existing use.

Grant Stayberg
Territory Manager
Xylem Water Utilities
Flygt Products
4109 NE 107th St.

Vancouver, WA 98686
(503)706-0601
[email protected]
March 24, 2021
Subject: Flygt Sole-Source Authorized Distributor
To: City of Morgan Hill
100 Edes Ct, Morgan Hill, CA 95037
This letter is to inform you that SHAPE Inc. is your exclusive factory authorized distributor for Flygt equipment. SHAPE’s address is 5115-A Johnson Dr., Pleasanton, CA 94588 and phone number (925) 485- 9720.

SHAPE Inc is the exclusive factory authorized distributor of Flygt pumps and accessories for the municipal market in Northern California region for the following counties: North of and including Inyo, Mono, Tulare, King, Monterey, Santa Clara, San Mateo and South of and including Alpine, Amador, San Joaquin, Contra Costa, Alameda, San Mateo and San Francisco. Also included are the counties of Sonoma, Marin and the cities of Benicia and Vallejo in Solano County.

I am confident SHAPE Inc. will provide expert advice in a professional manner for all of your pumping needs. Thank you for your interest in Flygt Products and Services. Please call if I can be of further assistance.

Sincerely,
Grant Stayberg
Grant Stayberg
Territory Manager







  





!"#$
$
%
&'()**
!

#+(,-)*(.,/
0$1+(,-)*2/*
,,//34
5 #6#&3%#,)/
7"8956# &'(2./
!

#+(2-:/():,
0$1+(2-:/(;;;;
(<$"# 65
!$ =>$?@,
3%A=%
&'(,/2
!

#+,/(-,:)(/(
0$1+,/(-,:)(:

BCDEFEGDH IJK LMNOPQRPSTUVWMXX YZI[K\]^_`^_\__
abJI[cK dd\dd`
Y[efKLMNOPQRPSTUVWMXX`dg`hijXUkiliVNm
nJoK LMNOPQRPSTUVWMXXhijXUkiliVN`dg`
pJfZIqJrK RPSTUVWMXXsLF
ZIIrK DSUkMPtUmuviwxyJr[Kz{\]|}}~^}```
[Z€[xp[Ze[YIJabJI[JrIy[JppJqr‚[abqxƒ[rIebon[fIIJfJrYqIqJrex€qrI[Y JrpZeIxZ‚[y[€[J„Iy[e[fJrYqIqJreƒZ
o[fyZr‚[YJrp
o
Z€qII[reIZI[ƒ[rI eq‚r[Yo
ZrJqf[€JeyZx[„qrfJ€xJ€ZI[Y† ‡ˆDˆ‰ˆ‡FLEDhŠ
‡ˆ‡ˆFˆED‡Gh‹EŒ‹EGHFEGDH

fŽ‘’ƒ‘“”•–yŽ——˜™š˜x›œž
a qŸœx“Ž Ÿ
_ H¡_}`WUS¢GSPVGljiXXiSs_`£j¤_`\¥¤`j£s{¦ŒMmk£USTis~g§¡P¨iSLU©Xis‡RhUNi¢s ‡ª‹RPMmNvSi‹iVmPS «g]s]\\
d EU¬hUNiz­ˆd_g®| «gs`~~
I‘•—’‘“Z¯‘°Ÿ[±›ŽœŸ–K²³´„™³³
r‘Ÿž•–µf—•“Ž’Ž •Ž‘–žK

‚“•–µI‘•—K²³´„™³³
r‘ŸžK
dˆBCDEG‹tFªGŒ‡Dh{gŒFŠ‹s‹iiUNNUk£i¢EDLmQPS¢iNUMXm
_ˆ¡SMkiGHLªCŒ‹NU¬imˆ
`ˆ¡SMkiGHLªCŒ‹QSiMT£Nˆ
{ˆ¡SMki¢PimVPNMVkXv¢i¶MVmNUXXUNMPVsiuvMjliVNvVXPU¢MVTsjMjiskPV¢vMNsUVk£PS©PXNmsTvM¢i©USm¤SUMXmPSUVOPN£iS MNilmVPNXMmNi¢ˆ
gˆ·¸¹º»¼¹·½BCG¡RHEªFŒEGR¶F|¡vljmd_^d{¾¿‹‰|FLL‹‹DhG‹d\^d_¾¿‹ ‹WF¡sGHLˆ ŒUVMiXXi¡iNiSmPV^¢jiNiSmPVÀm£UjikUXˆkPl BCDEFEGDHŒD‹HDEGHLªCŒFHŠ‹Fª‹DhC‹EFÁ¡FŠF‰ªCHŒhFHŠ‹EFEDh‡ŒhFª‹EFEChˆEWG‹BCDEFEGDH¡hGLG‹‡DhRFEhGFªªG‹EŒF‰DtˆFHŠ FŒŒGEGDH‹DhRDŒG‡GLFEGDH‹EWFE‰LDRHL‹‹FhŠ‡DhF¡¡hDtŒ‹C‰RGEEFª‹sC¡DHF¾FhŒGHÂD‡EWG‹LDHEhFLEsRFŠh‹CªEGHHL‹‹FhŠ¡hGLLWFH‹ˆ

rJI[KqI[ƒerJIex[fqq[YJrIyqeabJIZIqJrZ€[rJIqrfpbY[YqrJb€x€qf[ZrYZ€[IJo[ebxxpq[Yo JIy[€e†x€qf[eZ€[J€qƒƒ[YqZI[
Zff[xIZrf[ZrYebon[fIIJfyZr‚[qIyJbIrJIqf[†eZp[ebon[fIIJƒZrbZfIb€[€eeIZrYZ€YI[€ƒeZrYfJrYqIqJre†˜ÃĀŸÅ ž‘ ÆŽ–”’ŸŸ†

7 CITY COUNCIL STAFF REPORT
MEETING DATE: September 28, 2022
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE COMMISSION WORK PLANS

RECOMMENDATION(S)

1. Approve the proposed Parks and Recreation Commission FY 2022-23 Work Plan; and

2. Approve the proposed Library, Culture and Arts Commission FY 2022-23 Work Plan.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
2022-2023 Strategic Priorities
Fiscal Sustainability
Community Outreach, Engagement, and Messaging
Economic Development
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

Annually, the Library, Culture and Arts Commission (LCAC) and the Parks and Recreation Commission (PRC) submit Work Plans for approval by the City Council.

After approval by the Council, the Commissions use these Work Plans to guide their work over the next year. City staff believe that the Work Plans can be achieved with moderate impact on staff resources. As has been the case in past years, many commissioners have volunteered to take much of the legwork associated with the specific Work Plan items.

7 Both Work Plans include several items carried forward from the previous fiscal years.This is due to limitations on available City staff resources and aggressive Work Plan items established by the Commissions. Some items are also multi-year in nature.

COMMUNITY ENGAGEMENT:

Consult
The development of the Work Plans occurred at noticed public meetings of the PRC and the LCAC. Specific Work Plan items will include appropriate public engagement.

ALTERNATIVE ACTIONS:

The Council could alternatively modify a Commission’s Work Plan to eliminate, add, or change specific items within a Work Plan.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The PRC approved their Work Plan for City Council review on July 19, 2022 and the LCAC approved their Work Plan for City Council review on July 5, 2022.

FISCAL AND RESOURCE IMPACT:

There is no direct fiscal impact associated with the approval of the Commission Work Plans. Each Work Plan identifies the estimated staff resources necessary to support the specific Work Plan items. Supporting the LCAC and PRC is an ongoing activity for the Community Services Department.

CEQA (California Environmental Quality Act):

Not a Project
Development of Commission Work Plans is an administrative activity of government that will not result in direct or indirect physical changes in the environment. While some projects on the Work Plans may result in changes to the physical environment, those projects would undergo appropriate environmental review on a project by project basis to meet CEQA requirements.

Library, Culture & Arts Commission
FY 2022-2023 Work Plan
Approved by the City Council on - Draft
Overall Mission: To assist the City Council in accomplishing its goals by fostering an environment conducive to and supportive of the arts, culture, and life-long learning in Morgan Hill, working with existing community groups to promote resources, and facilitate partnerships.

Project Area City Council
Goal Supported
Staff Resources
Required
Specific Task /
Commissioners Assigned
Community Outreach Supporting our Youth,
Seniors, and Entire
Community
Enhancing Diversity and
Inclusiveness
Community Outreach,
Engagement, and
Messaging
PS Director
(minimal)
CS Supervisor
(moderate)
(1) Participate with other groups to support community outreach and support arts and culture in the community (including Valle del Sur, El Toro Arts, SV Creates, Poppy Jasper Film Festival, Morgan Hill Diwali Festival, Coyote Creek Music Festival, Morgan Hill Art School, SJMA Let’s Look at Art, Movimiento de Arte y Cultura Latino Americana, Caribbean Meet and Greet) (All) (2) Explore development of a calendar relating to library, culture and arts events and/or development of a publication plan for upcoming events. (Khera/Borchers)
(3) Explore opportunities for arts programming in conjunction with the new Morgan Hill Magical Bridge Playground.
(Khera/Chabra/Santiago)
(4) Use social media for promotion of Commission initiatives (Chabra/Borchers/Ganapathy)
(5) Develop outreach program to the Latinx community through art programming (Santiago/Lyn)
(6) Continue open art studio program (physical or virtual) (Blanton/Ganapathy/Borchers)
(7) Create a Morgan Hill coloring book in partnership with local artists (Santiago/Ganapathy)
(8) Explore opportunities for youth engagement in arts
(Khera/Chabra/Ganapathy)
(9) Develop a cultural calendar (Khera/Lyn/Chabra)
Art and Culture Events Supporting our Youth,
Seniors, and Entire
Community
Enhancing Diversity and
Inclusiveness
PS Director
(minimal)
CS Coordinator
(minimal)
CS Supervisor
(minimal)
(1) Facilitate the Art a la Carte event (Chabra/Blanton are the leads/all members will support)
(2) Partner with artists on a children’s art show with the Taste of Morgan Hill or International Celebration
(Khera/Chabra/Ganapathy)
(3) Implement second annual international festival utilizing entertainment and food from various cultures (All)

Project Area City Council
Goal Supported
Staff Resources
Required
Specific Task /
Commissioners Assigned
Permanent and
Proposed Public Art
Supporting our Youth,
Seniors, and Entire
Community
Preserving Our Community
History
PS Director
(minimal)
Maintenance
Coordinator
(minimal)
(1) Continue implementation of the utility box art program (Artists - Ganapathy/Blanton)/(Sponsors - Chabra/Borchers/Lyn)
(2) Celebration/unveiling of Poppy Jasper Art (Ganapathy/Khera) (3) Form subcommittees as needed to support specific art requests that come forward (All)
(4) Review art inventory and complete updates to historical items list (Borchers/Lyn)
(5) Creating an artist registry (Khera/Borchers/Lyn)
(6) Update google map of existing public art (Borchers) (7) Develop and recommend a plan for the use of Public Arts Funds (All)
(8) Explore public art related to a homelessness outreach mural (Santiago)
(9) Partner with artist to complete a community mural
(Santiago/Blanton/Ganapathy)
Library Outreach and
Support
Supporting our Youth,
Seniors, and Entire
Community
Enhancing Diversity and
Inclusiveness
Library Staff
(minimal)
(1) Support Library outreach and advocacy as needed (All) (2) Coordinate Commissioner’s Corner in Library to provide book recommendations (Khera/Ganapathy/Lyn)
(3) Participate in annual Library Commissioners Forum (All) (4) Support incorporation of Children’s art into the Library (Chabra/Lyn)
Support of Historical
Resources
Preserving our Community
History
PS Director
(minimal)
(1) Explore opportunities for the Commission to support the Morgan Hill Historical Society partnership, including supporting the Black History Project (Ganapathy/Lyn)
(2) Support outreach and advocacy for the Historical Society as needed (All)
Staff Resources Required:
0-30 hours: Minimal; 31-60 hours: Moderate; 60+ hours: Significant Future Potential Items (Parking Lot)
1) Explore other opportunities for Library art contests in other media (examples: poetry, photography, literature).

Parks & Recreation Commission
FY 2022-23 Work Plan – Draft for City Council
Project
(Commissioner
Responsible)
City Council
Priority
Supported
Staff Resources
Required
Desired Outcome

1. Get youth more active
in Parks and Recreation
Supporting Our Youth, Seniors
& Entire Community
Recreation
Manager
(Minimal)
Review program opportunities for new youth
programming. (Maniar/Vittal/Lovato)

2. Support bicycle and
trails development
efforts
Supporting Our Youth, Seniors
& Entire Community
PS Director
(Minimal)

1. Support the VTA Bicycle and Pedestrian Advisory
Committee. (Not Assigned)

2. Work to coordinate with community members on
bicycle and trails issues with volunteer Bicycle and
Pedestrian Advocacy Group. (Lovato)

3. Support the Morgan
Hill Magical Bridge
ongoing operations
Supporting Our Youth, Seniors
& Entire Community
Recreation
Supervisor and
Coordinator
(Moderate)
Support and enhance the ongoing volunteer and
ambassador efforts at the Morgan Hill Magical Bridge
Playground, including a youth volunteer program.
(Vittal)

4. Support planning for
updated sports facilities
and partnerships
Supporting Our Youth, Seniors
& Entire Community
Economic Development
Recreation
Manager
(Minimal)

1. Monitor Outdoor Sports Center transition to new
operator. (van Keulen)

2. Monitor Centennial Recreation Center Expansion
programming. (van Keulen)

5. Support City in grant
opportunities
Supporting Our Youth, Seniors
& Entire Community
Fiscal Sustainability
PS Director
(Moderate)
Mngt Analyst
(Moderate)

1. Support City staff in identifying and evaluating grant opportunities and associated projects. (Scott/Maniar)

2. Explore opportunities for tree establishment watering funding. (Grzan-Pieracci)

6. Increase volunteer
Adopt a Park Program
participation
Supporting Our Youth, Seniors
& Entire Community
Fiscal Sustainability
PS Director
(Minimal)
CS Supervisor
(Minimal)
As an exploratory committee, evaluate the opportunity
to recreate ongoing volunteer groups to support park
maintenance. (Scott/Lovato)

7. Evaluate opportunities
to increase youth
involvement in park
planning
Supporting Our Youth, Seniors
& Entire Community
PS Director
(Minimal)
Rec Coord
(Minimal)
Work with City staff to review opportunities to more
formally include youth in park planning projects.
(Grzan-Pieracci/Moniz/Lovato)

Project
(Commissioner
Responsible)
City Council
Priority
Supported
Staff Resources
Required
Desired Outcome

8. Support City park
planning efforts
Supporting Our Youth, Seniors
& Entire Community
PS Director
(Minimal)

1. Evaluate future opportunities for parkland acquisition and development. (van Keulen/Lovato)

2. Research opportunities for the creation of additional dog parks in existing or new park spaces (Moniz).

3. Evaluate locations for new pickleball courts within
existing park space (Moniz)

9. Review pedestrian
access to park space for
high density housing
areas
Supporting Our Youth, Seniors
& Entire Community
PS Director
(Minimal)
Explore and develop a walkability audit for new highdensity housing. (Grzan-Pieracci/Moniz)

10. Develop Health and
Wellness Fair for the
General Community
Supporting Our Youth, Seniors
& Entire Community
Sr Rec
Supervisor
(Moderate)

1. Evaluate the opportunity and community need for a
health and wellness community resource fair.

2. Potentially organize and implement the event.
(Vittal/Grzan-Pieracci/Lovato)
Staff Resources Required: 0-50 hours = Minimal 51-100 hours = Moderate 100+ hours = Significant

City Council
Meeting Minutes
Rich Constantine - Mayor
Gino Borgioli - Mayor Pro Tem
John McKay - Council Member
Yvonne Martinez Beltran - Council Member
Rene Spring - Council Member
Wednesday, August 3, 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 was called at 5:30 p.m. for the purpose of conducting Planning Commission interviews.

CALL TO ORDER
Mayor Constantine called the Special City Council 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, Yvonne Martinez Beltran
ABSENT John McKay

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

SPECIAL MEETING

1. ADOPT RESOLUTION DETERMINING THAT CONDUCTION OF IN-PERSON

August 3, 2022
2 MEETINGS WOULD PRESENT A PUBLIC HEALTH RISK AND CONTINUING

TELECONFERENCE MEETINGS
Recommendation:

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

Public comment opened at 5:32 p.m.

Joe Baranowski was called to speak.

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

MOTION:

Approving the recommended action.

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

2. INTERVIEWS TO FILL ONE (1) VACANCY ON THE PLANNING

COMMISSION
Recommendation:

1. Discuss the characteristics/traits that a successful applicant would possess;

2. Conduct Interviews;

3. Council Members identify top applicant and provide recommendation to the Mayor; and

4. Discuss and/or appoint applicant.

Mayor Constantine thanked all of the applicants for taking the time to apply and be here this evening and announced that one of the five applicants withdrew, leaving four applicants to be interviewed. He shared what the Council looks for in a commissioner. The following applicants were interviewed: Saam Farahmand, Jeremy Mereidos, Michael Robertson, and James Wilson.

The City Council appointed James (Jim) Wilson to serve on the Planning Commission.

August 3, 2022
3 REGULAR MEETING
The regular meeting convened at 7:00 p.m.

CITY COUNCIL REPORTS
Mayor Constantine commended City teammates for the great job they have done to get us where we are with zoom meetings. We have adapted, overcome, and have been running smoothly thanks to the professionalism of our staff. He spoke regarding National Night Out, commenting that the Civic Center location felt very lively, neighborly, and fun. He shared that staff is ready to go to hybrid meetings. Once it is safe to do so, we will move forward with meeting in person.

CITY MANAGER'S REPORT
City Manager Christina Turner spoke about Together at National Night Out. It was an opportunity for our community to meet our teammates and interact with community organizations. She concluded by giving an update on City projects which included the Hale Avenue Extension, East Dunne Rehabilitation Project, Annual Pavement Rehabilitation Project, Depot-Church Realignment Project, and a new Water Line at Del Monte between Dunne and Ciolino. Some of these projects might impact back-toschool traffic.

CITY ATTORNEY'S REPORT
No report.

OTHER REPORTS
Council Member Martinez Beltran congratulated the City on the Together at National Night Out event.

PUBLIC COMMENT
Public comment opened at 7:07 p.m.

Marty Cheek 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

August 3, 2022
4 SECONDER: Council Member Martinez Beltran
AYES: Mayor Constantine, Council Member Spring, Mayor Pro Tem Borgioli, Council Member Martinez Beltran
NAYS: None
ABSTAIN: None
ABSENT: Council Member McKay

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
MOTION:

Approving consent calendar items 3, 4, and 6 through 9.

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

3. ADOPT RESOLUTION RESCINDING AND REPLACING RESOLUTION 22- 019, PLACING THE MONTEREY ROAD LANE REDUCTION MEASURE ON THE NOVEMBER 8, 2022 BALLOT
Recommendation:

Adopt resolution rescinding and replacing resolution 22-019, placing the Monterey Road Lane Reduction Measure on the November 8, 2022 ballot.

4. APPROVE ON-CALL TRANSPORTATION/TRAFFIC ENGINEERING
SERVICES FOR FY22-23 AND FY23-24
Recommendation:

Approve and authorize the City Manager to execute and administer an

August 3, 2022
5 agreement with TL Engineering in the amount of $340,000, with a $102,000 contingency, for a total contract amount not to exceed $442,000 to provide OnCall Transportation/Traffic Engineering Services for various Capital Improvement Program Projects and On-Call Engineering Plan Review and Technical Support Services for Land Development Engineering.

6. APPROVE THE JUNE 15, 2022 CITY COUNCIL MEETING MINUTES Recommendation:

Approve the June 15, 2022 City Council Meeting Minutes.

7. APPROVE THE REVISED AMERICAN FEDERATION OF STATE, COUNTY,

AND MUNICIPAL EMPLOYEES (AFSCME) SALARY SCHEDULES
Recommendation:

Approve the revised American Federation of State, County, and Municipal Employees (AFSCME) salary schedules.

8. AWARD MORGAN HILL RECTANGULAR RAPID FLASHING BEACON
(RRFB) AND HIGH INTENSITY ACTIVATED CROSSWALK BEACON
(HAWK) PROJECT
Recommendation:

1. Adopt resolution to amend the Fiscal Year (FY) 2022-23 budget to appropriate an additional $244,063 in the Park Impact Fund (301) for the Morgan Hill RRFB and HAWK Signal Project;

2. Approve the Morgan Hill RRFB and HAWK Signal Project Plans and Specifications;

3. Award contract to Golden Bay Construction, Inc. for the Morgan Hill RRFB and HAWK Signal Project in the amount of $665,989;

4. Authorize expenditure of construction contingency funds not to exceed $66,599; and

5. Authorize the City Manager to execute and administer the construction contract with Golden Bay Construction, Inc.

9. UPDATE ON PARTNERSHIP OPPORTUNITIES ON CITY OWNED

PARKLAND AT BUTTERFIELD BOULEVARD AND MONTEREY ROAD
Recommendation:

Receive an update on the Invitation for Letters of Interest for Partner Organizations for Development and Operations on City-owned Parkland.

August 3, 2022
6 ITEMS PULLED FROM CONSENT

5. APPROVE UTILITY BOX ART AT JOHN WILSON WAY AND MONTEREY ROAD
Recommendation:

1. Approve the installation of utility box art by Rehat Sra on the City-owned traffic signal control box located at the northwest corner of the intersection of John Wilson Way and Monterey Road; and

2. Authorize the City Manager to enter and administer the necessary agreements to complete the project.

MOTION:

Approving the recommended action.

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

PUBLIC HEARINGS

10. INTRODUCE AN ORDINANCE TO AMEND THE TEXT OF TITLE 12 AND TITLE 18 OF THE MORGAN HILL MUNICIPAL CODE TO REFLECT THE CITY COUNCIL’S ADOPTION OF THE MORGAN HILL OUTDOOR DINING

PROGRAM AND MANUAL FOR SIDEWALK CAFES AND PARKLETS
Recommendation:

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 the Planning Commission.

Economic Development Coordinator Brittney Sherman provided the report and presentation.

Public comment opened at 7:45 p.m.

August 3, 2022
7 There being no requests to speak, public comment closed.

ALTERNATE MOTION:

Waiving the first and second reading of the ordinance and adding a new section with the amendment that "exempt" be stricken and add that if a business has more than four parking spaces, they will replace the parking at 50%.

RESULT: Failed
MOVER: Council Member Martinez Beltran
SECONDER: None
AYES: None
NAYS: None
ABSTAIN: None
ABSENT: Council Member McKay
MOTION:

Waiving the first and second reading of the ordinance.

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

FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Spring requested an update on the future of the Mushroom Mardi Gras Festival; requested a proposal on term limits for Commissioners, Council Members, and the Mayor; and asked how we can increase the diversity on commissions.

Council Member Martinez Beltran requested a session to discuss standards for safety regarding crosswalks, stop signs, etc.; requested a discussion on the public piece of the parking; and requested a more detailed workshop agenda.

Mayor Pro Tem Borgioli would like a follow-up on his previously requested future business items.

August 3, 2022
8 Mayor Constantine announced that James (Jim) Wilson has been appointed to the Planning Commission.

ADJOURNMENT
There being no further business, the meeting adjourned at 8:42 p.m.

MINUTES PREPARED BY:

Michelle Bigelow, City Clerk

Special/Regular Meeting Agenda
City Council
Rich Constantine - Mayor
Gino Borgioli - Mayor Pro Tem
John McKay - Council Member
Yvonne Martinez Beltran - Council Member
Rene Spring - Council Member
Wednesday, August 17, 2022 5:00 PM
Virtual Meeting
Link to join the meeting can be found below

VIRTUAL MEETING GUIDELINES AND PUBLIC COMMENT
In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed.

Physical meetings will not be in the City Council Chamber until further notice.

City Council meetings will be live-streamed on Channel 17, on the City’s website, and on the City’s Facebook page. Those members of the community that would like to participate in the meetings remotely may do so by joining the virtual meeting at:
https://bit.ly/MHCityCouncilMeeting or by calling (669) 900-9128, then enter the webinar id: 873 3200 8380#.

Public comment may be provided in the following ways:
 Join the virtual City Council meeting via the link above, when public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes (YOU MUST BE RUNNING THE MOST CURRENT VERSION OF ZOOM TO BE

UNMUTED)
 Join the virtual meeting by calling the number above, dial *9 to raise your hand, and be called upon to speak for up to 3 minutes
 Send public comments in writing to the City Clerk at
[email protected]
* Please note that comments made on Facebook are not considered public comment.

SPECIAL/REGULAR MEETING