Agenda packet — Morgan Hill City Council, November 16, 2022 (part 3 of 5)

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General Benefit – Public At Large $4,628.29
General Benefit – Inside Parcels $12,351,57
General Benefit – Adjacent Parcels $4,824.44
Special Benefit $149,613.91
Total $171,418.21
Capital Improvements & Art Installations
The capital improvements & art installations budget, minus the amount of general benefit to the public-at-large, is $40,823.24. 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 2,188,802 X1.000 =2,188,802.00 93.987% X$40,823.24 =$38,368.36 NonAssessed 1,400,437 X0.100 =140,043.70 6.013% X$40,823.24 =$2,454.88 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 $38,368.36. 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 15,564 X1.000 =15,564.00 97.485% X$38,368.36 =$37,403.48 Adjacent 4,015 X0.100 =401.50 2.515% X$38,368.36 =$964.88 Therefore, the allocation of the capital improvements & art installations budget is as follows:

General Benefit – Public At Large $1,132.81
General Benefit – Inside Parcels $2,454.88
General Benefit – Adjacent Parcels $964.88
Special Benefit $37,403.48
Total $41,956.05
Marketing & Special Events
The marketing & special events budget, minus the amount of general benefit to the public-at-large, is $27,798.32. The calculations below determine the amount of general benefit to non-assessed parcels within the MHPBID.

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Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 2,188,802 X1.000 =2,188,802.00 92.595% X$27,798.32 =$25,739.72 NonAssessed 1,400,437 X0.125 =175,054.63 7.405% X$27,798.32 =$2,058.60 The marketing & special events budget, minus the amount of general benefit to the public and nonassessed parcels within the MHPBID, is $25,739.72. 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 15,564 1.000 =15,564.00 96.876% X$25,739.72 =$24,935.65 Adjacent 4,015 0.125 =501.88 3.124% X$25,739.72 =$804.07 Therefore, the allocation of the marketing & special events budget is as follows:

General Benefit – Public At Large $771.38
General Benefit – Inside Parcels $2,058.60
General Benefit – Adjacent Parcels $804.07
Special Benefit $24,935.65
Total $28,569.70
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 $149,613.91 $17,176.01
Capital Improvements & Art
Installations $37,403.48 $3,419.76
Marketing & Special Events $24,935.65 $2,862.67
Activity Totals $211,953.04 $23,458.44
Percent 90.04 % 9.96%
Administration,
Contingency/Reserve, & Collection
Fee
$37,403.48 $4,139.72
Total Parcel Benefits $249,356.52 $27,598.16
iv. Total Benefits

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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 $149,613.91 $17,176.01 $4,628.29 $171,418.21 Capital Improvements & Art Installations $37,403.48 $3,419.76 $1,132.81 $41,956.05 Marketing & Special Events $24,935.65 $2,862.67 $771.38 $28,569.70 Administration, Contingency/Reserve, &
Collection Fees $37,403.48 $4,139.72 $1,152.80 $42,696.00 Total $249,356.52 $27,598.16 $7,685.28 $284,639.96
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, $35,283.44. 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 ($35,283.44) from the total value of the activities and improvements ($284,639.96). The remaining $249,356.52 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

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Service Provided Total Benefit
Value
General
Benefit
Value to
Public
Benefit
Value to
Parcels
(Special &
General)
Special
Benefit to
Assessed
Parcels
Clean & Safe $171,418.21 $4,628.29 $17,176.01 $149,613.91 Capital Improvements & Art Installations $41,956.05 $1,132.81 $3,419.76 $37,403.48 Marketing & Special Events $28,569.70 $771.38 $2,862.67 $24,935.65 Administration $28,464.00 $2,759.82 $768.53 $24,935.65
Contingency/Reserve $8,539.20 $827.94 $230.56 $7,480.70 Collection Fee $5,692.80 $551.96 $153.71 $4,987.13
TOTAL $284,639.96 $7,685.28 $27,598.16 $249,356.52
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

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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
$215,232.40
÷
2,152,324
= $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 $32,425.00 ÷ 6,485 = $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

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three percent (3%) per year as shown in Appendix 1. Pursuant to Streets and Highways Code §36622(f), bonds shall not be issued.

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.

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4. Exempted Parcels/Non-Assessed
There are 343 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:
22 Streets and Highways Code § 36632(c)

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Economic Development Director
17575 Peak Avenue, Morgan Hill, CA 95037
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.

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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

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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.

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(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”

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“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

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(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

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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

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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.

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(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,

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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

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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

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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.

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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

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(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.

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APPENDIX 3 – MAP

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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
76707022 5,600 $0.00 0 0 0 0 $0.00 $0.00 SFR

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Morgan Hill PBID Management District Plan Page 41 APN LOT 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
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
76708061 1,620 $0.00 0 0 0 0 $0.00 $0.00 SFR

Page 339 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 42 APN LOT 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
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
72651069 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO

Page 340 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 43 APN LOT 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
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
72651110 577 $0.00 0 0 0 0 $0.00 $0.00 CONDO

Page 341 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 44 APN LOT 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
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
72651148 935 $0.00 0 0 0 0 $0.00 $0.00 CONDO

Page 342 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 45 APN LOT 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
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
72652017 1,153 $0.00 0 0 0 0 $0.00 $0.00 CONDO

Page 343 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 46 APN LOT 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
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
72654016 596 $0.00 0 0 0 0 $0.00 $0.00 CONDO

Page 344 of 747 ends

October 18, 2022
Morgan Hill PBID Management District Plan Page 47 APN LOT 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
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
76748009 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO

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October 18, 2022
Morgan Hill PBID Management District Plan Page 48 APN LOT 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
76748010 435 $0.00 0 0 0 0 $0.00 $0.00 CONDO
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
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
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
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

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October 18, 2022
Morgan Hill PBID Management District Plan Page 49 APN LOT 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
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
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
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

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October 18, 2022
Morgan Hill PBID Management District Plan Page 50 APN LOT 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
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
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

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October 18, 2022
Morgan Hill PBID Management District Plan Page 51 APN LOT 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
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

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October 18, 2022
Morgan Hill PBID Management District Plan Page 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
Improvem
ents & Art
Installatio
ns
Marketing
and
Special
Events
Administra
tion
Contingen
cy /
Reserve
Collection
Fee Total
2024 $171,418.21 $41,956.06 $28,569.70 $28,464.00 $8,539.20 $5,692.80 $284,639.97 2025 $176,560.76 $43,214.74 $29,426.79 $29,317.92 $8,795.38 $5,863.58 $293,179.17 2026 $181,857.58 $44,511.18 $30,309.60 $30,197.46 $9,059.24 $6,039.49 $301,974.55 2027 $187,313.31 $45,846.52 $31,218.88 $31,103.38 $9,331.01 $6,220.68 $311,033.78 2028 $192,932.71 $47,221.92 $32,155.45 $32,036.48 $9,610.94 $6,407.30 $320,364.80 Total $910,082.56 $222,750.42 $151,680.43 $151,119.24 $45,335.77 $30,223.85 $1,511,192.27

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RESOLUTION NO. 2022 - ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORGAN

HILL FORMING THE MORGAN HILL PROPERTY AND BUSINESS

IMPROVEMENT DISTRICT, APPROVING THE ASSESSMENT

FORMULA AND LEVYING THE ASSESSMENTS
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 upon petition by a weighted majority of property owners within the proposed district and affirmative ballot; and WHEREAS, a majority of the property owners subject to assessment, weighted according to the amount of assessment to be paid by each property owner, have petitioned the City Council to form the Morgan Hill Property and Business Improvement District (“MHPBID”); and WHEREAS, on September 28, 2022 the City Council adopted Resolution No. 22-045, which was the Resolution of Intention to form the MHPBID; and
WHEREAS, on November 16, 2022 the City Council conducted a public hearing at 7:00 PM at 17575 Peak Avenue, Morgan Hill, CA 95037, with respect to the formation of the MHPBID; and WHEREAS, all written and oral protests made or filed were duly heard, evidence for and against the proposed action was received, and a full, fair and complete hearing was granted and held; and WHEREAS, pursuant to California Constitution Article XIII D, ballots were mailed to property owners within the boundaries of the MHPBID, and, among those ballots returned to the City, a weighted majority of the property owners within the MHPBID have approved formation of the MHPBID; and WHEREAS, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California, Ross Peabody, in support of the MHPBID’s assessments, has been prepared, is incorporated in the Management District Plan, and is on file with the Office of the City Clerk and is incorporated herein by this reference. (“Engineer’s Report”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL RESOLVES:

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

2. The Morgan Hill Property and Business Improvement District is hereby formed and the annual assessment is hereby levied for each year of the entire term of the MHPBID. The initial annual assessment will total approximately $249,356.52. This is an updated calculation from the previous budget presented at the Resolution of Intention hearing. This budget is based on the most recent parcel information. The Engineer’s Report and all calculations in the Management District Plan have been recalculated in accordance with the updated budget.

3. The Management District Plan and the Engineer’s Report reflecting the newest budget calculations are hereby approved.

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4. The assessment shall be imposed on properties within the MHPBID. The boundaries of the MHPBID include: parcels north of Dunne, east of Del Monte, south of Main, and west of Butterfield, as shown in the map in the Management District Plan.

5. 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

6. The Assessment Roll for the Morgan Hill Property and Business Improvement District, City of Morgan Hill, State of California has been filed with the City Clerk, and is hereby approved.

7. The assessments shall be collected in accordance with Section 36631 of the Streets and Highways Code.

8. The assessment levied for the MHPBID shall be applied towards Clean and Safe programs, Capital Improvements and Art Installations, Marketing and Special Events, and related Management and Administration as described in the Management District Plan.

9. Bonds shall not be issued.

10. Properties within the MHPBID are subject to any amendments to Part 7 (commencing with Section 36600) to Division 18 of the Streets and Highways Code.

11. The improvements, maintenance, and activities to be provided in the MHPBID will be funded by the levy of the assessments specified in the assessment roll. The revenue from the levy of such assessments shall not be used to provide improvements, maintenance or activities outside the MHPBID or for any purpose other than the purposes specified in the Resolution of Intention and Management District Plan. Notwithstanding the foregoing, improvements, maintenance and activities that must be provided outside the MHPBID boundaries to create a special benefit to the assessed parcels may be provided, but shall be limited to marketing or signage pointing to the MHPBID.

12. All property within the MHPBID will be benefited specially and directly by the improvements, maintenance and activities funded by the assessments proposed to be levied.

13. The City Clerk is directed to take all necessary actions to complete the formation of the MHPBID. The City Clerk is directed to record in the County Recorder’s Office a notice and assessment diagram as required by Streets and Highways Code section 36627.

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14. If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phases hereof be declares invalid or unconstitutional.

15. This resolution shall take effect immediately.

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

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
_____________________
Mayor
ATTEST:
_____________________

CITY CLERK

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13 CITY COUNCIL STAFF REPORT
MEETING DATE: November 16, 2022
PREPARED BY:

Gina Paolini, Principal Planner
APPROVED BY: City Manager
APPEAL (AAE2022-0007) OF PLANNING COMMISSION APPROVAL OF VESTING TENTATIVE MAP (SD2021-0004), DESIGN PERMIT (SR2021- 0014), AND A DETERMINATION THAT THE PROJECT IS EXEMPT
FROM CEQA, FOR A 93-UNIT RESIDENTIAL CONDOMINIUM
DEVELOPMENT PROPOSED BY DENOVA HOMES. THE PROPERTY,
IDENTIFIED BY ASSESSOR PARCEL NUMBERS 726-42-001 AND -002

ARE LOCATED WEST OF THE MONTEREY ROAD/BURNETT AVENUE

INTERSECTION (FAMILY RV SITE)

RECOMMENDATION(S)

1. Grant a hearing de novo;

2. Open/close public hearing; and

3. Adopt resolution denying the appeal and reaffirming the decision of the Planning Commission to approve the project subject to Conditions of Approval.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Affordable Housing and Homelessness
Community Outreach, Engagement, and Messaging
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

On September 13, 2022, the Planning Commission held a public hearing and adopted Resolution No. 22-17 approving a Vesting Tentative Map (SD2021-0004) and Design Permit (SR2021-0014) for a 93-unit residential condominium development proposed by DeNova Homes located west of the Monterey Road/Burnett Avenue intersection (Family

Page 354 of 747 ends

13 RV site). This project is being appealed by Robert C., Long, Jr., who has filed an appeal of the decision of the Planning Commission to approve Vesting Tentative Map and Design Permit (SD2021-0004 and SR2021-0014) allowing the development of a 93-unit residential condominium development. In accordance with Chapter 18.112 (Appeals) of the Morgan Hill Municipal Code, all decisions of the Planning Commission may be appealed to the City Council.

Planning Commission Actions
The Planning Commission discussed the project and received public testimony at their September 13, 2022 meeting. After hearing public testimony and clarifying the Conditions of Approval to address identified issues raised by the neighboring property owners, the Planning Commission approved Resolution No. 22-17 (Attachment 2), which included the following additional/modified conditions:
a. Residential Landscape Buffer (Southern Property Line): Subject to the approval of the Development Services Director or designee, the landscape plans shall be modified to include additional trees and larger trees (maximum 24-inch box) along the southern property line shared with the Angelica Court properties. The applicant and City shall select evergreen tree species for quick growth, large canopies, and minimal “shedding”, that comply with the Water Efficient Landscape Ordinance and other City standards. b. Fence (Southern Property Line):The applicant shall install a 7-foot- tall (6’ solid, 1 foot lattice) wood fence along the property line shared with the Angelica Court properties, provided that the fence is taller and provides better “screening value” than the existing fence, subject to the approval of the Development Services Director or designee. c. Masonry Wall: A 7-foot-tall masonry wall shall be constructed along the shared commercial/residential property line (i.e., northern project boundary). The location of the recommended noise barrier is illustrated on Figure 11 (Noise Barrier Location) of the Modified Initial Study. The construction of a 7- foot-tall masonry wall is estimated to provide approximately 5 dB of attenuation of commercial noise at the project site, which would reduce the highest measured hourly average (Leq) commercial operations noise level to a state of compliance with the General Plan 60 dB Leq exterior noise level standard (This modification was made to increase the wall height from 6 feet to 7 feet).

The September 13, 2022 Planning Commission staff report (web link) has been provided for complete project details.

The Appeal
The appeal was filed on September 23, 2022, within 10 calendar days following the date the decision was rendered by the Planning Commission, consistent with Chapter

18.112. The appellant's letters (Attachments 3 and 4) provide pertinent facts and the basis for the appeal. The appellant does not feel that the concerns expressed by the neighbors were validated at the Planning Commission hearing, and has the following concerns identified in italics:
a. The new Town home balconies appear to stick out from the residents

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13 approximately 4'6" and they appear to extend over the 20' setback.

The required setback along the shared property line with the appellant is 5 feet. The project is providing 18.5 feet at the narrowest point along the property line. There will be a 5-foot walking path within the setback. The remaining area will be landscaped with shrubs, ground cover and trees. The project complies with the City's Residential Development Design and Development Standards and City's Municipal Code. b. The plans are for the buildings to be 40' in height. There is or was a supplemental standard of chapter 18.92 about daylight plane (included below). Figure 18.90-2 shows diagram of 25' then a minimum of 45 degrees back for daylight.

The applicant has voluntarily provided an Architectural modification exhibit (Attachment 5) which demonstrates ideas to reduce some of the peak height of the 7-plex building.

The peak height of the building could be reduced 2 feet, 6 inches. There is the ability to reduce the first floor plate by 6 inches. Additional ideas for deck screening have also been provided. The applicant is willing to add additional screening to the decks should the City desire the modification. Staff has reviewed the deck screening alternatives, and would not support the proposal, as the screening would not appear to be an integral part of the overall design, and would stand out as an add-on feature. The larger trees and fence improvements, on the other hand, would provide acceptable screening. If the applicant is voluntarily willing to adjust the peak height of the building, there would be no objection to this idea; however, as designed, the project does not exceed the City's height requirement of 35 feet, with 10 feet devoted to a roof element. The project has been designed with varying wall planes, heights and setbacks, complying with the City's Residential Development Design and Development Standards and City's Municipal Code.
c. The height of the building will possibly minimize our solar panels to our houses and impede on the solar we use to heat our pools.

The applicant has voluntarily prepared a sun/shade exhibit (Attachment 6) which demonstrates that due to the south-to-north orientation of the property, no shade/shadow impacts will impact the neighbors between the hours of 9am and 3pm throughout the year (with the exception of a small part of the trailer park next door). The project has been designed with varying wall planes, heights and setbacks that exceed City standards, and complies with the City's Residential Development Design and Development Standards and City's Municipal Code.
d. The type and size of trees - we are worried about tree roots with our pools and decks, more shade over the pools, and landscape foliage coming over the fence.

Most of the wind comes from the direction of San Jose and will carry the debris into our yards and homes.

The project was conditioned by the Planning Commission, with acceptance by the applicant, to require additional trees and larger trees (maximum 24-inch box) along the southern property line shared with the Angelica Court properties. In addition, the

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13 Planning Commission requested that the applicant select evergreen tree species for quick growth, large canopies, and minimal “shedding”, that comply with the Water Efficient Landscape Ordinance and other City standards. This requirement was made to address the privacy concerns expressed by the appellant at the Planning Commission meeting. The applicant has provided 2 cross-sections (and plan view) of the relationship between Building 16 and the properties of 25 and 35 Angelica Way (Attachment 7). A supplemental tree-screening exhibit (Attachment 8) shows the approximate installation size of the trees.
e. With the buildings facing our yards, HVAC units will more than likely be in the front of the units. We will have noise directly in back of us from those units. The sound will reflect off the building and be amplified.

A Noise Assessment was prepared for the project as part of the Environmental Assessment of the project. The proposed project would locate air-conditioning equipment (condensers) on outdoor ground level patios and upper-floor decks of the proposed apartment buildings. Specific condenser models have not yet been selected for the project. As such, to estimate project condenser equipment noise level exposure at existing adjacent land uses, sound level data for a typical residential condenser unit (the Carrier Model CA15NA030) was used. Reference sound power levels with accepted sound propagation (-6 dB per doubling of distance) were used to predict the level of mechanical equipment noise which would be expected at the property lines of the existing adjacent land uses. It was determined that HVAC equipment noise levels are predicted to satisfy the Morgan Hill Municipal Code exterior noise level standards of 60 and 65 dB Leq for residential and commercial uses, respectively, at the property lines of the existing adjacent land uses. In addition, ambient plus project HVAC equipment noise level increases during daytime and nighttime hours were calculated at the adjacent land uses. The increases in ambient noise levels from project HVAC equipment noise levels were calculated to range from less than 0.1 dB to 0.6 dB Leq during daytime hours at the adjacent land uses. The increases in ambient noise levels from project HVAC equipment are calculated to range from less than 0.1 dB to 2.9 dB Leq during nighttime hours at the adjacent land uses. The calculated increases in ambient noise levels identified above are below the applied significance criterion of 5 dB. Noise exposure from project HVAC equipment is predicted to comply with applicable Morgan Hill Municipal Code noise level standards at the nearest existing land uses, and noise level exposure from the HVAC equipment is not calculated to significantly increase ambient noise levels at the adjacent land uses. f. Traffic is already impacted coming into Morgan Hill. During school and work commute, traffic is unbearable. Peebles Avenue is already clogged during commute time and will have an increase number of drivers going to and from Ann Sobrato High School. There are children walking and riding bikes to school and will have to be even more cautious. The traffic impact studies need to be looked at as a whole community, not project by project. With this project, there are 4 projects in the works with totals as follows:
a. Monterey – Kerley 92 units
b. Monterey – Miner 249 units

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13 c. Butterfield Village Apartment 389 units
d. Jarvis/Evergreen Village 125 units
Total 856 units
We are probably missing some on the north part of town, but this is a negative impact.

A Trip Generation and Operations Analysis and a Vehicle-Miles Traveled (VMT) Assessment have been prepared by Hexagon Transportation Consultants for the proposed project.The law has changed with respect to how transportation-related impacts may be addressed under CEQA. Traditionally, lead agencies used "Level of Service” or “LOS" to assess the significance of such impacts, with greater levels of congestion considered to be more significant than lesser levels. Due to recent legislation, automobile delay as measured by a LOS, no longer constitutes a significant environmental effect. Transportation impacts are now only measured in terms of VMT.

The City continues to request an analysis for consistency with the City’s applicable LOS standards in order to determine if the project should be conditioned to implement any transportation operation enhancements. The Traffic analysis demonstrated that intersections studied are “currently operating at better than the City’s LOS standard and the addition of project traffic would not result in the degradation of the study intersections’ levels of service during the AM and PM peak hours.” g. Our city is continually tasked with restrictions on water and electricity. The developments are going to add to those restrictions.

The proposed project is consistent with the site’s current land use and zoning designations, the type and intensity of growth that would be induced by the proposed project was generally considered in the 2035 General Plan and associated water use has been analyzed in the General Plan EIR and the City’s updated 2020 Urban Water Management Plan (UWMP). According to the General Plan EIR, sufficient water supplies would be available to serve buildout of the General Plan from existing entitlements and resources, and new or expanded entitlements would not be required during single- and multiple-dry years. Therefore, the General Plan EIR concluded that in accordance with applicable regulations and water conservation policies, as well as applicable General Plan polices, impacts under normal, single-dry and multiple-dry years would be less than significant.

Electricity service for the proposed project would be provided by PG&E by way of existing electrical infrastructure in the project's vicinity. The project would not require major upgrades to, or extension of, existing infrastructure.It was determined that the project would not result in any peculiar effects that would require further CEQA review with regards to Utilities and Service Systems.
h. The buildings will block the air flow to our homes. We are very conscientious about use of natural resources and open our windows and doors to cool off our homes when possible. Our blinds/doors have to be open for this to work and that will be hard to do without our privacy and wind being blocked by the buildings.

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13 As previously stated, the project has been designed to comply with the City's Residential Development Design and Development Standards and City's Municipal Code.
i. Light pollution from the buildings into our homes.

The Initial Study prepared for the project demonstrates that any impacts on aesthetics, including damage to scenic resources or light that would affect day or nighttime views in the area were adequately addressed in the General Plan EIR. j. View of any sky is eliminated from our first and second floors and the sunsets that we enjoy. Monterey does not run North-South.

See i above.
k. The other developments mentioned above, do not impede on residential homes, as this one does.

The distinction of the proposed project and other residential projects within the City is not grounds for an appeal.
l. The potential for our home values to decrease is very real.

The development of the project on property values is not grounds for an appeal.

Housing Accountability Act
The Project is a "housing development project", as defined by the Housing Accountability Act (HAA), because the project is composed of only residential units. The HAA prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project. To deny a project, the City would need to find that "the housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved..." In accordance with the HAA "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health safety standards, policies, or conditions as they existed on the date the application was deemed complete. The project has been designed consistent with the City's General Plan, the zoning code, subdivision ordinance provisions, and the City's Residential Development Design and Development Standards, with the exception of a Density Bonus concession that was granted to the project by the City Council on February 26, 2022. The HAA specifies that the receipt of a density bonus does not "constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance or not in conformity..."
The City has received a letter from Holland & Knight, dated October 20, 2022 (Attachment 9), which explains that the granting of the appeal would violate the HAA. In addition, a letter has been received from YIMBY law dated October 19, 2022 (Attachment 10). YIMBY Law sues municipalities when they fail to comply with state

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13 housing laws, including the HAA. YIMBY law has stated in their letter that if the City fails to comply with the law, YIMBY law will take legal action.

Conclusion
As discussed, facts have not been provided to adequately support the request. For the reasons set forth in this report, it is recommended that the City Council adopt a resolution denying the appeal.

COMMUNITY ENGAGEMENT:

The City Council considered a density bonus concession for the project on February 26, 2022 and adopted Resolution No. 22-004, approving an increase in floor area for the project. The Planning Commission held a public hearing on the proposed project at their September 13, 2022 meeting and adopted Resolution No. 22-17 approving the project.

A notice of the appeal hearing was publicly noticed, including a mailing to property owners within 600 feet of the project and within the newspaper for the minimum 10-day period.

ALTERNATIVE ACTIONS:

The City Council could grant the appeal, requiring redesign of the project; however, in doing so, the City could be exposed to substantial liability. A broad range of plaintiffs can sue to enforce the HAA, and the City would bear the burden of proof in any challenge (Gov. Code § 65589.5(k)). The HAA makes attorney’s fees and costs of suit presumptively available to prevailing plaintiffs, requires a minimum fine of $10,000 per housing unit for jurisdictions that fail to comply with the act within 60 days, and authorizes fines to be multiplied by five times if a court concludes that a local jurisdiction acted in bad faith when rejecting a housing development.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

FISCAL AND RESOURCE IMPACT:

The City Development Review functions are cost-recovery, with fees collected to cover the cost of services. These fees have been collected from the applicant. Appeal fees for the appellant are not cost recovery fees and were reduced by the City Council to not create an impediment to public participation.

CEQA (California Environmental Quality Act):

Pursuant to Section 15183 of the CEQA Guidelines, where a project is consistent with the use and density established for a property under an existing general plan or zoning

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13 ordinance for which the City has already certified an EIR, additional environmental review is not required “except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site.” If such requirements are met, the examination of environmental effects is limited to those which the agency determines, in an Initial Study or other analysis. For this project, a Modified Initial Study (IS)/15183 Checklist (web link) has been prepared which examines impacts from the proposed project in accordance with the requirements of the CEQA. As set forth by Sections 15168 and 15183 of the CEQA Guidelines, the program EIR, in this case, the City’s General Plan EIR, serves as a basis for the Modified IS to determine if projects specific impacts would occur that are not adequately covered in the previously certified EIR.

The proposed project would comply with all applicable General Plan policies, Municipal Code standards, other applicable local, County and State regulations. In addition, as discussed in the Air Quality, Geology and Soils, Hazards and Hazardous Materials, and Noise sections of the Modified Initial Study, the proposed project would not cause substantial effects to human beings, including effects related to exposure to air pollutants, geologic hazards, hazardous materials, and excessive noise, beyond the effects previously analyzed as part of the General Plan EIR. The City has determined that the proposed project is consistent with the General Plan EIR. All project impacts have been determined to be less than significant, or can be mitigated to a less-than significant level given required compliance with General Plan policies or mitigation measures included in the General Plan EIR.

Based upon the analysis, it was determined that the project was exempt pursuant to CEQA Guidelines Section 15332, Class 32 (in-fill development). A Notice of Exemption was filed for the project on September 15, 2022.

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORGAN
HILL DENYING THE APPEAL SUBMITTED BY ROBERT C. LONG, JR.

FOR VESTING TENTATIVE MAP SD2021-0004 AND DESIGN PERMIT SR2021-0014 MONTEREY-KERLEY AND REAFFIRMING THE APPROVAL OF THE VESTING TENTATIVE MAP AND DESIGN PERMIT FOR THE 93-

UNIT RESIDENTIAL CONDOMINIUM DEVELOPMENT ON PROPERTY

LOCATED WEST OF THE MONTEREY ROAD/BURNETT AVENUE
INTERSECTION (APN’S 726-42-001 AND -002)
WHEREAS, such request was considered by the Planning Commission at its regular meeting of September 13, 2022, at which time the Planning Commission approved Vesting Tentative Map SD2021- 0004 and Design Permit SR2021-0014: Monterey-Kerley; and WHEREAS, testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials have been considered in the review process; and WHEREAS, the adjacent property owner, Robert C., Long, Jr., filed an appeal of the Planning Commission's decision on the Application to the City Council pursuant to the applicable provisions of the Morgan Hill Municipal Code; and
WHEREAS, at the time and place noticed for a hearing on the appeal, the City Council of the City of Morgan Hill conducted a de novo appeal hearing on the Applications, provided all interested persons an opportunity to be heard, and received, reviewed and considered all testimony and other evidence provided regarding the subject of this appeal.

NOW, THEREFORE, BASED UPON ALL OF THE INFORMATION SUBMITTED TO

THE CITY COUNCIL FOR THE APPEAL AT THE PUBLIC HEARING CONDUCTED FOR THE

APPEAL, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Following are the relevant facts in connection with Application:

A. The approved Design Permit and Vesting Tentative Map are consistent with the Zoning Ordinance and the General Plan.

B. At their meeting of September 13, 2012, the Planning Commission found that the Design Permit and Vesting Tentative Map would be consistent with the Vesting Tentative Map Finding (MHMC Section 17.20.090) and Design Permit Findings (MHMC Section

18.101.040.J). The basis and findings were set forth in the September 13, 2022, staff report.

SECTION 2. Based upon the above facts, the City Council finds as follows:

A. The facts set forth above are true and correct and new facts have not been provided to the City Council through the public hearing conducted on the appeal related to the Application that negate or materially alter the relevant facts set forth above or that would otherwise support a determination that the appeal should be granted, such that the City Council finds that:

1. The proposed subdivision, together with its provisions for its design and

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improvements, is consistent with the General Plan or specific plans adopted by the City.

The Vesting Tentative Map entitled “Vesting Tentative Map 19380 Monterey Road” submitted by Ruggeri Jensen Azar dated February 2022, has been designed consistent with the City’s General Plan, considering neighborhood circulation patterns, and providing future connections.

2. The project is consistent with the General Plan, and Zoning Ordinance.

The City of Morgan Hill 2035 General Plan designates the site as Mixed-Use Flex which permits a mix of residential, commercial, and office uses applied either vertically or horizontally. The Mixed-Use Flex designation allows 7 to 24 units per acre. The project is developing at 20 units per acre, consistent with the General Plan.

3. The project is subject to the SB 330 permit streamlining process and has been designed consistent with the City’s Design Review Criteria and the City’s Residential Development Design and Development Standards.

The proposed project complies with all applicable design standards and guidelines contained in the Design Review Handbook and the City’s adopted Residential Development Design and Development Standards.

4. The proposed project development will not be detrimental to the public health, safety, or welfare or materially injurious to the properties or improvements in the vicinity.

The development site is not located adjacent to any wildlands that could expose people or structures to wildfire risks. The project site is not located within an earthquake fault zone. In addition, the project will comply with stormwater and building code requirements. The project will not be detrimental to the public health, safety, or welfare, and will not be materially injurious to the properties or improvements in the vicinity.

5. The proposed project complies with all Design Review criteria in subsection H. of Section 18.108.040 of the municipal code.

The project as proposed complies with all criteria in subsection H of Section

18.108.040 (Design Review Criteria) of the Morgan Hill Municipal Code as demonstrated in the staff report.

SECTION 3. Based upon the above facts and findings the City Council determines as follows:

A. The approval of the Vesting Tentative Map and Design Permit granted by the Planning Commission on September 13, 2022, was made consistent with the Morgan Hill Municipal Code. Therefore, the appeal submitted regarding the applications should not be approved.

B. The Planning Commission approval as set forth in Planning Commission Resolution No. 22- 17, attached hereto as Exhibit A and incorporated herein by this reference, is hereby reaffirmed and approved.

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SECTION 4. For the reasons set forth above, the appeal is DENIED.

PASSED AND ADOPTED THIS ____ DAY OF ____________________, 2022 AT A REGULAR MEETING OF THE CITY COUNCIL BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

DATE: _____________________ ___________________________________ Rich Constantine, MAYOR
 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.__________, adopted by the City Council at the meeting held on _________________________ , 2022.

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

DATE: _____________________ ___________________________________

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RESOLUTION NO. 22-17

A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF MORGAN HILL APPROVING A SINGLELOT VESTING TENTATIVE MAP ON A 4.6-ACRE SITE AND A DESIGN PERMIT FOR A 93-UNIT CONDOMINIUM

DEVELOPMENT FOR PROPERTY LOCATED WEST OF

THE MONTEREY ROAD/BURNETT AVENUE
INTERSECTION (DENOVA HOMES) (APN 726-42-001
AND -002)
WHEREAS, on September 23, 2021, DeNova Homes, Inc. submitted applications for a single-lot Vesting Tentative Map and Design Permit for a 93-unit condominium development. (SD2021-0004/SR2021-0014/EA2021-0012: Monterey-Kerley (DeNova Homes)); and
WHEREAS, such requests were considered by the Planning Commission at its meeting of September 13, 2022; and
WHEREAS, pursuant to Section 15183 of the CEQA Guidelines, where a project is consistent with the use and density established for a property under an existing general plan or zoning ordinance for which the City has already certified an EIR, additional environmental review is not required “except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site.” If such requirements are met, the examination of environmental effects is limited to those which the agency determines, in an Initial Study or other analysis; and WHEREAS, in accordance with the California Environmental Quality Act (CEQA) the City completed a Modified Initial Study/15183 Checklist to determine whether the project could have a significant effect on the environment; and WHEREAS, the proposed project is consistent with the General Plan EIR. All project impacts have been determined to be less than significant, or can be mitigated to a less-than-significant level given required compliance with General Plan policies or mitigation measures included in the General Plan EIR; and WHEREAS, the project qualifies for exemption under CEQA Guidelines Section 15332, Class 32 (In-fill development); and,
WHEREAS, testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials have been considered in the review process.

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

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City of Morgan Hill
Resolution No. 22-17

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SECTION 1. Recitals
The Planning Commission has considered the full record before it, which may include but not limited to such things as the staff report, public testimony, and other materials and evidence submitted or provided. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. California Environmental Quality Act Finding Finding: The Modified Initial Study prepared for the Project has been completed in compliance with CEQA and consistent with state and local guidelines implementing CEQA.

The Planning Division of the City of Morgan Hill prepared an Initial Study for the Monterey-Kerley Project (Planning File No's. SD2021-0004, SR2021-0014, and EA2021-0012) in accordance with the requirements of the California Environmental Quality Act of 1970, as amended (“CEQA”), and state and local guidelines implementing CEQA; and
SECTION 3. Vesting Tentative Map Finding (MHMC Section 17.20.090) Finding: The proposed subdivision, together with its provisions for its design and improvements, is consistent with the General Plan or specific plans adopted by the City.

The Vesting Tentative Map entitled “Vesting Tentative Map 19380 Monterey Road” submitted by Ruggeri Jensen Azar dated February 2022, attached as Exhibit A has been designed consistent with the City’s General Plan, considering neighborhood circulation patterns, and providing future connections.

SECTION 4. Design Permit Findings (MHMC Section 18.101.040.J) Finding: The project is consistent with the General Plan, and Zoning Ordinance.

The project site is located in the MU-F Zoning District within Block Two of the Monterey Road Corridor. Typically to develop multi-family dwellings within this district, a Block Level Master Plan (BLMP)/PD Master Plan, and Conditional Use Permit would be required. SB 330 supersedes the Municipal Code requirement of a BLMP/PD Master Plan/Conditional Use Permit required for housing on this site.

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Finding: The project is subject to the SB 330 permit streamlining process and has been designed consistent with the City’s Design Review Criteria and the City’s Residential Development Design and Development Standards
The proposed project complies with all applicable design standards and guidelines contained in the Design Review Handbook and the City’s adopted Residential Development Design and Development Standards.

Finding: The proposed project development will not be detrimental to the public health, safety, or welfare or materially injurious to the properties or improvements in the vicinity.

Finding: The proposed project complies with all Design Review criteria in subsection H. of Section 18.108.040 of the municipal code.

The project as proposed complies with all criteria in subsection H of Section 18.108.040 (Design Review Criteria) of the Morgan Hill Municipal Code as demonstrated in the staff report.

SECTION 6. The Planning Commission approves SD2021-0004/SR2021- 0014/EA2021-0012: Monterey-Kerley (DeNova Homes). The design shall be expressly conditioned in conformance with conditions incorporated herein and as attached as Exhibit “B”. Minor deviations to the site review permit may be approved by the Development Services Director when consistent with the overall intent of the project.

PASSED AND ADOPTED THIS 13th DAY OF SEPTEMBER 2022, AT A REGULAR MEETING OF THE PLANNING COMMISSION BY THE FOLLOWING VOTE:

AYES: COMMISSIONERS: MUELLER, TANDA, HABIB, DOWNEY
NOES: COMMISSIONERS: LAKE, WILSON
ABSTAIN: COMMISSIONERS: NONE
ABSENT: COMMISSIONERS: KUMAR

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Resolution No. 22-17

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EXHIBIT "A"

VESTING TENTATIVE MAP

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City of Morgan Hill
Resolution No. 22-17

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EXHIBIT "B" STANDARD CONDITIONS
APPLICATION NO: SD2021-0004/SR2021-0014/EA2021-0012- Monterey-Kerley (DeNova Homes)

THE FOLLOWING APPROVAL REQUIREMENTS AND ANY SPECIAL CONDITIONS SHALL BE APPLIED THROUGH THE DEVELOPMENT APPROVAL PROCESS.

Legend
MHMC= Morgan Hill Municipal Code
MHARH= Morgan Hill Architectural Review Handbook
CMH= City of Morgan Hill
CFC= California Fire Code
I. PROJECT DESCRIPTION
The condominium project will consist of 93-units, spread across 20, three-story buildings.

With the exception of the southernmost buildings (Buildings 16 and 17), each of which will be arranged in a seven-plex configuration, the proposed buildings will be arranged in either fourplex or five-plex configurations. Each unit will provide a two-vehicle garage on the first floor, two floors of living space, and a second-floor deck. Three unit types are proposed: Unit 1 will consist of two bedrooms, while Units 2 and 3 will offer three bedrooms. Each unit will include a porch located at the first-floor entry, directly beneath each unit’s second-floor deck. The proposed four-plex and seven-plex configurations will be constructed at a height of 40 feet, while five-plex configurations will be developed at a height of 40.25 feet.

The project will include 186 covered parking spaces (garage spaces) for residents, and 39 uncovered parking spaces for guests, for a total of 225 parking spaces. Each of the 93 garages will be pre-wired to contain the necessary infrastructure for future residents to be able to install and use electric vehicle (EV) charging stations. Approximately 41 percent of the proposed project’s parking spaces will have EV charging capabilities.

Every garage will include a 12 square foot space for long-term bicycle parking.

The project will include various amenities, including a dog park, picnic areas, passive recreation areas, and an exercise structure. Fifteen percent of the units (14) will be deed restricted inclusionary housing units restricted for moderate income households.

A single-lot Vesting Tentative Map will be created.

Concession

1. Floor Area Ratio: The maximum FAR for project sites zoned MU-F in the City is

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0.5. The project has a maximum FAR of 0.98. At its hearing on Feb 16, 2022, the City Council made the requisite findings to concur with this concession of the MU-F standards.

The project shall comply with all requirements of related project approvals granted by the City, including all of the following:

A. Vesting Tentative Map SD2021-0004
B. Design Review SR2021-0014
D. Environmental Assessment EA2021-0012
II. PROJECT CONDITIONS OF APPROVAL
This Design Permit approval is limited to the plan sets prepared by RJA dated February 2022 and SDG Architects dated December 2021, on file (File Number SR2021-0014) with the Development Services Department. The approved building plans and landscape plans must be in substantial conformance with the Design Permit plans as determined by the Development Services Director. These documents show the location and dimensions of all vehicle and pedestrian circulation ways (ingress/egress), common areas, and other easement areas.

It shall be the responsibility of the Owner to ensure that any changes or modifications to the Project or any Unit are in compliance with the original City Conditions of Approval of the Project, which are incorporated herein.

PLANNING DIVISION

DEFENSE AND INDEMNITY
A. As part of, and in connection, with this application to the City of Morgan Hill, Applicant agrees to defend, indemnify, and hold harmless the City of Morgan Hill, its officers, agents, employees, officials and representatives (Indemnitees) from and against any and all claims, actions, or proceedings arising from any suit for damages or for equitable or injunctive relief which is filed against City to attack, set aside, void or annul its approval of this application or any related decision, or the adoption of any environmental documents which relates to said approval. The City shall promptly notify the Applicant of any such claim, action or proceeding and the City shall cooperate fully in the defense thereof. In the event that Applicant is required to defend Indemnitees in connection with the proceeding, Indemnitees shall retain the right to approve (a) the counsel to so defend Indemnitees; (b) all significant decisions concerning the manner in which the defense is conducted; and (c) any and all settlements, which approval shall not be unreasonably withheld. This indemnification shall include, but is not limited to, (a) all pre-tender

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litigation costs incurred on behalf of the City, including City's attorney's fees and all other litigation costs and expenses, including expert witnesses, required to defend against any lawsuit brought as a result of City's approval or approvals; (b) reasonable internal City administrative costs, including but not limited to staff time and expense spent on the litigation, after tender is accepted; and (c) all damages, costs, expenses, attorney fees or expert witness fees that may be awarded to the prevailing party arising out of or in connection with the approval of the application or related decision. City may, in its sole discretion, participate in the defense of such action; but such participation shall not relieve Applicant of its obligations under this condition. The undersigned hereby represents that they are the Applicant or are fully empowered by the Applicant as their agent to agree to provide the indemnification, defense and hold harmless obligations, and the signature below represents the unconditional agreement by Applicant to be bound by such conditions.

TIME LIMITS
A. Term: The Design Permit approval granted pursuant to this Resolution shall remain in effect for two years to September 13, 2024. Failure to obtain building permits within this term shall result in termination of approval unless an extension of time is granted with a showing of just cause prior to expiration date. (MHMC

18.108.040)
B. Term: The Vesting Tentative Map approval granted pursuant to this Approval Certificate shall remain in effect for two years to September 13, 2024. Failure to apply for Final Map approval with the City Engineer within this term shall result in expiration of approval unless an extension of time is granted by the Development Services Department prior to the expiration date. (MHMC 18.104.210)

SITE DEVELOPMENT
A. Final Site Development Plans: Final site development plans shall be reviewed for conformance with the RJA plans dated February 2022 (SR2021-0014) and in accordance with Morgan Hill Municipal Code Section 18.108.040 (Design Permit) and approved by the Development Services Department prior to issuance of a building permit. All such plans shall include:

1. Detail depicting all concrete curbs as full formed.

2. Provision of catalogue drawings depicting the proposed parking area lighting fixtures. Exterior lighting of the building and site shall be designed so that lighting is not directed onto adjacent properties and light source is shielded from direct off-site viewing.

3. Ramps, special parking spaces, signing and other physical features for the

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disabled, shall be provided throughout the site for all publicly used facilities.

4. All mechanical equipment, including electrical and gas meters, post indicator valve, backflow prevention devices, etc., shall be architecturally screened from view or located interior to the building. All ground mounted utility appurtenances such as transformers shall not be visible from any public right-of-way and shall be adequately screened through the use or combination of concrete or masonry walls, berming, and landscaping. (MHARH p.20, 45, 79) For additional screening, backflow preventers shall be painted dark green, except the fire connection which shall be painted yellow.

5. All existing on-site overhead utilities shall be placed underground in an approved conduit from the service connection at the street or at the property line to the service connection at the building.

B. Pedestrian Access: The Project shall provide pedestrian walkways in compliance with ADA requirements and with Section 18.72.060.H of the Morgan Hill Municipal Code, which states the following:

1. Parking lots with more than thirty parking spaces shall include a pedestrian walkway in compliance with ADA requirements.

2. The design of the pedestrian walkway shall be clearly visible and distinguished from parking and circulation areas through striping, contrasting paving material, or other similar method as approved by the Development Services Director.

C. Bicycle parking. The project shall provide short-term and long-term bicycle parking spaces in conformance with Section 18.72.080 and Table 18.72-7 of the Morgan Hill Municipal Code:

Table 18.72-7: Required Bicycle Parking Spaces
Land Use Required Bicycle Parking Spaces
Short-Term Spaces Long-Term Spaces
Multi-family dwellings 10 percent of required
automobile spaces; min.
of 4 spaces
1 per 5 units

1. Short-Term/Class II Bicycle Parking Standards. Short-term bicycle parking shall be located within one hundred feet of the primary entrance of the structure or use it is intended to serve.

2. Long-Term Bicycle Parking Standards. The following standards apply

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to long-term bicycle parking:
a. Location. Long-term bicycle parking shall be located on or within seven hundred fifty feet of the use that it is intended to serve. b. Security. Long-term bicycle parking spaces shall be secured.

Spaces are considered secured if they are:
i. In a locked room or area enclosed by a fence with a locked gate;
ii. Within view or within one hundred feet of an attendant or security guard;
iii. In an area that is monitored by a security camera; or iv. Visible from employee work areas.

3. Parking Space Dimensions.
a. Minimum dimensions of two feet by six feet shall be provided for each bicycle parking space.
b. An aisle of at least five feet shall be provided behind all bicycle parking to allow room for maneuvering.
c. 2 feet of clearance shall be provided between bicycle parking spaces and adjacent walls, polls, landscaping, pedestrian paths, and other similar features.
d. Four feet of clearance shall be provided between bicycle parking spaces and adjacent automobile parking spaces and drive aisles.

4. Rack Design. Bicycle racks must be capable of locking both the wheels and the frame of the bicycle and of supporting bicycles in an upright position.

5. Cover. Required cover for bicycle parking spaces shall be permanent, designed to protect the bicycle from rainfall, and at least seven feet above the floor or ground.

The location of all bicycle parking spaces shall be identified prior to issuance of a building permit.

D. Electric Vehicle Charging Stations: The Project shall provide electric vehicle charging stations in compliance with Section 18.72.040.C of the Morgan Hill Municipal Code. The project is required to provide two charging stations, plus one for each additional fifty parking spaces. The developer shall provide location of each charging station prior to issuance of building permit.

E. Garage parking: Residents shall use dedicated garages for parking. This requirement shall be incorporated into the Covenants, Conditions and Restrictions (CC&R’s) for the project.

F. Street Names: Street names, private or otherwise, used to identify building

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locations shall be submitted at building permit stage to the Planning Division for approval. Proposed street names shall comply with the Street Naming Policy approved by City Council (Resolution No. 4601).

BUILDING DESIGN
A. Roof mounted mechanical equipment: All roof mounted mechanical equipment shall be placed within a screened roof top enclosure depicted on the elevation drawings or located below the parapet level and shall not be visible from the ground at any distance from the building. Cross section roof drawings shall be provided at the building permit stage indicating the relative height of the screen wall or parapet. Minimum screen height or parapet depth shall be 5 feet or greater to match the height of any proposed equipment. (MHARH p.48, 65, 87, 106) B. Building mounted lighting: Lighting fixtures shall not project above the facia or roofline of the building. Any ground mounted lighting projecting onto the building or site shall be subject to the review and approval of the Development Services Director. Adjustment to the lighting intensity may be required after the commencement of the use. (MHARH p. 67, 109)
C. Architectural elements: A final site development plan shall be provided at the building permit stage for review and approval to the Development Services Director prior to issuance of a building permit.

1. All vents, gutters, downspouts, flashing, electrical conduits, etc. shall be painted to match the color of the adjacent surface or otherwise designed in harmony with the building exterior.

2. Soffits and other architectural elements visible from view but not detailed on the plans shall be finished in a material in harmony with the exterior of the building.

PARKING, VEHICULAR ACCESS AND LANDSCAPING
A. Parking lot landscaping: All landscaping within parking lots shall comply with the requirements of Chapter 18.72 (Landscaping) in addition to the standards within this section.

1. Interior Landscaping. All areas within a parking lot not utilized for parking spaces or access/circulation shall be landscaped. For parking lots with more than fifteen spaces, the minimum amount of interior landscaping is specified in Table 18.72-6. Interior landscaping is defined as any landscaped area surrounded on at least two sides by parking spaces or drive aisles, and excluding areas around the perimeter of the parcel or development site.

Table 18.72-6: Minimum Required Parking Lot Landscaping

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Number of Required Parking
Spaces
Percent of Surface Parking Area to
be Landscaped
16-30 10 percent
31-60 15 percent
Over 60 20 Percent

2. Shade Trees.
a. One shade tree shall be provided for every five parking spaces in a parking lot.
b. Shade trees shall be a minimum twenty-four-inch box in size and shall provide a minimum thirty-foot canopy at maturity. c. Shade trees shall be of a type that can reach maturity within fifteen years of planting and shall be selected from a city-recommended list of canopy tree species.
d. Shade trees shall be arranged in a parking lot to provide maximum shade coverage (based on a thirty-foot canopy) on August 21. The arrangement should approximate nearly fifty percent shade coverage.

3. Concrete Curbs.
a. All landscape areas shall be separated from parking spaces, drive aisles and driveways by a continuous, raised concrete curb. Raised concrete curbs shall be a minimum of six inches high by four inches deep.
b. The city may approve alternatives to raised concrete curbs as needed to comply with any mandatory stormwater drainage standards.

4. Parking Space Landscaping. A maximum of two feet at the front end of a parking space may be landscaped with low shrubs or ground cover in which a vehicle could extend over in lieu of paving surface. This landscaping may not count toward minimum required parking lot landscaped area.

5. Timing. Landscaping shall be installed prior to the city's authorization to occupy any buildings served by the parking area, or prior to the final inspection for the parking lot.

B. Planting and irrigation working drawings: Detailed landscape planting and irrigation working drawings shall be submitted to the Development Services Director for approval prior to issuance of building permits. Landscape plans for streets and landscape easements shall be part of the improvement plan submittal.

C. Lighting: Walkways and pedestrian pathways in landscaped areas or common

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areas not considered building entrances or a part of parking lot areas shall be illuminated with a minimum of one (1) foot-candle to ensure safe nighttime conditions. (MHARH p.30, 67, 108)

1. A final photometric plan shall be provided at the building permit stage for review and approval to the Development Services Director prior to issuance of a building permit.

D. Maintenance of landscaping: The landscaping installed and accepted with this project shall be maintained on the site as stated within the approved plans.

Any alteration or modification to the landscaping shall not be permitted unless otherwise approved by the Development Services Director.

E. Water Conserving Landscape Ordinance: The landscape plans shall be in conformance with the City’s Water Conserving Landscape Ordinance that was developed in accordance with California law. This Ordinance restricts landscaping turf to certain areas, specifies plant selection, requires certain types of irrigation equipment, and calls for the development of comprehensive water use calculations as an aspect of the submitted landscape plans. (MHMC 18.64) F. Reciprocal Ingress/Egress Easements: Prior to issuance of a certificate of occupancy, the property owner shall record an appropriate deed restriction and covenant running with the land subject to review and approval of the Development Services Director for a reciprocal ingress/egress easement along the common driveway.

G. Residential Landscape Buffer (Southern Property Line): Subject to the approval of the Development Services Director or designee, the landscape plans shall be modified to include additional trees and larger trees (maximum 24-inch box) along the southern property line shared with the Angelica Court properties. The applicant and City shall select evergreen tree species for quick growth, large canopies, and minimal “shedding”, that comply with the Water Efficient Landscape Ordinance and other City standards.

SIGNS
A. Separate application required for sign approval: Signs proposed for this development shall be designed in conformance with the Sign Ordinance and shall require separate application and approval by the Planning Division prior to installation of any signs.

B. Directory signs required: Directory sign(s) and location map(s) shall be provided for apartment, condominium, or townhouse projects prior to occupancy.

Location of the sign(s) shall be interior to the project and design of the directory

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sign(s) shall be approved by the Planning Division and Fire Department prior to issuance of building permits. (MHARH p.61)

HABITAT PLAN
A. Fees: The approved project is covered pursuant to the Santa Clara Valley Habitat Plan (Habitat Plan) and subject to fees and conditions contained in the Habitat Plan.

B. Application Package: Prior to issuance of a grading permit, the project shall complete and submit a Habitat Plan Application Package. All fees shall be paid prior to issuance of a grading permit. (MHMC 18.132)
C. Conditions: Any additional conditions or mitigations required by the Habitat Plan shall be clearly stated on all plans that involve any ground disturbing activity (i.e. grading plans, improvement plans, paving plans, demolition plans or other plans for site clearing or temporary stockpile of dirt). (MHMC 18.132)

AIR QUALITY
A. Basic Construction Mitigation Measures (BCMMs) related to dust suppression. The following measures shall be implemented with the project:

1. All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered two times per day.

2. All haul trucks transporting soil, sand, or other loose material off-site shall be covered.

3. All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited.

4. All vehicle speeds on unpaved roads shall be limited to 15 mph.

5. All roadways, driveways, and sidewalks to be paved shall be completed as soon as possible. Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used.

6. Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to five minutes (as required by the California airborne toxics control measure Title 13, Section 2485 of California Code of Regulations [CCR]). Clear signage shall be provided for construction workers at all access points.

7. All construction equipment shall be maintained and properly tuned in

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accordance with manufacturer’s specifications. All equipment shall be checked by a certified visible emissions evaluator.

8. Post a publicly visible sign with the telephone number and person to contact at the lead agency regarding dust complaints. This person shall respond and take corrective action within 48 hours. The Air District’s phone number shall also be visible to ensure compliance with applicable regulations.

BIOLOGICAL RESOURCES
A. Preconstruction Nesting Bird Survey: If construction activities associated with the proposed project are to be conducted during the breeding season (i.e., February 1 through August 31), a preconstruction nesting bird survey shall be conducted. The survey shall be performed by a qualified biologist no more than three days prior to the initiation of work, and shall encompass the project site as well as visual inspection of trees within 500 feet of the site to identify active nests.

If nesting or breeding activity is not observed, further action is not required, and work may proceed without restrictions. All survey results shall be submitted to the City of Morgan Hill Development Services Department prior to the start of construction.

If construction activities are to be conducted outside of the breeding season (i.e., September 1 through January 31), preconstruction surveys for nesting migratory birds are not necessary.

B. Buffer Zone: If any active nests are located within the study area, an appropriate buffer zone shall be established around the nests, as determined by the project biologist. The biologist shall mark the buffer zone with construction tape or pin flags and maintain the buffer zone until the end of breeding season or the young have successfully fledged. Buffer zones are typically between 100 feet and 250 feet for migratory bird nests and between 250 feet and 500 feet for a raptor nest.

If active nests are found within the study area, a qualified biologist shall monitor nests daily for a minimum of five days during construction to evaluate potential nesting disturbance by construction activities. If construction activities cause the nesting bird(s) to vocalize, make defensive flights at intruders, get up from a brooding position, or fly off the nest, then an exclusionary buffer shall be increased, as determined by the qualified biologist, such that activities are far enough from the nest to stop the agitated behavior. The exclusionary buffer shall remain in place until the chicks have fledged or as otherwise determined by a qualified biologist.

C. Tree Removal Permit: Any tree subject to Chapter 12.32 Restrictions on Removal of Significant Trees of the Morgan Hill Municipal Code requires approval

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from the Planning Division. The applicant shall request approval prior to removing any significant trees.

D. Tree Protection: Unless tree removal has been previously approved, all trees located within 25 feet of any site disturbance shall be protected using the following minimum protection measures (these guidelines shall be included with all site development plans):

1. Mark all trees to be saved with a survey flag or ribbon. Do not nail or staple directly to the tree.

2. Erect a temporary fence enclosing an area equal to at least the dripline of the tree (or as far from the trunk as possible). This tree protection zone shall not be used for parking, storage of building materials, or other equipment or the placement of temporary or permanent fill. Signs should be posted identifying the restriction of uses in the tree protection zone.

3. Locate structures, grade changes, and other ground or surface disturbances (e.g. concrete pours) as far as feasible from the “dripline” area of the tree.

4. Avoid root damage through grading, trenching, and compaction, at least within an area 1.5 times the dripline area of the tree. Where root damage cannot be avoided, roots encountered over 1 inch in diameter should be exposed approximately 12 inches beyond the area to be disturbed (towards the tree stem), by hand excavation, or with specialized hydraulic or pneumatic equipment, cut cleanly with hand pruners or power saw and immediately back-filled with soil. Avoid tearing or otherwise disturbing that portion of the roots to remain.

5. The addition of plant or other landscaping materials shall remain outside of the dripline of all trees.

6. All trees proposed to be removed from the project site shall be replaced at a 1:1 ratio. All replacement trees shall be a minimum of 15-gallons in size.

All replacement trees shall be shown on the landscape plans and approved by the Development Services Director prior to the issuance of the building/grading permit.

CULTURAL RESOURCES
A. Significant historic or archaeological materials: A moderate potential exists for unrecorded historic-period archaeological resources to be within the project area. The developer shall enter into written contracts with an archaeologist and the Tamien Nation Tribe, and pay all fees associated with the activities required by this condition. The following policies and procedures for treatment and disposition of inadvertently discovered human remains or archaeological

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materials shall apply:

1. Prior to start of grading or earthmoving activity (includes demolition and moving of heavy equipment on site) on the “first day of construction”, the archaeologist and Tribal Monitor shall hold a pre-construction meeting for the purposes of "cultural sensitivity training" with the general contractor and subcontractors.

2. A Tamien Nation Tribal Monitor shall be present on-site to monitor all ground-disturbing activities and an archaeologist shall be on-call. Where historical or archaeological artifacts are found, work in areas where remains or artifacts are found will be restricted or stopped until proper protocols are met, as described below:
a. Work at the location of the find will halt immediately within fifty feet of the find. If an archaeologist is not present at the time of the discovery, the applicant shall contact an archaeologist for evaluation of the find to determine whether it qualifies as a unique archaeological resource as defined by this chapter;
b. If the find is determined not to be a Unique Archaeological Resource, construction can continue. The archaeologist will prepare a brief informal memo/letter in collaboration with a tribal representative that describes and assesses the significance of the resource, including a discussion of the methods used to determine significance for the find;
c. If the find appears significant and to qualify as a unique archaeological resource, the archaeologist will determine if the resource can be avoided and will detail avoidance procedures in a formal memo/letter; and
d. If the resource cannot be avoided, the archaeologist in collaboration with a tribal representative shall develop within fortyeight hours an action plan to avoid or minimize impacts. The field crew shall not proceed until the action plan is approved by the Development Services Director. The action plan shall be in conformance with California Public Resources Code 21083.2.

3. The following policies and procedures for treatment and disposition of inadvertently discovered human remains or archaeological materials shall apply. If human remains are discovered, it is probable they are the remains of Native Americans,
a. If human remains are encountered, they shall be treated with dignity

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and respect as due to them. Discovery of Native American remains is a very sensitive issue and serious concern. Information about such a discovery shall be held in confidence by all project personnel on a need-to-know basis. The rights of Native Americans to practice ceremonial observances on sites, in labs, and around artifacts shall be upheld.
b. Remains should not be held by human hands. Surgical gloves should be worn if remains need to be handled.
c. Surgical mask should also be worn to prevent exposure to pathogens that may be associated with the remains.

4. In the event that known or suspected Native American remains are encountered, or significant historic or archaeological materials are discovered, ground-disturbing activities shall be immediately stopped.

Examples of significant historic or archaeological materials include, but are not limited to, concentrations of historic artifacts (e.g., bottles, ceramics) or prehistoric artifacts (chipped chert or obsidian, arrow points, ground stone mortars and pestles), culturally altered ash stained midden soils associated with pre-contact Native American habitation sites, concentrations of fire-altered rock and/or burned or charred organic materials and historic structure remains such as stone lined building foundations, wells or privy pits. Ground-disturbing project activities may continue in other areas that are outside the exclusion zone as defined below.

5. An "exclusion zone" where unauthorized equipment and personnel are not permitted shall be established (e.g., taped off) around the discovery area plus a reasonable buffer zone by the contractor foreman or authorized representative, or party who made the discovery and initiated these protocols, or if on-site at the time or discovery, by the monitoring archaeologist and tribal representative (typically twenty-five to fifty feet for single burial or archaeological find).

6. The discovery locale shall be secured (e.g., 24-hour surveillance) as directed by the City or County if considered prudent to avoid further disturbances.

7. The Contractor Foreman or authorized representative, or party who made the discovery and initiated these protocols shall be responsible for immediately contacting by telephone the parties listed below to report the find and initiate the consultation process for treatment and disposition:
• The City of Morgan Hill Development Services Director (408) 779- 7247

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• The Contractor’s Point(s) of Contact
• The Coroner of the County of Santa Clara (if human remains found) (408) 793-1900
• The Native American Heritage Commission (NAHC) in Sacramento (916) 653-4082
• The Amah Mutsun Tribal Band (916) 481-5785 (H) or (916) 743- 5833 (C)
• The Tamien Nation (707)295-4011 (office) and (925)336-5359 (THPO)

8. The Coroner has two working days to examine the remains after being notified of the discovery. If the remains are Native American the Coroner has 24 hours to notify the NAHC.

9. The NAHC is responsible for identifying and immediately notifying the Most Likely Descendant (MLD). (Note: NAHC policy holds that the Native American Monitor will not be designated the MLD.)

10. Within 24 hours of their notification by the NAHC, the MLD will be granted permission to inspect the discovery site if they so choose.

11. Within 24 hours of their notification by the NAHC, the MLD may recommend to the City’s Development Services Director the recommended means for treating or disposing, with appropriate dignity, the human remains and any associated grave goods. The
recommendation may include the scientific removal and non-destructive or destructive analysis of human remains and items associated with Native American burials. Only those osteological analyses or DNA analyses recommended by the appropriate tribe may be considered and carried out.

12. If the MLD recommendation is rejected by the City of Morgan Hill the parties will attempt to mediate the disagreement with the NAHC. If mediation fails then the remains and all associated grave offerings shall be reburied with appropriate dignity on the property in a location not subject to further subsurface disturbance.

HAZARDOUS MATERIALS
A. Dieldrin has been identified as exceeding the regulatory levels at locations ID-1, ID-2, and ID-4 in the limited soil analysis conducted by Apex. Following demolition and prior to issuance of a grading permit, additional soil sampling (in areas not capped with concrete) at a minimum of eight locations (approximate depth of surface to ½ and 1 ½ to 2 feet) shall be completed for pesticides and pesticide related metals (lead, arsenic and mercury) and petroleum hydrocarbons such as gasoline, diesel, and motor oil and CAM 17 metals, to determine whether Regional Water Quality Control Board Environmental Screening Levels (ESLs)

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are exceeded in any additional samples. The additional samplings shall be included in the Soil Remediation and Soil Management Plan to be provided to SCCDEH.

B. Soil disturbance on-site shall be conducted under a Soil Remediation and Soil Management Plan, and shall be under the oversight of the Santa Clara County Department of Environmental Health (SCCDEH). The SCCDEH shall oversee implementation of the Soil Remediation and Soil Management Plan, which shall include, but shall not be limited to, sampling activities performed, relevant ESLs for identified contaminants, summary of contaminated concentrations, and locations where ESLs are exceeded, and the plan for removing and properly disposing of the impacted areas. A qualified field geologist shall be present to observe excavation, disposal, and soil collection activities. Observations shall be made during demolition activities including, but not limited to, areas that may contain underground structures, buried debris, stained soils, waste drums, or odorous soils. If areas of possible contamination are encountered during demolition, they shall be properly handled. Stained soil, if encountered, a plan shall be developed for removal and proper disposal. The field geologist shall prepare a report summarizing the results of the Workplan for Shallow Soil Remediation upon completion of soil remediation activities. The report shall be submitted to the City of Morgan Hill Development Services Department for review and approval prior to issuance of a grading permit.

C. The former inground lift shall be disposed of in a regulatory approved manner.

Once removed, testing shall be completed on surrounding soil for contaminants.

If soil contamination is found to exceed ESLs, a plan shall be developed for the removal and proper disposal.

D. Prior to issuance of a demolition permit for on-site structures, the project applicant shall consult with certified Asbestos and/or Lead Risk Assessors to complete and submit for review to the Building Department an asbestos and lead survey. If asbestos-containing materials or lead-containing materials are not discovered during the survey, further mitigation related to asbestos-containing materials or lead-containing materials shall not be required. If asbestos-containing materials and/or lead-containing materials are discovered by the survey, the project applicant shall prepare a work plan to demonstrate how the on-site asbestoscontaining materials and/or lead-containing materials shall be removed in accordance with current California Occupational Health and Safety (Cal-OSHA) Administration regulations and disposed of in accordance with all CalEPA regulations, prior to the demolition and/or removal of the on-site structures. The plan shall include the requirement that work shall be conducted by a Cal-OSHA registered asbestos and lead abatement contractor in accordance with Title 8 CCR 1529 and Title 8 CCR 1532.1 regarding asbestos and lead training, engineering controls, and certifications. The applicant shall submit the work plan to the City for review and approval. The City has the right to defer the work plan

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to the Santa Clara County Department of Environmental Health for additional review. Materials containing more than one (1) percent asbestos that is friable are also subject to BAAQMD regulations. Removal of materials containing more than one (1) percent friable asbestos shall be completed in accordance with BAAQMD Section 11-2-303.

NOISE
A. Construction Hours: The project shall comply with Chapter 8.28 of the Morgan Hill Municipal Code which prohibits construction activities between 8:00 PM and 7:00 AM, Monday through Friday, and between 6:00 PM and 9:00 AM on Saturdays. Construction activities may not occur on Sundays or federal holidays.

B. Window and Door Upgrades: To comply with the General Plan’s interior noise level criteria including a factor of safety, the windows and doors of the building locations identified on Figure 9 (Window and Door Upgrade Locations-Bedrooms) and Figure 10 (Window and Door Upgrade Location -Other Habitable Rooms) (see Modified Initial Study for figures) shall be upgraded to the minimum STC rating indicated. Figure 9 shows the locations and associated STC ratings needed for bedroom windows/doors. Figure 10 illustrates the locations and associated STC ratings required for all other habitable room windows/doors.

C. Mechanical Ventilation: Mechanical ventilation (air conditioning) shall be provided to all residences of the proposed project to allow the occupants to close doors and windows, as desired, for additional acoustical isolation.

D. Disclosure: Disclosure statements shall be provided to all prospective residents of the proposed project, notifying of elevated noise levels during railroad passages, particularly during nighttime operations and periods of warning horn usage.

E. Construction Noise: During project construction, the project contractor shall ensure that to the maximum extent feasible, the following measures are incorporated into the project construction operations:
• Noise-generating construction activities shall be limited to the hours identified in Municipal Code Section 8.28.040(D);
• The project shall utilize temporary construction noise control measures including the use of temporary noise barriers, or other appropriate measures as mitigation for noise generated during construction of projects; • All noise-producing project equipment and vehicles using internalcombustion engines shall be equipped with manufacturers-recommended mufflers and be maintained in good working condition;
• All mobile or fixed noise-producing equipment used on the project site that are regulated for noise output by a federal, State, or local agency shall comply with such regulations while in the course of project activity;

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• Electrically powered equipment shall be used instead of pneumatic or internal-combustion-powered equipment, where feasible;
• Material stockpiles and mobile equipment staging, parking, and maintenance areas shall be located as far as practicable from noisesensitive receptors; • Project area and site access road speed limits shall be established and enforced during the construction period; and
• Nearby residences shall be notified of construction schedules so that arrangements can be made, if desired, to limit their exposure to short-term increases in ambient noise levels.

The aforementioned criteria shall be included in the project improvement plans submitted by the applicant/developer for review and approval to the City of Morgan Hill Development Services Department, prior to issuance of grading permits. Exceptions to allow expanded construction activities shall be reviewed on a case-by-case basis as determined by the City Engineer.

F. Masonry Wall: A 67-foot-tall masonry wall shall be constructed along the shared commercial/residential property line (i.e., northern project boundary). The location of the recommended noise barrier is illustrated on Figure 11 (Noise Barrier Location) (see Modified Initial Study for figure). The construction of a 67- foot-tall masonry wall at the location illustrated on Figure 11 is estimated to provide approximately 5 dB of attenuation of commercial noise at the project site, which would reduce the highest measured hourly average (Leq) commercial operations noise level to a state of compliance with the General Plan 60 dB Leq exterior noise level standard.

G. Fence (Southern Property Line):The applicant shall install a 7-foot- tall (6’ solid, 1 foot lattice) wood fence along the property line shared with the Angelica Court properties, provided that the fence is taller and provides better “screening value” than the existing fence, subject to the approval of the Development Services Director or designee.

GENERAL
A. Mitigation Fee Act: Notice is hereby given that, pursuant to the Mitigation Fee Act, the City of Morgan Hill charges certain fees (as such term is defined in Government Code Section 66000) in connection with approval of this development project for the purpose of defraying all or a portion of the cost of public facilities related to this development project (Mitigation Fee Act Fees).

These fees do not include fees for processing applications for governmental regulatory actions or approvals, or fees collected as part of development agreements. The Mitigation Fee Act Fees applying to this project are listed in the schedule of fees to be provided at building permit stage. Notice is also hereby given that the Developer has an opportunity to protest the imposition of the Mitigation Fee Act Fees within 90 days of the approval or conditional approval of

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this development project and that the 90-day protest period has begun.

B. Covenants, Conditions and Restrictions: The applicant shall provide a set of Covenants, Conditions and Restrictions (CC&R’s), Bylaws and Articles of Incorporation, for review and approval by the Development Services Director prior to final occupancy or recordation of a final map. All such CC&Rs shall include the following:

1. The Owners recognize that the use, modification and proper maintenance of the Common Area and public right-of-way(s)* are for the benefit of all citizens of the City of Morgan Hill (City) and that the City is an intended third-party beneficiary of these covenants, conditions and restrictions and may, upon notice of hearing as set forth below, exercise the same powers of enforcement as the Association.
*Public right-of-way: Exclusive of streets dedicated to and accepted by the City of Morgan Hill.

2. The City may, by mail or personal delivery, give written notice of the breach of any maintenance obligation to the Association with a demand that such breach be remedied. If such breach is not remedied within thirty (30) days of the mailing or delivery of such notice, the City shall have standing and the right (but not the obligation) to bring a court action against the Association and Owners to enforce such provision. In addition, the City shall be entitled to recover reasonable attorneys’ fees and costs incurred in such action.

3. The Notice may also contain a date for a hearing on the matter before a City employee designated by the City (which hearing shall be held no sooner than fifteen (15) days after mailing of such notice), and if after such hearing the City determines that there has been inadequate maintenance, the City shall have the right (but not the obligation) to undertake the maintenance of the Common Area or public right-of-way in question. Any and all costs incurred by the City in so maintaining the Common Area or public right-of-way shall be a lien against all the properties included with the Project and shall be the personal responsibility of the Owners and the Association.

4. The entire Project and all of the properties located thereon shall be subject to the conditions and restrictions of all subdivision and other Project approvals by the City, with respect to the Project. Any changes and/or modifications to the Project and/or any Unit, including but not limited to changes to the exterior of any Unit, may be subject to review and approval of the City of Morgan Hill as may be determined by review of the Project approvals by the City of Morgan Hill.

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5. This section may not be amended without the prior written consent of the Development Services Director for the City. Nothing contained in this section shall limit any other right or remedy which the City may have under its ordinances or state law.

6. For the purposes of this section, the question of whether there has been a breach of a maintenance obligation or adequate maintenance shall be determined by the provisions of the original Declaration as first recorded with the County Recorder for Santa Clara County and by any amendment thereto, but only to the extent that such maintenance obligation or duty of maintenance is increased by such amendment.

7. Disclosure: A statement shall be inserted into the homeowner disclosures identifying the potential for noise, dust, and other businessrelated operations created by the adjacent business (Irish Construction Co.), to the north.

ENGINEERING DIVISION
Project Specific
A. Final Map: The project’s Tract/Final Map shall be approved by the City Council prior to issuance of a grading permit. (MHMC 17.20.390; 17.24.210)

1. Public Service Easement: The project shall dedicate a 10’ wide Public Service Easement (PSE) along the Monterey Road frontage.

2. The project shall provide the following easements on site: Public Service Easement (PSE), Emergency Vehicle Access Easement (EVAE), Private Access Easement (PRAE), and Landscape Easement (LSE).

B. Parkland Dedication/Parkland Fee In-Lieu: This project is subject to the Parkland Dedication and Parkland Fee In-Lieu requirements (MHMC 17.28).

1. The developer shall pay fees, in-lieu of parkland dedication, at the time of filing of the project’s final map to meet the parkland obligation. The project’s parkland obligation will be calculated using the formula shown in MHMC Section 17.28.060 and is estimated to be $1,957,482.

2. Private recreation credits, which could allow a credit of up to 40% towards the parkland obligation, could be available for private open space(s) within the subdivision that meets the standard requirements listed in MHMC Section 17.28.130.

C. Sewer System Improvements

1. Private Sanitary Sewer Maintenance Agreement: Prior to final map approval/building permit issuance, the Owner(s) shall enter into a Private

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Sanitary Sewer Maintenance Agreement with the City for maintenance of all private sanitary sewer facilities which includes the private sewer mains, sewer laterals, force main and lift station (if necessary), and any other appurtenances. The Agreement shall be recorded at the County Recorder’s Office prior to building final.

D. Stormwater Infrastructure/Stormwater Management: The project is located within the jurisdiction of the San Francisco Bay (Region 2) Regional Water Quality Control Board (RWQCB). However, the City is regulated by the Central Coast RWQCB (Region 3) through an NPDES permit (State Water Resources Control Board Water Quality Order No. 2013-0001-DWQ; National Pollutant Discharge Elimination System (NPDES) General Permit No. CAS000004) and the City’s Residential Development Design and Development Standards require that the project comply with the Central Coast (Region 3) requirements as documented by the Stormwater Management Guidance Manual for Low Impact Development and Post‐Construction Requirements (“Stormwater Guidance Manual”). Therefore, the project is required to use the more stringent Low Impact Development (LID) design strategies from the Central Coast (Region 3).

1. At improvement plan/building permit stage, the project shall address the following:
a. Submit the final Stormwater Runoff Management Plan and final Stormwater Control Plan (SWCP)/Report that comply with the Stormwater Guidance Manual.
b. Submit revised plans to show the construction details for the proposed Filterra Treatment planters, subsurface infiltration systems, overflow structures, and outlet pipes.

2. The proposed subsurface infiltration systems shall comply with Chapter 6.5, “Subsurface Infiltration System” and Appendix A of the SCVURPPP C.3 Stormwater Handbook and the Santa Clara Valley Water District’s (SCVWD) Guidelines for Stormwater Infiltration Devices.

3. Maintenance Access to Stormwater Facilities: All stormwater management control measures shall be accessible at any given time for the purpose of operation, maintenance, and inspections. At improvement plan/building permit stage, the developer/owner(s) shall provide the inspection and equipment access details in the Stormwater Facility Maintenance section of the SWCP and in the Stormwater BMP Operation and Maintenance Agreement.

4. On-Site Retention Facility(ies): Due to lack of existing off-site drainage conveyance adjacent to the project, the project shall provide on-site retention facility(ies) designed to retain the 100-year, 24-hour design storm volume.

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The retention facilities shall comply with current City standards and other applicable requirements.
a. The 100-year, 24-hour design storm event volume of 6.50” rainfall is per the City’s 2018 Storm Drain Master Plan’s Hydrologic and Hydraulic Design Criteria.
b. Per City Storm Drain Design Standard Section 4.1600, 25% of the total retention basin volume shall be considered freeboard.
c. The on-site drainage retention volume may coincide with the project’s stormwater post-construction requirements.

E. Street Improvements:

1. Utility Undergrounding: The project shall underground the existing overhead utilities following overhead utilities along the project’s Monterey Road frontage only and locate the facilities underneath the sidewalk.

2. At building permit stage, the pavement section design of Monterey Road shall be verified based on actual field conditions (arterial street standard TI=8 and true R value).

3. Detailed review of the proposed street improvements, including Broadband design, will be performed at the improvement plan/building permit stage.

F. Water System Improvements:

1. Dedicated Irrigation Service: The project shall provide a dedicated irrigation service, meter, and backflow preventor assembly in accordance with current City standards.

2. Private On-Site Domestic and Fire Mains: The proposed on-site domestic and fire mains within the private streets/drive aisles shall be privately owned and maintained water systems by the property owner(s) or the Homeowners’ Association (HOA).
a. The private domestic water systems shall be looped to have two separate connections to the City water main. Each domestic connection to the City main shall have a public master meter and each fire connection to the City main shall have a double check detector backflow assembly; all water connections shall comply with current City standards. b. The project shall include ownership and maintenance responsibilities of the on-site private water systems in the HOA’s Covenants, Conditions, and Restrictions (CC&Rs) that are recorded concurrently with the Final Map.

3. Public Water Main Relocation: The project shall relocate the existing 8” City water main from the future detached sidewalk alignment to the adjacent roadway. The relocation shall be along the entire Monterey Road project

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frontage. The edge of the relocated water main trench shall be a minimum of 2’ from the concrete lip of gutter and comply with current City standards.

4. Water Main Separation Criteria: All new water main installations (public and private) shall adhere to the separation criteria established by the California Waterworks Standards (California Code of Regulations (CCR), Title 22, Division 4, Chapter 16, Section 64572). Any proposal for alternative compliance to these requirements shall be submitted to the State Water Resources Control Board’ Division of Drinking Water, pursuant to CCR, Title 22, Section 64551.100.

GENERAL
A. Final Map:

1. The applicant shall have a Final Map prepared by a registered engineer (licensed prior to 01/01/1982: registration number 33,965 or lower) or licensed land surveyor delineating all parcels and easements created.

There shall be concurrence in writing by PG & E, Telephone, Cable TV and any other affected agencies to all improvements and easements which are applicable to them. The number and locations of monuments shall be set as required by the City Engineer. (MHMC 17.20.200 A; 17.20.290;

17.24.010)
B. Public and Private Improvements: The applicant shall cause the construction of all public and private improvements in accordance with the latest City Standard Drawings and Specifications. (MHMC 12.02.090 A; 17.32.010 A) C. Improvement Plans: The applicant shall submit as part of the improvement drawings for the project, profiles of all improvements in the project and typical cross-sections of all streets and details of curbs, gutters, and sidewalks, to be accomplished to the satisfaction of the City Engineer prior to submittal of Final Map. (MHMC Sec 17.32.060 B; 17.32.070; 17.32.080 A)

1. Improvement plans shall show water lines, sanitary sewer, storm drain system, pavement widths, curve radius, and existing utilities.

D. Encroachment Permits: Obtain necessary encroachment permits from the City of Morgan Hill and provide guarantee covering off-site improvements. (MHMC

12.08.040 A; 12.08.090)
E. Subdivision Improvement Agreement: Enter into a Subdivision Improvement Agreement (SIA) with the City of Morgan Hill to cover required improvements. (MHMC 12.02.150; 17.32.010 B; 17.32.160)
F. Impact Fee and Fee Increase: The City of Morgan Hill, pursuant to City Code Chapter 3.56 has established impact fees to finance the cost of improvements

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required by new development. City Code Chapter 3.56.050 provides for automatic annual (July 1st) adjustment of those fees in existence utilizing the Engineering News Record Index for the preceding twelve months. The City maintains historical records on the Engineering News Record Index. These records are available for inspection during normal business hours. (MHMC 3.56.010;

3.56.030; 3.56.050)

1. The developer shall pay all applicable impact fees in effect at the time of application submittal (August 12, 2021) and other engineering review fees prior to building permit issuance and at building final. The fees shall be based on the Public Works Fee Schedule prepared by Land Development Engineering.

STREET IMPROVEMENTS
A. Public and Private Streets: The applicant shall cause the design and construction of all new public and private streets serving the project. The design of all new public and private streets shall be consistent with the General Plan Land Use and Circulation Element as well as the Street Standard Details as contained within the Public Works Standards Details. The construction of the streets shall be undertaken to the lines and grades and in a manner satisfactory to the City Engineer. All street improvements shall be constructed to the satisfaction of the City Engineer. The timing of the improvements will be determined by the City. (MHMC 12.02.010; 12.02.090; 17.32.060 B; CMH General Plan; CMH Design Standards and Standard Details for Construction)
B. Installation and Dedication of Streets: The project shall install and dedicate street improvement including, but not limited to, curb and gutter, sidewalk, compaction, street paving, oiling, storm drainage facilities, sewer and water, fire protection, undergrounding of utilities and street lighting in conformance with City of Morgan Hill requirements. (MHMC 12.02.010; 12.02.50; 12.02.080; 12.02.100;

17.28.010; 17.32.060)
C. Right-of-Way Dedications: The project shall dedicate and /or rededicate, in fee, a total of approximately 57 feet from center line of public right-of-way on Monterey Road. (MHMC 12.02.010; 12.02.50; 12.02.080; 12.02.90; 12.02.100;

17.28.010)
D. Underground existing utilities: All existing overhead utilities adjacent to any site boundary or along any street frontage of site shall be placed underground in accordance with City standards and affected utility company guidelines. (MHMC

12.02.090 B; 17.32.020 E.1)
E. Street Trees: The proposed street trees shall comply with the street tree species and spacing listed under the applicable zone in the Master Street Tree List of the

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City’s Master Street Tree Plan.

SANITARY SEWER SYSTEM
A. Design of Sewer Improvements: The applicant shall cause to be undertaken the design and construction of sanitary sewer improvements including, but not limited to installation of sewer line extension on the proposed public street(s) or private street(s)/drive aisle(s). The sanitary collection system shall include, but not be limited to manholes with manhole frames and covers, cleanouts, wyebranches and laterals, and separate sewer taps to each lot. These are to be installed by the developer. (MHMC 13.20.355; 17.32.020 C; CMH Sewer System Master Plan; CMH Design Standards and Standard Details for Construction) B. Sewer Connections: All existing and future sewer lines shall be tied into the City's system and existing septic systems shall be abandoned in accordance with City requirements. (MHMC 13.24.060; 17.32.20 C)

STORM DRAIN SYSTEM
A. Storm Drainage Study: A complete storm drainage study of the proposed development must be submitted showing amount of run-off, and existing and proposed drainage structure capacities. This study shall be subject to review and approval by the City Engineer. All needed improvements will be made by the applicant. No overloading of the existing system will be permitted. (MHMC

17.32.020 B;17.32.090; CMH Design Standards and Standard Details for Construction)
B. Storm Drainage Design: The applicant shall cause the design and construction to be undertaken for a storm drainage collection system shown on the Tentative Map/Design Review plans. All storm drain improvements shall be constructed to the satisfaction of the City Engineer. (MHMC 17.32.020 A & B) C. Storm Drainage Capacity: Collection system shall be designed to be capable of handling a 10-year storm without local flooding. On-site detention facilities shall be designed to a 25-year storm capacity. Streets shall be designed to carry 100- year storm. Items of construction shall include, but not be limited to installation of storm line extension on proposed public street(s), surface and subsurface storm drain facilities, manholes with manhole frames and covers, catch basins and laterals. Note: the project may be required to retain stormwater runoff as part of resolution R3-2013-0032 prior to releasing discharge rates at pre-development flows. (MHMC 17.32.020 B; 18.74.440; CMH Design Standards and Standard Details for Construction; CMH Storm Drainage System Master Plan) D. Storm Drainage General Requirements: Prior to issuance of a grading permit, the applicant shall complete the following to the satisfaction of the City Engineer.

1. Storm drain calculations to determine detention/retention pond sizing and

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operations.

2. Plan describing how material excavated during construction will be controlled to prevent this material from entering the storm drain system.

3. Water Pollution Control Drawings (WPCD) for Sediment and Erosion Control.
(CMH Design Standards and Standard Details for Construction) E. NPDES Construction Activity General Permit/SWPPP Requirements: As required by the State Water Resources Control Board (SWRCB) Order No. 2009- 0009-DWQ, construction activity resulting in a land disturbance of one (1) acre or more of soil, or whose projects are part of a larger common plan of development that in total disturbs more than one (1) acre, are required to obtain coverage under the National Pollutant Discharge Elimination System (NPDES) General Permit No. CAS000002 for Discharges of Storm Water Associated with Construction Activity (General Permit). To be permitted with the SWRCB under the General Permit, owners must file a complete Notice of Intent (NOI) ONLINE at:
http://smarts.waterboards.ca.gov/smarts/faces/SwSmartsLogin.jsp and develop a Storm Water Pollution Prevention Plan (SWPPP) Manual in accordance with the General Permit. The SWPPP Manual shall follow the CASQA SWPPP template/format at https://www.casqa.org/store/products/tabid/154/p-167- construction-handbookportal-initial-subscription.aspx and shall be approved by Public Works Engineering. A Waste Discharger Identification (WDID) number to be issued to the construction site after the SWRCB receives and verifies the submitted ONLINE NOI information. The WDID number and approved SWPPP Manual shall be provided to Public Works and the Building Department prior to any approval of grading activities (SWRCB NPDES General Permit CA000002).

F. NPDES General Permit/Site SWPPP Inspections and Compliance:

1. ALL project onsite and offsite construction activity shall have the site inspected by a qualified third party SWPPP Inspector (QSD or QSP or RCE).

2. SWPPP Inspections shall occur weekly during the rainy season (September 15th thru May 1st).

3. SWPPP Inspections shall occur bi-weekly during the non-rainy season.

4. 48 hours prior to and following a forecasted rain event, SWPPP Inspections shall occur in addition to those of items 2 or 3 above.

5. Per each of the inspection conditions 2, 3, or 4, SWPPP inspection reports, and when applicable, Rain Event Action Plans (REAPS) shall be e-mailed to: [email protected] no later than 12:00 PM

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each Monday for the previous week’s inspections with a brief statement whether the site is in compliance or non-compliant.

6. Prior to rain events, BMPs not in compliance will need to be corrected immediately.

7. Illicit discharges per the NPDES General Permit, non-compliance of tracking control, and inlet protection within the public right of way shall be address immediately.

8. Other non-compliance issues need to be addressed within a 24-hour period.

9. Non-compliance issues which have been corrected shall be verified by NPDES SWPPP Inspector by a follow up inspection.

10. BMPs maintenance/inspections shall include tree protection, if applicable.

WATER SYSTEM
A. Domestic Water System: The applicant shall cause the design and construction to be undertaken of a domestic water system to the satisfaction of the City Engineer. The water system improvements shall be constructed within public easements or street rights-of-way to the satisfaction of the City Engineer and dedicated to the City. (MHMC 17.32.020 A & D; CMH Design Standards and Standard Details for Construction; CMH Water System Master Plan) B. Water well abandonment: Abandonment of any existing water well shall be in conformance with Santa Clara Valley Water District (SCVWD) Ordinance 90-1.

Location and disposition to be shown on the plan. Well(s) shall be properly registered with the SCVWD and either be maintained or abandoned in accordance with SCVWD standards.

C. Water line extension: Install water line extension on the proposed public streets and/or private streets. (MHMC 17.32.020 A & D; CMH Water System Master Plan)
D. Water Master Meter: All residential units are being served by a master public meter(s) and shall be privately sub-metered as allowed pursuant to Section

13.04.130.C of the Morgan Hill Municipal Code:

1. The owner shall obtain approval/permit from the Public Works Department for the submeter system.
a. Any submeters shall accurately and completely measure all water consumed from the municipal water system.

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The owner shall agree to charge the tenant of each unit a water utility charge strictly based on the consumption by the occupants of the unit.
c. Installation, maintenance, and monitoring of the submeter system shall be the responsibility of the owner, and in no circumstances shall the City be responsible.
d. If any water conservation plan is implemented or imposed by the City, the owner shall be responsible for complying with any reductions required by such plan as measured by consumption on the meter(s) directly connected to the municipal water system.

2. Failure to abide by the above conditions, and/or any other conditions the City may impose, may result in revocation of any permit issued and/or other action as authorized by law, such as at the owner’s expense to install individual public water meters for each unit.

3. Owner/developer shall execute an agreement with the City to cover/outline the requirements of Section 13.04.130.C of the Municipal Code to be reviewed and approved by the City Engineer or designee.

4. Records of bookkeeping and private sub-metering usage shall be accurately maintained digitally. Upon request from the City, records shall be produced to the City within a 24-hour period.

OTHER CONDITIONS
A. Easement Dedications: The owner shall dedicate all necessary utility easements. (MHMC 12.02.080 D; 17.28.010 A)
B. Undergrounding new utilities: The applicant shall cause the design and construction required to underground all electric, gas, Cable TV, and communication lines within the development. Such design and construction shall be to the satisfaction of the affected utilities and the City Engineer. (MHMC

17.32.020 E.1)
C. Landscaping and Irrigation Systems: Landscaping and irrigation systems serving common areas that are required to be installed in the public right-of-way on the perimeter of this tract area shall be continuously maintained by the property owner or designated maintenance entity.

D. Final Landscape Plans: Final landscape plans shall be submitted with and included as part of the improvement plans for the subdivision. (MHMC 17.08.090) E. Pre-construction Meeting: Prior to the approval of any Building Permit for grading activity, the developer shall schedule a pre-construction meeting with the Public Works Inspection Division with the following project team members:

1. Civil Engineer of record

2. Geotechnical Engineer of record

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3. Third Party QSD/QSP SWPPP Inspector

4. General Contractor

5. Sub-Contractors
F. As-Built Submittal Standards: The developer shall submit digital as-builts of the project’s Final Map, Grading Plan, and Improvement Plans which adhere to the City’s updated GIS/CAD Developer Submittal Standards.

NPDES WATER QUALITY STORMWATER MANAGEMENT DEVELOPMENT

STANDARDS
A. Stormwater Post Construction Requirements (PCRs): Project shall comply with the California Regional Water Quality Control Board Central Coast Region Resolution No. R3-2013-0032 as documented by the Stormwater Management Guidance Manual for Low Impact Development and Post-Construction Requirements (developed from Resolution No. R-2013-0032 Attachment 1 and 2 at:
http://www.waterboards.ca.gov/centralcoast/water_issues/programs/stormwater/ docs/lid/lid_hydromod_charette_index.shtml). A copy of the Guidance Manual can be obtained from the City’s Land Development Engineering webpage.

Project shall provide Stormwater Runoff Management Plan, Stormwater Control Plan and Checklist, and applicable calculations per the Guidance Manual. Project shall meet the applicable Post-Construction Requirements:

1. Performance Requirement 1: Site Design and Runoff Reduction

2. Performance Requirement 2: Water Quality Treatment

3. Performance Requirement 3: Runoff Retention

4. Performance Requirement 4: Peak Management
B. Peak Storm Water Runoff Discharge Rates - Post-development peak storm water runoff discharge rates shall not exceed the estimated pre-development rate for developments where the increased peak storm water discharge rate will result in increased potential for downstream erosion. Note: the project may be required to retain stormwater runoff as part of resolution R3-2013-0032 prior to releasing discharge rates at pre-development flows.

C. Storm Drain System Stenciling and Signage: All storm drain inlets and catch basins within the project area must be stenciled with prohibitive language (such as: “NO DUMPING – DRAINS TO CREEK”) and/or graphical icons to discourage illegal dumping. Signs and prohibitive language and/or graphical icons, which prohibit illegal dumping, must be posted at public access points along channels and creeks within the project area. Legibility of stencils and signs must be maintained.

D. Outdoor Material Storage Areas: The following Structural or Treatment BMPs are required for outdoor material storage areas:

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1. Materials with the potential to contaminate storm water must be: (1) placed in an enclosure such as, but not limited to, a cabinet, shed, or similar structure that prevents contact with runoff or spillage to the storm water conveyance system; or (2) protected by secondary containment structures such as berms, dikes, or curbs.

2. The storage area must be paved and sufficiently impervious to contain leaks and spills.

3. The storage area must have a roof or awning to minimize collection of storm water within the secondary containment area.

E. Design Standards for Structural or Treatment Control BMPs: The postconstruction treatment control BMPs shall incorporate, at a minimum, either a volumetric or flow- based treatment control design standard, or both, as identified below to mitigate (infiltrate, filter or treat) storm water runoff:

1. Volumetric Treatment Control BMP
a. The 85th percentile 24-hour runoff event determined as the maximized capture storm water volume for the area, from the formula recommended in Urban Runoff Quality Management, WEF Manual of Practice No. 23/ASCE Manual of Practice No. 87, (1998); or
b. The volume of annual runoff based on unit basin storage water quality volume, to achieve 80 percent or more volume treatment by the method recommended in California Stormwater Best Management Practices Handbook – Industrial/ Commercial, (2003); or
c. The volume of runoff produced from a historical-record based reference 24-hour rainfall criterion for “treatment” that achieves approximately the same reduction in pollutant loads achieved by the 85th percentile 24-hour runoff event.

2. Flow Based Treatment Control BMP
a. The flow of runoff produced from a rain event equal to at least two times the 85th percentile hourly rainfall intensity for the area; or b. The flow of runoff produced from a rain event that will result in treatment of the same portion of runoff as treated using volumetric standards above.

F. Stormwater Runoff Management Plan (SWRMP): The Stormwater Runoff Management Plan shall include sufficient information to evaluate the environmental characteristics of affected areas, the potential impacts of the proposed development on water resources, and the effectiveness and acceptability of measures (post construction BMPs) proposed for managing stormwater runoff.

1. The Stormwater Runoff Management Plan shall be prepared under the direction of a professional civil engineer registered in the State of California.

The responsible professional civil engineer shall stamp and sign the approved Stormwater Runoff Management Plan.

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2. The developer shall provide a signed certification from the civil engineer responsible for preparing the Stormwater Runoff Management Plan that all stormwater best management practices have been designed to meet the requirements of this chapter.

3. Each certifying civil engineer shall establish to the City's satisfaction that such person has been trained on the design of stormwater quality best management practices not more than three years prior to the certification signature date.

4. Qualifying training shall be conducted by an organization with stormwater quality management expertise, such as a university, the Bay Area Stormwater Management Agencies Association, the American Society of Civil Engineers, the American Public Works Association, or the California Water Environment Association.

G. Stormwater BMP Operation, Maintenance, and Replacement Responsibility

1. Prior to building final, the property owner shall submit a signed certification (with signature, date & license number/seal) certifying that all postconstruction stormwater management/BMP facilities shown on the as-built drawings were inspected by the civil engineer (or by a qualified third party stormwater inspector hired by the permittee/owner) and have been constructed in accordance with the approved plans and specifications.

2. All on-site stormwater management facilities shall be operated and maintained in good condition and promptly repaired/replaced by the property owner(s), an owners' or homeowners' association or other legal entity approved by the City.

3. Any repairs or restoration/replacement and maintenance shall be in accordance with City-approved plans.

4. The property owner(s) shall develop a maintenance schedule for the life of any stormwater management facility and shall describe the maintenance to be completed, the time period for completion, and who shall perform the maintenance. This maintenance schedule shall be included with the approved Stormwater Runoff Management Plan.

H. Stormwater BMP Operation and Maintenance Agreement (SWBOMA):

1. Prior to the issuance of any building permit requiring stormwater management BMPs, the owner(s) of the site shall enter into a formal written Stormwater BMP Operation and Maintenance Agreement with the City. The City shall record this agreement, against the property or properties involved, with the County of Santa Clara and it shall be binding on all subsequent owners of land served by the storm water management BMPs. The City standard Stormwater BMP Operation and Maintenance Agreement will be provided by Land Development Engineering at building permit/improvement plan stage.

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2. The Stormwater BMP Operation and maintenance agreement shall require that the BMPs not be modified and BMP maintenance activities not alter the designed function of the facility from its original design unless approved by the city prior to the commencement of the proposed modification or maintenance activity.

3. The stormwater BMP operation and maintenance agreement shall provide that in the event that maintenance or repair is neglected, or the stormwater management facility becomes a danger to public health or safety, the city shall have the authority to perform maintenance and/or repair work and to recover the costs from the owner.

I. Stormwater BMP Inspection Responsibility

1. The property owner(s) shall be responsible for having all stormwater management facilities inspected for condition and function by a certified Qualified Stormwater Practitioner (QSP).

2. Unless otherwise required by the City Engineer or designee, stormwater facility inspections shall be done at least twice per year (April 15th and September 15th) by the QSP. Written records shall be kept of all inspections and shall include, at minimum, the following information:
a. Site address;
b. Date and time of inspection;
c. Name of the person conducting the inspection;
d. List of stormwater facilities inspected;
e. Condition of each stormwater facility inspected;
f. Description of any needed maintenance or repairs; and g. As applicable, the need for site re-inspection.

3. Upon completion of each inspection, an inspection report shall be submitted to Land Development Engineering and Environmental Services Department.

J. Records of Maintenance and Inspection Activities: On or before April 15th and September 15th of each year, the party responsible for the operation and maintenance of on-site stormwater management facilities under the BMP Operation and Maintenance Agreement shall provide the City Engineer or designee with records of all inspections, maintenance, and repairs.

K. Annual Certification of SWRMP: On or before September 30th of each year, a Registered Civil Engineer (RCE) shall provide written certification that the project’s stormwater quality design standards are properly maintained and functioning as required by the SWRMP.

BUILDING DIVISION
A. California Building Standards Code of Regulations: Project shall be designed to comply with the most current California Building Standards Codes as amended

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by the Morgan Hill Municipal Code Title 15.

B. Geological Hazard Area: Project is in a Geological Hazard Area (LIQUEFACTION) and shall comply with MHMC 18.70. Plan review by the City Geologist is required at time of Building Permit Application (additional time is required for review).

C. Compliance with Morgan Hill Municipal Code: Project shall comply with the Morgan Hill Municipal Code (MHMC) including but not limited to:

1. MHMC 15.65 Sustainable Building Regulations.

2. MHMC 18.72.040 C. Electric Vehicle Charging.

3. MHMC 15.40 Building Security

4. MHMC 15.38 Wage Theft Preventions

5. MHMC 18.148 Water Conservation

6. MHMC 15.63 Prohibition of Natural Gas Infrastructure in New Buildings (Applies to all Building Permit Applications Received on or after March 1, 2020)
D. An acoustical analysis report shall be submitted with the building permit documents showing interior and exterior noise mitigations for compliance to the MHMC, California Building Code and CALGreen Code.

FIRE DIVISION
A. Preliminary Review Only: The requirements and conditions stated in this review are preliminary and are intended to be used for the purposes of project planning.

An official Fire Department review of the project will be conducted upon receipt of a complete plan submittal application that clearly shows all intended grading, demolition, construction or building modifications.

B. Proposal limited to: Review of this Development proposal is limited to acceptability of site access as they pertain to fire department operations and shall not be construed as a substitute for formal plan review to determine compliance with adopted model codes. Prior to performing any work, the applicant shall make application to, and receive from, the Building Department all applicable construction permits.

C. Timing of Required Roadway Installations: Prior to the commencement of combustible construction, the required roadway installations, up through first lift of asphalt, shall be in place, inspected, and accepted by the City of Morgan Hill unless otherwise approved in writing by the Fire Marshal. Bulk combustible construction materials shall not be delivered to the construction site until installations are completed as stated above. During construction, emergency access roads shall be maintained clear and unimpeded. Issuance of building

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permits may be withheld until installations are completed. (CFC Chapter 14 as amended by MHMC 15.44.180)
D. Fire Hydrant Location Identifier: Prior to project final inspection, the general contractor shall ensure that an approved (“Blue Dot”) fire hydrant location identifier has been placed in the roadway, as directed by the fire department.

E. Timing of Required Water Supply Installations: Prior to the commencement of combustible construction, the required Fire Hydrant and Water Supply installations shall be in place, inspected, tested, and accepted by the Fire Department and the City of Morgan Hill, unless otherwise approved in writing by the Fire Marshal. Bulk construction materials may not be delivered to the construction site until installations are completed as stated above. Clearance for building permits may be held until installations are completed. (CFC Chapter 14 as amended by MHMC 15.44.180)
F. Fire Lane Marking Required: Provide marking for all roadways within the project. Markings shall be per fire department specifications. Installations shall also conform to Local Government Standards and the City of Morgan Hill Standard Details and Specifications 11-F. (CFC Section 503) G. Parking Along Roadways: The required width of fire access roadways shall not be obstructed in any manner. Parking shall not be allowed along roadways less than 28 feet in width. Parking will be allowed along one side of the street for roadways 28-35 feet in width. For roadways equal to or greater than 36 feet, parking will be allowed on both sides of the roadway. Roadway widths shall be measured face to face of curb. Parking spaces are based on an 8- foot-wide space. (CFC section 503)
H. Automatic Fire Sprinkler System Required: Buildings requiring automatic fire sprinkler system shall be equipped throughout with an approved automatic fire sprinkler system. The fire sprinkler system shall be hydraulically designed per National Fire Protection Association (NFPA) Standard #13. (CFC Chapter 9 as amended by MHMC 15.44.170)
I. Required Access to Buildings: Portions of the structure(s) are greater than 150 feet of travel distance along an accessible travel path from an approved fire apparatus access roadway or driveway. Provide an approved fire apparatus roadway/driveway with an approved turn-around OR provide an approved type residential fire sprinkler system throughout all portions of the building. (CFC section 503 as amended by MHMC 15.44.140) J. Private on-site Fire Service Mains and Hydrants: Installations shall conform to National Fire Protection Association Standard #24, and the City of Morgan Hill

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Standard Details and Specifications. Provide plan submittal to the City of Morgan Hill for review and approval prior to installation.

K. Fire Apparatus (Ladder Truck) Access Roads Required: Provide access roadways with a paved all-weather surface and a minimum unobstructed width of 26 feet, vertical clearance of 13 feet, 6 inches, minimum circulating turning radius of 36 feet outside and 23 feet inside, and a maximum slope of 15%.

Installations shall conform to the City of Morgan Hill Standard Details and Specifications 11-B.

HOUSING DIVISION
A. Inclusionary Housing Agreement: The developer shall execute and record an Inclusionary Affordable Housing Agreement with the City prior to issuance of a building permit. (MHMC 14.04.050)
B. Inclusionary Housing Development Standards: Inclusionary units shall be subject to the following development standards:

1. Location. Inclusionary units shall be distributed evenly throughout the project.

2. Lot Size. Lot size shall be at least the same size as the smallest lot of a market rate unit within the project;

3. Bedroom Count. Average bedroom count shall be the same as the average bedroom count in the market rate units in the project;

4. Exterior. Exterior trim entry door hardware, and finish to the same standard as the Market Rate

5. Minimum standards for equipment, fixtures, appliances, and finishes have been established for the Inclusionary units. All items installed by the developer shall be of good quality and in new condition. Good quality shall be deemed as entry level but generally not the lowest level of product offered for that application. All products shall offer durability, reliability and maintain a quality appearance and function that is standard to most other median priced homes in the area. The below listed items must be installed as a basic feature of each Inclusionary unit.

6. Minimum Interior standard finishes will be as follows a. All closets shall have doors
b. Interior doors to be raised panel type or same as market rate c. Door hardware to be brass finish or equivalent
d. Appliances shall be major brand name
e. Microwave with an exhaust vent shall be installed over the range f. Kitchen counters shall be white ceramic tile
g. Kitchen cabinets shall be stained wood with white melamine interiors
h. If installation of an Air Conditioner is a standard feature for market rate units, then it is a standard for the Inclusionary units.

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i. Basic alarm system to secure all accessible openings to the home j. Carpet in bedrooms, hallways, family rooms
k. Linoleum or tile entry, bathroom kitchens
l. Laminate flooring may substitute for carpet or linoleum m. Electric garage door opener
C. Timing of Construction: Inclusionary units shall be constructed concurrently with the construction of market -rate units. For the 93-unit project with a 15 percent inclusionary housing requirement (14 units), at least one inclusionary unit shall be constructed before or concurrently with every 7th market rate unit constructed.

The last market rate unit to be completed in the project shall not receive a certificate of occupancy until the last inclusionary unit has received a certificate of occupancy. The director may approve a modified schedule if the timing requirement will create unreasonable delays in the issuance of certificates of occupancy for market rate units.

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BLDG 16 BLDG 17
H STREET MONTEREY HIGHWAY BLDG 16 BLDG 17
H STREET MONTEREY HIGHWAY Copyright 2022 vanderToolen Associates. The drawings or written materials contained herein constitute the original and unpublished work of the landscape architect. Reproduction, use or alteration in any form is strictly prohibited without the written consent of vanderToolen Associates. L-1 Morgan Hill, California Project No. 04221 MORGAN HILL TOWNHOMES SCALE: 1" = 20'-0" 0' 10' 20' 40' vanderToolen Associates 700 Ygnacio Valley Road Suite 100 Walnut Creek, CA 94596 tel+ 925.274.1300 hhhvandertoolenco^ SCREENING TREES FOR BUILDING 16 & 17 CONCEPTUAL PHASE OCTOBER 2022 NORTH 1500 WILLOW PASS COURT CONCORD, CALIFORNIA 94520 (925)685-0110 8' X 2' 8' X 4' 10' X 4' 17' X 8' CARPINUS B. 'FRANS FONTAINE' HORNBEAM LAURUS 'SARATOGA' SARATOGA SWEET BAY LYONOTHAMNUS F. ASPLENIFOLIUS FERNLEAF CATALINA IRONWOOD QUERCUS RUBRA RED OAK 35' X 9' 25' X 15' 40' X 20' 70' X 30' 18' X 5' 15' X 8' 15' X 9' 32' X 14' 28' X 7' 23' X 12' 30' X 14' 45' X 20' SCREENING TREE GROWTH 10 YRS H X W BOTANICAL NAME SYMBOL COMMON NAME INSTALL H X W 5 YRS H X W MATURITY H X W MODERATE SLOW MODERATE FAST GROWTH RATE 24" BOX 24" BOX 24" BOX 48" BOX CONT. SIZE CANOPY GROWTH KEY GROWTH STAGE INSTALL 5 YEARS 10 YEARS MATURE COLOR CODE CARPINUS B. 'FRANS FONTAINE' LAURUS 'SARATOGA' LYONOTHAMNUS F. ASPLENIFOLIUS QUERCUS RUBRA TREE PLAN TREE GROWTH PLAN

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From:

Re:

Jennifer Carman, Community Development Director
Gina Paolini, Principal Planner
Don Larkin, City Attorney
City of Morgan Hill
Daniel R. Golub
Melanie Chaewsky
Holland & Knight, LLP
19380 Monterey Road Project
SD2021-0004/SR2021-0014/EA2021-0012
As you know, we represent DeNova Homes, Inc. (“DeNova” or “Applicant”) in connection with the 19380 Monterey Road Project (“Project”). The Project will bring 93 much-needed new homes to the City of Morgan Hill, including 14 below-market rate (“BMR”) units, which will contribute to the City meeting its Regional Housing Needs Allocation (“RHNA”) and complying with State Housing Element Law.

We and the Applicant both appreciate the City’s careful review and processing of the Project application, in particular the Council’s February 16, 2022 approval of a concession for the Project pursuant to the State Density Bonus Law (Gov. Code § 65915, et seq.) (“SDBL”), and the Planning Commission’s September 13, 2022 approval of a tentative map for the Project, through which both staff and the Planning Commission confirmed that the Project conforms to all applicable objective requirements of the City’s General Plan, subdivision ordinance, and zoning ordinance.

The purpose of this letter is to respond to Angelica Way Homeowners’ (the “Homeowners” or “Appellants”) Appeal Application dated September 23, 2022 (the “Appeal Letter”), through which the Appellants seek to overturn the Commission’s approval of the Project. As set forth below, the Appeal Letter fails to state any ground on which the Appeal could lawfully be granted.

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I. The Project is Consistent With All Objective General Plan, Zoning and Subdivision Standards, and Granting the Appeal Would Violate the Housing Accountability Act As set forth in our letter dated February 17, 2022, and as confirmed by staff and the Planning Commission, the Project is consistent with the City’s General Plan designation, all applicable General Plan policies, and all applicable zoning and subdivision ordinance provisions. Nothing in the Appeal Letter disputes this. As a result, it would be unlawful for the Appeal to be granted.

In an effort to address California’s housing supply and affordability crisis, California law has, for decades, required cities to adopt plans to promote adequate new housing development through laws such as the Housing Element Law. See generally California Renters Legal Advocacy and Education Fund v. San Mateo (2021) 68 Cal.App.5th 820, 833-35. Dissatisfied with the lack of housing that was actually produced after adoption of the Housing Element Law, the Legislature in 1982 added to the Housing Element Law the Housing Accountability Act (“HAA”), Gov.

Code § 65589.5, which was enacted to ensure that cities’ plans for housing actually lead to new housing production.

The HAA includes important protections for qualifying housing development projects that comply “with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete.” Gov. Code § 65589.5(j)(1). Objective is defined very narrowly to include only those standards that “involv[e] no personal or subjective judgment by a public official,” and which are “uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.” Gov.

Code § 65589.5(h)(8). Importantly, the law provides – and recent published case law specifically affirms – that a housing development project is “deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development . . . is consistent, compliant, or in conformity.” Gov.

Code § 65589.5(f)(4). Case law affirms that these and other standards in the HAA will not be applied with any deference to a local decision to deny housing; instead, the standard is “intentionally deferential to housing development.” California Renters, 68 Cal.App.5th at 845; see also id. at 842-44.

The Project is a “housing development project” protected by the HAA, because the Project is composed of only residential units. Gov. Code § 65590.5(h)(2)(A). The Project is compliant with the General Plan densities and meets all objective development standards of the General Plan and zoning code, with the exception of the SDBL concession the Council granted in February, which is disregarded for purposes of HAA consistency. The HAA provides that the “receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to . . . [the SDBL] shall not constitute a valid basis on which to find a proposed housing development project” inconsistent with code. Gov. Code § 65589.5(j)(3). The Council gave final approval of the SDBL concession in February, and that decision cannot now be challenged, but in any event the SDBL requires that concessions must be granted unless specific written findings are made

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and supported by substantial evidence. See Gov. Code § 65915(d)(1); see also Bankers Hill 150 v. City of San Diego (2022) 74 Cal.App.5th 755, 763 (“When a developer meets the requirements of the Density Bonus Law, a local government is obligated to permit increased building density, grant incentives, and waive any conflicting local development standards unless certain limited exceptions apply.”) There is no evidence in the record from which the narrow denial findings could have been made.

We understand that there is no dispute between the Applicant and City officials about whether the Project conforms with all applicable objective development standards, but we would note for the record that the Project’s conformance is established not just as a matter of fact but also as a matter of law. DeNova submitted a formal Project application on August 9, 2021, which was determined to be complete as of March 4, 2022. Therefore, the time has long since passed to contend that the Project fails to comply with any such standards, and therefore the Project is “deemed” to comply with such standards as a matter of law. See Gov. Code § 65589.5(j)(2)(A)(i); see also Ruegg & Ellsworth v. City of Berkeley (2021) 63 Cal.App.5th 277, 327-28, reh’g denied (May 19, 2021), review denied (July 28, 2021) (enforcing essentially identical deadline in SB 35 to identify inconsistencies with applicable objective standards; city “failed to comply with the statutory requirement” to provide timely written documentation of any conflict).

Even putting this aside, the Project’s compliance with objective development standards is confirmed in the Initial Study and the staff analysis of the Project. Again, nothing in the Appeal Letter contests the Project’s compliance with the City’s objective development standards. For developments such as the Project that comply with all applicable, objective standards, the HAA “imposes a substantial limitation on the government’s discretion to deny a permit.” North Pacifica, LLC v. City of Pacifica, (N.D. Cal. 2002) 234 F. Supp. 2d 1053, 1059, aff’d sub nom. (9th Cir. 2008) 526 F.3d 478 (internal quotation omitted); see also Gov. Code § 65589.5(f)(4).

The City lacks discretion to disapprove the Project unless the preponderance of evidence can support findings that the Project would have a significant, unavoidable, and quantifiable impact on public safety, based on “objective, identified written public health or safety standards, policies, or conditions.” Gov. Code § 65589.5(j)(1)(A); see also Gov. Code § 65589.5(h)(7). The Legislature has affirmed its expectation that these types of conditions will only “arise infrequently.” Gov. Code § 65589.5(a)(3). Nothing in the Appeal Letter provides any reason to believe that this is one of the “infrequent” conditions in which disapproving a code-compliant project would be lawful. The Appeal Letter cites no “quantifiable” public health or safety impact, nor any reason to believe the Project would violate any written public health or safety “standards, policies, or conditions.”
We note also that the Appellants’ objections are unlikely to be satisfied without at least substantially reducing the density of the Project, which would be equally unlawful. The HAA forbids not just project disapproval but also reducing a project’s density, or any other conditions that would “have the same effect or impact on the ability of the project to provide housing.” Gov. Code § 65589.5(h)(7).

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For the foregoing reasons, the City cannot grant the Appeal without exposing the City to substantial liability. A broad range of plaintiffs can sue to enforce the HAA, and the City would bear the burden of proof in any challenge. Gov. Code § 65589.5(k). As reformed in the 2017 legislative session, the HAA makes attorney’s fees and costs of suit presumptively available to prevailing plaintiffs, requires a minimum fine of $10,000 per housing unit for jurisdictions that fail to comply with the act within 60 days, and authorizes fines to be multiplied by five times if a court concludes that a local jurisdiction acted in bad faith when rejecting a housing development.

See generally Gov. Code § 65589.5(k), (l).

II. Approval of the Project Is Necessary to Comply with Housing Element Law As you know, the City’s draft Housing Element counts the Project site as a location the City is counting on to meet its RHNA targets and to ensure compliance with Housing Element Law.

See Draft City of Morgan Hill Housing Element 2023-2031 at p. H-2-3, designating the Project a “Pipeline Residential Project.” To comply with Housing Element Law, the City must demonstrate that the number of residential units projected for the Project Site in the Housing Element can be “realistically . . . accommodated” on that site. Gov. Code § 65583.2(c). For obvious reasons, granting the Appeal and disapproving the Project would imperil the City’s compliance with Housing Element Law because it would demonstrate that the City’s RHNA targets cannot be realistically accommodated on the Project Site. As cities especially in Southern California are now experiencing, the price for falling out of Housing Element Law compliance is very heavy, and includes the possibility of cities losing land use control over any projects submitted in the city that propose at least 20% BMR units. See Sawicki, “Developers capitalize on Housing Element fiasco to force 3,968 undeniable units into the city’s pipeline,” Santa Monica Daily Press (Oct. 12, 2022).1 For this additional reason, approval of the Project is strongly compelled by state housing law.

III. The Concerns Raised by Appellants Have Been Thoroughly Addressed in the City’s Thorough Analysis of the Project.

It is important to note that even though the City’s discretion to disapprove the Project is very limited as set forth supra, City staff and the Planning Commission nonetheless subjected the project to the type of careful review and analysis that would be required for any project over which the City has complete discretion. As staff and the Planning Commission both found, the Project is exempt from the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines, § 15183. Despite the project being exempt from CEQA, and not required to prepared an initial study or other CEQA compliance document, the City independently commissioned a Modified Initial Study/15183 Checklist (“Initial Study”) to analyze all of the Project’s impacts. (It is important to note that, although the City describes this document as an “Initial Study,” the document was prepared to substantiate the Project’s exemption from CEQA; the project is not being approved on the basis of a negative declaration.) Since the Initial Study also confirms that the Project, which is fully consistent with the General

1 Available at https://smdp.com/2022/10/12/new-15-story-project-automatically-approved-due-to-late-housingelement/.

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Plan, will have no significant impacts beyond those anticipated in the City’s previously certified General Plan EIR, the Project additionally qualifies for the exemption from CEQA provided by Pub. Res. Code § 21083.3.

The Appeal Letter does not raise any CEQA compliance issues as grounds for the Appeal, so the City’s decision to approve the Project cannot be challenged for this reason. See Pub. Res. Code § 21177. It has long been established, and recently re-affirmed, that when the HAA limits the scope of an agency’s discretion, the scope of permissible CEQA review is similarly constrained.

See Sequoyah Hills Homeowners Assn. v. City of Oakland (1993) 23 Cal.App.4th 704, 717; Tiburon Open Space Committee v. County of Marin (2022) 78 Cal.App.5th 700, 731 (“the scope of environmental review must be commensurate with an agency’s retained discretionary authority, including any limitations imposed by legal obligations”). “The exercise of discretionary powers for environmental protection shall be consistent with express or implied limitations provided by other laws” such as the HAA. Guidelines, § 15040(e).

In light of this, the Initial Study goes far beyond all legal requirements in ensuring any potential effects of the project are fully addressed. Notably, all of the concerns raised by the Appellants are addressed in the Initial Study. Appellants’ concerns are:

1. The new Town home balconies appear to stick out from the residents approximately 4'6" and they appear to extend over the 20' setback.

2. The plans are for the buildings to be 40' in height. There is or was a supplemental standard of chapter 18.92 about daylight plane (included below). Figure 18.90-2 shows diagram of 25' then a minimum of 45 degrees back for daylight.

3. The height of the building will possibly minimize our solar panels to our houses and impede on the solar we use to heat our pools.

4. The type and size of trees - we are worried about tree roots with our pools and decks, more shade over the pools, and landscape foliage coming over the fence.

Most of the wind comes from the direction of San Jose and will carry the debris into our yards and homes.

As shown in the Initial Study, “[t]he proposed project is consistent with the General Plan land use and zoning designations of the project site, and would comply with all applicable development standards required by the City including standards related to building height, lot area, setbacks, site planning, building design, and landscaping.” Initial Study, p. 29. The required setback along the property line shared with the Homeowners is 5 feet. See City of Morgan Hill Zoning Code, § 18.22.040, Table 18.22-3. In response to concerns about the impacts of the Project, DeNova homes designed the Project to have setbacks of 15-20 feet, and the proposed balconies are well within the 5 foot setback requirement. Although Appellants appear to prefer the Project be designed differently, the Project has been fully designed to comply with the City’s code.

5. With the buildings facing our yards, HVAC units will more than likely be in the front of the units. We will have noise directly in back of us from those units. The sound will reflect off the building and be amplified.

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The Initial Study thoroughly analyzes the potential for the Project to cause noise impacts, which were also accounted for in the City’s General Plan EIR. Initial Study, p. 85. Appellants, again, provide no grounds to dispute this technical analysis.

6. Traffic is already impacted coming into Morgan Hill. During school and work commute, traffic is unbearable. Peebles Avenue is already clogged during commute time and will have an increase number of drivers going to and from Ann Sobrato High School. There are children walking and riding bikes to school and will have to be even more cautious. The traffic impact studies need to be looked at as a whole community, not project by project. With this project, there are 4 projects in the works with totals as follows:
a. Monterey – Kerley 92 units
b. Monterey – Miner 249 units
c. Butterfield Village Apartment 389 units
d. Jarvis/Evergreen Village 125 units
Total 856 units
We are probably missing some on the north part of town, but this is a negative impact.

Due to recent legislation, automobile delay as measured by a “Level of Service” or “LOS” and other similar metrics, no longer constitutes a significant environmental effect as a matter of law.

See Pub. Res. Code § 21099(b)(2); CEQA Guidelines § 15064.3(a); see also Citizens for Positive Growth & Preservation v. City of Sacramento (2019) 43 Cal.App.5th 609, 626 (determining that LOS is no longer valid to measure traffic impacts). The Traffic Study completed by Hexagon Transportation Consultants, Inc. concluded that the Project did not exceed the Office of Planning and Research’s recommended impact threshold of 20.94 vehicle-miles traveled (“VMT”) per capita. The Project is in exactly the kind of infill location strongly favored by state law.

Despite the fact that transportation are now only measured in terms of VMT, the Traffic Study did in fact go further and additionally demonstrate that the Project would not cause significant impacts on traffic even as measured by the addition of cars to the City’s intersections. The Traffic Study shows that the intersections studied are “currently operating at better than the City’s LOS standard and the addition of project traffic would not result in the degradation of the study intersections’ levels of service during the AM and PM peak hours.” Initial Study, Appendix F, p. 13. Therefore, the Project’s projected trip generation would not result in an adverse effect on operations to intersections in the project area. Ibid.

7. Our city is continually tasked with restrictions on water and electricity. The developments are going to add to those restrictions.

The Initial Study shows that impacts on Utilities and Service Systems have been adequately addressed in the General Plan EIR. Initial Study, p. 127.

8. The buildings will block the air flow to our homes. We are very conscientious about use of natural resources and open our windows and doors to cool off our

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homes when possible. Our blinds/doors have to be open for this to work and that will be hard to do without our privacy and wind being blocked by the buildings.

Regarding Item 8, as stated above, the buildings meet all General Plan, zoning, and development standards. Initial Study, p. 29.

9. Light pollution from the buildings into our homes.

10. View of any sky is eliminated from our first and second floors and the sunsets that we enjoy. Monterey does not run North-South.

The Initial Study demonstrates that any impacts on aesthetics, including damage to scenic resources or light that that would affect day or nighttime views in the area were adequately addressed in the General Plan EIR. Initial Study, p. 25. On these and all other issues, the Appeal Letter provides no basis to contradict the findings in this technical analysis.

11. The other developments mentioned above, do not impede on residential homes, as this one does.

12. The potential for our home values to decrease is very real.

These not valid grounds for an appeal. The distinction the Appellants make between this project and other projects related to the effects the projects have on residential homes is not relevant for purposes of whether to grant the appeal, nor is the impact on nearby property values.

IV. Conclusion
The Applicant has worked diligently with City staff to plan a project that is not only consistent with the City’s General Plan, zoning, and all other applicable objective standards, but will also provide much needed affordable housing that will help the City achieve its RHNA goals and do its part to address the statewide housing crisis. The Project since its inception has been modified to accommodate the preferences of adjacent residents, including creating setbacks in exceedance of what is required. We appreciate City staff’s diligent work on the Project and urge the Commission to deny the appeal, as state law requires.

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YIMBY Law
57 Post St, Suite 908
San Francisco, CA 94104
[email protected]
10/19/2022
Morgan Hill City Council
17575 Peak Avenue
Morgan Hill, CA 95037
[email protected]
Via Email
Re: 19380 Monterey Road
726-42-001 and -002
Dear Morgan Hill City Council,
YIMBY Law is a 501(c)3 non-profit corporation, whose mission is to increase the accessibility and affordability of housing in California. YIMBY Law sues municipalities when they fail to comply with state housing laws, including the Housing Accountability Act (HAA). As you know, the City Council has an obligation to abide by all relevant state housing laws when evaluating the above captioned proposal, including the HAA. Should the City fail to follow the law, YIMBY Law will not hesitate to file suit to ensure that the law is enforced.

The project will consist of 93 multifamily units, with 14 units designated affordable for Moderate Income families. The project will also include amenities such as a dog park, picnic areas, passive recreation areas, and an exercise structure.

California Government Code § 65589.5, the Housing Accountability Act, prohibits localities from denying housing development projects that are compliant with the locality’s zoning ordinance or general plan at the time the application was deemed complete, unless the locality can make findings that the proposed housing development would be a threat to public health and safety.

The above captioned proposal is zoning compliant and general plan compliant, therefore, your local agency must approve the application, or else make findings to the effect that the proposed project would have an adverse impact on public health and safety, as described above. Should the City fail to comply with the law, YIMBY Law will not hesitate to take legal action to ensure that the law is enforced.

I am signing this letter both in my capacity as the Executive Director of YIMBY Law, and as a resident of California who is affected by the shortage of housing in our state.

Sincerely,
1

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Sonja Trauss
Executive Director
YIMBY Law
YIMBY Law, 57 Post Street, Suite 908, San Francisco, CA 94104 2

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14 CITY COUNCIL STAFF REPORT
MEETING DATE: November 16, 2022
PREPARED BY:

Tiffany Brown, Associate Planner
APPROVED BY: City Manager

APPROVE A ZONING AMENDMENT TO ADD THE PLANNED

DEVELOPMENT COMBINING DISTRICT AND APPROVE A DESIGN
PERMIT AMENDMENT TO ALLOW FOR AN ADDITIONAL LEVEL (5TH
FLOOR) FOR THE APPROVED GRANADA HOTEL ON A 1.09-ACRE
SITE (APN726-14-047)(ZA2022- 0004/AAE2022-0004/EA2022-0010

MONTEREY - GRANADA HOTEL)

RECOMMENDATION(S)

1. Open/Close Public Hearing;

2. Waive the first and second reading of the proposed ordinance;

3. Introduce a Zoning Amendment Ordinance approving a Planned Development Combining District; and

4. Adopt resolution approving a Design Permit Amendment for the addition of a 5th floor with minor facade modifications.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Economic Development
Guiding Documents
Economic Blueprint
Morgan Hill 2035 General Plan
Morgan Hill Downtown Specific Plan
REPORT NARRATIVE:

Summary
On October 11, 2022, the Planning Commission held a public hearing and approved the Planned Development (PD) and Design Permit Amendment to allow for additional height that will allow the construction of a partial 5th floor to accommodate additional hotel rooms at the approved Granada Hotel on Monterey Road in Downtown. The

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14 project had secured entitlements for a 60-room boutique hotel and construction was underway when the COVID 19 pandemic halted construction and decimated the lodging industry. The project, which completed all underground and utility work and two floors of foundation work, became a pop-up restaurant over the last two years. Staff recommends the approval of the proposed PD that provides for the requested deviation from the height standard and design permits and requires development performance standards. The proposed project continues to be in conformance with goals and policies established in the General Plan and the Downtown Specific Plan, and facilitates the construction of the hotel.

Background
The purchase, sale, and grant agreement by the Morgan Hill Oversight Board to Leal Vineyards Inc. includes a two phased project: 1) the rehabilitation of the Granada Theatre, and 2) the Market Hall/ Restaurant Boutique Hotel. The Granada Theatre was restored in 2016 and has been functioning as an entertainment venue. The boutique hotel secured entitlements and began construction in 2017. Like many other projects, the Granada hotel's construction halted during the COVID-19 pandemic. With the City's business recovery emergency order, building permits have been extended for all projects during the COVID-19 pandemic.

While Leal Vineyard Inc. is now prepared to move forward with completion of the hotel, another challenge has surfaced. The lodging industry has been one of the hardest industries hit by the pandemic. Today, hotels continue to operate at lower than normal occupancy levels and financing continues to be challenging for hotel projects, especially boutique hotels. The Economic Development Division has researched financing options to assist the Downtown boutique hotel and now understands hotel investors are seeking a minimum of 90-rooms to be considered operationally functional. The Conditional Use Permit and Design Permit approved in April of 2016 included a new 67,940 square foot, four-story building with restaurants, bars, banquet halls, retail, and hotel lobby with 60- guest rooms with valet services. The completion of the base of the hotel limits the design capabilities to expand the hotel in gaining more rooms. The owner/developer has secured a short-term bridge loan that will allow the construction of the hotel to resume if there is additional guest rooms added.

Planned Development
The proposed project request includes an addition of a partial fifth-story to gain 11 guest rooms, plus the conversion of the gym to two additional guest rooms (13-total). The partial fifth-story exceeds the Downtown height standards and levels/stories allowed within the Downtown Specific Plan. Deviations to the Standards within the Downtown Specific Plan (DTSP) require a Planned Development (PD). Therefore, the applicant has requested a PD to allow for enhanced flexibility in building design for the partial 5th floor, and an amendment to the Design Permit to allow for the minor facade modifications. The drafted PD would allow a maximum building height of 70-feet with exceptions for required rooftop equipment such as elevator shafts, stairwells etc. The attached PD also outlines performance standards that will need to be achieved in order to receive the additional height for the hotel. Those standards are as follows:

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14 Planned Development Performance Standards/ Penalties Preformance Standards:

1. The property owner/designee shall enter into a Memorandum of Understanding (MOU) agreement to memorialize the understanding of listed penalties that may be invoked if these performance standards are not achieved. The MOU will be reviewed and approved by the City Attorney and City Manager.

2. Property owner/designee is required to submit building permit application(s) and construction document(s) for the modifications and addition of the 5th floor by April 30, 2023.

3. The property owner/designee shall secure building permit(s) for the fifth level by September 30, 2023.

4. Construction to resume no later than August 31, 2023.

5. Property owner/designee to complete exterior facade before interior improvements, 24-months after construction resumes.

6. Parklets for the Granada Theater may continue operation only during nonconstruction hours. Parklet may resume to normal hours once construction of the exterior of the hotel has been completed and temporary fencing removed.

7. Non-essential hotel amenities (restaurant, bar, meeting rooms, etc.) should not be completed prior to the completion of hotel rooms.

8. Hotel rooms to be operational by December 31, 2025.

9. As part of the substantial public benefit, the property owner/designee will incorporate a valet station for drop-off/pick-up in a location convenient for all Downtown visitors in addition to the hotel guests. This will provide upfront access for all visitors/consumers Downtown. In addition, the property owner/designee will have a mural displayed on the rear of the building. The artwork for the mural will be approved by the Library, Culture, and Arts Commission.

Penalties:

10. If the property owner/designee doesn't resume construction by August 31, 2023, the City may revoke the maximum building height for a hotel.

11. MOU to identify agreed-upon liquidated damages for every day after December 31, 2025, or as amended by time extensions.

PD Substantial Public Bennifit
A PD requires a substantial public benefit as part of the project. Previous studies and parking updates presented to the Council show there is a sufficient amount of parking Downtown. As the Downtown continues to grow and be successful, finding available parking directly adjacent to or near stores/ restaurants may become more challenging.

The Downtown Specific Plan, the Morgan Hill Downtown Parking Conditions Study by Hexagon, and the Station Area Master Plan all reference parking strategies to best utilize the amount of parking available in key areas. One of the strategies recommended by all three documents was the utilization of a Downtown valet program.

The City has had discussions with Downtown owners/business owners and the Morgan Hill Downtown Association in the past to try and create a valet program, but it was not the right time.

To achieve additional parking options for the north end of Downtown, this project is

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14 proposing to incorporate a valet station for drop-off / pick-up at a location convenient for all Downtown visitors in addition to the hotel guests. This will provide upfront access for all visitors/consumers Downtown. In addition, as mentioned above, the developer will have a mural displayed on the rear of the building and that artwork will be approved by the Library, Culture, and Arts Commission.

Design Permit Amendment
The project was previously analyzed and found consistent with all applicable design standards. This request is for an amendment to that approved permit to allow for minor facade modifications to enhance activation and entries along Monterey Road. The circulation and building footprint remain unchanged. The facade continues to utilize a greyish-brown brick veneer as the base with a lighter smooth trowel stucco body on the upper floors. To reduce massing, the upper floors are slightly pushed back and introduce wood tiles and glass as architectural details with a light cream color for the stucco finish. The proposed 5th level is set back approximately 28-feet from Monterey Road and 1st Street, reducing the visibility of the partial fifth level from the public rightof-way.

Conclusion
The DTSP allows for deviations from standards with the adoption of a PD Combining District. The proposed PD supports the approved hotel use as permitted and deviates from the height standard by adding one additional level for hotels. The hotel development with additional height is consistent with policies established by the General Plan and DTSP in that a hotel supports tourism Downtown, provides new services and amenities, and meets all other design guidelines in the DTSP. Project consistency and compliance with findings of approval are summarized within the drafted Ordinance for the PD and in the Resolution for the Design Permit. The Planning Commission reviewed this proposal on October 11, 2022 and recommended City Council approval with no changes.

COMMUNITY ENGAGEMENT:

Inform
The proposed project was publicly noticed by mailing to property owners within 600-feet of the project and a 1/4 page ad in the newspaper for the minimum 10-day period.

ALTERNATIVE ACTIONS:

The Council may choose to deny the Planned Development and Design Permit Amendment. If the project proposal is not approved, the hotel has secured the Conditional Use Permit and Design Permit to continue with the original approval.

Due to the approved number of guestrooms for the boutique hotel and financing requirements, denial of the project could further delay finalization of construction for the hotel.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

In 2014, the City of Morgan Hill, as Successor Agency to the former Morgan Hill

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14 Redevelopment Agency, began the process of disposing of former Redevelopment assets, including the former Downtown Mall located at 17490 Monterey Road (APN:726-14-074). The process included an extensive Request for Qualifications/Proposals (RFQ/P) process consistent with the Long Range Property Management Plan and with the guidance of a community-based group comprised of the Morgan Hill Economic Development Corporation, as well as representatives of the Morgan Hill Chamber of Commerce and the Morgan Hill Downtown Association. The RFQ/P process ultimately resulted in the Purchase, Sale and Grant Agreement by the Morgan Hill Oversight Board to Leal Vineyards Inc. on September 3, 2015, for a twophased project: Phase 1, the rehabilitation of the Granada Theatre for use as an entertainment, special event and assembly venue with food and beverage service, and for Phase 2, for a Market Hall/Restaurant, Boutique Hotel.

In April of 2016, the Planning Commission reviewed and approved a Design Permit and a Conditional Use Permit for a new Downtown Hotel. The approvals included a new 67,940 square foot, four-story building with restaurants, bars, retail, banquet halls(s), and hotel lobby with guest rooms, services including valet parking and amenities. The Conditional Use Permit allows for an outdoor green event space, conference/meeting rooms, banquet rooms, and ancillary prep kitchens with one main kitchen to serve the hotel. The hotel also included a pool with outdoor living / lounge area. The project was approved by the City Council on May 18, 2016.

At the October 11, 2022 Planning Commission meeting, the Commission held a duly noticed public hearing where they considered public testimony along with staff's report, exhibits, drawings, and other materials. The Planning Commission recommended approval of the PD and the Design Permit Amendment to City Council with no changes by the follow vote: 6 ayes, 0 noes, 0 abstain, and 1 absent.

FISCAL AND RESOURCE IMPACT:

City development review functions are cost-recovery, with fees collected from applicants to cover the cost of services. These fees have been collected.

CEQA (California Environmental Quality Act):

An Addendum to the DTSP Master Environmental Impact Report (MEIR) has been prepared pursuant to Title 14, Section 15164 of the California Code of Regulations and City of Morgan Hill environmental standards (Attachment 5). The City of Morgan Hill, Development Services Department, has reviewed the proposed project and on the basis of the whole record before it, has determined that pursuant to CEQA Guidelines Section 15179, no substantial changes have occurred with respect to the circumstances under which the MEIR was certified, and there is no new available information, which was not known and could not have been known at the time that the MEIR was certified. The project, as identified in the Addendum, would not have a significant effect on the environment beyond that which was evaluated in the Downtown Specific Plan Master Environmental Impact Report. The document demonstrates that neither a subsequent EIR, nor a supplement to the MEIR is required given that the proposed modifications to the approved project would not trigger the applicable criteria set forth in the CEQA

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14 Guidelines Section 15162. The Addendum to the Downtown Specific Plan MEIR has been prepared pursuant to Title 14 Section 15164 of the California Code of Regulations and City of Morgan Hill environmental standards.

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ORDINANCE NO. ____, NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL CITY

COUNCIL APPROVING A ZONING MAP AMENDMENT

FOR A MIXED-USE DOWNTOWN PLANNED
DEVELOPMENT COMBINING DISTRICT ON A 1.09-ACRE

SITE LOCATED EAST OF MONTEREY ROAD BETWEEN
1ST STREET AND 2ND STREET (ZA2022-0004:

MONTEREY – LEAL GRANADA HOTEL) APN: 726-14-074

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

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

The planned development will yield a project that is consistent with the Downtown Specific Plan and General Plan City and Neighborhood Form Policies CNF-14.1, CNF-14.2, CNF-14.3, and CNF-14.7 and the Economic Development Element in that the Hotel supports the implementation of the Downtown Specific plan by providing a new use that includes specialty retail, event space, and other services on the first floor along Monterey street, and supports tourism downtown by adding short- term stay for visitors. The General Plan does not specify maximums for the floor area ratio or density on the project site. The proposed development for a hotel meets the floor area ratio as identified within the Downtown Specific Plan.

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

The planned development will yield a project that supports tourism by providing the convenience to stay and enjoy events within the Downtown. A hotel use will provide public interest and enhance general welfare by including ancillary uses that support Downtown as a focal point of the City. Projects will be built to comply with standard building code requirements and therefore will not be detrimental to public health, safety, and welfare.

SECTION 3. The affected site is physically suitable in terms of design, location, shape, size, and other characteristics to ensure that the permitted land uses and development will comply with the zoning code and general plan and contribute to the health, safety and welfare of the property, surrounding properties, and the community at large.

The property is an approximate 1.09-acre site that propose the development of a project that meet the design requirements and guidelines identified within the Downtown Specific Plan. This Planned Development allow for an increase in height up to five stories for a hotel use. Consistent with the Downtown Specific Plan, upper floor levels will be set back from the first and second floors which

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reduces the massing of the building and maintain the characteristics within the Downtown. As mentioned in Sections 1 and 2 above, the planned development will yield a project that contributes to the Downtown and the community at large and will not be detrimental to the health, safety, and welfare of the property and surrounding properties.

SECTION 4. The proposed development is consistent with the general plan, zoning code and any applicable specific plan or area plan adopted by the City council.

The Downtown Specific Plan allows for Planned Developments for properties to deviate from standards. The proposed Planned Development supports the approved hotel use as permitted and deviates from the height standard by adding one additional level for hotels. The Planned Development will yield a project consistent with the policies established by the General Plan and Downtown Specific Plan in that a Hotel supports tourism downtown, provides new services and amenities, and meets the Design Guidelines within the Specific Plan.

SECTION 5. The proposed development is superior to the development that could occur under the standards applicable in the existing zoning districts.

The Planned Development will allow for a use and design that supports the viability of a hotel downtown, improving the operational functionality of the hotel.

A hotel with ancillary services and amenities within downtown supports the Downtown Specific Plan and General Plan by promoting Downtown as a focal point and supports tourism that supports the economic growth of Downtown.

SECTION 6. The proposed project will provide a Substantial Public Benefit. The public benefit provided shall be of sufficient value as determined by the Planning Commission to justify deviation from the standards of the zoning district that currently applies to the property.

The Planning Commission recommended approval at a duly noticed public hearing on October 11, 2022 that included the review of the substantial public benefit. The project will incorporate a valet station for drop-off/pick-up in a location convenient for all downtown visitors in addition to the hotel guests. This will provide upfront access for all visitors/consumers downtown. In addition, the property owner/designee will have a mural displayed on the rear of the building.

The artwork for the mural will be approved by the Arts Commission.

SECTION 7. The site for the proposed development is adequate in size and shape to accommodate proposed land uses.

The site is a 1.09-acre site and shape of the site can accommodate a five- story hotel that meets the floor area ratio identified within the Downtown Specific Plan.

SECTION 8. Adequate transportation facilities, infrastructure, and public services exist or will be provided to serve the proposed development.

The site is located within the downtown fronting on Monterey road and 1st Street with valet services for guest accessed from 2nd Street. There are wet and dry utilities and infrastructure in the surrounding area that support the development of

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this site.

SECTION 9. The proposed development will not have a substantial adverse effect on surrounding property and will be compatible with the existing and planned land use character of the surrounding area.

The Planned Development will yield a project consistent with the Downtown Specific Plan and General Plan goals and policies. The increased height for a hotel will be compatible with existing and planned uses of the surrounding area in that the 5th level will be push back and central to the block which reduces massing and provides relief for future development of adjacent properties on the block.

SECTION 10. The City Council approves the Zoning Amendment application ZA2022-0004:

Monterey – Leal Granada Hotel (Granada Hotel Expansion) for a Planned Development as described in the attached Exhibit “A” and Exhibit “B” to this Ordinance.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A REGULAR MEETING OF THE CITY COUNCIL HELD ON THE 16th DAY OF NOVEMBER 2022, AND WAS

FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE XX DAY OF XX 2022, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

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 CERTIFICATE OF THE CITY CLERK 

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Ordinance No.

XXXX, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the XX day of XX 2022.

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

DATE: _______________________ _________________________________ MICHELLE BIGELOW, City Clerk

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EXHIBIT A

PLANNED DEVELOPMENT STANDARDS AND USES
This Planned Development (PD) pertains to the 1.09-acre lot located mid-block east of Monterey Road, between 1st Street and 2nd Street. To proceed with the development of a Hotel that exceeds 4-stories, or 55-feet in height, the Performance Standards set forth in Section A of this Exhibit shall be met. A one-time, 2-year administrative time extension to each performance standard outlined in Section A of this Exhibit may be granted by the Development Services Director if:
1) The property owner/designee proceeded in good faith and has exercised due diligence in efforts to achieve each performance standard in a timely manner; and 2) The property owner/designee provides proof to demonstrate that the performance standard milestone(s) could not be achieved due to circumstances outside of their control.

If additional time is needed for any performance standard listed in Section A of this Exhibit after a 2-year time extension was approved, additional time extensions may be reviewed and approved by the City Manager. If the Performance Standards cannot be achieved within the timeline or approved extended timelines, the underlying Downtown Specific Plan height standard of maximum 4-stories or 55 feet in height shall be reinstated.

SECTION A: PERFORMANCE STANDARDS
1a. The property owner/designee shall enter into a Memorandum of Understanding (MOU) agreement to memorialize the understanding of listed penalties that may be invoked if these performance standards are not achieved. The MOU will be reviewed and approved by the City Attorney and City Manager. 2a. Property owner/designee is required to submit building permit application(s) and construction document(s) for the modifications and addition of the 5th floor by April 30, 2023.
3a. Property owner/designee shall secure building permit(s) for the fifth level by September 30, 2023.
4a. Construction to resume no later than August 31, 2023. 5a. Property owner/designee to complete exterior facade before interior improvements, 24 months after construction resumes.
6a. Parklets for the Granada Theater may continue operation only during nonconstruction hours. Parklet may resume to normal hours once construction of the exterior of the hotel has been completed and temporary fencing removed.

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7a. Non-essential hotel amenities (restaurant, bar, meeting rooms, etc.) should not be completed prior to the completion of hotel rooms.
8a. Hotel rooms to be operational by December 31, 2025. 9a. As part of the substantial public benefit, the property owner/designee will incorporate a valet station for drop-off/pick-up in a location convenient for all downtown visitors in addition to the hotel guests. This will provide upfront access for all visitors/consumers downtown. In addition, the property owner/designee will have a mural displayed on the rear of the building. The artwork for the mural will be approved by the Library, Culture, and Arts Commission.

Penalties
10a. If the property owner/designee doesn’t resume construction by August 31, 2023, the City may revoke the maximum building height for a hotel as described in Table B.1.

11.a MOU to identify agreed-upon liquidated damages for every day after December 31, 2025, or as amended by time extensions.

SECTION B. DEVELOPMENT STANDARDS AND USES
The Standards set herein supersede the Downtown Specific Plan and any Combining District or Overlay District. Where this Planned Development is silent on standards, the underlying mixed-use Commercial Business District (CBD) as amended shall apply.

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Development Standards Table B.1
Standard
Maximum Building Coverage No Maximum
Floor Area Ratio 2.0 or 2.25 for sites over 22,000 square feet
Maximum Building Height 4 stories or 55-feet
Maximum Building Height for a Hotel 5 stories or 70 feet* Maximum Building Height
Exceptions
Add 15-feet to maximum height for required
rooftop equipment, elevator shafts, or
stairwells
Setbacks:

Front 0-feet minimum
10-feet maximum
Side 0-feet minimum
Rear 0 feet minimum
Ground Floor “Floor-to-ceiling clear”
height 14-feet for
Ground Floor building depth: retail
depth minimums as specified within
the Downtown Specific Plan
60-feet
Parking Refer to the Downtown Specific Plan
Parking Requirements as amended
Hotel Parking
No onsite parking required, drop-off and
valet parking for guests is required on or
off-site biased on demand
* Maximum Building Height reduced to 4 stories or 55-feet in height if Section A Performance Standards are not met.

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The following uses listed in Table B.2 are allowed within this PD by right. This PD defers to the Permitted Uses Table for the mixed-use Commercial Business District (CBD) and Ground Floor Overlay District within the Downtown Specific Plan as amended, where this PD table is silent. The Ground Floor Overlay district applies to the first floor within 60-feet from property line adjacent to Monterey Road and 80-feet at 1st and 2nd Street.

P = Permitted Use
Permitted Uses and Conditionally Permitted Uses Table B.2 Commercial /Service /Retail Uses
Commercial Recreation (3,000 sq.ft. or less) P
Commercial Service P
Food Service, takeout P
Hotel* P
Bar (ancillary to a hotel or restaurant) P
Convenience Market / Specialty Food Market (ancillary to a hotel) P Restaurant (beer & wine or full bar) P
Retail Store P
Personal Services P
*Hotel as defined in this PD includes hotel lobby, restaurants with option for full service bar, bars, and retail stores. It also allows conference rooms, banquet hall rooms, and service areas including prep kitchens that support those uses.

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Exhibit B
Zoning Map Amendment
Existing Zoning Designation – Commercial Business District (Mixed Use Downtown) with Ground Floor Overlay District.

Site Area 1.9 Acres APN: 726-14-074
PD
PD Proposed Zoning Designation – Commercial Business District (Mixed Use Downtown) with Ground Floor Overlay District and Planned Development
Site Area 1.9 Acres APN: 726-14-074

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RESOLUTION NO. XX-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING A DESIGN PERMIT
AMENDMENT (AAE2022-0004 AMENDING SR-16-01) TO

EXPAND THE APPROVED GRANADA HOTEL BY

ADDING A PARTIAL FIFTH-LEVEL WITH MINOR
BUILDING FAÇADE MODIFICATIONS AND SITE
IMPROVEMENTS ON THE 1.09 ACRE SITE LOCATED
EAST OF MONTEREY ROAD BETWEEN 1ST STREET AND
2 ND STREET AS IDENTIFIED BY ASSESSOR’S PARCEL
NUMBER 726-14-074.

WHEREAS, a Design Permit (SR-16-01) was reviewed for compliance with the Downtown Specific Plan design guidelines by Planning Commission at its regular meeting of April 26, 2016, at which time the Planning Commission approved application SR-16-01: Monterey— Leal; and
WHEREAS, an amendment request was submitted by Leal Vineyards, Inc. to amend the approved Design Permit to allow for a partial fifth level that will accommodate 11 additional guestrooms, convert the fitness amenity to add an additional two additional guestrooms on the third level and minor façade modifications and enhanced entrances along Monterey Street and 1st Street; and
WHEREAS, on October 11, 2022 the Planning Commission reviewed testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials provided and recommended approval of the Design Permit Amendment to City Council; and WHEREAS, the City Council has reviewed and considered the Initial Study and Addendum prepared for the Project; and
WHEREAS, the Addendum prepared or the project is incorporated, by this reference into the Resolution as if fully set forth herein; and
WHEREAS, the City of Morgan Hill, Development Services Department, has reviewed the proposed project and on the basis of the whole record before it, has determined that pursuant to CEQA Guidelines Section 15179, no substantial changes have occurred with respect to the circumstances under which the MEIR was certified, and there is no new available information, which was not known and could not have been known at the time that the MEIR was certified.

The project, as identified in the Addendum, would not have a significant effect on the environment beyond that which was evaluated in the Downtown Specific Plan Master Environmental Impact Report (MEIR). The document demonstrates that neither a subsequent EIR, nor a supplement to the MEIR is required given that the proposed modifications to the approved project would not trigger the applicable criteria set forth in the CEQA Guidelines Section 15162. The Addendum to

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the Downtown Specific Plan MEIR has been prepared pursuant to Title 14 Section 15164 of the California Code of Regulations and City of Morgan Hill environmental standards; and WHEREAS, the proposed project is consistent with the development assumptions in the Downtown Specific Plan. The proposed project would not result in any new or more significant cumulative impacts than the previously approved project (disclosed in the Specific Plan MEIR).

Mitigation measures adopted for the previously approved project where feasible and will be implemented by the proposed project; and
WHEREAS, testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials have been considered in the review process.

NOW, THEREFORE, THE MORGAN HILL CITY COUNCIL DOES RESOLVE AS FOLLOWS:

SECTION 1. The proposed project is consistent with the general plan and any applicable specific plan, area plan, or other design policies and regulations adopted by the City Council.

The partial fifth floor is pushed far back from Monterey Road and 2nd Street, central to the main building and mid-block. This reduces the massing of the structure and visibility of the fifth floor from the public right-of-way. The project is in conformance with General Plan Policies specifically, but not limited to CNF14.1, CNF-14.2, CNF-14.3, and CNF-14.7 and the Economic Development Element. The hotel development supports the implementation of the DTSP by providing a new use that includes specialty retail, event space, and other services on the first floor along Monterey Road, and supports tourism downtown by adding rooms for short-term stays for visitors.

SECTION 2. The proposed project complies with all applicable provisions of the zoning code and municipal code.

The amendment as proposed is consistent with the intent of the zoning code which is consistent with the DTSP requirements in that it meets the Design Guidelines by utilizing quality design and materials, introduces glass, wood tile, and metal for architectural detailing, and creatively utilizes reveals to create interest and private space for balconies.

SECTION 3. The proposed project substantially complies with all applicable design standards and guidelines contained in the Design Review Handbook.

The Design Guidelines within Chapter 5 of the DTSP supersede the regulations within the Design Review Handbook. However, the amendment as proposed substantially complies with the applicable design standards and guidelines outlined in the design review handbook in that the building utilizes alternate

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colors and materials to identify the base of the building from the top of the building, includes deep reveals for architectural interest and privacy for balconies, and maintains architectural details on all facades of the building.

SECTION 4. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).
the City of Morgan Hill, Development Services Department, has reviewed the proposed project and on the basis of the whole record before it, has determined that pursuant to CEQA Guidelines Section 15179, no substantial changes have occurred with respect to the circumstances under which the MEIR was certified, and there is no new available information, which was not known and could not have been known at the time that the MEIR was certified. The project, as identified in the Addendum, would not have a significant effect on the environment beyond that which was evaluated in the Downtown Specific Plan Master Environmental Impact Report (MEIR). The document demonstrates that neither a subsequent EIR, nor a supplement to the MEIR is required given that the proposed modifications to the approved project would not trigger the applicable criteria set forth in the CEQA Guidelines Section 15162. The Addendum to the Downtown Specific Plan MEIR has been prepared pursuant to Title 14 Section 15164 of the California Code of Regulations and City of Morgan Hill environmental standards.

SECTION 5. The proposed development will not be detrimental to the public health, safety, or welfare or materially injurious to the properties or improvements in the vicinity.

The redevelopment of the project site is part of the vision for both the General Plan and DTSP. The project will be detrimental to the public health as analyzed in the DTSP MEIR. The project and circulation were designed to city standards and therefore will not be detrimental to public safety or welfare. The project will comply with SWIPP and Building Code requirements, and therefore it will not be materially injurious to the properties or improvements in the vicinity.

SECTION 6. The proposed project complies with all applicable design review criteria in Subsection H of Section 18.108.040.

While the proposed amendment meets the intent of the design review criteria, the Design Guidelines within Chapter 5 of the DTSP supersede the regulations within the municipal code.

SECTION 7. Pursuant to the authority set forth under Chapter 5, Design Guidelines of the Downtown Specific Plan and adopted by Ordinance No. 1956, New Series, the City Council hereby finds the project to be in substantial conformance with those Design Guidelines and approves of the Design Permit for the hotel project.

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SECTION 8. The approved project shall be subject to the conditions as identified in the set of standard conditions attached hereto, as Exhibit "A", and by this reference incorporated herein.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on November 16, 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. XX-XX, adopted by the City Council at a regular meeting held on XX, 2022.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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EXHIBIT "A"

STANDARD CONDITIONS
APPLICATION: AAE2022-0004: Monterey – Granada Hotel Expansion

THE FOLLOWING ARE STANDARD CONDITIONS OF APPROVAL THAT MUST BE

MET PRIOR TO THE ISSUANCE OF BUILDING PERMITS AND/OR SITE DEVELOPMENT PERMITS EXCEPT AS MAY BE SPECIFIED IN THE CONDITIONS.

THE APPROVAL REQUIREMENTS INCLUDE THESE REQUIREMENTS AND ANY

SPECIAL CONDITIONS THAT ARE APPLIED THROUGH THE DEVELOPMENT APPROVAL PROCESS. APPLICANTS ARE REQUIRED TO SIGN THE

RESOLUTION FORM INDICATING THEY UNDERSTAND AND AGREE TO

IMPLEMENT THESE STANDARD CONDITIONS AND ANY SPECIAL CONDITIONS APPLIED TO THEIR PERMIT APPROVAL.

I. TIME LIMITS
The Design Review approval granted under this Resolution shall remain in effect for two years of approval date. Failure to obtain building permits within this term shall result in termination of approval unless an extension of time is granted with a showing of just cause prior to expiration date.

II. SITE DEVELOPMENT
A. ENCROACHMENT PERMITS: The owner of designee shall seek encroachment permits through the Department of Engineering Department for the work performed within the City’s right-of-way.

III. OTHER CONDITIONS
A. This Design Review approval is limited to the plan set on file for AAE2022-0004:

Monterey – Granada Hotel Expansion with the Community Development Department. The approved site and building plans must be in substantial conformance with these plans as determined by the Community Development Director.

B. The project shall incorporate a valet station for drop-off /pick-up in a location convenient for all downtown visitors in addition to the hotel guests. The location of the station shall be approved by the Development Services Director.

C. The project shall incorporate a mural to be displayed on the rear façade of the building. The artwork shall be reviewed and approved by the City Library, Culture, and Arts Commission.

D. DEFENSE AND INDEMNITY: As part of, and in connection, with this application to the City of Morgan Hill, Applicant agrees to defend, indemnify, and hold harmless the City of Morgan Hill, its officers, agents, employees, officials and

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Morgan Hill City Council
November 16, 2022