Morgan Hill City Council
January 25, 2023

April 2022 7 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
• Residential Detached Low (RDL): Residential Detached Low land use is designated for detached homes of which net density is more than 1 unit per acre but less than 4 units per acre. The proposed residential detached low development is comprised of 139 units, approximately 55.2 net acres. The majority of the proposed development is located along Cochrane Road and Half Road, and the existing land use consists of residential and open space land uses. This development is consistent with the land use density documented in the City’s 2035 GP.
• Residential Detached Medium (RDM): Similar to Residential Detached Low land use, residential detached medium land use refers to land use for detached homes with net density falling in the range of 4 - 7 units per acre. The proposed residential detached medium developments consist of 7 projects, 63 units, which are primarily located in the middle and the northwest corner of the City, covering approximately 12.0 net acres area.

The existing land use currently consists of open spaces. These developments are consistent with the land use density documented in the City’s 2035 GP. • Residential Attached Low (RAL): The residential attached low development is defined as detached or attached homes with net density within the range of 6 - 12 units per acre. The proposed RAL development consists of 556 units, approximately 40.2 acres, of attached homes, along both sides of Highway 101. The proposed RAL development is primarily comprised of 4 projects, The existing land use currently consists of open space, commercial, and residential land uses. These developments are consistent with the land use density documented in the City’s 2035 GP.
• Residential Attached Medium (RAM): Within the City limits, along the west side of Highway 101, between Cochrane Road and West Dunne Avenue, locate the proposed residential attached medium developments, which are primarily comprised of attached homes (16 - 24 units/acre). This development includes 5 proposed projects, 655 units on top of approximately 35.7 net acres area. The existing land use currently consists of open space and residential land uses. These developments are consistent with the land use density documented in the City’s 2035 GP.
• Residential Attached High (RAH): The 2023 HE Update contains 1 residential attached high project (Monterey-First Community Housing (Magnolias)), which is located between Monterey Road and Del Monte Avenue. This project is approximately 1.5 net acres, includes 66 proposed units. The existing land use currently consists of commercial buildings.

It should be noted that this development has a differing net density (42.9 units/acre) than the land use designation documented in the 2035 GP (Mixed Use Flex, 7 - 24 units/acre).

Therefore, this project is categorized as RAH land use (attached homes, 24 - 46 units/acre). The increase in land use net density is expected to result in higher water

April 2022 8 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
demand than the projection documented in the 2020 UWMP, which is discussed in detail in Section 2.
• Mixed Use (MU): Mixed use is designated for attached homes mixed with retail, office, services land use, and the net density shall be consistent with the City’s Down Town Specific Plan. The proposed mixed use development consists of 4 projects, including 117 units (approximately 6.4 net acres), along the west side of Monterey Street, within the downtown area. This development is consistent with the land use density documented in the City’s 2035 GP.
• Mixed Use Flex (MU-F): The 10 proposed mixed use flex is located at different sites within the City’s SOI boundary, including 750 units (approximately 42.9 net acres) was documented in the 2023 HE Sites. Note that, the proposed Monterey-Kerley (DeNova Homes) development site is documented as 4.6 acres on the City’s website (http://www.morgan-hill.ca.gov/2263/Monterey-Kerley-DeNova-Homes) and geodatabase provided by City staff, while it is listed as 1.05 acres in the 2023 HE Sites. This project site area of 4.6 acres has been confirmed by City staff. Therefore, in this report, 4.6 acres is used as the proposed DeNova Homes area, which will result in 46.5 net acres of MU-F land use in total.

Though the primary uses are similar to MU, the net density range is designated as 7 - 24 units per acre in the 2035 GP for Mixed Use Flex land use. This development is consistent with the land use density documented in the City’s 2035 GP.

1.4 Opportunity Sites
The proposed housing development opportunity sites are located inside the existing City limits as defined in the 2021 WSMP, as shown in Figure 1; while approximately 131.2 acres of development are within the Coyote Valley subarea and the rest approximately 70.8 acres of development located on top of Llagas groundwater subbasin. The existing land use of this Project consists of residential, commercial, and open space land uses. The City’s existing General Plan land use map designates the project sites as various land uses, including residential and mixed use types.

The proposed net density for the No.14 project (Monterey-First Community Housing (Magnolias)) site is higher than the density designated for this parcel in the 2035 GP, thus, the land use shall be Residential Attached High based on the proposed density. Besides, the area of DeNova Homes should be 4.6 acres rather than 1.05 acres as documented in the 2023 HE Sites. The proposed future land use inventory by groundwater subbasin summarized in Table 1 was developed from 2023 HE Opportunity Sites information provided by City staff, which is included in Appendix A.

April 2022 9 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill

1.5 Proposed Project Phasing
Law
This Project consists of future residential developments to meet the increasing housing needs within the City. A large portion of this Project’s proposed land uses (approximately 65.0%) locate on top of the Coyote Valley subarea, which is a part of the Santa Clara subbasin, and the rest is primarily above the Llagas subbasin.

The proposed future development of this Project was intentionally phased in order to adequately reflect the real-world construction process and estimate the demand more accurately. The 8-year development of this Project was phased in 5-year increments and the proposed developments were divided by different project sites and land use types.

It should be noted that the actual timing of construction for the proposed developments is subject to change, and might be different from this WSA. While the projected demands cover all construction work of the proposed developments, is anticipated to be completed within the 23- year planning horizon of this WSA.

2.0 PROJECTED WATER DEMANDS
Domestic water demand unit factors are coefficients commonly used in planning level analysis to estimate future average daily demands for areas with predetermined land uses. The unit factors are multiplied by the number of dwelling units or net acreages for residential categories, and by the net acreages for non-residential categories, to yield the average daily demand projections.

2.1 Water Use Demand Factors
There are several methods for developing the unit factors. The projected water demands in the currently adopted 2021 WSMP were based on land use demand factors. To ensure consistency with the City’s Master Plans, in this assessment, the unit water demand factors are intentionally kept to be consistent with the City’s WSMP. These demand factors account for the City’s continued water conservation efforts and future water conservation targets implemented by the City. The water demand unit factors are documented in Table 2. 10631 (f) …The urban water supplier shall include a detailed description of expected future water projects and programs…that the urban water supplier may implement to increase the amount of the water supply available to the urban water supplier in normal and single dry water years and for a period of drought lasting five consecutive water years.. The description shall identify specific projects and include a description of the increase in water supply that is expected to be available from each project. The description shall include an estimate with regard to the implementation timeline for each project or program.

Table 2 Average Day Water Demand Factors
Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
Land Use Category Average Day
Demand Factor(s) Unit
Residential Estate 560 gpd/net acre
Residential Detached Low 1,050 gpd/net acre
Residential Detached Medium 1,700 gpd/net acre
Residential Detached High 2,140 gpd/net acre
Residential Attached Low 1,900 gpd/net acre
Residential Attached Medium 2,300 gpd/net acre
Residential Attached High 3,130 gpd/net acre
Mixed Use 1,350 gpd/net acre
Mixed Use Flex 1,390 gpd/net acre
Notes:
1/18/2022

1. Source: City of Morgan Hill 2021 Water System Master Plan, Table 3.4.

April 2022 11 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill

2.2 Proposed Project Water Demand Projections
The development information provided by City staff identified the project site would develop as a combination of residential and mixed use land use types. It is assumed that the land use based on the received 2023 HE Sites will supersede the land use designations in 2035 GP. Additionally, the 2023 HE Sites will be used for estimating the effects on the water supply. The phased water demand projection results of this Project from initiation to the buildout are documented in Table 3 and documented below.

The master plans used for preparing this WSA have different planning horizons, which are depicted in Figure 3. It should be noted that the City will reach the buildout condition in the year 2038 in the 2021 WSMP, which was prepared based on the land use designation from 2035 GP, therefore the projected future demand after 2038 is anticipated to be consistent. For the purpose of this assessment, the future demands baseline is consistent with the 2020 UWMP, which was prepared based on the estimated population, to account for the City’s potential growth after 2038. • Existing Demand – From the City’s 2021 WSMP, the existing total demand within the city limits is documented as 6,329,210 gallons per day (gpd, or approximately 7,094 Acre Feet per Year (AFY) (Table 4).
• Future Water Demand – Santa Clara Subbasin (Coyote Subarea). The residential water demands of the proposed future development within the Coyote subarea at the end of the year 2031 are estimated at approximately 64.9 AFY for RDL, approximately 4.1 AFY for RDM, approximately 77.5 AFY for RAL, approximately 50.2 AFY for RAM. The water demand for the proposed future MU-F development within the Coyote subarea is estimated to be approximately 28.1 AFY. The total water demand of the Project’s future Coyote subarea development is estimated at 224.8 AFY in the buildout of the 2023 HE Update.
• Future Water Demand – Llagas Subbasin. The residential water demands of the proposed future development within the Llagas subbasin at the end of the Year 2031 are estimated at 2.9 AFY for RE, approximately 18.8 AFY for RDM, approximately 8.0 AFY for RAL, approximately 41.7 AFY for RAM, and approximately 5.4 AFY for RAH. The nonresidential water demands for the proposed future development within the Llagas subbasin are estimated to be 9.6 AFY for MU and approximately 44.3 AFY for MU-F. The total water demand of the Project’s future Llagas subbasin development is estimated at 130.7 AFY in the buildout of the 2023 HE Update. Table 4 identifies the net increase in demands, between the 2020 UWMP and this WSA, at 3 AFY. This net increase is resulting from a single proposed development, Monterey-First Community Housing (Magnolias, Map ID 14), which exceeded the previous general plan assumptions. • Future Water Demand – Other Developments. The water demands from future developments that are not included in the 2023 HE Update are calculated based on the

April 2022 12 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
total projected future water demands documented in the City’s 2020 UWMP subtracting the estimated future demand from the Project. The computed results are summarized in Table 4.

3.0 PROJECTED WATER SUPPLY
This section characterizes the intended water supply that will be used to serve the estimated water demands as detailed in Section 2.

3.1 Groundwater Basin
Law
The City is located above two subbasins, the Santa Clara subbasin of the Santa Clara Valley Groundwater Basin (Basin 2-009) and Llagas subbasin of the Gilroy - Hollister Groundwater Basin (Basin 3-003), and is depicted in Figure 1. Both groundwater basins have been identified by DWR as “high” priority basins. The Santa Clara subbasin is delineated into two subareas, the Santa Clara Plain and Coyote Valley, by the Santa Clara Valley Water District, the Groundwater Sustainability Agency (GSA) of Santa Clara, and Llagas subbasins. A majority of the existing City limits are within the Llagas subbasin and the northwest part is located above the Coyote Valley subarea. The Santa Clara Valley Water District (Valley Water) has updated its 2021 GMP, which also satisfies the objectives of the Sustainable Groundwater Management Act (SGMA). Therefore, Valley Water’s 2021 GMP serves as an alternative plan to the required Groundwater Sustainability Plan (GSP).

According to Valley Water’s 2020 RUWMP, local groundwater resources make up the foundation of Santa Clara County’s water supply. The groundwater is pumped from the subbasins by retail water suppliers, agricultural users, and private well owners to support municipal, industrial, agricultural, and domestic uses. Although most of the groundwater pumped is a result of Valley Water managed recharge programs, the subbasins are also recharged by the infiltration of rainfall and natural seepage through local creeks and streams. In addition, the groundwater subbasins serve as an extensive conveyance network, allowing water to move from the recharge areas to individual groundwater wells. The groundwater subbasins provide some natural filtration of surface water as it flows through the soil and rock. Unlike surface water, most groundwater in the county can be served by water retailers without additional treatment beyond disinfection. Lastly, the groundwater subbasins provide water storage, allowing water to be carried over from the wet season to the dry season and even from wet years to dry years. 10631. (b)(4) If groundwater is identified as an existing or planned source of water available to the supplier, all of the following information shall be included in the plan:
(B) A description of any groundwater basin or basins from which the urban water supplier pumps groundwater.

Figure 3 Planning Horizons Comparison
Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
20202021202220232024202520262027202820292030203120322033203420352036203720382039204020412042204320442045 2020 Urban Water Management Plan
2021 Water System Master Plan
2023 - 2031 Housing Element Update
Water Supply Assessment for 2023 HE Update
Notes:

1. Source: City of Morgan Hill 2020 Urban Water Management Plan.

2. Source: City of Morgan Hill 2021 Water System Master Plan.

3. Source: Ongoing City of Morgan Hill 2023 - 2031 Housing Element Update, which is in process while preparing this Water Supply Assessment.

Planning Horizons
3/8/2022
Planning Documents
2020 UWMP1
2021 WSMP2
2023 HE Update3
This WSA

Table 3 Future Housing Development and Projected Water Demand Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
(net acre) (gpd/ac) (AFY) (AFY) (AFY) (AFY) (AFY)
Santa Clara Subbasin (Coyote)
Tilton-Lee Schmidt 13 0.78 1050 0.9
Campoli-Squires 15 0.74 1700 1.4
Sanchez-Brewer 15 0.24 1700 0.5
Old Monterey - Appletree (Kelly Vo) 15 1.13 1700 2.2
Monterey-Minor (Jemcor) 9 7.52 1900 16.0
Monterey-City Ventures 7 6.69 1390 10.4
Jarvis-MH Apartments (Braddock &
Logan) 8 19.5 2300 50.2
Cochrane - Toll Brothers 12 54.42 1050 64.0
Half-Dividend (Crosswinds) 11 28.88 1900 61.5
Monterey-Lucky Shing Manzinita Park 1 5.83 1390 9.1
Monterey-Kerley (DeNova Homes) 10 4.6 1390 7.2
No Project 10 0.9 1390 1.4
Subtotal (Coyote) 20.9 195.2 8.6 0.0 0.0
Cumulative (Coyote) 20.9 216.1 224.7 224.7 224.7
Llagas Subbasin
Monterey-First Community Housing
(Magnolias) 14 1.54 3130 5.4
Llagas-Strolata Properties (Silvas) 19 4.6 560 2.9
Depot-Latala (Hale Lumber) 5 2.05 1350 3.1
Monterey-Morgan Hill Senior Housing 17 1.89 1390 2.9
Walnut Grove- Newland Homes
(SiliconSage) 3 1.61 1700 3.1
Dakota-Dunne 4 1.22 1700 2.3
Diana- Mana Hanalei 4 3.65 1700 6.9
Spring-Ginacola 16 2.78 1900 5.9
Tennant-Osito Holdings 21 0.99 1900 2.1
E. Dunne-Young (Andalusia) 2 2.33 2300 6.0
Watsonville-Hordness (Crossings at
Monterey/Royal Oaks Village) 20 8.19 1390 12.8
Lillian Commons/Rosewood 22 9.48 1390 14.8
Edes-Alcini (TTLC Morgan Hill) 18 1.1 1390 1.7
Red Jasper 17 2.93 1390 4.6
No Project 2 2.3 2300 5.9
No Project 22 5.22 2300 13.4
No Project 22 6.35 2300 16.4
No Project 6 2.52 1350 3.8
No Project 6 0.87 1350 1.3
No Project 6 0.91 1350 1.4
No Project 2 4.84 1390 7.5
No Project 3 3.4 1700 6.5
Subtotal (Llagas) 40.7 73.3 16.7 0.0 0.0
Cumulative (Llagas) 40.7 114.0 130.7 130.7 130.7
Total (City Wide) 61.6 268.5 25.3 0.0 0.0
Cumulative (City Wide) 61.6 330.1 355.4 355.4 355.4
2/24/2022
Note:

1. Proposed 2023-2031 housing elements information received from City staff on 1/7/2022.

Area Project Name Map ID
Unit
Factor
Phased Demand Projection
2025 2030 2035 2040 2045

Table 4 Comparison of Future Water Demand Projections
Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
2025 2030 2035 2040 2045
(AFY) (AFY) (AFY) (AFY) (AFY)
8,671 9,481 10,123 10,808 11,472
8,671 9,481 10,123 10,529 10,529
7,094 7,094 7,094 7,094 7,094

56.2 324.7 350.0 350.0 350.0

5.4 5.4 5.4 5.4 5.4

61.6 330.1 355.4 355.4 355.4
1,518 2,060 2,677 3,362 4,026
8,674 9,484 10,126 10,811 11,475

3.0 3.0 3.0 3.0 3.0
Notes:
2/28/2022

1. Source: City of Morgan Hill 2020 Urban Water Management Plan, Table 4-3.

2. Future projected demands from 2021 WSMP are for information purpose only.

3. 2021 WSMP's buildout conditions was set as Year 2038. After Year 2038, the demands remain the same.

4. Source: City of Morgan Hill 2021 Water System Master Plan, Table 5.2.

5. Source: City of Morgan Hill 2021 Water System Master Plan, Table 5.2.

6. Demand for other developments = Future Demands (UWMP) - Existing Demand (WSMP) - Project Demands from 2023 HE Update (assuming all projects consistent with 2035 GP land use designation) Other Future Developments6
Subtotal
Demand Increased from
UWMP Projection
Proposed Housing Elements
Project consistent with GP
Project inconsistent with GP
2021 Water System Master Plan2
2021 WSMP3,4
2020 UWMP1
2022 Water Supply Assessment (This Report)
Existing System5
Projected Future Water Demand
2020 Urban Water Management Plan

April 2022 16 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
The Llagas subbasin and the Coyote Valley subarea are monitored and addressed by Valley Water. The January 2021 Groundwater Condition Report from Valley Water notes that groundwater levels were about the same as the 5-year average in the Coyote Valley subarea but about 13 feet lower than the 5-year average in the Llagas subbasin. Additionally, groundwater pumping for 2020 was above the 5-year average for both subbasins. However, groundwater recharging for 2020 was below the 5-year average for both subbasins.

3.2 Water Rights
Examples of legal factors that could impact the supply reliability of a water distribution system include pumping limitations in adjudicated groundwater basins and surface water contracts.

Historically, groundwater has been the sole source of water supply within the City, and there are no new sources of supply currently planned. Groundwater is extracted from the Coyote Valley subarea of Santa Clara Valley Groundwater Basin and Llagas subbasin of the Gilroy-Hollister Groundwater Basin. These groundwater basins and subbasins are not adjudicated basins and no current legal factors are expected to limit the availability of supply.

According to the City’s 2021 WSMP, sixteen groundwater wells serve as the domestic water source of supply. Based on the locations of the existing groundwater wells, it is assumed that currently the City is supplied by groundwater from both the Coyote subarea and Llagas subbasin.

3.3 Water Supply Reliability
Law
There are two aspects of supply reliability to be considered. The first relates to immediate service needs and is primarily a function of the availability and adequacy of the supply facilities. This aspect is considered for emergency reliability. The second aspect is climate-related and involves the availability of water during mild or severe drought periods. Due to no non-potable water demand projected from the City’s 2023 HE Update, only groundwater supply will be discussed in this WSA.

3.3.1 Groundwater Supply Facilities
The City currently uses local groundwater as its sole source of potable water supply. Water supply for the municipal water system is extracted from underground aquifers via sixteen existing groundwater wells located throughout the City.
10631 (b) Identify and quantify, to the extent practicable, the existing and planned sources of water available to the supplier over the same five-year increments described in subdivision 10631(a).
(4) (Provide a) detailed description and analysis of the amount and location of groundwater that is projected to be pumped by the urban water supplier. The description and analysis shall be based on information that is reasonable available, including, but not limited to, historic use records.

April 2022 17 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
The City’s 2021 WSMP recommends the construction of six future groundwater wells to meet supply requirements as demand increases at the end of buildout (the year 2038). The City’s storage facilities also enhance long-term reliability. These facilities provide emergency storage sufficient to handle the service area needs during power outages or other emergencies. Adding supply and distribution system enhancements will also add reliability through redundancy. This WSA assumes the supply facilities will be improved and constructed as recommended in the City’s 2021 WSMP.

3.3.2 Subbasins Sustainable Yield
Law
The 2021 GMP describes historical levels within the Santa Clara subbasin, which includes the Santa Clara Plain and Coyote Valley subareas, as generally consistent. Due to continuous groundwater monitoring and recharge in both subareas, groundwater levels have historically been consistent and shown a quick recovery after the 2012 - 2016 statewide drought. However, The January 2021 Groundwater Condition Report from Valley Water notes that the groundwater levels in Llagas subbasin were about 13 feet lower than the 5-year average in the Llagas subbasin.

Additionally, groundwater levels in the Llagas subbasin and the Coyote Valley subarea are highly dependent on rainfall levels, which produce fluctuations in water levels during years of high or low rainfall. Inconsistent water levels due to drought have the potential to impact the supply available to the City.

SGMA defines the sustainable yield as the maximum quantity of water, calculated over a base period representative of long-term conditions in the basin and including any temporary surplus, that can be withdrawn annually from a groundwater supply without causing an undesirable result.

However, Valley Water does not rely on the estimated maximum water production value for longterm water supply planning due to the particular characteristics of the subbasins they are managing.

Instead of providing the sustainable yield of each subbasin, Valley Water implements both shortterm and long-term groundwater managements to maintain sustainable conditions of subbasins, such as recommending short-term water use reduction in accordance with the Valley Water’s Water Shortage Contingency Plan (WSCP), annual evaluations of groundwater storage and water supply risks, recharge of imported water and in-lieu recharge activities.

The total of natural groundwater recharge, local surface water, Valley Water Central Valley Project (CVP) deliveries, and recycled water supply excluding the wastewater treatment plant (WWTP) 10631 (b)(1) A detailed discussion of anticipated supply availability under a normal water year, single dry year, and droughts lasting at least five years, as well as more frequent and severe periods of drought, as described in the drought risk assessment. For each source of water supply, consider any information pertinent to the reliability analysis conducted pursuant to Section 10635, including changes in supply due to climate change.

April 2022 18 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
utility water is regarded as the available supply for the consumers within the area. The projected future supply data of individual subbasins beneath the Project’s proposed developments are provided by City staff and Valley Water staff, the results are summarized in Table 5.A and 5.B and briefly described as follows:
• Llagas Subbasin: Approximately 36% of the proposed future housing development is located on top of the Llagas subbasin. The projected annual natural groundwater recharge to Llagas subbasin is approximately 22,478 AFY from 2025 to 2045, per modeling data provided by Valley Water staff. The available supplies of the Llagas subbasin are projected to be 47,319 AFY, 47,580 AFY, 48,373 AFY, 48,188 AFY, and 48,342 AFY in the year 2025, 2030, 2035, 2040, and 2045, which are summarized in Table 5.A. • Coyote Valley Subarea: On top of this subarea has approximately 127.68 acres of proposed future housing development. The projected available supply of the Coyote Valley subarea in the year 2025, 2030, 2035, 2040, and 2045 are approximately 12,465 AFY, 13,162 AFY, 13,764 AFY, 14,313 AFY, and 14,650 AFY, respectively, per modeling data provided by Valley Water staff, as documented in Table 5.B.

4.0 SUPPLY SUFFICIENCY ANALYSIS
Law
Pursuant to California Water Code § 10910, the water supply assessment for the project shall include a discussion with regard to whether the total projected water supplies available during normal, single dry, and multiple dry water years during a 23-year projection will meet the projected water demand associated with the proposed Project.

In this section, a detailed analysis of the water supply and demand comparison will be provided to determine the groundwater supply sufficiency within the Project’s proposed future developments, assuming the DeNova Homes project site is 4.6 acres and the rest of the Project develops as the 2023 HE Sites received from City staff.

Based on the data of the historical water use and supply data under different conditions prepared by Valley Water staff, and the City’s 2020 UWMP prepared by Akel Engineering Group, the supply projections for the 2023 HE Update in this WSA were calculated by adding up the projected 10635 (a) Every urban water supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and multiple dry water years. The water service reliability assessment shall be based upon the information compiled pursuant to Section 10631, including available data from state, regional or local agency population projections within the service area of the urban water supplier.

April 2022 19 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
available supplies within each subbasin (subarea) under different year types extracted from the South County Supply Document, as documented in Tables 5.A, 5.B, 6.A, 6.B, 7.A, 7.B. • Normal Year: The normal year is a year that represents the median runoff levels from precipitation, as well as the same general pattern of runoff. The supply quantities would be similar to historical average supplies. Within the Llagas subarea, the projected available supply is estimated at 47,319 AFY, 47,580 AFY, 48,373 AFY, 48,188 AFY, and 48,342 AFY in the year 2025, 2030, 2035, 2040, and 2045. The projected total water demand of the Project is estimated as 131 AFY, which is accounted for a projected subbasin-wide demand of 47,372 AFY, in 2045 under normal year conditions, which are documented in Table 5.A. Within the Llagas subbasin, the available water supply is expected to be able to meet the projected future water demand during normal years. Similarly, in the Coyote Valley subarea, the available water supplies are estimated as 12,465 AFY, 13,162 AFY, 13,764 AFY, 14,313 AFY, and 14,650 AFY, for every five years from 2025 to 2045. The projected water demand of the Project and subarea-wide demand are estimated as 225 AFY and 13,025 AFY, respectively, as documented in Table 5.B. From the results, the subarea’s future demand could be satisfied by the subarea-wide available supply during normal years.
• Single-Dry Year: The single dry year is defined as the individual year with the lowest usable water supply and slightly higher water demands. From the City’s 2020 UWMP, 1977 is the single dry year used for analysis. Within the Llagas subbasin, the projected available supply is estimated at 36,424 AFY, the projected water demand of the Project is estimated as 131 AFY, which is accounted for a total demand of 47,372 AFY, in 2045 under single dry year conditions, which are documented in Table 6.A. Similarly, for the Coyote Valley subarea, the available water supply, water demand of the Project, and total projected demand in the year 2045 are estimated as 14,442 AFY, 225 AFY, and 13,025 AFY, respectively, as documented in Table 6.B. For both subbasins, due to potential water supply reductions, the projected water demand may exceed the available supply amount for some single dry years during the planning period.

Pursuant to Valley Water’s 2020 RUWMP, Valley Water would store excess wet year supplies and draw on these reserve supplies during the dry year(s). And in the City’s 2020 UWMP, water shortage levels shall be declared based on the water supply conditions (Appendix B) and implement water usage reduction actions pursuant to the Water Shortage Contingency Plan (Appendix C) to promote water conservation. In this way, the limited water supply may be sufficient to meet the reduced water demand. • Multiple Dry Years: Similar to single-dry year, multiple dry years is defined as the five consecutive years with the lowest usable water supply and slightly higher water demands, which are documented as the year 1988, 1989, 1990, 1991, 1992 in the City’s 2020 UWMP. The projected water supply and demands are summarized in Table 7.A and Table

7.B.

Table 5.A Normal Year Supply and Demand Comparison (Llagas Subbasin) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
2025 2030 2035 2040 2045
(AFY) (AFY) (AFY) (AFY) (AFY)
Natural Groundwater Recharge 22,478 22,478 22,478 22,478 22,478 Local Surface Water 10,251 13,408 14,597 14,832 15,199
Valley Water CVP Deliveries 12,918 9,626 8,834 8,415 8,201 Recycled Water Supply2 1,673 2,069 2,464 2,464 2,464
Recycled Water 2, 3
(WWTP Utility Water) 1,224 1,228 1,232 1,232 1,232
Total Supplies without WWTP Utility Water 47,319 47,580 48,373 48,188 48,342 Total Supplies with WWTP Utility Water 48,543 48,808 49,605 49,420 49,574 City of Gilroy4 8,646 9,314 10,034 10,809 11,645
City of Morgan Hill (domestic)5,7 6,301 (+3) 6,890 (+3) 7,357 (+3) 7,855 (+3) 8,337 (+3) Other Users6 32,016 30,671 29,951 28,531 27,387
Total Demands 46,966 46,878 47,345 47,198 47,372
Difference (Supply - Demand)7 353 (-3) 702 (-3) 1028 (-3) 99 (-3) 970 (-3) Percent of Total Supply7 99%
(+0.001%)
99%
(+0.001%)
98%
(+0.001%)
98%
(+0.001%)
98%
(+0.001%)
Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021.

2. Source: 2015 South County Recycled Water Master Plan Update, Table 3-10.

3. Recycled water use internally at WWTP facility is not considered as a reportable supply/demand of recycled water.

Therefore, it was excluded from Supply vs Demand Comparison.

4. Demand consistent with City of Gilroy draft 2020 UWMP.

5. City of Morgan Hill demand excludes Butterfield well and Boys Ranch wells, which are located in the Coyote Valley subarea.

6. Demand for other users calculated from documents received from SCVWD staff August 5, 2021.

7. Values in parentheses represent the estimated impact from the proposed Magnolias development (2023-2031 HE Update), compared to the 2020 UWMP.

Projected Water Supply of the Llagas Subbasin1
Projected Average Annual Water Demand
Supply vs Demand Comparison

Table 5.B Normal Year Supply and Demand Comparison (Coyote Subarea) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
2025 2030 2035 2040 2045
(AFY) (AFY) (AFY) (AFY) (AFY)
Projected Water Supply of the Coyote Valley Subarea1
Natural Groundwater Recharge 2,301 2,304 2,304 2,304 2,304 Local Surface Water 5,167 6,481 6,495 6,503 6,494
Valley Water CVP Deliveries 4,996 4,377 4,965 5,506 5,852 Total Supplies 12,465 13,162 13,764 14,313 14,650
Projected Average Annual Water Demand
City of Morgan Hill (domestic)2 2,370 2,591 2,767 2,954 3,136 Other Users3 8,752 8,872 9,340 9,724 9,889
Total Demands 11,122 11,463 12,107 12,678 13,025
Supply vs Demand Comparison
Difference (Supply - Demand) 1,343 1,699 1,657 1,635 1,625 Percent of Total Supply 89% 87% 88% 89% 89%
Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021.

2. City of Morgan Hill demand includes pumping from Butterfield well and Boys Ranch wells, which are located in the Coyote Valley subarea.

3. Demand for other users calculated from documents received from SCVWD staff August 5, 2021.

Table 6.A Single Dry Year Supply and Demand Comparison (Llagas Subbasin) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
2025 2030 2035 2040 2045
(AFY) (AFY) (AFY) (AFY) (AFY)
Natural Groundwater Recharge 18,550 18,550 18,550 18,550 18,550 Local Surface Water 1,766 5,612 5,616 5,616 5,615
Valley Water CVP Deliveries 11,077 10,434 10,430 10,414 9,796 Recycled Water Supply2 1,673 2,069 2,464 2,464 2,464
Recycled Water 2, 3
(WWTP Utility Water) 1,224 1,228 1,232 1,232 1,232
Total Supplies without WWTP Utility Water 33,066 36,665 37,060 37,044 36,424 Total Supplies with WWTP Utility Water 34,290 37,893 38,292 38,276 37,656 City of Gilroy4 8,646 9,314 10,034 10,809 11,645
City of Morgan Hill (domestic)5 6,304 6,893 7,360 7,858 8,340 City of Morgan Hill (domestic)5,7 6,301 (+3) 6,890 (+3) 7,357 (+3) 7,855 (+3) 8,337 (+3) Other Users6 32,016 30,671 29,951 28,531 27,387
Total Demands 46,966 46,878 47,345 47,198 47,372
Difference (Supply - Demand) -13,900 (-3) -12,213 (+3) -10.285 (-3) -10,154 (-3) -10,948 (-3) Percent of Total Supply 142%
(+0.009%)
128%
(+0.008%)
128%
(+0.008%)
127%
(+0.011%)
130%
(+0.008%)
Water Shortage Level Level 3 Level 3 Level 3 Level 3 Level 3 WSCP - use reduction saving benefit 14,090 14,063 14,204 14,159 14,212 Revised Demand 32,876 32,815 33,142 33,039 33,160
Difference (Supply - Demand) 189 3,850 3,918 4,005 3,264 Percent of Total Supply 99% 89% 89% 89% 91%
Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021.

2. Source: 2015 South County Recycled Water Master Plan Update, Table 3-10.

3. Recycled water use internally at WWTP facility is not considered as a reportable supply/demand of recycled water.

Therefore, it was excluded from Supply vs Demand Comparison.

4. Demand consistent with City of Gilroy draft 2020 UWMP.

5. City of Morgan Hill demand excludes Butterfield well and Boys Ranch wells, which are located in the Coyote Valley subarea.

6. Demand for other users calculated from documents received from SCVWD staff August 5, 2021.

7. Values in parentheses represent the estimated impact from the proposed Magnolias development (2023-2031 HE Update), compared to the 2020 UWMP.

Projected Water Supply of the Llagas Subbasin1
Projected Average Annual Water Demand
Supply vs Demand Comparison3,7
Recommend WSCP Actions

Table 6.B Single Dry Year Supply and Demand Comparison (Coyote Subarea) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
2025 2030 2035 2040 2045
(AFY) (AFY) (AFY) (AFY) (AFY)
Natural Groundwater Recharge 1,383 1,442 1,442 1,442 1,442 Local Surface Water 6,516 6,516 6,516 6,516 6,516
Valley Water CVP Deliveries 827 5,530 5,805 6,484 6,484 Total Supplies 8,726 13,487 13,762 14,442 14,442
City of Morgan Hill (domestic)2 2,370 2,591 2,767 2,954 3,136 Other Users3 8,752 8,872 9,340 9,724 9,889
Total Demands 11,122 11,463 12,107 12,678 13,025
Difference (Supply - Demand) -2,396 2,024 1,655 1,764 1,417 Percent of Total Supply 127% 85% 88% 88% 90%
Water Shortage Level Level 3
WSCP - use reduction saving benefit 3,337
Revised Demand 7,785
Difference (Supply - Demand) 941
Percent of Total Supply 89%
Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021.

2. City of Morgan Hill demand includes pumping from Butterfield well and Boys Ranch wells, which are located in the Coyote Valley subarea.

Recommend WSCP Actions
Supply vs Demand Comparison
Projected Water Supply of the Coyote Valley Subarea1

Table 7.A Multiple Dry Year Supply and Demand Comparison (Llagas Subbasin) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) Natural Groundwater Recharge 19,535 18,409 20,238 21,832 22,221 19,535 18,409 20,238 21,832 22,221 19,535 18,409 20,238 21,832 22,221 19,535 18,409 20,238 21,832 22,221 19,535 18,409 20,238 21,832 22,221 Local Surface Water 4,721 7,344 7,623 13,549 15,122 8,152 7,344 7,957 16,640 18,294 9,069 8,267 7,623 16,306 18,298 9,069 8,267 7,623 17,144 19,130 9,069 8,266 7,623 17,144 19,130 Valley Water CVP Deliveries 11,448 11,448 10,827 10,139 8,120 9,492 9,492 12,079 6,233 7,574 9,029 9,029 11,800 6,954 6,935 9,277 9,277 11,719 6,160 4,872 8,860 8,860 11,211 5,020 4,092 Recycled Water Supply2 1,673 1,673 1,673 1,673 1,673 2,069 2,069 2,069 2,069 2,069 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 2,464 Recycled Water 2, 3
(WWTP Utility Water) 1,224 1,224 1,224 1,224 1,224 1,228 1,228 1,228 1,228 1,228 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 1,232 Total Supplies without WWTP
Utility Water 37,377 38,874 40,361 47,193 47,136 39,248 37,314 42,343 46,774 50,158 40,097 38,170 42,125 47,557 49,918 40,344 38,417 42,044 47,600 48,687 39,928 37,999 41,536 46,460 47,907 Total Supplies with WWTP
Utility Water 38,601 40,098 41,585 48,417 48,360 40,476 38,542 43,571 48,002 51,386 41,329 39,402 43,357 48,789 51,150 41,576 39,649 43,276 48,832 49,919 41,160 39,231 42,768 47,692 49,139 City of Gilroy4 8,646 8,646 8,646 8,646 8,646 9,314 9,314 9,314 9,314 9,314 10,034 10,034 10,034 10,034 10,034 10,809 10,809 10,809 10,809 10,809 11,645 11,645 11,645 11,645 11,645 City of Morgan Hill
(domestic)5,7 6,301 (+3) 6,301 (+3) 6,301 (+3) 6,301 (+3) 6,301 (+3) 6,890 (+3) 6,890 (+3) 6,890 (+3) 6,890 (+3) 6,890 (+3) 7,357 (+3) 7,357 (+3) 7,357 (+3) 7,357 (+3) 7,357 (+3) 7,855 (+3) 7,855 (+3) 7,855 (+3) 7,855 (+3) 7,855 (+3) 8,337 (+3) 8,337 (+3) 8,337 (+3) 8,337 (+3) 8,337 (+3) Other Users6 32,016 32,016 32,016 32,016 32,016 30,671 30,671 30,671 30,671 30,671 29,951 29,951 29,951 29,951 29,951 28,531 28,531 28,531 28,531 28,531 27,387 27,387 27,387 27,387 27,387 Total Demands 46,966 46,966 46,966 46,966 46,966 46,878 46,878 46,878 46,878 46,878 47,345 47,345 47,345 47,345 47,345 47,198 47,198 47,198 47,198 47,198 47,372 47,372 47,372 47,372 47,372 Difference (Supply - Demand) -9589 (-3) -8092 (-3) -6604 (-3) 227 (-3) 169 (-3) -7630 (-3) -9564 (-3) -4534 (-3) -103 (-3) 3280 (-3) -7247 (-3) -9174 (-3) -5220 (-3) 211 (-3) 2572 (-3) -6853 (-3) -8780 (-3) -5154 (-3) 402 (-3) 1489 (-3) -7444 (-3) -9372 (-3) -5835 (-3) -911 (-3) 535 (-3) Percent of Total Supply 126%
(+0.008%)
121%
(+0.008%)
116%
(+0.007%)
100%
(+0.006%)
100%
(+0.006%)
119
(+0.008%)
126%
(+0.008%)
111%
(+0.007%)
100%
(+0.006%)
93%
(+0.006%)
118%
(+0.007%)
124%
(+0.008%)
112%
(+0.007%)
100%
(+0.006%)
95%
(+0.006%)
117%
(+0.007%)
123%
(+0.008%)
112%
(+0.007%)
99%
(+0.006%)
97%
(+0.006%)
119%
(+0.008%)
125%
(+0.008%)
114%
(+0.007%)
102%
(+0.006%)
99%
(+0.006%)
Water Shortage Level Level 3 Level 2 Level 2 Level 2 Level 3 Level 1 Level 1 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 1 WSCP - use reduction saving
benefit 14,090 9,393 9,393 9,376 14,063 4,688 4,688 9,469 9,469 9,469 9,440 9,440 9,440 9,474 9,474 9,474 4,737 Revised Demand 32,876 37,573 37,573 37,502 32,815 42,190 42,190 37,876 37,876 37,876 37,758 37,758 37,758 37,898 37,898 37,898 42,635 Difference (Supply - Demand) 4,501 1,301 2,789 1,745 4,499 153 4,584 2,221 294 4,249 2,586 659 4,285 2,030 102 3,639 3,826 Percent of Total Supply 88% 97% 93% 96% 88% 100% 90% 94% 99% 90% 94% 98% 90% 95% 100% 91% 92% Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021.

2. Source: 2015 South County Recycled Water Master Plan Update, Table 3-10.

3. Recycled water use internally at WWTP facility is not considered as a reportable supply/demand of recycled water. Therefore, it was excluded from Supply vs Demand Comparison.

4. Demand consistent with City of Gilroy draft 2020 UWMP.

5. City of Morgan Hill demand excludes Butterfield well and Boys Ranch wells, which are located in the Coyote Valley subarea.

6. Demand for other users calculated from documents received from SCVWD staff August 5, 2021.

7. Values in parentheses represent the estimated impact from the proposed Magnolias development (2023-2031 HE Update), compared to the 2020 UWMP.

Recommend WSCP Actions
2025 2030 2035 2040 2045
Projected Water Supply of the Llagas Subbasin1
Projected Average Annual Water Demand
Supply vs Demand Comparison

Table 7.B Multiple Dry Year Supply and Demand Comparison (Coyote Subarea) Water Supply Assessment for 2023-2031 Housing Element Update City of Morgan Hill
1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) (AFY) Projected Water Supply of the Coyote Valley Subarea1
Natural Groundwater Recharge 1,529 1,301 1,659 2,505 3,107 1,529 1,301 1,659 2,505 3,147 1,529 1,301 1,659 2,505 3,147 1,529 1,301 1,659 2,505 3,147 1,529 1,301 1,659 2,505 3,147 Local Surface Water 5,835 5,139 5,840 5,028 5,056 6,239 5,445 5,864 5,234 6,516 6,516 6,248 5,383 5,971 6,516 6,516 6,516 5,325 6,516 6,516 6,516 6,516 5,162 5,778 6,516 Valley Water CVP Deliveries 1,932 886 1,268 1,960 2,580 4,029 4,614 6,258 5,589 4,757 4,874 4,106 3,046 8,650 5,956 4,933 4,344 3,229 8,721 6,419 4,971 4,338 3,211 5,280 7,122 Total Supplies 9,296 7,326 8,766 9,493 10,743 11,797 11,359 13,780 13,327 14,420 12,919 11,654 10,088 17,127 15,619 12,978 12,161 10,213 17,742 16,082 13,016 12,155 10,032 13,563 16,785 City of Morgan Hill (domestic)2 2,030 2,030 2,030 2,030 2,030 2,591 2,591 2,591 2,591 2,591 2,767 2,767 2,767 2,767 2,767 2,954 2,954 2,954 2,954 2,954 3,136 3,136 3,136 3,136 3,136 Other Users3 9,092 9,092 9,092 9,092 9,092 8,872 8,872 8,872 8,872 8,872 9,340 9,340 9,340 9,340 9,340 9,724 9,724 9,724 9,724 9,724 9,889 9,889 9,889 9,889 9,889 Total Demands 11,122 11,122 11,122 11,122 11,122 11,463 11,463 11,463 11,463 11,463 12,107 12,107 12,107 12,107 12,107 12,678 12,678 12,678 12,678 12,678 13,025 13,025 13,025 13,025 13,025 Difference (Supply - Demand) -1,826 -3,796 -2,356 -1,629 -379 334 -104 2,317 1,864 2,957 812 -453 -2,019 5,020 3,512 300 -517 -2,465 5,064 3,404 -9 -870 -2,993 538 3,760 Percent of Total Supply 120% 152% 127% 117% 104% 97% 101% 83% 86% 79% 94% 104% 120% 71% 78% 98% 104% 124% 71% 79% 100% 107% 130% 96% 78% Water Shortage Level Level 2 Level 4 Level 3 Level 2 Level 1 Level 1 Level 1 Level 2 Level 1 Level 2 Level 1 Level 1 Level 3 WSCP - use reduction saving
benefit 2,224 4,449 3,337 2,224 1,112 1,146 1,211 2,421 1,268 2,536 1,303 1,303 3,908 Revised Demand 8,898 6,673 7,785 8,898 10,010 10,317 10,896 9,686 11,410 10,142 11,723 11,723 9,118 Difference (Supply - Demand) 399 653 981 596 733 1,042 758 403 750 71 1,293 432 914 Percent of Total Supply 96% 91% 89% 94% 93% 91% 93% 96% 94% 99% 90% 96% 91% Notes:
3/25/2022

1. Projected supply per South County Supply document received from SCVWD staff August 5, 2021. 2045
Planned WSCP Actions
Projected Average Annual Water Demand
Supply vs Demand Comparison
2025 2030 2035 2040

April 2022 26 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
Generally, the supply system is observed to be sufficient to meet the demand requirement in some dry years in prolonged droughts. But it might be not able to satisfy the demand all cycle long. However, with the Water Shortage Contingency Plan taking effect, and the waste and unreasonable use of water being prevented, the available water supply may meet the reduced water demand during droughts.

Comparing the projected water supply availability and water demands, this water supply assessment indicates that the water supply from the subbasins is sufficient to meet the water demands of the proposed future developments within the City limits, under normal year conditions, over the next 23 years. However, in a single dry year or consecutive dry years, the projected demand is expected to exceed the system supply. Therefore, water conservation actions and procedures, such as declaring drought and calling for short-term water use reductions, are necessary for maximizing the use of available supplies in order to meet the potential shortage, more details are discussed in the City’s 2021 WSCP.

It should be noted that this supply shortage during single dry and consecutive dry years was condition present in the 2020 UWMP, and not caused by this Project.

5.0 SUMMARY AND CONCLUSIONS
The land use projections in this report were based on the information contained in the City’s 2023 HE Sites (Appendix A). They were consistent with the City’s 2035 GP (except for proposed development No. 14), and phased in 5-year increments and through the project horizon year of 2045, with the very valuable assistance of City of Morgan Hill staff. A summary of the findings include:

5.1 Land Use
The proposed future development within the SOI of the City of Morgan Hill consists of approximately 4.6 acres (4 units) of Residential Estate, approximately 55.2 acres (139 units) of Residential Detached Low, approximately 12.0 acres (63 units) of Residential Detached Medium, approximately 40.2 acres (556 units) of Residential Attached Low, approximately 35.7 acres (655 units) of Residential Attached Medium, approximately 1.54 acres (66 units) of Residential Attached High, approximately 6.4 acres (117 units) of Mixed Use, and approximately 42.9 acres (750 units) of Mixed Use Flex.

5.2 Water Demands
According to the City’s 2023 HE Update (being prepared during this WSA), the proposed housing development is expected to be constructed by the end of year 2031. Therefore, the projected demand from this Project shall be consistent from year 2031 to the planning horizon of this WSA, which is year 2045. At the end of the 23-year period, the projected water demands from this

April 2022 27 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
Project within the Coyote Valley subarea and Llagas subbasin are estimated at approximately 225 AFY and 131 AFY, respectively, and the total demand is estimated to be approximately 356 AFY.

Table 3 provides a detailed listing of anticipated projects, within each groundwater basin, with phased demand projections. Table 4 provides a summary of the projected phased demands, and a comparison between this WSA, the 2020 Urban Water Management Plan (UWMP), and the 2021 Water System Master Plan. It should be noted that Table 4 identifies the net increase in demands, between the 2020 UWMP and this WSA, at 3 AFY. This net increase is resulting from a single proposed development, Monterey-First Community Housing (Magnolias, Map ID 14), which exceeded the previous general plan assumptions.

5.3 Water Supply
Based on the Valley Water 2020 UWMP and the South County Supply projections provided by City staff and Valley Water staff, the total water supply within each subbasin consists of natural groundwater recharge, local surface water, Valley Water CVP deliveries, recycled water supply (excluding WWTP utility water), where available. Therefore, in the year 2045, under normal year conditions, the projected water supply availabilities of the Llagas subbasin and Coyote Valley subarea are approximately 48,342 AFY and 14,650 AFY, respectively (Tables 5.A and 5.B).

5.4 Water Supply Sufficiency
Water supply sufficiency is compared during normal years, as well as during dry years.

Normal Year. Comparing the projected water supply availability and water demands, this water supply assessment indicates that the water supply from the subbasins is sufficient to meet the water demands of the proposed future developments within the City limits, under normal year conditions, over the next 23 years (Tables 5.A, 5.B).

Dry Years. During a single dry year or consecutive dry years, the projected demands are expected to exceed the system supply in the 25-year window (Tables 6.A, 6.B, 7.A, 7.B).

Therefore, pursuant to the City’s 2020 UWMP and WSCP, water conservation actions (Appendix C) and procedures, such as declaring water shortage levels (Appendix B) and calling for shortterm water use reductions, are necessary for maximizing the use of available supplies in order to meet the potential shortage. It should be noted that this supply shortage during single dry and consecutive dry years was condition present in the 2020 UWMP, and not caused by this Project.

5.5 Conclusions
In conclusion, the analysis and findings in this WSA indicate the following:
• The net increase in demands, between the 2020 UWMP and this WSA, is at 3 AFY.

April 2022 28 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
• The water supply from the subbasins is sufficient to meet the water demands of the proposed future developments within the City limits, under normal year conditions, over the next 23 years.
• This supply shortage during single dry and consecutive dry years was condition present in the 2020 UWMP, and not caused by this Project.
(This page is intentionally left blank.)

April 2022 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
City of Morgan Hill

WATER SUPPLY ASSESSMENT
FOR 2023-2031 HOUSING ELEMENTS UPDATE
Appendices

April 2022 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
City of Morgan Hill

WATER SUPPLY ASSESSMENT
FOR 2023-2031 HOUSING ELEMENTS UPDATE
Appendix A
Final Morgan Hill HE Opportunity Sites

Map ID Project Name Project No. APN Location Acres Units Entitlement Status GP Density Consistency
Flood Zone Mapped Flood Zone
GP
1 Monterey-Lucky Shing Manzinita
Park SR2020-0017 72501018 MONTEREY RD 5.83 67
PENDING, expect to be
entitled prior to HE
update and EIR
C
2 E. Dunne-Young (Andalusia) SR2018-0020 72602052 and 72602051 2.33 46 Entitled C 2 No Project n/a 72602012 4.84 76 No Project C
2 No Project n/a 72602016 2.3 36 No Project C
3 n/a 72607021 17364 Walnut
Grove Dr 3.4 13 No Project C
3 Walnut Grove- Newland Homes
(SiliconSage) SR2020-0025 72607090 (-91 through -98)
Walnut Grove Dr. 1.61 11 Entitled C
4 Dakota-Dunne SR2021-0003 72609024 1.22 6 Entitled C
4 Diana- Mana Hanalei, SR2019-0028 72609078 through -101 3.65 24 Entitled C 5 Depot-Latala (Hale Lumber) SR2019-0003/SD2018-
007/EA2019-0013 72613049 17020 DEPOT ST 2.05 49 Entitled C Y Y 6 No Project n/a 72623018 95 E MAIN AV 2.52 40 No Project C Y Y 6 No Project n/a 72623019 MCLAUGHLIN AV 0.87 14 No Project C Y Y 6 No Project n/a 72623020 MONTEREY RD 0.91 14 No Project C Y Y 7 Monterey-City Ventures SR2019-0026 72625006 18110 MONTEREY RD 6.69 101 Entitled C Y* N
8 Jarvis-MH Apartments (Braddock
& Logan), SR2019-0015 72625095 19.5 389 Entitled C Y Y
9 Monterey-Minor (Jemcor) SR2020-0027 72636059 18960 Montery Rd 7.52 249 Entitled C 10 No Project 72641065 0.9 14 No Project C
10 Monterey-Kerley (DeNova Homes) PRE2021-0001 72642002, -3 19380 Monterey Rd 1.05 93 PENDING, expect to be
entitled prior to HE
update and EIR
C
11 Half-Dividend (Crosswinds) SR2020-0010 72830001, -2, -3, and -4 Half Road and Mission' 28.88 269
PENDING, expect to be
entitled prior to HE
update and EIR
C
12 Cochrane - Toll Brothers SR2021-0011/EA2021-0009 72834032 and 72834033 54.42 137 PENDING, expect to be
entitled prior to HE
update and EIR
C
13 Tilton-Lee Schmidt SR2018-0009 76409004 280 TILTON AV 0.78 2 Entitled C 14 Monterey-First Community
Housing (Magnolias) SR2021-0005 76412006 17965 Monterey Rd 1.54 66 Entitled N Y Y 15 Campoli-Squires SD2021-0002 76424005 185 CAMPOLI DR 0.74 1 Entitled C 15 Sanchez-Brewer SD2020-0001 76424076 185 SANCHEZ DR 0.24 1 Entitled C 15 LD MONTEREY - APPLETREE (KELLY V AAE2021-0002 76424061 18755 Monterey Rd 1.13 7 Entitled C 16 Spring-Ginacola SR2020-0028 76711030 335 Spring Rd 2.78 22 Entitled C 17 Red Jasper 16595 MONTEREY RD 76717046 2.93 103 Potential Project C Y Y 18 Edes-Alcini (TTLC Morgan Hill), PRE2021-0002 76718046 MONTEREY RD 1.1 21

PROPOSED, NOT
expected to be entitled
prior to HE update or
EIR
C Y Y
19 Llagas-Strolata Properties (Silvas) SR2018-0025 77332013 1110 Llagas Rd 4.6 4 Entitled C 20 Watsonville-Hordness (Crossings
at Monterey/Royal Oaks Village) SR2020-0023 77904075 15440 Monterey Rd 8.19 73 Entitled C Y* N 17 Monterey-Morgan Hill Senior Housin SR2020-0005 81702067 16685 Church St 1.89 82 Entitled C Y Y 21 Tennant-Osito Holdings SR2020-0014 81704059 215 TENNANT AV 0.99 16 Entitled C 22 No Project n/a 81709036 Juan Hernandez Dr 5.22 83 No Project C 22 Lillian Commons/Rosewood PA2019-0005 & ZA2019-001 81709041 9.48 120 Entitled C 22 No Project 81709055 Tenant Avenue 6.35 101 No Project C Total Acres/Units: 198.45 2350

April 2022 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
City of Morgan Hill

WATER SUPPLY ASSESSMENT
FOR 2023-2031 HOUSING ELEMENTS UPDATE
Appendix B
Water Shortage Levels
(City of Morgan Hill 2020 UWMP, Table 8-2)

October 2021 8-4 City of Morgan Hill
2020 Urban Water Management Plan
Table 8-2 Water Shortage Contingency Plan Levels
Shortage
Level
Percent
Supply
Shortage/
Reduction
Morgan
Hill
Shortage
Level
Valley
Water
Shortage
Level Title
Water Supply Condition
Level 0 None Normal Normal At Level 0, no Water Supply Shortage condition exists.

Level 1 Up to 10% Alert Alert
A Level 1 Water Supply Shortage condition exists
when City Council determines and agrees that 1% -
10% consumer demand reduction is necessary to
make more efficient use of water.

Level 2 11 to 20% Significant Severe
A Level 2 Water Supply Shortage condition exists
when City Council determines and agrees that 11% -
20% consumer demand reduction is necessary to
make more efficient use of water.

Level 3 21 to 30% Severe Critical
A Level 3 Water Supply Shortage condition exists
when City Council determines and agrees that 21% -
30% consumer demand reduction is necessary to
make more efficient use of water.

Level 4 31 to 40% Critical Critical
A Level 4 Water Supply Shortage condition exists
when City Council determines and agrees that 31% -
40% consumer demand reduction is necessary to
make more efficient use of water.

Level 5 41 to 50% Crisis Emergency
A Level 5 Water Supply Shortage condition exists
when City Council determines and agrees that 41% -
50% consumer demand reduction is necessary to
make more efficient use of water.

Level 6 > 50% Emergency Emergency
A Level 6 Water Supply Shortage condition exists
when City Council determines and agrees that a
consumer demand reduction of greater than 50% is
necessary to maintain public water supplies.

April 2022 WSA for 2023-2031 Housing Element Update
Akel Engineering Group City of Morgan Hill
City of Morgan Hill

WATER SUPPLY ASSESSMENT
FOR 2023-2031 HOUSING ELEMENTS UPDATE
Appendix C
Water Shortage Response Actions
(City of Morgan Hill 2020 WSCP, Table 5-1)

October 2021 10 City of Morgan Hill
2020 Water Shortage Contingency Plan
Table 5-1 Demand Reduction Actions
Level
Restrictions and
Prohibitions on
End Users Category
Additional Explanation or Reference
Penalty, Charge,
or Other
Enforcement?
Level 0
(YearRound)
Landscape - Limit
landscape irrigation
to specific times
Prohibits watering or irrigating lawn, landscape, or other vegetated area 9:00 a.m. and 5:00 p.m. with the following exceptions:
- Using a hand-held bucket or similar container
- Using a hand-held hose equipped with a positive self-closing water shut-off nozzle or device
- For very short periods of time for the express purpose of adjusting or repairing an irrigation system
Yes
Level 0
(YearRound)
Landscape - Limit
landscape irrigation
to specific times
Prohibits watering or irrigating of lawn, landscape, or other vegetated area using a system or device that is left unattended for more than fifteen (15) minutes per day per station. Exceptions include low-flow drip systems where no emitter produces flow more than two (2) gallons per hour, and weather based controllers or stream rotor sprinklers with 70% efficiency standard.

Yes
Level 0
(YearRound)
Landscape - Restrict
or prohibit runoff
from landscape
irrigation
Prohibits watering or irrigating of lawn, landscape, or other vegetated area that causes or allows excessive flow or runoff onto sidewalk, driveway, street, etc. Yes Level 0
(YearRound)
Other - Prohibit use
of potable water for
washing hard
surfaces
No washing down hard or paved surfaces except with the use of hand-held water container, hand-held hose with a positive self-closing water shut-off device, low-volume high-pressure cleaning machine equipped to recycle any water used, or low-volume high-pressure water broom.

Yes
Level 0
(YearRound)
Other - Customers
must repair leaks,
breaks, and
malfunctions in a
timely manner
Requires repairs to be made to breaks, leaks, or other malfunctions no more than ten (10) days upon receiving written notice from the City. Yes

October 2021 11 City of Morgan Hill
2020 Water Shortage Contingency Plan
Table 5-1 Demand Reduction Actions
Level
Restrictions and
Prohibitions on End
Users Category
Additional Explanation or Reference
Penalty, Charge,
or Other
Enforcement?
Level 0
(YearRound)
Water Features -
Restrict water use for
decorative water
features, such as
fountains
Prohibits operation of a water fountain or decorative water features that does not use recirculated water. Yes
Level 0
(YearRound)Other
Prohibits using water to wash a vehicle, including but not limited to any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not except by the use of a hand-held water container or hand-held hose with a positive self-closing water shut-off device. This does not apply to any commercial car washing facility.

Yes
Level 0
(YearRound)
CII - Restaurants may
only serve water upon
request
Yes
Level 0
(YearRound)
CII - Lodging
establishment must
offer opt out of linen
service
Requires hotels, motels, and other commercial lodging established to provide customers the option of not having towels and linen laundered daily.

Commercial lodging establishments must prominently display notice of this option in each bathroom using clear and easily understood language.

Yes
Level 0
(YearRound)
CII - Other CII restriction
or prohibition
Prohibits installation of a single pass cooling system for buildings requesting new water service. Yes
Level 0
(YearRound)
CII - Other CII restriction
or prohibition
Prohibits installation of non-recirculating water systems in new commercial conveyor car wash and new commercial laundry systems. Yes Level 0
(YearRound)
CII - Commercial
kitchens required to use
pre-rinse spray valves
Prohibits the use of non-water conserving dishwasher spray valves in food preparation establishments, such as restaurants or cafes. Yes

October 2021 12 City of Morgan Hill
2020 Water Shortage Contingency Plan
Table 5-1 Demand Reduction Actions
Level
Restrictions and
Prohibitions on
End Users Category
Additional Explanation or Reference
Penalty, Charge,
or Other
Enforcement?
Level 0
(YearRound)
Other - Prohibit
vehicle washing
except at facilities
using recycled or
recirculating water
All commercial conveyor car wash systems must have installed recirculating water systems, or secured a waiver of this requirement from the City. Yes Level 0
(YearRound)
Landscape - Limit
landscape irrigation
to specific days
Limits watering or irrigating of lawn, landscape or other vegetated area to three days per week during the months of March through October. Watering or irrigating of lawn, landscape or other vegetated area with potable water is limited to no more than one day per week during the months of November through February. This provision does not apply to landscape irrigation zones that exclusively use very low flow drip type irrigation systems when no emitter produces more than two (2) gallons of water per hour. This provision also does not apply to watering or irrigating by use of a hand-held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off nozzle or device, or for very short periods of time for the express purpose of adjusting or repairing an irrigation system.

Yes
Level 1
Expand Public
Information
Campaign
Communication campaign asking community to conserve water use. Yes Level 2
Expand Public
Information
Campaign
Targeted communications relating to leaks and high water users. Yes Level 3
Landscape - Limit
landscape irrigation
to specific days
Active enforcement of limiting watering or irrigating of lawn, landscape or other vegetated area to 3 times per week during March to October. Yes

October 2021 13 City of Morgan Hill
2020 Water Shortage Contingency Plan
Table 5-1 Demand Reduction Actions
Level
Restrictions and
Prohibitions on
End Users Category
Additional Explanation or Reference
Penalty, Charge,
or Other
Enforcement?
Level 3
Other - Prohibit
vehicle washing
except at facilities
using recycled or
recirculating water
Prohibits using water to wash a vehicle, including but not limited to any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not except at a commercial car washing facility that utilizes a recirculating water system to capture or reuse water.

Yes
Level 3
Implement or Modify
Drought Rate
Structure or
Surcharge
Imposition of alternative "drought" rate schedule if City adopts such a schedule. Yes Level 4
Landscape - Limit
landscape irrigation
to specific days
Active enforcement of limiting watering or irrigating of lawn, landscape or other vegetated area to 2 times per week during March to October. Yes Level 5
Landscape - Limit
landscape irrigation
to specific days
Active enforcement of limiting watering or irrigating of trees and shrubs to 1 time per week during March to October. Yes

October 2021 14 City of Morgan Hill
2020 Water Shortage Contingency Plan
Table 5-1 Demand Reduction Actions
Level
Restrictions and
Prohibitions on End
Users Category
Additional Explanation or Reference
Penalty, Charge,
or Other
Enforcement?
Level 5
Moratorium or Net Zero
Demand Increase on
New Connections
Limits on New Potable Water Service: Upon declaration of a Level 5 Water Shortage Crisis condition, the City may limit the issuance of new potable water services, temporary meters and/or statements of immediate ability to serve or provide potable water service (such as, will-serve letters, certificates, or letters of availability), except under the following circumstances:
- A valid, unexpired building permit has been issued for the project; - The project is necessary to protect the public health, safety, and welfare; - The applicant provides substantial evidence of an enforceable commitment that water demands for the project will be offset prior to the provision of a new water meter(s) to the satisfaction of the City.
- This provision does not preclude the resetting or turn-on of meters to provide continuation of water service or the restoration of service that has been interrupted for a period of one year or less.

Yes
Level 5
Landscape - Limit
landscape irrigation to
specific days
No irrigation for turf, except turf utilized for active recreation at a school, park, or public facility may remain at 2 times per week during March to October.

Yes
Level 6
Landscape - Limit
landscape irrigation to
specific days
No irrigation allowed. Yes
Note: Active enforcement means utility AMI data would be mined to find water users not abiding by published schedule + utility to allocate funds to contract or hire 1 FTE enforcement officer.

1 DISCLAIMER: This document is intended solely as a technical overview of the provisions of certain provisions of the Housing Accountability Act. It is not intended to serve as legal advice regarding any jurisdiction's specific policies or any proposed housing development project. Local staff should consult with their city attorney or county counsel when determining the applicability of these provisions to any proposed housing development project in their jurisdiction.

The “Builder’s Remedy” and Housing Elements
There have recently been press reports regarding the so-called “Builder’s Remedy” that can be used to avoid local zoning requirements when a locality’s housing element does not substantially comply with state law. These reports have stated that, if a locality has a noncompliant housing element the city or county must approve the housing development project, regardless of the local zoning.

The “Builder’s Remedy” arises from the Housing Accountability Act (Government Code Section 65589.51 ; the HAA). This
paper describes the provisions of the HAA that constitute the “Builder’s Remedy” and how they may apply to a proposed housing development project.

How Does the “Builder’s Remedy” Work?
The HAA requires that cities and counties make one of five findings to deny, or to apply conditions that make infeasible, a housing development project “for very low, low- or moderate-income households” or an emergency shelter. (Section 65589.5(d).) A housing development project with 20 percent of the total units available to lower income households or with all of the units available for moderate or middle income households may qualify as housing “for very low, low- or moderate income households” (see detailed description below). The five findings which would allow denial of an eligible project can be summarized as follows:

1. The city or county has met or exceeded its Regional Housing Needs Allocation (RHNA) for the proposed income categories in the development.

2. The housing development or emergency shelter would have a specific adverse impact on public health and safety, and there is no way to mitigate or avoid the impact without making the development unaffordable. The impact must be based on objective, written public health or safety standards in place when the application was deemed complete.

3. The denial or condition is required to meet state or federal law, and there is no feasible method to comply without making the development unaffordable.

4. The project is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agriculture or resource preservation or there are not adequate water or sewage facilities to the serve the project.

1 All future references are to the Government Code unless otherwise specified.

Regional Housing Technical Assistance Program
2 5. The project is inconsistent with both the zoning ordinance and the land use designation as specified in any general plan element. However, a city or county cannot make this finding if it has not adopted a housing element in substantial compliance with state law.

If a locality has not adopted a housing element in substantial compliance with state law, developers may propose eligible housing development projects that do not comply with either the zoning or the general plan. The term “Builder’s Remedy” is used to describe the situation where a local agency may be required to approve an eligible housing development project because it cannot make one of the other four findings.

Are Projects Using the “Builder’s Remedy” Exempt from CEQA Review? The HAA contains no exemptions from the California Environmental Quality Act. The HAA states specifically that nothing relieves the local agency from making the required CEQA findings and otherwise complying with CEQA. (Section 65589.5(e).) A project may be exempt from CEQA under other provisions of CEQA, other state laws, or the CEQA Guidelines.

When Does a Housing Element No Longer Comply with State Law? Is There a Grace Period If the Housing Element Is Not Adopted by the Due Date? Housing elements are required to comply with current state housing element law on the established due date (January 31, 2023 in the ABAG region). State law has changed significantly since fifth cycle housing elements were adopted, and it would be unlikely that a fifth cycle housing element would substantially comply with current state law. If a sixth cycle element has not been adopted by the due date, the housing element would likely be out of compliance with state law until a complying sixth cycle housing element is adopted. There is no grace period, even for the period when a housing element is being reviewed by the Department of Housing and Community Development (HCD).

HCD approval is not required for a housing element to be found substantially compliant with state law. State law provides that a city or county may adopt its own findings explaining why its housing element is substantially compliant with state law despite HCD’s findings. (Section 65585(f).) However, HCD is authorized to refer agencies to the Attorney General if it finds a housing element out of compliance with state law. (Section 65585(j).) Are a Local Agency’s Development Standards Null and Void If the Housing Element is Not in Compliance with State Law?
No, the local agency’s development standards are not null and void if the housing element is not in substantial compliance with state law. The “Builder’s Remedy,” however, may require a local agency to approve an eligible housing development project despite its noncompliance with local development standards. Conversely, other projects may be challenged because a finding of general plan consistency cannot be made if the general plan is out of compliance with state law.

What Projects Are Eligible to Use the “Builder’s Remedy”? The “Builder’s Remedy” applies only to a housing development project “for very low, low- or moderate-income households” and to emergency shelters. The HAA defines a “housing development project” as either:
• Residential units only;
• Mixed-use developments with at least two-thirds of the square footage designated for residential use; or

Regional Housing Technical Assistance Program
3 • Transitional housing or supportive housing.2 (Section 65589.5(h)(2).) “Housing for very low, low-, or moderate-income households” includes either:
• 20% of the total units sold or rented to lower income households; • 100% of the units sold or rented to moderate income households; or • 100% of the units sold or rented to middle income households.3 Monthly housing costs for lower income households cannot exceed 30 percent of 60 percent of median income, adjusted for household size, and the units must remain affordable for 30 years. Monthly housing costs for moderate income households cannot exceed 30 percent of 100 percent of median income. There are no standards in the HAA for housing costs for middle income households. (Sections 65589.5(h)(3), (h)(4).) An emergency shelter is housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. (Section 65582(d); Health & Safety Code Section 50801(e).)

2 As defined in Section 65582.
3 Those earning no more than 150 percent of median income.

2023-2031 Housing Element
January 25, 2023

• One of the required Elements (or Chapters) of a General Plan
• A local plan, adopted by a city that includes goals, policies, and programs that direct decision-making around housing What is the Housing Element?
1 Morgan Hill's 2023-2031 Regional Housing Needs Allocation Very LowIncomeLow-Income ModerateIncomeAbove
ModerateIncome
Total
Final
Allocation
262 151 174 450 1,037
Pipeline
Projects
307 238 444 830 1,819
Surplus +45 +87 +270 +380 +782

• Shortest turnaround for region (ABAG) to
prepare Housing Element in the State.
• RHNA allocation issued in December 2021
• Longer timeframes for HCD review (90 days for first review; 60 days for subsequent reviews)
• Housing Element due January 31, 2023
• Majority of the Housing Element prepared
in-house.
• Appendix H-5: Assessment of Fair Housing prepared by the Lawyers’ Committee for Civil Rights Under Law
• CEQA analysis (Initial Study/Addendum)
completed for adoption of Housing Element.

Housing Element Notes
2

• Analysis of existing and projected housing needs.
• Inventory of land suitable for housing.
• Analysis of potential constraints on housing
• (New) Assessment of Fair Housing (AFH) and Affirmatively Furthering Fair Housing (AFFH).
• Engage and incorporate input from protected classes, and other underrepresented or underserved groups.
• Analysis of special housing needs.
• Identify where emergency shelters are allowed.
• Evaluation of previous Housing Element.
• Analysis of residential energy conservation.
• Analysis of “at-risk” affordable housing.
• Goals, policies, and implementation programs.

Housing Element Requirements
3

• Goal 1: Provide a diversified housing stock to meet the full range of future community housing needs.
• Goal 2: Encourage Extremely Low-Income (ELI) housing
production, increasing availability of affordable and workforce housing.
• Goal 3: Advance equity and inclusion throughout the City. • Goal 4: Preserve and rehabilitate existing housing supply. • Goal 5: Promote housing for people experiencing homelessness. • Goal 6: Provide adequate housing for groups with special needs. • Goal 7: Increase community outreach and promote education of affordable housing.
2023-2031 Housing Element Goals
4

• Chapter 1: Introduction: Provides an overview of the Housing Element, State requirements, and a summary of the organization of the Housing Element.
• Chapter 2: Community Engagement: Describes the City’s efforts to engage all segments of the community during the preparation of the Housing Element.
• Chapter 3: Summary of Land Available for Housing: Presents a summary of the City’s Regional Housing Needs Allocation and how the City achieves meeting the allocation.
• Chapter 4: Goals and Policies: Contains the City’s housing goals and policies that provide direction to help the City meet its housing goals.
• Chapter 5: Implementation: Contains the implementation programs (actions) that the City is committed to implementing over the planning period.

Components of the Housing Element
5

• Appendix H-1: Housing Needs Assessment: Describes the characteristics of Morgan Hill’s population and housing. • Appendix H-2: Site Inventory: Presents the detailed results of residential units in the pipeline to meet the City’s RHNA. • Appendix H-3: Opportunities for Energy Conservation: Summarizes the ways the City is currently addressing the conservation of energy resources.
• Appendix H-4: Constraints Analysis: Identifies nongovernmental and governmental constraints that inhibit the development of housing. • Appendix H-5: Assessment of Fair Housing: Provides an assessment of fair housing practices in Morgan Hill.
• Appendix H-6: Evaluation of Past Housing Element: Summarizes the City’s achievements under the 2015-2023 Housing Element. • Appendix H-7: Public Participation: Includes the compilation of community input and feedback received during the Housing Element Update process.
6 Components of the Housing Element

• 2021 Housing Conversations workshops (May-June 2021)
• Two Community input surveys (952 responses)
• Community Based Organization Fair Housing survey (25
responses)
• Housing Element Town Hall (February 2022)
• 25 virtual stakeholder focus group meetings (January-March 2022)
• Planning Commission Workshops (January-May 2022)
• City Council public hearing (August 2022)
Community Engagement
7

• “addresses many statutory requirements,
revisions will be necessary to comply with
State Housing element Law”.
• Comments focused on:
• Local processing and permit procedures, land use
controls, and fees
• Additional details on Affirmatively furthering Fair
Housing (AFFH);
• Clarification and more details on Housing Needs;
• Additional details on Constraints Analysis; and
• Consolidation/modification of proposed program
actions.

HCD Findings Letter
8

Per HCD's comments, revisions were made to
the following draft 2023-2031 Housing Element
documents:
• City of Morgan Hill Housing Element
• Appendix H-1: Housing Needs Assessment
• Appendix H-2: Site Inventory
• Attachment 2-A: Site Inventory Form
• Appendix H-4: Constraints Analysis
• Appendix H-5: Assessment of Fair Housing
HCD Response
9

• Housing Element due January 31, 2023
• Builder’s Remedy goes into effect February
1, 2023, unless a Housing Element is adopted
• Builder’s Remedy means: Required to
approve residential developments that do not
meet General Plan and Zoning regulations
• No Grace Period
Builder’s Remedy
10

• General Plan Inadequacy: Local governments with an
invalid General Plan can no longer make permitting
decisions.
• Legal Suits: Vulnerable to litigation including suspension of local control and court approval of housing developments. • Loss of Permitting Authority: Courts have authority to take local government residential and nonresidential permit authority.
• Financial Penalties: Courts can multiply financial
penalties.
• Court Receivership: Courts may appoint an agent to
remedy deficiencies.
• Streamlined Ministerial Approval Process (SB35):

Proposed developments in localities that have not yet made sufficient process towards their RHNA are subject to less rigorous ministerial approvals
Penalties and Consequences of
Housing Element Noncompliance
11

• Implements the Affordable Housing
and Homelessness Strategic Priority
• Held over 40 Housing Element meetings
• Will meet RHNA goals with Pipeline
projects
• Builder’s Remedy goes into effect
February 1, 2023, unless Housing
Element is adopted
• Received non-substantial comments
from HCD on Draft 2023-2031 Housing
Key Takeaways
12

What’s Next?
13 Next Steps
• Submit final 2023-2031 Housing Element to HCD
• HCD 60 Day Review (January-March 2023)
• Revise Housing Element in Response to any additional
HCD’s Comments
• Communicate to Planning Commission and City Council
any future edits prior to submission to HCD certification • City Council readopts certified Housing Element

Questions?
14

2 CITY COUNCIL STAFF REPORT
MEETING DATE: January 25, 2023
PREPARED BY:

Angie Gonzalez, Deputy City Clerk
APPROVED BY: City Manager

LEGISLATIVE UPDATE-HOUSING AND DEVELOPMENT

RECOMMENDATION(S)
Receive presentation.

January 25, 2023
2022 Legislative Update –
Housing and Development

AB2011 & SB 6 –
Residential Development in
Commercial Zones
2 • Goes into effect July 1, 2023
• AB 2011 and SB 6 permit residential development on sites currently zoned and designated for commercial or retail uses • AB 2011 creates a CEQA-exempt, ministerial approval
process for multifamily housing developments on sites within a zone where office, retail or parking are the principally permitted use
• Uses different qualifying criteria based on affordability and rental/owner projects
• Local inclusionary requirements prevail if greater affordability required

AB2011 & SB 6 –
Residential Development in
Commercial Zones
3 • SB 6 may be either a 100-percent residential project or a mixed-use project where at least 50 percent is dedicated to residential uses
• Does not create a new process
• If the project meets all requirements (except the noncompliance with zoning prohibiting residential use), then it may invoke SB 35 and the Housing Accountability Act
• Subject to CEQA but not required to be affordable

AB 2097 – Parking Requirements
4 • Does not allow parking to be required or enforced on any development project located within one-half mile of a major transit stop
• "Major transit stops" include rail or bus rapid transit stations, ferry terminals served by either a bus or rail transit service, intersections of two or more bus routes with
frequent service during peak commute periods and those
major transit stops included in an applicable regional
transportation plan
• For Morgan Hill, the Caltrain Station qualifies as a major transit stop. Bus service in Morgan Hill does not currently meet the criteria to qualify

AB 2097 – Parking Requirements
5 • A City may require parking if it can make certain findings within 30 days of receipt of a complete application
• Findings would have to find “substantially negative impact” on the ability to meet low or very low RHNA, special
housing needs of elderly or disabled, or existing residential or commercial parking within ½ mile
• “Substantially negative impact” is currently undefined and would likely be challenged
• Housing development projects with 20 percent affordable units or with fewer than 20 housing units could not be
required to provide parking (except for disabled persons and electric vehicles) even if those findings were made

AB2234 – Post Entitlement
Phase Permits
6 • Applies to nondiscretionary permits needs to commence construction of a project that is at least 2/3 residential • Includes building, demolition, and minor or standard
excavation or grading and offsite improvement permits
• City allowed to create ordinance defining what is
considered engineering related minor or standard post
entitlement permit
• Must determine if application is complete within 15
business days of receipt and provide written notice
• Does not include permits required by Coastal
Commission, special districts, or utility not owned and operated by local agency

AB2234 – Post Entitlement
Phase Permits
7 • If no notice provided within 15 business days, application deemed complete
• If incomplete notice provided, must include list of
incomplete items and how to make them complete
• Review complete application in:
• 30 business days (less than 25 units)
• 60 business days (more than 25 units)
• Within timeframe must either:
• Return with full written set of comments with request for revisions; or
• Approve the application

8 • Allowed additional review time if written findings based on substantial evidence that specific adverse impact
on objective, identified, written public health and safety standards
• Appeals may be filed if incomplete, noncompliant or
denial decision – timelines apply for City response
• Failure to meet the timelines under the law is
considered a disapproval of the housing project under
the Housing Accountability Act and may result in legal
consequences for the jurisdiction
AB2234 – Post Entitlement
Phase Permits

9 • Post the following on City website by January 1, 2024:
• List of all application information
• Example of complete, approved application
• Example of complete sets of permits for at least five types of projects
• Create website with application, completion and retrieval of permits capability
AB2234 – Post Entitlement
Phase Permits

SB1214 - Architectural Plan
Requirements
10 • Restricts the posting of drawings with copyrighted information in manner that facilitates copying without
permission from design professional or copyright holder • Allows applicants to provide massing studies rather than plans and elevations for public information purposes
• Permitted to make available for internal office review, distribute copies to members of legislative body or planning agency, and display on internet and in person only during public hearing
• Evaluating options to maintain existing levels of public information availability

AB2668 - SB 35 Clean-Up
11 • Clarifies SB 35 projects are not subject to Conditional Use Permit or any other nonlegislative discretionary approval • Includes permits such as design review, site review, tree permitting, variances
• Requires calculation of required affordable units on base density only – not excluding any density bonus
• Prohibits local agencies from determining that a
development is in conflict with objective planning standards where application materials are missing, so long as the application "contains substantial evidence that would allow a reasonable person to conclude that the development is
consistent with objective planning standards."
• Must provide project proponent with written explanation of which objective standards project conflicts with and why

Accessory Dwelling Units
12 • AB 2221 and SB 897 make substantial changes in the development standards applicable to accessory dwelling units (ADUs) and subject local agencies to additional processing requirements. City zoning ordinance was adopted making
development standard changes in December 2022
• ADUs can be developed in detached garages
• Two detached ADUs may be planned for a proposed multifamily building, as well as an existing building
• Allows increased height limits - Between 16 to 25 feet depending on location of ADU
• Front yard setback requirements may not limit an attached or detached ADU to less than 800 sq. ft. in size

Accessory Dwelling Units
13 • May reinstate owner-occupancy requirements for properties with ADUs beginning January 1, 2025 (AB 2221)
• The construction of an ADU will not trigger a requirement to install fire sprinklers in existing primary dwellings
• A permit to legalize an unpermitted ADU constructed prior to January 1, 2018, cannot be denied unless the building is deemed substandard or correcting violations necessary to protect health and safety
• A complete ADU or JADU application must be approved or denied within 60 days of receipt unless associated with a proposed single-family home or multifamily building

Accessory Dwelling Units
14 • No separate zoning clearance or zoning review can be required
• If the permitting agency denies an application, it must provide written comments itemizing the reasons for denial and
describe how to remedy the application
• Require concurrent review of demolition and ADU permits when a detached garage will be demolished and replaced by an ADU

AB2334 - Density Bonus
15 • 100% Affordable Projects entitled to unlimited density if located in “very low vehicle traffic area”
• “Very low vehicle traffic area” means vehicle miles/capita less than 85% of either regional or city miles traveled/capita • Redefines “Maximum allowable residential density," or "base density," is redefined as the “maximum number of units
allowed under the zoning ordinance, specific plan, or land use element of the general plan”
• If the density allowed in the zoning ordinance is
“inconsistent” with the density allowed in the general or specific plan, “the greater shall prevail”

• Density bonus law can be applied to this type of housing (i.e. co-housing)
• Defined as “a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residents of more than 30 days by tenants”
• If includes other types of units, cannot be more than 25% of floor area of the building
• Includes 100 percent shared housing and can have
ground floor commercial space
AB682 - Density Bonus –
Shared Housing
16

• Provides an opportunity for a development bonus for
commercial developments that have entered into an agreement to partner with a housing developer
• Agreement between the developers and the development
bonus must be approved by the city or county
• If the affordable units are not constructed in accordance with the timelines in the agreement, the city or county may withhold certificates of occupancy for the commercial development • In effect until January 1, 2028
AB1551 – Commercial Density
Bonus
17

AB2339 Housing Element –
Emergency Shelters
18 • Must be allowed in residential zones or nonresidential zones that allows residential uses
• Cannot situate in industrial zones or other zones without residential uses
• If site zoned mixed-use, must identify amenities and
services for people experiencing homelessness
• Does not apply in Morgan Hill - Requirements apply if first Housing Element draft submitted to HCD after January 31, 2023

Housing Element - Annual
Progress Reports
19 • Four separate laws make new changes to the annual
reporting requirements further increasing the complexity for housing element annual progress reports
• Reports must now also include:
• Ministerial vs. discretionary process (AB 1743)
• Progress in meeting extremely low-income household
needs (AB 2094)
• Detailed information about AB 2011 projects
• Total number of new housing units (AB2653)
• Total number of demolished housing units (AB 2653)
• Data from all density bonus projects (AB 2653)

3 CITY COUNCIL STAFF REPORT
MEETING DATE: January 25, 2023
PREPARED BY:

Angie Gonzalez, Deputy City Clerk
APPROVED BY: City Manager

DEVELOPMENT PROJECTS UPDATE

RECOMMENDATION(S)
Receive presentation.

Significant
Project Updates
1 January 25, 2023

Phases of Development Projects
• Processing Entitlements- The project is in the process of seeking City approval for its proposed development.
• Processing Building Permits- The project is in the process of obtaining construction documents/ permits.
• Approved- The project has acquired all permits required to start construction.
• Under Construction- The project is under construction. • Complete- Project construction is finalized and ready for occupancy or is occupied.
2

Link to Morgan
Hill's Development
Projects
Development Projects
Residential Projects
Commercial Projects
Industrial Projects
Other Projects

Residential
Projects
4

Cochrane Commons
(Phase 2)
Description:
• Mixed-Use Project with up to 498
condos, townhomes, and rental units
(75 affordable) and up to 135,000 SF
of commercial
Location:
• 33.5 Acres, located on the NorthWest corner of highway 101 & Cochrane Road
Status:
• Processing Entitlements
Project Page
Cochrane Rd
Mission View

Crosswinds
(Half-Dividend)
Description:
• 269 Condos and townhomes (40
affordable)
Location:
• 31 Acres, located by Half Road to the
East, Mission Boulevard and De Paul
Drive
Status:
• Processing Entitlements
Project Page
Half Rd
S Valley Frwy

New Horizons (HillMorgan Hill Devco,
LLC)
Description:
• 338 Condos, and townhomes,
including 76 age-restricted units (51
affordable)
Location:
• 69.43 Acres, located Northeast
quadrant of Hill Road and Barrett
Avenue
Status:
• Processing Entitlements
Project Page
Barrett Ave
Hill Rd

The Gates (MontereyCity Ventures)
Description:
• Mixed-use Project consisting of 49
townhome units (7 affordable) and 5
commercial flex units
Location:
• 3.8 Acres, located on the southwest
quadrant of Monterey Road and
Cochrane Road
Status:
• Processing Entitlements
Project Page
Old Monterey
Jarvis Dr
Monterey Rd

Rosewood-Residential
(Lillian Commons)
Description:
• 120 Condos and townhouses
(9 affordable)
Location:
• 19.67 Acres, located on the
Southeast quadrant of Juan
Hernandez and Barrett Avenue
Status:
• Processing Building Permits
Project Page
Tennant Ave
S Valley Frwy
Tennant Ave

Magnolias
(Monterey-First
Community Housing)
Description:
• 66 Rental units (100% affordable)
Location:
• 1.5 Acres, located at 17965 Monterey
Road
Status:
• Approved
Project Page
Monterey Hwy
Del Monte Ave
Wright Ave

Denova Homes
(Monterey-Kerley)
Description:
• 93 Condos (14 affordable)
Location:
• 4.6 Acres, located at 19380 Monterey
Road
Status:
• Approved
Project Page
Monterey Hwy
Monterey Hwy
Burnett Ave

Manzanita Park
Description:
• 67 Condos (10 affordable)
Location:
• 5.8 Acres, located by Monterey
Road and Tilton Avenue
Status:
• Approved
Project Page Page 308 of 328
Jemcor
(Monterey-Miner)
Description:
• 249 Rental units (100% affordable)
Location:
• 7.5 Acres, located along Monterey
Road at Madrone Parkway
Status:
• Under Construction
Project Page
Madrone Pkwy
Monterey Hwy
Monterey Hwy
Madrone Pkwy

Royal Oak Village
(Watsonville Hordness)
Description:
• 73 Rentals (100% affordable, 36 units
dedicated to farm worker housing)
Location:
• 7.64 Acres, located along Watsonville
Road, South of Monterey Road
Status:
• Under Construction
Project Page
Monterey Hwy
Monterey Hwy

Morgan Hill
Senior Housing
Description:
• 82 Age-restricted rental units (100%
affordable)
Location:
• 2 Acres, located by Monterey Road,
San Pedro Avenue, and Church Street
Status:
• Under Construction
Project Page

Vida (Butterfield
Village Apartments)
Description:
• 398 Rental units (78 affordable)
Location:
• 25 Acres, located between Monterey
Road & Butterfield Boulevard, South
of Jarvis Drive & North of Digital
Drive
Status:
• Under Construction
Project Page
Sutter Blvd
Monterey Hwy

Monterey-Jasper
Trumark
Description:
• 101 Townhouses (15 affordable) and
2,900 SF of commercial retail
Location:
• 5.67 Acres, located on 18110
Monterey Road, adjacent to the
intersection of Monterey and Old
Monterey Roads
Status:
• Under Construction
Project Page
Monterey Hwy Old Monterey Rd

Commercial
Projects
18

Rosewood-Medical
(Lillian Commons)
Description: • A mix-use development of a 4,500 SF
urgent care facility; a 10,000 SF
medical building; 100,000 SF medical
office/hospital with 55 beds, a threestory parking garage with 500 spaces; a 10,000 SF of commercial
retail/ restaurant building
Location: • 10.07 Acres, located at the southeast
corner of Juan Hernandez Drive and
Barrett Avenue in Morgan Hill
Status: • Processing Entitlements
San Pedro Ave
Monterey Hwy
Project Page
Peak Ave
W Dunne Ave S Valley Frwy Tennant Ave

Chick-fil-A
Description:
• CUP and design permit for Chick-fil-A
restaurant with drive-through
Location:
• 1.63 Acres, at the Southwest corner of
Cochrane Road and Sutter Blvd, 18599
Sutter Blvd
Status:
• Processing Entitlements
Sutter Blvd
Project Page Not Available

Evergreen Village
Description:
• Commercial center with a range of uses
including retail, financial services,
medical, lodging, and professional
offices
Location:
• 20 Acres, located on Butterfield
Boulevard and Cochrane Road
Status:
• Under Construction
Project Page
Cochrane Rd
Butterfield Blvd

Edes Gallery
(Monterey-McCranie)
Description:
• 6,600 SF Building for a Fine-art
Gallery
Location:
• 0.115 Acres, located on the
Southwest corner of Monterey Road
and 2nd Street in Downtown
Status:
• Under Construction
Project Page Page 318 of 328
Hotel MOHI
Description:
• 73-Room Boutique Hotel
Location:
• 1.09 Acres, located on East of
Monterey Road between 1st and 2nd
Street
Status:
• Under Construction
Project Page

Cardinale
Automotive
Description: • Dodge, Chrysler, Jeep, and Ram
dealership
Location: • 9.24 Acres, on Condit Road between
Diana Avenue and East Dunne
Avenue
Status: • Under Construction
Project Page
Condit Rd
S Valley Frwy

Industrial
Projects
25

Railroad Ave
Mersho
Investments
Description:
• Mix-type development projects
consisting of industrial and
commercial use
Location:
• 22.76 Acres, located throughout
Madrone Parkway and Jarvis
Drive
Status:
• Processing Entitlements
Project Page Not Available

Anaerobe Systems
(Concord-Cox)
Description:
• 4,500 SF Fermentation research
facility
Location:
• 1.41 Acres, located on the Southwest
quadrant of Tennant and Railroad
Avenue, at 15906 Concord Circle
Status:
• Processing Building Permits
Project Page
Railroad Ave
Tennant Ave

Cochrane Tech
(Redwood Tech)
Description:
• 501,314 SF of Industrial space
spread across 5 separate buildings
and 4 legal lots
Location:
• 29 Acres, located West of DePaul
Road, South of Cochrane Road
Status:
• Processing Building Permits
Project Page

Railroad-Goyal
Description:
• 21,000 SF of Industrial development
and freight terminal
Location:
• 2.66 Acres, located on the East side
of Railroad Avenue, 16500 Railroad
Avenue
Status:
• Approved
Project Page
Butterfield Blvd
Railroad Ave

Techcon
Description:
• 55,000 SF of Office, warehouse, and
manufacturing space on two parcels
Location:
• 3.34 Acres, located at 480 Cochrane
Circle, North of the intersection of
Cochrane Road and Monterey Road
Status:
• Approved
Project Page

Railroad-Level 10
Construction
Description:
• 60,500 SF Warehouse building and
9,500 SF office
Location:
• 3.67 Acres, located on the Southeast
corner of Railroad and Barrett
Avenue, 16290 Railroad Avenue
Status:
• Complete
Project Page
Railroad Ave

Butterfield
Technology Park
Description:
• 410,000 SF of Industrial space in five
separate buildings
Location:
• 25 Acres, located between Monterey
Road & Butterfield Boulevard, South
of Jarvis Drive & North of Digital
Drive
Status:
• Complete
Project Page