Agenda packet — Morgan Hill City Council, January 25, 2023 (part 1 of 3)

Special/Regular Meeting Agenda
City Council
Mark Turner - Mayor
Rene Spring - Mayor Pro Tem
Gino Borgioli - Council Member
Marilyn Librers - Council Member
Yvonne Martinez Beltran - Council Member
Wednesday, January 25, 2023 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person with the option for the public to attend by teleconference/video conference. Information on how the public may observe and participate in the meeting is located below.

MEETING PARTICIPATION AND PUBLIC COMMENT
City Council meetings will be live-streamed on Channel 17, on the City’s website, and on the City’s Facebook page.

Those members of the community that would like to participate in the meetings remotely may do so by joining virtually at: https://bit.ly/MHCityCouncilMeeting or by calling (669) 900-9128, then enter the webinar id: 873 3200 8380#. Public comment may be provided in the following ways:
• Provide public comment in-person
• Join the City Council meeting virtually via the link above. When public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes. (YOU MUST BE RUNNING THE MOST CURRENT VERSION OF

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

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January 25, 2023
2 SPECIAL/REGULAR MEETING
A Special Meeting of the City Council is called at 6:00 p.m. for the purpose of conducting a closed session.

SPECIAL MEETING
6:00 p.m. Closed Session

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

CLOSED SESSION
Conference with Legal Counsel - Existing Litigation
Authority: Pursuant to CA Govt. Code Section 54656.9(a).

Case Name: Tacazon v. City of Morgan Hill
Case Numbers: Workers’ Compensation Claim No: MHL2100010 Real Property Negotiations
Pursuant to: Government Code Section 54956.8
Property: APN - 81706002
Negotiating Parties: City Manager and Public Services Director Under Negotiation: Price and Terms

OPPORTUNITY FOR PUBLIC COMMENT

ADJOURN TO CLOSED SESSION

REGULAR MEETING
7:00 p.m.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PRESENTATIONS

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January 25, 2023
3 YAC Presentation - Asset # 14 - Adult Role Model

CITY COUNCIL REPORTS
Council Member Yvonne Martinez Beltran

CITY MANAGER'S REPORT
New, Promoted, and Retired Employees Presentation

CITY ATTORNEY'S REPORT

OTHER REPORTS

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

ADOPTION OF AGENDA

PUBLIC HEARINGS

1. ADOPT THE CITY OF MORGAN HILL 2023-2031 HOUSING ELEMENT Recommendation:

1. Adopt resolution amending the General Plan to update the Housing Element of the General Plan for the period of 2023-2031 and adopting the addendum to the City of Morgan Hill 2035 General Plan Final Environmental Impact Report (EIR) for the 2023-2031 Housing Element Update to affirmatively further fair housing (AFFH) and comply with State Housing Element Law; and

2. Direct staff to submit the City of Morgan Hill 2023-2031 Housing Element to the California Department of Housing and Community Development (HCD) for State certification.

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January 25, 2023
4 OTHER BUSINESS

2. LEGISLATIVE UPDATE-HOUSING AND DEVELOPMENT
Recommendation:

Receive presentation.

3. DEVELOPMENT PROJECTS UPDATE
Recommendation:

Receive presentation.

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

ADJOURNMENT

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January 25, 2023
5 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

PUBLIC COMMENT
Members of the Public are entitled to directly address the City Council concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item of interest to the public, you may do so during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less.

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

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

City Council Policies and Procedures (CP 03-01) outlines the procedure for the conduct of public hearings.

Notice is given, pursuant to Government Code Section 65009, that any challenge of Public Hearing Agenda items in court, may be limited to raising only those issues raised by you or on your behalf at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the Public Hearing on these matters.

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

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

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

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January 25, 2023
6

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

Adam Paszkowski, Principal Planner
APPROVED BY: City Manager
ADOPT THE CITY OF MORGAN HILL 2023-2031 HOUSING ELEMENT

RECOMMENDATION(S)

2. Direct staff to submit the City of Morgan Hill 2023-2031 Housing Element to the California Department of Housing and Community Development (HCD) for State certification.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Supporting our Youth, Seniors, and Entire Community
Enhancing Diversity and Inclusiveness
Advancing Regional Initiatives
2022-2023 Strategic Priorities
Affordable Housing and Homelessness
Guiding Documents
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

The City of Morgan Hill is required to adopt an updated Housing Element for the period covering 2023-2031 by January 31, 2023. The Housing Element is one of nine Statemandated elements that must be included in every General Plan. The Housing Element assesses housing needs for all income groups within the community and identifies implementation programs to meet those housing needs. Unlike other General Plan elements, the Housing Element must be updated every eight years, rather than every 20 years, must address statutory requirements regarding its content, and is subject to mandatory review and certification by the California Housing and Community Development Department (HCD). The community's housing needs are determined through the Regional Housing Needs Allocation (RHNA) process. RHNA is the statePage 7 of 328 1 mandated process to identify the number of housing units, by affordability level, that each jurisdiction must accommodate in the Housing Element of its General Plan. As part of this process, the City of Morgan Hill must plan for 1,037 housing units by household income category for the 2023-2031 planning period, as identified in the table below. The City is in the enviable position of meeting the required 1,037 units with the current project pipeline already in progress.

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
The proposed 2023-2031 Housing Element includes the following components:
• 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. Describe the City's efforts to engage all segments of the community during the preparation of the Housing Element, including the numerous individuals, organizations, and agencies with which the City consulted, and the methods of community outreach.
• Chapter 3: Summary of Land Available for Housing. Presents a summary of the City's Regional Housing Needs Allocation and the inventory of sites within Morgan Hill City Limits that are suitable for residential development during the planning period.
• Chapter 4: Goals and Policies. Contains the City's housing goals and policies that provide direction to help the City meet its housing goals. The Housing Element includes seven goals that create the framework for how the City will address housing needs.
• Chapter 5: Implementation. Contains the implementation programs (actions) that the City and its partner agencies are committed to implementing over the planning period. A summary of the City's quantified objectives for housing development, rehabilitation, and conservation is also included.

The proposed 2023-2031 Housing Element also includes the following appendices:
• Appendix H-1: Housing Needs Assessment. Describes the characteristics of Morgan Hill's population and housing that are essential to understanding the City's housing needs, including population and household characteristics, income and employment, housing costs and affordability, special housing needs, and atrisk housing. • Appendix H-2: Site Inventory. Presents the detailed results of the inventory of sites within the City that are suitable for residential development during the eightPage 8 of 328 1 year planning period. It includes a description of the City’s RHNA, number of residential units in the pipeline of planned and entitled projects, and a summary of capacity/potential to accommodate the City’s RHNA.
• Appendix H-3: Opportunities for Energy Conservation. Summarizes the ways the City is currently addressing the conservation of energy resources as part of larger climate action and adaptation planning processes. • Appendix H-4: Constraints Analysis. Identifies nongovernmental and governmental constraints that inhibit the development, maintenance, or improvement of housing.
• Appendix H-5: Assessment of Fair Housing. Provides an assessment of fair housing practices in Morgan Hill and a summary of strategies to affirmatively further fair housing within Morgan Hill.
• Appendix H-6: Evaluation of Past Housing Element. Summarizes the City’s achievements in implementing programs under the previous (2015-2023) Housing Element.
• Appendix H-7: Public Participation. Includes the compilation of community input and feedback received during the various meetings and engagement events.

Starting in early 2021, the City has worked diligently through the required steps to comply with State law with the goal of adopting a Housing Element prior to the January 31, 2023 deadline. In the event the City does not have an adopted Housing Element by January 31, the City could be subject to the “Builder's Remedy” and other streamlining options where the City could further lose local control regarding land use. Additional details of the Draft 2023-2031 Housing Element are provided in the August 17, 2022, City Council Public Hearing Staff Report.

Builder's Remedy
Under the Housing Accountability Act, jurisdictions which do not have an adopted Housing Element that is in substantial compliance with State law by the statutory deadline (January 31, 2023 for the Bay Area) could be required to approve a residential development even if it does not meet local General Plan and zoning regulations. The “Builder’s Remedy” has been in the Housing Accountability Act since 1990 and pertains to residential developments that have at least 20 percent low-income units or 100 percent moderate income units. In past Housing Element cycles, HCD has applied a 120-day grace period past the statutory deadline allowing cities to achieve "precertification" from HCD prior to adoption of the updated Element. On December 21, 2022, HCD confirmed that no grace period will apply to this cycle and any jurisdiction that adopts a Housing Element later than January 31, 2023, will be subject to the Builder’s Remedy. A handout on the Builder's Remedy prepared by the Association of Bay Area Governments (ABAG) is attached for further information.

If the City Council does not adopt a Housing Element that is in substantial compliance with Housing Element Law by January 31, 2023, a developer could invoke the Builder’s Remedy in connection with a planning application. Under State law, the City can, however, adopt a substantially compliant Housing Element by the due date and continue to seek State certification. While ideally the City should have State certification

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1 as proof of its compliance, it can still assert substantial compliance with State laws while certification is sought.

HCD Findings Letter
On August 17, 2022, the City Council held a public hearing to review the Draft 2023- 2031 Housing Element and directed staff to submit it to HCD for their 90-day review.

City Staff submitted the Draft 2023-2031 Housing Element to HCD on August 19, 2022.

After the full statutory review period (90 days), on November 17, 2022, HCD provided written findings, indicating that although the Morgan Hill Draft 2023-2031 Housing Element "addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law." The comments from HCD did not require any major modifications to the Draft 2023-2031 Housing Element. Comments mainly focused on providing additional detail and specifics (such as Morgan Hill's local processing and permit procedures, land-use controls, and fees) as well as minor amendments in regards to affirmatively furthering fair housing (AFFH), housing needs, constraints analysis, and modifications to proposed program actions including specifying dates and benchmarks for implementation throughout the planning period. Please refer to the attached HCD Findings Letter.

Based on HCD's comments, staff has revised the Draft 2023-2031 Housing Element addressing HCD's comments. State law requires the City Council to consider HCD's comments and make appropriate findings as part of the Housing Element adoption process. A summary of changes to the Draft Housing Element based on HCD comments are listed in the linked City Matrix to address HCD Response Letter.

Per HCD's comments, revisions were made to the following draft 2023-2031 Housing Element documents. Redlines within the below linked documents represent changes made in response to HCD's comments:
• City of Morgan Hill Housing Element (Redline version) • Appendix H-1: Housing Needs Assessment (Redline version) • Appendix H-2: Site Inventory (Redline version)
o Attachment 2-A: Site Inventory Form
• Appendix H-4: Constraints Analysis (Redline version)
• Appendix H-5: Assessment of Fair Housing (Redline version) A revised draft or an adopted Housing Element must be submitted to HCD in response to the initial comment/findings letter. Subsequent reviews by HCD will take up to 60 days. Due to staffing and workload issues, HCD is utilizing the full review time period and would likely return a response to the City in March.

Prior to submitting a revised draft or adopted Housing Element to HCD, the City must post the revision on its website and email a link to all individuals and organizations that have previously requested notices relating to the local government’s Housing Element at least seven days before submitting the revised Housing Element to HCD. The notice and revised draft was posted on the City website on Friday, January 13.

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1 In consultation with HCD about the potential adoption prior to certification, the City's reviewer stressed the need for staff to be authorized to include HCD requested edits in the Housing Element post Council adoption. There is language in the attached resolution that would allow for those edits. Any future edits HCD requests prior to certification would be communicated to the Planning Commission and City Council prior to submission to HCD for certification. Once HCD has communicated the Housing Element is eligible for certification, the document will be brought to City Council for readoption.

Conclusion
It is recommended that the City Council adopt the City of Morgan Hill 2023-2031 Housing Element and adopt the Addendum to the Comprehensive General Plan Update Final EIR. Staff will subsequently submit the final Housing Element Update documents to HCD for the State's final review and certification.

The proposed final City of Morgan Hill 2023-2031 Housing Element includes the following linked documents:
• City of Morgan Hill Housing Element
• Appendix H-1: Housing Needs Assessment
• Appendix H-2: Site Inventory
o Attachment 2-A: Site Inventory Form
• Appendix H-3: Opportunities for Energy Conservation
• Appendix H-4: Constraints Analysis
• Appendix H-5: Assessment of Fair Housing
• Appendix H-6: Evaluation of Past Housing Element
• Appendix H-7: Public Participation
COMMUNITY ENGAGEMENT:

Inform
The City implemented a robust outreach and engagement program to inform the community and seek input regarding the Housing Element Update. The initial efforts began in May and June of 2021, with a series of workshops. The initial workshops served as a springboard to leap into a deeper community engagement process. The City used a variety of methods to solicit public input on the Housing Element update, including distributing three surveys (two pertaining to Assessment of Fair Housing (AFH)), hosting public workshops, providing information at community events, conducting focus groups, giving presentations to the Community, and holding several workshops with the community and the Planning Commission. The City prioritized involvement and engagement of residents and community members that are most directly impacted by the plan and development, especially Latinx, homeless, and other underrepresented or underserved groups.

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1 The City held 25 virtual stakeholder focus group meetings from January 2022 through March 2022 to gather input from various stakeholders, including developers, home builders, non-profit organizations, advocacy groups, and public agencies on key housing issues. The City also issued a follow-up survey to the stakeholders to address barriers to accessing decent, safe, affordable housing and which housing priorities are most important for Morgan Hill.

The City held workshops with the Planning Commission on January 25, February 22, March 8, April 12, April 26, May 10, and May 24, 2022 to share work progress to date and obtain early direction and feedback. The City also held a virtual Citywide Town Hall on June 23, 2022 to accompany the release of the Public Draft Housing Element.

In accordance with State law, a display ad was placed in the newspaper notifying the public of the 30-day public review period. Additionally, a Housing Element Update webpage was established on the City's website and the City Council Agenda and the Staff Report for this public meeting was also made available on the City's website. A display ad, 411 and social media communications were also used to notify the public of this meeting.

ALTERNATIVE ACTIONS:

The City Council may choose to adopt a Housing Element after January 31, 2023.

However, by not having an adopted Housing Element that is in substantial compliance with State law by January 31, 2023, the City could be subject to the Builder's Remedy and may be required to approve residential developments that do not meet local General Plan and zoning regulations until a Housing Element is adopted.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On July 26, 2022, the Planning Commission considered and recommended, unanimously, the City Council direct staff to submit the Draft 2023-2031 Housing Element to the California Department of Housing and Community Development for review.

On August 17, 2022, the City Council considered and directed, unanimously, staff to submit the Draft 2023-2031 Housing Element to the California Department of Housing and Community Development for review.

FISCAL AND RESOURCE IMPACT:

This item is included in the current adopted budget (FY22-23 and FY23-24) and is part of the Long Range Planning workplan and is funded through the Long Range Planning Fund (207). In addition, Long Range Planning secured grant funding through the Local Early Action Planning Grants Program (LEAP) in the amount of $150,000 for the preparation and development of the City of Morgan Hill's 2023-2031 Housing Element Update and the Regional Early Action Planning Grant (REAP) in the amount of $27,371 to support the preparation of an Initial Study/Addendum relating to the City of Morgan Hill's 2023-2031 Housing Element Update.

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1 CEQA (California Environmental Quality Act):

There are no new significant environmental impacts or previously identified significant impacts associated with the Project. Therefore, the City determined that an Addendum to the Morgan Hill 2035 General Plan Final Environmental Impact Report (EIR) is the appropriate California Environmental Quality Act (CEQA) document to address project modifications in accordance with CEQA Guidelines Section 15164. CEQA Guidelines Section 15164(c) provides that an addendum need not be circulated for public review.

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RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL ADOPTING A GENERAL PLAN

AMENDMENT TO UPDATE THE HOUSING ELEMENT OF
THE GENERAL PLAN FOR THE PERIOD OF 2023-2031

AND ADOPTION OF AN ADDENDUM TO THE CITY OF
MORGAN HILL 2035 GENERAL PLAN FINAL
ENVIRONMENTAL IMPACT REPORT (EIR) FOR THE 2023-
2031 HOUSING ELEMENT UPDATE TO AFFIRMATIVELY

FURTHER FAIR HOUSING AND COMPLY WITH STATE

HOUSING ELEMENT LAW
WHEREAS, the City of Morgan Hill (the “City”) has an adopted General Plan, which includes all of the state mandated elements;
WHEREAS, the State of California Government Code Section 65588 requires the review and adoption of a Housing Element that may be updated according to the Association of Bay Area Governments Regional Housing Needs Assessment (“RHNA”) planning cycle;
WHEREAS, the State of California Government Code Section 65583(c)(9) requires that local jurisdictions make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the program shall describe this effort, the City launched a multi-lingual housing needs survey, conducted 25 stakeholder interviews, held seven (7) Planning Commission workshops on January 25, 2022, February 22, 2022, March 8, 2022, April 12, 2022, April 26, 2022, May 10, 2022, and May 24, 2022, held one (1) Citywide Town Hall meeting on June 23, 2022, and held a Planning Commission public hearing on July 26, 2022. Issues raised during these public participation events were addressed in the 2023-2031 Housing Element Update;
WHEREAS, draft Housing Element was advertised and made publicly available for more than a 30-day public review period from June 3, 2022 to July 5, 2022 in compliance with State of California Government Code Section 65583; WHEREAS, on November 17, 2022, per Government Code Section 65585(b), a response/comment letter from the State Department of Housing and Community Development (“HCD”) was received by Staff for the review of the draft 2023-2031 Housing Element and the document was revised to comply with State housing element law (Article

10.6 of the Government Code);

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City of Morgan Hill
Resolution No. 23-xx

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WHEREAS, this City Council acknowledges that Housing Element comments provided by HCD were considered and incorporated as appropriate prior to final adoption of the 2023-2031 Housing Element by City Council, in compliance with State law; WHEREAS, this City Council duly authorizes the City Manager or her designee to make iterative changes to the Housing Element in response to comments from HCD to support State certification of the 2023-2031 Housing Element; WHEREAS, pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, a Program Environmental Impact Report (EIR) (SCH No. 2015022074) for the Morgan Hill 2035 General Plan Update was prepared and certified by the City of Morgan Hill in July 2016;
WHEREAS, the City of Morgan Hill acting as a lead agency has completed an environmental analysis and determined that there are no new significant environmental impacts or previously identified significant impacts made more severe by project modifications, new circumstances, or new information associated with the project.

Therefore, the City has determined that an Addendum to the Morgan Hill 2035 General Plan Update Final Environmental Impact Report (EIR) is the appropriate CEQA document to address project modifications in accordance with CEQA Guidelines Section 15164.

CEQA Guidelines Section 15164(c) provides that an addendum need not be circulated for public review;
WHEREAS, copies of the environmental document and 2023-2031 Housing Element were made available for public inspection at the Development Services Center located at 17575 Peak Ave., Morgan Hill, CA Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m.;
WHEREAS, on January 13, 2023, a public notice was published in the Morgan Hill Times, specifying the date, time, and location of the public hearing to consider the recommendation that the City Council adopt the City of Morgan Hill 2023-2031 Housing Element and Addendum to the City of Morgan Hill 2035 General Plan Update Final EIR and direct Staff to submit the 2023-2031 Housing Element to the HCD for State certification;
WHEREAS, the City of Morgan Hill City Clerk’s Office shall serve as the custodian of the EIR document, Addendum, and all appendices, supporting studies, figures, and related documents which constitute the record of proceedings and are available for review at 17575 Peak Ave., Morgan Hill, CA Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m.; and

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City of Morgan Hill
Resolution No. 23-xx

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WHEREAS, testimony received at a duly noticed public hearing, along with exhibits and other materials have been considered in the review process.

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

SECTION 1. The Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law.

SECTION 2. As required by Government Code Section 65585(e), the Morgan Hill City Council has considered the findings made by the Department of Housing and Community Development included in the Department’s letter to the City of Morgan Hill dated November 17, 2022, consistent with Government Code Section 65585(f). The Morgan Hill City Council has changed the Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

SECTION 3. The City of Morgan Hill Housing Element Adopted February 18, 2015 is hereby repealed in its entirety, and the City of Morgan Hill 2023-2031 Housing Element, as shown in Attachment C to this Resolution, incorporated herein, is adopted.

SECTION 4. The Development Services Director or designee is hereby directed to file all necessary material with the Department of Housing and Community Development for the Department to find that the Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department to achieve certification.

SECTION 5. The Development Services Director or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.

SECTION 6. The Morgan Hill City Council finds that the 2023-2031 Housing Element, as a proposed General Plan amendment, meets the letter and intent of the General Plan goals and policies.

SECTION 7. That the City Council adopt the draft Resolution adopting the Morgan Hill 2023- 2031 Housing Element and approve the Addendum to the Morgan Hill 2035 General Plan Update Final EIR and submit the 2023-2031 Housing Element to HCD for State certification.

SECTION 8. The City Clerk shall certify to the adoption of this Resolution.

SECTION 9. This Resolution shall take effect immediately upon its adoption by the City Council.

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City of Morgan Hill
Resolution No. 23-xx

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PASSED AND ADOPTED THIS 25th DAY OF JANUARY 2023, AT A MEETING OF THE CITY COUNCIL BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: APPROVED:
______________________________ _______________________________ MICHELE BIGELOW, City Clerk MARK TURNER, Mayor

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City of Morgan Hill
Resolution No. 23-xx

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CERTIFICATE OF THE CITY CLERK

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Resolution No. , adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2023.

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

DATE: _____________________ _____________________________ MICHELE BIGELOW, City Clerk

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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
November 17, 2022
Jennifer Carman, Development Services Director
City of Morgan Hill
17575 Peak Ave
Morgan Hill, CA 95037-4128
Dear Jennifer Carman:

RE: City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Morgan Hill’s draft housing element received for review on August 19, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on November 16, 2022, with Edith Ramirez, Assistant City Manager for Community Development, Adam Paszkowski, Principal Planner, and Rebecca Garcia, Housing Director. In addition, HCD considered comments from SV@Home and South Bay YIMBY pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

For example, the element must include a complete analysis of governmental constraints, and Affirmatively Furthering Fair Housing (AFFH) including programs with clear actions, metrics, and timeframes. The enclosed Appendix describes these and other revisions needed to comply with State Housing Element Law.

Pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory.

The electronic sites inventory should also include pipeline projects. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/communitydevelopment/housing-element/index.shtml for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Please note, upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected].

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element

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Jennifer Carman, Development Services Director

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process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City of Morgan Hill meets housing element requirements for these and other funding sources.

HCD is committed to assist the City of Morgan Hill in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Alex Contreras, of our staff, at (916) 776-7824.

Sincerely,
Melinda Coy
Proactive Housing Accountability Chief
Enclosure

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City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Page 1 November 17, 2022

APPENDIX

CITY OF MORGAN HILL
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A)) Enforcement: While the element includes analysis of fair housing complaints, it must describe the City’s compliance with existing fair housing laws and regulations. For additional information, please see pages 28-30 on HCD’s Affirmatively Furthering Fair Housing (AFFH) Guidance Memo at https://www.hcd.ca.gov/communitydevelopment/affh/index.shtml.

Integration and Segregation: While the element included an analysis of integration and segregation patterns for race and persons with disabilities, it must also include an analysis of local and regional patterns and trends for persons familial status and income.

Racial/Ethnic Areas of Concentration of Areas of Affluence (RCAA): The element includes information relative to Racially and Ethnically Concentrated Areas of Poverty (R/ECAP) but should also address concentrated areas of affluence. The combination of the R/ECAP and areas of affluence analyses will help guide goals and actions to address fair housing issues. The analysis should evaluate the patterns and changes over time at a local (e.g., neighborhood to neighborhood) and regional level (e.g., City to region).

Disproportionate Housing Needs and Displacement Risk: The element does include data on overcrowded households, cost-burden, substandard housing conditions, but it must also analyze homeless.

Local Data, Knowledge, and Other Relevant Factors: While the element provides some general information on broad policies that can historically lead to issues in fair housing and lending patterns, the element must still supplement the analysis and complement state and federal data with local data and knowledge to capture emerging trends and issues, including utilizing knowledge from local and regional advocates, public comments, and service providers. Additionally, the element should analyze historical land use, zoning, governmental and nongovernmental spending

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City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Page 2 November 17, 2022
including transportation investments, demographic trends, historical patterns of segregation, or other information that may have impeded housing choices and mobility.

Sites Inventory: The element meets the Regional Housing Needs Allocation (RHNA) through proposed and approved projects. Therefore, the site inventory analysis should address how the project locations are distributed throughout the community in a manner that AFFH. A full analysis should address the income categories of identified projects with respect to location and number of units by income groups and how that effects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). The element should also discuss whether the distribution of projects improves or exacerbates conditions. If project locations exacerbate conditions, the element should identify further program actions that will be taken to mitigate this (e.g., anti-displacement strategies).

Contributing Factors: The element must prioritize contributing factors to fair housing issues, giving highest priority to those factors that most limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights compliance.

Contributing factors create, contribute to, perpetuate, or increase the severity of fair housing issues and are fundamental to adequate goals and actions. Examples include community opposition to affordable housing, housing discrimination, land use and zoning laws, lack of regional cooperation, location and type or lack of affordable housing and lack of public or private investment in areas of opportunity or affordable housing choices. The analysis shall result in strategic approaches to inform and connect goals and actions to mitigate contributing factors to affordable housing.

Goals, Priorities, Metrics, and Milestones: Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics and milestones as appropriate, include geographic targeting as appropriate, and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection. For more information, please see HCD’s guidance at https://www.hcd.ca.gov/affirmatively-furthering-fair-housing.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
The element incudes some basic information regarding extremely low-income (ELI) households such as the number of households (H-1-15) and projected housing needs (page H-2-6). However, given the unique and disproportionate needs of ELI households, the element must include analysis to better formulate policies and programs. For example, the element should analyze tenure, cost burden, overcrowding and other household characteristics then examine the availability of resources to determine gaps in housing needs.

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City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Page 3 November 17, 2022

3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Overpayment: While the element identifies the total number of households overpaying for housing (pg.1-41), it must quantify and analyze the number of lowerincome households overpaying for housing by tenure (i.e., renter and owner).

Housing Conditions: While the element includes some information on the age of the housing stock, it must also estimate the number of units in need of rehabilitation and replacement. For example, the analysis could use code enforcement activity to calculate a city-wide estimate.

4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
The City has a RHNA of 1,037 housing units, of which 431 are for lower-income households. To address this need, the element relies entirely on projects in the pipeline. To demonstrate the adequacy of this strategies to accommodate the City’s RHNA, the element must include complete analyses:

Progress in Meeting the RHNA: The element indicates that 1,738 units of which 530 units affordable to lower-income household are approved or pending approval but provides no information documenting how affordability of the units was determined. As you know, the City’s RHNA may be reduced by the number of new units built since June 30, 2021; however, the element must describe the City’s methodology for assigning these units to the various income groups based on actual or anticipated rents or sale prices or other mechanisms ensuring affordability such as deed-restrictions. In addition to count these units as progress towards RHNA, the element should describe the availability of the units within the planning period including the status of each project, describe any expiration dates on entitlements, anticipated timelines for final approvals, and any remaining steps for projects to receive final entitlements. Lastly, given the element’s reliance on pipeline projects, the element must include programs with actions that commit to facilitating development and monitoring approvals of the projects (e.g., coordination with applicants to approve remaining entitlements, supporting funding applications, expediating approvals, rezoning or identification of additional sites should the applications not be approved).

Sites with Zoning for a Variety of Housing Types:

Emergency Shelters: While housing element law does allow a jurisdiction to limit the number of beds or persons permitted to be served nightly by a facility, standards must be designed to encourage and facilitate the development of, or conversion to, an emergency shelter. The element must analyze the 30-bed limit as a potential constraint for the development of emergency shelters and must amend its emergency shelter parking requirements to be in line with AB 139/Government Code section 65583, subdivision (a)(4)(A)).

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Single Room Occupancy (SRO) Units: The element must identify and analyze zoning for SROs. Based on this analysis, the element should include programs as appropriate.

5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Government Code section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). (Gov. Code, § 65583, subd. (a)(5).) Land-Use Controls: The element must independently and cumulatively analyze all relevant land use controls for potential impacts the cost and supply of housing, including the ability to achieve maximum densities. As part of the analysis the element could describe past or current efforts to remove identified governmental constraints.

Specifically, the element identifies the height limit may constrain the development of housing. The element should evaluate the height limit and include a program to amend accordingly. In addition, the element must describe and analyze the parking requirements for single-family and multifamily residential dwellings for its impact as a potential constraint on housing.

Fees and Exaction: The element must describe all required fees for single family and multifamily housing development, including impact fees, and analyze their impact as potential constraints on housing supply and affordability. For example, the analysis could identify the total amount of fees and their proportion to the development costs for both single family and multifamily housing.

Local Processing and Permit Procedures: While the element includes information about processing times and the design permit, it should also describe the procedures for a typical single family and multifamily development. The analysis should address the approval body, the number of public hearing if any, approval findings and any other relevant information and address impacts on housing cost, supply, timing and approval certainty. For example, the element should describe the standards and findings for the design permit, and identify the presence of processes or guidelines to promote certainty.

On/Off-Site Improvements: The element must identify subdivision level improvement requirements, such as minimum street widths (e.g., 40-foot minimum street width) and infrastructure requirements and analyze their impact as potential constraints on housing supply and affordability.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development

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City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Page 5 November 17, 2022
standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

Housing for Persons with Disabilities: The element briefly describes its reasonable accommodation procedures. However, the element should also describe the process and decision-making criteria such as approval findings and analyze any potential constraints on housing for persons with disabilities.

In addition, element states group homes of seven or more are permitted only in higher-density zones with a conditional use permit (CUP). For your information, excluding these uses from residential zones or subjecting the uses to CUPs is generally considered a constraint and programs should be modified as appropriate with specific commitment to allow the use in all residential zones with objectivity and certainty.

6. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
While the element includes data and a general discussion of housing challenges faced by special needs households, it still must provide an analysis of the existing needs and resources for each special needs group including seniors, farmworkers, persons with disabilities including developmental disabilities, and female-headed households. For example, the element should discuss the existing resources to meet housing needs (availability of shelter beds, number of large units, number of deed restricted units, etc.), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps.

7. Analyze existing assisted housing developments that are eligible to change to non-low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov.

Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).).

The element uses the California Housing Partnership’s Preservation Database to identify potential projects at risk of converting to market rate. However, it does not identify if any locally assisted projects are at risk of conversion.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, the provision of

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City of Morgan Hill’s 6th Cycle (2023-2031) Draft Housing Element Page 6 November 17, 2022
regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)
To address the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, programs should include: (1) a description of the City’s specific role in implementation; (2) definitive implementation timelines; (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials.

Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation.

Deliverables should occur early in the planning period to ensure actual housing outcomes. The City could also consider prioritizing actions to ensure implementation of those programs most critical to achieving its housing objectives.

Many of the program actions lists implementation timelines as “ongoing.” While this may be appropriate for some programs, programs with specific implementation actions must include completion or initiation dates resulting in beneficial impacts within the planning period. All program actions must be evaluated to include specific dates or benchmarks for implementation throughout the planning period, as appropriate. Timing of key programs to remove governmental constraints and address AFFH contributing factors should occur early enough in the planning period to realize a beneficial impact.

Additionally, all program actions should be revised to ensure meaningful and specific actions and objectives as follows:
• Program actions containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more specific and measurable actions.
• Program actions that require the City to coordinate with other County entities and stakeholders should clarify what the City’s role is in the implementation of these programs and what outcomes are expected to be achieved. • Program actions that seek to “promote” or “educate” should specify how and when those actions to occur.
• Program actions that commit to “study” should clarify the objectives and ensure measurable outcomes and actions from the results of those actions.

To assist with meeting this requirement, upon request, HCD can provide additional technical assistance under a separate cover.

2. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).)

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The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-income households. The program(s) could commit the City to adopting priority processing, granting fee waivers or deferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to extremely low-income households; assisting, supporting or pursuing funding applications; and outreach and coordination with affordable housing developers.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding A5 the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs.

5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, “accessory dwelling units” has the same meaning as “accessory dwelling unit” as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code, § 65583, subd. (c)(7).)
Programs must be expanded to include incentives to promote the creation and affordability of ADUs. Examples include exploring and pursuing funding, modifying development standards and reducing fees beyond state law, increasing awareness, pre-approved plans and homeowner/applicant assistance tools.

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City of Morgan Hill Housing Element 2023-2031
October 2022
Initial Study/Addendum
In Consultation with
Prepared by

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Morgan Hill Housing Element Update i Initial Study/Addendum City of Morgan Hill October 2022

TABLE OF CONTENTS
Section 1.0 Introduction and Purpose ................................................................................................ 3 Purpose of the Initial Study/Addendum ................................................................................. 3 Notice of Determination ......................................................................................................... 6 Section 2.0 Project Information ......................................................................................................... 7 Project Title ............................................................................................................................ 7 Lead Agency Contact ............................................................................................................. 7 Project Location ...................................................................................................................... 7 Project-Related Approvals, Agreements, and Permits............................................................ 7 Section 3.0 Project Description ........................................................................................................ 10 Background ........................................................................................................................... 10 Existing Conditions .............................................................................................................. 11 Regional Housing Needs Allocation .................................................................................... 11 Planned and Entitled Projects ............................................................................................... 12 Housing Capacity to Accommodate RHNA ......................................................................... 20 Buildout Projections ............................................................................................................. 21 Section 4.0 Environmental Setting, Checklist, and Impact Discussion ........................................... 22 Aesthetics .............................................................................................................................. 23 Agriculture and Forestry Resources ..................................................................................... 33 Air Quality ............................................................................................................................ 41 Biological Resources ............................................................................................................ 52 Cultural Resources ................................................................................................................ 65 Energy ................................................................................................................................... 71 Geology and Soils ................................................................................................................. 78 Greenhouse Gas Emissions ................................................................................................... 88 Hazards and Hazardous Materials ........................................................................................ 95 Hydrology and Water Quality ............................................................................................ 106 Land Use and Planning ....................................................................................................... 122 Mineral Resources .............................................................................................................. 126 Noise ................................................................................................................................... 128 Population and Housing ...................................................................................................... 138 Public Services.................................................................................................................... 142 Recreation ........................................................................................................................... 151 Transportation ..................................................................................................................... 153

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Morgan Hill Housing Element Update ii Initial Study/Addendum City of Morgan Hill October 2022
Tribal Cultural Resources ................................................................................................... 161 Utilities and Service Systems ............................................................................................. 164 Wildfire ............................................................................................................................... 173 Section 5.0 References ................................................................................................................... 177 Section 6.0 Lead Agency and Consultants ..................................................................................... 182 Lead Agency ....................................................................................................................... 182 Consultants ......................................................................................................................... 182 Section 7.0 Acronyms and Abbreviations ...................................................................................... 183 Figures
Figure 2.4-1: Regional Map of the City of Morgan Hill and Surrounding Area ................................... 8 Figure 2.4-2: Aerial Photograph of the City of Morgan Hill ................................................................. 9 Figure 3.4-1: City of Morgan Hill Housing Element Sites .................................................................. 13 Figure 4.13-1 Noise Monitoring Locations ........................................................................................ 134 Tables
Table 3.3-1: City of Morgan Hill RHNA by Household Income Category ......................................... 12 Table 3.4-1: Pipeline Residential Capacity .......................................................................................... 14 Table 3.4-2: Pipeline Residential Potential by Income Category ........................................................ 20 Table 3.5-1: Summary of Residential Capacity Compared to RHNA by Income ............................... 21 Table 3.6-1: 2035 General Plan Population Projections ...................................................................... 21 Table 4.2-1: Summary of Agricultural Lands within Morgan Hill SOI .............................................. 35 Table 4.2-2: Agricultural Land (Housing Element Sites) .................................................................... 36 Table 4.3-1: Health Effects of Air Pollutants ...................................................................................... 41 Table 4.13-1: Groundborne Vibration Impact Criteria ...................................................................... 129 Table 4.13-3: Summary of Short-Term Noise Measurements (dBA) ................................................ 133 Appendices
Appendix A: Water Supply Assessment

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2023-2031 Housing Element Update 3 Initial Study/Addendum City of Morgan Hill October 2022
SECTION 1.0 INTRODUCTION AND PURPOSE

PURPOSE OF THE INITIAL STUDY/ADDENDUM
The City of Morgan Hill, as the Lead Agency, has prepared this Initial Study/Addendum for the City of Morgan Hill Housing Element 2023-2031 (“Project”) in compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines (California Code of Regulations §15000 et. seq.) and the regulations and policies of the City of Morgan Hill, California.

On July 27, 2016, the City Council certified the Morgan Hill 2035 Final Environmental Impact Report (FEIR) (State Clearinghouse No. 2015022074) and adopted the Morgan Hill 2035 General Plan (Resolution No. 16-128). The Morgan Hill 2035 FEIR evaluated adoption and implementation of the proposed General Plan and proposed Residential Development Control System (RDCS). The General Plan includes land use, urban design, circulation, public services, natural resources, and safety goals, policies, and actions to guide investment and development in the City of Morgan Hill over the next 20 years. The RDCS would regulate population growth through the provision of residential building allotments on a yearly or bi-annual basis. The RDCS establishes an absolute population cap of 58,200 through January 1, 2035, and limits residential allotments to 215 per calendar year.1
However, the Morgan Hill 2035 FEIR assumed full buildout for residential development through the horizon year 2035.

The EIR included analyses for all applicable CEQA resource areas and identified the following impacts as significant and unavoidable with the assumption of full buildout of the General Plan:
• Agriculture and Forestry Resources
• Air Quality
• Greenhouse Gas Emissions
• Traffic and Transportation
In certifying the Morgan Hill 2035 FEIR and approving the General Plan Update, the City of Morgan Hill City Council adopted a statement of overriding consideration for the 2035 General Plan for the above mentioned significant and unavoidable impacts, in accordance with CEQA Guidelines Section 15093.

The purpose of this Initial Study/Addendum is to evaluate the potential environmental impacts of the proposed 2023-2031 Housing Element (as described in Section 3.0 Project Description) and determine whether the Project is within the scope of development program described in the 2035 General Plan and evaluated in the Morgan Hill 2035 FEIR, and whether the project has the potential to result in any new or substantially more severe environmental impacts.

The Morgan Hill 2035 FEIR was prepared as a program EIR pursuant to CEQA Guidelines Section 15168. Once a program EIR has been certified, subsequent activities within the program must be evaluated to determine whether additional CEQA review needs to be prepared. This Initial 1 On January 1, 2020, Senate Bill (SB) 330 was signed into law and enacted Government Code Section 66300, the “Housing Crisis Act of 2019.” The Housing Crisis Act pre-empts and precludes the enforcement of these portions of the RDCS while the Housing Crisis Act is in effect.

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2023-2031 Housing Element Update 4 Initial Study/Addendum City of Morgan Hill October 2022
Study/Addendum for the Housing Element Update is also being prepared as a program-level document. If a subsequent activity would have effects that are not within the scope of a program EIR, then the City must prepare a new Initial Study leading to a Negative Declaration, a Mitigated Negative Declaration, or an EIR. Therefore, future development allowed under the Housing Element Update would necessitate subsequent project-level review. In some cases, project-level environmental review has already been conducted for pipeline residential projects (refer to Section

3.4.1 of this Initial Study/Addendum).

The proposed 2023-2031 Housing Element will replace the existing 2015-2023 Housing Element and serve as the City of Morgan Hill’s guiding policy document that meets future needs of housing for all the city’s economic levels. The Housing Element is one of seven separate elements that make up the General Plan. As a policy document, the Housing Element does not result in direct physical changes to the environment but would indirectly lead to physical environmental changes by encouraging the provision of affordable and market rate housing in the housing development projected for the existing land use designations in the Land Use Element of the General Plan. None of the policies in the proposed Housing Element would change the existing land use pattern established by the General Plan and evaluated in the Morgan Hill 2035 General Plan FEIR. All future housing development in the City must comply with the General Plan, zoning ordinance, state and federal permits, and local development standards. In addition, future discretionary actions (i.e., use permits, site plan review) require independent and project-specific environmental review to comply with the California Environmental Quality Act (CEQA).

The Morgan Hill 2035 FEIR was a “Program EIR”, which is defined by CEQA Guidelines Section 15168 as:
(a) General. A program EIR is an EIR which may be prepared on a series of actions that can be characterized as one large project and are related either:
(i) Geographically,
(ii) As logical parts in the chain of contemplated actions, (iii)In connection with issues of rules, regulations, plans, or other general criteria to govern the conduct of a continuing program, or
(iv)As individual activities carried out under the same authorizing statutory or regulatory authority and having generally similar environmental effects which can be mitigated in similar ways.

Pursuant to CEQA Guidelines Section 15168(c), Program EIRs may be used for subsequent activities contemplated in the Program EIR. CEQA Guidelines Section 15168(c) states:
c) Use with Later Activities. Subsequent activities in the program must be examined in the light of the program EIR to determine whether an additional environmental document must be prepared. (i) If a later activity would have effects that were not examined in the program EIR, a new study would need to be prepared leading to either an EIR or a negative declaration. (ii) If the agency finds that pursuant to Section 15162, no new effects could occur or no new mitigation measures would be required, the agency can approve the activity as being within the scope of the project covered by the program EIR, and no new environmental document would be required.

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2023-2031 Housing Element Update 5 Initial Study/Addendum City of Morgan Hill October 2022
(iii)An agency shall incorporate feasible mitigation measures and alternatives developed in the program EIR into subsequent actions in the program.
(iv)Where the subsequent activities involve site specific operations, the agency should use a written checklist or similar device to document the evaluation of the site and the activity to determine whether the environmental effects of the operation were covered in the program EIR.
(v) A program EIR will be most helpful in dealing with subsequent activities if it deals with the effects of the program as specifically and comprehensively as possible. With a good and detailed analysis of the program, many subsequent activities could be found to be within the scope of the project described in the program EIR, and no further environmental documents would be required.

The CEQA Guidelines Section 15162 states that when an EIR has been certified or a negative declaration adopted for a project, no subsequent EIR shall be prepared for that project unless the Lead Agency determines, on the basis of substantial evidence in light of the whole record, one or more of the following:

1. Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;

2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or

3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the Negative Declaration was adopted, shows any of the following:
a. The project will have one or more significant effects not discussed in the previous EIR or negative declaration;
b. Significant effects previously examined will be substantially more severe than shown in the previous EIR;
c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

CEQA Guidelines Section 15164 states that the Lead Agency or a Responsible Agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary, but none of the conditions described in 15162 (see above) calling for preparation of a subsequent EIR have occurred. Pursuant to CEQA Guidelines §15164(d), the Lead Agency shall consider the addendum with the Final EIR prior to making a decision on the project.

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2023-2031 Housing Element Update 6 Initial Study/Addendum City of Morgan Hill October 2022

NOTICE OF DETERMINATION
If the project is approved, the City of Morgan Hill will file a Notice of Determination (NOD), which will be available for public inspection and posted within 24 hours of receipt at the County Clerk’s Office for 30 days. The filing of the NOD starts a 30-day statute of limitations on court challenges to the approval under CEQA (CEQA Guidelines Section 15075(g)).

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2023-2031 Housing Element Update 7 Initial Study/Addendum City of Morgan Hill October 2022
SECTION 2.0 PROJECT INFORMATION

PROJECT TITLE
Morgan Hill Housing Element 2023-2031

LEAD AGENCY CONTACT
City of Morgan Hill
Adam Paszkowski, Principal Planner
17575 Peak Avenue
Morgan Hill, CA 95037
Phone: (408) 310-4635
Email: [email protected]

PROJECT LOCATION
Morgan Hill is a city of 13 square miles located in the southern part of Santa Clara County. The City is located approximately 20 miles south of downtown San José and approximately 13 miles north of Gilroy. This Initial Study/Addendum focusses on the analysis of potential physical environmental changes within the City limits and Sphere of Influence.2

Regional and aerial maps of the City are shown on Figure 2.4-1 and Figure 2.4-2, respectively.

PROJECT-RELATED APPROVALS, AGREEMENTS, AND PERMITS

2.4.1 City of Morgan Hill
The project would require the following discretionary approvals from the City of Morgan Hill:
• Adoption of the 2023-2031 Housing Element
• Adoption of the 2023-2031 Housing Element Initial Study/Addendum

2.4.2 California Department of Housing and Community Development In addition to the discretionary approval identified above, the 2023-2031 Housing Element must be reviewed for compliance with state law and approved by the California Department of Housing and Community Development prior to the City’s final adoption of the 2023-2031 Housing Element. 2 The Sphere of Influence is a boundary that identifies land that the City may annex in the future, and for which urban services, if available, could be provided. Under state law, the SOI is established by the Santa Clara County Local Agency Formation Commission (LAFCO) with input from the City, and its purpose is to identify areas where future urban development can be best accommodated in an orderly and efficient manner. The current SOI is approximately 31 square miles in size.

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San Martin
Gilroy
Willo w Spri ngs Road
Hale Avenue
Santa Teres a Boulevard
Bailey Avenue
McKean Road
Cochrane Road
Oak Glen A venue
101
101
101
152
152
New Avenue
Da
Monterey Road
y Road
Hecker Pass Highway 1st Street
Uvas Road
Bloomfield Avenue
Butterfield BlvdButterfield Blvd
Watsonville Road
Santa Teresa Boulevard
New Avenue
Monterey Road
Day Road
Hecker Pass Highway 1st Street
Uvas Road
Bloomfield Avenue
Watsonville Road
Santa Teresa Boulevard
East Dunne Ave
Monterey Road
Cochrane Road
Oak Glen A venue
Willo w Spri ngs Road
McKean Road
Bailey Avenue
Santa Teres a Boulevard
Hale Avenue
REGIONAL MAP OF THE CITY OF MORGAN HILL AND SURROUNDING AREA FIGURE 2.4-1 San José
Pacific Ocean
Monterey Bay
San José
Fremont
Oakland
San Francisco
Santa Cruz
Mountain View
Morgan Hill
San José San José
Sunnyvale
Fremont
Livermore
Oakland
San Francisco
Santa Cruz
Mountain View
Morgan Hill
San Martin
San Francisco Bay
01 .5 5 Miles
City of Morgan Hill
Morgan Hill Housing Element Update
City of Morgan Hill
8 Initial Study/Addendum
October 2022

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Monterey Road
Monterey Road
Coyote Creek
Anderson
Lake
Chesbro Reservoir
Llagas Cree k
Uvas Creek
Dunn Avenue
Llagas Road
Main Avenue
Tennant Avenue
Cochrane Road
Maple Avenue
Santa Teresa Blvd
East San Martin Avenue
Hill Rd
Coyote C r eek
101
101
Aerial Source: Google Earth Pro, Jun. 14, 2022. Photo Date: Sep. 2021 0 .25 1 1.5 2 Miles
City of Morgan Hill
AERIAL PHOTOGRAPH OF THE CITY OF MORGAN HILL FIGURE 2.4-2 City of Morgan HillMorgan Hill Housing Element Update 9 Initial Study/Addendum October 2022

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2023-2031 Housing Element Update 10 Initial Study/Addendum City of Morgan Hill October 2022
SECTION 3.0 PROJECT DESCRIPTION

BACKGROUND

3.1.1 Morgan Hill 2035 General Plan
Since 1969, the State of California has required all California cities and counties to have a General Plan (California Government Code Section 65300). The General Plan is a state-required legal document that each planning agency in California prepares and the legislative body of each county and city adopts to provide a comprehensive, long-term plan for the physical development of the county or city. A General Plan must include the following seven mandatory elements specified in Government Code Section 65302: a) land use, b) circulation, c) housing, d) conservation, e) open space, f) noise, and g) safety. The General Plan is the City’s official policy for its future character, form, and quality of development. The General Plan describes the amount, type and phasing of development needed to achieve the City’s social, economic, and environmental goals. It is the policy framework for decision making on both private development projects and City capital expenditures.

The current General Plan (“General Plan 2035”) was adopted by the City Council in 2016.

3.1.2 Housing Element
As noted above, the Housing Element is one of seven state-mandated General Plan elements. The required contents of a housing element are set forth in California Government Code Section 65583.

Among other requirements, housing elements are required to adequately plan to meet their existing and projected housing needs, including their share of the “regional housing need”. The law recognizes that in order for the private sector to adequately address housing needs and demand, local governments must adopt land use plans and regulatory schemes that provide opportunities for, and do not unduly constrain, housing development. Specifically, Section 65583 states that the Housing Element shall consist of “…an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources and scheduled programs for the preservation, improvement, and development of housing.” The Housing Element must also contain a schedule of actions that the local government is undertaking to implement the goals and objectives (i.e., the city’s required contribution to the provision of housing for the region). State law requires that the Housing Element be updated periodically, usually every eight years. It is subject to detailed statutory requirements and mandatory review by the California Department of Housing and Community Development (HCD).

The City’s current housing element (2015-2023) was adopted by the City Council in April 2015 and certified by HCD. The adopted housing element covers the period between January 31, 2015 and January 1, 2023. State law requires all nine Bay Area counties and the local jurisdictions therein to update their respective housing elements to account for their regional housing needs allocation (discussed below in Section 3.3 Regional Housing Needs Allocation) and submit them to HCD by January 31, 2023. The City of Morgan Hill’s proposed 2023-2031 Housing Element Update (herein referred to as the “Housing Element Update”, or, “Project”) is discussed in detail below in Section

3.6 Buildout Projections.

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2023-2031 Housing Element Update 11 Initial Study/Addendum City of Morgan Hill October 2022

EXISTING CONDITIONS

3.2.1 Population and Employment
In 2020, the population of Morgan Hill was estimated to be 46,454.3 Since 2000, Morgan Hill’s population has increased by 38.3 percent; this rate is above that of the region as a whole. The population of Morgan Hill makes up 2.4 percent of Santa Clara County.4 There are 21,775 employed residents, and 18,428 jobs in Morgan Hill - the ratio of jobs to resident workers is 0.85; Morgan Hill is a net exporter of workers.5

3.2.2 Housing Supply
The housing stock of Morgan Hill in 2020 was made up of 59 percent single family detached homes,

17.7 percent single family attached homes, 5.5 percent multifamily homes with 2 to 4 units, 9.8 percent multifamily homes with 5 or more units, and 8 percent mobile homes. 6 Between 2015 and 2019, 1,542 housing units were issued permits in Morgan Hill. 77.8 percent of permits issued in Morgan Hill were for above moderate-income housing, 8.8 percent were for moderate-income housing, and 13.4 percent were for low- or very low-income housing.7 The number
of homes in Morgan Hill increased, 19.4 percent from 2010 to 2020, which is above the growth rate for Santa Clara County and above the growth rate of the region’s housing stock during this time period.

REGIONAL HOUSING NEEDS ALLOCATION
Under state law, the HCD is required to allocate a region’s share of the projected statewide housing need to its council of governments, based on California Department of Finance population projections and regional population forecasts. The Association of Bay Area Governments (ABAG) is the regional authority charged with preparing the regional housing needs allocation (RHNA), which quantifies the housing need for local jurisdictions in the San Francisco Bay Area. Once the region’s fair share of regional housing need is agreed upon, the housing need is allocated amongst all of the jurisdictions (cities/counties) within that region, and the city’s fair share of regional housing need is calculated for each established planning horizon.

The City’s fair share of the regional housing need for the upcoming Housing Element cycle of 2023 to 2031 was calculated as 1,037 housing units. Additionally, the No Net Loss Law (California Government Code Section 65863) requires that enough sites are available at all times throughout the RHNA planning period to meet a jurisdiction’s remaining unmet housing needs for each income category. To ensure that sufficient capacity exists in the housing element to accommodate the RHNA throughout the planning period, HCD recommends jurisdictions create a buffer in the housing element inventory of at least 15 percent (in the case of Morgan Hill, equivalent to an additional 156 3 City of Morgan Hill. City of Morgan Hill Housing Element 2023-2031. Appendix H1. Housing Needs Assessment. 4 Ibid. 5 Ibid.
6 Ibid.
7 Ibid.

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2023-2031 Housing Element Update 12 Initial Study/Addendum City of Morgan Hill October 2022
units allocated to the City for the 2023-2031 period). Table 3.3-1 below presents the City’s RHNA and 15 percent buffer broken down by household income category.

Table 3.3-1: City of Morgan Hill RHNA by Household Income Category Household Income Category1 RHNA 15 Percent
Buffer
Combined
Housing Targets2
Very Low (<50% AMI) 262 39 301
Low (50-80% AMI) 151 23 174
Moderate (80-120% AMI) 174 26 200
Above Moderate (>120% AMI) 450 68 518
Total Housing Units 1,037 156 1,193
Source: Association of Bay Area Governments. Final Regional Housing Needs Allocation (RHNA) Plan: San Francisco Bay Area, 2023-2031. December 2021.

Notes:
1 The AMI (area median income) in Morgan Hill as of 2020 was $128,373. Source: U.S. Census Bureau. “QuickFacts Morgan Hill city, California”. Accessed May 18, 2022. https://www.census.gov/quickfacts/fact/table/morganhillcitycalifornia,sanbrunocitycalifornia/POP010210 2 Combined targets calculated by adding the City’s RHNA with the proposed 15 percent buffer.

PLANNED AND ENTITLED PROJECTS

3.4.1 Pipeline Residential Capacity
The City has a significant pipeline of development projects that are seeking entitlements or are entitled and actively pursuing construction, as summarized in Table 3.4-1 and shown on Figure

3.4-1). As of March 1, 2022, there were an estimated 1,821 housing units in the pipeline (planned or entitled) that are counted toward meeting the RHNA, which include single-family dwellings, deedrestricted affordable units, market rate condominiums and multi-unit development, and individual affordable housing developments (refer to Table 3.4-1). The City has received applications for Building Permits for several projects identified in Table 3.4-1, totaling 1,068 units (units are denoted by *).

In addition to the pipeline of development projects, the City has also identified a number of parcels where future residential development could occur, these parcels account for 391 housing units. These are reflected in Table 3.4-1 as “No Project.” As shown in Table 3.4-1, the City’s total residential capacity, including planned or entitled projects and future residential development, is 2,212 units.

Page 40 of 328 ends

Source: City of Morgan Hill, GIS, April 26, 2022.
0 .251 1.5 2 Miles
City of Morgan Hill
Parcels
CITY OF MORGAN HILL HOUSING ELEMENT PROJECT LOCATIONS FIGURE 3.4-1 City of Morgan HillMorgan Hill Housing Element Update 13 Initial Study/Addendum October 2022

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2023-2031 Housing Element Update 14 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
1 MontereyLucky Shing
Manzinita
Park SR2020-
0017
Monterey
Road
(APN 725-
010-18)2

5.83 MUFle
x
MU-F
(PD) 57 10 - - - 67
2 E. DunneYoung
(Andalusia)
SR2018-0020
East
Dunne
Avenue
(APNs
726-020-
51 & 726-
020-52)3

2.33 RAM RAM 42 1 3 - - 46*
2 No Project 726-020-
12 4.84 MUFle
x
PUD - 19 19 19 19 76
2 No Project 726-020-
16 2.3 RAM RAM - 9 9 9 9 36
3 No Project 726-070-
21 3.4 RDM RDM 9,000 11 2 - - - 13
4 Dakota-Dunne
SR2021-0003
761
Dakota
Drive
(APN
726-090-
24)2

1.22 RDM RDM
7,000 3 3 - - - 6
5 Depot-Latala
(Hale Lumber)
17020
Depot

2.05 MU MU-D 49 - - - - 49*

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2023-2031 Housing Element Update 15 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
SR2019-0003 Street
(APN 726-
130-49)3
6 No Project 726-230-
18 2.52 MU MU-N - 10 10 10 10 40
6 No Project 726-230-
19 0.87 MU MU-N -- 3 4 3 4 14
6 No Project 726-230-
20 0.91 MU MU-N - 3 4 3 4 14
7 Monterey-City
Ventures
SR2019-0026
18110
Monterey
Road
(APN 726-
250-06)3

6.69 MUFle
x
MU-F 86 15 - - - 101*
8 Jarvis-MH
Apartments
(Braddock &
Logan)
SR2019-0015
Monterey
Road
(APN 726-
250-95)3

19.5 MUFle
x
MU-F - 311 - 78 - 389*
9 MontereyMinor
(Jemcor)
SR2020-0027
18960
Monterey
Road
(APN
726-360-
59)3

7.52 RAL /
MUFle
x
RAL
3,500 /
MU-F
- 3 196 25 25 249*

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2023-2031 Housing Element Update 16 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
10 No Project 726-410-
65 0.9 MUFle
x
MU-F - 3 4 3 4 14
10 MontereyKerley
(DeNova
Homes)
SR2021-0014
19380
Monterey
Road
(APNs
726- 420-
01 through
726-420-
03)1

4.6 MUFle
x
MU-F 79 14 - - - 93
11 Half-Dividend
(Crosswinds)
SR2020-0010
Half Road
and
Mission
(APNs
728-300-
01 through
728-300-
04)1

28.88 RAL RAL
3,500 229 40 - - - 269
12 Cochrane-Toll
Brothers
SR2021-0011
Cochrane
Road
(APNs
728-340-
32 & 728-
340-33)3

54.42 RDL RDL
20,000 114 23 - - - 137*

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2023-2031 Housing Element Update 17 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
13 Tilton-Lee
Schmidt
SR2018-0009
280 Tilton
Avenue
(APN 764-
090-04)2

0.78 RDL RDL
12,000 1 1 - - - 2
14 MontereyFirst
Community
Housing
(Magnolias)
SR2021-0005
17965
Monterey
Road
(APN 764-
120-06)2

1.54 MUFle
x
MU-F - 1 14 9 42 66
15 CampoliSquires
SD2021-0002
185
Campoli
Drive
(APN
764-240-
05)2

0.74 RDM RDM
7,000 1 - - - - 1
15 SanchezBrewer
SD2020-0001
185
Sanchez
Drive
(APN
764-240-
76)2

0.24 RDM RDM
7,000 1 - - - - 1
15 Old MontereyAppletree
(Kelly Vo)
18755
Monterey
Road
(APN

1.13 RDM RDM
7,000 5 2 - - - 7

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2023-2031 Housing Element Update 18 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
AAE2021-
0002
764-240-
61)2
16 SpringGinacola
SR2020-0028
335
Spring
Road
(APN
767-110-
30)3

2.78 RAL RAL
3,500 19 3 - - - 22*
17 MontereyMorgan Hill
Senior
Housing
SR2020-0005
16685
Church
Street
(APN
817-020-
67)2

1.89 MUFle
x
MU-F - 1 25 13 43 82
18 Edes-Alcini
(TTLC
Morgan Hill)
SR2022-0001
Monterey
Road
(APN 767-
180-46)1

1.1 MUFle
x
MU-F 18 3 - - - 21
19 LlagasStrolata
Properties
(Silvas)
SR2018-0025
1110
Llagas
Road
(APN 773-
320-13)2

4.6 RE RE 1 4 - - - - 4
20 WatsonvilleHordness
(Crossings at
15440
Monterey
Road

8.19 MUFle
x
MU-F
(PD) - 1 - 24 48 73*

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2023-2031 Housing Element Update 19 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.4-1: Pipeline Residential Capacity
Location
Id Project Name Address (APN)
Size
(acres)
General
Plan Zoning
Housing Capacity by Income
Above Total
Moderate Moderate Low Very Low
Extremely
Low
Monterey/Roya
l Oaks Village)
SR2020-0023
(APN 779-
040-75)3
21 Tennant-Osito
Holdings
SR2020-0014
215
Tennant
Avenue
(APN 817-
040-59)2

0.99 RAL RAL
3,500 14 2 - - - 16
22 No Project 817-090-
36 5.22 RAM RAM 71 12 - - - 83
22 Lillian
Commons/Ros
ewood
SR2022-0002
Juan
Hernandez
Drive and
Barrett
Avenue
(APN 817-
090-41)1

9.48 MUFle
x
MU-F 111 9 - - - 120
22 No Project 817-090-
55 6.35 RAM RAM -- 25 25 25 26 101
Subtotal 915 529 313 221 234 2,212
Notes:
1 Pending project based on the affordability and unit count within the proposed project expected to be built within the 2023-2031 planning period. 2 Entitled project based on the affordability and unit count of the approved development expected to be built within the 2023-2031 planning period. 3 Affordability and unit count of the approved development based on Building Permits submitted to City of Morgan Hill and expected to be built within the 2023- 2031 planning period.
* The City of Morgan Hill has received Building Permit applications for this project.

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2023-2031 Housing Element Update 20 Initial Study/Addendum City of Morgan Hill October 2022

3.4.2 Pipeline Residential Potential
It is plausible that not all the projects summarized in Table 3.4-1 would be completed during the 6th Cycle of 2023-2031. Therefore, the City evaluated completion rates of pipeline development projects during the 5th Cycle (2015-2022). For discretionary entitlements, completion rates were found by drawing upon all planning entitlement applications and approvals and finding the percentage of those projects which have obtained a building permit and therefore reached completion. This analysis found that entitlement applications had a completion rate of 88.7 percent, while approved entitlements had a completion rate of 91.7 percent. For building permit applications and approved permits, completion rates were established based on evaluating all residential building permits issued for new residential units, as well as all issued building permits that have been finaled/received a certificate of occupancy, from January 1, 2015, through December 31, 2020. The report found that building permits have a 99.2 percent completion rate for issued permits. Those completion rates were then applied to the current pipeline to determine the number that would be expected to be completed within the next eight years, as summarized by income category in Table 3.4-2 below.

Table 3.4-2: Pipeline Residential Potential by Income Category Above
Moderate Moderate Low Very Low Extremely
Low Total
Active Planning
Entitlements 388 59 - - - 447
Approved Planning
Entitlements with No
Building Permit
79 18 36 20 78 231
Building
Permit
Applications
308 356 197 126 73 1,060
Total 775 433 233 146 151 1,738

HOUSING CAPACITY TO ACCOMMODATE RHNA
State law requires each jurisdiction to demonstrate that sufficient land is zoned to provide housing capacity that is adequate to meet the RHNA for each income level. As shown in Table 3.4-1, the City has a total residential development pipeline capacity (planned or entitled) of 1,821 units. After incorporating the success criteria percentages described above in Section 3.1.4.1 Planned and Entitled Projects, the City has a total residential development pipeline potential of 1,738 units, which is sufficient capacity to accommodate the RHNA of 1,037 units and the additional 156 units required for the buffer (refer to Table 3.5-1).

In addition to the planned or entitled units shown in Table 3.4-1, the City has identified a number of parcels where future residential development could occur, these parcels account for 391 housing units. These are reflected in Table 3.4-1 as “No Project.”

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2023-2031 Housing Element Update 21 Initial Study/Addendum City of Morgan Hill October 2022
Table 3.5-1: Summary of Residential Capacity Compared to RHNA by Income Extremely
Low Very Low Low Moderate Above
Moderate Total
6th Cycle
RHNA 131 131 151 174 450 1,037
Pipeline
Residential
Capacity
158 149 238 443 833 1,821
Pipeline
Residential
Potential
151 146 233 433 775 1,738
Total Capacity 151 146 233 433 775 1,738
Surplus(+)/
Deficit(-) +20 +15 +82 +259 +325 +701

BUILDOUT PROJECTIONS
The full buildout residential growth projections assumed in the Morgan Hill 2035 General Plan are summarized in Table 3.6-1. All of the City’s pipeline residential capacity (1,821 units), as well as the additional 391 housing units allowed on the sites the City has also identified where future residential development could occur, as reflected in Table 3.4-1 as “No Project,” falls within the buildout projections assumed in the Morgan Hill 2035 Final EIR (or a total of 2,212 units). Therefore, implementation of the Housing Element Update would not exceed the City’s full buildout projection identified in the 2035 General Plan. For these reasons, no changes are proposed to the General Plan Land Use diagram to accommodate the housing needed to meet the City’s RHNA target, given adequate available land exists under the currently adopted General Plan with appropriate residential and mixed-use land use designations.

Table 3.6-1: 2035 General Plan Population Projections
Existing
Development
Net Growth Full Buildout
Projection
Housing Units
Single-Family 10,821 2,360 13,181
Multi-Family 4,148 5,071 9,219
Population
Residents 45,171 22,886 68,057
Source: City of Morgan Hill. Morgan Hill 2035 DEIR. Table 3-2. January 2016.

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2023-2031 Housing Element Update 22 Initial Study/Addendum City of Morgan Hill October 2022
SECTION 4.0 ENVIRONMENTAL SETTING, CHECKLIST, AND

IMPACT DISCUSSION
This section presents the discussion of impacts related to the following environmental subjects in their respective subsections:

4.1 Aesthetics

4.2 Agriculture and Forestry Resources

4.3 Air Quality

4.4 Biological Resources

4.5 Cultural Resources

4.6 Energy

4.7 Geology and Soils

4.8 Greenhouse Gas Emissions

4.9 Hazards and Hazardous Materials

4.10 Hydrology and Water Quality

4.11 Land Use and Planning

4.12 Mineral Resources

4.13 Noise

4.14 Population and Housing

4.15 Public Services

4.16 Recreation

4.17 Transportation

4.18 Tribal Cultural Resources

4.19 Utilities and Service Systems

4.20 Wildfire

4.21 Mandatory Findings of Significance
The discussion for each environmental subject includes the following subsections:
• Environmental Setting – This subsection 1) provides a brief overview of relevant plans, policies, and regulations that compose the regulatory framework for the project and 2) describes the existing, physical environmental conditions at the project site and in the surrounding area, as relevant.
• Impact Discussion – This subsection 1) includes the recommended checklist questions from Appendix G of the CEQA Guidelines to assess impacts and 2) discusses the project’s impact on the environmental subject as related to the checklist questions. For significant impacts, feasible mitigation measures are identified. “Mitigation measures” are measures that will minimize, avoid, or eliminate a significant impact (CEQA Guidelines Section 15370). Each impact is numbered to correspond to the checklist question being answered. For example, Impact BIO-1 answers the first checklist question in the Biological Resources section.

Mitigation measures are also numbered to correspond to the impact they address. For example, MM BIO-1.3 refers to the third mitigation measure for the first impact in the Biological Resources section. This Initial Study/Addendum evaluates the potential environmental impacts of the proposed 2023-2031 Housing Element (as described in Section

3.0 Project Description) to determine whether the Project is within the scope of the development program described in the 2035 General Plan and evaluated in the Morgan Hill 2035 FEIR, and to determine whether the project has the potential to result in any new or substantially more severe environmental impacts.

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2023-2031 Housing Element Update 23 Initial Study/Addendum City of Morgan Hill October 2022

AESTHETICS

4.1.1 Environmental Setting
Regulatory Framework
State
Senate Bill 743
Senate Bill (SB) 743 was adopted in 2013 and requires lead agencies to use alternatives to level of service (LOS) for evaluating transportation impacts, specifically vehicle miles traveled (VMT). SB 743 also included changes to CEQA that apply to transit-oriented developments, as related to aesthetics and parking impacts. Under SB 743, a project’s aesthetic impacts will no longer be considered significant impacts on the environment if:
• The project is a residential or mixed-use residential project, and • The project is located on an infill site within a transit priority area.8 SB 743 also clarifies that local governments retain their ability to regulate a project’s aesthetics impacts outside of the CEQA process.

Senate Bill 330
SB 330 was adopted in 2019 to respond to the California housing crisis. The bill establishes regulations that sunset on January 1, 2025. SB 8 extends the sunset provision to January 1, 2030.

Under SB 330, affected cities9
are prohibited from rezoning or imposing new development standards that would reduce capacity for housing or adopting new design standards that are not objective.

Objective zoning standards and objective design review standards involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

Streets and Highway Code Sections 260 through 263
The California Scenic Highway Program (Streets and Highway Code, Sections 260 through 263) is managed by the California Department of Transportation (Caltrans). The program is intended to 8 An “infill site” is defined as “a lot located within an urban area that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins, or is separated only by an improved public right-ofway from, parcels that are developed with qualified urban uses.” A “transit priority area” is defined as “an area within 0.5 mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the planning horizon included in a Transportation Improvement Program or applicable regional transportation plan.” A “major transit stop” means “a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.” Source: Office of Planning and Research. “CEQA Review of Housing Projects Technical Advisory.” Accessed April 19, 2022. https://opr.ca.gov/docs/20190208-TechAdvisory-Review_of_Housing_Exemptions.pdf. 9 SB 330 defines an “affected city” as any city that is located in an urbanized area or urban cluster, as designated by the United States Census Bureau.

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2023-2031 Housing Element Update 24 Initial Study/Addendum City of Morgan Hill October 2022
protect and enhance the natural scenic beauty of California highways and adjacent corridors through special conservation treatment. There are no state-designated scenic highways in Morgan Hill.

In Santa Clara County, the one state-designated scenic highway is SR 9 from the Santa Cruz County line to the Los Gatos City Limit. Eligible State Scenic Highways (not officially designated) include SR 17 from the Santa Cruz County line to SR 9, SR 35 from Santa Cruz County line to SR 9, Interstate 280 from the San Mateo County line to SR 17, and the entire length of SR 152 within the County.

Local
Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts due to aesthetic and visual impacts. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Aesthetics
Policy Description
NRE-1.1 Natural Features. Preserve outstanding natural features, such as the skyline of a prominent hill and rock outcroppings.

NRE-2.1 Hillside and Ridgeline Views. Protect views of hillsides, ridgelines, and prominent natural features surrounding the City. These features help define the City’s historic rural character, sense of place, image and identity.

NRE-2.2 El Toro Mountain as Landmark Feature. Retain the City's unique identity by preserving its landmark natural feature, El Toro Mountain.

NRE-2.3 Scenic Hillside Preservation. Preserve scenic hillsides around the City in an undeveloped state, wherever feasible. Provide for retention of hillside areas as open space through the dedication and/or purchase of scenic easements and/or open space easements, transfer of development rights and other appropriate measures.

NRE-2.4 Building Distance below Ridgelines. Limit all building pads located within the hillside areas to an elevation at or below the 80-foot vertical drop from the ridgeline.

NRE-5.3 Natural State of Streamside and Riparian Areas. Retain natural streamside and riparian areas in their natural state in order to preserve their value as percolation and recharge areas, natural habitat, scenic resources, and recreation corridors, and to stabilize banks. (South County Joint Area Plan 15.08)
CNF-8.1 High Quality Design. Require all development to feature high quality design that enhances the visual character of Morgan Hill.

CNF-8.2 Design Features. Encourage design features and amenities in new development and redevelopment, including but not limited to:
• Highly connected street layouts, supporting multiple paths of travel for all modes. • Cluster buildings to create useable open space.
• Abundant landscaping.
• Attractive transitions between uses.
• Comfortable pedestrian facilities that promote a high level of pedestrian activity. • Distinctiveness and variety in architectural design.

CNF-8.3 Changes in Building Scale. Discourage abrupt changes in building scale. A gradual transition between low-rise to mid-rise buildings should be achieved by using the low-rise

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2023-2031 Housing Element Update 25 Initial Study/Addendum City of Morgan Hill October 2022
Morgan Hill 2035 General Plan Policies: Aesthetics
Policy Description
buildings at the edge of the project site. Consider the relationship of buildings to the street, to one another and to adjacent structures and land uses.

CNF-8.7 Design Sensitivity. Ensure that new development is sensitive to the character of adjacent structures and the immediate neighborhood.

NRE-2.1 Hillside and Ridgeline Views. Protect views of hillsides, ridgelines, and prominent natural features surrounding the City. These features help define the City’s historical rural character, sense of place, image, and identity.

City of Morgan Hill Municipal Code
Morgan Hill’s Municipal Code regulates development in the City. The following provisions from the Municipal Code pertain to the visual effects of development:
• Section 18.76.060, Glare, establishes a regulation that no use or activity shall produce direct or sky-reflected glare that is visible at a distance of five hundred feet from such establishment or use.
• Chapter 15.40, Building Security, contains provisions, including lighting requirements, to protect the public by providing safeguards to protect property from unlawful trespass. Section

15.40.310 requires that open parking lots for nonresidential uses shall be illuminated with an intensity of at least two footcandles. Section 15.40.400 requires that open parking lots and carports for hotels and multifamily residential uses shall be illuminated with an intensity of at least two footcandles. Section 15.40.420 requires that aisles and passageways within the building complex shall be illuminated with an intensity of at least twenty-five one-hundredths (0.25) footcandles.
• Title 18, Zoning, contains site development standards for each zoning district, such as minimum lot area, maximum building coverage, maximum floor area ratio (FAR), minimum setbacks, maximum height, and yard size.
• Section 18.108.040, Design Permit, establishes the City’s design permit process for the following types of projects: residential projects with three or more dwelling units; one or more new residential unit on a sensitive site; significant non-residential buildings; significant additions or other physical improvements visible from a public right-of-way; additions to residences on a sensitive site; significant exterior changes; grading of more than 50 cubic yards on slopes greater than 10 percent; new accessory structures on sensitive land; City projects; and other projects determined by the Community Development Director to be significant. The city shall evaluate applications to ensure that they satisfy the design review criteria, comply with the development standards of the zoning district, conform to policies of the general plan and any applicable specific plan, and are consistent with any other policies or guidelines the city council may adopt for this purpose. Most design review approval is granted by the Community Development Director, although in some instances projects are referred to the Planning Commission or City Council.
• Section 18.30.040, Hillside Combining District, establishes development standards for all areas within the City having an average slope of ten percent or greater to ensure for the orderly development of hillside areas while preserving significant environmental features and protecting public safety in geologically unstable areas.

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2023-2031 Housing Element Update 26 Initial Study/Addendum City of Morgan Hill October 2022
Morgan Hill Downtown Specific Plan
The Morgan Hill Downtown Specific Plan, November 2009, encompasses 18 blocks and approximately 110 acres in downtown Morgan Hill in an area centered on Monterey Road. The urban design goals of the Downtown Specific Plan include:
• Creating an active Downtown village through intensifying residential, retail, restaurant, and entertainments uses, within an urban setting improved with unified landscaping and streetscape improvements.
• Making Monterey Road and Third Street more pedestrian and retail friendly, and improve other roads with better street lighting and streetscape improvements. • Strengthening Downtown’s identity and scale with new design related to a traditional character.
• Creating visual and physical linkages to Downtown with landscaping, bike paths and entry are features; and with linking downtown commercial uses to common parking areas available to the general public.

Residential Development Design and Development Standards The City’s Residential Development Design and Development Standards articulate project design requirements for all residential and mixed-use developments and have been developed to meet the requirements of "Objective Standards" under SB 330 and are consistent with the Morgan Hill 2035 General Plan. These standards are utilized to detail the review process by clearly stating the City of Morgan Hill’s objectives for high quality, residential projects that are aesthetically pleasing, livable, sustainable, well-connected to neighborhood services. All residential and mixed-use projects are required to meet the intent of these standards unless it can be demonstrated to the satisfaction of the decision-making body for the development project that meeting the intent of the Residential Development Design and Development Standards is physically infeasible or detrimental to the environmental quality of the project or surrounding area. The Residential Development Design and Development Standards shall not apply to projects determined to be exempt from Design Review in accordance with Section 18.108.040.F of the City’s Municipal Code.

Existing Conditions
Visual Character
Morgan Hill’s location along the valley floor, with views of grassy and wooded hillsides to the east and west, provides a visual connection to the natural world. The slopes that flank Morgan Hill play a major role in shaping the character of the City. Agricultural lands have also been an important contributor to the City’s rural character. Undeveloped and agricultural land separates the City from San Jose to the north and San Martin to the south. The rural character of these lands helps to define and distinguish the urbanized City area from other urban and rural county areas.

Scenic Corridors and Vistas
The existing General Plan does not designate official scenic view corridors or vistas. However, the General Plan recognizes that undeveloped hillsides (i.e., El Toro Mountain) visible from the valley floor are scenic characteristics of the area, and that views of prominent hillsides should be preserved.

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2023-2031 Housing Element Update 27 Initial Study/Addendum City of Morgan Hill October 2022
Uninterrupted scenic vistas to the surrounding hillsides exist throughout the City, and are primarily in agricultural areas (i.e., the area east of Highway 101, area southeast of Monterey Road and Watsonville Road, or the area south of Edmundson Avenue), open spaces, and other areas that remain largely undeveloped. These views are considered scenic vistas.

Light and Glare
Sources of light and glare are abundant in the urban environment of the Housing Element Update project locations, including but not limited to streetlights, parking lot lights, security lights, vehicular headlights, internal building lights, and reflective building surfaces and windows. Light pollution in Morgan Hill is restricted primarily to street lighting along local streets, and to night-time illumination of shopping centers. Light spillage from residential developments is mostly screened by trees.

Housing Element Update Project Locations
There are a total of 31 Housing Element Update project locations with several of the parcels corresponding to one Identification number (e.g., Location 2, 6, and 15). Out of the 31 individual Housing Element Update project locations, four of the locations are pending entitlement, nine of the locations have no project associated with the parcel, and the remaining 18 of the locations are in the process of being entitled. The project locations that are entitled have already undergone a separate project-level analysis pursuant to the CEQA Guidelines; therefore, Locations 1, 2 (one of the three parcels [Project Number SR2018-0020]), 4, 5, 7, 8, 9, 12, 13, 14, 15 (all three parcels are entitled), 16, 17, 19, 20, and 21 are not discussed further. All the project locations are within the city boundaries and in proximity to existing urban development and the roadway network.

Pending Entitlement
The following Housing Element Update project locations are pending entitlement: Locations 10, 11, 18, 22. Each location is discussed individually below.

Location 10 is an approximately 4.6-acre site that includes APNs 726-42-002 (19380 Monterey Road) and 726-42-003 (19400 Monterey Road), which are located adjacent to Monterey Road and southeast of the Monterey Road and Burnett Avenue intersection. The parcels are currently commercial developments for the selling, renting, and servicing of family recreational vehicles. The parcels for Location 10 consist of parking lots for storage of vehicles and temporary garage buildings. The surrounding land uses consist of commercial uses to the north and south, and along the eastern boundary of the project location is a mobile home park. The southern property is a continuation of the family recreational vehicle commercial development. The parcels are not located within a designated scenic view corridor or visible from a designated scenic highway.

Location 11 is an approximately 28.9-acre site that includes APNs 728-30-001, 728-30-002, 728-30- 003, and 728-30-004, which are located at the intersection of Half Road and Mission View Drive.

The parcels are surrounded by developed and undeveloped parcels of land. The parcels to the north and west are undeveloped, flat, and covered with grasses. The parcel to the north contains a small fence which surrounds the utilities on the property. Immediately to the west of the site is a graveled road (future DePaul Drive). South of the site is a paved two-way roadway (Half Road), an open grassland area and a one-story wood-framed structure with a hipped roof. To the east of the site is a paved road (Mission View Drive) and an orchard with three one-story structures with gable-styled

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2023-2031 Housing Element Update 28 Initial Study/Addendum City of Morgan Hill October 2022
roofs facing Half Road. Modern two-story residences made of stucco and hipped roofs are also east of Mission View Drive. The parcels are not located within a designated scenic view corridor or visible from a designated scenic highway.

Location 18 is an approximately 1.1-acre site that includes APN 767-18-046 and is located north of Edes Street and west of West Little Llagas Creek trail. The parcel is undeveloped and located in between commercial uses. To the east are a two-story strip mall and a single-story car wash with a gift shop. A mix of development and paved asphalt border the site’s northern boundary and the Morgan Hill Unified School District Transportation Department, which is a parking lot for school buses, is located west of the site past West Little Llagas Creek trail. The parcel is not located within a designated scenic view corridor or visible from a designated scenic highway.

Location 22 is an approximately 9.5-acre site that includes APN 817-09-041 and is located west of Highway 101 and southeast of the Juan Hernandez Drive and Barrett Avenue intersection. The parcel is flat and mostly covered with non-native grasses with several trees located on the northern portion of the site and along the west property line near the existing single-story medical office buildings.

The medical office buildings are flat-roofed grey buildings, modern in design, with clearstories and yellow roof. The parcel is surrounded by developed and undeveloped parcels. The parcel directly adjacent to the south of the project site is flat, undeveloped, and covered with grasses. There are twostory attached single-family stucco residences located west of the site on Juan Hernandez Drive. To the north and northeast of the site, across Barrett Avenue, there are additional two-story attached single-family stucco residences, as well as a public elementary school. The parcel is not located within a designated scenic view corridor or visible from a designated scenic highway.

No Project Locations
The following Housing Element Update project locations are not yet entitled and there are no pending projects associated with the parcel: Locations 2, 3, 6, 10, and 22, however each is planned for housing under the current General Plan. Each location is discussed individually below.

Location 2 consists of APNs 726-02-012, 726-02-016, which equate to approximately 7.1-acres. The parcels are vacant and undeveloped parcels located northwest of the East Dunne Avenue and Walnut Grove Drive intersections. The parcels are flat with several trees planted throughout APN 726-02- 012 and ruderal vegetation through both APNs. The surrounding land uses include a coffee shop and pharmacy to the southeast of the parcels at the East Dunne Avenue and Walnut Grove Drive intersections. To the north are single-family residences and undeveloped parcels and to the west is a preschool and a residential development under construction. East Dunne Avenue borders the southern boundary of the parcel. The parcels are not located within a designated scenic view corridor or visible from a designated scenic highway.

Location 3 is a 3.4-acre site located at 17364 Walnut Grove Drive (APN 726-04-021) west of Highway 101 and east of Walnut Grove Drive. The parcel is vacant and undeveloped with only ruderal vegetation and trees on-site. Surrounding land uses include a single-family residential neighborhood to the west and north and a car dealership to the south. Highway 101 borders the eastern boundary. The parcel is not located within a designated scenic view corridor or visible from a designated scenic highway.

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2023-2031 Housing Element Update 29 Initial Study/Addendum City of Morgan Hill October 2022
Location 6 consists of APNs 726-23-018 (95 East Main Avenue), 726-23-019, and 726-23-020 that total approximately 4.3-acres. APNs 726-23-018 and 726-23-019 are adjacent parcels located northeast of the Main Avenue and Mclaughlin Avenue intersection. The existing uses on these parcels include a single-story construction equipment rental store (95 East Main Avenue) with parking lots and the other parcel is a private parking lot and storage area. The surrounding land uses include a senior three-story housing development to the north, an office park with four buildings to the east, and commercial buildings to the west. In addition, the Union Pacific railroad borders the parcels eastern boundaries. APN 726-23-020 is a separate L-shaped parcel located southwest of the Monterey Road and Central Avenue intersections. It is a vacant, undeveloped parcel with ruderal vegetation surrounded by commercial uses. Adjacent to the northern parcel boundary is a donut shop and parking lot and to the south is a residential multi-family building. Britton Middle School is to the west and a senior housing development is to the east. None of the parcels are located within a designated scenic view corridor or visible from a designated scenic highway.

Location 10 is an approximately 0.9-acre parcel located at 25 Pebbles Avenue (APN 726-41-065), which is northeast of the Monterey Road and Peebles Avenue intersection. The parcel is vacant with some of the parcel paved and the remaining part of the parcel consisting of grasses, shrubs, and trees.

A chicken wire mesh fence outlines the perimeter of the parcel. To the north of the parcel is a Budget Inn motel with two rectangular buildings and a parking lot in-between the two buildings. To the east is a commercial building with associated storage buildings and to the south is a towing company and its associated parking lot. Monterey Road borders the western boundary of the parcel and further west is the Union Pacific rail line. The parcel is not located within a designated scenic view corridor or visible from a designated scenic highway.

Location 22 is an approximately 5.5-acre parcel located southwest of the Juan Hernandez Drive and Saint James Drive intersection. The parcel is vacant and undeveloped. Surrounding land uses include a single-family residential neighborhood to the north, vacant parcels to the east (these parcels are part of Location 22 and will be developed in the near future) and south, and commercial buildings to the west of Butterfield Boulevard. The parcel is not located within a designated scenic view corridor or visible from a designated scenic highway.

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4.1.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same
Impact as
Approved
Project
Less
Impact than
Approved
Project
Except as provided in Public Resources Code
Section 21099, would the project:
a) Have a substantial adverse effect on a
scenic vista?
b) Substantially damage scenic resources,
including, but not limited to, trees, rock
outcroppings, and historic buildings within
a state scenic highway?
c) In non-urbanized areas, substantially
degrade the existing visual character or
quality of public views of the site and its
surroundings?10 If the project is in an
urbanized area, would the project conflict
with applicable zoning and other
regulations governing scenic quality?
d) Create a new source of substantial light or
glare which would adversely affect day or
nighttime views in the area?
Morgan Hill 2035 Final EIR – Aesthetics Conclusions
Aesthetic values are, by their nature, subjective. Opinions as to what constitutes a degradation of visual character would differ among individuals. One of the best available means for assessing what constitutes a visually acceptable standard for new buildings are the City’s design standards and implementation of those standards through the City’s Design Review process, which is established in Section 18.108.040 of the City’s Municipal Code. The following discussion addresses the proposed changes to the visual setting of the Housing Element Update project locations and factors that are part of the community’s assessment of the aesthetic values of a project’s design, consistent with the assumptions in the Morgan Hill 2035 FEIR. Similar to the General Plan build-out evaluated in the Morgan Hill 2035 FEIR, the Housing Element Update would result in less than significant aesthetics impacts, as described below.

Impact AES-1: The project would not have a substantial adverse effect on a scenic vista. [Same Impact as Approved Project (Less than Significant Impact)] Implementation of the Housing Element Update would facilitate new residential construction in order to meet the City’s RHNA allocation. Residential development under the Housing Element Update would be on lands that are already developed, or on lands contiguous to urban uses and major roadways. As discussed in Section 4.1.1.2 Existing Conditions, while the General Plan does not designate official scenic vistas, the General Plan states that important scenic views in the City 10 Public views are those that are experienced from publicly accessible vantage points.

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2023-2031 Housing Element Update 31 Initial Study/Addendum City of Morgan Hill October 2022
include views of the hillside and mountain areas. In particular, the General Plan recognizes El Toro Mountain as a landmark natural feature that exists in a rugged, undeveloped state. The General Plan also states that the slopes surrounding the City play a major role in shaping the City’s character. The Morgan Hill 2035 FEIR concluded that with implementation of General Plan goals, policies, and actions (Goal NRE-1, Policy NRE-1.1, Goal NRE-2, Policy NRE-2.1, Policy NRE-2.2, Policy NRE2.3, Policy NRE-2.4, Action NRE-2.A, Action NRE-2.B, Action NRE-2.E, Policy NRE-5.3, and Action NRE-5.B) that would protect scenic views and other scenic resources, impacts on scenic vistas would be less than significant. Residential development under the Housing Element Update would be designed consistent with these goals, policies, and actions in that none of the project locations are on or near El Toro Mountain or other hillside areas of the City. For these reasons, the Housing Element would not result in new or substantially more severe impacts to scenic vistas than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact AES-2: The project would not substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway. [Same Impact as Approved Project (No Impact)] As discussed in Section 4.1.1.2 Existing Conditions, there are no designated scenic highways in Morgan Hill or its SOI. The Morgan Hill 2035 FEIR concluded that buildout under the General Plan (including the Housing Element) would have no impact to scenic resources within a state scenic highway. [Same Impact as Approved Project (No Impact)]
Impact AES-3: The project would not substantially degrade the existing visual character or quality of public views of the site and its surroundings. [Same Impact as Approved Project (Less than Significant Impact)]
Development under the General Plan (including the Housing Element) would have a significant impact if it would substantially change the existing visual character in the vicinity such that the visual quality of those areas would be damaged. Undeveloped sites that are designated for development would be the locations with the greatest potential for a change in visual character. The Morgan Hill 2035 FEIR concluded that new development allowed by the General Plan would be designed consistent with General Plan policies that promote high-quality design and visual compatibility, as well as the design review requirements of the City’s Residential Development Design and Development Standards (Policy CNF-8.1, Policy CNF-8.3, and Policy CNF-8.7).

Adherence to these policies and standards would ensure that new development (including the Housing Element Update) is designed to be compatible with existing development and uses highquality building materials and design techniques. Therefore, implementation of the Housing Element Update would not result in new or substantially more severe impacts to the existing visual character in that the Housing Element does not propose housing on any project locations that are not currently designated for housing under the Morgan Hill 2035 General Plan. [Same Impact as Approved Project (Less than Significant Impact)]

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Impact AES-4: The project would not create a new source of substantial light or glare which would adversely affect day or nighttime views in the area. [Same Impact as Approved Project (Less than Significant Impact)]
The Morgan Hill 2035 FEIR found that significant light or glare impacts would result if new development would create new sources of light or glare that would adversely affect day or nighttime views. New lighting from new development allowed by the General Plan (including the Housing Element Update) would come mainly from commercial areas, safety lighting, building-mounted lights, illuminated signage, parking lot and streetlights, and traffic on major arterials. New glare would come mainly from building materials and parked cars. Future development allowed by the General Plan (including the Housing Element Update) would also incrementally increase glare due to the new building surfaces and parked cars.

The Morgan Hill 2035 FEIR concluded that future development (including the Housing Element Update) would be subject to the City’s Residential Development Design and Development Standards.

As part of this process, future development (including the Housing Element Update) would be reviewed for consistency with the objective standards identified in the City’s Residential Development Design and Development Standards, which includes standards and guidelines regarding the appropriate use of lighting and avoidance of glare from lighting and other sources. Development would also be required to be consistent with the California Building Code standards for outdoor lighting, which are intended to reduce light pollution and glare by regulating light power and brightness, shielding, and sensor controls. Adherence to these standards and guidelines would ensure that lighting is shielded to avoid glare and light spillage and incorporates technologies such as timers to avoid excessive lighting. For these reasons, in addition to the fact that the Housing Element does not propose housing on any parcels that are not currently designated for housing under the Morgan Hill 2035 General Plan, the Housing Element Update would not create a new source of substantial light or glare than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]

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2023-2031 Housing Element Update 33 Initial Study/Addendum City of Morgan Hill October 2022

AGRICULTURE AND FORESTRY RESOURCES

4.2.1 Environmental Setting
Regulatory Framework
State
Farmland Mapping and Monitoring Program
The California Department of Conservation’s Farmland Mapping and Monitoring Program (FMMP) assesses the location, quality, and quantity of agricultural land and conversion of these lands over time. Agricultural land is rated according to soil quality and irrigation status. The best quality land is identified as Prime Farmland. In CEQA analyses, the FMMP classifications and published county maps are used, in part, to identify whether agricultural resources that could be affected are present on-site or in the project area.11 For environmental review purposes under CEQA, the categories of Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, and Grazing Land constitute 'agricultural land' (Public Resources Code Section 21060.1).

California Land Conservation Act
The California Land Conservation Act (Williamson Act) enables local governments to enter into contracts with private landowners to restrict parcels of land to agricultural or related open space uses.

In return, landowners receive lower property tax assessments. In CEQA analyses, identification of properties that are under a Williamson Act contract is used to also identify sites that may contain agricultural resources or are zoned for agricultural uses.12 Fire and Resource Assessment Program
The California Department of Forestry and Fire Protection (CAL FIRE) identifies forest land, timberland, and lands zoned for timberland production that can (or do) support forestry resources.13 Programs such as CAL FIRE’s Fire and Resource Assessment Program and are used to identify whether forest land, timberland, or timberland production areas that could be affected are located on or adjacent to a project site.14
11 California Department of Conservation. “Farmland Mapping and Monitoring Program.” Accessed April 19, 2022. http://www.conservation.ca.gov/dlrp/fmmp/Pages/Index.aspx. 12 California Department of Conservation. “Williamson Act.” http://www.conservation.ca.gov/dlrp/lca. 13 Forest Land is land that can support 10 percent native tree cover and allows for management of forest resources (California Public Resources Code Section 12220(g)); Timberland is land not owned by the federal government or designated as experimental forest land that is available for, and capable of, growing trees to produce lumber and other products, including Christmas trees (California Public Resources Code Section 4526); and Timberland Production is land used for growing and harvesting timber and compatible uses (Government Code Section 51104(g)).
14 California Department of Forestry and Fire Protection. “Fire and Resource Assessment Program.” Accessed April 19, 2022. http://frap.fire.ca.gov/.

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2023-2031 Housing Element Update 34 Initial Study/Addendum City of Morgan Hill October 2022
Local
Division B29, Agriculture and Resource Management, Chapter 1, Agricultural Rights, Disclosure and Dispute Resolution
This County of Santa Clara code acknowledges that viable agricultural lands existing within the county and the code aims to protect agricultural resources since it is within the public interest to enhance and encourage agricultural operations. The Board of Supervisors of Santa Clara County found that residential and commercial developments adjacent to certain agricultural lands can lead to restrictions on agricultural operations, which is a detriment to the agricultural use. The code further states that no agricultural activity, operation, or facility shall become a nuisance it if was not considered a nuisance before. Therefore, this County code protects the continued operation of agricultural land as is without restriction.

Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts to agriculture resources. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Agriculture and Forestry Resources Policy Description
CNF-4.3 Prerequisites for Urban Development. Consider land adjacent to the City as available for urban development only when it is included within the Urban Service Area and Urban Growth Boundary, can be developed in a manner that will be cost-effective to the City, and will be served by adequate public services and facilities.

CNF-7.1 County General Plan Policies. Promote the maintenance of current County General Plan policies encouraging low-density uses, including large lots and agriculture, for County projects adjacent to the UGB. Encourage the County to retain large minimum parcel sizes, and promote agricultural and open space uses on unincorporated lands.

CNF-7.4 Agricultural Land Use Conflicts. Work with Santa Clara County to minimize potential land use conflicts between urban uses within the UGB and rural lands adjacent to the growth boundary.

CNF-7.5 Inter-Jurisdictional Support for Agriculture. Coordinate measures to enhance the economic viability of agriculture in conjunction with other inter-jurisdictional planning in the South County.

CNF-11.7 Clustering of Residential Units. Encourage the clustering of residential units to provide open space and recreation areas, and to provide buffer areas between different land uses (e.g., industrial and residential).

Morgan Hill Agricultural Lands Preservation Program and Agricultural Mitigation Ordinance The City of Morgan Hill has adopted an Agricultural Lands Preservation Program (Preservation Program) to encourage the preservation and enhancement of open space/agriculture outside of the City boundaries but within the City’s Urban Growth Boundary (UGB) SOI, while identifying certain properties within the boundaries for mitigation and compatible development with sports, recreation, and leisure uses. The ordinance establishes CEQA mitigation procedures to mitigate the loss of agricultural lands under the jurisdiction of the City of Morgan Hill. Mitigation for the loss of farmland with a designated “soil quality” on the FMMP maps provides for payment of an agricultural

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2023-2031 Housing Element Update 35 Initial Study/Addendum City of Morgan Hill October 2022
mitigation fee, acquisition of other agricultural land, or dedication of a permanent agricultural conservation easement on agricultural land and payment of a fee to cover ongoing stewardship and monitoring activities. Mitigation is required at a ratio of 1:1 (meaning one acre of perpetual farmland preservation for each acre of farmland development/conversion). Should a mitigation fee be paid, the City will combine those fees with open space fees to acquire easements near the City boundary.

Existing Conditions
Important Farmland
Table 4.2-1 below summarizes agricultural land within the Morgan Hill City limit and SOI. The majority of agricultural land in the City is classified as grazing land. Most of the prime farmland is located on the eastern side of the City, east of Highway 101.15 Table 4.2-1: Summary of Agricultural Lands within Morgan Hill SOI Farmland Classification Within City Limit
(Acres)
Total
(Acres)
Prime Farmland 314 1,386
Farmland of Statewide
Importance
22 196
Farmland of Local Importance 153 346
Unique Farmland 30 234
Grazing Land 1,265 7,686
Source: City of Morgan Hill. Morgan Hill 2035 DEIR. Page 4.2-11. January 2016.

Two of the Housing Element Update project locations are designated as Prime Farmland, refer to Table 4.2-2 below. Three of the Housing Element Update project locations are designated as Grazing land. The remainder of the project locations are either Urban and Built-up Land16 or Other Land.17 15 City of Morgan Hill. Morgan Hill 2035 DEIR. Figure 4.2-1. January 2016. 16 Land occupied by structures with a building density of at least 1 unit to 1.5 acres, or approximately 6 structures to a 10-acre parcel. This land is used for residential, industrial, commercial, construction, institutional, public administration, railroad and other transportation yards, cemeteries, airports, golf courses, sanitary landfills, sewage treatment, water control structures, and other developed purposes. 17 Land not included in any other mapping category. Common examples include low density rural developments; brush, timber, wetland, and riparian areas not suitable for livestock grazing; confined livestock, poultry or aquaculture facilities; strip mines, borrow pits; and water bodies smaller than forty acres. Vacant and nonagricultural land surrounded on all sides by urban development and greater than 40 acres is mapped as Other Land.

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2023-2031 Housing Element Update 36 Initial Study/Addendum City of Morgan Hill October 2022
Table 4.2-2: Agricultural Land (Housing Element Project Locations) Housing Element Project Location Farmland Classification Acreage Monterey-Lucky Shing Manzanita Park, Location
1 Grazing 5.83
Half-Dividend (Crosswinds), Location 11 Prime Farmland / Grazing 28.88 Cochrane - Toll Brothers (Phases 3 and 4),
Location 12
Prime Farmland 54.42
Monterey-Morgan Hill Senior Housing, Location
17 Grazing 1.89
Llagas-Strolata Properties (Silvas), Location 19 Grazing 4.60 Source: California Department of Conservation. California Important Farmland Finder. Accessed April 19, 2022. https://maps.conservation.ca.gov/dlrp/ciff/
Williamson Act Contracts
According to the Morgan Hill 2035 FEIR, there are a total of 1,703 acres of land that are under ongoing Williamson act contracts within the Morgan Hill City limits and SOI. None of the Housing Element project locations are located on a Williamson Act Parcels (ongoing contract or nonrenewed).18 Forestry Resources
There are no forest or timber resources zoned in the City.19 Isolated woodlands that could fall under California Public Resource Code Section 12220(g) are scattered throughout Morgan Hill, according to CAL FIRE mapping data, with the woodlands primarily located near the Chesbro Reservoir.20Based on Figure 4.2-3 from the Morgan Hill 2035 FEIR, none of the Housing Element Update project locations contain isolated woodlands.21
18 County of Santa Clara. Williamson Act Properties. Accessed July 16, 2022. https://sccplanning.maps.arcgis.com/apps/webappviewer/index.html?id=1f39e32b4c0644b0915354c3e59778ce 19 City of Morgan Hill. Morgan Hill 2035 DEIR. Page 4.2-11. January 2016. 20 Ibid. 21 City of Morgan Hill. Morgan Hill 2035 DEIR. Figure 4.2-3. January 2016

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2023-2031 Housing Element Update 37 Initial Study/Addendum City of Morgan Hill October 2022

4.2.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same
Impact as
Approved
Project
Less
Impact than
Approved
Project
Would the project:
a) Convert Prime Farmland, Unique Farmland,
or Farmland of Statewide Importance
(Farmland), as shown on the maps prepared
pursuant to the Farmland Mapping and
Monitoring Program of the California
Resources Agency, to non-agricultural use?
b) Conflict with existing zoning for
agricultural use, or a Williamson Act
contract?

c) Conflict with existing zoning for, or cause
rezoning of, forest land (as defined in Public
Resources Code Section 12220(g)),
timberland (as defined by Public Resources
Code Section 4526), or timberland zoned
Timberland Production (as defined by
Government Code Section 51104(g))?
d) Result in a loss of forest land or conversion
of forest land to non-forest use?
e) Involve other changes in the existing
environment which, due to their location or
nature, could result in conversion of
Farmland to non-agricultural use or
conversion of forest land to non-forest use?
Morgan Hill 2035 Final EIR – Agriculture and Forestry Resources Conclusions The Morgan Hill 2035 FEIR identified that implementation of the General Plan would result in conversion of 504 acres of Prime Farmland, Unique Farmland, or Farmland of Statewide Importance to non-agricultural use. Given that the only way to fully avoid agricultural impacts associated with General Plan buildout is to not allow development in such areas, mitigation is infeasible and the impact is significant and unavoidable, and the City Council adopted a statement of overriding considerations in approving the 2035 General Plan Update.

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Impact AG-1: The project would convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance, as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use. [Same Impact as Approved Project (Significant and Unavoidable Impact)]
As described in the Morgan Hill 2035 FEIR, 504 acres of Prime Farmland, Unique Farmland, or Farmland of Statewide Importance would be converted into non-agricultural uses. Polices CNF-7.1, CNF-7.4, and CNF-7.5 would serve to protect agricultural lands along with the City of Morgan Hill’s Agricultural Lands Preservation Program and Agricultural Mitigation Ordinance. However, the impact would be significant and unavoidable because buildout of the General Plan would still lead to the conversion of agricultural lands into non-agricultural uses.

As shown in Table 4.2-2 above, two of the Housing Element Update project locations (Location 11 and 12) are designated as Prime Farmland. The two project locations would convert approximately

83.3 acres of Prime Farmland into residential development. Both of these sites (Location 11 and 12) have either undergone project-level environmental review or are currently conducting project-level environmental review. Even with individual project-level review and the application of available mitigation to compensate for the loss of farmland, the two opportunity locations would ultimately convert Prime Farmland to a non-agricultural use. The projects would be required to comply with the Preservation Program’s mitigation measures as detailed in the Agricultural Mitigation Ordinance (Chapter 18.152 of the Municipal Code). Compliance with the City’s Agricultural Mitigation Ordinance would reduce the project’s impacts associated with conversion of Prime Farmland, but not to a less than significant level. There are no other feasible mitigation measures which could be implemented to reduce the loss of agricultural lands to a less than significant level, as CEQA case law affirms the principle that the loss of prime farmland is irreversible, and protection of other existing farmland does not fully offset the lost farmland, but rather prevents further loss. Therefore, the Housing Element Update would have a significant and unavoidable impact on parcels identified as Prime Farmland, Unique Farmland, or Farmland of Statewide Importance, consistent with the 2035 General Plan. For these reasons, the Housing Element Update would not result in new or more severe impacts than identified in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Significant and Unavoidable)]

Impact AG-2: The project would not conflict with existing zoning for agricultural use, or a Williamson Act contract. [Less Impact than Approved Project (Less than Significant Impact)]
The Morgan Hill 2035 FEIR concluded that the proposed General Plan would conflict with a Williamson Act contract because one 16-acre parcel on Olive Avenue would be designated as Residential Detached Medium, which would conflict with the Williamson Act contract once the parcel is annexed. The loss of agricultural land would result in a significant and unavoidable impact.

As discussed in Section 4.2.1.2 Existing Conditions, none of the Housing Element Update project locations would not be located on parcels that are under a Williamson Act contract. Therefore, the Housing Element Update would result in a lesser impact than identified in the Morgan Hill 2035 FEIR. [Less Impact than Approved Project (Less than Significant Impact)]

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Impact AG-3: The project would not conflict with existing zoning for, or cause rezoning of, forest land, timberland, or timberland zoned Timberland Production. [Same Impact as Approved Project (No Impact)]
The Morgan Hill Municipal Code does not have zoning districts for forestland or timberland; therefore, the Morgan Hill 2035 FEIR concluded that there would be no impacts. This same conclusion would apply to the Housing Element Update. [Same Impact as Approved Project (No Impact)]
Impact AG-4: The project would not result in a loss of forest land or conversion of forest land to non-forest use. [Same Impact as Approved Project (Less than Significant Impact)]
As described in Impact AG-3, the City of Morgan Hill does not have areas zoned forestland or timberland. However, the City does contain isolated woodlands that would be defined as forestland pursuant with Public Resources Code Section 12220(g) in the vicinity of the Chesbro Reservoir and along the eastern border the City boundaries near Anderson Reservoir. The Morgan Hill 2035 FEIR concluded that Policies CNF-7.1 and CNF-11.7 would reduce impacts related to forestry resources and impacts would be reduced to less than significant.

Residential development under the Housing Element Update would be designed consistent with these policies, which promote the development of low-density uses for projects adjacent to the UGB to retain open space and encourage residential units be clustered together to provide open space. The Housing Element project locations would also be constructed within the urban city limits and not result in the loss of forest land or the conversion of forest land to non-forest use. For these reasons, the Housing Element Update would not result in new or substantially more severe impacts to forestland than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact AG-5: The project would not involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use. [Same Impact as Approved Project (Less than Significant Impact)] As discussed in the Morgan Hill 2035 FEIR, the buildout of the General Plan would not create incompatible urban uses adjacent to forestland, but buildout could result in potentially incompatible urban uses next to agriculture uses. The following General Plan policies would enforce the preservation of active agricultural lands: Policy CNF-7.1, Policy CNF-7.4, Policy CNF-7.5, and Policy CNF-11.7. Division B29, Agriculture and Resource Management, Chapter 1, Agricultural Rights, Disclosure and Dispute Resolution, of the Santa Clara County Code, described above in the Regulatory Setting, would also serve to protect agricultural resources by not allowing residential or commercial land uses, adjacent to agricultural lands, to restrict the agricultural operations or have the agriculture use deemed a nuisance if the agriculture use is in compliance with local regulations and was not considered a nuisance before the development of the residential or commercial land use.

Therefore, the Morgan Hill 2035 FEIR concluded that impacts would be less than significant with implementation of the General Plan Policies and local code.

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As discussed under Impact AG-1, the Housing Element Update would convert parcels designated Prime Farmland to non-agricultural use and would be required to incorporate policies and ordinances to offset impacts to Farmland, although those impacts would remain significant and unavoidable even with compliance. Aside from the physical conversion of land, the proposed Housing Element Update would not result in other changes in the existing environment which could result in the conversion of agricultural land or forest land. For these reasons, the Housing Element Update would not result in new or substantially more severe impacts due to the conversion of Farmland, to nonagricultural use or conversion of forest land to non-forest use than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]

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AIR QUALITY

4.3.1 Environmental Setting
Background Information
Criteria Pollutants
Air quality in the Bay Area is assessed related to six common air pollutants (referred to as criteria pollutants), including ground-level ozone (O3), nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), sulfur oxides (SOx), and lead.22 Criteria pollutants are regulated because they result in health effects. An overview of the sources of criteria pollutants and their associated health are summarized in Table 4.3-1. The most commonly regulated criteria pollutants in the Bay Area are discussed further below.

Table 4.3-1: Health Effects of Air Pollutants
Pollutants Sources Primary Effects
Ozone (O3) Atmospheric reaction of organic gases
with nitrogen oxides in sunlight
• Aggravation of respiratory and
cardiovascular diseases
• Irritation of eyes
• Cardiopulmonary function impairment
Nitrogen
Dioxide (NO2)
Motor vehicle exhaust, high
temperature stationary combustion,
atmospheric reactions
• Aggravation of respiratory illness
• Reduced visibility
Fine
Particulate
Matter (PM2.5)
and Coarse
Particulate
Matter (PM10)
Stationary combustion of solid fuels,
construction activities, industrial
processes, atmospheric chemical
reactions
• Reduced lung function, especially in
children
• Aggravation of respiratory and
cardiorespiratory diseases
• Increased cough and chest discomfort
• Reduced visibility
Toxic Air
Contaminants
(TACs)
Cars and trucks, especially dieselfueled; industrial sources, such as chrome platers; dry cleaners and service
stations; building materials and
products
• Cancer
• Chronic eye, lung, or skin irritation
• Neurological and reproductive
disorders
High O3 levels are caused by the cumulative emissions of reactive organic gases (ROG) and NOX.

These precursor pollutants react under certain meteorological conditions to form high O3 levels.

Controlling the emissions of these precursor pollutants is the focus of the Bay Area’s attempts to reduce O3 levels. The highest O3 levels in the Bay Area occur in the eastern and southern inland valleys that are downwind of air pollutant sources.
22 The area has attained both state and federal ambient air quality standards for CO. The Housing Element Update does not include substantial new emissions of sulfur dioxide or lead. These criteria pollutants are not discussed further.

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PM is a problematic air pollutant of the Bay Area. PM is assessed and measured in terms of respirable particulate matter or particles that have a diameter of 10 micrometers or less (PM10) and fine particulate matter where particles have a diameter of 2.5 micrometers or less (PM2.5). Elevated concentrations of PM10 and PM2.5 are the result of both region-wide emissions and localized emissions.

Toxic Air Contaminants
TACs are a broad class of compounds known to have health effects. They include but are not limited to criteria pollutants. TACs are found in ambient air, especially in urban areas, and are caused by industry, agriculture, diesel fuel combustion, and commercial operations (e.g., dry cleaners). TACs are typically found in low concentrations, even near their source (e.g., diesel particulate matter [DPM] near a freeway).

Diesel exhaust is the predominant TAC in urban air and is estimated to represent about three-quarters of the cancer risk from TACs. Diesel exhaust is a complex mixture of gases, vapors, and fine particles. Medium- and heavy-duty diesel trucks represent the bulk of DPM emissions from California highways. The majority of DPM is small enough to be inhaled into the lungs. Most inhaled particles are subsequently exhaled, but some deposit on the lung surface or are deposited in the deepest regions of the lungs (most susceptible to injury).23 Chemicals in diesel exhaust, such as benzene and formaldehyde, have been previously identified as TACs by the California Air Resources Board (CARB).

Sensitive Receptors
Some groups of people are more affected by air pollution than others. CARB has identified the following persons who are most likely to be affected by air pollution: children under 16, the elderly over 65, athletes, and people with cardiovascular and chronic respiratory diseases. These groups are classified as sensitive receptors. Locations that may contain a high concentration of these sensitive population groups include residential areas, hospitals, daycare facilities, elder care facilities, and elementary schools.

Regulatory Framework
Federal and State
Clean Air Act
At the federal level, the United States Environmental Protection Agency (EPA) is responsible for overseeing implementation of the Clean Air Act and its subsequent amendments. The federal Clean Air Act requires the EPA to set national ambient air quality standards for the six common criteria pollutants (discussed previously), including PM, O3, CO, SOx, NOx, and lead.

CARB is the state agency that regulates mobile sources throughout the state and oversees implementation of the state air quality laws and regulations, including the California Clean Air Act.

The EPA and the CARB have adopted ambient air quality standards establishing permissible levels 23 California Air Resources Board. “Overview: Diesel Exhaust and Health.” Accessed May 25, 2022. https://ww2.arb.ca.gov/resources/overview-diesel-exhaust-and-health.

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of these pollutants to protect public health and the climate. Violations of ambient air quality standards are based on air pollutant monitoring data and are determined for each air pollutant.

Attainment status for a pollutant means that a given air district meets the standard set by the EPA and/or CARB.

Risk Reduction Plan
To address the issue of diesel emissions in the state, CARB developed the Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and Vehicles. In addition to requiring more stringent emission standards for new on-road and off-road mobile sources and stationary diesel-fueled engines to reduce particulate matter emissions by 90 percent, the plan involves application of emission control strategies to existing diesel vehicles and equipment to reduce DPM (in additional to other pollutants). Implementation of this plan, in conjunction with stringent federal and CARB-adopted emission limits for diesel fueled vehicles and equipment (including off-road equipment), will significantly reduce emissions of DPM and NOX.

Regional
2017 Clean Air Plan
The Bay Area Air Quality Management District (BAAQMD) is the agency primarily responsible for assuring that the federal and state ambient air quality standards are maintained in the San Francisco Bay Area. Regional air quality management districts, such as BAAQMD, must prepare air quality plans specifying how state and federal air quality standards will be met. BAAQMD’s most recently adopted plan is the Bay Area 2017 Clean Air Plan (2017 CAP). The 2017 CAP focuses on two related BAAQMD goals: protecting public health and protecting the climate. To protect public health, the 2017 CAP describes how BAAQMD will continue its progress toward attaining state and federal air quality standards and eliminating health risk disparities from exposure to air pollution among Bay Area communities. To protect the climate, the 2017 CAP includes control measures designed to reduce emissions of methane and other super-greenhouse gases (GHGs) that are potent climate pollutants in the near-term, and to decrease emissions of carbon dioxide by reducing fossil fuel combustion.24
Since the adoption of the Morgen Hill 2035 FEIR, BAAQMD adopted the 2017 Clean Air Plan. This is a revised Clean Air Plan that builds upon the 2010 Clean Air Plan. 25 For the purpose of this Addendum, the 2010 Clean Air Plan is used consistent with the Morgan Hill 2035 FEIR.

CEQA Air Quality Guidelines
The BAAQMD CEQA Air Quality Guidelines are intended to serve as a guide for those who prepare or evaluate air quality impact analyses for projects and plans in the San Francisco Bay Area. 24 BAAQMD. Final 2017 Clean Air Plan. April 19, 2017. http://www.baaqmd.gov/plans-and-climate/air-qualityplans/current-plans. 25 Since the publication of the Morgan Hill 2035 FEIR, BAAQMD adopted an updated version of the Clean Air Plan – 2017 Clean Air Plan. The 2017 Clean Air Plan is a multi-pollutant plan that builds upon the 2010 Clean Air Plans goals and control measures with a stronger emphasis on reducing GHG emissions in 2030 and 2050 to protect the climate. The adoption 2017 Clean Plan does not constitute itself as new information that requires a new analysis be prepared.

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Jurisdictions in the San Francisco Bay Area Air Basin utilize the thresholds and methodology for assessing air quality impacts developed by BAAQMD within their CEQA Air Quality Guidelines.

The guidelines include information on legal requirements, BAAQMD rules, methods of analyzing impacts, and recommended mitigation measures.

Local
Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts to air quality. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Air Quality
Policy Description
NRE-10.2 State and Federal Regulation. Encourage effective regulation of mobile and stationary sources of air pollution and support state and federal regulations to improve automobile emissions controls.

NRE-10.3 Automobile Emissions. Encourage the use of and infrastructure for alternative fuel, hybrid, and electric vehicles. Encourage new and existing public and private development to include electric vehicle charging stations.

NRE-10.4 Reduced Automobile Use. To reduce air pollution the frequency and length of automobile trips and the amount of traffic congestion by controlling sprawl, promoting infill development, and encouraging mixed uses and higher density development near transit. Support the expansion and improvement of alternative modes of transportation.

Encourage development project designs that protect and improve air quality and minimize direct and indirect air pollutant emissions by including components that reduce vehicle trips.

NRE-11.1 TACs and Proposed Sensitive Uses. Require modeling for sensitive land uses, such as residential development, proposed near sources of pollution such as freeways and industrial uses. Require new residential development and projects categorized as sensitive receptors to incorporate effective mitigation measures into project designs or be located adequate distances from sources of toxic air contaminants (TACs) to avoid significant risk to health and safety.

NRE-11.2 TACs and Existing Sensitive Uses. Encourage the installation of appropriate air filtration mechanisms at existing schools, residences, and other sensitive receptors adversely affected by existing or proposed pollution sources.

BRE-11.3 Health Risks Assessments. For proposed development that emits toxic air contaminants, require project proponents to prepare health risk assessments in accordance with Bay Area Air Quality Management District procedures as part of environmental review and implement effective mitigation measures to reduce potential health risks to less-thansignificant levels. Alternatively, require these projects to be located an adequate distance from residences and other sensitive receptors to avoid health risks. Consult with the Bay Area Air Quality Management District to identify stationary and mobile toxic air contaminant sources and determine the need for and requirements of a health risk assessment for proposed developments.

NRE-11.6 Vegetation Buffers. Encourage the use of pollution-absorbing trees and vegetation in buffer areas between substantial sources of toxic air contaminants and sensitive receptors.

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Morgan Hill 2035 General Plan Policies: Air Quality
Policy Description
NRE-12.1 Best Practices. Require that development projects implement best management practices to reduce air quality emissions associated with construction and operation of the project.

NRE-12.2 Conditions of Approvals. Include dust, particulate matter, and construction equipment exhaust control measures as conditions of approval for subdivision maps, site development and planned development permits, grading permits, and demolition permits.

At a minimum, conditions shall conform to construction mitigation measures recommended in the current Bay Area Air Quality Management District CEQA Guidelines.

NRE-12.3 Control Measures. Require construction and demolition projects that have the potential to disturb asbestos (from soil or building materials) to comply with all the requirements of the California Air Resources Board’s air toxics control measures (ATCMs) for Construction, Grading, Quarrying, and Surface Mining Operations.

NRE-12.4 Grading. Require subdivision designs and site design planning to minimize grading and use landform grading in hillside areas.

NRE-13.1 Building Materials. Promote the use of building materials that maintain healthful indoor air quality in an effort to reduce irritation and exposure to toxins and allergens for building occupants.

NRE-13.2 Construction and Pre-Occupancy Practices. Encourage construction and preoccupancy practices to improve air quality for new development upon occupancy of the structure.

NRE-14.1 New Odor Sources. For new, expanded, or modified facilities that are potential sources of objectionable odors require an analysis of possible odor impacts and the provision of odor minimization and control measures as mitigation.

NRE-14.2 Odors and Proposed Sensitive Uses. Require new residential development projects and projects categorized as sensitive receptors to be located an adequate distance from facilities that are existing or potential sources of odor. Determine the adequate separation distance based on the type, size, and operations of the facility NRE-15.4 Sustainable Land Use. Promote land use patterns that reduce the number and length of motor vehicle trips.

NRE-15.6 Residential Near Transit. Encourage higher density residential and mixed-use development adjacent to commercial centers and transit corridors- the land along or within walking distance of a street served by transit.

NRE-15.10 Green Building. Promote green building practices in new development.

NRE-16.7 Renewable Energy. Encourage new and existing development to incorporate renewable energy generating features, like solar panels and solar hot water heaters.

NRE-16.9 Subdivision Design. In compliance with Section 66473.1of the state Subdivision Map Act, promote subdivision design that provides for passive solar heating and natural cooling through the Development Review Committee subdivision review procedures.

TR-2.1 Multi-Modal System for All Users. A balanced multi-modal system offers viable choices for residents, employees, customers, visitors, and recreational users. Use smart growth and Sustainable Communities principles throughout the City to provide a balanced transportation system which assures access to all, and which integrates all appropriate modes of transportation into an effectively functioning system, including

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Morgan Hill 2035 General Plan Policies: Air Quality
Policy Description
modes such as auto, ride sharing, public rail and bus transit, paratransit, bicycling, and walking.

TR-2.2 Integrated Land Use/Transportation Planning. Integrate planning for land use and transportation development by ensuring that the timing, amount, and location of urban development is consistent with the development of the transportation system capacity.

Promote environmental objectives that supports smart growth and Sustainable Communities principles, such as safe and uncongested neighborhoods, a pedestrianfriendly vibrant downtown that emphasizes non-auto transportation modes, energy conservation, reduction of air and noise pollution, and the integrity of scenic and/or hillside areas.

TR-6.12 Bus Shelters from Private Development. Require developers to install bus shelters compatible with City architectural standards, where appropriate.

TR-9.1 Private Development Connections. Encourage adequate pedestrian access in all developments, with special emphasis on pedestrian connections in the downtown area, in shopping areas, and major work centers, including sidewalks in industrial areas in accordance with the Trails and Natural Resources Master Plan.

TR-9.10 Sidewalk Connectivity. Improve sidewalk connectivity by installing new sidewalks where they do not exist, consistent with the Trails and Natural Resources Master Plan.

TR-10.4 Air Quality and Transportation Demand Management. Investigate opportunities for preparing and implementing Air Quality and Transportation Demand Management Plans by employers and developers of new residential and non-residential developments.

Existing Conditions
The Bay Area is designated nonattainment-marginal for the 8-hour ozone National Ambient Air Quality Standard (NAAQS), nonattainment-moderate for the PM2.5 NAAQS, and maintenance for CO. The Bay Area is designated nonattainment for the O3, PM2.5, and PM10 California Ambient Air Quality Standards (CAAQS). As part of an effort to attain and maintain ambient air quality standards for O3, PM10, and PM2.5, BAAQMD has established thresholds of significance for these air pollutants and their precursors. These thresholds are for O3 precursor pollutants (ROG and NOX), PM10, and PM2.5, and apply to both construction period and operational period impacts.

Existing levels of ambient air quality and historical trends and projections in the vicinity of Morgan Hill are best documented by measurements made by the BAAQMD. The air quality monitoring station closest to Morgan Hill is the San Martin Murphy Avenue Monitoring Station; however, this station only monitors O3. Based on data from the San Jose Jackson Street Monitoring Station for other criteria pollutants, the area regularly exceeds the state and federal O3 standards and federal PM2.5 standard and occasionally exceeds the state PM10 standard.26 Land uses in the Project area generate criteria air pollutants from natural gas use for energy, heating and cooking, vehicle trips associated with each land use, and area sources such as landscaping equipment and consumer cleaning products.
26 City of Morgan Hill. Morgan Hill 2035 DEIR. Page 4.3-17. January 13, 2016.

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4.3.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same Impact
as Approved
Project
Less Impact
than
Approved
Project
Would the project:
a) Conflict with or obstruct
implementation of the applicable air
quality plan?
b) Result in a cumulatively considerable
net increase of any criteria pollutant
for which the project region is nonattainment under an applicable federal or state ambient air quality standard?
c) Expose sensitive receptors to
substantial pollutant concentrations?
d) Result in other emissions (such as
those leading to odors) adversely
affecting a substantial number of
people?
Morgan Hill 2035 Final EIR – Air Quality Conclusions
The Morgan Hill 2035 FEIR found that the General Plan would not hinder BAAQMD’s implementation of the 2010 Clean Air Plan because the General Plan policies support the control measures of the 2010 Clean Air Plan and the projected VMT is less than the population growth. The 2035 FEIR found that the General Plan would cause a substantial net increase in operational and construction-related criteria pollutant emissions that exceeds the BAAQMD regional significance thresholds. Even with implementation of General Plan policies, these impacts were found to be significant and unavoidable. The 2035 FEIR found that future projects proximity to major sources air pollution was consistent with the Bay Area Clean Air Plan, and no violations of carbon monoxide standards were expected from build-out of the General Plan. Impacts to future residents of the General Plan buildout from existing sources of TACs as well as impacts to nearby sensitive receptors from TACs were found to be less than significant.

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Impact AIR-1: The project would not conflict with or obstruct implementation of the applicable air quality plan. [Same Impact as Approved Project (No Impact)]
The Morgan Hill 2035 FEIR concluded that buildout of the General Plan would not conflict with the 2010 Bay Area Clean Air Plan, which was the latest Clean Air Plan at the time the EIR was adopted.

The General Plan goals, policies, and actions would be consistent with control measures from the 2010 Bay Area Clean Air Plan; therefore, not hindering BAAQMD from implementing the 2010 Bay Area Clean Air Plan. In addition, it was demonstrated that the projected VMT increase generated from future development of the General Plan would be less than the projected population increase.

Daily VMT from the General Plan would increase at a lower rate of 38 percent compared to the proposed population growth of 51 percent.

Implementation of the Housing Element Update would also not conflict or hinder BAAQMD from implementing the 2010 Clean Air Plan since future developments would be subject to the goals, policies, and actions in the General Plan in addition to being required to implement the CALGreen and Building Energy Efficiency standards. Adherence to these standards and the General Plan, would ensure that the Housing Element Update is also consistent with the 2010 Bay Area Clean Air Plan.27 The projected VMT and population growth from development under the Housing Element Update were also accounted for in the Morgan Hill 2035 FEIR. The Housing Element Update would not generate new daily VMT or population growth beyond what has been disclosed in the Morgan Hill 2035 FEIR. In addition, the VMT associated with future housing developments would be evaluated at a project-level as individual projects are submitted. For these reasons, the Housing Element Update would not create conflict or obstruct implementation of the applicable air quality plan as disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (No Impact)] Impact AIR-2: The project would result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard. [Same Impact as Approved Project (Significant and Unavoidable)]
The Morgan Hill 2035 FEIR found that buildout of the General Plan would result in a cumulatively considerable net increase of criteria pollutants even with implementation of General Plan policies and actions that would reduce criteria air pollutants because emissions generated from the new development allowed by the General Plan would exceed the BAAQMD project-level thresholds for construction and operation. To reduce construction criteria pollutant impacts, Mitigation Measure AQ-2a-1 and Mitigation Measure AQ-2a-2 from the Morgan Hill FEIR would be required for all future development projects. Mitigation Measure AQ-2a-1 requires that all development projects implement BAAQMD basic construction mitigation measures to reduce fugitive dust emissions, and Mitigation Measure AQ-2a-2 requires that a technical air quality assessment evaluating construction air quality impacts be prepared and submitted to the City prior to issuance of construction permits.

To further reduce operational criteria pollutant impacts, Mitigation Measures AQ-2b, like Mitigation 27 Since the publication of the Morgan Hill 2035 FEIR, BAAQMD adopted an updated version of the Clean Air Plan – 2017 Clean Air Plan. The 2017 Clean Air Plan is a multi-pollutant plan that builds upon the 2010 Clean Air Plans goals and control measures with a stronger emphasis on reducing GHG emissions in 2030 and 2050 to protect the climate. The adoption 2017 Clean Plan does not constitute itself as new information that requires a new analysis be prepared.

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Measures AQ-2a-2, requires that development projects prepare a technical air quality assessment evaluating operational air quality impacts prior to issuance of construction permits. However, even with these mitigation measures, the Morgan Hill 2035 FEIR concluded that impacts would be significant and unavoidable due to the programmatic nature of the proposed General Plan and the overall scale of development allowed under the General Plan, including substantial non-residential development, including employment and commercial uses.

Residential development under the Housing Element Update would be required to implement Mitigation Measures AQ-2a-1, AQ-2a-2, and AQ-2b described above, however impacts would remain significant and unavoidable impact because the Housing Element includes adequate housing project locations for 2,212 units, a less-than-significant finding can only be determined on an individual, project-level basis when specific characteristics of the development are available.

Therefore, consistent with the Morgan Hill 2035 FEIR, the Housing Element Update would result in a cumulatively considerable net increase of criteria pollutant for which the region is non-attainment. [Same Impact as Approved Project (Significant and Unavoidable)] Impact AIR-3: The project would not expose sensitive receptors to substantial pollutant concentrations. [Same Impact as Approved Project (Less than Significant Impact)]
CO Hotspots
The Morgan Hill 2035 FEIR found that new development allowed by the General Plan would not create CO hotspots since the General Plan would be consistent with the Santa Clara Valley Transportation Authority’s (VTA) congestion management plan through the implementation of General Plan policies and actions (Policy TR-2.1, Policy TR-2.2, Policy TR-6.1, Policy TR-6.3, Policy TR-6.4, Policy TR-6.5, Policy TR-6.6, Policy TR-6.12, Action TR-6.D, Policy TR-7.1, Policy TR-8.2, Policy TR-8.3, Policy TR-8.4, Policy TR-8.10, Policy TR-8.11, Policy TR-8.12, Policy TR9.1, Policy TR-9.10, and Policy TR-10.4). These policies would encourage bicycle, pedestrian, and transit use to tie land use and transportation.

Residential development under the Housing Element Update would be designed consistent with these goals, policies, and actions. For these reasons, the Housing Element Update would not result in new or substantially more severe impacts regarding CO hotspots than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)] Toxic Air Contaminants
For TACs, the Morgan Hill 2035 FEIR concluded that specific industrial and commercial developments allowed under the General Plan, such as chemical processing facilities and gas stations, would be stationary sources that emit TACs. However, these stationary sources are overseen by BAAQMD under Regulation 2, Rule 2, New Source Review, and Rule 5, New Source Review of Toxic Air Contaminants. Sources of TAC that are not controlled by BAAQMD through a permit process are mobile sources, such as trucks and off-road equipment that emit DPM.

The Housing Element Update would facilitate the construction of new residential development. The Morgan Hill 2035 FEIR does not consider residential land uses to be sources of operational TAC,

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unlike industrial land uses, chemical processing facilities, and gas stations. Therefore, it is unlikely that the residential developments would expose sensitive receptors to TACs when operating.

However, construction of these residential developments would involve the use of heavy-duty construction equipment and trucks for hauling materials and traveling to the site. These construction activities would emit TAC, such as diesel particulate matter, that could expose nearby sensitive receptors to substantial pollutant concentrations. General Plan Policy NRE-11.3 would require that a health risk assessment be prepared to reduce potential risks to less-than-significant levels or be located an adequate distance from sensitive land uses. Therefore, operational TAC impacts from the implementation of the Housing Element Update would result in lesser impacts than disclosed in the Morgan Hill 2035 FEIR. [Less Impact than Approved Project (Less than Significant Impact)] Impact AIR-4: The project would not result in other emissions (such as those leading to odors) adversely affecting a substantial number of people. [Same Impact as Approved Project (Less than Significant Impact)]
The Morgan Hill 2035 FEIR concluded the buildout of the General Plan would not result in objectionable odor impacts because Policy NRE-14.1 and Policy NRE-14.2 would minimize new odor sources and siting sensitive land uses in proximity to odors, respectively.

The Housing Element Update would facilitate the construction of new residential development, which are not land uses that BAAQMD associates with odors or potential sources of odors. In addition, General Plan Policy NRE-14.1 has ensured that the Housing Element Update project locations are located at an adequate distance from potential sources of odor. Therefore, the Housing Element Update would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]

4.3.3 Non-CEQA Effects
Pursuant to California Building Industry Association v. Bay Area Air Quality Management District, 62 Cal. 4th 369 (BIA v. BAAQMD), effects of the environment on the project are not considered CEQA impacts. The following discussion is included for informational purposes only because the Morgan Hill 2035 General Plan has policies that address existing air quality conditions affecting a proposed project.

As described in the Morgan Hill 2035 FEIR, there are stationary sources (e.g., emergency backup generators permitted by BAAQMD) and mobile sources (e.g., roadways with volumes over 10,000 average daily traffic) within or near the City of Morgan Hill. Sensitive land uses, including residences, could be located within proximity to these sources and then be exposed to potentially substantial pollutant concentrations. Policies and actions from the General Plan would minimize impacts (Policy NRE-11.1, Policy NRE-11.6, Policy NRE-13.1, Policy NRE-13.2, Action NRE13.A, and Action NRE-13.B) by requiring a refined site-specific health risk for sensitive land uses and promoting design measures, such as indoor filtration and vegetation buffers, to improve indoor air quality for future receptors, such as residences covered under the 2023-2031 Housing Element.

Additionally, Mitigation Measure AQ-4b would be required to reduce impacts to less than significant by requiring a refined health risk assessment be prepared for proposed sensitive land use projects.

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Future residential development under the Housing Element Update would be considered sensitive land uses. Consistent with Policy NRE-11.1 and Mitigation Measure AQ-4b, future residential developments would undergo individual environmental review and be required to prepare a health risk assessment, where warranted based on a given site’s distance to stationary and/or mobile TAC sources. Therefore, the risks and hazards associated with existing sources of TAC upon the future sensitive land uses would be reduced to acceptable levels consistent with BAAQMD guidelines.

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BIOLOGICAL RESOURCES

4.4.1 Environmental Setting
Regulatory Framework
Federal and State
Endangered Species Act
Individual plant and animal species listed as rare, threatened, or endangered under state and federal Endangered Species Acts are considered special-status species. Federal and state endangered species legislation has provided the United States Fish and Wildlife Service (USFWS) and the California Department of Fish and Wildlife (CDFW) with a mechanism for conserving and protecting plant and animal species of limited distribution and/or low or declining populations. Permits may be required from both the USFWS and CDFW if activities associated with a proposed project would result in the take of a species listed as threatened or endangered. To “take” a listed species, as defined by the State of California, is “to hunt, pursue, catch, capture, or kill, or attempt to hunt, pursue, catch, capture, or kill” these species. Take is more broadly defined by the federal Endangered Species Act to include harm of a listed species.

In addition to species listed under state and federal Endangered Species Acts, Sections 15380(b) and (c) of the CEQA Guidelines provide that all potential rare or sensitive species, or habitats capable of supporting rare species, must be considered as part of the environmental review process. These may include plant species listed by the California Native Plant Society and CDFW-listed Species of Special Concern.

Migratory Bird Treaty Act
The federal Migratory Bird Treaty Act (MBTA) prohibits killing, capture, possession, or trade of migratory birds except in accordance with regulations prescribed by the Secretary of the Interior.

Hunting and poaching are also prohibited. The taking and killing of birds resulting from an activity is not prohibited by the MBTA when the underlying purpose of that activity is not to take birds.28 Nesting birds are considered special-status species and are protected by the USFWS. The CDFW also protects migratory and nesting birds under California Fish and Game Code Sections 3503, 3503.5, and 3800. The CDFW defines taking as causing abandonment and/or loss of reproductive efforts through disturbance.

Sensitive Habitat Regulations
Wetland and riparian habitats are considered sensitive habitats under CEQA. They are also afforded protection under applicable federal, state, and local regulations, and are generally subject to regulation by the United States Army Corps of Engineers (USACE), Regional Water Quality Control Board (RWQCB), CDFW, and/or the USFWS under provisions of the federal Clean Water Act (e.g., Sections 303, 304, 404) and State of California Porter-Cologne Water Quality Control Act. 28 United States Department of the Interior. “Memorandum M-37050. The Migratory Bird Treaty Act Does Not Prohibit Incidental Take.” Accessed April 19, 2022. https://www.doi.gov/sites/doi.gov/files/uploads/m-37050.pdf.

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Fish and Game Code Section 1602
Streambeds and banks, as well as associated riparian habitat, are regulated by the CDFW per Section 1602 of the Fish and Game Code. Work within the bed or banks of a stream or the adjacent riparian habitat requires a Streambed Alteration Agreement from the CDFW.

Regional and Local
Santa Clara Valley Habitat Plan/Natural Community Conservation Plan The Santa Clara Valley Habitat Plan/Natural Community Conservation Plan (Habitat Plan) covers approximately 520,000 acres, or approximately 62 percent of Santa Clara County. It was developed and adopted through a partnership between Santa Clara County, the Cities of San José, Morgan Hill, and Gilroy, Santa Clara Valley Water District (Valley Water), Santa Clara Valley Transportation Authority (VTA), USFWS, and CDFW. The Habitat Plan is intended to promote the recovery of endangered species and enhance ecological diversity and function, while accommodating planned growth in southern Santa Clara County. The Santa Clara Valley Habitat Agency is responsible for implementing the plan.

Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts to biological resources. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Biological Resources Policy Description
NRE-1.2 Large Open Space Areas. Work with the County, the Open Space Authority, appropriate conservancy organizations and land trusts, and property owners to preserve large open space areas, such as agricultural lands and outdoor recreation areas, to conserve natural resources and retain the City's unique identity.

NRE-1.3 Designated Open Space. Maintain land designated as “Open Space” on the Morgan Hill General Plan Land Use Map (Figure CNF-3).

NRE-1.4 South County Open Space. Preserve and maintain the wide variety of open spaces in the South County; including greenbelt areas, parks, and agricultural uses. (South County Joint Area Plan 16.00)
NRE-1.9 Poppy Jasper. Preserve Poppy Jasper as a natural resource unique to Morgan Hill.

NRE-1.10 Wetland Delineation and Mitigation. Require wetland delineation and mitigation as part of the environmental review of future development.

NRE-1.11 Wetlands Enhancement. Encourage enhancement of sensitive wetlands as part of future development.

NRE-5.1 Reclamation of Streams and Riparian Areas. Encourage reclamation of degraded streams and riparian areas.

NRE-5.2 Other Agencies and Environmental Review. Coordinate with jurisdictional agencies, as required, as part of the environmental review process for development projects.

NRE-5.3 Natural State of Streamside and Riparian Areas. Retain natural streamside and riparian areas in their natural state in order to preserve their value as percolation and

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Morgan Hill 2035 General Plan Policies: Biological Resources Policy Description
recharge areas, natural habitat, scenic resources, and recreation corridors, and to stabilize banks. (South County Joint Area Plan 15.08).

NRE-5.4 Development Impacts in Riparian Areas. Consider development impacts upon wildlife in riparian areas and mitigate those environmental impacts.

NRE-5.5 Flood Control Projects. Where flood control projects are needed to protect existing development, minimize disruption of streams and riparian systems, maintaining slow flow and stable banks through design and other appropriate mitigation measures. (South County Joint Area Plan 15.08).

NRE-5.6 Stream Channel Protection. Protect existing stream channels and riparian vegetation by requiring buffering or landscaped setbacks and storm runoff interception as specified in Table NRE-1 and consistent with the Santa Clara Valley Habitat Plan.

NRE-5.8 Creeks Access. Access to creeks should be of sufficient width to accommodate trails, flood control access, and protection of riparian habitat. (South County Joint Area Plan

16.11).

NRE-6.1 Natural State of Habitat. Preserve all fish and wildlife habitats in their natural state whenever possible. Consider development impacts upon wildlife and utilize actions to mitigate those environmental impacts.

NRE-6.2 Habitat Conservation Plan. Support the implementation of the Santa Clara Valley Habitat Plan to protect wildlife, rare and endangered plants and animals, and sensitive habitats from loss and destruction.

NRE-6.3 Urban Expansion Impacts. Minimize impacts upon wildlife when considering annexations, urban service area extensions, and other governmental actions that permit urban development of previously undeveloped property.

NRE-6.4 Tree Preservation and Protection. Preserve and protect mature, healthy trees whenever feasible, particularly native trees, historically significant trees, and other trees which are of significant size or of significant aesthetic value to the immediate vicinity or to the community as a whole.

City of Morgan Hill Tree Removal Controls
The City of Morgan Hill maintains the urban natural landscape partly by promoting the health, safety, and welfare of the City by controlling the removal of significant sized trees (Municipal Code

12.32.020, G.). According to the City of Morgan Hill Tree Removal Controls, a significant tree is considered to be a tree with a single stem or trunk of a circumference of 40 inches (or diameter of

12.7 inches) or more for nonindigenous species and a circumference of 18 inches (or diameter of 5.7 inches) or more for indigenous species measured at four and one-half feet vertically above the ground. Indigenous species to Morgan Hill include oak (all types), California bay, madrone, sycamore, and alder trees.
“Street trees” are also protected and defined as a tree, of any size, situated within the public street right-of-way or publicly accessible private street (e.g., trees within a landscape park strip), or within five feet of publicly accessible sidewalk adjacent to a public or private street in the case of a street without a landscape park strip.

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A “community of trees,” which is a group of trees of any size which are ecologically or aesthetically related to each other such that loss of several of them would cause a significant ecological, aesthetic, or environmental impact in the immediate area, are protected under the City’s ordinance.

In addition, the Tree Removal Controls specify that all commercial tree farms, nonindigenous tree species in residential zones, and orchards (including individual fruit trees) are exempted from the definition of significant tree.

City of Morgan Hill Burrowing Owl Habitat Mitigation Plan Since 2003, the City of Morgan Hill has implemented a citywide program (Burrowing Owl Habitat Mitigation Plan) to evaluate and mitigate impacts to burrowing owls and potential burrowing owl habitat that could result from development activities within the City limits. Under the Burrowing Owl Habitat Mitigation Plan, the City requires pre-construction owl surveys to be completed in areas of potentially suitable habitat (generally any grassland and/or mixed herbaceous vegetation below 600 feet above mean sea level) within 30 days of the onset of construction.

Existing Conditions
Natural Communities
There are six natural communities and two non-natural communities within the Morgan Hill SOI.

The natural communities are primarily located outside the City limits. Table 4.4-1 summarizes the natural communities within the SOI and the total acreage of each community.

Table 4.4-1: Summary of Natural Communities within Morgan Hill SOI Natural Communities Total (Acres)
Grassland 2,518
Oak Woodland 3,221
Chaparral and Northern Coastal Scrub 546
Riparian Forest and Scrub 236
Wetland 13
Open Water 181
Source: City of Morgan Hill. Morgan Hill 2035 EIR. Pages 4.4-10-4.4-11. January 2016.

All the Housing Element Update project locations are located in the urban developed city limits of Morgan Hill.

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Sensitive Natural Communities
The CDFW considers the following communities located in the SOI as sensitive natural communities due to their valuable plan and wildlife diversity: serpentine bunchgrass grassland, serpentine rock outcrop/barren, serpentine seep, mixed serpentine chaparral, valley oak woodland, blue oak woodland, coastal and valley freshwater marsh, and vernal pools.29 None of the Housing Element Update project locations would overlap with the sensitive natural communities identified in the Morgan Hill SOI. The serpentine bunchgrass grassland is a special-status habitat.

Aquatic Habitats
The following riverine habitats are present within the Morgan Hill SOI: Cold Steelhead Habitat, Warm Potential Trout/Steelhead Habitat, Warm Native Habitat, Mixed Native and Introduced Habitat, and Fish-Scare Habitat. These habitat types support a variety of fish and amphibian species, and the habitats are located in the Llagas Creek. None of the Housing Element Update project locations are near or overlapping with the Llagas Creek.

Special-Status Species
As described in the Morgan Hill 2035 FEIR, there are special-status plant and wildlife species recorded in the Morgan Hill SOI. Table 4.4-2 lists the plant and wildlife species along with their status on the federal and state Endangered Species Lists and the California Native Plant Society (CNPS) Inventory of Rare and Endangered Plants.

Table 4.4-2: Summary of Special-Status Species within Morgan Hill SOI Common Name Scientific Name Status
(Federal List/Status
List/CNPS Rank)
Special-Status Plants
Arcuate bush-mallow Malacothamnus arcuatus None/None/1B.2 Coyote ceanothus Ceanothus ferrisiae Endangered/None/1B.1 Hall's bush-mallow Malacothamnus hallii None/None/1B.2
Most beautiful jewel-flower Malacothamnus hallii None/None/1B.2 Mt. Hamilton fountain thistle Cirsium fontinale var.
campylon
None/None/1B.2
San Francisco collinsia Collinsia multicolor None/None/1B.2 Santa Clara Valley dudleya Dudleya abramsii ssp.
setchellii
Endangered/None/1B.1
29 City of Morgan Hill. Morgan Hill 2035 DEIR. Page 4.4-12. January 2016.

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Smooth lessingia Lessingia micradenia var.
glabrata
None/None/1B.2
Woodland woollythreads Monolopia gracilens None/None/1B.2 Special-Status Wildlife
Amphibians/Reptiles
California tiger salamander Ambydstoma californiense Threatened/Threatened/ Special Concern
Western pond turtle Emys marmorata None/None/Special Concern California red-legged frog Rana draytonii Threatened/None/Special Concern
Birds
Burrowing owl Athene cunicularia None/None/Special Concern Insects
Bay checkerspot butterfly Euphydryas editha bayensis Threatened/None/Not Applicable
Opler's longhorn moth Adela oplerella None/None/Not Applicable Hom's micro-blind harvestman Microcina homi None/None/Not Applicable Source: City of Morgan Hill. Morgan Hill 2035 DEIR. Tables 4.4-1 and 4.4-2. January 2016.

Habitats supporting these special status species are absent from the Housing Element project locations. Housing Element Update project locations (Location 1, 7, 8, 9,10,13, 14, 15) in proximity to Monterey Road are within the buffer zone for California tiger salamander, a special-status wildlife species. In addition, a portion of a Housing Element project location (Location 12) is within the buffer zone for woodland woollythreads, a special-status plant species.

Housing Element Update Project Locations
As described in Section 4.1 Aesthetics, there are a total of 31 Housing Element Update project locations with four of the locations pending entitlement, nine of the sites have no project associated with the parcel, and the remaining 18 of the project locations are in the process of being entitled. The project locations that are entitled have already undergone a separate project-level analysis pursuant to the CEQA Guidelines; therefore, Locations 1, 2 (one of the three parcels [Project Number SR2018- 0020]), 4, 5, 7, 8, 9, 12, 13, 14, 15 (all three parcels are entitled), 16, 17, 19, 20, and 21 are not

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discussed further. All the project locations are within the city boundaries and in proximity to existing urban development.

Pending Entitlement
The following Housing Element Update project locations are pending entitlement: Locations 10, 11, 18, and 22. Each project location is discussed individually below.

Location 10 is an approximately 4.6-acre site that includes APNs 726-42-002 (19380 Monterey Road) and 726-42-003 (19400 Monterey Road), which are located adjacent to Monterey Road and southeast of the Monterey Road and Burnett Avenue intersection. The parcels are currently commercial developments for the selling, renting, and servicing of family recreational vehicles. The parcels for Location 10 consistent of parking lots for storage of vehicles and temporary garage buildings. The parcels are within natural communities designated developed, there are no sensitive natural communities, and there are no fish habitat. However, Location 10 is within the buffer boundaries for California Tiger Salamander, a special status species.

Location 11 is an approximately 28.9-acre undeveloped site that includes APNs 728-30-001, 728-30- 002, 728-30-003, and 728-30-004, which are located at the intersection of Half Road and Mission View Drive. The parcels are surrounded by developed and undeveloped parcels of land. The parcels are within natural communities designated irrigated agriculture, there are no sensitive natural communities, and there are no fish habitat. Location 11 is also not within areas with identified special-status species.

Location 18 is an approximately 1.1-acre site that includes APN 767-18-046 and is located north of Edes Street and west of West Little Llagas Creek trail. The parcel is undeveloped and located in between commercial uses. The parcel is within natural communities designated developed, there are no sensitive natural communities, and there are no fish habitat. Location 18 is also not within areas with identified special-status species.

The parcel is a within natural community designated irrigated agriculture, there are no sensitive natural communities, and there are no fish habitat. Location 22 is also not within an area with identified special-status species.

No Project Locations
The following Housing Element Update project locations are not yet entitled and there are no pending projects associated with the parcels: Locations 2, 3, 6, 10, and 22, however each is planned for housing under the current General Plan. Each project location is discussed individually below.

Location 2 consists of APNs 726-02-012, 726-02-016, which equate to approximately 7.1-ares. The parcels are vacant and undeveloped parcels located northwest of the East Dunne Avenue and Walnut Grove Drive intersections. The parcels are flat with several trees planted throughout APN 726-02-

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012 and ruderal vegetation through both APNs. The parcels are within natural communities designated developed and irrigated agriculture, there are no sensitive natural communities, and there are no fish habitat. Location 2 is also not within areas with identified special-status species.

Location 3 is a 3.4-acre site located at 17364 Walnut Grove Drive (APN 726-04-021) west of Highway 101 and east of Walnut Grove Drive. The parcel is vacant and undeveloped with only ruderal vegetation and trees on-site. The parcel is within a natural community designated developed, there are no sensitive natural communities, and there are no fish habitat. Location 3 is also not within areas with identified special-status species.

Location 6 consists of APNs 726-23-018 (95 East Main Avenue), 726-23-019, and 726-23-020 that total approximately 4.3-acres. APNs 726-23-018 and 726-23-019 are adjacent parcels located northeast of the Main Avenue and Mclaughlin Avenue intersection. The existing uses on these parcels include a single-story construction equipment rental store (95 East Main Avenue) with parking lots and the other parcel is a private parking lot and storage area. APN 726-23-020 is a separate L-shaped parcel located southwest of the Monterey Road and Central Avenue intersections.

It is a vacant, undeveloped parcel with ruderal vegetation surrounded by commercial uses. The parcels are within natural communities designated developed, there are no sensitive natural communities, and there are no fish habitat. Location 6 is also not within areas with identified specialstatus species.

A chicken wire mesh fence outlines the perimeter of the parcel. The parcel is within a natural community designated developed, there are no sensitive natural communities, and there are no fish habitat. However, Location 10 is within a buffer area where California Tiger Salamander have been identified.

Location 22 is an approximately 5.5-acre parcel that includes APN 817-09-055 located southwest of the Juan Hernandez Drive and Saint James Drive intersection. The site is vacant and undeveloped.

The site is a within natural community designated irrigated agriculture, there are no sensitive natural communities, and there are no fish habitat. Location 22 is also not within an area with identified special-status species.

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4.4.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same Impact
as Approved
Project
Less Impact
than
Approved
Project
Would the project:
a) Have a substantial adverse effect,
either directly or through habitat
modifications, on any species
identified as a candidate, sensitive, or
special status species in local or
regional plans, policies, or regulations,
or by the California Department of
Fish and Wildlife (CDFW) or United
States Fish and Wildlife Service
(USFWS)?
b) Have a substantial adverse effect on
any riparian habitat or other sensitive
natural community identified in local
or regional plans, policies, regulations,
or by the CDFW or USFWS?
c) Have a substantial adverse effect on
state or federally protected wetlands
(including, but not limited to, marsh,
vernal pool, coastal, etc.) through
direct removal, filling, hydrological
interruption, or other means?
d) Interfere substantially with the
movement of any native resident or
migratory fish or wildlife species or
with established native resident or
migratory wildlife corridors, or impede
the use of native wildlife nursery sites?
e) Conflict with any local policies or
ordinances protecting biological
resources, such as a tree preservation
policy or ordinance?
f) Conflict with the provisions of an
adopted Habitat Conservation Plan,
Natural Community Conservation
Plan, or other approved local, regional,
or state habitat conservation plan?

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Morgan Hill 2035 Final EIR – Biological Resources Conclusions The Morgan Hill 2035 FEIR found that buildout of the General Plan would not result in significant impacts to biological resources. Implementation of the General Plan would not have adverse effects on special status species, riparian habitat, or federally protected wetlands. Construction of the future development under the General Plan would not obstruct or interfere with wildlife corridors or movement of wildlife. The implementation of the General Plan would also not conflict with local policies, ordinances, or the provisions of an adopted habitat conservation Plan. Adherence to local regulations and General Plan policies would ensure impacts would be less than significant or no impacts would occur.

Impact BIO-1: The project would not have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the CDFW or USFWS. [Same Impact as Approved Project (Less than Significant Impact)]
As described in the Morgan Hill 2035 FEIR, a majority of the General Plan buildout would occur in urbanized areas where special-status species are not expected to occur. However, there are nine special-status plant species, seven special-status wildlife species, and one special-status habitat identified within the General Plan area. Impacts to special-status species would be reduced due through compliance with existing regulations (e.g., California Endangered Species Acts, MBTA, Fish and Game Code, California Native Protection Act, and Municipal Code Sections 8.80, 12.32,

18.08, and 18.69). In addition, the General Plan includes several goals, policies, and actions that would further reduce impacts to special-status species (e.g., Goal NRE-1, Policy NRE-1.2, Policy NRE-1.3, Policy NRE-1.4, Policy NRE-1.9, Goal NRE-5, Policy NRE-5.2, Goal NRE-6, Policy NRE-6.1, Policy NRE-6.2, Policy NRE-6.3, and Policy NRE-6.4).

As discussed in Section 4.4.1.2 Existing Conditions, several of the Housing Element Update project locations (Location 1, 7, 8, 9,10,13, 14, 15) are located in areas where special-status species have been identified. are in proximity to Monterey Road are located in a buffer zone where California tiger salamander have been documented. In addition, a portion of a Housing Element project location (Location 12) is within the buffer zone for woodland woollythreads. Future residential developments located in areas where special-status species have been identified would be required to comply with the Santa Clara Valley Habitat Plan, which includes submitting a Habitat Plan application package that identifies covered species and the applicable minimization requirements that will be implemented to reduce impacts. The Santa Clara Valley Habitat Plan also has development fees that projects are required to pay to further mitigate impacts. The total fees would be dependent on the land cover of the project site and would require surveys to identify species on-site. The residential developments proposed under the Morgan Hill Housing Element Update would also undergo individual project-specific environmental review pursuant with CEQA, and this process would identify mitigation measures to reduce impacts to special-status species. Additionally, consistent with the Morgan Hill 2035 FEIR, implementation of the above-mentioned General Plan goals, policies, and actions would ensure that impacts to special-status species are less than significant. For these reasons, and because the Housing Element Update does not propose or require the re-designation of any land not currently designated for housing, the Housing Element Update would not result in new or substantially more severe impacts on any species identified as a candidate, sensitive, or special

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status species than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact BIO-2: The project would not have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the CDFW or USFWS. [Same Impact as Approved Project (Less than Significant Impact)]
The Morgan Hill 2035 FEIR concluded that the majority of the General Plan buildout would be constructed in urbanized areas. The potential for substantial adverse effects on habitat and sensitive natural communities in developed areas is generally very remote in comparison to undeveloped lands with natural habitat that contain sensitive natural communities. To reduce impacts to less than significant, the following General Plans goals, policies, and actions would be implemented by future development, along with applicable federal, state, regional, and local regulations, and compliance with the Santa Clara Valley Habitat Plan: Goal NRE-6, Policy NRE-6.1, Policy NRE-6.2, Policy NRE-6.3, Goal NRE-1, Policy NRE-1.3, Policy NRE-1.4, Goal NRE-5, Policy NRE-5.1, Policy NRE-5.2, Policy-NRE-5.3, Policy-5.4, Policy-NRE-5.5, Policy NRE-5.6, Policy NRE-5.8, Action NRE-5.8, and Action NRE-5.C.

As discussed in Section 4.4.1.2, none of the Housing Element Update project locations contain riparian habitats or other sensitive natural communities. Consistent with the Morgan Hill 2035 FEIR, implementation of the above-mentioned General Plan goals, policies, actions, and Santa Clara Valley Habitat Plan, would ensure that impacts to riparian habitats and sensitive natural communities are less than significant. For these reasons, the Housing Element Update would not result in new or substantially more severe impacts on any riparian habitat or other sensitive natural community than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact BIO-3: The project would not have a substantial adverse effect on state or federally protected wetlands through direct removal, filling, hydrological interruption, or other means. [Less Impact than Approved Project (No Impact)] The Morgan Hill 2035 FEIR concluded that impacts to state or federally protected wetlands would be less than significant because wetlands within the General Plan area are primarily located outside the urbanized areas where development would occur, and there are goals, polices, and actions in addition to existing regulation (i.e., Clean Water Act) to reduce impacts. The applicable General Plan goals, policies, and actions are as follows: Goal NRE-1, Policy NRE-1.10, Policy NRE-1.11, Goal NRE-5, Policy NRE-5.2, Policy NRE-5.4, Goal NRE-6, Policy NRE-6.1, Policy NRE-6.2, and Policy NRE6.3.

As discussed in Section 4.4.1.2, none of the Housing Element Update project locations are in proximity to wetlands. All of the project locations are within the urbanized area limits of the City.

There would be no impact on state or federally protected wetlands. Therefore, the Housing Element Update would have a lesser impact than disclosed in the Morgan Hill 2035 FEIR. [Less Impact than Approved Project (No Impact)]

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Impact BIO-4: The project would not interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites. [Less Impact than Approved Project (No Impact)] New development under the General Plan (including future housing on the Housing Element project locations) would have a significant impact if future development would interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors or impede the use of native wildlife nursery sites. Future development located within the urbanized area City limits have minimal potential to interfere substantially with the movement of any native resident or migratory fish or wildlife species. The Morgan Hill 2035 FEIR concluded that new development allowed by the General Plan would comply with General Plan policies (Goal NRE-1, Goal NRE-5, Policy NRE-5.1, Policy NRE-5.2, Policy NRE-5.3, Policy NRE-5.4, Policy NRE-5.5, Policy NRE-5.6, Policy NRE-5.8, Action NRE-5.B, Action-NRE-5.C, Goal NRE-6, Policy NRE-6.1, Policy NRE-6.3) that further minimize potential impacts to wildlife corridors, as well as compliances with existing regulations (Santa Clara Valley Habitat Plan, Morgan Hill Municipal Code Chapter 18.28, Morgan Hill Municipal Code Chapter

18.132). Impacts would be less than significant with compliance with the existing regulations and policies.

The Housing Element Update project locations are within the urbanized city limits of Morgan Hill where there are no wildlife corridors. As a result, future development of the Housing Element Updates project locations would not interfere or impede wildlife movement or wildlife corridors.

Therefore, implementation of the Housing Element Update would have a lesser impact than disclosed in the Morgan Hill 2035 FEIR. [Less Impact than Approved Project (No Impact)] Impact BIO-5: The project would not conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance. [Same Impact as Approved Project (Less than Significant Impact)] As determined in the Morgan Hill 2035 FEIR, future developments under the General Plan (including the Housing Element Update) would not conflict with local policies or ordinances protecting biological resources since all development would be subject to the existing ordinances (City of Morgan Hill Municipal Code Chapter 12.32, Santa Clara Valley Habitat Conservation Plan, Morgan Hill Burrowing Owl Mitigation Plan).

Future residential development facilitated by the Housing Element Update may require tree removal.

The City’s Municipal Code (Chapter 12.32) requires acquisition of a tree removal permit for the removal of any significant trees from the Community Development Department. The permit would be reviewed and approved by the Community Development Director based on the information provided, a site inspection, and the criteria contained in Section 12.32.070 of the Municipal Code, including suitable replacement planting. With adherence to existing regulations, General Plan policies, and the City’s Municipal Code, the Housing Element Update would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]

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Impact BIO-6: The project would not conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan. [Same Impact as Approved Project (Less than Significant Impact)]
The City of Morgan Hill adopted the Santa Clara Valley Habitat Plan (Habitat Plan) in 2012 and incorporated the Habitat Plan into the City of Morgan Hill Municipal Code as Chapter 18.132.020.30 Future developments under the General Plan (including the Housing Element Update) are required to pay mitigation fees to the City and implement applicable mitigation measures identified in Chapter 6 of the Habitat Plan. As a result, the Morgan Hill 2035 FEIR concluded that future buildout of the General Plan would not conflict with the goals of the Habitat Plan. Future development under the Housing Element Update would be required to pay mitigation fees and implement applicable mitigation measures, as described above. Therefore, the Housing Element Update would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)] 30 Note the Morgan Hill 2035 FEIR referenced the chapter as Chapter 18.69. The chapter numbering has changed since the publication of the Morgan Hill 2035 FEIR.

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CULTURAL RESOURCES

4.5.1 Environmental Setting
Regulatory Framework
Federal and State
National Historic Preservation Act
Federal protection is legislated by the National Historic Preservation Act of 1966 (NHPA) and the Archaeological Resource Protection Act of 1979. These laws maintain processes for determination of the effects on historical properties eligible for listing in the National Register of Historic Places (NRHP). Section 106 of the NHPA and related regulations (36 Code of Federal Regulations [CFR] Part 800) constitute the primary federal regulatory framework guiding cultural resources investigations and require consideration of effects on properties that are listed or eligible for listing in the NRHP. Impacts to properties listed in the NRHP must be evaluated under CEQA, as NRHP-listed properties are automatically eligible for listing in the California Register of Historical Resources, discussed below.

California Register of Historical Resources
The California Register of Historical Resources (CRHR) is administered by the State Office of Historic Preservation and encourages protection of resources of architectural, historical, archeological, and cultural significance. The CRHR identifies historic resources for state and local planning purposes and affords protections under CEQA. Under Public Resources Code Section 5024.1(c), a resource may be eligible for listing in the CRHR if it meets any of the NRHP criteria.31 Historical resources eligible for listing in the CRHR must meet the significance criteria described previously and retain enough of their historic character or appearance to be recognizable as historical resources and to convey the reasons for their significance. A resource that has lost its historic character or appearance may still have sufficient integrity for the CRHR if it maintains the potential to yield significant scientific or historical information or specific data.

The concept of integrity is essential to identifying the important physical characteristics of historical resources and, therefore, in evaluating adverse changes to them. Integrity is defined as “the authenticity of a historical resource’s physical identity evidenced by the survival of characteristics that existed during the resource's period of significance.” The processes of determining integrity are similar for both the CRHR and NRHP and use the same seven variables or aspects to define integrity that are used to evaluate a resource's eligibility for listing. These seven characteristics include 1) location, 2) design, 3) setting, 4) materials, 5) workmanship, 6) feeling, and 7) association. 31 California Office of Historic Preservation. “CEQA Guidelines Section 15064.5(a)(3) and California Office of Historic Preservation Technical Assistance Series #6.” Accessed June 9, 2022. http://www.ohp.parks.ca.gov/pages/1069/files/technical%20assistance%20bulletin%206%202011%20update.pdf.

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California Native American Historical, Cultural, and Sacred Sites Act The California Native American Historical, Cultural, and Sacred Sites Act applies to both state and private lands. The act requires that upon discovery of human remains, construction or excavation activity must cease and the county coroner be notified.

Public Resources Code Sections 5097 and 5097.98
Section 15064.5 of the CEQA Guidelines specifies procedures to be used in the event of an unexpected discovery of Native American human remains on non-federal land. These procedures are outlined in Public Resources Code Sections 5097 and 5097.98. These codes protect such remains from disturbance, vandalism, and inadvertent destruction, establish procedures to be implemented if Native American skeletal remains are discovered during construction of a project, and establish the Native American Heritage Commission (NAHC) as the authority to resolve disputes regarding disposition of such remains.

Pursuant to Public Resources Code Section 5097.98, in the event of human remains discovery, no further disturbance is allowed until the county coroner has made the necessary findings regarding the origin and disposition of the remains. If the remains are of a Native American, the county coroner must notify the NAHC. The NAHC then notifies those persons most likely to be related to the Native American remains. The code section also stipulates the procedures that the descendants may follow for treating or disposing of the remains and associated grave goods.

Regional and Local
Santa Clara County Heritage Resource Inventory
The Santa Clara County Heritage Resource Inventory compiles historical landmarks throughout the County and sets forth guidelines for their treatment and evaluation. Properties listed in the inventory located on unincorporated property are subject to a demolition review process by the Historical Heritage Commission (HHC) and the Board of Supervisors. The Heritage Resource Inventory was last updated in 2012.32
Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts to cultural resources. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Cultural Resources Policy Description
HC-8.1 Identify and Protect Resources. Identify and protect heritage resources from loss and destruction. (South County Joint Area Plan 15.09)
HC-8.2 Historic Structures. Encourage the preservation and rehabilitation of the City’s historic structures.
32 County of Santa Clara – Department of Planning and Development. Historic Context Statement. December 2004.

Revised February 2012.

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Morgan Hill 2035 General Plan Policies: Cultural Resources Policy Description
HC-8.3 Demolition. Prior to approving demolition or alteration of historically significant buildings, evaluate alternatives, including structural preservation, relocation, or other mitigation, and demonstrate that financing has been secured for replacement use.

HC-8.4 Tribal Consultation. Consult with Native American tribes that have ancestral ties to Morgan Hill regarding proposed new development projects and land use policy changes.

HC-8.5 Mitigation. Require that if cultural resources, including tribal, archaeological, or paleontological resources, are uncovered during grading or other on-site excavation activities, construction shall stop until appropriate mitigation is implemented.

Morgan Hill Historic Context Statement
The City’s Historic Context Statement creates a framework against which to objectively qualify a property’s significance in relation to larger historic themes and events. The Historic Context Statement includes a historical inventory and historical maps which recognize existing historic resources in the city. Historical evaluation of a subject property should use the context statement as a tool for understanding where a property’s significance lies within the City’s historical timeline. The City determines historical significance and eligibility for inclusion in the historical inventory based on the California Register criteria.33
Morgan Hill Municipal Code Chapter 18.60
This chapter applies to potentially significant, significant, and designated historical resources within Morgan Hill. This code safeguards and preserve historical resources that reflect the City’s architectural, artistic, cultural, engineering, aesthetic, historical, political, social and other heritage.

Measures include site-specific surveys and/or permits if historical resources would be potentially altered or demolished.

Existing Conditions
Archaeological Resources
According to the Morgan Hill 2035 FEIR, numerous prehistoric sites with shell midden components, including human burials, have been identified in the City. This finding indicates there is potential for additional undiscovered archeological resources in the City. According to the City’s archaeological sensitivity map (2000), the following Housing Element Update project locations are located in archaeologically sensitive areas: 1, 7, 9, 10, 12, 13, 14, 15, 16, 17, 18, and 19.

Historic Resources
Table 4.5-1 of the Morgan Hill 2035 FEIR summarizes properties that are listed on the Santa Clara County Historic Resources inventory, the National Register, and properties recognized by the City of Morgan Hill. There are no historic properties located on any of the Housing Element Update project locations.34
33 City of Morgan Hill. Municipal Code Chapter 18.60 – Historic Resources. 34 City of Morgan Hill. Morgan Hill 2035 DEIR. Table 4.5-1. January 2016.

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4.5.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same Impact
as Approved
Project
Less
Impact than
Approved
Project
Would the project:
a) Cause a substantial adverse change in the
significance of a historical resource
pursuant to CEQA Guidelines Section
15064.5?
b) Cause a substantial adverse change in the
significance of an archaeological resource
pursuant to CEQA Guidelines Section
15064.5?
c) Disturb any human remains, including
those interred outside of dedicated
cemeteries?
Morgan Hill 2035 Final EIR – Cultural Resources
The Morgan Hill 2035 FEIR found that General Plan buildout would increase residential, commercial, and industrial developments, which would result in increased ground-disturbances activities that could lead to the unexpected discovery of cultural resources. However, it was determined that impacts to historical and archaeological resources would be less than significant because each individual development would undergo project-specific environmental review prior to the commencement of construction. The site-specific environmental review along with compliance with the Morgan Hill Municipal Code Chapter 18.60 would ensure that unexpected discoveries of cultural resources are handled appropriately by qualified professionals. The developments proposed under the General Plan may also potentially uncover human remains but impacts would be less than significant due to adherence to California Health and Safety Code Section 7050.5, PRC section 5097.98, and CCR Section 15064.5 Section (CEQA), which establish a protocol for how human remains must be handled. Therefore, the Morgan Hill 2035 FEIR found impacts related to cultural resources would be less than significant.

Impact CUL-1: The project would not cause a substantial adverse change in the significance of a historical resource pursuant to CEQA Guidelines Section 15064.5. [Same Impact as Approved Project (Less than Significant Impact)] Pursuant to CEQA Guidelines Section 15064.5 (b)(1), a “substantial adverse change” in the significance of a historical resource means physical demolition, destruction, relocation, or alteration of the resource or its immediate surroundings such that the significance of a historical resource would be materially impaired. The buildout of the General Plan would allow for new denser infill development potentially in proximity to historic properties, which could lead to incompatibility or impacts on the historical resources. The Morgan Hill 2035 FEIR concluded that future developments under the General Plan would be subject to individual environmental review pursuant with CEQA

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and the developments would need to comply with the Morgan Hill Municipal Code Chapter 18.60, which protects cultural and historical resources within the city.

As discussed in Section 4.5.1.2 Existing Conditions, there are no designated historic resources located on the Housing Element Update project locations. Future development under the Housing Element Update would be subject to the City’s Municipal Code, which requires site specific evaluations be performed during the environmental review process to determine if a site contains significant historical resources. This site-specific survey would identify potential historical or cultural resources and provide mitigation measures if said resources are on-site. Therefore, the Housing Element Update would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact CUL-2: The project would not cause a substantial adverse change in the significance of an archaeological resource pursuant to CEQA Guidelines Section 15064.5. [Same Impact as Approved Project (Less than Significant Impact)] A substantial adverse change would occur if the archaeological resource were to be demolished, destroyed, relocated, or altered such that significance of the resource would be materially impaired.

As discussed in Section 4.5.1.2 Existing Conditions, there is the potential for undiscovered archaeological resources in the City on Locations 1, 7, 9, 10, 12, 13, 14, 15, 16, 17, 18, and 19 since they are located in archaeologically sensitive areas. Buildout under the General Plan (including the Housing Element Update) could damage or destroy undiscovered archaeological resources during ground-disturbing activities. The Morgan Hill 2035 FEIR concluded that impacts would be less than significant due to project-level compliance with CEQA and the Morgan Hill Municipal Code Section

18.60, which requires that all future developments have an on-site archaeologist present during ground-disturbing construction activities in the case an archaeological resource is discovered as a Standard Condition of Approval. This Standard Conditions of Approval also requires projects to comply with the applicable state and federal laws in the instance human remains are discovered during construction. Future development under the Housing Element Update would comply with the Morgan Hill Municipal Code Section 18.60.090.B, which would ensure that all potential archaeological and historical resources found during construction are treated in accordance with California Public Resources Code 21083.2. Therefore, the Housing Element Update would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)] Impact CUL-3: The project would not disturb any human remains, including those interred outside of dedicated cemeteries. [Same Impact as Approved Project (Less than)]
As discussed in Impact CUL-2, the buildout of the General Plan (including the Housing Element Update) would involve ground-disturbance, primarily during construction. The discovery of human remains is always a possibility during ground disturbing activities. However, the Morgan Hill 2035 FEIR determined that impacts related to the disturbance of human remains would be less than significant because projects would be required to comply with the State of California Health and Safety Code Section 7050.5, Public Resources Code Section 5097.98, and the California Code of Regulations Section 15064.5(e). In addition, projects permitted by the City of Morgan Hill are

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required to follow the standard conditions of approval required by Section 18.60.090(b) of the Morgan Hill Municipal Code to further mitigate potential impacts to buried human remains.35 With adherence to these state laws, future development under the Housing Element Update would reduce impacts related to the discovery of human remains. For these reasons, the Housing Element Update would not result in new or more severe impacts than identified in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than)]
35 The Morgan Hill 2035 FEIR identifies the section as 18.75.110 but the section numbering has changed since the publication of the FEIR.

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ENERGY

4.6.1 Environmental Setting
Regulatory Framework
Federal and State
Energy Star and Fuel Efficiency
At the federal level, energy standards set by the EPA apply to numerous consumer products and appliances (e.g., the EnergyStar™ program). The EPA also sets fuel efficiency standards for automobiles and other modes of transportation.

Renewables Portfolio Standard Program
In 2002, California established its Renewables Portfolio Standard Program, with the goal of increasing the percentage of renewable energy in the state's electricity mix to 20 percent of retail sales by 2010. Governor Schwarzenegger issued Executive Order (EO) S-3-05, requiring statewide emissions reductions to 80 percent below 1990 levels by 2050. In 2008, EO S-14-08 was signed into law, requiring retail sellers of electricity serve 33 percent of their load with renewable energy by 2020. In October 2015, Governor Brown signed SB 350 to codify California’s climate and clean energy goals. A key provision of SB 350 requires retail sellers and publicly owned utilities to procure 50 percent of their electricity from renewable sources by 2030. SB 100, passed in 2018, requires 100 percent of electricity in California to be provided by 100 percent renewable and carbon-free sources by 2045.

Executive Order B-55-18 To Achieve Carbon Neutrality
In September 2018, Governor Brown issued an executive order, EO-B-55-18 To Achieve Carbon Neutrality, setting a statewide goal “to achieve carbon neutrality as soon as possible, and no later than 2045, and achieve and maintain net negative emissions thereafter.” The executive order requires CARB to “ensure future Scoping Plans identify and recommend measures to achieve the carbon neutrality goal.” EO-B-55-18 supplements EO S-3-05 by requiring not only emissions reductions, but also that, by no later than 2045, the remaining emissions be offset by equivalent net removals of CO2 from the atmosphere through sequestration.

California Building Standards Code
The Energy Efficiency Standards for Residential and Nonresidential Buildings, as specified in Title 24, Part 6 of the California Code of Regulations (Title 24), was established in 1978 in response to a legislative mandate to reduce California’s energy consumption. Title 24 is updated approximately every three years.36 Compliance with Title 24 is mandatory at the time new building permits are issued by city and county governments.37
36 California Building Standards Commission. “California Building Standards Code.” Accessed June 17, 2022. https://www.dgs.ca.gov/BSC/Codes#@ViewBag.JumpTo. 37 California Energy Commission (CEC). “2019 Building Energy Efficiency Standards.” Accessed June 17, 2022. https://www.energy.ca.gov/programs-and-topics/programs/building-energy-efficiency-standards/2019-buildingenergy-efficiency.

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California Green Building Standards Code
CALGreen (Title 24, Part 11) establishes mandatory green building standards for buildings in California. CALGreen was developed to reduce GHG emissions from buildings, promote environmentally responsible and healthier places to live and work, reduce energy and water consumption, and respond to state environmental directives. CALGreen covers five categories:
planning and design, energy efficiency, water efficiency and conservation, material and resource efficiency, and indoor environmental quality.

Advanced Clean Cars Program
CARB adopted the Advanced Clean Cars program in 2012 in coordination with the EPA and National Highway Traffic Safety Administration. The program combines the control of smogcausing pollutants and GHG emissions into a single coordinated set of requirements for vehicle model years 2015 through 2025. The program promotes development of environmentally superior passenger cars and other vehicles, as well as saving the consumer money through fuel savings.38 Local
Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to conserve energy and mitigate energy impacts resulting from planned developments within the City. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Energy
Policy Description
NRE-16.1 Energy Standards for New Development. New development, including public buildings, should be designed to exceed State standards for the use of energy.

NRE-16.2 Energy Conservation. Promote energy conservation techniques and energy efficiency in building design, orientation, and construction.

NRE-16.3 Energy Use Data and Analysis. Provide information to increase building owner, tenant, and operator knowledge about how, when, and where building energy is used.

NRE-16.4 Retrofit Financing. Promote existing and support development of new private financing options for building retrofits and renewable energy development.

NRE-16.5 Energy Efficiency. Encourage development project designs that protect and improve air quality and minimize direct and indirect air pollutant emissions by including components that promote energy efficiency.

NRE-16.6 Landscaping for Energy Conservation. Encourage landscaping plans for new development to address the planting of trees and shrubs that will provide shade to reduce the need for cooling systems and allow for winter daylighting.

NRE-16.7 Renewable Energy. Encourage new and existing development to incorporate renewable energy generation features, like solar panels and solar hot water heaters. 38 California Air Resources Board. “The Advanced Clean Cars Program.” Accessed June 17,2022. https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program

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Morgan Hill 2035 General Plan Policies: Energy
Policy Description
NRE-16.8 Residential Development Code. Emphasize energy conservation building techniques for new residential construction through the implementation of Chapter 18.7839 of the Municipal Code.

NRE-16.9 Subdivision Design. In compliance with Section 66473.1 of the State Subdivision Map Act, promote subdivision design that provides for passive solar heating and natural cooling through the Development Review Committee subdivision review procedures.

NRE-16.A Community Choice Aggregation. Partner with other Santa Clara County jurisdictions to determine the feasibility for development of a regional CCA program, including identification of the geographic scope, potential costs to participating jurisdictions and residents, and potential liabilities.

NRE-16.B Municipal Energy Audit. In cooperation with PG&E, subject all municipal buildings to an energy audit and perform practicable energy conservation alterations on municipal buildings. Such alterations can include modifying automatic heating, cooling, and lighting systems, and installing natural ventilation methods and solar hot water systems, etc.

NRE-16.C Local Energy Ordinances. Develop local ordinances that promote energy conservation and efficiency. Examples of such ordinances include: energy audits, solar access, solar swimming pool heating, insulation and solar retrofit, and solar water heating.

NRE-16.D Energy Efficiency Plan. Develop a comprehensive strategy for using energy efficiently at all City facilities.

City of Morgan Hill Municipal Code
In 2019, the Morgan Hill City Council approved Ordinance 2306 and adopted a Reach Code Ordinance (Reach Code) to reduce energy-related GHG emissions consistent with the goals of the Morgan Hill 2021 Climate Action Plan. The Reach Code applies to new construction projects in Morgan Hill. It requires new residential construction to be outfitted with entirely electric fixtures.

Existing Conditions
Total energy usage in California was approximately 7,802 trillion British thermal units (Btu) in the year 2019, the most recent year for which this data was available.40 Out of the 50 states, California is ranked second in total energy consumption and 46th in energy consumption per capita. The California Energy consumption breakdown by end-use sector was approximately 19 percent (1,456 trillion Btu) for residential uses, 19 percent (1,468 trillion Btu) for commercial uses, 23 percent (1,805 trillion Btu) for industrial uses, and 39 percent (3,073 trillion Btu) for transportation.41 This energy is primarily supplied in the form of natural gas, petroleum, nuclear electric power, and hydroelectric power.
39 Refer to Section 18.156.100.A.6. 40 United States Energy Information Administration. “California State Energy Profile.” Last Updated March 17, 2022. Accessed May 27, 2022. Available at: https://www.eia.gov/state/?sid=CA#tabs-3 41 Ibid.

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Electricity
In 2020, a total of approximately 16,436 gigawatt hours (GWh) of electricity was consumed in Santa Clara County.42 The non-residential sector consumed 12,043 GWh or 73 percent of the total, while the residential sector consumed 4,392 GWh or 25 percent.

Silicon Valley Clean Energy (SVCE) is the electricity provider for residents and businesses in the City of Morgan Hill. SVCE sources the electricity and Pacific Gas and Electric Company (PG&E) delivers it to customers over their existing utility lines. SVCE customers are automatically enrolled in the GreenStart program, which provides carbon emission-free electricity that is procured form 50 percent renewable energy sources. Customers can choose to enroll in SVCE’s GreenPrime program at any time to receive 100 percent GHG emission-free electricity form entirely renewable sources.43 Natural Gas
PG&E provides natural gas services within Morgan Hill. In 2020, approximately two percent of California’s natural gas supply came from in-state production, while the remaining supply was imported from other western states and Canada.44 In 2020, 12,332 millions of therms of natural gas were consumed. The commercial sector consumed approximately 12 percent of the natural gas delivered to California, while the residential sector consumed approximately 23 percent. The electric power sector used 30 percent of the natural gas delivered and the industrial sector used 34 percent.

Transportation accounted for one percent of natural gas use in California. In 2020, Santa Clara County (419 millions of therms) used approximately two percent of the state’s total consumption of natural gas (12,332 millions of therms).45
The City of Morgan Hill’s Ordinance No. 2306, which was effective in March 2020, prohibits the use natural gas infrastructure in new buildings. New buildings are required to use all electric appliances.

Fuel for Motor Vehicles
In 2021, 13.1 billion gallons of gasoline were sold in California.46 The average fuel economy for light-duty vehicles (autos, pickups, vans, and sport utility vehicles) in the United States has steadily increased from about 13.1 miles per gallon (mpg) in the mid-1970s to 25.4 mpg in 2020.47 Federal fuel economy standards have changed substantially since the Energy Independence and Security Act was passed in 2007. That standard, which originally mandated a national fuel economy standard of 42 California Energy Commission. Energy Consumption Data Management System. “Electricity Consumption by County.” Accessed May 13, 2022. http://ecdms.energy.ca.gov/elecbycounty.aspx. 43 Silicon Valley Clean Energy. “Clean Energy Choices”. Accessed May 27, 2022. Available at:
https://www.svcleanenergy.org/choices/ 44 California Gas and Electric Utilities. 2020 California Gas Report. Accessed May 13, 2021. Available at:
https://www.socalgas.com/sites/default/files/2020-
10/2020_California_Gas_Report_Joint_Utility_Biennial_Comprehensive_Filing.pdf 45 California Energy Commission. “Natural Gas Consumption by County.” Accessed May 13, 2022. Available at:
http://ecdms.energy.ca.gov/gasbycounty.aspx. 46 California Department of Tax and Fee Administration. “Net Taxable Gasoline Gallons.” Accessed May 13, 2022.

Available at: https://www.cdtfa.ca.gov/taxes-and-fees/spftrpts.htm. 47 United States Environmental Protection Agency. “The 2021 EPA Automotive Trends Report: Greenhouse Gas Emissions, Fuel Economy, and Technology since 1975.” November 2021. Accessed May 13, 2022. Available at:
https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013L1O.pdf.

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35 miles per gallon by the year 2020, was updated in March 2020 to require all cars and light duty trucks achieve an overall industry average fuel economy of 40.4 mpg by model year 2026. 48,49

4.6.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less than
Significant
Impact
Same Impact
as Approved
Project
Less Impact
than
Approved
Project
Would the project:
a) Result in a potentially significant
environmental impact due to
wasteful, inefficient, or unnecessary
consumption of energy resources,
during project construction or
operation?
b) Conflict with or obstruct a state or
local plan for renewable energy or
energy efficiency?
Morgan Hill 2035 Final EIR – Energy Conclusions
The Morgan Hill 2035 concluded that construction and operation of the development proposed under the General Plan would result in an irretrievable commitment of nonrenewable resources for the construction of the infrastructure associated with the General Plan. The operation of said buildout would also represent a new long-term commitment to the consumption of fossil fuels, natural gas, and gasoline. Overall, the General Plan buildout would increase energy demand in Morgan Hill.

However, regulatory measures, such as the California Building Code and CalGreen, and the General Plan policies that encourage energy, water, waste, and green building measures would reduce the use of non-renewable resources to the greatest extent possible.

Subsequent to the certification of the Morgan Hill 2035 Final EIR, the Morgan Hill City Council adopted Ordinance No. 2306 (Chapter 15.63 of the Morgan Hill Municipal Code) that prohibits natural gas infrastructure in new buildings effective January 1, 2020. New buildings are required to use all electric appliances. Future housing developments would not use natural gas and, therefore, would not increase natural gas demand.

Impact EN-1: The project would not result in a potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation. [Same Impact as Approved Project (Less than Significant Impact)]
48 United States Department of Energy. Energy Independence & Security Act of 2007. Accessed May 13, 2022.

Available at: http://www.afdc.energy.gov/laws/eisa. 49 Public Law 110–140—December 19, 2007. Energy Independence & Security Act of 2007. Accessed May 13, 2022. Available at: http://www.gpo.gov/fdsys/pkg/PLAW-110publ140/pdf/PLAW-110publ140.pdf.

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The construction and operation of future development under the General Plan (including the Housing Element Update) would result in increased short-term and long-term energy consumption. In addition, construction activities associated with development require the use of energy (e.g., electricity and fuel) for various purposes such as the operation of construction equipment and tools, as well as excavation, grading, demolition, and construction vehicle travel. The proposed increase in development would result in a long-term increase in energy demand associated with the operation of lighting and space heating/cooling in the added building space, and vehicle travel. As noted in the Morgan Hill 2035 FEIR, new development would be constructed using energy efficient modern building materials and construction practices in accordance with CalGreen Building Code, CPUC’s Long Term Energy Efficiency Strategic Plan (2008), and Chapters 15.08, 15.65, 17.32, and 18.156 of the City’s Municipal Code, which contain a range of energy conservation and renewable energy measures. Under these requirements, future development under the General Plan (including the Housing Element Update) would use recycled construction materials, environmentally sustainable building materials, building designs that reduce the amount of energy used in building heating and cooling systems as compared to conventionally built structures, and landscaping that incorporates water efficient irrigation systems, all of which would conserve energy. California’s CALGreen standards (California Code of Regulations Title 24, Part 11) require implementation of energyefficient light fixtures and building materials into the design of new construction projects. The General Plan also includes goals, policies, and actions to further conserve energy resources (Goal NRE-16, Policy NRE-16.1, Policy NRE-16.2, Policy NRE-16.3, Policy NRE-16.4, Policy NRE-16.5, Policy NRE-16.6, Policy NRE-16.7, Policy NRE-16.8, Policy NRE-16.9, Action NRE-16.A, Action NRE-16.B, Action NRE-16.C, and Action NRE-16.D). The Morgan Hill 2035 FEIR determined that with the implementation of the above General Plan policies and the applicable state energy efficiency standards that significant energy conservation and savings would be realized by future development under the General Plan (including the Housing Element Update). In addition, consistent with Ordinance No. 2306, future housing development would not use natural gas. For these reasons, and because no changes are proposed to the General Plan Land Use diagram to accommodate the housing needed to meet the City’s RHNA target, given adequate available land exists under the currently adopted General Plan with appropriate residential and mixed-use land use designations, the Housing Element would not result in new or substantially more severe impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)] Impact EN-2: The project would not conflict with or obstruct a state or local plan for renewable energy or energy efficiency. [Same Impact as Approved Project (Less than Significant Impact)]
As discussed under Impact EN-1, future development under the Housing Element Update would be subject to current energy efficiency standard set forth in Title 24 and CALGreen. In addition, electricity for all future residential development would be provided by SVCE. SVCE sources the electricity and PG&E delivers it to customers over their existing utility lines. Customers are automatically enrolled in the GreenStart plan, which generates its electricity from 100 percent carbon free sources, with 50 percent from solar and wind sources and 50 percent from hydroelectric.

Customers have the option to enroll in the GreenPrime plan, which generates its electricity from 100 percent renewable sources, such as wind and solar. Future development under the Housing Element Update would be completed in compliance with the current energy efficiency standards set forth in Title 24, CALGreen, and the City’s Municipal Code. For these reasons, the Housing Element Update

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would not conflict with or obstruct state or local plans for renewable energy or energy efficiency. [Same Impact as Approved Project (Less than Significant Impact)]

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GEOLOGY AND SOILS

4.7.1 Environmental Setting
Regulatory Framework
State
Alquist-Priolo Earthquake Fault Zoning Act
The Alquist-Priolo Earthquake Fault Zoning Act was passed following the 1971 San Fernando earthquake. The act regulates development in California near known active faults due to hazards associated with surface fault ruptures. Alquist-Priolo maps are distributed to affected cities, counties, and state agencies for their use in planning and controlling new construction. Areas within an Alquist-Priolo Earthquake Fault Zone require special studies to evaluate the potential for surface rupture to ensure that no structures intended for human occupancy are constructed across an active fault.

Seismic Hazards Mapping Act
The Seismic Hazards Mapping Act (SHMA) was passed in 1990 following the 1989 Loma Prieta earthquake. The SHMA directs the California Geological Survey (CGS) to identify and map areas prone to liquefaction, earthquake-induced landslides, and amplified ground shaking. CGS has completed seismic hazard mapping for the portions of California most susceptible to liquefaction, landslides, and ground shaking, including the central San Francisco Bay Area. The SHMA requires that agencies only approve projects in seismic hazard zones following site-specific geotechnical investigations to determine if the seismic hazard is present and identify measures to reduce earthquake-related hazards.

California Building Standards Code
The California Building Code prescribes standards for constructing safe buildings. The California Building Code contains provisions for earthquake safety based on factors including occupancy type, soil and rock profile, ground strength, and distance to seismic sources. The California Building Code requires that a site-specific geotechnical investigation report be prepared for most development projects to evaluate seismic and geologic conditions such as surface fault ruptures, ground shaking, liquefaction, differential settlement, lateral spreading, expansive soils, and slope stability. The California Building Code is updated every three years.

California Division of Occupational Safety and Health Regulations Excavation, shoring, and trenching activities during construction are subject to occupational safety standards for stabilization by the California Department of Industrial Relations, Division of Occupational Safety and Health (Cal/OSHA) under Title 8 of the California Code of Regulations and Excavation Rules. These regulations minimize the potential for instability and collapse that could injure construction workers on the site.

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Public Resources Code Section 5097.5
Paleontological resources are the fossilized remains of organisms from prehistoric environments found in geologic strata. They range from mammoth and dinosaur bones to impressions of ancient animals and plants, trace remains, and microfossils. These materials are valued for the information they yield about the history of the earth and its past ecological settings. California Public Resources Code Section 5097.5 specifies that unauthorized removal of a paleontological resource is a misdemeanor. Under the CEQA Guidelines, a project would have a significant impact on paleontological resources if it would disturb or destroy a unique paleontological resource or site or unique geologic feature.

Local
Morgan Hill 2035 General Plan
The Morgan Hill 2035 General Plan includes goals, policies, and actions to avoid significant impacts due to geological conditions and seismicity. The following policies are applicable to the Housing Element Update.

Morgan Hill 2035 General Plan Policies: Geology and Soils Policy Description
HC-8.5 Mitigation. Require that if cultural resources, including tribal, archaeological, or paleontological resources, are uncovered during grading or other on-site excavation activities, construction shall stop until appropriate mitigation is implemented.

SSI-1.1 New Development and Hazards. New development should avoid hazardous and sensitive areas, and should occur only where it can be built without risking health and safety. New habitable structures should not be allowed in areas of highest hazard, such as floodways, active landslides, active fault traces, and airport safety zones. In areas of less risk, development should be limited and designed to reduce risks to an acceptable level. (South County Joint Area Plan 15.00)
SSI-1.2 Hazard Reporting. Known or potential geologic, fire, and flood hazards shall be disclosed as part of every real estate transaction and recorded on documents to be reported for building permits, subdivisions, and land development reports. Mitigation of hazards shall be noted in the same manner.

SSI-1.4 Development Regulations and Hazards. Regulate development in hazardous areas in such a way that it minimizes disruption of the environment and does not trigger or accelerate the hazardous processes which exist in South County. (South County Joint Area Plan 15.02b.)
SSI-1.5 Cluster Development. Cluster development in hazardous areas with dwellings grouped on the least hazardous portion of the property. (South County Joint Area Plan 15.02e) SSI-1.2 Hazard Reporting. Known or potential geologic, fire, and flood hazards shall be disclosed as part of every real estate transaction and recorded on documents to be reported for building permits, subdivisions, and land development reports. Mitigation of hazards shall be noticed in the same manner.

SSI-1.B Current Information. Coordinate with local, regional, State, and federal sources to ensure the City maintains complete and current GIS information on fire, flood, and geotechnical hazards.

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Morgan Hill 2035 General Plan Policies: Geology and Soils Policy Description
SSI-2.1 Land Use and Geologic Hazards. Limit uses on lands with geologic hazards but allow uses on previously urbanized lands with proper mitigation. Keep development in hazardous areas to a minimum by encouraging low-density, low-intensity uses and the type of uses least disruptive to the soil and vegetative cover.

SSI-2.2 Site Preparation for Geologic Stability. On lands with geologic hazards that have already been developed, require mitigation procedures, including geotechnical investigations appropriate for the known or suspected geologic problems.

SSI-2.3 Site Preparation in Hazardous Areas. Require site preparation in hazardous areas to be designed to achieve long-term geologic stability.

SSI-2.4 Code Requirements for Critical Structures. Design and construct critical structures above and beyond the applicable engineering and building standards, where such measures are deemed necessary from available geologic and engineering data. Critical structures are those structures:
a) needed after a disaster (e.g., emergency communications, fire stations, hospitals, bridges and overpasses);
b) whose continued functioning is critical (e.g., major power lines and stations, water lines, and other public utilities); or
c) whose failure might be catastrophic (e.g., large dams).

SSI-2.5 Design of Critical Structures. Design and construct critical structures to resist minor earthquakes without damage, resist moderate earthquakes without structural damage, and resist major earthquakes of the intensity or severity of the strongest experienced in California without collapse.

SSI-2.6 Hillside Development. Protect hillsides and carefully control development on steep slopes. When hillside land is developed, it should be done with minimum disruption of topography and vegetative cover.

SSI-2.7 Landslides. Prohibit development on known active landslides and limit development in areas where such development might initiate sliding or be affected by sliding on adjacent parcels.

SSI-2.8 Runoff and Slope Stability. Prohibit development in areas where increased runoff from the addition of impervious surfaces and drainage would increase the probability of downslope landsliding, or where additional projects would add to the cumulative effect of increased runoff, unless a downslope drainage improvement plan has been approved. (South County Joint Area Plan 15.02d)
SSI-2.9 Geologic Studies. Continue to require geologic and geotechnical studies for development in potentially hazardous areas, such as hillside areas and geotechnical studies for critical facilities in areas with liquefiable soils. The costs for consulting geologists shall be covered by a fee to the developer.

SSI-2.10 Slope Stability. Enforce and maintain strict grading and building regulations to minimize instability of slopes sloping areas and reduce public costs associated with maintaining roads and utilities on unstable slopes.

SSI-2.11 Geotechnical Investigations. Require geotechnical investigations on all projects in unstable areas, including areas of expansive soils, prior to construction to ensure that the potential hazards are identified and can be properly mitigated.

NRE-8.1 Contamination from Toxic Chemicals. Protect water quality from contamination, and monitor it to assure that present policies and regulations are adequate. Prohibit such uses

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Morgan Hill 2035 General Plan Policies: Geology and Soils Policy Description
as waste facilities, septic systems, and industries using toxic chemicals where polluting substances may come in contact with groundwater, floodwaters, and creeks or reservoir waters. (South County Joint Area Plan 8.00)
NRE-8.2 Septic Systems. Continue land use policies that limit the number of individual septic systems in areas vulnerable to groundwater contamination, because of the potential for cumulative degradation of water quality. (South County Joint Area Plan 8.01) NRE-8.3 Water Quality Monitoring. Continue to monitor groundwater and surface water quality conditions to determine if changes in regulations regarding septic systems and land use are needed. (South County Joint Area Plan 8.04)
NRE-8.4 Sewer Service for Future Development. In areas where future development is expected to be served by sewers, continue large lot policies which allow minimal development and limited numbers of septic systems. (This approach increases the feasibility of designing future urban density subdivisions with smaller lots, which are more efficient for sewers in terms of service and cost.) (South County Joint Area Plan 8.02) Existing Conditions
Geology and Soils
The Project area is located in the Santa Clara Valley, an alluvial basin, bounded by the Santa Cruz Mountains to the west, the Hamilton/Diablo Range to the east, and the San Francisco Bay to the north. The Santa Clara Valley was formed when sediments derived from the Santa Cruz Mountains and the Hamilton/Diablo Range were exposed by the continued tectonic uplift and regression of the inland sea that had previously inundated this area. Bedrock in this area is made up of the Franciscan Complex, a diverse group of igneous, sedimentary, and metamorphic rocks of Upper Jurassic to Cretaceous age (70-140 million years old). Overlaying the bedrock at substantial depths are marine and terrestrial sedimentary rocks of Tertiary and Quaternary age.

The potential for erosion and landslides at the Housing Element Update project locations are low because the parcels are not within a liquefaction landslide zone and the parcels are relatively flat.50 Seismicity
An earthquake of moderate to high magnitude generated within the San Francisco Bay region could cause considerable ground shaking at the Housing Element Update project locations. The degree of shaking is dependent on the magnitude of the event, the distance to its zone of rupture and local geologic conditions. The City of Morgan Hill is susceptible to the effects of regional seismic activity that produces ground shaking intensity levels of 8.0 (severe shaking) and 9.0 (violent shaking) according to the Modified Mercalli Intensity (MMI) Scale.51 In the event of a moderate to large earthquake occurring because of one of the faults mentioned above, strong seismic ground shaking is 50 California Department of Conservation. “Earthquake Zones of Required Investigation”. Accessed June 6, 2022.

Available at: https://maps.conservation.ca.gov/cgs/EQZApp/app/ 51 Metropolitan Transportation Commission/Association of Bay Area Governments. Hazard Viewer Map. Accessed June 6, 2022. Available at:
https://www.arcgis.com/apps/webappviewer/index.html?id=4a6f3f1259df42eab29b35dfcd086fc8

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likely to occur on-site. The City of Morgan Hill is not within an Alquist-Priolo Earthquake Fault Zone. The most active faults are the Calaveras Fault, San Andreas Fault, and Sargent Fault, none of which pass through any of the Housing Element project locations.

Liquefaction
Soil liquefaction is a phenomenon in which saturated, cohesion-less soils undergo a temporary loss of strength during earthquake ground shaking. The Morgan Hill SOI is primarily made up of areas with of very low, low, and moderate. Areas of high earthquake liquefaction susceptibility are outside the City boundaries.52 The following two Housing Element Update project locations are in liquefaction zones that have a moderate earthquake liquefaction susceptibility: Location 1 and 10.53 Paleontological Resources
Paleontological resources or fossils are the remains of prehistoric plant and animal life.

Paleontological resources do not include human remains or artifacts. Fossil remains such as bones, teeth, shells, and wood are found in geologic formations. Paleontological resources are limited, nonrenewable, sensitive scientific and educational resources. The potential for fossil remains at a location can be predicted based on whether or not previous fossil finds have been made in the vicinity, as well as based on the age of the geologic formations. Based on the findings in the Morgan Hill 2035 FEIR, no paleontological resources have been identified in the City of Morgan Hill.

4.7.2 Impact Discussion
New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same Impact
as Approved
Project
Less
Impact than
Approved
Project
Would the project:
a) Directly or indirectly cause potential
substantial adverse effects, including the
risk of loss, injury, or death involving:
- Rupture of a known earthquake
fault, as delineated on the most
recent Alquist-Priolo Earthquake
Fault Zoning Map issued by the
State Geologist for the area or based
on other substantial evidence of a
known fault (refer to Division of
Mines and Geology Special
Publication 42)?
- Strong seismic ground shaking?
- Seismic-related ground failure,
including liquefaction?
- Landslides?
52 Ibid. 53 California Department of Conservation. “Earthquake Zones of Required Investigation”. Accessed June 6, 2022.

Available at: https://maps.conservation.ca.gov/cgs/EQZApp/app/

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New
Potentially
Significant
Impact
New Less
than
Significant
with
Mitigation
Incorporated
New Less
than
Significant
Impact
Same Impact
as Approved
Project
Less
Impact than
Approved
Project
Would the project:
b) Result in substantial soil erosion or the
loss of topsoil?
c) Be located on a geologic unit or soil that
is unstable, or that would become
unstable as a result of the project, and
potentially result in on- or off-site
landslide, lateral spreading, subsidence,
liquefaction, or collapse?
d) Be located on expansive soil, as defined
in the current California Building Code,
creating substantial direct or indirect
risks to life or property?
e) Have soils incapable of adequately
supporting the use of septic tanks or
alternative wastewater disposal systems
where sewers are not available for the
disposal of wastewater?
f) Directly or indirectly destroy a unique
paleontological resource or site or
unique geological feature?
Morgan Hill 2035 Final EIR – Geology and Soils Conclusion The Morgan Hill 2035 FEIR found that the buildout of the General Plan would not expose people or structures to potential substantial adverse effects from the following geological impacts: rupture of a known earthquake fault, strong seismic ground shaking, seismic-related ground failure, liquefaction, and landslides. The future developments would be constructed in accordance with the California Building Code and Morgan Hill Building Code along with complying with the General Plan policies and actions that would ensure impacts related to seismic-related geological effects would be less than significant. Construction of the developments under the General Plan would have the potential to impact water quality through soil erosion but regulations such as the NPDES General Construction Permit and the preparation of a Storm Water Pollution Prevention Plan (SWPPP) along with the City’s Urban Storm Water Quality Management and Discharge Control Ordinance would require a plan to incorporate best management practices to control erosion and runoff. These regulations along with the General Plan policies would reduce soil erosion impacts to less than significant.

Developments may also be located on unstable geologic unit or soil that could potentially result in landslide, lateral spreading, subsidence, liquefaction, or collapse. General Plan Policy SSI-1.4 along with the California Building Code and Morgan Hill Building Code would regulate the building design to reduce the effects of geologic instability and impacts would be less than significant.

Impacts related to expansive soils would also be less than significant due to the provisions of the General Plan, the California Building Code, and the Morgan Hill Building Code. Regarding the installation of septic tanks, the developments proposed by the General Plan would likely be serviced

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by the existing utilities infrastructure but in the case a septic tank is required an application with detailed plans would be submitted to the City pursuant with the Morgan Hill Municipal Code Chapter

13.24. This process along with General Plan Policies NRE-8.1, Policy NRe-8.2, Policy NRe-8.3, and Policy NRE-9.4 would ensure impacts would be less than significant.

Impact GEO-1: The project would not directly or indirectly cause potential substantial adverse effects, including the risk of loss, injury, or death involving rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault; strong seismic ground shaking; seismic-related ground failure, including liquefaction; or landslides. [Same Impact as Approved Project (Less than Significant Impact)] Fault Rupture
As discussed in Section 4.7.1.2 Existing Conditions, the Morgan Hill SOI is not located in a AlquistPriolo Earthquake Fault Zone. While existing faults are located in the region, the Housing Element project locations are outside of the fault zone for any regional fault systems, and loss, injury, or death from fault ruptures would not occur on the Housing Element Update project locations. [Same Impact as Approved Project (Less than Significant Impact)] Ground Shaking
Strong ground shaking could likely occur with the potential for seismically induced liquification and landslides. The General Plan area (including the Housing Element project locations) is located in a seismically active region with other faults identified in the region (Silver Creek, Coyote Creek, and Range Front Faults). Impacts related to these geological hazards would be reduced to a level of less than significant because future developments would be designed in accordance with the California Building Code and Morgan Hill Building Code. Both building codes provide specific engineering and seismic safety design requirement. Policies from the General Plan would also help reduce potential hazards related to fault rapture and seismic ground shaking (Policy SSI-1.1, Policy SSI-1.2, Policy SSI-1.5, Action SSI-1.B, Policy SSI-2.1, Policy SSI-2.2, Policy SSI-2.3, Policy SSI-2.4, Policy SSI-2.5, Policy SSI-2.6, Policy SSI-2.8, and Policy SSI-2.9). The buildout of the Housing Element Update would be required to comply with and be designed in accordance with the California Building Code and Morgan Hill Building Code, which would ensure that future developments are designed to protect public safety. Therefore, the Housing Element Update would not result in new or more severe impacts related to ground shaking than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)] Ground Failure, Liquefication, and Lateral Spreading
As discussed in the Morgan Hill 2035 FEIR, impacts related to seismic-related ground failure, including liquification, would be less than significant with adherence to the California Building Code and the Morgan Hill Building Code design standards along with the General Plan policies (Policy SSI-2.2 and Policy SSI-2.9).

Housing Element Location 1 and 10 are in liquefaction zones that have a moderate earthquake liquefaction susceptibility. However, development proposed under the Housing Element Update

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would be designed to comply with the California and Morgan Hill Building Codes and each individual development would be required to prepare geotechnical studies prior to the commencement of construction pursuant with the General Policy SSI-2.2 and Policy SSI-2.9.

Therefore, the Housing Element Update would not result in new or more severe impacts related to ground failure than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Landslides
The Morgan Hill 2035 FEIR determined impacts related to seismic-related landslides were less than significant since development under the General Plan would need to comply with the California and Morgan Hill Building Codes to protect property and public safety with safe building design, and General Plan Policy SSI-2.7 prohibits development in areas on known active landslides or limit such development.

The Housing Element Update project locations are not located in liquefaction zones as identified by California Geological Survey. However, the residential developments proposed under the Housing Element Update would still be required to comply with the California and Morgan Hill Building Codes to ensure buildings are designed to reduce seismic-related ground failure or landslides.

Therefore, the Housing Element Update would not result in new or more severe impacts related to landslides than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]
Impact GEO-2: The project would not result in substantial soil erosion or the loss of topsoil. [Same Impact as Approved Project (Less than Significant Impact)] Construction of future developments proposed under the General Plan (including the Housing Element Update) would likely include grading and earthwork activities that would disturb topsoil with the potential for substantial soil erosion. The Morgan Hill 2035 FEIR concluded that compliance with federal (National Pollutant Discharge Elimination System [NPDES] General Construction Permit) and local regulations (City of Morgan Hill Urban Storm Water Quality Management and Discharge Control Ordinance and City-approved best management practices) would reduce impacts related to soil erosion or topsoil loss to less than significant through the implementation of best management practices (BMPs) to control sedimentation, erosion, and stormwater water runoff. The residential development facilitated by the Housing Element Update would be designed to comply with these federal and local regulations described above. For these reasons, the Housing Element Update would not result in new or more severe soil erosion impacts than disclosed in the Morgan Hill 2035 FEIR. [Same Impact as Approved Project (Less than Significant Impact)]

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Impact GEO-3: The project would not be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse. [Same Impact as Approved Project (Less than Significant Impact)]
As discussed under Impact GEO-1, there is potential for landslides, lateral spreading, subsidence, or liquefaction within the Morgan Hill SOI. However, the Morgan Hill 2035 FEIR concluded that impacts would be less than significant since all future developments proposed under the General Plan buildout (which includes the Housing Element Update) would be designed to comply with the California Building Code and the Morgan Hill Building Codes. This would ensure that specific standards to protect property and public safety are included in the design and construction of future developments. Additionally future developments under the General Plan would be required to prepare geotechnical investigations prior to construction and the individual developments would need to implement the measures recommended in the investigations to reduce potential adverse impacts.

General Plan Policy SSI-1.4 would also limit exposure to landslides, lateral spreading, subsidence, liquefaction, or collapse by regulating development in hazardous areas to not trigger or accelerate hazardous processes. Residential development under the Housing Element Update would be designed consistent with the recommended measures in the project-specific geotechnical investigations, the California Building Code, the Morgan Hill Building Code, and the General Plan policies. For these reasons, the Housing Element Update would not result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse by employing standard design and engineering practices and adhering to the California Building Code and City’s Building Code. Therefore, the Housing Element Update would not result in new or more severe impacts related to geologic instability. [Same Impact as Approved Project (Less than Significant Impact)]

Impact GEO-4: The project would not be located on expansive soil, as defined in the current California Building Code, creating substantial direct or indirect risks to life or property. [Same Impact as Approved Project (Less than Significant Impact)]
As determined in the Morgan Hill 2035 FEIR, impacts related to expansive soils would be less than significant since future developments would be designed in compliance with the California Building Code and the Morgan Hill Building Code. General Plan Policy SSA-2.11 also requires a geotechnical investigation be completed proper to construction to identified potential hazards that can be mitigated.

Future development under the Housing Element Update would be subject to the same regulations and provisions in the California Building Code, the Morgan Hill Building Code, and the General Plan, which would ensure risks due to expansive soils would be less than significant. Therefore, the Housing Element Update would not result in new or more severe impacts related to expansive soils. [Same Impact as Approved Project (Less than Significant Impact)]

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Impact GEO-5: The project would not have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater. [Less Impact than Approved Project (Less than Significant Impact)]
The buildout of the General Plan would be generally within City limits with connection access to the public sewer system. However, septic tank systems are allowed in cases where connection to the public sewer system is not available. As described in the Morgan Hill 2035 FEIR, future developments that install septic systems would be subject to the requirements of Chapter 13.24 of the Morgan Hill Municipal Code, which includes a permitting process to review the design and compatibility of the septic tank. This process would ensure no negative environmental impacts would occur.

Future development under the Housing Element Update would connect to the existing public sewer system. Therefore, the Housing Element Update would have no impact on soils due to the use of septic tanks and impacts would be less than the impacts disclosed in the Morgan Hill 2035 FEIR. [Less Impact than Approved Project (Less than Significant Impact)] Impact GEO-6: The project would not directly or indirectly destroy a unique paleontological resource or site or unique geological feature. [Same Impact as Approved Project (Less than Significant Impact)]
No paleontological resources have been identified in the City of Morgan Hill.54 However, the possibility that construction of new development may uncover paleontological resources exists. The Morgan Hill 2035 FEIR concluded that potential impacts related to paleontological resources would be less than significant through the implementation of standard conditions of project approval described under Impact CUL-2 and through individual project-specific review pursuant to CEQA.

Future development under the Housing Element Update would be subject to project-specific environmental review and would be required to implement standard conditions of project approval to mitigate potential impacts to the greatest extent feasible. For this reason, the Housing Element Update would not result in new or more severe impacts related to paleontological resources. [Same Impact as Approved Project (Less than Significant Impact)] 54 City of Morgan Hill. Morgan Hill 2035 DEIR. Page 4.5-17. January 2016.

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Morgan Hill City CouncilJanuary 25, 2023

Morgan Hill City Council
January 25, 2023